Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
BNZ cut its two year rate to 3.54%.
TERM DEPOSIT RATE CHANGES
Christian Savings changed rates.
SERVICES SHOWING RESILIENCE
The BNZ-BusinessNZ PSI came in little-changed in August. This is positive because their factory PMI data was quite weak. Given that the service sector is so much larger than the factory sector, this should help to hold up Q3 GDP. (Q2 GDP is due to be released on Thursday and growth at the uninspiring rate of +2.1% is expected, down from the Q1 gain of +2.7%.
A GLOOMIER BUNCH
The NZIER's survey of economists' forecasts shows a gloomier mood is setting in to this group. Growth expectations are lower, near-term prospects for household spending are down, residential investment intentions are lower, and they think export prospects will be lower too..
YOUI NZ POSTS BIG PROFIT DROP
Insurer Youi has posted a 78% drop in June year profit from its NZ business to $2.376 million. The fall comes after a big reduction in "management fees received from group companies" to $8.407 million from $29.645 million. Youi's gross loss ratio for the year was 50% down from 63% the previous year.
MORE CORPORATE BONDS
Metlifecare has signalled that it about to issue up to $100 mln in seven year "secured unsubordinated" fixed rate bonds. It will be priced at the seven year swap rate on the day, plus an indicative Issue Margin of 1.80% to 1.90% per annum. Today, seven year swaps are at 1.23% so it might pay about 3.08% pa. In any case, they have said it won't be less than 3%. The actual rate will be set on Friday, September 20, 2019.
In Hong Kong, China is turning its proxies on to the street demonstrators, resulting in ugly street brawls in some parts of the city. Hong Kong's equity markets are falling under their own local stress, down -1% so far today. Shanghai is little changed; Tokyo is up more than +1%.
SWAP RATES TAKE A BREATHER
Somewhat surprisingly (to me at least) wholesale swap rates are barely changed across all tenors. The 90-day bank bill rate is unchanged at 1.14%. Australian swap rates are also unchanged. The Aussie Govt 10yr is up +7 bps at 1.23%. The China Govt 10yr is up +4 bps at 3.13%, while the NZ Govt 10 yr is up another +2 bps to 1.37%. The UST 10yr yield is at 1.90% and where it finished on Wall Street before the Mid-East attack event.
NZ DOLLAR HOLDS WEAK
The Kiwi dollar is also little-changed at just on 63.8 USc. Against the Aussie we are still weak at 92.9 AU cents. Against the euro we have fallen to 57.6 euro cents. That puts the TWI-5 down at 68.9 but unchanged from where we opened this morning.
Bitcoin is at US$10,366 and virtually unchanged from this time on Friday. The bitcoin price is charted in the currency set below.
This chart is animated here.