Here are the key things you need to know before you leave work today.
NO RATE CHANGES
There were no rate changes again today. It's all 'wait and see' till Thursday's OCR review.
DANONE-FONTERRA POSITIONS HARDEN
Danone has slammed a New Zealand High Court decision to stall its legal battle to recoup money lost as a result of the Fonterra whey protein concentrate botulism scare. They don't see why the court action and the arbitration can't go on at the same time. Fonterra won the point in the High Court.
KICKING AT TLA RULES
Paula Bennett has launched a Taskforce to stamp out 'loopy' council rules. She has called on developers and ratepayers to submit red tape complaints. Election fodder, but only because there is [minor?] issue here.
MORE SEASONAL WORK
A new program aimed at getting more Kiwis into seasonal work, alongside an increase to the annual RSE cap was announced today. The Recognised Seasonal Employer (RSE) worker levels will rise from 8,000 to 9,000. Horticulture and viticulture industries will be pleased.
NOT IN THEIR BACKYARD
The Labour Party is hailing the the EPA Board of Inquiry rejection of the Basin Reserve flyover. The 'historic' park is reprieved and it is back to the drawing board for a sustainable transport plan for Wellington - one the locals can accept - which just might mean gridlock in the area for a long time yet.
WHOLESALE RATES
Wholesale swap rates rose and flattened today. The 2 year was up +3 bps, the three and four year interest rate swaps were up +2 bps, and the five year was up only +1 bp. The 90 day bank bill rate was unchanged at 3.65%, as was the 1 year interest rate swap at 3.90%.
OUR CURRENCY
The NZ dollar has moved very little again today. A speech by RBA governor Stevens saw the AUD rise just marginally. The NZD is now at 86.9 USc. It is at 92.7 AUc and the TWI is now at 80.9.
You can now see an animation of this chart. Click on it, or click here.
5 Comments
No. 2. In anyone's money $15,000 a can (1$bn all up) seems a bit rich, for an event that didn't happen.
But then the French do cook with alot of cream.
see the 8:55 min mark..
http://www.radionz.co.nz/audio/player/20142604
(600-15)/2+15 is not the answer. You are assuming these folk are stepping from a position of fair mindedness. Should it be they that should be warranting NZ Inc....
Chinese state TV said on Monday that Danone (DANO.PA) had bribed hospital staff to give its milk powder to new-born babies, allegations that the French food group said it was shocked by and would investigate immediately.
China Central Television (CCTV) cited an unidentified former Dumex sales manager as saying the company had paid medical staff at a city hospital in Tianjin to promote its products.
http://www.reuters.com/article/2013/09/16/us-danone-china-idUSBRE98F0A720130916
and
Danone was also one of six mostly foreign infant formula manufacturers that faced Rmb669m ($109m) in fines from the Chinese government in August for engaging in allegedly anti-competitive pricing practices.
http://www.ft.com/intl/cms/s/0/dfa52a48-1ed7-11e3-b80b-00144feab7de.html#axzz38AvTu5jl
and
blocked for too high a levle of Nitrates
so on another tack:
Danone, the French yoghurt maker, has doubled its stake in China Mengniu Dairy from 4% to 9.9% for HK$5.1 billion ($657 million), in a rare example of a foreign company raising its stake in a Chinese state-backed company.
The increase – which will make Danone the second largest shareholder after state-backed Cofco – is interesting because most deals involving Chinese companies have been outbound.
http://www.financeasia.com/News/372182,danone-lifts-stake-in-mengniu-amid-dairy-deals.aspx
but the real issue may be:
"Danone doesn't have strong sales channels coverage and is not good at marketing in China. In those segments Mengniu can help Danone to do a better job after this deal," said Du at SmithStreetSolutions.
http://www.cnbc.com/id/101429284#.
Gratifying symmetry at the Basin Reserve!
As a descendant of the man who promoted the conversion of the Basin Reserve from wasteland to a cricket ground I am delighted at this decision.
Originally the Basin was to be a Harbour Basin with a canal running up Kent Tce to this sheltered berth with all its warehouses nestled in around it. Before cars and motorways our coastline was SH1 and the ships our buses and trucks.
It is fitting that with cricket benefitting originally from a failed transport venture it should hold its own against the attempted comeback.
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