A review of things you need to know before you go home today; Westpac raises floating rates; Crown surplus rises; a million more passenger trips; fatal crashes cost $4.7 mln; busy month for rentals; weak Chinese PMI; swaps lower; NZD flat

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

MORTGAGE RATE CHANGES
Westpac floating rates rise 9 bps to 5.84% raising the separation from official and wholesale rates.

DEPOSIT RATE CHANGES
No changes to report today.

CROWN SURPLUS CONTINUES TO RISE
Crown Operating Balance was in surplus of $10.6 bln for the eight months ended February 2017, $6.5 bln greater than expected and the fourth highest increase in operating balance since July 2003. This was primarily driven by an operating balance before gains and losses (OBEGAL) of $1.4 bln, $900 mln greater than expected, and actuarial gains on ACC and GSF liabilities, which were $4.4 bln greater than expected. The OBEGAL surplus was driven by higher than forecast company tax revenue, even though this was partially offset by source deductions, and expected expenses being $395 mln lower than forecast, however, the majority of the decrease in expenses relates to costs in relation to the Kaikoura earthquake, which have not been quantified to complete certainty yet.

A MILLION MORE EACH 100 DAYS
Auckland’s rail network is adding a million passenger trips every three to four months. The region's passenger rail system is expanding at the rate of almost +20% pa carrying 19 million passenger trips in 2016. That is up to 22% of the 87 mln public transport trips, making it the fastest growing segment of the system. By comparison, Wellington had 38 mln public transport trips in 2016, of which 13 mln were by rail. (Wellington's public transport system useage only had +2% growth in 2016.)

COST OF ROAD CRASHES
The Ministry of Transport estimates that the social cost of each fatal crash is $4.7 mln, reported serious crashes are $912,000 and minor crashes were $99,000, all  per crash. All up, the estimated total social costs of fatal and injury crashes rose from $3.53 bln to $3.79 bln in 2015 (in 2016 prices). The social costs for a crash include loss of life and life quality, loss of output due to temporary incapacitation, medical costs, legal costs and vehicle damage costs.

MARCH A BUSY MONTH FOR RENTALS
There were 15,379 bonds filed with the Tenancy Bond Service in the month of March 2017, the highest level since March 2011. National median rents were flat for the month at $400 and up $20 for the year, across all property types. Median rents for a three bedroom house continued to rise, to a national median of $430, a rise of $30 for the year. While the median rents for three bedroom houses in the major city centres were lower for the month, Auckland and Wellington were $15 and $20 up for the year and Christchurch was down $30 for the year. In terms of apartments, median rents for two bedroom apartments rose by $20 in March to $340, up $10 for the year. Again, median two bedroom apartment rents were up $20 for the year in Auckland and Wellington but the Christchurch market has seen a fall of $15 for the year.

WEAK CHINESE PMI
Chinese Caixin Services PMI, which focuses on small to medium sized companies, has shown that the service sector expanded at the slowest rate in six months. The fall is contributed to weaker growth in new orders and rising cost pressures. There are concerns that the Chinese real estate sector has peaked and this is likely to be a drag on the whole economy. The input cost pressures were the highest in four years and a number of firms cited salaries as the driver.

WHOLESALE RATES LOWER
Reversing the gains from yesterday, the swap rates dropped -2 bps across the board. The 90 day bank bill is up +1 bp and now at 2.00%

NZ DOLLAR RECOVERS
The NZD has recovered to trade at about the same level as this time yesterday, 69.7 USc, after testing lows of 69.4 USc this morning.  Against the AUD, the NZD has rallied strongly today, having dropped to 91.7 AUc this morning, it now trades at 92.4 AUc. Against the EUR we are still trading at around the 65.3 euro cents level. The TWI-5 is 74.8, up slightly from this morning.

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