A review of things you need to know before you go home on Monday; Barfoot's December weak, Aussie housing approvals low, China smog spreading, Dow nears 20,000, swap rates turn up, NZD stable

A review of things you need to know before you go home on Monday; Barfoot's December weak, Aussie housing approvals low, China smog spreading, Dow nears 20,000, swap rates turn up, NZD stable

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

MORTGAGE RATE CHANGES
NZ Home Loans tweaked their fixed rates

DEPOSIT RATE CHANGES
No changes to report today.

UNUSUALLY QUIET
Barfoot & Thompson released their December sales results today for Auckland house sales and they were a little shaky. Prices were down, and sales volumes were unusually low for a December. Listing levels were higher than usual. In fact, prices have now fallen in both median and average terms for both November and December and that has not happened before since 2001 when modern records are available.

NO BOUNCEBACK
In Australia, housing approvals came in unusually low in November, after failing to bounce back from a very weak October. Approvals for more apartments were a bright spot. But their overall construction industry declined for the third straight month. And after four consecutive monthly rises, the ANZ job ads data fell sharply in Australia in December, the first fall since July 2016. This weakness is consistent with softer business conditions and corporate profitability.

SPREADING
China's terrible smog crisis is growing. Hong Kong is suffering second-hand smog from China.

TURNING?
The last two dairy auctions brought price falls and the last one saw the WMP price fall -7.7% to US$3,294/tonne. However, today's futures market has sparked a small turnaround in WMP prices, which are now up to US$3,355, a +2% reversal. The next auction is on January 18.

MEANINGFUL?
At the end of trading on Wall Street on Friday, the Dow index finished at 19,964. This index has been toying with the 20,000 level for a week or so, and when it breaches it, trumpets will sound. What for, I am not sure, but it will be seen as a milestone. In our timezone today, most equity markets are higher. The ASX is up +1.1%, the NZX50 is up +0.5%. Tokyo however is a little lower today.

WHOLESALE RATES UP
NZ swap rates are up by +1 to +5 bps across the curve today. This comes after a weak period over the holiday break when rates slipped well back. The 90 day bank bill is now at 1.99%, up +1 bp.

NZ DOLLAR STABLE
The currency market is very quiet today; New York is still on the weekend and trading is thin locally. The NZD is at 69.7 USc. On the cross rates, it is at 95.2 AUc, and at 66.1 euro cents. The TWI-5 index is at 76.2. None of this is much different to where we were just prior to Christmas. Check our real-time charts here.

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USD 
NZD
End of day UTC
Source: CoinDesk

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Yes rents will rise cause interest rates are rising, many people don't understand that

Really? I would have thought they would already be charging as much as the market can stand? If the market could tolerate an increase, why would a landlord wait until his costs have gone up?

The alternative is rents do not go up, but distressed sales occur, new owner buys at more realist price and rents remain stagnant.

Speculate we can, but time will tell.

Blood from a stone springs to mind. Wonder how that would pan out if there were no handouts for landlords from the public purse in the form of accommodation supplements?

Ah yes, the unbiased comments/hopes of the president of the property investor association.

Best returns come from stable long term tenants, not rent increase for the sake of it.

Good news egg farmers (though perhaps a tad too late) - 40 years of consensus "science" laid to rest: "The nation’s top nutrition advisory panel has decided to drop its caution about eating cholesterol-laden food, a move that could undo almost 40 years of government warnings about its consumption."

https://www.washingtonpost.com/news/wonk/wp/2015/02/10/feds-poised-to-wi...

Barfoots sales to listings past 3 months running at 52 % down from 65 % last year. . what happened to the demand .

I think I'm in love with the Russian foreign minister, wife is relaxed about it for now but I can see trouble in the future, have asked for pictures of her mother.

https://www.youtube.com/watch?v=KB9ykchRK88

Gee Paula better scrub up her poi skills

"Dow Jones index has been toying with 20000 level for several weeks"

On Friday Night it reached a high of 19,999.63 before easing to close at 19964

Weak rejection, but, for all practical purposes it has done 20000