Here's my summary of the key news overnight in 90 seconds at 9 am, including news focused on commodity prices.
But first, US and China manufacturing PMIs out overnight where broadly positive especially in the US where factory employment growth hit a 2½ year high boosted by further strong rises in output and new orders. This was broadly confirmed by the Richmond Fed survey.
In China factory growth is more moderate but still expanding, surprising some on the upside. But in Europe, its manufacturing PMI reached a 14 month low, held positive only by reasonable German data.
Back to China, there are reports out today that regulators there are orchestrating a move through one of the big state-owned banks to ease rules on mortgage lending as the government seeks to bolster the country's flagging property market.
Back in the US, overnight their Treasury Department unveiled tougher-than-expected changes relating to tax inversions, which have surged this year and caused concern in Washington about the threat posed to the American. corporate income tax base. These rules are necessary because of the perception that US tax rules are no longer 'competitive'.
But the big story today will center on commodity prices. Australia's exports are suffering significant stress from that for their mineral and mining commodities, and today we will get to see the size of the pain New Zealand may be facing on the plunge in dairy prices. It's not all one way however; the red meat sector is looking pretty bright and there are pickups for seafood, forestry and horticulture.
UST 10 yr bond yields slipped again today on Wall Street and are now at 2.55%.
The oil price is still weak but essentially unchanged at just under US$92/barrel and the Brent benchmark at under US$97/barrel. Gold has made a bit of a recovery and is now up to US$1,222/oz.
We start today with our currency lower again and now just on 80.6 USc, lower against the Aussie at 91.2 AUc, and the TWI is down to 78.1.
Not only do we have the Fonterra result and payout announcement due soon, we also get the August trade balance this morning. Neither are expected to be positive for our currency.
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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4 Comments
"The ball is now in his court. Either he quits now - or waits for his MPs to choose the time of his execution."
The problem is apart from David Parker I dont see anyone else of the "presidential quality" needed to take on JK.
"David Cunliffe....8><---....won his electorate vote, National won the party vote in his New Lynn electorate by about 1500 votes."
If that doesnt signal his execution, nothing does.
"Messrs Robertson and Shearer may have held their seats but both men lost the party vote in their electorates"
ditto...
http://www.stuff.co.nz/national/politics/opinion/10535869/A-lame-duck-r…
http://www.odt.co.nz/news/national/316702/parker-poised-return-labour-f…
regards
The idea that winning the Party Vote in your electorate is the criteria for leadership is slightly insane in a MMP world of several significant parties on the left and one giant party on the right. Really it harks back to the First Past the Post idea that in order to be leader you have to have gotten a safe electorate seat.
That is arbitrary and unsound a measure as suggesting National's leaders should only come from those electorates where the percentage of total electors voting National actually increased. In which case viable National leaders would be either Chris Bishop or Nuk Korako.
Arrgghhh. I am getting really fed up with that advert in the middle of the article bouncing the text up and down and playing without any way of stopping the noise.
Also, any click accidently outside the main site frame takes you to an advert too.
Nothing to do with the story just getting to the point I can't be bothered reading articles.
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