Here's my summary of the key news overnight in 90 seconds at 9 am, including news one of our banks has been caught rate fixing.
ANZ and Macquarie have been implicated in an interest rate rigging scandal in Singapore, forcing each of them to set aside extra capital. We will have more detail on this in Top 10 later this morning.
In China, credit ratings agency Fitch says China's shadow banking system is out of control and under mounting stress as borrowers struggle to roll over short-term debts. This is China's own 'finance company' crisis.
On top of that, markets have been surprised that the Chinese government has failed to sell all the debt it offered. China may be at its limits to credit growth; and that could make for a bumpy ride in the near future.
Staying in China, there are signs it is getting serious about curbing pollution. It has ordered firms in heavy-polluting industries to cut emissions by 30% in the next four years. But enforcement will be the key.
This week we get to learn our first quarter GDP growth rate and the size of our current account deficit. There seems little doubt however that second quarter growth will be higher, especially after the stunning rise in manufacturers' outlook in the PMI results for May announced on Friday.
The NZ dollar starts the week at 80.4 USc, 84.1 AUc, and the TWI is at 74.4.
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