Gareth Vaughan details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand.
Rod Petricevic, the former managing director of failed property financier Bridgecorp, has been denied taxpayer funded legal aid but has been given time to decide whether to appeal the decision.
Petricevic and Bridgecorp’s former finance director Rob Roest are facing criminal charges brought by the Serious Fraud Office after Bridgecorp collapsed in July 2007 owing over 14,000 investors NZ$459 million. The company’s receivers estimate investors’ are likely to get back less than 10 cents in the dollar.
Petricevic, who authorities believe has money in a family trust, can apply to the Legal Aid Review Panel for a review of the decision not to grant him legal aid.
Meanwhile, Australian companies may lose more than half a billion dollars in earnings this financial year following the floods in Queensland and Victoria. The hardest hit sectors are expected to include insurance, transport, engineering and mining.
The Australian newspaper reports that analysts estimate the total cost to corporate earnings has already reached A$431.3 million.
And Goldman Sachs estimates the Queensland floods could place about A$5 billion worth of mortgages and commercial loans at risk of default. Goldman says there could be defaults on 16,500 home loans, or A$4.1 billion worth, in Queensland's southeast. It also estimates 2,950 commercial loans, worth A$737 million, might default. There are also estimates that property prices in Brisbane's riverside suburbs could slump by up to 50% after the floods.
Global stocks have risen to a two year high with the euro gaining and German bonds falling after European finance ministers pledged to strengthen the safety net for heavily indebted countries. Euro-area finance ministers are mulling ways to give their 750 billion euro rescue fund more flexibility and haven’t ruled out boosting its size.
In the United States the S&P 500 index traded near its highest level since August 2008 following seven straight weeks of gains, its longest rally in almost four years.
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