Best of Business

More local councils appear to be drawn towards attempting asset sales. The Bay of Plenty Regional Council has begun the process of selling a chunk of its majority share in the Port of Tauranga.  Auckland, Christchurch and Wellington are also investigating potential asset sales. BusinessDesk managing editor Pattrick Smellie explains the benefits and drawbacks of this process. LISTEN ABOVE See omnys...

Former politician and Reserve Bank Governor Don Brash has issued a warning about the second pillar of AUKUS. US lawmakers have struck a deal on the AUKUS military pact - with legislation approving the sale of three Virginia-Class vessels expected to soon be made public NZME business commentator Fran O'Sullivan noted that his concerns reflected previous sentiments that the US held too much influenc...

Emerging AI company Being AI is set to become the first artificial intelligence-based business to appear on the NZX. Listed investors Ascension Capital have today entered into a conditional agreement to acquire several businesses, with a vote set for March. Co-founder David McDonald says the venture aims to help other companies make sense of the AI space. "We've got three branches, if you will. Th...

The Prime Minister says scrapping Fair Pay Agreements and bringing in 90 day trials means more workers can be hired. FPAs - which triggers collective bargaining if it's called for by 10 percent of a workforce - will be scrapped by Christmas. Meanwhile, a new bill will mean every business will be allowed to dismiss a worker in their first 90 days. ZB political editor Jason Walls says this update is...

Fonterra has upgraded its milk price forecast and raised their full-year earnings forecast following an 85 percent lift in their first-quarter profit. The forecast farmgate milk price midpoint for the 2023/24 season is up 25 cents to $7.50 per kgMS, and the forecast range has moved to $7.00-$8.00 per kgMS. The Country's Jamie Mackay says these predictions were boosted by a strong GDT result. LISTE...

A big gap has opened up between the market and the Reserve Bank of New Zealand’s views of where interest rates are heading. The two-year swap rate - which can have a bearing on home mortgage rates - is now sitting on 5.21 percent, down from 5.78 percent earlier this year. This goes against last week's hawkish vision regarding higher rates. NZ Herald business editor at large Liam Dann explains why...

Kiwi households will had to find an extra $70 per week to cover their living costs, according to ASB economists. It's a smaller increase than the $115 a week lift in 2023- and and is expected to be below the increase in incomes. ASB senior economist Mark Smith says these estimates are influenced by several key factors. "Living costs really reflect what's happening with inflation, that's probably t...

Good news for Kiwi motorists, with a pre-Christmas fall in petrol prices. Brent Crude has fallen from $81 US dollars on Friday to $77 this morning. The average price for unleaded 91 petrol has already fallen about five percent since the start of the month. Infometrics principal economist Brad Olsen explains this sudden shift. LISTEN ABOVE   See omnystudio.com/listener for privacy information.

The fourth consecutive carbon auction of 2023 failed to clear, leaving millions of units unsold. This means the Government missed out on anther $900 million worth of revenue. Milford Asset Management's Frances Sweetman says all the units built up from this year will be cancelled- but predicts an improved balance for 2024. LISTEN ABOVE See omnystudio.com/listener for privacy information.

The Reserve Bank is downplaying the impact of new mortgage lending rules they might impose on banks. It's given the banks until April 2024 to prepare for debt-to-income ratio restrictions to be imposed- but has indicated new changes will be too restrictive. NZ Herald Wellington business editor Jenee Tibshraeny says DTI restrictions are unlikely to have too much of an impact on prospective borrower...

Kiwi lamb prices are expected to remain under pressure, as Australia's output floods through overseas markets. Over the past few years, Australian farmers have been able to build up their flocks and take advantage of favourable conditions. Sheep numbers across the Tasman are at the highest they've been since 2007. The Country's Jamie Mackay explains the additional factors impacting the current mar...

A recent real estate survey has revealed fewer agents have observed a notable increase in house prices. Of the 324 respondents, a net 28 percent of agents said prices were rising in their locations in November- down from 34 percent in October. Independent economist Tony Alexander says this indicates a lack of 'frenzy' in the current housing market. "I get the feeling for over summer, a lot of peop...

There's growing evidence Kiwi supermarkets may not be drawing in as much profit as expected. Woolworths New Zealand’s profits have dropped 52 percent in the last full year- down to $76 million from over $158 million. First Retail managing director Chris Wilkinson says this is proof customers aren't being fleeced at the checkout. "There is a limit to what consumers will pay. Retailers have to try a...

Kiwi company Goodair has developed a drug-free solution to fighting nasal congestion. Nosebuds promise to enhance diaphragmatic nasal breathing in order to reduce the impact of pressure and drainage while providing pain relief. Inventor and designer Dr David White says the buds emit a humming sound that applies mechanical stress to the affected area. "A third of the population suffers from nasal c...

The Workplace Relations Minister says she's disappointed unions are mis-characterising plans on Fair Pay Agreements. Elements of the Government's moves to repeal the policy were leaked to media last night. CTU President Richard Wagstaff subsequently told press he was upset unions had not been consulted about the plans. But Brooke Van Velden says his comments are not true. "Look, I was sworn into G...

The Reserve Bank of Australia has opted to keep the OCR on hold for the time being. The cash rate is set to stay at 4.35 percent, with economists citing moderating inflation as the main factor behind the decision. Australian correspondent Murray Olds says inflation is reducing at a positive pace- but time will tell what the market looks like in January. LISTEN ABOVE See omnystudio.com/listener for...

Finance Minister Nicola Willis has expressed concern with the scale of financial challenges left behind by the former Government, which she is still uncovering. She's accused her predecessors of leaving the books in a much worse state than they appeared in the pre-election unveil. NZME business commentator Fran O'Sullivan says a lot of Government projects were funded on a short-term basis- and Wil...

Experts claim New Zealand's ongoing failure to deal with bad debt is costing the country over $2 billion per year. Debt management firm DebtManagers says a human-centred and customer-led approach to debt will reduce the issue- as the current one-size-fits all approach isn't helpful. Executive director Charles Whiting says adding interest and collection fees is counter-intuitive to getting debt rep...

Auckland ratepayers will be saddled with a bill of roughly $220 million each year to run the City Rail Link - once it opens. Chief executive Sean Sweeney says the project is 80 percent complete, but there's no guarantee the November 2025 deadline will be met. Auckland Business Chamber CEO Simon Bridges says there's no excuse for these extended cost blowouts and delays. "It's created a huge amount...

Charlie Munger, investment guru and sidekick in Warren Buffett's Berkshire Hathaway project, passed this week. Munger served as Buffett’s sounding board on investments and business decisions and led Berkshire as vice-chairman for decades. Sam Dickie from Fisher Funds says Munger was an instrumental part of Berkshire's success alongside Buffett. LISTEN ABOVE See omnystudio.com/listener for privacy...

There's renewed optimism from New Zealand's business leaders about the state of the economy. In the latest ANZ Business Outlook survey, confidence increased by 8 points to +31 in the results for November. NZ Herald business editor at large Liam Dann explains this boost in optimism. LISTEN ABOVE See omnystudio.com/listener for privacy information.

Genesis Energy is making moves to meet its promise of producing 95 percent renewable energy by 2035. The company plans to use profits from Kupe gas field to support a $1.1 billion programme to build solar and wind generation and grid-scale battery storage. Chief executive Malcolm Johns says it's likely Genesis will meet their target within the coming years. "We're not starting from a cold start, w...

Consumer NZ is accusing Z Energy of profiting from misleading sustainability messaging.  The organisation teamed up with the Environmental Law Initiative and Lawyers for Climate Action New Zealand Inc to seek a High Court declaration for Z's breaches of the Fair Trading Act. Chief executive Jon Duffy says the evidence contradicts Z Energy's climate-focused public messaging.  "We don't think that s...

The incoming Government has agreed to disestablish the Productivity Commission, as ACT requested. Staff are disappointed, yet unsurprised, as many were concerned the agency had become too politicised. NZ Herald Wellington business editor Jenee Tibshraeny says there were already tensions between chair Ganesh Nana and former staffers. LISTEN ABOVE See omnystudio.com/listener for privacy information.

Retirement village operator Ryman Healthcare has posted a lower-than-expected half-year profit. The company had earned $186 million after tax for the six months to September, a 4 percent decrease from 2022. Chief executive Richard Umbers says this loss is driven by a more subdued housing market.  "The housing market is under pressure. That impacts our ability to sell, which inevitably has a flow-t...