Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
Nothing to report today.
TERM DEPOSIT RATE CHANGES
We accidentally missed it, but the Co-operative Bank has also cut most of its term deposit rates yesterday.
The World Economic Forum's Global Competitiveness Report for 2019 has placed New Zealand at 19th, down one place from 2018. The US has fallen from #1 to #2 with its score falling a rather large -1.9 points. Also falling is Germany which fell -1 point. Top of the heap is now Singapore. This survey includes 140 countries and involves 13,000 surveyed people.
ANZ's truckometer report for September was out today. Their Heavy Traffic Index has had its weakest quarterly growth in 7 years, suggesting GDP growth will be weak in Q3. Their Light Traffic Index held steady in the month but remains in a trend decline.
STRENGTHENED REGULATORY ROLE FOR NZTA
Transport Minister Phil Twyford says the Government's strengthening the New Zealand Transport Authority’s regulatory role following a review. Twyford says the review, by Martin Jenkins, found under the previous National-led government NZTA focused on building roads at the expense of keeping people safe. Thus the Government will create a statutory Director of Land Transport responsible for carrying out NZTA’s regulatory functions and powers, get NZTA's board to develop a new regulatory strategy, instruct the Ministry of Transport to update NZTA’s regulatory objectives, functions and powers, and inject up to $45 million into NZTA’s regulatory function.
MAKING EVERYONE GLOOMY
Take a look at the chart in the link here; The Westpac MI consumer sentiment index in Australia has fallen hard and is now at a four year low. The leaking away of confidence since the RBA rate cuts is stark - they are doing exactly the opposite of the regulatory intention. Now we have both the business sentiment sinking after the rate cuts, and now consumer sentiment as well. Lets hope the RBA stops cutting soon.
INVESTORS SHUN RISK
Earlier today, Wall Street took fright and ended up down -1.6% on the day, taking the October decline to -2.8% in just six trading days. That has unnerved Tokyo which is down -0.9% at the open, Shanghai was down -0.6% at the open but has now moved up into positive territory, and Hong Kong is down -0.2%. Locally, the ASX200 is down -0.7% in mid-day trade and the NZX50 is looking at a -0.5% retreat.
SWAP RATES HOLD
Wholesale swap rates are up +1 bp today across the curve. The 90-day bank bill rate is unchanged again at 1.04%. Australian swap rates are unchanged. The Aussie Govt 10yr is up +2 bps at 0.89%. The China Govt 10yr is unchanged at 3.14%. The NZ Govt 10 yr is up +2 bps at 1.04%. The UST 10yr yield is down -3 bps to 1.54%.
NZ DOLLAR FIRM
The Kiwi dollar has held it levels in the face of the equity risk retreat and is still just on 63.1 USc. Against the Aussie we are firm at 93.7 AU cents. Against the euro we are at 57.6 euro cents. That puts the TWI-5 up to just on 68.7.
Bitcoin is marginally weaker today US$8,167 after yesterday's strong rise. The bitcoin price is charted in the currency set below.
This chart is animated here.