Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
No changes to report today.
DEPOSIT RATE CHANGES
Gold Band Finance raised their rates for terms of 18 months, 3 years, and five years. And the Co-operative Bank moved its 3.50% 'special' from a six month term to a five month term.
CURRENT ACCOUNT DEFICIT NARROWS
Our current account deficit has narrowed to 2.7% of GDP in 2016 as the rise in income received from abroad and tourism inflows trumped the money spent on car imports and falling oil and log exports. But neither the currency or interest rate markets reacted to the expected news, as positive as it may be.
MORE JOBS ALMOST EVERYWHERE
MBIE job vacancy tracking for February was released today. The All Vacancies Index increased by +1.2%. Vacancies increased in six out of eight industry groups. Vacancies increased in all occupation groups. The largest increases were for machinery drivers and operators. Vacancies increased in all skill levels. Vacancies increased in eight out of ten regions, with Gisborne and Canterbury showing no change from January (although Canterbury was the only region falling year-on-year).
MOST LIVEABLE?
A day or so late perhaps, but worth noting here anyway; Auckland has ranked #3 in Mercer's "Quality of Living" rankings for 2017. Wellington ranked #15. Auckland was beaten by Vienna and Zurich, but beat out Munich and Vancouver. Sydney was ranked #10 and Melbourne #16=.
MORE SALES, SOFTER PRICES
There were 131 farms sold in February, 16 more than in the same month a year ago. The increase came from more dairy units and finishing farms. Dairy land prices are holding at about $40,000/ha although we starting to see declining prices in the Waikato, the Bay of Plenty and Taranaki. Prices/ha are softer in Southland too.
FEWER LIFESTYLE BLOCK SALES
Sales of lifestyle blocks were lower in February 2017 than 2016 by some -11% with 645 properties of this type changing hands. Most of the drop occurred in four provinces; the Waikato, the Bay of Plenty, Canterbury and Southland. Northland, the Hawke's Bay and Otago bucked the trend.
ANZ & WESTPAC SETTLE WITH ASIC ON FOREX PROBE
ANZ and Westpac have both entered into an enforceable undertaking with the Australian Securities and Investments Commission (ASIC) following the regulator's probe into spot foreign exchange trading between January 2008 and June 2013. ANZ says it accepts aspects of its supervision and monitoring of the spot FX business weren't good enough, has taken responsibility and apologises. As part of the deal, an independent expert will be appointed to assess and review relevant systems and controls within the two banks, and both will make A$3 million contributions to Financial Literacy Australia. Here's ASIC's full statement, which among other things, thanks NZ's FMA for its assistance.
IN REVERSE
Across the ditch, car sales are declining, according to February data out today.
IN DECLINE
And, Australia finance for housing, personal use, and commercial use are all declining as well, in January data released today.
FLAT AND STABLE
Despite these reversals, Aussie consumer sentiment remains in neutral. The respected Westpac-Melbourne Institute survey appears to be stabilising around that point where optimists and pessimists are about equal in number.
BIG, BAD & IGNORING THE LAW
And staying in Australia, the head of the competition watchdog says some large companies are deliberately trying to deceive customers and that the effects are widespread. The top official said they are having to crack down on misleading behaviour by large businesses - particularly airlines, telecommunications and car retailers. ANZ and Macquarie banks also got special mention from him as businesses that flout the law unless "very sizable penalties" are faced. Respect for the law is a corporate culture issue.
WHOLESALE RATES HOLD
Local swap rates have hardly moved today ahead of the US Fed announcement tomorrow morning. Even the 90 day bank bill rate is on hold at 1.96%. During today, the UST 10yr yield has moved back up to 2.60%.
NZ DOLLAR ON HOLD TOO
The NZD is holding at 69.3 USc. On the cross rates we are at 91.6 AUc, and at 65.3 euro cents. The TWI-5 index is now at 75 of the euro weakness.
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31 Comments
Auckland is very 'liveable' for the global travelling corporate elite who can live the prestigious lifestyle in various cities around the world.
https://www.forbes.com/2009/08/10/cities-livable-elite-economist-monocl…
Definitely a fact and has been a trend for a long time, an increasing trend at that. Auckland exodus into the regions has never been so high. They get well and truely replaced with immigrants (lucky aucklanders..) which just helps increase the trend of the 1 mill plus native kiwis who miss what auckland used to be like
Sign up to Tony Alexanders news letters then these facts wont be so surprising to you.
This is an old stats article but shows the exodus trend from 2001-2006 starting in auckland and more recent data shows this trend continuing, mainly due to house prices, cost and ease of living id guess:
"Recently, however, migration patterns have been changing. In 2001–2006, the region with
biggest net gain (8,200) was to Canterbury, and the region with the biggest net loss (18,100) was
not Southland but Auckland."
http://www.stats.govt.nz/~/media/Statistics/browse-categories/populatio…
I think with the government's relentless focus on moving as slowly as possible on anti money laundering and foreign purchasers, the exodus will continue. China's clampdown on capital outflows may be merely a temporary respite before Auckland continues to become the Vancouver of the South Pacific.
If what you say is true and I suspect it is then there is no need for all this hysteria about Auckland house prices. If someone really must live in Auckland but cannot afford to buy then they can easily rent and actually enjoy the benefits that has - freedom. Living in Auckland is not a human right. The whole of New Zealand is like a small super city (population-wise) and Auckland is the core so it is going to be expensive. It's a bit like demanding to live in Central London or Manhattan. If you hanker for the good old days, and I understand that, it does exist outside of Auckland still. Auckland has gone too far down the multi-cultural route now, we have to accept it and live and thrive within the new paradigm.
That said we can try new things like the Market Town idea mentioned the other day. I know I mocked it a bit but I would love to see this tried and would even advocate the government funding it with the budget surplus instead of getting tax cuts. I can't seem to find the webpage advocating it anymore. There must be a zombie town in NZ that can be transformed.
...and actually enjoy the benefits that has - freedom" freedom from what Zac? If you can't afford to buy, then you'll get fleeced through rents which are more unaffordable than buying, and lock people into a poverty cycle. Personally because I own my own home, I'm believe I'm freer than if I rented. I don't have to worry about a landlord ending my tenancy at any time. All the other costs and responsibilities are still there. If I rented a property, I would still feel obligated to care for it. The costs are still there. Owning a property does not tie you down (as you well know) it simply frees you from being dependent on others. Which is why Gareth Morgan wants to tax it.
Very few renters feel obliged to have all the other costs and responsibilities. Mine just phone the manager to get things fixed. I cut the hedges, clean the gutters and so on. My tenants have nicer cars than me and one even has a live in nanny. Tenants can easily move cities. Losing a rental should be seen as an opportunity for change rather than a tragedy. I do think a landlord should offer some compensation to loyal and good tenants if he wants the house empty for selling though.
And you charge the tenants for doing those things through the rent don't you? I also know people with nice cars, but I also know them well enough to learn they got them through debt financing. I can just as easily move cities if i want to, and it is easier to buy in another city because selling my home will give me a better than good deposit. there are other factors that that put me off.
Lets just face it the so called "freedom" that renting provides is nothing more than a myth perpetrated by landlords and economists, just like landlords providing a social service. Unadulterated BS really.
There is a real disconnect between the way the world sees Auckland and the way kiwis do. Just look at the rethoric "JAFA" = just another f***ing Aucklander, Dorkland etc... and the comments on this site.
Fortunately, we live in a free country where everyone can live where they want, so if one's not happy where he lives, move
Auckland Exodus covered last year ( provoking similar polarisation)
.
http://www.interest.co.nz/business/80888/jen%E2%80%8Bée-tibshraeny-crun…
Interesting that these numbers corrospond to declining Auckland golf club membership. http://www.golf.co.nz/uploads/Executive%20Summary.pdf
I suggest it's not young hardworking kiwis moving out of the city
MortgageBelt; I'm really not having any luck, when I click your link I get "this page is no longer available"
I'm not trying to argue with you nor do I dismiss what you said, I just like to base my knowledge on data rather than opinions and I was looking forward to some real data about Auckland exodus
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