sign up log in
Want to go ad-free? Find out how, here.

A review of things you need to know before you go home on Friday; Kiwibank cuts, Auckland raises, surprise trade surplus, affordability stresses varied, UFB rolls on, swap rates and NZD unchanged

A review of things you need to know before you go home on Friday; Kiwibank cuts, Auckland raises, surprise trade surplus, affordability stresses varied, UFB rolls on, swap rates and NZD unchanged

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

TODAY'S MORTGAGE RATE CHANGES
There were no rate changes today, at least so far.

TODAY'S DEPOSIT RATE CHANGES
Kiwibank reduced some savings account rates today. Their 32 day Notice Saver has been reduce by -0.25 bps to 3.55%. And their online Call bonus saver account has had a detailed tweak. The base rate has been reduced by -0.40% to 2.00% while their bonus has been raised by +0.25% to 1.00%. That leaves the potential rate lower by -0.15 bp.

COUNCILLORS EXPECT BACKLASH
Auckland Council is in a firestorm over the rate impact of the Mayor's new 10 year Plan. The amounts involved are not small and will affect about 450,000 residential ratepayers in various ways. 2% will pay $1,000+ per year more, 23% will get a decrease, two thirds will pay up to $500 more, and 7.5% will pay between $500 and $1000 more per year. Expect to hear from those 40,000 who will pay more than $500.

A SURPRISE SURPLUS
A surprise trade surplus of $350 mln was recorded for May. Markets expected a $100 deficit. This was mainly on falling oil and capital imports; exports were no worse than expected. BNZ said today’s trade data were clearly a net positive for the nation’s current account. "Plugging May’s numbers in, we are homing in on a current account deficit estimate for the year to June 2015 of $8.8b, or 3.7% of GDP. This would compare to the 3.6% result reported for the year to March 2015. Such a result should dampen concerns that the current account deficit is set to gallop toward 7% of GDP, as per the latest RBNZ forecasts. Indeed, the Bank talked this up as a reason why the currency has to keep falling."

AFFORDABLE/UNAFFORDABLE
The lower quartile house price surged to $616,500 in Auckland last month but declined in many regions. That means that affordability for first home buyers is getting worse in the Queen City quickly. And it is making may other regions around the country looking very attractive by comparison.

OLDFASHIONED WHOLESALING CHANGING
Foodstuffs has confirmed that it will close its Gilmours wholesalers in Henderson, Panmure and Rotorua as well as its Toops wholesalers in New Plymouth and Napier, according to First Union.

HEARTLAND 'NOT CURRENTLY' KICKING F&P FINANCE'S TYRES
Heartland NZ, parent of Heartland Bank, says it's not currently participating in any process to acquire the on-the-block Fisher & Paykel Finance. Heartland says, however, it'll continue to investigate potential acquisition opportunities that meet its strategic objectives, as well as assessing possible capital management options to improve return on equity. It also reiterated that June year net profit after tax will be at the upper end of its $46 million to $48 million forecast range.

100,000TH UFB CONNECTION
This happened today in Christchurch. The UFB build is now complete in 11 towns and cities, while more than 2,200 schools have fibre installed and ready for service. The first stage of the UFB program will enable at least 75% of New Zealanders to access fibre to the premise by 2019. 

NEW ASB DIRECTOR
ASB says Vittoria Shortt, who is group executive for marketing and strategy at its parent Commonwealth Bank of Australia, has joined its board as a director. Shortt is a New Zealander who has also worked for Deloitte and Carter Holt Harvey.

WHOLESALE RATES UNCHANGED
Swap rates were unchanged for terms to 5 years today and down -1 bp for each term 5, 7 and 10 years. The 90 day bank bill rate was also down -2 bps today to 3.24%

NZ DOLLAR UNCHANGED
The NZ dollar fell on some odd reaction by offshore investors to non-news when the RBNZ released its Statement of Intent. Then it rose when the much better than expected trade data was released. In the end it is essentially unchanged at 68.9 USc, 89.2 AUc, 61.6 euro cents and the TWI is still at 72.7. Check our real-time charts here.

You can now see an animation of this chart. Click on it, or click here.

Daily exchange rates

Select chart tabs

Daily benchmark rate
Source: RBNZ
Daily benchmark rate
Source: RBNZ
Daily benchmark rate
Source: RBNZ
Daily benchmark rate
Source: RBNZ
Daily benchmark rate
Source: RBNZ
Daily benchmark rate
Source: RBNZ
Daily benchmark rate
Source: RBNZ
End of day UTC
Source: CoinDesk

We welcome your comments below. If you are not already registered, please register to comment.

Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.

16 Comments

One thing you might need to know now that you have got home safely is that there has been a bit of a bloodbath today in the Chinese stockmarkets. The main indexes are now down almost 20% from a very recent high. The last two weeks have been dramatic but today takes the rice with an FT estimate of $US770 billion wiped off the two largest indexes and Morgan Stanley saying there is more to come.
You might want to consider the effect of this if you are heading out to an auction tomorrow. It will be interesting to see how foreign buying is affected. It could go either way.

Up
0

Bubble bubble bubble.....bubble ... looks like trouble

Up
0

never going to happen... Auckland property prices only EVER GO UP! We're different... you know that!

Up
0

If it crashes you'll be able to argue against the rate increases.

Up
0

a billion Chinese (okay maybe an exaggeration, probably just 10 million) getting their money out of dodge and into the safe arms of the Auckland property market, will see house prices double in the next five years....

Up
0

might be hard to get their money out of the stock market, as who will buy chinese stocks that are overvalued and moving downwards? They may be willing to pay a premium to get their money out of China( while that window is open) , but does this mean that the long term values are correct? Why would you pay a get out of China premium when you live here?

Up
0

that would take the Auckland market from its already overheated 8 to 1 to 16 to 1. That is impossible IMHO, even 10 to 1.

Up
0

steven, not impossible... your assumption is it's Aucklanders buying Auckland property. I am saying it is Chinese investors buying up the market... 18-1 or 40-1 it means nothing when the money is coming from outside NZ...

Up
0

I agree with you GHH but as I said above will the price remain when the money stops coming. Liquidity doesn't make an economy, it's just money looking for a home.

Up
0

When is the likely timing for the potential GFC 2?
Could it be triggered by the Fed interest rate hike as a catalyst?
Or China imploding, western property popping and Greece dragging Russia into Euro/Middle East politics/conflict?
What are the recommended Financial preparations?

Up
0

the world is awash with debt, black swans are coming, if interest rates rose people will be jumping from 10th floor
the bond market could be first to go
the chinese stockmarket is in technical correction but could turn to crash as it is fed by Chinese retail investors, it is unlikely to cause problems outside Asian as the foreign investment is limited.
it will be interesting Tuesday night with Greece defaulting, that could tip the world into recession as Germany and france will be effected

Up
0

If it goes its going to be big I suspect, ie whatever is the trigger everywhere else will panic and collapse as well.

Up
0

Where is safe? no bank, cash and cash like things, ie stuff that stays liquid no matter what. Cash? Govn can then devalue, gold? Govn can take it. Short term Govn bonds (6~12months)? what if the Govn rolls then into 10 year bonds at maturity as it feels like?

"Recommended" well no debt.

Up
0

If banks start falling over who owns everything?, there's so much debt out there.

Up
0

the debt gets on sold, or becomes bad debt and written off.
Banking is a normal business.

You sell inventory to a window installer, the customer pays the installer a part deposit. Installer goes under, the liquidator says tough luck and takes his fee.

Up
0