ASB Securities Morning Brief for Saturday, 27 June 2015
Saturday, 27 June 2015

New Zealand Headlines

New Zealand Market Report: New Zealand shares rose as Meridian Energy and MightyRiverPower rebounded from recent lows. Diligent Corp and Fisher & Paykel Healthcare advanced as the kiwi dollar fell. The S&P/NZX 50 Index rose 22.16 points, or 0.4 percent, to 5755.45. Within the index, 25 stocks rose, 15 fell and 10 were unchanged. Turnover was $118 million... Read more

The New Zealand dollar is heading for a 0.3% weekly decline against the greenback as financial markets hang on the outcome of Greece's debt negotiations before its 1.6 billion euro loan comes due at the end of the month. The kiwi fell to 68.86USc at 5pm in Wellington from 69.08USc on Friday in New York last week. It traded at 69.02USc at 8am and 69.15USc yesterday. The trade-weighted index declined to 71.94 from 72.19 yesterday, and is heading for a 0.2% increase on the week... Read more

Kiwi dollar's value 'unsustainable'... Read more

New Zealand's annual trade deficit unexpectedly shrank in May as exports rose more than forecast and imports lagged predictions. The country's trade deficit fell to $2.57 billion in the 12 months through May, according to Statistics New Zealand. That was lower than the $2.66 billion annual deficit in April and the $2.9 billion forecast by economists in a Reuters survey... Read more

Treasury claims Reserve Bank has not made the case for investor rules... Read more

Regional plan essential, says union boss. Workers’ advocate says strategy needed to take NZ beyond reliance on core industries with job initiatives to help lift remote areas.... Read more

Ngati Whatua files court papers over Crown snub on Auckland land sales... Read more

Auckland Mayor Len Brown and council staff held a ratepayer-funded party hours after passing a new budget that includes a 9.9 per cent average rates rise for households. Senior staff have defended the function as a way of thanking staff but critics say the decision was misguided when tens of thousands of Aucklanders were smarting from $1000-plus increases... Read more

Aussie apartment developers eye up Auckland... Read more

People behind FAA review changing. Advisers say the faces they deal with at MBIE keep changing and it is raising concerns about how well equipped they are to handle the Financial Advisers Act review... Read more

NZ finishes 2014/15 wool season with smallest volume sold at auction in at least 7 years... Read more

Link sell-off frees NZX to 'potentially' take over running of Reserve Bank system. The NZX has built an acquisition war-chest by selling off its half-share of stock market registry operator Link Market Services for $13.8 million.... Read more

Blackstone Group's Burger King chain in New Zealand continues to lose money as sales growth is swallowed up by finance costs and other expenses. The net loss for Tango Holdings NZ grew to $7.5 million in 2014, from a loss of $4.4 million a year earlier, according to its financial statements. As a result, income tax credits were $385,528, down from $1.4 million in 2013. Sales rose 1 per cent to $177.6 million... Read more

National Storage REIT, one of the largest self storage providers in Australia, has made its first foray across the Tasman spending $23 million building a storage portfolio in Christchurch. National Storage shares fell 3 percent to A$1.615, and have gained 15 percent this year... Read more

AMP Capital NZ lifts 2014 income, profit up on sale to parent... Read more

A Christchurch gold mining entrepreneur known as "Million Dollar Mike" is back on track with his ambitious mining plans on the West Coast. Mike McDonald, nicknamed "Million Dollar Mike" by former colleagues because of his optimism about money, is a former Ernst and Young Entrepreneur of the Year finalist who has been overseas since his Hokitika-based company MCAM Ltd went into liquidation owing about $1.1 million to unsecured creditors... Read more

Imarda NZ's 2013 accounts, released ahead of a proposed merger between its Australian parent and New Zealand's International Telematics Holdings, show a wider loss and were tagged by the auditor, who couldn't sign off on the value of inventories.... Read more

Heartland New Zealand, the bank formed through the merger of Canterbury and Southern Cross building societies with Marac Finance, has dismissed media speculation that it is in the running to buy Fisher & Paykel Finance.... Read more

Freightways, the courier and information management company, and aviation services firm Airwork Holdings have launched an airfreight network to replace Freightways’ existing unit, and will count New Zealand Post’s Express Couriers as a cornerstone customer. Freightways shares increased 0.5 percent to $5.93, and have edged up 1.7 percent this year, while Airwork shares last traded at $3.15, and are unchanged from the start of the year... Read more

Succession planning paramount for small family businesses... Read more

NetHui 2015’s programme - developed with the NZ Internet community - has been finalised with a diverse array of sessions exploring issues which will affect the future of the Internet.... Read more

Communications Minister Amy Adams says the Ultrafast Broadband (UFB) fibre rollout now has “100,000 connected customers”.... Read more

Diligent censured for 3rd time in 2 years after Weldon's departure causes compliance gap... Read more

Email warning of Ministry of Health bullying sent New Zealand-wide. A Government health official has sent a New Zealand-wide email warning of bullying tactics by senior staff at the Ministry of Health, as a member of Canterbury's health authority claims they have been victim of it for years... Read more

Long and winding road for innocent Ponzi scheme investor. A top Wellington lawyer borrowed half a million dollars from a bank to put into what turned out to New Zealand's biggest Ponzi scheme. Now that the court has lifted suppression orders, details can be revealed of how lawyer Hamish McIntosh invested money with David Ross's RAM, almost doubled his investment on what turned out to probably be non-existent shares, and where the money went afterwards... Read more

Siblings at war over Hugh Green's $400 million empire. Hamish Fletcher analyses the High Court's judgement in a scrap over rich-lister Hugh Green's will... Read more

Opinion/Analysis - David Chastan: David Chaston reviews where savers now stand following the recent OCR cut and the prospects for more of them... Read more

Opinion - Fran O'Sullivan: Has Auckland cooked its goose with lame duck mayor and side of broken promises?... Read more

Opinion/Analysis - Grant Davies: A Broker’s View: Arvida... Read more

Australian Headlines

Australian Market Report: The Australian sharemarket has tumbled 1.5 per cent after negotiations between Greece and its creditors faltered, while a selling frenzy across Chinese stockmarkets spooked local investors. At the 4.15pm (AEST) official market close, the benchmark S & P/ASX200 index was down 86.8 points, or 1.54 per cent, to 5,545.9, while the broader All Ordinaries index gave up 83.8 points, or 1.49 per cent, to 5,536.1.... Read more

The Australian dollar is lower on a quiet trading day, as investors remain focused on Greece’s deadlock with its international creditors. At 4pm (AEST), the local unit was trading at US77.18 cents, down from US77.30 cents yesterday.... Read more

Liberal MP John Alexander has made a stark warning the current housing market is putting Australia at risk of becoming a nation of "imprisoned tenant serfs". He said more housing supply would not help the situation, putting him out of step with Prime Minister Tony Abbott and Treasurer Joe Hockey... Read more

Cane farmers set to hit sweet spot. After a tough couple of years, the sun may finally be shining on some of Queensland’s struggling cane farming districts.... Read more

Contractors in the cash economy get hit with $2.3 billion in tax bills... Read more

Superannuation shake-up: Government's proposed rule changes a political stunt, industry fund executive says. A prominent industry fund executive has accused the Federal Government of a political stunt over its plans to shake up superannuation boards... Read more

Inca Minerals has been granted a trading halt by the ASX.... Read more

Bradken shares plummet on Magotteaux talks... Read more

Bradken has received a merger offer from the Chilean consortium providing a $70 million lifeline to the troubled mining services provider. Bradken is currently reviewing the merger proposal from the Magotteaux Group, a supplier of grinding equipment as well as construction and mining services... Read more

Windward Resources managing director David Frances is leaving the Fraser Range-focused explorer to pursue other opportunities in the international resources sector. Windward shares were off 0.3 cents, or 2.5 per cent, to 11.7 cents at the close.... Read more

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

The Foreign Investment Review Board (FIRB) has given New Zealand’s Todd Corporation the all-clear to buy the Pilbara iron ore project from Flinders Mines. Flinders announced this morning that it had been advised by Todd that FIRB had informed it that it had no objections to the deal announced last month. Flinders shares closed steady at 1.6 cents.... Read more

Infigen Energy to sell U.S. solar development pipeline... Read more

Sirius Resources says it has begun drawing down funds from its $440 million debt facility to progress development of its Nova nickel project near Balladonia. Sirius shares were off 13 cents, or 3.65 per cent, to $3.43 at the close.... Read more

The Victorian branch of the AWU has moved to explain a $47,500 payment it received in 2007 that was described in its accounts as a "donation" made by mining company Roche. According to accounts filed with Fair Work Australia, the payment was made to the union's Victorian branch by Roche Mining, a Queensland-based company owned by engineering group Downer EDI... Read more

Valmec Limited secures $7.5M in service contracts... Read more

Suppliers prefer Coles to Woolies. Food and grocery suppliers have given Woolworths its lowest rating in eight years in another sign Coles is winning the supermarket war... Read more

Jetstar expansion stalled by Hong Kong authorities. Hong Kong officials have rejected an application for an offshoot of cut-price airline Jetstar to operate out of the Asian financial hub. The decision is a major blow to the Asian expansion plans of Jetstar and its parent company Qantas... Read more

John Paulson's latest comeback just got a new chapter. The hedge-fund billionaire is launching a new fund, Mr Paulson told investors in a letter reviewed by the Wall Street Journal. The fund will initially bet on or against healthcare, pharmaceutical, technology and consumer stocks -- sectors where the firm has made big money recently. It's the first so-called long/short fund in Paulson & Co's history... Read more

A marine services provider backed by the family of iron ore heiress Angela Bennett has bought a Fremantle boat lifting business from MG Kailis Group. AMB Capital Partners-owned Blue HQ paid an undisclosed sum for Fremantle Boat Lifters, which also provides a boat stacking service at Fremantle Fishing Boat Harbour... Read more

Telecommunications companies face fines of up to $250,000 if they do not take proper steps to head off cyber attacks that have the potential to cripple government agencies and damage businesses... Read more

Telstra to cast wide net of Wi-Fi hotspots. Telstra plans to draw on its millions of broadband and NBN customers to create a huge network of Wi-Fi hotspots. Australia's biggest telco will officially switch on its Wi-Fi network, Telstra Air, on Tuesday with 4000 hotspots, mostly converted payphones, in 250 cities and towns.... Read more

Brandis hits telcos with new security reforms... Read more

Brisbane hailstorm linked to backlog in inspections of written-off repairable cars, delays tipped to finish by July’s end... Read more

Australia Post to cut jobs... Read more

Post workers demand answers as cuts loom. Workers are demanding answers from Australia Post after it set aside funds for an expected 1,900 job losses as part of plans to stem the bleeding from its mail business... Read more

The 'Ctrl C', 'Ctrl V' team: More issues raised about IOOF's research division. Embattled financial services giant IOOF runs its research division on the "smell of an oily rag", earning its team the nickname among advisers as the "Ctrl C, Ctrl V" team.... Read more

Opinion - Callam Pickering: A key engine of economic growth is faltering... Read more

Opinion/Analysis - Tristian Edis: Investors press 'go' on 3rd largest wind farm - has the big renewables drought ended?... Read more

International Headlines

North/South Americas Market Report: North and South American markets finished mixed as of the most recent closing prices. The Bovespa gained 1.58% and the IPC rose 0.42%. The S&P 500 lost 0.03%... Read more

European Market Report: European markets finished mixed as of the most recent closing prices. The CAC 40 gained 0.35% and the DAX rose 0.17%. The FTSE 100 lost 0.79%... Read more

Asian Market Report: Asian markets finished broadly lower today with shares in China leading the region. The Shanghai Composite is down 7.40% while Hong Kong's Hang Seng is off 1.79% and Japan's Nikkei 225 is lower by 0.31%... Read more

Americans hit the checkout aisle last month. Monthly spending in May rose the most in six years. It's a strong sign that the U.S. economy is waking up from its winter hibernation and gaining momentum... Read more

The Supreme Court’s billion dollar gay marriage stimulus. Marriage equality nationwide could mean a $2.6 billion spending boom over the next three years... Read more

The International Monetary Fund isn't just trying to solve Greece's woes, it's also doling out a lot of advice to America's Federal Reserve. IMF head Christine Lagarde has already told the Fed it should wait until 2016 to raise interest rates. Now, the IMF recommends that the Fed ditch its famous "dot plot."... Read more

Exxon Mobil, BP suspend Beaufort Sea drilling... Read more

US mobile operator Sprint has been told to pay $30m (£19m) to a company that claimed it used patents it did not own. Prism Technologies makes money licensing its patents, and has taken many companies that use them to court... Read more

Sirius XM Holdings Inc. on Friday agreed to pay $210 million to settle a case with major record labels over oldies music the company has aired. According to a filing with the Securities and Exchange Commission, the settlement resolves all past claims to the satellite-radio broadcaster’s use of pre-1972 tunes and enables it to broadcast the music through the end of 2017... Read more

Don't underestimate the power of the swoosh. Nike shares surged more than 4% Friday and hit a new all-time high. The athletic apparel giant reported strong quarterly results after the closing bell Thursday. Earnings rose 26% and easily beat Wall Street's estimates... Read more

Greece debt crisis: Athens rejects five-month bailout extension... Read more

Decision time strikes for Greek enigma Tsipras... Read more

Network Rail 'too big', says Sir Richard Branson. Network Rail is too big and should be broken up into regional units, Sir Richard Branson has told the BBC. Many of the delays that passengers on Virgin Rail suffer are down to Network Rail, he said... Read more

Tesco has reported a slower rate of decline in sales at its UK stores as it tries to stem the flow of customers switching to discount chains. UK sales fell 1.3% for the three months to the end of May, compared with a 4% decline a year earlier... Read more

French Interior Minister Bernard Cazeneuve said on Friday he had launched legal action targeting local managers of U.S.-based ride-sharing service Uber, denouncing the attitude of the company as "cynical" and "arrogant". France already ordered a nationwide clampdown on its UberPOP mobile app-based service on Thursday, siding with taxi drivers who blockaded major transport hubs in protests against the service... Read more

Russia extends food embargo by 1 year in tit-for-tat response to EU. Just two days after European Council ministers agreed to extend sanctions against Russia over its role in the Ukraine crisis by six months, Moscow has declared that its retaliatory ban on Western food imports is to remain in place for another full year. Experts say that despite the damage to business, the sanctions are unlikely to be lifted until next year, and possibly even until 2017... Read more

Center for Reforms may be set up in Russia to search for economic development ways.... Read more

Chinese shares tumble more than 7% amid Asian losses... Read more

Honda revises last year earnings due to airbag recall... Read more

Opinion - Rex Nutting: How’s the economy really doing? Look at Americans’ income... Read more

Opinion - Alan Kohler: There's good reason why a 'Grexit' won't happen. The truth is this is actually just a currency war, and there really is no chance the all-powerful German export machine will allow Greece to exit the Eurozone, writes Alan Kohler... Read more

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