Best of Business

New Zealand's economy is in the green and our technical recession is officially over. Stats NZ says the GDP rose 0.9 percent in the June quarter and 3.2 percent for the year to June. It also revised the figure for the March 2023 quarter to 0 percent - up from a 0.1 percent drop. NZ Herald business editor at large Liam Dann says households are still feeling high interest rates rampant inflation- an...

Fonterra is reporting profit after tax of $1.6 billion dollars, up 170 percent on last year. It's reporting earnings of 95 cents per share- up from 36 cents per share. The full year dividend will be 50 cents per share, including an interim dividend of 10 cents per share. Fonterra chief executive Miles Hurrell says this result is good for New Zealand's dairy farmers, who have been doing it tough al...

It's the end of an era, as a Wellington cultural icon is set to go up for sale. The Green Parrot café, which first opened in 1926, has hosted celebrities, politicians and travellers for the last 97 years. It's on the market - with an asking price of $200,000. Co-owner Chris Sakoufakis says his father, Kosta Sakoufakis, is ready to retire- and he hopes someone else will take it over to the hundred-...

Some good economic news, for now. Stats NZ figures show GDP increased 0.9 percent in the three months to June, and 3.2 percent in the year to June. The figure for the March quarter has been revised to 0 percent - up from a 0.1 percent drop. But Kiwibank Chief Economist Jarrod Kerr says they're still predicting a double-dip recession. "We think the second half of this year will be quite painful for...

An increasing number of people are dipping into their retirement savings to meet soaring living costs. KiwiSaver members made 18,291 withdrawals worth an average of $7921 over the year, according to new data. NZ Herald Wellington business editor Jenee Tibshraeny explains why this is happening. LISTEN ABOVE See omnystudio.com/listener for privacy information.

Elon Musk has hinted that Twitter, now X, could soon go behind a paywall. Currently, the platform only charges users for the service X Premium, which offers benefits such as a verification badge. US correspondent Dan Mitchinson says Elon believes the fee would keep bots and artificial accounts away, an issue that has plagued the platform.  LISTEN ABOVE See omnystudio.com/listener for privacy infor...

A leading economist believes New Zealand's economy is at the "bottom edge" when compared to other developed countries. This follows the Government laying out their Pre-Election Economic and Fiscal Update and revealing a surplus has been pushed out an extra year amid a lower tax take. HSBC's Paul Bloxham says inflation isn't coming down fast enough, when compared to other countries. LISTEN ABOVE Se...

One City Councillor reckons the Wellington mayor's business delegation could've been cheaper. Tory Whanau and several council officials are visiting China, Japan, and South Korea to promote Wellington as a city to live and do business. It comes at a cost of around $50,000. Councillor Ray Chung says not everyone who's on the trip needed to be there. "What reason would a wellness manager have to go...

It's been rumoured in business circles that Luxon is scoping top Kiwi figures as part of his potential administration.  Fraser Whineray and Andrew Grant have reportedly been courted by National's leader ahead of the election. NZME business commentator Fran O'Sullivan says the pair have declined so far, but Luxon has expressed interest in partnering with Whineray and Grant. LISTEN ABOVE See omnystu...

A2 Milk has cancelled the exclusive manufacturing supply arrangement it has with infant formula maker Synlait Milk, citing a decline in delivery standards. Synlait's shares fell 10 percent following the cancellation of the deal. Dairy Insights Consultant Stuart Davison says this isn't good for the company, but they will be able to bounce back quickly. "They're definitely in trouble- but let's be c...

It's now cheaper to rent a home in New Zealand than to buy - at least in the short-term. BNZ has revealed servicing a mortgage takes about 50 percent of the average household income. Chief economist Mike Jones says that's more than double the cost of renting, at about 24 percent. But he says that doesn't mean renting is the most cost-effective over the long-haul - because no one knows what house p...

Asia business correspondent Peter Lewis spoke to Heather du Plessis-Allan on whether China's economy may slowly be turning around and if North Korea has finally agreed to supply Russia with weapons. LISTEN ABOVE See omnystudio.com/listener for privacy information.

The European Central Bank has raised interest rates for the 10th meeting in a row to counter stubborn inflation but signalled it is likely done tightening policy. The central bank for the 20 countries that use the euro lifted its deposit rate to 4.0 per cent from 3.75 per cent, taking it to an all-time-high. UK correspondent Gavin Grey joins Heather du Plessis-Allan to talk about it. LISTEN ABOVE...

I don’t think that banks should have to refund people who've lost money in scams. But come on... they really need to step it up on the security stuff. The banks announced today that they are going to take a look at doing something pretty basic. Which is to make sure that when you think you are sending money to someone and you type … a... I don’t know…let’s say the Labour Party into the payee field...

Initial public offerings, or IPOs, have been regarded as a crucial, yet risky source of funding for companies around the world. After a weak 2022 for IPO investments, demand is starting to pick up again, with four prominent companies - Arm, Birkenstock, Instacart, and Klaviyo- selling shares to the public. Fisher Funds senior portfolio manager explains the rise in IPOs- and how some Kiwi businesse...

Economists are braced for a small bounce-back ahead of next week's GDP numbers. The last set of GDP figures released in June 2023 put New Zealand in a recession. NZ Herald business editor at large Liam Dann says China's downturn could still drag New Zealand down further into recession. LISTEN ABOVE See omnystudio.com/listener for privacy information.

Three economists have teamed up to scrutinise part of National's tax plan. The party's proposed ending the ban on foreign buyers - for homes worth more than $2 million- and taxing them 15 percent. It expects foreigners will buy 1700 houses valued on average at around $2.9 million. But economist Michael Reddell says it'll be more like 700 in that price range. "That $2 million threshold really does...

The economic outlook and Government books were in better shape than predicted, but Treasury has issued a warning following PREFU. According to one expert, Treasury claimed Government spending had exceeded the signalled Budget allowance in recent times- creating a grim outlook for the future. Infometrics Principal Economist Brad Olsen warned further decisions around additional spending will have to...

Returns on low-risk managed funds, including Kiwisaver's Conservative and Moderate funds have been underperforming in recent years. Kiwisaver's Conservative fund has delivered users 0.8 per annum over the last 5 years, as the financial climate gets more turbulent. Milford Asset Management's Mark Riggall explains the dip in returns for investors. LISTEN ABOVE See omnystudio.com/listener for privacy...

Higher-than-expected net migration is promised to prop up economic growth and fuel the property market- but Treasury has other ideas. Treasury doesn't believe the influx of new people will improve the nation's productivity- rather, it believes the demand generated will outweigh the boost to the labour market and keep inflation high. NZ Herald Wellington business editor Jenee Tibshraeny explores po...

Former Qantas staff will be chasing compensation, after Australia's High Court has upheld a decision against the airline. It's agreed the airline illegally sacked more than 1700 workers during Covid. It breached the Fair Work Act by outsourcing baggage handlers, cleaners and ground staff. The Australian Transport Workers' Union's Nick McIntosh says the next step is going back to the federal court....

The outgoing New Zealand Superannuation Fund CEO has slammed the near-$10 billion tax bill as 'nonsensical'. Matt Whineray believes the Superannuation Fund should have tax immunity status, according to an exit interview.  NZME business commentator Fran O'Sullivan says the next Government will need to make choices about the state of the fund. LISTEN ABOVE See omnystudio.com/listener for privacy inf...

A new international player is determined to snap up Fonterra dairy farmers, as competition intensifies. Fonterra farmers have put up signs featuring the slogan 'A proud Fonterra farmer' in response to Singapore-based OFI (Olam Food Ingredients) setting up in Waikato. Fonterra farm source group director Anne Douglas says Fonterra sets the benchmark for dairy prices, and OFI will respond accordingly...

Calls for banks to drop mortgage rates- while they bring in record profits. They are scraping off an extra $2.2-billion dollars annually, from a 17 percent rise in lending profits caused by rising interest rates. Squirrel Chief Executive David Cunningham says he believes the slow housing market pushed the margin this high. He says shareholders want steady profits, and rising share-prices regardles...

A new approach to paying for private healthcare has started in New Zealand. Local business Fettle gives people the ability to contribute to an investment fund to eventually pay for private healthcare. Fettle founder and CEO Dr Colin Hutchinson joined Heather du Plessis-Allan. LISTEN ABOVE See omnystudio.com/listener for privacy information.