Best of Business

Kiwis are leaving New Zealand at record highs - but net migration is still up. For June this year net migration rose to 86,000, the largest it has been in three years. The increase is down to a gain of 121,600 non-New Zealand citizens which was offset by a loss of 34,800 New Zealand citizens. Massey University Sociologist and Immigration specialist Paul Spoonley joined Mike Hosking to discuss. LIS...

New Zealand's economy has managed to gain momentum over the past three months, despite pressures. The Infometrics economic monitor says there was a 1.4 percent rise in economic activity in the June quarter, compared to the year before. That's despite a technical recession and tough interest rate increases. Principal Economist Brad Olsen says there are other numbers rolling in that look good. LISTE...

Clarification has come as Labour's new policy to ditch GST from fruits and veggies could be causing a headache for consumers. It's vying to cut the 15 percent sales tax from fresh and frozen fruits and vegetables, if it governs at the next election. Hipkins was asked to front up on the finer details of the plan; whether garlic or processed frozen veggie mixes would get a tax cut. The Prime Ministe...

The tourism sector is hoping it will be back to business as usual. The final Covid restrictions, including the seven day isolation period and mask wearing in health settings, were scrapped by the Government as of midnight last night. Tourism Export Council Chief Executive Lynda Keene told Mike Hosking they've been lobbying for this since last year. She says it's a huge relief to be able to get bac...

More Kiwis are starting new lives overseas despite migrants arriving in droves. In the year to June, annual net migration rose to more than 86,000. But, the loss was nearly 35,000 citizens - the largest in a decade. ANZ Chief Economist Sharon Zollner told Kate Hawkesby we're losing New Zealanders to Australia because it's seen as a low-risk  option. She says changes to the citizenship and wage lev...

The scrapping of Covid restrictions couldn't have come soon enough for the hospitality industry. All remaining restrictions were dropped as of midnight last night, including the seven day isolation period. Hospitality New Zealand Chief Executive Steve Armitage told Kate Hawkesby they're surprised it's taken as long as it has, but are keen to move on. He says we need to trust people to manage their...

The Government has announced a raft of tax policies designed to address the cost of living crisis ahead of the election. Hipkins has announced a boost to the In-Work Tax Credit, which will benefit about 160,000 families. The GST on fruit and vegetables will be scrapped, a cut to take effect come April 2024. NZME business commentator Fran O'Sullivan says there's room for other parties to introduce...

Confusion from some smaller supermarket outlets, as the Government announces an election policy to remove GST on fresh and frozen produce. It says it would save the average household $20 a month, starting next April. Supie founder Sarah Balle says it'll add administration costs throughout the supply chain - which will reduce any savings. "To not just the fruit and vegetable growers themselves, but...

Our banks are making some big profits - and they are the next organization in the Commerce Commission's headlights. With a new preliminary report from the Commerce Commission highlighting the high profit of New Zealand banks compared to those overseas, the watchdog is launching an investigation. Along with the high profit, it will look at how easy it is for people to change banks and how easy it i...

The future of insurance seems to be a bit murky, with insurance costs only heading up, meaning more and more people are just not able to afford it. Australian insurer Suncorp's New Zealand full-year profit fell 30 percent as claims from the floods and cyclone added to rising reinsurance costs and inflation. Large reinsurance companies have changed their view of how risky New Zealand is, which inev...

China's descent into deflation paired with rising prices in New Zealand could spell trouble. Consumer prices in China fell for the first time in over two years, which concerns other economies battling the impact of inflation.  NZ Herald business editor at large Liam Dann says New Zealand exports plenty of products to China- and their economic decline creates risks. LISTEN ABOVE See omnystudio.com/...

An Auckland bottle store has been shut down after a group of neighbours complained it hadn't lived up to its promise of being boutique. The Sandringham store, Liquids, went to renew its licence and extend its opening hours- but instead had both rejected. Operations Manager Jithin Chittibomma says they're appealing the decision. "We have not broken a single law, we have not broken a single conditio...

A not-for-profit Kiwisaver provider says it's tough competing in New Zealand's banking market. The Commerce Commission has today revealed the nation's banks are more profitable than overseas counterparts. It's just released an initial review of those profits and plans to investigate whether a lack of competition is the problem. Simplicity co-founder Sam Stubbs says most other OECD countries have o...

Am I changing my mind on banks? I have defended banks. I have defended them when Adrian Orr was wandering around talking about stress tests and making them put aside more money to cover a rainy day and catastrophe. This, you might remember, against a track record of plenty of profit and success. We have not seen the issues some have seen offshore. Banks in this part of the world have been wonderfu...

Yesterday's news that another of our major banks has made another record profit, just about had me falling off my financially unstable rocking horse. ASB have reported another record annual profit in the same week that the TSB have said they'll be closing seven of their 25 branches, even though they are rated highly in customer service and satisfaction surveys. The ASB is our third biggest bank, a...

A new report into the rental market has found while people usually think interest rate changes, tax changes, and inflation get passed through into rents, there is very little evidence that shows this to be true. The findings show rental inflations is driven by wage inflation and supply and demand of houses. New Zealand Property Investors' Federation president Sue Harrison joined the Mike Hosking B...

China's economy has fallen into deflation as the nation continues to struggle post-Covid. Their consumer price index fell 0.3 percent year on year in July. Infometrics Principal Economist Brad Olsen joined Roman Travers to discuss what the trickle down effect on New Zealand as a large trading partner may be. LISTEN ABOVE See omnystudio.com/listener for privacy information.

The conversion of sheep and beef farms into carbon farms is still on the rise up. In 2011, 63,000ha  of sheep and beef land was purchased for forestry, 11,000ha higher than first thought. In 2022, uncertainty over policy changes led to a decrease, but Beef and Lamb believe this figure is likely to increase this year due to the backlog of applications sitting with the overseas investment office. Be...

McDonald's dynamic pricing on its app seems to show signs of a digital vs analogue conflict. Users have taken to social networking site Reddit, complaining regular users are being charged more than casual users. McDonald's says these price differences will encourage people to use the app more, bringing more long-term benefits. This combo differed in price by $3 on the same day in the same location...

There is an expectation McDonald's will address charging loyal app users higher prices. Users have taken to complain on social networking site Reddit, after pointing out a $3 difference between what app users and casual customers are charged. McDonald's says the prices may be different to entice some customers to return to the app. But Massey University marketing professor Bodo Lang told Roman Tra...

The Government's new partnership with BlackRock Capital is set to fast-track the nation's transition to renewable energy. BlackRock's investment fund is set to boost renewable solar, wind and green hydrogen energy infrastructure to eventually produce 100 percent renewable electricity. Milford Asset Management analyst Deborah Lambie warns New Zealand's power grid is set to face more challenge and c...

The Government have ditched plans to implement tougher regulations on Buy Now, Pay Later providers. They had initially proposed requiring affordability tests on purchases above $600 to ensure users could manage taking on debt, but have since ruled it 'too onerous'. NZ Herald Wellington business editor Jenee Tibshraeny says the Government may have been spooked by the fallout from the CCCFA changes,...

ASB Bank have posted record annual profits, but the signs of an economic slowdown impacted their earnings. The bank reported a net profit for the year ended June of $1.56 billion, up 6 percent on the year before. ASB CEO Vittoria Short says the bank has deployed nearly $1 billion worth of capital into New Zealand marketplace, impacting their total capital. "The more lending we do, the more deposit...

For all the people ‘hopping across the Tasman’ at the moment I can tell you one thing - it’s not a hop.   It used to be a short haul quick trip - painless. But these days it seems to be less painless and more painful. I’m not sure who’s more at fault - Auckland airport or Air New Zealand, or both. Of the three times I’ve crossed the Tasman in the last month; I’ve been held up on the tarmac or dela...

The Government's climate deal with a major global fund manager is being described as 'perplexing'. BlackRock Capital has launched a $2 billion dollar climate fund to help New Zealand achieve 100 percent renewable electricity. It would invest in solar, wind and green hydrogen infrastructure. But JMI Wealth Director Andrew Kelleher told Mike Hosking the reason for the announcement is puzzling, as th...