Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with Bank of New Zealand, including news from the Labour Opposition that it would introduce a 12.5% tax credit for spending on research and development if elected.
The tax break would cost NZ$160 million a year or NZ$800 million over five years. Labour has proposed paying for it by bringing farmers into the Emissions Trading Scheme by 2013, instead of the 2015 planned by National. That would generate an extra NZ$800 million in tax revenues.
See Alex Tarrant's article for more details.
Meanwhile, concerns are growing again about the European Sovereign Debt crisis after Fitch downgraded Greece's rating by three more notches to B+, putting it four notches below investment grade and well into the junk territory. Fitch said a 'voluntary maturity extension' on Greece's debt, sometimes called a 'soft restructure', would amount to a default.
Meanwhile, Standard and Poor's has warned Italy it may downgrade its credit rating because of its high debt levels. See more here at Reuters.
Elsewhere, Spain's main cities remain paralysed by sit-down protests by families and young people protesting at Spain's economic crisis and 20% plus unemployment rate. Regional election results from the weekend are due today and the ruling Socialist Party is expected to suffer heavy losses.
Meanwhile, in another sign that record low interest rates are pumping up values in riskier debt-funded assets, Jimmy Choo Shoes has been sold for over 500 million pounds to luxury brands operation called Labelux. The price was more than three times net sales.
Jimmy Choo Shoes were made famous in the Sex and City series. Carrie was a big fan of the strappy, high heeled shoes that sold for hundreds of dollars each. Jimmy Choo is profiting as the well heeled global elite spend their increasing riches on such baubles. It's a bauble bubble.
The New Zealand dollar was firm over the weekend just under 80 USc.
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