Here's my summary of the key news overnight in 90 seconds at 9 am, including a noticeable move in exchange rates today.
The US dollar jumped to a 14-month high against the euro as investors bet the US central bank would hike interest rates earlier than expected. This currency move pushed US stocks lower, and saw the price of oil and gold fall.
The US Fed also signaled that it wants the largest US banks to shrink. The pressure is about to be applied by tougher-than-Basel-III rules over capital requirements. The Fed is ready for the fight.
The UST 10yr benchmark bond yield rose noticeably today and is now at 2.49% and that rise may well flow though to New Zealand swap rates today, adding to yesterday's rises. Obviously tomorrow's RBNZ Monetary Policy Statement is keenly awaited too, not because of the prospect of a rate change, but to set the tone for the rest of the year.
The price of oil and gold both fell overnight. The US oil price is unchanged on the day at just over US$92/barrel but the Brent benchmark fell and is at $99/barrel.
Gold also fell sharply, now at US$1,253/oz.
We start today with our currency sharply lower against the US dollar. We are now just on 82.2 USc its lowest in seven months, but up against the Aussie at 89.4 AUc, and the TWI is at 78.7. We also fell sharply against the Chinese yuan.
Locally, the farm-gate prices of some meat products are starting to rise. Beef prices especially are at or near ten year highs, helped by a combination of rising demand from both China and the US. A lower currency will help too.
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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11 Comments
The offensive lolly was a gummy bear, and not a gummy baby, he said.
http://www.odt.co.nz/news/dunedin/315428/birthday-lollies-bit-rude-shock
So: Is this what a gummy bear looks like????
Apple unveils "Apple Pay" - http://fortune.com/2014/09/09/apple-announces-new-mobile-payments-syste…
... much alike National's 2017 tax-cuts , Apple's grand announcements have been a fizzer ...
The company has a current market capitalisation of $US 586 billion .... about as much as the value of all residential housing in New Zealand !
... it's getting mighty hard to accelerate the revenues of this giant company .... the watches are not a new product , others are in that space already ... but Apple-pay may snip a fraction of Ebay's action ... just a snip on the bottom line , not earthshakingly monumental in it's impact ..
Is there a drought coming? Interesting California had no snow last year, this year we get no snow. California is in a nasty drought with no sign of it ending, are we next in line for a decent drought?
http://www.stuff.co.nz/business/farming/10478741/Farmers-uneasy-skifiel…
Aussie is feeling it too.
Here is a good read for Interest.co viewers
but the reality is very different, as I have witnessed in many of my own students and heard from the hundreds of young people whom I have spoken with on campuses or who have written to me over the last few years. Our system of elite education manufactures young people who are smart and talented and driven, yes, but also anxious, timid, and lost, with little intellectual curiosity and a stunted sense of purpose: trapped in a bubble of privilege, heading meekly in the same direction, great at what they’re doing but with no idea why they’re doing it.
http://www.newrepublic.com/article/118747/ivy-league-schools-are-overra…
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