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New Zealand: 70% Small Businesses Grew Last Year

New Zealand businesses are showing self-reliance in the face of the economic downturn. This is a key theme emerging from the 2009 Mood of the Boardroom survey, says Business NZ. Mood of the Boardroom, run jointly by Business NZ and the NZ Herald.

New Zealand businesses are showing self-reliance in the face of the economic downturn. This is a key theme emerging from the 2009 Mood of the Boardroom survey, says Business NZ. Mood of the Boardroom, run jointly by Business NZ and the NZ Herald, surveys around 300 company directors and chief executives from a range of New Zealand enterprises on key business issues. Business NZ Chief Executive Phil O'Reilly says this year's survey shows businesses determined to grow productivity and help themselves through the downturn, rather than seeking government help.

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Oceania's Dollar Rose for a Second Day

The Australian and New Zealand currencies were the second- and third-best performers among major currencies against the U.S. dollar over the past three months as interest rates of 3 percent in Australia and 2.5 percent in New Zealand attracted investors to the South Pacific nations' assets. South Africa's rand is the top performer.

The Australian and New Zealand dollars gained for a second day as speculation U.S. interest rates will stay low buoyed demand for higher-yielding assets. The currencies extended yesterday's biggest advance in a week against the U.S. dollar after futures traders added to bets the Federal Reserve will keep the benchmark rate close to zero for the rest of this year. Demand for higher-yielding assets was bolstered after the European Central Bank called for banks to bid in the first auction of 12-month loans, prompting speculation that the funds being made available will be invested in countries with higher benchmark interest rates. "People are afraid of strong comments from Fed officials that will reduce tightening expectations," said Masafumi Yamamoto, head of foreign-exchange strategy for Japan at Royal Bank of Scotland Group Plc in Tokyo and a former Bank of Japan currency trader. "Further ebbing of tightening expectations is weighing on the U.S. dollar, so it's weakening against currencies like the Aussie and kiwi," he said. Australia's currency rose to 79.85 U.S. cents as of 5:02 p.m. in Sydney, from 79.39 cents yesterday in New York. It bought 76.11 yen from 75.60 yen. New Zealand's dollar strengthened to 64.41 U.S. cents from 63.97 cents. It traded at 61.37 yen from 60.92 yen.

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New Zeland Increases Business Confidence

New Zealand is expecting to get out from the recession in the quarter this year, growing the economy confidence.

"This recovery supports our view that gross domestic product will return to growth later in 2009". And, "more confidence readings are needed to confirm this turnaround", the Wellington-based Treasury said.

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Kiwi Dollar Continues to Slide

The New Zealand dollar continued to drift lower today, ending up just above the US56 cent mark at the local close.

The New Zealand dollar continued to drift lower today, ending up just above the US56 cent mark at the local close. At 8am today the NZD was buying US56.49c and lost nearly half a cent to be worth US56.12c at 5pm. The only local data today was the Westpac McDermott Miller Consumer Confidence index, which slipped back into pessimistic territory (96.0 in March from 101.3 in December) but confidence is still seen as resilient. That caused only a "small dip" in the dollar , Mr Hindley said.

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NZ Gas Field May be a Goldmine

Todd Energy is planning to drill three wells in the next 18 months to check whether a little-known onshore Taranaki gas field could become a major producer.

Todd Energy is planning to drill three wells in the next 18 months to check whether a little-known onshore Taranaki gas field could become a major producer. In the past, gas in the Mangahewa field, 18km southeast of New Plymouth, was considered to be held tight and difficult to extract. But the Mangahewa-3 well, which was drilled in 2007 and brought into production last year using modern techniques, led to a reappraisal of the field's potential. If the three planned wells produced similar results to Mangahewa-3 "then we're on to something pretty significant and we're looking at something that is potentially a Pohokura size".

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New Zealand: Low Interest Rates Spark Resurrection

The dramatic fall in interest rates over the past few months has helped to kick life back into the commercial and industrial property agency business, says Chris Bayley, general manager commercial and industrial for Bayleys Real Estate.

The dramatic fall in interest rates over the past few months has helped to kick life back into the commercial and industrial property agency business, says Chris Bayley, general manager commercial and industrial for Bayleys Real Estate. "It remains to be seen whether this continues, given the challenges the New Zealand economy will face from the global downturn this year, but it's been an encouraging start to 2009." Bayley says a lot of the renewed inquiry is coming from investors who have had substantial funds parked in the bank and have witnessed their income returns almost halved in a matter of a few months.

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New Zealand Considers Cutting Fuel Tax

Auckland's planned regional fuel tax could be cut as the Government worries about levies pushing fuel prices up 14c a liter within three years.

Auckland's planned regional fuel tax could be cut as the Government worries about levies pushing fuel prices up 14c a liter within three years. But any reduction could jeopardize funding for several public transport projects, in particular the electrification of the rail network. The Government is expected to announce changes to the regional fuel tax, with other transport and infrastructure plans, early next week.

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New Zealand's Largest Port Operation Could Be Going Private

The prospect of New Zealand's largest port operation being sold to private owners has been raised as a result of the global economic situation.

The prospect of New Zealand's largest port operation being sold to private owners has been raised as a result of the global economic situation. Owned by Auckland Regional Council (ARC), the firm has had a 26 percent drop in profit from the same period last year to NZ$9.3 million. Managing director Jens Madsen said executive salaries had been frozen, and he hinted at possible job losses among the company's 600 staff. Dividends from the port company are one of the ARC's main sources of revenue, helping to pay for public transport and other civic developments worth more than $1 billion. They include rail electrification, an integrated ticketing service and the Tank Farm development on the western edge of central Auckland. Mr Judd yesterday said a capital structure review could recommend selling the ports into private ownership through a public share listing.

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New Zealand Company Failure Rates Soar by 40%

Failures of New Zealand companies are up over 40 percent on the same time last year.

Failures of New Zealand companies are up over 40 percent on the same time last year. The Ministry of Economic Development figures show that in the seven months since July 2008 a total of 3487 companies have run aground, 3270 have gone into liquidation, a further 217 into receivership. In the same period the previous year, 2424 companies hit the wall, made up of 2344 liquidations and 80 receiverships. The worst month was December, when 594 companies failed, 560 liquidations and 34 receiverships.

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Risk Averse Kiwis Flock to Debit Cards

Banks are tapping into a credit-shy mood among consumers which is seeing them flock towards a new breed of debit cards.

Banks are tapping into a credit-shy mood among consumers which is seeing them flock towards a new breed of debit cards. Kiwibank is about to become the second New Zealand bank to offer the Visa Debit Card, a piece of plastic that operates in every way like a credit card but for the bill at the end of the month. Westpac has been offering the Visa Debit Card for the past three years and has seen an explosion in demand. The bank says while numbers of new credit cards issued is static debit cards are growing by 50 per cent a year. It now issues three debit cards to every one credit card. Debit cards take funds straight out of the user's bank account just as an Eftpos card does, but where they differ is they can also be used for shopping online and overseas just like a credit card.

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New Zealand to Unleash $3 Billion in Projects

The Government hopes to unleash $3 billion to $4 billion in "ready-to-go" private investment through proposed task forces to help investors through regulatory hoops.

The Government hopes to unleash $3 billion to $4 billion in "ready-to-go" private investment through proposed task forces to help investors through regulatory hoops. The figure is likely to include major energy projects such as Transpower's upgrading of the national electricity grid, estimated at $3.8 billion over five years, and Genesis's proposed $500 million gas-fired Kaipara power station, which is waiting for a decision by planning commissioners. Other big projects would need consents from "housing" authorities, pointing to possible property developments.

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New Zealand Government Considers Company Bailouts

Prime Minister John Key has hinted to bail out ailing companies on a case-by-case basis if the worldwide recession continues to deepen.

Prime Minister John Key has hinted to bail out ailing companies on a case-by-case basis if the worldwide recession continues to deepen. His remarks come in addition to stating that it would be "unacceptable" for an important company such as Fisher and Paykel (F&P;) to fail because of a temporary. Key also said the government may step in to help companies if their failure presents a systemic risk to the economy or if their survival is in the country's long-term interests.

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New Zealand: Number Of House Sales Hit 17-Year Low

The Real Estate Institute reported that the national median of residential property sales went down an annual rate of 4.4 percent in January.

The Real Estate Institute reported that the national median of residential property sales went down an annual rate of 4.4 percent in January. It went from $340,000 in January 2008 to $325,000 last month, which is the lowest monthly level since 1992. Other worrying trends in New Zealand's housing market include a limited turnover of houses and the long length of time being taken to sell a house, which reached a national media of 59 days last month compared to 49 days in January 2008. It is expected that house prices will continue to fall during much of 2009.

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New Zealand: Projects On Fast-Track To Spread Jobs Relief

$500 million worth of infrastructure projects were fast-tracked to help save 2000 jobs.

$500 million worth of infrastructure projects were fast-tracked to help save 2000 jobs. Prime Minister John Key said these projects were chosen to give a geographical spread throughout the country and to target the building and construction sector. The $500 million is part of the total of about $5 billion of new capital spending to 2013. This comes in addition to other economic stimuli, including tax cuts, easing rules for payment of provisional tax by small businesses, and the Resource Management Act reform to speed up development consents.

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New Zealand MP Proposes Parallel Tax Plan

Act MP Sir Roger Douglas, a reforming finance minister in the fourth Labour Government, is proposing a new low-tax option for taxpayers

Act MP Sir Roger Douglas, a reforming finance minister in the fourth Labour Government, is proposing a new low-tax option for taxpayers. If taxpayers pay for their own retirement, health care and welfare insurance or costs, the first $30,000 of their income would be tax-free. Income over $30,000 would be taxed at a flat rate of 15 percent, to be phased in over 15 years. The plan also proposes to cut corporate tax rates to 15 percent. The proposed tax system aims to help the poor more than the wealthy and hopes to restore responsibility to individuals to help mitigate the increasing cost of government services.

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New Zealand: Outlook Dim For Power, Says Fitch

Fitch Ratings has given a broadly negative outlook for New Zealand's power and utilities sector this year.

Fitch Ratings has given a broadly negative outlook for New Zealand's power and utilities sector this year. The ratings agency identified several factors that contribute to the negative outlook, including historic underinvestment in the electricity transmission system, credit risk factors, regulatory risks and declining gas reserves. Despite of the negative outlook, it is still expected that New Zealand power and utility companies will be well-placed to manage their refinance risk and liquidity in 2009, although at a higher cost.

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New Zealand Economists Dismiss Unexpected Increase In Employment Figures

Economists are disregarding an unexpected rise in employment in the December quarter and are still forecasting a significant rise in unemployment in 2009.

Economists are disregarding an unexpected rise in employment in the December quarter and are still forecasting a significant rise in unemployment in 2009. According to the quarterly household labour force survey, 21,000 jobs were added in the last quarter of 2008. However, 17,000 of those jobs were part-time. Hours worked decreased by 1.9 percent and paid hours fell by 1.4 percent. The labour force participation rate increased from 68.7 percent in September to a record 69.3 percent in December. Economists believe the labour market has not seen the full impact of the recession yet. This is particularly because much of the increase in employment last year came from the over 60 age group, raising the question of whether older people are being forced back to work because of the recession.

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New Zealand Tax Package A Good Start – Business Community

The business community, and particularly the small business sector has welcomed the government's tax package worth over $480 million over four years.

The business community, and particularly the small business sector has welcomed the government's tax package worth over $480 million over four years. The package aims to promote growth and create jobs by reducing the size of provisional tax payments, lowering the interest charged when businesses underpay their tax, and simplifying the Pay As You Earn (PAYE) system. The Employers and Manufacturers (Northern) Association said that the tax package will help shore up business confidence and increase cash liquidity, but also called for the government to cut company tax rates from 30 percent to 25 percent, at least for the duration of the recession.

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Foreign Investment In New Zealand Nearly Halved In A Year

The value of the approved investments involving overseas parties and assets in 2007 was $19.1 billion.

The value of the approved investments involving overseas parties and assets in 2007 was $19.1 billion. This figure fell 47 percent to $10.2 billion in 2008. The Overseas Investment Office said that the different between 2008 and 2007 can be attributed to three unusually big deals in 2007: YPG Finance buying Yellow Pages Group for $2.2 billion, a confidential consent on a $1.2 billion deal, and VA Australia Finance buying Veda Advantage for $1 billion. Even though gross value of consideration was down, the net investment dollars, defined as the total dollar value invested in New Zealand, was less affected.

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New Zealand Jobless Rate Hits 5-year High

New Zealand's unemployed rate increased to 4.2% from 3.9% in the last three months.

New Zealand's unemployed rate increased to 4.2% from 3.9% in the last three months. This is the highest unemployed rate the country has seen in five years. Unemployment will lower consumer spending and worsen the country's GDP. New Zealand's economy has considerably contracted during the last few months and Treasury forecasts that full-year growth will be slower than 0.6%.

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Windflow Raises More Than $8 Million

Wind Turbine maker Windflow has reported that it has raised $8.22 million from New Zealand investors.

Wind Turbine maker Windflow has reported that it has raised $8.22 million from New Zealand investors. The company raised about $2 million less than projected initially. However, the company has done considerably well in the midst of global economic instability.

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New Zealand Lows Hurt Super Fund

The New Zealand Superannuation Fund posted a -4.92% return on investment for the first half of 2008.

The New Zealand Superannuation Fund posted a -4.92% return on investment for the first half of 2008. The fund lost $880 million after tax and may drop the level of investment it makes in New Zealand shares.

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New Zealand's Central Bank Moves to Ease Liquidity in System

To add stability during a continuing global credit crisis, the Reserve Bank has taken measures to ensure a sufficient supply of ready cash in New Zealand's financial system.

To add stability during a continuing global credit crisis, the Reserve Bank has taken measures to ensure a sufficient supply of ready cash in New Zealand's financial system.

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ANZ National Bank Joins Rivals and Cuts Mortgage Rates

ANZ National Bank has cut its mortgage rates, one day later than all the other big retail banks.

ANZ National Bank has cut its mortgage rates, one day later than all the other big retail banks. ANZ National's floating rate will decrease from 10.95% to 10.45% starting September 15 for new customers and October 10 for existing customers.

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newzealand

NZ Emissions Plan Upsets Farmers

Plans by the New Zealand government to greatly reduce emissions upsets farmers and other industries as well.

The government plans to make the country carbon neutral by 2040, but farmers in New Zealand are critical of their plans. The agricultural sector finds the plan to reduce net emissions of greenhouse gases to zero as unsustainable. Also, steel companies have voiced concerns that a proposed emissions trading scheme would render them uncompetitive. Beef and sheep farmers believe their business will be harmed by the trading system as well. Despite these concerns, the government still hopes to have 90% of electricity generated by renewable resources by 2025 and hopes to convince large numbers of drivers to switch to electric and hybrid cars.

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New Zealand Tourism Hit by Fuel Costs, Economic Downturn

The last time tourism in New Zealand was hit so hard was during the 1987 sharemarket crash.

The last time tourism in New Zealand was hit so hard was during the 1987 sharemarket crash. But that setback was nowhere near the breadth of the current crisis faced by the industry as a result of higher gas prices, rising inflation, and economic downturn. The growth in the number of visitors to New Zealand fell from an average of 4 or 5 percent to just 1 percent last year. The strength of New Zealand's dollar has also made it more expensive for visitors.

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Air NZ Forges ahead with Biofuel Trial as Oil Costs Hit Profits

Air New Zealand is suffering lower profits due to soaring fuel prices.

Air New Zealand is suffering lower profits due to soaring fuel prices. In response, the airline has hastened efforts to develop biofuels, based on Indian feedstock, for its planes. The airline hopes to fly using biofuels by the end of the year. Virgin Atlantic became the first airline to fly a plane with biofuels in February this year.

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Mortgage Rates Start Rising in Wake of Budget

New Zealand banks have increased some of their fixed mortgage and term deposit interest rates in response to the widespread belief that last week's budget is too inflationary. The ANZ and National banks raised their 6-month fixed mortgage rates to 9.95 per cent from 9.75 per cent and their 12-month fixed mortgage rates to 9.8 per cent from 9.4 per cent.

New Zealand banks have increased some of their fixed mortgage and term deposit interest rates in response to the widespread belief that last week's budget is too inflationary. The ANZ and National banks raised their 6-month fixed mortgage rates to 9.95 per cent from 9.75 per cent and their 12-month fixed mortgage rates to 9.8 per cent from 9.4 per cent.

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New Zealand Economic Activity Slips in Q1 – Survey

New Zealand's economy slipped in the first quarter because of high interest rates and rising food and oil prices.

New Zealand's economy slipped in the first quarter because of high interest rates and rising food and oil prices. These greatly affected domestic demand. The economy slowed by 0.6 percent in the first three months of 2008. This is not good when compared to a 0.7 percent increase in the last quarter of 2007. Factors causing this include a decrease in business and consumer confidence in employment and the housing market.

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Job Fall Could Trigger Rates Cut – Economists

Because of 29,000 jobs lost in the first quarter of 2008, New Zealand Reserve Bank Governor Alan Bollard could potentially start cutting interest rates.

Because of 29,000 jobs lost in the first quarter of 2008, New Zealand Reserve Bank Governor Alan Bollard could potentially start cutting interest rates. This would start in September; he originally wasn't expected to do this until December. His biggest worry is a fall in wages and prices due to pay increases showing a high cost of living rather than a slowing economy.

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No Break for Borrowers as Rising Prices Push Annual Rate to 3.4 Percent

New Zealand is facing inflation in food, a rise in prices led to a rise of 0.7 percent in consumer price index (CPI).

New Zealand is facing inflation in food, a rise in prices led to a rise of 0.7 percent in consumer price index (CPI). Annual rate has increased from 3.2 to 3.4 percent. Inflation pressure is coming mainly from food, energy and petroleum, goods in which the Reserve Bank has no control.

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China Free Trade Deal 'Not Worth the Risk'

The leader of New Zealand First political party and Minister of Foreign Affairs, Winston Peters, will talk overseas against the FTA between China and New Zealand.

The leader of New Zealand First political party and Minister of Foreign Affairs, Winston Peters, will talk overseas against the FTA between China and New Zealand. He says that contrary of what Prime Minister Helen Clark believes, the treaty is not a foreign policy it is a trade policy and that the deal doesn't contain enough concessions on the Chinese side to be valuable.

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China, New Zealand Sign Free Trade Deal

The premier of China, Wen Jiabao, and the Prime Minister of New Zealand, Helen Clark, attended a welcome ceremony in Beijing where a free-trade agreement between both countries was signed.

The premier of China, Wen Jiabao, and the Prime Minister of New Zealand, Helen Clark, attended a welcome ceremony in Beijing where a free-trade agreement between both countries was signed. This is the first FTA of China with a developed country; China is New Zealand's third largest trading partner and fifth most valuable export market

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Shake-up for AUD 30 Billion in State Grants

Australian's treasurers agreed on a federal fund of AUD 30 billion to boost up schools, health, vocational education, disabilities and housing.

Australian's treasurers agreed on a federal fund of AUD 30 billion to boost up schools, health, vocational education, disabilities and housing. This fund will be used as a commonwealth funding of the sates and it will compromise 89 separate specific-purpose payments.

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Worse to come when drought year ends, says farm leader

The cost of this year drought for New Zealand's farmers is estimated to be more than $1 billion.

The cost of this year drought for New Zealand's farmers is estimated to be more than $1 billion. Farmers are concerned with the additional costs that will come for the year to date. A spokesman of Fonterra, New Zealand's multinational dairy company estimated a rough cost of $500 million. In addition, the income of sheep and beef farmers is presumed to be reduced by $100, 000.

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Tax officials admit $600m blunder

New Zealand's Inland Revenue officials recognized a $600 million inaccuracy in January accounts' figures.

New Zealand's Inland Revenue officials recognized a $600 million inaccuracy in January accounts' figures. What appeared to be a deficit on the Government's accounts operating balance of $394 million, is now restored with a $200 million figure. The commissioner of Inland Revenue and the head of Treasury, presented an apology to the Finance Minister, Michael Cullen, claiming that they did a "simple mistake".

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New Zealand to Build USD 2.3 Billion Toll Tunnel

New Zealand is set to build the country's most expensive transport project with an expected price of USD 2.3 billion.

New Zealand is set to build the country's most expensive transport project with an expected price of USD 2.3 billion. The tunnel will bore 5km beneath Mt. Albert in Auckland. The project is expected to be completed by 2015, but the deadline might be missed if the government re-examines its alternatives. The alternatives range from a USD 2.5 billion extended route to a USD 1.1 billion trench. The project has already seen soaring design costs from USD 50 million to USD 79.4 million.

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New Zealand Dairy sees Increase

New Zealand dairy farmers are enjoying yet another increase, making their final payout more than NZD 3 billion.

New Zealand dairy farmers are enjoying yet another increase, making their final payout more than NZD 3 billion. It is possible for the 2008/2009 season to see a NZD 8 a kg of milk solids as the payout. The average dairy farm, in Canterbury, will bring in NZD 536,800 more than last year, making an earning of NZD 1.5 million. The forecast for the upcoming seasons is a large boost for the New Zealand economy.

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Dairy Farmers May Face a Bill

Carbon charges may be assessed to dairy farmers, putting them in deeper debt.

Farmers in the dairy market or for those that have converted to dairy dating back to 2005, will receive carbon charges in 2013. Government officials are still deciding whether to put the financial debt strictly on individual farmers or have it fall to the processing level. The carbon charges will propose a significant barrier for market entry to farmers seeking to convert to dairy.

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New Zealand Farmers Concerned Over Fonterra Split

Farmers in New Zealand are concerned over their potential loss of control over the company Fonterra Co-operative Group Ltd.

Farmers in New Zealand are concerned over their potential loss of control over the company Fonterra Co-operative Group Ltd. The company, which will hold more than 100 meeting in attempt to alleviate those fears, wishes to split into a milk-supply-co-operative and list shares on the NZX. The farmer's main concern is that their majority shareholdings would be diluted and the company has said the farmers will remain in control as long as other shareholder's stakes are capped at 10 percent. A vote will take place in May by Fonterra's farmer shareholders on whether or not the company should be split.

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13th New Zealand Finance Company Collapses

13 New Zealand non-bank finance companies have collapsed within the past 2 years.

As a result of the global credit crunch, 13 New Zealand non-bank finance companies have collapsed within the past 2 years. The most recent of the fallen is Capital + Merchant Finance. After Capital + Merchant Finance breached security agreements with Fortress Credit Corporation, receivers were called. The company owes an estimated NDZ 165 million to 7000 investors. It is thought that in total, other financial firms that recently have collapsed owe NZD 1.3 billion to thousands of investors.

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New Zealand Food Prices Soar

Food prices in New Zealand rose 6 percent due to an increase in the price of butter.

Food prices in New Zealand rose 6 percent due to an increase in the price of butter. The price of better rose 23 percent in the past month. While both broccoli and frozen vegetables enjoyed a rise in price, prices fell for almost all other vegetables, leading the way was lettuce which suffered a 31 percent decrease.

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New Zealand Diary Gers Boost from Talks with Uruguay

Uruguay and New Zealand have agreed to hold bilateral talks.

Uruguay and New Zealand have agreed to hold bilateral talks. The talks will consist of encouraging both economies by means of double taxation. Dairy products, which bring in NZD8 billion to the New Zealand economy, will enjoy most of the investment expansion. While it currently owns 31,00 hectares of farmland in Uruguay, New Zealand Farming Systems Uruguay, has raised NZD50 million to expand dairy operations in its farms in Uruguay. By doing so, it is thought that in five years, Uruguayan diary production could increase by 10 percent.

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New Zealand Home Sales Fall

Within the past year, home sales in New Zealand have fallen 23 percent.

Within the past year, home sales in New Zealand have fallen 23 percent. In September, sales dropped to 5,894 homes, the lowest in six years. Interest rates, on the other hand have risen to a record high after four increases between March and July. Also in September, the median house price fell and the median time the house was on the market rose.

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New Zealand Remains Sound

New Zealand financial system remains sound and proved to have remained resilient during the global credit crunch.

According to the Financial Stability Report, done two times a year by the central bank, the New Zealand financial system remains sound and proved to have remained resilient during the global credit crunch. Governor Alan Bollard has said that upon the uncertainty the US sub prime mortgage crisis caused, action was taken, ""Like a number of other central banks, we stepped in pretty promptly to take some steps to help re-normalise trading, and those have been broadly effective."

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New Zealand Government Decides to Regulate Real Estate Industry

The New Zealand government has made plans to reform the previously self-regulated real estate industry.

The New Zealand government has made plans to reform the previously self-regulated real estate industry. The new real estate law will include compensation for those who have been taken advantage of by agents as well as an independent complaint sector, Real Estate Agents Authority, consisting of government appointed individuals. The Real Estate Institute of New Zealand (REINZ) will no longer be allowed to self-regulate and agents are not required to be members under the new law. The Real Estate Agents Authority will have the ability to fine agents up to NZ15,000 for breaches. While most New Zealand real estate agents generally do an honest and good job, several, "haven't and there's the carnage of that littered around the country with people being ripped off buying or selling houses." Associate Justice Minister Clayton Cosgrove has said.

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Carbon Plan Might be Bad for New Zealand

The new carbon plan, which limits company's greenhouse gas emissions, might be forcing companies to move their production outside of New Zealand.

The new carbon plan, which limits company's greenhouse gas emissions, might be forcing companies to move their production outside of New Zealand. A report, commissioned by the Greenhouse Policy Commission, shows that the transition costs will be high and New Zealand businesses will lose their competitiveness. The study, done by Castalia, also shows that the production taken up out side of New Zealand in places with no carbon price would actually increase global carbon emissions.

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New Zealand, US Dicuss Bilateral Agreement and Biofuels

Officials from New Zealand and the United States have agreed to review the NZ-US Science and Technology Cooperation Agreement.

Officials from New Zealand and the United States have agreed to review the NZ-US Science and Technology Cooperation Agreement. A group of nine New Zealand officials, including the Minister of Research, Science and Technology Steve Maharey, will go to Washington DC to meet with US officials to discuss biofuels. US Under Secretary of State for Democracy and Global Affairs, Paula Dobriansky, said, "By bringing together the best minds from New Zealand, the United States, and the broader international community, we can innovate and create new solutions to 21st century challenges."

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New Zealand Airport Ends Talks with CPPIB

Auckland International Airport has ended discussions with the Canada Pension Plan Investment Board.

Auckland International Airport has ended discussions with the Canada Pension Plan Investment Board. The board has wanted to buy a large minority stake; however, the Airport determined the deal would not be the best for its shareholders and chose not to recommend the CPPIB buy a percent. Auckland International Airport Ltd.Chairman John Maasland said, "After serious consideration of all of these matters the majority of directors have formed the view that the proposal would introduce an unacceptable increase in risk, which would most likely impact the long-term value and prospects of the company in the future."

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New Zealand Joins International Carbon Action Plan

New Zealand, along with Canada, Norway, the European Union and three US States, launched the International Carbon Action Plan.

New Zealand, along with Canada, Norway, the European Union and three US States, launched the International Carbon Action Plan. The ICAP aims to reduce climate change by introducing an international carbon trading market. Governments plan to set a cap on emissions by issuing permits that companies can then buy and sell. Eventually, ICAP hopes to create a market with cross-border trading for carbon permits. All involved members remain optimistic about the potential financial gains as well as environmental gains. Jose Manuel Barroso, European Commission President has said, "Putting a price on carbon is the vital 'pull factor' needed to ensure a healthy market for clean technologies. It's a major driver for innovation, for the creation of markets, and for future activity."

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New Zealand Gas Prices Soar

Although oil prices are drastically high, New Zealand energy consultant Richard Hale does not predict that the price will surpass NZD2 a litre.

Although oil prices are drastically high, New Zealand energy consultant Richard Hale does not predict that the price will surpass NZD2 a litre. Barrel price is now at USD94 a barrel and in order to reach the NZD2 a litre mark barrel price would have to increase by USD30. The growth in cost strikes an eerie similarity with the oil crisis of the 1970s, where, according to inflation, gas, which was USD38 a barrel, would now worth USD96-101 a barrel. There are distinct differences between now and then, as the increase now is simple supply and demand and the increase in the 1970s was a result of supply shock. Alan Greenspan, former Federal Reserve Board Chairman, remains optimistic about the increase by stating the high costs are, "forcing us to break our addiction to oil" and the high prices are possibly keeping inflation in check.

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New Zealand Trade Deficit Better Than Predicted NZD800 Million

The New Zealand September trade deficit was better than the predicted NZD800 million.

The New Zealand September trade deficit was better than the predicted NZD800 million. While dairy product exports are down, a main reason why the deficit was better was due to the oil exports. Butter, cheese and milk powder exports fell bout 2 percent, NZD33 million, and meat and offal exports dropped dramatically as well. The trade deficit of NZD544 million, was saved by the NZD300 million of oil exports and NZD120 million of airliner exports. New Zealand's dollar is rising as it is trading just above US77c.

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Telecom New Zealand Improves Network

In order to build a faster and better broadband and network, Telecom New Zealand will spend NZD1.4 billion.

In order to build a faster and better broadband and network, Telecom New Zealand will spend NZD1.4 billion. Early this year, the New Zealand government asked Telecom New Zealand to split its business into three sections, wholesale, retail and network. As part of the re-organization process, Telecom New Zealand has said they will have fast broadband available to every city in New Zealand.

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newzealand

New Zealand to Limit Livestock Exports

New Zealand government will review its policy of exporting livestock for slaughter.

New Zealand government will review its policy of exporting livestock for slaughter. Jim Anderton said, "The review addressed concerns about the treatment and handling of livestock, and slaughter practices in importing countries. It also looked at the potential impact on New Zealand's reputation as a responsible exporter of agricultural products." Livestock exports, which account for NZD171 million, have faced opposition due to animal deaths during shipment and the slaughter practices of receiving countries. An interim measure will allow the Director General of MAF to determine on a case-by-case basis what to approve. Exports for breeding purposes will not be affected.

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newzealand

New Zealand Hoping to Bank on Rugby World Cup

New Zealanders are already making preparations to host the next Rugby World Cup in 2011.

New Zealanders are already making preparations to host the next Rugby World Cup in 2011. The government created the Rugby World Cup liaison office in order to discover ways to optimize the benefits both economically and socially the World Cup will bring. The World Cup, which will bring in 2500 Media representatives, 66,000 visitors, and 2500 corporate guests, will bring in approximately NZD500 million into New Zealand's economy. Rugby World Cup Minister Trevor Mallard has said, "... I am pleased to announce that we will be launching a Rugby World Cup 2011 leveraging and legacy project in the next couple of months - aimed at ensuring that this tournament delivers lasting and tangible economic, environmental and social benefits to New Zealand."

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newzealand

Expedia Expands to New Zealand

Expedia is launching www.expedia.co.nz, the New Zealand version of its full service booking site for travel.

Expedia is launching www.expedia.co.nz, the New Zealand version of its full service booking site for travel. According to Arthur Hoffman, the New Zealand travel industry is worth USD17 billion. Expedia operated in 15 different countries and is currently the leader in online travel. The New Zealand website will be the third Expedia website in the Asia Pacific region. Expedia.co.nz will feature prices in the New Zealand dollar, 360-degree virtual tours and an enormous product range. Arthur Hoffman said, "We are very excited to help New Zealanders research, plan and book their perfect holiday with all the benefits of Expedia's global product range, competitive prices, and in-depth travel and destination information."

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newzealand

New Zealand's ANZ Bank Looks to Invest in Chinese Banks

ANZ Banking Group' s chief executive, Michael Smith, plans to protect ANZ group by buying a Chinese bank before they can buy ANZ.

After his prediction that within five years at least one big New Zealand bank would be taken over by a Chinese investor, ANZ Banking Group' s chief executive, Michael Smith, plans to protect ANZ group by buying a Chinese bank before they can buy ANZ. According to Smith, who previously headed HCSB's Asian Operations, resources from New Zealand and Australia are critical for China to continue its growth. Smith predicts that once Chinese banks focus on international growth, they will turn first to New Zealand and Australia due to their location. New Zealand and Australia are also benefiting from neighboring with such a strong, expanding economy as 70 percent of small businesses in Australia trade with Asia.

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New Zealand's Geneva Finance Freezes Payments

As International credit rating agency Standard and Poor dropped it from a B- to a D, Geneva Finance as put a hold on repayment.

As International credit rating agency Standard and Poor dropped it from a B- to a D, Geneva Finance as put a hold on repayment. Geneva is requesting a moratorium as the board has decided to act prudently and quickly. More problems arose for Geneva when investments matured on Monday and they were unable to pay investors. The moratorium, that will be voted on November 5, will asked to push back the maturity dates about 6 months. The deal is supported by the Bank of Scotland, whom Geneva has NZD50 million credit with, and is expected to be supported by investors.

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newzealand

New Zealand's Contact Energy to Build Wind Farms

Contact Energy is planning to build one of the worlds largest wind farms near Port Waikato.

The New Zealand government announced their Energy Strategy which stated that by 2025, they would like 90 percent of the country's power to come from renewable sources. To support this plan, Contact Energy is planning to build one of the worlds largest wind farms near Port Waikato. Contact is expecting to spend NZD1.5-2 billion on the farm that will produce 650 megawatts. Contact Energy has been working with Wind Farm Group, who has been exploring the site for four years. David Baldwin, chief executive of Contact, is expecting the government to help speed up the process involving resource content in order to allow Contact to begin building and allow the government to reach its energy goal. Many New Zealanders are in support of the farm as Peter Neilson, of the Business Council for Sustainable Development, has said, "More than six out of 10 of us worry we do not have long term energy security."

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newzealand

Auckland Mayor to Invest NZD50 Million

John Banks, a former lawmaker in the National Party, was elected Mayor of Auckland, the commercial center of New Zealand.

John Banks, a former lawmaker in the National Party, was elected Mayor of Auckland, the commercial center of New Zealand. Banks, who lost the post three years ago, had won the mayoralty in 2001 and sold the cities stake in the Auckland Airport in order to reduce debt and allow for more construction projects. His slogan was "affordable progress" and he plans to receive, in city funding, NZD50 million to update the cities Eden Park, home of the 2011 Rugby World Cup. Although Canada Pension Plan has inquired into gaining a small minority share in the Auckland Airport, the City Council, the largest shareholder, has decided, with the support of Banks, to not reduce its stake in the airport.

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newzealand

New Zealand's Diners Club Pleads Guilty

By failing to disclose its currency conversion fees, Diners Club has plead guilty to breaching the Fair Trading Act.

By failing to disclose its currency conversion fees, Diners Club has plead guilty to breaching the Fair Trading Act. It is the eighth financial institution to do so. Each currency conversion customers used overseas charged one percent, a fee that was not mentioned on application forms or fee transaction schedules. The Auckland District Court has said the company was fined NZD67,000 and will pay NZD140,000 to compensate customers. Commerce Commission chairwoman Paula Rebstock as said, "Customers want to be able to shop around for the best deal, but when the fees they are being charged aren't adequately disclosed it deprives them of the opportunity to make a fair comparison."

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newzealand

Qantas Airline Becomes a Competitor in New Zealand

Qantas Airline is hoping to increase services to customers to once again be part of the domestic airline market.

Qantas Airline is hoping to increase services to customers to once again be part of the domestic airline market. They will start a twice daily service from Wellington-to-Christchurch upon acquiring a fifth 737, in order to attract business travelers and encourage competition. Qantas is looking to improve not only its fleet and transportation; they are improving their in-flight service including better meal, free newspaper and a free bar after 4 p.m. Air New Zealand, a competitor of Qantas, has said they will increase leg room in the front half of their 737's. Qantas General Manager Grant Lily has said, "We are here for the long term. We are absolutely committed to Qantas being part of the domestic market."

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newzealand

"Roaring 40's" Makes New Zealand's Future Bright

It is estimated that there are almost 10 billion barrels of oil equivalent in the Great South Basin.

While Mariners fear New Zealand's "roaring 40's", oil giants Exxon Mobil Corp., and OMV AG are anxious to begin working there. The "roaring 40's" is a group of mountainous seas and rushing winds in the sub-Antarctic waters around New Zealand. It is estimated that there are almost 10 billion barrels of oil equivalent in the Great South Basin. If the estimate is even close to true, the New Zealand economy would benefit enormously in investments and royalties. The discovery is coming at a good time for New Zealand, which is currently exhausting its natural gas supply. At the rate New Zealand is using its natural reserves; they are expected to run out in 20 years. If drilling does occur, it will not start until at the earliest 2010, after the 27 month test program to determine the potential for oil and gas. Yet if the tests reveal potential, the opportunities for New Zealand would be massive.

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New Zealand's Geneva Lending puts a Hold on Loans

Geneva Lending may begin to halt lending.

After receiving a B+ rating from Standard and Poor, Geneva Lending may begin to halt lending. Shaun Riley, chief executive, has not confirmed or denied the freeze but has stated, " We will continue to prudently manage our lending and business activities in line with current market conditions and continue to adapt and shape our business in line with this changing market." As a result of Bridgecorp falling, many companies are at risk because as debentures mature, they do not have the liquidity to cover their commitments. Many assume that Geneva is attempting to secure its liquidity. In 2006, Geneva acquired a NZD50 million credit line from the Royal Bank of Scotland, as a backup for the company in case this scenario ever arose.

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newzealand

New Zealand's Telecom Does Not Intend on Selling

Chief Executive Director, Paul Renyolds told reporters, "I have no plans to sell our network", rejecting the earlier plan to sell the division.

Chief Executive Director, Paul Renyolds told reporters, "I have no plans to sell our network", rejecting the earlier plan to sell the division. The government had previously announced it's requirement for Telecom to divide its business into three separate networks, setting a deadline of a plan by mid-October. The split will allow for competition in the telecommunications industry, especially in the high-speed internet services, as Telecom controls nearly 80 percent of the country's telecommunications market.

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newzealand

New Zealand Kiwi Once Again Sees an Increase

The New Zealand dollar rose again as confidence begins to surround the world market.

The New Zealand dollar rose again as confidence begins to surround the world market. Investors once again are willing to risk and once again are borrowing in countries with lower benchmark rates then funding purchases of assets in countries like New Zealand, higher yielding nations. The New Zealand dollar rose from 75.89 US cents yesterday to 76.05 US cents this morning. This year, the cash rate at increased four times, making it among the highest Aaa rated countries. It appears that the period of panic has subsided and investors are once again returning to high risk assets, like the New Zealand dollar.

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newzealand

Immigration in New Zealand Supports the Economy

Immigration in New Zealand appears to have left it's economy NZD3.3 billion richer.

Immigration in New Zealand appears to have left it's economy NZD3.3 billion richer. A study done by the immigration department show just how significant immigration is to the small country. According to David Cunliffe, immigration minister, "Immigration ensures that our employers can access the much-needed skills they need for economic growth, and migrants also bring in links to export markets, investment, ideas and diversity." Because immigration is important, the immigration department spent NZD4.8 billion, which in nothing compared to the NZD8.1 billion visa holders pay in taxes, to help New Zealand visa holders transition into their new life. The beneficial impact of immigration is up nearly 80 percent from the last time it was studied in 2003.

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200 Megawatt Wind Farn Gains Approval in New Zealand

Approval has been granted to New Zealand's TrustPower Ltd., to build a 200 megawatt wind farm

Approval has been granted to New Zealand's TrustPower Ltd., to build a 200 megawatt wind farm. The project, which hopes to supply electricity to 100,000 homes, will cost NZD400 million. In order to meet rising demand TrustPower, along with numerous others, will consider building 1,300 megawatts of wind power.

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newzealand

Air New Zealand's Plans for Airport in Jeopardy

Whenuapai Air Force Base appears to have attracted the attention of Multi-Millionaire motorsport enthusiast Colin Giltrap.

Whenuapai Air Force Base appears to have attracted the attention of Multi-Millionaire motorsport enthusiast Colin Giltrap. Air New Zealand has long been pushing for a second civilian airport and the most logical place was Whenuapai; however, Giltrap confirmed that he, along with Auckland Motorsport Park and V8 Supercars Whenuapai directors Frank Radisch and Peter Sinton, will be launching a bid for Whenuapai. Turning Whenuapai into a civilian airport would support regional and economic growth, while it is uncertain what benefits the proposed racetrack would bring. Mike Tod, a spokesman for Air New Zealand said, "While we believe Whenuapai has the potential for commercial aircraft operations, it is great to see a real willingness in the Auckland business community to improve the city's infrastructure in ways that may further underpin tourism growth."

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New Zealand Kiwi Tops US75c

The New Zealand kiwi topped US75c for the first time in almost two months as the U.S. dollar fell to record lows.

The New Zealand kiwi topped US75c for the first time in almost two months as the U.S. dollar fell to record lows. There is speculation among traders that the US Federal reserve bank will cut interest rates even further. There is growing concern among exporters as the kiwi gained 6.3 percent this week, from an already high 14 percent increase since August 17. The kiwi also topped 87 yen yesterday but fell back to 86.69 yen by this morning.

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newzealand

Agricultural Business Thriving in New Zealand

ANZ National Bank released a survey which claims 17.2 percent of companies predict that their sales will increase over the next year.

ANZ National Bank released a survey which claims 17.2 percent of companies predict that their sales will increase over the next year. The agricultural industry is thriving with confidence as farmers are expecting high profits and the ability to hire more workers. The optimism does not carry over to all industries as construction companies predict they will be forced to fire workers due to profits falling as a result of high interest rates.

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newzealand

Telecommunication Industry Giant Split by New Zealand Government

After being accused of dominating the telecommunications industry, Telecom has been ordered by the New Zealand government to split into three levels.

After being accused of dominating the telecommunications industry, Telecom has been ordered by the New Zealand government to split into three levels by March 31, 2008. The split will encourage industry competition and investment while, over time, allowing the New Zealand telecommunications market to be comparable to others in the world. Telecom, who does not predict a change in staff numbers, will be broken into retail, wholesale and network operations. Shares divided when the government first discussed the separation last year, however, by the close of trading, Telecom shares rose 14 cents.

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Consumer Confidence Climbing in New Zealand

After the unemployment rate reach an all time low, and the cost of exported dairy products rise, consumers in New Zealand sighed with relief for the first time this year.

After the unemployment rate reach an all time low, and the cost of exported dairy products rise, consumers in New Zealand sighed with relief for the first time this year. The New Zealand farmers that supply the world's largest dairy supplier, Fonterra Cooperative Group Ltd., may be able to expect a 43 percent rise in their payments by May. Rising wages for workers, a low unemployment rate as well as the trade boost also support the optimistic view New Zealanders are now taking. New Zealand can purchase more from a fixed quantity of exports because the trade index is higher due to the high export prices.

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New Zealand's National Party Suggests Asset Sales

New Zealand's National Party is currently developing a policy of selling state owned assets. Whereas the party itself claims, that selling up to 50 percent of state-owned enterprises would help funding infrastructure spending and provide investment opportunities, the Prime Minister Helen Clark rather considers the plan to try to creatively account for tax cuts. She firmly ruled out any, partial or whole, sales of state assets under a Labour-led government.

New Zealand's National Party is currently developing a policy of selling state owned assets. Whereas the party itself claims, that selling up to 50 percent of state-owned enterprises would help funding infrastructure spending and provide investment opportunities, the Prime Minister Helen Clark rather considers the plan to try to creatively account for tax cuts. She firmly ruled out any, partial or whole, sales of state assets under a Labour-led government.

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newzealand

New Zealand Dollar Confident for the Biggest Weekly Gain

The New Zealand Dollar was confident for its biggest weekly gain in almost seven years. The currency rushed to its strongest progression in almost six weeks against the U.S dollar.

New Zealand Dollar was confident for its biggest weekly gain in almost seven years. The currency rushed to its strongest progression in almost six weeks against the U.S dollar and was also progressing against the Japanese Yen. Recently, many foreign investors had been attracted to the New Zealand financial assets and were hoping for comparative returns from its bonds and bills.

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newzealand

The New Zealand Dollar Rises and Retreats

After hitting a 2 1/2 week high overnight, the New Zealand dollar softened by closing. Although the kiwi's gain can partially be attributed to the US dollar's record lows, it could not overcome somber news

After hitting a 2 1/2 week high overnight, the New Zealand dollar softened by closing. Although the kiwi's gain can partially be attributed to the US dollar's record lows, it could not overcome somber news from the ANZ bank concerning weak retail spending and a decision from the Reserve Bank to hold interest rates.

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newzealand

NZ: Higher Interests Rates Leave Retail Sales Steady

According to figures released by Statistics New Zealand in Willington on Thursday, Kiwi retail sales remained unchanged in July, which helps support the notion that record high interest rates are curbing consumption. Furthermore, these unchanged retail sales help dim the possibility that the Reserve Bank will increase borrowing costs anytime soon. According to Shamubeel Eaqub, an analyst based in New Zealand, "The slowing trend in retail sales and precipitous decline in house sales are a reflection of increased monetary policy traction," adding that, "we expect the Reserve Bank to ease interest rates, most likely in mid 2008." Today, Reserve Bank Governor Alan Bollard kept the benchmark interest rate at 8.25 percent.

According to figures released by Statistics New Zealand in Willington on Thursday, Kiwi retail sales remained unchanged in July, which helps support the notion that record high interest rates are curbing consumption. Furthermore, these unchanged retail sales help dim the possibility that the Reserve Bank will increase borrowing costs anytime soon. According to Shamubeel Eaqub, an analyst based in New Zealand, "The slowing trend in retail sales and precipitous decline in house sales are a reflection of increased monetary policy traction," adding that, "we expect the Reserve Bank to ease interest rates, most likely in mid 2008." Today, Reserve Bank Governor Alan Bollard kept the benchmark interest rate at 8.25 percent.

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newzealand

New Zealand Exports: Highest Purchasing Power since 1974

According to Statistics New Zealand, the country's terms of trade have improved 2.4 percent year on year and as much as 12.4 percent in comparison to June 2002.

According to Statistics New Zealand, the country's terms of trade have improved 2.4 percent year on year and as much as 12.4 percent in comparison to June 2002. Expectations for the upcoming quarters are even more positive as rising world market prices for dairy products will be taken into account.

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newzealand

New Zealand Governments Increases Treasury Bill Tender

As the New Zealand Debt Management Office (DMO) has stated, it is going to provide an elevated amount of NZD 250 million in three-month bills at its next auction on Tuesday.

As the New Zealand Debt Management Office (DMO) has stated, it is going to provide an elevated amount of NZD 250 million in three-month bills at its next auction on Tuesday. With this increase, the government tries to meet the elevated demand for government securities in the light of the US subprime lending problem.

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newzealand

India Improves Economic Freedom but Slips in Worldwide Ranking

Although having improved their index of economic freedom to an all time high of 6.6 out of 10, India has dropped down some places in the overall ranking, sliding from rank 60 to 69. The index, prepared by Canada-based Fraser Institute, examines on an annual basis a list of 141 countries considering their economic freedom. The highest ranks in the recent report are held by Hong Kong, Singapore and New Zealand.

Although having improved their index of economic freedom to an all time high of 6.6 out of 10, India has dropped down some places in the overall ranking, sliding from rank 60 to 69. The index, prepared by Canada-based Fraser Institute, examines on an annual basis a list of 141 countries considering their economic freedom. The highest ranks in the recent report are held by Hong Kong, Singapore and New Zealand.

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newzealand

Kiwi Government with New Business Expansion Scheme

New Zealand's government is going to further elaborate on plans today, that will support New Zealand companies expanding abroad. Instead of just assisting companies to export their goods, Economic Development Minister Trevor Mallard aims at support for the establishment of New Zealand operations in foreign countries.

New Zealand's government is going to further elaborate on plans today, that will support New Zealand companies expanding abroad. Instead of just assisting companies to export their goods, Economic Development Minister Trevor Mallard aims at support for the establishment of New Zealand operations in foreign countries. This move is not free of controversy as it raises concerns of shifting jobs from New Zealand to foreign countries.

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newzealand

Goldman Sachs Mollifies Concerns for New Zealand's Economy

A Goldman Sachs Analyst has mollified concerns about the impact of New Zealand's finance company sector for the country's overall economy.

A Goldman Sachs Analyst has mollified concerns about the impact of New Zealand's finance company sector for the country's overall economy, referring to the relative small size of the sector. However, what might be affected in the near future is the access to credits for certain segments of society that have not had access to more bank debt. In the past, finance companies had taken over the role to serve these segments.

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newzealand

New Zealand's Dollar Level Right for Trade

During informal talks at a meeting of all Asian Trade Ministers in Manila, New Zealand's trade minister Phil Goff expressed his happiness about the current exchange rate of the NZD.

During informal talks at a meeting of all Asian Trade Ministers in Manila, New Zealand's trade minister Phil Goff expressed his happiness about the current exchange rate of the NZD. Goff supports a bandwidth of 60-70 US cents to prevent imported inflation. In recent days, the NZD had traded around 70 US cents.

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newzealand

Japan and New Zealand to Discuss Sharing Oil During Emergencies

Japan and New Zealand are in talks to discuss cooperation in the area of energy security. The talks could result in the sharing of oil stockpiles in the case of natural disasters and other emergencies.

Japan and New Zealand are in talks to discuss cooperation in the area of energy security. The talks could result in the sharing of oil stockpiles in the case of natural disasters and other emergencies.

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newzealand

Employment Booming in New Zealand's Northland

As a survey of Statistics New Zealand (SNZ) suggests, the country's northern part seems to be able to overcome its stigma of unemployment. According to the recently published survey, the number of jobs filled has risen 3.5 percent. Furthermore, the figures show that the region, in comparison to 13 other regions, had the highest job and earnings growth for both this year and over the past 5 years.

As a survey of Statistics New Zealand (SNZ) suggests, the country's northern part seems to be able to overcome its stigma of unemployment. According to the recently published survey, the number of jobs filled has risen 3.5 percent. Furthermore, the figures show that the region, in comparison to 13 other regions, had the highest job and earnings growth for both this year and over the past 5 years.

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newzealand

Australia, NZ: Dollars Rise Again

After Asian shares gained for two consecutive days, both the Australian dollar and the New Zealand dollar have recovered from their losses. The Australian dollar rose against the Japanese yen from 91.57 yen to 92.20 yen in Sydney and 92.61 late in New York. The New Zealand dollar rose from 79.40 yen to 79.75 yen and 80.30 yen respectively.

After Asian shares gained for two consecutive days, both the Australian dollar and the New Zealand dollar have recovered from their losses. The Australian dollar rose against the Japanese yen from 91.57 yen to 92.20 yen in Sydney and 92.61 late in New York. The New Zealand dollar rose from 79.40 yen to 79.75 yen and 80.30 yen respectively.

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newzealand

New Zealand Stock Index at 2007 Low

Today the benchmark NZSX-50 index fell to 4013, the lowest it has been since December 2006. Of the top 50 stocks, only two were up on the day. The index has been declining the past 4 days, leaving a lot of investors uncertain about the market. Brokers said that concerns over global credit markets and a shaky day on Wall Street were largely to blame for the NZSX-50's recent tumble.

Today the benchmark NZSX-50 index fell to 4013, the lowest it has been since December 2006. Of the top 50 stocks, only two were up on the day. The index has been declining the past 4 days, leaving a lot of investors uncertain about the market. Brokers said that concerns over global credit markets and a shaky day on Wall Street were largely to blame for the NZSX-50's recent tumble.

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newzealand

Retail Sales Fall in New Zealand

According to a Statistics New Zealand report released today, retail sales fell 0.6 percent in the June quarter, marking the first decrease in 18 months. The June quarter decline follows the booming March quarter, which set the record for New Zealand's largest quarterly rise in retail sales. The quarter's sales were most affected by diminished appliance and vehicle sales.

According to a Statistics New Zealand report released today, retail sales fell 0.6 percent in the June quarter, marking the first decrease in 18 months. The June quarter decline follows the booming March quarter, which set the record for New Zealand's largest quarterly rise in retail sales. The quarter's sales were most affected by diminished appliance and vehicle sales.

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newzealand

New Zealand's Residential Property Market May Be Slowing

Though property values have continued to grow, anecdotal evidence of fewer listings and buyers could be indicating a slowing in the residential property market. Quotable Value spokesman Blue Hancock said that while prices in some provincial cities did experience strong growth, prices in large urban areas seemed to be stabilizing.

Though property values have continued to grow, anecdotal evidence of fewer listings and buyers could be indicating a slowing in the residential property market. Quotable Value spokesman Blue Hancock said that while prices in some provincial cities did experience strong growth, prices in large urban areas seemed to be stabilizing.

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newzealand

New Zealand Dollar Plummets

The NZD dropped over USD 0.02 after Wall Street slumped and a credit crunch began in the US subprime mortgage market. At the close of trading in New Zealand on Friday, the NZD traded at USD 0.7450, down 3 percent from Thursday's close at USD 0.7680. Less than a month ago the NZD traded at a post-float high of USD 0.816.

The NZD dropped over USD 0.02 after Wall Street slumped and a credit crunch began in the US subprime mortgage market. At the close of trading in New Zealand on Friday, the NZD traded at USD 0.7450, down 3 percent from Thursday's close at USD 0.7680. Less than a month ago the NZD traded at a post-float high of USD 0.816.

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newzealand

New Zealand's Jobless Rate at All Time Low

In a report today, Statistics New Zealand announced that the jobless rate in the second quarter fell to 3.6 percent. Companies adding 14,000 workers helped bring the jobless rate down from 3.7 percent in the first quarter. New Zealand's jobless rate is the fifth-lowest of 27 economies in the Organization for Economic Cooperation and Development that use standardized rates.

In a report today, Statistics New Zealand announced that the jobless rate in the second quarter fell to 3.6 percent. Companies adding 14,000 workers helped bring the jobless rate down from 3.7 percent in the first quarter. New Zealand's jobless rate is the fifth-lowest of 27 economies in the Organization for Economic Cooperation and Development that use standardized rates.

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newzealand

Dairy Prices Continue to Rise, Boost NZ Economy

Dairy products, which account for a third of New Zealand's commodity exports, continued to increase in price last month as dairy prices rose 7.8 percent in July. Dairy prices have more than doubled in the past year and have been the driving force behind a 35 percent increase in the ANZ's index.

Dairy products, which account for a third of New Zealand's commodity exports, continued to increase in price last month as dairy prices rose 7.8 percent in July. Dairy prices have more than doubled in the past year and have been the driving force behind a 35 percent increase in the ANZ's index.

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newzealand

Data Released about NZ Central Bank's NZD Selling

Data released today shows just how much the New Zealand Reserve Bank did to curb the NZD's rise in value against the USD in June. That month the bank sold NZD 702 million in an effort to bring down the unjustifiably high value of the currency. Analysts believe the bank continued to intervene in the month of July. Today the currency is trading around USD 0.7580.

Data released today shows just how much the New Zealand Reserve Bank did to curb the NZD's rise in value against the USD in June. That month the bank sold NZD 702 million in an effort to bring down the unjustifiably high value of the currency. Analysts believe the bank continued to intervene in the month of July. Today the currency is trading around USD 0.7580.

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newzealand

Wage Inflation in New Zealand Probably Accelerated in Second Quarter

A survey of economists shows that second quarter wages rose 3.1 percent from a year earlier. The figure is just a little bit larger than the first quarter's 3 percent, but it may result in more consumer spending and could possibly add to inflationary pressures.

A survey of economists shows that second quarter wages rose 3.1 percent from a year earlier. The figure is just a little bit larger than the first quarter's 3 percent, but it may result in more consumer spending and could possibly add to inflationary pressures.

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newzealand

NZX Insists New Zealand's Monetary Policy Must Change

NZX, the operator of New Zealand's stock exchange, submitted a report that recommended a change of monetary policy. The submission said that the world is very different now than it was when the Reserve Bank Act was passed almost 20 years ago. It goes on to say that the current policy has negatively impacted New Zealand firms, increasing the cost of capital and hurting investment.

NZX, the operator of New Zealand's stock exchange, submitted a report that recommended a change of monetary policy. The submission said that the world is very different now than it was when the Reserve Bank Act was passed almost 20 years ago. It goes on to say that the current policy has negatively impacted New Zealand firms, increasing the cost of capital and hurting investment.

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newzealand

NZD Value May Hurt New Zealand's Sheep and Beef Exporters

Meat & Wool New Zealand says that the average sheep and beef farmer will have the lowest inflation-adjusted level of profits in 50 years if the New Zealand Dollar's value stays between USD 0.78 and USD 0.80. Meat & Wool's 2007-08 Outlook shows that at such a level, the average farm's profit before taxes would be NZD 23,400.

Meat & Wool New Zealand says that the average sheep and beef farmer will have the lowest inflation-adjusted level of profits in 50 years if the New Zealand Dollar's value stays between USD 0.78 and USD 0.80. Meat & Wool's 2007-08 Outlook shows that at such a level, the average farm's profit before taxes would be NZD 23,400.

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newzealand

New Zealand Dollar Continues to Lose Value

Yesterday the NZD dropped to a six-week low, dipping below USD 0.7560 before bouncing back to USD 0.7731. However, the currency suffered again in the afternoon when New Zealand's Foreign Minister Winston Peters said it could fall another 27 percent. Shortly after his comments, the NZD fell below USD 0.77.

Yesterday the NZD dropped to a six-week low, dipping below USD 0.7560 before bouncing back to USD 0.7731. However, the currency suffered again in the afternoon when New Zealand's Foreign Minister Winston Peters said it could fall another 27 percent. Shortly after his comments, the NZD fell below USD 0.77.

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newzealand

Exceptional Increase in New Zealand Home-Building Approvals

Statistics New Zealand released figures showing that approvals to build new houses and apartments in June increased 15.8 percent from May, the largest gain in over a year and a half. The heating housing market was one of the reasons for the Reserve Bank's recent series of interest rate hikes. While the bank raised the rate just last Thursday, Reserve Bank Governor Alan Bollard may be worried that housing activity has not been slowing as much as he'd like.

Statistics New Zealand released figures showing that approvals to build new houses and apartments in June increased 15.8 percent from May, the largest gain in over a year and a half. The heating housing market was one of the reasons for the Reserve Bank's recent series of interest rate hikes. While the bank raised the rate just last Thursday, Reserve Bank Governor Alan Bollard may be worried that housing activity has not been slowing as much as he'd like.

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newzealand

New Zealand Dollar’s Future Unclear

Yesterday the New Zealand Dollar dropped from USD 0.8035 to as low as USD 0.7953 before slightly recovering. The fall occurred when Reserve Bank Governor Alan Bollard announced he was raising the official cash rate for what may be the last time this year. But with some investors unsure whether or not Bollard will maintain the current interest rate and the possibility that US subprime home lending woes could start to affect global markets, experts remain uncertain about the NZD's future.

Yesterday the New Zealand Dollar dropped from USD 0.8035 to as low as USD 0.7953 before slightly recovering. The fall occurred when Reserve Bank Governor Alan Bollard announced he was raising the official cash rate for what may be the last time this year. But with some investors unsure whether or not Bollard will maintain the current interest rate and the possibility that US subprime home lending woes could start to affect global markets, experts remain uncertain about the NZD's future.

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newzealand

New Zealand Reserve Bank Raises Rate Again

NZ Reserve Bank Governor Alan Bollard raised the official cash rate today from 8 percent to 8.25 percent, saying the economy was running strongly and that this hike should be enough to contain inflation pressures. Economists believe that this will be the last in a series of interest rate hikes this year, indicating that the Reserve Bank's target inflation numbers should be reached.

NZ Reserve Bank Governor Alan Bollard raised the official cash rate today from 8 percent to 8.25 percent, saying the economy was running strongly and that this hike should be enough to contain inflation pressures. Economists believe that this will be the last in a series of interest rate hikes this year, indicating that the Reserve Bank's target inflation numbers should be reached.

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newzealand

Control of NZ Airport May Be Part of Airline's Global Aspirations

Documents pertaining to Dubai Aerospace Enterprise's (DAE) proposal to purchase a controlling share of New Zealand's Auckland International Airport show that DAE has plans to expand routes and services to Auckland for Emirates, a Dubai-based airline. Auckland could provide a secondary hub for Emirates and allow it to make connections to North and South America. The move seems to be in line with Emirates' plan to become a truly global airline.

Documents pertaining to Dubai Aerospace Enterprise's (DAE) proposal to purchase a controlling share of New Zealand's Auckland International Airport show that DAE has plans to expand routes and services to Auckland for Emirates, a Dubai-based airline. Auckland could provide a secondary hub for Emirates and allow it to make connections to North and South America. The move seems to be in line with Emirates' plan to become a truly global airline.

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newzealand

New Zealand Dollar Soars Above USD 0.81

After barely passing the USD 0.80 mark yesterday, the New Zealand Dollar raced past USD 0.81 today before settling back to USD 0.8065. Over the past year, the NZD has gained 30 percent versus the USD, making it the best performing major currency. One economic expert predicted the NZD would not stop climbing until it has hit USD 0.83.

After barely passing the USD 0.80 mark yesterday, the New Zealand Dollar raced past USD 0.81 today before settling back to USD 0.8065. Over the past year, the NZD has gained 30 percent versus the USD, making it the best performing major currency. One economic expert predicted the NZD would not stop climbing until it has hit USD 0.83.

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newzealand

Dubai Company Seeking Majority Share of New Zealand Airport

State-owned Dubai Aerospace Enterprises is offering as much as NZD 2.6 billion to own between 51 and 60 percent of Auckland International Airport Ltd., New Zealand's busiest airport. The proposal is stirring up controversy as some politicians do not like the idea of a foreign company controlling the NZ airport. Manukau Mayor Barry Curtis said he was completely opposed to it. His opinion could count for quite a bit, as the Manukau City Council owns 10.05 percent of the airport.

State-owned Dubai Aerospace Enterprises is offering as much as NZD 2.6 billion to own between 51 and 60 percent of Auckland International Airport Ltd., New Zealand's busiest airport. The proposal is stirring up controversy as some politicians do not like the idea of a foreign company controlling the NZ airport. Manukau Mayor Barry Curtis said he was completely opposed to it. His opinion could count for quite a bit, as the Manukau City Council owns 10.05 percent of the airport.

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newzealand

Weak US Dollar Drives NZD Past USD 0.80

After the New Zealand dollar had traded for up to USD 0.7999 in New Zealand, Reuters reported that it had risen as high as USD 0.8007 in Tokyo today. Experts said that a weakening US dollar helped the NZD hit its most recent high. The NZD has also continued to climb against Japan's yen, hitting a new multi-year high on Saturday.

After the New Zealand dollar had traded for up to USD 0.7999 in New Zealand, Reuters reported that it had risen as high as USD 0.8007 in Tokyo today. Experts said that a weakening US dollar helped the NZD hit its most recent high. The NZD has also continued to climb against Japan's yen, hitting a new multi-year high on Saturday.

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newzealand

Pike River Coal Debuts at a Premium Despite Coal Uncertainty

Uncertainty surrounding coal prices and a highly appreciated dollar could not prevent Pike River Coal's debut on the New Zealand Exchange (NZX) from being successful. Pike River shares hit a 2 percent premium on their issue price following an initial public offering (IPO) earlier this week that raised USD 85 million. Pike River's IPO had sought only USD 65 million, and the USD 20 million over-subscription made it New Zealand's largest public equity raising on the year to date.

Uncertainty surrounding coal prices and a highly appreciated dollar could not prevent Pike River Coal's debut on the New Zealand Exchange (NZX) from being successful. Pike River shares hit a 2 percent premium on their issue price following an initial public offering (IPO) earlier this week that raised USD 85 million. Pike River's IPO had sought only USD 65 million, and the USD 20 million over-subscription made it New Zealand's largest public equity raising on the year to date.

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newzealand

Rate Talks Put Reserve Bank's Independence Under Pressure

While Reserve Bank Governor Alan Bollard is expected to raise interest rates next Thursday for the fourth time this year, failure to do so may raise questions about the bank's independence from the New Zealand government. Michael Cullen's review of the Reserve Bank Act's passage that allows the government to intervene and prevent rate rises has been seen by some as merely an attempt to talk down the rapidly appreciating NZ dollar. Cullen denies that he is pressuring Bollard to prevent another rate rise.

While Reserve Bank Governor Alan Bollard is expected to raise interest rates next Thursday for the fourth time this year, failure to do so may raise questions about the bank's independence from the New Zealand government. Michael Cullen's review of the Reserve Bank Act's passage that allows the government to intervene and prevent rate rises has been seen by some as merely an attempt to talk down the rapidly appreciating NZ dollar. Cullen denies that he is pressuring Bollard to prevent another rate rise.

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newzealand

Despite Highly Appreciated Dollar, NZ Feeling Pressure to Hike Rates

New Zealand Reserve Bank Governor Alan Bollard has announced that he may have no other choice but to raise the nation's interest rates again. A rate hike would bring New Zealand's official cash rate from 8 percent, the equivalent of the Ukraine's, to 8.25 percent, the equivalent of Indonesia's. Among the world's major developed economies, the average official cash rate is 4 percent. This announcement comes in spite of the fact that the NZ dollar is trading as high as US 79 cents.

New Zealand Reserve Bank Governor Alan Bollard has announced that he may have no other choice but to raise the nation's interest rates again. A rate hike would bring New Zealand's official cash rate from 8 percent, the equivalent of the Ukraine's, to 8.25 percent, the equivalent of Indonesia's. Among the world's major developed economies, the average official cash rate is 4 percent. This announcement comes in spite of the fact that the NZ dollar is trading as high as US 79 cents.

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newzealand

NZ Antitrust Regulator: Warehouse Takeover Risks Duopoly

The Commerce Commission, New Zealand's antitrust regulator, blocked bids from Australian-based Woolworths Ltd. and Auckland-based rival Foodstuffs NZ Ltd. for Warehouse Group Ltd., New Zealand's largest retailer. The regulator justified its division by saying a buyout by either firm of the major NZ retailer would return New Zealand's supermarket retail industry to a state of duopoly. When duopoly conditions existed prior to Warehouse Group's entry to the market, competition was at a drastically lower level.

The Commerce Commission, New Zealand's antitrust regulator, blocked bids from Australian-based Woolworths Ltd. and Auckland-based rival Foodstuffs NZ Ltd. for Warehouse Group Ltd., New Zealand's largest retailer. The regulator justified its division by saying a buyout by either firm of the major NZ retailer would return New Zealand's supermarket retail industry to a state of duopoly. When duopoly conditions existed prior to Warehouse Group's entry to the market, competition was at a drastically lower level.

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newzealand

New Zealand Dollar Hitting New Highs on Way to USD 0.80

News that the payout to dairy farmers this year could be as high as NZD 6.60 per kilogram of milksolids helped fuel the NZD's rise up to a new high of USD 0.796 on Friday. Previously, the payout was predicted at NZD 5.53 per kilogram. Experts are projecting an overall increase of NZD 3 billion from last year's payout, resulting in even more speculation that the Reserve Bank will hike the official cash rate to 8.25 percent on Thursday.

News that the payout to dairy farmers this year could be as high as NZD 6.60 per kilogram of milksolids helped fuel the NZD's rise up to a new high of USD 0.796 on Friday. Previously, the payout was predicted at NZD 5.53 per kilogram. Experts are projecting an overall increase of NZD 3 billion from last year's payout, resulting in even more speculation that the Reserve Bank will hike the official cash rate to 8.25 percent on Thursday.

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newzealand

Controversy Surrounds New Zealand Finance Minister's Comments

Members of parliament and the media are questioning Finance Minister Michael Cullen's recent messages to the public in which he tries to raise awareness of his never-used power to suspend the government's agreement with the Reserve Bank to target inflation. If the power was invoked, then Cullen could cut interest rates, which would help reduce the value of the NZD. While he says that he is simply trying to make investors aware of possible risks, others see his messages as a way of scaring investors out of the market.

Members of parliament and the media are questioning Finance Minister Michael Cullen's recent messages to the public in which he tries to raise awareness of his never-used power to suspend the government's agreement with the Reserve Bank to target inflation. If the power was invoked, then Cullen could cut interest rates, which would help reduce the value of the NZD. While he says that he is simply trying to make investors aware of possible risks, others see his messages as a way of scaring investors out of the market.

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newzealand

NZD's High Value Spurs Debate by New Zealand Politicans

As the New Zealand Dollar (NZD) soared to a new 22-year post-float high, New Zealand politicians sounded off on issues surrounding the overvalued currency. While some believed the Reserve Bank was solely responsible, others blamed the government for overspending, which exacerbated inflation and forced the bank to act. A bill that would have widened the Reserve Bank's primary function from price stability to include a focus on the exchange rate, the economy, and employment was rejected.

As the New Zealand Dollar (NZD) soared to a new 22-year post-float high, New Zealand politicians sounded off on issues surrounding the overvalued currency. While some believed the Reserve Bank was solely responsible, others blamed the government for overspending, which exacerbated inflation and forced the bank to act. A bill that would have widened the Reserve Bank's primary function from price stability to include a focus on the exchange rate, the economy, and employment was rejected.

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newzealand

After Report on Inflation, New Zealand More Likely to Raise Interest Rate

News just came out that consumer prices in New Zealand increased 1 percent this past quarter, exceeding the Reserve Bank's 0.7 percent estimate. With a growing number of reports that show domestic demand is not fading, more economists are predicting that Reserve Bank Governor Alan Bollard will raise the official cash rate for the fourth time this year when the central bank has its next review on July 26. The current interest rate is 8 percent, and it will go up to 8.25 percent if Bollard opts to act.

News just came out that consumer prices in New Zealand increased 1 percent this past quarter, exceeding the Reserve Bank's 0.7 percent estimate. With a growing number of reports that show domestic demand is not fading, more economists are predicting that Reserve Bank Governor Alan Bollard will raise the official cash rate for the fourth time this year when the central bank has its next review on July 26. The current interest rate is 8 percent, and it will go up to 8.25 percent if Bollard opts to act.

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newzealand

Petrol Prices Fuel Second Quarter Inflation in New Zealand

Statistics New Zealand showed that an 8 percent increase in petrol prices greatly contributed to the 1 percent inflation rate experienced in the second quarter. If petrol prices had not changed, the consumers price index would have only increased 0.6 percent. The Reserve Bank is targeting an annual inflation rate between 1 and 3 percent.

Statistics New Zealand showed that an 8 percent increase in petrol prices greatly contributed to the 1 percent inflation rate experienced in the second quarter. If petrol prices had not changed, the consumers price index would have only increased 0.6 percent. The Reserve Bank is targeting an annual inflation rate between 1 and 3 percent.

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newzealand

Retail Sales in New Zealand Greatly Exceed Expectations

Retail sales in May were up 1.2 percent from April, more than twice the 0.5 percent gain that economists expected. Higher wages and a low unemployment rate helped fuel the increase in retail spending. Signs of growing domestic demand like this retail sales jump may prompt Reserve Bank Governor Alan Bollard to raise the official cash rate at the central bank's next review on July 26.

Retail sales in May were up 1.2 percent from April, more than twice the 0.5 percent gain that economists expected. Higher wages and a low unemployment rate helped fuel the increase in retail spending. Signs of growing domestic demand like this retail sales jump may prompt Reserve Bank Governor Alan Bollard to raise the official cash rate at the central bank's next review on July 26.

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newzealand

New Zealand's Finance Minister Says Economy Growing Too Fast

Finance Minister Michael Cullen warned that the economy is growing at an unsustainable pace, citing growing demand and higher incomes as contributing factors to inflation, high interest rates, and the over-valued NZD. In response to these problems, he said that the government was implementing a threefold strategy that includes plans to increase household savings by expanding the KiwiSaver program.

Finance Minister Michael Cullen warned that the economy is growing at an unsustainable pace, citing growing demand and higher incomes as contributing factors to inflation, high interest rates, and the over-valued NZD. In response to these problems, he said that the government was implementing a threefold strategy that includes plans to increase household savings by expanding the KiwiSaver program.

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newzealand

Tui Oil Field in New Zealand on Course for Fast Profits

The Tui project is on path to recoup all USD 245 million of its costs in three months, which would be the fastest an offshore oil field has ever recouped its costs. Experts say the Tui field's high-quality oil, its better technology, and rising oil prices would be the driving forces behind the record setting payback. The Tui oil project's largest shareholders are Australian Worldwide Exploration Ltd. (owning 42.5 percent) and Mitsui & Co. (35 percent).

The Tui project is on path to recoup all USD 245 million of its costs in three months, which would be the fastest an offshore oil field has ever recouped its costs. Experts say the Tui field's high-quality oil, its better technology, and rising oil prices would be the driving forces behind the record setting payback. The Tui oil project's largest shareholders are Australian Worldwide Exploration Ltd. (owning 42.5 percent) and Mitsui & Co. (35 percent).

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newzealand

House Prices Drop in New Zealand

The Real Estate Institute announced that the national median house price fell about NZD 2500 last month to NZD 347,500. The Institute's president Murray Cleland said drop offs are normal in winter months but added that higher interest rates were also a factor. This price decrease should be good news to Reserve Bank governor Allan Bollard who last month raised interest rates because of a growing household demand.

The Real Estate Institute announced that the national median house price fell about NZD 2500 last month to NZD 347,500. The Institute's president Murray Cleland said drop offs are normal in winter months but added that higher interest rates were also a factor. This price decrease should be good news to Reserve Bank governor Allan Bollard who last month raised interest rates because of a growing household demand.

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newzealand

Companies' Expectations at a Low Point in New Zealand

The New Zealand Institute of Economic Research found that business confidence in New Zealand is at a one-year low as a net 37 percent of firms believe business conditions will deteriorate in the next six months. The soaring NZD and the Reserve Bank's recent interest rate hike are large contributors to the decrease in confidence.

The New Zealand Institute of Economic Research found that business confidence in New Zealand is at a one-year low as a net 37 percent of firms believe business conditions will deteriorate in the next six months. The soaring NZD and the Reserve Bank's recent interest rate hike are large contributors to the decrease in confidence.

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newzealand

Australia & New Zealand Banking Group Ltd. Invests in Vietnam

Australia & New Zealand Banking Group Ltd. is paying USD 88 million for a 10 percent share of Vietnam's Saigon Securities Inc., joining other foreign banks that have recognized a real opportunity in the quickly expanding Southeast Asian nation's economy. The Vietnamese government is currently forecasting economic growth to be above 8.5 percent by 2010.

Australia & New Zealand Banking Group Ltd. is paying USD 88 million for a 10 percent share of Vietnam's Saigon Securities Inc., joining other foreign banks that have recognized a real opportunity in the quickly expanding Southeast Asian nation's economy. The Vietnamese government is currently forecasting economic growth to be above 8.5 percent by 2010.

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newzealand

High Dairy Prices May Fuel Interest Rate Rise in New Zealand

The world prices for dairy products increased an astonishing 13 percent last month. While this increase may be good news to New Zealand's dairy exporters, it could give the Reserve Bank reason to raise the official cash rate yet again. When raising the rate to 8 percent last month, the bank cited the large predicted payout of milksolids as a contributing factor. Another raise could cause even more pain to export industries already suffering because of the NZD's soaring value.

The world prices for dairy products increased an astonishing 13 percent last month. While this increase may be good news to New Zealand's dairy exporters, it could give the Reserve Bank reason to raise the official cash rate yet again. When raising the rate to 8 percent last month, the bank cited the large predicted payout of milksolids as a contributing factor. Another raise could cause even more pain to export industries already suffering because of the NZD's soaring value.

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newzealand

First Drop in a Week on International Asia-Pacific Index

The Morgan Stanley Capital International Asia-Pacific Index dropped for the first time in seven days on Friday, fueled by speculation that a rise in bond yields will lure money away from the equity market. Though China's CSI 300 posted its biggest gain in five months, the benchmark indexes of Japan, Australia, the Philippines, New Zealand, and Sri Lanka all slipped. South Korea's Kospi Index climbed 6.7 percent this week, and Thailand's SET Index posted its largest weekly gain in four years.

The Morgan Stanley Capital International Asia-Pacific Index dropped for the first time in seven days on Friday, fueled by speculation that a rise in bond yields will lure money away from the equity market. Though China's CSI 300 posted its biggest gain in five months, the benchmark indexes of Japan, Australia, the Philippines, New Zealand, and Sri Lanka all slipped. South Korea's Kospi Index climbed 6.7 percent this week, and Thailand's SET Index posted its largest weekly gain in four years.

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newzealand

Law Relating to Telecom's Split Will Be in Place by Year's End

The New Zealand Government announced today that the law relating to Telecom's split will be in place by the end of the year. Because of Telecom's large share of NZ's telecommunications market and its history of anticompetitive behavior, the government is seeking a split of the company's operations into three units: network, wholesale, and retail operations. Telecom argues such a split would be too costly and is currently trying to work with the government to find an alternative solution.

The New Zealand Government announced today that the law relating to Telecom's split will be in place by the end of the year. Because of Telecom's large share of NZ's telecommunications market and its history of anticompetitive behavior, the government is seeking a split of the company's operations into three units: network, wholesale, and retail operations. Telecom argues such a split would be too costly and is currently trying to work with the government to find an alternative solution.

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newzealand

Fueled by Chipmakers, Asian Securities on Six-day Rise

Samsung Electronics Co. and BHP Billiton Ltd. led the way as Asian stocks rose for a sixth straight day, reflecting the current strength and rising prices of computer chips and metals. The Morgan Stanley Capital International Asia-Pacific Index gained 0.5 percent to hit a record of 156.67 at 8:03 PM in Tokyo, and the region's leading benchmark index, the Nikkei 225, rose 0.3 percent. China's CSI 300 Index paced losers as questions swirled concerning the impact of new share sales. The markets of Singapore, Malaysia, Thailand, India, Sri Lanka and New Zealand also took losses on the day.

Samsung Electronics Co. and BHP Billiton Ltd. led the way as Asian stocks rose for a sixth straight day, reflecting the current strength and rising prices of computer chips and metals. The Morgan Stanley Capital International Asia-Pacific Index gained 0.5 percent to hit a record of 156.67 at 8:03 PM in Tokyo, and the region's leading benchmark index, the Nikkei 225, rose 0.3 percent. China's CSI 300 Index paced losers as questions swirled concerning the impact of new share sales. The markets of Singapore, Malaysia, Thailand, India, Sri Lanka and New Zealand also took losses on the day.

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newzealand

Mixed News as Manufacturing Sales Increase in New Zealand

The Canterbury Manufacturers' Association recently conducted a survey of New Zealand manufacturers that showed sales in May 2007 were over 19 percent greater than sales in May 2006. However, the high value of the NZD has been hurting returns, and, with increasing costs, many manufacturers have been seeing a decrease in their profitability.

The Canterbury Manufacturers' Association recently conducted a survey of New Zealand manufacturers that showed sales in May 2007 were over 19 percent greater than sales in May 2006. However, the high value of the NZD has been hurting returns, and, with increasing costs, many manufacturers have been seeing a decrease in their profitability.

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newzealand

New Zealand's Auckland Airport to Increase Landing Charges

New Zealand's busiest airport, Auckland International Airport Ltd. announced a plan whereby its landing charges would increase 2.5 percent a year for the next five years. Already the second most profitable airport in the world, the Auckland Airport would also increase its departure tax starting next July and place the tax on the airlines instead of passengers. This move would allow the airlines to translate the tax burden into higher ticket prices, effectively getting rid of the current system in which passengers must pay the 25 dollar fee at the airport.

New Zealand's busiest airport, Auckland International Airport Ltd. announced a plan whereby its landing charges would increase 2.5 percent a year for the next five years. Already the second most profitable airport in the world, the Auckland Airport would also increase its departure tax starting next July and place the tax on the airlines instead of passengers. This move would allow the airlines to translate the tax burden into higher ticket prices, effectively getting rid of the current system in which passengers must pay the 25 dollar fee at the airport.

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newzealand

New Zealand's GDP Increased 1 Percent in First Quarter

Statistics New Zealand made the announcement today that the gross domestic product had grown 1 percent in the first quarter, exceeding Reserve Bank Governor Alan Bollard's expectation by 0.2 percent. Increased levels of consumption helped drive the GDP's growth, as household spending increased by 2.1 percent over the same period.

Statistics New Zealand made the announcement today that the gross domestic product had grown 1 percent in the first quarter, exceeding Reserve Bank Governor Alan Bollard's expectation by 0.2 percent. Increased levels of consumption helped drive the GDP's growth, as household spending increased by 2.1 percent over the same period.

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newzealand

New Zealand Telecommunications Giant Names New CEO

Telecom NZ hired Paul Reynolds, former CEO of BT Wholesale, to replace Theresa Gattung, who announced her resignation in February. Telecom currently accounts for 80 percent of New Zealand's telecommunications market. After a survey showed New Zealand as lagging behind other countries in uptake of high-speed internet services, the government ordered Telecom to give its rivals greater access to its network and separate its wholesale and retail units, something similar to what Reynolds oversaw at BT Wholesale.

Telecom NZ hired Paul Reynolds, former CEO of BT Wholesale, to replace Theresa Gattung, who announced her resignation in February. Telecom currently accounts for 80 percent of New Zealand's telecommunications market. After a survey showed New Zealand as lagging behind other countries in uptake of high-speed internet services, the government ordered Telecom to give its rivals greater access to its network and separate its wholesale and retail units, something similar to what Reynolds oversaw at BT Wholesale.

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newzealand

New Zealand's Trade Surplus in May Falls Short of Expectations

After economists forecasted May's trade surplus to be upwards of NZD 75 million, the announcement came out Wednesday that New Zealand posted a trade surplus of only NZD 9 million in May, leaving the annual trade deficit at NZD 5.87 billion. One analyst suggested the Reserve Bank's tightening was partially responsible for the apparent slowing of exports and imports.

After economists forecasted May's trade surplus to be upwards of NZD 75 million, the announcement came out Wednesday that New Zealand posted a trade surplus of only NZD 9 million in May, leaving the annual trade deficit at NZD 5.87 billion. One analyst suggested the Reserve Bank's tightening was partially responsible for the apparent slowing of exports and imports.

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newzealand

New Zealand Reserve Bank Warns of Future Interventions

After the New Zealand Dollar's unexpected strength since the NZ Reserve Bank's last intervention in the foreign exchange market, the bank's Deputy Governor Grant Spencer said the bank may continue to sell off NZD in hopes of lowering the currency. The NZD went as high as USD 0.7693 Wednesday.

After the New Zealand Dollar's unexpected strength since the NZ Reserve Bank's last intervention in the foreign exchange market, the bank's Deputy Governor Grant Spencer said the bank may continue to sell off NZD in hopes of lowering the currency. The NZD went as high as USD 0.7693 Wednesday.

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newzealand

With Increase in Exports, New Zealand's Trade Deficit Narrows

As butter and milk powder prices dramatically increased in May, New Zealand's exports rose to a 12-month high, helping New Zealand decrease its trade deficit to an expected NZD 5.82 billion. A decline in imports of cars, fuel, and computers also helped, as expert economists expect the nation to post a NZD 80 million surplus for May.

As butter and milk powder prices dramatically increased in May, New Zealand's exports rose to a 12-month high, helping New Zealand decrease its trade deficit to an expected NZD 5.82 billion. A decline in imports of cars, fuel, and computers also helped, as expert economists expect the nation to post a NZD 80 million surplus for May.

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newzealand

New Zealand Dollar Showing No Sign of Slowing

The NZ Reserve Bank is rumored to have intervened in the foreign exchange market for a third time this past weekend, selling NZD late in the New York session on Friday. Despite its resulting plunge of more than half a cent from 0.7680 USD in New York on Friday, the NZD hit a high of 0.7684 USD in New Zealand on Monday.

The NZ Reserve Bank is rumored to have intervened in the foreign exchange market for a third time this past weekend, selling NZD late in the New York session on Friday. Despite its resulting plunge of more than half a cent from 0.7680 USD in New York on Friday, the NZD hit a high of 0.7684 USD in New Zealand on Monday.

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newzealand

New Zealand's Contact Energy Approved for Work on Dam

Contact Energy received the Otago Regional Council's approval to begin work on the installation of an energy generating plant within the existing Hawea Dam. Contact first pursued the project in 2004 but had to revise its development plan in order to satisfy the community's concerns about the environment. When built, the plant will be able to supply renewable electricity to around 9,000 homes.

Contact Energy received the Otago Regional Council's approval to begin work on the installation of an energy generating plant within the existing Hawea Dam. Contact first pursued the project in 2004 but had to revise its development plan in order to satisfy the community's concerns about the environment. When built, the plant will be able to supply renewable electricity to around 9,000 homes.

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newzealand

New Zealand Dollar on the Move Again

Despite the New Zealand Reserve Bank intervening in the foreign exchange market twice this month, the NZD soared to 0.7624 USD last night before settling back down. Experts believe that the Reserve Bank had most recently intervened when the NZD was valued at 0.7550 USD, but the bank never confirmed it. With the current value well above 0.7550 USD, some experts are uncertain about whether or not the Reserve Bank will intervene again.

Despite the New Zealand Reserve Bank intervening in the foreign exchange market twice this month, the NZD soared to 0.7624 USD last night before settling back down. Experts believe that the Reserve Bank had most recently intervened when the NZD was valued at 0.7550 USD, but the bank never confirmed it. With the current value well above 0.7550 USD, some experts are uncertain about whether or not the Reserve Bank will intervene again.

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newzealand

NZ's Associate Finance Minister Says Government May Cut Personal Income Tax

Associate Finance Minister Trevor Mallard said that pressure was building for an income tax reduction in New Zealand, and he was confident that next year's budget would address the issue. Though Finance Minister Michael Cullen countered the comments by saying they were Mr. Mallard's personal opinion, he did say that the government would consider personal tax reductions when economic conditions allowed.

Associate Finance Minister Trevor Mallard said that pressure was building for an income tax reduction in New Zealand, and he was confident that next year's budget would address the issue. Though Finance Minister Michael Cullen countered the comments by saying they were Mr. Mallard's personal opinion, he did say that the government would consider personal tax reductions when economic conditions allowed.

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newzealand

Report Forecasts Slow Improvement in New Zealand's Economic Growth

Business & Economic Research (Berl) released a report predicting New Zealand's GDP will grow from 2 percent in the fiscal year ending in March 2007 to 2.5 percent next year and 2.6 percent in 2009. Berl said a terms of trade boom, infrastructure investment, and employment growth would be the forces supplying the relatively slow economic growth. In spite of the small improvement year to year, the report does promise that the economy is still growing, which is good news.

Business & Economic Research (Berl) released a report predicting New Zealand's GDP will grow from 2 percent in the fiscal year ending in March 2007 to 2.5 percent next year and 2.6 percent in 2009. Berl said a terms of trade boom, infrastructure investment, and employment growth would be the forces supplying the relatively slow economic growth. In spite of the small improvement year to year, the report does promise that the economy is still growing, which is good news.

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newzealand

Winter's Cold Sparks Increase in New Zealand's Power Prices

As cold weather rolled into New Zealand last week, national demand for power rose by 7 percent. Power prices reflected the increase in demand, jumping by as much as 13.3 percent at some locations. Analysts also cited falling hydro lake levels due to lower inflows as part of the reason for the higher prices.

As cold weather rolled into New Zealand last week, national demand for power rose by 7 percent. Power prices reflected the increase in demand, jumping by as much as 13.3 percent at some locations. Analysts also cited falling hydro lake levels due to lower inflows as part of the reason for the higher prices.

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newzealand

New Zealand Government May Revise Rules about Rental Properties

In line with the goals of its monetary policy, the NZ government may remove the ability of rental property investors to claim losses against their taxes. Policy makers believe that this ability, granted in 1991, may be connected to the heating of the housing market. If this provision was repealed, the government hopes it would make housing harder to get and lower demand as a result.

In line with the goals of its monetary policy, the NZ government may remove the ability of rental property investors to claim losses against their taxes. Policy makers believe that this ability, granted in 1991, may be connected to the heating of the housing market. If this provision was repealed, the government hopes it would make housing harder to get and lower demand as a result.

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newzealand

After 12th Round of Talks, New Zealand Closer to Trade Agreement with China

Last week New Zealand and China completed their 12th round of talks about a possible free-trade deal. The free-trade agreement, expected to be completed by next April, could potentially boost the NZ economy by USD 240 million to NZD 370 million a year. However, the deal is not without controversy, as NZ trade negotiators are being advised to pressure China into including emissions targets and humans rights issues as parts of the agreement.

Last week New Zealand and China completed their 12th round of talks about a possible free-trade deal. The free-trade agreement, expected to be completed by next April, could potentially boost the NZ economy by USD 240 million to NZD 370 million a year. However, the deal is not without controversy, as NZ trade negotiators are being advised to pressure China into including emissions targets and humans rights issues as parts of the agreement.

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newzealand

New Zealand's Auckland Airport May Become Site of Bidding War

Speculation began about the future of Auckland International Airport Ltd. after Canada Pension Plan Investment Board valued it at NZD 3.79 billion. Offering to buy shares of NZ's busiest airport at 3.10 NZD, the Canadian pension fund has started taking clear steps toward a takeover of the airport. When Auckland Airport announced it was in talks with more than one party, the company's stock shot up to NZD 3.20. Analysts say Australia's Macquarie Airports may be among the potential bidders for the airport.

Speculation began about the future of Auckland International Airport Ltd. after Canada Pension Plan Investment Board valued it at NZD 3.79 billion. Offering to buy shares of NZ's busiest airport at 3.10 NZD, the Canadian pension fund has started taking clear steps toward a takeover of the airport. When Auckland Airport announced it was in talks with more than one party, the company's stock shot up to NZD 3.20. Analysts say Australia's Macquarie Airports may be among the potential bidders for the airport.

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newzealand

Evidence Suggests New Zealand Reserve Bank Intervened Again

Though the Reserve Bank has yet to confirm any action it may have taken, experts believe that it bought up USD and sold NZD Monday morning. The NZD, up to 0.7550 USD on Saturday, had dropped about half a cent against the USD before rebounding back up to 0.7524 USD. If the Reserve Bank did in fact intervene, it would be the second time in a week that the bank acted to prevent appreciation of the NZD.

Though the Reserve Bank has yet to confirm any action it may have taken, experts believe that it bought up USD and sold NZD Monday morning. The NZD, up to 0.7550 USD on Saturday, had dropped about half a cent against the USD before rebounding back up to 0.7524 USD. If the Reserve Bank did in fact intervene, it would be the second time in a week that the bank acted to prevent appreciation of the NZD.

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newzealand

New Zealand Retailers Forecast Further Decline in Sales and Profits

The NZ Retailers Association said that yesterday's announcement of a 1.2 percent drop in April's retail sales shows a clear change in the retail market and may signal the beginning of a trend that could continue through May and June. Though the decline may seem small, NZ retailers claim that the effect is magnified by slimmer profit margins resulting from increased competition with foreign retailers. Even weather has been an issue, as the prolonged summer has delayed sales of winter products. As a result, several NZ retailers have lowered profit expectations.

The NZ Retailers Association said that yesterday's announcement of a 1.2 percent drop in April's retail sales shows a clear change in the retail market and may signal the beginning of a trend that could continue through May and June. Though the decline may seem small, NZ retailers claim that the effect is magnified by slimmer profit margins resulting from increased competition with foreign retailers. Even weather has been an issue, as the prolonged summer has delayed sales of winter products. As a result, several NZ retailers have lowered profit expectations.

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newzealand

New Zealand Group Focuses on Ties with Japan

Assembling leading exporters and business organizations from around the country, the New Zealand International Business Forum launched Thursday with the goal of expanding NZ's international trade and investment. As their first priority, the group is seeking closer ties with Japan, NZ's third largest export destination and second largest source of imports. Though Japan currently has no interest in a free trade agreement and sees NZ as only its 43rd largest trading partner, the NZ group hopes that they can build a closer economic relationship.

Assembling leading exporters and business organizations from around the country, the New Zealand International Business Forum launched Thursday with the goal of expanding NZ's international trade and investment. As their first priority, the group is seeking closer ties with Japan, NZ's third largest export destination and second largest source of imports. Though Japan currently has no interest in a free trade agreement and sees NZ as only its 43rd largest trading partner, the NZ group hopes that they can build a closer economic relationship.

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newzealand

New Zealand's Manufacturing Activity Increased in May

The Business NZ Performance of Manufacturing Index showed that manufacturing activity growth accelerated, as the index rose from 54.4 in April to 56.8 in May. A number over 50 shows that manufacturing activity is growing while a number under 50 means it is shrinking. Strong demand for NZ manufactured goods seems to have offset any damage the high value of the NZD could have done to local exporters.

The Business NZ Performance of Manufacturing Index showed that manufacturing activity growth accelerated, as the index rose from 54.4 in April to 56.8 in May. A number over 50 shows that manufacturing activity is growing while a number under 50 means it is shrinking. Strong demand for NZ manufactured goods seems to have offset any damage the high value of the NZD could have done to local exporters.

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newzealand

Retail Sales Growth Stalled in New Zealand

According to recent reports, retail sales growth stalled in the month of April, revealing how record-high interest rates and a rising unemployment rate are affecting consumer demand in New Zealand. Retail sales had been steadily increasing in the previous four months. A poll taken in May showed that New Zealand consumer confidence fell for a third straight month, a possible warning of further slowing in retail sales.

According to recent reports, retail sales growth stalled in the month of April, revealing how record-high interest rates and a rising unemployment rate are affecting consumer demand in New Zealand. Retail sales had been steadily increasing in the previous four months. A poll taken in May showed that New Zealand consumer confidence fell for a third straight month, a possible warning of further slowing in retail sales.

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newzealand

Japanese Investors Step Up Buying of New Zealand Dollar

After the NZ Reserve Bank's intervention in the foreign exchange market, Japanese investors took advantage of the NZD's slumping value, getting even more NZD for their JPY. Japanese investors have taken to purchasing the NZD in recent years because of New Zealand's high interest rates. While they may only get a deposit rate of 0.21 percent at Japan's Post Office Bank, investors can find an interest rate of over 7 percent with NZD uridashi bonds. Because of this large difference, the high demand for NZD should continue.

After the NZ Reserve Bank's intervention in the foreign exchange market, Japanese investors took advantage of the NZD's slumping value, getting even more NZD for their JPY. Japanese investors have taken to purchasing the NZD in recent years because of New Zealand's high interest rates. While they may only get a deposit rate of 0.21 percent at Japan's Post Office Bank, investors can find an interest rate of over 7 percent with NZD uridashi bonds. Because of this large difference, the high demand for NZD should continue.

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newzealand

New Zealand's Biggest Oil Field Set to Begin Production on June 30th

Weather permitting, New Zealand's Tui oil field will begin producing oil on June 30th. Expected to have a lifespan of ten years, Tui will produce up to 50,000 barrels of oil a day. Tui oil is of a higher quality than other crude oils and will be sold on the open market at a premium price. Though the oil field could have met New Zealand's needs for a time, it was not the answer to self-sufficiency.

Weather permitting, New Zealand's Tui oil field will begin producing oil on June 30th. Expected to have a lifespan of ten years, Tui will produce up to 50,000 barrels of oil a day. Tui oil is of a higher quality than other crude oils and will be sold on the open market at a premium price. Though the oil field could have met New Zealand's needs for a time, it was not the answer to self-sufficiency.

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newzealand

New Zealand Stocks Show Signs of Improvement

The NZSX-50 index closed at 4,205.52 Monday, up 22.07 points or 0.5 percent from its opening. Following a 1.2 percent drop on Friday and 1.4 percent drop on Thursday, the NZSX-50's increase on Monday came as good news to investors. One expert believes that the central bank's intervention in the foreign exchange market and the resulting easing in the currency may have been partially responsible for the improvement.

The NZSX-50 index closed at 4,205.52 Monday, up 22.07 points or 0.5 percent from its opening. Following a 1.2 percent drop on Friday and 1.4 percent drop on Thursday, the NZSX-50's increase on Monday came as good news to investors. One expert believes that the central bank's intervention in the foreign exchange market and the resulting easing in the currency may have been partially responsible for the improvement.

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newzealand

New Zealand Central Bank Intervenes in Foreign Exchange Market

After seeing the NZ dollar's value hit a 22-year high this past week, the central bank decided to influence the exchange rate by selling a large quantity of NZ dollars. Reserve Bank Governor Alan Bollard explained that the exceptional exchange rate was "unjustified in terms of the economic fundamentals." The sale has caused the NZD to slump and will hurt the yen carry trade.

After seeing the NZ dollar's value hit a 22-year high this past week, the central bank decided to influence the exchange rate by selling a large quantity of NZ dollars. Reserve Bank Governor Alan Bollard explained that the exceptional exchange rate was "unjustified in terms of the economic fundamentals." The sale has caused the NZD to slump and will hurt the yen carry trade.

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newzealand

Businesses Concerned about New Zealand's Hasty Emissions Policy Making

Several New Zealand business groups have expressed their disapproval of the government's timetable for designing an emissions-trading scheme. The timetable, which runs until the middle of next year, plans for a six-week emissions consultation. The business groups contend that such a brief consultation would provide incomplete information and that any policy based on this information would lack the stability businesses count on for future planning.

Several New Zealand business groups have expressed their disapproval of the government's timetable for designing an emissions-trading scheme. The timetable, which runs until the middle of next year, plans for a six-week emissions consultation. The business groups contend that such a brief consultation would provide incomplete information and that any policy based on this information would lack the stability businesses count on for future planning.

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newzealand

Russia Encourages New Zealand to Expand Investment in Far East

The Vice-Governor of Russia's Far Eastern Primorye Region met with New Zealand's ambassador to Russia in the regional capital, Vladivostok, in order to encourage further involvement in the region's 61 projects open to foreign investment. Some of the projects include the establishment of special economic and trade zones, as well as the construction of factories in the petroleum sector. Between 1995 and 2005, trade between the region and New Zealand declined, though in the first quarter of this year it has increased by 45 percent. The Vice-Governor emphasized the need for potential investors to know about the opportunities that exist in the region.

The Vice-Governor of Russia's Far Eastern Primorye Region met with New Zealand's ambassador to Russia in the regional capital, Vladivostok, in order to encourage further involvement in the region's 61 projects open to foreign investment. Some of the projects include the establishment of special economic and trade zones, as well as the construction of factories in the petroleum sector. Between 1995 and 2005, trade between the region and New Zealand declined, though in the first quarter of this year it has increased by 45 percent. The Vice-Governor emphasized the need for potential investors to know about the opportunities that exist in the region.

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newzealand

After Interest Rate Hike and Blocked Takeover, New Zealand Stocks Fall

Early Friday morning, the benchmark NZSX-50 had already fallen 0.8 percent. New Zealand stocks were continuing a downward slide in wake of yesterday's interest rate increase and the Commerce Commission's decision to block Woolworths and Foodstuffs, two supermarket groups, from making takeover bids on The Warehouse for fear of the anticompetitive effects that could result.

Early Friday morning, the benchmark NZSX-50 had already fallen 0.8 percent. New Zealand stocks were continuing a downward slide in wake of yesterday's interest rate increase and the Commerce Commission's decision to block Woolworths and Foodstuffs, two supermarket groups, from making takeover bids on The Warehouse for fear of the anticompetitive effects that could result.

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newzealand

New Zealand Real Estate Prices Keep Rising Despite Higher Interest Rates

A real estate company in Auckland reported that the average price of properties sold in May was 4.7 percent higher than the average price in April. This growth came in spite of recent actions taken by New Zealand's Reserve Bank to raise the Official Cash Rate.

A real estate company in Auckland reported that the average price of properties sold in May was 4.7 percent higher than the average price in April. This growth came in spite of recent actions taken by New Zealand's Reserve Bank to raise the Official Cash Rate.

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newzealand

New Zealand Reserve Bank Raises Interest Rates

Contrary to many predictions, Dr Allan Bollard of NZ's Reserve Bank announced today he was raising the already high Official Cash Rate from 7.75 percent to 8 percent. He cited a growing household demand as the main force behind inflation and hoped the higher interest rate would counter its effects. The increase will add to the NZD's momentum as its value against the USD hit a 25-year high earlier this week.

Contrary to many predictions, Dr Allan Bollard of NZ's Reserve Bank announced today he was raising the already high Official Cash Rate from 7.75 percent to 8 percent. He cited a growing household demand as the main force behind inflation and hoped the higher interest rate would counter its effects. The increase will add to the NZD's momentum as its value against the USD hit a 25-year high earlier this week.

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newzealand

New Zealand’s New Policy Set to Attract Rich Migrants and Investment

Millionaires wanting to reside in New Zealand can now gain an edge over other migrants by actively investing in local businesses. The new policy, set to start in November, replaces a similar 2005 policy that let the government keep USD 2 million of the migrant's funds for five years, just as a bank would. Immigration Minister David Cunliffe hopes the new policy requiring direct or indirect investment in local businesses will appeal to more investors and facilitate economic growth in New Zealand.

Millionaires wanting to reside in New Zealand can now gain an edge over other migrants by actively investing in local businesses. The new policy, set to start in November, replaces a similar 2005 policy that let the government keep USD 2 million of the migrant's funds for five years, just as a bank would. Immigration Minister David Cunliffe hopes the new policy requiring direct or indirect investment in local businesses will appeal to more investors and facilitate economic growth in New Zealand.

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newzealand

Drought Causing Problems in New Zealand

Drought conditions have worsened on New Zealand's east coast. Agriculture Minister Jim Anderton called it the worst drought in 125 years and warned farmers about the difficulties that lie ahead. Though the government has offered assistance to farmers, the drought could cause a severe shock to NZ's rural economy.

Drought conditions have worsened on New Zealand's east coast. Agriculture Minister Jim Anderton called it the worst drought in 125 years and warned farmers about the difficulties that lie ahead. Though the government has offered assistance to farmers, the drought could cause a severe shock to NZ's rural economy.

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newzealand

High Interest Rates Propel New Zealand Dollar's Growth

The announcement came today that the New Zealand dollar's value against the U.S. dollar reached USD 0.794, a 25-year high. Among other factors, experts cite New Zealand's high 7.75 percent interest rates as the source of the currency's growing demand. With the possibility of interest rates being raised later this week, watch for the New Zealand dollar's value to continue increasing.

The announcement came today that the New Zealand dollar's value against the U.S. dollar reached USD 0.794, a 25-year high. Among other factors, experts cite New Zealand's high 7.75 percent interest rates as the source of the currency's growing demand. With the possibility of interest rates being raised later this week, watch for the New Zealand dollar's value to continue increasing.

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newzealand

Yen Carry Trade Helps Australian, NZ Dollars Reach 15-Year Highs

After gaining for the fourth successive day, New Zealand's and Australia's Dollars reached a 15 year high against the Yen, as the currencies benefited as carry trades continue to remain in favor. Reacting to a 0.5 rise in Japan's Nikkei 225 Stock Average and the rebound of Chinese stocks, New Zealand currency rose to 91.73 yen (the highest since August 1990) and the Australia's Dollar traded as high as 101.99 yen, a level unattained since April 1992.

After gaining for the fourth successive day, New Zealand's and Australia's Dollars reached a 15 year high against the Yen, as the currencies benefited as carry trades continue to remain in favor. Reacting to a 0.5 rise in Japan's Nikkei 225 Stock Average and the rebound of Chinese stocks, New Zealand currency rose to 91.73 yen (the highest since August 1990) and the Australia's Dollar traded as high as 101.99 yen, a level unattained since April 1992.

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newzealand

Strong Gains Against the Yen for Aussie and Kiwi

The Australian and New Zealand dollars surged against the yen this week, with both currencies reaching 15-year comparative highs. Among the 16 most-traded currencies, New Zealand's kiwi was the week's biggest gainer against the yen, climbing 2 percent this week to 90.14 yen, while the Australian Aussie climbed 1.4 percent to 101.67 yen. Market analysts attribute the surge to the presence of excess global liquidity, which has boosted the carry trade, and an improving appetite for risk.

The Australian and New Zealand dollars surged against the yen this week, with both currencies reaching 15-year comparative highs. Among the 16 most-traded currencies, New Zealand's kiwi was the week's biggest gainer against the yen, climbing 2 percent this week to 90.14 yen, while the Australian Aussie climbed 1.4 percent to 101.67 yen. Market analysts attribute the surge to the presence of excess global liquidity, which has boosted the carry trade, and an improving appetite for risk.

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newzealand

NZ Communications Minister Rejects Telecom's Threat

New Zealand Communications Minister David Cunliffe has rebuffed Telecom's threat to discontinue investment in the nation's broadband network, which they claim they will do if they are forced to unbundle their services to allow for market competition. Cunliffe noted that other nations' governments have forced local loop unbundling and been met with similar threats, but the rush by the new competition to fill the investment void will force Telecom to keep up or be left behind.

New Zealand Communications Minister David Cunliffe has rebuffed Telecom's threat to discontinue investment in the nation's broadband network, which they claim they will do if they are forced to unbundle their services to allow for market competition. Cunliffe noted that other nations' governments have forced local loop unbundling and been met with similar threats, but the rush by the new competition to fill the investment void will force Telecom to keep up or be left behind.

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newzealand

Interest, Exchange Rates Hurting NZ Business Confidence

The latest New Zealand National Bank survey has shown that business confidence in New Zealand has taken a steep fall, driven down by high interest rates and an export-hindering exchange rate. 57 percent of survey respondents expect business conditions to further regress in the coming year, with only 9 percent expressing optimism. Furthermore, National Bank's chief economist has warned that the steep decline in business confidence may not prevent another interest rate hike next week.

The latest New Zealand National Bank survey has shown that business confidence in New Zealand has taken a steep fall, driven down by high interest rates and an export-hindering exchange rate. 57 percent of survey respondents expect business conditions to further regress in the coming year, with only 9 percent expressing optimism. Furthermore, National Bank's chief economist has warned that the steep decline in business confidence may not prevent another interest rate hike next week.

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newzealand

New Zealand Sharemarket Unaffected by Shanghai's Dive

Concerns regarding the New Zealand sharemarket's 0.7 percent slump yesterday, when Shanghai's stock market plunged 6 percent, have been alleviated by a 10.74 point gain to 4,290.37 on the NZSX-50 benchmark index. Trucking and Logistics firm Mainfreight continued its solid upward trend, jumping another 10c to 735c, as NZ investors took comfort in strong performance at opening on Wall Street.

Concerns regarding the New Zealand sharemarket's 0.7 percent slump yesterday, when Shanghai's stock market plunged 6 percent, have been alleviated by a 10.74 point gain to 4,290.37 on the NZSX-50 benchmark index. Trucking and Logistics firm Mainfreight continued its solid upward trend, jumping another 10c to 735c, as NZ investors took comfort in strong performance at opening on Wall Street.

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newzealand

NZ Government Ignores Telecom, Will Stick to 3-Way Split

According to New Zealand Communications Minister David Cunliffe, the government will move forward with its plan to divide Telecom into three separate units under the Telecommunications Amendment Act. Telecom has complained that dividing into separate units for network, wholesale, and retail will limit its ability to invest in infrastructure, but Cunliffe insists the move is what is best in developing a fundamentally sound regulatory framework. If the plan does go ahead, Telecom will invest only USD500 million of the USD1.5 billion needed to upgrade New Zealand's nationwide copper network.

According to New Zealand Communications Minister David Cunliffe, the government will move forward with its plan to divide Telecom into three separate units under the Telecommunications Amendment Act. Telecom has complained that dividing into separate units for network, wholesale, and retail will limit its ability to invest in infrastructure, but Cunliffe insists the move is what is best in developing a fundamentally sound regulatory framework. If the plan does go ahead, Telecom will invest only USD500 million of the USD1.5 billion needed to upgrade New Zealand's nationwide copper network.

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newzealand

APEC to Study State-Owned Oil Firms

Asia-Pacific Economic Cooperation (APEC) energy ministers plan to study the impact of state ownership of oil and gas companies among its 21-member body by focusing on their trade and investment. The study expects to form partnerships between state-controlled and private oil companies in order to efficiently develop reserves.

Asia-Pacific Economic Cooperation (APEC) energy ministers plan to study the impact of state ownership of oil and gas companies among its 21-member body by focusing on their trade and investment. The study expects to form partnerships between state-controlled and private oil companies in order to efficiently develop reserves.

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newzealand

NZX Pledges Immediate 4 Percent Kiwisaver Contribution

The New Zealand Exchange (NZX) has committed to contributing the maximum of 4 percent to its employees' Kiwisaver accounts when the program is initiated in 2 months. Though employers are only required to begin at 1 percent contributions and scale up to 4 percent over the following 4 years, the NZX claims to be a longtime supporter of the national savings framework and intends to make Kiwisaver as attractive as possible for its current and future employees.

The New Zealand Exchange (NZX) has committed to contributing the maximum of 4 percent to its employees' Kiwisaver accounts when the program is initiated in 2 months. Though employers are only required to begin at 1 percent contributions and scale up to 4 percent over the following 4 years, the NZX claims to be a longtime supporter of the national savings framework and intends to make Kiwisaver as attractive as possible for its current and future employees.

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newzealand

Increase Expected in New Zealand's Official Cash Rate

With economists calling March's Official Cash Rate (OCR) hike a nullified raise due to a slip in mortgage rates, it is expected that the Reserve Bank will once again raise the OCR this coming September. The current surge in retail spending and next year's dairy farmer payout, which is expected to boost gross domestic product by 1 percent, provide additional, compelling cases for an OCR raise.

With economists calling March's Official Cash Rate (OCR) hike a nullified raise due to a slip in mortgage rates, it is expected that the Reserve Bank will once again raise the OCR this coming September. The current surge in retail spending and next year's dairy farmer payout, which is expected to boost gross domestic product by 1 percent, provide additional, compelling cases for an OCR raise.

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newzealand

New Zealand to Loosen Export Quotas on Dairy Exports

The New Zealand government will introduce a bill amending the Dairy Restructuring Act next month, which will effectively end Fonterra's monopoly on quota-restricted dairy exports. The government aims to altogether remove dairy export restrictions on a case-by-case basis by the end of 2010.

The New Zealand government will introduce a bill amending the Dairy Restructuring Act next month, which will effectively end Fonterra's monopoly on quota-restricted dairy exports. The government aims to altogether remove dairy export restrictions on a case-by-case basis by the end of 2010.

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newzealand

New Zealand Follows British Lead on Telecom Break-Up

British telecommunications giant BT's long-upheld monopoly-regulation policies will form the basis of the New Zealand government's plan to split up domestic giant Telecom. BT supports the government in its plan, which would see Telecom divided into separate units for retail, wholesale, and network, similar to how BT's network unit was split off in a 2005 agreement with British regulators to become Openreach. While the initiative would create truer telecommunications competition, expectations are that it would do little to speed up local telecommunications delivery.

British telecommunications giant BT's long-upheld monopoly-regulation policies will form the basis of the New Zealand government's plan to split up domestic giant Telecom. BT supports the government in its plan, which would see Telecom divided into separate units for retail, wholesale, and network, similar to how BT's network unit was split off in a 2005 agreement with British regulators to become Openreach. While the initiative would create truer telecommunications competition, expectations are that it would do little to speed up local telecommunications delivery.

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newzealand

Formica Acquisition Sends New Zealand Stocks to Record High

New Zealand's benchmark NZX-50 index increased by 0.5 percent to 4,312.58 points on Wednesday, a record high. The jump in value followed Fletcher Building's announcement of its agreement to purchase US-based Formica Group for $700 million. An ABN AMRO adviser expects that the market may not have peaked just yet, and that Fletcher Building's stock could top NZ$13 as trading resumes on Thursday.

New Zealand's benchmark NZX-50 index increased by 0.5 percent to 4,312.58 points on Wednesday, a record high. The jump in value followed Fletcher Building's announcement of its agreement to purchase US-based Formica Group for $700 million. An ABN AMRO adviser expects that the market may not have peaked just yet, and that Fletcher Building's stock could top NZ$13 as trading resumes on Thursday.

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newzealand

Kiwisaver Garners Mixed Reactions Amongst New Zealanders

The New Zealand government's new retirement savings plan, Kiwisaver, is garnering mixed reactions amongst the workers it is designed to target. The government, intent upon getting people to save money, is heavily targeting employees in their thirties who have a variety of other options for their money. A major area of dispute lies in investment properties, as those with investments in homes and other properties are very hesitant to tie up their funds in an account that cannot be touched until they turn 65.

The New Zealand government's new retirement savings plan, Kiwisaver, is garnering mixed reactions amongst the workers it is designed to target. The government, intent upon getting people to save money, is heavily targeting employees in their thirties who have a variety of other options for their money. A major area of dispute lies in investment properties, as those with investments in homes and other properties are very hesitant to tie up their funds in an account that cannot be touched until they turn 65.

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newzealand

Corporate Tax Rate Cut Announced in New Zealand

Aiming to reduce inflationary pressure and minimize dependence on foreign lenders, finance minister Michael Cullen announced a slashing of the corporate tax rate from 33% to 30%. In addition, Cullen introduced incentives to boost domestic saving and investing. Cullen hopes the measures will allow New Zealand, which is highly dependent on foreign capital, to become more economically independent.

Aiming to reduce inflationary pressure and minimize dependence on foreign lenders, finance minister Michael Cullen announced a slashing of the corporate tax rate from 33% to 30%. In addition, Cullen introduced incentives to boost domestic saving and investing. Cullen hopes the measures will allow New Zealand, which is highly dependent on foreign capital, to become more economically independent.

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newzealand

NZ Dollar Falls as US Economy Outperforms Expectations

Speculation that the US economy is exceeding expectations, making an interest rate cut less likely, has resulted in a 0.6% fall in the value of the NZ dollar against the US dollar. Unexpected growth in US housing and industrial production, coupled with Japanese Trade Minister Akira Amari's comments about a reduction in the impact of the carry trade, lured investors back to the US dollar. The NZ dollar remains as the best performing major currency over the past 12 months.

Speculation that the US economy is exceeding expectations, making an interest rate cut less likely, has resulted in a 0.6% fall in the value of the NZ dollar against the US dollar. Unexpected growth in US housing and industrial production, coupled with Japanese Trade Minister Akira Amari's comments about a reduction in the impact of the carry trade, lured investors back to the US dollar. The NZ dollar remains as the best performing major currency over the past 12 months.

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newzealand

NZ Finance Minister Will Unveil Budget Before Election

New Zealand's Finance Minister Michael Cullen has a number of incentives to avoid unveiling his budget plan until just before the 2008 election. A delay in government spending and tax cuts will not only avoid sharp appreciation of the NZ dollar and a stall in economic growth, but will allow Cullen the scope to spend even more when, conveniently, the 2008 election is right around the corner. Cullen's Labour Party currently holds 36% support in public opinion polls, trailing the main opponent National Party by 12%.

New Zealand's Finance Minister Michael Cullen has a number of incentives to avoid unveiling his budget plan until just before the 2008 election. A delay in government spending and tax cuts will not only avoid sharp appreciation of the NZ dollar and a stall in economic growth, but will allow Cullen the scope to spend even more when, conveniently, the 2008 election is right around the corner. Cullen's Labour Party currently holds 36% support in public opinion polls, trailing the main opponent National Party by 12%.

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newzealand

New Zealand Eyes "Cap and Trade" Emissions Reduction System

Hoping to comply with its ratification of the Kyoto Protocol by next year, New Zealand is close to an agreement on a domestic trading system aimed at a drastic reduction in greenhouse gas emissions. The system would impose a cap on emissions and allow companies that operate under the cap to trade their surplus permits to those operating in excess. By targeting major emissions sectors such as transportation, energy, and agriculture, New Zealand hopes to become one of the first nations worldwide to achieve full carbon neutrality.

Hoping to comply with its ratification of the Kyoto Protocol by next year, New Zealand is close to an agreement on a domestic trading system aimed at a drastic reduction in greenhouse gas emissions. The system would impose a cap on emissions and allow companies that operate under the cap to trade their surplus permits to those operating in excess. By targeting major emissions sectors such as transportation, energy, and agriculture, New Zealand hopes to become one of the first nations worldwide to achieve full carbon neutrality.

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newzealand

Concerns in New Zealand about OECD Report

In their recently published report, the Organization for Economic Co-operation and Development (OECD) ranks New Zealand close to the bottom of the list of 30 countries compared. More specifically, living standards, productivity and savings are areas of concern in New Zealand, whereas the country is part of the top countries in terms of policy and regulatory framework.

In their recently published report, the Organization for Economic Co-operation and Development (OECD) ranks New Zealand close to the bottom of the list of 30 countries compared. More specifically, living standards, productivity and savings are areas of concern in New Zealand, whereas the country is part of the top countries in terms of policy and regulatory framework.

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newzealand

New Zealand: Small Trade Surplus in March

The Statistics of New Zealand said the country got a $61 million trade surplus in March. Compared with a $7.01 billion trade deficit in March 2006, the trade deficit has improved to $5.78 billion. The exports and imports respectively rose to $3.33 billion and $3.27 billion in March 2007.

The Statistics of New Zealand said the country got a $61 million trade surplus in March. Compared with a $7.01 billion trade deficit in March 2006, the trade deficit has improved to $5.78 billion. The exports and imports respectively rose to $3.33 billion and $3.27 billion in March 2007.

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newzealand

Study Free Trade Agreement between India and New Zealand

Both countries' Ministers Goff and Nath have agreed on a study about the implications of a free trade agreement on both countries. Further development of this issue is expected to take place in this year's September at a Joint Trade Commission meeting.

Both countries' Ministers Goff and Nath have agreed on a study about the implications of a free trade agreement on both countries. Further development of this issue is expected to take place in this year's September at a Joint Trade Commission meeting.

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newzealand

Single Market Needs Kiwi Firms to be Less Risk-Averse

The creation of a single market for Australia and New Zealand will make New Zealand gain more benefit than Australia due to its smaller economy. However, New Zealand's businesspeople's risk-aversion to investment is not good news for the single market, but hopes are to encourage New Zealand's businesses to actually get out and export.

The creation of a single market for Australia and New Zealand will make New Zealand gain more benefit than Australia due to its smaller economy. However, New Zealand's businesspeople's risk-aversion to investment is not good news for the single market, but hopes are to encourage New Zealand's businesses to actually get out and export.

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newzealand

New Zealand Looks to Continue Gains on Yields

The New Zealand dollar is currently in its sixth week of gains, as investors continue to get drawn into its higher yielding assets on the expectation that its interest rate of 7.5% will remain the same. Traders, upon seeing these high rates, borrow cheaply in low yielding currencies to invest in countries where they can get more back.

The New Zealand dollar is currently in its sixth week of gains, as investors continue to get drawn into its higher yielding assets on the expectation that its interest rate of 7.5% will remain the same. Traders, upon seeing these high rates, borrow cheaply in low yielding currencies to invest in countries where they can get more back.

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newzealand

Easy Money will Disappear, Says Bollard

Exuberant borrowers need to be aware that easy money floating around the world will not last forever, Reserve Bank Governor Alan Bollard warned yesterday. A glut of savings in East Asian and oil-exporting countries have driven very strong growth in the flows of money around the world. The result in New Zealand's case is downward pressure on interest rates and upward pressure on the dollar.

Exuberant borrowers need to be aware that easy money floating around the world will not last forever, Reserve Bank Governor Alan Bollard warned yesterday. A glut of savings in East Asian and oil-exporting countries have driven very strong growth in the flows of money around the world. The result in New Zealand's case is downward pressure on interest rates and upward pressure on the dollar.

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newzealand

New Zealand's Retail Heats Up

New Zealand's retail sector grew a seasonally adjusted 0.5% in January, three times the expected increase. This has led many to speculate that the central bank will raise the already record high interest rates beyond their current 7.5% The high interest rates have inflated the value of the currency and thus put exporters in a bind. The government is exploring ways of cooling the economic growth without having to raise the interest ratesfo a second time this month.

New Zealand's retail sector grew a seasonally adjusted 0.5% in January, three times the expected increase. This has led many to speculate that the central bank will raise the already record high interest rates beyond their current 7.5% The high interest rates have inflated the value of the currency and thus put exporters in a bind. The government is exploring ways of cooling the economic growth without having to raise the interest ratesfo a second time this month.

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newzealand

Record Rate Irks Business Leaders

Business leaders in New Zealand are worried that recent interest rate hikes will drive up the local currency and derail growth. On Thursday, central bank governor Alan Bollard raised the official cash rate to a record 7.5% to cool inflation but business leaders are worried they'll be forced to bear too much of the load from the increases. The high rate, the second highest among nations with a top credit rating, is expected to increase carry trading and increase further the value of the NZ dollar.

Business leaders in New Zealand are worried that recent interest rate hikes will drive up the local currency and derail growth. On Thursday, central bank governor Alan Bollard raised the official cash rate to a record 7.5% to cool inflation but business leaders are worried they'll be forced to bear too much of the load from the increases. The high rate, the second highest among nations with a top credit rating, is expected to increase carry trading and increase further the value of the NZ dollar.

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newzealand

New Zealand Raises Interest Rate

The New Zealand Central Bank rose the benchmark interest rate to 7.5% on Wednesday, a quarter of a point increase. The move was made to cool a surging economy amid fears of high inflation. Though the Central Bank hinted at more increases to come, the private sector is betting against it. New Zealand's dollar fell almost a cent against the US$ upon the announcement.

The New Zealand Central Bank rose the benchmark interest rate to 7.5% on Wednesday, a quarter of a point increase. The move was made to cool a surging economy amid fears of high inflation. Though the Central Bank hinted at more increases to come, the private sector is betting against it. New Zealand's dollar fell almost a cent against the US$ upon the announcement.

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newzealand

Australian Shares See Biggest Jump in 4 Years

After a 5-day slump follwoing one of the worst days in the last 5 years, Australian stocks surged on Tuesday. The S&P/ASX 200 Index jumped 2.1%, the largest one-day jump since 2003. The rebound was led by BHP Billiton and Rio Tinto which both lost almost a tenth of their market values last week. New Zealand's NZX 50 fell 0.1% on the same day.

After a 5-day slump follwoing one of the worst days in the last 5 years, Australian stocks surged on Tuesday. The S&P/ASX 200 Index jumped 2.1%, the largest one-day jump since 2003. The rebound was led by BHP Billiton and Rio Tinto which both lost almost a tenth of their market values last week. New Zealand's NZX 50 fell 0.1% on the same day.

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newzealand

APEC's Free Trade Area Woes

The Asia Pacific Economic Cooperation (APEC) forum held in Hanoi from November 17 to 19 resulted in renewed discussions on trade. APEC leaders drafted a statement on the WTO's Doha Development Agenda and the Hanoi Action Plan. The leaders agreed on the need to continue the stalled round of Doha trade negotiations. However, they refuse to empower negotiators to execute this goal until all members are better prepared for liberalization.

The longer APEC nations put off negotiating a multilateral agreement, the more difficulties they are likely to face. It will be considerably harder to catch up with developed nations and trade blocs such as the EU. APEC will also be losing potential profits. To prevent unequal economic gains, protection of smaller, vulnerable nations is necessary. However, all will lose if Asian economies continue to interact with one another as inefficiently as they currently do. If these nations are going to remain internationally competitive, they must consolidate economic power.

The slow pace of progress invites criticism. Is APEC really as inefficient as its detractors claim? APEC allows smaller nations to balance against stronger players such China and the US, while still cooperating with them for economic gain. With the kinds of obstacles that the leaders face, some wariness is justified. A free trade area only has potential if developing countries in APEC take necessary precautions. They must be strong enough to withstand fluctuations in international markets before they open their economies to free trade. Capacity-building measures and the flexibility for leaders in determining national trade policies will prevent an agreement from benefiting members unequally.

APEC nations should not delay too long, or they risk lagging behind economically. A free trade agreement between APEC nations would facilitate trade within the bloc and internationally. These countries already control nearly half the world's trade and 56 percent of global gross domestic product. WTO negotiations had come to a halt because of disagreement on subsidies. In Hanoi, the US and Japan did not complete unfinished discussions on reductions in agricultural subsidies. China and Australia also have yet to consider further tariff cuts on industrial goods. The conference, however, did open debate for the first time since Doha and concessions are likely to follow. The Hanoi Action Plan outlines details of a multinational agreement. The agreement will streamline the negotiation process and replace 50 bilateral treaties. It proposes that members institute measures which will prepare economies for trade liberalization. The Plan also identifies corruption as an obstacle to growth. The leaders also focused on energy security. Development of renewable technologies and cleaner use of fossil fuels are among the issues of concern. The difficulties in WTO negotiations have made leaders wary.

The chances for success may be higher for a regional trade area. The EU for instance has proved more successful, but APEC will face different challenges. Singapore's Prime Minister Lee Hsien Loong thinks that the EU trade bloc was easier to create because of greater political similarities between nations. APEC includes some of the world's richest and poorest countries. The disparity in economic backgrounds also makes it difficult to find common ground. The conference agenda included discussions of pandemic diseases such as AIDS and disaster response plans. Vietnamese President Nguyen Minh Triet issued a statement on North Korea's nuclear arsenal. Some are critical of the meeting's success since no declaration was issued. APEC does provide a forum for world leaders to discuss pressing concerns, but international security is not the organization's primary focus. Those types of discussions would diffuse its main purpose which is to discuss economic development and trade.

APEC should begin negotiations much sooner than it plans. It can simultaneously help its smaller members strengthen their economies. The bloc could integrate weaker economies, seeking to strengthen vulnerable industries, at a slower pace. Other necessary measures include improving infrastructure and reforming laws. Meanwhile, nations can continue to sign bilateral or even smaller multilateral agreements. They can also provide aid to some of the lesser developing nations. APEC should also begin to develop enforcement procedures. As a trade bloc, the organization could later leverage its influence to more effectively address security and health issues.

 

The Asia Pacific Economic Cooperation (APEC) forum held in Hanoi from November 17 to 19 resulted in renewed discussions on trade. APEC leaders drafted a statement on the WTO's Doha Development Agenda and the Hanoi Action Plan. The leaders agreed on the need to continue the stalled round of Doha trade negotiations. However, they refuse to empower negotiators to execute this goal until all members are better prepared for liberalization.

The longer APEC nations put off negotiating a multilateral agreement, the more difficulties they are likely to face. It will be considerably harder to catch up with developed nations and trade blocs such as the EU. APEC will also be losing potential profits. To prevent unequal economic gains, protection of smaller, vulnerable nations is necessary. However, all will lose if Asian economies continue to interact with one another as inefficiently as they currently do. If these nations are going to remain internationally competitive, they must consolidate economic power.

The slow pace of progress invites criticism. Is APEC really as inefficient as its detractors claim? APEC allows smaller nations to balance against stronger players such China and the US, while still cooperating with them for economic gain. With the kinds of obstacles that the leaders face, some wariness is justified. A free trade area only has potential if developing countries in APEC take necessary precautions. They must be strong enough to withstand fluctuations in international markets before they open their economies to free trade. Capacity-building measures and the flexibility for leaders in determining national trade policies will prevent an agreement from benefiting members unequally.

APEC nations should not delay too long, or they risk lagging behind economically. A free trade agreement between APEC nations would facilitate trade within the bloc and internationally. These countries already control nearly half the world's trade and 56 percent of global gross domestic product. WTO negotiations had come to a halt because of disagreement on subsidies. In Hanoi, the US and Japan did not complete unfinished discussions on reductions in agricultural subsidies. China and Australia also have yet to consider further tariff cuts on industrial goods. The conference, however, did open debate for the first time since Doha and concessions are likely to follow. The Hanoi Action Plan outlines details of a multinational agreement. The agreement will streamline the negotiation process and replace 50 bilateral treaties. It proposes that members institute measures which will prepare economies for trade liberalization. The Plan also identifies corruption as an obstacle to growth. The leaders also focused on energy security. Development of renewable technologies and cleaner use of fossil fuels are among the issues of concern. The difficulties in WTO negotiations have made leaders wary.

The chances for success may be higher for a regional trade area. The EU for instance has proved more successful, but APEC will face different challenges. Singapore's Prime Minister Lee Hsien Loong thinks that the EU trade bloc was easier to create because of greater political similarities between nations. APEC includes some of the world's richest and poorest countries. The disparity in economic backgrounds also makes it difficult to find common ground. The conference agenda included discussions of pandemic diseases such as AIDS and disaster response plans. Vietnamese President Nguyen Minh Triet issued a statement on North Korea's nuclear arsenal. Some are critical of the meeting's success since no declaration was issued. APEC does provide a forum for world leaders to discuss pressing concerns, but international security is not the organization's primary focus. Those types of discussions would diffuse its main purpose which is to discuss economic development and trade.

APEC should begin negotiations much sooner than it plans. It can simultaneously help its smaller members strengthen their economies. The bloc could integrate weaker economies, seeking to strengthen vulnerable industries, at a slower pace. Other necessary measures include improving infrastructure and reforming laws. Meanwhile, nations can continue to sign bilateral or even smaller multilateral agreements. They can also provide aid to some of the lesser developing nations. APEC should also begin to develop enforcement procedures. As a trade bloc, the organization could later leverage its influence to more effectively address security and health issues.

 

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newzealand

Russian Foreign Reserves Revealed

The Russian Central Bank disclosed the exact structure of its foreign currency reserves on its website on Tuesday. It keeps 51.5% of its reserves in US dollars, 38.6% in Euros, and the rest in a combination of pounds, yen, and francs. The bank is interested in further diversifying its reserves, which hit $311.2 billion in February, into the Swiss franc and Canadian, Australian, and New Zealand dollars.

The Russian Central Bank disclosed the exact structure of its foreign currency reserves on its website on Tuesday. It keeps 51.5% of its reserves in US dollars, 38.6% in Euros, and the rest in a combination of pounds, yen, and francs. The bank is interested in further diversifying its reserves, which hit $311.2 billion in February, into the Swiss franc and Canadian, Australian, and New Zealand dollars.

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newzealand

Asian Markets Fall Again After Rebound

Chinese stocks fell again after rebounding Wednesday from their biggest drop in a decade. Elsewhere, Japan, Taiwan, Hong Kong, Singapore, Australia, and New Zealand markets were all down. The Philippines, India, Pakistan, Thailand and Indonesia indices were up, with the Philippines' rise as the region's biggest gain of the day after seeing Asia's biggest drop Wednesday at 7.9 percent.

Chinese stocks fell again after rebounding Wednesday from their biggest drop in a decade. Elsewhere, Japan, Taiwan, Hong Kong, Singapore, Australia, and New Zealand markets were all down. The Philippines, India, Pakistan, Thailand and Indonesia indices were up, with the Philippines' rise as the region's biggest gain of the day after seeing Asia's biggest drop Wednesday at 7.9 percent.

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newzealand

Bank Lending Keeps NZ Market Hot

New Zealand's banks added more pressure on the housing market and inflation by lending out $4.6 billion more in the fourth quarter of 2006 than in the previous year. The banks offered aggressive rates in an effort to get homeowners to refinance two-year mortgages established during the lending binge of 2004. This goes against the Reserve Bank's recent efforts to slow inflation through raising interest rates. The Reserve Bank is expected to raise the official cash rate next Thursday to cool the housing market.

New Zealand's banks added more pressure on the housing market and inflation by lending out $4.6 billion more in the fourth quarter of 2006 than in the previous year. The banks offered aggressive rates in an effort to get homeowners to refinance two-year mortgages established during the lending binge of 2004. This goes against the Reserve Bank's recent efforts to slow inflation through raising interest rates. The Reserve Bank is expected to raise the official cash rate next Thursday to cool the housing market.

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newzealand

The Asian Stock Markets: Boom or Bust?

The year 2006 for the Asian stock markets saw unprecedented gains of the kind rarely witnessed. The stock markets of China, Hong Kong, Singapore, India, Indonesia, Malaysia, New Zealand and Vietnam hit record highs while Japan, South Korea and Taiwan also posted muted though respectable gains. With this state of affairs, it was perhaps unsurprising that global investors flocked to the Asian markets just hoping to reap some of the big rewards. However, some people feel that the amazing growth of these stock markets needs to be tempered with a healthy dose of caution since the nightmarish memories of the 1997-meltdown in the region's equity markets just refuse to die out. This has raised a few doubts among analysts studying the region and has prompted many to be skeptical about the potential growth prospects of these markets in the future.

A Year of Skyrocketing Growth

During the last few years, many stock markets in Asia have been rising rapidly. In China, during 2006, stocks in the home market sizzled, at long last reflecting the country's gathering economic might after years of paltry returns. The MSCI China A, an index of domestically listed stocks, soared 128 percent.1 The scenario was also quite rosy in India when the Bombay stock exchange rocketed another 46.7 percent in 2006.2 Elsewhere in the region, markets bolted ahead on sound economic fundamentals, with markets in Indonesia, the Philippines and Singapore returning 55.3 percent, 42.3 percent and 27.2 percent, respectively.3 Even the so-called stragglers, Taiwan and Malaysia, clocked returns of 19.5 percent and 21.8 percent in 2006, a reflection of just how turbo-charged the growth trend has been. The only disappointments were South Korea which rose by a modest 4 percent last year and Japan, which, contrary to expectations, managed to end the year up only 6.9 percent. This is creditable given that these enormous returns occurred despite a plunge in the region's stock markets during May and June, when foreign investors were spooked by the prospect of rising interest rates and fled riskier assets.4 With massive investor confidence and a huge amount of global liquidity, it is no wonder that there has been a mad rush by global investors to invest in the region.

Factors Driving the Growth

Many changes have transformed the domestic economies of the Asian region radically over the last decade. Many market watchers believe that these emerging economies are on a much surer financial footing than in the past. Many have pared their deficits, increased their reserves and reduced their dependence on exports to the US, thereby decreasing their vulnerability to a potential US economic slowdown.5 Some investors believe that these countries are finally beginning to decouple from the US economy either by trading more among themselves or relying more on local consumer demand.6 Skeptics discount this hypothesis and consider it too early to draw conclusions. A slow US economy could still trigger a region-wide recession in the near future.

Impediments to Sustainable Growth

Despite all the hype and hoopla surrounding the Asian economies and their booming stock markets, the future growth outlook for these economies is strangely benign. Experts believe that even though Asia is presently more resilient to a US slowdown than in the past, a drastic slowdown to the US economy might seriously upset the status quo. Currently, investor sentiment remains strong as evidenced by several positive factors like lower international oil prices and a recovery staged by Wall Street after the mid-year slump in 2006. However, financial markets might feel the impact if institutional investors in the US and Europe become more risk-averse, or if the global liquidity that has been funding portfolio investment in Asia dries up.7 The region is still highly export-dependent and vulnerable to developments in the US. In fact, many of the goods traded within Asia are still used as inputs for products that are ultimately sold to the US and other OECD economies.8 These emerging economies are currently characterized by weak inflation levels, strong growth, solvent governments and a lesser degree of dependence on foreign money to finance their investment requirements.9 Although the domestic economies in Asia seem to be in impressive shape, they remain vulnerable to disruption if investment-positive factors begin to wane. Potential investors should exercise a significant degree of caution and restraint while deciding whether or not to invest their money in Asia's growing bourses.

 

This article was originally published in Asia Economic Institute Vol. 1 No. 5.

 

Tell us what you think about this issue by adding a comment.

The year 2006 for the Asian stock markets saw unprecedented gains of the kind rarely witnessed. The stock markets of China, Hong Kong, Singapore, India, Indonesia, Malaysia, New Zealand and Vietnam hit record highs while Japan, South Korea and Taiwan also posted muted though respectable gains. With this state of affairs, it was perhaps unsurprising that global investors flocked to the Asian markets just hoping to reap some of the big rewards. However, some people feel that the amazing growth of these stock markets needs to be tempered with a healthy dose of caution since the nightmarish memories of the 1997-meltdown in the region's equity markets just refuse to die out. This has raised a few doubts among analysts studying the region and has prompted many to be skeptical about the potential growth prospects of these markets in the future.

A Year of Skyrocketing Growth

During the last few years, many stock markets in Asia have been rising rapidly. In China, during 2006, stocks in the home market sizzled, at long last reflecting the country's gathering economic might after years of paltry returns. The MSCI China A, an index of domestically listed stocks, soared 128 percent.1 The scenario was also quite rosy in India when the Bombay stock exchange rocketed another 46.7 percent in 2006.2 Elsewhere in the region, markets bolted ahead on sound economic fundamentals, with markets in Indonesia, the Philippines and Singapore returning 55.3 percent, 42.3 percent and 27.2 percent, respectively.3 Even the so-called stragglers, Taiwan and Malaysia, clocked returns of 19.5 percent and 21.8 percent in 2006, a reflection of just how turbo-charged the growth trend has been. The only disappointments were South Korea which rose by a modest 4 percent last year and Japan, which, contrary to expectations, managed to end the year up only 6.9 percent. This is creditable given that these enormous returns occurred despite a plunge in the region's stock markets during May and June, when foreign investors were spooked by the prospect of rising interest rates and fled riskier assets.4 With massive investor confidence and a huge amount of global liquidity, it is no wonder that there has been a mad rush by global investors to invest in the region.

Factors Driving the Growth

Many changes have transformed the domestic economies of the Asian region radically over the last decade. Many market watchers believe that these emerging economies are on a much surer financial footing than in the past. Many have pared their deficits, increased their reserves and reduced their dependence on exports to the US, thereby decreasing their vulnerability to a potential US economic slowdown.5 Some investors believe that these countries are finally beginning to decouple from the US economy either by trading more among themselves or relying more on local consumer demand.6 Skeptics discount this hypothesis and consider it too early to draw conclusions. A slow US economy could still trigger a region-wide recession in the near future.

Impediments to Sustainable Growth

Despite all the hype and hoopla surrounding the Asian economies and their booming stock markets, the future growth outlook for these economies is strangely benign. Experts believe that even though Asia is presently more resilient to a US slowdown than in the past, a drastic slowdown to the US economy might seriously upset the status quo. Currently, investor sentiment remains strong as evidenced by several positive factors like lower international oil prices and a recovery staged by Wall Street after the mid-year slump in 2006. However, financial markets might feel the impact if institutional investors in the US and Europe become more risk-averse, or if the global liquidity that has been funding portfolio investment in Asia dries up.7 The region is still highly export-dependent and vulnerable to developments in the US. In fact, many of the goods traded within Asia are still used as inputs for products that are ultimately sold to the US and other OECD economies.8 These emerging economies are currently characterized by weak inflation levels, strong growth, solvent governments and a lesser degree of dependence on foreign money to finance their investment requirements.9 Although the domestic economies in Asia seem to be in impressive shape, they remain vulnerable to disruption if investment-positive factors begin to wane. Potential investors should exercise a significant degree of caution and restraint while deciding whether or not to invest their money in Asia's growing bourses.

 

This article was originally published in Asia Economic Institute Vol. 1 No. 5.

 

Tell us what you think about this issue by adding a comment.

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newzealand

NZ's Interest Rate Gap May Fall

New Zealand's dollar may fall soon if Japan's Central Bank does as expected and raises its benchmark interest rate. The increase would lessen the gap between the interest rates of the two countries, making investment in New Zealand less attractive and thus lowering the value of its currency, the kiwi. It is not yet a foregone conclusion, with 52% of analysts believing that Japan will not raise its rates.

New Zealand's dollar may fall soon if Japan's Central Bank does as expected and raises its benchmark interest rate. The increase would lessen the gap between the interest rates of the two countries, making investment in New Zealand less attractive and thus lowering the value of its currency, the kiwi. It is not yet a foregone conclusion, with 52% of analysts believing that Japan will not raise its rates.

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newzealand

Manufacturing Output Up in New Zealand

Manufacturing output was up in January despite rising currency value that could dampens exports. The manufacturing index was at 56 in January, showing positive growth in production, employment, new orders, finished stock and deliveries. Most manufacturers have expressed a negative outlook for the immediate future because of the rising kiwi dollar, which climbed 5.1% in the past three months.

Manufacturing output was up in January despite rising currency value that could dampens exports. The manufacturing index was at 56 in January, showing positive growth in production, employment, new orders, finished stock and deliveries. Most manufacturers have expressed a negative outlook for the immediate future because of the rising kiwi dollar, which climbed 5.1% in the past three months.

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newzealand

No Tax Cuts on Horizon for New Zealand

Finance Minister Michael Cullen announced that there were no current plans for either rumored tax cuts or inflation-indexing adjustments to the tax thresholds. Cullen said that there was no room in the budget for the cuts because actual inflation has been higher than expected inflation and there is already a $350 million shortfall due to the removal of a carbon tax. Any tax cuts that could be made at this point would be mere pennies a week to most taxpayers.

Finance Minister Michael Cullen announced that there were no current plans for either rumored tax cuts or inflation-indexing adjustments to the tax thresholds. Cullen said that there was no room in the budget for the cuts because actual inflation has been higher than expected inflation and there is already a $350 million shortfall due to the removal of a carbon tax. Any tax cuts that could be made at this point would be mere pennies a week to most taxpayers.

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newzealand

An Empirical Study of Asian Stock Volatility Using Stochastic Volatility Factor Model: Factor Analysis and Forecasting

This paper is an empirical study of Asian stock volatility using stochastic volatility factor (SVF) model of Cipollini and Kapetanios (2005). We adopt their approach to carry out factor analysis and to forecast volatility. Our results show some Asian factors exhibit long memory that is in line with existing empirical findings in financial volatility. However, their local-factor SVF model is not powerful enough in forecasting Asian volatility. This has led us to propose an extension to a multi-factor SVF model. We also discuss how to produce forecast using this multi-factor model.

This paper is an empirical study of Asian stock volatility using stochastic volatility factor (SVF) model of Cipollini and Kapetanios (2005). We adopt their approach to carry out factor analysis and to forecast volatility. Our results show some Asian factors exhibit long memory that is in line with existing empirical findings in financial volatility. However, their local-factor SVF model is not powerful enough in forecasting Asian volatility. This has led us to propose an extension to a multi-factor SVF model. We also discuss how to produce forecast using this multi-factor model.

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newzealand

Proposed Rules of Origin in Emerging Asia-Pacific Preferential Trade Agreements: Will PTAs Promote Trade and Development?

World trade is increasingly being dominated by preferential trade agreements that have taken precedence over multilateral trade negotiations. Within Asia and the Pacific an explosion of bilateral deals is taking place that seems likely to produce a tangle of hub-spoke trade blocs centered on major Asian or Pacific countries.

World trade is increasingly being dominated by preferential trade agreements that have taken precedence over multilateral trade negotiations. Within Asia and the Pacific an explosion of bilateral deals is taking place that seems likely to produce a tangle of hub-spoke trade blocs centered on major Asian or Pacific countries.

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newzealand

Do inflation targeting central banks behave asymmetrically? Evidence from Australia and New Zealand

This paper tests the standard quadratic approximation to central bank preferences on data from Australia and New Zealand, two of the earliest explicit inflation targeting countries. The standard linear-quadratic monetary policy model assumes central bank preferences over key macroeconomic variables, such as inflation and output, can be usefully approximated by a quadratic function. This approximation implies that a deviation from a target is considered to be equally costly irrespective of whether the deviation is positive or negative. Combined with a linear model of the economy, quadratic preferences are useful because they yield a first order condition that implies a linear interest rate reaction function. This paper relaxes the assumption of quadratic preferences by allowing central banks to regard the costs associated with positive and negative output gaps differently. Our models also test for the possibility that positive and negative deviations of inflation from target to be treated differently. During the inflation targeting period in both countries, evidence suggests that we cannot reject quadratic preferences over inflation deviations (from target). We cannot reject that New Zealand's preferences regarding deviations of output from trend are quadratic, but Australia's behaviour does not appear to be consistent with quadratic preferences. Instead, the preferences of the Reserve Bank of Australia appear to be more accurately modelled with an asymmetric loss such that the Reserve Bank of Australia views negative output gaps as more costly than positive output gaps.

This paper tests the standard quadratic approximation to central bank preferences on data from Australia and New Zealand, two of the earliest explicit inflation targeting countries. The standard linear-quadratic monetary policy model assumes central bank preferences over key macroeconomic variables, such as inflation and output, can be usefully approximated by a quadratic function. This approximation implies that a deviation from a target is considered to be equally costly irrespective of whether the deviation is positive or negative. Combined with a linear model of the economy, quadratic preferences are useful because they yield a first order condition that implies a linear interest rate reaction function. This paper relaxes the assumption of quadratic preferences by allowing central banks to regard the costs associated with positive and negative output gaps differently. Our models also test for the possibility that positive and negative deviations of inflation from target to be treated differently. During the inflation targeting period in both countries, evidence suggests that we cannot reject quadratic preferences over inflation deviations (from target). We cannot reject that New Zealand's preferences regarding deviations of output from trend are quadratic, but Australia's behaviour does not appear to be consistent with quadratic preferences. Instead, the preferences of the Reserve Bank of Australia appear to be more accurately modelled with an asymmetric loss such that the Reserve Bank of Australia views negative output gaps as more costly than positive output gaps.

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newzealand

New Zealand's Exporters Still Face Barriers in China

A majority of New Zealand companies face barriers to China, which include language, culture, IP protection issues, and China's regulatory environment. These issues can be overcome, but the government and private sector must increase their role in fostering better trade relations. Market potential is there, but lack of access remains.

A majority of New Zealand companies face barriers to China, which include language, culture, IP protection issues, and China's regulatory environment. These issues can be overcome, but the government and private sector must increase their role in fostering better trade relations. Market potential is there, but lack of access remains.

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newzealand

New Zealand's Reserve Bank's Bulletin Released

The Reserve Bank of New Zealand's Bulletin presents articles addressing core inflation and its calculation methods, which it plans to use in its regular reports. The Bank reports on its ability to absorb a local bank failure and its liquidity mangement regime's goals and purpose. Included is a summary of the Bank's macro-economic policy frameworks.

The Reserve Bank of New Zealand's Bulletin presents articles addressing core inflation and its calculation methods, which it plans to use in its regular reports. The Bank reports on its ability to absorb a local bank failure and its liquidity mangement regime's goals and purpose. Included is a summary of the Bank's macro-economic policy frameworks.

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newzealand

New Zealand's Reserve Bank Likely to Hold Line on Rates

The Reserve Bank of New Zealand will probably not change the Official Cash Rate at 7.25%. There are signs of growth in the New Zealand economy and inflationary pressures may be easing up.

The Reserve Bank of New Zealand will probably not change the Official Cash Rate at 7.25%. There are signs of growth in the New Zealand economy and inflationary pressures may be easing up.

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newzealand

US and Asian Economies Differ Over Free Trade Bloc Process

The United States and Asian economies are at odds on how to implement a plan to set up a Asia-Pacific free trade area. The Asian economies want to start a free trade area among themselves before considering a free trade area for the Asia-Pacific. However, the US government wants to implement these plans simulataneously. Washington is pushing a prompt implementation of the Asia-Pacific plan because it would jolt non-Apec members, such as Brazil and India, to restart talks for a new global trace pact.

The United States and Asian economies are at odds on how to implement a plan to set up a Asia-Pacific free trade area. The Asian economies want to start a free trade area among themselves before considering a free trade area for the Asia-Pacific. However, the US government wants to implement these plans simulataneously. Washington is pushing a prompt implementation of the Asia-Pacific plan because it would jolt non-Apec members, such as Brazil and India, to restart talks for a new global trace pact.

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newzealand

NZ's Export Year Launches with $33m Boost

New Zealand's "Market Development Scheme" will earmark $33.75million to launch its "Export Year 2007" as an initiatives to "crack key markets overseas" and expand trade missions abroad and export assistance programmes. Export growth is seen as a vital component t"o New Zealand's long-term economic sustainability".

New Zealand's "Market Development Scheme" will earmark $33.75million to launch its "Export Year 2007" as an initiatives to "crack key markets overseas" and expand trade missions abroad and export assistance programmes. Export growth is seen as a vital component t"o New Zealand's long-term economic sustainability".

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newzealand

New Zealand's First Deputy Leader Peter Brown in Tax Bill Revolt

Brown will vote against a proposed tax bill on offshore investments. This may "tropedo" the legislation, which would charge a 5% tax on capital gains made on offshore shares if enacted.

Brown will vote against a proposed tax bill on offshore investments. This may "tropedo" the legislation, which would charge a 5% tax on capital gains made on offshore shares if enacted.

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newzealand

Central Bankers Upbeat Over Global Growth Next Year

The world's top central bankers discussed the future of global growth. There seems to be a consensus that the global economy was strong and sustainable, but in order to mitigate risks banks would have to fix their attention on inflation. Some hint to continued raises in interest rates to offset "overly optimistic investment".

The world's top central bankers discussed the future of global growth. There seems to be a consensus that the global economy was strong and sustainable, but in order to mitigate risks banks would have to fix their attention on inflation. Some hint to continued raises in interest rates to offset "overly optimistic investment".

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newzealand

Reserve Bank of New Zealand Releases Financial Stability Report

The report assesses the health of the New Zealand financial system and covers financial institutions practices, foreign exchange markets, and policy developmets. Banks seem to be in relatively good shape while foreign investment has increased, but there are concerns over possible speculative outflows.

The report assesses the health of the New Zealand financial system and covers financial institutions practices, foreign exchange markets, and policy developmets. Banks seem to be in relatively good shape while foreign investment has increased, but there are concerns over possible speculative outflows.

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newzealand

APEC Shelves Free Trade Zone Plans

The Asian Pacific Economic Co-operation forum has shelved plans to create a "vast free trade area" that would aggregate the numerous bi-lateral and regional tarde agreements in the region. The ambitious proposal lost mometum to various side deals at the forum. APEC has shifted its focus to resurrecting talks on the Doha round of the WTO.

The Asian Pacific Economic Co-operation forum has shelved plans to create a "vast free trade area" that would aggregate the numerous bi-lateral and regional tarde agreements in the region. The ambitious proposal lost mometum to various side deals at the forum. APEC has shifted its focus to resurrecting talks on the Doha round of the WTO.

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newzealand

Officials from Viet Nam, Australia, New Zealand, and Brunei Discuss Regional Ties

Viet Nam's Deputy Prime Minister and Minister of Foreign Affairs Pham Gia Khem met with Australian Minister for Foreign Affairs Alexander Downer, New Zealand's Minister of Foreign Affairs Winston Peters, and Brunei's Second Minister of Foreign Affairs and Trade Lim Jock Seng to discuss regional and bilateral co-operation.

Viet Nam's Deputy Prime Minister and Minister of Foreign Affairs Pham Gia Khem met with Australian Minister for Foreign Affairs Alexander Downer, New Zealand's Minister of Foreign Affairs Winston Peters, and Brunei's Second Minister of Foreign Affairs and Trade Lim Jock Seng to discuss regional and bilateral co-operation.

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newzealand

NZ's Farmer Confidence Dips as Dollar Rises

As the Kiwi dollar strengthened rural farmers confidence in the economy dipped. The Kiwi dollar's appreciation may affect the rural sector, but overall investment in farming and agriculture remained firm.

As the Kiwi dollar strengthened rural farmers confidence in the economy dipped. The Kiwi dollar's appreciation may affect the rural sector, but overall investment in farming and agriculture remained firm.

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newzealand

NZ's Monday Market Report

New Zealand's dollar failed to gain against the US dollar and make up its previous losses, but depreciated further against other major currencies. The shares market fluctuated significantly as well, with "75 rises and 52 falls".

New Zealand's dollar failed to gain against the US dollar and make up its previous losses, but depreciated further against other major currencies. The shares market fluctuated significantly as well, with "75 rises and 52 falls".

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newzealand

Tourism Spending in New Zealand Rises 16 Percent

According to figures released by the Tourism Ministry yesterday, visitor spending reached $6.97 billion for the year ending in June 2006. Compared to the same period of the prior year, spending increased by $1 billion, about 16 percent, and almost double the $3.6 billion recorded in 1999. According to industry analysts, the rise has largely been the result of a weakening dollar. However, since June, the NZ dollar has appreciated significantly, which should cause a slowdown in tourism spending.

According to figures released by the Tourism Ministry yesterday, visitor spending reached $6.97 billion for the year ending in June 2006. Compared to the same period of the prior year, spending increased by $1 billion, about 16 percent, and almost double the $3.6 billion recorded in 1999. According to industry analysts, the rise has largely been the result of a weakening dollar. However, since June, the NZ dollar has appreciated significantly, which should cause a slowdown in tourism spending.

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newzealand

New Zealand's Annual Inflation Rate Slows; Currency Depreciates

In the previous quarter, New Zealand's inflation rate slowed to 3.5% from 4% observed in the second quarter. Falling prices in imported cars, fuel, and computers supported the trend. The news has dimmed the prospects for an interest rate hike, which is now considered unnecessary. As a result, the high-performing New Zealand Dollar fell to an exchange rate of 66.04 US cents from 66.30 the day before.

In the previous quarter, New Zealand's inflation rate slowed to 3.5% from 4% observed in the second quarter. Falling prices in imported cars, fuel, and computers supported the trend. The news has dimmed the prospects for an interest rate hike, which is now considered unnecessary. As a result, the high-performing New Zealand Dollar fell to an exchange rate of 66.04 US cents from 66.30 the day before.

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newzealand

New Zealand Dollar Heads for Weekly Gain on Higher Bond Yields

Investor demand for higher-yielding bonds and expectations that benchmark interest rates will remain boosted has New Zealand's well performing dollar headed for its first weekly gain in almost a month.  The currency has rose 9.5% in the last three months, with the benchmark rate hitting a record high of 7.25%, which is 2 points greater than the Federal Reserve's target for overnight lending between banks.  The NZ Dollar bought 66.23 US cents at the end of yesterday.

Investor demand for higher-yielding bonds and expectations that benchmark interest rates will remain boosted has New Zealand's well performing dollar headed for its first weekly gain in almost a month.  The currency has rose 9.5% in the last three months, with the benchmark rate hitting a record high of 7.25%, which is 2 points greater than the Federal Reserve's target for overnight lending between banks.  The NZ Dollar bought 66.23 US cents at the end of yesterday.

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newzealand

New Zealand Economy Slows

New Zealand's economy last quarter reached its slowest rate in five years, due to a drop in consumer spending, construction, and business investment.  Although GDP grew 1.9% since the same quarter last year, the annual growth rate has slowed down to only 2.2%, the slowest since June 2001.  Economists predict that the slowdown could encourage the Reserve Bank of New Zealand to further increase interest rates, which could possibly force the economy into a hard landing.

New Zealand's economy last quarter reached its slowest rate in five years, due to a drop in consumer spending, construction, and business investment.  Although GDP grew 1.9% since the same quarter last year, the annual growth rate has slowed down to only 2.2%, the slowest since June 2001.  Economists predict that the slowdown could encourage the Reserve Bank of New Zealand to further increase interest rates, which could possibly force the economy into a hard landing.

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newzealand

Consumer Confidence Rises as Fuel Costs Decline

Falling gas prices, record low-unemployment rates, and rising property prices contributed to consumer confidence recovery in New Zealand last quarter.  Statistically, the Westpac Bank/McDermott Miller Consumer Confidence Index rose from 106 in June to 111.7 in September, the highest level observed in over 12 months.  A score over 100 indicates that there are more optimists than pessimists with regards to economic outlook.  Consequently, retail sales have rose at a rate faster-than-expected, and looks to continute on this trend.

Falling gas prices, record low-unemployment rates, and rising property prices contributed to consumer confidence recovery in New Zealand last quarter.  Statistically, the Westpac Bank/McDermott Miller Consumer Confidence Index rose from 106 in June to 111.7 in September, the highest level observed in over 12 months.  A score over 100 indicates that there are more optimists than pessimists with regards to economic outlook.  Consequently, retail sales have rose at a rate faster-than-expected, and looks to continute on this trend.

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newzealand

New Zealand Trade Deficit Worsens

Continued increases in oil import costs offset improving exports, according to official data released Tuesday.  Statistics New Zealand reports an August trade goods deficit of 961 million NZ dollars compared to 703 million NZ dollars in July.  However, this number is still significantly less than the NZ$1.1billion posted for August of last year.  A rise in the value of aluminum, meat, edible offal, and fruit aided the increased export values upon the year, but were unfortunately offset by skyrocketing oil import prices that have remained consistently high throughout the year.

Continued increases in oil import costs offset improving exports, according to official data released Tuesday.  Statistics New Zealand reports an August trade goods deficit of 961 million NZ dollars compared to 703 million NZ dollars in July.  However, this number is still significantly less than the NZ$1.1billion posted for August of last year.  A rise in the value of aluminum, meat, edible offal, and fruit aided the increased export values upon the year, but were unfortunately offset by skyrocketing oil import prices that have remained consistently high throughout the year.

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newzealand

New Zealand Dollar Climbs to Seven-Month High

Due to the nation's high yield premium, New Zealand's dollar rose to a seven-month high, retaining its position as the world's best-performing currency this quarter.  The New Zealand Dollar has risen 10% since the start of July, with the central bank keeping the benchmark rate at a record-high 7.25%.  Economic growth is looking to surpass original projections on the year to date.

Due to the nation's high yield premium, New Zealand's dollar rose to a seven-month high, retaining its position as the world's best-performing currency this quarter.  The New Zealand Dollar has risen 10% since the start of July, with the central bank keeping the benchmark rate at a record-high 7.25%.  Economic growth is looking to surpass original projections on the year to date.

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newzealand

Most Asian Markets Rise as Lower Oil Prices Boost Shares in Tokyo

Indices in Hong Kong and Japan rebounded from recent loss-streaks as a fall in crude oil prices has alleviated market tension, boosting investor confidence and increasing activity.  Most east-Asian exchanges shared similar change of pace while trade in Southeast Asia remained relatively flat or declined slightly.

Indices in Hong Kong and Japan rebounded from recent loss-streaks as a fall in crude oil prices has alleviated market tension, boosting investor confidence and increasing activity.  Most east-Asian exchanges shared similar change of pace while trade in Southeast Asia remained relatively flat or declined slightly.

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newzealand

New Zealand Feels FTA Pressures

New Zealand, a pioneer in developing Free Trade Agreements, is losing its edge in the Northern Hemisphere as the rest of the world fights to catch up.  With competition for FTA's coming from larger countries, NZ may be forced to negotiate with fewer countries, spending a greater amount of resources to achieve lesser results.  This is troubling to New Zealand because small states rely on Free Trade  Agreements as leverage to make up for their smaller geographic size.

New Zealand, a pioneer in developing Free Trade Agreements, is losing its edge in the Northern Hemisphere as the rest of the world fights to catch up.  With competition for FTA's coming from larger countries, NZ may be forced to negotiate with fewer countries, spending a greater amount of resources to achieve lesser results.  This is troubling to New Zealand because small states rely on Free Trade  Agreements as leverage to make up for their smaller geographic size.

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newzealand

Labour Threatens Clampdown on Anonymous Donations

Labour says it will seek support from other parties to clamp down on anonymous donations to political parties after suggesting tax exiles helped bankroll National's election campaign. Labour is repelling National's corruption allegations by claiming that before the election National secretly took "cash for policy" from big businesses through donations to anonymous trust funds.

Labour says it will seek support from other parties to clamp down on anonymous donations to political parties after suggesting tax exiles helped bankroll National's election campaign. Labour is repelling National's corruption allegations by claiming that before the election National secretly took "cash for policy" from big businesses through donations to anonymous trust funds.

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newzealand

Kiwi Dollar Rises

The Kiwi dollar rose against most major currencies today.

The Kiwi dollar rose against most major currencies today.

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newzealand

Manufacturing New Zealand's Big Export Ticket

Manufacturing is the biggest exporting sector in New Zealand business, according to a new report from Statistics New Zealand. The survey showed 41 percent of businesses in manufacturing exported compared to the 17 percent of businesses overall making export sales.

Manufacturing is the biggest exporting sector in New Zealand business, according to a new report from Statistics New Zealand. The survey showed 41 percent of businesses in manufacturing exported compared to the 17 percent of businesses overall making export sales.

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newzealand

Healthy Kai for Kids

Sausages for kids that comprise 31 percent vegetables are hitting the anti-obesity market in New Zealand this month.

Sausages for kids that comprise 31 percent vegetables are hitting the anti-obesity market in New Zealand this month.

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Other Important News In Newzealand


Oceania's Dollar Rose for a Second Day

The Australian and New Zealand currencies were the second- and third-best performers among major currencies against the U.S. dollar over the past three months as interest rates of 3 percent in Australia and 2.5 percent in New Zealand attracted investors to the South Pacific nations' assets. South Africa's rand is the top performer.

The Australian and New Zealand dollars gained for a second day as speculation U.S. interest rates will stay low buoyed demand for higher-yielding assets. The currencies extended yesterday's biggest advance in a week against the U.S. dollar after futures traders added to bets the Federal Reserve will keep the benchmark rate close to zero for the rest of this year. Demand for higher-yielding assets was bolstered after the European Central Bank called for banks to bid in the first auction of 12-month loans, prompting speculation that the funds being made available will be invested in countries with higher benchmark interest rates. "People are afraid of strong comments from Fed officials that will reduce tightening expectations," said Masafumi Yamamoto, head of foreign-exchange strategy for Japan at Royal Bank of Scotland Group Plc in Tokyo and a former Bank of Japan currency trader. "Further ebbing of tightening expectations is weighing on the U.S. dollar, so it's weakening against currencies like the Aussie and kiwi," he said. Australia's currency rose to 79.85 U.S. cents as of 5:02 p.m. in Sydney, from 79.39 cents yesterday in New York. It bought 76.11 yen from 75.60 yen. New Zealand's dollar strengthened to 64.41 U.S. cents from 63.97 cents. It traded at 61.37 yen from 60.92 yen.

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New Zeland Increases Business Confidence

New Zealand is expecting to get out from the recession in the quarter this year, growing the economy confidence.

"This recovery supports our view that gross domestic product will return to growth later in 2009". And, "more confidence readings are needed to confirm this turnaround", the Wellington-based Treasury said.

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Kiwi Dollar Continues to Slide

The New Zealand dollar continued to drift lower today, ending up just above the US56 cent mark at the local close.

The New Zealand dollar continued to drift lower today, ending up just above the US56 cent mark at the local close. At 8am today the NZD was buying US56.49c and lost nearly half a cent to be worth US56.12c at 5pm. The only local data today was the Westpac McDermott Miller Consumer Confidence index, which slipped back into pessimistic territory (96.0 in March from 101.3 in December) but confidence is still seen as resilient. That caused only a "small dip" in the dollar , Mr Hindley said.

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NZ Gas Field May be a Goldmine

Todd Energy is planning to drill three wells in the next 18 months to check whether a little-known onshore Taranaki gas field could become a major producer.

Todd Energy is planning to drill three wells in the next 18 months to check whether a little-known onshore Taranaki gas field could become a major producer. In the past, gas in the Mangahewa field, 18km southeast of New Plymouth, was considered to be held tight and difficult to extract. But the Mangahewa-3 well, which was drilled in 2007 and brought into production last year using modern techniques, led to a reappraisal of the field's potential. If the three planned wells produced similar results to Mangahewa-3 "then we're on to something pretty significant and we're looking at something that is potentially a Pohokura size".

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New Zealand: Low Interest Rates Spark Resurrection

The dramatic fall in interest rates over the past few months has helped to kick life back into the commercial and industrial property agency business, says Chris Bayley, general manager commercial and industrial for Bayleys Real Estate.

The dramatic fall in interest rates over the past few months has helped to kick life back into the commercial and industrial property agency business, says Chris Bayley, general manager commercial and industrial for Bayleys Real Estate. "It remains to be seen whether this continues, given the challenges the New Zealand economy will face from the global downturn this year, but it's been an encouraging start to 2009." Bayley says a lot of the renewed inquiry is coming from investors who have had substantial funds parked in the bank and have witnessed their income returns almost halved in a matter of a few months.

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New Zealand Considers Cutting Fuel Tax

Auckland's planned regional fuel tax could be cut as the Government worries about levies pushing fuel prices up 14c a liter within three years.

Auckland's planned regional fuel tax could be cut as the Government worries about levies pushing fuel prices up 14c a liter within three years. But any reduction could jeopardize funding for several public transport projects, in particular the electrification of the rail network. The Government is expected to announce changes to the regional fuel tax, with other transport and infrastructure plans, early next week.

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New Zealand's Largest Port Operation Could Be Going Private

The prospect of New Zealand's largest port operation being sold to private owners has been raised as a result of the global economic situation.

The prospect of New Zealand's largest port operation being sold to private owners has been raised as a result of the global economic situation. Owned by Auckland Regional Council (ARC), the firm has had a 26 percent drop in profit from the same period last year to NZ$9.3 million. Managing director Jens Madsen said executive salaries had been frozen, and he hinted at possible job losses among the company's 600 staff. Dividends from the port company are one of the ARC's main sources of revenue, helping to pay for public transport and other civic developments worth more than $1 billion. They include rail electrification, an integrated ticketing service and the Tank Farm development on the western edge of central Auckland. Mr Judd yesterday said a capital structure review could recommend selling the ports into private ownership through a public share listing.

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New Zealand Company Failure Rates Soar by 40%

Failures of New Zealand companies are up over 40 percent on the same time last year.

Failures of New Zealand companies are up over 40 percent on the same time last year. The Ministry of Economic Development figures show that in the seven months since July 2008 a total of 3487 companies have run aground, 3270 have gone into liquidation, a further 217 into receivership. In the same period the previous year, 2424 companies hit the wall, made up of 2344 liquidations and 80 receiverships. The worst month was December, when 594 companies failed, 560 liquidations and 34 receiverships.

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Risk Averse Kiwis Flock to Debit Cards

Banks are tapping into a credit-shy mood among consumers which is seeing them flock towards a new breed of debit cards.

Banks are tapping into a credit-shy mood among consumers which is seeing them flock towards a new breed of debit cards. Kiwibank is about to become the second New Zealand bank to offer the Visa Debit Card, a piece of plastic that operates in every way like a credit card but for the bill at the end of the month. Westpac has been offering the Visa Debit Card for the past three years and has seen an explosion in demand. The bank says while numbers of new credit cards issued is static debit cards are growing by 50 per cent a year. It now issues three debit cards to every one credit card. Debit cards take funds straight out of the user's bank account just as an Eftpos card does, but where they differ is they can also be used for shopping online and overseas just like a credit card.

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New Zealand to Unleash $3 Billion in Projects

The Government hopes to unleash $3 billion to $4 billion in "ready-to-go" private investment through proposed task forces to help investors through regulatory hoops.

The Government hopes to unleash $3 billion to $4 billion in "ready-to-go" private investment through proposed task forces to help investors through regulatory hoops. The figure is likely to include major energy projects such as Transpower's upgrading of the national electricity grid, estimated at $3.8 billion over five years, and Genesis's proposed $500 million gas-fired Kaipara power station, which is waiting for a decision by planning commissioners. Other big projects would need consents from "housing" authorities, pointing to possible property developments.

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