Here's my summary of the key news over the weekend in 90 seconds at 9 am, including news the IMF leadership is looking at the world through French eyes.
But first, markets were quiet over the weekend with the Americans on their July 4 holiday. They will be feeling pretty good, given the strong rebound their economy seems to be getting.
In fact, the Non-farm Payrolls report out at the end of last week showed their economy had added 2.263 million jobs in the past year (non seasonally adjusted), more than half of them at higher than the average wage. Their unemployment rate fell from 7.8% to 6.3% over the same period. By any measure, that is progress and quite a bit more progress than is occurring in other large economies.
(In fact, just the twelve month growth in the ranks of the American 'employed' is almost the same as the entire New Zealand employed workforce.)
But that progress is still not enough for the IMF to raise its forecasts for global growth and they are hinting at another cut in their estimates.
And Europe is settling in for a very long slog of very low interest rates, as the ECB frets that governments there seem unable to lift their game without piling on more debt. France especially seems intent at blaming others.
And China is doing something only China can do - using its monetary policy authorities to action some fiscal stimulus.
It also loosened its exchange rate controls over the weekend in retail markets. Banks can now set their own exchange rates for the yuan against the dollar in over-the-counter transactions - another step toward freeing the exchange rate from government control. Previously banks had to offer rates within 3% of the official peg. The interbank market did not get the same freedom however.
The Dow Jones Industrial Average - the US stock index made up of 30 of the biggest global firms - closed above 17,000 for the first time on Friday, and the much broader S&P500 index also closed at a record high and less than 15 points from the 2,000 level. US markets seem to be riding an earnings wave, but it is doubtful the exuberance can last.
However, interest rates continue to rise in the US with the benchmark UST 10 yr bond yield ending last week at 2.64%. Gold and oil moved very little over the weekend, although the oil price did slip below US$104/barrel.
We start the week with the NZ dollar at 87.3 USc, and 93.4 AUc. The TWI is now at 81.4.
If you want to catch up with all the changes on Friday 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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