Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
No changes today.
TERM DEPOSIT RATE CHANGES
No changes here either.
A flurry of activity from the Reserve Bank today. Firstly, the prudential regulator issued five "in-principle decisions" as part of its review of bank capital adequacy requirements. These include confirmation that ANZ, ASB, BNZ and Westpac will have to report their risk weighted assets and associated credit ratios calculated using both the internal models approach they currently use, and the standardised approach used by other NZ banks. The central bank also issued a paper detailing the outcomes of its stress testing, alongside the Australian Prudential Regulation Authority, of the big four banks last year. The Reserve Bank says the testing shows the banks' strong profitability would allow them to absorb significant losses without breaching their minimum capital requirements. Talking of bank capital, the Chinese government controlled ICBC NZ has received a capital injection through an issue of just over 88 million shares to its parent. This comes with ICBC NZ having recently disclosed a $10.2 million provision on a $32.8 million loan to failed insurer CBL.
TRADE WARS
President Donald Trump confirmed that the United States would begin collecting tariffs on $34 billion in Chinese goods at 12:01 a.m. Washington D.C. time (0401 GMT) on Friday and warned that subsequent rounds could see tariffs on more than $500 billion of goods, or roughly the total amount that the United States imported from China last year. “You have another 16 (billion dollars) in two weeks, and then, as you know, we have $200 billion in abeyance and then after the $200 billion, we have $300 billion in abeyance. Ok? So we have 50 plus 200 plus almost 300,” Trump told reporters aboard Air Force One.
MORE WOMEN ON PUBLIC BOARDS
Membership of all state sector boards will be evenly represented by women and men by 2021, Minister for Women Julie Anne Genter announced today. "This Government is committed to increasing women in leadership across all boards in New Zealand and we are leading by example. We will ensure half of all directors on state sector boards and committees are women by 2021" said Ms Genter speaking at a Women in Leadership symposium in Auckland. More than 2,600 appointments are made to state sector boards every year. These include large SOEs, conservation boards and community trusts. The Government today released the latest Gender stocktake of state sector boards and committees which shows record high level of women’s participation. As at the end of 2017, women represented 45.7 percent of state sector boards and committees, but Ms Genter said the Government was more ambitious for women than that.
DWELLING AND HOUSEHOLD ESTIMATES
As at 30 June 2018, there were an estimated 1.870 mln private dwellings in New Zealand, up 1.5% for the year. 1.170 mln of these were estimated to be owner occupied, 630,000 were rented and 70,000 were provided free by individuals, private trusts, businesses and government agencies. In comparison to that, there were an estimated 1.747 mln households in New Zealand, up 1.3% for the year. Of these, an estimated 1.093 mln lived in owner occupied dwellings, 589,000 were renting and 66,000 were in dwellings that were provided free.
SPECIAL SCHOOLS
More than $23 million will be invested in rebuilding two special schools in Auckland and Christchurch, Associate Education Minister Tracey Martin announced today. The country's largest special school, Sommerville, which since 2013 has occupied facilities on the former Tamaki Intermediate School site in Panmure, will be rebuilt onsite at a cost of $17 million. A further $6 million will allow the relocation and rebuild of Allenvale Special School in Christchurch to be completed. Minister Martin announced the funding, part of Budget 2018, in a visit to Sommerville today. The special schools announcement is part of the $332 million School Growth Package of new capital spending in Budget 2018. Further announcements about investments in school property will be made in the coming weeks.
SWAP RATES HIGHER
Local swap rates were up +1 bp for the 1 yr term and up +3 bps for the remainder of the curve. The UST 10yr is now at 2.84%, unchanged. The Aussie Govt 10yr is at 2.60, also unchanged, the China Govt 10yr is at 3.53% (unchanged), and the NZ Govt 10 yr is at 2.81%, also unchanged. The 90 day bank bill rate is up +1 bp to 1.98%.
BITCOIN LOWER
The bitcoin price is now at US$6,526 which is -1.6% lower than this time yesterday.
NZD FIRM
The NZD is firm at 67.8 USc. On the cross rate we are at 91.9 AUc and 58.1 euro cents. That has the TWI-5 at 71.2.
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