Here's my summary of the key news overnight in 90 seconds at 9 am, including news of a coup in Thailand.
But first, previously owned US home purchases increased in April as a bigger supply of properties lured buyers and raised prospects for a stronger spring buying season. The main growth was in the West, especially Texas. It was the first rise this year.
A key gauge of China's factory activity showed signs of stabilising in May, with their HSBC PMI reducing its contraction suggesting their economy was still struggling to gain traction. The result was better than expected however. And China actually added jobs faster than forecast as the move away from manufacturing gathers pace.
In Europe, output is expanding quite strongly despite France falling into contraction and being lower than expected, and in the US factory activity is in even better shape with output rising at its fastest pace in over 3 years along with strong rises in production and payroll growth. The US measure beat expectations. Although slightly higher last week than the one before, the initial claims for US jobless benefits is maintaining a declining track.
American car sales are up 7% in May.
In a dramatic turn in Thailand, the military called a meeting of the rival political groups that have paralysed the country to seek a solution. Once together, they arrested them and took over the country in a coup. It's going to be tough there for a while.
You think our NZ$76 billion government debt is large? Well the British public debt is about to hit £1.27 trillion with interest payments of £1 billion - per week! Their annual interest is more than our whole debt.
Benchmark UST 10 yr bond yields were up again overnight, now at 2.55%. Stocks are rising in New York in late trade. Oil is down and gold is up but still below US$1,300/oz.
On the exchange rate, we start today with the NZ dollar lower at 85.5 USc, at 92.8 AUc and the TWI is now 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 »
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15 Comments
Just to rub this in just a little bit more:
http://www.marketwatch.com/story/dream-of-us-energy-independence-was-ju…
Some of us have been saying for some time that the US energy 'revolution' was largely based on hype. Looks like some of us were absolutely spot on.
The UK Guardian has now picked up this rather important story (odd that it is not being carried on here, chuckle?):
http://www.theguardian.com/environment/earth-insight/2014/may/22/two-th…
'''Next month, the US Energy Information Administration (EIA) will publish a new estimate of US shale deposits set to deal a death-blow to industry hype about a new golden era of US energy independence by fracking unconventional oil and gas.''
A 'death-blow' no less. Powerful stuff.
The great shame about all this is that the brief burst of shale production could have been used to gain time for the imperative transition of the US economy away from oil. Instead of which it has been p+ssed up against the wall under the twin banners of ' business as usual' and ' Saudi America' - something which has been made much easier to accomplish with the acquiescence of the cheerleading media.
"we could be at risk of an oil shock as early as within the next five years."
No, really? somewhere before 2020 or 2018? as predicted by ASPO etc.
http://www.theguardian.com/environment/earth-insight/2014/mar/28/global…
regards
This may be the "gadget" to go for, a different method of harnessing wind power.
Much better than those noisy, expensive and ugly windmills.
http://machinedesign.com/news/no-more-windmills-wind-catchers-use-ventu…
"Many inventors have questioned the logic of harnessing wind power by situating heavy gearboxes, generators, and rotor blades hundreds of feet in the air, as is the case for conventional horizontal wind turbines. One alternative design that does away with all these entities looks as though it is getting traction from both investors and a few potential customers.
SheerWind in Chaska, Minn., has fielded a wind power idea based on the Venturi effect. Basically it collects wind and compresses it in a funnel-like chamber before sending it to turn the blades of a generator. The generator sits on the ground rather than at the top of a tower. The brain child of Dr. Daryoush Allaei, a mechanical engineer, the wind catcher is called the Invelox. A 90-foot-tall version of the device, says Allaei, could create the same amount of power as a 1.8-MW commercial wind tower. But it would be a third of the height, sit on a seventh of the land, and use turbine blades eight times smaller in diameter than what you'd find on a utility scale turbine. Allaei also claims the electricity would be at least 40% cheaper to produce."
Hi,
Well get this bit over, wind isnt oil, or it isnt a transport energy.
Otherwise I have allready read it and Im following them with interest. The thing I like is its relative simplciity and ease of manufacture compared to conventional wind turbines, it looks a lower tech requirement to build and maintain.
regards
I think that would be unlikely as this news doesn't fit with most peoples world view / belief set or the lastest popular meme of 'Saudi America'. When you are swimming in techno-cornucopia kool-aid then acknowledging news like this would surely be a far too bitter pill to swallow.
Oh no dont tell Profile his pet Govn agency is looking utterly incompetant....
On the other hand, ASPO etc with competant oil geologists and the hard yards done by ppl it seems who can do spreadsheets and real research have been saying this for years.
Roll in the class actions by burnt investors I hope, I mean industry claims cant be that hard to prove as incompetant if not fraudalent.
Last year, the Post Carbon Institute (PCI) published Hughes' study, Drilling California: A Reality Check on the Monterey Shale, which conducted an empirical analysis of oil production data using a widely used industry database also relied on by the EIA. The report concluded that the original EIA estimate was "highly overstated," and unlikely to lead to a "statewide economic boom.... California should consider its economic and energy future in the absence of an oil production boom."
A spokesman for the Institute, Tod Brilliant, told me:
"Given the incredible difference between initial projections of 15 billion barrels and revisions to 600 million, does this not call into account all such global projections for tight oil?"
and every financial "guru's" (Ambrose P springs to mind) claims that all wulll be well as well.
regards
http://www.zerohedge.com/news/2014-05-22/hot-heels-its-china-breakthrou…
This is all tied to the Sunni Chechnyan funded militants getting their funding from Saudi and Qatar. The Shiites now control most of Iraq, Syria and Hezbollah.They also control a huge amount of the oil in the Gulf. Iran is a powerful rising force in the middle east and the most likely place for the pressure to erupt is Pakistan. The funding of the Chechnyan rebels is a very sore thorn for Putin. He is being forced into the Shiite camp and this must be putting the fear of god into the House of Saud and Qatar. Somehow this links up with Benghazi, the killing of a USA ambassador and the kidnapping of young girls in Nigeria.
If you get your lights shot out for reading this stuff, don't blame me.
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