Business 26 Ashburton Guardian
www.guardianonline.co.nz
Friday, July 26, 2019
‘Competition, buyer protections key’ By Gavin Evans NZME
Competition and proper consumer protections will be essential if New Zealand is to benefit from the rapid technological developments under way globally, Commerce Commission chairwoman Anna Rawlings says. While new technologies are providing “pretty spectacular” choices in communications, online retailing and entertainment, surveys show some consumers are expressing a sense of vulnerability that their personal data may be being harvested and that their choices are somehow being manipulated, Rawlings said at the Competition Matters conference in Auckland yesterday. She said those concerns possibly reflect a wider international trend in which some people are expressing a loss of faith in markets and institutions. “In this context, competition remains especially important, as does the role of agencies like ours,” she told about 300 economists, lawyers, policymakers and executives. “The effective enforcement of competition laws, and proac-
tively tackling anti-competitive conduct, are vital to address New Zealand’s productivity,” Rawlings said. “It’s central to fostering innovation, to encouraging growth and employment and to maintaining and fostering business and consumer confidence. “And it’s increasingly important that people can see the extent to which healthy competition can contribute to the wellbeing of consumers and to the economy as a whole.” Rawlings, who has just taken over as commission chair from Mark Berry, said the organisation is not planning “dramatic” change in the way it approaches its work. But she said the organisation needs to be fit for the future and will continue to seek ways to work more closely with consumer groups. Its staff has already expanded to about 250, from 180 five years ago, and that number is likely to rise further as the commission takes on wider responsibilities. Every piece of legislation the commission polices has either been amended, or is expected to be amended, she noted.
Guardian Shares & Investments Compiled by
NEW ZEALAND SHARE MARKET
Source: NZX and Standard & Poors
1748 276.5 2895 140 138 960 551 795 2345 1648 491 380 850 351 516 205 169 469 190 214 164 4240 484 497 435 217 120 103 621 178.5 230 347 972 1309 670 459 234 126 398 392 227 566 969 415 748 384 605 262 2983 657
Daily Volume move ’000s
+46 +1.5 +22 +0.5 +1 –4 +9 +13 –72 +33 – –2 –5 +7 –79 +3 –1 –2 – –1 +1.5 +26 +9 –2 +1 +6 +2 –4 +10 +1.5 +3 +7 –8 +10 –6 – –1 –2 +6 +3.5 +2 +1 +7 +3 – – +4 –1.5 +17 +2
502.3 613.0 7.73 1.0m 357.0 1.2m 203.4 847.1 32.79 354.6 1.0m 450.5 140.0 667.5 141.5 535.4 322.2 1.0m 146.6 303.9 2.1m 45.06 596.7 950.2 79.37 97.56 266.9 1.1m 176.8 1.2m 300.0 198.7 35.53 331.3 22.32 82.91 70.03 585.6 1.2m 2.6m 425.7 573.2 87.20 76.60 26.57 107.2 134.2 245.5 19.91 302.4
S&P/NZX 50 Index Gross 10930 10820 10710
What a hard Brexit could mean for NZ’s trade with Britain NZME
10490 10380
Anna Rawlings
By Jamie Gray
10600
25/7
1748 276.5 2900 140 138 965 551 795 2355 1648 495 382 850 351 527 205 170 470 191 215 164.5 4300 484 497 435 217 120 104 621 178.5 231 349 979 1325 675 460 234 126 398 393 227 566 969 415 760 390 610 264 2998 658
Last sale
19/7
1735 276 2880 139 137 960 536 790 2301 1635 488 379 840 343 515 203 167 466 190 213 163.5 4225 473.5 495 433 212 118 103 615 177.5 230 340 965 1300 670 455 233 125 396 389.5 225 564 933 414 748 384 600 262 2982 647
Sell price
12/7
a2 Milk Company ATM Air NZ AIR ANZ Banking Gr ANZ Argosy Prop ARG Arvida Gr ARV Auckland Intl Airpt AIA Chorus CNU Contact Energy CEN Ebos Gr EBO F&P Healthcare FPH Fletcher Building FBU Fonterra Share Fund FSF Freightways FRE Genesis Energy GNE Gentrak Gr GTK Goodman Prop Tr GMT Heartland Gr Hldgs HGH Infratil IFT Investore Property IPL Kathmandu Hldgs KMD Kiwi Property Gr KPG Mainfreight MFT Mercury NZ MCY Meridian Energy MEL Metlifecare MET NZ Refining NZR NZX NZX Oceania Healthcare OCA Port of Tauranga POT Precinct Properties PCT Prop for Industry PFI Pushpay Holdings PPH Restaurant Brands RBD Ryman Healthcare RYM Sanford SAN Scales Corp SCL Skellerup SKL Sky Network TV SKT Skycity Ent Gr SKC Spark SPK Stride Prop & Inv SPG Summerset Gr Hldgs SUM Synlait Milk SML Tourism Holdings THL TrustPower TPW Vector VCT Vista Gr Intl VGL Vital Hlth Prop Tr VHP Westpac Banking WBC Z Energy ZEL
Buy price
5/7
Company CODE
At close of trading on Thursday, July 25, 2019
28/6
S&P/NZX 50 Index Gross constituents
The organisation is undertaking its first market study — into fuel retailing — and is preparing for the criminalisation of cartel behaviour taking effect in 2021. Educating firms about that change will be among the commission’s eight key focus points in the coming year, along with greater monitoring and reporting of retail telecommunications performance, setting new regulatory rules for broadband fibre services and the five-yearly price resets for electricity networks currently unde rway. Rawlings said motor vehicles remain the second-largest purchase most households make, so sales practices and their financing will remain a key focus for the commission. Online retailing and environmental claims by product makers — an issue of growing importance to consumers — will also be key focus areas. “We’re going to continue to be busy, we expect. We have more cases before the courts than ever before. We have a significant programme of work on the table and there is a lot of legislative change and we are getting fit for the future.”
p S&P/NZX 50 Gross
10,898.28 +85.74 +0.79%
p S&P/NZX 20 index
7,286.6
+69.59
+0.96%
p S&P/NZX All Gross
11,764.89 +89.31 +0.76%
p Rises 70 q Falls 45 Top 5 NZX gainers Company
daily % rise
Livestock Imp +17.78% Metro Perf Glass +5.41% Warehouse Gr +4.74% NZ Refining +2.84% City of London Inv Tr +2.79%
Top 5 NZX decliners Company
daily % fall
Gentrak Gr –13.28% Oceania Healthcare –3.74% Cavalier Corp –3.28% Steel & Tube –3.19% Ebos Gr –2.98%
METAL PRICES
Source: interest.co.nz
p Gold
1,426.95
London – $US/ounce
+1.4
+0.10%
p Silver London – $US/ounce
16.53
+0.1
+0.61%
5,980.0
+11.5
+0.19%
p Copper London – $US/tonne NZ DOLLAR
Source: BNZ
Country
As at 4pm July 25, 2019
Australia Canada China Euro Fiji Great Britain Japan Samoa South Africa Thailand United States
TT buy
0.9792 0.8991 4.9081 0.6173 1.501 0.5479 74.31 1.8459 9.463 21.06 0.6853
TT sell
0.9461 0.8658 4.3072 0.5905 1.3619 0.5285 71.17 1.6101 9.1165 20.03 0.6606
Disclaimer: NZX and MetService have endeavoured to ensure the correctness of the information; neither NZX, MetService related companies, nor this newspaper, nor any of their respective employees or agents make any representation as to its accuracy or reliability nor will they, to the extent permitted by law, be liable for any loss arising in any way from, or in connection with, errors or omissions in any information provided (including responsibility to any person by reason of negligence). Please note: All products and services are subject to change without notice.
The rise and rise of Britain’s new prime minister Boris Johnson has added more uncertainty to the mix for New Zealand’s trade with Britain, making swift negotiation of a free trade agreement between the two countries all the more important, special agricultural trade envoy Mike Petersen said. Johnson, the former mayor of London, was elevated to the top job this week after winning 66 per cent of the Conservative Party members’ votes to defeat Jeremy Hunt. But with a wafer-thin majority in the House of Commons, Johnson still faces a challenge to see Brexit – Britain’s exit from the European Union trading bloc – through. Johnson favours a “hard Brexit” that will take the United Kingdom completely out of the EU and out of the single market. Both New Zealand and Britain have committed to launching negotiations on a free trade agreement as soon as Britain is in a position to do so after Brexit. The United Kingdom is New Zealand’s fifth-largest trading partner, with two-way trade worth almost $6 billion. Prime Minister Jacinda Ardern said she had congratulated Johnson via text message and was sure he would want to discuss the trade negotiations. Ardern said New Zealand’s relationship with Britain was important and would remain so, irrespective of the outcome of Brexit. Petersen, whose role is to advocate for New Zealand’s agriculture trade interests from the perspec-
Jacinda Ardern tive of a practising farmer, told the Herald that with Johnson as prime minister the chances of a “no-deal” Brexit had risen significantly. “If a no-deal exit does happen, then that is quite problematic – not just for us but for the EU as well,” he said. “It will be disruptive, there is no doubt about that,” he said. An orderly transition would be better for New Zealand, Petersen said. “On the plus side, if there is a nodeal Brexit then yes, it will be messy, but it will increase the urgency for us to negotiate our free trade agreement with Britain. “It will allow us to immediately start negotiating with Britain, so that is a positive to be taken from a no-deal scenario,” Petersen said. For the New Zealand’s sheepmeat trade, Brexit was a potential risk to an otherwise strong export sector,
Rabobank animal proteins analyst Blake Holgate said. “US demand for sheepmeat should remain firm off the back of a prolonged period of US economic expansion which has led to increased rates of red meat consumption and more disposable income to spend on expensive products like red meat,” Holgate said. A weaker New Zealand currency was another factor anticipated to play into the hands of New Zealand sheepmeat producers. “Brexit is a further downside risk as it’s still unclear how this will play out and affect demand for New Zealand lamb over the coming 12 months,” he said in a mid-year commodities outlook. New Zealand’s wine export trade to Britain has been strong but there was risk of becoming caught in the crossfire of any trade war between Britain and the EU, NZ Winegrowers chief executive Philip Gregan said. “The interruption of trade potentially will be between Britain and the EU,” he said. “As a third party, the risk for us is that we get caught up in any difficulties that could occur.” Much depends on what happened in the leadup to the October 31 Brexit deadline, Gregan said. As a third party, the risk for us is that we get caught up in any difficulties that could occur. Britain remains an important export destination for sheepmeat, although its significance has diminished in recent years. In the 2017/18 production year, New Zealand exported more than $2b in sheep and beef products to the EU and Britain.