90 seconds at 9am: China raises double dip fear; IMF debt warning; Dairy exclusion from US FTA?
22nd Mar 10, 8:48am
Watch on our video page here Watch on YouTube here Bernard Hickey details the key news in 90 seconds at 9am in association with the BNZ, including news China has hit back at the US push for China to let its currency float. A senior Chinese official has warned that US trade sanctions would stifle a global recovery and could cause a double dip recession. America is pushing China to drop its currency peg of 6.83 yuan to the US dollar. America wants to reduce its trade deficit with China and may declare China a 'currency manipulator' within a few weeks, which would give America a green light to impose trade sanctions. However, the US trade deficit has already halved and China is expected to report its own trade deficit in March for the first time since 2004. Some are now saying that China's yuan may not be undervalued any more. Meanwhile, the IMF has warned that developed economies are running budget deficits that are not sustainable. It says all the G7 countries except Germany and Canada will have debt to GDP ratios of over 100% by 2014. It says inflation, cutbacks or default are the options facing these countries. Meanwhile, 28 US senators have called for dairy to be excluded from any FTA with America. They say Fonterra is a monopolist. Watch on YouTube here