Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news the New Zealand dollar is up near record highs in morning trade as global financial markets rally on relief the Greek Financial crisis has stabilised for now.
The New Zealand dollar hit a record high 83.18 USc yesterday around 3pm and was around 82.8 US in morning trade.
The New Zealand dollar is seen as a commodity-linked currency that often strengthens when investors are keen to take 'riskier' bets on more volatile assets. This is described as the 'risk on' trade and the New Zealand, Australian and Canadian dollars often benefit when the risk trade is 'on' because they are linked to volatile commodity prices.
Markets rallied after the Greek parliament voted again overnight in favour of an austerity plan that ensures another tranche of the current bailout plan is paid, preventing a Greek default for a few months at least. See more on the second Greek vote here at BBC.
See more here at Bloomberg on the relief rally on global markets.
Also, German banks have agreed to a debt rollover plan that has also been agreed by French banks. See more here at NYTimes.
But the crisis is far from over. European finance ministers will meet on Sunday to discuss a second bailout plan and ratings agencies have to agree that the bank debt rollover plans do not constitute a default.
Meanwhile, today is July 1. This is the first day of the new financial regulatory regime policed by the Financial Markets Authority.
Also, new tougher capital rules kick in for rural lending that are estimated by the Reserve Bank to possibly add around 16 basis points to borrowing costs for farmers.
And today is the first day for many reinsurance programmes. AMI managed to get its reinsurance in place less than 12 hours before its old one expired, but Port of Lyttelton will struggle to get new catastrophe cover before its current cover expires at 4pm today. See more here at Stuff on the Port of Lyttelton.
Also, today is the first day without Quantitative Easing in the United States. The Federal Reserve's second programme of money printing to buy long term bonds expired yesterday. See more here at Reuters on the end of QEII.
In late breaking news, US Treasury Secretary Tim Geithner has signalled he will step down after Congress increases its debt limit. See more here at Bloomberg.
(Updated with links and Geithner news.)
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