Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
There are no changes to report today.
TERM DEPOSIT RATE CHANGES
Heartland Bank has trimmed most rates although it did raise its one year rate by +5 bps to 1.10%.
A SPECIAL ENDS
The NZCU Baywide group have now ended their personal loan interest rate 'special', cancelling the -1% discount and reverting to 9.90%.
ON GUARD
Serious supply-chain issues (42.8) pressed the BNZ-BusinessNZ services PSI lower in November in something of an unexpected reversal. These issues overwhelmed the good new order levels (55.6), although they too dipped from an unusually high October (59.4). Anything over 50 represents an expansion, under 50 a contraction. Those supply-chain issues won't be sort quickly, given the imbalance in internal shipping is a global issue.
PARTY MODE
Paymark's retail sales update shows that in the last seven days spending has picked up amongst the Food, Liquor and Restaurants/bars/café merchants and declined among a wide range of shops such as furniture, clothing and appliances stores. This is typical in the lead up to Christmas as spending shifts from goods to party-mode. The previous seven days included Black Friday. Nationally, sales are up +3.6%, but only +2.3% in Auckland. Wellington was up +8.5% but tourist-driven Otago was down -9.3% on a year-on-year basis. Spending across the board is expected to pick up further in the next two weeks, building to a peak near Christmas Day.
TRANS-TASMAN BUBBLE CLOSER
Plans are finally underway for a trans-Tasman travel bubble in first quarter of 2021. Cabinet has made an 'in-principle' decision to form a travel bubble with Australia in "first quarter of 2021".
A MERE SHADOW
The population gain from migration remains well below 1000 per month, and growth from migration is down by more than 90% compared to a year ago. In October, long term migration only rose +884, compared to the October 2019 level of +10,224.
PUSHING BACK ON GREEN-WASHING
The Financial Markets Authority has released guidance on financial products that incorporate non-financial factors, such as ‘green’ bonds and ‘socially responsible’ managed funds. "Misleading marketing, poor product design and other types of ‘green-washing’ all have the potential to undermine investor confidence in integrated financial products", they say.
EQUITY ADJUSTMENT
The Government has approved a package to be offered to eligible policyholders who settled with Southern Response prior to October 2014. This is to address the inequity of those who trusted the Government agency who settled their claims prior to October 2014 compared to those who settled later after the court battles that resulted in much fairer terms.
EQUITIES UPDATE
The NZX50 Capital Index is lower by -0.4% near today's close. The ASX200 is up +0.5% in early afternoon trade. Shanghai has opened up +0.2% to start the week, Hong Kong is up +0.1%, and Tokyo is up +0.7% in early Monday trade.
SWAP & BOND RATES SOFT
We don't have todays swap rate movements yet. If there are material changes when the end-of-day swap rates are available, we will update them here. The 90 day bank bill rate is unchanged today at 0.26%. The Australian Govt ten year benchmark rate is down -3 bps at 0.96%. The China Govt ten year bond is up +1 bp at 3.33%. And the New Zealand Govt ten year is down -2 bps at 0.86% and the same as the earlier RBNZ-recorded fix of 0.86% (-3 bps). And the US Govt ten year is unchanged at 0.91%.
NZD HOLDS
Against the US Dollar, the Kiwi dollar is holding up and still at 70.9 USc. On the cross rates we are holding against the Aussie to just under 94.1 AUc and against the euro we are unchanged at 58.4 euro cents. That all means our TWI-5 is still at 72.8.
BITCOIN DOWN
Bitcoin is now at US$19,174 and up +6.7% from this time on Friday. The bitcoin rate is charted in the exchange rate 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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20 Comments
Daily reporting on Bitcoin is pointless in my opinion. The markets are 24/7 so the concept of open / close doesn't mean much.
In fact, if you're a maximalist, now that the rest of NZ and the Western world has gone on holiday for 4 weeks (probably 6 weeks in Europe), I can't think of a better time for retail buyers.
It is a long-term asset but the stars are aligned for some of the better short-term fireworks you're ever likely to see. The next alt run is going to be crushing and will run at tandem with rat poison but more spectacularly. Going to be some cashed-up millennials for sure. Hope they rub it in the nose of the old farts whose financial advisors are clamouring to work it all out and who will eventually will be redundant.
J.C.. don't think it will be too long before all financial advisors are redundant. I think we are heading towards AI based computerized advice where clients input variables such as risk tolerance etc and the AI spits out a perfectly diversified portfolio( or choices of) with the ability to automatically rebalance regularly. Starting to go this way already. With any luck by using similar technology economists will be confined to the scrapheap as well.
The Supreme Court decision confirms you, ie your claim. will be included unless you formally decide to opt out. Expect your file to be re-opened and there will be a formula to quantify what items in $terms you should have received. You could do it yourself but GC Law are well versed and set up to unravel and identify what is due.
I do sympathise with this government being left a foul ball by the previous government with concern to both Southern Response and EQC. Unsavoury and unethical behaviour by agents of the government is hard to digest, full stop. On the balance of things, this government is at least more trustworthy than the previous one, and far more in touch with the ordinary folk and their well-being. So for myself quite relieved that we had this government, and not the persona of the like of Mr Brownlee’s oft described bulldozing, to address and handle the threat of CV19.
Make a privacy act request for your file. Same as an OIA request. They are doing them routinely so it's quite streamlined.
https://www.southernresponse.co.nz/contact/70-privacy-act-requests
Fonterra, Nestle and DairyNZ working together: https://www.fonterra.com/nz/en/our-stories/media/fonterra-nestle-and-da…
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