Here's my summary of the key events over the weekend that affect New Zealand, with news Fisher&Paykel Finance is about to be sold to Australia's FlexiGroup.
But first, the American economy expanded more than previously estimated in the second quarter at an impressive +3.9% pa rate on stronger consumer spending and construction. This bolsters the case for an interest rate rise before the end of the year. But all eyes will be on the September non-farm payrolls report which will be out this coming Saturday. The market is picking another strong +200,000 jobs gain.
And before that we get the Fed's favoured inflation measure, 'personal consumption expenditure' (PCE) which is due out early tomorrow morning. A core rate of +1.2% is expected.
On Friday, Norway’s central bank cut its policy rate by -0.25% to 0.75%. This is the second reduction in four months and came as oil and gas companies had been canceling investments and laying off workers because of lower crude prices.
Taiwan's central bank also announced a cut, this one of -0.125% to 1.75%. That was their first cut in more than six years and observers expect more to follow. Like the rest of Asia, Taiwan is going through a period of weaker exports and lower economic growth as China slows and transitions.
Overnight it has been reported that Fisher&Paykel Finance is likely to be sold to Australia's FlexiGroup. The price is expected to be about $300 mln. In New Zealand, FlexiGroup earlier bought Telecom Rentals from Spark. FlexiGroup itself however is in the middle of serious boardroom turmoil.
Singapore, Indonesia and Malaysia are currently suffering from thick haze and very poor air quality as Sumatran peat fires blaze out of control. Some fires are started by lightning, others by farmers who clear their holdings of the prior year's growth. The effect is the same; choking, thick and unhealthy haze for millions.
In New York, the UST 10yr yield benchmark fell marginally of Friday to 2.17%.
The US benchmark oil price starts the week a little higher at US$45/barrel, Brent is at US$48/barrel.
The gold price starts lower at US$1,148/oz.
However, the New Zealand dollar starts the week higher significantly higher. International investors seemed to be reacting to the combination of the better Fonterra forecast of last week and the signals coming from the dairy futures markets indicating more strong results from the dairy auction next week. The NZD is now at 63.8 US¢, at 90.9 AU¢, and 57 euro cents. The TWI-5 is at 68.7. This is the highest level in almost a month.
If you want to catch up with all the local changes on Friday, we have an update here.
The easiest place to stay up with event risk today is by following our Economic Calendar here »