Here's my summary of the key news overnight in 90 seconds at 9 am, including news from around the world as we await the 9 am RBNZ OCR decision.
Firstly, China announced new steps aimed at bolstering slowing economic growth by cutting taxes, spending more on developing the Yangtze River region and expanding financing for exporters.
US stocks fell with European equities as the World Bank cut its global growth forecast.
British unemployment fell to the lowest level in more than five years as the strengthening economic recovery boosted payrolls by a record.
Emirates Airlines has canceled orders for 70 of Airbus’s newest aircraft, the A350, following a review of its fleet requirements. The NZ$25 bln order had represented around 9% of the orders for A350s. The chances are those orders will be placed now for Boeing's 777x.
In Australia, supermarket giant Coles is reported to be getting ready to launching banking services there based on its burgeoning financial services arm. They are targeting banking to better bind customers to its stores and boost grocery sales. No doubt their main rival Woolworths will react similarly. Woolworths own Countdown. Coming to NZ soon?
The IMF warned overnight that there the possibility of another housing crash is growing and that governments should act now to prevent it.
Today, UST 10yr benchmark bond yields are 2.63%, down marginally from yesterday. Oil is unchanged which is a bit surprising given the growing trouble in Iraq. Higher than expected US inventories might be the reason. Gold is also unchanged.
On the exchange rate the NZD has risen again overnight ahead of the RBNZ decision. It starts today at 85.6 USc, at 91.2 AUc and the TWI is at 79.8.
We will have full coverage of the Reserve Bank's monetary policy statement of course here at 9am.
If you want to catch up with all the changes from yesterday we have an update here.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »
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4 Comments
David - thanks for the link to the World Bank.
"Now is the time to prepare for the next crisis".
Yep - NZ NZRB is doing its best in another 15 minutes time.
The World Bank video on this subject is amazing - it conveyed nothing.
Should I start hoarding hard assets?
Supermarkets & transaction banking why not
http://media.smh.com.au/featured/woolies-farmers-call-jamie-oliver-for-help-5503256.html
https://www.youtube.com/watch?v=jY2T_fDQi4g
Here's Labour's reaction to the IMF report;
It’s official – New Zealand housing is too expensive
The IMF has confirmed that New Zealand has some of the most unaffordable housing in the world, says Labour’s Housing spokesperson Phil Twyford.
“Following hard on the heels of a critical OECD report in May, the IMF says New Zealand has the third highest rate of housing price growth at 9 per cent. We are only beaten by Hong Kong and the Philippines.
“This makes the Government’s decision to have an almost housing free budget in May even more unfathomable. “The IMF report also shows New Zealand house prices are way out of step with what has been the country’s historic average. House prices compared to incomes are now above historic levels by 30 per cent, the fourth highest in the countries surveyed.
“The difference in the house price to rent ratio is 80%, the second highest in the survey.
“This Government has sat on its hands while the housing crisis has got away on them. The Prime Minister even denies there is a crisis.
“We need to restore housing affordability to give every New Zealander the opportunity to own their own home.
“Labour has a positive plan to fix the housing crisis. This includes building 100,000 affordable homes, cracking down on speculators, and reforming monetary policy.”
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