Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
No changes today.
TERM DEPOSIT RATE CHANGES
The Police Credit Union cut rates today. Rabobank also cut both TD and NoticeSaver rates.
AUCKLAND HOUSE SALES RECOVER
Barfoot & Thompson's July sales were more like the peak summer selling season than mid-winter, recovering to their best level for a July in five years. In fact, over the past 55 months, only five of them have exceeded July 2020.
CAR SALES RECOVER
"Revenge spending" after international travel is blocked, and cashed up returning Kiwis, keep the new car sales market growing in July especially for SUV models. Tradies return for their big utes as well
As a result of discussions with its auditors, Audit New Zealand and the Office of the Auditor-General, Auckland Council "believes it is prudent" to delay the release of its financial results for the year ended 30 June 2020. The pandemic has given rise to a number of uncertainties which require management to apply significant judgement to the underlying assumptions and estimates within the financial statements.
BNZ INTRODUCES NEW PRICING FOR SME CONTACTLESS DEBIT TRANSACTIONS
BNZ says SME customers will now pay no more than 0.70% per contactless debit transaction. This comes with the waiving of these fees, since late March, ending. BNZ says customers can now choose split pricing, a fixed fee, or interchange plus pricing. Eftpos transactions remain free to all the bank's business customers. Retail NZ last year put weighted average merchant service fees at 1.1% for contactless debit transactions. This BNZ reduction follows Westpac's earlier announcement.
CLOSER INTEGRATION OF WESTLAND & OCEANIA DAIRY OPERATIONS
Toni Brendish is stepping down at the end of this week as the CEO of Westland Dairy. She will be replaced by Shiqing Jian, the top Yili manager in New Zealand who already heads Oceania Dairy. Yili now owns both.
A $263 MLN PRE-ELECTION SHOVEL READY SPURT
Another $188 mln is to be invested in seven infrastructure projects across Kāinga Ora developments in Auckland at Northcote, Roskill, Mangere, and Tāmaki; and $75 mln invested into the Auckland Unitec residential development project.
The NZ Super Fund, and the Ontario Teachers Pension Board, have acquired the New Zealand operations of Australian company Healthscope. Each has taken a 50% share. These New Zealand operations are the country's largest human and veterinary pathology network operating as Labtests Auckland, Northland Pathology, Taranaki Pathology Services, Southern Community Laboratories, Wellington SCL, Canterbury SCL, Medlab South & Gribbles Veterinary Pathology. They have 25 laboratories, over 2,000 staff and 150 collection centres throughout NZ. Its a deal worth more than $550 mln.
NEVER ENDING & GROWING TRADE SURPLUSES
Australia has recorded another huge monthly trade surplus. In July it posted an AU$8.2 bln surplus for the month, taking the 12 month total to AY$78 bln. This surplus has been expanding for a long time now. In the equivalent year to June 2019 it had a surplus of AY$49 bln, and that was vastly higher than the AU$7 bln surplus in the year prior to that. China may be grumpy with the Aussies, but it just keeps on buying.
The S&P500 ended today up +0.7%. The NZX50 Capital Index is heading for a similar rise. The ASX200 is much firmer, up +1.7% so far. Meanwhile, Shanghai has just opened -0.3% lower although Hong Kong is up +0.6%. Tokyo has built on yesterday's stellar rise, up another +1.4%. But no markets today can match the overnight leap in Frankfurt of +2.7%.
SWAP RATES UPDATE
Swap rates were probably unchanged 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 different movement. The 90-day bank bill rate is unchanged at 0.30%. The Aussie Govt 10yr is little-changed at 0.85%. The China Govt 10yr is softer at -2 bps at 2.97%. But the NZ Govt 10yr yield is unchanged at 0.74%. The UST 10yr has held at about 0.56% today.
NZ DOLLAR HOLDS
The Kiwi dollar has run softer today, now at 66.2 USc. And against the Aussie we are little-changed at 92.9 AUc. Against the euro we are also little-changed at 56.2 euro cents. And that means the TWI-5 is little-changed at 69.5.
BITCOIN STAYS FIRM
The price of bitcoin is also little-changed at US$11,273.. 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 ».