Here's my summary of the key events ovenight that affect New Zealand, with news there are calls for the US Fed to "just get on with" a rate hike.
However, Wall Street equities have clawed back about half of yesterday's losses after Federal Reserve Board Governor Lael Brainard stuck to her dovish stance on interest rates, saying the central bank must be cautious in removing monetary stimulus too quickly. Equity markets might have been relieved because they thought they were going to hear a change of tune from Brainard. But bond markets have continued their sell-off with yields climbing further this morning. The "turning point" narrative is taking hold among bond investors. In fact "yield stocks" are also coming under pressure. Not every Fed voter agrees with Brainard (and Yellen?), so next week's meeting will involve "serious discussion".
The JPMorgan Chase boss, Jamie Dimon, said overnight that the US economy can handle a rate rise. And he just wants the Fed to get on with it "sooner rather than later".
In China, there are signs their central bank is becoming increasingly worried about their housing bubble. According to a key economist at the bank, China should take steps to restrain bubble-like expansion in housing markets and tame excessive financial inflows into property.
In Australia, NAB is offering a "world first" credit card - without the card. The account will exist solely on a smartphone and use contactless technology.
And staying in Australia, citing "very favourable" growing conditions, they have lifted their forecasts for domestic barley, canola and wheat crops – setting the scene for what one analyst termed a "gruesome" export battle.
In New York the UST 10yr yield is higher again today and now at 1.69%.
The oil price has firmed in today's trading, with the US benchmark price now just over US$46 a barrel, while the Brent benchmark just over US$48 a barrel. OPEC has raised its forecast of crude supply for 2017 as supply from fracking and other rivals just keeps on growing. The US keeps adding new rigs into production.
The gold price is lower however, by about US$10, now just on US$1,320/oz.
The New Zealand dollar opens just a little higher than this time yesterday. It is now at 73.5 US¢, 97.2 AU¢ and 65.4 euro cents. The TWI index is now at 76.7.
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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26 Comments
@infowars , Nah mate the Poll is wrong, flawed due to outdated polling methodology and a change in technology, and a move away from cable telephones
The Pollsters use the Phone book so they call households with traditional telephones that we had in our houses in the 1950's 60's and 70's , which is archaic methodology in our modern times
I , for example, have a landline , but I am not listed in the phone -book, so I have never had a call from a polling Company.
The people who respond to these polls are called by Landline Phones , and most low income families who are living in cars and garages don't have landlines , and anyone under 25 does not know what a landline is .
The Polls don't reflect the views of young or low -income Kiwis who have been pushed aside by migrants taking up or renting houses in low income areas .
I disagree boatman.
The polls are probably accurate.
I too am in the phone book and have never been polled so your point is moot.
As for "low income families living in cars garages not having landlines and not being polled .."
I think this fact strengthens the poll results as those people you mentioned don't tend to vote anyway..most cant be bothered.(ditto for many of the under 25,s)
its noticeable how labours fortunes have steadily declined since they hitched their wagon to the greens.
Little is a dead man walking..whether he believes the polls or not.
American defence think tank predicts possible Australian property crash in six weeks.
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=117…
Foreign buyer tax introduced in Melbourne like Vancouver....watch this space
Equity markets might have been relieved because they thought they were going to hear a change of tune from Brainard. But bond markets have continued their sell-off with yields climbing further this morning.
Not surprising:
The Treasury Department sold $24 billion of three-year notes and $20 billion of 10-year debt at 1 p.m. New York time. While the government has issued obligations of differing maturities on the same day, the simultaneous closings are unique for coupon note sales, said Aaron Kohli at BMO Capital Markets Corp. Read more and more
Back to "none and done"?
Interesting move by the NAB ( BNZ parent ! ) in Australia , the " Claytons Credit Card " ...it's one of those stories that flies below the radar , but which is a potential game changer on a worldwide scale ...
... further entrenching the " cashless society " ...
Awesome , absolutely awesome with a capital " O " ...
I can't believe the rubbish that passes as journalism about the US Federal Reserve. The group that actually get to vote are mainly appointed and are they really going to put up interest rates a few weeks out from the presidential election? They will cover their backsides and do what is expected of them, like the obedient little civil servants they are. That's why they are there. They are appointed for their malleability. They are not going to do anything that might jeapardise Hillary's chances, to them the idea of a Trump presidency is the end of the world.
Mr. Warsh, a former member of the Federal Reserve board, had this to say:
The conduct of monetary policy in recent years has been deeply flawed. U.S. economic growth lags prior recoveries, falling short of forecasts and deteriorating in the most recent quarters. Read more
So the PBOC or worried , well about bloody time.
We all need to recognise there are housing price bubbles almost everywhere except in Syria , Iraq and Afghanistan , driven by cheap money .
Our bubble is made worse by unplanned immigration , where we have been left gobsmacked by the numbers of new arrivals , all of whom need somewhere to live , and where we have done no planning to house these newbies whatsoever .
Its a disgrace that Government has been so tardy in its planning
If anyone was in any doubt about how incredibly precious our water is , might I suggest a trip over to Nasa's " Astronomy Picture of the Day " site ...
... yesterday they depicted an image of all the planet's water , accumulated as if it was a sphere , sitting against the side of our good Earth ...
http://apod.nasa.gov/apod/ap160911.html
Completely blew me away !
And that water is still throwing up surprises: "From the air, it looks like a 2,300-square-mile field of submerged doughnuts on the ocean floor.
The limestone circles amount to a second, deeper reef behind the Great Barrier Reef, researchers say. The scientists who discovered it off the coast of northern Australia say they're surprised by its vast size — and by the strange shapes."
http://www.npr.org/sections/thetwo-way/2016/09/02/492383489/massive-don…
Grossly misleading.
This is not a comparison of the surface where land verses water
You cannot take the earths surface water roll it into a ball and expect it to be as big as the earth it came from. Thats stupid.
If you take all of the earths VISIBLE land, roll it into a ball and see how big it is compared to the earth Yes WOW
Similar size as the water ball i bet.
"Hedge funds and other large speculators expanded their net-short holdings in wheat to 132,577 futures and options in the week ended Sept. 6, according to U.S. Commodity Futures Trading Commission data released three days later. That’s the most since the data begins in 2006. The bets have been net-short since August 2015, the longest streak ever.
It’s not just the wheat market that’s stuck in the doldrums. Corn and soybean prices both fell in August after the USDA predicted that domestic farmers would harvest record crops. With bumper harvests on the way, there are signs that farmers and elevators won’t have enough space to store all that grain. "
http://www.bloomberg.com/news/articles/2016-09-08/farmers-face-storage-…
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