Best of Business

It's looking to be a rough season for our meat processing sector, with companies struggling to compete with abundant grass and a turbo-charged store stock market. Some companies have dropped published lamb and beef schedules by 10c/kg, and the decline has prompted concerns. The Country's Jamie Mackay explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

So David Seymour's right about Air New Zealand - but he's also wrong about Air New Zealand. Before we get to why, let me bring you up to speed on what's happened with the airline today, because the news is not good. Air New Zealand has posted a half-year result showing a $59 million pre-tax loss, which is slightly worse than expected. And to be fair to Air New Zealand, a lot of this really isn't their fault. They've had not one, but two engine types in their fleet causing them trouble. And the economic downturn we're experiencing in New Zealand - the worst in most of our lifetimes, you have to go back more than 50 years to find anything as bad - directly affects their earnings. If we don't have money, we're certainly not spending money on flights. But some of this is their fault. They're squandering customer loyalty with poor on-time performance and a tired, diminished Koru Club offering. And this is where David Seymour is right when he says, “Go woke, go broke.” Because part of the reason Air New Zealand is losing customers to Jetstar is that there are people who no longer want to pay for Koru Club. The offering has slid from the good old days. You can't even - and this bugs people more than the airline ever seemed to realise - go into the lounge, ask for a coffee, and take it away like you can at a café. There are no takeaway coffees because Air New Zealand doesn't want paper cups going on planes. Paper cups are bad for the environment… when you're flying planes. They've wasted time and money trialling an electric aircraft they don't actually know how to integrate into their fleet. And they're constantly lecturing the government about sustainable aviation fuel - SAF - which is more expensive than standard jet fuel, and standard jet fuel is already extremely expensive right now. But here's where David Seymour is wrong - he says the solution is to sell down the Government's 51 percent stake in Air New Zealand. We can't do that. We are an isolated island nation. There are only two ways to get here - by boat or by plane, and we all know which one people actually use. We need to own those planes to make sure they keep flying. If we learned anything during COVID, it's that Air New Zealand effectively became a logistics lifeline and repatriation service for the entire country. So yes, David Seymour is part right and part wrong. We do need Air New Zealand to stop the distractions and start doing its job properly. And we do need it to remain in New Zealand hands.See omnystudio.com/listener for privacy information.

Sky TV says even though it's had a strong first-half financial year result - the television market remains challenging. It's reported a $52 million net profit, turning around a $1.7 million loss last period. Its revenue rose eight percent, to about $414 million. Sky TV chief executive Sophie Moloney says revenue for traditional TV was softer than expected. "The TV side does seem to be suffering a bit more than others, so I do think it's incumbent on us to make sure that we're talking about that value and allowing our clients to see the benefits." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Women are continuing to lag significantly behind men when it comes to home ownership. Data from Cotality shows more than half of Gen Z men surveyed own their own home, while just a third of women do. The disparity also exists amongst the millennial and Gen X age groups. Cotality Chief Property Economist Kelvin Davidson says it's not an attitude issue. "Females actually rate property ownership more important than males, pretty much across the spectrum. So this is about other things, monetary factors, there's unfortunately still that gender wage gap across New Zealand." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Air New Zealand's assuring it's on track for economic stability. The national airline's announced a first-half before-tax loss of $59 million. CEO Nikhil Ravishankar says the result's driven by challenges from aircraft being grounded, a softer recovery than expected - and rising costs. But he says they'll be well on the road to recovery over the next two to three years. "One of the key reasons I say that so confidently is for the first time in six years, we've got new aircraft coming back into the fleet and we're solving engine issues." LISTEN ABOVESee omnystudio.com/listener for privacy information.

New reports show alcohol consumption is at an all-time low, and there's concerns about what this could mean for the hospitality sector. Stats NZ figures show overall consumption dropped 8.3 percent, beer consumption fell 10 percent, wine was down 11 percent - with spirits rising by 1.3 percent. Sam MacKinnon from Hospitality NZ says it's likely rising costs are driving consumers away, but recent health trends are also a factor. "Cost is becoming an increasing driver for people to choose to consume less, so it's a bit of a combination of factors." LISTEN ABOVESee omnystudio.com/listener for privacy information.

New Zealand won't be going cashless anytime soon under the Reserve Bank's new proposal. It wants to set up 1300 multi-bank hubs to provide full services free of charge. The plan ensures those in urban areas can walk to get cash - and the drive for those living rurally is reasonable. NZ Herald Wellington business editor Jenee Tibshraeny explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

AI firm Anthropic has made upgrades to their Claude model and it's sparked concerns about what this could mean for markets and jobs. Claude specialises in coding and technology, and IBM's stock recently took a hit - with experts citing the model as a reason. Milford Asset Management expert Andrew Curtayne explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

A positive financial result has gentailer Meridian thinking about infrastructure upgrades. It recorded a half year profit after tax of $227 million. Chief executive Mike Roan says they're considering increasing capacity at the Pukaki dam in the Mackenzie basin. He says it's still early days though. "The question that I've asked the team is - is it economic to do it? Does it actually make financial sense to expand the amount of hydro storage that we've got?" LISTEN ABOVESee omnystudio.com/listener for privacy information.

A real estate agent says there isn't enough demand to meet the supply of townhouses. Newly constructed townhouses are sitting on the market so long that they no longer qualify as 'new builds'. It means first-home buyers can't get low-deposit loans on the property. Real Estate Agent Rawdon Christie says developers are shifting close to what the market wants. "So rather than putting 15 in there, let's put 8 standalone two-story houses, which are still three-bedrooms." LISTEN ABOVESee omnystudio.com/listener for privacy information.

The Reserve Bank's emphasising the importance of cash services being free-of-charge. It's proposed requiring the banking sector to provide accessible full-cash services across the country - at $104 million a year. The plan ensures those in urban areas can walk to get cash, and the drive for those living rurally is reasonable. Money and Cash Director Ian Woolford says people don't expect to pay to deposit or withdraw cash. "Communities need easier access to cash, closer to home...what we've learned, partly, from those cash trials is that this is what communities need." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Momentum's sky-high for state-owned farming enterprise Pāmu. Landcorp's half-year net operating profit jumped $28 million - from a $2 million loss in December 2024 to a $26 million profit last December. It's forecasting a record full-year net operating profit of up to $107 million. The Country's Jamie Mackay explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Media company NZME's remaining cautious about the economy despite a positive financial year. The owner of The Herald and Newstalk ZB reported a $13.1 million net after tax profit - turning around the previous year's $16 million dollar loss. Its operating costs were four percent lower annually - reflecting the closure of community publications in December 2024. CEO Michael Boggs says it's a grind to recovery. "There's still been inflationary pressures, they're not feeling the best, they're not feeling confident yet to go and invest. And advertising is probably one of the first levers you can pull." LISTEN ABOVESee omnystudio.com/listener for privacy information.

The cost of living is hitting Kiwis hard, with new data showing Aucklanders are more likely to be worse off. More than a third of New Zealanders have a savings balance of less than $500, according to new data from Westpac. Westpac's Financial Wellbeing programme manager, Warren Ngan Woo, says Auckland is a big city where things cost more, which eats into people's ability to save money. "This is just a snapshot in relation to savings, but it certainly doesn't take into account what other people have in options with their savings." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Mercury's achieved a strong return to profit. BusinessDesk says the energy company's half year earnings before interest to December 31- reached $537 million. It recorded a net $20 million dollar profit - up from a $67 million loss last year. Chief executive Stew Hamilton says they're doing well and don't need to raise capital. "We've been disciplined in how we manage our money, how we earn our money and spend it, so we're investing wisely, performing strongly - and I think that gives us options." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Comvita's half-year result shows the company is seeing a noticeable financial turnaround. Its result for the six months ended December 31 had revenue up 18.3 percent to $118 million, EBIT up 10.7m to $10m, and debt reduced by $32.9m to $48.7m. Comvita CEO Karl Gradon says he's proud to see the company return to profitability and he's confident the company's been through the worst of it. LISTEN ABOVESee omnystudio.com/listener for privacy information.

The Remuneration Authority says more responsibility attracts more pay. The Taxpayers' Union says Western Bay of Plenty District councillors are getting an average 57 percent pay increase. Authority Chair Geoff Summers says the pool of funding for council has been decided - but not individual raises. He says the council will operate with two fewer councillors this term. "And most people would say - if I'm going to be doing more work than what some other people used to do, I want more money for it." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Genesis Energy says fresh Crown investment into the power generator will go towards building infrastructure. The Government's confirmed it will put up to $200 million dollars - letting it retain its 51 percent shareholding, as Genesis launches a capital raise. Chief executive Malcolm Johns says the money will speed up its ability to build. "We're gonna build some solar farms, some grid-scale batteries and some wind, and extend the life of Huntly Rankines." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Business appears to be booming in most parts of the country. ABC's quarterly market report shows business sales are up 28 percent on this time last year, with average prices up three percent. It finds 507 completed sales over a 12 month period - a new historical high. ABS Business Managing Director Chris Small told Mike Hosking that there's a link between sales and the current state of the economy across the country. He says in line with the economy, the South Island is up 70 percent year on year in business sales, while Wellington is down 10 percent. LISTEN ABOVESee omnystudio.com/listener for privacy information.

On Saturday Donald Trump announced a 10% levy on all goods coming into the US in response to the Supreme Court ruling his other tariffs unconstitutional. The new global tariffs were updated to 15% on Sunday. Economist Cameron Bagrie joined Tim Beveridge to talk about the implications for kiwi businesses. LISTEN ABOVE See omnystudio.com/listener for privacy information.

US President Donald Trump is pushing ahead with another round of global tariffs, just a day after being told last year's levies were illegal. In a post on social media, Trump confirmed he'll lift the tariffs to 15 percent, higher than the 10 percent rate he announced yesterday. The move comes after a Supreme Court ruling found his sweeping trade measures from last year were unlawful. Former US Under Secretary of Commerce and Security Bill Reinsch says this will make it harder for Trump to threaten and bully other countries with even higher tariffs. "He won't be able to do that anymore, and I think that's why he's really unhappy. It's also a significant limitation on Presidential power, the real importance of this decision is historic." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Confidence green pastures lie ahead for Fonterra, as the sale of brands like Anchor and Mainland nears completion. Almost 99 percent of shareholders voted today to get the tax-free $3.2 billion capital return, from the purchase by French company Lactalis. FedFarmers Dairy Chair, Karl Dean, says the sale is part of Fonterra's move to focus on ingredients. The Country's Jamie Mackay explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Auckland Airport says it's gaining momentum. It's reported a four percent increase in revenue in its half-yearly results. The airport says that lift in revenue is being driven by a two percent increase in passenger numbers to 9.6 million. Chief Executive Carrie Hurihanganui says there's still more work to do - since numbers still haven't caught up to pre-pandemic levels. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Less confusion over a drink at the local club, as options increase for serving alcohol. Currently, local sport clubs, RSAs and community clubs can only serve alcohol to members and their guests. The Government's today announced clubs can now choose to stick with their current license or apply to serve the wider public - like a restaurant or bar. Clubs NZ CEO, Lucy Waterreus, says many people didn't know these restrictions exist. "You might have someone that decides to pop into their local club, support a community event - only to discover they actually can't be served." LISTEN ABOVESee omnystudio.com/listener for privacy information.

The new Reserve Bank Governor is standing by the first OCR decision she's overseen - keeping the cash rate at 2.25 percent. Anna Breman said the Bank isn't happy with inflation being at 3.1 percent, but it's likely it will drop later in the year. NZ Herald Wellington business editor Jenee Tibshraeny explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

An improving financial situation for one of our largest companies, Fletcher Building. It's announced half-year results, weeks after agreeing to sell off its construction arm. The company's confirmed a half-year loss of $11 million - compared to a loss of $134 million in the year before. Milford Asset Management's Jeremy Hutton unpacked the reactions. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Telecommunications company Spark's mobile and broadband businesses delivered some revenue growth over the first half, contributing to an 83 percent increase in net profit. The company is reporting a net profit after tax of $64 million, compared with $35 million from a year ago. Spark CEO Jolie Hodson says the company's still recovering, but there's clear signs things could go up. LISTEN ABOVESee omnystudio.com/listener for privacy information.

We've had the first monetary policy decision from the new Reserve Bank Governor, and it's not until you get a new captain at the helm that you realise just how little confidence you had left in the previous one. Now, to be fair, it's early days for Anna Breman. We'll judge her by what she does from here on in. But she does start with a clean slate - without us reading too much into her decisions or second-guessing every move because of a poor track record. And that, I'd say, is a very welcome change from just a few weeks ago before she took over. Her assessment is that inflation is fine. Yes, it's a little high right now - 3.1 percent, outside the target band - but it's expected to fall back within the band by this time next year. The economy is improving. The green shoots that were previously limited to certain regions and industries are becoming more widespread. Households are getting more money in their pockets, but they're still cautious - and that's a problem. Because unless they're confident enough to spend, they'll hold back the economic recovery from what it could potentially be. But - and this is probably the bit you've been most interested in, and waiting for - they will start raising the OCR faster than expected. Previously, the Official Cash Rate projection had it going from 2.2 percent in March to 2.3 percent in December. That's now been brought forward: they're forecasting 2.3 percent in June and 2.4 percent in December. The first increase will still most likely be in December, but the chances of it happening in September just increased. It's not a major concern. It's not a major correction. It's not a game-changer for most people. But it does bring the inevitable a little closer. Still - for now - it's nice to have a change at the top, isn't it? And here's hoping this Governor does a better job than the last one. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Fletcher Building says it's not out of the woods yet, but their financial situation is improving. It recorded an $11 million half-year loss - down from $134 million the year before. Earnings are out of the red at $45 million, compared to $-88 million the year before. Chief executive Andrew Reding says they'll take a while to get back on track. "We're not forecasting great times for our financial year 2026, and indeed think that the calendar year 2027 is when things are lined up and moving properly." LISTEN ABOVESee omnystudio.com/listener for privacy information.

The Reserve Bank says inflation's too high, but it's actually worried it could soon end up too low. It's kept the OCR unchanged at 2.25 percent. New Governor Anna Breman says they're not happy with headline inflation surpassing the one-to-three percent target band last quarter. But she says underlying core-inflation is much lower, and wage growth slow. She explained that unless the economy rebounds, they think inflation might actually fall below the target. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Six companies linked to the former Duchess of York, Sarah Ferguson, are being wound down, according to new reports. One company is related to public relations, another to retail, and none appeared to be commercially active. UK correspondent Enda Brady says Ferguson was desperate for money, even emailing Epstein for help while he was in prison. LISTEN ABOVESee omnystudio.com/listener for privacy information.

New Zealand's not getting good bang for its infrastructure buck, according to some. The Infrastructure Commission has released a 30-year plan with 16 recommendations, and 10 top priorities for the next decade - including health spending. Infrastructure Commission chief executive Geoff Cooper says we rank high on spending in the OECD, but our outcomes are in the bottom 10 percent. He says New Zealand has unique problems we need to solve. "The geography is very difficult and we have a dispersed population. That means more pipes, more roads, more transmission lines and so on - and that costs, if you're going to do that." LISTEN ABOVESee omnystudio.com/listener for privacy information.

The business events sector's working to bump up our international multi-day conferences, which are currently lagging behind domestic bookings. A Business Events Industry Aotearoa report shows events contributed $925 million to the economy last year. Multi-day conferences generated approximately 1.5-million visitor nights for accommodation, nationwide. BusinessNZ Advocacy Director Catherine Beard told Ryan Bridge if you want to attract events you have to have good venues that are big enough to take big conferences – like the new International Conference Centre in Auckland. She says it's a bit like stadium shows for major music acts – if you don't have the events and can't draw the crowds, you're going to miss out. LISTEN ABOVE See omnystudio.com/listener for privacy information.

New housing data shows the market hasn't quite matched the mood of the economy as of yet. The Real Estate Institute of New Zealand says housing sales are down 5.4 percent from January last year. Prices were also softer, with REINZ's House Price Index dropping 0.6 percent compared to December. Property Investors Federation expert Matt Ball says it looks like the housing market will stay flat for the next little while, but it's about the bigger picture. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Labour has raised some concerns over the FTA with India, but Finance Minister Nicola Willis is pushing back. The opposition says they want the un-redacted advice about the deal and greater protection for migrant workers. Nicola Willis says there's strong aspirations in the agreement to promote investment. "What it's saying is - let's both agree to promote significant levels of investment in our respective countries, let's put some aspirational targets out there." LISTEN ABOVESee omnystudio.com/listener for privacy information.

More evidence of an improving economy, based on the amount of freight hitting our roads. Freight company Freightways is reporting a 17 percent rise in half-year profit. Chief executive Mark Troughear says they're starting to see optimism return, slowly and steadily. "It's a good result, and that's a bit of market share gains - Australia is going really well for us. But in New Zealand, you're just starting to see customers trade a little bit up on what they did last year." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Airbnb rates in Christchurch have fallen for the first time in five years, as hosts flood the market before the new stadium opens. The Press reports average short-term rental income dropped to $105 a night last year - down $2 annually. Construction market analyst Mike Blackburn says multi-unit builds are dominating the city, with some apartments just 39 square metres with no carpark. "These are units that are part of 20 or 30 units in a block, and they're specifically being built and being marketed and sold as Airbnb units." LISTEN ABOVESee omnystudio.com/listener for privacy information.

The Prime Minister says Labour's concerns with the India Free Trade Agreement is "politicking", and Chris Hipkins wanting attention. Labour's saying they want the un-redacted advice about the deal and greater protection for migrant workers. In a letter to Chris Luxon, Chris Hipkins wants more clarity about the clause which requires New Zealand business to invest $33billion into India. Luxon told Mike Hosking that none of their concerns are real problems. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Greg Foran is back where I suspect he belongs, and likes. The former Air New Zealand boss, if you have missed it, is off to Kroger, which is America's second biggest grocer behind Walmart. I have never met a New Zealander who has worked in America that belongs in America more. It was evident from the first time I met him that he was American. You can spot them in their shirts and ties. They are conservative and yet impeccably pressed. He looked like he had starched himself getting out of bed each morning. The last time he was in here, his farewell interview, we talked off air about where now. He didn't say specifically, but I knew it was America. The bit he never explained, probably because he either couldn't for commercial reasons, or couldn't because he hadn't quite worked it out for himself, was what the hell he was ever doing back in New Zealand. I asked him any number of times in a sort of non-direct way, what on earth was it about a small airline at the bottom of the world that would drag you out of Walmart to come and run it? Possibly given he wasn't running Walmart, it was a job in which he was running something so his CV would show a Kroger in years to come that he was ready to be boss. At Walmart he lived in Arkansas and flew in private jets. In New Zealand he kept having to explain why the Wellington to Taupo plane never took off. The Covid thing must have been the nightmare from hell and it wasn't his fault. But even without it and the myriad of problems he faced, including the inexplicable cluster around engines that no airline anywhere seems to have encountered the way Air New Zealand has, you always got the impression he was either here for a short time, or it had all been a patriotic mistake driven by a laudable desire to return to home base and make some sort of contribution. But I can tell you this, of all the Air New Zealand CEO's I have known - business legend Ralph Norris, marketing genius Rob Fyfe, Prime Minister Chris Luxon and Greg Foran - no one looked less at home and more bewildered than Greg. Some people loved him because he was often at the airport checking their backs in, so work ethic was never the issue. The issue was Air New Zealand wasn't American. I bet you he has never been happier, or more relieved. LISTEN ABOVESee omnystudio.com/listener for privacy information.

March 6th is your day. This is the date that the changes to foreign buyers of expensive houses comes into play. This date, in a way, is like the LNG announcement. The idea of foreign buyers for houses isn't new. It's been part of the Government's plan ever since the Government became the Government. The LNG idea got floated in the winter of 2024, not long after the Government became the Government also. This proves one of two things - either it's hard work being in Government and things take longer than you think, or this lot aren't that flash at getting things done despite the rhetoric to the contrary. The foreign buyers rule is a righting of a horrible, myopic, narrow-minded wrong from the previous Government. House prices were never driven by Germans buying $15 million homes in Herne Bay, nor the Chinese buying $19 million homes in St Heliers. And Auckland is essentially where they were all bought. Queenstown has joined the party a bit lately. But the vast swathe of New Zealand never saw a mega purchase from a filthy, rich foreigner. Why it's important is we should see foreigners as good people who want to improve their lives, while improving ours via the improvement of the country. People who have money do things with it, like buy or build business, they invest, they grow, they employ and they pay tax. They bring knowledge and expertise and they, more often than not, fall in love with our piece of paradise and end up doing far more than they ever set out to do. I think a lot of Julian Robertson, an American who built lodges and golf courses here that bring in millions. He enhanced the place. And next time you're at the Auckland Art Gallery, go see one of his Picasso's. He gave them a fortune in art. What drives bans is envy, shallowness, fear and, often, stupidity. We have at last made it right. Yes, it will help the housing market, but more importantly it will help the country and this country needs to pull every trigger in its arsenal to fire it up. Nine years ago we were a place of pride and growth and global admiration. Labour 2017-23 destroyed that. March 6th is a small step back towards redemption and better days. LISTEN ABOVESee omnystudio.com/listener for privacy information.

An industry expert says it's not practical to regulate blind cords. A coroner's released a report on the death of three-year-old Tilly Cambie in 2023, after a cord tangled around her neck. She's one of several children to die that way since 2009. They recommend mandatory blind standards - which the Government's ruled out. Window Treatments chief executive Graeme Rose says blanket regulations wouldn't suit every household. "You can imagine someone installing a blind in a kitchen window with a bench in front of it, and an elderly person trying to operate that blind from an angle having a very short cord." LISTEN ABOVESee omnystudio.com/listener for privacy information.

A lot of the country's small businesses are feeling the end of financial year sting. Data from Xero shows 75 percent of the New Zealand small business owners surveyed say the current financial year has been more stressful than past years. Nearly half had considered giving up their business due to stress, with 67 percent citing financial management as their main worry. Xero Country Manager Bridget Snelling says the biggest stressor impacting small business owners is financial pressure - and many are feeling the pinch. LISTEN ABOVESee omnystudio.com/listener for privacy information.