US house prices up; Factories humming in US and EU; IMF downgrades US growth, suggests HQ move to Beijing; US MNC cash stash jumps; UST 10yr yield at 2.25%; oil and gold higher; NZ$1 = 74.3 US¢, TWI-5 = 77.2

Here's my summary of the key events overnight that affect New Zealand, with news of an eye-popping corporate cash stash.

But first in the US, house resales fell -1.8% in June which was more than expected, as a dearth of properties amid strong demand pushed prices to a record high. The new median price is now US$263,800 (NZ$355,000) which is up +6.5% in a year and that kept first home buyers out of many markets.

The US manufacturing PMI rose in July to a four month high, while their services PMI held at its relatively high level. Together these represent the best levels in six months.

Across the Atlantic, their July PMIs lost a little momentum in July, but in fact they are at stronger expansion levels that the US still.

But in Japan, the loss of momentum was more worrying, with their factory index at an eight month low.

Back in Washington at the IMF, the head of that organisation has said this morning that they may be based in Beijing in ten years. Apparently they have a rule that they are based in the capital of their largest member, and if the US stumbles while China's economy keeps on growing as it is now, they will be moving. At the same time, they have raised their forecasts for economic growth over the next three years, even as they lowered them for the US.

In Sweden there has been a "security disaster" through the outsourcing of a vehicle licensing system to IBM.

And Moody's has shone a light on the tax-avoiding habits of large American multinationals, and their duplicitous PR. Yesterday, we reported that Apple is disputing its EU / Irish tax liability of €13 bln. Apple's Tim Cook claimed they did not owe income tax there because they did most of their work in the US which is "where they paid most of their tax". Moody's is reporting that US companies like Apple now have US$1.3 tln in tax-avoided cash parked overseas. That is up +9.2% in a year and represents 70% of all US corporate cash. The tech giants dominate the list.

In New York, the UST 10yr yield is at 2.25%.

The price of oil rose by about US$1 overnight and is now at just under US$46.50 a barrel, while the Brent benchmark is now just over US$48.50.

The price of gold is also slightly higher, up US$3 to US$1,254/oz.

But the Kiwi dollar is a little softer, now at 74.3 USc, coming off a 14 month high. On the cross rates we are softer as well at 93.8 AU¢, and at 63.8 euro cents. As a result the TWI-5 index will start today at 77.2.

If you want to catch up with all the 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 ».