Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news the Bank of England has resumed printing money earlier than expected as the Governor Mervyn King warned the global financial system faced its greatest crisis since the 1930s, if not ever.
The Bank of England announced overnight it would print 75 billion pounds and use the money to buy bonds, extending a quantitative easing programme that has already printed 200 billion pounds of cash to buy bonds.
King said inflation was likely to drop away from its relatively high levels currently, and that action was needed to offset the effects of a government austerity programme and the stresses in credit markets. See more here at The Guardian.
Meanwhile, the European Central Bank left its interest rates on hold, but also said it would offer European banks unlimited cash in 1 year loans until January 2013 to ease some of the funding pressures inside the European banking system. Some had hoped it would cut rates too.
It also announced plans to buy 40 billion euros of covered bonds, which are the basis of much housing lending in continental Europe. See more here on the European bank moves at Bloomberg.
Westpac and BNZ have also begun selling covered bonds over New Zealand mortgages into the European covered bond markets, while ASB and ANZ also have plans to do the same.
European politicians also talked more about a coordinated programme to recapitalise Europe's banks, responding to calls from the IMF and the United States to urgently address concerns that the losses in the European sovereign debt crisis would wipe much of the capital in some French and German banks. See more here at Reuters on the coordinated bank rescue talk.
Stocks and commodity prices rallied globally on hopes the fresh money printing and signs of European political action to deal with the European debt crisis might help avoid catastrophe inside Europe's banking system and stave off a global economic recession, or worse.
The Hang Seng, which is seen as one of the most volatile of the large markets, rose 5.7%. The FTSE 100 rose 3.7%, Germany's DAX rose 3.7% and the Dow was up 1.1% in the last hour of trade. See more here on the global markets rally at Bloomberg.
Apple's share price rose 1.7% in overnight trade after the news of the death of former CEO Steve Jobs. Its shares have risen 7% in the month after Jobs resignation.
Commodity prices have rebounded 5% in the last two days on hopes a global downturn may be avoided.
The New Zealand dollar also rose over 77 USc. It often rises and falls with hopes and fears for the global economy and commodity prices.
Finally, Go the All Blacks vs Argentina! Colin Slade is at first five, Piri Weepu is at halfback, Mils Muliaina is at fullback because Israel Dagg has a sore thigh and Sonny Bill Williams will play on the wing because Richard Kahui has an injured hamstring. See more here at NZHerald.
(Updated with key news on All Black selections)
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.