Founded by Max Farndale 1947 - 2018
16 Nov 2017 - Foreign Minister’s APEC and EAS visit. Deputy Prime Minister and Foreign Minister the Rt Hon Winston Peters returns to New Zealand overnight following a visit to Viet Nam and the Philippines where he attended the APEC Meetings in Da Nang, and the East Asia Summit in Manila. “My first visit to these two major regional summits as Foreign Minister provided a valuable opportunity to be reacquainted with counterparts who I have previously met, and to have introductory meetings with Foreign Ministers from a significant number of countries where New Zealand has strong economic and strategic interests”, Mr Peters said.
Across both summits, Mr Peters had formal meetings with the Foreign Ministers of eleven countries, including Australia, China, Japan, the Republic of Korea, Lao Peoples’ Democratic Republic, Papua New Guinea, Russia, Singapore, Thailand, Viet Nam, and the United States.
Additionally, Mr Peters met informally with Foreign Ministers from a range of other countries, including Brunei Darussalam, Canada, Indonesia and Malaysia. Mr Peters also accompanied the Prime Minister the Rt Hon Jacinda Ardern to meetings with her counterparts.
“The visit allowed me to participate in discussions on the big issues facing the Asia‑Pacific region, including the threat posed by North Korea’s actions, the territorial disputes in the South China Sea, the challenge of countering terrorism in South East Asia, and the conflict and resulting humanitarian crisis in Myanmar’s Rakhine State”, Mr Peters said.
Mr Peters also launched a new phase of New Zealand Official Development Assistance supporting the development of Viet Nam’s dragon fruit industry. In the Philippines, the Minister also announced a new phase of New Zealand assistance to support agriculture‑based livelihoods and agribusiness in Mindanao.
Mr Peters also confirmed the appointment of New Zealand Honorary‑Consuls to Davao and Cebu, further strengthening New Zealand’s relationship with the Philippines.
| A beehive release || November 16, 2017 |||
16 Nov 2017 - The Financial Markets Authority (FMA) has concluded an investigation into certain trading activity by Goldman Sachs New Zealand LTD (GS). The GS investigation was prompted by concerns arising from an investigation into trading by Mark Warminger and Milford Asset Management. The FMA was concerned that GS trading may have been in breach of section 11B of the Securities Market Act 1988 by creating a false or misleading appearance to the price and supply of securities.
The FMA determined that pursuing enforcement action in court would not have been the most appropriate response to this case or the best way to achieve its regulatory objectives. The FMA decided to publish a report based on its concerns about the alleged misconduct in the investigation, and to educate the market about its expectations surrounding trading by brokers.
The FMA decided not to go to court based on a number of factors, each detailed in the report. These include litigation risk and limited regulatory options available in this case and the details of the specific misconduct alleged. The FMA also considered the significant cost, time and resources required in pursuing litigation would outweigh the potential benefits.
GS has explained the alleged misconduct to the FMA as facilitating trades for a client. Since the trading covered in the report, GS has ceased operating as a trading participant in the New Zealand market.
In addition to publishing a report, the FMA will take the following additional actions:
The FMA also considered the most proportionate response to the GS conduct would have been for the NZX to refer GS to the NZ Markets Disciplinary Tribunal (NZMDT). The NZX did not take this action.
Rob Everett, the FMA’s Chief Executive, said “Capital markets growth and integrity is a key FMA strategic priority. Successful markets rely on confident participation and any activity which threatens market integrity reduces confidence from investors and the public.
Mr Everett said, “We had a difficult decision in terms of what the appropriate regulatory response was in this instance. Ultimately, we decided that our regulatory objectives would best be met by issuing the report.”
“Publishing the results of the GS investigation enables us to demonstrate the lessons for industry in our findings. We’ll continue to engage with industry to ensure they are clear about the standards of conduct, governance, systems and controls we expect, and use this report as the basis of discussions with brokers.”
A copy of the report can be found here.
| A FMA release || November 16, 2017 |||
15 Nov 2017 - Tower says it aims to leave its larger rivals with 'clunky legacy systems' in its wake by transforming into a "digital challenger" offering customers more tailored products that draw on deeper pools of information. The Auckland-based insurer is raising $70.8 million to bolster its balance sheet and has adopted an ultra-conservative approach to the most problematic claims lingering from the Canterbury earthquakes seven years ago. Chief executive Richard Harding says that gives it the headroom to overhaul its IT infrastructure and embark a new way of doing business which will deliver better products for customers, tailored to their specific needs and priced accordingly.
Tower has hired EIS Group to scope out and cost the process of integrating four systems into one core infrastructure as part of a wider programme to simplify the business, putting the insurer on the front foot against its rivals which are carrying more cumbersome systems that struggle to keep up with changing consumer demands.
"It's that flexibility to use data from all sources, get that data compiled in a way for you as a customer that we actually have insights about you so we can make a compelling price for you," Harding told BusinessDesk in an interview. "It's really about turning around insurance to be simple and easy for customers.
"We won't get to that in financial year '20 but we've certainly built the foundations that will enable Tower to have the flexibility to deliver that sort of claims outcome or customer experience," he said.
Harding doesn't anticipate the country's larger insurers can match that strategy, because "they're not as nimble and they don't have that ability and flexibility."
Tower's online drive has already started paying dividends, with yesterday's announcement of the capital raise and lingering issues with Canterbury claims clouding a robust underlying business. The firm's online sales generated 30 percent of new business for the insurer in the September quarter coming through digital channels, compared to just 9 percent in the March quarter of 2016.
Still, the insurer booked $19.6 million of impairment charges on software in the 2016 financial year after finding its current systems restricted its ambitions and accelerated the amortisation charge on internally developed software in 2017. The closing book value for Tower's software was $31.3 million as at Sept. 30, after accumulated amortisation of $33 million.
Information is the key benefit for insurers in the digital environment, and Harding said the industry will be able to deliver better pricing for customers with more robust data analysis. He points to the cross-subsidisation in the larger insurers, where about six Auckland policyholders are effectively paying more for their earthquake premiums to cover one Wellington policy, which carries greater risk.
"By having cross-subsidisation you're encouraging development in places where it shouldn't be developed," Harding said. "Should we be building commercial property on reclaimed land in Wellington harbour? Should we be allowing continued construction on 60-degree slopes on the Wellington foreshore?
"At the moment we do because there isn't a risk signal coming from the insurance industry saying that's not a viable thing to do."
Harding expects big data will let insurers move to more accurate pricing for risk, which will "mean unfortunately a higher cost in Wellington, but more affordable insurance for other people." That's a decision which will need wide societal input, "and is a challenge New Zealand will have to face up to in the next five years or so," he said.
That shift to a digital interface will also change the nature of Tower's workforce, something the insurer has been to develop over the past year. Harding said one of the biggest issues service staff have contended with is the duplicated systems and large suite of products, which has meant they spent less time focused on the customer.
Tower has been working on overhauling its culture from an old-school insurance firm to that of a "much more nimble challenger mindset", although Harding says they've "still got some way to go".
He doesn't anticipate a shock to the make-up of the workforce in the way some industries have been scaling back staff numbers to make way for automation, rather he wants to take staff "on a journey through as we change the company" where they can become more valuable to the customer.
"The shift that we want and the opportunity we see is how can we have a better connection with our customers, because our staff aren't being bogged down with our processes and the way the system works and are freed up to do more for the customer," Harding said. "That does require a greater level of capability and a change in people's expectations around work, but I think it gives them greater satisfaction and greater opportunity as well."
| A BusinessDesk release || November 15, 2017 |||
15 Nov 2017 - Paints supplier DuluxGroup is reviewing the future of its underperforming business in China but is set to launch into the Indonesian market. Paint supplier DuluxGroup may consider pulling out of its joint-venture business in China as its paints brand struggles but has flagged higher hopes for Indonesia, with plans to start selling some its Selleys products into the growing market there.
DuluxGroup lifted profit by 9.6 per cent to $142.9 million for the year to September 30, and said on Wednesday it expects to deliver an even better result in the year ahead.
Strong growth in the group's Dulux Australia-New Zealand business contributed the bulk of earnings, driven by positive markets and good margin management, and Selleys Australia and New Zealand also lifted.
But earnings from DuluxGroup's "other businesses" segment, which includes the Yates garden care range, PNG, south-east Asia, and China's DGL Camel paints business fell because of a weaker Camel result.
DuluxGroup managing director Patrick Houlihan says DuluxGroup's China business generates about $50 million in revenue, or about three per cent of group revenue.
The China business comprises Camel paints, which is the largest part, and the Selleys range.
Camel and Selleys are profitable in Hong Kong, and Selley's has prospects for success on mainland China, but the Camel paints business has struggled from lack of scale and lack of brand awareness and delivered a poor result in fiscal 2017.
The Camel paints joint-venture started in 2012.
"We just don't have the competitive ratio (with Camel)," Mr Houlihan told reporters on Wednesday
"We doing a strategic review of that business at the moment, particularly the coatings (Camel) portion of it.
"As to what that concludes, I won't pre-empt."
Mr Houlihan said Indonesia has good prospects.
DuluxGroup is partnering with Avian Paints, one of the largest paint companies in Indonesia, to sell some of the Selleys adhesives and sealants range starting in mid-2018.
Mr Houlihan said the joint-venture with Avian has the potential to ultimately access about 40,000 retail hardware outlets in a large and growing market.
"It's going to take a few years to build - this won't be transformative overnight," Mr Houlihan said.
"Over the short term, it will really be about launching in quite a considered matter, portions of the range, one at a time."
DuluxGroup expects its Australia-New Zealand business to remain resilient in the year ahead with its core markets - home renovation, housing construction and commercial markets - forecast to provide solid growth in 2018.
DuluxGroup also said its new paint factory in Merrifield in Melbourne is schedule to begin commercial production in the first half of the 218 financial year and will support the company for decades to come.
Shares in DuluxGroup were 20 cents, or 2.6 per cent, higher at $7.74 at 1117 AEDT.
DULUX LIFTS ANNUAL PROFIT, DIVIDEND
* Full-year profit up 9.6pct to $142.9m
* Revenue up 4pct to $1.8b
* Fully-franked final dividend of 13.5cps, up from 12.5 cents
| A SBS release || November 15, 2017 |||
15 Nov 2017 - Westpac New Zealand Limited (Westpac) has had its minimum regulatory capital requirements increased after it failed to comply with regulatory obligations relating to its status as an internal models bank. Internal models banks are accredited by the Reserve Bank to use approved risk models to calculate how much regulatory capital they need to hold. Westpac used a number of models that had not been approved by the Reserve Bank, and materially failed to meet requirements around model governance, processes and documentation. “This is very disappointing. Operating as an internal models bank is a privilege that requires high standards and comes with considerable responsibilities. Westpac has not met our expectations in this regard,” Reserve Bank Deputy Governor and Head of Financial Stability Geoff Bascand said. The Reserve Bank required Westpac to commission an independent report into its compliance with internal models regulatory requirements. The report found that Westpac:· currently operates 17 (out of 35) unapproved capital models;
· has used 21 (out of 32) additional unapproved capital models since it was accredited as an internal models bank in 2008; and
· failed to put in place the systems and controls an internal models bank is required to have under its conditions of registration.
The Reserve Bank has decided that Westpac’s conditions of registration should be amended to increase its minimum capital levels until the shortcomings and non-compliance identified in the independent report have been remedied. Westpac’s minimum capital ratio requirements will be 6.5 percent for Common Equity Tier 1 capital, 8 percent for Tier 1 capital and 10 percent for Total capital, with the additional 2.5 percent capital conservation buffer applying. Currently, for all other locally incorporated banks capital ratios are set at, respectively, 4.5 percent, 6 percent and 8 percent, plus the 2.5 percent buffer. In addition, the Reserve Bank has accepted an undertaking by Westpac to maintain its total capital ratio above 15.1 percent until all existing issues have been resolved. The Reserve Bank has given Westpac 18 months to satisfy the Reserve Bank that it has sufficiently addressed those issues or it risks losing accreditation to operate as an internal models bank. “We believe the regulatory action is appropriate given the seriousness of Westpac’s non-compliance and the need to protect the integrity of the capital regime,” Mr Bascand said. The Reserve Bank has taken into account that Westpac has not deliberately sought to reduce its regulatory capital. While there have been serious shortcomings and non-compliance, it appears that Westpac has remained well above its required regulatory capital levels. Westpac has confirmed that it does not dispute the findings of the independent report, that it is committed to remedying all the issues identified, and that it will maintain its total capital ratio above 15.1 percent.
| A RBNZ release || November 15, 2017 |||
15 Nov 2017 - Mobil Oil New Zealand Limited (Mobil) today announced plans to improve fuel supply capacity for the South Island with the construction of two tanks at its fuel terminal in Lyttelton.
The tanks, which will replace those damaged by a 2014 landslide at Mobil’s Naval Point facility, will be located adjacent to Mobil’s existing terminal at George Seymour Quay and will store petrol and diesel. The company expects to complete the work in early 2019.
· Two new tanks will improve fuel supply capacity for the South Island· To be located adjacent to Mobil’s existing terminal at George Seymour Quay· Construction underway, completion expected in early 2019
“Construction of new tanks will restore fuel storage capacity at our Lyttelton operation, which, along with the Lyttelton-Woolston pipeline and Woolston Terminal, is an important part of the fuel supply chain in the South Island,” said Andrew McNaught, country manager for Mobil. “This project represents a significant investment in New Zealand’s fuel supply chain and demonstrates our commitment to the local market.”
Restoring the Lyttelton fuel terminal’s storage capacity is the latest of several recent major investments by Mobil to enhance its fuel product offerings to New Zealand customers. These include the launch of its new Synergy family of fuels and associated service station enhancements, as well as the upgrade of its bulk fuels terminal at Mount Maunganui. Since 2012, Mobil has invested more than NZ$120 million in its New Zealand operations.
Mobil has been a reliable supplier of quality fuels and lubricants to New Zealand for more than 120 years. The company supplies a nationwide network of more than 170 Mobil-branded service stations and more than 50 unbranded sites. For more information, visit www.mobil.co.nz.
| A Mobil New Zealand release || November 15, 2017 |||
15 Nov 2017 - A report produced by the Australian Competition and Consumer Commission (ACCC) on the country’s stevedores has suggested that Port Botany has overtaken the Port of Melbourne for container trade due to constraints at the Victorian port, as first reported by The Age. In 2016/17, Port Botany handled 34 per cent of Australia’s container movements, with 33 per cent going through the Port of Melbourne – down from 36 per cent in 2015/16.
While the report did not directly link the Port of Melbourne’s reduced volume to the increasing size of container ships, it noted that it is the most likely port to put limits on the size of ships visiting the country.
The Age noted that the biggest ship to visit Australia, the 347-metre Susan Maersk that docked at the Port of Brisbane in October, would have been unable to travel up the mouth of the Yarra River to Swanson Dock, and its 10,000 TEU (twenty-foot equivalent unit) load may or may not have managed to fit underneath the West Gate Bridge.
In a recent newsletter, industry body Shipping Australia wrote that with only one terminal able to take the larger ships – Webb Dock, with Swanson Dock out of reach – “Melbourne is already the limiting factor for the size of ships coming to Australia’s east coast ports and is preventing Australians benefiting from the efficiencies of larger ship operations.”
“The risk is that shipping lines may consider by-passing Melbourne for Adelaide or Sydney and use rail, or a smaller ship feeder service (possibly from New Zealand) to make the connection,” it added.
“This would ultimately cost the Victorian consumer, the Port of Melbourne and the state economy.”
| A L&MH release || November 15, 2017 13:15 |||
15 Nov 2017 - Max Frank Pecafil Steel Formwork Is More Efficient Than Traditional Formwork
The rate of construction work being done to modernise New Zealand is increasing. In the year ended September 2017, non-residential building consents across the country totalled $6.4 billion – up 5.9 percent from the September 2016 year. The need for better formwork technologies has risen to make construction work faster, more cost-effective and less labour-intensive.
Pecafil is one form of modernisation in the construction industry answering this need for modernisation. It is a formwork solution especially useful for laying foundations formwork, replacing conventional timber or steel shuttering for in-ground construction of pile caps and ground beams.
Designed by Max Frank in Germany and distributed by Fletcher Reinforcing, Pecafil is a specially manufactured material constructed from a steel mesh encased in an outer layer made of reusable, strong, heat-shrunk polyethylene. It is lightweight and self-supporting, supplied by Fletcher Reinforcing as a full sheet or pre-bent off-site according to design requirements. This significantly reduces construction time on-site, promising a quicker transition from breaking ground to pouring concrete.
Continue here to read the full release || November 15, 2017 - 13:07 |||
15 Nov 2017 - One of the largest, and the longest established New Zealand-owned engineering and design consultancy, Harrison Grierson, has announced its merger with Wellington-based spatial information specialists, e-Spatial.
Harrison Grierson employs over 350 people in eight offices across the country. Its four key market sectors are Land and Buildings, Water and the Environment, Utilities, and Transport.
e-Spatial’s expert services include spatial consulting, solution development, data management and technology.
The new stand-alone business unit will be called ‘e-Spatial, a Harrison Grierson company.’
This is the second merger in Harrison Grierson’s 132-year history and is a significant diversification for both companies, says Managing Director, Glen Cornelius. ‘With this new specialist offering, we can undertake a range of different projects for our clients, adding value and enjoying a competitive advantage in many areas.’
In February this year, Harrison Grierson merged with the traffic and transport engineering specialists, T2, to form a new business unit called HGT2.
| A harrison Grierson release || November 15, 2017 - 12:53
15 Nov 2017 - Mainfreight, the transport and logistics group, posted a 1.1 percent gain in first-half profit as strong trading in Australia and improving results in Europe were offset by weaker results in the Americas and Asia. The company said it had expected a better first-half result. Profit rose to $42.2 million in the six months ended Sept. 30 from $41.8 million a year earlier, the Auckland-based company said in a statement. Sales rose to $1.2 billion from $1.1 billion.
Mainfreight declared an interim dividend of 19 cents a share, up 2 cents from a year earlier, saying even though it was disappointed in the first-half result it had "ongoing confidence for further improvement at the year-end result," with a stand-out full-year result expected from Australia.
"Our Australian businesses have significant momentum, and we expect full-year results for this region to be at record levels," the company said today. "Our European businesses continue to outperform the year prior, and we are seeing incremental improvements in Asia and the Americas as our new leadership teams settle into their roles."
In New Zealand, revenue rose 10 percent to $317 million and earnings before interest, tax, depreciation and amortisation gained 3.5 percent to $38 million. Its domestic operations faced additional costs associated with servicing inter-Island freight movements via road and coastal shipping following the Kaikoura earthquakes last November. Against that, Mainfreight enjoyed "stronger intra-Island volumes, together with an expanded and improving Logistics warehousing operation."
Australian sales rose about 14 percent to A$292.9 million and ebitda jumped 29 percent to A$20.8 million on the back of "strong sales improvement across our domestic and warehousing divisions," it said.
"Both domestic transport volumes and logistics warehousing activity continue to increase as the pre-Christmas season influences October and November trading," it said. "Air & ocean activity remains subdued compared to the prior period."
Mainfreight's Asian operations recorded a 20 percent jump in sales to US$37.6 million but ebitda tumbled 53 percent to US$2 million in the first half, as gross margins "were adversely affected by the decline in inter-company airfreight revenue."
"Senior management changes took effect from early October, with an ongoing focus on branch profitability improvement," it said.
In the Americas, sales fell 10 percent to US$203 million and ebitda fell 14 percent to $8.4 million, partly reflecting the loss of "a significant airfreight import account" from its air & ocean division. Its domestic transport and logistics divisions "did not achieve trading expectations during the period" while at its CaroTrans wholesale business, revenue was "stable compared to the prior period, halting the decline of the previous two years."
Still, it said activity in all its US operations picked up in September and October and it expected to see results for the full year in line with the 2017 result.
In Europe, sales rose 19 percent to 163 million euros and earnings gained 9.8 percent to 8.4 million euros. "Trading through October and November remains ahead of the year prior," it said.
Mainfreight shares last traded at $24.12 and have gained about 16 percent this year.
| A BusinessDesk release || November 15, 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
