90 seconds at 9am: Euro crisis deepens; 3 die in Athens riots; Bollard speech due at 10am
6th May 10, 8:45am
Bernard Hickey details the key news overnight in 90 seconds at 9am in association with the BNZ, including news the European sovereign debt crisis intensified overnight. Moody's warned it may downgrade Portugal's credit rating and Spain was forced to deny it was asking the IMF for a bailout package. Markets are transfixed by the fear of contagion in the wake of the Greek bailout package. They worry Portugal and Spain will be the next to fall because they are running very high budget deficits and high debts. Meanwhile there were riots overnight in Athens as protesters clashed with police and tried to invade the parliament and some banks. Three bank workers were killed when molotov cocktails were thrown into the branches. The euro fell and the NZ dollar was also weak versus the US dollar. A financial crisis in Europe could hit European demand for New Zealand exporters and push up interest rates globally. It is also likely to make the euro weaker versus the New Zealand dollar, making holidays to Europe cheaper and European imports cheaper. Reserve Bank Governor Alan Bollard is due to make a speech about the economy at 10am. Everyone is watching to see whether he confirms a rate hike is likely on June 10.