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.
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