What happened Tuesday

A review of things you need to know before you go home on Tuesday: Govt claims world first, firms finding it easier to hike prices, new RBNZ department & more

13th Apr 21, 3:57pm by Gareth Vaughan

Here are the key things you need to know before you leave work today.

MORTGAGE RATE CHANGES
There were no changes today.

TERM DEPOSIT RATE CHANGES
General Finance increased its six month, nine month, one year, 18 month and three to five year rates by between 20 and 40 basis points. (See more on deposit rates here and here).

GOVT CLAIMS WORLD FIRST WITH FINANCIAL SECTOR CLIMATE CHANGE BILL
The Government has introduced a Bill to Parliament that it says will make New Zealand the first country in the world to introduce a law that requires the financial sector to disclose the impacts of climate change on their business and explain how they will manage climate-related risks and opportunities. The Financial Sector (Climate-related Disclosure and Other Matters) Amendment Bill will have its first reading this week. The Bill will make climate-related disclosures mandatory for around 200 organisations, including most listed issuers, large registered banks, licensed insurers and managers of investment schemes. Once passed, disclosures will be required for financial years from 2022, meaning that the first disclosures will be made in 2023.

Meanwhile, Minister for Climate Change James Shaw says all parts of Government need to take urgent action to bring down emissions. The latest annual inventory of New Zealand’s greenhouse gas emissions shows both gross and net emissions increased by 2% in the 12 months from the end of 2018.

FIRMS FINDING IT EASIER TO HIKE PRICES
New Zealand's businesses say they're now finding it easier to pass on higher costs by raising prices to customers, according to the latest quarterly survey of business opinion from the New Zealand Institute of Economic Research. See more here.

RBNZ UNVEILS NEW ENFORCEMENT DEPARTMENT
The Reserve Bank has established what it's describing as a new standalone enforcement department, which it says is to support its more intensive supervisory and enforcement approach, and promote confidence in compliance across regulated sectors. The new unit will work closely with the Reserve Bank's supervision team, and be overseen by Deputy Governor and General Manager of Financial Stability, Geoff Bascand. The new department is developing an enforcement framework and is led by Ben Carruthers, previously senior manager at the Australian Prudential Regulation Authority.

MARCH RETAIL CARD SPENDING INCREASES
Statistics NZ says retail card spending increased in March, after a drop in the lockdown-disrupted month of February. Seasonally adjusted March retail card spending rose by $53 million, or 0.9%, compared with February 2021.

COVID-19 UPDATE
There are no new community cases today, the Ministry of Health says. There are four new cases in managed isolation. Of the recent community cases B and C, the Grand Millennium workers, 21 of their 23 close contacts have returned negative test results with just two results outstanding.

FMA BREAKS DOWN FINANCIAL ADVISOR NUMBERS
The Financial Markets Authority (FMA) has provided transitional licence numbers under the new financial advice regime which launched last month. The FMA says there are just over 3,000 financial advice businesses, comprising of 1,807 financial advice providers and 1,200 authorised bodies, engaging 10,743 financial advisers and 12,287 nominated representatives.

BANKS REITERATE COMMITMENT TO RURAL HUB TRIAL
Bank lobby group the NZ Bankers' Association says the six banks taking part in a regional banking hub trial are renewing their commitment to not close regional branches until year's end, when the trial concludes. The six are ANZ, ASB, BNZ, Kiwibank, TSB and Westpac.

NZX 50 HIGHER
The NZX 50 is up almost 1% at the time of writing, with the ASX200 flat having been up as much as 0.30% earlier in the day.

NZ DOLLAR LITTLE CHANGED
The Kiwi dollar is lower against the greenback than this morning, at US70.11 cents DOWN from US70.3c, down slightly at €58.94c, and unchanged against the Aussie dollar at AU92.2c.

BITCOIN RISES
Bitcoin was last at US$60,498, up about 1.2% since this morning.

This soil moisture chart is animated here.

The easiest place to stay up with event risk today is by following our Economic Calendar here ».

Daily exchange rates

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Source: RBNZ

Source: CoinDesk

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22 Comments

by JohnTrz | 13th Apr 21, 4:05pm 1618286735

'The Government has introduced a Bill to Parliament that it says will make New Zealand the first country in the world to introduce a law that requires the financial sector to disclose the impacts of climate change on their business and explain how they will manage climate-related risks and opportunities.'
The tens of thousands of people waiting for the Government to build state rental houses for them will delighted that the Government is firmly focused on its core duties.

by solardb | 13th Apr 21, 4:22pm 1618287727

Well if we don't pull finger on climate change they will be waiting for the govt to build them house boats .

by gladtobekiwi | 13th Apr 21, 4:26pm 1618287991

you mean like those house boats they had to build in the Maldives? Oh wait.

by False economies | 13th Apr 21, 5:05pm 1618290306

Are you suggesting there hasn't been a rise in sea level around the Maldives? http://www.climatedata.info/impacts/sea-levels/maldives/

by nigelh | 13th Apr 21, 6:01pm 1618293687

Perhaps some of the Maldive islands are sinking?
Maldives have their hands out.
Not sinking but mostly growing
https://wattsupwiththat.com/2020/12/22/alarmism-dies-in-the-maldives-97…

by Ezy | 13th Apr 21, 7:05pm 1618297503

It's going to be so great being a newly minted 3rd world country living off the virtue of our climate change policies. Given we already struggle to house the population, bring on the struggle to feed them as primary industries fail under the weight of what will essentially be a militant admin exercise. Further proof that a government who has a cabinet with no real world experience should have stayed in the fish and chip shop. Bravo!

by RickStrauss | 14th Apr 21, 11:06am 1618355209

Eh, any party that does not factor in the risks caused by climate change is not going to be fit to govern NZ over the next three decades. Primary industries and food security are critically important and must be approached with an understanding of the impacts of climate change - not to mention impacts on long-term viability of our soil, land and water.

We don't need another FOREX trader or salesman who probably only pretends to accept what the scientific world and even corporate worlds now understand is a serious matter.

by False economies | 13th Apr 21, 9:59pm 1618307949

The point is that some of the islands growing isn't a sign that sea level rise isn't happening, there are other forces at work.
https://www.newscientist.com/article/dn27639-small-atoll-islands-may-gr…
And note, even your article from WUWT(!) admits that the sea level is rising
The original paper says that the islands are growing due to human activity
https://www.sciencedirect.com/science/article/abs/pii/S221330542030031X

by blobbles | 14th Apr 21, 8:13am 1618344833

Link through to this and you will find the islands are growing because the people on them are expanding them by land reclamation etc. Eventually though (if not already), the Maldives will have to start importing dirt.

The Maldives are a relatively rich country compared to most island nations. Much of the pacific islands won't have the ability to spend money importing dirt.

Most of the wattsupwiththat links are highly dubious. For instance in the report they site from your link is a headline: "Land reclamation drove island expansion on 93.5 % of inhabited islands." Notice, they didn't mention this, instead they show only the island growth, leaving the reader to make their own false conclusions about why this, with emotive language surrounding climate change denial. They consistently cherry pick the parts of studies only that will support their viewpoint, refusing to look at the parts that don't (which is usually the majority of the study). And then they frame it in a way to come to entirely different conclusions to studies authors. It's really a site giving masterclasses in evidence based propaganda, run by someone with strong views that aren't connected to reality. Read at your own risk.

by dago | 13th Apr 21, 7:19pm 1618298397

NZ is the biggest cause of greenhouse gases therefore our govt needs to lead the world in virtue signal wanks

by youngdumbandbroke | 13th Apr 21, 9:14pm 1618305272

With the current crop of politicians, they’ll die of starvation or hypothermia before the sea levels become an issue

by EdwardD | 13th Apr 21, 4:26pm 1618288004

They also declared a climate emergency, however, plastic straws, cutlery, etc are still being sold and plastic produce bags haven't been banned. Lots of talk, but little action.

by kpnuts | 13th Apr 21, 5:33pm 1618292032

lets hope the sector takes the findings and advice on board in exactly the same way Jacinda and Grant did the information and advice that their financial policies and cash injections would massively increase house prices and inequity ..... and oops

more virtue signaling more hot air more lobbying for a UN job - and completely useless for ordinary new zealanders

by a watchman | 13th Apr 21, 4:18pm 1618287521

Relating to higher prices, Grey Power Electricity has increased their power supply costs (not the distribution cost) by 19.3% from 1 April 2021. This without informing us that they intended to do this.

I am not impressed!

by realterms | 13th Apr 21, 4:28pm 1618288109

Power costs are definitely up. The 5x figure being tossed around might overstate it a bit though.

https://www.emi.ea.govt.nz/Wholesale/Reports/W_P_C?DateFrom=20160401&Da…

by Becnz | 13th Apr 21, 6:04pm 1618293896

FIRMS FINDING IT EASIER TO HIKE PRICES

Now that is scary as prices in NZ are already high and with mono and duopoly in many areas we are about to see massive increases which is going to hurt many who are already living week to week.
Less money to spend outside of core spending areas is not good for NZ and will cost many jobs and flow on to many supporting businesses.

by Let me be Frank | 13th Apr 21, 6:21pm 1618294916

Easier ....in the short term...lets see how turnover is impacted.

by Becnz | 13th Apr 21, 6:34pm 1618295683

I guess that is why inflation at first is great for business profits but then it hits home that people become broke and turnover drops and prices move so fast that profit then becomes a loss.
Being able to make a profit withs prices moving weekly and possibly daily on many products now is going to be very interesting.
Major building companies aka FBU/importers/small/large retail/sharemarket and pretty much everything will now face a major test and sadly many may not make it out the otherside.
Still early days but I feel we are looking at inflation running riot.

by Rob Reid | 13th Apr 21, 7:13pm 1618297990

Image of shivering millionaires in dark, recently purchased, shitboxes chewing on boiled wall paper.

by dago | 13th Apr 21, 7:31pm 1618299066

Dux piping might be more filling to chew on but check with The Financial Sector (Climate-related Disclosure and Other Matters) Amendment Bill and contact your local green approved authority

by richard1965 | 13th Apr 21, 7:06pm 1618297601

What happened today : Still houses are being sold at premium be it low end or high end :

https://www.oneroof.co.nz/news/39253

by Fritz | 13th Apr 21, 9:20pm 1618305649

One for the China skeptics:

https://www.nzherald.co.nz/world/china-is-starting-to-lose-the-covid-19…