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%.
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
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.
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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.
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