Here's our wrap of what's happened around the world over the weekend.
European Union leaders haven’t been able to find a quick joint solution to the region’s migration woes at a meeting held over the weekend. German Chancellor Angela Merkel had hoped to secure some consensus in the face of pressure from her coalition partner who wants her to up the ante on migration. If she doesn't, she risks a collapse of her government. Merkel says she’ll now work with separate EU states on the matter.
Meanwhile US President Donald Trump is calling for all illegal immigrants to be sent back to where they came from without going through a judicial process.
The New Zealand Government has formally announced it will invite prefabrication companies from here and abroad to make KiwiBuild homes. Housing Minister Phil Twyford says it’s early days, but these prefabs could make up more than half of the 100,000 homes to be built through the scheme. With an official tender yet to be released, details around exactly what finance and investment arrangements would look like are scant.
The EU says it will have “no choice” but to “react” if the US proceeds with Trump’s threat to impose a 20% tariff on EU car imports. Trump made the call on Saturday (NZ time) – a month after his administration launched an investigation into whether auto imports posed a national security threat. The inquiry is expected to wrap up in February next year. Talk about tariffs has seen the value of car company shares fall.
America’s largest banks have all passed the first phase of the Federal Reserve’s annual stress tests. While they all have enough capital to keep lending during a major downturn, some would take bigger hits due to higher credit card balances and a one-off accounting issue related to last year’s tax overhaul.
Markit’s US manufacturing PMI fell by more than expected in June to its lowest point in seven months. Despite growth cooling, the latest numbers round off the best quarter in three years. Meanwhile the services sector PMI only edged down a little in line with expectations.
Turning to Europe, improved service sector performance helped offset an increasing drag from the manufacturing sector. This lifted growth off the 18- month low seen in May.
The UST 10yr yield has fallen over the weekend to 2.89%.
Gold is stable at US$1,267/oz.
Oil is higher following an OPEC agreement to raise output less than feared. US crude is up slightly to US$67/bbl, while the Brent benchmark has jumped to US$76/bbl.
The New Zealand dollar is stronger at 69.1 USc and 59.3 euro cents, but weaker at 92.9 AUc. The TWI-5 is up 2bps to 72.4.
The price of Bitcoin has fallen by about US$500 since this time on Friday to US$6,193.
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