90 seconds at 9am: US GDP rebounds; Record US budget deficit; RBA rate hike due

Watch on our video page here. Watch video on YouTube here. Bernard Hickey details the key news over the long weekend in 90 seconds at 9am in association with the BNZ, including news that US GDP rose a stronger than expected 5.7% on an annualised basis in the December quarter, largely because of a rebuilding of stocks, rather than product actually sold. The Dow fell on concerns about sustainability of the growth. Meanwhile, Barack Obama announced plans overnight for a record US$1.6 trln budget deficit (10% of GDP) this year, which he forecasts will drop to 4.2% of GDP by 2013, largely funded by taxes on the rich. However, US debt to GDP is expected to rise from 53% to 77% by 2020, taking it close to the area seen as dangerously high. Meanwhile, the Reserve Bank of Australia is expected to hike the official cash rate there by 0.25% to 4% later this afternoon. This opens up the gap between NZ on 2.5% and Australia on 4% to 1.5%, the biggest deficit seen since the introduction of the OCR in New Zealand in 1999. Meanwhile New Zealand will report jobs figures on Thursday that expected to show the jobless rate up to 6.8% from 6.5%.