Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
SBS Bank has launched a 3.95% two year fixed rate. Meanwhile, TSB has added +10 bps to their 18 month and two year fixed rates taking both up to 4.29%.
TERM DEPOSIT RATE CHANGES
BNZ have raised their one year term deposit rate by +5 bps to 3.45%. Even though this is an unusual rise, this new rate matches some of their main rivals.
FURTHER FALLS IN NET MIGRATION
The net gain from migration is slowing fast. But the rate of fall is slowing. The September's net migration gain is down more than -20% from the September 2016 peak, and the September level of +6,263 was the lowest September gain since 2014. That means that we welcomed 62,700 new migrants in the year to September 2018. It peaked at 72,400 in July 2017 after tighter new rules were applied
A KIWIBUILD BALLOT
The ballot will open on Monday for 18 KiwiBuild apartments in the Tuatahi project which Okham Residential is completing adjacent to Pak N Save on New North Rd in Mt Albert, a suburb of Auckland. Tuatahi will eventually comprise three mid-rise apartment buildings, one of which is already completed with the second under construction. The 18 KiwiBuild apartments will comprise nine studios sized from 40-49 sqm and priced from $435,000 to $480,000, six one bedroom apartments priced from $480,000 to $500,000 and three two bedroom apartments priced at $600,000. Car parks will cost an additional $50,000 each.
MORE HEALTH SPENDING
The Government has allocated another $224 mln for two North Island hospital projects. The North Shore (Auckland) hospital will get 120 additional elective surgery beds and four new operating theatres at a cost of $200 mln. This hospital is part of Waitemata Health DHB, the largest DHB in the country. A new endoscopy and cardiac care facilities for Whangarei Hospital is also being funded (Northland DHB) costing $24 mln.
Infometrics has been reviewing today's tourist visitor data and report: "Tourist arrivals in September were up 2.1% from a year earlier. However, when compared to August, visitor numbers fell by 1.9% (seasonally adjusted). September was a relatively slow month, with the growth in Australian tourists stuttering and the number of Chinese visitors climbing moderately."
The level of domestic transactions being run through credit cards in New Zealand increased +7.8% in September compared with the same month a year ago. That is the fastest growth since October 2015.
SMALLER BUT PROFITABLE
Youi's New Zealand accounts were posted to the Companies Office website late yesterday revealing a -14% drop in premium income and a -26% fall in payroll. That reduction enabled them to report a $10 mln profit for the year to June 2018.
ANOTHER TRADE DEAL INCHES FORWARD
The Government is pushing ahead with its membership in the China-led Regional Comprehensive Economic Partnership (RCEP) and will be hosting a meeting of ministers from 16 countries in Auckland over the next week. The RCEP is like a TPPA, but without the labour and environmental protections. The RCEP would embed our economy in a regional agreement with half the world’s population and markets that take more than half our total exports. (The close relationships China's loca proxies have with our politicians seems to be paying off for them.)
SLOWING, BUT NOT AT HOME
China’s economy grew at a slower-than-expected +6.5% in the third quarter, the weakest rate since the global financial crisis. Retail sales however rose faster than expected, up +9.2%.
SWAP RATES FALL
Swap rates have fallen and flattened today. For 2 years they are down -1 bp, for five years they are down -2 bps, and for ten years they are down -4 bps. The UST 10yr yield down -3 bps from this time yesterday to 3.18% but up slightly from this morning. The UST 2-10 curve is now just under +30 bps. The Aussie Govt 10yr is at 2.69% (down a sharp -5 bps), the China Govt 10yr is at 3.59% (down -2 bps), while the NZ Govt 10 yr is at 2.68%, and down -4 bps. The 90 day bank bill rate is unchanged at 1.90%.
The bitcoin price is now at US$6,439 a fall of -1.2% in the past 24 hours.
The NZD is firmer and now at 65.6 USc. On the cross rates we also firmer at 92.3 AUc, and 57.2 euro cents. That puts the TWI-5 up to 69.9.
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