Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
ANZ and TSB have both dropped one year fixed mortgage 'special' rates. The ANZ offer is 2.99% while the TSB offer is 2.89%. Details here. The Cop-op has reduced rates. Westpac has matched ASB with 2.99% for two years fixed. More details here.
TERM DEPOSIT RATE CHANGES
ANZ cut its term deposit offers hard, mostly by -15 or -20 bps to record low rates across their card. But they left their longest terms unchanged, reinstating a premium for term.
(VERY) SMALL BUSINESS (VERY SMALL) LOANS
Applications are open today for the Government’s Small Business Cashflow scheme, making loans available to small businesses struggling with loss of revenue due to COVID-19. The IRD will administer this scheme, handling loan applications, and payment and repayments. Details about this scheme and application forms are here. This is not really an SME scheme, it's more a scheme for Micro businesses.
LOSS CARRYBACK SCALE
In an update, the Government has revealed that $62 mln in tax refunds have been paid in the first week that scheme has been in place. 676 businesses have applied under the loss carry-back provisions so far. It is a scheme they thought will top out at $3 bln so 98% remains to be delivered.
MORE CAPITAL, LESS BANK DEBT
Z Energy has successfully raised $290 mln in a fully underwritten 100 mln new share offer to existing shareholders who took 95% of the discounted offer. The funds will pay down bank term debt (Facility A), and as at March 2020 they had bank facilities comprising a $180 mln revolving term debt facility drawn to $180m plus a $350 mln working capital facility drawn to $70 mln, both maturing in December 2021.
SENTENCED
A former Auckland Council employee has been sentenced to five and a half months’ home detention for corrupting a council procurement process for financial gain involving a $7,500 kickback. He had plead guilty.
SLOWING TO A CRAWL
ANZ's truckometer data for April was released today "The Light Traffic Index fell 71.1% m/m in April, while the Heavy Traffic fell 45.0% m/m. The month included 27 days of Level 4 lockdown and 3 days of Level 3. This will mark the low point, with both heavy and light traffic seeing a big step up as a result of the move to Level 3, and another jump expected for Level 2."
BNZ EYES "CHANGES" AT 7 URBAN BRANCHES
BNZ says it's looking to make "changes" to seven urban branches, and is consulting with staff at its Parnell, Penrose, Glen Eden, 262 Queen Street, Karori, Cashel and Fitzgerald, and Russley branches. A BNZ spokesman says the bank continually reviews the footprint of its branch network to best meet customer needs, and is "consulting with our people on a plan to make some changes" in the branches named above. The seven branches have experienced "significant declining usage" as digital banking or other nearby branches within a 10 minute drive, are used instead, the BNZ spokesman says. Staff affected by changes will be offered other roles. BNZ currently has 152 branches.
FREE TRADE HYPOCRISY
China has halted to meat imports from Australia in what is being viewed as more economic coercion over the Aussie government's push for a "Wuhan investigation". That's how Canberra sees it anyway. The meat trade is in addition to the barley trade. Apparently what really sticks in China's commercial craw is the Australian's slapping anti-dumping levies on Chinese steel and aluminium. But how can they be 'dumped' if their are essentially Australian iron ore and bauxite? So the Australian want to sell to China at a high price, but don't want to buy the resulting products at a price lower than their domestic feather-bedded industry can tolerate. And then Canberra talks up 'free trade'. You can understand the Chinese exasperation over the double-talk. All very Trumpish.
LOCAL UPDATE
There are 1497 Covid-19 cases identified in New Zealand, with no new cases yesterday, a fall from +3 the prior day. Twenty-one people have died (unchanged). There are still only two people left in hospital with the disease (unchanged), and none are in ICU. Our recovery rate is now just over 93% with 99 people known to be infected (-12) and 76 of those are in 12 active clusters. That means 23 cases are recovering in self isolation in the community (-5 from yesterday).
UPDATED GUIDANCE
The RBNZ and FMA have issued guidance to the financial industry on how to operate in L2.
AUSTRALIA UPDATE
n Australia, there are now 6948 cases (+7 since yesterday), 97 deaths (unchanged) and an unchanged recovery rate of just under 89%. 49 people are in hospital there (+6) with 16 in ICU (-1). There are now 769 active cases in Australia (-5).
GLOBAL UPDATE
The latest compilation of Covid-19 data is here. The global tally is now 4,175,300 and up +74,000 from this time yesterday, which is an unchanged level of growth. Now, just over 32% of all cases globally are in the US, which is up +18,000 since this time yesterday taking the total to 1,347,400 and the only country to exceed 1 mln cases. This is an unchanged level of increase. US deaths have reached 80,400. Global deaths are about to exceed 286,000. Sweden is getting about 500 new cases per day, the same level as Western European countries ten times its size. The UK is still getting 5000 new cases a day, a per capita rate similar to Sweden. Denmark, Finland and especially Norway seem to have crushed their curves.
EQUITY UPDATES
The S&P500 ended its session earlier unchanged. Earlier, European markets closed about -1% lower on average. Shanghai has opened -0.5% lower, Hong Kong about -1.4% lower, and Tokyo is flat. The ASX is currently also -1.4% lower while the NZX50 is holding a +0.3% and unusual gain in late trade.
SWAP RATES UPDATE
Wholesale swap rates started the week little-changed. We don't have wholesale swap rates movement details today yet. We will update this later in the day if they show a significant movement. The 90-day bank bill rate is unchanged at 0.26%. The Aussie Govt 10yr is down -2 bps to 0.95%. The China Govt 10yr is unchanged at 2.65%. The NZ Govt 10 yr yield up +2 bps to 0.61%. The UST 10yr is little-changed today at 0.69%.
NZ DOLLAR HOLDS
The Kiwi dollar slipped overnight but hasn't changed much today and is now at 60.7 USc. Against the Aussie we are up slightly to 94.1 AUc. Against the euro we are marginally softer at 56.2 euro cents. That means the TWI-5 is down to 66.9.
BITCOIN SOFT
The price of Bitcoin holding its lower level at US$8,670 and down -1% from this time on yesterday. The bitcoin price is charted in the currency set below.
This soil moisture chart is animated here.
The easiest place to stay up with event risk today is by following our Economic Calendar here ».
65 Comments
There may never be a vaccine
https://www.zerohedge.com/health/boris-johnson-there-may-never-be-covid…
Virus discussion
Uncommon Knowledge.
Maybe Bill is more your flavour though Boris does have first hand experience.
https://youtu.be/28I5WyLp15o
Bill Maher.
"Bill Maher is an American comedian, political commentator, and television host."
Hmm, don't see anything remotely like virologist, epidemiologist or medical researcher of any sort in that lot. Perhaps a source with some credibility on virii, treatments or genetics might be relevant?
Nah, all day, every day, this one
https://www.youtube.com/watch?v=XSov46nb5v0
There is no recovery in China...
https://www.bloomberg.com/news/articles/2020-05-12/china-factory-deflat…
Re the Auckland Council guy jailed for corrupting a procurement procedure, if we bring in people from countries all around the world where corruption and bribery is a daily thing, from top to bottom, then we are going to see more of this.
NZ is lucky to have very low levels of corruption, but this is rare. Most countries have a lot more corruption than here.
we have plenty of fraud here in nz, these are only the ones convicted many get let go without a court case
the ports of Auckland one was a doosy
https://www.stuff.co.nz/business/113971538/ports-of-auckland-fraudster-…
http://www.verify.co.nz/news-theftnz.php
we have plenty of fraud here in nz
Yes. I have the feeling this guy was thrown under a truck. Notice how Granny Herald and the courts focus on protecting NZ's reputation as being corruption-free.
You also have to ask yourself why the council needs 22,000 USB memory sticks. It's 2020. It doesn't make sense for people to be using USB as a data storage device.
The second one is a good source, but I was curious that you chose the first one...
Litia Vuniduvu took more than $360,000 from Ports of Auckland and spent the money on clothes, travel and her Fiji-based business.
Agree we have corruption and theft here too. We're not perfect. But having lived in multiple developing countries for years at a time, there are still MASSIVE differences in corruption levels and normalcy.
I am not so sure. Yes a lot of countries are openly corrupt "Give me cash and I will give you ...". But this is not necessarily a bad thing. You know it exists, you know what you get, and it is essentially a business transaction outside of Govt reach.
NZ also has blatant corruption, you will hear it referred to as networking, "contacts", relationship management, and "who you know".
They are both essentially the same thing.
This looks like it's written by someone that doesn't know real corruption from simple networking. The former reduces the effectiveness and independence of institutions, turning them into dens of thieves trying to out do each other in a race to the bottom (who can get paid the most, without getting caught). Networking is simple a test of your EQ and relationship skills, both quite important skills in almost any workplace. Coining this as "corruption" is a bit of a stretch, more like "I know someone who is really good at this...". It only strays into corruption when people are hired without the skills to do a job and there is no accountability - which isn't that common. Even then they can often develop the skills needed if they are clever enough.
If you haven't experienced real corruption first hand, I don't think you are qualified to write about it. RickStrauss is right, it's shocking the effect institutional corruption has on developing countries and it's one of the obvious things that keeps them as developing countries. It literally ruins their societies as there is little trust between the public and service providers, it breaks the social contract. You fear all government agencies if you cannot pay, they become vassals of the rich and powerful. Having also experienced it first hand I can tell you it is soul destroying having come from a country of relatively no corruption, to see friends trying to survive in such societies.
I have travelled extensively and worked in many countries. I know corruption. We have it here.
"It only strays into corruption when people are hired without the skills to do a job and there is no accountability - which isn't that common. "
This is the salient point. It is incredibly common. Jobs, rental accommodation, that last kilo of flour or bag of toilet paper stashed away in the back room for a mate/family member. Rather than pay in cash, we pay in favours, a quid pro quo form of corruption. If you grow up here you probably have the connections and therefore don't see it as corrupt. You know someone who works for the police, hospital, MSD, a laywer, an accountant, a builder, the council, the bank, ...
Many people would say it is the essence of a community, and they are not entirely wrong. But when you move between regions or come from overseas, it is blindingly obvious how much harder it is to achieve things in NZ than many other countries.
In Eastern Europe I get the hard word from a Police officer over a minor infringement, I pay him some cash, and it all goes away.
In NZ I get the hard word from a Police officer over a minor infringement, I mention my mate/relative who works with him (bonus points if they are his boss), and it all goes away.
The main differnce is than in NZ it takes about 10-15 years to build up the contacts, where as in Romania you can slip the guy a 20 euro/20 USD note and get that same access from day one.
I’m not sure the drafting of this bill is corrupt but the speed at which it will be enacted and the lack of public scrutiny sure gives rise to concern.
https://thebfd.co.nz/2020/05/12/be-afraid-your-government-is-giving-its…
I am fuming. He didn't actually get jail despite the offence carrying a 7 year jail term. He only got 5 and a half months home detention. Hell we have just done a third of that.
Corruption is a scourge and we must eliminate it with lockups wherever it is found. This pissweak sentence actually encourages the crime.
I looked at the "Employee Theft" link. Most of the cases are middle age and older NZ females. So just because there is some immigrant from southern Asia involved in a high profile corruption case, to say immigrants from the third world are corrupting NZ is simply racist comment with no real basis. Joanne Harrison, who still more from Transport Agency was a white woman. Tessa Fiona Grant who stole money from Hamilton high schools was a white woman.
Immigrants, by design, do not end up holding much power. They do not have the communication skills, the friend network, the support from their peers etc to occupy many influential positions.
Are the Yanks actually going to rein in Wall Street's financing of China? Surely not?
Er, isn't that what they did with Germany in the late twenties/early thirties? Lent lots of USD causing a boom and financed re-armament and worker's apartments, then didn't roll over the loans. Not sure if that is exactly what happened, but I got that impression. Certainly Berlin was throbbing for a while there, so the money must have come from Wall Street.
FREE TRADE HYPOCRISY. Interesting. Australia does seem to be deliberately fanning the flames. Pretty sure it's all a part of a plan to step this one into another gear;
https://www.dfat.gov.au/trade/agreements/in-force/ausfta/Pages/australi…
Reporting above
EQUITY UPDATES - The S&P500 ended its session earlier unchanged
Meanwhile - NY Time 11:50 pm
As at 4:25 pm NZT S&P futures down -0.8% DJ Futures down -0.8%
https://money.cnn.com/data/afterhours/
Might be useful for your PM report Equity Updates Section
China has hit four Australian meat works with import bans (together the four meatworks represent 35% of beef exports to China) and plans to introduce an 80 per cent tariff on Australian barley.
https://www.forexlive.com/news/!/china-has-hit-four-australian-meat-wor…
China has acted on its threat to retaliate against countries seeking a probe into origin of the coronavirus
they have done it to us in the past
https://www.rnz.co.nz/news/national/135416/nz-meat-stuck-on-wharves-in-…
Appear weak when you are strong, and strong when you are weak. If your enemy is secure at all points, be prepared for him. If he is in superior strength, evade him. If your opponent is temperamental, seek to irritate him.
Sun Tzu
I think they are feeling embattled and defensive, hence bluffing that they are strong. It's also good public relations to keep their own landless serfs on side.
Sky news with
China telling NZ off.
https://youtu.be/8pt-2STEwrI
Australia seeing China actions, being straight out of "China playbook"
https://youtu.be/5JwFbCoshCU
Trumps q&a.
News China may be hacking USA vaccine development
https://youtu.be/nqIwmpehub8
The price of just about everything will have to come down to match our reduced buying power. This is both for global & local. And apart from big pharma, just about everything's in the red. And we also know that QE creates huge wealth gaps between societal classes, inside countries. So, do we have a Labour Govt making the rich richer? Or not?
DC, love the unread story highlighting, but can I make a couple of further suggestions:
1) The blockquote and the unread story colour could be different to distinguish them as you scroll.
2) A down arrow at the end of the comment header that scrolls down to the first unread comment when clicked, or better still, the arrow stays in the right margin at the top of the screen while you are in the comments section.
Woodhouse on the news saying the 4 billion for DHBs is just plugging the gaps (forgot to add "that National left")
Coleman was known as Dr Death when he was the National health minister due to being reluctant to spend anything on DHBs. He promptly resigned when questions came out of the rotting woodwork after the election.
Laughable how National keep shooting themselves in the feet.
I see Bunning is closing stores. I like bunnings
https://www.rnz.co.nz/news/business/416450/bunnings-to-close-seven-nz-s…
reminds me of an old cold war joke.
The Americans and Russians at the height of the arms race realized that if they continued in the usual manner they were going to blow up the whole world. One day they sat down and decided to settle the whole dispute with one dog fight. They would have five years to breed the best fighting dog in the world and whichever side's dog won would be entitled to dominate the world.
The Russians found the biggest meanest Doberman and Rottweiler female dogs in the world and bred them with the biggest meanest Siberian wolves. They selected only the biggest and strongest puppy from each litter, removed his siblings, which gave him all the milk. After five years they came up with the biggest meanest dog the world had ever seen.
Its cage needed steel bars that were five inches thick and nobody could get near it.
When the day came for the dog fight, the Americans showed up with a strange animal. It was a nine foot long Dachshund. Everyone felt sorry for the Americans because they knew there was no way that this dog could possibly last 10 seconds with the Russian dog.
When the cages were opened up, the Dachshund came out of it's cage and slowly waddled over towards the Russian dog. The Russian dog snarled and leaped out of it's cage and charged the American dachshund. But, when it got close enough to bite the Dachshund's neck, the Dachshund opened it's mouth and consumed the Russian dog in one bite.
There was nothing left at all of the Russian dog.
The Russians came up to the Americans shaking their heads in disbelief. "We don't understand how this could have happened. We had our best people working for five years with the meanest Doberman and Rottweiler female dogs in the world and the biggest meanest Siberian wolves."
"That's nothing" said the American "do you know how hard it is to get a dachshund and an alligator to breed?"
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