90seconds @ 9am China Credit

I’m David Chaston with Ninety at nine, brought to you by interest.co.nz. This is where you get everything you need to know in 90 seconds at 9 o’clock, including news China is still struggling with its credit and liquidity systems. But first, fewer Americans filed claims for unemployment benefits last week, a sign their labour market continues to strengthen. This was the lowest claim level since the end of November. Another US region reported improved factory and business conditions, a closely-watched survey that came in much better than expected. And the latest (December) reading of the US inflation rate is that it ran at 1.5% in 2013. The rate picked up in December, rising 0.3% in the month. In China, their benchmark money-market rate rose by the most this month as the central bank refrained from adding funds even as demand rose. The PBoC didn’t issue 14-day reverse-repurchase agreements today, the second week it hasn’t injected any money, according to data compiled by Bloomberg. China is finding it tough to find the determination to reign in its credit markets. And, an analyst is claiming that HSBC may be overstating its assets by as much as US$92 billion and need to raise serious amounts of new capital. There was another central bank policy rate change overnight - Brazil raised its benchmark interest rate for the seventh straight time to 10.5% in a determined move to contain their highest inflation in more than ten years. In Australia, the number of unemployed increased in December, the participation rate decreased, and the December unemployment rate was 5.8%. 23,000 jobs were shed, making prospects a bit more gloomy, although their unemployment rate is still well below ours. Gold is still hovering around US$1,240/oz, benchmark US oil prices are down slightly on the day, but Brent prices are up. China is saying it will need almost 20% more imported natural gas in 2014. The NZ dollar starts today virtually unchanged at 83.4 USc, 94.6 AUc and getting quite close to the all-time high, and the TWI is at 79.1. I’m David Chaston, and that was 90 at nine, brought to you by interest.co.nz. Its good to be back.