A review of things you need to know before you go home Tuesday; ANZ shifts TD rate, FE trims theirs, CPI rises, Orr's pay challenged, farm sales dip sharply, ANZ sells OnePath, swaps up

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

MORTGAGE RATE CHANGES
No rate changes today.

DEPOSIT RATE CHANGES
ANZ shifted its key rate to 3.60% for nine months (from 3.50% for eight months which has reverted to 3.30%). At the same time it trimmed -10 bps from its 1 year rate to 3.25%. FE Investments has cut all its rates from 1 to three years and eliminated its nine month rate.

INFLATION HIGHER THAN EXPECTED
Housing, insurance and food price pressures have pushed up CPI inflation to near RBNZ’s 2% target. The annual rate of 1.9% is slightly above market expectation, and well above RBNZ’s 1.6% forecast. Swaps rates rose on the news. The NZD rose marginally.

SUPER FUND BOSS ADRIAN ORR'S PAY RISE 'NOT JUSTIFIED'
The NZ Superannuation Fund's annual report, released today, shows CEO Adrian Orr's total remuneration increased 15% in the June year to $1,217,112. State Services Commissioner Peter Hughes says his advice to the board was that an increase of this size was not justified. However, Hughes says the board made its own decision and did not follow his advice. The Super Fund's annual return, after costs and before tax, was 20.71%. It now stands at $35.4 bln. Orr has been in his role for 10 years.

FARM SALES VOLUMES DOWN, PRICES UP
September quarter farm sales volumes fell 30% year-on-year according to the Real Estate Institute of New Zealand. There were 271 sales in the quarter but only 85 in the month of September. Prices fared better than sales volumes with the REINZ All Farm Price Index up 11%.

LIFESTYLE BLOCK SALES DOWN, PRICES UP
Meanwhile, the REINZ says sales of lifestyle blocks also fell during the September quarter, by 23% year-on-year to 1716, just 572 in the month. However, the median price for lifestyle blocks was up 12.3% compared to a year earlier.

ANZ SELLS ONEPATH TO IOOF HOLDINGS
The ANZ Group says it's selling its OnePath pensions and investments and aligned dealer groups business to IOOF Holdings Limited for A$975 million. The deal sees ANZ enter into a 20-year strategic alliance to make available IOOF superannuation and investment products to ANZ customers. ANZ says the sale provides it with greater flexibility to consider options for its life insurance business including strategic and capital markets solutions.

STAGNANT
Australian vehicle sales were down -2.4% in September compared with the same month a year ago. For the year to September they were unchanged. That contrasts with New Zealand where the same data is +4.5% and +11.5%.

WHOLESALE RATES UP
Local swap rates are all up +2 bps today across the board 2-10 years. The 90 day bank bill rate is unchanged at 1.93%.

NZ DOLLAR UNCHANGED
The NZ dollar is level at 71.6 USc. On the cross rates we up a little at 91.3 AUc and 60.8 euro cents. The TWI-5 is now at 74.5. The bitcoin price is also little changed today to US$5,652.

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13 Comments

James Shipton, the new chairman of the Australian Securities and Investments Commission...is a child of the Melbourne establishment...

Whew! That's a relief. For a minute there I thought we'd end up with vested interests in charge of our oversight bodies....

http://www.afr.com/news/politics/asic-chairman-james-shipton-is-a-child-...

Tory pedigree and a prior lead role at the Vampire Squid. Extremely well qualified and suitable.

Bark beetles: How tiny tree killers have worsened California's wildfires

http://edition.cnn.com/2016/08/24/us/california-wildfires-worsened-by-ba...

California tree loss is merely part of a world wide epidemic.
http://e360.yale.edu/features/whats_killing_the_great_forests_of_the_ame...

What else happened today?

Bill English's audio statement to the Police re Todd Barclay was released [Link]

"I had a conversation with him regarding Glenys Dickson leaving his office and he said to me that he had recordings of her criticising him," English told Detective Superintendent Peter Read

...

"He said he just left the dictaphone on."

...

Barclay admitted that he may have misled media with "specific" comments but refused to resign....Barclay has now moved to London...

A police spokesperson refused to comment on Tuesday, other than to say the investigation is "ongoing". It is almost four months since it relaunched.

And

English prevaricated his way through 15 minutes of questions from reporters on the way into National's caucus meeting in the hope the story might go away, saying seven times that he could not recall if Barclay had told him about the recording. He even said he had confidence in the first-term MP, despite Barclay revealing evidence of an illegal act against an electorate agent that English had known and respected for 17 years.

Just metres away at the same time, Barclay was denying to reporters that he had made a recording or had spoken to the Prime Minister about it. That started the clock ticking.

Even during the questioning before the caucus meeting, English could sense he was in trouble when Newsroom's Sam Sachdeva asked him if he had made a statement to the police about it. English confirmed the statement, but then could not recall what he had told police in the statement. He then said he would not release the statement and then failed to answer questions about how he could have made a statement to police about a conversation, but now could not recall it.

It looked like he had been caught unprepared to defend something he wasn't comfortable defending.

Once English knew that Newsroom knew about the police statement, he could not be sure it would not come out to make fools of both Barclay and English. So some time between 10am and 2pm he decided to cut at least some of his losses and throw Barclay under the bus.

[Source]

And this is crazy stuff, even not declaring electorate donation: https://www.newsroom.co.nz/2017/06/25/35873/barclay-affair-what-the-boar...

You'd hope those who cared about integrity when it was Turei also care about integrity when it's English.

4 months and nothing new. The police had the PM of the country confirming the crime yet there is no prosecution after all this time.

Hard not to believe there has not been some helpful career advice given to the boys in blue by dear uncle billshitter.

Locals thought he had "sold up", headed to Oz and points further.

"Cannot Recall" is another way of saying....my memory lies in wait....vote for me...at your peril.

But some did.

If my memory serves me correct.?. Tick.

I just hope we do not have to put up with this prevarication...much longer.

But then....when one lies down with thieves, one gets ticks, if the price is right......eh?. Nod, nod...wink...wink.

Maybe the Police concluded Bill English is not a reliable witness?

Panama Papers journalist killed today by bomb.
http://www.newstalkzb.co.nz/news/world/bomb-kills-reporter-who-exposed-p...
Be careful of exposing global corruption. NZ is seen as a soft touch as a vehicle for foreign hidden trusts.
https://www.lawsociety.org.nz/lawtalk/lawtalk-archives/issue-896/new-zea...

Interesting discussion http://www.radiolive.co.nz/home/audio/2017/10/the-latest-in-business---b... especially that about bonds, and Chinese money.