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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