Here are the key things you need to know before you leave work today.
CURRENCY FRENZY
There was NZ$254 billion transacted in the NZD fx markets in March (NZ$127 billion each way, buyers and sellers). That is an 18% rise from the same month a year ago. Swaps were up 25% over than period, spot transactions were unchanged, and forwards fell.
MEDIAN HOUSE PRICES 'SURGE'
The REINZ report for March shows tepid sales volumes but surging median prices. The under $400,000 market is falling, the over $600,000 market has volumes that are holding. While individual house prices may not be changing, the market shifts are causing the median to rise.
WESTPAC MATCHES RIVALS
Westpac has finally taken its bonus saver up to 4.0% where its competitors have been for a while.
TAX DODGERS GET MORE FOCUS THAN BENEFIT FRAUD
The Government says its compliance activity for ‘hidden economy’ tax evasion gave a return of $45 million, $5.60 for every dollar spent. For non-compliance through property speculation, $53.8 million worth of discrepancies were found, a return of $8.42 for every dollar invested.
GOVT CLAIMS MANAWATU RIVER GETTING CLEANER
"It is still early days as far as the time frames for cleaning up polluted water ways are concerned, but I am pleased to see the Manawatu Leaders Accord reporting overall improving trends in nutrient levels and levels of bacteria in the Manawatu River," said the Environment minister.
FOOD PRICES RISE - OR FALL
Food prices were down 0.3% in March from February, but they are 1.2% higher than March a year ago.
INBOUND TOURISM BOOMS
Occupancy rates for tourist accommodation rose to their second highest level ever.
CONFIDENCE HIGH
The latest BNZ confidence survey shows that only 5% of respondents think things are going to get worse in the coming year, the second lowest level ever.
WHOLESALE RATES
Swap rates fell back today following the New York bond yield declines last night. Two to seven year terms were down 3 bps, the 10 yr was down 4 bps. The one year was unchanged. The 90 day bank bill rates resumed their upward climb, settling at 3.22% today.
OUR CURRENCY
The NZ dollar has fallen today and is now down to 86.4 USc shaken by falling dairy prices. We are at 92.1 AUc, and the TWI is just over 80.
7 Comments
On the currency turnover per month, there were several reports a few days ago suggesting that daily turnover in the NZD was ~$100 billion. The report above suggest turnover in March was really $127 billion in the month (counting sales and purchases as separate sales doesn’t seem correct to me), or say $4 billion per day. The $100 billion figure is often touted as justification for passive non action by the Reserve Bank, in that it would be too tough to work against. $4 billion is a much more manageable number to influence.
I wonder which is the correct figure.
I received data first hand last week that in the New Zealand session about $12B per day changes hands, but that Iconoclasts figure of $50B per day overall is accurate. The $12B is dominated by the big New Zealand company's such as Fonterra.
Also in that conversation was that the NZD is multiple times less liquid than pre GFC.
Amazons and Swallows.
If you swallow their thinking on getting rid of staff...you will probably swallow, just about anything.
http://www.aol.com/article/2014/04/10/bezos-offers-update-on-groceries-…
House prices are surging, obviously because the LVR is working so well. Expect to hear next how the houses prices are dropping.
Manawatu river getting cleaner, because it wasn't that bad to start with. And since we have just been through the second worst drought in 40 years (previous was in late 70's) of course the levels dropping and not much is going down it!
http://davidstockmanscontracorner.com/2014/04/11/what-happens-when-the-…
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