A review of things you need to know before you go home on Monday; BNZ sets 3yr rate at 4.49%, house prices fall, dairy farm sales fall, concrete production down, swap rates fall

A review of things you need to know before you go home on Monday; BNZ sets 3yr rate at 4.49%, house prices fall, dairy farm sales fall, concrete production down, swap rates fall

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

TODAY'S MORTGAGE RATE CHANGES
BNZ today adopted 4.19% as their 2 year 'special' joining TSB Bank, Westpac and ASB. Kiwibank still has the lowest 2 year rate at 3.99%. But BNZ also now offers a 4.49% three year 'special' which is the lowest 3 year rate in the market today.

TODAY'S DEPOSIT RATE CHANGES
Kiwibank tweaked its 4 and 5 month rates. Their 4 month rate is now 3.35%, the highest for any bank for that term. And it is now the highest bank rate for any term of 6 months or less.

HOUSE PRICES HEAD SOUTH
There was a big drop in average prices reported by Harcourts in April. These reductions extended to Auckland where the average price fell by almost $78,000.

DAIRY FARM PRICES HEAD SOUTH TOO
The REINZ today reported that dairy farm prices fell more than -24% year-on-year, matched by a big drop in sales volumes too. But they also reported that lifestyle block sales are still booming.

INSIDER NOW ASB'S HEAD OF WEALTH & INSURANCE
ASB has named Adam Boyd as executive general manager for wealth and insurance. Boyd, who has been at ASB since 1995, is currently the bank's general manager of global markets, strategy and product. He succeeds Nicholas Stanhope, who has been appointed CEO of Sovereign Assurance Company Ltd. Boyd's appointment is pending RBNZ approval.

LAWYER NEW HARMONEY CHAIRMAN
Peer-to-peer lender Harmoney says current director David Flacks has been appointed chairman, replacing Rob Campbell who surprisingly left in December. Flacks is an ex-Bell Gully partner and is also a director of Vero. Stuart McLean is shareholder Trade Me's new director on the Harmoney board replacing Jonathon Klouwens. Harmoney says to date it has facilitated $250 million in lending and paid $20 million in interest to investors.

DOWN BUT UP
National ready-mixed concrete production in the March 2016 quarter was almost -3% lower than the same quarter a year ago. But this was due to the Christchurch rebuild passing its peak. Concrete production in the Garden City was down -18% over the same time-frame. On the other hand, production in Auckland is ramping up. It is now 35% of national production and climbing. But it grew only +5% from the same quarter a year ago.

'10c EARLY'
Fonterra will pay the first installment of its proposed 20c final dividend for this year on June 7; the co-operative expects its 'good' financial performance will continue and expects it total dividend for the year to be "45-55c".

NOT FOLLOWING WALL STREET
All the stock exchange indexes in our time-zone region are higher in opening trading for this week. That includes the NZX, the ASX, Singapore, Hong Kong, Shanghai and Tokyo. This follows falls on the three Wall Street markets over the weekend.

SWAP RATES FALL
Wholesale interest swap rates fell today. They are down -3 bps across the curve today. NZ swap rates are here. The 90-day bank bill rate is also lower, by -1 bp to 2.34%.

NZ DOLLAR UNCHANGED
We are back in an in-range holding pattern with very little net movement today. The Kiwi dollar is now at 67.7 USc, up to 92.8 AUc, and 59.8 euro cents. The TWI-5 is still at 71.3. Check our real-time charts here.

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Source: CoinDesk

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5 Comments

I continue to be alarmed at the news coming out of China . In my humble opinion their debt levels are unsustainable.

Chinese banks hold a staggering 40% of the entire worlds debt , ( they only produce 16 % of World GDP) and their debt to GDP has gone from 150 % to nearly 250% , that's concerning because this is higher than Greece and other countries who are in trouble.

The biggest bank in China by assets is ICBC, and it is one and a half times the size of Bank of America, its really big

Worse still , the Chinese debt numbers are eye wateringly large, we're are not talking a couple of Trillion here or there like EU debt

I don't think this is going to end well .

In due course , commentators will say the tell tale signs were there all along .......... In hindsight of course

Dp

Boatman,
Can we apply the normal measures to the chinese economy?
Most large organisations are jointly managed by the Communist party i believe and cities are jointly ruled on the samr basis effectively
The reserve bank or its equivalent stands behind every organisation.
In the in the current rationalisation the local bodies were ordered to liquidate capacity and their losses are to be picked up by the central goverment.
It aint wall street....or is it...

Boatman,
I have been reading similar stuff. I think it will end in tears but the Govt will kick the can a bit further down the road. That is why the wealthy Chinese are trying to get as much wealth out of China before it goes down the pan.

If that happens the money taps get turned off and the property market will shrivels up. The wealth may end up being illusory.