Here's my summary of the key news from over the long weekend in 90 seconds at 9 am, including news that the economic news out of the US is weak.
American manufacturing output barely rose in September and contracts to buy previously owned homes recorded their largest drop in nearly 3½ years, the latest signs the US's economic momentum ebbed as the third quarter ended.
Markets are up, however, on expectations Thursday's Federal Reserve decisions will delay the tapering of their stimulus programs because of all this economic weakness. Gold, oil and equities are all up today, as is the US dollar - an unusual alignment.
Without fiscal certainty, and growing uncertainty in the wider US economy, we may be facing QE for much longer - QEternity.
In China, a senior Politburo member said the Communist Party would consider "unprecedented" economic reforms next month, as one of their top research think-tanks proposed changes to rural land ownership rules and social security.
China is moving ahead with plans to price carbon, in contrast to Australia who are abandoning the effort - and it looks the Australian Labor Party will support the backdown.
Australia’s new government, which took power just seven weeks ago, says its budget position has worsened since its election victory, with the economy struggling for momentum in non-mining sectors. Access Economics is even saying there is an 'investment strike' going on in Australia.
The RBA reviews its interest rate today week, and almost everyone thinks it will remain unchanged. Given their economy's weakness however, the risks are for the next move being a cut, observers say. In contrast, the RBNZ will review our rates on Thursday just after the Fed results are known. Market observers think the chances of rate hikes in 2014 being signaled are quite high.
The NZ dollar starts today at 82.9 USc, 86.7 AUc, and the TWI is at 76.2.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »
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5 Comments
I think you are dreaming GBH. The trend has been against National for 2 years...and the lying buggers are coming apart somewhat, as we watch over the sell off. Enough, it looks like and thats all that matters.
http://tvnz.co.nz/politics-news/left-strong-but-labour-flat-in-latest-p…
3 makes a trend....
regards
Meanwhile , at the NZX race-track , we're awaiting the starter's gun for the SOE Energy Handicap ... any moment now ...
.... and they're off ... Meridian is up and racing , and she's showing good early form , quickly leading $ 1 by a nose ... 6 and a half cents to the good .... Wheeeeeeeeeeeeeeee ! .. This is exciting ... 280 trades in the first few minutes ...
What possesses sum Gumbies to buy them , and then immediately flog 'em off !
I dont agree, in a way. I mean yes its the day that counts. However to start with I always look at the trend, and the trend is significantly against National since the start of this term. So even if its been say 3% to the right the trend cant be hidden and thats tot he left. Much of that was the last two leaders but Cunliffe seems to have improved that and we are not yet in gear IMHO.
Further if you look at how the Greens have done they have gained at the expense of Labour, I cant see how that left swing is biased to the right myself.
regards
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