Markets bet heavily on the TACO effect
Kia ora.
Welcome to Wednesday’s Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.
I'm David Chaston and this is the international edition from Interest.co.nz.
Today we lead with news markets are betting Trump will 'declare victory' over Iran soon and walk back his war.
But the Straits of Hormuz are still effectively closed - to all but Iranian-linked vessels. Perhaps oddly, markets are assuming they will open to all 'soon'. The US Navy has escorted one tanker through. The betting on TACO is strong.
But separately today, the overnight dairy Pulse…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.