Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
There are no changes to report today.
DEPOSIT RATE CHANGES
TSB Bank reduced all its lower tier level term deposit rates, cutting them by -25 to -50 bps.
VERY POSITIVE SIGNALS
The ANZ Truckometer indexes continue to give buoyant signals about the economy. The Heavy Traffic Index was flat on the month, but is up +5.9% year-on-year. The Light Traffic Index matched the previous month’s increase, and is up +3.6% year-on-year. ANZ says this data suggests a Q2 GDP outturn of over +1% above Q1 2017. "The upward trend in the Light Traffic Index has returned with a vengeance, suggesting solid activity in the back half of the year."
OFF SEASON FILLIP
Guest nights were up +7.3% in May 2017 compared with May 2016, with increases in all the regions, Stats NZ said today. The biggest rises were in Canterbury, Bay of Plenty, Auckland, and Northland. The Lions rugby tour, which had its first game in Northland in early June, may have had some impact in May. However the impact on guest nights will likely be clearer in next month’s accommodation figures, they said. The overall May occupancy rate was a record for that month at 37%, and far above the previous May record set in 2016 at 34.8%.
IN THE TOP TIER
New Zealand has been listed as one of the top digital economies in the world in the 2017 Digital Evolution Index by the Fletcher School at Tufts University. The research identifies Singapore, the United Kingdom, New Zealand, the United Arab Emirates, Estonia, Hong Kong, Japan, and Israel as digital elites "characterised by high levels of digital development and a fast rate of digital evolution". The Index tracks the progress countries have made since 2014 in developing their digital economies and integrating connectivity. New Zealand’s strong digital economy was ranked high because of a positive combination of infrastructure, incubating start-ups, a cultural commitment to innovation, and government support.
EXPLAINING BANKNOTE SECURITY
If cash is still relevant to you, the RBNZ has developed a short video to help the you identify the ‘real deal’ Brighter Money banknotes. The video explores the banknote’s security features, showing how to identify a genuine banknote by the ‘look, feel and tilt’ sensory approach used by other central banks to identify a counterfeit. But you have to ask: if released today, could 'cash' meet current AML/CFT standards?
SLIPPING NEGATIVE ...
There was Aussie building activity data out today for projects completed and it was generally weak. Residential work completed was -2.3% lower in the March 2017 quarter than the same quarter a year ago, the first time in five years that has occurred. A recovery in their non-residential building however couldn't make up for the drag from the residential sector.
... BUT MOST OTHER SECTORS ARE DOING WELL
However, you would know this by reading the NAB June Australian business Survey. Their business conditions index rose to its highest level since the GFC, and the business confidence index rose as well, both being well above their long-run averages. Most industries are performing well in the Survey, which reflects positively on the broader economic environment, although condition in the mining sector have dropped back into negative territory reflecting movements in major commodity prices. In contrast, the retail sector is finally showing an improvement, although it is still notably softer than most other industries in the Survey.
JUNE REINZ DATA DUE
For those of you waiting on the June REINZ results, we will have them here tomorrow morning at about 9 am.
WHOLESALE RATES SLIP FURTHER
Wholesale swap rates are down again across the board, today by another -2 and -3 bps. The 90 day bank bill rate is unchanged at 1.98%.
NZ DOLLAR DOWN TOO
The Kiwi dollar is holding against the greenback at 72.3 USc. But on the cross rates we are a lower again against the Aussie, trading now at 94.4 AUc and at 63 euro cents. That leaves the TWI-5 at 76.1. Bitcoin is sharply lower on the day, down -2.3% from this time yesterday to US$2,290 and that is a 50 day low low. Actually, one month ago, bitcoin reached an all-time high of US$3,019, so it has lost a quarter from then.
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5 Comments
Jafalad. Monday 7.44 am . "Hot off press: sold my two bed unit (59m2 ) in Onehunga last night via Harcourts auction. In the four week campaign over 60 buyers(sic) came through with six different bidders at the auction. Sold for $511000. Not too sure that prices are falling yet and the buyers are certainly still out there and I'm seeing a few more investors out there too. " Well Jafalad according to the Harcourts auctions data, the property is unsold. Another real estate agent or things just do not add up. Pity about your finances though and the leaking roof.
Just sounds like a RE Agent or a PR company hired by (who would have a big interest in this).
I do feel sorry for anyone paying over $500k for an apartment, the finance costs, body corporate fees, recladding/fire sealing/structural upgrading requirements that come out of nowhere are crippling. Then factor in the apartments where the land is leased on top of that and it doesn't sound very desirable.
The best option is to not buy in Auckland and instead move somewhere else where you get better pay and cheaper living costs. Why risk taking out a large mortgage in a falling market?
The Ruataniwha dam has been declared dead in the water by the council that has spent millions of dollars developing it.
Through its investment company, Hawke's Bay Regional Council has spent several years and about $20m planning a water storage scheme to irrigate drought-prone land on the Ruataniwha Plains in Central Hawke's Bay.
But the project suffered a major setback last week when the Supreme Court ruled a land-swap required to free up conservation estate land required for the scheme had not been legal.
After the court ruling, the Government signalled it was prepared to legislate around the decision, but a regional council committee was told on Wednesday that such a process could take up to two years, if it happened at all. Read more
Can one conclude the white gold rush is dead in the water too?
Furthermore, it is past time for councils to get out of the business model development front funded by debt underwritten by ratepayers. There are private others better equipped to gauge the viability of such schemes from the outset. If they are not interested, so be it.
Tributes to Trump's America from it's allies are cemented in realpolitik deals.
Australia seems to be in the firing line this week.
https://sputniknews.com/business/201707121055458156-us-tank-ammo-sale-a…
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