Here's my summary of the key news overnight in 90 seconds at 9 am, including key news from China.
China will revive mortgage-backed debt sales this week after a six-year hiatus, as the government there extends help to homebuyers in a flagging property market.
An SOE is selling residential mortgage-backed securities as a way to free up balance sheet capacity to grow its mortgage lending. It's not the fact of RMBS sales that is the issue here, it is the reason for them - using them to help the real estate industry when it is in some strife.
Staying in China, another food scare has erupted there over suppliers to KFC and McDonalds. Local TV reports show the local supplier in a very bad light and the two big brands have dumped the supplier. But the reputation problem remains and the incident shows how difficult it is to maintain brand reputation in the 'wild west' of China's food processing industries.
Overnight, it was confirmed that British prosecutors are involved in the London currency rigging enquiry as we reviewed yesterday.
In New York, yields on benchmark UST 10 yr bonds are lower in late trade today at 2.46%. Stocks are weaker in late trade, although yesterday in Australia the equity markets hit a six year high.
The US oil prices rose overnight but the US-Brent premium narrowed further and has now dipped below US$3. Parity is close. Apparently markets are reassured that Iraqi oil will keep flowing normally and that ISIL is unable to disrupt most of it. Gold lost another US$3/oz and is now at US$1,313/oz.
And we start today with the NZ dollar basically unchanged. We are now just over 86.9 USc, at 92.7 AUc. The TWI is at 80.9.
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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4 Comments
China also sides with Russia on mH17 and Ukraine.
So while the West courts China economically, China holds a world view in opposition to our values.
russia & China combined is a formidable military force. Watch Israel & the Middle East in this space as well.
"how difficult it is to maintain brand reputation in the 'wild west' of China's food processing industries."
Indeed, buying any food/ingredient from china is a lottery on the cheap stuff. My wife ahs lived there long enough to know how dodgy the place can be, we wont buy any food item knowingly from there. Of course the latest "scam" is to not say where its from. "Packaged on behalf of (a NZ supermarket chain) in Australia from overseas ingredients".
Yeah right, no I wont be buying.
regards
with the amount of rubbish brands coming from China (those Goirilla ladders a few years ago perfect example, or the clothing which is all poor quality polyester blends) I surprised anyone tries to push the Brand wagon in the Empire of Chin
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