ABARE warns of lower iron ore prices as China slows; Britain hikes stamp duty for rich property buyers; Bank of England members eye more money printing
Here's my summary of the key news overnight in 90 seconds at 9 am, including news from the Australian Bureau of Resource and Energy Economics (ABARE) that it has forecast an 8.5% fall in iron prices this year as supply increases and demand from China starts to cool.
Markets are watching closely for signs China's economic slowdown may turn into a hard landing rather than a soft landing. Australia and New Zealand are particularly vulnerable to a hard landing, which is seen as growth of around 5%. See more here at SMH.com
The New Zealand dollar fell slightly overnight to be around 81.5 USc from 81.8 USc yesterday as markets continue to watch suggestions of a Chinese slide closely.
Meanwhile, the British government announced its budget overnight, including a cut in the top tax rate to 45% from 50% for incomes over 150,000 pounds. However, it also increased its stamp duty on property sales worth more than 2 million pounds to 7% from 5%.
It is also cutting Britain's corporate tax rate by 1% to 24%.
However, the figures also revealed a fresh blowout in British government borrowing to 15 billion pounds in February, more than double market expectations.
The Bank of England may end up buying the bonds.
Overnight minutes from the Bank of England's Monetary Policy Committee showed two members wanted to print another 25 billion pounds more.
This drove the pound down sharply vs the US dollar.