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A review of things you need to know before you go home on Thursday; new auction data, latest NZGB bond tender less popular, renting costs more, huge education fraud uncovered, swaps flat, NZD rises again

A review of things you need to know before you go home on Thursday; new auction data, latest NZGB bond tender less popular, renting costs more, huge education fraud uncovered, swaps flat, NZD rises again

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

TODAY'S MORTGAGE RATE CHANGES
No changes today.

TODAY'S DEPOSIT RATE CHANGES
No changes here either.

BRILLIANT NEW RESOURCE
Today we launched a new searchable database, one where you can find auction results and auction sales prices. It has a national coverage. It covers both residential and commercial property transactions.

NOT AS POPULAR
Today's NZGB tender of NZ$150 mln 2033's received bids for NZ$284 mln but this is the worst coverage ratio of this series so far. Investors are keeping their powder dry ahead of the Brexit vote. The yield shows small tick up to 2.93% from 2.88% last time.

MOTOR TRADE FINANCE REJECTS SUITORS
Motor Trade Finance (MTF) has called time on its suitors Heartland Bank and Turners Ltd, saying neither approach had enough merit to be developed and put to its shareholders. Heartland had offered $1.50 per share for 10% to 20% of MTF's shares, and suggested it was potentially interested in acquiring all of MTF. Turners had offered $1.15 per share for up to 20% of MTF.

BETTER NOW
The FMA as regulator of the NZX has reviewed the stock exchange's governance and regulatory performance. It reports it has seen "a steady improvement" in their infrastructure, governance and processes put in place by NZX to perform their regulatory obligations since 2012.

CHINESE BUSINESS SENTIMENT REBOUNDS
The assessment of business conditions among executives at China’s largest companies jumped in June as the tailwinds of looser monetary and fiscal policies in the first two quarters of 2016 boosted sentiment. But the veneer of the rise was tarnished somewhat by underlying components which showed measures of output and demand still remained sluggish.

RENTING COSTS MORE
Hefty rent hikes in Auckland, BoP, Waikato and Otago push the country's median weekly rent up 5% from a year ago. Well, they pushed the 'advertised' rent up by that amount. This is data supplied by Trade Me. We will need to await the official Tenancy Bond Service data for confirmation.

MASS FRAUD MAY LEAD TO MASS DEPORTATION
New information released by the Labour Party today show 15 bank managers in India have been identified by Immigration New Zealand as presenting fraudulent documents on behalf of foreign students studying here. Indian bank managers doctored genuine information which was then used by education agents to prove students had the funds to pay for their New Zealand tuition. This fraud is so widespread, Immigration NZ officials say “there has been no agent we’ve looked at that hasn’t been using it, to some extent or another’. There are more than 1000 education agents operating in India. Hundreds of students here face mass deportation if they can’t prove they have the money they claimed to have on their original study applications.

CHALLENGER BANK REPORTS HIGHER PROFIT
SBS Bank is reporting "a solid result" for the financial year ending 31 March 2016 with an operating profit of $27.7 million, a +6% increase on the $26.1 million reported last year.

SWAP RATES HOLD
Local swap rates are essentially unchanged today, but the one year term is down -1 bp while the 10 year term is up +1 bp. NZ swap rates are here. The 90-day bank bill rate is down -1 bp, now at 2.34%.

NZ DOLLAR FIRMS FURTHER
Our currency keeps creeping marginally higher each day. The moves are not large but the culumation is now showing over the past 7 days and against the greenback we are now at a 13 month high. The NZD is now at 71.7 USc, at 95.4 AUc, and 63.3 euro cents. The TWI-5 is now just over 74.6. Check our real-time charts here.

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

Daily exchange rates

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End of day UTC
Source: CoinDesk

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13 Comments

One of the best articles on Brexit?

EU Basics – Your Guide to the UK Referendum on EU Membership

https://professorwerner.wordpress.com/2016/06/21/eu-basics-your-guide-t…

After all the EU was a USGov/CIA set-up right from the start.
The history of the EU beginnings can be read here:

https://www2.warwick.ac.uk/fac/soc/pais/people/aldrich/publications/oss…

If the Brits have any sense they'd leave.

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Fraudulent bollocks Edumacation Industry is fraudulent.

What?! I am shocked, Sir, shocked!

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last week minister joyce said it was up to the education providers here to make sure there agents in india were not corrupt.
good luck with that one
also as for deporting them bit late for all the ones that have moved onto resident

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"New information released by the Labour Party today....." probably freely available to anyone but I suggest its something the government would be doing a Nelson on.
I speak to some of the Indian guys working at our local servo and elsewhere and the story is usually the same - they are all doing mickey mouse courses (couple hours a week that they can normally get a video or the notes from classmates) are generally already graduates from Indian colleges and unis, they speak very good English and are just here to get their residency or a better paying jobs than they can get back home. How that all adds up with the costs involved, flights, courses, accommodation etc has me puzzled.

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Bankers forging documents?, just not cricket, what. These chaps need a severe talking to. Jolly well has to stop, I say. The thought occurs that our people might have wondered about the same few bankers names appearing on so many applications from that vast country but don’t want to make a fuss, eh.

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that would be like heaps Coming marked B smith or A smith , i would suspect a lot under the same surname would not draw an eyebrow in the slightest

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Were we not assured recently that the application screening process is rigorous? 1000 education agents with every one immigration has ‘looked at’ using the scam. An inference is that a large % of the 1000 are implicated. A routine data check ought to have thrown up this small number of bankers names appearing disproportionately. Surely basic analytics checking would have formed part of the supposedly ‘rigorous’ process?

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Banks forge the libor rate nonetheless.

A former Deutsche Bank AG trader secretly pleaded guilty in New York to conspiring to manipulate a benchmark interest rate tied to trillions of dollars in securities and loans and prosecutors said he agreed to help U.S. investigators in their probe. Read more

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The FMA as regulator of the NZX has reviewed the stock exchange's governance and regulatory performance. It reports it has seen "a steady improvement" in their infrastructure, governance and processes put in place by NZX to perform their regulatory obligations since 2012.

Good to know given we live in challenging times.

According to Howard Silverblatt’s figures from Standard & Poor’s, as late as November analysts were projecting $27.71 in quarterly earnings (as reported) for Q4 2015 and $27.60 for Q1 2016. Those represented significant year-over-year gains (+21% and +27%, respectively) from the weakness that ended 2014 and began 2015, all figured to be transitory. With 98% of the 500 companies having reported their first quarter 2016 results now, those November expectations were entirely upended

EPS in Q4 was only $18.70, a third less than anticipated while the quarter was in progress. First quarter EPS will settle somewhere close to its current number of $21.72, a fifth less than what was hoped just over six months ago. Read more

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Today's NZGB tender of NZ$150 mln 2033's received bids for NZ$284 mln but this is the worst coverage ratio of this series so far. Investors are keeping their powder dry ahead of the Brexit vote.

The RBNZ has seen it's open market operations related outstanding short dated Bill sales plummet from ~$2.0 billion at the beginning of the month to $850 million today, due to a buyers strike. The NZDMO has also experienced unfilled TBill offers at it's two most recent tenders.

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Traditional unsecured Japanese money market dislocation proceeds without a backward glance.

A majority of Japan’s biggest private lenders are still unwilling to borrow from the market for overnight loans almost six months after the Bank of Japan announced its negative interest-rate policy.

Three of Japan’s five largest lenders by market capitalization said they were not tapping the unsecured overnight call market for funding, according to a Bloomberg survey this month of Bank of Tokyo-Mitsubishi UFJ Ltd., Sumitomo Mitsui Banking Corp., Mizuho Bank Ltd., Sumitomo Mitsui Trust Holdings Inc. and Resona Holdings Inc. Two said they are raising funds from the market to maintain relationships with clients.

The outstanding amount of overnight interbank loans is less than half the size on Feb. 15, the day before the BOJ began charging some lenders on their excess reserves as part of its effort to stimulate the economy. Read more

The only remaining global source of unsecured bank funding is that offered to bank customers (depositors) - how much longer can that last? Read more

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