Best of Business

The US quarterly results season is well underway, with 60 percent of companies reporting their results. The marker has been bullish overall- but there are some clear winners and losers. Fisher Funds senior portfolio manager Sam Dickie says big tech is still dominating, but Tesla has been struggling. LISTEN ABOVE   See omnystudio.com/listener for privacy information.

There's speculation higher farmgate milk prices are on the way following a strong GDT auction result. All of Fonterra’s main reference products rallied strongly at this week's auction, driven by demand from the Middle East and improved interest from China. The Country's Jamie Mackay says customers should get their dairy products quickly, before the change kicks in. LISTEN ABOVE See omnystudio.com/...

Could the incoming Year of the Dragon bring more luck for China's struggling economy? Ahead of Chinese New Year, the nation's economy is still feeling the negative impact left over from the Covid-19 pandemic. Chinese GDP grew by 5.2 percent last year, according to official statistics- a reflection that confidence hasn't yet returned. NZ Herald business editor at large Liam Dann explains what this...

A human element will be key factor during Foodstuffs North Island's facial recognition technology trial. Up to 25 New World and Pak'nSave stores will have the technology trialled over the next six months, to potentially reduce retail crime. The technology analyses facial features and matches them against the store's record of offenders and accomplices. Foodstuffs North Island general counsel, Juli...

Increased unemployment figures are a sign of a stronger overall economy, claims one expert. Stats NZ figures show unemployment has crept up to 4 percent- the highest level since June 2021. Infometrics Principal Economist Brad Olsen says the number of employed people in the country has also increased over this quarter. "When we looked through the numbers, we saw that the labour force in December wa...

Fletcher Building can expect a significant financial hit, after revealing they put another $180 million aside for repairs. Costs have blown out on two big projects- Auckland's International Convention Centre and the Wellington International Airport Car Park. Milford Asset Management's Jeremy Hutton says this cost blowout is putting a strain on Fletcher's balance. LISTEN ABOVE See omnystudio.com/li...

The Reserve Bank of New Zealand has requested more money from the Government to cover the cost of their vault refurbishments. NZ Herald Wellington business editor Jenee Tibshraeny explains that these underground vaults are quite old and need 'significant' repair. "The Reserve Bank has warned the new Finance Minister, Nicola Willis, that it's going to need quite a bit of money to upgrade the vaults...

Simplicity are calling for Fletcher Building's board and management to be scrutinised further. Fletcher's stock has dropped following a multi-million dollar cost blowout on two big projects in Auckland and Wellington. Managing director Sam Stubbs says they called for the chair's resignation two years ago- and action hasn't been taken. "In those two years, the directors paid themselves $4 million i...

There's concerns the unemployment rate will rise more. Stats NZ released its labour market update for the December quarter today, with unemployment up to four percent. 3000 more people were unemployed than in the previous quarter, hitting 122,000. Employers and Manufacturers Association Advocacy head, Alan McDonald, says many members called them about restructuring and redundancies in late 2023. "...

Fletcher Building has delivered grim news of a $180 million dollar hit to accounts on two big projects. Costs for Auckland's International Convention Centre are up another $165 million, and a Wellington car park's tally has risen $15 million. The company's half-year results are due out next Wednesday. Jarden's Grant Swanepoel says this is the fourth concerning financial 'surprise' from Fletcher in...

KiwiSaver providers are turning away from controversial companies, instead gravitating towards ethical ones. Data from Mindful Money shows several of the largest KiwiSaver providers have reduced their investment in companies with a harmful output. In the six months to September last year, there's been a 72 percent drop in investment in tobacco companies, a 35 percent reduction in weapons, and a 29...

The streaming wars have kicked up a notch, as sports have become the newest area for companies to stake their claims. Disney has struck an exclusive deal with the NFL, and Netflix has formed a partnership with the WWE. Sam Dickie with Fisher Funds says this is just the beginning, as more companies will look towards streaming their sport-based output. "It's going to be primarily on these streaming...

The minimum wage is set to go up by 45 cents to $23.15, starting April 1. This two percent increase will affect between 80,000 and 140,000 Kiwi workers. NZ Herald business editor at large Liam Dann says a reduced increase is the best circuit-breaker for the economy, as the fight to bring down inflation drags on. LISTEN ABOVE See omnystudio.com/listener for privacy information.

There's growing hope across the ditch that the RBA will cut interest rates soon. Australia's Official Cash Rate is currently at 4.35 percent, with reduced inflation data holding it in place. Australian correspondent Murray Olds says Australia's Reserve Bank meets next week- and there's a high chance they'll reel the OCR back. LISTEN ABOVE See omnystudio.com/listener for privacy information.

The Minister-in-charge says the Government is striking the right balance on lifting the minimum wage. It's rising two percent from April to $23.15 an hour from $22.70- affecting up to 145,000 workers. Workplace Relations Minister Brooke van Velden says it's about protecting the incomes of the lowest paid New Zealanders. "We're striking a balance between protecting the incomes of our lowest-paid wo...

Woolworths have recently launched their Everyday Rewards scheme set to replace Onecards. This development comes as consumer advocates have voiced concerns about the returns on loyalty programs, encouraging consumers to shop around for deals. Woolworths Director of Digital and Loyalty, Mark Wolfenden, disagrees, claiming Everyday Rewards is 'very generous'. "It's part of our commitment to offering...

Post-Brexit controls on food, plant and animal imports to Britain from the EU have recently come into force. Health certificates will now be required on goods ranging from produce, to meat, to even cut flowers. Industry experts warn these changes could create delays and push up costs- but some hope it will encourage UK farmers to be more competitive. UK correspondent Gavin Grey explains what these...

ANZ has released their latest Business Confidence survey, creating a complicated picture for the economy. Business confidence rose 4 points to +37 in January, while expected own activity fell 3 points to +26. Infometrics Principal Economist Brad Olsen says businesses are forecasting a clearer economic pathway following a tough couple of years- but we're not out of the woods yet. LISTEN ABOVE See o...

The Government has decided against scrapping a new regime aimed at preventing banks, insurers and non-bank deposit takers from mistreating customers. This Code of Conduct was established following a 2018 Royal Commission exposing questionable behaviour by Australian banks. NZ Herald Wellington business editor Jenee Tibshraeny explains why institutions were surprised by this 'inevitable' announceme...

The holidays have wound down and central banks are back in action- what can people expect for the new year? 2023 was dominated by rate hikes to curb rampant inflation generated by the Covid-19 pandemic, and now the focus has turned to the prospect of cuts. Milford Asset Management's Katlyn Parker says there's a risk the market is expecting too much too soon, as inflation is still sticky. LISTEN AB...

Air New Zealand has recently released a report designed to prove the company's economic significance to Aotearoa. The company claims it directly contributed $2.7 billion to New Zealand's economy- including $1.4 billion in wages. The report also states Air New Zealand facilitated as much as $26 billion in economic activity across tourism, exports and imports. Chief Corporate Affairs Officer Mat Bol...

The Reserve Bank has poured cold water over growing speculation for an early rates cut this year. In a webinar delivered to the public, RBNZ chief economist Paul Conway said non-tradeable inflation came in higher than predicted, at 5.9 percent. HSBC chief economist Paul Bloxham says it's likely the RBNZ won't cut the OCR until 2025, at the earliest. "The economy has slowed a lot and inflation is c...

One leading accountant and agri-business advisor fears the current downturn in the rural sector may be the worst recorded in recent memory. Pita Alexander says there's been 11 financial downcycles impacting the sector since 1948, but this one is the worst. The Country's Jamie Mackay says the dairy sector may have bottomed out- and the worst is yet to come for sheep farmers. LISTEN ABOVE See omnyst...

One expert is predicting James Shaw's next career move following his departure from the Greens. Shaw announced he'll step back as party co-leader- but stay on in Parliament for the first reading of his Right to a Sustainable Environment Bill. BusinessDesk managing editor Pattrick Smellie suspects James Shaw could eventually replace Rod Carr as Climate Change Commission chair. LISTEN ABOVE See omny...

Woolworths is slashing the value of its New Zealand supermarkets by $2.3 billion to $700 million in a 70 percent decrease. The company blames a 'weaker medium-term outlook' and higher interest rates for this decision. MonopolyWatch spokesperson Tex Edwards says this announcement is a PR stunt to push back against a wave of inquiries. "You publish bad news before the Commerce Commission and the boa...