A review of the things you need to know before you get home on Tuesday; Westpac Raises Mortgage Rates, QV Sees Property Worm Turning, AML Stock Scales, Bitcoin Sinks, Trade Soft, NZD Holds, and More
Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
Westpac followed Kiwibank for fixed rates at 3, 4 and 5 years. But it didn’t track Kiwibank down on the 1-year rate. More here.
CHANGES IN TERM DEPT RATES
Heretaunga Building Society and the NZCU Baywide Group all raised their TD rates today.
THE PROPERTY WORM TURNS
Quotation value said growth in average home values is slowing and is expected to slow further.
RBNZ data released today for April (B6) shows that the interest rate on business loans has fallen to a new low level. This loan yield is now just 3.18% per annum, the lowest since the start of this series in January 2017. Business lending rates follow the decline in mortgage rates.
THE AML HEAT INTENSIFIES
Sky city (SKC) said Australian regulator AUSTRAC has identified “potential serious non-compliance” with money laundering and anti-terrorism funding rules at SkyCity’s Adelaide Casino. AUSTRAC is also investigating Crown Perth. And it is also pushing down on NAB for slow fixes to their AML procedures.
THE POLICE TRUMPET “HUGE BLOW” TO ORGANIZED CRIME
In a major international operation, New Zealand police said they made 35 arrests, laid more than 900 charges and seized $ 3.7 million in assets. These actions are part of three major organized crime investigations targeting the importation, sale and supply of methamphetamine and money laundering. Police say senior members of the Waikato Comancheros, Waikato Mongrel Mob and Head Hunters have been arrested. Some 20 ounces of methamphetamine as well as a range of other drugs, firearms, vehicles, boats, cash and cell phones were seized. Police say these operations deal a “blow” to organized crime.
S&P REVISES THE OUTLOOK FOR 3 LARGE BANK CREDIT RATINGS TO “STABLE”
S&P Global Ratings has revised the outlook for its ANZ, ASB and BNZ credit ratings from “negative” to “stable”. S&P also confirmed the AA- ratings of the three banks. The move comes after S&P revised its outlook on Australia’s AAA sovereign rating to stable, which was passed on to Australian parents of major New Zealand banks. The outlook for Westpac NZ’s AA- rating remains negative, however, as Westpac Banking Corporation is considering a spin-off of its Kiwi subsidiary.
THE VACCINE FLOW IS INCREASING
The New Zealand government said Pfizer has scheduled about 1 million doses of the vaccine to ship to New Zealand in July.
ADJUSTING THE CONICAL
As part of a global fundraising degression already reported by the Treasury, their debt management office has launched a new coupon of 2.00%, nominal bond of May 15, 2032. Given the timing of the launch, they canceled their call for tenders (# 772) scheduled for June 10, 2021.
ONE WEEK MAKEUP
Last week the capitalization of the NZX50 has grown very strongly, up + 2.5% over the week, which resumed the increase since September 50 to + 5%. This increase in capitalization of + $ 3.1 billion over the week, however, only erases part of the decline of the last four weeks. The big winner last week was Intratil (IFT). Heartland Group (HGH) dropped two places to # 29.
LOCKING UNTIL END
The Australian state of Victoria has mentionned he is in the process of ending his confinement at midnight on Thursday.
Business conditions in Australia hit a new record in May (now +37 index points), thanks to further gains in every key component. But unlike other countries, the price aspect is not increasing, at least not yet. The decisions of the board of directors to invest are very strong. The NAB also claims Australia’s economy is now larger than before the pandemic and growth in the second quarter of 2021 will be strong.
From this time on Friday, the price of gold is up + US $ 36 and now at US $ 1900 / oz. It closed in New York at that same US $ 1,900 / oz and in London at US $ 1,888 / oz.
POSITIVE TREND ACTIONS
Wall Street couldn’t quite enter positive territory today, with the S & P500 ending down -0.1%. The Tokyo market started up + 0.3% and is so far matched by Hong Kong. Shanghai is up + 0.2% in early trade. The ASX200 is up a minor + 0.1% at the start of the afternoon, and the NZX50 Capital index is heading for a gain of + 0.3% at the end of the session.
SWAP & SOFT RETURN BONDS
We do not yet have today’s swap closing rates. If there are any significant changes again today, we will update this item. The 90-day bank note rate is unchanged at 0.32%. The ten-year Australian government benchmark rate is unchanged at 1.60%. The 10-year Chinese government bond was little changed at 3.12%. The ten-year New Zealand government is down -4 basis points to 1.82% and now the same as the previous RBNZ patch of 1.82% (-2 basis points). And the ten-year US government rose + 4bp to 1.57%.
THE NZ DOLLAR
The Kiwi dollar slipped very slightly in trading today to 72.3 USc, but held on to almost all of the weekend’s gains. Against the Aussie, we changed little at 93.2 AUc. Against the euro we are firm at 59.3 euro cents. This means the TWI-5 is now at 73.8 and only slightly below our open level this morning.
The price of bitcoin is now at US $ 32,640 and down -8.5% from where we opened this morning. The volatility of the last 24 hours has returned to extreme levels, +/- 6.7%.
This soil moisture table is animated here.
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