Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news that the financial market reaction to the Christchurch earthquake has been relatively muted.
The New Zealand dollar dipped slightly on Monday before recovering to be around 72.2 USc in early trade. Wholesale market interest rates also rose a few pips, but nothing to suggest any great concern.
Economists see an initial dip in New Zealand's GDP growth through late 2010 before a rebound in 2011 as construction and repair spending flows through into the national accounts.
Standard and Poor's said yesterday that New Zealand's AA+ credit rating would be unaffected by the Earthquake because the government, the Earthquake Commission and the insurers had the capacity to absorb the hit. However, it put the more indebted Christchurch City Council on Negative Watch for potential downgrade.
The NZX actually rose on Monday with Fletcher Building and Steel and Tube shares rising, while Tower shares fell.
Meanwhile, the Prime Minister John Key also reassured the bond markets that the Earthquake Commission would not need to liquidate or sell its bond holdings.
He also estimated the net cost of the finance company failures at NZ$300 million to NZ$400 million because of the NZ$500 million of fees that the big four banks have paid in.
However, the impact of the quake on small businesses looks to be substantial, with many set to suffer cashflow issues as shops and businesses remain closed.