ASB Securities Morning Brief for Wednesday, 07 October 2015
Wednesday, 07 October 2015

New Zealand Headlines

New Zealand Market Report: New Zealand shares rose after agreement was reached on the Trans Pacific Partnership deal. Xero, SkyCity Entertainment Group and Fletcher Building gained. The S&P/NZX 50 Index rose 37.57 points, or 0.7 percent, to 5668.11. Within the index, 30 stocks rose, 11 fell or nine were unchanged. Turnover was $113 million... Read more

The New Zealand dollar dipped against its trans-Tasman counterpart after the Reserve Bank of Australia disappointed traders looking for hints of another rate cut, keeping the target cash rate unchanged and saying data will inform future movements. The kiwi fell to 91.28 Australian cents at 5pm in Wellington from 91.61 cents immediately before the release. The local currency was little changed at 64.99 US cents from 65.04 cents at 8am, and up from 64.65 cents yesterday... Read more

Businesses confident about themselves, but not NZ... Read more

The rockstar economy has gone back to the day job, with the economist who coined the term saying things are heading back to normal. Paul Bloxham, HSBC's chief economist for Australia and New Zealand, dubbed New Zealand a "rockstar economy" on January 6, 2014, correctly predicting it would be among the fastest growing economies among the Organisation for Economic Co-operation and Development (OECD), a group of developed nations, in the following 12 months... Read more

Key sees NZ$2.7 bln/yr of TPP gains... Read more

New Zealand's primary sector looks to have come out of the Trans-Pacific Partnership (TPP) agreement favourably, with the notable exception of the country's biggest export - dairy. After years of negotiation, the controversial trade deal was finalised in Atlanta early yesterday morning... Read more

Labour says jury's out on supporting TPP... Read more

Marlborough wine exporters welcome TPP... Read more

Christchurch Metal foundry AW Fraser expects to be one of many manufacturers to benefit from the Trans Pacific Partnership Agreement (TPPA). Canterbury manufacturers say the needs of the dairy sector have dominated too much when it comes to the pluses and minuses of reaching the trade deal... Read more

Barfoot & Thompson's median price hit new record of $790,000 in September, but the company warns that prices are at a crossroads... Read more

Landlords going green. For landlords who want to make their rental property a tenant’s first choice, it might be time to consider going green.... Read more

The Government should push ahead with plain packaging for cigarettes after the Trans-Pacific Partnership forbade tobacco companies from directly suing the New Zealand Government, the Labour Party says. The TPP allows foreign investors to seek compensation from governments party to the agreement when investment obligations have been breached... Read more

FMA keen on KiwiSaver engagement. KiwiSaver advice practices will always be a point of interest to the Financial Markets Authority, its director of markets oversight says.... Read more

Dairy prices post fourth gain in a row at GlobalDairyTrade auction... Read more

A market expert is warning an over-reaction to a perceived global milk production squeeze could see dairy prices heading for another rollercoaster ride of high prices followed by a fall. Economists are picking a fourth consecutive strong average price recovery on tonight's Global Dairy Trade (GDT) auction because of shrinking milk production in New Zealand and other big milk producing countries... Read more

Tegel Foods may be headed for the NZX 50 Index in an initial public offering that could value Affinity Equity Partners' New Zealand poultry business at about $800 million, although there is a question mark about whether the sale could be completed this year... Read more

Milestone Direct, a joint venture between Milestone’s financial advice practises and compliance and training firm Strategi, will be on hand to provide advice to the 14.500 NZDF staff. It follows a tender process... Read more

Sanford, New Zealand's largest listed fishing group, will add Ernst & Young chairman Rob McLeod to its board next year as it seeks to get closer to Maori fishing firms in a bid to lift the industry's performance against foreign rivals... Read more

Mercer Group, the stainless steel fabricator and manufacturer, has agreed to sell its unprofitable medical division for $2.03 million, kicking off an asset sale programme signalled in August when the company wrote off $6 million from the value of goodwill, assets and inventory. Mercer shares were unchanged at 5.1 cents, and have slumped 75 percent this year.... Read more

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth... Read more

TUANZ welcomes Government's new Rural Connectivity Target... Read more

Orion shares jump 9% after Leidos syndicate wins US defence contract... Read more

Indue welcomed as NZBA’s latest affiliate member... Read more

Matt Whittaker, pictured at the Malaysian launch event, says Skype and email is no substitute for getting on the ground. Whittaker's is looking to expand its empire further into Asia, following the "roaring success" of its Malaysian launch. The New Zealand chocolatier entered the retail market last year, hoping to tantalise the tastebuds of a country of 30 million... Read more

Talleys Group-controlled meat processor Affco New Zealand has told the Employment Court case law to backs up its stance that seasonal meat workers are not employed continuously and instead sign fixed-term contracts, so cannot be said to have been locked out if they don't sign fresh contracts at the start of a new season... Read more

MediaWeb's Victor Clarke pleads guilty to $2.2 million fraud... Read more

Opinion - Rodney Dickens: Rodney Dickens says we've reached a critical stage in the economic cycle with Wheeler in danger of repeating the mistakes of Bollard & Brash... Read more

Opinion - Dr Pat Neuwelt: Doctors not prepared to swallow TPP pill... Read more

Opinion - John Ballingall: "TPP an impressive achievement". NZIER's John Ballingall says it is the long term impacts from the TPP that will matter more than the short-term gains... Read more

Opinion - Charles Finny: TPP quite different, isn't it?... Read more

Australian Headlines

Australian Market Report: The Australian sharemarket pared some of its earlier gains to finish modestly higher, as Reserve Bank governor Glenn Stevens failed to provide clarity about the trajectory of local interest rates. At the 4.15pm (AEDT) official market close, the benchmark S & P/ASX200 index added had added 16.9 points, or 0.33 per cent, to 5167.4, while the broader All Ordinaries rose 14.9 points, or 0.29 per cent, to 5199.... Read more

The Australian dollar rose above 71 US cents after the Reserve Bank left the cash rate at two per cent... Read more

RBA holds interest rates at record low... Read more

The Australian bond market is weaker after the Reserve Bank gave a better-than-expected economic outlook... Read more

Prime Minister Malcolm Turnbull has hailed a new 12-country trade deal which covers 40 per cent of the global economy as a "gigantic foundation stone" for Australia. The Trans-Pacific Partnership (TPP) was clinched in the US city of Atlanta overnight after days of marathon talks and could influence everything from the price of cheese to the cost of cancer treatments... Read more

Agriculture Minister Barnaby Joyce has encouraged his colleagues in sugar-growing areas to see the Trans-Pacific Partnership as "the first major step" in a good deal for their constituents. The partnership allows Australia to send additional sugar to the US, but well short of the amount the industry wanted... Read more

inners, losers, sceptics in trade deal... Read more

Top Australian lawyers say provisions in the Trans-Pacific Partnership to shore up protections for investors – be they pension funds or foreign companies – will not mean companies from the United States have open slather to sue the Australian government.... Read more

TPP: Unions fear impact on Australian workers... Read more

Prime Minister Malcolm Turnbull has indicated changes to penalty rates are likely, but said any adjustments would need the support of workers. Mr Turnbull said differences in penalty rates between Saturday and Sunday were a characteristic belonging to an outdated economy... Read more

Oversupply sinks Perth house prices... Read more

Shares in Lucapa Diamond Company continued their upward surge this morning after the Miles Kennedy-chaired explorer said it was closing in on the source of the diamonds it had discovered at its Lulo project in Angola... Read more

Lion Energy has been granted a trading halt by the ASX, with its shares placed in pre-open... Read more

Glencore reveals financing deals to fend off critics... Read more

Contractor NRW Holdings has had a win in its Roy Hill project payments dispute. A Supreme Court judge today made an order for project manager Samsung C&T to pay NRW $17.5 million... Read more

Tony Walsh is returning to his old job at Atlas Iron as the miner’s company secretary and head of corporate.... Read more

Shares in Macmahon Holdings jumped after the contractor announced an on-market share buyback of up to 10 per cent of its stock. Macmahon shares were up 0.9 cents, or 13.43 per cent, to 7.6 cents at the close.... Read more

Credit information providerVeda Group has backed a US takeover after the price tag was bumped up to $2.5 billion. The data analytics firm has information on 20 million individuals and more than five million businesses in Australia and New Zealand, which is used by customers to assess credit risk, carry out background checks and reduce fraud and identity theft. US rival Equifax has boosted its all-cash offer for Veda Group to $2.825 per share, up from the $2.70 offered in mid-September.... Read more

The Takeovers Panel has criticised childcare operator G8 Education's failed bid for rival Affinity Education after finding share trades by entities associated with outgoing G8 chair Jenny Hutson breached corporations law. The panel on Tuesday made a declaration of "unacceptable circumstances" in relation to a super fund and two private companies that have links to Ms Hutson and which bought shares in Affinity after G8 launched its bid in July... Read more

Newzulu director Theo Hnarakis continues director buying trend... Read more

Westpac tweaks technology accounting... Read more

Alzheimer’s disease drug developer Actinogen Medical is on a path to the second critical phase of its clinical trial with its promising new treatment for patients with alzheimer's dementia.... Read more

Adherium builds on IPO with big pharma partnerships... Read more

A Coles supermarket worker has taken legal action to stop an employment agreement between the supermarket giant and the union representing retail workers, claiming it would leave tens of thousands of supermarket employees out of pocket... Read more

Organic farmer Steve Marsh has taken his landmark legal battle against Kojonup neighbour Mike Baxter, who grows genetically modified canola, to the High Court.... Read more

Garrett backs away from bribe claim. Was former Labor government minister Peter Garrett offered a bag full of cash by poker machine interests? He has said this actually happened. But now he says it didn't... Read more

Perth City Council must determine whether Lord Mayor Lisa Scaffidi should keep her job after Western Australia’s corruption watchdog found she engaged in misconduct, Premier Colin Barnett says... Read more

Opinion/Analysis - Peter Fay: Why Woolworths takeover speculation won’t go away... Read more

Opinion - Malcolm Maiden: TPP: Even money on Trans-Pacific Partnership win on current form. The trade deal is worth pursuing, but the political infighting has only just begun... Read more

International Headlines

U.S. Market Report: U.S. stocks fell in afternoon trading on Tuesday as a rout in healthcare stocks resumed and as an IMF report added to worries about global growth. The S&P health index was down 3 percent, the worst performing sector among the ten major S&P sectors. The sector has been under intense scrutiny over high prices for drug... Read more

North/South Americas Market Report: North and South American markets are mixed today. The Bovespa is up 5.31% while the IPC gains 0.06%. The S&P 500 is off 0.52%... Read more

European Market Report: European markets finished higher today with shares in France leading the region. The CAC 40 is up 0.95% while Germany's DAX is up 0.90% and London's FTSE 100 is up 0.43%... Read more

Asian Market Report: Asian markets finished mixed as of the most recent closing prices. The Nikkei 225 gained 1.00% and the Shanghai Composite rose 0.48%. The Hang Seng lost 0.19%... Read more

US benchmark West Texas Intermediate for November delivery see-sawed in between negative and positive territory and was up two cents at $46.28 in late-morning trade. Brent crude for November advanced 13 cents to $49.38 a barrel.... Read more

Oil hits month-high; eyes on less output, Saudi-Russia talks. Brent was up $2.40, or 4.8 percent, at $51.65 a barrel by 12:11 p.m. EDT (1611 GMT). Its session peak, a penny shy of $52, was the highest since Sept. 3.... Read more

Oil markets are beginning to recover but the scale of global oversupply means prices may rise only slowly, the chief executive of Royal Dutch Shell Plc said on Tuesday. "I see the first mixed signs for recovery of oil prices," Ben van Beurden told an oil industry conference in London... Read more

U.S. exports took a hit from an ailing global economy in August and imports from China surged, fueling the largest expansion of America's trade deficit in five months. The data released on Tuesday by the Commerce Department illustrates the U.S. economy's vulnerabilities to a strong dollar and weak demand in foreign markets, which could impose further caution on the Federal Reserve's plans to hike interest rates. The trade deficit swelled by 15.6 percent to $48.3 billion in August, according to data that is adjusted for seasonal factors.... Read more

Trans-Pacific Currency Deal Puts Yellen's Fed in the Spotlight Emerging markets seek consultations on Fed's next move... Read more

Historic Pacific trade deal faces skeptics in U.S. Congress... Read more

Faint corporate praise greets TPP trade deal... Read more

Bill Gross: Capitalism 'can't survive' at 0% rates... Read more

Pacific Investment Management Co., home to the world’s biggest actively run bond fund, says asset prices around the world will be able to withstand a Federal Reserve interest-rate increase.... Read more

IMF cuts global growth forecasts again, cites commodity and China worries... Read more

Wal-Mart Stores Inc. and Visa Inc. are in talks aimed at settling the retailer’s $5 billion lawsuit over processing fees. The negotiations were disclosed in a court filing Monday in Brooklyn federal court where dozens of retailers are pursuing claims against credit card companies alleging they illegally fixed so-called swipe fees... Read more

The 500 largest American companies hold more than $2.1 trillion in accumulated profits offshore to avoid U.S. taxes and would collectively owe an estimated $620 billion in U.S. taxes if they repatriated the funds, according to a study released on Tuesday... Read more

Wall Street broker-dealers posted profits of $11.3 billion in the first half of 2015, up 29 percent from the same period last year and the strongest first half since 2011, a New York financial watchdog said on Tuesday... Read more

Apple 'own worst enemy,' U.S. antitrust monitor says in report... Read more

Goldman, Morgan Stanley win back hedge fund trading business... Read more

Investors are getting increasingly nervous that talks about a massive 'Bud-Miller' beer merger will end in failure. Shares in SABMiller fell by about 3% in London after Bloomberg reported that the brewer had turned down an initial takeover offer from its largest rival, Anheuser-Busch InBev. The report cited unnamed sources... Read more

Canadian Dollar Rises for Fifth Day as Crude Oil Prices Surge... Read more

Wake Up to U.K. Exit Risks, Banks Tell Investors as Polls Shift. Investors are being urged to tune into the looming political battle over the U.K.’s membership of the European Union amid signs it will prove closer than most now think. UBS Group AG, Citigroup Inc. and Morgan Stanley are among the banks advising clients to pay more attention to the so-called Brexit debate... Read more

German manufacturing orders slump unexpectedly... Read more

Volkswagen will have to make massive savings to cope with the huge cost of its emissions cheating scandal. That was the stark message delivered to more than 20,000 Volkswagen employees by the group's new chief executive, Matthias Mueller, at a meeting in Germany on Tuesday... Read more

VW under pressure for answers as emissions scandal deadlines loom... Read more

Volkswagen said 8 million diesel vehicles in the European Union were fitted with software capable of cheating vehicle emissions tests, according to a copy of the letter sent to German lawmakers and seen by Reuters... Read more

High Court case looks at how Uber operates in London. The system used in London by app-based taxi service Uber has been called into question in the High Court. Transport for London (TfL) and Uber are seeking guidance on whether the company's smartphones are considered meters, which are outlawed for private hire vehicles... Read more

Austrian's Bid to End U.S.-EU Data Pact Born in Silicon Valley... Read more

Libor trial of six City brokers begins... Read more

Mercedes-Benz September sales lifted by 53 percent jump in China... Read more

Analysts at banks managing Amundi Group’s initial public offering estimate Europe’s largest fund manager should be valued at about 8 billion euros ($9 billion), three people with knowledge of the matter said... Read more

Air France shirt-ripping scenes a national embarrassment: ministers. Violent acts by workers at the headquarters of troubled flag carrier Air France a day ago are a national embarrassment that reinforces the very image the country wants to shake off, French political leaders said on Tuesday.... Read more

Morgan Stanley’s head of Russian oil and gas research, Pavel Sorokin, left the bank to run a unit advising the country’s Energy Ministry, joining an exodus from the financial industry amid Russia’s first recession since 2009... Read more

The Chinese government has reacted cautiously to the agreement reached by the 12 nations negotiating the Trans-Pacific Partnership (TPP), saying it hopes the deal will make a contribution to the development of trade and investment in the Asia-Pacific region... Read more

Japanese Prime Minister Shinzo Abe hailed a deal to create the world's largest free trade area Tuesday as the start of a "new century" for Asia, and expressed hope China might one day join the historic accord. "A huge economic zone will emerge... the TPP will make our lives more prosperous," Abe said in a televised news conference after a dozen nations reached a deal on the long-awaited Trans-Pacific Partnership (TPP)... Read more

Japan's 'Abenomics' experiment is on the rocks... Read more

Founders of Asia's largest budget carrier, AirAsia, are sounding out investors to take the company private in a management-led buyout, after a critical research report knocked its shares to a seven-year low, people familiar with the matter said... Read more

Latest reports

Latest reports