Morning Marcus: Steve Jobs, Air NZ, KiwiBank, Delegats

Bernard Hickey talks with Marcus Lush on Radio Live at 6.50 am about Steve Jobs' resignation, KiwiBank's profit slump, Air NZ's horror first half and currency hits for Delegats, F&P Appliances and Tourism Holdings

25th Aug 11, 7:38pm by Bernard Hickey

<p> Bernard Hickey and Marcus Lush talk every weekday morning just after 6.50 am about business, economics, markets and personal finance.</p>

Every weekday morning just after 6.50 am I talk with Marcus Lush on Radio Live about the latest news in business, markets, economics and personal finance.

I usually send through suggestions the night before. Sometimes we veer off into other areas or pick up on things that happen overnight.

But here's my suggestions as of 7.30 pm the night before. I'll update the next day with a link to the audio.

Marcus

1. The most influential CEO of the last quarter century, Steve Jobs, has resigned. The man who co-founded Apple and then rescued it from bankruptcy announced he was leaving to become Chairman. Jobs and co-founder Steve Wozniaki were responsible for the things we now take for granted in computing -- the use of a mouse and icons to click on.

He then returned to save Apple in the late 1990s and has since reinvented computing and entertainment again with the iPod, the iPhone and the iPad. Last week Apple became the most valuable company in the world with more cash than the US government. See more here from Walt Mossberg at AllthingsD

2.Kiwibank's annual profit more than halved as provisions for bad debts surged more than four times. Despite this the state owned bank grew net interest margins as home loan customers switched to more lucrative floating mortgages from fixed-term ones, and Kiwibank increased lending by NZ$1.08 billion, or 10%, which was a faster rate than its bigger Australian owned rivals. See more here from Gareth Vaughan at interest.co.nz.

3. Air New Zealand posted a loss of NZ$37 million the six months to June 30 after the Christchurch earthquake and the Japanese Tsunami wiped NZ$70 million off its earnings. See more here at Scoop.

4. The high New Zealand dollar and various currency moves are hammering some companies hard. Delegats has warned of a slump in sales to Europe and the UK because of the strong NZ dollar and weak demand. See more here at Scoop. Fisher and Paykel Appliances has warned of lower profits because of the strong Australian dollar. See more here at Scoop. Tourism Holdings has also been hammered with a big writedown and weak sales to European, British and American Campervan customers. See more here at Scoop.

cheers

Bernard

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15 Comments

by Rob of the North | 25th Aug 11, 8:09pm 1314259783

There is probably a greater chance that an earthquake will hit Jackson Hole, Wyo., on Friday at 10 a.m. ET than there is of Federal Reserve chairman Ben Bernanke announcing a third round of quantitative easing.

But you wouldn't know that from the way the market has been behaving this week.

by steven | 25th Aug 11, 8:54pm 1314262477

Really? I'd say its 50%+ sure to happen...no one in Congress cares about the US economy, except Bernakie it weems. In fact since its the Administration that takes the can I wonder if they are not trying to make it sicker to improve their chances of a Rep President win next year.....they are after all fruity loops....

regards

by Rob of the North | 25th Aug 11, 8:09pm 1314259784

But you wouldn't know that from the way the market has been behaving this week.

by MarkS | 25th Aug 11, 8:54pm 1314262476

Okay, I'm nit picking, but icons and mice were invented by Xerox PARC, not Apple.

by speckles | 25th Aug 11, 9:08pm 1314263296

not the point, they are resposible for their commone use, Apple was shameless in stealing ideas... the point is they bundled them in a way that made them wanted and accessible to the masses.

by Bernard Hickey | 26th Aug 11, 7:40am 1314301220

You're right about the idea coming from Xerox PARC. But Jobs commercialised it in a package that people liked, and first.

The rest is history.

And I didn't get to mention Pixar.

cheers

Bernard

by amalgam | 26th Aug 11, 9:17am 1314307061

The computer mouse was invented by Doug Engelbart at Stanford around 1963.

In fact, in 1968, he demonstrated its use, as well as a whole lot of other innovative and pioneering things later claimed by others.

by Wolly | 26th Aug 11, 8:16am 1314303387

The power of the state:

http://www.telegraph.co.uk/finance/personalfinance/consumertips/tax/8721113/Chancellor-George-Osborne-launches-5bn-tax-raid-on-Swiss-bank-accounts.html

or.... the greed of the pollies, desperate to finance the debts they caused. Next step will be theft of gold before the price rises to offset the debasement of the currency.

Yes it's the UK...which is where the pointy heads in wgtn get all their ideas from...!!!

A small step now to the next level of theft by govt....pay before you earn and pay before you make a capital gain...

by Andrewj | 26th Aug 11, 8:26am 1314303994

Wolly , I liked the 'thought for the day' below that article

Mark Twain

The only difference between a tax man and a taxidermist is that the taxidermist leaves the skin

by Wolly | 26th Aug 11, 8:48am 1314305296

missed that...ta

by Andrewj | 26th Aug 11, 8:33am 1314304418

An excellent article by AEP

http://www.telegraph.co.uk/finance/financialcrisis/8723302/Nobel-gurus-…

Nobel gurus warn Britain on fiscal overkill and Fed on monetary overkill

by Wolly | 26th Aug 11, 8:55am 1314305710

Dunno bout that AJ...if the QE man starts buying ECB debt with fresh toiletpaper to prop up the euro and weaken the Dollar more, the outcome is a rise in commodity prices anyway but at the cost of european (german) exports leading to more slowdown. It's a silly way to boost us exports.

I would say he has no ammo left but BS and spin.

The us is cornered into massive fiscal slashing and bugger the promises by lying pollies....goodbye to all the pork...it's gone rancid.

by amalgam | 26th Aug 11, 9:25am 1314307500

"Fisher and Paykel Appliances has warned of lower profits because of the strong Australian dollar."

Yesterday I happened to be in a Smith's City store when a youngish couple appeared, looking to buy new appliances. The salesperson asked them for specifics, and they said "Anything but F&P rubbish".

Sadly, quality is no assurance of profitability, but when even Kiwis are dismissing your product as "rubbish", you have much bigger problems than just the strength of the Ocker buck.

by Sqaure | 26th Aug 11, 10:17am 1314310627

I find that quite interesting, as I am in a similar position myself and will probably end up buying F&P appliances. Supporting a New Zealand company is merely a bonus, as I have had very good experiences with F&P appliances.

It only takes one look at something from Daewoo electronics to see what "rubbish" appliances look like.

by David B | 29th Aug 11, 11:10pm 1314616209

Well F&P were warned that if they shut down all their NZ manufacturing plants, that this might well happen to them. NZ's loyalty to them as an iconic Kiwi brand would be over and that that would, potentially, have far reaching consequences for their bottom line.