Here are the key things you need to know before you leave work today.
TODAY’S MORTGAGE RATE CHANGES
Kookmin bank cut its six-month, one-year and two-year mortgage rates, with each cut by 15 basis points. The six-month and one-year rates are both now 5.84%, and the two-year rate is 6.04%. See all banks’ carded, or advertised, home loan rates here.
TODAY’S DEPOSIT RATE CHANGES
There were no deposit rate changes.
NEW AUCKLAND SPECIAL HOUSING AREAS
Building and Housing Minister Nick Smith and Auckland Mayor Len Brown have detailed 11 new Auckland special housing areas they say will provide up to 1,600 new homes. They say this brings the number of special housing areas established in Auckland to 97, with the potential for 47,000 new homes.
The 11 new special housing areas announced are: Bute Road, Browns Bay: 0.17 hectares, 49 homes; Sunnybrae Road, Hillcrest: 2.48 hectares, 100 homes; College Hill, Ponsonby: 0.24 hectares, 48 homes; Kingdon Street, Newmarket: 0.12 hectares, 58 homes; Corner Cornwall Park Avenue and Great South Road, Greenlane: 0.28 hectares, 64 homes; Layard Street, Avondale: 0.61 hectares, 124 homes; Kirkbride Road, Māngere: 1.70 hectares, 53 homes; Pacific Events Centre Drive, Manukau: 9.21 hectares, 900 homes; James Road, Manurewa: 0.21 hectares, 39 homes; Great South Road, Manurewa: 0.22 hectares, 24 homes; Takanini Road, Takanini: 1.36 hectares, 130-175 homes.
GOVT, AUCKLAND COUNCIL TO ‘WORK TOGETHER TO AGREE’ ON TRANSPORT
The Government and Auckland Council announced Terms of Reference outlining how they will “work together to agree” on an approach to develop Auckland’s transport system.
COMCOM DETAILS TRUCK SHOP PROBE
A Commerce Commission report following a year long probe into mobile traders, or truck shops, has found 31 of 32 truck shops visited weren’t complying with all their obligations under the Fair Trading Act and Credit Contracts and Consumer Finance Act. Issues identified include making it difficult for customers to cancel agreements, obtaining multiple signed direct debit forms, continuing to take payments after an item is paid for, misleading and confusing representations, and a range of disclosure issues. Two of the traders are now under Commerce Commission investigation, with the other 29 having been advised of changes they must make to comply with the law.
GOVT ADDING CONSUMER WELFARE TEST TO ANTI-DUMPING LAW
Minister of Commerce and Consumer Affairs Paul Goldsmith says a consumer welfare test is being added to New Zealand’s anti-dumping regime. Goods are dumped if the export price to New Zealand is less than the price they are sold for in their home market. A duty, or a financial penalty, is imposed on dumped products that harm New Zealand manufacturers or a local industry. However, Goldsmith says introducing a consumer welfare test is designed to ensure a competitive market where consumers get the best value for money. Goldsmith says the test will weigh the impact on manufacturers against the wider effects on industries and consumers. Goldsmith also says the Government has decided against introducing an automatic termination period on anti-dumping duties.
LONG SERVING F&P HEALTHCARE BOSS STEPPING DOWN
Mike Daniell, managing director and CEO of Fisher & Paykel Healthcare which is one of NZ’s most successful sharemarket listed companies, is to retire by the end of March next year. Daniell has been CEO of F&P Healthcare for more than 25 years dating back well before the company was spun out of whiteware maker Fisher & Paykel Industries in 2001. During his tenure the business has grown more than twenty fold and now sells its medical devices in more than 120 countries. Daniell, who will remain as a director, will be succeeded by Lewis Gradon, who is currently F&P Healthcare’s senior vice president of products and technology, and has been with the company for 32 years.
The company also upgraded its full-year net profit after tax forecast to between $135 million and $140 million from $125 million to $130 million. The new forecast is based on an exchange rate of about US65c to the NZ dollar versus US72c for the earlier forecast made in May.
LANDCORP’S PROFIT PLUNGES
State owned farmer Landcorp announced an 84% drop in annual profit to $4.9 million against a backdrop of heavy milk price falls and lower returns from lamb. Revenue fell 9% to $224.3 million. Bank borrowings increased 22% to $201.7 million. Its banks are Westpac, ANZ and ASB. Landcorp has assets of $1.77 billion.
GOVT BOND TENDER WELL RECEIVED
The latest government bond tender of $200 million of April 2020’s was covered three times with plenty of buying interest. A total of 25% of bids received were successful and the average weighted yield was 6 basis points lower than the previous tender in late July.
Swap rates were up strongly across the curve early in the day as markets took into account the strong rise in US treasury yields. The NZ market retreated slightly as Asian markets came online. However, the overall steepening trend evident in the past few days continued. The one-year swap rate was unchanged at 2.76%, two-year down one basis point at 2.82%, five-year up two basis points at 3.13%, and 10-year up six basis points at 3.60%. The 90 day bank bill rate was at 2.88%.
The NZ dollar retreated in early trading following strong US durable goods data. However, it subsequently found some support rising towards US65 cents before tapering off. It was last at US64.65c, AU90.51c, and the Trade Weighted Index (TWI) five was at 68.93. Check our real-time charts here.
You can now see an animation of this chart. Click on it, or click here.