Here's my summary of the key news overnight in 90 seconds at 9 am, including news of an enormous American phone deal.
But first, China's economy is strengthening after a two-quarter slowdown, with a manufacturing gauge rising to a 16-month high in August as new orders jumped and overseas demand rebounded.
The official PMI was at 51.0, higher than expected, the National Bureau of Statistics said yesterday in Beijing. HSBC/Markit will today release the final reading of their gauge after a preliminary figure two weeks ago showed the biggest gain in three years.
Japan’s consumer prices increased at the fastest pace since 2008 in July, as energy costs rise and Prime Minister Abe makes progress in pulling the economy out of 15 years of deflation. Most experts didn't think it would be this high. That 'fastest pace' is just a 0.7% rate over the past year, driven by food and fuel. Without those two, there was still deflation, although at its slowest rate in years.
India's economic growth slowed sharply in the second quarter as industrial output stumbled, adding to the country's woes as it struggles with a plunging currency and rising inflation. Going the other way, Brazil's Q2 growth exceeded analysts forecasts. It was agricultural products that drove their growth however, rather than minerals which had been the mainstay.
Over the weekend there has been an enormous US phone deal. Verizon has agreed to pay Vodafone US$130 billion for its 45% share of their cellular joint venture. Vodafone now has a gigantic warchest.
The US is having a long weekend, Labor Day, signaling the end of its summer holiday season, and news will be scarce from its markets till Wednesday.
Equity markets will be pleased to get August behind it as the S&P500 lost more than 4% over the month. But the first week of the new month could be shaky too with decisions on Syria to be made, and an uncertain US jobs report to be released.
In Australia, its the final week of their federal election campaign. There is an RBA rate review tomorrow, but no change is expected given the politicking going on this week.
The NZ dollar starts the month on a 2 month low at 77.2 USc, 86.9 AUc, and the TWI is 73.3.
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3 Comments
Roy Morgan's fortnightly poll has quietly come out again. National on 44% (same as last time) against a Labour party without a leader (who are down slightly to 31.5). While Labour gets it's leader sorted there is a bit more interest in NZ First (up by as much as Labour were down). Greens unchanged on 14%.
In a imaginary reflection reflecting this it would be a Labour/ Greens/ NZ First government (though note Labour has no leader) or a National/ NZ First/ Maori Party/ Act/ United Future/ Conservative (if National throw them an electorate seat) government.
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