Here's my summary of the key news overnight in 90 seconds at 9 am, including news US GDP grew 2.0% from the previous quarter and grew 2.3% from the same quarter a year ago.
While modest, it is still growth of US$612.5 bln in a year, growth that is 3.7 times the size of the whole NZ economy. In fact, the dollar amount of the US economic growth, even though it is 2.3% of their economy, represents 8.4% of the Chinese economy which itself is growing at a slower rate (7.4% pa). More economic growth is going on in the US than anywhere else in the world and more than most people realise.
Along the same lines, candidate Romney is touting that he will grow US employment by 12 million jobs in the next four years - the problem with that claim is that it is about what most economists are expecting for US job gowth no matter who wins.
In Europe, Swiss bank UBS has announced big job cuts - they aim to shrink the investment banking division, and all up that will cost 10,000 jobs companywide.
In Australia, Fitch has reaffirmed their AAA credit rating after a budget update showed the economy there slowing and tax revenues declining. The Australian government has also reaffirmed its commitment to refocussing its economy on Asia, although the move was greeted with some scepticism. The big change is to make learning an Asian language a core subject in schools.
In New Zealand, the government is getting ready to address housing affordability following the Productivity Commission report. The focus will be on development costs and land supply.
The NZ$ opens the week at 82.3 USc and 73.4 in the TWI.
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