Here's our summary of the key news overnight in 90 seconds at 9 am, including news the New Zealand dollar is under US79 cents this morning and below A90 cents with the Trade Weighted Index at 76.63 after Reserve Bank Governor Graeme Wheeler’s surprise statement last Thursday afternoon.
Wheeler said the level of the Kiwi was unjustified and unsustainable and it was susceptible to a significant downward adjustment over the next six to nine months.
At about 3pm today we’ll get data showing whether the Reserve Bank intervened in the currency markets in late August to try and weaken the NZ dollar, as has been speculated.
In Hong Kong police have used tear gas and pepper spray, and baton charged pro-democracy protests after student and pro-democracy leaders launched a "new era" of civil disobedience to try and pressure China into granting full democracy.
The moves from activists are being seen as the most tenacious civil disobedience since Hong Kong returned to Chinese rule from British rule in 1997, and come after Beijing last month rejected demands for people to freely choose Hong Kong's next leader. There's live coverage from the South China Morning Post here.
News high-profile US investor Bill Gross had left Pimco shook the bond market on Friday. Pimco co-founder Gross, who managed the US$222 billion Pimco Total Return Fund, is joining Janus Capital Group to manage a US$13 million fund. The Wall Street Journal reported 70 year-old Gross departed Pimco after losing a showdown at the firm, and after he sent a scornful email to other top executives and was warned to tone down volatile behaviour that included yelling at co-workers. Gross co-founded Pimco in 1971.
It emerged last week that the Securities and Exchange Commission is investigating whether Pimco artificially boosted the returns of a popular fund aimed at small investors, with Gross having reportedly been interviewed by SEC investigators.
Also in the US on Friday there was news the economy expanded at a revised 4.6% annualised rate in the second quarter, its fastest growth since the final quarter of 2011 as companies boosted investment and households increased spending. The revision was up from 4.2%.
Britain’s first limits on banks’ mortgage lending in decades come into force this Wednesday as the Bank of England strives to take some heat out of the home loan market. Lenders will be prevented from allocating more than 15% of new residential mortgages to individuals borrowing four and a half times their income or greater.