Here’s my summary of the key events over the weekend that affect New Zealand, with news that one bank has reduced local fixed mortgage rates below 4% for the first time.
Pushing lower is SBS Bank who have announced a 3.99% one year ‘special’. This is a new all-time low, only ever beaten by the heavily subsidised State Advances loans for returning servicemen after World War Two. Money is cheap in New Zealand these days, adding fuel to real estate asset prices. Obscene gains are dropping into selected lucky people’s laps.
Elsewhere, China said it closed down the nation’s biggest “underground bank,” which has processed more than 400 billion yuan (NZ$100 bln) in illegal foreign currency transactions, as the authorities tackle corruption and try to restrain capital outflows that have hit all-time highs this year. About 370 people have been arrested or face lawsuits or other punishment in the case, the official People’s Daily reported over the weekend, quoting police officials. The case brought the total for underground banking and money-laundering activities to 800 billion yuan since April, the newspaper said.
In Europe, the ECB is ready to act quickly to boost anemic inflation in the euro zone, its president said over the weekend, offering the strongest signal yet that they will announce more stimulus measures at its December 3 meeting.
In India, most of their Reserve Bank’s 17,000 employees went on a one-day strike in what the central bank described as “mass casual leave”. The walk out resulted in “some interruptions” to clearing and settlement operations at the central bank, but it said that its systems were largely operational. Four unions had called for the strike to demand better pension benefits. It was also against reforms that would reduce the RBI’s regulatory powers.
In New York, the UST 10yr yield benchmark slipped on Friday, now at 2.26%.
But the US benchmark oil price is slightly higher, now just under US$42/barrel, while the Brent benchmark is just under US$45/barrel.
And gold is also marginally higher, now at US$1,076/oz.
The New Zealand dollar starts the week at 65.6 US¢. Against the Aussie it is at 90.7 AU¢, and is a whole 1c higher against the Euro than it was at this time last week at 61.6 euro cents. The TWI-5 is at 71.2.
Later today, we get the next update on our migration levels – this time for October. Last year, October was the highest month recorded for long-term migration, but in 2015 it has been far outstripped by net arrivals in February and September. A record result is possible for October 2015 so we will be watching that data closely.
If you want to catch up with all the local changes on Friday, we have an update here.
The easiest place to stay up with event risk today is by following our Economic Calendar here »