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Growth concerns in the US, China and Europe; Australia grows ag jobs fast; UST 10yr 2.58%; oil and gold lower; NZ$1 = US$0.813, TWI = 78.6

Growth concerns in the US, China and Europe; Australia grows ag jobs fast; UST 10yr 2.58%; oil and gold lower; NZ$1 = US$0.813, TWI = 78.6

Here's my summary of the key news over the weekend in 90 seconds at 9 am, including news of growing concerns at weakening global growth.

First, economic activity in the United States probably rose less than expected in August, but still consistent with the economy expanding at a moderate pace for the rest of this year. That's what The Conference Board said over the weekend.

At a G-20 pre-summit meeting of finance ministers in Cairns, China said it will not dramatically alter its economic policy because of any one economic indicator. The reassurance comes just days after many economists lowered growth forecasts having seen the latest set of weak data.

Also, at that G-20 meeting the United States urged eurozone countries to 'boost demand' in order to reduce unemployment and avoid deflation.

Staying in Australia, and an update on those amazing - almost unbelievable - Aussie jobs numbers last week, it turns out they may be right. Time will tell of course, but the detail shows that the strength was caused in large part by fast-growing employment in agriculture as they gear up to meet strong demand from China.

The New Zealand election over the weekend scored some new benchmarks worth noting. National increased both its share of the vote and seats in Parliament for the third time in row, scoring the highest third term share of the vote in New Zealand since the 19th century, and becoming the first party able to govern alone since the MMP system was introduced in 1996.

In New York, the UST 10yr benchmark bond yields ended the week down at 2.58%. 

The price of oil has moved little over the weekend. The US oil price is now just on US$93/barrel and the Brent benchmark is just under $98/barrel. Gold continued its fall and is now at US$1,218/oz.

We start the week with our currency slightly lower against the US dollar and now just on 81.3 USc, higher against the Aussie at 91.1 AUc, and the TWI is at 78.6. It will be interesting to see if there is any election impact on the currency when markets open here today. It seems unlikely though.

If you want to catch up with all the changes on Friday 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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2 Comments

David Cunliffe took the Labour Party to its worst election result since 1922 ...

 

... and yet he appeared so upbeat and joyous on election night after the result ....

 

And he's now pushing for a quick resolution to the questions over his leadership .....

 

.... God knows what happy pills the fellow must be on , but lawdy lawdy , I wish I could get me some !

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You can - just go through your spam folder - there are some links that will lead you to the various suppliers :)

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