Here's my summary of the key events overnight that affect New Zealand, with news we are being eyed up as part of a shift of rich Chinese.
But first, in the US, consumer spending rose more than expected in September as households boosted purchases of motor vehicles and inflation increased steadily to +1.7%. The Fed takes notice of these PCE measures and as they are about to start their next FOMC review, this data could be quite influential.
The return of inflation may come from changes to central bank monetary policies. But it may also come from China's manufacturing base. They seem to have reached the end of their tolerance for deflation.
In China, authorities there are getting concerned about the rise and rise in the price of coal. They issued a veiled warning about "market irrationality" today with the standard threats against 'hoarders'. On the same day, there was a major fatal mine accident in China that has killed at least 15 people and left 18 others missing, local authorities said.
And speaking of mature industries struggling with the pace of change, South Korea said overnight it plans to subsidise more than NZ$13 bln on ships from local yards to stave off the collapse of its shipbuilding industry as global trade moves away from containerisation. They have seen one of their largest shipping lines go bust, and another state-owned cargo line is only afloat because of its ownership. In Japan, they are dealing with the pressures by downsizing.
Back in China, a new report of the investment intentions of their very wealthy shows there are more than 800,000 of them with wealth over NZ$20 mln. They are worried and restless. Most are worried about the relentless devaluation of the Chinese currency, and most want to emigrate. More than half are targeting the US, with the next most popular destinations being Britain, Canada, Australia, and Singapore. New Zealand is actually the eighth most popular escape target, equal with Sydney on 3.8%. When you do the numbers, that suggests about 30,000 high net worth Chinese are actively looking to move to New Zealand.
In New York, the UST 10yr yield is down -1 bp today at 1.84%.
The US benchmark oil price is sharply lower today and now under US$47 a barrel, while the Brent benchmark is at US$48 a barrel.
The gold price is lower too at US$1,273/oz.
The New Zealand dollar is pretty much unchanged this morning, now still at 71.5 US¢. On the cross rates it is at 94 AU¢, and against the euro at 65.2 euro cents. The NZ TWI-5 index is at 75.7.
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 ».
Daily exchange rates
Select chart tabs
45 Comments
http://www.newshub.co.nz/business/solid-energy-sale-will-be-some-relief…
Crown ie...taxpayer loses....and guess who who was the Key figure in Sordid Energy fiasco.
Why none other than the person who feels......"Relief"
and as usual the sheeple will believe the spin from the government about why it went under without reviewing the actual financial history
if they had not had to take on as much debt to bump up there div back to the government, they could have weathered the downturn and bad decisions they made.
the only thing I agree with them on is government should not be involved it needs to be at arms length like Temasek Singapore so MPS can not suck out more that should be taken and they are allowed to grow for the benefit of future generations.
we should have all our SOE's in such a structure
A grain of truth in USA spending.
http://www.reuters.com/investigates/special-report/usa-farm-debt/
Perspective is everything. Sin some...lose some.
well ego, how would you like to be in a business that looked like this? 30 years of trend takes a bit of breaking.
The GM lobby might want to take a pause:
http://www.nytimes.com/2016/10/30/business/gmo-promise-falls-short.html…
As a result, the falling price of gold is more important than simply being an opportunity for schadenfreude around the likes of Glenn Beck or John Paulson or Zero Hedge…
My hope is that the price of gold will continue to fall, that goldbugs will look increasingly silly, and that as a result Americans with savings will conclude that the best thing to do with those savings is to put them to work in a productive manner, rather than self-defeatingly trying to protect what they have. Read more
I don't think so. It's not just gold.
It is actually a terrible indictment of the Chinese situation, if their weathiest want to flee it is because they see no future in China.
Your quote about America misses the point that the US was built on the accumulated wealth of Europe fleeing from recurring chaos, the poor huddled masses were just brought in to provide cheap labour.
No future in China = no future economy anywhere. We will not be spared.
But, if i was wealthy in China, i would be doing everything to get somewhere where there as few people as possible, where resources are relatively more abundant per capita and as far away from potential trouble as possible.
From a NZ view, their arrival is of no ultimate benefit.
Private ownership of business enterprises was allowed from the mid 1990s. China is now the world's second largest economy, with more than half its GDP generated by the private sector. That is an enormous private sector, so massive opportunity to build standard trading businesses. Some have grown very large. To jump to the conclusion that hard and honest work is not part of this is just plain prejudice. Every country, especially large ones, will have some element of 'corruption'. That is just what happens when you put large numbers of people together. China's modern economy is young and immature. No different to Europe in a different age, the US later, even Australia and New Zealand. During this phase, all sorts of odd things can happen. But in the end, the people demand laws and rules to clean things up.
yep...and when you look at the shambles in the US I sometimes wonder who has the corrupt system? China is also moving in some postive directions, especially re climate change and so on. They are getting things done.
I suspect most of the prejudice is form just too many immigrants at once. .. a feeling of being overwhelmed and out crowded. This is why we need to slow the numbers down, otherwise resentment will boil over.
Absolutely, David. I would recommend anyone interested in this chapter of Chinese history to read Hank Paulsons' book on this "Dealing with China," as he was was head of Goldmans Asia division. There is a Chinese saying :Western technology, Chinese hard work." Corruption and capital outflows are a problem but it's very short sighted not to recognise the huge effort and structural changes over the last 30 years in China.
30000 high wealth Chinese coming to New Zealand because they are worried. The Hurun report is based on data from 'about' 300 high wealth Chinese individuals , 40 percent who have already migrated . Whats the population of China again . Are we that worried about real estate in New Zealand that this type of article gets tossed in to the melee. Lets be honest , who knows what will happen in China. One fact , the Chinese have stopped purchasing real estate in Vancouver. A survey based on about 0.0000003 percent of the population , funny.
The nightmare is over people! It is the day after Halloween.
"All Saints' Day, also known as All Hallows' Day, Hallowmas, Feast of All Saints, or Solemnity of All Saints, is a festival celebrated in honour of all the saints, known and unknown".
Full Speech: Donald Trump Rally in Grand Rapids, Michigan 10/31/2016
https://www.youtube.com/watch?v=oJtfWxhQOl0
Donald Trump will win the presidency of the USA
Winston Peters will be the PM of NZ.
I am old enough to remember our PM, Norman Kirk. He once famously said "People don't want much, just someone to love, somewhere to live, somewhere to work and something to hope for." How have we, as a community, regressed from Norman Kirk to John Key? It is the saddest thing to see our Green Islands turned into a cesspit.
Winston Peters will drain the swamp.
I to, when wanting to come over all rational and nuanced write whole articles in CAPITAL LETTERS. In Trumpland Michael Moore makes the point that Trump, when talking about the Ford plant relocation said " I will tax the vehicles and no one will buy them." That is why he is popular and it's a fair point.
He's right on some things, the American ppl are tired of struggling, as are indeed many other ppl around the world. They are tired of the bulls**t form the Clinton clones around teh world, just look at brexit as a second example. Lots of people want change, the trouble is Trump isnt that vehicle of positive change, Bernie Sanders might have been but he's toast. What Trump would do if he wins is make things even worse, faster than Clinton.
I think he's wrong on the remaking of the Republican party unless Trump's defeat leads to a total implosion of teh GOP and the wackos he's a front runner of get kicked out....fat chance.
The really scary thing is for non-americans is if he wins we are doubly screwed IMHO. He'll demand his pound of flesh to keep us "safe" which he'll use to line rich americans pockets even more and feed joe US avreage a few crumbs. The New Chicgo gansters it seems might win the Whitehouse in 7 days, frightening, truly frightening.
Anyone got access to this article from NBR?
NZ taxpayers will continue funding Clinton Foundation’s flagship
https://www.nbr.co.nz/subscribe/194939
Here's it in brief:
Political controversy surrounding Hilary Clinton’s philanthropic efforts has found its way to New Zealand, reports Jason Walls. New Zealand taxpayer funding, through MFAT to the Clinton Health Access Initiative health initiative, will continue with $6 million more budgeted to be donated to the fund on top of $7 million already donated, NBR has learned.
So we "pay to play" too?
just an article a couple of months old
https://www.nbr.co.nz/article/nz-keep-funding-clinton-aid-project-rich-…
We got off lightly. "Gillard also donated $300 million of our money to the Clinton-affiliated Global Partnership for Education.
Lo and behold, she became chairman in 2014 and has been actively promoting Clinton as president ever since — in a campaign video last December slamming Trump, in opeds trumpeting the next woman president and in appearances with Clinton spruiking girls’ education.
The Abbott government topped up the left-wing organisation’s coffers with another $140 million in 2014, bringing total Australian largesse to $460 million, according to a press release from Foreign Minister Julie Bishop
And yet, apart from the beautiful friendship with Gillard, what did Australia get from the Clintons for all that cash?
A whole lot of trouble is what.
The latest treasure trove of Wikileaks emails released last week shows that Australian green groups have been secretly funded to destroy our coal industry by environmental activists connected to the Clinton campaign."
Can do kiwis can destroy a coal industry all by themselves...
http://www.dailytelegraph.com.au/rendezview/miranda-devine-foreignfunde…
I think with the Clinton Aid, charity begins at home.
I suppose NZ must get a benefit from contributing, but I don't get it.....that is right,I as the average person does not get it....but it must go towards entertainment expenses of the high and mighty...perhaps.
It stinks. One good thing about a Trump presidency is that he'd dissect that trust's dealings like a cat on a hot tin roof. I recall one of Trump's kids saying that the VP would run the country while Trump was busy "making America great again". I does seem a big part of that might involve exposing the corruption in lawmaking/political practice over there - it would be just what is needed.
He has said these things about his intentions in the early days of taking office:
A five-year ban on White House and congressional officials becoming lobbyists after they leave government service.
A lifetime ban on White House officials lobbying on behalf of a foreign government
A complete ban on foreign lobbyists raising money for American elections. That's what's happening.
http://www.newsmax.com/Newsfront/Trump-Plan-First-Days/2016/10/22/id/75…
I assume our very own MFAT is considered to be one of those foreign lobbyists!
He might be a little more cautious than you think, or else he'll attract more attention to his own extremely dodgy Trump Foundation
http://www.independent.co.uk/news/world/americas/us-elections/us-electi…
"The Foundation is currently under investigation by the New York Attorney General, Eric Schneiderman, over alleged legal breaches and possible “self-dealing” – the illegal act of charity leaders using donations to further their own interests."
The idea that this is the guy to clean up the country is insane.
Here's a picture of Trump standing next to a portrait of himself the night be bought it with his charities money. The portrait now hangs on the wall of one of his golf resorts. Hard to blame the minions for his own actions.
https://www.washingtonpost.com/news/post-politics/wp/2016/09/27/trump-i…
Trump admitting sexual assault. Clinton emails. Trump charity fraud. Clinton emails. Trump calls for nuclear proliferation. Clinton emails. Trump calls for national stop and frisk. Clinton emails. Trump violates trade embargo with Cuba. Clinton emails. Trump sued over Trump U fraud. Clinton emails. Trump bribes DA. Clinton emails. Trump doesnt pay taxes for 20 years. Clinton emails. Trump employs campaign manager involved in illegal corruption with Russia. Clinton emails. Trump calls for ban of an entire religion from entering US. Clinton emails. Trump lied about support for Iraq War over and over in debate. Clinton emails. Trump in court for rape of a minor. Clinton emails. Trump unaware of Russia's Crimea occupation. Clinton emails. Trump unaware of situation in Syria. Clinton emails. Trump penalized for racist housing discrimination. Clinton emails. Trump files for bankrupcy 6 times. Clinton emails. Trump goes 0-3 in debates by showing scant knowledge of world politics. Clinton emails. Trump slams people for being POWs. Clinton emails. Trump calls mexicans rapists. Clinton emails. Trump questions judge's integrity because of parent's heritage. Clinton emails. Trump deletes emails involved in casino scandal. Clinton emails. Trump commits insurance fraud after florida hurricane. Clinton emails. Trump has dozens of assault victims and witnesses come forward with allegations of abuse. Clinton emails. Trump attacks former Ms America for being overweight. Clinton emails. Trump tweets about sex tapes at 3am. Clinton emails. Trump calls for US citizens to be sent to Gitmo. Clinton emails. Trump calls for more extreme forms of torture to be used. Clinton emails. Trump asks why cant we use our nukes if we have them. Clinton emails. Trump calls for offensive bombing attack on sovereign nations because someone gave the middle finger. Clinton emails. Trump calls to kill women and children of suspected terrorists. Clinton emails. Trump says women should be punished for having abortions. Clinton emails. Trump makes fun of disabled people. Clinton emails. Trump calls for end of freedom of the press. Clinton emails. Trump calls global warming a chinese hoax. Clinton emails. Trump praises Putin and Kim Jong Un's strong leadership. Clinton emails. Trump openly admits to not paying his employees during debate. Clinton emails. Trump calls Obama an illegitimate noncitizen hundreds of times over 7 years. Clinton emails. Trump uses campaign donations to enrich his own businesses. Clinton emails. Trump says Ted Cruz involved in JFK assassination unironically citing National Enquirer. Clinton emails. Trump says laziness is an inherent trait in black people. Clinton emails. Trump refuses to release tax returns. Clinton emails.
.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.