Here are the key things you need to know before you leave work today.
TODAY’S MORTGAGE RATE CHANGES
There were no changes today.
TODAY’S DEPOSIT RATE CHANGES
There were no deposit rate changes today.
AIRWORK PROFIT TAKES OFF
Airwork Holdings announced a full year Net Profit After Tax of $24.6 million, up 58% on the prior year. It announced a final dividend of 8 cents per share taking total dividends for the year to 17 cents, up 1 cent compared to the previous year.
CHANGING THE GUARD AT CHORUS AND NZ POST
There are to be changes at the helms of Chorus and NZ Post with Chorus CEO Mark Ratcliffe and NZ Post Chief Executive Brian Roche announcing their resignations. Ratcliffe has headed Chorus since it demerged from Telecom in 2011 and will finish in the middle of next year, and Roche has headed NZ Post since 2010 and will finish with the company next April.
AUCKLAND AIRPORT TO PAY STAFF $1500 BONUS ON THE BACK OF TOURISM BOOM
Auckland International Airport said it would pay its staff a $1500 bonus after total passenger movements were up 9.1% in the year to June 30, which lifted net profit by 17.4% to $262 million. The company also announced a fully imputed final dividend of 9 cents per share, taking total dividends for the year to 17.5 cents per share, up 19.9% on the previous year.
CHORUS PROFIT FLAT
Chorus announced a net profit of $91 million for the year to June, unchanged from the previous year. Operating revenue was also flat at $1008 million (2015 $1006 million).
MERCER POSTS LOSS
Mercer Group posted a net loss after tax of $6.7 million for the year to June, as it continues to restructure its business. “While acknowledging that this result is by any measure unsatisfactory, it represents the cost of the continued refocusing of the business, the significant restructuring initiatives undertaken and weakness in the dairy sector,” the company said when releasing its results.
WHOLESALE RATES: THE YIELD CURVE STEEPENS MARGINALLY AFTER FED COMMENTS
The NZ swap curve steepened today with rises of between 1pbs and 2bps across the curve, after bigger movements earlier in the day. Federal Reserve comments at Jackson Hole over the weekend saw US Treasury rates fall sharply initially following Janet Yellen’s speech, but then spiked back up to close higher than the previous day after the Fed Deputy Governor came out said Yellen’s speech was inconsistent with a move for two interest rate hikes in 2016. With the upward movement in US Treasury yields, it wasn’t surprising that we saw NZ swap and bond yields up during the day.
SPARK MAKES $125 MILLION BOND ISSUE.
Spark Finance announced it was issuing up to $125 million of 10 year bonds to be priced on Wednesday. The price will be set at 1.55% over the prevailing 10 year swap rate.
NZD BATTERED BY FED COMMENTS
The NZD was one of the big losers across the major currencies as the USD strengthened on the back of Fed comments that an interest rate rise was “in play” at the next Fed meeting in September. The NZD was hammered as a result and is struggling to recover any of its lost ground. The NZD/AUD cross rate is roughly where it was on Friday as the NZD has rallied against the AUD for most of the day. Check our real-time charts here.
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