Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
The Co-operative Bank has reduced it 2 yr and 3 yr rates by 6 bps and 4 bps respectively. The owner occupied rates are now 4.49% and 4.85% and the standard rates are 4.99% and 5.35% for 2 yr and 3 yr terms respectively. These rates are effective tomorrow.
TERM DEPOSIT RATE CHANGES
No changes to report here.
EARN NOT LEARN
Since the March 2012 quarter to the March 2018 quarter, the proportion of people aged 20–24 years who were in education, regardless of their labour force status, has decreased from 31.8 percent to 24.3 percent. This was the lowest point since the series began. However, the proportion of 20–24-year-olds with no qualifications has also fallen from 14.1 percent to 8.2 percent. Over the last six years, there has been a large increase in the proportion of 20–24-year-olds with a school qualification as their highest qualification. In the March 2018 quarter, nearly half (48.2 percent) of all 20–24-year-olds were in this position (up from 39.6 percent in the March 2012 quarter). People in their early twenties were also less likely to have a post-school qualification (41.6 percent, compared with 45.1 percent), but more likely to have a bachelor’s degree or above (20.5 percent, compared with 12.8 percent). The most recent data shows 66,800 more 20–24-year-olds were working and not in education than in the March 2012 quarter. Two-thirds of the increase came from people with a school qualification as their highest qualification, while two-fifths came from those with a bachelor’s degree.
REGIONAL CONFIDENCE
The latest Westpac-McDermott Regional Economic Confidence Survey shows that households in six of eleven regions were more positive about their region’s economic prospects in the June 2018 quarter compared to the previous quarter. Households in the Nelson/Marlborough/West Coast and the Bay of Plenty were the most optimistic about the future while those Auckland, were the most negative. Those regions most closely associated with dairy and/or oil exploration showed the largest quarterly declines in household confidence. The Survey also shows that consumers in eight of eleven regions are feeling less confident about the future. Consumer in all regions are less optimistic about the prospects for the New Zealand economy, while most expect their financial circumstances to deteriorate over the next 12 months.
OPEN BANKING
Minister of Commerce and Consumer Affairs Kris Faafoi has told the payments sector that progress must be made on innovation and open banking. “Speed is of the essence and the status quo isn’t an option. I do not want to see New Zealand left behind in respect of the outcomes that Open Banking could deliver in terms of economic development and benefits for consumers,” Faafoi said. Speaking at the Payments NZ Conference, Faafoi said the principles set out in the Australian review into open banking were a good starting point: customer-focused, promoting competition, encouraging innovation, efficient and fair.
PUBLIC SERVICES
The State Services Commission has today published the latest Kiwis Count report. In the 2017 Kiwis Count report, 76 percent of those surveyed say they are satisfied with the level of service provided by Government agencies, up from 74 percent last year. Kiwis Count is the only survey that measures New Zealanders' satisfaction with 43 commonly used public services, which include registering births, using emergency services, applying for a passport, and accessing accident compensation. New Zealanders' experience when interacting with Government agencies is a key indicator of the trust they have in the Public Service. Trust in public services remains high at 79 percent, the same as last year.
CYBER SECURITY
The government will extend the timeframe of the Cyber Security Strategy refresh and do a deeper dive into the issues, to inform the new action plan. Broadcasting, Communications and Digital Media Minister Clare Curran says cyber security is an essential element of New Zealand being a connected, digital nation. Cyber threats are increasing, becoming more sophisticated and cyber-crime and espionage tools are more accessible so it’s timely for us to step up our cyber security efforts. We need to make sure we’re investing the right resources in the right way across government to respond to those growing threats. There will be a series of opportunities for stakeholders to provide their views from June through until September with a series of workshops starting in Wellington today. Curran will report back to Cabinet at the end of October with a revised New Zealand Cyber Security Strategy and Action Plan.
NZDMO
The Treasury has today announced acting arrangements for the Head of New Zealand Debt Management Office (NZDMO), following Sarah Vrede’s resignation announced 31 May. Andrew Hagan, NZDMO’s Head of Risk Policy, and currently acting Director Infrastructure and Housing, will be acting Head of NZDMO from 13 August 2018. In the interim, Charles England, NZDMO’s Head of Accounting and Transactional Services will be acting Head of NZDMO.
TRADE TENSIONS MOUNT
Global stocks extended a sell-off on Tuesday as mounting trade tensions between the United States and other major economies continued to steer investors away from riskier assets, lifting safe-haven U.S. Treasuries and keeping the dollar on the defensive. Equities in Asia took their cues from Wall Street, where the S&P 500 and Nasdaq suffered their steepest losses in more than two months overnight.
BENCHMARK INTEREST RATES MIXED
Local swap rates are lower today, with a -1 bp drop across the curve. The UST 10yr is now at 2.89%, up +2 bps. The Aussie Govt 10yr is at 2.63, unchanged, the China Govt 10yr is at 3.61% (up +1 bp), and the NZ Govt 10 yr is at 2.93%, down -2 bps. The 90 day bank bill rate is unchanged at 2.03%.
BITCOIN HIGHER
The bitcoin price is now at US$6,220 which is +1.1% higher than at this time yesterday.
NZD SLIGHTLY LOWER
The NZD is slightly lower than this time yesterday at 68.9 USc. On the cross rate we are at 93.0 AUc and 58.8 euro cents. That has the TWI-5 still at 72.1.
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13 Comments
Domestic, first-time enrolments in tertiary institutions increased by a marginal 0.3% this year from March 2017.
Looks like Labour's "first year on us" scheme has failed to deliver, in number of enrolments for now. Instead, taxpayers may have ended up footing the bill for those who were already willing to continue studies post-school.
I still don't see what long-term benefit free tertiary education would serve when even most European countries are pulling back subsidies from higher education.
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