Here's my summary of the key events overnight that affect New Zealand, with news China has moved against one of its largest private companies and their international buying spree.
But first in the US, delinquencies on American sub-prime car loans are rising quickly. The focus is on this because of a court case involving Fiat-Chrysler and Spanish banking giant Santander. No-one is suggesting this type of lending will cause another global financial crisis (there just isn't the scale), but the type of lending practices that got the world into trouble in 2008 with mortgages is evident in these car loans, some of which are failing and now subject to lawsuits.
Across the border to the north, data out for June real estate sales shows a sharp cooling, especially in the volumes sold. Canadian national home sales dropped -6.7% from May to June, and that is -11.4% below the same month last year. Listings rose, but only slightly. And the national average sale price actually edged up +0.4% in June to NZ$543,100 even though that level is down -10% since April. (There are wide variations in prices in Canada across their regions.)
China has released some impressive economic data for June and the second quarter. According to official statistics, China's economy grew at a +6.9% rate which was slightly above expectations. And retail sales were up a very impressive +11%, also higher than what markets were anticipating, and was the highest since December 2015. The data released for industrial production was strong too.
The data saw commodities like copper rise and which is now up +7% in seven weeks.
And just how serious the Chinese authorities are in stopping wasteful outbound investment was highlighted yesterday when they stepped in and forced banks to stop lending to one of their major private companies which as been on an overseas buying spree. It was not HNA this time, however. But it was a move that spooked Chinese equity markets with the Shanghai index down -1.4% on the day.
In South Korea, where the GDP per capita is +9% higher than for New Zealand, they are raising their minimum wage. But it has been unusually low, and the new rate is just 6,030 won or NZ$7.34 per hour. Our adult minimum wage is more than double that at NZ$15.75/hour.
In New York, the UST 10yr yield has started the week slightly lower at 2.31%.
The price of oil is down just slightly today and is now at just on US$46 a barrel, while the Brent benchmark is now just on US$48.50.
The price of gold is up by another +US$5 at US$1,233/oz.
And the Kiwi dollar is marginally lower today at 73.2 USc. But we are unchanged on the cross rates at 93.8 AU¢, and at 63.8 euro cents. As a result the TWI-5 index will start today 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 event risk today is by following our Economic Calendar here ».