Here are the key things you need to know before you leave work today.
TODAY'S MORTGAGE RATE CHANGES
SBS Bank's 5.19% 2 year 'special' is the highlight for today, a new market low. This is important news so best to see all the detail here.
TODAY'S DEPOSIT RATE CHANGES
Following ANZ at the end of last week, a number of other banks and financials have cut term deposit rates. Among them are Westpac, SBS Bank, NZCU South and Finance Direct. Most of these reductions involve terms of 1 to 5 years with the shorter (and more popular) terms escaping the slicing - for now.
THE FUTURE OF WORK
In an acknowledgement of challenges ahead for traditional work, the Labour Party has launched a Future of Work Commission. Unless employees are prepared to re-train frequently in their working lives, many workers starting out will basic skills run a severe risk of being left behind in "the machine age". This should be a bi-partisan effort despite the encouraging New Zealand labour force statistics (and especially our participation rate).
MILLION DOLLAR BILL
The NZX has been under an IRD audit since 2012. They have now agreed to pay tax and penalties of $1.2 mln to settle the issues raised.
BINDING US TIGHTER
The Customs officials of New Zealand and China have agreed to share information better to speed trade. They have committed to a joint electronic verification system that will provide greater assurance over documents used to gain tariff preference for our traders in China.
REPUTATION DAMAGE
Star fund manager Milford Asset Management has today confirmed that one of its traders is under investigation by the FMA over market manipulation. Milford manages significant funds of about $3 bln especially in its KiwiSaver schemes.
WHOLESALE RATES HIGHER
Following the Wall Street bond yield rises after their strong jobs report, New Zealand yields have jumped today with a steepening bias. The rises have been chunky. For 2 and 3 years, swap rates are up +7 bps, for 4 and 5 years they are up +8 bps. For 10 years they are up +10 bps. The 90 day bank bill rate however is unchanged at 3.64%. Govt bond yields did not rise like the swaps, but recall they zoomed up on Thursday.today.
NZ DOLLAR CONSOLIDATES
Check our real-time charts here. The NZ dollar has risen this afternoon but only back to where it was on Thursday. In other words the jobs-induced USD strength has given way to a recovery by the NZD. It is now at 73.7 USc, 94.8 AUc, and the TWI is now at 77.
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10 Comments
Star fund manager Milford Asset Management has today confirmed that one of its traders is under investigation by the FMA over market manipulation. Milford manages significant funds of about $3 bln especially in its KiwiSaver schemes.
the individual was an inexperienced trader, and was not aware that trading with themselves was prohibited Yeah right.
Reminds me of another example of doubtful free market activity aptly characterised as , "The economic version of the sound of one hand clapping is a “market" with only one provider". Read more
Market sources were dismayed by Milford's announcement.
One said it was "disappointing".
"It has to raise questions about the NZX's regulatory function," he said.
Another said it was no surprise that Milford was being investigated.
"People have been talking about the Milford effect for a couple of years now," he said.
The issue went to the heart of fund performance and fees.
"To suggest that market manipulation has not had any impact on client funds is not in any way accurate," he said. Read more
Dead easy. - it is shorthand for saying it's the same person on both sides of the order book
Dont necessarily "have to" transact just place big orders to show strong interest.
Try it yourself one day. Brokers will not accept simultaneous orders both sides of the market
Depends how many client identiies you steal or create to over bid and offer through a trading system - more than one event of falsified US Treasury auction bids that many firms were on the wrong end of (a massive short squeeze initiated by Salomon Brothers) back in the nineties led to them being censured. Read more
https://www.youtube.com/watch?v=wcy8uLjRHPM
Bitter Lake
https://www.youtube.com/watch?v=jXcpDO8_3qU
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