A review of things you need to know before you go home today; vulnerable sellers targeted by property investors; NZ's tax liability increases; Westpac financial results; inquiry into big four Aussie banks; local rates up; NZD stable

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

MORTGAGE RATE CHANGES
Kiwibank and AMP Home Loans have increased their floating loan and revolving credit rates by +15 bps. The floating rates currently sit at 5.70% for Kiwibank and 6.24% for AMP, with AMP priority customers getting loans at 6.14%.

DEPOSIT RATE CHANGES
No changes to deposit rates today.

PROPERTY INVESTORS TARGET VULNERABLE SELLERS
ANZ is ending its sponsorship of the Auckland Property Investors Association (APIA). This follows a weekend report in the NZ Herald about a video made by property coach and investor Ron Hoy Fong encouraging investors to give false names and target desperate homeowners. It was distributed free to APIA members. “We met with APIA this morning and advised them of our decision to terminate our sponsorship agreement," said Antonia Watson, ANZ managing director for retail and business banking. “We have zero tolerance for being associated with people who recommend exploitation of individuals for their own benefit.” The REAA has also released a statement asking its licensed agents to keep on top of such developments and do thier best to protect their clients. They also say that sellers should look to engage a lawyer to help them navigate the property sales process and use a licensed agent as there is more legal protection afforded to the seller if something were to go wrong.

TAX FREEDOM DAY
The annual report by Staples Rodway that calculates the day New Zealanders have paid off their tax bill for the year and can from that point onwards keep their income says that this year the number of days taken to pay the country's tax bill has increased by six days and the amount of tax paid is up to 34.8% of income, an increase of 9.5%, more than double the increase last year. During the same period, the GDP has increased by 5.6%. The increase was primarily attributed to company profits and bracket creep for individual tax payers.

2% RISE IN CASH EARNINGS
Westpac's cash earnings for six months ended 31 March 2017 increased by 2%, to $462 mln, compared to 2016 results. However, net operating income fell 1% and operating expenses rose 2%. Net interest margin was also lower by -22 bps, down to 1.96%. The reduction in net interest margin is attributed to increased funding costs and strong lending competition.

'BIG FOUR' INQUIRY
The Australian Productivity Commission will conduct an inquiry into competition in the countries financial system after public outcry of the Big Four banks misusing their market power, with more than 80% market share. The commission is set to examine the barriers to entry to innovation the banking system and look at competition in the personal and small business banking segments. The inquiry will begin on July 1 and the report should be out mid next year.

FIRST IN NINE MONTHS
While the fall in Australian building consent numbers on a year-on-year basis was greater than expected, -19.9% as opposed to -10% expected, the Australian Bureau of Statistics says that the number Australian building approvals reversed the declining trend of eight months to rise +0.8%, in trend terms, with the biggest rise coming in New South Wales (+3.0%). Values of building consents issued, on the other hand, just rose 0.1% in March, in trend terms. The first rise in eight months.

HIGHEST IN NINE YEARS
The NAB monthly business survey says that business conditions in Australia are at the highest level since 2008 at +14 points, compared to the long run average of +5. Business conditions look to be improving across all industries, with the exception of retail.

WHOLESALE RATES HIGHER
Local swap rates are up +2 bps across the curve with the exception of the 1 yr rate which was unchanged at 2.34%. The 2 yr rate is at 2.34% and the 10 yr rate is at 3.43%. The 90 day bank bill is unchanged at 1.98%.

NZ DOLLAR STABLE
After rallying on Friday, NZD opened this morning at 69.1 USc and still trades at that level after testing the 68.9 USc level this afternoon. On the crosses we are up to 93.3 AUc and 62.9 euro cents. The TWI-5 is now at 73.9, up from at the same time Friday.

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