Here's my summary of the key news overnight in 90 seconds at 9 am, including news of some big global events brewing.
Americans may winding down to an extended holiday weekend, but there are crises brewing worldwide, despite some good local jobs news. The American summer 'driving season' has started.
Firstly in Egypt. The latest news is that the army has been deployed, Morsi is gone, and the country is to have an interim technocrat government. This affects the rest of the world economically via the Suez Canal and the oil price. Oil has risen sharply and is up over 2%.
US benchmark prices are over US$100/barrel and Brent is over US$105/barrel. Low American inventories are accentuating the rises, although there are market suggestions that the military takeover in Egypt may not hurt prices further. At our pumps, petrol is now at its highest level ever, rising seven cents this week, although half of that was a local tax increase. But higher pump prices are expected.
In Portugal, borrowing costs have risen sharply and stocks have fallen amid growing concern over the political crisis in the country. The finance minister resigned recently, followed by the foreign minister and others are expected to follow. There are elections due and the departing politicians were key to the country meeting its bailout obligations.
There are now serious doubts about Portugal's ability to deliver the fiscal reforms necessary under the terms of its troika bailout. Portugal can't survive higher debt costs.
In Australia, their currency is falling fast this morning. Aussies will be waking to their currency at its lowest level against the US dollar in almost three years.
Against the Kiwi, we are now over 86 AUc and that is our highest against the Aussie since November 2008. Active RBA statements by Glenn Steven is raising expectations of more rate cuts, and a push to lower the currency value.
And finally in China, investors are bailing out of China's markets as fears grow over their slowing economy and as Beijing discourages ideas that it might try to juice it back up. The amounts of money involved in these outflows has grown to be a significant drag.
The NZ dollar starts today at 77.7 USc, 86.0 AUc, and the TWI is at 74.0.
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