Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
TERM DEPOSIT RATE CHANGES
Kiwibank's had a bit of a trim (by 10 bps) of most of its rates, particularly at the longer end, with the 2-5 year rates all moving down to 2.5%. The six month rate's also dropped by 10 bps to 2.65%. However, the 9-month rate's been put UP by 5 bps (now the highest in the Kiwibank range) to 2.75%
MORE 'WELLBEING' BONDS ON THE MARKET
Housing NZ is dipping back into the bonds market seeking another minimum of $200 million from institutional investors that would take the amount of its 'Wellbeing Bonds' (maturity date October 5, 2026) up to a minimum of $700 million outstanding. An update issued later on Monday indicated the $200m was already "covered", while the issuer, Housing NZ, remained "open to upsize" the amount. The indicative issue margin range currently equates to an indicative issue yield of between 1.609% and 1.649%. The offer's due to close at 2pm Tuesday, or earlier at the issuer’s discretion. The offer is being ls being jointly lead-managed by ANZ and BNZ. The Wellbeing Bonds are a type of 'Sustainability Bond' that are also aligned with the New Zealand Treasury’s Living Standards Framework.
AUCKLAND'S BIGGEST REAL ESTATE FIRM GETS MODEST SALES LIFT
Auckland's largest real estate agency Barfoot and Thompson sold 824 residential properties in October, which was up 6.9% from the 771 it sold in September but down 6.8% compared to the 884 it sold in October last year. However, October's sales were still well ahead of where they were in October 2017 (634) and October 2016 (778). QV's October data are expected to be released in the middle of this week.
WESTPAC NZ MAKES $964 MLN PROFIT
Westpac New Zealand's annual profit rose 3% helped by a turnaround in bad debts and the sale of the bank's 25% stake in electronics payments processor Paymark. Westpac NZ also retained its accreditation as an 'internal models bank' after completing an extensive remediation process required by the Reserve Bank following regulatory breaches.
WESTPAC'S NZ CEO GETS 12.7% SALARY BOOST WHILE HIS BOSS TAKES A CUT
Meanwhile Westpac's NZ CEO David McLean saw his actual pay (including amounts awarded in prior years), as disclosed in the annual report (page 54) lift by 12.7% to just under A$2 million, after he had been given a 10.3% target remuneration lift this year to "align his remuneration to the market". Westpac CEO Brian Hartzer declined a short term incentive payment this year and saw his actual salary paid drop to a little over A$4 million from closer to A$5 million a year ago.
FMA GETS COURT SUPPORT IN FXBTG DECISION
The Financial Markets Authority is welcoming a High Court ruling upholding a direction by the FMA to de-register foreign exchange firm FXBTG Financial Limited. In June, the FMA directed the Companies Office, as the registrar of the Financial Service Providers Register (FSPR), to de-register FXBTG Financial because it wasn’t providing financial services to New Zealand customers.
EQUITY MARKET UPDATE
The NZX 50 was having a good day on Monday after some strong gains overseas at the weekend. The index was up nearly 0.6% at time of writing. Across the Tasman the ASX 200 was ahead by about 0.4%. Hong Kong and Shanghai were also up, but Tokyo was bucking the trend with some modest falls.
LOCAL SWAP RATES DRIVE HIGHER STILL
Wholesale swap rates have again risen strongly on Monday as the markets continue to unwind the belief that the Reserve Bank will cut the Official Cash Rate again next week. Swap rates were up mostly by between +4 bps and +6 bps. The two-year gained +4 bps to 1.06% while the 90-day bank bill put on +1 bp to 1.13%. Australian swap rates were by contrast marking time ahead of their central bank's call on rates due tomorrow. Mostly their swap rates slipped by -1 bp across the range. The Aussie Govt 10yr is up +1 bp to 1.14%. The China Govt 10yr is up +1 bp at 3.32%. The NZ Govt 10 yr yield gained +5 bps to 1.32%. The UST 10yr yield is up +2bp at 1.71%.
NZ DOLLAR MOVES UP
The Kiwi dollar gained more than quarter of a cent against the US currency from early Monday morning and at time of writing was a touch over 64.5 USc. Against the Aussie we have had a similar kind of gain to 93.3 AU cents, and ditto against the euro at just shy of 57.8 euro cents.
BITCOIN DROPPING AGAIN
Bitcoin was hanging in just above $9200, having dropped about 1.6% in the past 24 hours and over 4.3% in the past seven days. The bitcoin price is charted in the currency set below.
This chart is animated here.