Here's my summary of the key events overnight that affect New Zealand, with news we are being eyed up as part of a shift of rich Chinese.
But first, in the US, consumer spending rose more than expected in September as households boosted purchases of motor vehicles and inflation increased steadily to +1.7%. The Fed takes notice of these PCE measures and as they are about to start their next FOMC review, this data could be quite influential.
The return of inflation may come from changes to central bank monetary policies. But it may also come from China's manufacturing base. They seem to have reached the end of their tolerance for deflation.
In China, authorities there are getting concerned about the rise and rise in the price of coal. They issued a veiled warning about "market irrationality" today with the standard threats against 'hoarders'. On the same day, there was a major fatal mine accident in China that has killed at least 15 people and left 18 others missing, local authorities said.
And speaking of mature industries struggling with the pace of change, South Korea said overnight it plans to subsidise more than NZ$13 bln on ships from local yards to stave off the collapse of its shipbuilding industry as global trade moves away from containerisation. They have seen one of their largest shipping lines go bust, and another state-owned cargo line is only afloat because of its ownership. In Japan, they are dealing with the pressures by downsizing.
Back in China, a new report of the investment intentions of their very wealthy shows there are more than 800,000 of them with wealth over NZ$20 mln. They are worried and restless. Most are worried about the relentless devaluation of the Chinese currency, and most want to emigrate. More than half are targeting the US, with the next most popular destinations being Britain, Canada, Australia, and Singapore. New Zealand is actually the eighth most popular escape target, equal with Sydney on 3.8%. When you do the numbers, that suggests about 30,000 high net worth Chinese are actively looking to move to New Zealand.
In New York, the UST 10yr yield is down -1 bp today at 1.84%.
The US benchmark oil price is sharply lower today and now under US$47 a barrel, while the Brent benchmark is at US$48 a barrel.
The gold price is lower too at US$1,273/oz.
The New Zealand dollar is pretty much unchanged this morning, now still at 71.5 US¢. On the cross rates it is at 94 AU¢, and against the euro at 65.2 euro cents. The NZ TWI-5 index is at 75.7.
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 ».
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