Here are the key things you need to know before you leave work today (or if you already work from home, before you shutdown your laptop).
MORTGAGE/LOAN RATE CHANGES
The Cooperative Bank trimmed fixed rates today. That was followed by SBS Bank who also cut fixed rates, the most interesting being the emergence of a 5.99% fixed rate for two years fixed, a market-leading 2 year rate. Update: Westpac has also cut rates. We have more on this here. All rates are here.
TERM DEPOSIT/SAVINGS RATE CHANGES
The Coop Bank also cut TD rates. Update: Westpac cut too. A full review of all recent bank changes is here. All updated rates less than 1 year are here, for 1-5 years, they are here.
ABOUT TO HIT TARGET?
An influential RBNZ survey gives an effective green light to interest rate reductions with expectations of inflation from one to 10-year's time all falling markedly and towards the RBNZ's 2% goal.
VOLUMEs RETREAT
ANZ said card transactions among its customers remains very weak in July. Year-on-year growth overall was just +0.3%, suggesting sales volumes are still falling. Spending on durables, discretionary spending categories, clothing and categories related to the housing market remains particularly weak. However, spending in many housing categories lifted in July after falling sharply in June, they said
NZGBs GET GOOD DEMAND
More than $1 bln was bid in 97 bids for the $500 mln NZGB bonds available today. 49 were successful. Interestingly, the May 2041 bond, the one that 'failed' at the last attempt six weeks ago was very successful today with an average yield of 4.66% (and down from 5.05% at that last attempt.
REGULATORS & INDUSTRY SET VISION FOR INSURANCE SECTOR
A key group of New Zealand financial regulators has set what it's describing as a vision for the insurance sector, saying it wants it to be "forward-looking, fair, stable, competitive and efficient, promoting informed and confident participation by consumers and business." This comes from the Insurance Forum within the Council of Financial Regulators (CoFR). CoFR includes the FMA, RBNZ, the Treasury and Commerce Commission, and its Insurance Forum also features MBIE, the Natural Hazards Commission, ICNZ, Financial Services Council and Financial Services Federation. The FMA's Clare Bolingford, who chairs the CoFR Insurance Forum, says; "With the increased frequency of weather-related events, supply chain challenges and cost of living pressures, it is more important than ever that financial regulators and the industry come together to help New Zealanders understand and manage their risk...The vision will provide a common reference point for the Forum when discussing and prioritising issues, including insurance accessibility and affordability, insurance literacy, and building greater resilience."
BETTER RESULTS
Meanwhile Tower said its profits will be above its earlier guidance in part because weather/climate claims will come in low this year. And they are winning more business than expected.
$3.5 MLN FINE FOR ANTI-COMPETITIVE LAND COVENANTS
The Commerce Commission has won its case against Foodstuffs NZ for blocking rivals. The Wellington High Court has penalised Foodstuffs North Island $3.25 million for lodging anti-competitive land covenants with the purpose of blocking competitors. In handing down his judgment today, Justice Radich described the conduct as “deliberate” and “serious”. He said it reflected a deliberate effort to hinder rivals from opening new supermarkets or developing existing ones at three locations in the Lower North Island - Newtown and Petone in Wellington and Tamatea in South Napier.
SWAP RATES LOWER (?)
Wholesale swap rates are probably much lower at the short end. The better-than-expected signals from yesterday's HLFS is counteracted by today's inflation expectation data so plenty of influences and the latest likely drove them lower. Our chart below will record the final positions. The 90 day bank bill rate is actually up +9 bps at 5.44%. The Australian 10 year bond yield is up +6 bps from this time yesterday to 4.14%. The China 10 year bond rate is unchanged at 2.15%. The NZ Government 10 year bond rate is down -3 bps at 4.36% and the earlier RBNZ fix was at 4.34% and up +5 bps from yesterday. The UST 10yr yield is up +2 bps from this time yesterday at 3.92%. Their 2yr is now at 3.96%, so that curve is now only inverted by just -4 bps.
EQUITIES MOSTLY TREAD WATER
The NZX50 is down -0.8% in late trade today. The ASX200 is down -0.3% in Thursday afternoon trade. Tokyo has risen a minor +0.2% at its open. Hong Kong is up +0.3%. Shanghai is down -0.1% in its opening trade. Singapore is up +0.1%. Wall Street closed its Wednesday trade down -0.8% after it could not sustain another rise.
OIL UP
The oil price is up +US$2.50 from this time yesterday at just under US$72.50/bbl in the US, and at just under US$78.50/bbl for the international Brent price.
CARBON PRICE STILL ON HOLD
Today the carbon price is still holding at $52.50/NZU today little-changed from yesterday. See our new daily chart tracker of the NZU price for carbon, courtesy of emsTradepoint.
GOLD UP A LITTLE
In early Asian trade, gold is up +US$7 from this time yesterday at US$2390/oz.
NZD HOLDS
The Kiwi dollar has risen a minor +10 bps from this time yesterday, now at 60.1 USc. Against the Aussie we are also holding at 91.7 AUc. Against the euro we are-10 bps softer at 55 euro cents. This all means the TWI-5 is at still at 68.8.
BITCOIN HOLDS
The bitcoin price is little-changed from this time yesterday, now at US$57,345. Volatility of the past 24 hours has been moderate at just on +/- 2.8%.
USE OF AI
No articles on this news service are produced with AI. Occasionally we use AI to derive images. They are always identified in the attribution.
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