Here are the key things you need to know before you leave work today.
It's been a funny old day. The roads have been quiet, but schools are 'in' - there must be many people making it a long weekend. Still our online traffic has been great so 'you' have been keeping a finger on the pulse.
Auckland mayor Len Brown has trumpeted the data that Auckland has been consenting houses at the rate of 7,000 per year recently. Sadly however that will not do much for the 'supply' side of supply-and-demand. The region needs new houses at twice that rate over about four or five years to make a noticeable dent in the shortage. (And that ignores the question about where the workers will come from to build at that rate.)
The other public policy focus today is non-tradable inflation - or as people say, the pricing policies of government monopolies and private oligopolies. The Productivity Commission has been looking at the latter because it is barred from looking at the former. And the Greens have piped up on the same issue in the insurance industry today.
The NZD exchange rates have fallen this afternoon. The RBA minutes released this afternoon were fairly upbeat which probably means there will be no more rate cuts for the foreseeable future. The AUD fell and the NZD with it.
Swap rates have 'recovered' today, adding 4 or 5 bps during the day.
90 day bank bills are up slightly at 2.90%
In NZD, both copper and aluminium prices continue their long decline since Q1 2011. Gold prices may have risen 4% since the beginning of the year (in NZD), but they too are on a long decline, the yellow metal's down track started in Q3 2011.
The AU and NZ governments have agreed to look at mutual recognition of imputation credits - an issue that would be a boon for investors in Aussie banks because those banks earn heaps in New Zealand. This issue has been on the policy radar for a long time - and it is likely to stay unresolved given the likely hit to the Australian Federal tax take.
Used import car sales for January were up a strong +28% from the same month a year ago. This was the best January since 2007. Still, it is not as good as the earlier-released data on new car sales. (I expect to see a jump in housing credit when the January data is released at the end of the month. I suspect we enjoyed Christmas and went out and used our houses as an ATM to buy all those cars. You can't tell me we bought 10,500 new and used-imports out of the savings in our bank accounts.)
The latest political poll from Roy Morgan shows there are still shifting sands in the dunes of political opinion. This time National is on top but no clear trends are obvious yet.
Check out the chart below. Soil moisture is now drier that it was at the same time last year. Fortunately the dairy season is now well over and farmers are better prepared this year, but the dryness will start to hurt even so.
2 Comments
More cars. New and used. Means the average age and condition is improving. Good. The overall stock seems to have gone backwards in that respect over the last few years. From the roadside eyeball measure.
I agree, and sadly, that yes it is probably bunged onto the mortgage.
Yes David. A funny day yesterday. Could get used to this four day weekend lark. A meagre two incoming work emails on Friday.
Many of your commentators don't have to work convential hours. So when buzzo is quiet, then it's time to check in on 'interest'
A few long beers under the trees out the back of the pub up in Arrowtown was very enjoyable yesterday.
Dry and cloudless but the irrigation is burbling nicely in the pipes.
29c Thursday. 29c Friday. Hotter today and tomorrow. Central Otago at it's traditional finest.
Time to sign out and head to the Bannockburn Kitchen for the morning coffee.
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