Global rates rise as some Chinese data improves

<p>Kia ora,</p><p>Welcome to Tuesday’s Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.</p><p>I'm David Chaston and this is the International edition from Interest.co.nz.</p><p>Today we lead with news of some improved data out of China, but it isn't all 'good'.</p><p>But first in the US, the <a href="https://www.newyorkfed.org/medialibrary/media/survey/empire/empire2021/esms_2021_11.pdf?la=en" target="_blank"><strong>factory survey for the New York region</strong></a> has maintained its strong situation. New orders and shipments posted substantial increases, and unfilled orders rose. Delivery times were significantly longer. Employment grew at its fastest pace on record, and the average work week increased. The prices paid index held near its record high, and the prices received index reached a new peak. Firms planned significant increases in capital and technology spending.</p><p>In Canada, with the re-election of the Trudeau Government, a campaign promise is about to be enacted with <a href="https://www.theglobeandmail.com/business/article-liberals-new-bank-tax-could-be-implemented-by-start-of-2022/" target="_blank"><strong>a special 3% increase in the tax on financial institutions</strong></a> who make more than C$1 bln in annual profits. They are also about to collect a special fee from them too, called the Canada Recovery Dividend. Both are expected to raise C$2.5 bln per year over the next four years with the monies going into a housing fund to ease affordability.</p><p>In Japan, the first look at their <a href="https://www.esri.cao.go.jp/en/sna/data/sokuhou/files/2021/qe213/pdf/gaiyou2131_e.pdf" target="_blank"><strong>Q3 GDP data</strong></a> isn't flash, falling at a -3.0% annual rate after a +1.5% rise in Q2. And that poor result was matched by Japanese <a href="https://www.meti.go.jp/english/statistics/tyo/iip/index.html" target="_blank"><strong>industrial production</strong></a> data for September. Since September, however, most Japanese data has improved