Here are the key things you need to know before you leave work today.
TODAY'S RATE CHANGE
There were no rate changes today. We suspect change activity will be muted until next weeks RBNZ OCR review. But you never know ...
ONE KEY NUMBER
The Government has decided we will use a single business number for all kiwi businesses in their dealings with Government agencies. The new New Zealand Business Number will be in place by the end of 2017.
JOB ADS PICK UP
ANZ Job Ad report shows sharp increase in advertising in June compared to May. The lift in job advertising is consistent with a continuing but more modest rise in employment growth. Interestingly, there was strong growth for newspaper advertising with a 18.6% monthly rise, although this only returns the time series to where it was a year earlier.
VISTA GETS IT AWAY
Film industry software company Vista Group today raised $40 million in new capital to fund acquisitions and development plans. Existing shareholders sold 22 million shares at $2.35/share to take the total offer size to $92 million, retaining a 47% stake in the Company. The price places a market capitalisation of the company at $188 million.
$100 MLN FOR LINCOLN
The Government will provide up to $107.5 million in capital funding toward the rebuilding of Lincoln University’s science facilities destroyed in the Canterbury earthquakes. That's almost a third of the projected cost of the total campus rebuild of $349 million. The funding is contingent on the University fully integrating its new facilities with the other major partners in the new Lincoln Hub. The Lincoln Hub is a partnership among Lincoln University, DairyNZ, and Crown Research Institutes, a research and innovation. Every 1% increase in primary sector productivity generates an additional $4 billion in exports for New Zealand.
$200 MLN NZGB BOND ISSUE
There was strong interest in today's NZ Govt bond tender of $200 mln worth of April 2020's. The tender attracted nearly $680 mln worth of bids and was priced at 4.19%, marginally below last months issue of 4.23%. Out of the 34 bids received today only 9 were successful, continuing a trend of a few bids getting all the offer.
'NZ NEEDS A REGULATORY OVERHAUL'
Productivity Commission today delivered its final report recommending a complete overhaul of New Zealand's legislative and regulatory systems.
WHOLESALE RATES
Wholesale swap rates has a small +1 or +2 bps bounce up today after yesterday's ~9 bps fall. The 90 day bank bill rate was down another -1 bp today and is at 3.65%.
OUR CURRENCY
The NZ dollar has jumped around in a narrow range today and is now at 86.9 USc which is a similar rate to this time yesterday. It is also down further on the day to 92.9 AUc. The TWI is at 81.0
You can now see an animation of this chart. Click on it, or click here.
We welcome your comments below. If you are not already registered, please register to comment
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.