90 seconds at 9 am: NZ mining backdown; Hypo test failure; Hungary vs IMF; BP's seepage;

 NZ mining backdown; Hypo test failure; Hungary vs IMF; BP's seepage

Bernard Hickey details the key news overnight in 90 seconds at 9 am in assocition with BNZ, including news the government is widely expected to later today announce a backdown on plans to allow mining in Schedule 4 National Parks, including Great Barrier Island, Paparoa National Park and Coromandel National Park.

NZHerald reported the government may extend mining elsewhere, but also that mining will be banned in all National Parks, including non-Schedule 4 land. This follows public protests. Your views?

Meanwhile, Moody's downgraded Ireland's sovereign credit rating overnight to Aa1 from Aa2, although it revised the outlook to stable. Ireland aggressively cut public spending earlier and deeper than other European countries. It also forced taxpayers to pay for massive bank bailouts and now its domestic economy is struggling to get going again. Ireland's borrowing costs, relative to German debt, are near record highs.

In Eastern Europe, Hungary's forint and its foreign debt were sold sharply lower after talks between Hungary and the IMF broke down. Hungary is trying to get some releif on tough spending restrictions. Hungary is shaping up as the new Greece and again unnerving markets worried about a European Financial meltdown.

Meanwhile in Germany, Bloomberg reported two unnamed sources saying Germany's Hypo Real Estate has failed stress tests that are due to be announced on Friday. 

However, the Dow was up in late trade, but this was before IBM missed expectations. The New Zealand dollar remained down around 70.5 USc.

Meanwhile in the United States, Reuters reported there are fears BP's cap on its oil leak may be forcing oil out elsewhere through cracks in the sea bed. BP's shares fell and there is talk of methane leaks also.