Bernard Hickey details the key news overnight in 90 seconds at 9am in association with the BNZ, including news that US consumer credit fell US$11.5 billion in February, which was the biggest fall in 3 months and much worse than economists' forecasts. Many are worried US consumers, who drive 70% of the world's biggest economy, are avoiding spending to repay debt. This is all part of the de-leveraging trend that will slow recovery. The Dow fell 100 points or 1% on the news. Also, US Fed Reserve Chairman Ben Bernanke said the economy was 'not out of the woods' yet. However, there was good news in the key relationship between the US and China. US Treasury Secretary Timothy Geithner will meet with China's Vice Premier this week to talk about the contentious of China's overvalued currency and how to float it. Talk is growing that China will allow a quiet appreciation from its current 6.82 yuan/1US$. This would help cool trade tensions between the United States and China and perhaps avoid a damaging trade war. Meanwhile, there was ominous news from Greece where it appears a bank run is happening, the FT reported. The 4 biggest banks have asked for government help after 4.5% of deposits were pulled in the last 2 months. There is also talk people are withdrawing 200 and 500 euro notes from ATMs.
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