Best of Business

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.

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.

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.

The world's leading tech giants - Microsoft, Amazon, Alphabet and Meta - all recently reported their latest earnings. All of these companies surpassed investor expectations, but one clearly came out on top. Fisher Funds expert Sam Dickie explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

Hopes some relief for businesses will be on the cards in a public meeting to discuss the future of Mount Maunganui this evening. Mauao has been closed to the public ever since a landslide killed six holiday-makers almost 100 days ago. The Mt Maunganui Ratepayers, Residents and Retailers Association expects discussions tonight about allowing one route to the top of the mount. President Michael O'Neill says businesses rely on the patronage of people using the mount. He explained the same goes for people using the campground, hot pools, and boat ramp - all of which are closed.  LISTEN ABOVESee omnystudio.com/listener for privacy information.

The recent burst of bad weather and growing concerns about inflation have prompted Kiwis to worry about their insurance premiums going up. Insurance premiums have dropped back down and more buffers have been built since Cyclone Gabrielle, but concerns have been raised. NZ Herald Wellington business editor Jenee Tibshraeny explained further. LISTEN ABOVESee omnystudio.com/listener for privacy information.

AI seems to be having a positive impact on Kiwi businesses.  A new report from 2degrees and Deloitte suggests small and medium businesses using high levels of AI made around $400,000 more in 2025 than comparable non-users.  Larger businesses averaged around $59.1 million more, with 82% of firms using some form of AI.   2degrees Chief Business Officer Andrew Fairgray told Mike Hosking the ones getting the best results are being disciplined and going deep.  He says they’re not just redesigning existing workflows with the addition of AI, they’re stepping back and looking at what they need to do going forward, and how they can leverage AI as an enabler.   LISTEN ABOVE See omnystudio.com/listener for privacy information.

New Zealand and India have signed a landmark FTA - which is set to slash tariffs on Kiwi exports to India. The agreement will now be examined by Parliament’s Foreign Affairs, Defence and Trade Committee before legislation is introduced to bring it into force.  The Country's Jamie Mackay explains how Kiwi farmers will benefit from this arrangement. LISTEN ABOVESee omnystudio.com/listener for privacy information.

The popularity of American sports could keep growing here - as streaming giants compete for viewers. Disney Plus is pushing its ESPN sports offering across Australasia with a new lower-cost subscription plan. Media commentator Duncan Greive says younger audiences are increasingly turning to American sports on global platforms over watching traditional sports like rugby and cricket. "The had a moat as wide as the Tasman around them in terms of TV and radio - now with YouTube and TikTok, rugby doesn't have the kind of hold over them."  LISTEN ABOVESee omnystudio.com/listener for privacy information.

Here's a small myth-busting exercise for you – things aren't as bad as you might think.  Business sales from small and medium businesses are up and by quite a lot. They're up 21% in fact.  Why would you buy a business at a time like this?  You know why. Because life goes on and people have dreams and those dreams don’t get buffeted about by fiscal uncertainty.  There were 27,000 confidentiality agreements signed in the past year. That's a lot of agreements.  For an average of $800,000 you can buy your dream. Values are up, listings are up, demand is up (it's up more than listings), so prices are holding and the returns, multiple, is up.  So a lot of people are doing fine, thank you very much.  This is a nation of small businesses and all these numbers show is nothing changes that. Not a war, not petrol, not an election, and not the weather.  If you ran a poll and asked, "is it a good time to buy a business", like they ask, "is it a good time to buy a major household item", you know what the answer would be.  And yet life goes on.  Now, for all the New Zealand First supporters about to text me and say it's all Indians, save your 20 cents.  It isn't.  It's another myth busted. 9.7% are Indians, 15% are Asian (so that will be Chinese and Koreans, maybe Filipinos), which leaves 67% identifying as European.  So the idea this is all about migrants buying jobs is not the tsunami you thought it might be.  I think these stats are a microcosm, or a small example of the disconnect between studies, surveys, polls, politics, news headlines, and what is really going on.  The rhythm of New Zealand life gets buffeted about by issues of the day; the petrol price, the war, the spend. And why wouldn’t it?  But if you believed the polls and the stats and the national conversation, as driven by the headlines, you'd think we were at home huddled in a corner waiting for the end.  Yet we are not. We are buying businesses, planning the future, taking the risks and, God forbid, having a good time.  What a shock. See omnystudio.com/listener for privacy information.

Some experts have raised concerns that the Government's fuel response is not proactive enough. A month ago, the Government detailed our response phases and what would trigger a move between phases - but the country remains in level one with no restrictions.  Wise Response Society chair Nathan Surendran says margins are getting eroded and the economic outlook is worsening as a result. "We should at least be at phase two, we should be saving, we should be conserving fuel - it takes time for people to adapt, they have to think through what they can actually do without." LISTEN ABOVESee omnystudio.com/listener for privacy information.

Christchurch bars, restaurants and retailers are preparing for a bumper weekend with the city's new stadium playing host to its first crowds.  One NZ Stadium hosts Super Rugby’s Super Round over the next three days, with the Crusaders taking on the Waratahs in the opening match tonight.  Recent alcohol law changes mean hospitality venues can now open past midnight and sell alcohol without serving meals.  Business Canterbury Chief Executive Leeann Watson told Ryan Bridge that the stadium will bring people into the city and have them spend locally, which is exactly what they want.   LISTEN ABOVE See omnystudio.com/listener for privacy information.

The Finance Minister says politicians should see our downgraded Moody's economic outlook as a wake-up-call, as she pieces together her Budget. The rating agency's moved our designation from stable to negative, but reaffirmed our triple A credit rating. Nicola Willis says she's got a clear set of goals for the 2026 Budget - and she's committed to sticking with them even during the ongoing crisis. "The most urgent thing I'm having to do, pretty much every day at the moment, is say no to spending more...many New Zealanders are saying cut the petrol tax, do this for us, do that for us - I get it."  LISTEN ABOVESee omnystudio.com/listener for privacy information.