Daily Archives: July 28, 2013
Beware of understatement penalties.
Egypt: Egypt’s General Authority for Port Said Ports has said recent clashes in the country’s coastal cities have resulted in casualties, but have had no impact on maritime traffic, Daily News Egypt has reported. Ahmed El-Akkad, the chairman of Alexandria Chamber of Shipping, said there have been no suspensions in traffic since the June 30 protests. “Even during the unrest in Port Said in January, the port was working,” he added. [AMEInfo.com]
Egypt: Egyptian finance ministry has said the second quarter of 2013 saw a 2.2% growth of the country’s gross domestic product (GDP), Daily News Egypt has reported. The increase, however, was less than the first quarter, which saw an increase of 2.4% of the GDP, the ministry said. “Between May and July 2013, the budget deficit rose to 11.8% to reach EGP204.9bn, compared with EGP136.5bn during the same period last year,” it said. “In addition, it is expected that the budget deficit reaches 9.1% as a percentage of GDP during the fiscal year budget 2014/2013, to become approximately EGP186bn,” the ministry said in its report. [AMEInfo.com]
Egypt: Egyptian aviation officials have denied reports that passenger traffic at Cairo International Airport fell by 55% during the past few weeks of unrest, Daily News Egypt has reported. A report by Dutch news agency DPA said that traffic fell to “its lowest ever,” which pushed six airlines to cancel their flights to and from Cairo, calling it profitless. “55 % is a horrible decrease, and there is no withdrawal in number of passengers,” said the PR director of Cairo International Airport, Ahmed Saleh. “We are functioning properly, especially since we are in the Umrah season.” [AMEInfo.com]
Suspected members of Islamist group Boko Haram shot dead more than 20 civilians when a vigilante group attacked them in the northern Borno state.
The NZD has been by far the strongest performing G10 currency over the past fortnight. Globally, a modest pullback in the USD has been the dominant driver of currency markets. However, domestic factors have also helped spur the recovery in the NZD. Last week, the RBNZ explicitly warned, for the first time, that the next move in rates is up. This shouldn’t have been a surprise. But it did send OIS markets scrambling to price in earlier hikes. As a result, NZ-US interest rate differentials were propelled to their highest level since September 2011.
NZD/USD upward momentum remains strong, pointing to a test of the June peak of 0.8137 this week. Fed tapering fears are likely to recede further this week – US data surprises continue to be negative, this week’s US GDP report has downside risks, and the FOMC may characterise the data flow as mixed – pushing the US dollar lower, and in turn, NZD/USD higher.
The Reserve Bank’s stance on monetary policy has come into line with our long-held views – all now agree that the housing and construction booms will provoke inflation. Remaining uncertainties include the impact of mortgage restrictions and the reaction of business confidence to last weekend’s earthquake. Meanwhile, the dairy sector will get a confidence boost from signs from a supercharged milk payment this year.