Here are the key things you need to know before you leave work today.
HOME LOAN APPROVALS
The recent weakness in mortgage approvals is abating and we had the first $1+ billion week since before Christmas last week in data released by the RBNZ today. Values lend are growing while the volume of mortgages being approved is still below last years level.
BIRTH AND DEATHS
Both our birth rate and our death rate are declining. Click on the link - you will see that the birth rate is actually declining quite quickly. Sadly, our low infant mortality rate is starting to trend up again after a long decline.
GOOD JANUARY FARM SALES
Farm sales were up in January compared with the same month a year ago with 138 farms sold, 25 of them dairy farms, 27 finishing units and 68 grazing properties.
LIFESTYLE BLOCK SALES BUOYANT
More lifestyle blocks were sold in January 2014 than in any January since 2008 according to data out from the REINZ.
DAIRY PRICES SOFTEN
The Fonterra dairy auction early this morning showed a minor 1.2% fall in prices in US dollars, but in NZ dollars the fall was 4% from the previous auction. The result is not expected to alter any Fonterra payout calculations however.
THE MORTGAGE RATE CHANGE SWARM CONTINUES
Westpac has matched ASB and BNZ with rate cuts. The Co-op Bank has raised its market-leading one year rate; now the lowest one year rate is offered by SBS/HBS.
GOLD
World gold demand and supply data is out today showing that individuals are buying more gold, investment funds are selling it even faster so the price has gone down. That is strangling the recycling process as sellers are less motivated. But mine output was up 5% worldwide in 2013. Recently (February), the gold price has started to rise again.
LGFA ISSUE GOES WELL
Today's LGFA debt issue has been well received. The main 2021's were fully subscribed for $135 mln at 5.17% about 80 bps over NZGS equivalents. This issue was 3.6x oversubscribed.
CONTRIBUTORY MORTGAGE BROKERS CHARGED
The FMA has laid charges against two contributory mortgage companies today for failing to deliver statutory reports. The companies are Prudential Mortgage Ltd and First Mortgage Investments Ltd.
WHOLESALE RATES
Swap rates were lower again today for 2-10 yr terms, down 2 and 3 bps and the curve continues to flatten. The 90 day bank bill rates are up today at 2.95%. As we get closer to March 14 and the next OCR review, markets are pricing in a rise.
OUR CURRENCY RISES
The NZD fallen a bit faster today against everyone except the AUD against whom we rose. The TWI is back over 78.
1 Comments
Birth rate declining: this partly why we have policy to encourage immigration like most 1st world economy/societies.
Infant death increases: sad for a wealthy country, with low income families over represented. Also more premature babies, & the dominance of midwives to the exclusion of doctors at birth.
Abortion rate of around 14,000 in decline from 2009 & before. We replace these with immigrants?
Modern society sees kids as a cost & career impediment. Plus the Peak Everything/Limit population brigade/Global Warming religion adherents.
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