Here are the key things you need to know before you leave work today.
CHANGES IN MORTGAGE RATES
No changes to report today.
CHANGES IN THE TERM DEPOSIT RATE
Westpac has reduced the interest rate on their bonus saver by -5bp, so the best you can earn on this account is 0.15%. The Bank of India has raised its TD rates for 2 and 3 years. Christian Savings has also changed its rates.
LEVER DOWN (SLIGHTLY), BUT PROFITS INCREASE
The release of the RBNZ dashboard data at the end of March allowed us to update our Key bank metrics tool. With this tool, you can compare hundreds of data points and ratios between selected banks. It also allowed us to update our lever table compare the financial results and balance sheets of all retail banks. Overall bank indebtedness fell to its lowest level since 2014, with most major banks increasing by around -Â½% since December and around -1.0% in one year. Bank returns on equity rose more than 10% on a tax-free basis after slipping below that level for most of 2020. Among the majors, Kiwibank is still the âweakestâ.
A DIVE FROM THE TOP
New housing consents fell in April but remained close to their records. But there is a growing separation where the residential construction boom is stronger in the North Island and Christchurch than in most of the rest of the South Island.
After declining for ten consecutive years, the number of students taking out student loans increased in the March quarter. The increase was relatively small. From January to March 2021, 119,097 students borrowed Student loan program. The total amount borrowed for course fees, course fees and living expenses was $ 794.4 million, + 3.7% more than the same period (pre-Covid) year last. Most of the increase was in the cost of living.
ALWAYS VERY HIGH
Create consent data was also released in Australia today. A drop in multi-unit approvals was behind the negative monthly result, although total approvals were still very strong, at their second highest level since November 2017. Approvals for new homes were a new record.
The bear thinks he’s been stung, but yawns
The Chinese Foreign Ministry has repulsed to the “baseless accusations against China” over statements made on human rights and international navigation rights by Ardern and Morrison at the Prime Ministers’ meeting in Queenstown. It was not a particularly violent reaction and just a repetition of statements Beijing had made in the past. It was what you expected from them.
Google claims that in calendar year 2020 it made a pre-tax profit of $ 10.2 million in New Zealand, which resulted in an income tax charge of $ 3.3 million. dollars. “We have continued to work constructively and collaboratively to ensure that we comply with New Zealand’s legislative requirements.” a Google New Zealand spokesperson said. Google is reported for selling $ 800 million worth of advertising in New Zealand in 2020 and it paid next to nothing for this business here.
The price of gold is now US $ 1,907 and above + US $ 3 from where it ended on Saturday in New York (NZT).
Wall Street is on vacation until tomorrow NZT (their Memorial Day weekend). This means that trading in financial markets is shallow. The NZX50 Capital index is up + 0.3% at the end of the session today and is still recovering from last week’s beat. ASX200 is down -0.5% early in the afternoon. Shanghai opened down -0.3%, Hong Kong was stable when it opened and the very large Tokyo market was down -0.3% in morning trading. The S & P500 Futures Index was little changed.
SWAP & BONDS EASY RETURN
We do not yet have today’s closing swap rates. If there are any significant changes again today, we will update this item. The 90-day bank bill rate was down -1bp to 0.32%. The Australian government’s ten-year benchmark rate is unchanged at 1.64%. The 10-year Chinese government bond was down -2 bps to 3.09%. And the ten-year New Zealand government fell -7bp to 1.75% and is now well below the 1.80% of the previous RBNZ patch (-5bp). But the ten-year US government jumped + 4bp to 1.62% in international activity.
NZ DOLLAR UP
The Kiwi dollar rose to 72.9 USc in a clear strengthening trend. Against the Australian we fell back slightly to 93.8 AUc. Against the euro, we are firm at 59.6 euro cents. This means that the TWI-5 is now at 74.3.
BITCOIN RECOVERY SHARPLY
The price of bitcoin is now at US $ 37,120 and up + 6.7% sharply from where we were then yesterday. The volatility over the last 24 hours is extreme of +/- 5.4%.
This soil moisture graph is animated here.
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