Here are the key things you need to know before you leave work today.
TODAY'S MORTGAGE RATE CHANGES
There are no changes to report today.
TODAY'S DEPOSIT RATE CHANGES
Kiwibank cut its call and bonus saver rates today.
AFFORDABILITY IMPROVES
Housing getting more affordable as prices ease, interest rates fall. House prices have started falling at the lower end of the market, with Auckland's lower quartile selling price declining for three months in a row.
A NEW PSA OUTBREAK
There has been a Psa-V positive test result on Hort16A and male vines on a kiwifruit orchard in Whangarei. This is the first confirmed case of Psa-V on an orchard in the Whangarei region. Local growers will be very disappointed as they have avoided the scourge for the past four years. No kiwifruit plant material, including budwood and nursery stock, along with any potentially contaminated orchard equipment, can be moved between orchards in the region.
$784 MLN WORSE
A PR release from Auckland Council brought the good news that in 2014-15 they had a surplus of $80 mln. Revenues were $3.6 bln, expenses were $3.5 bln, and total assets were $42.2 bln. But a closer reading shows this was "before gains and losses" which this year amounted to a "loss" of $230 mln. Last year it was a "gain" of $483 mln. This year's Note 6 items not included in the $80 mln result were a $61 mln gain in the fair value of investment property, a $141 mln loss in the fair value of financial assets, a $131 mln loss on currencies, and a $13 mln loss on the disposal of fixed assets. Dodgy reporting Auckland Council. Those losses on fair value and currencies are real. Before tax results were actually a loss of $98 mln, far worse than the $686 surplus in 2014.
YELLEN SIGNALS HIKE
It is worth noting that earlier today, Janet Yellen came out with a clear statement that the Fed expects to raise rates before the end of 2015. It's a long but worthwhile read. They have meetings on October 29 and December 17. The signal is very clear and markets will be brutal if the Fed now doesn't deliver.
PROMOTING TOURISM
The Tourism Growth Partnership Fund is 'investing' $1.1 mln in five new projects across New Zealand. This funding is on top of the $1.5 mln announced last week to help promote direct flights from Guangzhou, China to Christchurch.
STRIKES SPREAD
Workers from 17 Bunnings stores are to strike as unrest spreads. After strikes in Auckland and the Manawatu today, workers from an additional 17 Bunnings stores will strike tomorrow in a national day of industrial action.
LESS SLEEP
Daylight savings starts at 2am on Sunday. Put clocks ahead one hour.
MYND CYMRU
Even thoiugh they have had a very bad run of key injuries, I (and the rest of the rubgy world it seems) will be rooting for Wales at RWC 2015 this weekend.
WHOLESALE RATES RISE
Following the Yellen speech, local swap rates rose +3 bps across all terms. The 90 day bank bill rate is unchanged at 2.84%.
NZ DOLLAR UP
The Kiwi dollar gained some ground today especially against the Aussie. It is now at 63.2 USc, at 90.3 AUc and at 56.6 euro cents. The TWI-5 is now at 68.1. Check our real-time charts here.
You can now see an animation of this chart. Click on it, or click here.
Daily exchange rates
Select chart tabs
5 Comments
Yellen supposedly signals hike:
"Most FOMC participants, including myself, currently anticipate that achieving these conditions will likely entail an initial increase in the federal funds rate later this year, followed by a gradual pace of tightening thereafter. But if the economy surprises us, our judgments about appropriate monetary policy will change."
I don't mean to be cynical but I get the feeling they could easily be surprised judging from what the markets have been doing recently. I'm no longer sold on the Fed doing what they say.
And BTW, what was up with Yellen's strange speech delivery. It hardly offered confidence. It looked like she was having either a stroke or an anxiety attack:
https://www.youtube.com/watch?v=xJ2UAYgIXG8
Hello New Zealand - anybody home? -
Look at all this stuff that could be, should be, (but isn't) going into the Cullen Fund
It doesn't take long
The risk of doing something dodgy that brings you to the attention of the media
Volkswagen in Australia
And Michael West is right into them - for a different reason - Taxation
In 2007 it sold 28,000 vehicles and paid $11.8 million in tax.
Last year [2014], it sold 57,000 and paid $9 million in tax."
http://www.smh.com.au/business/the-economy/vws-tax-payments-need-explan…
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.