Here's my summary of the key news overnight to keep you up-to-date over these holidays.
The Chinese are coming. China's investments overseas are about to take-off, according to officials. In 2013 they invested US$80 bln overseas while foreigners invested US$105 bln in China. But the growth paths of these flows show that it won't be long before their outbound investment is exceeding foreign direct investment in China.
French President Francois Hollande received approval from the country’s constitutional court to proceed with his plan to tax salaries above €1 million at 75% for this year and next.
American domestic crude oil rose above US$100 a barrel for the first time in two months after a government report showed US supplies fell to the lowest level since September. Brent crude prices are unchanged at US$110/bbl.
Japan seems closer to escaping deflation. Japanese consumer prices rose at the fastest pace in five years, showing government policies to end its deflation problem may be having an effect. Prices were up 1.2% in November (excluding food) and that was above what markets were expecting.
Gold is up, now at US$1,212/oz, and benchmark UST 10 yr bonds are now yielding 3.0% and that's the highest its been in two plus years. That means bond investors are taking a loss, and if rates keep rising, many fixed income securities are in for a hard time. It is fueling a rush into equities.
The NZ dollar starts today at 81.4 USc, 91.8 AUc, and the TWI is at 77.1.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »
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