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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"Ironbridge Capital’s broadcasting company, MediaWorks, is set to be placed into receivership on Monday after lenders led by Westpac Banking Corporation and RBS Group failed to strike a recapitalisation deal.
Ironbridge and its co-investors, who bought the business for $NZ800 million ($671.9 million) in 2007, have already lost all of its equity investment – about $NZ300 million – in the group."
http://www.afr.com/p/business/companies/mediaworks_to_be_placed_in_rece…
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.
David, you don't think the financial dislocation evident in all markets Asia will impact our economy in the least? - not to mention that our best friends are not recognisable anymore.
Actually...we get told a GDP figure..big difference yes!
How much of that 'growth' is in FACT just credit porked numbers?
I watched a great item on a bloke converting a mine pumphouse in Cornwall...you may have seen it...did you notice how he was able to avoid VAT on much of the job..legally!
That was a lesson for all Gen Y Kiwi.....but they were probably very busy texting rubbish to each other.
ANZ reportedly stated
“No-one has been dismissed, however appropriate disciplinary action has been taken with a small number of staff.”
On my behalf can someone at Interest.co.nz please ask ANZ how many staff usually perform this task? And how many staff are now taking the "retraining".
I have a feeling that radiates from my bones - If I owned a business that allowed employees to act in such a manner - I would be going straight to jail.
Read more: http://www.smh.com.au/business/banking-and-finance/anz-macquarie-rapped-in-singapore-rate-probe-20130615-2oaq0.html#ixzz2WQ06nsgz
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