Dec 7,  2017  -  Fonterra Co-operative Group Limited today reduced its forecast Farmgate Milk Price for the 2017/18 season from $6.75 to $6.40 per kgMS and updated the market on its financial results for the first three months of the 2018 financial year. Chairman John Wilson says the lower forecast Farmgate Milk Price reflects a prudent approach to ongoing volatility in the global dairy market. The GlobalDairyTrade price for whole milk powder is a big influencer of the Farmgate Milk Price and it has declined by almost 10 percent since 1 August 2017.

“While the result of the arbitration with Danone has impacted our earnings guidance for the season, it has no influence on our forecast Farmgate Milk Price,” says Mr Wilson.

“What is driving this forecast is that despite demand for dairy remaining strong, particularly in China, other parts of Asia and Latin America, we are seeing strong production out of Europe and continued high levels of EU intervention stockpiles of Skim Milk Powder.

“This downward pressure on global prices is being partly offset by the lower NZ-US dollar exchange rate,” says Mr Wilson.

“Our strong financial position, customer order book at this point in the year, and confidence in demand means that the Board is able to increase the payments made in January by 10 cents per kgMS and will hold the Advance Rate through to the payments in May.

“In effect, our farmers will receive equal or higher payments for their milk over this period than were scheduled under the previous $6.75 milk price.

Fonterra has also updated its full season New Zealand milk collection forecast due to ongoing challenging weather conditions. The Co-operative has reduced its forecast by 1 per cent to 1,525 million kgMS – the same volume as last season.

First Quarter Financial Results

Fonterra’s first quarter revenue of $4 billion is up 4 per cent on the same period last year. Sales volumes are down 20 per cent to 3.9 billion liquid milk equivalent (LME), while the gross margin of 16.7 per cent is also down.

Chief Executive Theo Spierings says the first quarter financial results were generally as expected as the Co-operative started the year with record low inventory followed by the second year of low spring milk collections from New Zealand due to wet weather.

“This has challenged our Ingredients business where we had lower volumes to sell. As a result, sales were down 19 per cent to 3.6 billion LMEs compared to the same time last year.

The gross margin in Ingredients was in line with the second half of last year. However, when we compare it to the same period last year it was down from 12.1 per cent to 8.1 per cent, mainly due to the rise in commodity prices,” says Mr Spierings.

“Our Consumer and Foodservice business continued with strong sales volumes in our key markets across both Greater China and Asia with, overall, just a 3 per cent decline to 1.3 billion LMEs in total volume compared to the record levels at the same time last year.

“Gross margin in Consumer and Foodservice was 24 per cent. While this is down on the 31 per cent in the first quarter of 2017 when input costs were lower, it is up on the gross margin percentage in the last quarter of 2017. This positive trend demonstrates we can create more value in our Consumer and Foodservice business despite higher input costs and reflects the strength of our strategy of moving more volume into higher value.”

Mr Spierings says the Co-operative expected performance to be weighted to the second half of the year and remains confident in its full year forecasts following revisions after the recent Danone announcement.

“We are focused on continued tight operational and financial discipline and a keen eye on our customers’ needs to maximise sales opportunities.”

 | A Fonterra communication  ||  December 7, 2017   |||

Dec 7, 2017  - New Zealand's burgeoning fintech sector is coming of age with the likes of the Reserve Bank thinking more deeply about the impact changing technology will have on the broader financial system.  The central bank identified the new wave of fintech as having "the potential to significantly change the structure of the financial sector" in its six-monthly financial stability report last week, singling out blockchain, crypto-currencies, application programming interfaces (APIs), big data and artificial intelligence, and digital platforms for peer-to-peer services among the most important.

Head of financial stability Bernard Hodgetts said in an interview last week that the central bank is thinking deeply about various scenarios arising from the new technology, and has identified open banking - which decentralises banking through third-party APIs - and crypto-currencies as areas where it can beef up its research.

"We've put quite a bit of thought into what sort of scenarios might lead to the core banking system suddenly facing more competition than it previously did," Hodgetts told BusinessDesk. "The core level of profitability of the system could potentially be competed away if you had some form of new entrant into the market that could take business away from the banking sector and I think the banks would be very mindful of that risk."

The Reserve Bank's decision to highlight fintech in the report follows earlier efforts by the likes of the Ministry of Business, Innovation and Employment and the Financial Markets Authority to support innovation in financial services, and the bank wants to work with other authorities to make sure it doesn't stifle digital innovation.

Continue here to read the full article on ShareChat ||  December 6, 2017   |||

Dec 5,  2017  - Auckland Airport advises passengers travelling internationally in December 2017 and January 2018 to allow an extra 30 minutes for their journey through the terminal building.   Anil Varma, Auckland Airport’s acting general manager – aeronautical operations, says, “December and January are the busiest months of the year at our international terminal. Known as the summer peak, this year we are expecting around 162 international flights every day, with international passenger numbers expected to be approximately 6% higher than last summer. We are also expecting an average of around 37,500 passengers to use the international terminal on each of our ten busiest days this summer.”

“Many of us have a standard routine when departing or arriving Auckland Airport. Just like last year, we recommend everyone allows an extra 30 minutes for travel through the international terminal over the next couple of months. This will help ensure they have a more relaxed journey. They should also give themselves extra time to travel to and from the airport, given the high level of roadworks happening around the Auckland region again this summer.”

“Auckland Airport has worked extensively with stakeholders at the airport, including both the airlines and joint border agencies, to ensure the airport can operate efficiently and effectively during the busy summer period.”

Throughout the year Auckland Airport has invested more than $1 million every working day to make improvements to help support the growth in international passengers and aircraft, including building:

· a new outbound border processing and security screening area, and a new space for departing international passengers to repack and relax after security screening;

· a new gate lounge with two airbridges on Pier B of the international terminal – Gate 17 – to accommodate a large B787 or A380 aircraft, or two smaller aircraft. This new gate lounge increases the capacity of our western Pier B by 50%;

· the first half of our exciting new international passenger lounge and its retail hub;

· new toilet facilities in the international departure area;

· a new Strata Lounge – a comfortable and relaxed space for travellers who do not belong to an airline lounge programme plus 14 airlines that choose to use the lounge to accommodate their premium passengers prior to boarding;

· an upgraded bus lounge on Pier B to further improve journeys for travellers transferring between the terminal and an aircraft parked on remote airfield stands; and

· a new fully-serviced remote airfield stand to accommodate international aircraft.

In preparation for this summer we have also:

· reconfigured the international check-in area to provide seven more service counters – an 8% increase;

· invested in 15 more mobile international self-service check-in kiosks – increasing the total number of available mobile check-in kiosks to 60;

· purchased two new Aviramps to provide a safer and better boarding or disembarking experience for passengers whose aircraft is parked on a remote airfield stand; and

· recruited extra staff, including 70 Passenger Experience Assistants, to help passengers at the airport.

We have also continued to work closely with the New Zealand Aviation Security Service, Customs New Zealand and the Ministry for Primary Industries. The New Zealand Aviation Security Service has installed four new state of the art security screening machines in the international departure area to increase passenger processing times. Customs New Zealand has increased the eligibility for their eGates to include Chinese passport holders, and more nationalities are expected to be delivered throughout the summer period. Auckland Airport has built a new Green Lane for use by pre-selected New Zealand and Australian passport holders who are arriving in the country and have no biosecurity items to declare to the Ministry for Primary Industries.

We have also been working on a number of initiatives to improve the transport network around the inner airport roads, and working with the New Zealand Transport Agency and Auckland Transport to help improve traffic flows and reduce travel times to and from the airport. These initiatives include:

· a new slip lane and free left-turn as part of NZTA’s upgrade of the SH20A / Verrisimo Drive intersection;

· improving access to the domestic terminal forecourt for passengers, commercial transport operators and buses;

· completion of the first stage of an upgrade of Nixon Road to provide a new route from the south-east to Auckland Airport’s Park&Ride on Verissimo Drive that avoids the need to use Tom Pearce Drive and George Bolt Memorial Drive;

· an outbound bus and T2 lane on Tom Pearce Drive;

· increasing the frequency of Auckland Transport’s Airporter 380 bus service to every 15 minutes during peak periods; and

· Auckland Airport staff located within the Auckland Transport Operation Centre on peak days to assist with the proactive management of traffic light phasings for Auckland Airport’s network.

Passengers can play their part to help keep things moving at the international terminal this summer by:

· booking a car park online, well ahead of their day of travel to maximise their choice of location and to secure a better deal;

· allowing 30 minutes extra for their journeys through the international terminal building;

· ensuring their hand luggage meets airline requirements;

· completing their international departure card before reaching Customs;

· ensuring any liquid, aerosol and gel containers in their hand luggage are not larger than 100ml, and are all placed in one re-sealable, transparent plastic bag (20cm x 20cm or smaller) and put in an easily accessible location;

· following airline advice for recommended check-in times for passengers travelling to North America, due to additional security requirements for these flights;

· asking the person who is picking them up to park in The Wait Zone, until they receive a text or phone call saying you are ready for collection; and

· checking the Auckland Airport website and App for the latest flight and travel information.

“We thank everyone in advance for their understanding and support during our busiest time of the year,” says Mr Varma.

| An Auckland Airport release  ||  December 5, 2017   |||

DEc 5, 2017  - Inflation in New Zealand and world-wide has been persistently low since the 2008 global financial crisis, partly because of factors such as globalisation, the growth of China, the rise of the digital economy, and low inflation expectations.  In a speech today to the Institute of Directors, in Auckland, Reserve Bank Governor Grant Spencer said that persistently low inflation has prompted the Reserve Bank to think about whether it needs to tweak it’s approach to monetary policy. Mr Spencer explained a number of significant changes over the past decade have affected the outlook for inflation:  · Globalisation over the past 10 years has led to outsourcing of labour-intensive production to cheaper locations, which has lowered the price consumers pay for a wide range of goods and also placed    downward pressure on wages for lower-skilled jobs in advanced economies.  · The scale and growth of China’s economy has also had a profound effect. China has become the largest exporting nation in the world and its expansion of capacity has restrained the prices of industrial materials and a wide range of manufactured goods.  · New digital distribution channels and falling prices for ICT equipment have lowered import prices and reduced barriers to entry across a range of markets. Online competition in retailing, financial services, travel services, education and health has significantly altered the competitive landscape and put downward pressure on prices.  · The domestic economy has become more integrated with global markets, resulting in greater competition in traditionally sheltered sectors. Increased international labour mobility has been an important driver.  · Low inflation expectations have influenced the way businesses set prices and wages, adding further momentum to low inflation. These global trends appear to be changing the nature of the price formation process in New Zealand. “These factors may be reducing the leverage monetary policy has over inflation, although their persistence and impact on inflation in New Zealand remain uncertain,” Mr Spencer said. Monetary policy has less than fully offset the weakness in imported inflation which was not expected to be so persistent and has been overlaid with uncertain commodity price movements. The on-going shock has resulted in CPI inflation running below the 2% target mid-point. The policy response has been consistent with our flexible inflation targeting framework. More recently we have been assuming greater persistence in low global inflation and this is contributing to our current flat track for future OCR levels. “The changes in domestic pricing behaviour are causing our flexible inflation targeting approach to become more flexible. In pursuing our long term price stability objective, relatively more weight is being attached to output, employment and financial stability. However, this can only be sustained if monetary policy’s long term price stability credentials are maintained” Mr Spencer said. Read the speech: Low inflation and its implications for monetary policy

| A RBNZ release  ||  December 5,  2017   |||

Dec 5, 2017  -  Residential building activity volumes rose 4.1 percent in the September 2017 quarter, following a relatively flat period in the first half of the calendar year, Stats NZ said today. This figure excludes the effects of higher construction costs and typical seasonal patterns.  Non-residential building work, from office blocks to factories, also picked up, rising a seasonally adjusted 0.6 percent, following falls in the previous two quarters.

Combined, total building activity volumes rose 2.7 percent in the September 2017 quarter compared with the June 2017 quarter.

• View Graph
• View Table

Percent changeResidential and non-residential building work put in place, seasonally adjusted percentagechange in quarterly volumesResidential buildingsNon-residential buildingsSep-15Dec-15Mar-16Jun-16Sep-16Dec-16Mar-17Jun-17Sep-17-505-1010Stats NZJun-16● Non-residential buildings: 4.6

“Residential building activity is at a record high, while non-residential activity peaked in late 2016,” construction statistics manager Melissa McKenzie said.

“While the volume of residential building activity is at a record high, the number of new homes consented was higher in the mid-1970s and 2004. This may reflect that homes and alterations being built now are often bigger, more complex, and subject to different regulations.”

These quarterly statistics are a measure of past building activity, whereas building consents issued, which showed a decrease in the October 2017 month, is an indicator for the pipeline of upcoming building work.

| A StatsNZ release  ||  December 5,  20127   |||

Dec 5, 2017  -  High profile businessman and social entrepreneur, Tenby Powell, who chaired the government appointed Small Business Development Group for five years, is leading a call for the new Government to establish an Institute for Small Business.

The idea for a step-up from government in support of small business is resonating in New Zealand and farther afield says Powell who also represents New Zealand on the APEC Business Advisory Council (ABAC). “New Zealand needs to do much more to support our small business ecosystem. Small and medium-size enterprises (SMEs) account for 97 percent of all enterprises and are the engines of growth and innovation in the APEC region. For these companies to make an even bigger impact on the economy we need a dedicated Government entity focused on better understanding and supporting small business owners,” says Powell.

Early next year, coinciding with the first ABAC meeting for 2018 to be held in Auckland, he is gathering 100 top thinkers, business owners and entrepreneurs together to plan a road-map to future value creation for SMEs. Discussion at what’s being called The SME LEAP (Leading Enterprise Acceleration & Productivity) will include how an Institute of Small Businesss could work in New Zealand. High profile keynote speakers from other APEC nations will also share deep-seated knowledge citing examples from other APEC economies.

Small and medium-size enterprises (SMEs) employ over half the workforce across APEC economies and contribute significantly to economic growth, with GDP contributions ranging from 20 to 50 percent in the majority of APEC economies; New Zealand is circa 28 percent. However, according to Powell they only account for less than 35 percent of the direct exports, “New Zealand SMEs are particularly affected by this.”

Powell believes New Zealand is perfectly positioned to lift our SME performance and capture the value that will come from the recently signed Comprehensive and Progressive Trans-Pacific Partnership; the agreement signed by eleven APEC leaders, including Prime Minister Jacinda Ardern, in Da Nang last month.

“New Zealand’s physical Internet infrastructure is world class, following the rollout of the Ultra-Fast Broadband network and the continuation of the Rural Broadband Initiative. This positions us amongst the best network infrastructures in the developed world, and it’s an important enabler for small business to compete in overseas markets under the CP-TPP.”

Powell says the ABAC SME & Entrepreneurial Working Group which he co-chairs is a work stream with a high profile within APEC. “It is more socioeconomic than just economic per se. It acts as a superset for the subsets of cross-border liberalization, market access and the removal of non-tariff barriers for SMEs, financing for business expansion and capability development, integrating green SMEs into the global value chain, leveraging the digital economy, and greater support for women-in-business.”Powell believes establishing a Government Institute is the sort of big thinking required to ensure the Government better understands and delivers support to small business owners.

“An entity focused on delivering value to small business would be charged with developing well researched policy advice aimed at enhancing the ecosystem and environment in they operate, facilitating education for owner-managers, making access to the digital platforms more accessible, and working with banks to develop ways to fund SMEs without mortgaging the family home.”

Support for the idea has come from far and wide, including from business leaders from the Maori, Asian, Indian and New Zealand European economies.

Billy Te Kahika, Cultural Ambassador for Kingitanga says, “This is exactly what Maori small business owners have needed for some time. While larger Maori business can develop relationships with big overseas players, like Chinese funding partners, it’s the SME business owner who needs greater support and recognition. A well led government Institute has the ability to empower this support.”

Oceania Silk Road Network’s, William Zhao and Jerry He, agree. Mr He, who served on the Small Business Development Group with Powell says, “Chinese business owners who have made New Zealand their home are committed to the country’s development and see many opportunities under the new multi-lateral free trade agreement, the CP-TPP, signed in Da Nang.”

Founder and CEO of Indian radio network Tarana, Robert Khan who also served on the Small Business Development Group, is another avid supporter. “The Indian community will fully support any initiative that enables SME business owners to grow domestically and as exporters. It is as though an idea and its time has come together and we welcome discussion on the establishment of a Government Institute for SMEs.”

High profile Chinese business woman, Diane Wang, founder and CEO of DHgate, is speaking at the Summit. Wang, who represents ABAC China will travel to Auckland ahead of ABAC 1 and deliver a keynote address that Powell says will “resonate with any small business owner and particularly with women who are disadvantaged in terms of access to finance and global supply networks.”

Other speakers include incoming ABAC Chair, David Toua, who will coordinate the 21 nation ABAC agenda for 2018, and leading Malaysian business woman, Dato Rohana Mahmoud, Chair and Founder of RM Capital Partners.

Powell says, “Malaysia is an example of targeted resources in action to support small business through a government entity called the SME Corporation. The SME Corp is a central coordinating agency under the Malaysian Ministry of International Trade and Industry that formulates policies and strategies, and coordinates the implementation of SME development programmes across all related Ministries and Agencies. A similar entity, in the form of a government Institution, would work in New Zealand.”

| A Hunter Powell release  ||  December 5, 2017   |||

Dec 4, 2017  -New Zealand’s two-way trade with APEC reached $102 billion for the year ended September 2017, Stats NZ said today.  The Asia-Pacific Economic Cooperation (APEC) forum brings together 21 Pacific Rim member economies, including Australia, China, and the United States – three of our main trading partners.

"Asia-Pacific is the fastest-growing economic region in the world," international statistics manager Tehseen Islam said. "Over the last decade, New Zealand's two-way trade with APEC has grown $31 billion, and a $2.6 billion deficit is now a $4 billion surplus."

APEC is the Asia-Pacific's main economic forum where a number of trade agreements are reached. Talks are currently underway at APEC on the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Eleven of the 21 APEC countries are in the trade talks.

In the September 2017 year, New Zealand had a $4 billion surplus with APEC – we exported $53 billion worth of goods and services to APEC, and imported $49 billion. Most of our surplus with APEC countries is due to our $3 billion surplus with China. This is mainly due to New Zealand's exports of dairy products to China, and spending by visitors from China in New Zealand.

Dairy products our largest export to APEC nations

Dairy products are our largest export to the combined APEC nations. New Zealand exported $9 billion worth of milk powder, butter, and cheese to these countries in the September 2017 year, $2 billion short of the $11 billion high exported in the September 2014 year.

China is New Zealand’s largest export market for milk powder, butter, and cheese, totalling 28 percent – nearly $4 billion in the September 2017 year. Our next-largest export market for these products is Algeria, which makes up 5 percent. APEC countries (China, Australia, and Malaysia) account for three of our top five dairy export markets.

Vehicles lead the way in imports

New Zealand’s main imports from APEC are vehicles, machinery, and equipment. New Zealand imports a large amount of cars and trucks from Japan, Thailand, the US, and South Korea, all of which are APEC nations.

New Zealand imported $2 billion worth of electrical machinery and equipment from China in the September 2017 year, and nearly $4 billion worth of mechanical machinery and equipment from China, the US, and Japan combined.

Travel spending contributes to trade surplus

Travel also contributes significantly to our trade surplus with the APEC nations. Visitors and students from APEC nations provided $9 billion to the New Zealand economy in the September 2017 year through exports of travel services, mainly by visitors from Australia, China, and the US.

Spending by New Zealanders visiting APEC nations (imports of travel services) totalled $4 billion in the September 2017 year, with personal travel accounting for $3 billion of this. The majority of New Zealanders’ personal travel spending was in Australia, followed by the US. Visitors from the US added $1 billion to the New Zealand economy in the September 2017 year, while New Zealand visitors added $531 million to the US economy.

For more information about these statistics:

Visit Goods and services trade by country: Year ended September 2017See CSV files for download

| A StatsNZ release  ||  December 4, 2017   |||

Dec 4, 2017  -  Scott Technology is confident it can survive the growing prospect of a US-led trade war with manufacturing around the world spreading its risk, says chair Stuart McLauchlan.  The Dunedin-based maker of robotic and automation systems derives about 94 percent of its revenue from exports and has been a happy buyer of businesses to expand its operations over the years. McLauchlan reminded shareholders at today's annual meeting in Dunedin that he was hopeful US President Donald Trump's new administration would continue the work of its predecessors in liberalising trade flows.

"Unfortunately, we have now witnessed a withdrawal by the United States from this leadership position allowing China to now take this lead," McLauchlan said today. "Overhanging this are the dark clouds of a trade war initiated by the United States threatening to invoke tariffs against their trading partners."

Still, he was optimistic Scott's geographic diversity with manufacturing operations in North America, China and Europe would be enough to counter a trade war.

New Zealand's position as an open economy that trades with the world has been cited by policymakers as leaving the nation vulnerable to trade protectionism. At the recent East Asia Leaders Summit, US president Trump forcefully expressed a preference for bilateral deals as part of his 'America First' stance, having already withdrawn from the proposed Trans-Pacific Partnership and taking a hard-line in the North American Free Trade Agreement renegotiations currently underway.

Despite the cooling appetite for global trade, Scott's McLauchlan told shareholders the company's automation systems were poised to capture a growing appetite among firms to replace their ageing workforces with robotic and digital processes, and it had a "very full" order book across all sectors its services.

"The enquiries being received by Scott for our automation solutions is at an all-time high," he said.

Managing director Chris Hopkins told the AGM the company is "over-capitalised" and needs to grow, which will be through organic expansion and acquisitions.

Scott has about $26 million of surplus cash from its investment by cornerstone shareholder JBS, and Hopkins said his team has looked at more than 30 potential acquisitions but doesn't expect to complete any in the near term.

The shares were unchanged to $3.70 and have climbed 72 percent so far this year.

| Source: Sharechat  |  November 30,  2017   |||

Dec 1, 2017  - The tribunal in the arbitration with Danone on claims arising out of Fonterra’s WPC80 precautionary recall in August 2013 has issued its award. The tribunal has determined that Fonterra must pay a total of NZD $183 million (€105 million) in recall costs suffered by Danone. In reacting to the announcement, Fonterra’s CEO, Theo Spierings, said “We are disappointed that the arbitration tribunal did not fully recognise the terms of our supply agreement with Danone, including the agreed limitations of liability, which was the basis on which we had agreed to do business.” Fonterra has assessed the potential financial implications of the decision and made a prudent decision to revise its forecast earnings per share range for the 2017/18 financial year to 35 to 45 cents, down from 45 to 55 cents. The decision has no impact on the forecast Farmgate Milk Price. The arbitration followed events in August 2013 when Fonterra issued a precautionary recall advice to some customers who had been supplied with its WPC80 ingredient and products containing WPC80. It was later confirmed that there had been no food safety risk to the public. Both Fonterra and the New Zealand Government conducted extensive reviews into the events. A follow-up review by the Independent Inquiry commissioned by the Fonterra Board of Directors confirmed that the Co-operative’s management acted in the best interests of its consumers and the Co-operative at all times. “The decision to invoke a precautionary recall was based on technical information obtained from a third party, which later turned out to be incorrect. “While there was never any risk to the public, we have learned from this experience and as a result have made improvements to our escalation, product traceability and recall processes, and incident management systems. “We operate in a fast-changing and complex industry, and will always prioritise Food Safety and Quality in our commitment to be the world’s most trusted source of dairy nutrition. “Fonterra is in a strong financial position and is able to meet the recall costs,” said Mr Spierings. The Co-operative was reviewing the tribunal’s findings closely, but recognised that there was likely to be limited options for challenging the decision of an international arbitration.

| A Fonterra Communications release  ||  December 01, 2017   |||

Dec 1, 2017  -  New Zealand's terms of trade rose 0.7 percent in the September 2017 quarter to reach an all-time high, Stats NZ said today. The latest increase was due to import prices falling more than export prices.  Terms of trade is a measure of the purchasing power of New Zealand’s exports abroad and an indicator of the state of the overall economy. The 0.7 percent rise in the September quarter means New Zealand can buy 0.7 percent more imports for the same amount of exports.

"The terms of trade increased over the last year, driven by high meat and dairy prices, especially butter, to reach the highest level since the series began in March 1957," international statistics senior manager Daria Kwon said. "The previous high for the terms of trade was the June 1973 quarter."

The new high in the terms of trade echoes the impact seen in the early 1970s, when prices also rose for dairy and meat, as well as wool. However, the early 1970s’ boom for export prices was short-lived. New Zealand’s terms of trade fell after key export market Great Britain joined the European Economic Community, and the first big oil crisis pushed up fuel prices sharply in late 1973.

| A StatisticsNZ release  ||  December 1, 2017   |||