Bernard Hickey details the key news overnight in 90 seconds at 9 am in association with BNZ, including news that Telecom has confirmed it is looking at structural separation. This would involve splitting off Telecom's Chorus network division so Telecom can get involved in the government's broadband plan.
This would also break Telecom's integrated monopoly and could damage its earnings outlook. Standard and Poor's downgraded its outlook on Telecom's debt last night. Telecom shares, which are among the most widely held by retail investors, fell to close at NZ$1.96 each, having hit a low of NZ$1.92 earlier in the day, although it did go ex a dividend of 6 cents a share.
Meanwhile, a ShapeNZ poll of voters found around half supported the Budget and 48% of voters who were landlords planned to put up rents after the changes to the way depreciation of rental property is taxed.
In Wellington, the City Council is in urgent talks to come up with a rescue package for the Wellington Phoenix soccer club on fears the financial problems of owner Terry Serepisos could spark a player exodus. A deal is likely within days, the Dominion Post reports.
Meanwhile in China, there is renewed talk that China will allow its yuan currency to float versus the US dollar, which would be good for our exporters and remove some of the tension in global trade, the BBC reported.
Finally, the Dow fell sharply again overnight on fears the European Sovereign Debt crisis could spread and cause a double dip recession in the global economy.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.