Here's my summary of the key events overnight that affect New Zealand with news the Brexit shift away from London to Frankfurt is gathering pace.
Firstly however, in the US a new report shows a much bigger than expected jump by its index of leading economic indicators in October. The Conference Board said the index surged up by +1.2% after inching up by a revised +0.1% in September. Economists had expected the index to climb by +0.6% compared to the -0.2% drop originally reported for the previous month.
And Goldman Sachs has been telling clients that the US economy is heading into 2018 with good momentum that's likely to boost wages and inflation more broadly. That will require the Fed to raise interest rates four times next year, they said overnight in a research note.
In London, they are about to lose two big EU agencies that employs thousands. The EU is expected to announce today that the European Banking Authority will shift to Frankfurt, and another agency, the EMA to Bratislava. Goldman Sachs announced that it is moving to Frankfurt and Paris.
In Germany, there has been a political shock, one that threatens Angela Merkel's position. Hardly anyone could have imagined that talks to form a new German government after their MMP elections would collapse. Anything's possible now, from minority rule to a re-run of the vote, which Merkel says is her preference. One thing's clear however: it's a blow for the German Chancellor.
In Australia, the RBA has called for more transparency on mortgage rates as the gap in mortgage rates between new and old borrowers widens. Their analysis apparently shows that competition for new loans was much stronger than for existing loans. Their claim is that this is caused by a "lack of transparency and availability of information."
In New Zealand, Westpac's economists are saying this morning we are in for an economic slowdown in 2018. They say that this will be a consequence of the new coalition Government's policy push.
In New York, the UST 10yr yield is at 2.37%.
The price of crude oil is lower today, now at US$56 / barrel, while the Brent benchmark is at US$62
The price of gold is basically unchanged at US$1,296 oz.
However, the Kiwi dollar will start today a little lower. We are now at 68.1 US¢. And on the cross rates we are at 90.2 AU¢, and against the euro at 58 euro cents. That keeps the TWI-5 index at 71.2. And bitcoin is now well over US$8,000 and now at US$8,260.
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 ».