What happened on Tuesday | interest.co.nz
Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
ANZ has increased its flat rate card across the board. More here. HSBC raised its floating rate by +40 bps and its revolving credit rate by +30 bps. Update: The NBS increased their fixed rates by +25 bps.
CHANGES IN TERM DEPOSIT RATES
ANZ raised term deposit rates from +10bps to +30bps in a steepening trend. More here. The TSB has identified many tariffs. HSBC raised some savings account rates between +5 bps and +15 bps. Heartland Bank increased its offer over 9 months to 2.50% (+25 bps).
THE ‘COAL MINE CANARY’ AUCTION
The slowdown in auctions first evident in Auckland is now diffusion to the rest of the country with the most notable retreat in the Bay of Plenty.
MASSIVE OFFSHORE WIND FARM
The New Zealand Super Fund said it envisions a development that would power more than 650,000 homes and would be by far the largest of its kind in the country.
After declining for generations, there is growing positive demographic factors to come for Maori in the decades to come. In 2018, the Maori population made up 17% of our total population, ranging from 54% of the population in Gisborne to 9% in Tasman and Otago. This share is expected to reach 21% nationally by 2043, ranging from almost 70% in Gisborne to 12% in Tasman and Otago. Everywhere will grow, even if growth will be less in Auckland, going from 12% today to 13% in twenty years. In 2043, 17% of the country’s population is expected to identify as Maori, compared to just over 15% today. 9% will identify as Pasifika (from 8% now), 53% will identify as European, from 61% now. The big movers will be those who identify as Asian, rising from less than 16% today to more than 21% in twenty years. In twenty years, the standard demographic projection is 7.4 million, an increase of +2.2 million compared to the 5.16 million now.
REVIEW GIVES APPROVAL TO ANZ NZ DIRECTOR CERTIFICATION PROCESS
The Reserve Bank says ANZ NZ has taken appropriate action to address concerns raised about its director attestation framework in 2019. ANZ NZ has invested heavily in its director attestation and remediation program, according to a Deloitte study. Christian Hawkesby, Deputy Governor of the Reserve Bank and Chief Financial Stability Officer, said the review notes that a level of complacency regarding the execution of certain aspects of the director certification framework in 2019 is no more. The focus has been on adopting a “show me, don’t tell me” governance approach at ANZ that aligns with the Reserve Bank’s enhanced oversight policy, Hawkesby said.
AN ON-GOING EXPENDITURE SCHOLARSHIP
Australia delivered another impressive retail sales result, beating forecasts that assumed the storm and pandemic would hold them back. They didn’t, and spending hit its second-best month – ever. These sales increased by +1.8% compared to the previous month, and an impressive +9.1% more than a year ago. As January activity was also strong, it is likely that Q1-2022 will end very well.
CHINA IS GETTING CLOSE
The prime minister of the Solomon Islands has told his parliament that the country is ready to sign a development agreement with China – the one that gives the Chinese the right to intervene and protect your investments.
At the start of Asian trading, gold is down -US$29 from this morning, at just under US$1924/oz.
HIGHER ACTIONS EVERYWHERE
On Wall Street, the S&P500 ended Monday’s session up +0.7% in a construction gain. Tokyo opened up +0.8% in Tuesday morning trading. Hing Kong is up 1.0% in early trade. Shanghai is up +0.3% in its opening trade. The ASX200 is up +0.8% in early afternoon Tuesday. The NZX50 is up +0.2% late in the session.
We don’t have today closing swap rate again. They are likely to be slightly modified. The 90-day bank bill rate rose by +1 bp to 1.61%. The benchmark ten-year Australian government bond rate is back up +5bps from the same time yesterday at 2.89%. The China Govt 10yr is back up +1bp to 2.83%. However, the New Zealand 10-year government bond rate is now below 3.37% (down -2 basis points), but still above the RBNZ’s earlier fix for this 10-year rate at 3, 32% (down -6 basis points). The US 10-year government is now at 2.48% and up +1bp from the same time yesterday.
SOFT NZ DOLLAR
The Kiwi Dollar is now at 68.9 USc and down more than -½c this time yesterday. Against the Aussie, we are down from less than -½c to less than 92.2 AUc. Against the euro, we are down -½c to 62.8 euro cents. This means the TWI-5 is now down to 74.4 and a retreat of -50 basis points.
Bitcoin rose +1.1% today to $47,433. Volatility over the past 24 hours has been modest at +/-1.6%.
This soil moisture chart is animated here.
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