Today in Business

• Today in Business: August 6, 2025

  Welcome to Today in Business - Powered by Spark for Business, an experimental AI podcast by the New Zealand Herald. Each weekday, we bring you five stories, the best of the New Zealand Herald business journalism, summarised and delivered by an AI voice as an easily digestible recap. It's Wednesday, August 6, 2025, and here are five stories you should know about. New Zealand's seasonally adjusted unemployment rate reached 5.2% in the June 2025 quarter, the highest level since 2020, according to Stats NZ. The figure was slightly lower than economist expectations and in line with Reserve Bank forecasts. Unemployment in Auckland rose sharply to 6.1%, with 15,000 more unemployed people than a year ago. Nationally, the number of unemployed increased by 16,000 year-on-year. The underutilisation rate, a broader measure of labour slack, climbed to 12.8%. The employment rate fell to 66.8%. Average hourly earnings rose to $43.39. Wage inflation was 2.4%, slower than last year. The New Zealand dollar remained stable. In other news, whole milk powder prices surpassed US$4000 per tonne in August for the first time since 2013, according to NZX Dairy data. Fonterra's auction recorded a 2.1% rise in whole milk powder to US$4012 a tonne, while skim milk powder edged up 0.4%. Butter prices dropped 3.8% to US$7214 a tonne. Fonterra's milk price for the past season is yet to be confirmed but stands at $10 per kilo milk solids for both the previous and current seasons. A low New Zealand dollar at 59 US cents is supporting prices. June milk production increased 17.8% year-on-year. Turning to politics, the Government has allocated $25 million for a possible referendum on four-year parliamentary terms, planned to run alongside next year's election. Cabinet has approved the funding in principle, with a final decision expected in September after a select committee report. The budget is 25% lower than initial estimates, with $6.2 million for public information campaigns and $18.8 million for the Electoral Commission to conduct the referendum. The question wording and legislative details remain under review. The funding covers both this and the next fiscal year, with planning already underway at the Electoral Commission. In a separate development, Kiwibank has been warned by the Financial Markets Authority for overcharging more than 8,600 customers just over $912,000 over 13 years due to a fee waiver error on joint accounts. The issue, occurring between July 2011 and November 2024, was self-reported by Kiwibank after a customer complaint and an internal review. The bank says it has reimbursed affected customers and strengthened internal controls. The FMA's Louise Unger says clear communication and robust systems are essential to prevent such errors. Most overcharging occurred after the 2013 Financial Markets Conduct Act came into force. And finally, Downer is set to play a significant role in New Zealand's major project pipeline, with $111.6 billion in funded projects reported by the Infrastructure Commission. Managing Director Murray Robertson says the infrastructure pipeline includes $70.9 billion for transport over ten years. Downer is involved in projects such as the Northern Corridor and Auckland City Rail Link. Its Hawkins unit is delivering projects including Auckland Airport's new terminal and hospital upgrades. Downer maintains over 50,000 kilometres of roads, employs 8,000 people, and recently developed a New Zealand Infrastructure Resilience Index to guide regional investment priorities. That was Today in Business - Powered by Spark for Business - your NZ Herald daily business summary. For the best in business, subscribe to Herald Premium at nzherald.co.nz.See omnystudio.com/listener for privacy information.

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• Today in Business: August 5, 2025

  Welcome to Today in Business - Powered by Spark for Business, an experimental AI podcast by the New Zealand Herald. Each weekday, we bring you five stories, the best of the New Zealand Herald business journalism, summarised and delivered by an AI voice as an easily digestible recap. It's Tuesday, August 5, 2025, and here are five stories you should know about. Revitalisation of Auckland's central business district is still in question as several high-profile development sites sit vacant, some for decades. Despite major projects like the $5.5 billion City Rail Link and the $1 billion-plus New Zealand International Convention Centre nearing completion, many sites remain undeveloped, delayed, or abandoned. Plans for residential and office towers - including Saint James Suites, Elliott Tower, and Federal Apartments - have stalled or been dropped. Notable sites, such as the ex-Auckland Star and Royal International Hotel, are empty. Key properties, including Smith & Caugheys and the former police station, are now for sale. Developers cite funding difficulties and challenging market conditions. See more from Anne Gibson in today's Property Insider. In other news, the Shotover Jet tourist attraction in Queenstown marks sixty years of operation, having carried more than 4.6 million passengers since 1965. Owned by Ngāi Tahu since 2004, Shotover Jet operates seven jetboats and recently tested a prototype electric jetboat. Business manager Donald Boyer highlights ongoing electrification research and technical challenges, especially around weight limits. Ngāi Tahu's tourism division, employing 261 people, reported an operating surplus of $4.8 million last year. The wider Ngāi Tahu group posted $347.3 million in total revenue for 2023-24, down from the previous year. Meanwhile, a cybersecurity start-up, in-Webbed, reports finding more than 198,000 compromised credentials for Kiwi organisations for sale on the dark web. This includes more than 18,000 Government worker logins, 3,200 banking staff accounts, and 2,000 healthcare workers' credentials. Some healthcare and banking logins had recent activity, according to founder Julian Wendt. He says his findings have been shared with affected organisations and the Office of the Privacy Commissioner. Wendt's analysis shows compromised credentials are sometimes available for free as samples, while bulk lists are sold for low prices. He advises using long pass phrases to improve security. In a separate development, Treasury documents reveal broadcaster Paul Henry sought approval from Minister Paul Goldsmith to host the New Zealand version of The Chase while discussing his TVNZ board appointment. Henry asked Goldsmith if his hosting role would pose a problem, and Goldsmith replied, "Should be fine." TVNZ later announced Henry as host and board member. Officials' recommendations to reappoint at least two existing TVNZ directors were overruled, with only John Quirk reappointed out of three considered. Treasury highlighted the need for expertise in digital technology, media, and financial management on the TVNZ board, which currently has one vacancy remaining. And the New Zealand wine industry faces more than a hundred million dollars in extra tariffs after the United States increased tariffs on New Zealand wine exports from 10% to 15%. The US is New Zealand's largest wine export market, worth about $750 million annually. NZ Winegrowers' Sarah Wilson says the higher tariff now adds about $1.10 per bottle, compared to 10 cents previously. The change could add $112 million in extra tariff costs. Trade experts say New Zealand faces a disadvantage compared to competitors, with some countries subject to lower tariffs on wine exports to the US. That was Today in Business - Powered by Spark for Business - your NZ Herald daily business summary. For the best in business, subscribe to Herald Premium at nzherald.co.nz.See omnystudio.com/listener for privacy information.

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• Today in Business: August 4, 2025

  Welcome to Today in Business - Powered by Spark for Business, an experimental AI podcast by the New Zealand Herald. Each weekday, we bring you five stories, the best of the New Zealand Herald business journalism, summarised and delivered by an AI voice as an easily digestible recap. It's Monday, August 4, 2025, and here are five stories you should know about. Precinct Properties is rebranding its Auckland flexible office leasing business, previously known as Generator, to Precinct Flex. The change takes effect from August 4. Precinct Flex leases desks, rather than by the square metre, to major clients including Meta, Amazon, IBM, and HP, in places including Britomart, Wynyard Quarter, and Wellington. CEO Scott Pritchard says the new name reflects bringing the business under the Precinct umbrella. The Pipiri Lane building, formerly the Flowers Building, now includes the Halsey Traders event space and will be available from September. Precinct Flex serves around 250 businesses, including start-ups and multinational corporations. In the energy sector, Genesis Energy, Meridian, Mercury, and Contact have signed agreements to create a strategic energy reserve centred on Genesis' Huntly Power Station. The 10-year agreements, subject to Commerce Commission review, cover 150 megawatts of Huntly Firming Options and a solid fuel reserve of up to 600,000 tonnes. Genesis CEO Malcolm Johns says the deal is essential to maintaining energy security and keeping Huntly's Rankine units operational. The agreements respond to recent power supply concerns and last winter's price spikes. The Major Electricity Users' Group welcomes the move, but questions whether it is sufficient. Moving to transport, Auckland Transport is expanding its diesel ferry fleet, while private equity-owned Fullers is investing in electric boats. Fullers has added a second hydrofoiling electric vessel from start-up Vessev and continues to back electrification for operational savings. CEO Mike Horne says electric ferries are "materially cheaper to run" over time. But progress on electric ferry megachargers at Queens Wharf has been delayed. The first electric ferry is undergoing tests, and a two-level charging station now has resource consent. Fullers' financial recovery continues, with a reduced net loss and increased revenue, as Auckland's ferry electrification strategy remains mixed. In other news, ANZ group chief economist Richard Yetsenga says New Zealand's economy can absorb the impact of new 15% tariffs imposed on exports to the United States. Yetsenga says tariffs are a significant burden for affected exporters but the value of US-bound exports represents about 2% of New Zealand's GDP, making the overall macroeconomic impact manageable. Major affected sectors include red meat, dairy, medical devices, and wine, with the US accounting for around 11% of total exports. Yetsenga describes tariffs as a byproduct of global competition but says New Zealand's economic recovery is underway, supported by lower interest rates and improved growth in 2025. And Jahangir Alam has been jailed for four years in Auckland for his involvement in a two-decade immigration and identity fraud scheme, while his wife, Taj Parvin Shilpi, received 12 months' home detention due to health reasons. The couple were convicted of 40 charges after a three-week jury trial. Alam used his brother's identity to secure New Zealand residency, citizenship, and passports, and assisted with additional visa applications for family members. Immigration New Zealand general manager Steve Watson says the case demonstrates the seriousness of immigration fraud and he thanked international authorities for their assistance in the lengthy investigation. That was Today in Business - Powered by Spark for Business - your NZ Herald daily business summary. For the best in business, subscribe to Herald Premium at nzherald.co.nz.See omnystudio.com/listener for privacy information.

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• Today in Business: August 1, 2025

  Welcome to Today in Business - Powered by Spark for Business, an experimental AI podcast by the New Zealand Herald. Each weekday, we bring you five stories, the best of the New Zealand Herald business journalism, summarised and delivered by an AI voice as an easily digestible recap. It is Friday, August 1, 2025, and here are five stories you should know about. The United States has raised tariffs on New Zealand goods to 15%, up from 10%. US President Donald Trump announced the move as part of wider tariffs on more than 125 countries. The US is New Zealand's second-largest export market, buying $9 billion of goods last year. Major exporters like Fisher & Paykel Healthcare and the red meat sector are expected to be affected. Industry leaders say the higher tariff creates a competitive disadvantage for New Zealand farmers and exporters. Trade Minister Todd McClay says the increase is significant and will impact exporters' ability to pass on costs to US consumers. In other news, Auckland Council has granted consent for a $100 million development on Karangahape Road. James Kirkpatrick Group will construct an 11-story timber building with retail and office space for over 800 people. Located near the Te Karanga-a-Hape Central Rail Link station, construction is planned to start in early 2027. The project, designed by Fearon Hay architects, targets a 6 Green Star sustainability rating. An independent report estimates $135 million economic impact and 1,000 jobs during construction, with $13.3 million annually added after completion. The building replaces a previous proposal rejected by commissioners over its scale. Meanwhile, New Zealand's company reporting season begins August 12, with PGG Wrightson first to report annual results. The rural services firm is expected to show strong earnings due to agriculture sector performance. Companies in retail, construction, and hospitality face more challenging conditions, with previous profit warnings concentrated in those sectors. Mohandeep Singh from Craigs Investment Partners notes some improvement in economic activity but highlights disparities across regions and industries. Major firms like Fisher and Paykel Healthcare and Ebos, with significant international interests, are less exposed to domestic trends, while companies such as Fletcher Building and The Warehouse remain sensitive to local economic shifts. Turning to the hospitality sector, Auckland cafe chain Little and Friday has entered liquidation, following Inland Revenue action over a reported $639,000 tax debt. The Official Assignee's report shows total creditor claims of $1.4 million, with ASB Bank among unsecured creditors. Owner Kim Evans closed the last outlet in May, after earlier store closures and business challenges. Attempts to contact Evans have been unsuccessful. The liquidator is investigating the company's affairs. The hospitality sector continues to struggle with high costs and slow sales, with industry data showing flat revenues and ongoing financial pressures reported by the Restaurant Association. Finally, on the retail front, The Warehouse Group has named John Journee as its new board chair, succeeding Dame Joan Withers after the November annual meeting. Journee, currently interim CEO, will be replaced by Mark Stirton, the current chief financial officer. The appointment follows The Warehouse's recent earnings downgrade amid ongoing tough economic conditions. Journee says it is an honour to be appointed chair and thanked Withers for her leadership. Withers reflected on nine years as chair, noting both profitable growth and significant challenges. The leadership change comes as the company focuses on stabilising operations and delivering shareholder value. That was Today in Business - Powered by Spark for Business - your NZ Herald daily business summary. For the best in business, subscribe to Herald Premium at nzherald.co.nz.See omnystudio.com/listener for privacy information.

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• Today in Business: July 31, 2025

  Welcome to Today in Business - Powered by Spark for Business, an experimental AI podcast by the New Zealand Herald. Each weekday, we bring you five stories, the best of the New Zealand Herald business journalism, summarised and delivered by an AI voice as an easily digestible recap. It is Thursday, July 31, 2025, and here are five stories you should know about. Southern Cross Travel Insurance has been ordered to pay $1.1 million to the Crown after admitting it made misleading statements about premium discounts. The Financial Markets Authority found the company told customers that discounts for being Medical Care Society members, buying online, or using promo codes would apply to their entire premiums, when in fact they only applied to base premiums. The total difference in discounts amounted to $3.5 million. The breaches related to sections 21 and 22 of the Financial Markets Conduct Act. Southern Cross says it has refunded affected customers and strengthened internal processes. In other news, Auckland-based Mint Innovation is part of a consortium receiving nearly $18 million in UK government funding to launch a pilot plant recycling EV batteries for Jaguar Land Rover. Partnered with LiBatt Recycling and Warwick University, Mint will develop technology to extract lithium, nickel, and cobalt from used batteries in the West Midlands. CEO Will Barker says the plant aims for a closed-loop supply chain for critical metals. Mint, already commercially operating an e-waste plant in Sydney, has plans for further international expansion. Its Auckland research base employs 20 people, with support from New Zealand's Callaghan Innovation fund. Meanwhile, Resources Minister Shane Jones has unveiled a draft plan to double New Zealand's geothermal energy production by 2040. The strategy, launched in Taupō, aims to position New Zealand as a leader in sustainable geothermal development. Proposals include improving access to geothermal data, regulatory changes, and exploring "supercritical" geothermal technology, which could yield up to three times more energy. The Government has set aside $60 million for research, with $5 million allocated for exploratory drilling in the Taupō Volcanic Zone. Geothermal currently provides almost 20% of New Zealand's electricity generation. From our Wellington desk, more details have emerged about Adrian Orr's resignation as Reserve Bank governor. Minutes show Orr left a meeting early after expressing frustration over disagreements with Treasury about government funding for the bank. Reserve Bank chairman Neil Quigley says the board's funding view aligned more closely with Treasury. Released emails confirm Orr's frustration, but Quigley maintains Orr resigned due to these disagreements. Finance Minister Nicola Willis says she has confidence in Quigley despite calls for his resignation. The Reserve Bank and Treasury have released documents following inquiries, and the Ombudsman is reviewing complaints about the handling of information requests. Turning to markets, Meta has reported strong second-quarter results with revenue up 22% year-over-year to US$47.5 billion. The company's net profit reached US$18.3 billion, boosted by a 21% rise in advertising revenue. Daily active users across Meta's platforms, including Facebook and Instagram, hit 3.48 billion in June. CEO Mark Zuckerberg says Meta is investing heavily in artificial intelligence, with capital expenditures rising to US$17 billion for the quarter. Despite robust growth, Meta's Reality Labs division posted a loss of US$4.5 billion. Zuckerberg highlights AI advancement as a key company focus, with significant spending continuing into next year. That was Today in Business - Powered by Spark for Business - your NZ Herald daily business summary. For the best in business, subscribe to Herald Premium at nzherald.co.nz.See omnystudio.com/listener for privacy information.

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