90 at 9: Double dip fears hit Dow; Japan GDP up; GST rise suggested

Bernard Hickey details the key news overnight in 90 seconds at 9am in association with ASB, including renewed fears of a double dip recession in the global economy as US consumers continue to keep their wallets shut and consumer confidence wanes.

The Dow fell 2% and the Shanghai Index fell 5.8%. The Nikkei fell 3%.The result from home improvement chain Lowes was very poor and 'back to school' sales were weak Investors are worried that US consumers, who were the engine room of global growth, have gone into their shells for an awful long time. They are now saving instead.

Meanwhile Japan's economy grew for the first time in over a year. GDP rose 0.9% in the June qtr.

Meanwhile back in NZ, a briefing paper to the Tax Working Group has suggested increasing GST and offsetting it with lower income tax rates and compensation for the poor

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