A review of things you need to know before you go home on Monday; Kiwibank hikes TD rate, confidence rises, Synlait finally makes a decent profit, services expanding, swaps and NZD steady

A review of things you need to know before you go home on Monday; Kiwibank hikes TD rate, confidence rises, Synlait finally makes a decent profit, services expanding, swaps and NZD steady

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

TODAY'S MORTGAGE RATE CHANGES
No changes to report today.

TODAY'S DEPOSIT RATE CHANGES
BNZ cut its savings account rates by -5 bps to 0.50%. Kiwibank raised its six month term deposit rate by +10 bps to 3.60%.

CONFIDENCE DEPENDS ON INCOME
Westpac reported its quarterly consumer confidence data today, which mirrors the ANZ version pretty well. See them both charted here. Westpac's intreptation is that "households are feeling a bit more upbeat. But just a little bit." They noticed that "things look a bit different for those households earning less than $50,000 a year. These households did report a slight improvement in confidence in September. Nevertheless, they remain noticeably less upbeat about the economic environment than others households."

FINALLY, AN OK RETURN (6.3% OF SALES)
Dairy company Synlait has reported a tripling of their profit for their long-suffering shareholders on the back of strong demand for infant formula. They raised their 2015/16 payout marginally to $4.02, and have set a higher forecast payout for 2016/17 of $5/kgMS. This is a company owned 39% by Chinese SOE Bright Foods. It has been a regular underperformer, but this year is the best in the past five in terms of profits. Still, its revenue is still -9% lower than two years ago. Fonterra will be reported its result on Thursday. Here is a list of dairy payout levels by dairy company.

A BRIGHTER OUTLOOK
Today brought more rises in WMP dairy futures pricing. On top of last week's gains, this indicated the dairy auction on Wednesday should be a good one again.

SUPER SERVICE RETURNS
New Zealand's services sector expanded faster in August in all main areas, according to the BNZ - BusinessNZ Performance of Services Index. The key PSI sub-indexes improved from July, with activity/sales (61.6) and new orders/business (60.8) both rising back above the 60 point range, which are very high levels.

A POSITIVE START
Apart from the ASX200 (which has had an embarrassing delayed opening), all the equity markets in our time zone are higher today. Taiwan is up +2.4%, while Hong Kong and Shanghai are both up more than +0.5%. The NZX is up only very marginally however.

KNOW YOUR CREDIT SCORE?
The launch of CreditSimple.co.nz today gives New Zealanders instant and free online access to their credit scores for the first time. 92% of Kiwis don’t know their credit score and 72% don’t know what a credit score is. Credit scores are a common test of credit-worthiness in the US and Australia, but in New Zealand many people are unaware of the power credit scores have in determining whether they can get a mortgage, take out a personal loan or even open an electricity account. Credit scores also give financial institutions the ability to risk-price their offers. "From ..." will become ubiquitous.

WHOLESALE RATES STEADY
Swap rates are only minorly changed today, up +1 or +2 bps across the curve. You can find our chart for all terms of swap rates here. The 90 day bank bill rate is down -1 bp at 2.23%.

NZ DOLLAR SETTLES IN
Our dollar has risen back over 73 USc after being below that level over the weekend. It is now at 73.1 USc. On the cross rates, it is at 96.9 AUc and 65.4 euro cents. The Trade Weighted Index (TWI-5) at 76.5, exactly where it was at this time on Friday. Check our real-time charts here.

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USD 
NZD
End of day UTC
Source: CoinDesk

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The Reserve Bank of Australia reaffirmed its commitment to targeting inflation when setting interest rates in Governor Philip Lowe’s first day on the job.

The central bank will maintain its 2 percent to 3 percent goal as part of its Statement on the Conduct of Monetary Policy agreement with the government, Treasurer Scott Morrison said in a statement. While the accord is largely similar to the previous one agreed in 2013, it includes a “clearer expression” of the target’s flexibility and acknowledges that financial stability considerations can be relevant to monetary policy settings, he said.

BIS has something to say about financial stability

Headline inflation in Australia hasn’t been above 2 percent since September 2014, while the second quarter’s 1 percent increase was the lowest reading this century. The central bank last month said it expects inflation to pick up next year, rising to between 1.5 percent and 2.5 percent by the second half. Read more

Based upon what? Evidence? I doubt that.

glad to see synlait stopped trying to follow Fonterra with WMP and made its own path stepping up production of higher yielding baby food

more corruption uncovered, 400 bucks and off you go with you P license '
seems to be a trend dodgy exams and NZQA have no idea.as long as the money keeps rolling in and cheap workers , interesting how they are only get caught when a whistle blower comes forward
http://www.newshub.co.nz/nznews/shameful-auckland-taxi-school-lets-stude...
http://thewireless.co.nz/articles/why-are-so-many-indian-students-coming...

If there were any journalists not asleep at the wheel, they'd have a bit of a delve into the ownership of the PTE's. What a wonderful opportunity for a vertically-integrated criminal scam.

Wake the hell up, Stephen Joyce. This is not an export industry. This is a fraud, it's destroying our economy, thousands of student visa holders are being scammed and victimised, and the government is complicit in it. The international student visas need to be limited to legitimate universities and polytechs.