Here are the key things you need to know before you leave work today.
TODAY'S MORTGAGE RATE CHANGES
There were no home loan changes today.
TODAY'S DEPOSIT RATE CHANGES
Asset Finance have dropped rates for terms 18 months to 5 years.
A FEE CUT
Kiwibank has cut a number of credit card fees. Standing out is the cut for their late payment fee which was reduced from $15 to $3. You can thank the new CCCFA legal provisions for motivating this change. Fee levels now need to be justifiable to regulators.
RETAIL GROWS
Retail sales resumed their growth in May following the bump in the road in April. But the pace of growth was slower. Retail spending using electronic cards was $4.6 bln in May 2015, up $143 mln (+3.2% from the same month a year ago) Statistics NZ reported. Including more than the retail sector (ie all card use), growth was less at +3%. We are using our cards more and for lower value transactions; the average transaction value reached a record low.
WHAT HOLIDAY?
It was a holiday week last week, but you would not know it from the mortgage approval data. $1.385 bln in new loans were approved in the four business days last week, not much less than the $1,446 bln the week before. Volumes showed similar strength. Still no sign of a winter slowdown in property markets and the 'extended season' is now becoming quite impressive.
A PROMOTION FOR GEORGE FRAZIS
Ex-Westpac NZ CEO George Frazis' star is on the rise under new group CEO Brian Hartzer. Frazis will head up one of two new divisions created in a new organisational structure for Westpac's Australian retail and business banking operations. Frazis, currently group executive for St George Bank, will head up Westpac's new Consumer Bank, and have responsibility for all consumer banking products and services under the Westpac, St.George, BankSA, Bank of Melbourne and RAMS brands. Hartzer says the distinct positions of each of Westpac’s Australian brands will be preserved and supported. The second new division is Commercial and Business Bank, which will cover small and medium enterprises, commercial and agri-business customers, as well as asset and equipment finance. A Westpac NZ spokeswoman said there'd be no impact on Westpac NZ from the restructure.
'SURPRISINGLY WEAK'
There was a surprising and sharp drop in Australian consumer sentiment reported today. The boost that came after their Federal budget has disappeared as quickly as it came.
WORKING CLOSELY
When the Chinese President visited New Zealand recently, one deal they made was for Chinese dairy companies to work closer with New Zealand research institutes. Today Lincoln University announced that Yili's new R&D Manager and his capabilities will be based at the Lincoln campus, some 11,000 kms from Yili’s headquarters in Hohhot City, China.
WHOLESALE RATES HIGHER
Interest rate swaps resumed their rises today (after yesterdays pause) following moves in New York overnight. They also steepened. The 2 year swap rate rose by +1 bp, the 5 year by +3 bps, and the 10 year swap is higher by +6 bps. The 90 day bank bill rate is unchanged at 3.46%.
NZ DOLLAR AREN'T
Our currency value changed little again today. The New Zealand dollar is still at 71.5 USc, 93.1 AUc, 63.1 euro cents, and the TWI-5 is at 75.5 Check our real-time charts here.
You can now see an animation of this chart. Click on it, or click here.
Daily exchange rates
Select chart tabs
2 Comments
So NZ institutions are progressively handing over all IP relating to NZs primary agricultural industry, including Dairy, to China, as well as our real estate and productive land. No wonder Fonterra are laying staff off. Is this a non armed invasion that isn't being subjected to public scrutiny? Did Helen already sign the surrender document in secret, but we weren't supposed to know the content?
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.