Every weekday morning just after 6.50 am I talk with Marcus Lush on Radio Live about the latest news in business, markets, economics and personal finance.
I usually send through suggestions the night before or earlier in the morning. Sometimes we veer off into other areas or pick up on things that happen overnight.
But here's my suggestions as of 7.30 pm the night before. I'll update later with a link to the audio.
Marcus,
1. National is saying it won't limit the amount of foreign ownership of the SOEs it will float, but only expects foreigners to own 10-15%. It also says it won't give Kiwi investors or small investors a discount in any float. Instead, the price will be set after checking with the foreign buyers. Here's more detail in Alex Tarrant's article.
2. NZIER says the RBNZ should until June next year to hike the OCR. This contrasts with the views of the bank economists, who think December is the right time. NZIER's Shamubeel Eaquab is worried about slowing global and Australian growth. See more here in Alex Tarrant's article.
3. Sealord is threatening legal action against Greenpeace over its 'Bad Tuna' advertising campaign. This is the new face of activism where companies are directly targeted using their own branding and using their own tactics -- media advertising. See more here at Stuff.
4. We drink buckets of coffee each day in those lovely little paper cups made by Finnish-based company Huhtamaki. It turns out many of those cups have been made here. But not for much longer. Huhtamaki has announced it will layoff 135 people and move the manufacturing to India, Thailand and Vietnam. This is just more fallout from our obscenely high NZ dollar. Yet no one seems to care about jobs. Just as long as we can buy cheap imports. No worries. We can borrow the money to buy the cheap imports. See more here at Reuters.
5. Rakon has warned of a 44% fall in profit this year because of the high New Zealand dollar. Yet no one cares. Certainly not the Prime Minister or the Finance Minister, who announced yesterday they will borrow more money offshore to pay for the Christchurch rebuild. This will boost the New Zealand dollar even more. See more here in this Scoop business article.
cheers
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(Updated with link to audio)
16 Comments
Not sure. The release via Reuters talks about closure of flexible packaging factory. I've asked Alex to dig deeper.
http://www.reuters.com/article/2011/08/30/idUS201229+30-Aug-2011+HUG201…
cheers
Bernard
So lets look at what happens if the NZD drops,
We see fuel inflation....$2.50? a litre before the election....very bad news that, also low fuel costs help businesses?
Cheap imports...I cant say they strike me as becoming cheaper at the RRP anyway. For instance Ive seen some prices jump 10% in recent months....but I dont think much is being sold....discounts then come in....Im waitng to buy a few things....like a thicknesiser and a 12inch cross cut saw....Im not impatient....In the meantime the retail industry ike DSE is kept almost afloat....it allows them to haevily discount I guess.
Interest rates low....doesnt that help businesses?
Do they really care about the banks? though I suppose that helps the banks keep rates low...for consumers/voters.
Exporters breath a sigh of relief....
Hmm also English said our cheap wages were an advantage, this shoots that one down....
Kind of brings into question National's integrity to my mind.....they are promising growth and hence jobs.....
Hmm, also of course they are pushing oil exploration, if a lot is found (fat chance) our exporters are finished.....I dont know about black gold, more like black death....
Exporters are our life blood, yet they are doing diddly to keep them afloat and almost actively bagging them....got to wonder, business friendly? cant see it myself....
regards
Rakon will have no choice but to move and list overseas. The government has no interest in supporting the export sector and reducing the current account deficit.
Just keep sucking more debt into the country. It's amazing that people still have the perception that the current government is a good economic manager.
Making paper cups though? hardly high tech.......I sometimes wonder if such companies make political statements / excuses for moving when they were going to move anyway...
Of courseNational are not, but neither is Labour. The voter has clearly said no tax increases, so we are locked into more debt and the road to hell....ie our tax base/income only balances when we are growing significantly, which with Peak Oil we cannot do anymore....so we wont be able to pay back the debt easily....
Thanks Brash for the attempt of a huge tax bribe in 2005 is all I can say, you have really screwed up NZ. We have WFF boosted because of you and not only that got voters thinking their tax is too high...
Anyway we either balance our books now with increased tax or see a severe impact later....and as long as both party choices (actually I think all of them) lie to us I know which path we will take. You would think the memories of what Lange's Govn had to do would still be fairly fresh in ppls minds....obviously not.
regards
So it's Brash's fault now for WFF. That's just an idiotic statement. Put the blame where it belongs - Labour's tax and spend policies and a dumb arse population that got sucked in by the bribes. Who implemented the tax cuts in the end? If you think you're not paying enough tax then go ahead and make voluntary payments.
Labour overtaxed the middle class for years. The one thing they got right was debt reduction but their spending policies f$#ked all that up. National aren't doing any better by not addressing spending and instead increasing it over the past three years. It's a total mismanagement (by both Labour and National) of spending, intervening and regulating in areas where it's not needed and not intervening and regulating where it was needed. Govts. can't run an economy. An economy will run itself and govts. can only provide the checks and balances to ensure that consumers/workers aren't exploited and corporates/capitalists aren't exploiting.
Here's a reasoned article on Canada's performance over the past decade. Comparing it to New Zealand you can see where we got it wrong by only ever addressing one side of the ledger.
http://www.marketoracle.co.uk/Article30175.html
Disclaimer: ACT doesn't get my vote either.
Yes meh , it is ( as ever ) difficult to follow steven's reasoning .
How did Dr Brash's promise of lowering tax rates across the board cause Michael Cullen to introduce WFF ?
....... I too , am confused by this hare-brained thinking .
Brash wanted NZ to be fiscally re-balanced , towards productive endeavours , and away from consumption . And he wanted an end to the morass of Labour's of dumb-arse middle-class welfare programmes , such as WFF & interest-free-student loans .
Brash lost , Cullen won , eat that you " rich pricks " !
" .. the size of a country's problems is directly proportional to the size of it's government " , David Lee , Toronto , Canada .
Steven: "Making paper cups though? hardly high tech.......I sometimes wonder if such companies make political statements / excuses for moving when they were going to move anyway..."
So your comment was in reply to raf, who was commenting on Rakon.
FYI Rakon make high tech crystal oscillators from memory. This is exactly the sort of complany we need to stay in NZ.
Yes Rakon are a quality hi-tech company with few competitors in what they do...though they have to compete against tag teaming Japanese companies who take turn to undercut each other!
They supply Apple and all the top tier mobile producers...they have growing businesses in China ($45m factory opened a few months ago), India and some interesting activity in France. They really are in the point end of the hi tech market and are a great company. Sadly it's difficult to operate when your currency (which impacts your selling price) is so hugely overvalued. (Disclaimer: I have shares in Rakon!).
NZ is so exposed to currency swings so you would expect the government to look at managing that. But no they are too "scared" of the market......so let's just destroy our whole export and manufactruing sector and all become baristas........why is youth unemployment so high? there aren't the jobs that used to be there.
That will continue until all our wealth has been transferred overseas.
And yes I agree National and labour are as useless as each other.
However, there is one party which is going to change this.
Updated with link to this morning's audio.
http://www.radiolive.co.nz/Govt-asset-sales-plan-investigated/tabid/506…
cheers
Bernard
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