Here's my summary of the key news overnight in 90 seconds at 9 am, including news of stronger manufacturing in the US.
New orders for American factory goods jumped a remarkable +10% in July from June (which were also higher) and car sales in August were unexpectedly strong for every manufacturer other than GM, offering further signs of strength in the manufacturing sector.
The Federal Reserve in this morning's August Beige Book review said economic activity largely picked up during the summer after hitting a soft patch at the start of the year, although this comprehensive survey showed few signs of pressure on wages.
Also, this morning the Federal Reserve finalised details of their new liquidity coverage ratio, which will require banks to hold a certain amount of assets that can be quickly turned into cash – to provide protection in the event of a future credit crunch. If the ratio were applied today, the banks would be US$100 bln short. They have until the end of 2016 to get compliant - a tighter deadline than that imposed by Basel III - two years tighter.
In China, their service industries strengthened in August, contrasting with declining manufacturing reports and suggesting a transition away from factory-led growth.
The Global Competitiveness Index was out overnight and New Zealand has moved up one spot to 17th. Switzerland, Singapore and the US took out the first three places. Australia was 22nd.
In Australia, their Reserve Bank governor is warning of excess 'investment' in property by baby boomers. He has challenged their Federal and State governments to deliver reforms to help prevent a dangerous bubble forming.
US stock markets were lower today although European ones rose on talk of a 'cease fire' in the Ukraine. They are dreaming. The UST 10yr benchmark bond rose again and is now at 2.43%.
The price of oil and gold both rose today. the US oil price is up $3 to US$95/barrel and the Brent benchmark is up $2 to $102/barrel. Gold is also up, now at US$1,268/oz.
We start today with the currency a little lower. We are now just on 83.2 USc, 89.0 AUc and that is the lowest in 2014, and the TWI is at 78.7.
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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11 Comments
Chinese mega internet shopping site Alibaba may list on the NYSE as soon as November ...
... at $US 200 billion , it will become the biggest IPO in history ...
Unlike it's US rivals Ebay and Amazon , Alibaba actually does earn meaningful profits , and warrants a lofty price tag ...
... Gummynostication Time : Alibaba will become the first publically listed company to attain a market capitalization of $US 1 Trillion ... nearly equalling the QV of the Cunliffes' house in Herne Bay ...
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