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A review of things you need to know before you go home on Monday; minor rate changes, rents up, IRD on warpath, log prices up, credit conditions tighten, swap rates leap, NZD holds, & more;

A review of things you need to know before you go home on Monday; minor rate changes, rents up, IRD on warpath, log prices up, credit conditions tighten, swap rates leap, NZD holds, & more;

Here are the key things you need to know before you leave work today.

MORTGAGE RATE CHANGES
No changes to report today, apart from an HSBC adjustment lower for their six month fixed rate, taking it down to 4.19%, a cut of -46 bps.

TERM DEPOSIT RATE CHANGES
None here either.

RENT RISES HIT LOWER PRICED UNITS
Auckland realtor Barfoot & Thompson says rents on two bedroom properties in the region have increased the most over the last year,, up +4.1%, while rents on larger homes have been almost flat. The average rise in Auckland is $16/week they say.

IRD ON THE WARPATH
IRD staff have searched several Central Otago businesses and made unannounced visits to others, as part of its current "hidden economy campaign" targeting the hospitality sector. Café, restaurants, bars and takeaways are the focus of the renewed campaign which follows the successful prosecution of five siblings in the Thai House case.

DON"T WANT YOUR LOCAL VALUE
Log prices are recovering in a seasonal upturn as demand in China picks up. But prices and demand for sawn timber (products where 'value' is added locally) are languishing.

CREDIT CONDITIONS TIGHTEN
The RBNZ Credit Conditions monitoring shows that for mortgages credit conditions are still positive but tightening. They have tightened very fast for dairy farmers although for sheep and beef farmers, banks are much more receptive.

CENTRAL BANKING PROFITS
The RBA has released ist annual financial statements showing it made a profit of AU$4.5 bln in the year to June. That compares with the RBNZ result which booked a profit of NZ$243 mln in the same period.

EQUITY MARKET UPDATE
After yesterday's modest gains, the Shanghai equity market has opened today lower, giving up most of them. Hong Kong has opened flat. But Tokyo is building of yesterdays momentum today. The ASX200 is also flat (Aussie dairy company results haven't helped), while the NZX50 is booking some gains today after a string of weak performances.

SWAP RATES JUMP
Wholesale swap rates have leapt back up today, and establishing a yo-yo pattern. The two year is up +5 bps, the five year is up +8 bps, and the ten year is up +10 bps. Regular readers will know these are huge moves and strongly steeper. The 90-day bank bill rate is unchanged at 1.06%. Australian swap rates are up about +4 bps today. The Aussie Govt 10yr is up +7 bps to 1.16%. The China Govt 10yr is up +5 bps at 3.30%. The NZ Govt 10 yr is up +9 bps at 1.30%. The UST 10yr yield is up +6 bps from yesterday at 1.86%.

NZ DOLLAR HOLDS
The Kiwi dollar is marginally firmer than this time yesterday at 63.6 USc. Against the Aussie we are unchanged at 93 AU cents. Against the euro we are little-changed at 57.4 euro cents. That means the TWI-5 is at 68.7

BITCOIN HOLDS HIGHER
Bitcoin is at US$9,278 and holding most of the higher levels it jumped to yesterday although it is down -1% from this morning. The bitcoin price is charted in the currency set below.

This chart is animated here.

Daily exchange rates

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Daily benchmark rate
Source: RBNZ
Daily benchmark rate
Source: RBNZ
Daily benchmark rate
Source: RBNZ
Daily benchmark rate
Source: RBNZ
Daily benchmark rate
Source: RBNZ
Daily benchmark rate
Source: RBNZ
Daily benchmark rate
Source: RBNZ
End of day UTC
Source: CoinDesk

Daily swap rates

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Opening daily rate
Source: NZFMA
Opening daily rate
Source: NZFMA
Opening daily rate
Source: NZFMA
Opening daily rate
Source: NZFMA
Opening daily rate
Source: NZFMA
Opening daily rate
Source: NZFMA
Opening daily rate
Source: NZFMA

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2 Comments

UK and territories are 'greatest enabler' of tax avoidance, study says

The index scores each country’s system based on the degree to which it enables corporate tax avoidance, combined with the scale of its corporate activity, to determine the share of global corporate activity put at risk of tax avoidance by the country.

At the top of the list was the British Virgin Islands, followed by Bermuda and the Cayman Islands – all British overseas territories.

Growth in lending to all major sectors increased, with claims on non-bank financial institutions (NBFIs) continuing to expand the most rapidly at 13% year-on-year

"The majority of this new lending to [non-bank financial institutions] was directed towards a few financial centres, such as the Cayman Islands ($37 billion), the United Kingdom ($34 billion) and Luxembourg ($24 billion)": https://www.bis.org/statistics/rppb1910.htm … #ShadowBanking Link

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"Rates leapt back up again ".. it doesn't take much to turn the tide..

Yday HSBC declared a 18%drop in profit.. these rises will be hurting the banks..

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