David Chaston details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news that there has been another big private equity failure with REDGroup Retail calling in administrators for their Whitcoulls / Borders / A+R book chain that has a major presence on both sides of the Tasman.
Debt and leverage is a tough master, even with historically low interest rates. It joins a long line of failures of the private equity model, which have left plenty of collateral damage.
Overseas, US Treasury bonds rose, sending the 10-year yield to an almost two-week low, as growing political protests in the Middle East stoked demand for less risky assets. Gold gained for a fourth day, oil climbed and U.S. stocks advanced.
In Britain, a BofE official has called for the raising of interest rates to raise the Pound and tame inflation.
In the US, inflation was fairly modest in January, but it is not considered benign anymore. The Fed is facing a big conundrum with whether or not to start the tightening process at a time when housing and unemployment are still at depressed levels.
Although more than 4% of US housing is in foreclosure, delinquencies in the rest of their mortgages have fallen to their lowest level in nearly two years.
Back here, Mark Hotchin said ‘sorry’ for mistakes he had made, in a high-profile interview on Close Up last night, but he also said investor losses weren’t his fault.
And Vector’s Michael Stiassny has come out swinging against the tactics being used by Bernard Whimp, who is trying to enforce signed share transfers at below-market prices. Ignore him, says Stiassny.
Bernard Hickey returns on Monday.