90 seconds at 9 am: Disturbing Hubbard report; Irongate may default; Dow up on strong Alcoa result; NZ$ over 72 USc

90 seconds at 9 am: Disturbing Hubbard report; Irongate may default; Dow up on strong Alcoa result; NZ$ over 72 USc

Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with BNZ, including news that Allan Hubbard's statutory managers Grant Thornton have issued their first report for investors in Aorangi Securities and it makes for disturbing reading.

The report tells of widespread related party lending to and from charitable trusts run by Hubbard, poor record-keeping and a lack of security for some loans. Other loans to farms associated with Hubbard rank behind loans from banks and investors have been warned not to expect interest payments soon. It also said investors may face losses on some of the loans, which were made on an interest free basis and are in default. See a fuller article on the report here.

Meanwhile Kevin Podmore, who ran the collapsed St Laurence group, has told investors in Irongate Property that it may not be able to repay NZ$30 million of bonds in July, the NZ Herald reported.

In overseas markets, the Dow rose 1.7% after global aluminium producer Alcoa produced earnings that were better than expected and upgraded its global growth forecasts.

The New Zealand dollar rose to 72 US c in line with the surge in global markets and expectations for global growth and commodity prices.

In China, stocks there fell sharply after property prices fell for the first time in 16 months and the authorities quashed speculation it was about to lift curbs on property developers and lending.

 

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.

1 Comments

Comment Filter

Highlight new comments in the last hr(s).

Good point. NZHerald missed it. So did I. My fault
 
cheers
Bernard