Here's my summary of the key news over the weekend in 90 seconds at 9 am, including news some very high level mind games are being played in the oil market as production surges.
But first we should note that markets are partly closed in the US for their Columbus Day holiday.
China reported a surprisingly strong trade performance in September and this may reduce the chances of aggressive policy action such as an interest rate cut or an increase in stimulus measures. But there are some who doubt the result.
Still, even if all their issues are accounted for, China's exports would have risen an impressive +12% in September rather than the +15.3% reported.
Somewhat validating the scepticism however, China's September vehicle sales rose just 2.5% from a year earlier, its slowest pace in 19 months. It was dragged down by sluggish sales of trucks.
In Australia, lending and loan commitment data out yesterday showed these still growing at a heady pace.
UST 10yr yields are now at 2.29%. New Zealand swap rates have again moved lower in response and the curve has flattened at the same time. One year swaps are back to June 2014 levels, while five year swaps are back to August 2013 levels.
The oil price has also fallen further and is now under US$86/barrel with the Brent price now under US$89/barrel.
Reuters is reporting that Saudi Arabia is quietly telling the oil market it would be comfortable with much lower oil prices for an extended period, a sharp shift in policy that may be aimed at slowing the expansion of rivals including American shale producers.
Gold has popped up slightly to US$1,227/oz.
We start today with our currency level a little higher again. The NZD is at 78.8 USc, 89.9 AUc, and the TWI is at 76.7.
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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6 Comments
That's because Xero are going in at the top, competing for business with the entrenched deep pocket market holders.
Not going in with what they do best, develop into straight forward tools for those who are looking for a platform to do what others can't/won't. You can see the strain with the Zero product getting more and more bogged down copying accountant-ese, rather than being a finance tool built for business use.
.... that's exactly what happens when you try to buy marketshare
Happened with ICL/Fujitsu, happened with Xero, going to happen to Fonterra if they're not careful. (and ICL/Fujitsu was a _lot_ bigger than Xero & Fonterra)
Cheap gas eating oils lunch.
"Gas is now a direct competitor to oil and “a threat to oil demand growth”, Kleinman said, adding that it has the potential to be used as a substitute fuel for oil in every sector except aviation. “The gas-oil price spread was a US story,” said Kleinman, but now it is becoming a worldwide phenomenon that will affect the structure of future oil demand, he added. "
http://interfaxenergy.com/gasdaily/article/13903/shale-gas-a-disruptive…
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