Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
Bluestone has raised both its floating and fixed rates today.
TERM DEPOSIT RATE CHANGES
Rabobank raised all their term deposit rates for terms between six and eighteen months.
DAIRY-DOMINANT REGIONS POSITIVE, EVERYONE ELSE GLUM
Westpac reports that regional economic confidence has plunged over the March quarter as households across the country were hit by the one-two punch of the Omicron outbreak and cost-of-living increases. Moreover, these effects were widespread – all but two regions are now in pessimistic territory. Only the Waikato and Southland have a net positive outlook.
AMANDA OWEN TO BE ANZ NZ'S ACTING CFO
ANZ NZ's Chief Financial Officer Stewart Taylor, who is leaving to become CFO of insurer Partners Life, will have his last day at the bank on April 14. Taylor's departure was announced earlier in the week with no leaving date provided. ANZ NZ says its Head of Finance, Amanda Owen, will be Acting CFO from March 28 until a new permanent CFO is appointed.
WHAT PRICE GREEN ALUMINIUM?
ANZ analysts are noting that the supply-issues for global aluminium are putting the remaining producers in a prime position - if they have the electricity supply. Although Russian aluminium itself is not sanctioned, their access to both electricity and bauxite is badly affected. As a result, aluminium buyers are scrambling to secure supply amid low global inventories and strong demand. The upside pressure on prices is likely to remain for the foreseeable future, they say. Does New Zealand benefit from this - or just NZAS?
THE BIG DO THE MOST, THE SMALL DO LITTLE
The results of a Statistics NZ business operations survey of 47,000 business found that while 80% were aware they were having an impact on climate change, only a third said they were doing something active (mostly "reducing waste"). Of the businesses doing meaningful things, most were large enterprises. And most businesses who say they are planning to do something meaningful in the next five years are large businesses. Interestingly, one industry doing major stuff and planning more is the mining industry, says Stats NZ. 16% of mining businesses currently measure GHG emissions, compared with 5% of manufacturing businesses. (Disclosure: interest.co.nz was part of the survey responses. We don't do anything or plan to do anything because it isn't clear what more we can do. I am sure there is something, so suggestions welcome. WFH has always been a part of our operations.)
DON'T LET THE FACTS GET IN THE WAY OF A FIRMLY HELD BIAS
We noted the other day from the 2020 national sector balance sheets that "financial institutions" made up less than 25% of all the assets in the country. And that this was less than in 2007 (26+%) when this series started and less than in 2010 (26+%), ten years earlier. However, here is some detail that might surprise you. Only 11.4% of those assets are at banks. The rest are scattered between insurers , investment funds, "others", pension funds, and "captive financial institutions" (at 5.4% and the largest of the non-banks). We may all grumble about 'bank dominance' but this data clearly shows they and most sectors are getting smaller over time - except households.
RATE RISE KERFUFFLE
Mexico raised its policy rate by +50 bps today, now up at 6.50%. What makes this news is that the Mexican president talked about it hours before the official announcement, confirming there is little central bank independence there.
GOLD UP
In early Asian trading, gold is up +US$15 from this time yesterday at just under US$1962/oz. It ended in New York earlier at US$1957/oz and in London last night at US$1965/oz.
EQUITIES BOOKING IN A POSITIVE WEEK, MOSTLY
The S&P500 ended their Thursday trading up +1.2% with a positive finish at the end. Tokyo has opened today down -0.2% and if it ends like that it will be a good +4.6% weekly rise. Hong Kong has started down -0.2% and if that holds they will be up +0.4% for the week. Shanghai has started up +0.2% and if that holds they will end their week flat. The ASX200 is up +0.5% in early afternoon trade and heading for a weekly gain of +1.7%. But the NZX50 is flat in late trade and heading for a -1.4% weekly loss.
SWAPS SWING BACK HIGHER
We don't have today's closing swap rates yet. They are likely to have risen today. The 90 day bank bill rate is unchanged at 1.57%. The Australian Govt ten year benchmark bond rate is back up +7 bps from this this time yesterday at 2.77%. The China Govt 10yr is back down -2 bps at 2.83%. The New Zealand Govt 10 year bond rate is now at 3.34% (up +6 bps) and now lower than the earlier RBNZ fix for that 10yr rate at 3.35% (up +9 bps). The US Govt ten year is now at 2.37% and a +5 bps rise since this time yesterday. It ended last week at 2.14% so there has been a big +23 bps shift higher so far this week, with one day to go on Wall Street.
NZ DOLLAR HOLDS
The Kiwi dollar is now at 69.7 USc and little-changed this time yesterday. Against the Aussie we are down -30 bps at 92.7 AUc. Against the euro we are slightly softer at 63.2 euro cents. That means the TWI-5 is still just on 74.9.
BITCOIN UP STEADILY
Bitcoin is up another +2.3% from this time yesterday, now at US$44,032. Volatility over the past 24 hours has been modest at just over +/- 1.8%.
This soil moisture chart is animated here.
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