Here's our summary of key events overnight that affect New Zealand, with news one large industrial is changing its structure in a globally significant way.
American carmaker GM has announced it is cutting production of a range of slow moving models, closing five large North American plants and another 3 elsewhere, and refocusing on electric and autonomous vehicles. The move will cost 14,000 jobs (including 15% of salaried staff) and about US$4 bln in restructuring costs. (It claims that in the past 4 years it has "created or maintained 17,600 jobs".) Tech changes and being ready for trade war fallout is behind the unexpected moves.
This move comes amid some ho-hum data. A measure of US economic activity, the National Activity Index, rose marginally in October, but the gains were minor.
In Texas however, their regional November manufacturing survey came in much weaker than expected, with the expansion slowing there substantially. And that is spilling over to housing as well.
On Wall Street, equities are rising, fueled by gains in retailer shares from unexpectedly firmer holiday sales volumes. The S&P500 is up +1% in early afternoon trade. In Europe, stocks rallied after signs that Italy was preparing to revise the spending plans that have brought tensions with the EU.
Argentina says it is about to agree a major deal with the US on the beef trade, opening up a trade that has been closed for about 20 years. This is a move that may have significant implications for New Zealand's beef trade with the US.
The UST 10yr yield is firmer today at just under 3.07%. Their 2-10 curve is holding low however at +23 bps. The Aussie Govt 10yr is at 2.64% (unchanged), the China Govt 10yr is at 3.43% and up +1 bp overnight, while the NZ Govt 10 yr is at 2.68% and down -2 bps..
Gold is becalmed at US$1,222/oz.
US oil prices have bounced higher today and are now just under US$52/bbl. The Brent benchmark is now just under US$61/bbl, both about a +US$1.50 rise.
The Kiwi dollar is starting today little changed at 67.9 USc. On the cross rates we are similarly unchanged at 93.8 AUc, and at 59.9 euro cents. That has the TWI-5 at 72.5 and off its recent highs.
Bitcoin is now at US$3,745 which is +2% above this time yesterday. But in-between times it has jumped all over the place in a +/-10% range around the current price. It is struggling to find a direction after its spectacular -40% fall below to US$4,000. This rate is charted in the exchange rate set below.
This chart is animated here.
The easiest place to stay up with event risk today is by following our Economic Calendar here ».
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