A review of things you need to know before you go home on Monday; BNZ raises variable rates +25bps, selective on deposits, Dorchester looks for more of Turners, RBNZ leads, wholesale rates sink

A review of things you need to know before you go home on Monday; BNZ raises variable rates +25bps, selective on deposits, Dorchester looks for more of Turners, RBNZ leads, wholesale rates sink
For Monday, July 28, 2014. Image sourced from Shutterstock.com

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

TODAY'S MORTGAGE RATE CHANGES
Only one institution announced their floating rate mortgage change today, BNZ. The full +25 bps has been added to all their floating rate products, including their unique HomeAdvantage credit card (which is now at 6.74%).

TODAY'S DEPOSIT RATE CHANGES
On the saving side, BNZ also raised a few select savings rates, mostly by +15 bps. They also added a nine month term deposit 'special' at 4.45% - mainly as cover for the fact that they are not raising any other term deposit rates.

DORCHESTER BIDS FOR TURNERS
Finance company Dorchester is about to bid for Turners Car Auctions. Dorchester currently owns 19.85% of Turners. They have entered a 'lock-up agreement' with Bartels, the other substantial shareholder.to try and hammer out a deal. Dorchester and Bartel between them hold 40.65%.

RBNZ TO LEAD EMEAP
Reserve Bank Deputy Governor Grant Spencer has been appointed chair of an international central bank group: the EMEAP Working Group on Financial Markets. EMEAP (Executives' Meeting of East Asia-Pacific Central Banks) is an organisation of central banks and monetary authorities from Australia, China, Hong Kong, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, and Thailand.

WHOLESALE RATES
Swap rates sank today basically down -3 bps for all terms two through five years. This follows a very soft 'risk averse' tone in New York on Friday. The 90 day bank bill rate is unchanged however at 3.69% at 4pm.

OUR CURRENCY
The NZ dollar has continued to inch down today as well. The NZD is at 85.4 USc, is at 91.0 AUc and the TWI is at 79.8. 

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2 Comments

The Psychology of the situtaion.....
Danone: Slide 37: Synthetic Balance Sheet:
Equity noted as 39% of Assets (being 11 over 28)
The Equity is (buys) 67% of Intangible Assets (liabilities account for all Other Assets, all W/C and 33% of Intangibles)..
http://media.corporate-ir.net/media_files/IROL/95/95168/Docs/Danone_Results_H1%202014%20WEBCAST.pdf
 
and, with free cash flow dropping (slide 35 & 36)
On May 28, 2014, Danone announced the results of the option offered to shareholders to receive payment of their 2013 dividend in the form of DANONE shares. This option was approved by the General Meeting of Shareholders held on April 29, 2014. The option period was open from Wednesday May 7, 2014 to Wednesday May 21, 2014 included. At the end of the option period, 65.23% of rights had been exercised in favor of the 2013 dividend payment in shares. For the purposes of the dividend payment in shares, 11,932,014 new shares were issued, representing 1.89% of Danone’s share capital on the basis of share capital of April 30, 2014. The settlement and delivery of the shares as well as their admission to trading on Euronext Paris took place on Tuesday June 3, 2014. The shares carry dividend rights as from January 1, 2014 and are fullyassimilated to existing shares already listed.
http://media.corporate-ir.net/media_files/IROL/95/95168/Docs/25072014_Danone_Sales%20H1%2014_EN.pdf
sounds like the lawyers maybe on the "money-prior" terms, would explain why they are looking to do everything court wise super Par Avion.
 
http://finance.danone.com/phoenix.zhtml?c=95168&p=irol-results
 

Given below, would one be a buyer for Danone the job-lot?
 
http://online.wsj.com/articles/danone-still-hurt-by-false-scare-1406270760
The company launched an "internal reflection" called "Danone 2020" to look at how the company can build "strong sustainable growth," Mr. Terisse said on a conference call.
The Wall Street Journal reported earlier this week that the company had launched a strategic review to assure long-term growth and was also examining whether it should pursue any bigger acquisitions. Mr. Terisse said the plan wasn't a "strategic review" that would lead to the sale of assets or a wide cost-savings drive.
"It is positive that they are thinking about long-term changes," said Ryan Fintan, an analyst at Berenberg. "Once they have steadied the ship, they need to take a look at how to take growth forward."
 
http://online.wsj.com/articles/danone-weighs-expansion-opportunities-1406050776
PARIS—Danone SA has launched a strategic review as Chief Executive Franck Riboud seeks to ensure its long-term growth, amid renewed speculation over whether the French dairy group can survive as a stand-alone company.
Mr. Riboud, who has led Danone for close to 20 years after taking over from his father, has asked top managers to explore areas of potential expansion, said a person familiar with the matter.