A review of things you need to know before you go home on Monday; mortgage and term deposit rate changes; commercial waste; disabled employment; Pasifika entrepreneurs; bond offer; rates lower; NZD firm

Here are the key things you need to know before you leave work today.

MORTGAGE RATE CHANGES
TSB has joined in with the flurry of interest rate reductions following recent 'dovish' statements from the Reserve Bank indicating official interest rates will not be moving till 2020. See details here.

TERM DEPOSIT RATE CHANGES
NZCU Auckland has reduced its term deposit rates from the 9 month to 2 year terms by -10 bps to -25 bps.

COMMERCIAL AND INDUSTRIAL WASTE
More than $3 million of funding will help divert 40,000 tonnes of commercial and industrial waste from landfills in Auckland every year. Associate Environment Minister Eugenie Sage today announced a Waste Minimisation Fund (WMF) grant of $3.1 million to enable Auckland recycling firm Green Gorilla to divert the waste and allow materials to be reused. "Useful materials are ending up in landfill instead of being reused. Green Gorilla’s project gives businesses an alternative to simply dumping these materials.  In Auckland, construction and industrial waste makes up about 85 per cent of what is sent to landfill every year which is a significant loss of resources. This innovative project will reduce waste across the region and provide opportunities for new businesses that utilise the recovered materials. That in turn will create new jobs" Eugenie Sage said.

DISABLED EMPLOYMENT
In the June 2018 quarter, 22.3 percent of disabled people were working, Stats NZ said today. This compares with 70.0 percent of non-disabled people. Median weekly income (from all sources collected) for disabled people was $358, about half that of non-disabled people. Disabled people were more likely to receive some or all of their income from government transfers, such as Jobseeker Support, New Zealand Superannuation, and the Disability Allowance. Disabled people were also less likely than non-disabled people to earn income from wages and salaries, and self-employment. On average, employed disabled people worked fewer hours per week than employed non-disabled people, and were more likely to work part time. Disabled people were also more than twice as likely as non-disabled people to be unemployed or underutilised.

PASIFIKA ENTREPRENEURS
Pasifika-run small businesses are urged to take the opportunity to learn more about the Government assistance available at the first-ever Pasifika focused Small Business Roadshow. The 2018 Taking Care of Business events resume this month and, for the first time, a dedicated event for Pasifika businesses will be held in Auckland. The roadshows bring the private sector together with representatives from government agencies to explain what they do and how they can help small businesses.

BOND OFFER
Z Energy Limited (Z) confirmed today that it is offering up to $100 million (with the ability to accept up to $25 million of oversubscriptions) of six-year, unsubordinated, secured, fixed rate bonds to New Zealand institutional and retail investors.  Z has announced that the indicative margin range above the six-year swap rate for the bonds is 1.50 to 1.60 per cent per annum, subject to a minimum interest rate of 4.00 per cent per annum. See indicative term sheet here.

GENEVA ACQUISITION
Geneva Finance announces that it has reached agreement to acquire a 60% shareholding in Federal Pacific Finance Ltd, Tonga (FPFLT). Geneva Managing Director David O’Connell says, “We see this as a strategic stake in a Pacific Island finance operation, offering medium and long term growth opportunities into the Pacific Rim. The purchase price of $3.81m. represents, circa 3.5% of Geneva total assets, which is modest in terms of the Group’s $110m asset base. By limiting ourselves to a 60% stake, we will get the benefits of having local investors assisting in achieving our growth and expansion aspirations.”

MORTGAGE BROKER JAILED FOR TAX EVASION
A convicted fraudster who ran a mortgage broking business has been jailed for evading over $400,000 of income tax. David Simon Barton has been sentenced to three years and two months imprisonment on 10 charges of failing to submit income tax returns with the intention of tax evasion between 2008 and 2017. Barton served a jail sentence in the early 2000s on a number of fraud offences.

SWAP RATES LOWER
Wholesale swap rates are down -1 bp across the rate curve. The UST 10yr is a little lower at 2.86%, down -1 bp from this time Friday. The Aussie Govt 10yr is at 2.53% (down -3 bps), the China Govt 10yr is at 3.69% (up +6 bps), while the NZ Govt 10 yr is now at 2.60%, unchanged for the day. The 90 day bank bill rate is unchanged at 1.90%.

BITCOIN UP
The bitcoin price is now at US$6,523, up 3.0% from this time Friday.

NZD FIRMER
The NZD is up slightly against the USD at 66.2 USc. On the cross rates we are at 90.6 AUc and 57.9 euro cents. That puts the TWI-5 at 70.2.

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