Here's my summary of the key issues from overnight that affect New Zealand, with news from across the ditch.
Rating agencies have welcomed the latest Australian government's budget, saying it recommitted them to cutting their debt and deficit without being too austere.
But it does seem to be a can-kicking affair. It relies on economic growth and bracket creep to meet its targets, but those growth assumptions turn out to be quite different - and more rosy - than the ones the RBA is using. There is little 'medicine' in this plan.
In the US, small business owners reported rising confidence in April and they were surprisingly bullish about capital expenditure plans, further supporting views that economic growth was improving after a dismal first quarter.
And Americans are becoming more apt to quit their jobs, an official report showed overnight, a sign that their stronger labour market and falling unemployment rate could result in healthier wage growth and inflation.
In Washington, the ability of the US to complete the Trans Pacific Partnership Agreement is about to be decided. The President's own party is threatening to block giving him the authority to sign, fearing he will give away too much of what local special interest groups and companies want to protect. Populist opposition to free trade plays as well in the US as anywhere.
In Europe, it turns out Athens had to borrow from the IMF to make that repayment to the IMF yesterday. Creditors weren't impressed. Nor were local Greek mayors who are being pressured into stumping up with the funds for these repayments. They have so far paid over less than a quarter of the €2.5 bln in local funds targeted by Athens to meet the country's cash crunch. But hundreds of mayors across the country are holding out against the order, fearing the money will never come back, and echoing mistrust among euro zone partners.
In China, it seems that foreign direct investment is back in favour there, with a sharp +11% increase in overseas firms investing in the country in the March quarter, and at a rate far higher than the growth in 2014.
Back in New York, in documents filed overnight, Goldman Sachs has been ordered to pay US$80 mln, plus interest of US$60 mln, to BNZ's parent, the National Australia Bank, for breaches associated with the sale of US mortgage-linked securities in 2006.
Back in Australia, they have declared we are in an El Niño weather pattern again, for the first time since 2010 and they say it will probably be “substantial.” Japan also said El Niño has emerged. The implications for New Zealand are not very significant, but they are for other countries, which is why we will hear a lot about it.
In New York, the UST 10yr benchmark yield resumed its climb in today's trading and is now at 2.26%.
The US oil price also rose today and is now at US$61/barrel, while Brent crude at US$67/barrel.
The gold price is $12 higher too, now at US$1,195/oz.
The New Zealand dollar starts today unchanged from where it was at this time yesterday at 73.7 US¢, but lower against the Aussie at 92.3 AU¢, and at 65.7 euro cents. The TWI-5 is at 76.8.
If you want to catch up with all the local changes yesterday, we have an update here.
The easiest place to stay up with event risk today is by following our Economic Calendar here »
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