Here's my summary of the key news overnight in 90 seconds at 9 am, including news of much better factory activity.
American manufacturing rebounded in June as orders picked up, while factory reports from Japan to Spain to Italy to the UK pointed to stabilisation in the global economy. Even Australia's factories reported a much better outlook, and has stopped contracting. However two closely watched surveys of Chinese manufacturing activity released yesterday showed that output continued to slow last month.
New Zealand's PMI for June is not due out until the end of next week.
Factory activity around the world may be up, but hiring is not. In the euro-zone, unemployment has been increasing almost without interruption since early 2008, but many are hopeful that a peak is near.
It now at a record 12.2%, and the number of unemployed is on track to reach 20 million by year's end.
In the Middle East, things are looking decidedly dodgy in Egypt however where the military is threatening a coup if things don't improve soon.
In Australia, who had a coup of their own last week, the RBA has another of its monthly official rate reviews today, and markets aren't expecting any change although it is probably a closer call than some think.
The proximity to the election should help restrain policymakers as will their lower currency.
Gold is making a bit of a recovery, and is now up to US$1,255/oz. Oil is higher, and the Dow is rising too, starting the week almost 1% higher and up over the 15,000 mark although it has fallen away in late trade.
US Treasuries are unchanged.
The NZ dollar starts today at 78.1 USc, 84.6 AUc, and the TWI is at 74.0.
No chart with that title exists.
9 Comments
This from TVNZ; "The Government is pushing for homes under $500,000 to be excluded from tough new Reserve Bank lending restrictions which are expected later in the year."
http://tvnz.co.nz/politics-news/govt-pushes-loan-restriction-exemption-…
Its the main first time buyers market as well. This is the biggee, its where the leverage game starts, take that out and then anything the bank does is meaningless pretty much meaningless.
Interesting really....The Govn successfully spent all its time only looking at short term issues, and avoiding mediuma nd long term issues. Now the medium term issue has crept up to today and they have no room to manoeuvre....when 3 or 4 years ago they did....
regards
Oh No ! Why dont we learn from history , when you give incentives or special preference to something in a free market it ALWAYS has unintended consequences .
This could backfire and increase house prices under $500,000, because it will increase demand up to $500k (everyone with no deposit will be restricted in this price band) .......watch how quickly the market price of average houses reaches this ceiling in Auckland .
And property investors get richer .......
Bang on Boatman ..
Where do they get these bright-ideas people from.
Anyone who was around in the days of Capitalisation of the Child-Benefit scheme will remember it was means tested, the test being your previous years income. So everyone who wanted it but were over the limit, tossed in their job and went and got a lower paid job for a year, or did a deal with their existing employer. It was as easy as that.
Effectively there are special preferences no matter where you turn, some are just obvious.
Even before we do this there has been enough comment/history that the entry level house prices are always set at the maximum the buyers will stand. So, yes I agree, JK wanting to take the first time buyer out effectively a) makes the whole aim of cooling the market by controls moot as the first time buyers are the problem b) wont do a thing to cool that first ime buy and probably make it worse....
The property investors get richer on paper, sure, but its only real wealth when its cashed out and spendable. All else IMHO is an illusion, they just hope there is a bigger mug waiting to buy....if there isnt they are toast.
regards
Any ideas on what this is?
http://www.stuff.co.nz/business/industries/8867168/First-market-manipul…
"unemployment has been increasing almost without interruption since early 2008, but many are hopeful that a peak is near."
Why? comments suggest the EU is in and going deeper into recession....I'd not expect un-employemnt to drop...
BTW, employment (for 25 to 50 year olds) in the US is 76%,
http://krugman.blogs.nytimes.com/2013/07/01/moochers-grifters-and-the-b…
Yet the un-employment rate is only 8~9%, rather a large difference....
regards
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.