David Chaston details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news that ... the NZ dollar continues its fall as the world shuns risk. The euro countries are bleeding from continuous daily damage. Overnight, European bond markets were rattled despite what traders described as sizeable purchases by the ECB, something the Germans have been fiercely resisting. Italian yields topped 7%, while investors demanded the highest premium to hold French bonds since the inception of the euro. And in a somewhat inflammatory remark, Luxembourg's prime minister and one-time president of the EU Jean-Claude Juncker said the German debt level is a cause for concern; Germany has higher debts than Spain but "no one wants to know about that" he said.
And the Bank of England Governor said the UK faces a 'markedly weaker' outlook for economic growth and persistent danger from Europe’s debt crisis. English policy makers are saying they may need to expand their stimulus further.
In the US, the news was a bit better. Inflation data out overnight was very mild, mainly because lower oil prices; although even accounting for that, inflation is cooling in America. And a key measure of industrial output advanced in October more than forecast. There was also more evidence that key retailers are seeing growth.
In Australia, bankers are fretting over the added costs being imposed by their regulators as Basel III reforms are implemented. They are suggesting that those costs will need to be passed on to borrowers.
While in New Zealand, all eyes are on the election and there is little economic data being released this week. However, home loan approvals are holding at low-but-stable levels, with no sign of any 'spring bounce'. What this data does show is that banks seem to be favouring wealthier borrowers as the average loan amounts approved has jumped more than 15% in the last six months compared with the same period a year ago, even while the number of loans being approved is pretty much unchanged.
No chart with that title exists.
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.