Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
HSBC has taken the knife to all its fixed home loan rates for terms of one year and longer.
TERM DEPOSIT RATE CHANGES
No changes here.
THEY ALL GET BUILT
New data from Auckland Council shows that almost all residential building consents result in completed projects over a two year period. This data clears up a misunderstanding of the completion rate which some thought to be perhaps as low as 80%.
50%+ AUCTION CLEARANCE
In Auckland, fewer properties on offer but sales rates were up at Barfoot & Thompson's latest Auckland auctions with prices starting at $480,000.
PAY RISES START
As part of their unionised pay negotiations, Bunnings has offered their workers a +$2/hr pay increase, taking the base to $20.55/hr, or for full-time employees $42,700 per year. That puts their rate at the so-called Living Wage and adds about $80/week to their pay packet. It's a +10.8% rise at that base pay level. No word yet as to whether Bunnings will trim staffing to compensate.
FACING TOUGH TIMES
Drought conditions in rural Australia is seeing a huge increase in the slaughter rate of meat animals, with sheep processing up +40% in June 2018 compared to June 2017. Lamb processing is up +10%, cattle a little less. Given this is the data heading into winter when wetter conditions usually arrive.
LOOKING POSITIVE, MOSTLY
Asian share market indexes are up strongly today. The Shanghai index is up a very impressive +1.3%. Singapore outshone even that, up +1.4%. Hong Kong is up +0.8% and Tokyo is up +0.2%. It's not so positive on the NZX and ASX with both recording small reversals in afternoon trading.
SWAP RATES SOFT
Local swap rates are unchanged today except for the seven and ten year durations which are down -1 bp. The UST 10yr is soft at 2.95%, down -1 bp from where it was this time yesterday. The Aussie Govt 10yr is at 2.68% (down -1 bp), the China Govt 10yr is at 3.50% up +2 bps, while the NZ Govt 10 yr is at 2.78%, down -2 bps. The 90 day bank bill rate isalso down -1 bp and now at 1.89%.
BITCOIN SOFT
The bitcoin price is now at US$6,945, down -2.6% from where it was this time yesterday.
NZD SOFT
The NZD is marginally lower at 67.3 USc. We are almost unchanged on the cross rates from where we opened this morning at 91.1 AUc, and the euro at 58.2 euro cents. That leaves the TWI-5 at just under 71.1 and still in its recent tight range.
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2 Comments
"New data from Auckland Council shows that almost all residential building consents result in completed projects over a two year period"
Just to clarify, the Auckland Council states that 79% of Building Consents get a Code of Compliance within 2 years but the point you are making is that 98% of Building Consents get a Code of Compliance over the longer term.
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