Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


XE Morning Update - August 16, 2019

The Kiwi opens at 0.6445

The Kiwi continues to consolidate, with the market starting to look towards the Fed’s decision next month. Taking a leaf out of the RBNZ, the market is now pricing in a 42% chance of a 50 basis point cut out of the Fed, with a least 25 basis points all but confirmed. There is even talk of 75 points not being beyond the realm of possibility. Still a lot of water to go under the bridge before we get to the meeting, but it is looking like a live one.

Out of Europe, in something that has lead the EUR to be the worst performer, the ECB’s Rein has come out saying it Is better to overshoot on stimulus than undershoot. This really seems to be the prevailing view amongst central bankers, but it is something I would question. They are all of the view that it is fine if inflation is higher than target, as they can just raise rates to quell it. I would argue this is not so easy in a recession, with unemployment at 10% and inflation at 10%, raising rates to stop that is going to cause a lot of pain. For now though, memories are short, and “this time is different”.

US and European Equity markets are mixed- Dow 0.47%, S&P 500 +0.28%, FTSE -1.13%, DAX -0.70%, CAC -0.27%, Nikkei -1.21%, Shanghai +0.25%.

Gold prices are higher, up 0.9% trading at $1,532 an ounce. WTI Crude Oil prices are off, down 0.8% trading at $54.64 a barrel.


© Scoop Media

Business Headlines | Sci-Tech Headlines


$7.5 Billion Surplus: Government Accounts "Show Strong Economy"

“The surplus and low levels of debt show the economy is in good shape. This allows the Government to spend more on infrastructure and make record investments in health and education,” Grant Robertson says. More>>


New OIO Application Trumps Judicial Review: OceanaGold Cleared To Buy Land For Waihi Tailings Expansion

In a surprise turnaround, the government has given OceanaGold a greenlight to buy land to expand its Waihi mine after the application was previously turned down by Land Information Minister Eugenie Sage. More>>


Christchurch Rebuild: Fletcher Sued For $7.5m Over Justice Precinct

Fletcher Building is being sued for $7.5 million by utilities contractor Electrix, one of the subcontractors on the Christchurch Justice and Emergency Services Precinct. More>>

Three New Drugs: PHARMAC Signs Bundle Deal For More Cancer Medicines

420 New Zealanders with lung cancer, breast cancer, multiple sclerosis and respiratory disease will benefit each year from a bundle deal PHARMAC has finalised with a medicine supplier. More>>


"Levels Playing Field": Government Responds To Electricity Price Review

The changes announced today include: • Supporting new and independent retailers by requiring the big power companies to sell into the wholesale market at affordable rates. • Extending discount rates to all customers • A pilot scheme to help customers who have not switched power providers before to shop around for better deals... More>>