Here are the key things you need to know before you leave work today.
TODAY'S MORTGAGE RATE CHANGES
No changes for borrowers today.
TODAY'S DEPOSIT RATE CHANGES
The Nelson Building Society (NBS) has reduced its call account rate today by -25 bps to 2.00%.
DAIRY PRICES EDGE HIGHER
Prices of dairy products advanced again after a surprising fall in the last auction. ANZ has raised its milk forecast price for the season to $5.25-$5.50/kgMS. Fonterra is currently indicating $5.25 plus dividend. We updated the Miraka Dairy payout forecast in our industry tally today to $4.70, plus a potential premium of up to 20c.)
GOVT 'PREPARED TO CONSIDER' RETAIL PAYMENTS REGULATION
Commerce and Consumer Affairs Minister Paul Goldsmith has released an issues paper on retail payment systems for public consultation. Goldsmith says concerns have been expressed about the cost of credit card payment fees in NZ, especially in comparison to Australia, and in the context of a decline in the use of EFTPOS. He says the Government is "prepared to consider" regulatory options if competition doesn't moderate costs. Initially the Government is seeking greater transparency around fees paid by merchants. Submissions are sought by December 13.
LOW PAY, BUT NET GAINERS ANYWAY
Some readers may have noticed that we haven't been keeping our AU-NZ pay differential chart up to date. That was originally because the Aussies had a series break and change to their data. (It was also because we overlooked restarting our updates after that interruption.) It's updated now. Anyway, someone on a median income is currently NZ$28,000 per year lower paid in New Zealand than in Australia. In NZ, median pay is $1,142/week, in Australia it is NZ$1,689/week. That is, median pay here is only 68% of median pay in Australia. Back before the GFC, the difference was $20,000 pa. (During the GFC it got at high as NZ$43,000.) Odd thing is, there is a net gain of permanent migration currently from Australia. Money isn't everything, apparently.
INSURER TACTICS CHALLENGED IN COURT
A QC is urging a High Court judge to put an end to an insurers’ 'tactics of delay and dissembling facts' to force their clients to accept lower payouts.
'BEST PRACTICE'
The NZ Super Fund has made a "significant and fundamental" shift in strategy today. The NZ$30 bln Fund has adopted a four-part strategy of carbon footprint reduction, analysis, engagement and searching for new investment opportunities that will be winners in climate change, disinvesting in firms that accentuated the risks. The strategy will be applied across the Fund’s entire portfolio. The Fund says climate change is a material investment issue with risks for long-horizon investors. They committed to report publicly on the levels of reduction in the Fund’s carbon footprint.
WHOLESALE RATES PULL BACK
Swap rates have pulled back from yesterday's sharp jump higher. But the retreat is only -1 or -2 bps, leaving the levels still at 90 day highs. The 90-day bank bill is unchanged at 2.13%. Yields for NZGBs are the ones that have moved today, booking +3 to +5 rises following yesterday's swap rate gains.
NZ DOLLAR FIRMS FURTHER
The NZD/USD is now at 72.2 USc. On the cross rates, it is trading at 94 AUc, and is at 65.7 euro cents. The TWI-5 is now at 76.1 putting it up ½c since this time yesterday. Check our real-time charts here.
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