Weekly Overview 6/6/13

Worries about growth offshore have pushed the NZD lower this week - plus more on the housing market.

Welcome to the June 6 Weekly Overview.

A full pdf copy of the Weekly Overview is loaded here.

In my Youtube clip this week I discuss the contens of the Weekly Overview. 5.08 minutes

New subscribers can be added to the emailing list here.

Lead Article – Could freeing up land lead to higher interest rates?
If great tracts of land were miraculously freed up for housing, the resulting extra construction would mean extra upward pressure on wages and materials thus extra inflation, thus extra hikes in interest rates, thus extra strength in the NZ dollar. Exporters should be careful what they wish for when they discuss the housing market.Also, 71% of people would disagree with the statement that they are unhappy about house prices rising. 527 words

Some of the Week’s Economic Data
Commodity prices have eased marginally but residential construction is soaring – with lots more to come. 251 words

Interest Rates
Rates have not move by much this week. But one day we will see some large changes – we just don’t know when because in this post-GFC environment the level of uncertainty about so many things is stratospheric. 278 words

NZ Housing Market
House price inflation expectations are rising. On average Kiwis expect prices to rise by 4.6% in the current year. A month ago that expectations was 4.3%. Full details will be in our BNZ-Nine Rewards Consumer Trends Survey to be released on Monday. Plus, the ratio of sales to listings in Auckland has hit a record high – the price implications are obvious. 527 words.

Offshore
In Japan a big reality check regarding the likely success of PM Abe’s policies is hitting share prices. In the US eyes are intensely focussed on this coming Friday night’s employment report. In Europe unemployment keeps rising while in Australia growth has slowed but at 3.1% for the past year is still good. 1,630 words.

Exchange Rates
It has been a good week for exporters with the NZD falling to 51.5 pence and below US 80 cents. But economic fundamentals argue for the NZD rising again further down the track. 748 words

Some things are best kept private - introduction to BNZ Private Bank
If you would like to speak with one of our Private Bankers to review your personal situation, feel free to contact us for a discreet obligation free discussion on 0800 477 077 or email us at privatebank@bnz.co.nz. To find out more about BNZ Private Bank, please visit www.bnzprivatebank.co.nz
Tony Alexander produces six regular publications.
The monthly Growing With China issues are here.
The monthly Brain Gain NZ can be located here.
The Weekly Overviews are loaded here.
The monthly BNZ-REINZ Residential Market Surveys are posted here.
The monthly BNZ Confidence Surveys are available here.
The monthly BNZ-Nine Rewards Consumer Trends Survey is here.

Other recent publications include the following.
The Cyprus Haircut
Sources of Western Apprehension About China
Expat Experiences of NZ Hiring
Advice from NZ employers to expats and migrants
19 Reasons Why Auckland House Prices Will Keep Rising. Page 5 of
Massey University Symposium Handout on Housing Affordability
Kiwi Business Locus of Control at a Distance

ENDS

© Scoop Media