Bernard Hickey details the key news in 90 seconds at 9 am in association with Bank of New Zealand, including news US stocks fell around 1% overnight as nervousness grew ahead of tonight's crucial non farm payrolls jobs report for the US economy.
Economists are expecting a rise of around 68,000 in August, which is around half the 117,000 rise seen in July. However, Goldman Sachs halved its forecast to 25,000 overnight, raising fears the world's biggest economy is sliding back towards recession.
US 10 year Treasury bond yields fell 8 basis points to 2.14% as investors worried again about a slide back into recession. See more here at Bloomberg on stocks and on US Treasuries.
Markets brushed aside data showing US factory output was actually slightly stronger than expected in August. See more here at Bloomberg.
Meanwhile, in Europe, factory output in August was weaker than expected. See more here at Bloomberg.
In China, factory output was also barely expansionary, but there are few signs yet that the authorities are willing to switch their focus from inflation fighting to boosting growth. See more here at BBC.
Overnight the Peoples Bank of China increased reserve requirements again to curb lending.
But there was a surprise cut in Brazil's official interest rate as it battles a very strong currency and worries about a slowdown in global growth. It surprised many because Brazil is also fighting inflation nearing 7%. See more here at Bloomberg.
In Australia, retail sales were stronger than expected. See more here at Bloomberg.
This reduced expectations for cuts in the Reserve Bank of Australia's cash rate. This tightend the expected gap between Australian and New Zealand interest rates, making the Australian dollar relatively more attractive than the New Zealand dollar. The Kiwi fell slightly versus the Aussie overnight.
Rugby World Cup debt
Meanwhile in New Zealand with one week to go before the Rugby World Cup starts, the costs to taxpayers and ratepayers are becoming clearer. Stuff reports about 20,000 corporate ticket packages are unlikely to be sold out of total hopes for 70,000 sales. The cheapest corporate packages are priced aroudn NZ$2,295 per person for two quarterfinals and the most expensive is for NZ$10,995 per person for a semifinal and final ticket.
In Dunedin, Stuff reports the Dunedin City Council has been told its debts linked to its new stadium will stress the council's finances for years to come. The report suggests extending the term of the loan by 20 years to 40 years and using any spare cash in the next decade to repay the debt.
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