Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including details from the US Federal Reserve about its plans for a second round of Quantitative Easing or QE II has it has become known.
The Fed released minutes from the September 21 FOMC (Federal Open Markets Committee) meeting which showed the Fed was set to buy bonds before long and that it was considering a target for nominal GDP to boost inflation expectations and the economy.
Global markets are transfixed by the prospects of a fresh round of money printing by the US Federal Reserve, which is sparking competitive devaluations and moves to control capital flows and currencies in what some are calling 'Currency Wars'.
Meanwhile, AMP Capital has suggested at a briefing in Wellington that the New Zealand dollar could eventually hit parity with the US dollar as commodity currencies such as ours face high demand from developed and other economies engaged in competitive devaluations.
Back in America, concerns are growing about the impact of the 'Robo-signer' foreclosure crisis on the banking sector there and the economy more widely. Many banks have halted foreclosures because of concerns their paperwork on mortgages and titles is fundamentally flawed.
Overnight the White House rejected calls for a nationwide moratorium, while others see losses of US$2 billion a month for the banks while foreclosures are stalled.
Others see the US housing and economic recovery stalled while such a large 'shadow inventory' of unsold houses hangs over the market.
Meanwhile in Australia, closely watched housing forecaster BIS Shrapnel has forecast a strong economy and a lack of new housing supply could see house prices there rise 9% to 20% over the next year years.