Here's my summary of the key news overnight in 90 seconds at 9 am, including some catch-up news after the Waitangi Day break.
The fast shift into smart manufacturing is seeing significant rises in US labour productivity. They climbed at an annual rate of +3.2% in the Q4 2013. Their latest data on initial jobless claims came in significantly below a week ago, and below market expectations.
The US trade balance widened somewhat in January as imports grew but exports fell.
New York equities are up strongly in mid-day trade, benchmark UST 10yr bond yields are up to 2.70%, oil is up marginally and gold is down marginally.
The European Central Bank has held off from cutting rates, keeping its benchmark rate at a record low of 0.25%. It has rejected action on deflation now although it signaled that it may respond as early as next month.
The Bank of England, in a similar monetary policy review, also sat on its hands, keeping all its settings unchanged.
World food prices fell in January according to the UN's FAO, the first decline in three months as lower prices for grains, sugar, and meat outweighed stronger prices for dairy products. Demand for all dairy products remains firm, especially from China, North Africa, the Middle East and the Russian Federation where there is big demand for butter. Interestingly, world food prices at the end of 2013 were at their lowest year end since 2009.
In China, it is coming to the end of their Spring Festival holiday, but snow storms are nearly locking down travel. The cold snap that is affecting the US is also occurring in China causing return-home plans to be delayed.
The Aussie trade balance has moved into a surplus on the back of strong grain exports. And Australian retail sales over the Christmas season were stronger than predicted.
In fact, Aussie business confidence is rising and is at its best levels in 2½ years, according the the NAB quarterly survey out yesterday. Australian businesses were anticipating a marked pick-up in activity and investment in coming months.
John Key is in Australia today and apparently tackling the Aussies over Woolworth's 'Buy Australian' campaign, claiming it contravene's the CER deal. Woolworth's owns the Countdown chain in New Zealand, a major outlet for bulk Australian products especially their home brand products. Woolworths is trying to cast the policy as a 'buy local' fresh produce campaign, ignoring the wider aspects.
The NZ dollar starts today up nearly 1 USc from this time on Wednesday at 82.7 USc, up to against the Aussie 92.2 AUc and the TWI is now at 77.9.
If you want to catch up with all the changes yesterday, we have an update here.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »
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