Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
ASB cut its one year fixed rate to 3.95%, but raised two other rates at the same time. ditto Sovereign. The Co-operative Bank has trimmed its one year rate, but only to 4.10%.
TERM DEPOSIT RATE CHANGES
The Co-operative Bank has changed most term deposit rates, some up, some down.
FOOD PRICES LITTLE CHANGED
Food price rises are tame according to the October report from Stats NZ. The only movement of note was for meat which was up.
FONTERRA HAS A CHINA WIN
Fonterra was a seller on Alibaba's Singles Day platform in China again this year. More than 30 million people visited the Anchor online store within 24 hours and an equivalent of 8400 tonnes of product was sold. They achieved average prices +5% higher this year than last. Anmum sales increased 41%. Twelve tonnes of Anchor unsalted butter was sold – 22 times the amount sold last year.
ANOTHER PALMY
As at September 2018, New Zealand's population was 4,907,200. That represents a rise of +1.9% in the past year or +89,400 (another Palmerston North in one year) or +637,600 in the past ten years. By our estimate, our population is currently 4,919,125 so we should be over 5 mln by September 2019.
A MORTGAGE BOND STANDARD
The Reserve Bank today published a consultation paper proposing a new mortgage bond standard aimed at supporting confidence and liquidity in the New Zealand markets.
NEW RBNZ SURVEY
The RBNZ is to start monitoring credit conditions in a six monthly survey. In the first survey, mortgage demand was noted as falling from March to September when availability was rising.
COMING UP
The REINZ sales data for October will be released at 9am tomorrow morning. This will record sales activity in the meat of the Spring selling season. For reference, 5849 properties sold in October 2017, 1677 of them in Auckland. Your guess for 2018?
STOCK MARKETS STRUGGLE
It has been a tough day on equity markets on Wall Street. The S&P500 was down -2%. In Shanghai, markets were up yesterday a strong +1.4% but have opened today by giving back -0.4% of that. Still, it is early in their session. The NZX is down -1%, the ASX is down -1.6%.
'MAJOR TRANSFORMATION UNDERWAY'
Global demand for electricity is expected to surge by around +60% over the next twenty years, the IEA predicts. Smaller, more efficient machines mean greater use of electricity.
SWAP RATES SOFTER, FLATTER
Swap rates are unchanged for two years, down -1 bp for five years, and down -2 bps for ten years. The UST 10yr is lower at 3.15% today with the 2-10 curve at +26 bps. The 90 day bank bill rate is up +1 bp to 2.00%. The last time it hit 2% was at the end of June 2018.
BITCOIN DIPS
The bitcoin price has slipped today to just on US$6,300, a decline of -1.4% in the past 24 hours.
NZD HOLDS
The NZD is a little lower than this morning at 67.2 USc. But on the cross rates we are firmer at 93.6 AU, and at 59.8 euro cent. That puts the TWI-5 at just on 72.1 and unchanged from this morning.
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