Here are the key things you need to know before you leave work today.
THERE WERE RATE MOVES TODAY
Kiwibank raised both its floating rates mortgage rates today, and some key savings and term deposit rates. Their new 200 day term deposit rate is now market leading for a about 6 month term. Kookmin Bank also raised its mortgage rates. And Medical Securities increased its term deposit rates.
NBS GOES PAPERLESS WITH NEW APP
The Nelson Building Society is getting closer to moving the paper mountain after licensing a next generation, cloud-based mobile commerce suite of products from Auckland-based financial technology company, Finzsoft.
MORTGAGE APPROVALS STILL SINKING
The full week approval data for home loans is back to 'normal' last week in RBNZ data released today, but that actually means the steady decline over levels we had last year continues.
BALANCE OF PAYMENTS IMPRESSES
"There was a lot to like in today’s balance of payments figures for the March quarter: another record trade surplus, a rebound in overseas visitor spending, strong profits for New Zealand-based firms, and a further improvement in our overseas liability position", said Westpac.
HUGE BOND ISSUANCE COMING
Nonfinancial corporate borrowers in Asia, Europe, Latin America, and North America will seek up to US$21.7 trillion debt finance to support growth over the five years to 2018, of which US$6.6 trillion will be new bonds and other debt securities, according to a report published by Standard & Poor's.
DAIRY PRICES STOP FALLING
There was a small gain in dairy prices at the globaldairytrade fortnightly auction today. Importantly, wholemilk powder prices, and cheese prices both showed better gains than the overall numbers suggest.
SKELLERUP COMMITS TO CHRISTCHURCH
Skellerup today announced it will build a new $30 million world-class dairy rubberware development and manufacturing facility at the Wigram Business Park being developed by Ngāi Tahu Property.
LGFA BONDS DRAW STRONG DEMAND
This bond tender today had more than twice the demand that was offered. Yields were higher than the last auction. For the 2023s successful bidders got 5.33%.
ANOTHER RENTENBANK KAURI
This German bank has done another NZD Kauri issue. It is a NZ$200 mln placement at 4.75% for 5 years.
WHOLESALE RATES
Wholesale swap rates resumed their upward track today, rising 2 or 3 bps across the whole curve. The 90 day bank bill rate was up as well and now at 3.58%.
OUR CURRENCY
The NZ dollar was stable again today even after the good current account result and the earlier GDT auction. The NZD is at 86.6 USc, the Aussie is now at 92.5 AUc, up on RBA comment. The TWI is now at 80.8.
9 Comments
And the Japanese Met Service announced that globally it has been the hottest Spring, and the warmest May, on record:
http://thinkprogress.org/climate/2014/06/17/3449871/hottest-spring-on-r…
"This is especially noteworthy because we’re still waiting for the start of El Niño."
and its looking like a biggee....
regards
I am interested in the data behind this. I know 'everyone' is saying it will be 'big' but I can't find the data. That link you gave doesn't show anything out of the ordinary. And the one I have followed for years doesn't either.
It's not that I disbelieve the 'experts', its just that the data seems to show nothing out of the ordinary.
To any readers who know more about this than me (ie probably most people), can you please flick me that data. The Southern Oscillation Index has always been the primary predictor, but for some reason it is not supporting 'the big one' prediction that has somehow got into general conversation. Today India took some dramatic action of releasing 25% of their strategic rice stocks in anticipation of it. The coming La Nina was given as the reason for the monsoons to be weak this year.
Here are a couple of the more recent news stories coming of the latest data.
http://www.smh.com.au/environment/weather/mostwatched-el-nino-gathers-p…
http://www.bloomberg.com/news/2014-06-17/el-nino-alert-kept-by-australi…
so at the moment it is seen as highly likely, with a lot of warmth, but due to other weather patterns around the droughts of 97-98 are not seen as being strongly likely this year (at the moment)
Hi David,
Two things, if you look at 1997~98 that was a peak year, then we have had a high decade and it hasnt dropped back, so when an El Nino comes even if its not this year that suggests records being broken.
There seems to be an indication that an El Nino is quite probable. On top of that it could be quite big but, yes it seems a bit early to know....
http://climatecrocks.com/2014/05/26/in-eastern-pacific-strongest-may-hu…
This is a scientist laying it out,
part1,
http://www.youtube.com/watch?feature=player_embedded&v=5pl4ZYSHq_0
part2,
http://www.youtube.com/watch?feature=player_embedded&v=HgCgsxPbAvk
and this,
http://thinkprogress.org/climate/2014/06/17/3449871/hottest-spring-on-r…
Comments are will this be as big as the 1997~1998 event.
So say how does one position oneself to minimise the impact or benefit from it ie from a financial point of view whats the analysis/outcome?
Buy rice futures?
regards
"Scientists are warning that global warming could make the El Nino a permanent feature of the world's weather system.
That's a theory endorsed by Dr Russ Schnell, a scientist doing atmospheric research at Mauna Loa Observatory, 11,000 feet up on Hawaii. "It appears that we have a very good case for suggesting that the El Ninos are going to become more frequent, and they're going to become more intense and in a few years, or a decade or so, we'll go into a permanent El Nino.""So instead of having cool water periods for a year or two, we'll have El Nino upon El Nino, and that will become the norm. And you'll have an El Nino, that instead of lasting 18 months, lasts 18 years," he said.
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