Here's my summary of the key overnight news in 90 seconds at 9 am, including news of progress being made in recovering our reputation in China's dairy market.
But first, Americans unexpectedly filed fewer claims for unemployment benefits last week. However, contracts to buy previously owned homes fell in August for the third straight month.
Conficting signal on the health of the American economy are leaving markets drifting. The Dow, gold, oil and yields on US Treasuries are all pretty much unchanged overnight.
Yesterday, we reported that JPMorgan is in talks to settle all its legal woes and suggested a US$3 - $7 bln settlement was on the cards. Well, overnight the talk is more of a possible US$11 bln settlement and now includes some restitution. At that level it will hit shareholders hard and Jamie Dimon's hold on power at the bank may be weak, you would think. But, as one analyst said, no-one seems to care.
It's the same with the budget battles in the US Congress. Markets are still shrugging off the US debt limit impasse.
In China, there is a public holiday all of next week, and their central bank is pumping liquidity into the market to avoid a quarter-end cash crunch like the one that rocked financial markets in late June.
New Zealand's 40% share of China's imported milk products is being shored up with the signing of a deal with the China Certification and Inspection Group to protect our country of origin label and ensure formula quality. Our dairy industry may be gaining an advantage out of adversity.
Overnight, the latest indications of our dairy prices showed prices holding in US$, but a 1.5% fall from two weeks ago in NZ$ on a higher currency. Year-on-year, prices are up by more than 30% in either currency.
The NZ dollar starts Friday at 82.7 USc, 88.5 AUc, and the TWI is at 77.2.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »
No chart with that title exists.
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.