Here's my summary of the key news overnight in 90 seconds at 9 am, including news China's banks are scaring its regulators.
In an unusually frank assessment, China's top financial regulator is now warning that banks don't properly serve the country's real economy, and the financial system has become so complex that risks are falling through the gaps in the regulatory system.
They will be unique if they do anything about it though. And worries are easing lifting in the rest of the world.
Manufacturing data out for the eurozone overnight was pretty positive. Spanish, British and Italian factories are all growing, with new orders being particularly buoyant. China and the US reported similar gains last week.
Worldwide, commodities beat bonds, stocks and the US dollar for a third month, the longest winning streak in two years. There was a jump in the copper price yesterday in Shanghai. Today, Brent crude is at US$114/barrel, US WTI is at US$107/barrel.
The Aussies are feeling upbeat too, ahead of Saturday's election. There are expectations of a post-election market bounce, and that the good earnings reports will continue.
We get the ANZ commodity price index later today, and the next globaldairytrade auction results will be available this time tomorrow. Soft commodities are doing well too, continuing the gains we saw in yesterday's Q2 terms of trade index.
All this 'good' news means we are spending. In data out overnight, we bought more new cars, the highest August sales figures in eight years. SUVs are selling particularly well. Commercial vehicle sales were also up strongly according to the latest NZTA registration data.
The NZ dollar starts today up almost 1c on where it was at this time yesterday at 78.1 USc, 87.0 AUc, and the TWI is 74.1.
Stay up with all of today's data releases here »
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Who's doing the talking on Syria
http://www.theguardian.com/commentisfree/2012/jul/12/syrian-opposition-doing-the-talking
The Govt has approved a plan to re-enter the Pike River Mine. Here's the statement from Simon Bridges:
The Government has approved conditional funding of a staged plan to re-enter and explore the main tunnel leading up to the rock fall at the Pike River Coal Mine, Energy and Resources Minister Simon Bridges has announced.
The decision follows approval in principle of the re-entry plan risk assessment by the Solid Energy Board.
Mr Bridges said the Government will fund the estimated cost of the plan, at $7.2 million.
“Our criteria are that any re-entry into the tunnel up to the rock fall is safe, technically feasible and financially credible. Safety is paramount, and the High Hazards Unit of the Ministry of Business, Innovation and Employment has reviewed the plan and is comfortable with it,” said Mr Bridges.
“This is a highly complex and technical operation and it will be carefully managed in stages, with a risk assessment undertaken at each stage. Ensuring the safety of workers is an absolute bottom line for the Government and Solid Energy.”
Mr Bridges said the scope of the operation did not include entry into the main mine workings which is blocked by the rock fall.
“The Government cannot comment or speculate about re-entering the main mine until the tunnel re-entry has been successfully achieved,” Mr Bridges said.
Questions and Answers
What are the stages of the re-entry plan?
A risk assessment will be undertaken at the end of each stage, before proceeding to the next stage.
After the first stage of sealing the ventilation shaft is completed, the Solid Energy Board also intends to carry out a risk-based approach for its approval for the remainder of the re-entry plan.
Stage One
1. Plug the top 50-60m of the 100m deep ventilation shaft to ensure full control of the mine atmosphere. Constructing an effective plug will require the placement of up to 700 cubic metres of concrete and other material.
Stage Two
2. Drill new boreholes into the top of the main tunnel
3. Use a camera to check tunnel in area where a second plug will be placed
4. Place expanding foam seal known as ROCSIL into the tunnel via a borehole from the surface. This will form a plug at approximately 2.3km into the mine, and about 40m on the portal (eastern) side of the rock fall that prevents entry into the main mine workings.
5. Pump inert nitrogen into the tunnel area between the ROCSIL plug and the rock fall, which will prevent fresh air from reaching the inner mine. This will remove the risk of any fires re-igniting in the mine.
6. Ventilate main tunnel from the portal up to ROCSIL plug
Stage Three
7. Once the tunnel is ventilated, trained mines rescue personnel will enter and explore the tunnel. Police will review information that comes out of the mine.
Why is the decision to fund the re-entry conditional?
The three conditions for any re-entry into the tunnel up to the rock fall are that it will be safe, technically feasible and financially credible throughout the process.
The work will be subject to continuous review by all parties as it progresses. This is to ensure safety requirements are met and risk assessments throughout the project remain acceptable.
Will the plan change at all throughout the process?
Small variations to the current plan may also be needed depending on the success of each stage of the operation. Any major changes would require all the parties to again reassess the three conditions.
When will the work begin and how long will it take?
The work is weather dependant and it is hoped it will start in October. The duration of the work will depend on how each stage proceeds.
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