90 seconds at 9am: Markets firm on Spanish, UK budget cut talk; Gold hits record high

Bernard Hickey details the key news overnight in 90 seconds at 9am in association with BNZ, including news that markets strengthened overnight on relief that European governments appear to be cutting back as they need to. US and European stocks rose after Spain and the UK indicated they would slash their budget deficits. A Portugese bond sale also went well, reassuring some of those worried that the European 'shock and awe' plan did not fix the underlying problems in Europe. However, the gold price surged to a record high of almost US$1,250/oz as many investors fear the money printing and borrowing happening in Europe and the United States will eventually devalue currencies. Meanwhile, back in New Zealand, Labour leader Phil Goff made an alternative budget speech proposing the removal of food and veges from the GST net. He also argued that the likely tax changes in the budget favoured the rich rather than the poor. He's focused on pie splits rather than growing the pie.