Bernard Hickey details the key news over the weekend in 90 seconds at 9 am in association with Bank of New Zealand, including talk this morning in Washington that Congressional leaders are 'very, very close' to a deal to lift America's debt ceiling.
Senate Republican leader Mitch McConnell told reporters negotiators were 'very very close' to a deal to cut US budget deficits by over US$3 trillion over a decade. But the deal would only involve spending cuts and include no tax increases.
Democrats have previously vetoed or blocked any deal that does not include tax increases or the removal of tax loopholes. See more here at Reuters.
A deal must be done and America's debt ceiling must be lifted by Wednesday morning New Zealand time or America risks defaulting on its debt.
Commentators said the deal under discussion may not be enough to keep America from losing its AAA credit rating.
Legislators are scrambling to get a deal done before Asian markets open. British and Japanese officials warned of financial disaster over the weekend if a deal could not be done.
American troops in Afghanistan have even been warned they may not be paid later this week, given interest payments and social security payments are thought to be prioritised.
The New Zealand dollar remains strong this morning up around record highs of 88 USc and 75 on the Trade Weighted Index.
Fears about the US dollar's status as the safest currency in the world are seeing investors go elsewhere for safe havens, including New Zealand, Australia, Canada and Switzerland.
See John Key's comments here on New Zealand's relative attractivness.
No chart with that title exists.
We welcome your comments below. If you are not already registered, please register to comment
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.