Bernard Hickey details the key news overnight in 90 seconds at 9am in association with BNZ, including news Fonterra's April milk powder auction produced strong results. Prices rose around 21-25% in April from March because supplies were limited towards the end of the season. Prices have now doubled from their July trough and are only 10% below the peaks from 2008 when Fonterra paid out NZ$7.90/kg. Fonterra's current NZ$6/kg payout forecast for this year is unlikely to change much, but a rise next year would be good for the NZ economy. The Fonterra news helped boost the NZ dollar back towards 70.6 UScents. It had fallen overnight on fears the Greek rescue deal is unraveling and after the Reserve Bank of Australia hiked its official cash rate to 4.25% from 4%. The Greek fears arose after a report that Greek officials were considering pulling out of the joint Eurozone/IMF rescue package. Greek bond yields spiked to 7.1%, a full 4% above German bond yields. The euro fell sharply. The pound also fell on fears of a hung parliament.
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