ASB Securities Morning Brief for Monday, 27 July 2015
Monday, 27 July 2015

New Zealand Headlines

New Zealand Market Report: New Zealand shares extended their fall from a record, led by Meridian Energy, as investors remained disappointed by yesterday's smaller interest rate cut than expected. Genesis Energy and Fletcher Building declined. The S&P/NZX 50 Index fell 7.12 points, or 0.1%, to 5894.18. Within the index, 24 stocks fell, 22 rose and four were unchanged. Turnover was $90.2 million... Read more

The New Zealand dollar is heading for a 1.1 percent gain against the greenback this week as the Reserve Bank's approach to lower interest rates disappointed some investors wanting more aggression. The kiwi increased to 65.82 US cents at 5pm in Wellington from 65.87 cents last Friday in New York. It was down from 66.10 cents at 8am and 66.29 cents yesterday as weak Chinese manufacturing figures and falling commodity prices weighed on the outlook for Australia and New Zealand's exports. The trade-weighted index fell to 70.21 from 70.50 yesterday, and is heading for a 1.2 percent weekly gain... Read more

New Zealand posted its first trade deficit for a June month in six years as imports rose more than expected. Statistics New Zealand said the country had a trade deficit of $60 million in June, its first deficit for the month since 2009, and contrary to economist expectations in a Reuters poll for a $100 million surplus. It compares with a $240 million surplus for the year earlier month and a revised $371 million surplus in May... Read more

Pressure to get sign off, as process breeds suspicion. Negotiators from the US, Japan, New Zealand and nine other Pacific Rim countries could put the finishing touches on the most ambitious trade and investment deal in decades when they meet this week in Hawaii.... Read more

Trade minister Tim Groser says a legal challenge against any future government ban on foreign property buyers can’t be ruled out under the Trans-Pacific Partnersship (TPP) agreement. But he says the “real issue” is whether it could succeed... Read more

Auckland faces suburban squeeze. Council, developers and lobby group debating new rules which will allow more houses to be built... Read more

'Fatal combination' of immigrants, building shortage caused housing crisis — former Reserve Bank economist. Blunders by successive governments have led to ordinary people struggling to afford houses in Auckland, an economist says... Read more

Top Auckland real estate chief executive Peter Thompson says it's time for a register of foreign buyers in the residential housing market. Thompson - who is managing director of Barfoot & Thompson - made the call during an interview for the Herald's upcoming Mood of the Boardroom chief executives' survey... Read more

Prime Minister John Key has announced immigration policy tweaks aimed at encouraging migrants to settle outside Auckland. In a speech to the National Party's annual conference in Auckland, Mr Key said skilled migrants applying for residency would boost their bonus points - which are used to calculate whether they be approved or not - from 10 to 30 points if they had a job offer outside Auckland... Read more

The Government's incentives for new migrants to move to the regions rather than settling in Auckland are being welcomed in the provinces, and conditionally by the opposition. Immigration reforms announced by Prime Minister John Key at the National Party conference will see bonus points for skilled migrants applying for residence with a job offer outside Auckland trebled from 10 to 30 points if they to commit to a region for at least 12 months. Migrants need 100 points for a visa... Read more

Rentvesting - own here, live there.... Read more

Open Country Dairy, New Zealand's second biggest milk processor after Fonterra, has revised its forecast down sharply in the wake of the last two very weak GlobalDairyTrade (GDT) auctions. The company, which is 69 per cent owned by the unlisted food company, Talleys Group, now forecasts a farmgate milk price for 2015/6 of $3.65 - $3.95 per kg of milksolids, down from a previous forecast range of $4.70 to $4.90 a kg... Read more

Australian consortium said to be in no hurry to up their bid for A2 Milk... Read more

NZ wool prices ease in first sale of 2015/16 season amid weaker demand... Read more

The Ministry for Primary Industries expects total revenue from primary industries to drop by just 8 per cent to $35.2 billion in the year to June, despite big declines in the dairy and forestry sectors, and for the next four years to show steady export growth... Read more

NZX says it is experiencing strong support from New Zealand financial advisers for its range of Smartshares exchange-traded funds (ETFs).... Read more

Silver Fern Farms share trading suspended for capital raising... Read more

Right marketing key for expansion. Wine drinkers in China and the US will lap up what Hawke's Bay has to offer provided local vintners get their marketing right. That is the message from two top international wine judges hired by Air New Zealand to help tweak the airline's wine selection process so it appeals to their home markets... Read more

Briscoe unveils five-for-9 cash and scrip offer for Kathmandu... Read more

PledgeMe smashed through its minimum goal of $250,000 to finish its second equity crowdfunding campaign raising a total of $366,840 last night. “We are extremely happy to be able to grow crowdfunding in New Zealand with the help of our crowd,” PledgeMe CEO Anna Guenther said... Read more

Manawatu/Whanganui regional boost. Business and community leaders will join three cabinet ministers at the launch of the Manawatu/Whanganui regional growth study report in Palmerston North on Friday.... Read more

IOOF changes won't cross Tasman. IOOF in Australia has closed its My Adviser and Plan B Wealth Management financial planning services, but says there are no changes planned to its Kiwi business at present.... Read more

Chocolate lovers have rated one of New Zealand's oldest confectionery makers as the most trusted brand in the country. Whittaker's came out on top in a survey of just over 1200 people who were asked to identify the products and companies they trusted the most.... Read more

We are pleased to announce that Sir Bob Harvey has been appointed patron of the SkyPath Trust.... Read more

Health and safety reforms a backwards step for NZ workers: Labour... Read more

An employment lawyer is warning that firms paying their staff a bonus if they take fewer sick days may be in breach of the Holidays Act.... Read more

A logging factory in Nelson has been fined over $50,000 after one of its workers was injured while trying to clear a log jam on a conveyor belt by hand. Nelson Pine Industries Limited was sentenced at the Nelson District Court yesterday, for failing to take all practicable steps to ensure the safety of an employee while at work... Read more

Opinion - Oyvinn Rimer: Falling dairy prices: winners & losers... Read more

Opinion - Fran O'Sullivan: TPP's soft cop has hard deals to make. Trade Minister Tim Groser and Deputy US Trade Representative Wendy Cutler got into Hawaii early last weekend to set the scene for a high-powered ministerial meeting to thrash out the bones of the final Trans-Pacific Partnership (TPP) deal... Read more

Opinion - Gareth Morgan: One dumb regulation is driving up the cost of your house and your flat white... Read more

Opinion - Gareth Morgan: Insight into the negotiations between Crown and iwi leaders over the fresh water resource... Read more

Opinion - Christopher Niesche: Why Chinese buyers are good. Sydneysiders awoke on Thursday to the news that the median house price in Australia's largest city had climbed above a million dollars... Read more

Opinion - Richard Meadows: Budget Buster: Financial fasting for 'Austere August'... Read more





Australian Headlines

Australian Market Report: The Australian share market is tipped to continue its downward slide and open the week 45 to 50 points lower following falls in global stocks. AMP Capital chief economist Shane Oliver predicts a rough start on Monday after both European and US shares dropped about one per cent on Friday... Read more

The Australian dollar has dipped to its lowest level in more than six years on the back of weak Chinese manufacturing data and a note of caution from a key ratings agency. The currency traded as low as US72.69c by mid afternoon, down from around US73.54c earlier in the session. At 5pm, the local currency was buying US73.02c... Read more

Australia's leaders agree to end GST-free online goods... Read more

Labor says adopting the "Warren Buffett rule" to stop Australian high income earners from avoiding their tax obligations will be enormously popular, but won't commit to it just yet. The ALP national conference has agreed only to consider an Australian version of the rule - named after by US billionaire Warren Buffett and which proposes imposing a minimum 30 per cent rate on people making more that $US1 million a year... Read more

#TalkAboutIt: Five ways the Trans-Pacific Partnership (TPP) could affect you. Consumer group Choice has warned that Australians could be worse off under the proposed Trans-Pacific Partnership, as trade ministers meet next week in Hawaii to try to finalise the agreement.... Read more

A popular theory that communist rule in China has started to collapse is dead wrong, former Australian prime minister Kevin Rudd said. Mr Rudd, speaking during a panel discussion on US TV news channel CNN, bluntly rejected respected China expert David Shambaugh's argument Chinese communist rule was in its final phase... Read more

Time to look at super, negative gearing, GST, bracket creep: KPMG. Superannuation benefits going to the wealthy should be restricted, and the tax perks associated with negatively geared investment properties should also be reduced, big-four accounting firm KPMG has said in submission to the Abbott government's tax review... Read more

Troubled Pilbara miner Atlas Iron will resume trading shares from Monday.... Read more

Peninsula Energy receives Buy, $0.04 price target from RFC Ambrian... Read more

Rinehart lieutenant sees iron ore back above $US80: report. Hancock Prospecting executive director Tad Watroba expects the iron ore price to rebound back to $US80 a tonne as the company prepares to add more supply to an already flooded market.... Read more

More Queensland coal jobs are in doubt after global mining company Anglo American said it would sack 53,000 of its workers around the world and sell off a swag of its assets as the mining downturn hits its lowest point... Read more

Axiom Mining to outline financing for Isabel Nickel... Read more

Heron Resources has secured an equity package of up to $20 million from Greenstone Resources to advance development of its Woodlawn zinc-copper project in New South Wales... Read more

Australia’s richest woman has taken another big step toward becoming its cattle queen with the purchase of iconic Kimberley station Fossil Downs. Mrs Rinehart won a race to secure Fossil Downs which attracted unprecedented interest from some of the biggest names in the Australian business world, including Kerry Stokes and Andrew Forrest... Read more

Amazon: The $340b tech giant stalking Australia. Amazon is much, much more than a bookseller. The question is, how long will Australians have to wait to fully experience it? The e-commerce giant reported quarterly results this morning Australian time and Wall Street loved them. In after-hours trading, the stock soared by more than 17 per cent, pushing the company's market value beyond $US250 billion ($340 billion) and - in a nice piece of symbolism - above storied US brick and mortar retailer Wal-Mart... Read more

MyFiziq Limited is seeking up to $6 million through an initial public offering priced at $0.20 to commercialise its smartphone app that tracks changes to a person’s body shape. This is underwritten by KTM Capital Pty Ltd... Read more

Applabs Technologies non-executive director Rocco Tassone has further increased his indirect interest by buying about $11,530 worth of shares in on market purchases. His indirect interests acquired 49,708 shares at $0.0935 each, 8,571 shares at $0.093 and 65,429 shares bought at $0.093... Read more

Suncorp backflips on CTP price after years of seeking a hefty rise... Read more

Shares in migme rose after the social media and entertainment company struck a partnership with Sony Music India. Migme hopes to use the partnership to expand its artist engagement program in India... Read more

Telstra NSW Small Business Awards 2015: Health Food company Amazonia claims top gong... Read more

Shares in fresh produce giant Costa Group have fallen on its Australian stock market debut but it's unlikely to dismay the company, an analyst says. Australia's largest horticultural company began trading at $2.23 at 1200 AEST on Friday, two cents below the $2.25 price investors paid as part of its initial public offering. Costa shares finished their first session worth $2.16, down nine cents, or four per cent... Read more

CFMEU at centre of royal commission. Construction union officers are expected to front the royal commission into union corruption this week, including one official who has been the subject of blackmail allegations. CFMEU ACT organiser John Lomax on Friday became the second person to be charged with blackmail in relation to the commission's hearings in Canberra... Read more

Alcohol, junk food next plain packaging targets, lawyer warns. Regulators in Australia could look to introduce graphic warning labels on packaging of alcoholic beverages, soft drinks and food that is unhealthy, a senior partner from Herbert Smith Freehills warns. ... Read more

Opinion/Analysis - Bill Evans: Weekend Economist: Stevens' surprise. This week RBA governor Glenn Stevens gave an important speech to the economics community. ... Read more

Opinion/Analysis - Four tax policies Australian house prices rest on... Read more

Opinion - Keith Orchison: Time for a sensible conversation about power costs... Read more

Analysis - Nassim Khadem: GST debate explained: why the Abbott government's talking about a tax rise no one wants. We've been told we're heading for ever-growing deficits. Is the problem with revenue or expenditure? Both. As a number of leading economists have said, Australia doesn't only have a spending problem. It also has a revenue problem... Read more





International Headlines

North/South Americas Market Report: North and South American markets finished mixed to lower as of the most recent closing prices. Shares in Brazil fell as the Bovespa dropped 1.13%. The S&P 500 lost 1.07% while the IPC in Mexico closed unchanged... Read more

European Market Report: European markets finished broadly lower on Friday with shares in Germany leading the region. The DAX is down 1.43% while London's FTSE 100 is off 1.14% and France's CAC 40 is lower by 0.58%... Read more

Asian Market Report: Asian markets finished broadly lower on Friday with shares in China leading the region. The Shanghai Composite is down 1.29% while Hong Kong's Hang Seng is off 1.08% and Japan's Nikkei 225 is lower by 0.67%... Read more

Oil prices have fallen for a third straight day as ample crude supplies continued to pressure sentiment and a sharp drop in Chinese manufacturing renewed concerns about demand. US benchmark West Texas Intermediate (WTI) for September delivery fell 31 cents to $US48.14 ($A65.45) a barrel on the New York Mercantile Exchange on Friday, the lowest level since late March. Brent North Sea crude for September, the global benchmark, closed at $US54.62 a barrel in London trade, down 65 cents from Thursday's settlement.... Read more

A blizzard of gold selling. Gold stocks suffered a full-blown panic this past week! This exceedingly-rare magnitude of selloff was triggered by extreme futures shorting intentionally executed to force a flash crash in gold... Read more

China's economy is getting sick. Will it infect America?... Read more

Nike says trade will help it hire 10,000 people in the U.S.... Read more

Amazon’s share price has risen 26,939% from its first trading day... Read more

Donald Trump tops GOP field in New Hampshire, second in Iowa: poll... Read more

Israeli drug maker Teva Pharmaceutical Industries Ltd. is in talks to combine with Allergan PLC’s big generic-drug business, in a move that would further consolidation in the health-care industry and likely mean the end of Teva’s pursuit of another acquisition... Read more

Greek bailout talks pushed back by a few days on logistics: official... Read more

Labour leadership contender Jeremy Corbyn calls on Labour to offer a 'true alternative' to Tory austerity... Read more

Britain will hold a referendum on its membership of the European Union within the next 12 months, the Independent on Sunday said, as the Prime Minister believes pressing ahead with a vote gives the best chance to win concessions from the rest of Europe... Read more

Federal regulators are close to hitting Fiat Chrysler Automobiles NV with a record $105 million fine for recall lapses covering millions of vehicles, said people familiar with the matter, adding to mounting scrutiny of the auto maker's safety practices... Read more

Merged entity to compete with Samsung, Ericsson. The proposed purchase of Alcatel-Lucent by Nokia has been approved by the European Commission after it found the deal would not raise competitive concerns. ... Read more

Ex-Deutsche Bank official Jain cleared of misleading regulators over Libor rigging... Read more

Deutsche Börse to buy trading platform 360T... Read more

Publishing company Pearson has confirmed plans to sell its 50% stake in the Economist Group. The statement from the firm came just days after it announced the sale of the Financial Times to Japan's Nikkei... Read more

German airline Deutsche Lufthansa AG plans an overhaul of its ticketing system that will require passengers to pay extra for checked baggage, seat reservations and flight changes or cancellations, German daily newspaper Sueddeutsche Zeitung reported Saturday... Read more

Former Portuguese bank boss under house arrest. Ricardo Salgado, the former boss of the Portuguese bank Banco Espirito Santo (BES), has been placed under house arrest after questioning over the bank's collapse... Read more

The Russian agricultural watchdog Rosselkhoznadzor may ban imports of flowers and other plants from Germany, the Czech Republic, Slovakia, Italy, Poland, Lithuania, and Latvia, on the grounds that the phyto-sanitary services of these countries certify flowers grown in the Netherlands and do not guarantee security of their shipments to Russia, a Rosselkhoznadzor source told Interfax on July 25... Read more

Bad news has has piled up for Brazil's economy, with the real plunging to its lowest level against the US dollar in 12 years and analysts warning the home of samba will need years to recover its economic rhythm. For President Dilma Rousseff, weakened by government approval ratings of just 7.7 per cent, things appear to be falling apart... Read more

A new £3m fund has been set up to allow whisky connoisseurs in China to invest in some of Scotland's rarest drams. The fund, generated by members of the Single Malt Club China (SMCC), will be used to buy rare and valuable malts for the Chinese market. The initiative was announced by First Minister Nicola Sturgeon as she arrived in China for a trade mission... Read more

Opinion - Chuck Jaffe: Here’s why Apple can take a bite out of your funds and ETFs... Read more

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