Here's my summary of the key events over the weekend that affect New Zealand, with news many developing economies are borrowing up large just to stay afloat.
But first, in the US there is a sense that the tight markets for renters may be starting to ease. Vacancy rates are rising, rent growth is slowing, and demand for new apartments in the first quarter slumped from its typical level.
Also in America, and in an unusual more, all four living current and ex Fed chiefs have found it necessary to 'agree' that the US is not is heading back toward recession despite concerns about slow global growth and the expansion’s advancing age. Also interesting in this panel discussion, Janet Yellen said the US was "near full employment", a clear signal the next rate rise is close. Two more are expected in 2016.
She also thought the focus on the the too-big-to-fail debate by one regional Fed president was a helpful contribution, even if she thought their current actions are effectively addressing the issues.
In Canada, they added far more jobs than expected last month as service sector hiring accelerated and the unemployment rate fell from a three-year high. However, some observers are wary of reading too much into the often volatile figures. Still, the report was the latest indication their economy grew strongly in the first quarter after struggling with the oil price shock last year.
Things are much tighter among emerging market countries. A surge in demand by commodity exporters in the developing world has pushed up lending from the World Bank this year to its highest levels since the aftermath of the 2008 financial crisis.
In New York the benchmark UST 10yr yield has seen a minor bounce after last week's sharp fall and is now at 1.72%.
The oil price is back up to just under US$40/barrel in the US, while Brent is up at US$42/barrel. Rig counts are still falling though.
The gold price is also up a small amount to US$1,240/oz.
And finally, the NZ dollar will start the week still within its tight range although a little higher against the greenback at 68.1 US¢, at 90.2 AU¢, and at 59.7 euro cents. The TWI-5 index starts at 71.4.
If you want to catch up with all the local changes on Friday, we have an update here.
The easiest place to stay up with event risk today is by following our Economic Calendar here ».
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19 Comments
How quickly all is forgotten
Today Australian Financial Review reveals NZ company promoting Foreign Trusts provides advice NZ laws are weak
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=116…
NEXUS Trust
who is NEXUS Trust?
http://www.nexustrust.com/intronz.htm
Principal - David Sceats LLB
Who is David Sceats?
http://www.nexustrust.com/directorprofiles.htm
It was all in the news back in 2013 - 3 years ago
In the thick of it was Nicky Hager - investigative Journalist
http://www.stuff.co.nz/business/money/8515361/Money-trail-leads-home-to…
Don't worry. I'm sure our Govt are on the ball and will launch an investigation in money laundering and offshore trusts as the Brits are doing.....
The US has added 17million people but only 5 million jobs since 2008, "nearly full employment." WHich proves the point, the jobs aren't there. The people are there, 3.5 people added for every 1 job.
The theory seems to be that if we keep saying everything is great, then people will act as though everything is great, and if everyone is acting as though everything is great, then surely everything is actually great. It's an experiment, I'll watch and learn, we have an economy that doesn't economise, the most popular ways to become rich don't involve work or production, you buy a house and watch it go up in value.
It's a despicable diversion away from reality offered up by those seeking to justify total incompetence and an inability to achieve what's claimed.
In July last year, the BEA reconfigured its GDP benchmarks to incorporate the results of the comprehensive 2012 Economic Census. That broad and deep survey found much less “recovery” than the BEA had originally anticipated through its system of stochastic predictions. It is believed that these statistical agencies of the government actually measure results in the real economy but in reality they are really just sampling, benchmarking and then chaining together calculated variance. These are complex processes that leave wide open the introduction of many subjective factors – including trend-cycle. Read more and more
2 in 3 Aucklanders are overweight or worse. The healthcare system is going to feel the full weight of this. One of the best investments for the future is to keep yourself fit and healthy. Those overwight people are going to crush the healthcare system with stomach stapling, diabities, mobility scooters and all the other stuff they need to continue their obese existance. Did I mention that TPPA is also going to push healthcare prices up from the supply side?
Better grab an extra bun and coffe for the drive to work, in the worlds fattest city.
http://www.msn.com/en-nz/news/national/aucklands-intractable-health-cri…
"The main economic argument for “fat taxes” and other paternalistic measures to reduce obesity is that obesity causes social costs to be borne by the National Health Service.
However, research suggests that additional health costs from obesity are offset by reduced costs elsewhere, partly because obese people live shorter lives.
"By 56, the obese are the most expensive but not over their lifetime.
"We have to remember that the obese and smokers tend to die earlier and the healthy incur very expensive 24 hour care later in life for diseases such as dementia."
I would have thought anti population types would be pro obesity but I guess nothing is straight forward.
http://www.telegraph.co.uk/news/health/news/9359212/Obese-and-smokers-l…
It rains in Auckland most of the year? http://www.wired.com/2015/09/pickup-truck-electric-bikes-may-better-car/
..contrary to popular belief, rain does not hurt. No does wind. Walking can a useful transport method to.
If Auck put a fraction of the money into cycleways that you do in your stupid motorway projects, you might have some chance of future proofing yourselves. Lack of foresight is astonishing.
I've seen plenty of people towing their kids, trailers, kayaks etc. round here in Christchurch. Friend of mine has been known to transport 5m long steel beams by bike. Regardless, the vast majority of journeys do not need a trailer, and cycling in the wind and rain is a beautiful reminder of how easy it is to cope with "hardships", and to stop being so damn soft. If you want more cycle lanes, the best way is to start cycling and prove that there's a need. Nothing will get built if no-one is requesting it and if it seems no-one wants to cycle.
Fresh water freezes in winter; pretty fast... and thats whats pouring off the icecaps/greenland.
Just read up on it all...
Here just for you :)
http://www.independent.co.uk/environment/arctic-warming-why-record-brea…
(sighs)
The ONLY good news is ExxonMobil got a subpoena to provide emails/docs going back to 1977 as they "knew" about Climate Change (quote - "Just like big tobacco").
The Independent article is a bit dated for something as dynamic and exciting as sea ice. I see Murmansk and Vardo haven't been this warm since 1940. Struggling to see the "absurdly warm" mentioned in the breathless article. They must have forgot to tell the thermometers. No wonder the Independent's circulation is through the floor
Greenland really? SMB is above average of late.
Really Exxon knew about climate change? Who didn't?
http://data.giss.nasa.gov/cgi-bin/gistemp/show_station.cgi?id=638221130…
http://data.giss.nasa.gov/cgi-bin/gistemp/show_station.cgi?id=634010980…
http://www.dmi.dk/uploads/tx_dmidatastore/webservice/b/m/s/d/e/accumula…
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