Here's my summary of the key news overnight in 90 seconds at 9 am, including news of Fonterra damage control.
Fonterra's whey concentrate scare rolls on, fed by headlines and rivals.
As intense as the reputation problem is, there is yet to be any documented case of actual contamination and that is looking increasingly unlikely any will be found. What is likely to be the lasting result is unchanged exports at a lower exchange rate - and that may mean higher NZ$ returns.
In the US, their service sector expanded in July at the fastest pace in five months as new orders surged, complementing a rebound at the nation’s factories and showing the economy is gaining traction. The UK reported similar results for its service sector.
Things are not quite so good in Australia; retail spending there has fallen to its slowest growth rate since July 2000, new car sales for July were lower than the automotive industry expected, and activity in the services sector reached its lowest level since the global financial crisis.
As the Aussie election gets underway, it looks like no matter what the outcome, their car manufacturing industry is toast.
Ford has already signalled a pullout, now Holden is threatening the same, saying the subsidies on offer from both main parties are nowhere near enough. Toyota wouldn't survive as the only local manufacturer.
Later today, the RBA will likely announce a rate cut, bringing the cash rate down from 2.75% to 2.50% and matching the New Zealand OCR.
Their retail banks are expected to pass on the full cut almost immediately.
The NZ dollar opens today 1c higher that at this time yesterday at 78.0 USc, the Aussie dollar is at 87.5 AUc, and the TWI is at 74.0.
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