Here's my summary of the key events overnight that affect New Zealand, with news global markets are pretty stable ahead of the Federal Reserve and Bank of Japan meeting this week, and the Reserve Bank of New Zealand and Bank of England meeting next week.
Turning to the US, ANZ economists say its domestic case for a rate hike is robust, but the reality is the Fed will be on hold for the foreseeable future. They say “Fedspeak” has been notable for its absence, and we would be seeing a bit more prep by now had the bank been ready to pep things up. With other major central banks expected to err on the side of easier policy, the US dollar also still looks attractive.
G20 leaders are turning their heads from monetary to fiscal stimulus to energise the global economy. Speaking at a summit in China, the head of the OECD said countries should make the most of cheap lending costs to invest more. China, Japan and the UK have already starting easing their fiscal stances or hinted at plans to do so.
Business sentiment in Germany is better than expected. Its IFO business climate index declined less than expected in July, coming off a seven-month high in June. Europe's largest economy is proving resilient in the immediate aftermath of the Brexit.
The Chinese Government has upped its efforts to silence freedom of speech. It's banned several online news portals, including Sina Corp and Tencent Holdings, from reporting original news. It's ordered companies to simply dismantle their "current affairs news" operations, saying they can only publish reports provided by government-controlled media.
Deutsche Bank is facing court action further to the GFC. A US district judge has ruled the bank must face part of a lawsuit for claims it defrauded investors who bought $5.4 billion of preferred securities by concealing its exposure to the fast-deteriorating subprime mortgage market in 2007 and 2008.
The UST 10-yr yield is at 1.56%.
The US benchmark oil price has dropped again to US$43/barrel while the Brent benchmark is at US$45/barrel. US production has increased for the fourth week in a row, as has the US's rig count.
The gold price has dropped to US$1,318/oz.
The NZ dollar is continuing to hover just below 70 US¢. It's inched back since this time yesterday to 93.6 AU¢ and 63.6 euro cents. The TWI-5 index is at 74.0.
If you want to catch up with all the local changes from 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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11 Comments
In another sign that the government is exerting influence over information, the publishers of a private purchasing managers index suspended that popular gauge without explanation.
Houston ..... We no longer have a problem.....
https://www.youtube.com/watch?v=iXRq4L4BcbQ
Knowing when to walk away, and knowing when to run........
Vancouver Finally Cracks Down On Chinese Home Buyers With 15% Real Estate Tax
http://www.zerohedge.com/news/2016-07-25/chinese-national-center-massiv…
Go on JK, do something similar, it might even win you a few extra votes.
He is protecting himself.
His artificial GDP would crater without this protection and the love for him that the grey beards have would also disappear. The farmers are probably already mumbling into their cups for the false dawn he promised.
Remember Kiwis, this time its different - we are such skilled investors its breathtaking.
PM by taxing foreigners (Non Resident) buyer you will not only help in curbing speculation but will also get revenue that can be used in infrastructure.
See how Canada will help its country budget also by taxing foreign buyer ;
http://www.cbc.ca/news/canada/british-columbia/suplus-property-transfer…
Not only control Housing Crisis but also help to get revenue my dear PM-Act Now.
In the long run no amount of denial and protection will help as sooner or later you will have to act than why not act now and save yourself embarrassment
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