Bernard Hickey details the news in 90 seconds at 9 am in association with Bank of New Zealand, including expectations that the Reserve Bank of Australia will hike its cash rate by 25 basis points to 4.75% later today as the central bank grapples with inflation pressures from the biggest Australian mining boom in more than 100 years.
This would be good news for New Zealand exporters to Australia, given our currency is at a 10 year low vs the Australian dollar as expectations for our interest rates and economies diverge.
The Reserve Bank of New Zealand is expected to keep its Official Cash Rate on hold at 3% until well into next year, while Australia is expected to push its rate up to 5% by then.
Meanwhile, Fonterra is in talks to build a 40,000 cow dairy farm in India, Business Day reports. Fonterra would have a 30% stake in the venture.
Nervousness about Europe's financial situation returned overnight.
Swiss regulators are set to force Credit Suisse and UBS to raise more capital so they have 19% of their assets set aside in capital, which is almost double that required under the just-agreed Basel III global capital rules.
There's also a report from the New Economics Foundation that suggests the UK government will have to bail out its banks again next year and that the banks there are borrowing 25 billion pounds a month to survive. Britain's Chancellor of the Exchequer George Osborne has denied any bailout is immiment.
The Dow was down around 1%, but attention in America is focused on key jobs numbers due on Friday night and talk of Quantitative Easing.
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