Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
BNZ has moved some of its key fixed mortgage rates down to match recent market moves from other major players
TERM DEPOSIT RATE CHANGES
TSB has reduced its 3 yr, 4 yr and 5 yr term deposit rates for the $10,000 and above tier level by 10-15 bps.
UNDEREMPLOYMENT
In 2017, one in five (20.6 percent) part-time workers wanted and were available to work more hours, Stats NZ said today. Underemployed people are those who work part time (fewer than 30 hours a week), but want and are available to increase their hours. There were 112,300 people who were underemployed in 2017 – 63,000 of them were actively seeking more work. Some 65 percent of underemployed people wanted to move into full-time work (30 or more hours a week); 35 percent wanted more hours but were willing to remain part-time. The average (median) time usually worked by underemployed people was 15 hours a week. If they could have chosen their own hours, they would have opted to double that to 30 hours per week.
BANKS' SALES CULTURE
A recent survey of over 600 union members working at ANZ, BNZ and Westpac demonstrates that sales culture is rife in the New Zealand banking sector. 87% of respondents reported feeling pressure to sell financial products; and 92% feel the same or more pressure to sell financial products now than they did a year ago (50% more; 42% the same). FIRST Union National Organiser for the Finance, Stephen Parry, says that these results are no surprise: “FIRST Union has been raising the issue of sales targets and sales pressure with the Banks for years, but we’ve been knocking on a closed door. It is only in the wake of ongoing scandal in the Australian financial sector that the Banks and the regulators have started to take notice.”
CBA RESTRUCTURE
ASB's parent Commonwealth Bank of Australia says it'll demerge its wealth management and mortgage broking businesses, and undertake a strategic review of its general insurance business, CommInsure General Insurance, including a potential sale. CBA shareholders will get shares in CFS Group, the demerged business, proportional to their existing CBA shareholding whilst retaining their existing CBA shares. CBA says it doesn't plan to retain any shareholding in CFS Group, allowing CBA to focus on core Australian and New Zealand banking business. However, CBA will be keeping its salaried financial advice business, Commonwealth Financial Planning. CFS Group will include Colonial First State, Colonial First State Global Asset Management, Count Financial, Financial Wisdom and Aussie Home Loans. CEO Matt Comyn also announced a series of changes to CBA's executive leadership team.
CHINA CUTS RESERVE REQUIREMENTS
China’s central bank said on Sunday it would cut the amount of cash that some banks must hold as reserves by 50 basis points (bps), releasing US$108 billion in liquidity, to accelerate the pace of debt-for-equity swaps and spur lending to smaller firms. The reserve reduction, the third by the central bank this year, had been widely anticipated by investors amid concerns over market liquidity and a potential economic drag from a trade dispute with the United States. ANZ Research said that it still expects another 50 bps reserve requirement cut in October.
OIL SUPPLY
Saudi Arabia promised to act decisively to keep oil prices under control, signalling a real supply boost approaching 1 million barrels a day is on the way to global markets. “We will do whatever is necessary to keep the market in balance,” Saudi Energy Minister Khalid Al-Falih told reporters on Saturday, while sitting alongside his Russian counterpart Alexander Novak at OPEC headquarters in Vienna. Consumers can rest assured that “their energy supplies are available, are being stewarded by a responsible group of producers.”
EU CUTS UK INVESTMENT
Britain’s looming departure from the European Union has led nearly half of big companies from the rest of the bloc to cut investment in the country, a poll of 800 executives released two years after the Brexit referendum found.
BENCHMARK INTEREST RATES MIXED
Local swap rates are flatter today, with the short end up +1 bp and the long end down -2 bps. The UST 10yr is now at 2.87%, down -4 bps. The Aussie Govt 10yr is at 2.63, down -3 bp, the China Govt 10yr is at 3.60% (unchanged), and the NZ Govt 10 yr is at 2.95%, down -2 bps. The 90 day bank bill rate is unchanged at 2.03%.
BITCOIN LOWER
The bitcoin price is now at US$6,155 which is -7.3% lower than at this time Friday after hitting a new 2018 low of US$5785.43 over the weekend.
NZD SLIGHTLY HIGHER
The NZD is slightly higher than this time Friday at 69.1 USc. On the cross rate we are at 93.0 AUc and 59.3 euro cents. That has the TWI-5 still at 72.3.
This chart is animated here. For previous users, the animation process has been updated and works better now.
Daily exchange rates
Select chart tabs
6 Comments
Strikes! Cost of Living Increases! Demarcation (not actually heard that cry as yet, but surely we will)! All together now comrades, Pay Rises! Why? Because We Can!
To which those who know best respond with Devaluation, Dollarisation, Decimalisation, Inflating the Debt Away.
Ah, the joys of the seventies. Just beginning, too. $3 petrol, $5 butter (oh, that's already here, you say). Then $5 petrol, rationing, panic, we are running out of the stuff. Poseidon Nickel rises from the grave as the metal spikes higher each day, becomes world's most valuable company. China invades Vietnam (might be getting carried away there, but then again, maybe not). Kinshasa Province declares itself a sovereign state and nationalises the world's cobalt supply. Battery costs treble overnight. Ah, the seventies redux.
"FIRST Union has been raising the issue of sales targets and sales pressure with the Banks for years, but we’ve been knocking on a closed door. It is only in the wake of ongoing scandal in the Australian financial sector that the Banks and the regulators have started to take notice."
I know whenever I call or go to my bank they will try and sell me something - normally insurance or a home loan topup. This has been getting worse and worse for years now. Sometimes I tell them up front that I don't want any insurance to save the lecture!
The real concern may be that pressure to sell insurance, home loans, and increase credit card limits may be just the readily visible part of the iceberg.
If these are obviously visible aspects, then what lurks below the surface?
It is of concern that these pressures have only been identified through the initiative of the bank workers' union.
I note that one of the banks have stated that they are implementing policies for workers to report any concerns to management. Hard not to be a conspiracy theorist; lets manage any fall-out in house.
An urgent need for the FMA and NZRB to implement a process where both bank workers and the public have a means of raising concerns with an independent body. At the moment the only course for the public to raise concerns is with the bank funded Banking Ombudsman. One needs to question the objectiveness when the complaint is probably considered on technical/contrtact considerations and not bank culture.
by a responsible group of producers.”
Um, no. They extract, they don't produce anything.
An no, it's not the 'Seventies. There were less than 4 billion of us then, consuming less per head and there was more to consume then, of better quality. It's not like them at all :)
What the government really needs is a National Emergency. Some big distraction like an earthquake or something happening in Australia like one of their big banks going bust, so we can blame our troubles on someone else. It's all the Australians' fault! Shouldn't be too hard. I know, Mycoplasma Bovis brought to New Zealand by Australian "tourist", believed to belong to secret religous cult that owns a lot of cows. That should do it.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.