ASB Securities Morning Brief for Tuesday, 30 June 2015
Tuesday, 30 June 2015

New Zealand Headlines

New Zealand Market Report: New Zealand shares fell, pushing the benchmark index to a five-month low, as the local bourse joined a global sell-off as talks to resolve the Greek debt crisis failed over the weekend. Pacific Edge, Xero and Air New Zealand led a broad-based decline. The S&P/NZX 50 Index fell 49.63 points, or 0.9 percent, to 5705.81. Within the index, 42 stocks fell, five rose and two were unchanged. Turnover was $91.5 million... Read more

The New Zealand dollar rose from a five-year low but may yet resume its slide as the deadline looms for Greece to make a debt repayment it can't afford after creditors rejected Prime Minister Alexis Tsipras's 11th-hour request for time to hold a referendum. The kiwi traded at 68.32 US cents as at 5pm in Wellington, having earlier fallen as low as 67.90 cents, the lowest level since June 2010, from 68.42 cents at the New York close. The trade-weighted index dropped to 71.70 from 71.93 on Friday... Read more

Currency traders brace themselves for falling NZ dollar... Read more

Kiwis' confidence in job market falls to a 2-year low. New Zealanders grew more downcast about the state of the labour market in the second quarter, with a softer outlook for wage growth weighing on confidence. The Westpac McDermott Miller employment confidence index fell 5.7 points to 102.8 in the June quarter, the lowest in two years... Read more

Social housing programme open to overseas buyers. More controversy has hit the government’s social housing reform programme with news that state house sales could be open to Australians too... Read more

An Australian housing provider that is considering buying state houses here could use any money generated on projects across the Ditch, Prime Minister John Key says. Queensland charity Horizon Housing, which provides affordable houses for sale and social houses for rent, could be in the market to buy up to 500 New Zealand state homes... Read more

Blue Sky Meats annual profit sinks 36%, under-used plant blamed... Read more

QROPS now trapped in KiwiSaver funds. People who have moved their UK pension to KiwiSaver schemes are now trapped in their current funds, following a decision from the UK tax department.... Read more

'The government may well move to auto-enrolment for everybody' — Key on KiwiSaver... Read more

BNZ says it is well ahead of target with its re-entry into the mortgage adviser market. “We are well beyond where we thought (the numbers) would be,” says Mel Cadman, who is heading up the bank's push into third party distribution... Read more

Low dairy prices have not dampened demand for palm kernel - a supplementary feed which has the effect of "turbo-charging" milk production. Data from Statistics NZ released yesterday showed palm kernel imports came to 232,971 tonnes in May, up from 141,421 tonnes in April and up from 136,452 tonnes in May last year... Read more

Silver Fern told to take another look at reform in meat sector. Farmer shareholders of Dunedin-based Silver Fern Farms say they are close to achieving a 5 per cent voting threshold required to call a special meeting to get the company to take another look at meat industry reform before it scouts around for fresh capital... Read more

Kiwi IT exports to UK jump to $60 million... Read more

Smiths City profit boosted by earthquake insurance payment... Read more

Lance Wiggs’ Punakaiki Fund has reached its $2 million target on equity crowdfunding site Snowball Effect. Funds will be used to invest in new companies as well as companies Punakaiki has already invested in. Over the next year, it is estimated between 20-50% of the investments made by Punakaiki Fund will be in these ‘follow on’ type investment rounds, although this may be subject to change... Read more

Leadership changes continue at SeaDragon, the Omega 3 fish oils company, with a number of new directors being appointed to add production and supply chain management experience ahead of its move into commercial production. The company’s shares are currently trading at 1.5 cents and have tumbled 32 percent this year.... Read more

Tiwai Point Aluminium Smelter electricity contract deadline expires on Wednesday... Read more

Flat demand sees Huntly unit retired. Genesis Energy, the country's biggest energy retailer, will permanently retire a coal/gas-fired unit at the Huntly Power Station which has been in storage as renewable and thermal generation provide more than enough electricity to meet customer demand. Genesis shares closed down 1c yesterday at $1.74.... Read more

Jetstar meets with Hamilton leaders ahead of domestic service decision ... Read more

Kiwis poor at making ideas pay: study. Getting a government research and development grant almost doubles the likelihood a company will introduce a world-first innovation, but there is also evidence Kiwi firms are not good at commercialising clever ideas, a study shows.... Read more

Pushpay gets $960,000 R&D grant from Callaghan to help scale up payment platform... Read more

The results of a probe into retirement village residents' complaints and disputes with their owners and managers will be revealed next month and could lead to a shake-up of the system. Jane Luscombe, external relations manager at the Commission for Financial Capability, said a study of major issues had been conducted... Read more

A prominent Wellington businessman has partnered up with a New Zealand coffee business to set up in China. Mojo Coffee, which was founded in Wellington in 2003, is set to open in the central Chinese city of Xi'an... Read more

Some families are forgoing breakfast due to the cost of milk, while a glass of it is a luxury in others, social agencies say. The average price for two litres of milk has jumped from $3.19 in May 2013 to $3.45 in May this year, Statistics New Zealand figures show. The increase has sparked a war of words at Parliament and claims that New Zealand, despite being a major milk exporter, has higher prices than Australia and the UK... Read more

Waiariki Institute of Technology has been ordered to pay $40,000 after a tutor was seriously injured during a forest operations course. WorkSafe said its investigation into the incident, which occurred on August 26 2014, identified a number of health and safety breaches. The tutor suffered fractures to the right shoulder, lower back, a leg, and five ribs when he was crushed by a tree he was felling... Read more

Opinion - Jason Krupp: Trusting the transformative power of prices. The NZ Initiative's Jason Krupp says it would be a welcome change to hear someone who is not an economist say: 'Why not let prices do the work?'... Read more

Opinion - Raiko Shareef: The Chinese Yuan & its influence on NZ Monetary Policy. In December 2014, the Reserve Bank of New Zealand (RBNZ) expanded its preferred measure of the New Zealand Dollar. From an existing five-country basket, the Trade Weighted Index (TWI) now includes the currencies of 17 different countries. The TWI-5 was based on out-dated historic weightings of NZ’s key trading partners... Read more

Australian Headlines

Australian Market Report: Australia's share market has suffered one of its biggest fall in years, with nearly $40 billion wiped out as Greece inches towards a default on its debt and a potentially catastrophic exit from the euro zone. The S&P/ASX 200 plunged 2.2 per cent to 5,422.5, its lowest level since January, as the market got caught up in a global sell off stemming from the collapse of debt negotiations between Greece and its European Union and International Monetary Fund creditors... Read more

The Australian dollar has recovered from the two month low hit in response to the growing Greek debt crisis, but is expected to remain under pressure as the saga drags on. The local currency was worth 76.59 US cents at 1700 AEST, down from 77.02 cents on Friday. It fell as low as 75.87 US cents early on Monday, its weakest level since April 15, before recovering... Read more

Australia has become a founding member of the Asian Infrastructure Investment Bank, a Chinese initiative aimed at improving living standards for millions of people across the region... Read more

Aussie super funds slip on Greece’s debt crisis... Read more

Australian Greek community prepares exodus, sends money home. Australian Greek communities are preparing for an influx of migrating relatives as Greece's economy crumbles and its banks bolt their doors... Read more

The central bank of central banks has warned its members that ultra-low interest rates may be doing more harm than good. Building on a warning issued last year, this year's Bank for International Settlements (BIS) annual report warns that low interest rates do far more to boost house prices than they do to lift economic growth... Read more

Mines Minister Bill Marmion has talked up Gold Road Resources’ Gruyere project east of Laverton on a site visit today. Mr Marmion said Gruyere could be the biggest WA gold find in a decade... Read more

Shares in New Standard Energy soared after the company announced the sale of its US and Cooper Basin assets to Sundance Energy in a deal worth $24 million. Shares in New Standard were up 0.6 cents, or 120 per cent, to 1.1 cents at 11.40am.... Read more

Northern Iron has this morning been granted a trading halt by the ASX, with its shares placed in pre-open... Read more

ASX-listed property group Mirvac has expanded its development pipeline in southeast Queensland, securing a 481ha parcel for a new masterplanned community in Brisbane’s southwest growth corridor... Read more

Shares in law firm Slater and Gordon have plummeted another 25 per cent as investors dump the stock over problems with its accounts. The company on Monday shocked the market with the admission it had made mistakes in the reporting of cash receipts from its UK business going back to the 2011/12 financial year... Read more

Emeco has abandoned plans to takeover Rentco and ended talks with Orionstone over a potential merger. The heavy equipment rental company announced this morning it could not reach an agreement with rival Orionstone on a merger proposal that represented fair value for shareholders. Emeco shares were off 0.2 cents, or 2.7 per cent, to 7.2 cents at 9am.... Read more

More jobs are expected to go at GWA Group as the building fixtures supplier undertakes its last and final phase of restructuring. GWA shares closed 12 cents lower at $2.23.... Read more

Billboard operator QMS Media has enjoyed an exceptional share market debut despite a broad market selloff... Read more

Telstra faces a 10 percent wholesale price drop... Read more

Streaming service Quickflix has changed its business model to become a reseller of subscription video on demand... Read more

iBosses Corporation is raising up to $5 million through the issue of up to 25 million shares priced at $0.20 each to review and evaluate potential new assets as well as expand its existing business centres. The Singapore-based company provides training and consultancy products and services for entrepreneurs... Read more

Imugene issuing 5 million options to non-executive director Dr Axel Hoos... Read more

Amcom veteran and chief executive officer Clive Stein will end his 16-year career with the telecommunications company today as he steps down following Amcom's sale to Vocus. Stein's departure was foreshadowed in the pair's scheme of arrangement to merge last December... Read more

Fatfish Internet in placement to sophisticated investors. Fatfish Internet Group will make a capital raising in the form of a placement to professional and sophisticated investors. The ASX has granted the company a trading halt to prepare, with its shares placed in pre-open... Read more

Condoms and protective gloves maker Ansell is launching a major cost cutting program as it faces global economic uncertainty... Read more

Transport outfit Heavy Haulage Australia, which starred on pay television show MegaTruckers, has gone bust only 18 months after taking a big bet on oil and gas. Voluntary administrators from Ferrier Hodgson were called in overnight for Brisbane-based HHA, which has almost 120 staff and almost 70 prime movers.... Read more

Opinion - Elizabeth Knight: No Greek tragedy for Australia. Australia is as distant in an economic sense as it is in geography from the financial tsunami in Greece... Read more

Opinion - Ian Verrander: TPP debacle: don't expect this free trade agreement to live up to its name. Who would fall for a brazen scheme that strengthens protection under the guise of free trade? Maybe it's worth looking at the supposed free trade deal we signed with America a decade ago, writes Ian Verrender... Read more

International Headlines

U.S. Market Report: U.S. stocks retreated, with the Standard & Poor’s 500 Index dropping the most since March, amid mounting concern about fallout from a potential Greece exit from the euro area. The S&P 500 Index sank 1.6 percent to 2,068.04 at 2:21 p.m. in New York, a more than two-month low. The Dow Jones Industrial Average lost 274.42 points, or 1.5 percent, to 17,672.26 and erased its gain for the year. The Nasdaq Composite Index fell 1.8 percent. The Chicago Board Options Exchange Volatility Index surged 30 percent to 17.71, its biggest increase of 2015... Read more

North/South Americas Market Report: North and South American markets are sharply lower today with shares in Brazil off the most. The Bovespa is down 2.37% while U.S.'s S&P 500 is off 1.67% and Mexico's IPC is lower by 1.12%... Read more

European Market Report: European markets finished sharply lower today with shares in Germany leading the region. The DAX is down 3.56% while France's CAC 40 is off 3.41% and London's FTSE 100 is lower by 1.97%... Read more

Asian Market Report: Asian markets finished sharply lower today with shares in China leading the region. The Shanghai Composite is down 3.34% while Japan's Nikkei 225 is off 2.88% and Hong Kong's Hang Seng is lower by 2.61%... Read more

Oil prices fell in Asia Monday, tracking the sell-off in global equity markets on fears of a Greek debt default, analysts said. US benchmark West Texas Intermediate for August delivery fell 90 cents to $58.73, while Brent crude for August eased 82 cents to $62.44 in afternoon trade.... Read more

Oil prices hit as Greek crisis pummels markets... Read more

The U.S. housing recovery is thriving, and home sellers have the signed contracts to prove it... Read more

6 things U.S. investors need to know about Greece right now... Read more

Apple Tops Barron’s List of Respected Companies. Apple is No.1 in our annual ranking. Disney, Berkshire Hathaway, Visa and Google are close behind.... Read more

Two months after the Apple Watch launch, the leading wrist-based fitness tracking company is doing just fine. The Apple Watch was expected to be a disaster for companies like Fitbit. It hasn’t been. ... Read more

The private equity giant Kohlberg Kravis Roberts & Company has agreed to pay nearly $30 million to settle accusations by the Securities and Exchange Commission that it passed on more than $17 million in “broken deal” expenses to its investors in breach of its fiduciary duty. Over six years until 2011, the private equity firm incurred $338 million in expenses related to unsuccessful buyouts, the S.E.C. said on Monday... Read more

Coal stocks climb as Supreme Court strikes down EPA regulation... Read more

NBC Universal, a unit of Comcast said Monday it will sever its ties with Donald Trump in the wake of "derogatory statements" he made regarding immigrants.... Read more

The U.S. Supreme Court on Monday rejected bids by BP Plc and Anadarko Petroleum Corp to avoid penalties under federal pollution law in connection with the 2010 Gulf of Mexico oil spill. The high court left in place a June 2014 ruling by the New Orleans-based 5th U.S. Circuit Court of Appeals, which said the companies were liable for civil penalties under the federal Clean Water Act... Read more

General Electric Co. has agreed to sell its U.S., Mexico, Australia and New Zealand fleet businesses for $6.9 billion, with a separate smaller deal in the works to unload its business in Europe, marking the latest steps in the industrial group's retreat from banking... Read more

Walmart CEO on wages: We are a ladder of opportunity. (video only)... Read more

U.S. top court declines to hear Google appeal in Oracle Java fight... Read more

Eurozone consumer confidence steady in June... Read more

Which countries are most exposed to Greece? Breathe. Grexit will probably not push your bank to its knees. European markets were hammered on Monday, with the Greek markets closed altogether, after Greece slid rapidly toward default and exit from the eurozone... Read more

Greece: Is there a way back from the brink?... Read more

Greek contagion unlikely: Germany. German finance minister Wolfgang Schaeuble has shrugged off the impact of Greece's crisis on other countries, emphasizing that the eurozone and its banking system are more robust today than a few years ago... Read more

Crisis-Ready Europe Urges Tsipras to Step Back From Brink... Read more

Here's What Analysts Are Saying About Greece. Go long analyst research... Read more

The European television rights for the Olympic Games have been awarded to Eurosport and its parent channel in a 1.3bn euros (£922m) deal. It means the BBC could lose coverage of the Games in the UK from 2022, although Eurosport's parent company Discovery may lease back some of the rights. The European rights are currently split up, country by country.... Read more

Edrington Group sees profits fall after writedown. The spirits group behind The Famous Grouse and The Macallan has reported a sharp fall in pre-tax profits, after a £239m writedown for its Brugal rum brand. Edrington Group said profits fell 9.4% to £157.6m in the year to March.... Read more

Talks between CalMac, RMT and TSSA postponed... Read more

Council blocks Little Plumpton fracking application... Read more

French authorities took two Uber managers into custody for questioning over "illicit activity" involving its low-cost service. The detentions came amid rising tensions between the government and the ride-hailing company, which culminated last week in a violence-marred taxi strike that blocked roads around the country... Read more

Russian fishing industry witnesses stable growth... Read more

The governor of Puerto Rico has decided that the island cannot pay back its more than US$70 billion (NZ$102b) in debt, setting up an unprecedented financial crisis that could rock the municipal bond market and lead to higher borrowing costs for governments across the United States. Puerto Rico's move could roil financial markets already dealing with the turmoil of the renewed debt crisis in Greece... Read more

Why Puerto Rico's economy is in a 'death spiral'... Read more

Countries from five continents formally signed up Monday to the China-led Asian Infrastructure Investment Bank -- a potential rival to the Washington-based World Bank -- as Beijing steps up its global diplomatic and economic role... Read more

The Chinese party-state is tightening the vise on both foreign and domestic NGOs, sending strong new signals of its determination to repress unwelcome foreign influences and activities that foster the spread of ”Western values.” A draft Foreign NGO Management Law released last month doesn’t just threaten to damage Chinese civil society, but also demonstrates strong willingness to use legislation to assert authoritarian governance without procedural justice... Read more

Japan PM Abe's ratings slip amid doubts about his security policy... Read more

Hyundai pushes out GM as NFL sponsor. Deal gives Korean car maker access to Super Bowl and other events... Read more

Opinion - John Lloyd: Grexit signs: Drachma, how we’ve missed you!... Read more

Opinion - Cullen Roache: This is when the Greece debt crisis gets really scary. A major global economic event will take place once countries including Spain and Italy get in trouble... Read more

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