Here's my summary of the key events from overnight, with news the size of Apple's tax avoidance in Ireland has been revealed.
But first in the US, consumer confidence jumped to an 11-month high in August, with households upbeat about their job market. Related indexes measuring the "present situation" and "future expectations" also showed similar healthy gains.
This came as data for house price gains showed continuing rises.
In Shanghai, fear-of-missing-out has driven homebuyers to rush to buy about 5,300 apartments since Friday, after their news media reported that the city's policymakers are mulling housing price curbs.
In Hong Kong, the housing price situation seems to be going the other way. Prices there are expected to fall "another 10%" after having already fallen more than that since March.
In Japan, their jobless rate fell to 3% in July, the lowest for 21 years, despite the country's stagnant economy. Separate data showed household spending fell by less than expected in the month.
In Europe, the EU has decided that Ireland granted undue tax benefits of up to €13 bln to Apple. They say this is illegal under EU state aid rules, because it allowed Apple to pay substantially less tax than other businesses. Ireland is now required to recover the illegal aid. Apple says it will appeal. The Irish Government doesn't seem to want the job of collecting it. The US claims the EU tax system is trying to tax value created in other jurisdictions.
Staying in Europe, their index of economic confidence slipped in August.
In Australia, the pressures to have a Royal Commission into banker behaviour is coming to a head. The Labor opposition plus most 'cross-bench' MPs want one and there are indications some few government back bench MPs might side with them. To avoid that, the Government is planning its own 'crackdown' on the basis that its approach will bring swifter redress and be cheaper to get going. Banks look likely to lose out either way.
In New York, the UST 10yr yield has eased back overnight to 1.57%.
The oil price is down fractionally. The US benchmark price just under US$46.50 a barrel, while the Brent benchmark just under US$48.50 a barrel.
The gold price is also lower, down by US$13 to US$1,310/oz.
The New Zealand dollar is mirroring the softer trend, mainly because the US dollar is strengthening. It’s now at 72.1 US¢, 96.1 AU¢ and 64.7 euro cents. The TWI index is now at 75.7.
If you want to catch up with all the local changes from 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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8 Comments
http://www.radionz.co.nz/national/programmes/ninetonoon/audio/201814133…
McDermott's chat on RNZ, I thimk someone was looking for this yesterday.
Even America, now, has to use Federal funds, to move people due to Climate Change: http://news.sky.com/story/isle-de-jean-charles-louisiana-community-to-be-climate-change-refugees-10556485
The best news however if the multi billion dollar bill all the oil companies face as their infrastructure in the american gulf, currently sitting in water marshes, gets overrun by salt water starts to rust, VERY FAST... Poetic justice.
I wonder about the cost of a life... 35000 dead just in Western Europe in 2003 https://www.newscientist.com/article/dn4259-european-heatwave-caused-35000-deaths/
The Earth Policy Institute (EPI), based in Washington DC, warns that such deaths are likely to increase, as “even more extreme weather events lie ahead”. ... https://en.wikipedia.org/wiki/List_of_heat_waves
In July 2016, Mitribah, Kuwait reached 129.2°F (54°C) and Basra, Iraq reached 129°F (53.9°C). These are the highest temperatures ever recorded in the Eastern Hemisphere and on planet Earth outside of Death Valley. As economists should your clients be worried? Probably too now late anyhow.
I think it somewhat amusing that George W refused to take climate change seriously and now the US is seeing the results through some serious weather related damage. No doubt the insurance companies will be trying to exert their influence to avoid paying out on much of it. What a rip off!
Insurance Companies are writing Climate Change effects out of a lot of policies.
Can you blame them.
Evaporation causing "Rivers" in the sky leading to torrential downpours (sydney had a month of rain in 24 hours only last month).. USA having some wicked floods...
Coastal Properties (and ones in low lying areas - aka most of ChCh) are becoming slowly uninsurable.
Fire cover in bushland...
Need we go on.
It will get worse; a LOT worse.
Am I reading this right? "In Shanghai, fear-of-missing-out has driven homebuyers to rush to buy about 5,300 apartments since Friday, after their news media reported that the city's policymakers are mulling housing price curbs." People rushed to buy apartments BEFORE the brakes were put on prices rises by the regulators? What was that old adage about a fool and their money....?
Makes me wonder what is going on in the minds of the average Chinese buyer. One thing I have noticed in all the conversations about Chinese buyers is that as far as I can tell NZ has no reliable idea of what is going on in their heads. The report a week or so ago about their views on safety in New Zealand provides some insight and the comments a month or so ago by "Adam" provided additional insight - but really we have no idea. One comment was made that Chinese buyers think the Auckland market is "under valued" - I would like to get an idea of their logic on that.
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