Oil rose 2% to 10-month highs overnight after OPEC forecast further strong demand. Diesel prices are surging even more, reviving supply chain inflation headaches.
In our bonus deep-dive interview, ANZ’s Head of Food, Beverage and Agribusiness Insights Michael Whitehead details a massive shift in Australian farming from sheep and cattle to grain.
5 things to know
Brent crude prices jumped 2% to over US92/bbl after OPEC forecast ongoing strong demand through 2024. ANZ’s Senior Commodity Strategist Daniel Hynes also points to supply chain inflation worries because of even bigger rises in diesel prices due to supply and refining problems.
ANZ’s Head of G3 Economics Brian Martin says markets should watch out for a higher US economic growth forecast from the Fed next week, which would signal high global interest rates for even longer.
New Zealand’s Government has delayed its surplus forecast for a year and increased its borrowing programme by NZ$9b, but gave a surprisingly upbeat economic outlook because of high migration, says ANZ’s Senior NZ Economist Miles Workman.
India’s annual CPI inflation of 6.8% in August was softer than market expectations for over 7%. Vegetable inflation fell sharply.
Net migration to NZ rose to a record high in July. ANZ’s Chief Economist Sharon Zollner says there’s plenty of kiwis leaving for Australia too.
Cheers
Bernard
PS: Look out tomorrow for a deep-dive interview with ANZ’s Head of Asia Research Khoon Goh about a surprising and rare net outflow of Foreign Direct Investment from Asia.
