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
No changes to report today.
AUSTRALIA - TOP TRADING PARTNER
Goods and services trade by country statistics released today show that Australia remains New Zealand's top trading partner, ahead of China, and that Trans-Tasman travel was worth more than $2 bln each way. New Zealand's largest exports to Australia were precious metals, jewelry and coins followed by crude oil, various foods and machinery.
CHINESE DEMAND
Fonterra is set to invest $20 mln at its Te Rapa site to meet growing demand for cream cheese and mini-dish butter. This is in response to increased demand for on-the-go dairy in China and across wider Asia. Chinese demand has been especially strong for Fonterra's products, with a 40% increase in volume year to date. The taste trend towards butter is evident in the increase in volumes, rising from 17,000 tonnes in 2009 to 63,000 tonnes in 2016 - around 20% annually.
HOUSING DEBT UP 8.2%, HOUSEHOLD DEPOSITS UP 7.2%
Housing debt growth slowed for the fourth consecutive month in April, recording its slowest growth rate in 12 months. Nonetheless, Reserve Bank data shows housing credit still grew 8.2% year-on-year in April reaching $234.696 billion. Meanwhile, household deposits grew 7.2% year-on-year in April, reaching $159.138 billion. In terms of the other debt figures, consumer credit increased 5.5% to $15.316 billion, its fastest growth rate since August 2015, business debt grew 7.6% to $105.253 billion, and agriculture debt increased 2.7% to $59.247 billion. Total gross deposits rose 1.5% month-on-month to $314.571 billion, and term deposits increased 1.6% month-on-month to $162.093 billion.
BEEF MARKET
The world's second largest exporter of beef India may pose a ban on cattle slaughter. India currently exports $5 bln worth of beef, which makes up 20% of global beef exports. The ban, if implemented, will provide other beef exporters, including New Zealand, new opportunities.
SMALL BUSINESS DRIVES NZ
Businesses with 20 employees or less make up 97% of all New Zealand enterprises, contribute $65 bln to the economy and employ 29% of workers. Small Business Minister Jacqui Dean welcomed this data from the MBIE and is committed to creating an environment where small business can continue to mature.
BUYERS MARKET
Buyers are gaining the upper hand in the Auckland real estate market as stocks of homes available for sale on realestate.co.nz rose by 51%, from 5718 to 8622. Housing stocks are also up in Waikato, Bay of Plenty, Wellington and Canterbury.
SMARTPHONES
Samsung regains number one spot in the New Zealand smartphone market, with 40% market share, based on shipments data from January 2017 to March 2017. Apple, despite losing number one spot, increased its market share from 31% to 38%.
TRUMP LOSES ADVISERS
Donald Trump has announced that he will withdraw the United States from the 2015 global agreement to fight climate change. A number of supporters of the agreement have expressed disappointment and Tesla CEO Elon Musk and Walt Disney CEO Robert Iger said that they would leave White House advisory councils.
EQUITIES MAKE NEW RECORDS
The Dow Jones Industrial Average, S&P 500 Index and Nasdaq Composite Index have all made fresh closing highs. For the Dow, the gains have been fuelled by industrial, consumer and tech companies. The VIX at the same time closed below 10 as expected volatility declines.
AUSTRALIAN NEW HOME SALES
The New Home Sales Report by Housing Industry Australia shows that new home sales in April grew by 0.8% after falling 1.1% in March. The sales activity, however, remains lower than the same period last year.
WHOLESALE RATES HIGHER
Local swaps curve has steepened today with the 1 yr rate down -1 bps and the 2 yr, 5 yr and 10 yr rates are up +2 bps, +3 bps and +4 bps respectively. The 90 day bank bill rate is -1 bps lower at 1.95%.
NZ DOLLAR RELATIVELY UNCHANGED
NZD is trading at the same level as yesterday at 70.7 USc. On the crosses we are at 95.7 AUc, and at 63.0 euro cents. The TWI-5 is now at 75.2.
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7 Comments
New Zealanders are starting to take note. The changing face of the Mackenzie environment is yet another display of the consequences of intensive dairying that are rankling with voters four months before a general election. Across the nation, once-pristine waterways have become contaminated by farm effluent.
Tourist operators say that image clashes with the “100% Pure” brand the New Zealand government uses internationally for marketing along with pictures of “clean, green” scenery. The campaign helped lure 3.5 million visitors in 2016, when tourism overtook dairy products as the nation’s biggest foreign-exchange earner. Read more
I suppose the logical question regarding Indian beef is what happens next? an extra 2 million cattle on the streets every year and a 5 billion hole in their export market. Also why does Indonesia have a 400k ton stockpile of Indian beef?
I think like Brazil, these things get worked out and are more political than market driven after a bit of posturing everything goes back to normal. That is except for the oversupply in the pork industry. There is one hell of a lot of animal protein in the world.
"Surging imports have added to China's pork supply. According to the National Bureau of Statistics, domestic pork production during the first quarter of 2017 was 14.68 million metric tons, up 0.2 percent from the same period in 2016. Customs statistics show imports of hog products totaled 684,800 mt, up 19.5% from the same period a year earlier. Of that total, imports of offal were 338,500 mt, up 17.9% from a year earlier, and imports of chilled and frozen pork were 346,200 mt, up 21% from a year earlier. "
Nice to see the Chinese have taken to eating dairy which is unsurprising as appetites are satisfied with fats.
Here's latest on the Chinese in Ca for those who might be interested ;
http://www.macleans.ca/economy/economicanalysis/chinese-real-estate-inv…
Macron pledges to 'Make our planet great again'
Donald Trump's decision to withdraw from the Paris climate agreement has been criticised by French President Emmanuel Macron.
http://www.bbc.com/news/av/world-europe-40125579/paris-climate-deal-mac…
As an alternative view of the chinese butter mountain try
http://www.dairyinfo.gc.ca/index_e.php?s1=dff-fcil&s2=cons&s3=consglo&s…
It suggests the butter consumption per head to 2015 is flat but still small compared to their japanese cousins.
A little channel stuffing perhaps?
Semi detached: Getting a mortgage is no comment upon the house. None!
http://www.smh.com.au/nsw/this-house-killed-me-diy-home-renovators-the-…
Same banks leaky homes!
And cv's got nothing to do with what its worth.
Desk top/drive by valuation!
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