Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
No changes to report today, so far.
TERM DEPOSIT RATE CHANGES
None here either
Factory sales were weak in the June quarter, led by meat and dairy manufacturing which fell in June after two strong quarters, Stats NZ said today. The volume of dairy and meat product manufacturing fell -8.2% in value after a +11% rise in March 2019. Year on year, the growth in overall manufacturing sales waned from +6.2% in Q2-218 to +1.3% in Q2-2019. BNZ says this data is "questioning the pulse of New Zealand’s GDP".
FIXING NZ'S CAPITAL MARKETS
The FMA has released a report on New Zealand's capital markets noting they are not working particularly well. They singled out problems with KiwiSaver and its focus, and capital markets that only work for larger companies. The report written by EY says it wants to see more capital flowing more efficiently to New Zealand enterprises, as well as providing more investment opportunities for a greater number of Kiwi investors.
Asian equity markets have opened flat today. Australia and New Zealand are no different. After falling steadily since the end of August, the Fonterra share rose +7c today to $3.25.
In Australia, July home loan growth surged and probably grew as fast in August. The July data shows a sharp turn up from June. After being down an average of -14% on a year-on-year basis in each of the first six months of 2018, July came in just -3% lower than the same month a year ago. On a seasonally adjusted basis, that represents almost a +4% rise from June. First home buyers are being given the credit for the turnaround. New lending to businesses, which didn't fall as hard in the first place, isn't bouncing back like households.
SWAP RATES SLIP
Wholesale swap rates are giving up a little of last week's sharp rise. The two year is down -1 bp, the five year is down -2 bps, and the ten year is down -4 bps. The 90-day bank bill rate is unchanged at 1.17%. Australian swap rates are little-changed in early trade, if anything softer. The Aussie Govt 10yr is down -4 bps to 1.05%. The China Govt 10yr is down -1 bp at 3.04%, while the NZ Govt 10 yr is down -3 bps to 1.16%. The UST 10yr yield is at 1.56% and where we left it at the end of trading last week.
NZ DOLLAR FIRMER
The Kiwi dollar is a little firmer, now at 64.3 USc. Against the Aussie we now just over 93.8 AU cents. Against the euro we are also up at 58.3 euro cents. That puts the TWI-5 up at 69.6.
Bitcoin is at US$10,405, hardly changed from where we opened this morning. The bitcoin price is charted in the currency set below.
This chart is animated here.