Here's my summary of the key news overnight in 90 seconds at 9 am, including news of strong American retail figures.
But first we start today in Europe where the European Central Bank kept its benchmark interest rate at 0.25%. However, bank chief Mario Draghi hinted it may act soon to counter low inflation in the eurozone. There may be the start of an ECB stimulus program as early as next month.
The Bank of England kept rates on hold but is continuing with its massive £375 billion stimulus program.
In Britain, international bank Barclays confirmed overnight that it will cut 19,000 jobs by the end of 2016, including 7,000 from its troubled investment bank. 9,000 of the total are in London. It's a white flag for their Wall Street ambitions. Currently 65,000 people work at that bank - soon it will be 46,000.
In the US retailers there posted a 6% comparable-stores sales gain in April, the biggest increase since September 2011, as better weather and the late Easter as well as aggressive promotions attracted shoppers.
The number of Americans filing new claims for unemployment benefits fell more than expected last week, indicating their labor market was strengthening despite a run-up in applications in prior weeks.
In China, their latest trade data shows a return to growth, just. The April figures beat market forecasts and offer some positive signals for the world’s second-largest economy after a weak start to 2014.
In late trade, the equity markets are mixed in New York but heading lower. However, that is after the Dow got near to a new all-time record. The gold price is unchanged today and the price of oil lost some of yesterday's gains. The UST 10yr bond benchmark is down again to 2.59%.
On the exchange rate, we start today with the NZ dollar pretty much unchanged at 86.5 USc, down slightly against the Aussie at 92.2 AUc and the TWI is just a fraction under 80.1.
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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1 Comments
"Draghi: Yes. On the first question, the too prolonged period of low inflation, you have a period like that when you see that the risks of de-anchoring medium-term inflation expectations are increasing. That is a definition that takes into account the two elements of this concept. One is the level of inflation, and that is to say low inflation, and the other one is the length of time while one has low inflation. I think I've said several times that the longer is the period, the bigger are the risks for a de-anchoring of inflation expectations. So that's the answer to the first question."
So 6 years......
Meanwhile in NZ........we have to raise, we just have to....we are gonna get inflation....OK not for 6 months (rinse and repeat for 6 YEARS), but 2 years out, just watch it! so we have to do it now!!!! we just have to raise I tell you!!!!
Actually that is a really good piece, read all of it.
http://www.ecb.europa.eu/press/pressconf/2014/html/is140508.en.html
regards
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