Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
No changes to report again today.
TERM DEPOSIT RATE CHANGES
We have updated some Kiwibank term deposit rates with some small 5 and 10 bps changes
'ANTIQUATED'?
Big changes may be coming for legal protections for renters. The Government is looking to increase to tenancy termination notice periods, end ‘no cause tenancy terminations’, and limit rent increases in a shakeup of the Residential Tenancies Act.
HOUSING INVESTORS RETURN
Monthly mortgage figures show investors are slowly rebuilding their share of borrowing, gaining their highest share of the overall figures for over a year last month.
BULLISH I
The Hong Kong and Shanghai equity markets are up very strongly in early trading today, both rising +1%-plus in their morning sessions. Actually, Hong Kong is up +1.9% which is unusually strong. Tokyo is not far behind, up +.07%.
BULLISH II
In China, data out today shows large firm industrial profits up +17.1% in the first seven months of 2018 compared to the same period a year ago. Strong performances like this bolster the idea that China may find a way to avoid much of the tariff pain coming their way from the US.
ROBOTS COMING
Nikko AM has been granted the necessary 'exemption' to start offering robo-advice. The FMA is allowing this for a number of reasons, not the least because there are fewer than 8000 financial advisers in New Zealand, but in KiwiSaver alone there are now more than 2.9 mln members so without automated 'advice' systems, most will go without and only the wealthy will be able to afford proper advice.
MANY MISSES
While the retail trade statistics for the June quarter showed better than expected sales in the retail sector, the latest Retail NZ Retail Radar survey indicates half of retailers didn't hit their sales targets - with more than a third of them not expecting to do so in the next quarter.
GOING FOR GOOD
New Zealand is soon to join many other countries by banishing the airport departure card form-filling. Ministers have approved the change, but can't actually say when the old system will finally be dumped.
SWAP RATES LOWER
Wholesale swap rates are up +1 bp across the whole curve today. The UST 10yr is just below 2.82%. The UST 2 yr is still under +20 bps. The Aussie Govt 10yr is at 2.55% (up +1 bp), the China Govt 10yr is at 3.65% (up +2 bps), while the NZ Govt 10 yr is now at 2.61%, up +1 bp. The 90 day bank bill rate is up +1 bp too at 1.92%.
BITCOIN STABLE
The bitcoin price is little changed at US$6,676.
NZD FIRMER
The NZD is up +½c from this time Friday against the USD, now at 66.9 USc. On the cross rates we are at 91.3 AUc, and 57.5 euro cents. That puts the TWI-5 at 70.5.
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Daily exchange rates
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9 Comments
Bond House Calls Time on Australian Debt Amid Political Fracas
https://www.bloomberg.com/news/articles/2018-08-27/bond-house-calls-tim…
Yes, great link. Putting into words my own disjointed thoughts: ""Mr Turnbull was also critical of the government's overall climate action, saying that pulling the Paris Agreement – as conservative MPs and pundits have been demanding – was irrelevant at this point. 'It’s like being in a university course, final exams are coming and you haven’t done three-quarters of the work,' he said. 'You’re going to fail anyway.' ""
Looking at the govt websites it seems NZ is all talk but no action too. Just maybe reducing net emissions is harder than they think?
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