Here's my summary of the key events over the weekend that affect New Zealand with news the expansion in world manufacturing just keeps rolling on.
Firstly in the US, a key gauge of factory activity cooled modestly for the second straight month in November, but the index is still very positive. A second PMI is not quite so elevated, but it is still expanding well.
That same survey feeds into a global survey and that is very positive indeed. In fact, it is at an 80 month high. The global manufacturing sector has strengthened, with rates of expansion in output, new orders and employment all hitting multi-year highs. Price pressures are high too, however, with input costs and output charges rising at accelerated and above long-run average rates. Both Japan and Europe helped push the trend higher, although China is a laggard.
This broad expansion shows up in world trade. Global airfreight grew by 5.9% year-on-year in October, the first month of the traditional strong period for demand seen every Q4. It was up +5.0% in the Asia-Pacific region. Reports from the industry indicate that freight demand has been very strong in November too, amid tight supply conditions. However, the rate of growth is slowing and may indicate the peak is nearing.
It may seem odd, but it is true; globalisation is pushing Trump's American prosperity. And it is driving the same elsewhere, including New Zealand.
In Japan, inflation rose in August, industrial output rose more than expected, and demand for labour was high, its strongest in over 40 years. Japan is is on a bit of a roll and we should not forget it is the world's third largest economy and our fourth largest export destination, one that grew by +7% over the past year.
Over the weekend and as expected, China issued new rules for payday lending; banning over-lending, repeat borrowing, violent debt collection, abnormally high interest rates, and privacy violations. They also ended issuing any more licenses for the industry.
In Australia, big news. The Australian National Dictionary Centre has chosen "kwaussie" as its word of the year. The word refers to a person who is a dual citizen of Australia and New Zealand, a New Zealander living in Australia, or a person of Australian and New Zealand descent.
In New York, the UST 10yr yield sank back a bit at the end of last week and is now at 2.36%.
The price of crude oil is a little higher, now just over US$58 / barrel, while the Brent benchmark is just over US$63.50.
The price of gold is up +US$7 to US$1,280 oz.
The Kiwi dollar ended last week a little firmer. We are now at 68.9 US¢. And on the cross rates we are at 90.5 AU¢, and against the euro at 57.9 euro cents. That puts the TWI-5 back at 71.6. And bitcoin is sharply higher again today, now at US$11,730 which is another record high and just over NZ$17,000. Over the weekend, the American derivatives regulator said it would allow CME Group and CBOE Global Markets to list bitcoin futures. If you thought you had seen it all, now you can have 'tulip' derivatives. Bitcoin is a "currency" that virtually no-one uses.
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 ».