Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
No changes to report today.
TERM DEPOSIT RATE CHANGES
Kiwibank added +10 bps to their one year TD rate taking it to 2.20%. SBS Bank had increases to rates from 6-18 months, taking their one year rate to 2.25%.
'LOWLY STABLE'
The final consumer confidence survey for the year is out, this one from ANZ Roy Morgan. It reports little change at a low level, up +1.7 points. The proportion of people who believe it is a good time to buy a major household item rose +6 points to 0, after three months in the red. Inflation expectations were little changed at 5.6%. House price inflation expectations fell another -0.6% pts to 5.3%.
STABLE & STAYING HIGH
Dairy prices at the latest auction slipped -1.5% overall in USD. This drop was solely because WMP dropped -3.3%. All others rose, like SMP which was up +0.6%, cheddar prices are up +0.5%, and the cream group prices were higher again.
CLOSING THE GAPS II
The Government is asking the Productivity Commission to look at why there is persistent disadvantage in some communities. They have been asked to draw on Te Ao Māori approaches, including applying a collective as well as an individual lens to research and analysis, and the principles of mana motuhake (collective/self-reliance), rangatiratanga (independence) and mātauranga Māori (Māori-specific knowledge). The terms of reference are here. The Commission’s final report to Government is due in March 2023.
FINANCIAL INSTITUTIONS EARN $10 BLN IN TAX PAID PROFITS
Updated data via the RBNZ shows the insurance industry earned $3.7 bln over the past year, after paying just over $1 bln in tax here. That puts them in the league with banks who earned $6.35 bln after tax after paying $2.5 bln in income tax in the same period. Between the two, that is $10 bln in tax-paid income after paying $3.56 bln in tax. Almost all this income was earned by Australian-owned institutions.
LOCAL PANDEMIC UPDATE
In Australia, pandemic cases in Victoria were 1503 reported today. There are now 13,888 active cases in the state - but there were another 6 deaths today. In NSW there were 3763 new community cases reported today, and another big jump, with 21,991 active locally acquired cases, and 2 more deaths. Queensland is reporting 79 new cases. The ACT has 58 new cases. Overall in Australia, 89.6% of eligible Aussies are fully vaccinated, plus 3.5% have now had one shot so far. There are increasing reports of testing and hospital facilities being overwhelmed by demand. In contrast, there were no Omicron cases in New Zealand at the border, and 56 new community cases today. Now 90.8% are double vaxxed, 94.6% of Kiwis nationally aged 12+ have had at least one vaccination, and the equivalent Australian rate is now at 93.1% of all aged 12+.
GOLD ON HOLD
In early Asian trading, gold is at US$1789/oz and just -US$1 lower than this time yesterday.
EQUITIES MOSTLY POSITIVE
Wall street closed higher
SWAPS LITTLE-CHANGED
We don't have today's closing swap rates yet. They are likely to be little-changed. The 90 day bank bill rate is up +1 bp at 0.95%. The Australian Govt ten year benchmark bond rate is down -1 bp at 1.62%. The China Govt 10yr is little-changed at 2.87%. The New Zealand Govt 10 year bond rate is now at 2.26% and up +2 bps but still below the earlier RBNZ fix for that 10yr rate at 2.31% (up +2 bps). The US Govt ten year is now at 1.46% and another +3 bps firmer.
NZ DOLLAR FIRMS
The Kiwi dollar is now at 67.6 USc and back up +½c in a day. Against the Aussie we are also marginally firmer at 94.6 AUc. Against the euro we are up +40 bps at 59.9 euro cents. That means the TWI-5 is now just under 72.3 and off its recent lows.
Appreciate this coverage? Support us and go ad-free. Find out how.
BITCOIN RISES
The bitcoin price has risen to US$48,670 and +4.3% than this time yesterday. Volatility over the past 24 hours has been moderate however at just over +/- 2.8%.
This soil moisture chart is animated here.
Keep ahead of upcoming events by following our Economic Calendar here ».
Daily exchange rates
Select chart tabs
36 Comments
i am the only one who wonders why when it was injecting all the tax free money to banks to lend did not simply decide to invest $2-5 bill into Kiwibank instead ? if it was able to seriously compete sure more Kiwis would move - at least the profits would stay in NZ
The article specifically says they aren't our institutions. Practically all are foreign owned. They do nothing that cannot be done by a local firm. Their only job is to shovel as much money overseas as possible. An ODT article summed the problem up last week. " Fifty years ago, 80% of Southland bought groceries were made in Southland. Now it is 20%." That is the problem. We refuse to look after our locals, and are desperate to give our hard eaned money to foreigners.
"CLOSING THE GAPS: The Government is asking the Productivity Commission to look at why there is persistent disadvantage in some communities. They have been asked to draw on Te Ao Māori approaches, including applying a collective as well as an individual lens to research and analysis, and the principles of mana motuhake (collective/self-reliance), rangatiratanga (independence) and mātauranga Māori (Māori-specific knowledge)."
(This is the Government that has failed to tax wealth and property, failed to commit itself to building 100,000 state houses for secure lifetime income-related rent by all who want them, failed to make health care free, comprehensive, accessible, and timely, failed to implement the recommendations of the Welfare Expert Advisory Group, and failed to introduce a universal Unconditional Basic Income.)
According to this Labour Govt it’s not their fault that they have failed to provide govt housing, Kiwibuild or good hospital care for Maori, or other practical real-world helps. No, they say - the problem is due to all NZ businesses and organisations not integrating matauranga Maori into all their policies and conducting more business in cultural terms etc. So it’s somebody else’s fault for the gap.
Hey, productivity commission, could you piss away a year or two exploring why our tax and policy settings lead to money accumulating in the pockets of wealthy people? Just make sure you come back with some recommendations for more plans and strategies. Miri Kirihimete, Labour.
Mortgage lending drying up according to ANZ.
“new consumer lending protections legislation seeing mortgage lending rapidly drying up…”
https://www.anz.co.nz/about-us/economic-markets-research/property-focus/
I assume ANZ and other banks would be monitoring their own decreases in home loan lending starting this month? Are they happy with this loss of business?
Mortgage lending protections, high interest rates, over valued housing market, big supply increases, empty auction rooms, brightline extended, more tax on rent. Yet almost all are predicting flat house prices. Sounds much worse than that to me.
Even if prices were flat, why would investors hang in there with a tiny taxed yield that is hard work, especially if interest rates at the bank start to earn more.
I think its all starting to catch up. The reality that more credit is needed to further extend to prices, is now bumping against the nations dogged determination for never ending yearly gains. We are such a bunch of morons.
Its gone from what 70% clearance rates, down to sweet bugger all in say 4 months? Most properties on trade me now with prices or via negotiation. Some on my watchlist from auctions 1-2 months back.
And we've only just started on rate rises. Wait and see if the Fed puts up rates and see what happens to basically everything at that point. We could be in for a rocky ride next year. Good luck to anyone who is overly leveraged. Cause the vultures are circling... KAaaaaaARRRRRRKK!!
The immediate issue is not house prices, its more an emergency situation of lending being completely frozen. This is going to cause a major financial problem far bigger than 35% annual house price increases (as much as that is also a problem). This is going to have severe repercussions all down the line.
So bugger all cases in Auckland again today. The "experts" were predicting a big increase in cases with the traffic light system, are they ever right? I think I knew more about Covid when it first started than some of the experts do now:
1) It is basically like a flu but worse
2) Like flu it is seasonal
3) Like flu it is spread in the air (remember all that hand washing nonsense)
4) We would have a vaccine in a reasonable timeframe (I remember them saying 3 years minimum)
So now we are in summer with high vax rates and no community omicron, wouldn't this be a good time to relax restrictions? If not then when?
Once O Micron spreads then NZers will be locked up again, with all regions in red and no prospect of Q-free travel back to NZ. Then another variant hitting in May 2022, and so it goes on and on.
May as well plan for another year of working from home, Grant Robertson spreading more money everywhere, and zero overseas travel. And more blaming on the non-vaxed.
It’s about 4 weeks too late. And we will go right back into red once omicron leaks, possibly before New Years. I think the govt get it mostly right, but they are just a bit too cautious, they forget that they are imposing harsh restrictions on peoples lives and businesses, and it’s not fair when there is no pressure at all on the health system. The red traffic light should be for a serious threat to the health system, not a just in case.
Very delusional. He his perpetrating myths. COVID is NOT like flu. Flu does not leave blood clots in young healthy people. Lots of bugs are airborne - this is not a valid comparison. Seasonal - is more about the combination of factors that make it easier for any bug to survive, again a spurious comparison.
Reduce restrictions - why? People are still breaking the rules selfishly. COVID has appeared in Wellington (actually the Hut Valley). For it to have done that some selfish idiot has thought the rules don't or shouldn't apply the them, and lied or committed fraud to break them. Along the way they have brought COVID to their family and friends (and that is they type of friend they don't need!). These peoples identities when known, should be made public so they really do understand just what people think of them.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.