Here's my summary of the key overnight news in 90 seconds at 9 am, including news we are heading into a week of potentially big shocks.
News there there would be a short-term deal on US debt-ceiling impasse proved premature. Talks have collapsed in Washington and it looks like the US is headed into trouble, even though good tax receipts have pushed back the date slightly.
The issue is turning now on the President's unwillingness to compromise as delays are being blamed on the Republicans and are raising his polling at the expense of his opponents. Late efforts continue.
The World Bank is warning that the US is '5 days away from a very dangerous moment'. Bankers are worried.
In Europe, the ECB is about to reveal the 'true scale of potential losses' at some of their biggest banks. Regulators are meeting in Luxembourg to try and figure out how to deal with the shortfalls.
To get a handle on the scale of the problem, the IMF has said that just for Spain and Italy, it is a US$300 billion problem. Europe wide, the size of the issue may become clearer later this week.
On a slightly better note, even one of the largest global banks could be taken apart safely by US government authorities if it were to fail today, according to the US's FDIC banking regulator.
China’s exports unexpectedly fell in September, signaling the constraints of global demand on the nation’s recovery and highlighting distortions caused by fake invoices that have yet to be eliminated from trade data. Imports, however, rose strongly.
The Dow rose at the close on Friday in New York, oil fell to under US$ 102/barrel, UST 10 yrs hovered just below 2.7%, and gold fell to just US$1,273 per ounce, US$13 below the London close, and in New Zealand dollars, it is now at its lowest level in nearly 4 years, since January 22, 2010.
The NZ dollar starts today up slightly at 83.1 USc, 87.7 AUc, and the TWI is at 77.2.
The easiest place to stay up with today's event risk is by following our Economic Calendar here »
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