Here are the key things you need to know before you leave work today.
TODAY'S MORTGAGE RATE CHANGES
There were no mortgage rate changes announced today.
TODAY'S DEPOSIT RATE CHANGES
Heretaunga Building Society cut their 6 month TD rate today.
TODAY'S KEY DATA
Global dairy prices sink another -9.3% ahead of Fonterra's board meeting on Friday which will decide the forecast milk price for farmers this season, ANZ now picks a payout level of around $3.50/kgMS.
BUBBLE CITY
Auckland house sales volumes surged in July but prices flattened out. Barfoot & Thompson says Auckland housing market is now "fully priced". Apart from December 2014, Barfoots now have their lowest number of listings since this data was publicly available in 2001, representing just 9.2 weeks of sales at the current rates. Very low supply accentuates the demand pressures.
A TOUGH CROWD
Analysts generally were unimpressed with our employment and labour income data today, branding it 'weak'. The participation rate was 68.9%* at June, employment levels are up +67,800 year-on-year when the labour force rose +77,800 in the same period. The average hourly wage was up +2.8% and the average weekly earnings were up +3.2% over the year. Those analysts are damn hard to impress. (* All data in my review is 'actual' and not 'seasonally adjusted'.) But maybe the RBNZ will look at ~3% wage inflation differently.
CHINA SERVICES STAR
We hear all the time that China's factories are struggling. But data out today shows that activity in their services sector expanded at its fastest pace in 11 months in July, thanks to stronger new business.
WHOLESALE RATES RISE
Swap rates rose today with a slightly steeper bias. They are up +2 bps to five years, +5 bps to 10 years. The 90 day bank bill rate has not had the same effect and is still at a low 3.03%.
NZ DOLLAR HOLDS, JUST
The US dollar has gained sharply today, especially against the euro. Our currency suffered from that and the two negative local data events today. But the Kiwi's decline is less than you might expect in the circumstances. The NZ dollar is currently at 65.3 USc, at 88.7 AUc, and at 60.1 euro cents. The TWI is at 70.2. Check our real-time charts here.
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5 Comments
Global dairy prices sink another -9.3% ahead of Fonterra's board meeting on Friday which will decide the forecast milk price for farmers this season, ANZ now picks a payout level of around $3.50/kgMS.
Pumped and dumped. Were there any greater fools?
Chairman was asked why Fonterra don't state what they are actually returning when they do a new payout 'prediction'. Answer: We don't want our competitors to know our true situation. Will give you where we see the market going instead. Tui.....
So to hell with giving shareholders the actual information they need for their business. Oh the joys of TAF........;-)
REVEALED…..THE REAL REASON CHINA’S A BASKET CASE, AND THE REAL SIZE OF THE CLIENTELE THAT BENEFITS FROM THE SHADOW BANKING SYSTEM
https://hat4uk.wordpress.com/2015/08/05/revealed-the-real-reason-chinas…
The considered explanation.
This is the broadest perspective in which we can understand the rise of the shadow banking system. It explains why it is misleading to think about credit, duration, and liquidity transformation, and more appropriate to think about the intermediation of these risks between cash and risk portfolio managers across the financial ecosystem and – by inference – the real economy. That is, credit to the real economy is extended either through dealers’ securities inventories or via credit intermediation chains that go from cash portfolio managers through dealers’ matched repo books to risk portfolio managers to fund leveraged bond portfolios. Read more
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