Here's my summary of the key events overnight that affect New Zealand, with news of a major move to tighten money laundering through real estate.
But first, applications for American mortgages had their biggest weekly rise in three months as home lending interest rates fell, data released overnight showed.
And in the US, their government announced it is starting to track and identify secret buyers of real estate, especially high-end property. The program will start in Florida and Manhattan and roll out from there, This is part of their widening attempt to control money laundering.
In China, there has been something of a surprise from their December trade data. Exports fell, but far less than analysts were expecting. Their trade balance was up to a very respectable US$60 bln. The adjustment lower in their currency may be helping. But this result does raise the risks of a currency war among Asian nations.
And China has set up a new cabinet office to co-ordinate financial and economic policy, a tacit admission that its ad hoc and disjointed policymaking is failing. This seems an odd move because they already have layers and layers of co-ordinating bodies. It will only be credible if it cuts many of those.
Back in New York, the UST 10yr yield benchmark has fallen in mid-day trading today and is now at 2.13%. Local swap rates held yesterday but are likely to follow Wall Street in trading today.
And crude oil is holding just over US$30/barrel after a brief flirt under. That is lowest in 12 years and comes after US crude stocks rose, albiet modestly this week. We will see continued belt-tightening by the oil majors and spell more pain for crude-producing nations and regions.
China has for the first time set the lower limit of its domestic petroleum price at US$40 per barrel, citing environmental concerns. At the same time, they lowered local petrol and diesel prices.
And the gold price rose marginally to US$1,090/oz.
It's been a variable night for the Kiwi dollar but it starts today at similar levels to this time yesterday. It is now at 65.6 US¢, now at 93.8 AU¢, and at 60.4 euro cents. The TWI-5 is pretty much unchanged at 71.2.
If you want to catch up with all the local changes yesterday, we have an update here.
The easiest place to stay up with event risk today is by following our Economic Calendar here ».
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16 Comments
We don't love the launderers, just their money... you have to give it to the nats, by allowing any and all money to pump up the Auckland (and soon to be rest of NZ) property market, you are effectively making a large portion of the the Kiwi population rich... that way you don't have to think of innovative ways of enriching your people, you just create wealth out of the coffers of corrupt money ( note -I didn't say who or where the corrupt money was coming from David) and hey presto, wealth for the retirement of many. It's genius really!
Don't expect the same laundering investigations to happen in NZ any time soon, too many vested interests in not 'knowing.' The NZ government and the new rich have their fingers in their ears singing, "la la la la, I can't hear you..."
Money laundering only going to continue in NZ with no regulations and an open door policy. NZ is the most expensive country in the world to live in and it isn't going to get cheaper... This from CNBC this morning - enjoy
This is 2016's most pricey country http://video.cnbc.com/gallery/?video=3000480036
"Gotta dig deep to buy a home down under!"
Why is JK allowing this? What is the pay off?
Maybe JK will do something (albeit eventually) cos his big bro Obama is...
http://bloom.bg/1Q5BMj4
Albert Edwards has just spilt the beans (note the journalist's dismissive tone, he must have still been at school in 2007 and 2008, when Albert Edwards was one of the very few people who understood what was happening):
http://www.telegraph.co.uk/finance/economics/12097262/Notorious-uber-be…
TPPA will probably cost us more,
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=115…
LOL - The 12-country trade deal, which is expected to be signed off by leaders in Auckland next month, is estimated to have net economic benefits for New Zealand of up to $2.7 billion per year from 2030.
Forward looking guesses without hard evidence have zero value - hence the costs begin today and that's it. The benefits are utopian unicorns in someone's dream.
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