Best of Business

A lot of investor attention on Wall Street - with Space X heading to market on Saturday. The debut of Elon Musk's rocket, satellite and data centre company will be one of the most-watched in years. A chunk of shares will be available in a company that up to now, was exclusive to Musk and a select group of rich private institutions. Sam Dickie from Fisher Funds explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

McDonalds is increasing the size of medium and large coffees for Super Gold cardholders. It had previously sold any size McCafe coffee, tea or hot chocolate for $3 but it has now increased the price for medium and large to $4 and $5, respectively. Massey University marketing professor Bodo Lang says it's likely there will be some upset people as a result of these changes. "If the costs have increased dramatically, then, you know, price increases are warranted. But there's some really interesting research, particularly from Europe, that shows that price increases are well beyond the cost increases." LISTEN ABOVESee omnystudio.com/listener for privacy information.

The cost of hiring the wrong person is racking up for employers, despite a large number of applicants. New Seek data estimates small and medium sized businesses lose more than $900 million a year from bad hires. Small Business NZ founder Phil Wicks told Francesca Rudkin the quality of applicants seems to be slowly declining. He says often in the trades, it's hard to find the right person, and yet the industry's under immense pressure to find people quickly. LISTEN ABOVE See omnystudio.com/listener for privacy information.

The High Court has ordered ASB Bank to pay $6.731 million for breaching anti-money laundering laws. The penalty is the largest ever imposed by a New Zealand court under the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act 2009. NZ Herald Wellington business editor Jenee Tibshraeny explained the case further - and whether it sets a precedent. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Experts are warning investors to brace for a 'choppy' market in the tech sector. Some of the US's leading chip companies have been getting some extra attention on them, as the market looks set to change. Milford Asset Management's Jeremy Hutton explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Tough economic conditions over the past six years have taken a toll on the survival rate of small and medium-sized businesses, but franchises appear to have fared better. International data supplied by the Franchise Association of New Zealand (FANZ) indicates about 75 to 85 percent of franchises were still operating after five years, compared with about half of independent small businesses. Franchise Association of New Zealand CEO Katrina King says business is tough for everyone in this climate, but some sectors have been able to hold on. "I think with franchising, because of the breadth of industry and because it is in every part of New Zealand - there's going to be resilience." LISTEN ABOVESee omnystudio.com/listener for privacy information.

New data shows Australian business confidence is on the up - but things are still gloomy across the Tasman. The survey from National Australia Bank showed its index ​of business conditions held at +3 in ​May, ending four months of losses. Confidence ⁠improved modestly to -14, from -23 in April. HSBC Chief Economist Paul Bloxham explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Amid the ongoing fuel crisis, Jetstar is celebrating a major milestone. The airline is celebrating 17 years of operating in New Zealand, and they see the nation as a solid growth market. Jetstar CEO Stephanie Tully says it's a big milestone, and the company's marked the occasion with a big sale. "It's important for us, and we get excited when we have big sales - and we always have a big birthday sale as well." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Apple's announced digital assistant, Siri, is getting an upgrade - expected later this year - to become Siri AI. The company is promising a better artificial intelligence experience for users. With the help of Google, Siri will remember past conversations, have a more conversational tone, and help across apps. BusinessDesk's Peter Griffin says Apple isn't trying to compete with the AI giants. "This is really to supercharge the features on an iPhone, or on your Mac with the Safari browser - making it more intelligent, maybe being able to talk to your photos app to select a number of photos." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Two new Woolworths stores have opened in the South Island, but you can't get the weekly shop done there. The educational facilities in Dunedin and Invercargill are giving young people with disabilities training for jobs in a supermarket environment, creating 'launchpads' for future employment. Front-Line Training chief operations officer Nadia Steedman says this will allow people to work in a space that suits their individual needs. "With that, we have a direct connection with the local Woolworths stores, where work experience will eventually be available - as well as putting them in the limelight, with the potential for them to become employed." LISTEN ABOVESee omnystudio.com/listener for privacy information.

New research paints a gloomier picture for business leaders. The latest 2degrees Shaping Business Report suggests optimism about post-pandemic recovery has fallen away. It says leaders are now shifting from recovery mode to simply playing the hand they've got. Chief Business Officer Andrew Fairgray told Heather du Plessis-Allan people were looking for a return to normalcy in the years since Covid, but with all the volatility, businesses are starting to realise they need to control their own outcomes. But he says there are still some signs of positivity and moving forward, just in the new normal. LISTEN ABOVE See omnystudio.com/listener for privacy information.

The US sharemarket took a hit last Friday, largely due to weakness in the information technology sector. The semiconductor sector was hit hard, and experts are unpacking the economic implications. Harbour Asset Management's Shane Solly explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Air New Zealand has indicated its long-running engine problems may have come to an end. Air New Zealand's chief has claimed the airline reached a breakthrough in Brazil this weekend after years of crippling engine issues. Aviation industry expert Grant Bradley explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

The Finance Minister is promising more detail is coming regarding a billion dollar pre-Budget allocation. The funding's been labelled 'secret spending' by Labour. Nicola Willis says this reflects the Government's provision for a potential capital to operating forecast change in transport spend - that can be subject to future decisions. "That is literally what it is, and we will be taking policy decisions on that over the next few weeks and months." LISTEN ABOVESee omnystudio.com/listener for privacy information.

A new report has found New Zealand renters are better off than a year ago. The Regional Rental Affordability Index found affordability improved in most of the country over the past 12 months, as rents ease and incomes rise. Property Investors Federation Advocacy Manager Matt Ball says it's not the same story in every region, but renting is definitely more affordable. "If you look at Auckland - rents have been flat in Auckland for a number of years now, so renters are in a much better position now than they have been in previous years." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Crimson founder Jamie Beaton is on a mission to find and inspire the next generation of entrepreneurs. In a joint venture with Icehouse, five high school students will be offered a fully funded scholarship to Crimson Global Academy and provided a yearlong immersive experience to pursue their entrepreneurial ambitions. Beaton says entrepreneurship is one of the most exciting careers out there, because it helps people be creative and create future jobs. "I want more young Kiwis able to do this, and I want them able to do it earlier in their lives. And through my work at Crimson, I've seen many entrepreneurs who are 20 years old, 24 years old in Silicon Valley, and I want New Zealand to be this kind of startup nation." LISTEN ABOVESee omnystudio.com/listener for privacy information.

This Sunday marks a historic milestone for McDonald's New Zealand, with the franchise turning 50. What began as a single restaurant in Porirua in 1976 has grown into a network of 177 restaurants, with thousands of employees and 53 local franchises. McDonald's managing director Kylie Freeland says McDonald's was initially focused on expanding out to bigger countries, but a convincing business case saw New Zealand being one of the first countries to get one. "By 1991, we had 50 restaurants and between 1991-97, we doubled that to 100 restaurants. Today, we have 177, but we've got another 6 opening this year." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Higher mortgage rates have given the Reserve Bank a 'bit of breathing space', its chief economist says. Paul Conway, one of the Reserve Bank committee members who voted to keep the OCR on hold last week, said the market is doing some of the work for the central bank. NZ Herald Wellington business editor Jenee Tibshraeny explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

The SpaceX IPO launch is set for later this month, and experts are speculating about what it could mean for the market. It reportedly plans to fix its IPO price at $135 per share to raise a record-setting $75 billion. Jeremy Hutton from Milford Asset Management explained the risks ahead of the launch. LISTEN ABOVESee omnystudio.com/listener for privacy information.

The Education Minister wants higher pay rates for tradies who work as unqualified teachers - but she has to persuade the unions first. The PPTA says schools are in need of more people to teach the trades, and outside educators should be fully qualified if they're to be paid the same as registered teachers. Te Pūkenga CEO Gus Gilmore says it's important to attract the best people to educate young Kiwis interested in going into the trades and it's important to match market demand. "These are very experienced people.. the skills that they have as trained professionals in their field should be rewarded accordingly." LISTEN ABOVESee omnystudio.com/listener for privacy information.

The hospitality squeeze continues, with a flurry of closures. Credit reporting agency Centrix says liquidations are up 49 percent year-on-year. Cafes, restaurants and takeaways made up the most of the 414 liquidations recorded in the past 12 months. Hospitality NZ CEO Kristy Phillips says the latest impacts are the cost of living and the fuel crisis. But she says businesses have taken many hits in recent times. "Liquidations now can be the result of years of hanging on and just trying to wait for those trading conditions to improve." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Anthropic confirmed it filed confidential plans for an initial public offering, setting it up for what's expected to be one of the most anticipated market debuts in years. Anthropic is one of three highly anticipated AI initial public offerings expected for this year, along with OpenAI and SpaceX - giving early investors a chance for huge paydays. Infometrics Principal Economist Brad Olsen says Anthropic's the first to get the paperwork through - and there's huge expectations riding on it. LISTEN ABOVESee omnystudio.com/listener for privacy information.

The New Zealand racing industry has plenty of reasons to celebrate the recent King's Birthday Honours, with three of its own recognised. David Ellis, Doug Alderslade and Dr Luk Chin were among the experts who received honours yesterday. The Country's Jamie Mackay explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

There's a view a merger by Heartland and TSB won't hand the big four banks a massive blow. Heartland Bank has struck a deal to buy TSB for $620 million, pending consultation and regulator approval. Massey University banking professor Claire Matthews says the combined bank will still be smaller than the big four, and Kiwibank. She says a lot of work's still needed to increase competition. "It's not necessarily going to open up a huge access to capital, which is what's really needed for them to grow, and to become truly competitive." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Patients could soon reap the benefits if digital-first Tend Healthcare acquires Green Cross Health's medical division, The Doctors. In July, it'll ask shareholders to approve the conditional sale and purchase agreement for a $270-million-dollar sale. Tend Chief Executive, Cecilia Robinson, says it's all about improving access to care - as they have in their current clinics. "We've significantly improved things like wait times - we've got examples of clinics that have gone from a month wait time down to five days." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Airlines are taking another hit from the ongoing conflict in the Middle East. Oil prices jumped 7% after an Iranian news agency announced Tehran has suspended the negotiations with the US. Contributing to the dwindling stocks of jet fuel is a new ban on exports by Russia, set to last until the end of November. Business Correspondent Vicky Pryce told Francesca Rudkin airlines are also beginning to be affected in terms of the value they have in the stock markets. LISTEN ABOVE See omnystudio.com/listener for privacy information.

Oil prices fell significantly throughout last week as discussions regarding an Iran deal continued to take place. Prices are down around 8 percent for the week with Brent crude around $91 a barrel. Westpac Chief Economist Kelly Eckhold says rumours regarding an imminent Hormuz opening agreement caused prices to drop on Friday, but things aren't fully stable. "Mediators had sent a proposal to Trump for an agreement and then noted on his Truth Social account that he was going to make what he called a 'final determination' on the Iran issue. He was in this meeting, but we weren't that lucky." LISTEN ABOVESee omnystudio.com/listener for privacy information.

It's been a breakthrough year for New Zealand's video game industry. The sector hit its $1 billion annual revenue target two years early, and it's on track to double that figure by the end of the decade. NZ Game Developers Association executive director Joy Keene says there are quite a few factors behind this. "We're a very creative country, obviously, we have some number 8 wire kind of thinking. And couple that with the Government support that we've been receiving over the last few years, that has super-charged what our game developers have been able to do." LISTEN ABOVE See omnystudio.com/listener for privacy information.

Global transport company Mainfreight's full-year net profit is down 8.5 percent on the year earlier, despite an improved performance in the second half of the year end in March. Despite this, the company's hopeful that things can turn around, despite the conflict in the Middle East. Mainfreight CEO Don Braid explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

A tax expert says it's good to draw a line under recent changes to charity rules. This year's Budget tweaks the Research and Development Tax Incentive, simplifies the fringe benefit tax, and expands the Foreign Investment Fund rules to all taxpayers. It also caps the tax credits that can be received on not-for-profit donations. Deloitte tax partner Robyn Walker says it's still very generous by international standards. She says you can still donate $100,000 and get a $33,333 tax credit - and only a small number of people donate above that. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Well, you would have done well to heed Nicola Willis's warnings ahead of this Budget that there would be no spend-up, because there is no spend-up. There is no money for - well, there is money for the important stuff. You've got the schools and the classrooms, and the hospitals, and the Waikato Expressway, and Winston Peters' pet projects. But everywhere else, there is just no new money. It is tight. Now, that is exactly how it should be. And in fact, I would say this still doesn't go far enough. For the third Nicola Willis Budget in a row, it isn't tight enough because we haven't even hit our debt peak yet. We are still going up that peak mountain. That is still two years away, which means that interest payments are already at $9 billion and they're only going to go up. It's going to take us to about 2040, roughly, before debt is back to where Bill English left it as a proportion of GDP. And that is just the most optimistic scenario. The rest of the scenario is basically never getting back down to where Bill English left it. Nicola Willis is making a virtue today of the fact that she's getting the books back in black by 2028/29, which she says is earlier than expected. But that is a little bit of game-playing that's going on, because it was always going to be 2028/29 until December. Then in December it changed, then it became 2029/30. Now it's just been brought back again to where it was about six months ago. And that is only, by the way, because Nicola Willis is using a made-up measure, OBEGALX, which makes surplus appear a year earlier than the standard old measure, which basically would have had surplus arriving only in 2030 or thereabouts. And by the way, all of this is a broken promise, because Nicola Willis promised the country that if you voted for National at the last election, she would have the books back in the black. When? Today. This year. But after three Budgets, I think we've learned to temper our expectations on that front. Now, on the bright side though, she has decided to borrow $6 billion less than she had planned to. I will take that. And while there is a lot of poor spending that continues, at least there isn't new, more poor spending. And for that, I suppose you have to give the Budget a solid holding-pattern score of 6 out of 10. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Very few frills or surprises are expected to be in today's Budget. Auckland Business Chamber CEO Simon Bridges predicts a “sensible, prudent, boring, Presbyterian” Budget, with only a few goodies coming from reprioritised spending. He told Ryan Bridge he was more interested in the "nuggets" that pointed to the Government's future policy direction. He wanted Finance Minister Nicola Willis to “stake some strong positions, defend them and stick with them”, with details on how the Government planned to lift innovation, productivity and growth. Bridges believed most people understood restraint was required, but said he wanted to see evidence the Government knew the difference between “frittering” on large social projects and “real investment” that would grow the economy. LISTEN ABOVE See omnystudio.com/listener for privacy information.

Over in the UK, household energy prices will rise by 13 percent a year in July, as soaring wholesale costs caused by the impact of the Iran war hit bills for the first time. Energy costs have jumped as a result of Iran blocking the crucial Strait of Hormuz shipping route - where a fifth of the world's oil and gas is carried. UK correspondent Gavin Grey says even if the Strait was unblocked tomorrow, this conflict would still leave a significant economic impact. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Accountants are hopeful the Government will use the Budget to do something about the secret little wealth tax those with offshore investments are currently paying. As it stands, most people with more than $50,000 directly invested in assets offshore, including shares in companies listed on stock exchanges, need to pay tax on a portion of the value of their investments, regardless of if they receive income from those investments. Those who invest in shares in New Zealand companies or New Zealand-domiciled funds only need to pay tax on the income they receive from their investments. NZ Herald Wellington business editor Jenee Tibshraeny explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

The Reserve Bank has opted to keep the OCR on hold at 2.25 percent today. Most markets had priced in a hold, but the views on what will happen next are split, especially considering concerns around inflation. Milford Asset Management's Remy Wisenberg explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Well, that Official Cash Rate decision is probably one of those moments where you find out whether you're a glass half-full or glass half-empty person. Because on the bright side, the Official Cash Rate didn't go up. On the downside, it looks like it's definitely going up next time. So yes, it's a reprieve - but it's only a reprieve for six weeks, excuse me, before the screws on the economy start turning again. Thanks to the new transparency rules at the Reserve Bank - which, frankly, we should all love - we know that the committee voted and it was split right down the middle. Three members of the committee wanted the OCR to stay at 2.25 percent. Three of them voted for it to be raised by 25 basis points immediately to calm down inflation pressures. But Anna Breman, who is the governor, has a casting vote. She said it needs to stay, so it stays put. But they didn't hide the fact that it is going to go up sooner than they had thought just three months ago. And it will go up by more than they thought just three months ago. Much of it appears to hinge on what businesses do with prices from here on in. Because what the Iran war is doing to prices is so widespread - and so many prices are going up, from fuel to fertiliser to food - that it runs a higher risk that businesses start jacking up more prices in a second round of increases. And that is what they're worried about at the Reserve Bank. So economists are now calling for three hikes in quick succession from here: July, September and October. Now, there are two problems with that. The first: all three hikes are before the election in November. National, especially, should be sweating, because poorer voters are not happier voters - they are voters who turn to New Zealand First. The second problem - and this is probably the biggest of them all - is what this is going to do to our recovery, our economic recovery. We are probably in negative growth this quarter. Next quarter is probably not that flash but at least positive. Entire sectors, like construction, are still struggling to get back on their feet. Unemployment is still in the fives. The Iran war is still pushing up fuel prices and therefore pushing up the price of everything. So, glass half full: at least we get another six weeks before the screws start turning. Glass half empty: when they tighten, they will be tightening fast on an economy that doesn't need that kind of pressure. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Auckland Council has released a new document, seeking potential interest from 'an exclusive funding and naming rights partner for a landmark activation initiative that will transform the Auckland Harbour Bridge into a dynamic storytelling canvas through light.' The project - expected to be a multi-year tourism initiative starting in August next year - is likely to attract widespread interest among marketers and creative agencies. Creative Director at The Goat Farm, Vaughn Davis, says the council's short of money, so whoever's interested is in a good negotiating position - but there's a unique challenge. "The downside of the Harbour Bridge lights is that you can't even put your jolly logo on it...with the lights, you've got to work pretty hard to make that association." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Tradies are being encouraged to warm up before work in order to reduce the impact of injuries. The construction industry is a high source of of work-related ACC claims, and some managers are educating their teams on the benefits of warming up. Chris Polaczuk from Construction Health and Safety NZ says there's still a 'macho culture' in the trades, where too many people see pain as a badge of honour. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Former Minister Peter Dunne says it's time to look at MP allowances. NZ First MP Andy Foster's claiming a $36,000 accommodation allowance for the Wellington family home he bought 26 years ago. He's moved to the Wairarapa, but lives in the capital when Parliament sits. Dunne says MPs should be reasonable. "Fair enough if you're required to commute to Wellington each week to get some accommodation, to get some recompense for that, but not fair enough to simply turn your own home into your home away from home in Wellington when you've lived there for most of your life." National's Louise Upston's also claiming the allowance for her Wellington property. LISTEN ABOVESee omnystudio.com/listener for privacy information.

The Reserve Bank Governor says she's mindful of the weak economy, as she weighs up Official Cash Rate settings. Anna Breman made the final call to keep the OCR unchanged at 2.25 percent today. The Monetary Policy Committee had been evenly split on hiking or holding, and is now signalling it'll go up in September. Breman says they consider the factors pushing inflation up, but also the weak economy and labour market that could send it downwards. "We aim to keep inflation low and stable, but we should also avoid unnecessary volatility in the economy." LISTEN ABOVESee omnystudio.com/listener for privacy information.

The Reserve Bank Governor acknowledges many Kiwis are doing it very tough right now. Anna Breman used her casting vote today, to keep the Official Cash Rate unchanged at 2.25 percent. The six-member Monetary Policy Committee was evenly split on hiking or holding the rate. Newstalk ZB senior political correspondent Barry Soper explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

The boss of New Zealand King Salmon says it's no fluke they're finally swimming downstream. The company's posting a net profit of $13.8 million for the six months to March. The previous period saw a net loss of more than $20 million. CEO Carl Carrington told Mike Hosking it was a tough summer on the seas, with temperatures well above average, but a lot of work went into investing in solutions. He says a new well-boat arriving soon will mark the biggest transformation in the salmon industry in three decades. Carrington says the company's confident in what's ahead next year. LISTEN ABOVE See omnystudio.com/listener for privacy information.