Here's my summary of the key news overnight in 90 seconds at 9 am, including news of a big rail project.
But first, US factory production rose in February by the most in six months, showing manufacturing is helping the American economy emerge from a weather-related setback.
Over the past couple of weeks 'someone' - presumably Russia - sold a huge tranche of US Treasuries, probably the most on record. These foreign holdings were well over US$3 trillion at the beginning of the year. Last week they had sunk by more than US$200 billion.
That might be a reason the UST 10yr yields has fallen. They rose a little overnight to 2.67%.
We are used to hearing about big airplane deals. Here's a big deal in the rail sector. South Africa has ordered 599 new electric trains and 465 diesel trains in a deal worth some NZ$5.5 billion.
(Incidentally, the 3.5 km planned Auckland rail loop is currently projected to cost NZ$2.9 billion.)
An Australian Federal government committee is to examine laws governing foreign investment of property. Victorian Liberal back bencher Kelly O'Dwyer told ABC radio that the investigation would not be anti-Chinese even though buying by Chinese nationals now accounts for 12% of new home sales.
Overnight the oil price has fallen more than US$1/barrel - Brent is down almost US$1.70/barrel. The gold price is also lower - having briefly hit $1,390/oz, it is back to where it was last week at US$1,370/oz.
Equities have gained back much of what they lost on Friday with the New York indexes up about 1% in mid-afternoon trade.
Our currency starts today higher. The NZ dollar opens at 85.7 USc, 94.3 AUc and the TWI is at 79.9.
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 »
Daily exchange rates
Select chart tabs
5 Comments
FAST-GROWING milk brand a2 is being accused of running a scare campaign that denigrates normal milk and damages the dairy industry.
A2 Corporation differentiates itself by producing milk containing only the A2 milk protein. Other milk contain both the A1 and A2 beta-casein proteins. A2 Corp says that there are digestive health benefits from a2 milk, a claim denied by Parmalat Australia chief executive Craig Garvin.
"Our farmers are of the view that all dairy is good and the vast majority of production is A1. Farmers are not interested in a divisive conversation," Mr Garvin said. "Consumers are confused. We get calls all the time.
"It's a bit of brand damage for the whole industry."
The a2 product commands premium prices on retail shelves and its share of the total fresh milk market by value has crept up to around 9 per cent from 5 per cent in 2012.
Some of those share gains have come at the expense of Parmalat, which processes 800 million litres of milk a year, produces one-third of fresh milk and owns the Paul's brand.
http://www.stockandland.com.au/news/agriculture/agribusiness/general-ne…
Except the A2 claim seems founded on science.
My understanding is there has been several years of opportunity for NZ to move to A2 cows. I mean NZ should be about quality not cheap quantity and chasing the profitable niches, yet we dont.
Worse, lets just ignore any risks to our business model as mitigating it might cost a few dollars more.
regards
Farmers can take whatever view they wish. It won't change the effect A1 beta-casein has on the human body.
Next thing, farmers will be telling us:
"this conversation about the harmful effects from overconsumption of diary products in the western diet is confusing consumers and causing brand damage for the whole dairy industry. Researchers should stop this obsesive focus on finding what is good for us and start promoting milk!"
Here is what I would call a must read cautionary tale for anyone involved in farming- land use practices and the evolution of BT resistant parasites.
http://www.wired.com/wiredscience/2014/03/rootworm-resistance-bt-corn/
it is a similar story to the feeding antibiotics to stock -> antibiotic resistant superbugs.
More on Aussie housing & nice chart here - 'Housing undersupply to keep crash at bay'
http://www.theaustralian.com.au/business/economics/housing-undersupply-…
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.