90 seconds at 9am: UK slashes budget; Hubbard banned from office; Dow down

UK slashes budget; Hubbard banned from office; Dow down

Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with the BNZ, including news that Britain has announced plans to cut 15% of its spending by 2015 and put up its GST to 20% from 17.5% to bring its chronic budget deficit back into structural balance by 2015. 

Britain's new Prime Minister David Cameron also announced plans for a bank levy of 0.04% on riskier liabilities, excluding tier 1 capital and insured deposits, to raise 2 billion pounds a year.  This will help net debt peak at 70% of GDP by 2014 and he hopes prevent a Greek style meltdown on financial markets. Meanwhile Japan's new Prime Minister Naoto Kan has also announced plans to cut its government deficit over the next decade.

In Timaru, the Serious Fraud Office has banned Allan Hubbard from going to his office as part of its investigation of what it says are pointers towards a "complex or serious fraud." The Timaru Herald pictures Hubbard in his bed receiving Dialysis.

Meanwhile in New York, the Dow fell 1.4% by late trade after surprisingly weak existing home sales figures raised fresh fears about America's economic recovery.

The New Zealand dollar also weakened, as it often does, when the Dow fell as investors shied away from currencies like the New Zealand dollar that are seen as riskier and more connected to volatile commodity prices.