90 seconds at 9am: Markets firm on Spanish, UK budget cut talk; Gold hits record high

90 seconds at 9am: Markets firm on Spanish, UK budget cut talk; Gold hits record high
Bernard Hickey details the key news overnight in 90 seconds at 9am in association with BNZ, including news that markets strengthened overnight on relief that European governments appear to be cutting back as they need to. US and European stocks rose after Spain and the UK indicated they would slash their budget deficits. A Portugese bond sale also went well, reassuring some of those worried that the European 'shock and awe' plan did not fix the underlying problems in Europe. However, the gold price surged to a record high of almost US$1,250/oz as many investors fear the money printing and borrowing happening in Europe and the United States will eventually devalue currencies. Meanwhile, back in New Zealand, Labour leader Phil Goff made an alternative budget speech proposing the removal of food and veges from the GST net. He also argued that the likely tax changes in the budget favoured the rich rather than the poor. He's focused on pie splits rather than growing the pie.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

Your access to our unique content is free - always has been. But ad revenues are diving so we need your direct support.

Become a supporter

Thanks, I'm already a supporter.