90 at 9: LAQC losses surge; NZ$ over 69 USc; Treasury more upbeat on economy

Click here for this mornings video. Bernard Hickey details the key news overnight in 90 seconds at 9am in association with ASB, including news from the Inland Revenue Department that LAQCs (Loss Attributing Qualifying Companies) claimed NZ$2.3 billion in losses for tax purposes in the 2008 tax year. These vehicles are often used by rental property investors to make losses on their rental properties which they then offset against their salaries to reduce their tax bills. The losses from these LAQCs have grown from NZ$710 million in 2003 in tandem with the housing boom. The IRD says there were 129,900 LAQCs in 2008, with 40,000 primarily used for property investing. Meanwhile the New Zealand dollar rose over 69 USc overnight. Both the Australian and New Zealand dollars are stronger, partly because our economies are faring better than most other developed economies. Finally, Treasury has upgraded its economic view after good business and consumer confidence data, but it says the economy remains unbalanced with relatively high property investment and a high current account deficit as export earnings are subdued by a high dollar.