Here's my summary of the key events overnight that affect New Zealand, with news of record high stocks of food grains.
But first, Wall Street is closed today for the American Thanksgiving holiday. Friday and the weekend is traditionally the start of the retail season leading up to the end of year holidays and in the past Thursday was also a big retail day. But a move this year by many stores to close on Thursday will make the weekend sales results more tricky to gauge.
Replacement trade deals now that a Trump US won't participate are moving quickly with negotiations to start on a China-led RCEP and FTAAP to get underway in earnest in Indonesia next week.
The world is awash in food and especially grains. Analysts are forecasting low prices for some time and the International Grains Council says stocks are at their highest level ever, over 500 mln tonnes will be carried over from the previous growing season.
Speaking of food, New Zealand and China have signed a mutual recognition agreement for organic food and ingredients. Trade between us is tiny - our exports are just $27 mln annually - but is expected to grow, including much more organic food and ingredients from China.
There are reports of impending cutback by a big Aussie miner in iron ore production. And another analyst is suggesting that the Australian economy may in fact be shrinking. That is not a consensus idea, but it is one by investment bank Morgan Stanley.
And the OECD has today released its latest review of inequality, based on GINI coefficient scores. They say inequality is not improving, but for New Zealand we are somewhat unique with our scores unchanged in 2014 from what they were in 2007. And the same data shows our poverty rate declining.
In New York, the UST 10yr yield is unchanged today, at 2.36%.
The US benchmark oil price is marginally lower and now just under US$48 a barrel, while the Brent benchmark is now just under US$49 a barrel.
The gold price is down sharply however, now at just US$1,184/oz. That is its lowest level since February, and also the same price it was in 2010.Speculation about an Indian import ban is not helping the yellow metal.
The New Zealand dollar will start today unchanged from this time yesterday at 70 US¢. On the cross rates it is also level pegging at 94.5 AU¢, and against the euro at 66.3 euro cents. The NZ TWI-5 index is still at 76. We should also note that the Chinese yuan is now at an eight-year low against the benchmark US dollar and traders are lining up to short it. In New Zealand we have seen a year and a half of steady depreciation but nothing like the extent of it against the greenback.
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 ».
Daily exchange rates
Select chart tabs
13 Comments
So why are coffee shop staff and Govt Dept workers working through labour hire companies.
"Most Government departments have quite a few people who are employed by temp agencies. And some of them are employed for quite a long time in their roles, and probably should be permanent employees." She said there's little that can be done for those people on flexible work contracts. "Our advice to them is to document the impact on them. It's really up to them to negotiate with either the agency or the place where they're employed. But there's no guarantee that's going to work. "Given the situation in Wellington, in future make sure you have a contract that covers these events. But that's for the future."
http://m.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11754…
Or a concrete erection, that flops and kills pretty regularly...and this last one was a Power Plant....Cooling Plant....which does not bode too well for the future. of the countries resources.
And they also have so many high rise residential buildings, shonkily built...heaven help em.
Way too many...like this, it even has India worried.
http://indianexpress.com/article/world/world-news/construction-building…
We should also note that the Chinese yuan is now at an eight-year low against the benchmark US dollar and traders are lining up to short it.
Hmmmm...
"...it is far more plausible that a dollar shortage (showing up as a rising dollar, or depreciating yuan) is forcing the PBOC to allow a wider band in order that Chinese banks can more ‘aggressively' obtain dollars they desperately need. Worse than that, the PBOC itself cannot meet that need with its own ‘reserve' actions without further upsetting the entire fragile system." Read more
Global banks' balance sheet constraints prohibit easy dollar credit creation conditions Read more
That OECD data misses the point entirely. The argument has shifted from income inequality, to asset inequality. We have had pretty stagnant wages over the period (across the spectrum) but asset prices have been going through the roof. Those that had them have done very well over the last decade, leaving behind everyone else
Asset inflation ultimately doesnt change the income problem though, unless you eat your house figuratively speaking. Its a sign that actual growth is dead, so that capital prices have to keep rising to allow new debt to be issued... Without continual issuing of new debt, the system stops. Theres not much road left.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.