Here's my summary of the key news overnight in 90 seconds at 9 am, including a string of worrying data releases.
US producer prices dropped in April and manufacturing activity in New York state contracted according to a survey out overnight, a sign that slowing global demand is weighing on the American economy.
HSBC said overnight it will cut another 14,000 jobs across its global empire in an effort to improve profits and adapt to a tougher regulatory and economic landscape. It's all part of a new US$3 bln savings plan for the global bank.
Data released yesterday showed that the German economy was still growing - but only just- but its fortunes continue to diverge from those of the rest of the EU. The EU remains deep in recession, now in its sixth consecutive quarter of decline.
The Bank of England has raised its growth forecast for the UK, Europe’s third-biggest economy. At the same time, it was announced that British unemployment rose in the first quarter of 2013.
China is also worried about growing unemployment at a time when they appear to have neither the resources or the will to engage in a massive new stimulus program.
Despite all this concerning economic news, gold fell below US$1,400/oz and the Dow touched 15,299 briefly in early trade. It has fallen back by mid-day in New York but it is holding on to its big May gains.
The latest Fonterra auction has brought mixed results, even though the amount of product offered is rising. In US dollars, prices were down 2.1%, but in NZ dollars, they were actually up 1.2%.
Today is Budget day in New Zealand and Bernard Hickey will be reporting from Wellington. Eyes will be on the expected 'return to surplus', and on how the Government will address house prices and affordability for first home buyers.
The NZ dollar starts today slightly higher at 82.2 USc after some IMF comments giving NZ's economic management a big tick, 83.2 AUc, and our TWI now stands at 77.3.
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2 Comments
"US producer prices dropped in April and manufacturing activity in New York state contracted according to a survey out overnight, a sign that slowing global demand is weighing on the American economy."
No way....the DOW is north of 15,000.....party on......
And gold is dead.
Cheers
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