Here's my summary of the key news overnight in 90 seconds at 9 am, including news that European governments have set up a full-time €500 billion (NZ$800 billion) fund to aid debt-swamped countries and, not for the first time in the three-year crisis, expressed confidence that the extra financial muscle won’t be needed anytime soon.
Euro zone finance ministers have delivered a united defence of Spain, saying the country was taking steps to overhaul its economy, funding itself successfully in the financial markets and did not need a bailout, at least for now.
And in a case of either cool bravery, or thoughtless arrogance, Angela Merkel is about to visit Athens to hammer home the German insistance for the austerity program, and she will be guarded by Greek police who are preparing a huge security operation involving 7,000 officers, water cannon and a helicopter to protect German chancellor. Expect an unfriendly Greek welcome.
It is the Columbus Day public holiday in the US and many markets there are closed or on skeleton staff.
Meanwhile, the World Bank says East Asian economies will be growing slower than expected this year, but acceleration may take hold next year. They say there was a risk the slowdown in China could worsen and last longer than many analysts have forecast. But in a separate report, there is news that house prices in China are rising again and September is the fourth month in a row that this has happened, even though the rise was modest.
The NZ$ starts today at 82.1 USc and just over 73.3 on the TWI, a rise of a half percent from yesterday.
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