90 at 9, Oct 15, 2009: Dow above 10,000, but US$ weak; NZ budget outlook ugly

Bernard Hickey details the key news overnight in 90 seconds at 9am in association with ASB, including news the NZ dollar was firm overnight at 74.3 USc, but was down in morning trade. It was supported by positive sentiment on Wall St where the Dow rose over 10,000 for the first time in a year. Good results from Intel, JP Morgan and Alcoa reassured those who believe the global economy is recovering.

However, the US dollar remains very week and near one year lows and US Treasuries fell on more talk the US will expand its money printing again. There's also more talk that British authorities will print more money.

Meanwhile, NZ CPI is expected to rise 1.1% in the September quarter in figures due at 10.45am. The Reserve Bank will watch this closely for clues on when to lift the Official Cash Rate.

NZ government budget figures yesterday were very, very ugly. They show the worst situation since the early 1990s. Bill English will now have to deliver his own 'mother of all budgets'. Real reform of taxes and spending is needed to avoid deficits for ever.

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• 90 at 9
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• NZ$

[danbuck333]

higher taxes, lower standard of living

[caveltor]

Deficits forever, so what?

This is simply an accounting identity.

What does everyone suppose the real effects of deficits forever are?

[fluentread]

Knowledge [ oundation literacy i] s the foundation of wealth.Playing with money and greed won`t help.