Here's my summary of the key events over the weekend that affect New Zealand with news New Zealand red meat farmers are facing damaging market changes in the EU.
But first, sales of new American single-family homes rose much more than was expected in October, to their highest level in 10 years. Analysts were bracing for a decline in sales volumes. The median price is US$312,800 (NZ$452,600) and somewhat surprisingly that is -3.7% lower than for September and only +3.3% higher than for October 2016. Essentially, more entry-level houses are selling faster and this will boost their construction industry.
In China, their NZ$22 tln wild west market for asset management products is facing far stricter oversight as regulators are adopting sweeping rules to rein in financial risk and curtail the rampant growth of the shadow banking. In future, Chinese wealth management institutions will have to offer investment yields based on the net asset value of their products that actually reflect the performance of the underlying assets. Really.
New Zealand's meat industry is facing some very tough consequences if there is a no-deal Brexit. The impact would be catastrophic for the European meat industry, according to a new report. A no-deal outcome would lead to “trade collapsing and market prices falling, resulting in job losses across the EU”. Meat products would face the highest tariffs of all industries, the group said. The collateral damage on New Zealand would be severe.
In Australia, they have issued an alert that a La Niña weather patter is imminent. For New Zealand, that tends to mean moist, rainy conditions to the north–east of the North Island, and reduced rainfall to the south and south–west of the South Island.
In New York, the UST 10yr yield is unchanged at 2.34%.
The price of crude oil is a little lower today, now just over US$58 / barrel, while the Brent benchmark is just over US$63.50. The slip is ahead of the next Opec meeting.
The price of gold is unchanged at US$1,287 oz.
And the Kiwi dollar will start today slightly higher. We are now at 69.1 US¢ which is its highest level in two weeks. And on the cross rates we are at 90.8 AU¢, and against the euro at 58 euro cents. That puts the TWI-5 at 71.8. Bitcoin has moved little overnight (the big move up was yesterday's news). However it did top US$10,000 on Korean markets, although elsewhere prices are pulling back from yesterday's extraordinary highs. And new wasy to short bitcoin are emerging.
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 ».