Here's my summary of the key news over the weekend with news Americans seem to be opening their wallets again, a core requirement for international economic growth.
Most US retailers reported strong sales in October, a sign American consumers were spending with more gusto and could help keep the economy growing at a brisk pace.
A closely watched consumer sentiment survey reached its highest level in over seven years. Cheaper oil and a strong dollar made it less expensive for Americans to buy imported goods.
In China, police have raided more than 10 underground banks that were together involved in almost NZ$30 bln of transactions as authorities tighten their controls on money laundering over China’s borders.
A NZ-Korea tariff reduction deal has been negotiated that will remove about half of the tariffs for our products into South Korea over a fifteen year period. The deal is similar to ones Korea has negotiated with other countries although we get some sweeteners especially around limited duty-free access for milk powders.
Australia's FTA deal with China is about to be officially revealed later today. Australian service companies are reported to have won unprecedented access to Chinese markets under the agreement which will eliminate more than 90% of Australian exports from tariffs over the next four years. Under the deal, financial services providers will have access to China second only to that of providers in Hong Kong and Macau.
These two deals were announced at the G-20 in Brisbane but they were both years in the making. Little else seems to have been achieved at the G-20.
In New York, UST 10yr bond yields fell back on Friday and are now at 2.32%.
The oil price is holding its lower levels and is now below US$76/barrel with the Brent price just under US$80/barrel.
The gold price however jumped late on Friday in New York and after the London market had closed and is now at US$1,187/oz. The reason for the sharp rise is unclear but it appears to be largely technical
The NZ dollar will start this week at its highest level in a month at just over 79 USc, at 90.5 AUc, and the TWI at 78.3. Bill English said in Brisbane over the weekend that a NZD:USD exchange rate in the "mid to upper 70's" is sustainable for our economy.
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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