Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
None to report today.
TERM DEPOSIT RATE CHANGES
None here either.
RBNZ's 'FRIEND' ADDS STIMULUS
The Government has announced an extra $6.8 bln to be allocated towards transport infrastructure. New capital spending won't get out the door until 2021. Treasury forecasts lower tax revenue and weaker economic growth. The NZD initially rose, then softened as the implications became clearer. Wholesale interest rates did the same. Ratings agency S&P says New Zealand's AA rating is unaffected by the higher government spending and weaker economic conditions that are weighing on fiscal outcomes. "We believe this can be accommodated within the current rating and net debt threshold."
RETAIL SALES STRONG
Retail card sales have the strongest rise since January 2017. They bounced back strongly in November 2019, Statistics NZ says, with much more spent on long-lasting goods such as recreational, hardware, and appliances, as well as food and drink. Overall on a non-seasonally adjusted basis, these retail sales are up +5.1% from the same month a year ago (despite the fuel component being down -4.8% in the same period). That was the strongest rise since October 2018.
In Australia, officials at the Bureau of Meteorology have advised the State and Federal Governments that NSW will now get no rain until April 2020.
CREDIT RATING RAISED
S&P Global Ratings has raised its long- and short-term ratings one notch for Christchurch City Holdings to AA- from A+. The outlook is stable. They are Christchurch City Council's investment holdings company.
DAIRY A BIG PART OF CHINA URBAN GROWTH
In China, dairy products are a key part of the high growth convenience stores are experiencing there. Dairy products in particular, which tend to be more costly than other food items, were gaining popularity among Chinese consumers with high personal income, and those living in tier one cities. They are part of a new billion dollar trend. The sector is growing fast. Convenience, coupled with rising urbanisation, will see momentum and good growth for years to come.
LOCAL SWAP RATES UP
Wholesales swap rates have moved up today. The two and five year tenors are up +2 bps and the ten year is up +3 bps. The 90-day bank bill rate is unchanged at 1.19%. Australian swap rates are firm too and similar to New Zealand. The Aussie Govt 10yr is up +3 bps today to 1.15%. The China Govt 10yr is still unchanged at 3.23%. The NZ Govt 10 yr yield is down -2 bps at 1.52%. The UST 10yr yield is up +2 bps to 1.84%.
NZ DOLLAR STILL FIRM
The Kiwi dollar is marginally lower at 65.4 USc. Against the Aussie we are still at 96 AUc. Against the euro we are holding at 59 euro cents. That means the TWI-5 has dipped marginally to 70.6.
BITCOIN DOWN AGAIN
Bitcoin is now at US$7,231 and -1.3% lower than this time yesterday. The bitcoin price is charted in the currency set below.
This chart is animated here.