Here's my summary of the key events overnight that affect New Zealand, with news its not a good time to own ships, but it a great time to be in airfreight.
But first, American productivity jumped in the September quarter, up +3.1% with output growing faster than hours worked even as pay increased +2.3% in the past year. This was the first quarterly improvement in productivity in the past four quarters and erases the productivity declines of the past three.
Activity in the American service sector also expanded at a fast clip in October. There were two surveys out overnight, one suggesting a sharp rebound in activity, the other more of a moderation. But both recorded their expansion index at 54.8.
There was a similar services survey out for China and the expansion there was a much more moderate 52.4.
In Germany, a new bill before their parliament wants to force Germans to disclose their dealings with offshore firms in tax havens and make banks liable for lost tax income if they conceal their clients' business with such firms.
The glut of shipping capacity that has driven down ocean freight rates will worsen through 2020, Boston Consulting Group says. In contrast, data for global air freight markets in September shows that demand, measured in freight tonne kilometers, rose +6.1% year-on-year. This was the fastest pace of growth since the disruption caused by the US West Coast seaports strike in February 2015. Modern products are smaller and lighter and are updated with software.
In New York, the UST 10yr yield is stable today to 1.81%.
The US benchmark oil price is down again today, and is now just under US$44.5 a barrel, while the Brent benchmark is above US$46 a barrel.
The gold price lower too and now just under US$1,300/oz.
The New Zealand dollar is higher again this morning, now at 73.3 US¢. On the cross rates it is now up at 95.4 AU¢, and against the euro at 66 euro cents. The NZ TWI-5 index is at 76.9.
If you want to catch up with all the local changes yesterday, we have an update here.
By the way, for users of our rate comparison tables, we have issues this morning displaying them. We are working on it and hopefully it will be back soon.
The easiest place to stay up with event risk today is by following our Economic Calendar here ».
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