90 seconds at 9 am: AU faces huge deficits, only tax rises can fix; UK challenges EU-FTT; Italy re-elects President; US expands GDP definitions; NZ$1 = US$0.841, TWI = 77.9

90 seconds at 9 am: AU faces huge deficits, only tax rises can fix; UK challenges EU-FTT; Italy re-elects President; US expands GDP definitions; NZ$1 = US$0.841, TWI = 77.9

Here's my summary of the key news overnight in 90 seconds at 9 am, including news Australia may be facing a decade of deficits.

Australian Federal Treasurer Wayne Swan has warned that their budget will not return to surplus until tax collections recover from a strong dollar 'sledgehammer' that he said pushed revenues $7.5 billion below official forecasts for this financial year.

Analysts say the gap between spending and revenue is now so large it can be closed only by higher taxes, meaning the days of 'painless' budget fixes are over. In the firing line are increases for company tax and company tax concessions, personal income tax and GST.

The British government has launched a legal challenge at the European Court of Justice against plans for a European financial transactions tax. Others are saying it is a risk to global growth.

In Italy, the President was re-elected by lawmakers, but the profound government deadlock shows no sign of being resolved.

In the US, eyes are on Apple's latest profit results. But equally, Q1 GDP growth will get the focus later in the week. And the US stats bureau has announced that they will be revising how they calculate GDP starting later in the year - by for the first time including values of intellectual property, and including the liabilities for unfunded pension schemes. These changes are a big deal, but are not expected to alter US economic growth stats.

The Kiwi dollar starts today at 84.1 USc, 82.0 AUc, and our TWI is at 77.9.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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.


Comment Filter

Highlight new comments in the last hr(s).

IP in GDP? like waaaa?
make believe...

The U.S. expansion of GDP definitions to include intellectual property.....now there's a minefield for the RBNZ to ponder......living Treaties n all.
 Why gosh , if anything upsets the inflationary numbers here...we just....take it out..!
We got books, we got cooks, we got a new guy in there who's got some idea about  Maccaronieconomics..... he says, it's all in the Pasta anyway.

Don't worrk Count, it will all pan out.
To prolong the illusion, the desperation must ramp exponentially. Be interesting to see what else is added - survey of business/consumer 'comfidence' perchance?

A test for a Monday morning folks. Spot what's wrong with this - https://twitter.com/oneforthedr/status/326115079533785088/photo/1

Maybe nothing if Grant Roberton is now the Labour Leader with a minor change to his surname for showbiz purposes......and then of course there is the line ....the market is not competitive ...so they'll regulate it.....mmmmmm ah  er I dunno.
 If Shearer's been rolled already ...that's a big tweet..!

And Shearer was last heard saying John Key was speaking out of his mouth...

ooh ooh.....there is more...Under Labours plan there will be no repurchasing of assets (I take it ).....oooh what a giveaway...!!!!  are they sure that should have been in there..?

Get your Monday laughs!
"Last month, a poll of more than 3,000 French adults found that 68 per cent of them were depressed about the country’s future. And that was even before the Cahuzac scandal broke, in which a former budget minister given to winkling out the kind of slimy tax-dodgers who hide their wealth in secret Swiss bank accounts was forced to admit that he, ahem, had one too — but only after he had looked France squarely in the eye and lied and lied, long before the cock crowed thrice"
France is the Shearer/Norman model...want some!

Try opening at least one eye, Wolly.

Only one is needed when the scene is socialism...know your place Basel Brush lll...unsure?....ask Norman or Shearer...they have a place for you...all sorted....

aw come on wooly.... according to you..the Nats are corporate buglars....Labours a bunch of socialist homos...The Greens are Tree hugging Mothers of all before them....ACT...are the Nazi right of right Nats...United are a Christian zelot party with bad hair....NZ First are the butt of the aforementioned parties jokes in credibility terms...
 So what do you propose...? Silly McGilly..? what wooly ..? help a brother out here....what do you want to recomend the voter do to gain better Governance...?

The Wolly Party?

Imagine a Wolly polly.
A great successor to the present lot with a guaranteed cuppa with Jonkey and Banksy.

....and yet Wolly is right on all counts: prudentius est timere quam sperare. - it is more prudent to fear than to hope.

ErgoP...I am not arguing with wooly's observations on any number of topics you care to mention including Politics, I'm just asking him outright for a counter proposal to the options the voter has in front of them....
 I.e. as I have said before , any non vote for reasons of digust or indifference or apathy has usually proven to be a vote for the sitting Administration.
 You usualy get change with larger voter turnouts.

Sorry could not resist with a name like that.

Therefore...there was little reason for Martin Luther King to have got out of bed in the mornings.