Best of Business

The Warehouse Group says this year's unacceptable earnings have two parts. It's posting a $54.2 million net loss after tax. Last year it made a $29.9 million profit. Sales at The Warehouse and Noel Leeming are down 5.3 percent and Warehouse Stationery is down 6.7 percent. Interim CEO, John Journee says they get it right most of the time, but it needs to be all the time. "Part of it is strategy and...

Over in Australia, negative gearing and capital gains tax changes are on the political agenda in a bid to reduce problems in the housing market.  The Labour Government has confirmed that the current tax concessions are set to undergo a review. Australian correspondent Murray Olds says Prime Minister Anthony Albanese has acknowledged the complaints of younger voters hoping to get a spot on the prop...

Sales at Kathmandu owner KMD Brands slumped by 11 percent, with all three of its brands feeling the effect of weak consumer confidence in its latest financial year. The company had a statutory net profit after tax decline of $48.3 million for FY24, including a one-off non-cash impairment on the goodwill of its shoe brand Oboz of $40.3 million. Milford Asset Management's Sam Trethewey says investor...

Things are looking on the up for the dairy sector. Fonterra is returning a total dividend of 55 cents a share for the past financial year, off the back of a strong $1.1 billion net profit. It's also raising its forecast milk payout midpoint this season, from $8.50 to $9.00. CEO Miles Hurrell says demand from China's picking up, and data received overnight suggests that trend is continuing. LISTEN...

A PWC tax partner says discussions around a Capital Gains Tax will continue, as the country grapples with raising enough revenue. ANZ head Antonia Watson has told RNZ the time has come for a Capital Gains Tax. Sandy Lau says it'll likely be in the mix of options officials consider in long-term planning for New Zealand's tax system. "I don't think having a Capital Gains Tax is going to be the silve...

The Australian Reserve Bank has held the cash rate at 4.35 percent after its latest board meeting, citing concerns about inflation. This  seventh consecutive hold was widely tipped by economists - and they haven't ruled out additional increases either. HSBC chief economist Paul Bloxham outlines his predictions for when the economy will turn around and give homeowners some reprieve. LISTEN ABOVE Se...

Fonterra's annual financial results are due out on Wednesday morning.  Experts are wondering if there will be an upside in the forecast milk price of $7.80 for the 23/24 season - and they've debated the possibility of a higher-than-expected annual dividend. The Country's Jamie Mackay explains further. LISTEN ABOVE See omnystudio.com/listener for privacy information.

The popularity of working remotely has continued to surge among Kiwi employees - prompting some new directions from the Government. Prime Minister Chris Luxon has ordered Wellington-based Government departments to call their staff back into the office to boost performance and keep local businesses going. Infometrics economist Gareth Kiernan unpacks the latest stats - and wonders if the Government'...

KiwiSaver investments have broken the $100 billion mark. The Financial Markets Authority's report for the year to March 31st reveals funds reached $111.8 billion - jumping 19 percent from the previous year. Member contributions have risen to $11.2 billion and returns are strong at $13.1 billion. Financial Markets Authority director John Horner says this shows numbers are bouncing back following a...

New Zealand exported a record $3.1 billion worth of kiwifruit in the year to August, a 20 percent lift on the previous season. The figure was largely made up of gold kiwifruit, jumping 24 percent on the previous year to a value of $2.4 billion. Zespri Head of Global Public Affairs Michael Fox says this is great news for growers and businesses. LISTEN ABOVE See omnystudio.com/listener for privacy i...

Fletcher Building is looking to put its problems in the past, as it aims to raise an extra $700 million. The construction giant plans to issue $292 million in new shares for investors, to cut into its $1.8 billion debt. Fletcher Building has announced a group net loss of $227 million last month. Harbour Asset Management's Shane Solly says this is part of the company's bid to reduce additional loss...

Working from home is not an entitlement, it's an agreement. That's the Prime Minister's message to public servants today, claiming routines begun during Covid - now risk undermining performance. From now on, it'll only be agreed when Working from Home doesn't compromise agency objectives. ZB senior political correspondent Barry Soper says more data is needed regarding the benefits and drawbacks of...

Travellers and companions with time to spare will have opportunity to explore the new shopping mall opening right by Auckland Airport this week. The new $200-million-plus premium outlet centre Mānawa Bay opened on Thursday, with launch celebrations running from September 19-22. BloggerAtLarge writer Megan Singleton says this might seem like an unusual spot to set up a mall - but it gives people st...

There's hope a new-look Resource Management Act will make building easier for Kiwis.  Minister Chris Bishop's revealed two laws will replace the old system - one to manage environmental effects arising from activities, and another to enable urban development and infrastructure. NZ Herald deputy political editor Thomas Coughlan says the Government's moved quickly with these proposed changes - but w...

The US Federal Reserve surprised economists with its first interest rate cut in four years. Rates have gone down by 0.5 percent to about 4.8 percent - a significant shift after two years of high rates designed to tame inflation. Fisher Funds expert Sam Dickie says the markets responded well to this move after pricing in potential cuts.  LISTEN ABOVE See omnystudio.com/listener for privacy informat...

Experts say today's GDP figures paint a dire picture of our economy - and it's unlikely things will recover right away. New data shows GDP dropped 0.2 percent in the second quarter of 2024. NZ Herald business editor at large Liam Dann explains why the economy is unlikely to recover in the coming months. LISTEN ABOVE See omnystudio.com/listener for privacy information.

One expert says today's GDP figures paint a bleak picture of the economy - but there's light at the end of the tunnel. Stats NZ revealed this morning a 0.2 percent contraction for the three months to June, following 0.1 percent growth in the March quarter. Kiwibank economist Jarrod Kerr says it's likely the economy won't start growing again until late 2025. "The Reserve Bank's put a stake in the g...

Australia's national unemployment rate held steady at 4.2 percent in August. The number of employed people grew by 47,500, and the number of unemployed people declined by 10,500, according to reports. Australian correspondent Murray Olds says this will encourage the Reserve Bank to hold off on cutting interest rates when they next meet. LISTEN ABOVE See omnystudio.com/listener for privacy informat...

New reports confirm at least 68 percent of small and medium Kiwi businesses currently have no plans to use AI. Data from NZIER's Quarterly Survey of Business Opinion says many of these businesses cited a lack of understanding and perceived absence of value as the barriers to AI adoption. Spark Head of Data Matt Bain says the required training to properly use AI has put plenty of companies off.  LI...

Synlait's two biggest shareholders have brought it back from the brink. Shareholders today approved a $218 million capital injection from Bright Dairy and A2 Milk. NZ Shareholders Association CEO Oliver Mander says some shareholders were reluctant ahead of this vote - but plenty were on board. LISTEN ABOVE See omnystudio.com/listener for privacy information.

Consumer confidence has picked up in recent months - but there's still concerns about the future from some. The Westpac McDermott Miller Consumer Confidence survey for the September quarter rose 9 points to 90.8 points. Westpac senior economist says households will be in a better mood as interest rates come down for 2025 - but it'll take a while before Kiwis see the increase in their back pockets....

There's concerns about how the closure of a South Auckland paper mill will affect kerbside recycling. Oji Fibre Solutions will shut up just a week before Christmas - with the loss of 75 jobs. It's the latest manufacturing firm challenged by high electricity costs, following Winstone Pulp International closing two mills. Auckland Council waste solutions general manager Parul Sood says paper and car...

The soon-to-be-released GDP figures for Q2 will give experts an outline of the state of the economy. Economists predict the economy will have contracted again, as interest rates took their toll on consumer spending. Infometrics Principal Economist Brad Olsen outlines his picks for the quarter. LISTEN ABOVE   See omnystudio.com/listener for privacy information.

New research claims the costs of adding improved insulation onto Kiwi homes is far lower than initially reported.  Earlier in the year, Minister Chris Penk wanted to roll back insulation standards, citing reports of overheating issues and standards adding extra costs to new homes. New Zealand Certified Builders Chief Executive Malcolm Fleming says the cost of improved insulation for Kiwi homes is...

A probate court in Nevada has begun reviewing evidence to determine who gets to control Rupert Murdoch's media empire after his death. Evidentiary hearings in the case are scheduled to run until next week - with the court keeping the hearings closed to the public and the media. Australian correspondent Murray Olds says Rupert aims to ensure control of the businesses is kept in the hands of his old...