Here are the most important things to know before leaving work today.
Mortgage interest rate changes
Kiwibank has reduced the fixed rate for two years to 2.55%, but increased the fixed rate for three and five years. TSB corresponds to the ANZ 2.45% fixed interest rate of 18 months.
CHANGES IN THE DEPOSIT OF THE TERM
No changes to report today.
IT’S ALL IN THE HOUSE AGAIN
David Hargreaves looks at the all-night mortgage borrow bender Kiwis keep going while lending to ‘productive’ parts of the economy.
BIG BANK CHANGE
Westpac NZ CEO is David McLean retire in June with bank manager and ex-politician Simon Power to serve as acting CEO as a search for a permanent successor takes place.
ONLINE EFTPOS NOW AVAILABLE
Paymark (now owned by Worldline / Ingenico, a Paris-based MNC) has signed up BNZ as the first major bank to offer online EFTPOS to its customers. EFTPOS avoids Visa or Mastercard and their fees, so it can be delivered cheaper.
WHAT ABOUT IMMIGRATION?
The government has asked the Productivity Commission to take action an extensive review of the current immigration institutions.
BARBARS AT THE PETFOOD GATE
The Christchurch-based Natural Pet Food Group (NPFG) has been bought by private equity funds, KKR. NPFG is a marketing distributor rather than a manufacturer, and KKR wants it to expand its product range in international markets.
Ask prices on the Realestate.co.nz portal fell $ 18,340 (2.1%) in April, indicating a nationwide cooling housing market with new listings similar to 2019. The number of weeks of available stock of homes for sale has now fallen to only 8 weeks, instead of 10 weeks. the end of March.
Treasury has announced a government bond tender in May that would bring in $ 1.3 billion in four events. That is comparable to the Tender program for April that raised $ 1.65 billion in five events. Better-than-expected Crown accounts now require less new financing. And remember, in December 2020, they were raising $ 1.9 billion a month. The new lower total supply is likely to continue to offer strong and therefore keep yields low.
THE POOR PAY (SOMETHING) MORE
Statistics NZ released is Q1 inflation rates per household group to see how each is affected by price increases. Overall, the CPI was up + 0.7% in the year to March. But for beneficiaries it was up + 1.7%, for Māori it was up + 1.1%, for retirees + 1.2%. Those who spend the most in their households only got an increase of + 0.4%, while the households with the lowest spending saw prices increase by + 1.2% in the year.
BINGEING ON NEW CARS AGAIN
Year after year changes to sales of new cars means nothing this month given that April 2020 was a full lockdown month. But April sales were up for an April month, + 30.2% higher than the comparable month in 2019. New commercial vehicle sales (dominated by tradie utes) were up + 26% on the same basis of two years ago.
The gold price is rising today. It’s now US $ 1,773 / oz and up + US $ 5 as of Friday as Australia and Asia trade opens.
The Hong Kong and Shanghai markets are closed during their Labor Day holidays. Tokyo has opened up though, as is a pretty sharp -1.5% in late morning trading. The ASX200 is flat in early afternoon trading and the NZX50 Capital Index is also flat towards the end of today’s trading. The S & P500 futures show a small increase of + 0.3%.
SWAPS & BONDS MIXED
We do not have today’s latest swap rates. If there are significant movements today, we will note them here later when we receive the data. They have probably changed little. The rate of the bank accounts in 90 days has remained unchanged at 0.36%. The Australian government’s 10-year reference rate has remained unchanged at 1.70%. The Chinese government’s ten-year bond is down -2 basis points at 3.19%. And the New Zealand government is up +3 bps ten years from now by 1.69% and well above the level of the previous RBNZ fix of 1.65% (+3 bps). The US government has fallen -2 basis points over ten years to 1.63%.
NZ DOLLAR STABLE
The Kiwi dollar is now at 71.7 USc and has changed little since this morning. We have also changed little against the Aussie at 92.9 AUc. We are stable at 59.7 eurocents against the euro. That means the TWI-5 is now at 73.7.
Bitcoin price is now at $ 58,069 which is up + 2.1% from where we opened this morning. Most of today’s rise has taken place since lunchtime. In the past 24 hours, the volatility averaged +/- 1.9%.
This soil moisture map is animated here.
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