Here's my summary of the key issues from overnight that affect New Zealand, with news the US President has won his 'fast-track' trade negotiation authority.
But first, in the US consumer spending recorded its largest increase in nearly six years in May on strong demand for cars and other big-ticket items. This is clear evidence that economic growth has accelerated in the second quarter.
Equally as significant, incomes have continued to grow at a healthy rate. In the five months of 2015, incomes have grown +1.7% while personal consumption expenditure has grown +1.5%. The Fed will have noticed.
They will also have noticed that new jobless claims came in lower again, the 16th straight week they have been below 300,000.
Both branches of Congress have now passed the 'fast track' authority the President needs to negotiate the TPP and a trade deal with the Europeans. The real TPP horse-trading begins now. By the way, the President also won the 'final' challenge to his health care program in the US Supreme Court today. After intense struggles, his core agenda is now embedded, and a rare 'good week' for the President.
In Europe the Greek crisis has deepened. The parties remain in deadlock despite a series of top-level meetings. The next 'key' meeting will be on Sunday, our time. The word is that the Greeks have been handed final take-it-or-leave terms by a united Eurozone ministers group. All looking gloomy there again, and Greek statements are very belligerent.
In China, the central bank's 'newspaper' has signaled that there will be no rate cut there or change to their reserve ratios in the immediate future.
Back in New York, UST 10yr benchmark yields rose and are now at 2.42%.
US oil markets are basically unchanged with the US benchmark price just under US$60/barrel, and Brent crude is now just over US$63/barrel. Strong demand for oil products has helped balance a global overhang of crude for available for immediate delivery.
The gold price is also unchanged at US$1,172/oz.
The Kiwi dollar had a very quiet night as well, and starts today at 69.1 US¢, at 89.2 AU¢, and 61.7 euro cents. The TWI-5 is still at 72.8. This may change mid morning as our May trade balance data is released. A $100 mln deficit is expected, down sharply from May 2014's $260 mln surplus.
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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12 Comments
"The terms of the TPP and the TiSA are so secret that drafts of the negotiations are to remain classified for four years or five years, respectively, after the deals have been passed into law. How can laws be enforced against people and governments who are not allowed to know what was negotiated? Only 8 percent (of Americans) have confidence in Congress... No wonder, given the Congressional credo that we have to pass this bill to find out what's in it.The latest monstrosity that is cloaked in secrecy and mumbo-jumbo is the Trans-Pacific Partnership (TPP) " http://charleshughsmith.blogspot.co.nz/
Oh, if you read that link, you'll also note that re Greece? See how over the last 6 years the Private Debt that say France had has diminished from E55 billion to less than E2 billion. The TPP and the Bailout of the GFC - The ultimate lesson for taxpayers in - Heads , they win; Tails you lose.....
There are reports in the USA that $200 million was paid to congressmen for voting for the fast track for TPPA. (http://www.opednews.com/articles/Almost-200-Million-Donate-by-Paola-Cas…).
How much are Key, Grosser, and the Nats getting?
Labour have been playing the tune for the National party party for three terms now. something is broke in the system there.... Just look at what responses Winston got putting his healthcare for the elderly bill to the floor. Not a serious debate amongst them, some down right abusive. My parents are old, and what some National people said was hateful and rude..and smug. That's the politicians we have now.
I can try and get a link to the video of some of it if you want. but it's on facebook - some foreign folks are aghast at such shoddy and rude behaviour in our "leaders".
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