Here are the key things you need to know before you leave work today.
TODAY'S MORTGAGE RATE CHANGES
No changes here today.
TODAY'S DEPOSIT RATE CHANGES
Kiwibank introduced a 4 month special of 3.65%.
TWEAKING IMMIGRATION
The Government has rejigged immigration rules lower today to require higher skills to gain residency, reducing the number of older migrants allowed to follow their children and settling here.
LIVING IT UP
There is little sign of financial stress in the way we are spending. Shoppers spent more on food and drinks in restaurants and takeaway shops and on accommodation in September, Statistics New Zealand reported. Total retail spending using electronic cards was $4.7 bln in September 2016, up +6.1% from September 2015. Hospitality is up +16%, coinciding with rising numbers of international visitors.
AUSSIE LENDING GROWTH EVAPORATES ...
In Australia, lending commitments fell -1.6% for owner occupied housing.
... BUT BUSINESS CONFIDENCE HOLDS
Despite some moderation in business conditions, results from the NAB Monthly Business Survey remain reasonably upbeat. Business sentiment has proven to be resilient to negative influences over recent months, which has flowed through to more stable (and above average) levels of labour demand. The Aussie business confidence index rose slightly to +6 index points in August (from +4), which is consistent with the long-term average of +6.
FITCH AFFIRMS HEARTLAND BANK'S CREDIT RATING
Credit rating agency Fitch has affirmed Heartland Bank's BBB credit rating with a stable outlook. Fitch says this reflects the continued improvement in Heartland's underwriting standards and risk-controls, especially given its higher risk appetite than peers. The stable outlook reflects Fitch's view Heartland is likely to continue its solid performance over the next year or two. However, a significant acquisition would be likely to trigger a rating review.
OLD LOCAL BEATS FRESH IMPORTS
A 'buy local' campaign in Scotland has seen one retailer there drop lamb imports from New Zealand. British retailer Marks & Spencer will no longer stock New Zealand lamb in its Scottish stores. NZ lamb was used to supply the region during their off-season, but now it seems the Scots will have to serve up 'old local product' to tide them over these six months.
GOING [VERY] LONG
The Australian government has launched its first ever 30-year bond issue on Tuesday. In a statement to the market the Australian Office of Financial Management, it said the historic transaction would be of 'benchmark' size'. Traders are expecting it to yield 3.25%, far above the equivalent UST 30yr which yields 2.49%.
WHOLESALE RATES RISE & STEEPEN
The wholesale rates are up in a steeper bias. Two year rates are up +1 bp, five years are up +2 bps, and ten years are up +4 bps. The 90-day bank bill is down -2 bps to 2.17%. There was a lower tinge to NZGBs yields.
NZ DOLLAR FALLS
There USD is getting a bit of a Clinton bounce (or more of a Trump relief rally) and that is weighing on the Kiwi dollar today. The NZD/USD is now at 71.1 USc. Remember, it was almost at 75 USc about a month ago. On the cross rates, it is trading at 93.8 AUc, and is at 63.9 euro cents. The TWI-5 is 74.9. Check our real-time charts here. And just as background, the Chinese yuan has been let slip below 6.7 to the USD, released now that the Chinese have gained IMF reserve status. The IMF have been successfully manipulated.
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