90 seconds at 9am: NZ$ falls on Asian growth fear; Key wants full FTA
23rd Mar 10, 8:40am
Watch on our video page here Watch on YouTube here Bernard Hickey details the key news overnight in 90 seconds at 9am in association with BNZ, including news that pharmaceutical and healthcare stocks rose overnight in the United States after Barack Obama's historic healthcare reform bill was passed. Investors figure that more insured people will buy more drugs. However, the reforms will cost America an extra US$1 trillion it doesn't have. Meanwhile, John Key has said a free trade deal with America that doesn't include Agriculture would be 'unacceptable' and he hopes to talk to Barack Obama about next month. This follows talk from US senators that dairy could be excluded. Meanwhile, the New Zealand dollar fell to 70.4 USc overnight as commodity prices fell on fears of a slowdown in China and India. A surprise rate hike India is fueled these fears. There are also fresh nerves in Europe as it is becoming clearer that Germany will not tolerate a European Union bailout of Greece. German has said Greece should approach the IMF instead for assistance. A big meeting is planned for later this week. If Greece were to default or ask for IMF help. this could trigger more financial turmoil in Europe and weaken demand for commodities further.