Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
No changes today.
DEPOSIT RATE CHANGES
NZCU Baywide trimmed a set of term deposit rates today from 9 months to 2 years. They also trimmed their online call account. They were minor downward changes.
NEW SAVER PRODUCT FROM HEARTLAND
Heartland Bank today launched a new saver product, Boost Saver. It pays 3.25% pa for four months, and then reverts to an at-call savings account paying currently 3.00%. Interest is paid monthly. A minimum of $1,000 is required.
NEW GOVT AIMING TO MANAGE TOURISM GROWTH
New Tourism Minister Kelvin Davis gave his first major speech today, to the Tourism Summit Aotearoa. Davis said the new government's priorities include managing growth in tourism, regional economic development, and Maori economic development. "I want to be a minister that listens to the people in the industry and finds out what needs to be done to make sure that we keep growing in a sustainable way. We will do everything we can to make sure that tourism continues to be the jewel in New Zealand’s crown," Davis said.
POPULATION GETTING YOUNGER
Population data out today showed that for the fifth year in a row, the median age has gotten younger. It is now 37.0 years, down from 37.6 years in 2013 which was its peak. The June 2017 level is now the same as for 2011. Males are now their youngest since 2003 at 35.6 years, while females are now their youngest since 2009 at 38.3 years. During the June 2017 year New Zealand's population grew by +100,400 (+2.1%). Natural increase (births minus deaths) was +28,100 and net migration gain (arrivals minus departures) was +72,300. At 30 June 2017, New Zealand's estimated resident population was 4.79 million. There were 2.36 million males and 2.43 million females, equivalent to 97 males for every 100 females. That is a ratio that has been closing over the past ten years.
FINDING PROFITS AGAIN
Geneva Finance, a survivor from the GFC, has reported a +34% rise in profits, following a +45% rise in 2016. Many shareholders ended up with their holding as part of a debt-for-equity swap during the finance company industry crash. The company operates in the car and personal loan segment and has been operating since 2002. (At one time it was majority owned by Peter Francis.)
And speaking of personal finance, new data out in Australia shows that this is the only lending segment getting growth, such that it is. It was up a miserly +0.8% in the year to September. The data shows a -2.1% fall for housing, a -7.8% fall for commercial finance, and a -1.3% fall for lease finance.
NOBODY'S FAVOURITE PLAYTHING ANY MORE
And staying with the out-of-favour theme, data out today from the RBNZ shows that is the case for the Kiwi dollar. The volume of trades has been sinking over the past year and the October level is the lowest since May 2016. There has been a downward trend for over a decade now. And that has been driven by a two-thirds fall in the volume of currency swap trades. Speculation by currency traders is not using the Kiwi dollar.
The newly opened Bunnings Warehouse in Grey Lynn, Auckland has been sold at a yield under 5%. Now another Auckland Bunnings facility has been bundled up with two Sydney and one Adelaide properties in a new deal and sold to CBRE Global Investors, and includes some sites which are still under construction. This new set was also priced at a 5% yield. CBRE's investors are unknown at this time.
WHOLESALE RATES RISE
The long end (three years plus) rose by another +1 bp today. No changes to . The 90 day bank bill rate is unchanged at 1.94%.
NZ DOLLAR DROPS, BITCOIN RECOVERS
The NZ dollar is down nearly ½c to 68.8 USc. On the cross rates we are softer as well at 90.2 AUc and at 59 euro cents. The TWI-5 is now at 72.1. The bitcoin price is at US$6,631, a +US$744 gain from this time yesterday and a +12.6% recovery.
You can now see an animation of this chart. Click on it, or click here.