Here's my summary of the key news overnight in 90 seconds at 9 am, including news there could be a bit of event risk today.
Banks face being hit with a new set of international capital rules aimed at forcing bondholders rather than taxpayers to bail out failing institutions. The FT is reporting that global regulators are seeking support from G20 world leaders on proposals to force banks to hold a minimum amount of debt that can be "bailed in" if a bank collapses.
Construction spending in the US increased in July to the highest level in four years, propelled by gains in residential real estate. That residential sector grew by a remarkable +16.8%; however the private sector growth was higher again. In fact, construction on multi-family units were up almost 40% year-on-year.
The American ISM factory survey came in better than expected too, with new orders and pricing components impressing observers.
Australia’s central bank left its benchmark interest rate unchanged and omitted a reference to scope for more easing; that sent the Aussie dollar higher.
We get the Q2 data today for Australian GDP, and no-one is sure what that will show. Markets suggest they expect a level-pegging outcome. We'll see at 1:30pm today.
Overnight, the latest Fonterra auction saw 53,000 tonnes of product sold for 1.1% less than two weeks ago. But in NZ dollars there was a 1.3% gain as our currency has weakened over that time.
A few days ago, the NZ Government put up 8,000 km2 for exploration for gold in the BOP and Waikato. This is hard on the heals of its huge 190,000 km2 tender to explore for oil and gas in the Southern Ocean. There has been surprisingly good interest in these bids which must be lodged by September 26. A big gas field off Canterbury is the most likely prospect.
Syria tensions are rising. New strikes have been called in South African gold mines. Oil and gold prices are up strongly, and the Dow is down from it's opening after the long US holiday weekend, although higher than its close last week.
The NZ dollar starts today at 77.9 USc, down half a cent against the Aussie at 86.1 AUc, and the TWI is 73.9.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »
No chart with that title exists.
6 Comments
Aussie $ has wings, a mate in the UK told me last night .93 a breather and then on to .97. to the US.
http://finviz.com/futures.ashx
Denninger,
If you look at this chart with a discerning eye you will discover that every major market blowup has come from a cyclical counter-trend higher in rates. 1987, the mid-1990s recession, 2000 and 2008 -- all came from those cyclical counter-moves.
Now that trend has reversed. It hasn't reversed because people want it to reverse, it has reversed because it cannot be otherwise.
the war you dont see
Knew it was the case but still shocking to see. The footage from the Apache in Iraq was new to me - very, very, very hard to watch - makes me extremely ashamed about being an American. One of my nephews fought there - misses being in the forces but was sickened beyond being able to stay enlisted .. says very little about it .. but the psychological scars are deep. Unlikely he will ever recover to lead a normal, happy, settled life.
To come to the realisation that everything we were fed about America being the defender of freedom and upholder of democratic principals, was a lie - is very personally distressing. Very much the reason I would never move back home - too many Americans are too blindly patriotic and support these invasions and economic sanctions. When your own loved ones have been scarred, maimed or lost as a result of "buying into" this - I think a defence is to become even more patriotic, more legitimising of your media and your leaders. And they also become more absorbed in Hollywood - almost as if from their perch as just one of the masses in "hometown USA" they have some sort of direct connection/familiarity, as if they are "part" of that whole non-ordinary glamour and hype.
Wish I could say we were more enlightened. That Video is a must watch.
Foreign Affairs Minister Murray McCully has slammed the UN Security Council's refusal to address the crisis in Syria, saying there is a growing lack of confidence in the council and it is failing in front of the world.
The council has failed to formally debate a military response or reach a consensus for further action after a chemical weapons attack in Syria last month
McCully, who spoke with US Secretary of State John Kerry at the weekend, said their priority was to get that process going and over the past week he had been "heavily engaged ... in trying to see where progress can be made there."
Kerry had asked about New Zealand's position in the event that action might be taken outside the UN Security Council mandate.
"I had made it clear that our strong preference was to try and get that UN machinery to work.
"We remain committed to the UN process even though it is clear that there is a growing loss of confidence in the UN.
"We will tune our minds to our position on action outside the UN process only when it's clear that we have to."
http://www.stuff.co.nz/national/politics/9121017/McCully-UN-Security-Council-failing-on-Syria
http://www.truth-out.org/news/item/18559-how-intelligence-was-twisted-to-support-an-attack-on-syria
http://www.golemxiv.co.uk/2013/09/syria-cui-bono/#comment-139082
Lybia is so much better off than before
BakerYoung Stock Brokers ( Australia ) have rated Z Energy a " reduce " ...
... they believe the company to be overvalued , and place a fair value of just $NZ 3 on the stock ..
" Z Energy is overvalued at the current share price ( $NZ 3.70 ) reflective of parochial support for the only home-grown Kiwi refined fuel retailer " ....
... parochial , huh .... well at least we got the Bledisloe Cup for another year , or 10 , cobber !!!
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