ASB Securities Morning Brief for Tuesday, 06 October 2015
Tuesday, 06 October 2015

New Zealand Headlines

New Zealand Market Report: New Zealand shares rose, led by Kathmandu Holdings on speculation it may be subject to another takeover offer. Ebos Group, Nuplex Industries and New Zealand Refining Co advanced. The S&P/NZX 50 Index gained 37.03 points, or 0.7 percent, to 5630.54. Within the index, 39 stocks rose, six fell, and five were unchanged. Turnover was $75 million, lighter than usual with several states in Australia on a public holiday... Read more

The New Zealand dollar gained in local trading as investors weighed up the impact of weaker-than-expected US employment figures and what that means for the Federal Reserve's track to raise interest rates. The kiwi traded at 64.65 US cents at 5pm in Wellington from 64.59 cents at 8am, up from 64.36 cents on Friday in New York. The trade-weighted index edged up to 70.26 from 70.16 last week... Read more

Twelve Pacific Rim nations have reached a deal on the controversial Trans-Pacific Partnershipin the American city of Atlanta, ending more than five years of negotiations to create the largest trade and investment pact since the Uruguay Round of the GATT trade agreement 20 years ago. However, New Zealand has barely prised open the door for dairy exports to the highly protected markets of the US, Canada, and Japan, with tariffs on some products proving too hard to overturn.... Read more

Fonterra is "very disappointed" by limited gains for dairy in the Trans-Pacific Partnership Agreement, with the government admitting it was "too difficult" to lift all tariffs in the newly-agreed trade deal. Several countries have refused to remove all blocks to free trade for New Zealand's dairy and beef exports, under the deal finalised in Atlanta overnight. Fonterra's chairman John Wilson says the deal is "far from perfect" and "failed to reach its potential" for the dairy industry, due to a pushback from farmers in other member countries.... Read more

Pump prices should be falling. Fuel prices rose 6 cents per litre during September, after commodity prices rose early in the month. But the AA says retail prices should now be falling again, after a slight improvement in the New Zealand exchange rate... Read more

Awarding of new govt banking contracts, with Westpac still the Crown's transactional banking service provider, to save taxpayers more than $120m, English & Joyce say... Read more

Greens celebrate $120 million savings from banking tender... Read more

NZ government science plan seeks to double private sector R&D by 2025... Read more

It’s official: The development of Auckland Crown land is getting under way – with the Government asking developers to register their interest in developing housing on Auckland Crown land parcels... Read more

New projects will boost Tauranga’s desirability. Property Council supports new and ambitious projects that will revive Tauranga’s CBD without burdening ratepayers.... Read more

BNZ launches new low two year market-leading fixed mortgage rate of 4.39%, just 4 bps above the lowest 1 year fixed rate... Read more

KiwiSaver members made $3 billion from their investments over the past year, data from the Financial Markets Authority shows. The FMA has released its latest KiwiSaver report, which shows the total amount of investment income from KiwiSaver investments doubled in the year to the end of March, compared to the same period the year before... Read more

This week's GlobalDairyTrade auction is shaping up to be another strong one, following on from double digit percentage gains in each of the last three... Read more

DOC approves land swap, paves way for Ruataniwha dam... Read more

The value of share trading on New Zealand's stock exchange climbed 23% in September, rounding out a quarter when the benchmark S&P/NZX 50 index posted its biggest three-month decline in more than three years. The total value of equity trading rose 22% to $3.4 billion last month from September 2014, while the total number of trades climbed 29% to 120,305... Read more

The parent company of Tegel Foods, New Zealand's largest poultry business, has refinanced $268 million of debt into new three year bank loans, although its chief executive declined to take questions on whether the change would reduce its $35 million of annual finance costs... Read more

Funding no-shows frustrate mining junior New Talisman. New Talisman Gold Mines, which is scraping up cash to begin bulk sampling work at its Talisman gold mine project in New Zealand's Hauraki district, is frustrated that a second potential investor has failed to come up with promised funds. New Talisman shares rose 0.8 percent to 0.605 cents on the NZX today, valuing the company at $96.6 million. Yang Xia was to have bought shares at 0.8 cents each... Read more

Snakk Media to raise up to $2.3m selling shares at discount to fund growth... Read more

The Mosaic equity crowdfunding currently taking place on the Equitise platform has just completed its first week. With over $20,000 in initial funding it is well on the way to reaching its minimum investment of $400,000. Full details are available on the Equitise website:... Read more

Microsoft New Zealand has named technology company Intergen as a Tier 1 Cloud Solution Provider. “This is a major coup for Intergen, and a public endorsement of the breadth and quality of our services,” says John Bessey, Intergen’s Director of Marketing and Client Development... Read more

New deal with union underpins NZ Steel's $A50m savings drive. New Zealand Steel's blue collar workforce has agreed to forego annual bonus payments during unprofitable years to allow the Auckland-based unit of ASX-listed Bluescope Steel a fighting chance as it seeks $A50 million in annual savings... Read more

Cavalier group would extract 'monopoly rents' if scouring merger allowed, Godfrey Hirst says... Read more

Kiwi Regional Airlines gears up for big test... Read more

Queenstown’s Ziptrek Ecotours wins environmental tourism award... Read more

Rest of industry gets taste of what advisers have been through. The rest of the financial services industry is starting to get a taste of the regulation financial advisers have been operating under for years, the Financial Markets Authority’s chief executive says.... Read more

Online prep for new advice clients. More than 460 customers have used Asteron Life’s new online LifeSnap tool in its first month of operation.... Read more

Harvey Norman customers may seek legal action over online sales glitch. Harvey Norman customers caught in a sales glitch are upset the retailer has not delivered personal explanations, and are mulling legal action. The retail giant was left red-faced on Thursday after advertising furniture at the wrong price on its website during its "biggest ever retail sale".... Read more

An Employment Court stoush between the New Zealand Meat and Related Trades Union and Talleys Group-controlled meat processor Affco New Zealand over new individual contracts has been adjourned while the union clarifies what remedies it’s seeking, including monetary compensation... Read more

A lender convicted of failing to disclose key information to borrowers in the Chinese community was “an unscrupulous lender” who charged “exorbitant and appalling” rates, according to the sentencing judge. Judge Mary Sharp made those remarks in the Auckland District Court in fining Yuan Rong Yang, former owner of Sunway Finance and money lender to Auckland’s Chinese community for at least 17 years, $22,500 and banned him from lending indefinitely... Read more

Ericsson is shedding one third of its staff in Porirua just two years after opening a plant to support the ultra-fast broadband rollout. The technology giant has said the cutbacks are not quality related but union officials claim faulty products prompted the current review... Read more

Opinion - Susan Edmunds: Borrowers must take active interest in home loan. There has never been such a good time to be a home loan borrower. Banks are offering interest rates available below 5 per cent across most loan terms. For six-month terms, ASB and BNZ have the best rate of the major banks, at 4.99 per cent. Fix for a year and you can get 4.35 per cent from ASB and BNZ... Read more

Opinion - Andy Archer & David Snell: OECD set to unveil big changes to international tax rules. EY's Andy Archer & David Snell preview the OECD's imminent new 'BEPS' tax dodging rules... Read more

New Zealand Herald Editorial: Clark's words on trade deal badly needed... Read more

Australian Headlines

Australian Market Report: A resources-led rally pushed the Australian sharemarket nearly 2 per cent higher as thin trade amplified a big jump in energy and mining stocks. The local market was also in top gear after disappointing US jobs data was seen as dampening the argument for a near-term US interest rate rise, sparking a strong performance in gold stocks. At the 4.15pm (AEDT) official market close, the benchmark S & P/ASX200 index rose 98.5 points, or 1.95 per cent, to 5150.5, while the broader All Ordinaries index added 94.9 points, or 1.86 per cent, to 5184.1.... Read more

The Australian dollar faded after rallying on the back of weak US jobs figures and easing US rate rise expectations. At 4.05pm (AEDT), the local unit was trading at US70.61 cents, up from US70.46 cents on Friday. Over the weekend, it peaked at US70.69 cents after a report that 142,000 jobs were added to the economy in September, well below expectations of a gain of 205,000... Read more

Aussie gold sits atop A$1600 an ounce... Read more

A leading private sector measure of inflation saw consumer prices gain momentum last month, sending the annual rate of inflation to its highest level in almost a year. The TD Securities Melbourne Institute Inflation Gauge rose by 0.3 per cent in September, after a 0.1 per cent rise in August... Read more

Australian businesses are upbeat in the lead up to Christmas thanks to lower interest rates and a softer Australian dollar. Businesses are expecting to see increased activity as the end of the year approaches, with profit, sales and employment activity all tipped to rise during the final quarter, Dun and Bradstreet's latest business expectations survey shows... Read more

September was the best month to hunt for a job in Australia, new figures show. Job advertisements jumped 3.9 per cent last month — in seasonally adjusted terms — after rising by a solid 1.3 per cent in August. ANZ chief economist Warren Hogan said the rising employment rate was testament to a resilient economy.... Read more

The jobs market is being boosted by the falling dollar and the housing boom. The number of job advertisements on the internet and in newspapers jumped 3.9 per cent in September, building on the 1.3 per cent gain made in August, seasonally adjusted, figures from ANZ show. Job ads in the 12 months to September were up 12.8 per cent... Read more

The Reserve Bank is tipped to leave the cash rate unchanged on Tuesday, and most economists are predicting there will be no more rate cuts for the foreseeable future. All 14 economists surveyed by AAP expect the RBA to keep the cash rate at two per cent at its October meeting, and only three are predicting that there will be another interest rate cut... Read more

TPP deal: Pacific countries agree to historic trade pact... Read more

WA ports have emerged as the second-biggest contributor to the $1.2 billion the State Government took in dividends from its trading entities, tipping in $264.2 million to Treasury coffers last financial year... Read more

No nickel recovery soon. Increasingly desperate nickel producers could have some time to wait for the commodity’s long-promised price recovery, Glencore’s global nickel boss Peter Johnston says... Read more

Galicia Energy Corporation has been granted a trading halt by the ASX pending details of a material change to the TV2U transaction... Read more

Liquefied Natural Gas Limited has received an ASX Price Query after its shares opened at $1.48 today, before climbing 10.5% to an intra-day high of $1.635. The company said in a response to the ASX that it is not aware of any information that could explain the recent trading... Read more

Glencore shares surge 15% in London... Read more

Glasenberg upbeat on copper's prospects. Glencore PLC Chief Executive Ivan Glasenberg, speaking publicly for the first time since his company's shares plunged a week ago, said he believes copper prices will ultimately rise as mine supplies are pulled from the market... Read more

Peninsula Energy has completed the 40 for 1 share consolidation of its listed ordinary shares on the Australian Securities Exchange ahead of a listing on the NYSE MKT later this year. On 24th September, shareholders approved the consolidation during the extraordinary general meeting. The company now has 173,422,794 ordinary shares. Last trade was $1.00, under code ASX:PENDA... Read more

Mining and civil contractor NRW Holdings has put its shares in a trading halt ahead of learning Supreme Court judgments over a disputed Roy Hill contract. NRW said in an announcement after the market closed this afternoon it had been advised the court would make two decisions related to its payment row with head contractor Samsung C&T... Read more

Newzulu director Phil Kiely buys $50,000 of shares... Read more

Native title services firm becomes a victim of the mining bust Native title services firm becomes a victim of the mining bust. A company providing specialist advice on native title claims and cultural heritage issues to major entities including BHP Billiton, Rio Tinto, and Fortescue Metals, has gone into administration, as the mining bust hits far beyond those supplying the traditional picks and shovels... Read more

A Mineral Resources subsidiary has been fined $90,000 after it pleaded guilty to two charges of failing to provide a safe working environment after a worker was injured in 2012... Read more

Australia's biggest dairy farm operation is being put on the market by its Kiwi owners. The Van Diemen's Land Company (VDL) in Tasmania is Australia's oldest and largest dairy farming business and is owned by the New Plymouth District Council... Read more

Australian drug developer Invion's migraine and blood pressure treatment drug Nadolol has found success as a new quit smoking agent. Results from its 155-patient, phase-two clinical trial indicate smokers administered with the drug are more likely to stop smoking completely, or dramatically reduce the number of cigarettes smoked. Invion, which has a market capitalisation of just $12 million, saw its shares jump nearly eight per cent on Monday.... Read more

St George apologises for system failure... Read more

The Bank of Queensland is at the centre of a potential class action after customers allegedly lost hundreds of thousands of dollars. Shine Lawyers has accused the bank of breaching its obligations to customers by failing to prevent transactions from their Money Market Deposit Accounts... Read more

ANZ had 3% of workforce breach code of conduct in 2014... Read more

Uber warns of a ‘coordinated assault’ on its drivers as debate over ridesharing is marred by violence. Fears are mounting of an intimidation campaign against Uber drivers after an attack in Brisbane this morning, the latest in a string of violent incidents involving the platform.... Read more

Opinion - Mark Gilbert: VW and Glencore are not 'Lehman moments' and here's why... Read more

Opinion/Analysis - Tony Featherstone: Why analysts are bullish on Newcrest Mining... Read more

Opinion - Michael Pascoe: Penalty rates are absurd. Without any politics, reforming our weekend penalty rates system would be very difficult. Taking money away from people generally is, especially when they tend to be among the less well paid... Read more

Opinion - Ian Verrander: Glencore poses a Lehman-style threat - but this time there's no one to intervene. Last week, for the first time in a quarter of a century, more was invested into cash than either stocks or bonds. The potential collapse of one of the world's major commodities traders has global investors spooked, writes Ian Verrender... Read more

Opinion - Angus Nicholson: Bad payrolls data lead to gold payola?... Read more

International Headlines

U.S. Market Report: US stocks have risen in opening trade, following European markets higher in a rally attributed to relief that the Federal Reserve appears unlikely to raise interest rates any time soon. Five minutes into trade on Monday, the Dow Jones Industrial Average stood at 16,592.30, up 119.93 points (0.73 per cent). The broad-based S&P 500 rose 16.45 (0.84 per cent) to 1,967.81, while the tech-rich Nasdaq Composite Index gained 36.72 (0.78 per cent) at 4,744.50.... Read more

North/South Americas Market Report: North and South American markets are sharply higher today with shares in Brazil leading the region. The Bovespa is up 4.91% while Mexico's IPC is up 1.61% and U.S.'s S&P 500 is up 1.60%... Read more

European Market Report: European markets closed sharply higher today with shares in France leading the region. The CAC 40 is up 3.54% while London's FTSE 100 is up 2.76% and Germany's DAX is up 2.74%... Read more

Asian Market Report: Asian markets finished broadly higher today with shares in Hong Kong leading the region. The Hang Seng is up 1.62% while Japan's Nikkei 225 is up 1.58% and China's Shanghai Composite is up 0.48%... Read more

World's 'extremely poor' to fall below 10 percent of global population... Read more

5 Things the World Bank’s Report on Poverty Told Us. The number of people living in extreme poverty worldwide will likely fall to under 10% of the global population in 2015, a new World Bank report has predicted. That is down from 37.1% in 1990 and means the world is moving closer to a goal of ending extreme poverty by 2030... Read more

Trans-Pacific trade pact: Negotiators finally get it done... Read more

The United States and 11 other Pacific Rim countries have reached a deal on the most sweeping trade liberalization pact in a generation but the accord on Monday faced initial skepticism in the U.S. Congress.... Read more

OECD heralds global tax dodge crackdown... Read more

The US service sector expanded at a slower pace in September, suggesting that the services sector might not be immune to turmoil abroad. The Institute for Supply Management's non-manufacturing purchasing managers index fell to 56.9 in September from 59 in August and 60.3 in July. The July figure was the highest level since the composite index's inception in January 2008... Read more

U.S. Banks Seen as Winners If Fed Follows FSB on Too Big to Fail... Read more

Despite 'weak' jobs report, Fed's Rosengren still sees 2015 rate hike... Read more

The Obama administration said it has finalised the terms of a record $US20.8 billion ($A29.4bn) settlement with BP over the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. The announcement by top officials at the Justice, Commerce, Agriculture and Interior departments, along with the Environmental Protection Agency, puts the final touches on the biggest pollution penalty in US history... Read more

Potash Corp. Withdrawing K+S Offer Caps Year of Frustration... Read more

Gun stocks surge 70% in 2015 alone... Read more

Troubled clothes retailer American Apparel has filed for US bankruptcy protection. The firm, which has been plagued by falling sales, high debts and several management crises, said it had agreed a deal to restructure its finances... Read more

Twitter appoints Jack Dorsey CEO, seeks new chairman... Read more

Legal troubles, market realities threaten Uber's global push. Uber Inc's aggressive global expansion is looking costlier and riskier than ever as the company struggles with regulatory and competitive obstacles in major markets.... Read more

Growth in the UK service sector slowed further in September to its lowest rate in nearly two and a half years, a survey has indicated. The latest Markit/CIPS service sector purchasing managers index (PMI) fell to 53.3 last month from 55.6 in August... Read more

The findings of a probe into Apple Inc.’s tax affairs in Ireland won’t hurt the country, according to Finance Minister Michael Noonan, who vowed to go to court to fight any negative ruling from European Union watchdogs... Read more

Everything is awesome for Lego. The Danish toymaker has broken into the world's top 100 most valuable brands for the first time. Lego is now the 83rd most valuable brand globally, according to research by the Interbrand consultancy... Read more

Angry protesters ripped the shirts off Air France executives on Monday after the company revealed plans to cut thousands of jobs during a meeting near Paris... Read more

Rolls-Royce is to cut an extra 400 posts from its marine division, after announcing 600 job cuts in May. The aero-engine maker, which depends on oil and gas-related customers for about 60% of its business, blamed the sharp fall in crude prices for the cuts. The marine unit has been under pressure over the past 18 months since the price of Brent crude collapsed to six-year lows, and ship orders were cancelled... Read more

Russia’s antitrust regulator has ordered Google Inc. to amend agreements with smartphone producers that it said disadvantage third-party applications on devices running the Android operating system. Mountain View, California-based Google is abusing its market dominance through Android, the regulator ruled last month after a complaint from local search engine provider Yandex NV, which has been losing market share to its U.S. rival on mobile devices... Read more

World Bank cuts Asia growth forecast on China and US rates... Read more

Chinese iPhone users targeted in latest App Store security breach... Read more

Latest reports

Latest reports