Apple credit cards!
Asian markets joined ours in taking a beating yesterday.
The Nikkei fared the worst falling 3%, whilst our ten year government bond traded down to a new record low yield of 1.75%; the three year is within a whisker of its record low, currently trading at 1.38% - 12 basis points below the interbank cash rate.
The US curve remains inverted between three months and ten years this morning giving commentators and economists plenty of fuel for their arguments in favour of a rate cut by the Federal Reserve.
Many local commentators are calling for a rate cut by the Reserve Bank. My own view is that this is a job for the Federal Treasurer and a wonderful opportunity presents itself on 2 April when he presents the Federal budget. The Reserve Bank has only monetary policy in its armoury, whereas the government’s fiscal quiver is full of arrows.
My dear friend Anthony Peters wrote in his missive this morning.... “If you want seven really well researched and thoroughly thought through opinions on rates and currencies all you need to do is to ask two economists”.
Overnight Apple announced it is going into financial services as well as news and video content in an effort to diversify away from the iPhone. The new credit card service will be in conjunction with Goldman Sachs.
Index futures are showing a 12 point gain and the Australian Dollar is back over US$0.7100.