Here's my summary of the key events over the weekend that affect New Zealand with news an Australian first-home-buyer grant scheme has been abused mercilessly.
But first, in a speech earlier today Janet Yellen signaled the US Fed would be looking past the inflation data that came out on Saturday. She said the American economy is strong and tightness in their labour market justifies staying on the gradual rate hike program they have set.
That US inflation data reports prices are up +2.2% in the past year, boosted by a +10.1% rise in oil prices. Food prices rose +1.2%. Inflation other than for food and energy was up a tame +1.7% and that was a tick lower than expectations.
Also in Washington DC was the governor of the People Bank of China. He claimed that China has the capacity and confidence to control systemic risks while "maintaining steady growth". Chinese hubris will need to be watched. But we will get more of this in the next week; delegates to the 19th Chinese Communist Party National Congress are now starting to arrive in Beijing.
The Australian Treasurer is also in Washington and he claimed the Aussie interest rate and exchange rate settings are about right for their economy.
Meanwhile, retail sales in the US rose a strong +1.6% in the month of September although not quite up to market expectations (+1.7%). They are a healthy +4.4% higher than the same month a year ago, way more than inflation which shows strong real gains.
That strength was underpinned by a strong consumer confidence reading also out over the weekend in the US.
Singapore announced that its economy grew by +4.6% in the September quarter and far stronger than had been expected.
In Australia, there has been a sharp lesson for politicians who try and game the real estate markets by 'helping first home buyers'. In fact, the main beneficiary seems to be the developers, and the Aussie scheme just encouraged buyers to rort the scheme with rampant double-dipping. These types of schemes just create a honey-pot for the unscrupulous.
In New York, the UST 10yr yield will open lower at 2.28%, down following the US CPI data.
The price of crude oil is higher today by nearly +US$1 and now just under US$51.50 a barrel, while the Brent benchmark is just under US$57.
The price of gold is also higher, up +US$10 at US$1,302/oz.
And the Kiwi dollar will start the week higher again, up another ½¢ at 71.8 US¢. On the cross rates we are at 90.9 AU¢, and at 60.7 euro cents. Our TWI-5 index is now at 74.3.
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 ».