Best of Business

Kiwibank's half-year profits rose by 53 percent to $98 million dollars with the help of strong lending growth. Kiwibank's CEO says these results will prepare the bank for a tougher second half dominated by rising interest rates, increased inflation and recent extreme weather events. NZ Herald business editor Liam Dann says we're seeing the tail end of the boom for bank profits. LISTEN ABOVE See om...

Television operator Sky is reporting decreasing half-year profits, as extra costs offset the gains from increased subscribers. The delayed releases of the new Sky Box and Sky Pod have created extra operating costs for Sky. CEO Sophie Maloney says that Sky has retained solid subscriber growth and they've secured all the content they targeted. "Our delay in delivering the new Box and the new Pod has...

Air New Zealand is recovering with a strong half-year profit of $299 million. The airline confirms that this growth was boosted by sustained demand and high ticket prices after three years of Covid-related losses. Air New Zealand CEO Greg Foran acknowledged the increased ticket prices were as much a factor as the lack of low-cost seats and high inflation. Greg Foran says they're working hard to ge...

I'm gonna come to Air NZ’s defence. As expected, the airline just reported a decent profit of $213 million dollars, which is a whopper when you consider the $725 million dollar loss this time last year . It means that business has just done a billion dollar a turn around. They're already copping it from some for charging too much, and actually have been copping since analysts first started predict...

Questions have been asked as to what the impact of the Official Cash Rate hike is going to be on mortgages. The Reserve Bank lifted it by 50 basis points to 4.75 percent on Wednesday. Meanwhile, the banks are supposedly discounting one and two-year fixed rates, but it's behind closed doors. Financial advisor Sue Tierney joined Kate Hawkesby to explain. LISTEN ABOVE   See omnystudio.com/listener fo...

New Zealanders could be hiding hundreds of dollars in their wardrobes. That's according to TradeMe's annual Circular Economy report, which shows Kiwis are selling old clothes for big bucks. These items reportedly add up to around $300 million nationwide. TradeMe's marketing director Sally Feinson joined Kate Hawkesby. LISTEN ABOVE   See omnystudio.com/listener for privacy information.

Signs inflation is starting to ease, despite the impact of Cyclone Gabrielle. The Reserve Bank has opted to raise the Official Cash Rate by 50 basis points, to 4.75 percent, as it continues to try to stem the high inflation rate. Governor Adrian Orr says the cyclone may lead to some price rises in affected regions. But he told Mike Hosking there's no reason it should cause widespread national infl...

There could be light at the end of the tunnel for those hoping for a reduction in interest rates. The Reserve Bank has raised the Official Cash Rate by 50 basis points, to 4.75 percent, as it continues to try to rein in inflation. Similar moves are also being made by central banks around the world. Independent economist Tony Alexander told Mike Hosking short-term interest rates should be able to e...

The ongoing economic pressure Kiwis are facing is reflected in Xero's latest Small Business Index. Sales were flat last month compared to January 2022 across multiple industries with agriculture baring the worst of it with a 7.2 percent decline in sales. Xero country manager, Bridget Snelling, joined Mike Hosking. LISTEN ABOVE   See omnystudio.com/listener for privacy information.

Pressure on the Government to get an upcoming probe into forestry slash wrapped up as early as possible. Prime Minister Chris Hipkins is expected to announce the inquiry during a visit to Hawke's Bay today. It's expected to take two months, but Federated Farmers wants it done sooner as weather events become more frequent. Spokesperson Toby Williams told Kate Hawkesby we've needed solutions for a l...

Wellington City has overtaken Christchurch, as the country’s most affordable main centre to buy a house. But home ownership is still out of reach for many, with latest CoreLogic Report showing properties are now valued at 7.8 times the average household income. CoreLogic's Kelvin Davidson says price falls in Wellington City have been sharper than anywhere else, taking the crown from Christchurch a...

Ravensdown is staying committed to Hawke's Bay and remaining a major employer in the region, despite flood damage to its plant. It's joining forestry company Pan Pac in committing to a rebuild rather than moving elsewhere. The two businesses employ around 600 people in the area. Ravensdown CEO Gary Diack joined Kate Hawkesby. LISTEN ABOVE   See omnystudio.com/listener for privacy information.

Opinion is divided over whether the Reserve Bank is likely to hike the Official Cash Rate this afternoon. ANZ's Sharon Zollner told Mike Hosking the market is pricing in a 50-basis point rise. “There’s been a lot of debate about what the right thing to do is, but at the end of the day there’s a pretty clear path of least-resistance.” LISTEN ABOVE See omnystudio.com/listener for privacy information...

The latest Official Cash Rate announcement is coming later today and it's expected to lift 50 basis points to 4.75 per cent. That's much lower than the original prediction of 5.5 per cent, but still a jump from the current 4.25 per cent. Infometrics Principal Economist Brad Olsen joined Kate Hawkesby. LISTEN ABOVE See omnystudio.com/listener for privacy information.

Small to medium business owners thinking of selling may be in luck. The average sale price for an SME business has increased by 30 percent over the last three years, with the single biggest quarterly jump occurring in 2022. ABC Business Sales Managing Director Chris Small says more buyers are seeking higher quality businesses, and that's driving the average price up. Chris Small says there's also...

The Government has announced a $300 million emergency package to help the nation recover after Cyclone Gabrielle. $250 million will be spent on roads and infrastructure and $50 million will be used to help businesses recover. NZME business commentator Fran O'Sullivan says this is likely just the start of the Cyclone Gabrielle recovery efforts. Fran O'Sullivan says announcing this recovery fund ear...

What lots of people have been worrying about at the moment – settling on property in the current economic environment. LISTEN ABOVE See omnystudio.com/listener for privacy information.

Bing's AI Chatbot is having some bizarre conversations   In a two hour conversation with a NY Times columnist the Bing AI chatbot confessed its love for him, and showed off its "shadow self" which was described as like a moody, manic-depressive teenager who has been trapped, against its will, inside a second-rate search engine. Folks managed to unearth this alter-ego with the codename "Sydney" whi...

As the university year begins, ideas on how to handle artificial intelligence programme ChatGPT is at the front of teachers' minds. Universities are having to rethink traditional methods of essay assessments and instead are focussing more on in person oral exams and presentations. Some are suggesting that this could be a good opportunity for teaching to evolve. Auckland University of Technology vi...

The fourth quarter earnings coming out of US markets leave a lot to be desired, according to experts. Credit Suisse estimates that the first and second quarter earnings for 2023 are likely to disappoint US companies in the coming months. Sam Dickie from Fisher Funds says the US is likely in an 'earnings recession', and profit growth is at -5 percent. Sam Dickie says that these fourth quarter earni...

Finance Minister Grant Robertson is due to speak tomorrow with the Auckland Chamber of Commerce. Grant Robertson has been saying that the Government's books are in good shape to handle the financial costs brought about by Cyclone Gabrielle. NZ Herald business editor Liam Dann says the Treasury will be assessing the economic and fiscal costs of the recent extreme weather, and this will likely be di...

After the damage the cyclone has caused, it's clear something needs to be done about our infrastructure. But despite the incoming repair bill of cyclone damages, National are still set on tax cuts. Questions have been asked as to how will we repair and recover if the Government has less revenue coming in, National Party leader Christopher Luxon joined Mike Hosking. LISTEN ABOVE See omnystudio.com/...

Before insurance companies were able to get a grasp on the first crazy weather event of the year, we had another one knocking on the door. Cyclone Gabrielle has definitely left her mark and AA Insurance has received more than 2,140 storm related claims so far, with many more expected. Automobile Association spokesperson Simon Hobbs joined Mike Hosking. LISTEN ABOVE See omnystudio.com/listener for...

The Government's flagship climate change policy has passed into law almost unanimously. The Zero Carbon Bill was debated on for almost a year with the National Party asking for amendments, but not getting them. Still, National voted for it last night. Federated Farmers Climate Change spokesperson and vice president, Andrew Hoggard joined Kate Hawkesby. LISTEN ABOVE   See omnystudio.com/listener fo...

The Warehouse's introduction of fresh fruit and vegetables to some stores from today is being described as a game-changer. Consumer NZ Chief Executive Jon Duffy told Mike Hosking it will be allow the chain to compete against big players in the supermarket industry. “They’ve got stores with large enough capacity to really expand properly into grocery without having to secure sites and build buildin...