Here's my summary of the key news overnight in 90 seconds at 9 am, including news inflation is tepid worldwide.
But first, dairy prices on the Fonterra auction platform are up 4.9% from the previous auction two weeks ago. This is the strongest gain since early April. In NZ$ however, the rise was 3.0%, a decline from the previous auction.
Yesterday's inflation reading in New Zealand was pretty tame - held down by the tradeables sector. Our annual inflation rate in the June quarter was 0.7%, its lowest level since 1999.
But inflation reports from some big economies came out overnight and they were very much higher.
In the US, they reported a 1.8% annual rate, up from 1.4% the previous month and its highest rate since February. The US doesn't have the deflation problem some were concerned about earlier in the year.
In the UK, they reported a 2.9% annual rate, up from 2.7% in May. But that was still less than the 3% markets were expecting.
Eurozone inflation was reported at 1.6%, as expected.
Other data out overnight shows mixed fortunes. German sentiment and factory orders were weak. However, US capacity utilisation, housing, and industrial production data all came in above expectations.
Unbelievably good US bank profit results continue to be reported, the latest being from Goldman Sachs who doubled their Q2 result from a year ago.
It has been revealed that while most investors were selling US Treasuries in May trying to avoid losses as yields rose, the Chinese actually increased their holdings - by US$25 billion to US$1.3 trillion. That now represents 11% of the US$11.9 trillion on issue to the public, which itself is a bit more than 79% of US GDP.
And finally, the Aussie election campaign has thrown a spanner in the works of the car and related manufacturing industries with Labor signaling new major fringe benefit taxes. This is an industry that many Kiwi manufacturers have as important customers.
The NZ dollar starts today sharply higher against the US dollar at 78.9 USc, 85.3 AUc, and the TWI is at 74.6.
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