What happened on Friday | interest.co.nz
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 TERM DEPT RATES
The TSB has increased a number of TD rates. The Treasury has also raised its Kiwi bond rates. More here.
DENSE CLOUD OF UNCERTAINTY SURPASS 2022
Most businesses are confident about their future, albeit to a lesser extent. But most companies are not confident about the economy and its direction, and to a greater extent. Finding labor remains the biggest and worsening problem, while freight disruptions also have a growing impact. It’s all according to December ANZ Business Confidence Survey. What is concerning is that residential construction intentions and the credit facility are tightening rapidly. Inflation expectations continue to rise, while cost expectations and price intentions rebound to very high levels, observes ANZ. Businesses now have more inventory and even order earlier to ensure they have a supply. This is likely to exacerbate existing inflationary pressures, as companies are incentivized to “pay” to secure their stocks. More here.
MORE DIFFICULT ENTRY
First-time home buyer affordability of mortgage worsened to close the year. Low-market prices continued to rise sharply in November, making homeownership even more inaccessible for middle-earners. And that’s before the full impact of the CCCFA credit restrictions were felt. A strong credit crunch was put in place by this new regulation.
FREE BNZ MOBILE BANK VIA VODAFONE DEAL
Through an agreement with Vodafone, BNZ claims to be the first bank to offer free mobile banking services in New Zealand. BNZ says that from today no mobile data will be used every time a Vodafone customer uses the BNZ app, BNZ online banking or BNZ website on their mobile phone.
ADVISED P2P TRUSTEE
The FMA has Officially Notified Squirrel P2P Trustee for failure to meet certain obligations as a depositary. The entity provides custodial service for the peer-to-peer lending service of Squirrel Money Limited. Squirrel Money had 1,416 P2P clients and $ 35.5 million in investor funds, as of March 31, 2021. While this warning is somewhat technical in nature, the FMA says âinsurance engagements are essential support to ensure that a custodian is fulfilling its role and that investors’ money is being held appropriately “and he should have known about the rules that were broken between 2016 and 2020.
A LATE FLASH OF FUNDING FOR THE LOAN PROGRAM
Over the past week or so, two banks have plunged into the Financing program for loans offered by the RBNZ, one for $ 200 million, the other for $ 500 million. If readers know which banks are using this stimulus credit, please contact us.
BNPL IN VIEW CFPB
An American regulator noted he was investigating the immediate buyout and payment industry later with a survey of the biggest operators there, which includes two of Australia’s biggest (AfterPay and Zip). Shares of both fell sharply after the announcement. The US regulator is concerned about debt accumulation, regulatory arbitrage and data collection in a consumer credit market that is already evolving rapidly with technology.
UPDATE ON LOCAL PANDEMIC
In Australia, pandemic case in victoria 1503 have been reported today. There are now 12,578 active cases in the state – and there have been 7 more deaths today. In NSW there was 2213 new community cases reported today, and another big jump, with 9,569 active cases acquired locally, but only one death. Queensland is report seven new cases. ACT has 20 new cases. Overall in Australia, 89.8% of eligible Australians are fully vaccinated, and 3.9% have had only one injection so far. In contrast, there were three cases in New Zealand at the border, and 76 new community cases today. Now 90.2% are doubly vaccinated, 94.3% of Kiwis aged 12 and over nationwide have had at least one vaccination and the Australian equivalent rate is now 92.7% of every 12 years and more.
GOLD MORE FIRM
At the start of Asian trading, gold is at US $ 1,802 and + US $ 24 higher than yesterday at this time, or + 1.3%.
Earlier today, Wall Street closed lower with the S & P500 down -0.9% when trading Thursday. Tokyo is down -0.9% at the opening of trade and heading for a weekly rise of + 0.3%. Hong Kong is down -0.6% in its opening trade today and is heading for a sharp decline of -3.7%. Shanghai is down -0.4% in its opening trades and if that holds, it will be down -0.7% this week. ASX200 is up + 0.6% early in the afternoon and, with any luck, could end the week flat. And the NZX50 is stable at the end of today and will end its week down -0.5%.
We don’t have today’s one closing swap rate again. They are likely to be soft. The 90-day bank note rate rose sharply by +1 bp to 0.93%. The benchmark ten-year Australian government bond rate is unchanged at 1.61%. The 10-year Chinese government was little changed at 2.88%. The 10-year New Zealand government bond rate is now at 2.27% and down -3 basis points and still below the previous RBNZ rate for that 10-year rate at 2.31% ( -3 basis points) t. The ten-year US government is now 1.43% and -4 basis points lower.
COMPANIES IN NZ DOLLAR
The Kiwi dollar is now at 67.9 USc and slightly stronger since yesterday. Against the Aussie we’re also slightly firmer at 94.6 AUc. Against the euro we are still at 60 euro cents. This means the TWI-5 is a bit higher at 72.5.
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BITCOIN ENTERPRISE AGAIN
The price of bitcoin has fallen -2.5% to US $ 47,865 from yesterday’s level this time around. Volatility over this period has been moderated to just over +/- 2.1%.
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