Here's my summary of the key news overnight in 90 seconds at 9 am, including news that it is apparently aging Americans that will drive the world economy over the next 10 years.
But first, the World Bank said overnight that it has cut the growth target forecasts for China to 7.4% in 2014, 7.2% in 2015, and 7.1% in 2016. And the bank expects the overall East Asia and Pacific region to grow 6.9% in 2014 and 2015, down from the 7.1% rate it had previously forecast.
The European Union is reported to be preparing to reject France’s 2015 budget, setting up a clash that would be the biggest test yet of powers for Brussels that were designed to prevent a repeat of the eurozone’s sovereign-debt crisis.
And staying in Europe, German factory orders fell in August by their largest amount since the height of the global financial crisis in 2009, according to economy ministry data.
In the US and following the encouraging September jobs report, which showed unemployment dipping below 6% a new official review of future jobs growth is painting an optimistic, but also unsettling picture.
The Review dismissed warnings that stalled incomes, changing demographics and tighter credit could make consumer spending less capable of powering the American economy. By examining the relationship between consumer spending and jobs during the GFC and into the future, the BLS projected that spend-happy Americans would continue to account for more than 70% of that country’s total output and more than 63% of the nation’s jobs in coming years. Their future employment will be driven by the healthcare industry, they say.
In New York, UST 10 yr yields fell slightly overnight to 2.43%.
And the oil price is just on US$90/barrel with the Brent price just above US$92/barrel. Markets are choking on oversupply.
Gold bounced back up today and is now at US$1,207/oz.
We start today with our currency level pegging against nearly every other one we benchmark against. The NZD is at 77.9 USc, is at 89.3 AUc, and the TWI is at 76.2.
If you want to catch up with all the changes on Monday 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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