Here's my summary of the key events overnight that affect New Zealand with news of huge shifts coming in the energy market.
The German economy grew by +2.8% in Q3 2017 from a year ago, driven by strong investment. Italy said its growth rose to +1.8% year-on-year. But there were slowdowns in France, Spain and the Netherlands.
In a major assessment, the International Energy Agency is predicting "major upheaval" as the US becomes the world's largest oil and gas producer, while China overtakes it as the biggest oil consumer. It sees energy demand rising by +30% by 2040 driven by higher consumption in India. It also sees renewable energy sources gaining to supply 40% of the increase in demand. They see coal's share collapsing and oil's falling. Gas will hold its own, they say. Through all this, demand signals will be driven by China. And most of that renewables supply will originate in China. But the largest impact will be from energy efficiency - they say demand growth would be double the +30% predicted without the major strides being made in efficiency.
Standard & Poor's has declared Venezuela to be in "selective default". It's state-owned oil company has also defaulted. The country owes its creditors US$140 bln and now can't pay the interest due let alone the scheduled principal. Nor can it get any agreement to roll over its facilities.
In the US, their Food & Drug Administration has approved the world’s first digital drug, an antipsychotic pill that signals smartphones once it reaches the gut so doctors can track whether patients are taking their medication. It is the start of a pharmaceutical revolution.
In Australia, the latest survey of business confidence has it at record levels. The rises are across all industries including retail. According to the National Australia Bank's monthly business survey, business conditions rose Australia-wide by seven points to 21 points in October, a record high and up to four times the long run-average since the report began in 1997.
In New York, the UST 10yr yield is at 2.38%, -2 bps lower than this time yesterday.
The price of crude oil is down -US$1.50 to just under US$55.50 / barrel, while the Brent benchmark is just over US$61.50.
The price of gold is up +US$7 at US$1,279 oz.
The Kiwi dollar's softer tone is continuing. We are now just under 68.8 US¢. And on the cross rates we are at 90.2 AU¢, and against the euro at 58.5 euro cents. That puts the TWI-5 index at 71.9.
If you want to catch up with all the changes yesterday, we have an update here.
The easiest place to stay up with event risk today is by following our Economic Calendar here ».