Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
No changes today.
TERM DEPOSIT RATE CHANGES
None here either, today.
NO CHANGE LIKELY
There is another dairy auction tomorrow morning. Current pricing on the derivatives market suggests there will be no change to the WMP price. And for SMP, that is indicating little change as well. (Unless bidders are holding back pricing intentions, which sometimes happens.)
GOVT ACTS IN ATTEMPT TO 'STOP EROSION OF NZ AS A GOOD PLACE FOR HONEST BUSINESS'
Commerce & Consumer Affairs Minister Kris Faafoi has released a MBIE consultation paper on increasing the transparency of the beneficial ownership of NZ companies and limited partnerships. MBIE has included three options and favours one that would see beneficial ownership information included on company & limited partnership registers with public access. A beneficial owner is defined as; Persons who own or effectively control a corporate entity, such as a company. They may own or control the entity indirectly, such as through intermediaries, and may be different to the legal owners. For example, a person may be a beneficial owner of a company if they control at least 25% of the voting rights or if they have the power to appoint directors, MBIE says. Faafoi says the Government wants to "strengthen our corporate governance to stop erosion of NZ as a good place for honest business." Submissions close on Friday August 3.
'AUSSIE BANK STRENGTH HOLDS UP NZ ECONOMY'
Ratings agnecy Fitch says the strength four four largest banks supports their respective Viability Ratings, and that collective strength helps to offset New Zealand's "continued high macroeconomic risks".
WHINERAY APPOINTED CAPTAIN
The NZ Super Fund has found Adrian Orr's replacement after a global search - and he was already working at the Fund, in fact already working as its acting-CEO. They have appointed Matt Whineray permanently to the role.
House prices are falling in Australia's largest cities. Sydney recorded the third consecutive quarter of falling property prices (-1.2%) and the first annual price fall (-0.5%) since the March quarter 2012, while Melbourne property prices fell -0.6%, the first quarterly price fall since September quarter 2012. Brisbane and Perth house prices also fell. ANZ says the Sydney fall is on the way to a cumulative -10% drop from the peak. The total value of Australia's 10 million residential dwellings decreased AU$22.5 bln to AU$6.9 tln. The mean (average) price of dwellings in Australia is now AU$687,700 (NZ$735,000).
TIT FOR TAT ESCALATES
In the US, President Trump is readying another US$200 bln in Chinese goods for new 10% tariffs - if Beijing retaliates against his recent tariffs imposed earlier this month. China has already said they will.
BENCHMARK INTEREST RATES SOFTER
Local swap rates are -1 bp lower across the board, although the 10yr is down -2 bps. The UST 10yr is now at 2.89%, down -2 bps and most of that slippage has come in the past 3 hours. The Aussie Govt 10yr is at 2.63, down -4 bps, the China Govt 10yr is at 3.64% (down -1 bp), and the NZ Govt 10 yr is at 2.88%, down -6 bps. The 90 day bank bill rate is unchanged at 2.02%.
The bitcoin price is now at US$6,716 which is +4.6% higher than at this time yesterday. The spike in the price was caused by New York regulatory approval for the "Cash" mobile payments app so it could trade the cryptocurrency in that state.
NZD LITTLE CHANGED AGAIN
The NZD is little changed at 69.4 USc. We are up against the Aussie at 93.6 AUc and at 59.6 euro cents compared with this on Friday. That has the TWI-5 still at 72.7.
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