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A review of things you need to know before you go home on Friday; TSB Bank goes all out, Roest denied, business confidence disappoints, rapid rise in Akl building consents, 70% of mortgages fixed

A review of things you need to know before you go home on Friday; TSB Bank goes all out, Roest denied, business confidence disappoints, rapid rise in Akl building consents, 70% of mortgages fixed
For Friday, August 29, 2014. <a href="http://www.shutterstock.com/">Image sourced from Shutterstock.com</a>

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

TODAY'S MORTGAGE RATE CHANGES
Late today, TSB Bank has upped the ante with the most competitive two year fixed rate offer in the market. It is a 'special' of course, but they also raised the level of cash-back incentive to $2,500 from $2,000. And then they are offering a chance to win a $20,000 home makeover.

TODAY'S DEPOSIT RATE CHANGES
There were no deposit rate changes today; well, none so far.

BRIDGECORP ECHO
Robert Roest was today denied parole in his 6 yr 9 mth prison sentence. He has been inside two years now and was eligible to apply for parole.

'THEY' HAVE PROBLEMS COMING
The monthly ANZ business survey was disappointing in August. The headline confidence index fell from +40 to +24, indicating a net 24% of firms are optimistic about overall prospects, while the measure of firms' own activity outlook drifted down from a net balance of +45 to +37. Every sector showed that firms were much more positive about their own prospects than those of their rivals. This was especially true of farmers; they are +22% positive themselves but -34% negative about the prospects for the rural economy overall.

QUEEN CITY RISES
Residential building consents hit a six year high in July, mainly driven by a jump in Auckland. That undermines the critics somewhat who thought Auckland would continue to lag, but it now looks like momentum is starting to build.

SNAILS PACE
Housing credit grew its slowest in two years, gaining only +$382 million over June to $193.3 bln. For the first time since February 2010 the total mortgage book of the banking industry is now more than 70% fixed.

CONSUMER CREDIT GROWTH HIGHEST SINCE FEB 06
Consumer credit grew at an annualised rate of 6.3% in July, the fastest pace since February 2006, to $14.344 billion, as personal loans, car loans and credit card debt increased.

BIGGER BANK DEPOSITS
The level of household deposits grew at an impressive +8.3% pa rate in July to $130.7 bln. That is a gain over June of +$1.165 bln. As impressive as that is, it was a slight slowing of the earlier pace. The comparison of the deposit book growth with that of home loans shows why depositors are not being offered improved rates.

WHOLESALE RATES
Swap rates were basically unchanged today. The 90 day bank bill rate however was up again another +1 bp to 3.71%.

OUR CURRENCY
Check our real-time charts here. The NZ dollar lost about 15 bps when the weaker business confidence data was released and is now at 83.8 USc, now at 89.5 AUc and the TWI is at 79.0.

You can now see an animation of this chart. Click on it, or click here.

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14 Comments

Chinese oil demand drops 6.3%.

http://www.upi.com/Business_News/Energy-Resources/2014/08/27/Chinese-oi…?

"The weakness in China's oil demand reflects the ongoing slowdown in its economy,"

Hmmm

regards

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So much for the 7+% compounding annual growth in GDP China is supposed to be maintaining into the future.

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7% into 70 years means China's already huge GDP/economy has to double every 10 years, just how do ppl think that is possible?

Looking at the housing building etc I think its failed to double in 7years (the old 10% per annum rule)  its one huge fiddle.

regards

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Agreed Steven but remember - neo-classical/neo-liberal economists believe that there are no physical limits to growth.

 

Our politicians (including Green ones) support such economic beliefs because it enables them to promise voters never ending growth.

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Hold the front page , Ed ... scoop reporter Gummy here :

 

Crusher Collins has resigned !

 

... not because she thinks it's the right thing to do .... but because her hand has been forced , as the Serious Fraud Office investigate her ....

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Almost- it is because of more "historic" 2011 allegations. that when she was the Minister in charge of the SFO she was passing information to Whaleoil to undermine it. she has resigned to "clear her name".

The thing is, with Collins gone to his is going to refocus the attention on the people in the Prime Minister's office doing the same kind of thing. And it strengthens the case the that Hager book is true.

Key says New Zealanders don't need to be bothered by this, and she may be returning as a Minister in the future.

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PM is using the Slater SFO email as an excuse.  He has other reasons for sacking JC. 

 

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Yep. since this email was given to the Prime Minister's Office "in confidence but not anonymously" it sounds like it could even be an internal National leak to itself to create a reason  to force the resignation. we know the 2011 email was from Cameron Slater, but it would be really interesting to know who it was to, particularly given the known links between Slater and people in the Prime Minister's Office.

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JK did not " 86 " JC ... the Crusher handed her resignation to him voluntarily ...

 

... and JK worked very hard to suppress his enormous desire to jump for joy and to let out a whoop of relief ...

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Voluntarily, yep - as most such resignations are. And it took JK completely by surprise - especially the timing being on the quietest of media days.

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.... given her initials , JC , she must've thought she was our Lord and Master , and could do pretty much anything she wished to .... until now ....

 

But there's only one  " JC "  worthy of that luxury .... our God , not yet in heaven , John Cleese ....Praise be the Parrot Sketch , amen !

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I like your analogy GBH - and think it could be extended to another JC belief. Not to walking on water but through effluent and being able to come away untainted.

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here is, as I understand it, the email (from stuff)

http://static.stuff.co.nz/files/collinsemail.pdf

Mathew Hooton is saying he was contacted about it by someone in the beehive on Wednesday.

 

 

 

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meanwhile in "that's going to end well news" in Russian food inflation news, figures like chicken up 1.5% Apples up 0.5% (and it is apple season when prices are normally declining). By the way, this is weekly inflation.

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