Here are the key things you need to know before you leave work today.
THERE WERE HOME LOAN CHANGES TODAY
Kiwibank raised its floating mortgage rates. But more importantly, ASB made some fairly significant changes to its fixed home loan rates. Generally, it raised rates under 3 years, and lowered them for terms 3 years and over. But is also withdrew some hot specials, so the actual sifts weren't exactly as they seemed. Basically the rate curve is flattening.
THERE WERE ALSO TERM DEPOSIT CHANGES
UDC raised term deposit rates across the board up to 18 months. The increases were between +5 and+30 bps, and pushes their 18 month rate to 5%, better than their parent ANZ's 4.75% offer. There are no term PIE options at UDC however.
HIGHEST IN TEN YEARS
Annual net migration is now up to 36,400, the highest annual immigration in more than decade. A third of this migration surge is due to non-NZers arriving, two thirds due to Trans-Tasman moves.
CREDIT CARDS IN FAVOUR AGAIN
Credit card holders added 7.2% more to their card balances in May than in the same month a year earlier, according to data out from the RBNZ today. In fact, they are putting more of it on deferred terms choosing to pay the interest. The new "0%" promotions are moving the market. An idea of just how successful these promotions are can be gleaned from the growth in the credit limits. It has been six years since we have seen more than a six moth run of +5% y-on-y increases.
RED ZONE OFFERS NOW POLITICAL
A Labour government will ensure that all owners of red-zoned properties in Canterbury receive a buy-out offer of 100% of the 2007 rateable value of their land, says Labour’s Canterbury Earthquake Recovery spokesperson Ruth Dyson.
TOURISM SPARKLES
Tourist arrivals lifted by 5.4%pa in May as American and Japanese arrivals boosted numbers. There were more New Zealand holiday makers heading overseas, up by 8.7% pa in May to a record seasonally adjusted high of 194,360 short-term departures. There was a sharp turnaround in arrivals from Japan in May, with numbers increasing by 39% from a year earlier.
FRESH EXPANSION
China's flash PMI was out this afternoon and it has moved back into expansion mode, after shrinking for the past few months.
GOING AFTER PROFIT SHIFTERS
New Zealand has just joined the 15 point action plan developed by the OECD last year as a response to base erosion and profit shifting measures used by some multinational companies to avoid taxation.
ANOTHER HOUSING ACCORD
Queenstown is the latest district to be added to legislation that will enable the council and the Government to work more closely together on housing supply and affordability, Housing Minister Dr Nick Smith announced today. We will have more on this later.
LABOUR LIST ANNOUNCED
The Labour Party list is out. You can compare it with those of the other parties who have released theirs, here.
WHOLESALE RATES
Wholesale swap rates grabbed back 2 bps across the curve today. The 90 day bank bill rate slipped slightly to 3.57%.
OUR CURRENCY
The NZ dollar was unchanged today until the Chinese PMI result was released. Then it rose vs the USD - it is now at 87.3 USc, - and fell against the Aussie where it is at 92.5 and the TWI is at 81.0.
1 Comments
and in court news (deal or no deal):
Galbraith also said the supply agreement capped Fonterra's total liability for claims at A$30m (NZ$32.3m).
"The reason for the cap was the supply of the product is profitable, but not very profitable for Fonterra," he said.
"The big profits aren't earned by Fonterra but its customers.
"It capped its liability because it shouldn't be exposed to losses disproportionate to the benefits of the commercial contract."
http://www.stuff.co.nz/business/farming/dairy/10189083/Danone-sees-Fonterras-delay-bid-as-unfair
£32.3m at max is a long way from €350 m
The Paris-based company put the cost of Fonterra's recall at €350 million when it revealed its third-quarter results last year.
Danone wants compensation from Fonterra for losses from the botulism scare and the harm it says was caused to its reputation.
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11279942
by way of reference:
The OIO considers that good character goes beyond the concept of criminal convictions. The existence of criminal convictions is merely one factor in determining a person's character.
“Character” denotes both moral factors and the reputation of the person concerned. Allegations made which suggest that a person has engaged in activities which, although not giving rise to a criminal conviction, must be regarded by any reasonable person as having an adverse impact on the person's good standing in the community, are also relevant.
While the legislation is framed in terms of individuals, the activities of entities over which those individuals exercise substantive control may reflect on the character of those individuals.
http://www.linz.govt.nz/overseas-investment/applications/technical-resources/the-investor-test
to:
Danone, through local subsidiary Nutricia, has agreed to take over Gardians' drying plant and Sutton Group's blending and packing plant, enabling Danone to maintain and increase infant formula exports to China where demand is particularly high.
http://uk.reuters.com/article/2014/05/01/uk-danone-newzealand-mergers-idUKKBN0DH2AK20140501
but we now understand why we had seen Brits say flag in hand "these colours don't run"
or, how do we have these blokes inside the NZ Inc tent for later on?
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