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90 at 9: Roubini's 'stagdeflation'; Early Dow rise hit by warning of further credit losses

90 at 9: Roubini's 'stagdeflation'; Early Dow rise hit by warning of further credit losses
Alex Tarrant presents 90 at 9 in association with ASB. The Dow rose in early trade, but then lost those gains as SunTrust Bank said it believed lenders in the US still faced further credit losses and warned commercial property may be hit in 2010. US Treasuries rose overnight ahead of an upcoming US$42 billion sale, with news that the US Fed bought US$6.1 billion of government securities that are due in 2011 and 2012. Meanwhile, Nouriel Roubini has warned of a double-dip recession as governments try to unwind the massive amount of stimulus they have pumped into economies all over the world. The Bank of Israel raised its key interest rate by 25 bps to 0.75% overnight as inflation worries grew. It became the first central bank to raise its key rate as signs emerge that the global recession is beginning to ease. Finally, Labour MP Charles Chauvel has proposed capping the interest rate lenders can charge under a consumer credit contract at 48%.

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