Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
HSBC has launched a full rate card of market leading fixed mortgage rates. SBS Bank has cut rates on two key fixed terms. WBS also cut its fixed rates.
TERM DEPOSIT RATE CHANGES
HSBC has also trimmed their already very low term deposit rates. Kiwibank also cut its TD rates today. WBS cut its TD rates as well.
SERVICES REBOUND
Like its sister survey in the manufacturing sector, activity in New Zealand’s services sector rose back into expansion, according to the BNZ-BusinessNZ Performance of Services Index. The sharpest rise was for new orders. But not everything is moving back up. Among the major components, employment remains the laggard. Yes, June’s 45.1 is higher than May’s 40.5, but it has only returned to levels seen during the 2008/09 recession and is still sub-50 indicating service sector job losses. The Warehouse Group is emblematic.
FARMS SELL WELL
Farm sales came in quite strong in June, with 108 contracts signed. This was much better than the 85 sold in June 2019. (The average over the previous four years was 141 in a June.) But there was only one dairy farm sold this year, vs 8 in June 2019. Median prices overall were up +5% year-on-year but lower than in May, probably because of the very low number of dairy farm sales. However, the REINZ warns of an avalanche of farms for sale building up.
A GOOD RECOVERY
There were 659 lifestyle block sales in June, a full recovery after the low levels in the two lockdown months prior. January recorded 650 and February 626. June 2019 recorded 609 and the average for the previous four years was 703.
CHINA TELL US IT WON'T TOLERATE CRITICISM
China's ambassador to New Zealand has warned us to butt out of pointing out its human rights failings. "China has always followed the principle of non-interference in others' internal affairs. At the same time, China stands ready to safeguard its core and major interests. Issues related to Taiwan, Hong Kong, Xinjiang and Tibet all touch on China's sovereignty and security and these are all China's internal affairs," they said. But China inserted two MPs into our Parliament, one on each side, so it can hardly say it isn't interfering in our affairs. And our Prime Minister said that while the NZ-China relationship was "in good shape", NZ would continue to express its views on Hong Kong, Taiwan and Xinjiang. Doing so was "important to who we are as NZers" and that differences of opinion were "normal and should not define our relationship."
WORLD'S 3rd LARGEST ECONOMY STRUGGLES
Japan's exports suffered a double-digit decline for the fourth month in a row in June as the pandemic took a heavy toll on global demand, reinforcing expectations that their economy has sunk into its deepest recession in decades. Exports were down -26% in June from the same month a year ago. Imports were down -14%.
SINGAPORE SUPPORT
Singapore has announced that more than 140,000 employers, with 1.9 million local employees, will receive payouts starting next week totalling over NZ$4.4 bln under their jobs support scheme, or NZ$2300/employee. There are about 400,000 registered businesses in Singapore in a population of 5.9 mln. Their employed labour force is 3.8 mln. (New Zealand has 547,000 registered businesses in a population of 5 mln. Our employed labour force is 2.6 mln.)
EQUITY UPDATES
The NZX50 Capital Index is down a marginal -0.2% in late trade. The ASX200 is -0.7% lower in afternoon trade. Shanghai has opened a strong +2.1% higher but both Hong Kong and Tokyo are both -0.3 lower in early trade. The futures market indicates that the S&P500 will open flat, the same as where it closed on Friday.
SWAP RATES UPDATE
Swap rates probably shifted a little flatter again today. We don't have final wholesale swap rates movement details yet but we will update this later in the day if they show a significant movement. The 90-day bank bill rate is unchanged at 0.30%. The Aussie Govt 10yr is unchanged at 0.88%. The China Govt 10yr is down by -3 bps to 2.99%. The NZ Govt 10yr yield is also down another -3 bps at 0.88%. The UST 10yr is unchanged at 0.62%.
NZ DOLLAR LITTLE-CHANGED
The Kiwi dollar has changed little today, still at 65.4 USc and still in an extended quiet phase. Against the Aussie we are little-changed at 93.8 AUc. Against the euro we are soft at 57.3 euro cents. And that means the TWI-5 is still just over 69.9.
BITCOIN STABLE
The price of bitcoin is marginally firmer today, up less than +1% at US$9,196. 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 ».
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59 Comments
yup , its almost as much work to farm 10 animals as it is to farm 100. You still need the yards, water supply etc , just have less land overall . And having a few animals you get closer to them , so more likely to call the vet if one gets crook , than if it was 1 of 100's. specially if its got a name.
Whoever they are (genuine CCP supporter, or an imitator), they are an oddball. I find it very strange that a Chinese national would live in a free, democratic country such as NZ and be so full of praise for the CCP and the way of life that they promote.
I am hopeful that the editors have done their homework as far as possible on the individual, and that the person is simply an oddball rather than something more sinister.
Once you have food and shelter and running water and electricity then you can and should prefer democracy with a free press. However if you are severely poor then you will admire a govt that has managed astonishing growth in productivity and wealth per capita and tend to overlook its injustices.
"Japan's exports suffered a double-digit decline for the fourth month in a row in June as the pandemic took a heavy toll on global demand, reinforcing expectations that their economy has sunk into its deepest recession in decades. Exports were down -26% in June from the same month a year ago. Imports were down -14%"
And this highlights why we cant all go Japanese ... its growth OR bust
The only reason they got by the last 20 years was because the rest of the world was in growth mode
One good thing about Japan is that it seems to be a relatively homogeneous society that might be able to cope with collapse (return to simplicity in the Joseph Tainter sense) better than most.
Heavily armed and more disparate/ unequal societies will fare the worst.
What an uneducated, sweeping statement. As one who has lived there for a number of years I can say with far more confidence that rural Japan is simply aging faster than the rest of the country because young people have evacuated to the bright lights of the cities. I guess old people, mortgage-free in the countryside just LOOK poorer than their grandchildren in Tokyo, perusing the Harajuku fashion shops at the weekend, but who live in a shoebox with an exorbitant 3 generational mortgage hanging around their neck.
China “non-interference in others’ internal affairs” What a joke. Would like the ambassadors position on the attached.
https://9now.nine.com.au/60-minutes/drew-pavlou-launches-legal-action-a…
"China's ambassador to New Zealand has warned us to butt out "'
"REINZ have asked us to remove the price/ha data. They have also ceased supplying regional data for the chart below, but the national data is up-to-date.'
As Andrewj states "some of us love the land, love animals. " Humans are more often the problem. Time for a dump
China's ambassador to New Zealand has warned us to butt out of pointing out its human rights failings. "China has always followed the principle of non-interference in others' internal affairs. At the same time, China stands ready to safeguard its core and major interests. Issues related to Taiwan, Hong Kong, Xinjiang and Tibet all touch on China's sovereignty and security and these are all China's internal affairs,".................
This is sign of rouge state. Threat. Threat. No dictator like freedom of expression.
With threat China is on war path with most countries in the world. Has anyone noticed that Every country has army and is defined by his country like US army, NZ army....but in China is PPL army as it is not to defend and protect the country but CPP -Dictatorial regeime.
India is not doing any better
http://statisticstimes.com/demographics/country/india-sex-ratio.php
I was tongue in cheek, obviously Japans relationship with China has changed but at the same time they probably are the biggest threats to each other on economic front, which could be manipulated by self interested elites.
China is buying record amounts of oil from Iran and Russia , I doubt it's for internal use in China.
Let's not forget -About Unit 731
I had professional financial dealings with the Japanese and it was made clear they considered my countrymen inferior. I find the terms Gaijin and Goy offensive.
In NZherald
'The strong existing relationship between New Zealand and China can continue to grow as long as NZ stays out of internal Chinese politics, says Beijing's ambassador to NZ, Wu Xi'
Threat....that do what we say or face the consequence.
How can any self respecting country tolerate such people - money. Real Shame. NZ must give befitting reply as we need them as much as they need us or $#@%
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