Best of Business

According to new data, retail cart spending on non-essential items has gone up again this year. Stats NZ says that electronic card spending climbed an extra $88 million, across categories like appliances, furniture, liquor, and apparel. Infometrics principal economist Brad Olsen explained that this data is surprising, because it indicates that higher interest rates haven't hit yet. Brad Olsen sugg...

The Government is taking aim at bank's massive profits by allegedly looking into open banking, with an announcement potentially coming this week. Open banking is when you can move all your bank details, your debits, your mortgages etc between banks very quickly, creating high amounts of competition, as seen overseas. The evidence shows that it brings banks profits down about 10 percent. Associate...

National's outlining how it will approach working with a Reserve Bank Governor it's criticised if elected next year. Adrian Orr will spend another five years in the role after the unanimous recommendation from the central bank's board. Finance spokesperson Nicola Willis told Kate Hawkesby they'd initiate an independent inquiry into monetary policy decision making over the past two years. She says...

A former Reserve Bank economist has laid into Adrian Orr's reappointment as Reserve Bank Governor. He'll spend another five years in the role, after the unanimous recommendation from the central bank's board. Michael Reddell told Mike Hosking he wouldn't have given him the job. He suggests he's fundamentally unfit for the job, from his personality and style, to the way his focus has been distracte...

There is a desire to be proactive rather than reactive when it comes to supply chain disruptions. The Productivity Commission will look into our economy's resilience to such shocks and look to identify possible policy response and interventions. Council of Cargo Owners chair Ant Boyles told Mike Hosking over the past couple of years we've seen some reactive actions to disruptions. He says to put s...

The reappointment of Reserve Bank Governor Adrian Orr has not gone down well with National and ACT. National say the party is appalled, and ACT says it shows the low standards that Labour sets for New Zealand. BusinessDesk managing editor Pattrick Smellie addresses the backlash and points out that Grant Robertson was in a no-win situation when it came to making this reappointment in the current cl...

It's the beginning of the silly month when it comes to retail special days - but will we get out there and spend this time around? Today marks the beginning of 'Click Frenzy' while Friday is another big shopping day we've adopted from China called ‘Singles Day’. Then at the back end of the month you have Black Friday and Cyber Monday. First Retail Group managing director Chris Wilkinson joined Mik...

There's a post-pandemic boom of people studying to work in the tourism industry. Exclusive data revealed to Newstalk ZB shows enrolments at the New Zealand School of Tourism are up 25 percent for 2023. The school claims more students feel supported to go back into the tourism sector,  as parents recognise better employment opportunities. School CEO Ana Maria Rivera says there's a range of people e...

Dairy companies want market access Canada committed to, upheld. Trade Minister Damien O'Connor has asked for an international panel to hear a dispute between the countries - which has seen Kiwi products locked out of the Canadian market. He says Canada isn't living up to commitments under the CPTPP agreement, by implementing broader dairy import taxes. Dairy Companies' Association Executive Direct...

New Zealanders are preparing to tighten their purse strings. Economist Tony Alexander has surveyed more than 1000 people on their spending expectations. He's found people expect to increase what they're spending on groceries, gardening equipment and domestic travel, as prices continue to rise across the board. But he told Mike Hosking a net 28 percent of respondents actually plan to decrease what...

New Zealand's red meat industry is booming, yet there are fears export growth may slow following a busy month. Export values have risen, with beef up 25 percent from the previous year, and sheepmeat up 15 percent. However, external factors are slowing growth as inflationary challenges present themselves - a drop in value of the Japanese Yen has meant beef exports are down 23 percent. Meat Industry...

Federated Farmers says Canada is extremely protectionist in its dairy system. Trade Minister Damien O'Connor has asked for an international panel to hear a dispute between the countries, which has seen New Zealand products locked out of the Canadian market. He says Canada isn't living up to commitments under the CPTPP agreement, by implementing broader dairy import taxes. Federated Farmers Preside...

Retailers will be having a busy rest of their November. Click Frenzy, Singles Day, Black Friday and Cyber Monday sales will all happen before December. Retail NZ Chief Executive Greg Harford says we have imported sales from overseas to keep up with customers' demands. He says while they used to be niche sales, they've now gone mainstream with savings on everything from electronics to clothes. He t...

Westpac has recently announced that their profits are up by 12 percent, putting their earnings at $1 billion dollars before the years' end. The timing of this coincided with Jacinda Ardern's latest post-cabinet briefing, in which she said that banks had to assess their “social licence to operate” as they make record profits in a cost of living crisis. Westpac NZ CEO Catherine McGrath defends these...

One of life's lessons is that the more things swing one way, the greater the eventual correction. McLeod Transport in the Bay of Plenty are looking at becoming landlords because they can't get workers. The broadest of questions once again has to be asked of the Government. Just how badly do they want to cripple business and constrain the economy with their mad immigration policy? How many examples...

A 'Rebuilding Better' series will be out in the Herald tomorrow about how New Zealand can rebuild - economically and socially - post Covid-19. The project will be focused around examining aspects of New Zealand life, starting with the economy, but covering health, social division, crime, and national identity to find out if New Zealand can emerge as a fairer and more prosperous nation post Covid. ...

A2 Milk has finally got the all clear to sell its infant formula in the U.S. It applied for the approval back in May when America announced a nationwide shortage, and finally got to break into the market this month. Adrian Allbon, Jarden's director of equity research, considers this a positive development. The approval process only lasts til January currently, but A2 Milk has an opening to extend...

Supermarket giant Foodstuffs has put a moratorium on its suppliers, stopping them from changing prices for a minimum of 12 weeks over the Christmas period. Retail consultant Nick Hogendijk has read the documents that show this and he joined Heather du Plessis-Allan. LISTEN ABOVE   See omnystudio.com/listener for privacy information.

A Kiwi woman has discovered it's cheaper to do her food shop via an Australian supermarket online and get it shipped over, rather than doing the food shop here. She paid $100 for the groceries in Australia, and $140 dollars for the comparative shop here. She got shipping waived, but if she hadn't, it was only $15 dollars. With us now is Australian retail consultant Nick Hogendijk, who has been fol...

Part two of Laurel and Hardy of the New Zealand economy. This time it's Grant Robertson and the Government's immigration policy. The wage numbers were the worst thing that could possibly have happened. They increased at a rate not seen since records began. It's not the sort of record you want to break. Wages are going up at the rate they are because there are no people left to hire. As long as thi...

Banks are calling on their customers to reach out if they're feeling financial stress. The Reserve Bank has predicted lending rates and household debt will continue to rise, while house price will trend downwards. Bankers' Association CEO Roger Beaumont says the levels of help will depend on income, size of mortgage and household expenses. But he told Kate Hawkesby early intervention is the best o...

The Government's defending dipping into the Covid response fund to financially support Three Waters reforms. It diverted more than $70 million from the pandemic Response and Recovery Fund towards Three Waters reforms including consulting and helping councils adapt. National party Finance spokesperson Nicola Willis is labelling the Government sneaky and dishonest and says the fund should've only be...

Calls for urgent financial support for the struggling tourism sector. The Government has drawn criticism for their lack of action towards a $54 million innovation fund to help with post-Covid recovery. The scheme was announced in May's Budget, but none of the fund has been spent because the eligibility criteria is still yet to be written. Tourism Export Council chief executive Lynda Keene told Mik...

Tough times ahead for mortgage holders but they won't have to go it alone. The Reserve Bank has issued a warning about negative equity where people owe more than the value of their house. Kiwibank has around 30 to 40 customers a week asking to make changes to their mortgages, CEO Steve Jurkovich says that's not a huge proportion of their customers overall. He told Mike Hosking the housing market h...

A warm welcome for regulation of the buy now, pay later sector. The Government has announced compulsory affordability checks for loans more than $600, to ensure the borrower doesn't end up in a debt trap. Providers will also need to have hardship processes in place, especially as the Christmas season looms near. LayBuy managing director Gary Rohloff told Mike Hosking as long as the regulation is a...