A review of things you need to know before you go home on Tuesday; factories busy, next Hart deal in works, trucking suggests strong growth, IMF agrees, so does Paymark

A review of things you need to know before you go home on Tuesday; factories busy, next Hart deal in works, trucking suggests strong growth, IMF agrees, so does Paymark
For Tuesday, June 10, 2014. Image sourced from Shutterstock.com

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

NO RATE CHANGES TODAY
Well, perhaps you wouldn't expect any just two days out from the RBNZ review and Monetary Policy Statement.

MANUFACTURING BOOMS
Hard to believe since some manufacturers are very vocal, but their overall revenues rose more than 10% in the year to March. They are also building inventories quite quickly too, so that activity will need to reverse at some stage. Still, today's data won't be hurting the Q1 GDP results when they are released next week.

BIG HART DEAL IN THE WORKS
New Zealand's richest man, Graeme Hart, (or is that, New Zealand's most indebted man, Graeme Hart ?) is getting ready to sell his SIG Combibloc Group that could value the world's second largest maker of drink cartons at around US$5 billion according to a Reuters report. Still, that will leave him with Pactiv and Graham Packaging in his Reynolds empire - and still with US$13 billion in debt, much of it junk rated. Some say Hart is worth US$7 billion.

LUCKY DIP?
Although the 'heavy' index was down, the 'light' index was up. ANZ says this suggests the economy will keep rolling on into the second half of the year. They reckon all this points to annual GDP growth that may get one more decent lift towards 4%, but then will start to ease.

IMF'S BIG TICK
The IMF says NZ economic expansion is 'becoming increasingly embedded and broad based'. It sees the main threat to our economy from a China slowdown. And it now says the NZ$ is up to 15% overvalued.

BUOYANT RETAILING IN MAY
Different to other surveys, Paymark's retail sales survey for May shows that many regions are spending up large. Across the country, spending growth was most marked in Bay of Plenty (+10.2%), Canterbury (+8.6%), and Waikato (+8.5%). However, a couple of places are feeling subdued; Wellington (+3.0%) and the West Coast (+1.8%). Auckland's value rise was less than the national average of +8.3%.

WHOLESALE RATES
Wholesale swap rates were up by even more today, +3 bps on the back of rising bond yields in New York overnight, but the 90 day bank bill rate is unchanged at 3.42%.

OUR CURRENCY
The NZ dollar is back to almost where it was at this time yesterday after a small fall and then a recovery. Late this afternoon, the USD is at 85.0 USc, the Aussie is now at 90.9 AUc. The TWI is at 79.3.

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