Statement by Reserve Bank Acting Governor Grant Spencer: The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 1.75 percent. Global economic growth has continued to improve in recent quarters. However, inflation and wage outcomes remain subdued across the advanced economies and challenges remain with on-going surplus capacity. Bond yields are low, credit spreads have narrowed and equity prices are near record levels. Monetary policy is expected to remain stimulatory in the advanced economies, but less so going forward. The trade-weighted exchange rate has eased slightly since the August Statement. A lower New Zealand dollar would help to…

If New Zealand raises its education outcomes over a period of 20 years to a level comparable with Finland, it can generate a 204 percent increase in GDP worth an additional $US258 billion, NZTech chief executive Graeme Muller says. Technology is driving changes in the way Kiwis work and the skills required for work, he says. He was commenting today on the open letter 100 leading New Zealand companies and organisations have just published, saying that not all students wanting to work in tech have to go to university. Muller says while education is critical for developing specific skills, the…

Acquires CommInsure and Sovereign, enters long-term distribution partnership with CBA and ASB AIA announced today that it has reached an agreement to acquire CommInsure in Australia and Sovereign in New Zealand. It will also enter into 20-year strategic bancassurance arrangements with Commonwealth Bank of Australia (CBA) in Australia and ASB Bank (ASB) in New Zealand. Subject to regulatory approvals, the acquisition is expected to be completed in 2018. The acquisition and partnership agreement will deliver a range of important benefits to AIA and our stakeholders, including: It will make AIA the leading life insurer in both Australia and New Zealand’s…

The Reserve Bank today published a revised outsourcing policy for large banks. “The revised policy aims to ensure that a bank can continue to operate in a situation where a key service provider fails,” Deputy Governor Grant Spencer said. The revision of the outsourcing policy follows a review by the Reserve Bank, which concluded that greater clarity of the policy and more consistency of application by banks would be desirable to ensure that they can continue to provide required services in times of stress. “The revised policy sets requirements that banks need to meet when outsourcing particular functions and services,…

FreshPlaza | A tech company that helps farmers improve crop yields will list on the Australian Securities Exchange today. CropLogic has raised the $8 million it sought in an IPO, and said it was even offered $1 million on top of that during the offer period. Forty million ordinary shares will be issued at 20 cents each, and the business will have a market cap of $25 million. The New Zealand “internet of things” agriculture tech company, established in 2010, uses on-field sensors connected via wireless and satellite channels to collect data such as soil moisture and temperature, and rainfall,…

Have you ever had a great idea and wished you could figure out how to get it to market, but you weren’t really willing to “bet the farm” on it? As someone who has been in that position on several occasions, I can share a few insights. First, I’ve never been tempted to contact one of those firms that markets heavily about how they help novice inventors develop ideas and provide lots of support at every step of the way. I’ve generally assumed, perhaps unfairly, that they’re much more interested in the fees they’ll collect than in really helping me…

NBR readers back the scrapping Callaghan innovation – but Labour’s position still unclear The Taxpayers’ Union is calling on Labour to confirm that a Labour-led Government would scrap Callaghan Innovation's 'corporate welfare' grants after an NBR subscribers poll found more than 57% of readers want the schemes to be scrapped (with a further 31% backing a reduction in the corporate welfare regime). Executive Director of the Taxpayers' Union Jordan Williams says, “NBR’s poll proves what we’ve been arguing. The majority of the business community want the Callaghan Innovation, ‘hand picking of winners’ grants system scrapped.” "This result doesn't come as…

Yesterday’s release of Treasury’s Pre-Election Economic and Fiscal Update (PREFU) provides a fairly sobering forecast of our ability to grow wealth in and for New Zealand, say the New Zealand Manufacturers and Exporters Association. NZMEA Chief Executive, Dieter Adam says, “We have to face the reality of our lack of economic development in New Zealand. And now is the right time to challenge New Zealand’s leading parties to tell us what they are going to do to push our economy towards a more prosperous future for everyone.” “For the next four years (2018 to 2021) Treasury forecasts a decline in…

Auckland Airport has today announced its financial results for the 12 months ended 30 June 2017. Sir Henry van der Heyden, Auckland Airport’s chair, says, “The 2017 financial year was another strong year of growth right across our business with the company continuing to focus on upgrading its airport infrastructure, growing and supporting tourism and providing the best possible customer experience during a time of significant change.” “To help accommodate the ongoing increase in passengers and aircraft, we continued to spend more than $1 million every working day on our core airport infrastructure. There are now 44 aeronautical projects underway…

Paris – Total is pleased to announce that the Boards of Total and A.P. Møller – Mærsk have both approved the acquisition of 100% of the equity of the E&P company Maersk Oil & Gas A/S (Maersk Oil), a wholly owned subsidiary of A.P. Møller – Mærsk A/S, by Total in a share and debt transaction. Under the agreed terms, A.P. Møller – Maersk will receive a consideration of $4.95 billion in Total shares and Total will assume $2.5 billion of Maersk Oil’s debt. Total will issue to A.P. Møller – Maersk A/S, 97.5 million of shares, based on the…

Air New Zealand has today announced earnings before taxation for the 2017 financial year of $527 million, compared to $663 million in the prior year - the second highest result in the airline’s history. Net profit after taxation was $382 million. Chairman Tony Carter praised the strong result, acknowledging the airline’s staff for their continued focus on driving profitable network growth during a period of significant new competition. A 2017 final fully imputed dividend of 11.0 cents per share has been declared, an increase of ten percent on the prior year, bringing the full year declared ordinary dividends to 21.0…