90 seconds at 9 am: Factory output expanding everywhere; equities higher; fewer banks fail; EU plan 'too complicated' for Draghi; NZ$1 = US$0.826 TWI = 77.8

Here's my summary of the key news overnight in 90 seconds at 9 am, including news that factory activity worldwide is expanding.

International factory data released overnight has the China data at a 3 month low, but still growing. The Eurozone data was much better, at a two and a half year high, and mainly on the back of German strength. The data for the US was basically unchanged from November, holding at a 20 month high.

This factory data, plus a late expectation there will in fact be no taper by the Fed tomorrow - despite earlier predictions - has seen New York equity markets rise strongly. The main indexes are up almost 1% in mid-day trade.

The oil price is up, but neither the gold price nor yields on UST benchmark 10 yr bonds are going anywhere today.

Staying in the US, it looks like 2013 will end with the lowest number of bank failures since 2007 - about 25. And that is out of about 7,200 institutions that are Federally insured. (Americans get deposit insurance on the first US$250,000 at each institution. But the cost is high - TD rates there are less than 1%.)

In Europe, ECB boss Draghi has expressed frustration with EU lawmakers over their complicated plan to rescue failing banks. That plan involves intricate layers of 'consultation' before any action is taken and Draghi fears it just won't work. He told parliamentarians directly of his concerns.

Locally, data from dominant electronic transaction processor Paymark shows that Kiwis are getting stuck in to their Christmas shopping, with spending up 7.7% over the first two weeks of December.

That is up from the 5.5% pace we have had during most of 2013. Holiday season spending is running at $160 million a day, $2.2 billion over the first two weeks of December.

The NZ dollar starts today at 82.6 USc, 92.2 AUc, and the TWI is at 77.8. From the beginning of the year, the kiwi dollar is virtually unchanged against the US dollar, the Chinese yuan, the euro and the British pound. But we have appreciated 17% against the Aussie dollar and a remarkable 21% against the Japanese yen. It is these last two shifts that have lifted our TWI by 6%.

The easiest place to stay up with today's event risk is by following our Economic Calendar here »