ASB Securities Morning Brief for Saturday, 06 February 2016
Saturday, 06 February 2016

New Zealand Headlines

New Zealand market report: New Zealand shares rose, led by milk marketer A2 Milk Co and Air New Zealand, although the value of trading continued to be relatively light as volatility in world markets and commodities kept some investors on the sidelines. Hallenstein Glasson dropped after posting weaker first-half profit and most retailers fell. The S&P/NZX 50 Index rose 16.09 points, or 0.3 percent, to 6,153.80. Within the index, 25 stocks gained, 14 fell and 11 were unchanged. Turnover was about $124 million.... Read more

The New Zealand dollar fell from a month-high ahead of employment data in the US that may give investors more clarity on how much time the US Federal Reserve will take to raise interest rates again. The kiwi traded at 66.93 US cents at 5pm in Wellington, from 67.46 cents at the start of the day and from 67.25 cents late yesterday. The currency is heading for a 3.5 percent weekly gain against the greenback. The trade-weighted index was little changed at 72.65 from 72.61 yesterday.... Read more

New tax bad for housing development Warnings about the negative impact a new property tax could have on housing supply come as the submission period on the Bill ends... Read more

Commercial building consents surged to an all time high of $5.9 billion last year with Auckland and Canterbury neck and neck... Read more

Tradies warned to relicense the consumer is up to speed Now more than ever, Tradespeople need to make sure they hold a current licence... Read more

Financial literacy experts are thrilled Richie McCaw has joined other prominent New Zealanders in talking about money. The former All Blacks skipper is appearing in a series of videos for Westpac. The 'It's time' campaign encourages people to take action now on important financial decisions, rather than procrastinating... Read more

There is concern that changes to the Code of Professional Conduct for Authorised Financial Advisers, due to take effect this year, may have slipped under the radar for AFAs amid the bigger review of the Financial Advisers Act... Read more

Sheep farm numbers halve in South Canterbury over the past 15 years... Read more

Third low payout season will see dairyfarmers going under OMF financial markets director Nigel Brunel is warning that dairy farmers’ second season of extremely low payouts may be followed by a third – with some going to the wall... Read more

The price for New Zealand's key dairy product, whole milk powder, looks set to fall further, according to traders who are pricing in declines on the NZX futures market. At this week's fortnightly GlobalDairyTrade auction, the price for whole milk powder sank 10.4 percent to US$1,952 a tonne, its lowest since Aug. 18 when it hit a record low US$1,590 a tonne... Read more

Fonterra to pay organic milk farmers at market rates... Read more

Zespri and T&G's collaborative marketing example for all industry, says Hort NZ... Read more

ANZ is forecasting a longer, deeper trough in dairy prices. The bank has dropped its forecast price for milk solids this season by 30 cents to $3.95 a kilo. It now "tentatively" expected a price of $5 a kilo in 2016-17, which is 50c to 75c less than it had previously been predicting... Read more

Fresh NZ seafood reaches rural China via Alibaba's Tmall platform... Read more

Augusta Funds Management (part of NZX-listed Augusta Capital) has launched what is believed to be this country's biggest ever property syndicate, the Augusta Value-Add Fund No.1 Limited. The syndicate will acquire three office buildings and two industrial buildings in Auckland, and will have a minimum investment amount of $200,000... Read more

A retail expert says Hallenstein Glasson's profit warning is a measure of the difficulties the New Zealand retail sector is facing. Shares in the clothing company – which runs menswear brand Hallenstein and womenwear brands Glassons and Storm – slumped more than 10 per cent on Friday morning after the company forecast a 20 per cent drop in its first-half net profit... Read more

Mana and money - the Maori business evolution The assets of the top 10 Maori businesses are closing in on $5 billion as they develop from property and primary industries-related Treaty settlements into wider interests including, food and tourism, but one expert says the important issue is how much money they are generating to help the needs of the people... Read more

Auckland ranked 20th in global commercial real estate survey of cities on the up.... Read more

The former boss of Fiat Chrysler Australia - accused of misusing tens of millions of dollars of company money - has made good on his business plans for this side of the Ditch. Business Insider had assumed Clyde Campbell had called off the move, given the publicity which swarmed around the motoring executive last year... Read more

A Christchurch real estate agent has been censured, fined $3500 and costs of $3885.83 and ordered to undergo further training after being found guilty of unsatisfactory conduct over not disclosing a string of issues with a property and giving incorrect information about it. Paul Middleditch was working for Four Seasons Realty, trading as Harcourts Hornby, when he did not disclose problems, according to the Real Estate Agents Authority... Read more

Masala family group has assets frozen... Read more

Ross Asset Management investors have agreed to return profits they received from the fraudulent fund manager rather than go through a court battle trying to keep them... Read more

A Taupo bar owner who once played for the Junior All Blacks has admitted defrauding the Inland Revenue Department of nearly $1 million. John Neville Williams, 58, also a former Waikato lock, and Raewyn Anne Stewart, also 58, his partner and bar co-owner, today admitted five representative jointly laid charges relating to tax, GST and PAYE evasion by their company Stewart Drake International Ltd, which owned the bar, JJ's @ On Tap... Read more

$15m scam revealed: US pair try to hoodwink Immigration NZ... Read more

A car dealer has fired back at critics who questioned the wisdom of it using Maori culture in an advertisement to promote its Waitangi Day sale. 2 Cheap Cars brand manager Jared Donkin admitted its advert, which shows a Pakeha girl dressed in a kapa haka costume and swinging a poi, was "a bit tacky"... Read more

Opinion/Analysis - Brian Gaynor: KiwiSaver fund choices leave money on the table... Read more

Opinion/Analysis - Brian Fallow: Wages going nowhere fast... Read more

Opinion/Analysis - Vernon Small: The TPPA was officially signed in Auckland - so what happens next?... Read more

Australian Headlines

Australian market report: The Australian share market finished the trading day slightly lower, as falls in financial and retail stocks were partly offset by gains by the big miners. The benchmark S&P/ASX 200 index fell 4.2 points on Friday, 0.08 per cent, to 4,976.2 points, following Thursday's two per cent gain... Read more

The Australian dollar is slightly higher ahead of the release of US jobs figures, despite a small dip on disappointing local retail data. At 1700 AEDT on Friday, the local currency was trading at 71.82 US cents, up from 71.72 US cents on Thursday.... Read more

More real estate agents taking out more expensive listings on have helped boost REA Group's half year earnings.... Read more

Lucapa Diamond Company granted ASX trading halt... Read more

Petrel Energy (ASX:PRL) has now raised $750,000 through a share placement at $0.02 per share after an additional raising this week to sophisticated investors. There was also one unlisted option, for no additional consideration, for every 2 shares held... Read more

Beacon Minerals signs ore processing agreement with Northern Star Resources... Read more

Whitehaven coal edges back into the black despite tough conditions... Read more

ArcelorMittal in capital raising after big loss... Read more

BBX Minerals to outline capital raising details... Read more

AGL’s makes shock exit from Australian CSG market, Gloucester project to be scrapped... Read more

News Corp is cutting costs at its Australian and British newspapers after a strong second quarter performance from its digital real estate business failed to offset lower advertising revenue from the news division... Read more

Threat Protect Australia to reveal placement, acquisition... Read more

Online health appointment booking platform 1st Available (ASX:1st) will move out of a trading halt on Tuesday to announce a commercial agreement. This week, 1stAvailable inked a commercial agreement with Primary Health Care (ASX:PRY) to integrate 1stAvailable's online search and appointment booking service across Primary Health's dental network of 200 dentists and 55 locations across Australia... Read more

Medical Developments International (ASX:MVP) has acquired a leading respiratory device company Breath-A-Tech for $2.029 million in cash and issue of 117,894 shares of MDI... Read more

Woolies' $3m fine for dodgy items... Read more

Masters disaster: Woolworths shareholders warned more pain to come. Woolworths will have to spend hundreds of millions of dollars more before shareholders see the back of the Masters disaster. The five-year money-guzzling hardware venture has already cost about $3 billion and a tanking share price... Read more

Diploma says it has won contracts to build the $17 million Quest Hotel in Midland and the $5 million Yanchep Surf Lifesaving Club. Quest Midland is a seven-storey building with an underground basement carpark located in the heart of the Midland CBD... Read more

Digimatic Group will pay SGD$1,000,000 to acquire control of a video production business Digimatic Group will pay SGD$1,000,000 to acquire control of a video production business AP Media Pte Ltd in Singapore, that has expanded into Virtual Reality video production... Read more

Telcos splash $543m on 1800 MHz spectrum... Read more

Blockchain and how it will change everything. In May, British billionaire Richard Branson invited a select posse of entrepreneurs, venture capitalists and technology advisers to his Caribbean residence for an exclusive pow wow on an issue occupying some of the top markets minds in the world. The topic for discussion on the picturesque Necker Island was the "blockchain"... Read more

Telstra worried NBN may stray into 'adjacent' telco businesses... Read more

Inquiry exposes 7-Eleven racket... Read more

TV2U International formerly Galicia Energy Corporation will be reinstated to trading of its shares on 9 February 2016 on the ASX as a digital content enabler and technology provider after complying with Listing Rules... Read more

ANZ traders scandal drags in other banks. ANZ has dragged other major banks into the "toxic culture" claims made by sacked trader Etienne Alexiou, lodging the lewd Bloomberg chats about drugs, women, alcohol, school teachers and sex in its Federal Court defence on Friday... Read more

Comm Bank staff in alleged fraud: report. Two men will reportedly face court after they allegedly masterminded a $76 million Ponzi scheme that involved some Commonwealth Bank staff... Read more

The Fair Work Ombudsman has launched an investigation after evidence emerged that failed electronics chain Dick Smith might have underpaid its employees. The revelations have surfaced as Dick Smith's receivers and managers dig through the financial embers of the company which collapsed early last month... Read more

Opinion - Ross Gittens: Less regulation, but the right regulation to avoid a financial crisis... Read more

Opinion - Peter Martin: Reserve Bank dons rose-tinted glasses in Statement on Monetary Policy... Read more

International Headlines

U.S market report: US shares dipped on Friday after figures revealed the US economy had created fewer new jobs than expected in January. The Dow Jones Industrial Average fell 61.36 points, or 0.37%, to 16,355.22. The S&P 500 was down 12.51 points, or 0.65%, at 1,902.94, while the Nasdaq shed 35.6 points or 0.79% to 4,473.96.... Read more

North/South Americas Market Report: North and South American markets are broadly lower today with shares in U.S. off the most. The S&P 500 is down 4.76% while Mexico's IPC is off 1.02% and Brazil's Bovespa is lower by 0.50%... Read more

European Market Report: European markets finished broadly lower today with shares in Germany leading the region. The DAX is down 1.14% while London's FTSE 100 is off 0.86% and France's CAC 40 is lower by 0.66%... Read more

Asian Market Report: Asian markets finished mixed as of the most recent closing prices. The Hang Seng gained 0.55%, while the Nikkei 225 led the Shanghai Composite lower. They fell 1.32% and 0.63% respectively... Read more

Oil prices have plunged by roughly 70% since mid-2014, but global production has barely budged. “There has been minimal production shut-in so far in this downturn” for prices, according a report Friday from research firm Wood Mackenzie... Read more

Morgan Stanley gives up on higher oil prices in 2016. Morgan Stanley is throwing in the towel on its upbeat forecast for oil prices this year, slashing its year-end target by 50% as it concedes the global glut in oil isn’t disappearing anytime soon... Read more

U.S. unemployment is back below 5% for the first time since 2008. However, hiring is slowing down. The U.S. economy added only 151,000 jobs in January. That is way down from December when the economy gained 262,000 jobs. Economists surveyed by CNNMoney projected that the economy would create 197,000 new jobs last month... Read more

Financial markets are trapped in a "death spiral," according to analysts at Citigroup. The bank's research team described a "negative feedback loop" in the global economy and across financial markets. It is fueled by strong dollar, lower commodity prices, weak trade and declining growth in emerging markets... Read more

Chicago Stock Exchange sold to Chinese-led investor group... Read more

Jessica Alba's online shopping start-up is working with Goldman Sachs and Morgan Stanley on an initial public offering, according to reports. Honest, co-founded by the Hollywood actress in 2011, was valued at about $1.7bn last year, Bloomberg claimed... Read more

'No UK crimes' committed by flash crash trader... Read more

HSBC has reached a $470m (£325m) settlement with the US government and states related to dubious mortgage lending and foreclosure practices that contributed to the financial crisis. The agreement includes a $100m fine and $370m in consumer relief to borrowers... Read more

Swiss bank Julius Baer Group AG on Thursday admitted to helping U.S. taxpayers hide billions of dollars in offshore accounts and agreed to pay $547 million. Separately, two of the bank’s former client advisers — Daniela Casadei and Fabio Frazezetto — pleaded guilty to conspiring to help clients evade taxes in the U.S. The Swiss residents, initially charged in 2011, surrendered to U.S. authorities this week... Read more

Bank of England: Oil price fall 'good for UK economy'... Read more

Grainger sells £94m German property portfolio to private equity. Britain’s biggest listed housing landlord continues to exit from German property as part of ambitious plans to plough £850m in UK private rentals... Read more

Volkswagen says it will not release its results nor hold its shareholders' meeting on time, as it needs more time to work out its accounts as a result of last year's emissions crisis. The company was due to release results on 10 March and hold its shareholders' meeting towards the end of April... Read more

Oil and gas firm BG Group, whose takeover by Royal Dutch Shell is almost complete, has reported a rise in its final full-year earnings. BG said pre-tax profits for the full year were $2.97bn (£2bn), compared with a loss of $2.3bn in 2014... Read more

Foxconn Technology Group Chairman Terry Gou took a step forward in the hotly contested battle for control of Japan’s Sharp Corp., saying he’s become the preferred negotiating partner for a bailout of the struggling consumer electronics maker... Read more

Toshiba shares dived to a more than 35-year low on Friday after the scandal-hit firm widened its annual loss forecast to a whopping $6.0 billion, while a strong yen dragged Tokyo stocks into the red... Read more

Japan's Toyota has reported a 4.7% year-on-year rise in net income for the three months to December, to 627.9bn yen ($5.37bn; £3.7bn), due in part to stronger sales in the US... Read more

Indonesia's economy grew at its slowest pace for six years in 2015, data showed Friday, as it was hit by plunging commodity prices and falling exports to key markets including China... Read more

5 Ways India’s Government Could Help Rajan Lower Rates. When Reserve Bank of India Gov. Raghuram Rajan maintained interest rates at 6.75% on Tuesday, he fired a shot across the government’s bow... Read more

Latest reports

Latest reports