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A review of the things you need to know before you go home on Thursday; Aussie jobs shrinking, their currency tanks; Truckometer moderates; swaps fall; milk volumes up

Posted in News
For Thursday, January 16, 2014. Image sourced from Shutterstock.com

Here are the key things you need to know before you leave work today.

Firstly, the number of Australian unemployed increased by 8,000 in December, the participation rate decreased, and the December unemployment rate was 5.8%. 23,000 jobs were shed, making things a bit more gloomy.

This saw the Aussie sell off sharply, and the Kiwi rose almost a whole cent to 94.4 AUc to the NZD. We are now at out highest rate against the Aussie since December 2005, an eight year high, and now close to the all-time high of 95.5c.

ANZ's 'Truckometer' monitoring, which tracks heavy and light truck kms travelled, showed a slowing of growth from the very fast pace of the last quarter in 2013. The moderation was expected because that hot pace was unlikely to be maintained, says ANZ. The Heavy Truck component is interesting because it has a great record of predicting GDP.

Swap rates have fallen about 3 bps across all terms over the day.

The dairy industry has updated its mik volume stats to the end of November and they show a continuing increase over last year. It was the best November volume on record. But year-to-date volumes are not back yet to pre-drought levels.

Kiwibank business banking has today launched a term deposit offer for businesses. It's launch special targets a 100 day offer of 3.95%, and businesses can use it up to $5 million. The only other bank with a business-focused TD offer is RaboDirect, who also have a $5 mln limit. (RaboDirect's 3 month rate is 3.25% and their top rate is 4.30% for 18 mths.)

In addition, Credit Union South had some action in its TD offer. It added a new 18 mth rate.

Bill English is off to hob-nob with the rich and famous at Davos in Switzerland.

And the Telstra sale of its directories business in Australia has exposed the valuations at Yellow NZ - their bank shareholders may be in for further big writedowns.

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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12 Comments

Going to custard in Australia

Going to custard in Australia ?
 
Dollar hits 3.5 year low on unemployment data | | MacroBusiness
 
Australian jobs shocker in detail | | MacroBusiness
 
... and do read the rest of the stuff on MacroBusiness Au today as well.
 
Hugh Pavletich

Beware , when Australia

Beware , when Australia sneezes , New Zealand catches a cold .
Lets not gloat over the problems in Australia , their problems could wash up here in NZ quite easily  given we are almost the 8th state in the commonwealth.  
Aussie is a robust economy , and its humungous when compared to ours, and we are much closer in our dependance on them and their markets than most people realise  .
Aussie remains our biggest trading partner , and our economy is smaller than Tasmania.
Lets wish them a speedy recovery

You are wrong. New Zealand's

You are wrong. New Zealand's biggest trading partner is now China.
 
New Zealand's economy (211 billion NZD - GDP 2013) is an order of magnitude larger than Tasmania's (24 billion AUD - 2013).

hane, we might as well start

hane, we might as well start trading directly with China in chinese Yuan or the RMB. Saves the margin on the exchange conversion from NZD to USD to RMB and then from RMB to USD to NZD.

And it’s how China impacts on

And it’s how China impacts on Australia and New Zealand going forward.
 
Excellent discussion here on MacroBusiness Au yesterday …
 
Michael Pettis maintains bearish call on China | | MacroBusiness
 
http://www.macrobusiness.com.au/2014/01/michael-pettis-maintains-bearish-view-on-china/
 
I was particularly impressed with the article (hyperlink on thread above) on New Zealand from the World Socialist website by a Tom Peters. Who is Tom Peters ?
 
Hugh Pavletich

HG, I have been reading about

HG, I have been reading about the same bearish calls on China for the past 30 years. A transfer of wealth from West to East has been engineered by the chinese as a result of this sort of apathy. There is a currency war out there and China is winning the war engineering a transfer of  wealth. Sure, they will start to slow down after they have taken everything we have.

China: The Disconnect Between

China: The Disconnect Between Residential Unit Prices and Incomes …
 
With China Awash in Money, Leaders Start to Weigh Raising the Floodgates - NYTimes.com
 
http://www.nytimes.com/2014/01/16/business/international/china-dwarfs-us-in-monetary-stimulus.html?_r=0
 
It is heartening to see media people reporting structural facts on China’s housing market … in particularly residential unit prices and the incomes of those buying them. Or attempting to buy them.
 
Well done to the New York Times journalists !
 
Compare these figures with what young Londoners paid during the Depression years, young Americans after WW11 … and today, what it costs on a per square metre basis (convert from square feet …divide by 10.764) in Houston, Texas (and most of middle North America … see Demographia Survey below) … as outlined within …
 
China: Big Bubble Trouble | Hugh Pavletich  Scoop News
 
http://www.scoop.co.nz/stories/WO1401/S00034/china-big-bubble-trouble.htm
 
Hugh Pavletich

Dallas Federal Reserve on

Time to Synch our currency to

Time to Synch our currency to the Aussie Dollar don't you think ? As soon as it hits NZ $1.00=AUD$1:00 we should swap currency. Would be better for us in the long run to become another state of Aussie, shame the Kiwi pride won't let that happen.

Can we get two states - North

Can we get two states - North NZ and South NZ?

 Huh , no chance

 Huh , no chance cobberdiggermate ! .... we'll take charge for a change of pace , and the combined nation of New Zealia will consist of three states ...
 
.... the exisitng North and South Islands of NZ , and the newly annointed West Island ( formerly known as Australia ) ....