Bernard Hickey details the key news overnight in 90 seconds at 9 am with BNZ, including news China's GDP growth slowed in the June quarter to 10.3% from 11.9% in the March quarter.
China's growth matters for New Zealand because it is now our second largest trading partner and our largest trading partner Australia now depends on Chinese growth for its growth.
Economists had expected Chinese growth of around 10.5% so this was weaker than expected. Chinese factory output grew slower than expected as well, helping drive Chinese stocks down 2% overnight.
Chinese steel output hit a 4 month low and China is now forecasting it will import less iron ore in the coming year than in the previous year. This would be first fall since 1998 and follows import growth last year of 43%. This is crucial news for the Australian economy, which supplies a lot of the iron ore and coal needed to fuel China's steel production, which is a key ingredient in China's property and infrastructure development.
Meanwhile in Washington, financial reforms have finalled passed through the US Congress, although they are a much watered down version of the initial plans to break up and control the big 6 'Too Big To Fail' banks. They remain intact and able to keep their proprietary trading desks that can speculate with government guaranteed money.
Meanwile in Timaru, support is growing for Allan Hubbard. The NZHerald reports that a 'Leave Allan Hubbard Alone' Facebook group now has 4,000 supporters and the campaign has printed bumper stickers that have been distributed in Britain.
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