Here's my summary of the key events overnight that affect New Zealand, with news global trade seems to be expanding faster.
But first, tomorrow all eyes will be on the US non-farm payrolls report and analysts expect a gain of +180,000. Today, the American unemployment claims report posted its largest weekly drop in two years. The American labour market continues its tightening.
And staying in the US, the former Goldman Sachs executive who is now the top White House economic adviser told Congress he could support legislation breaking up the largest American banks. It is a development that bolsters congressional efforts to reinstate the Depression-era Glass-Steagall law.
Global airfreight grew by +8.4% year-on-year in February. In fact it was stronger than that; given 2016 was a leap year, the year-on-year growth is a very impressive +12%. World trade is in very good heart, it seems. On the same basis, passenger traffic grew by +8.6%, driven by international routes.
We should also note that the EU has cleared the way for a Chinese takeover of the giant Swiss farm chemicals and seeds company, Sygenta, which also operates in New Zealand.
In India, their central bank has tightened monetary policy aiming to stem a flood of cash in the banking system and contain inflation without jeopardising investment. Instead of increasing their 6.25% benchmark rate, they have tightened through the money markets, unexpectedly raising their reverse repo rate.
And the building of the New Zealand Conference Centre might be coming at the perfect time. It seems that the NZ$520 bln per year Ameircan conference business is finding itself in jeopardy over the Trump Administration responses to perceived threats at the border - and conferences are being organised elsewhere to avoid the hassle factors building up just getting through US airports. Their loss will be our gain and only a minor shift will benefit us greatly.
In New York, the UST 10yr yield is currently languishing at 2.34%.
Oil prices are now over US$51.50 for the US benchmark, while the Brent benchmark is now over US$54.50 a barrel.
The gold price is marginally higher today by +US$3 to US$1,251/oz.
And the New Zealand dollar starts today essentially where it was at this time yesterday, at 69.7 USc. On the cross rates the Kiwi dollar is up a bit to 92.4 AU¢ and against the euro is at 65.5 euro cents. The NZ TWI-5 index is just under 75.
If you want to catch up with all the changes yesterday, 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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1 Comments
Problems in Australia's labor market have become stark over the past year as full-time jobs fell, part-time roles picked up some of the slack and many people quit hunting for work. As a result, unemployment remains below 6 percent despite a labor market that in reality has a lot more slack than that figure suggests. Read more
No wonder APRA is jumping up and down - there is nothing of substance underwriting the debt mountain.
Is Australia, like New Zealand, a nation that "kicked the can down the road" once too often?
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