Here are the key things you need to know before you leave work today.
DAIRY PRICES IN BIG DROP
The latest GlobalDairyTrade auction saw a continuation of market price drops, down more than 9% today from the last auction two weeks ago in NZ dollars and down more than 22.6% from the same time a year ago.
COMMODITY PRICES UNCHANGED
The ANZ commodity price index was unchanged from February in world currency terms, down in NZ dollars, with dairy down sharply but rises in other commodities, especially meat, skins and wool which is at its highest level in over two years.
HOUSING APPROVALS
The number of approvals was lower last week than the week before but the value was up. At $187,700 the average loan approval was at its highest level since September 2013.
MORTGAGE RATES RISE - EXCEPT ...
ANZ, Co-op Bank, Heretaunga, Medical Securities, SBS/HBS all made mortgage rate increases today. However, ANZ launched a 2 year fighting special at 5.95%, matching BNZ and Westpac at that term.
LGFA DEMAND UNDERWHELMS
Tender #19 was held today and they had bid coverage overall of 2.5 times. One portion only barely got away.
HUGE OIL & GAS TENDER AREA
The Government has released 405,000 square kilometres for oil and gas tendering in 2014. The dry land mass of New Zealand is only 268,680 square kilometers.
AVOCADOS ARE GO
The Government is pumping $4.3 million into a PGP for the avocado industry, matching $4.3 million of industry funds. The goal is to triple productivity and quadruple returns to $280 million by 2023.
BITCOIN TRADING TO END IN CHINA
According to the WSJ, China has ordered that Bitcoin trading must end in the country in two weeks.
WHOLESALE RATES
Swap rates rose by another 2 bps right across the curve today. The rises continue to be small but relentless and are building up cumulatively. The 90 day bank bill rates were up another 1 bp again today to 3.16%.
OUR CURRENCY
The NZ dollar has started to fall as the day has progressed, presumably as the dairy price retrenchment implications sink in. It is now up to 85.9 USc, 93.1 AUc, and the TWI is now 80.3.
1 Comments
An interesting announcement from NZ Post today;
New Zealand Post Group has sold its subsidiary company Localist.
The business was purchased by a group led by Localist CEO Christine Domecq.
New Zealand Post Group CEO Brian Roche said the sale is a good outcome for New Zealand Post and Localist.
"Following New Zealand Post's announcement late last year of its future strategy, we are now strongly focused on core services and developing growth initiatives across our parcels, financial services and network businesses.
"The Localist business is no longer a part of that future strategy."
Mr Roche said Localist had entered a new phase.
"There have been encouraging signs of progress for Localist over the last 12 months and its new team is excited about its future direction."
New Zealand Post will work with Localist over the next two months to ensure an orderly transition of the business.
The company was sold for an undisclosed sum.
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