Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
No changes to report today, so far.
DEPOSIT RATE CHANGES
No changes to report today here either. But ANZ has changed many bank fees and we have a separate report on these.
MORE BUSINESSES, MORE STAFF
Think our economy is struggling? Then don't read the latest data out from Statistics NZ. Most industries and regions have more businesses and staff than last year, with growth led by the construction industry, they report. Mining is the only industry to go against the trend. The latest business demography statistics showed 515,000 enterprises in total in New Zealand at February 2016, up +1.6% from the previous year. Those businesses employed 2.1 million paid staff, up +2.4% in the same period.
AUSSIE PPP RISES
Australian producer prices rose +0.5% year-on-year in the September quarter, although they rose a faster +0.3% from the June quarter. (Comparison and judgment about this data is tricky because of the unusually large recording in September 2015.)
NEW HOUSE BUILDING UP - IN AUSTRALIA
The sales of new homes in Australia rose for the second consecutive month. They rose by +2.7% in September following a +6.1% rise in August. Detached house sales rose by +3.8%, while sales of units fell by -0.8%. (Believe it of not, we don't have equivalent data in New Zealand. Here, no one knows how many new houses are being built. We only know Consents. A difference? We don't know that either.)
NOW ITS ONLY THE CAPITAL GAINS
On average, gross residential rental yields are now below bank deposit rates in parts of Auckland as investors chase capital gains. Yields for residential property are on a slippery slope around the rest of the country too. It is now all up to the capital gains ... For yield investors, some commercial properties may be a better idea.
HANDS OFF
The last time the Reserve Bank intervened in the currency markets to try and affect the level was a year ago when they spent NZ$400 mln plus - for virtually no effect. Data out today shows they haven't intervened since. But over the past year, the NZD has gone from 64.5 USc to 71.3 today.
YOUI EXPECTS $350,000 FINE
Disgraced insurer Youi expects to be fined $350,000 through the Fair Trading Act charges brought against it by the Commerce Commission. Youi's annual financial statements show it has provisioned this amount to cover the case. Youi is pleading guilty to 15 Fair Trading Act charges alleging it used misleading sales techniques when attempting to sell policies to consumers who were only seeking a quote. Meanwhile, Youi lost $11 mln in the June year, down from $14.8 mln the previous year. Gross written premium revenue rose to $31.7 mln from $18.6 mln.
IMPRESSIVE SIGNALS
I don't mean to be a broken record on this, but today's WMP futures trading reveals further healthy price gains. If these are sustained into next week's GDT dairy auction, that would mean a +11.6% rise from the previous auction. That would really get some attention all round. And it would take prices for WMP above US$3,000 for the first time since March 2015.
WHOLESALE RATES STEEPER AGAIN
Most swap rates rose +1 bps to +6 bps again today, accentuating the curve steepening. Only, the 1 year rate went down -1 bp. The 90-day bank bill is also down another -1 bp to 2.12%. Yields for some NZGBs are down by -1 bp today, although most are unchanged.
NZ DOLLAR LITTLE CHANGED
The NZD/USD has been stable again today. It is still at 71.3 USc. On the cross rates, it is trading at 93.9 AUc, and is at 65.4 euro cents. The TWI-5 is now at 75.7. Check our real-time charts here.
You can now see an animation of this chart. Click on it, or click here.
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