Best of Business

The Iran war may be denting demand for Turners, but the company's still outperforming previous years thanks to its popular Tina ads. Turners Automotive has reported a record normalised net profit of more than $63 million for the year to March – up 16%. Chief executive Todd Hunter told Mike Hosking strong growth in finance and insurance means they're well ahead, despite the war slowing things. He says the customer experience is built on trust, and selling used cars is something that doesn't normally operate on that foundation. LISTEN ABOVE See omnystudio.com/listener for privacy information.

Nvidia, the world's largest listed company and a critical bellwether on the health of the AI sector, posted record first-quarter earnings on Thursday of more than $136 billion. That's up 85 percent on a year ago, with forecasts for the next quarter of over $153 billion. Sam Dickie from Fisher Funds explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Elon Musk's SpaceX is set to go public - allowing people to trade shares in the firm on the stock market. The initial public offering (IPO) on the US stock market will likely be one of the largest in Wall Street history. NZ Herald senior business writer Chris Keall says this will likely come close to making Elon Musk a trillionaire. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Grant Baker is one of the country's best success stories. The Kiwi serial entrepreneur has had his hand in a number of pies but is best known for two companies – 42 Below and Turners. It's a career that's spanned decades, and that's before you get to his philanthropic efforts and work in co-founding the Gut Cancer Foundation in 2008. He's unravelling his career in his new book ‘No Pit Stops: The Business Of Going All In', sharing stories of successes, setbacks, and lessons he's learned. While Baker has always had a bit of entrepreneurial spirit, it wasn't until he was in his thirties that things really kicked off. “My wife and I invested in property and those sorts of things, y'know, traditional Kiwi way, but we never got much traction,” he told Mike Hosking Baker's true journey began with an offer from Eric Watson to join him in building a “$100 million company” in the Blue Star Group. “When he laid out the opportunity, I just thought, well I've got to do something, I was in my mid-thirties at the time and thought if I don't pull the trigger now, I never will.” And the rest, as they say, is history. LISTEN ABOVE See omnystudio.com/listener for privacy information.

Labour leader Chris Hipkins doesn't think the public much cares about which companies would be in the party's Future Fund. It won't be revealing key details - including the cost to the Crown and which state assets would go into it - until after voters go to the polls. NZ Herald Wellington business editor Jenee Tibshraeny unpacked the reactions to this announcement. LISTEN ABOVESee omnystudio.com/listener for privacy information.

The ongoing conflict in Iran has led to bond yields and interest rates going up all over the world, and it's prompted concerns among experts. This will impact Kiwis as well, as many KiwiSaver portfolios have taken a hit as a result. Milford Asset Management's Jeremy Hutton explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Infratil says it has agreed to sell 53.53 million shares - representing a 5 percent stake - in Contact Energy through a fully underwritten block trade. The sale is at $9.25 per ordinary share, generating expected gross proceeds of about $495.17 million, and taking Infratil's shareholding down to 9.08 percent. The sell-down is expected to complete on May 25. Generate investment specialist Greg Smith says Infratil will have other opportunities they'll want to take advantage of, like data centres. LISTEN ABOVESee omnystudio.com/listener for privacy information.

New Christchurch flights are being hailed as a key step for global connectivity. From October, Air New Zealand will fly direct between Christchurch and Singapore, Tokyo and Perth. Christchurch Airport chief executive Justin Watson says Christchurch is in a really good place, and more people will want to experience the city. "People want to come and visit, they want to go to events, they want to see the place, they want to access the South Island - and so I'd say that's the primary draw card." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Queenstown will need to double its infrastructure within 15 years to keep pace with growth, according to Southern Infrastructure chief executive Ross Copland. Copland warned the resort town's roads could reach capacity by the end of the decade - and said changes need to be made. Infrastructure NZ chief executive Nick Leggett says Queenstown draws in a lot of visitors and it'll leave a bad taste if people can't get around properly. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Following the release of last week's Budget, there's growing claims that Australians are looking across the Tasman with 'genuine envy'. A recent article in The Australian claimed that with no capital gains tax, no stamp duty or land tax, and the opportunity to negatively gear, business owners and property investors have taken more interest in New Zealand as a result. Australian independent economist Saul Eslake says this is likely just wishful thinking as a response to the recent Budget. "People look over the ditch and see that New Zealand's top rate of 39 is lower than our top rate of 46...and that you don't really have a capital gains tax, other than on assets that are held for less than two years, so they might think that looks more attractive than Australia." LISTEN ABOVESee omnystudio.com/listener for privacy information.

The services sector continues to contract. The latest Services Index rose 2.7 points to 48.9 – with anything below 50 signalling contraction. New orders was the only category in expansion, sitting at 51.2, while employment remained negative for the 29th consecutive month. BusinessNZ Advocacy Director Catherine Beard told Mike Hosking the figures are the result of the fuel situation due to the conflict in the Middle East. It's a shame, she says, as we started the year in quite positive territory. LISTEN ABOVE See omnystudio.com/listener for privacy information.

It's tourism's time to shine this week as TRENZ hits Auckland. The country's largest tourism business event runs from today to Thursday at the International Convention Centre. More than 12 hundred delegates will attend from key markets like the US and China, and it's projected to inject more than $3 million into Auckland's economy. Tourism Industry Aotearoa CEO Rebecca Ingram told Mike Hosking 16 thousand business meetings will take place. She says the benefits are multi-layered as some will boost this summer, but most of it will be focused on the two after that. LISTEN ABOVE See omnystudio.com/listener for privacy information.

The BNZ-BusinessNZ Performance of Services Index (PSI) rose 2.7 points to 48.9, up from 46.2 in March. A reading below 50 indicates the sector - which accounts for nearly three-quarters of the economy - is contracting. Harbour Asset Management expert Shane Solly explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

A former Finance Minister once forced to bail out BNZ says buying it back would be lunacy. New Zealand First is proposed re-nationalising the bank, buying it back from Australia's NAB and merging it with Kiwibank. Leader Winston Peters says bank profits should remain in New Zealand. But Ruth Richardson says the idea has no weight. "It makes New Zealand look like a tinpot country, where populist politicians feel free to nationalise private businesses. Why stop at banks? I mean, supermarkets like Woolworths are foreign-owned." LISTEN ABOVESee omnystudio.com/listener for privacy information.

The United Kingdom isn't facing as many financial troubles as predicted, after the latest data shows their GDP holding steady. The past few months in the UK have been dominated by challenges to Prime Minister Sir Keir Starmer's leadership, and many believed the issues in Parliament would damage the country's financial stability. Business Correspondent Vicky Price told Ryan Bridge that, 'what we did see here was in the UK was an increase of 0.6% in the quarter in GDP, which is quite unexpected.' But she said this won't be A relief for Starmer, who faces more leadership challenges from members of his cabinet. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Ozempic, Wegovy and Mounjaro are among the weight-loss drugs that more people are taking - but questions have been raised about their economic impacts. These drugs will also have an impact on other sectors, including healthcare and food, and research is still ongoing. Fisher Funds expert Sam Dickie explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Synlait chief executive Richard Wyeth is leaving - after one year in the job. The South Island dairy processor's released an NZX market update, saying Leon Fung will be acting CEO, effective immediately. Wyeth will remain supporting the transition, until the end of June. The Country's Jamie Mackay explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Air New Zealand's CEO says the airline will trim more flights, with a forecast it'll be $390 million in the red this financial year. It's blaming the fuel cost hike lifting spending $240 million more than expected. The airline told NZX it's already reduced overall capacity three to five percent since the Iran war began. Nikhil Ravishankar says cuts may continue even after jet fuel prices ease, with cuts for August to October announced soon. "We either sort of roll over the changes that we've made into July - or we might have to go a bit further, depending on what fuel's doing." LISTEN ABOVESee omnystudio.com/listener for privacy information.

New research suggests nearly 100 of our CEO's are backing their businesses but not New Zealand. The Pivot and Pace survey found many CEOs are growing frustrated with the country's lack of long-term thinking. Many are saying three-year political cycles and a lack of cross-party agreement are holding the country back. Founding Partner of Pivot & Pace Kendall Langston told Mike Hosking there are other countries with visions longer than two political cycles. He says CEOs aren't wanting Government involvement – rather a runway and guaranteed resilience to create some confidence in the direction they're heading. LISTEN ABOVE See omnystudio.com/listener for privacy information.

New Zealand's international credit rating has hit a tipping point, and economists have raised concerns. Back in March, Fitch Ratings placed New Zealand's AA+ long-term credit rating on a 'negative outlook', downgraded from 'stable'. Moody's later followed suit, claiming the global economic and political uncertainty presented downside risks to growth. Fitch's Head of Asia-Pacific Sovereigns, Thomas Rookmaaker, says this was driven by a number of factors, including the Middle East conflict and Government debt. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Kiwis appear to be shopping close to home, according to new reports. Data from retail management platform Lightspeed shows about 77 percent of Kiwis surveyed prefer shopping in store above online. 40 percent shop at local businesses, and 34 percent buy online from New Zealand retailers. Retail NZ CEO Carolyn Young says they want more of this, and for people to be proud of local stores. She says people should think about stores in their neighbourhoods that they really love. LISTEN ABOVESee omnystudio.com/listener for privacy information.

There's growing calls to drop the All Blacks down from business class to premium economy, as travel costs set to get worse during the fuel crisis. Dropping all of New Zealand's premium rugby teams down a flight class would reportedly save $6 million per year - as NZ Rugby looks to cut down losses. NZ Rugby CEO Steve Lancaster says the All Blacks need to travel multiple times a year, and this downgrade would be a stretch. "The All Blacks carry a huge load for us...so we're not just sending them halfway across the world and putting them there, we're flying them multiple times over long distances. So this is not a consideration." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Competition in New Zealand's economy isn't as strong as it could be. New Commerce Commission analysis of 22 years of Stats NZ data shows average business concentration has dipped slightly. However, smaller businesses are still struggling to gain traction against larger firms. Commission Chair John Small says weak competition in essential sectors is also weakening the rest of economy. He told Mike Hosking that while the size of New Zealand does have an impact on the amount of competition we have capacity for, we can still do a lot better than we are. LISTEN ABOVE See omnystudio.com/listener for privacy information.

Treasurer Jim Chalmers is set to deliver the next Australian federal budget, and reports indicate it's going to be focused on housing. It's likely new property tax reforms will be unveiled, with an expected crackdown on capital gains tax discounts and negative gearing. HSBC Chief Economist Paul Bloxham explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Rabobank has just released their latest agribusiness monthly report for May, and it's good news for Kiwi farmers. The report has positive prospects for beef and dairy, thanks to ongoing international demand. The Country's Jamie Mackay explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

The manufacturing sector has been hit hard over the past few years, but ongoing global conflict has worsened current market conditions. Average profit margins have plunged to 31.53 percent, the lowest since records began in 2018. This has resulted in more manufacturers clearing out their warehouses, with stock on hand dropping to historically low levels. Unleashed Head of Product Jarrod Adam says the challenges to the supply chain are being worsened by the Middle East conflict, and experts are unclear on what will happen next. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Oil prices have jumped more than three percent on the back of another snag in negotiations between the US and Iran. Donald Trump has taken to social media to call Iran's response to a US 14-point memorandum 'totally unacceptable'. Brent crude is now trading at more than 104 US dollars a barrel. Harbour Asset Management's Shane Solly explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Despite the rising cost of living, growing fuel prices and ongoing concerns about inflation, the demand for travel still hasn't dropped. The Auckland Travel Show is on this weekend, and it's clear demand is alive and well, but there are some new trends emerging. Founder Rob Eliott says people have redirected their plans - with plenty still planning trips for Asia and the Pacific Islands. LISTEN ABOVESee omnystudio.com/listener for privacy information.

The cost of computer components has shot up, and there's concerns about what it could mean for the tech sector. The shortage of memory chips has prompted tech investors to worry about what this could mean for the market. Sam Dickie from Fisher Funds explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Protein is seeing a surge in popularity all over the world, and that's great news for Kiwi farmers. Reports claim a boom industry has developed around supplying high protein calories for those who are losing muscle mass from taking weight loss drugs like Ozempic and Wegovy. The Country's Jamie Mackay explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

The rise in AI has seen demand for professionally written CVs in a bid to stand out against algorithms. Experts say while AI can be useful to screen hundreds of applicants faster, it's created a transparency gap between employers and jobseekers. CVs by Sarah director Sarah Wrightson says the screening software rules out applicants before a human gets a chance to look at their CVs, and it results in qualified applicants getting filtered out. "I've had clients come to me saying that they've applied for 80 jobs and heard nothing back - and often, they've actually got really solid experience. The software's looking for alignment and clarity, humans read context, the software doesn't." LISTEN ABOVESee omnystudio.com/listener for privacy information.

New Zealand's treading water, with a warning our increasingly overloaded pension system isn't sustainable. The latest OECD snapshot of our economy suggests unless we adjust systems, including the costs of health, long-term care and pension will increase by about five percent of GDP by 2060. It says it could be countered by changes including upping Superannuation contributions. Economist Cameron Bagrie says we can't keep kicking the can down the road - and that we need to address entitlements, through lifting the retirement age or means testing. LISTEN ABOVESee omnystudio.com/listener for privacy information.

A major bank believes unemployment will remain fairly flat this year, rather than anything catastrophic. The national rate dipped slightly to 5.3% in the first three months of this year. ASB chief economist Nick Tuffley told Ryan Bridge says he's not overly pessimistic about the next couple of quarters. But he cautions the next few months are really the danger zone as businesses hunker down and defer some decisions. Youth unemployment is up from 13.3% to 14.4%. LISTEN ABOVESee omnystudio.com/listener for privacy information.

A new test case for the standards of political neutrality expected in the public service. Craig Stobo has resigned as chair of the Financial Markets Authority, after an investigation found he'd voiced too many political views for someone in an apolitical public sector role. NZ Herald Wellington business editor Jenee Tibshraeny explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

ASB is set to launch their own answer to Sharesies with their new app. ASB Share Central will include a mobile app and desktop platform, and it will allow Kiwis to make their own investments into shares. CMC Markets managing director Chris Smith says it's 'exciting' ASB wants to take this step, and they're looking forward to working with the bank on this project. LISTEN ABOVESee omnystudio.com/listener for privacy information.

There's hopes the Iran war won't bring a big bump in unemployment. Stats NZ data shows the rate reached 5.3 percent in the March quarter, down from 5.4 percent in the three months to December. Infometrics expect it'll rise again throughout 2026. Principal Economist, Brad Olsen, says they're not expecting any mass firings. "It's more that those hiring intentions are likely to be more subdued - i.e., businesses probably won't be as keen to hire into the future just because of how uncertain things are." LISTEN ABOVESee omnystudio.com/listener for privacy information.

The Icehouse is celebrating 25 years of powering Kiwi business growth. They're a non-profit dedicated to training and mentoring the small to medium enterprises that make up 97% of New Zealand's economy. And today is their Ignite Growth Summit, in which they bring together legendary founders who have gone from the garage to the global stage to inspire the next wave of business talent. CEO Olivia Blaylock told Kerre Woodham there are so many great businesses around New Zealand, and while some, like Pic's, are well known, there are plenty that we don't hear about. She says we need to tell more of their stories and create a culture where it's okay to put your hand up and say you're doing well. LISTEN ABOVE See omnystudio.com/listener for privacy information.

Australia's Reserve Bank has lifted the country's Official Cash Rate 25 basis points, to 4.35 percent. The move was expected by economists and financial markets, fearing the Middle East oil crisis could worsen inflation before it gets better. HSBC Chief Economist Paul Bloxham explained the move further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Despite the mounting concerns about the economy and the ongoing Middle East conflict, New Zealand's rural sector is booming. Reports reveal farm worker pay growth has levelled off after a post-Covid period of rapid growth. The Country's Hamish McKay explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Westpac's CEO says they have noticed changing customer habits in the backdrop of a tougher economy. The bank's half-year profit is up four percent, with its net profit rising to $545 million dollars. It's down 19 percent on the previous six months. CEO Catherine McGrath says businesses are getting good at controlling what they can. "There's a little bit less money being spent on things like hospitality and retail spend - with businesses, some of them are pausing a bit on whether they want to do their expansion plans." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Donald Trump has floated the idea of the US guiding neutral ships out through the Strait of Hormuz, and it's made an impact on the oil markets. The Brent oil price was little changed above $108 a barrel, after falling as much as 2.4 percent at the open - below last week's $118 high. Harbour Asset Management expert Shane Solly explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

I have good news and bad news for you this morning. The good news, I was out shopping on the weekend, which means I didn't actually buy anything but drove halfway across town looking for a bed-head, couldn't find one that fit, and went home empty-handed. But the good news is the shops I visited were full of people spending money. Hardware store, full. Furniture store, less full but still busy. The Devil Wears Prada on Saturday night was 100% booked out for sessions running almost on the hour. I've never rated Anne Hathaway's acting chops, but literally thousands of middle-aged women, glass of Savvy B in hand, clearly did. A survey out today says retailers are worried about the fuel shock, but I didn't see much reason to be freaking out on the weekend. Now the bad news, all the stuff we buy in this country comes by sea. All the trinkets and furniture and non-perishables come over the ocean, because we're, yah know, an island. More than 80% of our trade is done on a ship, by value and weight. Half of that trade - imports and exports - is done by the shipping giant Maersk. In a little-reported note to customers Friday, Maersk is slapping an almost 30% fuel surcharge on to inland transport. The fuel bill for imports is increasing 27%. The Aussies' is going up 18%. This cost gets added to all the stuff we buy. So anything in country right now will be cheaper than anything that's about to be sent here. They started the new charging rate on Friday. Which does make my weekend in busy shops and gay old time at the pictures on Saturday night feel somewhat like, to use another movie analogy, a dinner party aboard the Titanic as it listed into the Atlantic ocean. See omnystudio.com/listener for privacy information.