Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
No changes to report here.
DEPOSIT RATE CHANGES
No changes here either.
MARSDEN POINT PIPELINE UPDATE
The pipeline has been successfully repaired and the first two million litre batch of jet fuel is on track to arrive at Auckland Airport late tonight, subject to testing of the pipe. Planes will have this fuel available to them Tuesday morning. Another five million litres of fuel will be available Wednesday. Fuel is still being trucked from Marsen Point refinery to the airport and the trucking capacity continues to increase, with 184,000 litres expected to be delivered today. Fuel is also being transferred from Wynyard Wharf via trucks. Flights in and out of Auckland are continuing to look like business as usual, with only four flights being cancelled today.
MOODY'S ON THE ELECTION
Moody's expects fiscal discipline to be maintained with the new coalition government when it is formed and for the government to continue delivering on the budget surplus and debt reduction targets. Spending to address some of the pressure on households' budgets, fast rising housing costs and static real wages will likely be offset by cuts elsewhere. New Zealand's strong economic profile will continue to reinforce robust public finances.
RBNZ CONSIDERS PUTTING INSURERS UNDER MORE SCRUTINY
The Reserve Bank plans to change the way it audits insurance companies. It says it continues to be concerned about the quality of data it receives from the insurers, so will release a consultation document to get feedback on extending its audit requirements in the near future.
HIGHEST PAID NZ CEO
Theo Spierings, chief executive of Fonterra, was the highest paid chief executive in the the country for 2017 with a base salary of $2.463 mln, benefits of $170,036, short term incentive pay of $1,832 mln and long term incentive pay of $3,855 mln. The total pay was $8.32 mln or $160,000 per week.
WHOLESALE RATES LOWER
Local swap rates were slightly lower. All rates from 2 yr to 10 yr are down by -1 bps. The 90 day bank bill rate is flat at 1.95%.
NZ DOLLAR LOWER
The NZD has reversed some of Friday's gains and is trading at 72.8 USc. On the cross rates we are at 91.4 AUc and at 61.0 euro cents. The TWI-5 is now at 75.0. The bitcoin price has risen slightly today, now at US$3,683.
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2 Comments
Moody's;
"• New Zealand’s strong economic profile reinforces robust public finances. High income levels, robust population growth and continued strong Asian demand for New Zealand dairy, tourism and education support strong growth prospects. Moody’s expects real GDP growth of around 2.5% to 3.0% through 2017 and 2018, above the Aaa-rated median of about 2.0%."
HIGH INCOME LEVELS!?!?!?!?!?!?!?!
Good overview / debate of the potential rising cost of debt in Australia from ABC. The bank economist is typically gung ho about "the fundamentals" while the independent analytical nerd (nerd used in the most positive and admirable way possible) gives a sharper look at the reality. Key take out is "credit growth running at 6% while income growth / CPI at 2%".
https://www.youtube.com/watch?time_continue=372&v=f_mnvyLjFDs
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