Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
BNZ has changed all its home loan rates today, pushing them up by between +3 and +30 bps. And that includes its floating rates which rose by +15 bps.
DEPOSIT RATE CHANGES
BNZ raised its 9 and 18 month TD rates today by +5 and +10 bps respectively. They also raised TD rates for 3, 4 and 5 years by +30 bps or more. UDC also raised four selected TD rates today, all by just +5 bps
QV is reporting that the average Auckland house price has inched back to $1.1 mln while the National average roses to $628,000 in the three months to December. They also note that uncertainty remains over whether LVR restrictions and looming interest rate rises will keep slowing house price growth.
THE PROFESSIONALS QUIT GOLD
The World Gold Council is reporting that total holdings in physically-backed gold exchange-traded products (ETPs) stood at 2,142.4 tonnes which was 7% lower from a month earlier. The majority of the decline was borne by funds in North America and Europe. Gold holdings in Asia also fell with China’s holding slackening further in December.
HOME EQUITY HIGH, CAR BUYING STRONG
In 2016, 146,939 new vehicles were sold in New Zealand, with 11,225 sold in December alone. In fact, that is the highest December total ever. The average December since 2000 is just 7,100, so 2016 is more than 150% above that. We will get the used import data in a day or so.
After months of denial by ANZ-NZ, today the bank said it had agreed to sell UDC to a giant Chinese asset finance and leasing company HNA Group for NZ$660 mln. All UDC staff will keep their jobs and the existing lending programs will be maintained. This deal is subject to regulator approvals, but is unlikely to face any issues. Whether HNA really need local investors to fund their lending is not clear at this stage.
STRONG LOCAL LABOUR DEMAND
Job ads rose +1.6% in December to be +18.8% higher than a year ago. This is the strongest annual growth since late 2011. Job ads have now risen for 16 months in a row. Such a string of increases flags very strong demand for labour says surveyer ANZ. Although not as strong, something similar is going on in Australia.
ON THE WAY BACK
Each day brings higher values on the dairy futures trading platform for WMP. These indicators now show we should expect a +4% price rise - although that is not enough yet to make back the January 3rd -7.7% fall. The next auction however is not until January 18, 2017. Still, the rises in the futures pricing does support the Rabobank advice that the price trend is strengthening.
LOSING THE FORMULA
Under-pressure Aussie infant-formula firm Bellamy's has today sacked it CEO, and amended its manufacturing agreement with Fonterra. Its share price fell more than -40% when it returned to trading today.
WHOLESALE RATES UNCHANGED
NZ swap rates are unchanged today. The 90 day bank bill is up +1 bp and now at 1.99%.
NZ DOLLAR DOWN
The currency market is lower than at this time yesterday, but most of the decline happened overnight. The NZD is at 69.9 USc. On the cross rates, it is at 94.8 AUc, and at 66.3 euro cents. The TWI-5 index is at 76.2. Check our real-time charts here.
You can now see an animation of this chart. Click on it, or click here.