Here's our summary of key events overnight that affect New Zealand, with news China needs to create a huge number of new jobs just to sustain social stability.
Firstly however, today's dairy auction was a mixed affair. In a low volume event, the lowest on offer in the last 45 events, overall prices were down -1.2% in US dollars with sharp falls for SMP which was down -8.6% where a quarter of the auction volume was. But more than half the volume was in WMP and that price actually gained in USD. At the same time the NZD is weaker, so overall prices actually rose +0.3% in local currency with WMP prices in NZ dollars up +1.2%. It could have been worse; the derivatives market signaled that WMP prices would fall -4.2% and that didn't happen. Soon, Fonterra will announce its half year result and will no doubt be quizzed on its China status and we will have full separate coverage of that.
In Washington, almost below the radar these day, a now normalised frenzy is taking place to fund their Federal Government. The current funding runs out this weekend and disagreements over health-care policy, immigration and funding for a crucial New York rail tunnel project drag on. Before them is a plan to just keep things going until October. In an age of extreme partisanship and silly brinkmanship (mainly by a juvenile Administration), this pattern is now normal. But at some point, it will blow up in their faces.
In China, their electricity consumption was up more than +13% in the first two months of 2018. That compares with a +6.6% gain in the same period in 2017. Such raw data is a good indicator of real activity.
They need this growth because they need to create 11 to 13 mln new jobs this year. Their working-age population will grow by more than 15 mln people, farmers are still flocking to their cities, and graduates are pouring out of their universities at an increasing rate. In addition, cutbacks in industries with severe overcapacity also need to find new work. China is on a jobs-creating treadmill at present.
A closely-watched survey of German business confidence fell sharply and unexpectedly in March. The sentiment index fell to +5.1 this month from +17.8 in February. That was compared to the consensus forecast for a reading of +13.1.
Meanwhile, the EU's own survey of consumer sentiment showed it holding at a relatively high level.
In a United Nations survey, they have rated New Zealand the eight happiest place on earth, the same rank as 2017. Finland is now #1. We rank just behind Canada, and well ahead of Australia (#10 and slipping), the US (#18, also slipping) and the UK (#19, slipping as well)
In New York, the UST 10 yr yield is higher today at 2.88%.
The gold price is down -US$5 and now at US$1,312/oz.
Oil prices are about US$1.50/bbl higher today and now at just under US$63.50/bbl and the Brent benchmark now just under US$67.50/bbl.
The Kiwi dollar will start today lower at 71.9 USc. On the cross rates we are lower as well at 93.5 AUc and at 58.7 euro cents. That puts the TWI-5 at 73.2.
Bitcoin is now at US$8,852 which is a gain of another +5.6% on top of yesterday's +12% jump.
This chart is animated here. For previous users, the animation process has been updated and works better now.
The easiest place to stay up with event risk today is by following our Economic Calendar here ».
Daily exchange rates
Select chart tabs
17 Comments
I see the Uber car that killed a pedestrian in Temple, Arizona, was not guilty. The woman was trying to cross seven lanes in a marked no pedestrian zone, with a bike loaded with plastic bags. These vagrants are all over the States and often high on some something. It's why I never drink and drive in the States not a drop, makes life very difficult if one of these step in front of you and you get to prove you were not impaired.
you read too many newspapers, the car was doing 38mph the speed limit was 45 mph. A woman, at night, trying to cross seven lanes in a marked no go area while walking a bike loaded with plastic bags. Happens all the time to normal human drivers.
"Police have viewed footage from two of the vehicle’s cameras, one facing forward toward the street, and the other inside the car facing the driver. Based on the footage, Moir said that the driver had little time to react. “The driver said it was like a flash, the person walked out in front of them,” she said. “His first alert to the collision was the sound of the collision.”
Hmmm.??
Police identified the victim as 49-year-old Elaine Herzberg and said she was walking outside of the crosswalk with a bicycle when she was hit at around 10pm on Sunday. Images from the scene showed a damaged bike. The 2017 Volvo SUV was traveling at roughly 40 miles an hour, and it did not appear that the car slowed down as it approached the woman, said Tempe sergeant Ronald Elcock.
https://www.theguardian.com/technology/2018/mar/19/uber-self-driving-ca…
The self-driving technology is supposed to detect pedestrians, cyclists and others and prevent crashes.
Drive out of San Fran airport, head north on 101 and then take the seventh street exit, before it cuts back onto the bay bridge and you get caught in the multiple occupancy lane stop under the bridge and spend an hour or two talking to locals. perhaps got to Sacramento and visit a tent city, 140,000 people spend the night in a tents in California. Sports shops put tents in locked cabinets.
This woman was 100 yards from a controlled crossing. The Police Chief has come out an stated it was not the drivers fault and there was a real driver in the car.
Opioid epidemic in the States along with Meth. It's hard to imagine that Wall street got a 700 billion handout from the government while millions lost homes forever.
https://www.rollingstone.com/politics/news/secret-and-lies-of-the-bailo…
police chief claimed women appeared "from out of nowhere" yet camera shows her clearly crossing in front of the car, albeit if the car can't see past the short dipped light beam there was little time to react.
Meanwhile the human driver wasn't even looking out the window. Looks like he's on a phone or laptop.
https://twitter.com/TempePolice/status/976585098542833664
Tech experts keep claiming automous cars are safer, but given they have not yet been released, how do we know that? We are expecting allot from human software developers.
It's got political.
looks faster on here
We don't trust Chinese GDP data, too easily manipulated by state officials desperate to please their bosses.
We prefer raw data like electricity consumption.
Except its not raw data, but rather a report by a state body, reported by the state media. What makes us think it's not manipulated to please the emperor or deceive the masses?
"BEIJING, March 20 (Xinhua) -- China's electricity consumption, a key barometer of economic activity, rose 13.3 percent to 1.06 trillion kilowatt hours in the first two months of 2018, official data showed Tuesday."
...nothing to do with the weather I suppose?
http://www.scmp.com/news/china/society/article/2126964/china-lifts-bliz…
The scandal, the latest in Facebook’s tortured history with privacy concerns, has eroded the potential for any of the company’s leaders to ever credibly run for public office. And it’s made Zuckerberg’s Chinese dreams a lot more fraught. One tech investor put it more succinctly: “They’re fucked.”
https://www.vanityfair.com/news/2018/03/facebook-will-never-be-the-same…
US identified 'Sarkozy the American' as firm ally,
http://www.france24.com/en/20101201-us-france-sarkozy-pro-american-bush…
From: Sidney Blumenthal
To: Hillary Clinton
https://wikileaks.org/clinton-emails/emailid/12900#efmALTAqG
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.