Here's my summary of the key news overnight in 90 seconds at 9 am, including the first major set piece by the new Fed boss.
This morning before the US Congress, Fed Chairman Janet Yellen pledged to maintain the Bernanke policies by scaling back stimulus in "measured steps" and signaled that the bar is high for a change to that plan.
As she spoke, data out on job openings and labour turnover in December showed a marginal decline to just below 4 million.
And separately the Federal Reserve said it will vote next week on new standards for banks operating in the United States, including a proposal for foreign banks that has been heavily criticised by their home regulators. Next Wednesday, they will finalise rules that require foreign banks with big American operations, like Deutsche Bank and Barclays, to put all their subsidiaries in a single holding company. Then those intermediate holding companies will have to meet the same capital standards as US banks. The Europeans have implied retaliation.
Staying in the US, it looks like the latest debt ceiling limit will get raised without hassle as Republican leaders stunned some members by offering to help pass the necessary vote without any strings attached.
Markets liked what Yellen had to say; New York equities are up 1% in mid afternoon trade. UST benchmark 10yr bond yields are also up, now at 2.72%. Oil is essentially unchanged although it has slipped below US$100/barrel; however gold is up strongly again and now over US$1,290/oz.
These are signals for 'risk on'.
At home today we get the first detailed look at January retail sales with the electronic card transaction data released this morning.
The NZ dollar has risen against the USD overnight and it starts today at 83.4 USc, 92.2 AUc and the TWI is now up to 78.4.
If you want to catch up with all the changes yesterday, we have an update here.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »
1 Comments
Ive got a question. What happens to all the Kiwis working and paying tax in Australia but not elligible for benefits.
How long till they drop off the NZ pension and health care (10years?), or do they pay taxes in Australia and return home for the pension and health care? In which case we are getting screwed.
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