Best of Business

US House Speaker Kevin McCarthy has released plans to raise the debt ceiling by $1.5 trillion. This comes as banks are warning the US Government to bring the $31.4 trillion debt ceiling forward. Sam Dickie from Fisher Funds explained that if the US Government's debt ceiling is breached and the limit isn't raised, the Government could theoretically default on its debt obligations. Sam Dickie says r...

The lower-than expected 6.7 inflation rate offers some light at the end of the tunnel. This figure is unlikely to change the current outlook, as economists are still predicting the Reserve Bank will deliver another 25 basis point hike to the OCR next month. NZ Herald business editor at large Liam Dann says this inflation rate presents good news after months of inflation being worse than expected....

There's been quite a bit of chat around a report that's due to come out from the IRD that looks at 400 of the wealthiest families and individuals in New Zealand. This morning there was a speculative piece in The Spinoff suggesting that that IRD report could be paving the way for an introduction of a capital gains tax. A tax that Jacinda Ardern promised would be ruled out as long as she was Prime M...

A potential breath of relief for Kiwi consumers and mortgage holders has come with the release of new data. Inflation figures have come in much lower than expected, with the Consumer Price Index measuring 6.7 percent for the year to March. Although levels are still the highest since the 1990s, 6.7 is much lower than expected by bank economists, and the Reserve Bank. NZ Herald Business Editor at La...

Our current period of high inflation isn't over yet. Latest figures due out this morning are expected to show consumer prices rose between 6.9 percent and 7.2 percent in the year to March. ASB Senior Economist Mark Smith told Roman Travers says two major factors are driving the high inflation rate. "One is food prices really have rocketed and the second thing is housing costs remain really elevate...

Our current period of high inflation isn't over yet. Latest figures due out this morning are expected to show consumer prices rose between 6.9 percent and 7.2 percent in the year to March. ANZ Chief Economist Sharon Zollner told Tim Dower inflation isn't easing here as fast as it is in other countries. LISTEN ABOVE   See omnystudio.com/listener for privacy information.

Over in the US, first quarter earnings reporting season has officially kicked off. Despite many US companies facing a raft of challenges between interest rates, inflation, and banking turmoil, the S&P index is up by 8 percent. Milford Asset Management's Deborah Lambie says analysts are forecasting profits will be down by 6.5 percent, making it the second consecutive quarter of negative growth....

The annual inflation rate is out tomorrow, and it's expected to remain stubbornly high. Westpac economists forecast the annual inflation rate will come in at 6.9 percent, BNZ and Kiwibank predict 7.1 percent and ANZ and ASB economists expect 7.2 percent. NZ Herald Wellington business editor Jenee Tibshraeny says inflation rates will still be well beyond the Reserve Bank's 1 to 3 percent target ran...

How many times in recent decades have you heard the call for a better and fairer tax system?   How many times have we heard governments saying that the tax system needs to be looked at?   Well, I've got some good news for those at the upper end of income earning who may have been wondering when the tax axe was about to fall, forcing them to haemorrhage more.  It turns out, our tax system is pretty...

A Hamilton technology company has created a 'world first' by developing an automation system that can measure and cut plasterboard en masse. The development will cut down building times, decrease waste and enable more accurate cuts. Christopher Staal is the founder of EC8 and joined Tim Dower. LISTEN ABOVE   See omnystudio.com/listener for privacy information.

National is promising to end what it calls 'Labour's war on the farming sector'. It's announcing policy this morning promising to double the RSE worker cap to 38,000 people, and create a path to residency through the Accredited Employer Work Visa. It will also remove two agriculture regulations for every new one introduced, under a new 'two for one' rule. Leader Chris Luxon told Tim Dower foreign...

The Global Dairy Trade price index has recorded its first increase in two months. This morning's auction showed a 3.2 per cent climb since the last trading event earlier this month, this is the first gain after four consecutive falls. Amy Castleton, dairy analyst at NZX joined Roman Travers. LISTEN ABOVE See omnystudio.com/listener for privacy information.

On April 26th, New Zealanders will get to find out how much tax the wealthiest citizens pay. Separate studies by the Inland Revenue Department (IRD) and the Treasury are expected to provide both a guide to and rationale for any tax reforms the Government may announce in the budget. BusinessDesk commentator Pattrick Smellie says this release isn't a response to the recent OliverShaw report into our...

A new tax report has found middle income renters, without children, are paying some of the highest tax rates. The report has been conducted by OliverShaw tax advisors and is investigating how fair the system is. Principal of OliverShaw Tax Advisors, Robin Oliver told Tim Dower wealthy people are paying higher effective tax rates than people on lower incomes. He says overall the system works but th...

The looming recession could cut deeper than previously thought. ASB is now forecasting the economy will shrink by about two-percent by early next year, double the contraction it was forecasting three months ago. Former Reserve Bank economist Michael Reddell says its a plausible prediction. He told Tim Dower every time the Reserve Bank tries to significantly reduce inflation, it's a recipe for rece...

New Zealand’s looming recession is tipped to be twice as deep as previously thought, with Kiwis being warned to prepare for a tough rest of the year. The bleaker forecast, from economists at ASB, comes as food prices rise at their fastest annual rate in more than 30 years and many struggle to afford the basics. ASB is predicting a 2 per cent contraction to gross domestic product (GDP) by early 202...

The International Monetary Fund is warning New Zealand is likely to be hard-hit in a global economic down-turn. Its 2023 outlook forecasts New Zealand will have one of the lowest GDP growth rates and one of the highest inflation rates in the Asia Pacific region in the coming years. In their projections for GDP, NZ's current account balance is reported as -8.6 percent of GDP, worse than Greece's at...

New Zealand's coffee capital has been left off the top ranking coffee destinations. Coffee company Tambia has released a list of the world's top 50 coffee spots which include cafés in Melbourne, New York and Toronto. But notably Wellington is nowhere to be seen on it. Wellington café owner Aydan Apiata told Tim Dower he's surprised by the news, given the other locations on the list. He says that's...

Bad news for the economy and bad news for those holding out hope for lower interest rates. Economic consultancy Infometrics says while the economy has probably been in recession since late last year, there's very little evidence inflationary pressures are starting to ease. It's now forecasting the Reserve Bank will need to lift the Official Cash Rate to 5.75 percent. Chief Forecaster Gareth Kierna...

US inflation data was released this morning, and the figures have surprised experts. The US CPI inflation rate slowed down to 5 percent in March, the lowest level recorded in nearly two years. NZ Herald business editor at large Liam Dann was pleasantly surprised by these inflation figures, saying some core inflation data wasn't as good, but it was headed in the right direction. LISTEN ABOVE   See...

Uber is incentivising drivers to go green and slash emissions. Drivers can earn an additional $10,000 over two years if they make the switch to a fully electric car. The company has estimated only around two percent of New Zealand Uber drivers are rolling around in zero-emission vehicles. Uber Australia New Zealand Managing Director Dom Taylor says the incentive helps them meet their goals. "By 20...

Despite a few setbacks, the tiny apple brand Rockit is on track for its biggest season yet. The company was facing a difficult season even before the cyclone, thanks to record early season rain, but now it's anticipating record export volumes. CEO of Rockit Global Mark O'Donnell joined Tim Dower. LISTEN ABOVE   See omnystudio.com/listener for privacy information.

Last week's OCR hike is starting to have some impact with ANZ, the country's largest bank, raising fixed and floating interest rates across the board. Chief Executive Antonia Watson told Roman Travers the one-year lending rate is going up by 20-basis-points. She says the bank is still passing on only a small amount of the OCR increases. LISTEN ABOVE   See omnystudio.com/listener for privacy inform...

The housing market is slowing down- and experts are claiming NZX-listed companies are being affected.  Jeremy Hutton from Milford Asset Management says the sliding housing market has caused several sectors to decrease in value, highlighting the recent underperformance in the retirement sector. Jeremy Hutton also says Fletcher Building has been affected by the current housing market, with sales slo...

More questions than answers, for me, on the residency carrot finally being dangled in a desperate attempt to plug gaps in the health sector. Winter's looming, we're worried about another wave of Covid and all the other seasonal sniffles and the health system is already crying out for staff. So, from now, another 32 job roles go on the green list. If you've got a qualification, you're in. Have we l...