Best of Business

More technology hubs could help pave a way forward in addressing communication black-outs during large storms. Some New Zealanders were left in the lurch when critical communication links broke during Cyclone Gabrielle. Earlier, a technical glitch hit ANZ, holding up overnight payments and leaving customers without access to internet banking. Rush Digital chief customer officer Terry Williams-Will...

Government debt is lower than forecast, but financial pressures loom on the horizon. The Government's interim financial statement shows net debt is at $70.5 billion in the seven months to the end of January. It's $3.5 billion less than expected, mostly due to the Super Fund gaining value. Infometrics Chief Economist Brad Olsen told Kate Hawkesby it might be time to rein in the spending due to mate...

The Australian Reserve Bank has increased the OCR by a further 25 basis points to 3.6 percent. This has been the 10th rate rise in a row, putting the OCR at its' highest point in 11 years in an attempt to curb inflation. HSBC Chief Economist Paul Bloxham is not surprised by this rate hike, saying economists predicted this was coming. Paul Bloxham says the RBA might consider pausing their rate hike...

Wellington brewery Parrotdog is looking to expand into Auckland. The brewery is seeking up $4 million in capital raise to fund this brand expansion, and have already received $1.2 million towards this goal. Parrotdog Brewery managing director Paul Watson says he's happy with how the raise is progressing and looks forward to a strong finish. Paul Watson is confident that there's demand for craft be...

A new online company is calling itself New Zealand's answer to Amazon Launching today, Buy Kiwi will allow New Zealanders to buy from businesses between 80 and 100-percent locally owned Managing Director Jamie Farmer told Mike Hosking it gives shoppers protection under the Consumer Guarantees Act, something not always provided with online international shopping. He says sourcing products locally w...

A survey commissioned by the Government reveals that 26 percent of landlords upped the rent in the past six months. But it wasn't because they're greedy, according to the results. 57 percent said they did it because of the law stopping them from putting it up more than once a year, so they felt they had to. Former president of the NZ Property Investors' Federation and property commentator Sharon C...

The first Chinese tour group in three years, is about to touch down in Auckland. It will be the first to arrive since New Zealand was added to China's Approved Destination list. Marketing Minds Chief Executive Anne Casey told Mike Hosking tourists are now reprioritising after Covid. She says travellers from China want to have their freedom, and feel safe. Australia and the US are not on the approv...

National is pledging to reverse the Government's proposed "app tax", saying it's a major deviation from current tax rules. The Government says the rule change, which will require GST to be charged on rooms, rides and other services sold through online platforms like Uber and AirBnB, will create a level playing field. But National says under existing rules, sellers who bring in less than $60,000 ar...

Calls for a banking sector market study are ramping up, after the Reserve Bank asked for one earlier this week. Bank profits have never been higher than those reported last year, it was the first time they’ve ever cracked $6 billion. Public Policy group Monopoly Watch has set out the terms of reference it thinks the Commerce Commission could use. Massey University Banking Associate Professor Clair...

Over in the US, the housing market looks like it's back on the rise. There's been a slight market slump, but new home sales have risen to a one year high and confidence among buyers and sellers has improved.  Sam Dickie from Fisher Funds says the US housing market will generally be different to New Zealand's, as they have longer fixed mortgages. LISTEN ABOVE See omnystudio.com/listener for privacy...

China is set to return to its economic powerhouse state after years of restrictions. Chinese consumers are out of lockdown and ready to spend, and this has economists all over the world recalibrating their global growth forecasts.  NZ Herald business editor Liam Dann says the return of Chinese consumers will be good for New Zealand's economy. Liam Dann says the expected wave of Chinese tourists wi...

S&P Global Ratings warns that Kiwis are blind to the 'astronomical' costs of fixing Three Waters. A new report from the credit agency suggests that local councils are gaming the system by building new infrastructure with the hope that their ratepayers won't have to pick up the tab. S&P Global Ratings director Anthony Walker says the cost of fixing water infrastructure could be between $120...

The 2023 oyster season is upon us and boaties in Bluff couldn't be more excited. Last year the harvest levels weren't up to expectations, but this year is looking much better. Barnes Wild Bluff Oysters general manager, Graeme Wright, joined Mike Hosking. LISTEN ABOVE   See omnystudio.com/listener for privacy information.

Big opportunities for the beef sector as the reopening of China allows for more beef exports. Beef intake in China is expected to make a strong rebound in the coming year as we see a preference for imported meat, according to a Rabobank report. Agricultural analyst Genevieve Stevens joined the Mike Hosking. LISTEN ABOVE   See omnystudio.com/listener for privacy information.

There are hopes the Government's new tourism action plan will help attract and retain a stable workforce. About 60 percent of tourism workers want to quit or are considering leaving in the next year. The plan aims to recognise quality employers, lift worker conditions, develop education and address the seasonal nature of the industry. Tourism Industry Aotearoa chief executive Rebecca Ingram told M...

Bank profitability hit an eight-year high in the December quarter when measured by net interest margin. According to Reserve Bank data, banks’ net interest margin rose by 6 basis points, to 2.37 per cent. The margin last reached this level in December 2014. NZ Herald Wellington business editor Jenee Tibshraeny says the net interest margin is just one way of measuring bank profitability, with retur...

Few are surprised to learn that house values have fallen again. This time, it's by one percent for February, the largest monthly decline since October last year. It's in the latest CoreLogic report and chief property economist Kelvin Davidson joined Kate Hawkesby. LISTEN ABOVE   See omnystudio.com/listener for privacy information.

New Zealand house prices have taken another heavy hit, down 11.5 per cent since February last year. The average property price is down $120,000 in the same time period to $971,000. A OneRoof report is out today and editor Owen Vaughan joined Mike Hosking. LISTEN ABOVE   See omnystudio.com/listener for privacy information.

Former MediaWorks CEO Cam Wallace will join Qantas as group chief executive of Qantas international and freight. His new job will pit him against former employer Air New Zealand, whom he worked with for two decades prior to MediaWorks. BusinessDesk editor Pattrick Smellie says that Air New Zealand would have expected Cam Wallace to return to the aviation industry, as he only left the company in a...

Westpac's economic overview shows we are still weathering the storm. With high levels of inflation and consumer prices rising by 7.2 percent, households are having to squeeze their spending. Borrowing costs are at their highest level in more than a decade, while sales are now at the lowest since the Global Financial Crisis. And the added heat of the cyclone is pushing even more pressure on the eco...

A call for the local to be put back into local government. Local Government New Zealand President Stuart Crosby wants less centralisation in the allocation of public spending. He says New Zealand is the third most centralised country in the OECD. Crosby says locals need more control over how money is spent in their communities. It's part of the Future for Local Government Review panel. He told Mik...

Retail sales were down 4 percent in the December quarter of 2022 compared to the previous year. Hardware, building and garden supplies were hit the hardest with a 15 per cent drop. Managing director of First Retail Group, Chris Wilkinson joined Kate Hawkesby to discuss. LISTEN ABOVE   See omnystudio.com/listener for privacy information.

The median wage for migrant workers has increased further, sparking concerns. The Accredited Employer Work Visa kicked in today and sees workers paid nearly $30 dollars an hour. OneStaff Chief Executive Jon Ives says this increase isn't fair for New Zealanders and it may not have been thought out properly. Jon Ives says this wage increase will have a knock-on effect that contributes to wage inflat...

New Zealand is likely to reach 'peak petrol' within the next two years, according to data from Channel Infrastructure. Diesel use is also set to remain strong for the time to come and aviation fuel consumption will only go up. Channel Infrastructure CEO Naomi James says petrol demand is peaking and will decline because of the demand for EV's and increasing fuel efficiency. Naomi James doesn't beli...

Air New Zealand boss Greg Foran admits the airline isn't popular with all of its customers. The national carrier has been under fire in recent months, with controversies about fare prices, flight cancellations and lost luggage. “The way that we think about it, we’ve got five stakeholders; customers, staff, suppliers, community and then we’ve got to reward our shareholders at some point.” LISTEN AB...