Here's my summary of the key news overnight in 90 seconds at 9 am, including news dairy commodity prices fell 5.3% overnight.
This decline in the Fonterra auction in US dollars was the third straight since the middle of April and is a fall of 14% since then. In NZ dollars however the drop is not so much but it is still almost a 9% retreat.
The falling NZ dollar is mitigating some of the pricing shift. It is worth noting that a similar fall happened last year at a similar time.
The OECD's latest report on New Zealand is broadly positive confirming our economy is gaining momentum. But they do make a number of structural recommenations and Bernard Hickey has the details here »
In Australia, even though it held its fire yesterday and opted for caution, the RBA said it still has room to cut its benchmark interest rate from its record-low level and it noted the Aussie exchange rate remains too high high, despiter its biggest monthly drop since 2011.
The US trade deficit widened in April from a more than three year low, reflecting a rebound in imports of consumer goods and business equipment and that helped ease concerns about the degree of slowing in American economic growth.
Gold has fallen back below US$1,400/oz and oil has settled lower as well. Equities are down more than half a percent in mid-day trade.
The NZ dollar starts today at 79.9 USc, 83.0 AUc, and our TWI is down to 75.0.
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1 Comments
Can't recall if someone else posted this link but as I try to get my head around the mechanations of the shadow banking system, and how it creates money, this article draws a comparison with cheque kiting. (Heck does someone under 25 know what a cheque is?)
I guess the lesson is that once you have paper circulating as money then the addition of additional forms of paper (mortgages?Houses?) to act as money is not a large step.
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