Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news China's economy is still running too hot as newly minted US cash floods into the world's fastest growing region.
China's annual inflation rate hit 4.4% in October, above economists' forecasts for a 4% rate and up from 3.6% in September. China is seeing an influx of cash from the weaker US economy as investors hunt outside the United States for higher returns.
Meanwhile, China's factory output remained strong. China is having to tighten its lending requirements to try to stop its economy from overheating. China is blaming America for exporting inflation, while America is blaming China for keeping its currency too low. This is at the heart of a heated debate at the G20 summit of world leaders currently happening in Seoul.
Across the Tasman, Australia's unemployment rate rose surprisingly to 5.4% in October from 5% in September, causing some to doubt the likelihood of a December rate hike by the Reserve Bank of Australia. This boosted the New Zealand dollar vs the Australian dollar to 78.3Ac from 77.8Ac.
In Europe, concerns are growing about the Irish sovereign debt situation, where many fear Ireland's government will not be able to pay its bills from the middle of next year. It is expected now to have to ask for a bailout from its partners in Europe. Irish government bond yields blew out to record highs as investors worried about the government's finances. It is running a government deficit of more than 13% of GDP and has had to repeatedly bail out its banks.
Finally, the G20 meeting has dissolved into disputes between America and China about the global Currency Wars. China is blaming America for printing too much money and not fixing its own problems, while America is blaming China for keeping its currency too low and running up record trade surpluses.
A G20 communique is expected to be released later today, but most expect it to be toothless and fail to resolve the currency impasse.
US President Barack Obama and Chinese Premier Hu Jintao met for more than an hour last night and emerged without agreement.
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