Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
BNZ, ASB and TSB all raised fixed home loan rates today. More here.
TERM DEPOSIT RATE CHANGES
ASB also raised term deposit rates by between +5 bps (for 90 days) and +40 bps (for 3 and 4 years).
THE 90% FRAMEWORK
The Government released its new traffic light framework and it has been generally praised by the business community for the clarity if offers. Others aren't so sure. It is a plan for when a 90% vaccination target is reached (or what happens if they aren't). It offers more support for businesses and low-income earners in the interim.
BANKERS THINK IT WILL GET TOUGHER
An update to the RBNZ survey of banks shows that loan demand for mortgages was strong in September but nowhere near as strong as it was six months prior. The same survey shows bankers expect loan demand to wither in the next six months. (C60) The same survey shows bankers think credit availability has weakened and will also get much weaker in the next six months, for home loans. But these same bankers are much more upbeat about their corporate and agricultural market prospects. Interestingly, they see regulatory changes as highly negative, and perceptions of risk retreating. But they also see clients balance sheets improving noticeably.
RARE SHRINKAGE
Auckland's population fell to 1.716 mln in the year to June (even if it was only a tiny slip), and for the first time "ever", or since records began. The Super City joins the West Coast and Southland as New Zealand's only regions with declining populations. (The first New Zealand census was taken in 1851.)
PACKAGING UP PERSONAL LOANS
Harmoney's Australian business has just securitised AU$105 mln of their personal loan book there. Moody's as given 66% of it their top Aaa rating, and 85% of it an investment grade rating.
JAPAN IMPROVES
Japan got some inflation in September, a turnaround from the deflation it had in August. Its factories and services sector are both expanding in October, according to a widely-watched survey, and that is a good improvement too.
NEVER GRANDE
Evergrande is in even bigger trouble, and maybe even in its death throes. In statements filed at the Hong Kong Stock Exchange where it is listed, it said its effort to sell a key division to generate funds had failed, and it also said it may now not be able to meet its financial obligations. Investors left holding its shares are seeing their value tumble now that a trading halt has ended.
A TON-PLUS TODAY
There are 129 new community cases of COVID-19 to report today; 120 in Auckland and nine in Waikato. As at 10am, 64 of these cases are linked - including 30 household contacts - and 65 remain unlinked.
AUSSIE PANDEMIC UPDATE
In Australia Delta cases in Victoria have risen to 2189 cases reported there today, and so no real improvement again. There are now 23,230 active cases in the state and there were another 16 deaths yesterday. In NSW there were another 345 new community cases reported today with 5,037 active locally acquired cases which is lower, and they had five deaths yesterday. Queensland is reporting one new case. The ACT has 13 new cases. Overall in Australia, more than 71% of eligible Aussies are fully vaccinated, plus 15% have now had one shot so far. In contrast, there were five new cases in New Zealand at the border, and 129 new community cases. Now 85.8% of Kiwis nationally aged 12 and over have had at lease one vaccination, and the Australian rate is now also at 85.8% of all 16 year olds and older.
GOLD HOLDS
In early Asian trading, gold is holding little-changed from this time yesterday, now at US$1786/oz.
EQUITIES QUIET AT END TO CAP A GOOD WEEK
The NZX50 is marginally firmer late in its session, but only up +0.1%. For the week it is heading for a +1.0% gain. The ASX200 is flat in early Friday afternoon trade, and heading for a +0.7% weekly rise. The very large Tokyo market has opened today up +0.2% in morning trade but is facing a -1.1% weekly retreat. Hong Kong has opened up +0.4% and heading for a stellar +3.7% weekly rise, but Shanghai has opened up +0.1% in their opening trade and if that holds it will have a +0.8% weekly gain. The S&P500 started out limp, but ended stronger at the end of its Thursday session, up +0.3%. For the first four days of the week it is up +1.7%.
SWAP & BONDS RATES STEEPEN FURTHER
We don't have today's closing swap rates yet. They probably flat-lined. The 90 day bank bill rate is unchanged at 0.74% as markets work out the pace of coming OCR rises. The Australian Govt ten year benchmark rate is now at 1.83% and down -1 bp from where we were this time yesterday. The China Govt 10yr is now at 2.99% and down -3 bps. The New Zealand Govt 10 year rate is now at 2.44% and unchanged. That leaves them just above the earlier RBNZ fix for that 10yr rate at 2.43% (+6 bps). The US Govt ten year is up +3 bps from this time yesterday at 1.69%.
NZ DOLLAR FIRMER AGAIN
The Kiwi dollar is up again, now to 72.6 USc and a further +50 bps gain in a day. Against the Aussie we are firmer at 96 AUc. Against the euro we are slightly lower to 61.6 euro cents. The TWI-5 is now at 75.1 and still well above the top of the 72-74 range we have been in for most of the past eleven months.
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BITCOIN SLIPS
The bitcoin price is now at US$62,763 -2.7% lower than this time yesterday. Volatility in the past 24 hours has been high at just over +/- 3.7%.
This soil moisture chart is animated here.
Keep ahead of upcoming events by following our Economic Calendar here ».
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