Of the top five countries writes by Pam Tipa in RuralNews, New Zealand trades with, it only has trade deals with two, an ExportNZ conference has heard.
“That leaves us very vulnerable,” says trade expert Charles Finny. “We don’t have links to those markets that others do.”
National trade spokesman Todd McClay had earlier pushed the case for NZ to forge ahead in doing deals with like-minded countries.
Of our top five goods export countries -- China, Australia, US, EU and Japan -- we only have trade deals with China and Australia, he told the Auckland conference held on September 21.
McClay says when we do trade deals we get it right and trade flows increase significantly in both directions, as has been the case with China. He says that FTA got NZ through the global financial crisis (GFC).
“To continue to offer opportunities to NZ we need more trade deals.”
EU commission president Jean-Claude Juncker has expressed a desire to have a trade deal with NZ within two years; “that will take a lot of hard work”, McClay added. He expects this will take “three years rather than two”.
NZ is one of only six WTO countries that don’t have a trade deal with EU.
McClay says with the UK we are in a good space since Brexit was announced last year. UK trade secretary Liam Fox confirmed earlier this year that NZ will be first cab off the rank with Australia for new FTAs once they got through Brexit.
Meanwhile, McClay says TPP11 is a high-quality deal.
Continue to read Pam's full article on RuralNews || October 6, 2017 |||
A subsidiary of Graphic Packaging has completed the acquisition of Spanish carton manufacturer Norgraft Packaging for an undisclosed sum.
Norgraft, which aims at food and household goods markets, operates two converting plants in Maliaño and Requejada, and converts around 25000 tons of paperboard each year.
Graphic Packaging president and CEO Michael Doss said: "The announced transaction is consistent with our strategy to pursue acquisitions that allow us to grow our folding carton volume in attractive geographies and end-markets, improve our cost position, service our customers with excellence, and increase our mill to converting plant integration levels over time.”
Established in 1998, Norgraft Packaging has a workforce of over 200 and specializes in cardboard packaging.
The firm also has pollution risks prevention system that ensures environment and occupational health and safety by manufacturing products under controlled hygienic conditions.
With a workforce of over 10000, Graphic Packaging offers packaging solutions to food, beverage and other consumer products companies.
The firm specializes in folding cartons, paperboard, packaging machinery, package design and recycled paperboard.
In May 2016, Graphic Packaging has acquired Australian folding carton supplier Colorpak, which converts around 38,000 tons of paperboard into folding cartons annually though three facilities in Melbourne and Sydney in Australia, and Auckland, New Zealand.
Graphic Packaging’s subsidiary Graphic Packaging International has purchased the converting assets of Carded Graphics, a Staunton-based provider of packaging solution to the food, craft beer and other consumer product markets, in October 2015.
| A Graphic Packaging release || October 6, 2017 |||
Leading food company Alliance Group announced today it is investing $54 million in capital expenditure in the co-operative over the next year as its annual road-show is held across the country. Alliance Group chief executive David Surveyor said the success of the business strategy meant the co-operative was in a position to re-invest in continuing to build the company’s operational performance. In addition to a pool payment, the company will have a bonus share issue and reward farmer shareholders by increasing their shareholding in the co-operative. The level will be based upon the supply of lambs, sheep, cattle, calves and deer during the 2017/18 season. “Alliance is now a much fitter co-operative as a result of our focus on lifting efficiency and improving sales and marketing,” said Mr Surveyor. “We are making good progress against our key measures with a stronger balance sheet, improved profitability and better livestock pricing for farmers. “We’re working hard to ensure our improvements are sustainable through further investment, growing our value add and building our organisational capability.: The co-operative was encouraged by its health and safety performance with the Total Recordable Injuries Frequency Rate improving by 42% year on year. “Looking after our people is the right thing to do. We have made good progress, but there is still some way to go. We were unfortunately reminded of that by a serious accident at our Smithfield plant in March.” As part of the strategy programme, Alliance Group has made significant investments in technology and operational improvements, lifting processing and productivity across its plants and incorporating best practice from around the world, said Mr Surveyor. That included new primal cutters and middles technology at the Dannevirke plant, a range of investments to lift the recovery of “5th quarter” products, improving chiller performance, investing in the Pukeuri plant beef chain and packaging innovations. The co-operative expected to make further gains as a result of its recent acquisition of Singapore-based marketing and sales company Goldkiwi Asia, which will be known as Alliance Asia. Alliance is focused on being a co-operative and supporting New Zealand’s best farmers. “We are doing a better job of rewarding loyal shareholders. More frequent minimum price contracts are helping provide our farmers with certainty. However, there is still some work to do in this area and our prime beef performance needs to be lifted.” Alliance is continuing to maximise the schedule price to farmers, he said. Meanwhile, James Ogden is to retire as an Alliance director at the end of his term of appointment on 30 November. He will be replaced by Peter Schuyt. Mr Schuyt is an experienced independent director on a range of New Zealand businesses including Tatua Co-Operative Dairy Company, TSB Bank Ltd and Foodstuffs North Island Ltd. He has also held senior executive roles at the New Zealand Dairy Board, Fonterra and the NZ Post Group. Mr Schuyt is a Chartered Fellow of the New Zealand Institute of Directors. The annual roadshow programme, covering the North and South Islands, began in Dannevirke on 2nd October and finishes in Fortrose on 19 October.
| An Alliance release || October 6, 2017 |||
The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says.
“The 2016/17 Crown accounts are a direct demonstration of the hard work of New Zealanders since the Global Financial Crisis and the benefit of a strong economic plan that is delivering consistent growth,” Mr Joyce says.
Core Crown tax revenue was $75.6 billion for the 2016/17 year, up 7.4 per cent from the previous year with all major tax types increasing.
“The 12.3 per cent growth over last year in company tax, a 7.1 per cent growth in GST, and a 7.4 per cent growth in personal income tax, are a direct consequence of the confidence and growth of Kiwi companies and the growth in jobs.”
Core Crown tax revenue growth of $5.2 billion outpaced core Crown expenditure growth of $2.4 billion.
The final OBEGAL result for the year is $363 million better than predicted by Treasury at the time of the Pre-election Fiscal Update, largely due to core Crown expenditure being $502 million less than forecast.
“This better result should be seen as a one-off. Treasury advises that much of this expenditure reduction reflects timing differences and is likely to reverse out in the years ahead,” Mr Joyce says.
The country’s net debt has reduced in nominal terms by $2.4 billion from last year, to $59.5 billion. Net debt has dropped to 22.2 per cent of GDP.
“This is the first time net debt has reduced in actual dollar terms since the GFC and the Christchurch earthquakes,” Mr Joyce says. “It’s a significant milestone in the country’s economic recovery from those twin shocks.”
Mr Joyce says that the 2016/17 full year result should be interpreted with caution, and not seen as automatically flowing through into higher surpluses than forecast in the years ahead.
“Treasury has based its forecasts on current economic settings and some reasonably solid growth predictions for the years ahead. A number of commentators have noted a softening of growth indicators in recent days.
“The Government’s future surpluses will be needed to meet the cost of the significant investments we have committed to as part of the next four Budgets including the Government’s $32.5 billion infrastructure programme.
“We also need to keep reducing debt over time to prepare for the next rainy day event.”
| A Beehive release || October 5, 2017 |||
New Zealand’s economy and financial system remain on a sound footing despite continuing challenges in the global environment, according to the Reserve Bank’s Annual Report 2016-17 released today. The 2016-17 financial year saw a pickup in economic activity in most major economies, although inflation and wage pressures remained subdued Supported by improving domestic economic conditions, the New Zealand banking system remains sound and well capitalised. “As a small, open economy, developments beyond our shores have a large influence on New Zealand’s economic outcomes,” former Governor Graeme Wheeler says in the Report. Mr Wheeler finished his term as Governor on 26 September. Acting Governor Grant Spencer said that in the last financial year the Bank undertook comprehensive research into the drivers of low inflation and in particular the formation of inflation expectations. “We have also focused a lot of policy work on strengthening the financial system against potential shocks. "Rapid house price inflation in recent years led to increased financial stability risks. In response, the Bank introduced loan-to-value restrictions on house lending, including tighter LVR restrictions on property investors from October 2016. These measures have improved the resilience of the banking system. "We have revised the outsourcing policy for larger banks, initiated improvements to banks’ quarterly disclosures, and undertaken stress testing.” During the year, the IMF undertook a comprehensive review of New Zealand’s financial sector regulatory regime through its Financial Sector Assessment Program (FSAP). “The IMF recognised a number of positive features of New Zealand’s institutional framework and the Bank’s policy approach, and we are assessing their recommendations aimed at strengthening the regulatory framework,” Mr Spencer said. In other highlights the Board conducted its annual overall assessment of the performance of the Bank, and this is included in the Bank’s Annual Report. The Board also noted that the Bank retained high audit ratings and achieved its operational objectives. A dividend of $145 million has been paid to the Government. The Annual Report is available as a downloadable PDF and the Bank has produced two videos for a general audience designed to communicate the Bank’s role in maintaining a sound and efficient financial system through the use of macro prudential policy. More information• The Reserve Bank’s Annual Report 2016-17 (pdf)• Video 1 - Global forces• Video 2 – Keeping banks healthy
| A RBNZ release || September 29, 2017 |||
Statement by Reserve Bank Acting Governor Grant Spencer: The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 1.75 percent. Global economic growth has continued to improve in recent quarters. However, inflation and wage outcomes remain subdued across the advanced economies and challenges remain with on-going surplus capacity. Bond yields are low, credit spreads have narrowed and equity prices are near record levels. Monetary policy is expected to remain stimulatory in the advanced economies, but less so going forward. The trade-weighted exchange rate has eased slightly since the August Statement. A lower New Zealand dollar would help to increase tradables inflation and deliver more balanced growth. GDP in the June quarter grew in line with expectations, following relative weakness in the previous two quarters. While exports recovered, construction was weaker than expected. Growth is projected to maintain its current pace going forward, supported by accommodative monetary policy, population growth, elevated terms of trade, and fiscal stimulus. House price inflation continues to moderate due to loan-to-value ratio restrictions, affordability constraints, and a tightening in credit conditions. This moderation is expected to continue, although there remains a risk of resurgence in prices given population growth and resource constraints in the construction sector. Annual CPI inflation eased in the June quarter, but remains within the target range. Headline inflation is likely to decline in coming quarters, reflecting volatility in tradables inflation. Non-tradables inflation remains moderate but is expected to increase gradually as capacity pressure increases, bringing headline inflation to the midpoint of the target range over the medium term. Longer-term inflation expectations remain well anchored at around two percent. Monetary policy will remain accommodative for a considerable period. Numerous uncertainties remain and policy may need to adjust accordingly. Note: Following the departure of Graeme Wheeler, the Reserve Bank’s policy making Governing Committee now comprises: Acting Governor Grant Spencer, Deputy Governor Geoff Bascand, and Assistant Governor John McDermott.
| A RBNZ release || September 28, 2017 |||
This morning, New Zealand-based cryptocurrency brokerage BitPrime has released a new service that now allows Kiwis to buy and sell Litecoin (LTC) and Ethereum Classic (ETC) using New Zealand Dollars. BitPrime is a full-service brokerage offering phone and email support, in addition to facilitating cryptocurrency trades. BitPrime has launched these new coins alongside the Ripple, Ethereum and Bitcoin they already stock on their site. The innovative business can also source almost any cryptocurrency from this snowballing asset-class to customers via custom orders.
Litecoin and Ethereum Classic are considered Bitcoin alternatives and they have been quickly gaining traction with investors in the cryptocurrency market. “The popularity of cryptocurrencies in NZ has been increasing rapidly, with trade volumes having grown more than eight-fold since we launched in March,” says Ross Carter-Brown, Senior Partner at BitPrime. As a testament to this, the total cryptocurrency market capitalisation is currently NZD$188 billion at the time of writing, which is an increase of 830% since August 2016.
To date, these “Bitcoin alternatives” like Litecoin, have increased 1520% over the past year with an approximate market capitalization of NZD$3.7 billion. Ethereum Classic has also grown in popularity with NZD$47 million turn-over per day. But what exactly is Litecoin and Ethereum Classic? Essentially Bitcoin, Litecoin, and Ethereum Classic are all cryptocurrencies, with some technical differences between the three.
Litecoin (LTC) was developed by the ex-Google engineer, Charles Lee. Some have said that if Bitcoin is the “gold” of crypto-currencies, Litecoin could be considered the “silver.” Litecoin boasts faster confirmation of transactions than Bitcoin, as well as a higher coin limit of 84 Million (compared to Bitcoin’s 21 Million). It has also been theorised that since Litecoin has a faster block time, this reduces the risk of “double spending” attacks (the same coin being spent twice) and therefore more secure.
On the other hand, Ethereum classic (ETC) is the original Ethereum blockchain with Ethereum (ETH) being the new fork, after the Ethereum blockchain split in 2016. Ethereum Classic (ETC) uses “Smart Contracts” which is revolutionising the business world including many industries such as insurance and real estate.
A Bitcoin success story that went viral on social media is Kristoffer Koch from Norway. Koch invested around $27 in Bitcoin in 2009 and then forgot about it for four years. He remembered about his Bitcoin wallet in 2013, which had then grown in value to $886,000.
BitPrime’s new launch has opened the markets up for Kiwi investors to buy and sell Litecoin and Ethereum, as alternatives to Bitcoin. As the demand for cryptocurrencies increases, Carter-Brown says, “we aim to make cryptocurrencies easily available to everyday New Zealanders, and expanding our offering is part of achieving that goal.”
You can contact BitPrime at www.bitprime.co.nz or 0800 4333 55 for more information about their Litecoin and Ethereum Classic launch.
| A BitPrime release || September 28, 2017 |||
Acquires CommInsure and Sovereign, enters long-term distribution partnership with CBA and ASB
AIA announced today that it has reached an agreement to acquire CommInsure in Australia and Sovereign in New Zealand. It will also enter into 20-year strategic bancassurance arrangements with Commonwealth Bank of Australia (CBA) in Australia and ASB Bank (ASB) in New Zealand. Subject to regulatory approvals, the acquisition is expected to be completed in 2018.
The acquisition and partnership agreement will deliver a range of important benefits to AIA and our stakeholders, including:
It will make AIA the leading life insurer in both Australia and New Zealand’s profitable individual life protection segment It will be immediately accretive to AIA’s earnings It will add to AIA’s strength in retail and group insurance by materially expanding and strengthening AIA’s distribution capabilities and customer reach to CBA and ASB’s combined base of 13 million customers
AIA Australia and New Zealand CEO, Damien Mu said: “The scale and nature of the agreements with CBA and ASB represent an enormous step forward for AIA in the pursuit of our purpose to make a difference in people’s lives, and will significantly transform and expand our market leading presence in Australia and New Zealand.”
“By partnering with CBA and ASB, we can bring together the expertise of each organisation to further improve our offering to help champion Australia and New Zealand to be the healthiest and most protected nations in the world. This is an excellent outcome for all customers that we help not only through financial protection, but also by improving their health and wellbeing.”
Mr Mu said, “We have a strong history of building trusted, engaging and enduring partnerships with leading financial institutions in Australia, New Zealand and across the region. We look forward to welcoming our new team members from CommInsure and Sovereign in due course, and to building a successful partnership with CBA and ASB. We remain absolutely committed to our existing partners, and will be focused on ensuring that we continue to deliver the best possible outcomes for them and their customers.”
AIA Regional Chief Executive, Bill Lisle, said: “AIA Group is deeply committed to Australia and New Zealand and we are excited about our future in both markets, particularly in light of the highly attractive agreement we have announced today. We have a high performing and very experienced team in Australia and New Zealand, which is part of AIA Group, one of the largest and strongest life insurance companies in the world. We look forward to ensuring that the acquisition and bancassurance partnerships we have agreed to with CBA and ASB generate very positive and enduring benefits for our customers in both markets and indeed all of our stakeholders.”
Theresa Gattung, Chair of AIA Australia, said: "This is an exciting opportunity for AIA Australia to further strengthen our leading positions in both markets and to serve our customers. We have a great team, and we look forward to expanding on this with the Sovereign and CommInsure teams in due course, and building our partnership with CBA and ASB. I would also like to thank my fellow Board Members Peter Yates, Elizabeth Flynn and Paul Costello for their contribution and support during this time."
ABOUT AIA AUSTRALIAAIA Australia Limited is an independent life insurance specialist with over 40 years of experience building real and sustainable partnerships. The company employs over 900 people. AIA Australia offers a range of products that protect and enhance the lives of more than 3.3 million Australians and is widely recognised as a market leader in product innovation and development. In 2016, AIA Australia paid over 16,000 claims totalling over AUD$1.1 billion.
AIA Australia is the country’s second largest life insurer with a market share of 14.6% and total inforce premium of over AUD$2.3 billion. The company works closely with major financial institutions and corporate partners to provide life insurance solutions for their customers. AIA Australia is the number one group insurer by inforce premium. In addition, AIA Australia is the fastest growing provider of retail life insurance products sold through financial advisers, ranked number one for new business on a rolling 12 month basis, with a market share of 16.8%. AIA Australia also works with a network of affinity partners that distribute life insurance products. By having a partnership philosophy at the core of its business, AIA Australia is focused on building genuine relationships and delivering real value to its business partners.
In March 2014, AIA Australia introduced ‘Vitality’ – the world’s leading scientifically-backed health and wellness programme, to the Australian market. AIA Vitality aims to be the catalyst for real change to the positive health outcomes of Australians.
ABOUT AIA NEW ZEALANDAIA New Zealand is a member of the AIA Group and employs over 140 people. Since the company arrived in New Zealand in 1981, AIA New Zealand has consistently provided the market with innovative personal and business insurance products that suit the Kiwi way of life. Over the last quarter, AIA New Zealand led the market for new business sales in corporate solutions.
Today AIA offers a complete range of risk management products that focus on the needs of customers. AIA New Zealand is based in Auckland with regional offices in Wellington and Christchurch. However, through a network of financial advisers, AIA reaches every corner of the country.
AIA New Zealand is a member of the Insurance and Savings Ombudsman Scheme (ISO) and the Health Funds Association of New Zealand (HFANZ). Standard and Poor’s reaffirmed AIA New Zealand’s insurer financial strength rating at AA- in June 2016.ABOUT AIA
AIA Group Limited and its subsidiaries (collectively “AIA” or the “Group”) comprise the largest independent publicly listed pan-Asian life insurance group. It has a presence in 18 markets in Asia-Pacific – wholly-owned branches and subsidiaries in Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau, Brunei, Cambodia, a 97 per cent subsidiary in Sri Lanka, a 49 per cent joint venture in India and a representative office in Myanmar.
The business that is now AIA was first established in Shanghai almost a century ago. It is a market leader in the Asia-Pacific region (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of US$200 billion as of 31 May 2017.
AIA meets the long-term savings and protection needs of individuals by offering a range of products and services including life insurance, accident and health insurance and savings plans. The Group also provides employee benefits, credit life and pension services to corporate clients. Through an extensive network of agents, partners and employees across Asia-Pacific, AIA serves the holders of more than 30 million individual policies and over 16 million participating members of group insurance schemes.
AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock code “1299” with American Depositary Receipts (Level 1) traded on the over-the-counter market (ticker symbol: “AAGIY”).
| An AIA release || September, 21 |||
Memorandum of understanding signed to combine European steel activities in 50/50 joint venture
Positioning as strong quality and technology leader
Annual synergies of €400 million to €600 million expected
Signing of agreement targeted for early 2018 and closing by 2018 year-end
thyssenkrupp and Tata Steel have today signed a memorandum of understanding to combine their European steel activities in a 50/50 joint venture. Their aim is to create a leading European flat steel player to be positioned as quality and technology leader. The new entity is set to have pro-forma sales of about €15 billion and a workforce of about 48,000, currently at 34 locations. Shipments are envisioned to be about 21 million tons a year.
Dr. Heinrich Hiesinger, CEO of thyssenkrupp AG: “Under the planned joint venture, we are giving the European steel activities of thyssenkrupp and Tata a lasting future. We are tackling the structural challenges of the European steel industry and creating a strong No. 2. In Tata, we have found a partner with a very good strategic and cultural fit. Not only do we share a clear performance orientation, but also the same understanding of entrepreneurial responsibility toward workforce and society.”
Natarajan Chandrasekaran, Chairman of Tata Steel: “The Tata Group and thyssenkrupp have a strong heritage in the global steel industry and share similar culture and values. This partnership is a momentous occasion for both partners, who will focus on building a strong European steel enterprise. The strategic logic of the proposed joint venture in Europe is based on very strong fundamentals and I am confident that thyssenkrupp Tata Steel will have a great future.”
To be named thyssenkrupp Tata Steel, the planned joint venture will be managed through a lean holding company based in the Netherlands. It is to have a two-tier management structure comprising a management board and a supervisory board. Both boards are to have equal representation from thyssenkrupp and Tata. The codetermination structures in Germany, the Netherlands and Great Britain will be retained.
thyssenkrupp intends to contribute its Steel Europe business to the planned joint venture. There are also plans for the joint venture to include thyssenkrupp MillServices & Systems GmbH, a steel mill services provider that is part of the Materials Services business. Tata would add all of their flat steel activities in Europe.
The memorandum of understanding signed today paves the way for thyssenkrupp to involve employee representatives at thyssenkrupp AG and in the Steel business in the process ahead on an ongoing basis. All employee participation rights will continue to be respected as before.
In the months ahead, due diligence will be conducted. In the process, the negotiating parties will give each other access to confidential business documents to the extent permissible between competitors. Based on this as well as on discussions with the entire Supervisory Board, it is envisaged to sign a contract in early 2018. Closing – the effective start of the joint venture – could take place in late 2018 following antitrust approval by the relevant authorities.
Synergies within the joint venture
In the initial years – from closing onward – the joint venture partners plan to focus on establishing the joint venture and leveraging synergies. These are anticipated among other things from integrating sales, administration, research and development, joint optimization of procurement, logistics and service centers as well as improved capacity utilization in downstream processing. After the ramp-up phase, the joint venture partners expect annual synergies of €400 million to €600 million.
Additionally, the production network is to be reviewed starting in 2020 with the aim of integrating and optimizing the production strategy for the entire joint venture. It is not yet possible to quantify the additional synergies from this integration in detail. The scope for optimization also depends on numerous external factors such as the outcome of the Brexit negotiations and the implications that follow. Other external parameters include the development of the regulatory environment in areas such as emission trading and international trade policy.
The two joint venture partners expect that leveraging the cost synergies across the entire entity will require a reduction in workforce over the years ahead by up to 2,000 jobs in administration and potentially up to 2,000 jobs in production. This burden is expected to be shared roughly evenly between the two parties, which means a total of about 2,000 jobs at thyssenkrupp.
“We will not be putting any measures into effect in the joint venture that we would not have had to adopt on our own. On the contrary: By combining our steel activities, the burdens for each partner are lower than they would have been on a stand-alone basis,” said Hiesinger.
The steel industry has faced massive challenges in Europe for many years: Steel demand is characterized by a lack of dynamic. There is structural overcapacity in supply and constantly high import pressure. This leads to the fact that various stages in the value chain are operating well below capacity. Consequently, all producers are under pressure to fill capacity and forced to pass on restructuring gains to the market time and again. The result is a downward spiral and a need for restructuring about every three to four years, with major steel assets coming under threat of closure in the medium term.
Reasons for partnering with Tata Steel
There are five reasons why combining the European steel activities of thyssenkrupp and Tata is the best possible next consolidation move:
Economies of scale: Economies of scale are a key success factor in a market caught up in ongoing consolidation. Combining the No. 2 and No. 3 in Europe results in a powerful new No. 2 for quality flat steel with a very competitive market position and promising growth prospects.
Complementarity: The businesses of thyssenkrupp and Tata are a good complementary fit. thyssenkrupp is stronger in the OEM sector while Tata’s strength lies with industrial customers. The main operating locations in Duisburg, IJmuiden and Port Talbot have good logistics links and serve customers in different, economically powerful regions. That makes for significantly broader overall coverage of customer sectors throughout Europe.
Performance orientation: The steelworks of thyssenkrupp and Tata rank among the most efficient facilities in Europe. Thanks to effective cost management, both producers operate at a profit. The two companies have paved the way for this over recent years, piece by piece and independently of each other: Tata, for instance, with the restructuring of Port Talbot and by selling long steel activities, and thyssenkrupp with the sale of CSA and capacity adjustment at HKM.
Innovative strength: Both partners aspire to quality and technology leadership in the European steel industry and continually develop innovative products and solutions for customers. High-tech steels are frequently the basis of industrial value chains in Europe and a key competitive differentiator.
Culture and capabilities: The two partners each have a highly capable and dedicated workforce who strongly identify with their company. thyssenkrupp and Tata have a cultural DNA equally characterized by the will to embrace change in order to secure their future. And both companies have the backing of strong shareholders through a trust structure that perpetuate the ideas and values of the original owners.
Further milestone on strategic way forward
Steel Europe will be accounted for on the balance sheet as a discontinued operation after signing. From closing of the transaction, the 50-percent share in the joint venture will be accounted for using the equity method, meaning based on the proportionate carrying amount of the investment. When the joint venture comes into effect, this will bring about a significant improvement in key balance sheet ratios for thyssenkrupp AG, most notably in the equity ratio and in gearing (ratio of net financial debt to equity). At the same time, the move creates a solid financial structure for the steel business.
The planned joint venture marks another key milestone on thyssenkrupp’s strategic way forward. In its evolution into a strong industrial group, thyssenkrupp has two priority aims: reducing dependency on the highly volatile steel business and enabling optimum development of all business areas.
Heinrich Hiesinger, CEO of thyssenkrupp AG: “We have always targeted the best solution for thyssenkrupp. A joint venture with Tata is the only option that addresses the structural overcapacities in the European steel market, that creates substantial added value through synergies and at the same time is in line with our corporate culture. This also marks a clear commitment to our roots, as the joint venture enables thyssenkrupp to retain its involvement in steel.”
Better than expected balance of payments figures out this morning underscore the strength of both the services and goods sectors of the New Zealand economy, Finance Minister Steven Joyce says.
New Zealand's current account deficit narrowed to $1.6 billion in the June 2017 quarter, $1.2 billion lower than in the previous quarter. This is mainly driven by the services sector, with a surplus of $1.3 billion, the highest surplus on record.
New Zealand’s current account deficit is 2.8 per cent of GDP in the June year, down from 2.9 per cent in the last quarter, ahead of market forecasts for a deficit of 3.1 per cent.
"Today’s result is one of the dividends of an increasingly diversified economy, with both services and goods exports performing well in the quarter,” Mr Joyce says. “The services sector in particular, had a strong run in the quarter driven by $3.7 billion of spending by overseas travellers.”
Key highlights included:
- Services surplus increased $295 million to $1.3 billion
- The goods deficit decreased $677 million to $446 million
- New Zealand’s net international liability position is equivalent to 57.5 per cent of GDP, down from 57.8 per cent in the previous quarter, the lowest since records began.
"The days of New Zealand as a one-trick economy are behind us, but this does not mean we can rest on our laurels. We need to continue the government's strong economic plan so we can further diversify and grow our economy.”
| A Beehive release || September 21, 2017 |||
Palace of the Alhambra, Spain
By: Charles Nathaniel Worsley (1862-1923)
From the collection of Sir Heaton Rhodes
Oil on canvas - 118cm x 162cm
Valued $12,000 - $18,000
Offers invited over $9,000
Contact: Henry Newrick – (+64 ) 27 471 2242
Mount Egmont with Lake
By: John Philemon Backhouse (1845-1908)
Oil on Sea Shell - 13cm x 14cm
Valued $2,000-$3,000
Offers invited over $1,500
Contact: Henry Newrick – (+64 ) 27 471 2242