90 seconds at 9 am: RBA cuts, Soros profits; AU to scrap some tax cuts on carbon price collapse; banks, miners and energy push Dow higher; NZ$1 = US$0.845 TWI = 78.2

Here's my summary of the key news overnight in 90 seconds at 9 am, including news that somewhat against expectations, the Reserve Bank of Australia has cut its benchmark interest rate.

But it was not a surprise to hedge fund guru George Soros who is reported to have made A$60 mil on his position - after only being in the market three days.

The RBA is now expected to continue cutting in 2013 as weaknesses build up in the Aussie economy. Aussie banks immediately passed on the full cut to its borrowing customers.

The Government there is expected to scrap its carbon price tax cuts along with many related programs as the EU carbon price system it was based on breaks down.

In Europe, Portugal’s first sale of 10-year bonds since its bailout in 2011 attracted demand for more than three times the amount the government was seeking to raise.

The British bank HSBC said first-quarter earnings almost doubled, to US$8.43 billion, after the firm benefited from reduced costs and a decline in bad debts.

Better than expected profit results from banks in Europe and the US have propelled stock markets higher, many key ones into record territory. But the improvements weren't only for banks; Caterpillar in the US surged ahead also helped by gains in the energy sector, and German industrial orders came in higher than expected.

Here are current 3 month bank TD rates compared: US 0.23%; EU 0.10%; UK 0.48%; JP 0.11%; Switzerland -0.03%; Canada 1.13%; AU 2.89%; NZ 2.71%.

The NZ dollar fell in sympathy with the Aussie on the rate cut news, although it has gained back some of the decline overnight. It starts today at 84.5 USc, 83.1 AUc and our TWI now stands at 78.2.