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90 seconds at 9 am: Cyprus deal 'breaks taboos'; uninsured deposits at big risk; ugly Aust govt reshuffle; Aussie super at risk; no Unitary Plan deal; NZ$1 = US$0.834, TWI = 76.6
Here's my summary of the key news overnight in 90 seconds at 9 am, including news the euro is tumbling today as the market gets to understand that with the Cyprus bailout, nobody is safe from EU regulator solutions.
The 'final' deal is this. All deposits of €100,000 are safe. The second largest bank, Popular Bank of Cyprus, also known as Laiki, will be shut down.
Deposits above €100,000, which under EU law are not guaranteed, will be frozen and used to resolve debts, and Laiki will be shut down with thousands of job losses. Holders of those larger accounts can expect to see very little of their funds. In return the ECB will now provide liquidity to the Cyprus central bank.
In Australia, Labor politics is getting very ugly, with ministers walking and a reshuffled front bench. One senior ex-minister is warning the the Government is planning a raid on Aussie superannuation in its next budget.
In Auckland, there is no agreement on the Unitary Plan details after a late night meeting between the mayor and Nick Smith. The sticking point is still over the right of affected homeowners to appeal Council plans.
The Council wants it overridden in law and 'get on with it', the Government wants the homeowner rights to remain. A working committee will try and find a way past this issue.
Later this morning we get data on the New Zealand trade balance for February. An unexpected outcome could shift the currency.
The kiwi dollar starts today slightly lower than yesterday at 83.4 USc, 79.9 AUc, but the TWI is up at 76.6 on a much weaker euro.