News

New Zealand Q2 GDP

Gross Domestic Product -0.9% (QoQ) (Q2)

• expected -0.3%, prior 0.8%

Gross Domestic Product -0.6% (YoY) (Q2)

• expected 0.0%, prior -0.7%

NZD/USD has dropped a few tics on the data release. Big miss for this data. New Zealand in recession again.

New Zealand’s economy contracted in the second quarter

• heightened uncertainty around U.S. tariffs and ongoing weakness in the housing market cited

This article was written by Eamonn Sheridan at investinglive.com.

US SEC votes approve generic listing standards for new crypto ETFs

more to come

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Another tailwind for crypto.

Other news:

• Golden Trump statue with Bitcoin was installed outside Capitol before Fed rate decision

This article was written by Eamonn Sheridan at investinglive.com.

Three police officers have been fatally shot – Pennsylvania, USA

Two more officers are in critical condition.

more to come

This article was written by Eamonn Sheridan at investinglive.com.

Westpac says the Federal Reserve is edging toward a neutral stance as risks around inflation and the labour market become more balanced, though uncertainty remains elevated.

• At its September meeting, the Fed cut rates by 25 basis points to a midpoint of 4.125% and signalled that risk management was its priority.
• Updated forecasts point to firmer growth and a shallower rise in unemployment than previously expected, with GDP seen running near trend through 2028 and joblessness peaking at just 4.5% in late 2025.
• Inflation is projected to ease gradually, falling back toward the 2% target by 2027.

Westpac notes the Fed’s so-called “dot plot” reveals a wide dispersion of views, with some policymakers favouring more cuts this year while others see little need for further easing. By 2027, however, forecasts largely converge back to trend.

Even so, Westpac remains more cautious than the Fed’s median view. The bank believes U.S. growth and employment are likely to come in weaker than policymakers expect, while inflation may prove stickier. That combination, it argues, could force the Fed to keep policy modestly restrictive for longer, rather than shifting quickly toward an outright expansionary stance.

This article was written by Eamonn Sheridan at investinglive.com.

Deutsche Bank has lifted its 2026 gold forecast to an average of $4,000 an ounce, citing continued central bank buying, led by China, and the impact of U.S. Federal Reserve rate cuts.

• The new projection is up from the bank’s prior $3,700 call and reflects expectations that bullion’s premium to fair-value models will persist.
• Precious metals analyst Michael Hsueh said further upside is more likely than a correction, with central bank purchases potentially reaching 900 tons next year.
• Hsueh added that risks skew gold-bullish if the Fed’s independence is questioned, though Deutsche’s forecast does not formally include that scenario.
• The bank expects the Fed to keep rates unchanged in 2026 after three cuts this year, though Trump’s tighter immigration policy could restrict labour supply and strengthen the case for more easing.
• Deutsche Bank also raised its 2026 silver forecast to an average of $45 an ounce, up from $40, with the market set for a fifth straight year of physical deficits.

This article was written by Eamonn Sheridan at investinglive.com.

A 12-foot golden statue of President Trump clutching a Bitcoin was placed outside the U.S. Capitol on Tuesday, just ahead of the Federal Reserve’s policy decision. The temporary installation on 3rd Street, open from 9 a.m. to 4 p.m., was funded by a group of cryptocurrency investors.

Organizers said the artwork is meant to spark debate about digital currency, monetary policy, and Washington’s role in financial markets.

• “The installation is designed to ignite conversation about the future of government-issued currency and symbolizes the intersection of politics and financial innovation,” said Hichem Zaghdoudi, a spokesperson for the group.
• They added that with the Fed shaping policy, the statue should prompt reflection on cryptocurrency’s growing influence.

This article was written by Eamonn Sheridan at investinglive.com.

Brazil’s central bank decision:

• Kept the benchmark Selic rate unchanged at 15.0% in a unanimous decision (in line with Reuters poll).

• Removed reference to “continuation of the interruption” of the hiking cycle.

• Said it will remain vigilant and assess whether keeping rates at the current level for a prolonged period is sufficient to bring inflation back to target.

• Stressed that future policy steps can be adjusted and that it will not hesitate to resume rate hikes if needed.

• Highlighted monitoring of U.S. tariff announcements affecting Brazil and domestic fiscal policy developments impacting monetary conditions and financial assets.

• Noted inflation expectations remain de-anchored, inflation projections are high, and pressures persist from resilient economic activity and the labour market.

• Emphasised that de-anchored expectations demand a significantly contractionary policy stance for an extended period.

• Cited an uncertain global environment due to U.S. policy and economic outlook.

• Observed moderation in growth indicators as expected, but with continued strength in the labour market.

• Reported headline and underlying inflation remain above target.

• Concluded that risks to the inflation outlook remain elevated on both the upside and downside.

This article was written by Eamonn Sheridan at investinglive.com.

U.S. Treasury Secretary Scott Bessent was reported by Bloomberg to have listed two separate homes — one in New York and one in Massachusetts — as his “principal residence” when securing mortgages in 2007. The arrangement, similar to what President Donald Trump has controversially described as “mortgage fraud” in his push to remove Federal Reserve Governor Lisa Cook, was disclosed in filings with Bank of America.

Mortgage specialists told Bloomberg there was no evidence of misconduct in Bessent’s paperwork, noting that such inconsistencies are not uncommon. Bank of America reportedly did not depend on Bessent’s pledges and never expected him to occupy both properties as primary homes. Bessent’s lawyer, Alex Spiro, dismissed the report, saying the documents were completed properly nearly two decades ago and that the article itself confirmed this.

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Bloomberg carried the report. I’m going to go out on not too much of a limb to wonder aloud if the guy Bessent threatened, Bill Pulte, Trump’s director of the Federal Housing Finance Agency and the chairman of Fannie Mae and Freddie Mac, leaked this info as revenge for Bessent’s bluster?

This article was written by Eamonn Sheridan at investinglive.com.

The Federal Reserve on Wednesday delivered on a widely anticipated quarter percentage point interest rate cut.