Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
No changes announced today.
TERM DEPOSIT RATE CHANGES
China Construction Bank is now offering term deposits. It's rates are higher than any main bank, and higher than most challenger banks as well. They range from 0.55% for 3 months, 1.00% for six months. 1.25% for one year, and 1.40% for four years.
PUBLIC HOLIDAY
It is Australia Day (or in some circles, Invasion Day) across the ditch. Market volumes will be low as a consequence.
'UNDER PAR'
Activity in our services sector improved in December from the previous month, but still recorded contraction, according to the BNZ-BusinessNZ PSI. New Orders abated to 50.2, from 52.0 in November and 57.2 in October, while Supplier Deliveries were still very weak, at 39.5. The Retail trade is still a drag on this sector as well.
COME BACK IN A MONTH
We were to get December credit card data changes today from the RBNZ, but the failure of its secure file transfer system means this isn't happening today. It may take a month or so before things on that front are back functioning normally.
ASSESSING THE BALANCE BETWEEN DEBT & EQUITY
Fonterra is reviewing its 'capital structure', a thing it acknowledges means different things to different people. As part of this, it is surveying its farmer shareholders for their views.
A CHALLENGE TO THEIR TARGET
Genesis Energy (GNE) updated the market on its operating performance today. It wasn't 'pretty' mainly because it is essentially an electricity producer from thermal sources (Huntly and Kupe) and has committed to huge reductions in carbon emissions, by at least -1.2 mln tonnes by 2025. But low lake levels in parts of the South Island meant its Huntly coal-fired station was increasingly used, generating 650 k/tonnes of CO2, and +11% more than expected.
ANOTHER COMMODITY FALLS SHARPLY
The price of the precious metal rhodium fell sharply overnight, losing -9% in the trading session. This is a retrenchment after a very strong rise in 2020 from US$2,500/oz to US$19,500/oz. Rhodium is mainly mined on South Africa and has mainly industrial uses.
NEW TEAM, NEW TALENT
Kiwibank has been bulking up its people, skills and capacity on its digital side. This comes after some bad and costly stumbles a few years ago to its core banking systems.
UPGRADED
Trade Ministers for New Zealand and China today signed an upgrade to the free trade agreement between the two countries. This means that by 1 January 2024, all New Zealand dairy exports to China will be tariff free. It also eliminates tariffs on almost all wood products. It removes some border delays. It also improves services trade access. And it introduces new environmental standards.
FAST DEMOGRAPHIC SHIFTS
In Hong Kong, data is about to be released showing they recorded more deaths than births in 2020 for the first time, in what experts said was a warning of an imminent decline in the city’s overall population. Emigration isn't helping either as Beijing tightens the screws. Singapore is facing the same demographic trends, but is not yet in negative territory. Further out, China is expected to "grow old before it grows rich" with a very-fast slowing in their birth rate.
GOLD PRICE SLIPS
Gold is trading in Australia, and soon in Asian markets. So far today it is down -US$2 from the end of trading in New York, down to US$1854 and that was the same as the closing level in London.
EQUITIES UPDATE
The S&P500 ended its session today up +0.4%. The ASX is closed today for a public holiday. The NZX50 Capital Index is down -0.4% in late trade. In Shanghai, they have opened down -0.6%, Hong Kong is down -0.7%, and the Tokyo market is down -0.7% all in very early trade.
SWAP & BOND RATES SOFT
We don't have today's swap rate movements yet. If there are material changes when the end-of-day swap rates are available today, we will update them here. The 90 day bank bill rate is unchanged at 0.29%. The Australian Govt ten year benchmark rate is down -4 bps at 1.03%. The China Govt ten year bond is up +3 bps at 3.18%. The New Zealand Govt ten year is lower by -3 bps at 1.04% but still above where the earlier RBNZ fix was, at 1.03% (-3 bps). The US Govt ten year is down -5 bps at 1.04%.
NZD FIRMS AGAIN
The Kiwi dollar is now at 72 USc and slightly firmer than its open this morning. On the cross rates we are marginally firmer against the Aussie at 93.3 AUc. Against the euro we are slightly firmer too at 59.3 euro cents. That all means our TWI-5 is up over 73.3.
BITCOIN HOLDS
The bitcoin price is very little-changed from this time yesterday at US$32,575.
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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