Best of Business

From  RNZ The housing market has gone quiet, triggering the biggest sales slump in nearly 40 years. CoreLogic NZ’s new Housing Chart Pack indicated 60,859 properties were sold in the year to February, which was the lowest 12-month total since October 1983. There were about 4100 sales in February, which was the lowest number for that month since 1981, with 16 per cent more listings than the same ti...

There are currently favourable conditions for buyers in the housing market. CoreLogic figures show close to 61,000 properties were sold in the year to February 2023, the lowest 12 month total since 1983. Real estate agent Diego Traglia told Kate Hawkesby says he knows it's a cliché for him to say now is a good time to buy but prices are low. He says nobody was expecting an up to 25 percent drop in...

There's hope the Government will take note of a report warning a move from natural gas too early could be costly. A report by major energy and gas players says changing too quickly could cost households and businesses $7 billion. Chief executive of Energy Resources Aotearoa John Carnegie told Mike Hosking the independent report is about informing debate on the role of gas in a low carbon future. H...

Warnings a hasty transition to renewable energy could be costly to New Zealand. Research commissioned by the energy sector, is recommending natural gas be part of the transition away from fossil fuels towards renewables. But it's found changing too quickly, could create $7 billion in additional energy costs for New Zealand homes and businesses. Major Gas Users' Group spokesperson Len Houwers says...

A welfare commenter claims the government shouldn't be taking credit for declining Jobseeker levels. Data from Social Development, comparing June 2020 to June 2022, shows almost 25,000 fewer people are relying on Jobseeker. But researcher Lindsay Mitchell says benefit levels spiked during the pandemic, and the numbers reflect a move away from COVID restrictions. She told Mike Hosking other benefit...

Claims the cost of living continues to bite, even though more people are working. Ministry of Social Development data shows almost 25,000 fewer people are receiving the Jobseeker benefit, comparing June 2022 to June 2020. There were more than 100,000 exits into work in the year to June. But Wellington City Missioner Murray Edridge told Kate Hawkesby leaving Jobseeker doesn't equate to financial se...

Oat milk production is set to return to New Zealand shores. New Zealand firm Free Flow Manufacturing is establishing the country's first plant-based milk facility and signed oat milk company Otis as its foundation customer. This will allow Otago-based Otis to return its oat milk manufacturing from Sweden to New Zealand. Otis co-founder Chris Wilkie says the company started out in Otago and despite...

New Zealand and Australia's Reserve Banks may be pausing the OCR hikes following recent financial meltdowns.  The collapse of Silicon Valley Bank and the near collapse of Credit Suisse has inspired these Reserve Banks to wait and watch before any future OCR hikes. HSBC chief economist Paul Bloxham says the events offshore will definitely slow any future OCR increases for the moment. Paul Bloxham s...

More public embarrassment for polytech merger Te Pūkenga today after a budget bid was accidentally published online. The budget bid had no redactions, revealing that the organisation believes it needs another $420 million over the next four years, half of which will be spent on IT. BusinessDesk managing editor Pattrick Smellie says the costs of marrying up the various IT systems that exist in the...

Concerns among Credit Suisse shareholders in the wake of its purchase by main rival UBS. The $3.2-billion purchase has been driven by regulators, but normally shareholders would have a say in whether a takeover happens. Credit Suisse's largest shareholder, Saudi National Bank, has lost more than US$1 billion from the purchase. JMI Wealth Director Andrew Kelleher told Mike Hosking it raises an impo...

The world's first pay it forward Shopify app has just hit the market. The app connects with a business’ Shopify sites and at the point of checkout customers can make a donation that goes to the chosen charities. The app had been in the works since 2020 by the company GoGenerosity but has been launched three months earlier to help provide some relief to those impacted by the cyclones. So far more t...

A nervous day for European share markets ahead of the first day of trading since the purchase of Credit Suisse. Markets started the day sharply lower, but have recovered slightly, with the London Stock Exchange closing on around 0.9 percent. In Switzerland, Credit Suisse's new owner UBS also closed on 1.5 percent higher. Europe correspondent Catherine Field told Mike Hosking the central banks are...

The retail sector is hoping to sit down with the new Police Minister soon. Ginny Andersen is replacing Stuart Nash in the role, having only been sworn in as a Cabinet minister earlier this year. She is a low-ranking member of Cabinet, but has 10 years of experience working with Police. Retail NZ Chief Executive Greg Harford told Kate Hawkesby they want Police to have more resources and tools to de...

Foreign Minister Nanaia Mahuta will travel to China on Tuesday for two days. This will be China's first visit from a Cabinet minister since 2019, and Nanaia Mahuta will be meeting new Chinese foreign minister Qin Gang. Nanaia Mahuta's trip comes as China’s President Xi Jinping travels to Moscow to support Russian President Vladimir Putin. NZME business commentator Fran O'Sullivan says the timing o...

Auckland's domestic airport is facing their biggest redevelopment since the terminal opened 57 years ago. Plans have been signed off to merge the domestic and international terminals and have them sit under one roof. The new airport will include 12 new domestic gates and a shorter - and covered - walk between terminals. Auckland Airport’s chief executive Carrie Hurihanganui says the existing termi...

The economy has contracted slightly more than predicted by economists and the banks. Latest GDP figures from Stats NZ show a 0.6 percent decline in the three months to December and compares to a two percent increase in the three months to September. Herald Business Editor Liam Dann told Francesca Rudkin if the next quarter is also negative, we could already be in a technical recession. He says eco...

There is a feeling around the country that our monetary policy is a mess. And a new report by the NZ Initiative is putting all the blame on the Government. The report highlights the Government’s role in distracting the RBNZ from maintaining price stability, with money remaining too loose for too long as a result of wrong inflation forecasts from banks. Along with the Governments prioritisations of...

A Kiwi company is using exoskeleton technology to help businesses keep workers safer from workplace injuries. The wearable exosuit has built in sensors that support muscles by tracking body movements. AI technology then provides real-time data which highlights health risks due to impact of repeated movements or posture, while even flagging dehydration. The robotic technology has been proven to red...

The New Zealand economy is shrinking, the only question is by how much. GDP figures due out this morning are expected to show the economy contracted in the fourth quarter of last year. Speaking to Tim Dower ASB Chief Economist Nick Tuffley is picking a steeper 0.5 percent drop. LISTEN ABOVE   See omnystudio.com/listener for privacy information.

The New Zealand economy is shrinking, the only question is by how much. GDP figures due out this morning are expected to show the economy contracted in the fourth quarter of last year. Speaking to the Mike Hosking Breakfast ANZ Senior Economist Miles Workman is predicting a 0.3 percent contraction. LISTEN ABOVE   See omnystudio.com/listener for privacy information.

High inflation is hitting the back pockets of farmers. The Beef and Lamb New Zealand 2022 to 2023 Mid-Season Update says that farm profit is predicted to decrease by 31 percent from the update before it. Beef and Lamb Chief Executive Sam McIvor told Mike Hosking they're facing a lot of cost increases in things like fertiliser, which has been pushed up by the Ukraine War. LISTEN ABOVE     See omnys...

The fourth quarter GDP figures are set to be released by Stats NZ tomorrow. After the third quarter's 2 percent growth, the Reserve Bank is forecasting the next quarterly GDP growth to be at 0.7 percent. Infometrics Principal Economist Brad Olsen is among the many economists predicting a drop in growth instead. Brad Olsen says growth will have stayed flat or dropped as low as -0.2 percent, as reta...

Prime Minister Chris Hipkins announced Monday that a public consultation to clarify the difference between contractors employees would be deferred. The Council of Trade Unions (CTU) is disappointed, with CTU secretary Melissa Ansell-Bridges saying it would harm misclassified contractors struggling with the cost of living crisis. NZ Herald Wellington business editor Jenee Tibshraeny says the unions...

Frustration over a blowout of Auckland's City Rail link build cost. It's asking for another billion dollars, half each from Auckland Council and the Government. The completion date for stations and supporting rail infrastructure has also been pushed back to November 2025. Heart of the City Chief Executive, Viv Beck, says it's a big blow for businesses in construction zones. She says some businesse...

Police are investigating at least two burglaries in Auckland overnight - including at a large supermarket in the suburb of Lynfield. Officers were called to Countdown Lynfield, on Hillsborough Rd, shortly before 1am after reports of a break-in.  “A group of offenders have taken multiple items before fleeing from the scene in a vehicle,” a police spokeswoman said. “Police are following positive lin...