Need to know: Monday, July 7

NIKO KLOETEN
Last updated 08:16 07/07/2014

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What you need to know on Monday morning, July 7.

- NZX50 up 39.52 points (0.77 per cent) to 5188.905

- NZ dollar at US87.38 cents, A93.33c, 89.19yen, 50.93p, 64.28€c

- Brent crude oil at US$110.58 a barrel (down US42c)

- Spot gold at US$1320.70 an ounce

WHAT'S ON TODAY

- Investors will continue to keep a close eye on the world economy after IMF boss Christine Lagarde hinted at a slower global growth outlook.

STOCKS TO WATCH

- Meridian, Genesis, Mighty River Power: Investors in the three former state-owned enterprises already face a risk with the prospect of Labour introducing its "NZ Power" single-buyer policy, that analysts have estimated could wipe $500 million from the value of electricity generators. Now Labour leader David Cunliffe says the party would look at buying the companies back on a "case-by-case" basis.

TOP INTERNATIONAL NEWS

- Global economic activity should strengthen in the second half of the year and accelerate in 2015, although momentum could be weaker than expected, IMF chief Christine Lagarde said on Sunday, hinting at a slight cut in the Fund's growth forecasts.

Lagarde said central banks' accommodative policies may have only limited impact on demand and that countries should boost growth by investing in infrastructure, education and health, provided their debt stayed sustainable. The IMF's update of its global economic outlook, expected later this month, will be "very slightly different" from the forecasts published in April, she said. In April, the IMF had forecast that global output would grow by 3.6 per cent in 2014 and 3.9 per cent in 2015.

"Global activity is picking up but the momentum could be less strong than we had expected because potential growth is weaker and investment ... remains subdued," she told an economic conference in southern France.

Lagarde made a plea for more public investment, saying the "investment deficit" in both the public and private sectors was dragging down growth in most countries.

SOMETHING ELSE FOR YOUR MORNING

- Historians might need to rewrite the books if a reproduction of a Kiwi-built 1903 plane achieves lift-off at the 2015 Wings Over Wairarapa airshow.

Airshow director Tom Williams has confirmed the appearance of an exact reproduction of the plane that South Canterbury farmer Richard Pearse built, and possibly flew, in March 1903 - eight months before The Wright brothers.

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