NZ Herald The Business - 2nd March by NZME.

March 2, 2018

The little number that’s got the markets scared p3

Are these the new blue-chips?

Jamie Gray, Stock Takes, p8

Auckland loses the home-building race Economy, Brian Fallow, p10

Execs embrace mbrace a new track ck Feature, p12-13

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2 |The Business

Friday, March 2, 2018

News Inside

TVNZ unfazed by RNZ video plans P4 Mansons’ projects tally $1b-plus P5 RBNZ explains action on CBL Insurance P6 All hail Xi Jinping, ‘king of China’ P7 Changing places: Two executives taking a new career track Feature, P12-13

Regulars Stock Takes Business Traveller Economy Markets The Insider

P8 P9 P10 P20-22 P23

The Business NEWS SECTION Editor: Hamish Fletcher News Editor: Owen Hembry Email: Hamish.fletcher@nzherald.co.nz Phone: (09) 379-5050 Write: The Editor, Business Herald, Private Bag 92189, Victoria St West, Auckland 1142

FEATURE SECTION

Cow disease could cost $95m The Ministry for Primary Industries estimates the Mycoplasma bovis outbreak could cost about $95 million in tracking and tracing the spread of the disease and paying compensation to farmers, Parliament’s primary production select committee heard. MPI director of readiness and response Geoff Gwyn told politicians the ministry has budgeted $35m of operating expenditure for the response until the end of the financial year, which has seen it perform 95,000 serum tests, and believes its claims liability will be $60m. To date, the disease has been confirmed at 26 properties which form part of 43 properties under a restricted place

notice, he said. A further 55 properties have been placed under a notice of direction, and on top of that more than 670 farms are under some form of surveillance. Gwyn said the ministry has investigated ways to fast track compensation payments, including interim distributions and accepting multiple claims to help ease farmer cash flow, and has received 51 claims and paid about $2.6m to 10 of those either in part or in full. Property owners can lodge claims for any verifiable losses caused by MPI enforcing its powers. “We are mindful of the impact cash flow has on business,” he said.

It’s a process we’ve streamlined as fast as possible — the reality is we still have situations where farmers are feeling as though they’re not being compensated but in reality they’re not putting in a claim at this point. It’s pretty hard to process a claim that hasn’t been submitted.” Mycoplasma bovis was first confirmed in July on two farms in South Canterbury, marking New Zealand’s first official outbreak of a disease that is present in many other countries. Director-general Martyn Dunne told politicians the ministry is still optimistic it can eradicate the disease, but that a final decision will be made this month.

Salmon farm tips hot summer to wither profits New Zealand King Salmon says the “extraordinarily hot summer” has cut survival rates at its fish farms in the Marlborough Sounds and it expects weaker second-half earnings after profit in the first half soared 81 per cent. Profit rose to $15.7 million in the six months ended December 31 from $8.7m a year earlier, the company said. Sales climbed to $87.7m from $63.6m. Chairman John Ryder said King Salmon remains “positive about the longer-term prospects for our company” having experienced strong demand for its fish in the first half. It would give an update on the impact of the hot summer once it had done a full assessment. “Favourable growing conditions

New Zealand King Salmon says summer’s “extraordinary” heat reduced the survival rates of its fish.

during the FY2017 year allowed us to deliver additional volume to satisfy the demand,” he said. “However, the . . . extraordinarily hot summer has impacted the survival rates of our King Salmon, and this will be a principal factor behind an anticipated

Editor: Mark Fryer Email: mark.fryer@nzherald.co.nz Phone: (09) 379-5050 Write: Private Bag 92189, Victoria St West, Auckland 1142 ADVERTISING Neil Cording 027 405 3293 neil.cording@nzme.co.nz

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[drop] in profits for the second half.” Growth in sales volumes would be impacted during the second half “and into FY2019,” the company said. King Salmon will pay a fully imputed dividend of 2 cents a share, payable on March 23. — BusinessDesk

Friday, March 2, 2018

The Business | 3

US 10-YEAR BOND

HIGH: 2.941

CLOSE: 2.8660

2.7500 2.5000

LOW: 2.061

2.463

2.2500 2.0000 Mar 2017

April

May May

Sept Sept

Oct

No Nov

Dec

Jan 2018

Feb

Mar

Source: cnbc.com. Picture: 123rf / Herald graphic

3% — number spooking stocks Inflation fears sparked Wall Street correction Liam Dann

s volatility on sharemarkets continues in 2018 all the smart money is watching one key graph for direction — the yield on US 10-year Treasury bonds. One number in particular is driving sentiment: three per cent. Anything that causes yields to spike closer to that three per cent figure has been causing shares to plunge. At the start of the month it was inflation expectations that drove the yields up and sparked the Wall Street Watch: correction — shares slid The Economy Hub online more than 10 per cent. at nzherald.co.nz After recovering most of their losses shares slid again on Wednesday this week after a speech by new Federal Reserve Chair Jerome Powell pushed yields back above 2.9 per cent — shares on Wall Street fell on cue, breaking a five day winning streak. The nervousness about the shift in economic conditions has been reflected in the S&P 500 and the Dow logging their worst monthly performance since January 2016 and the Nasdaq posting its weakest month since October 2016. In New Zealand

Beginner’s guide to the bond market To help make sense of the number that’s spooking markets, here’s a beginners guide to understanding the bond market: What are bonds? Bonds are a fixed interest investment — like a bank deposit except that the investment is recorded as a promise of repayment which can be onsold on a secondary market. Why are bonds popular? For Governments and other large institutions they are a secure method of borrowing money directly from the public. Their use dates back to the 1590s. For investors they are considered a safe bet given the level of risk is tied to the quality and reputation of issuer — often a state government. the NZX has been firmer after a strong results season but still slid about 1.2 per cent for the month. This morning the US markets will be digesting another speech by Powell which has the potential to push the yield above the three per cent mark. Of course, there’s no inherent reason why three per cent Treasury yield should represent a tipping point for stocks but increasingly investors have become fixated on that level as they seek to pick the right moment to shift from equities to cash. The US 10-year Treasury has become a bellwether for market hopes

The US Government has around $30 trillion of bonds on issue. How are yields set? Generally, bond yields fall when economic conditions worsen. Economic conditions that might decrease bond yields include high rates of unemployment and slow economic growth or recession. Right now the US economy is improving and there are signs of some inflation which is causing yields to rise. But what about bond prices? That is the confusing bit. Bonds are both fixed interest investments and tradeable. Price and the yield on a bond move in different directions — so if the price falls the yield rises and vice versa — in order to keep the return on the and fears about inflation and central bank rate hikes. That means, for now, that three per cent figure controls the destiny of the world’s retirement funds — including our KiwiSaver accounts here in New Zealand. In historical context a three per cent yield is relatively low. If we look back to late 1970s and early 1980s — a time of extremely high inflation — yields spiked as high as 16 per cent. But equities markets have boomed in the low inflation, low interest rate environment of the past nine years. Now three per cent represents a new

investment in sync with the price. Why do bonds matter? Bonds determine what it costs a government to borrow. When a government issues new bonds, it has to pay an interest rate on those bonds that is acceptable to the market. Why are stock markets spooked? As bond yields rise they start to look like better value for investors with less risk than equities. Money starts to move from sharemarkets to bonds. Markets fear a tipping point which will see a major sell off from equities. Why should three per cent be the tipping point? There is no inherent reason. But it has become a point of focus for investors as they watch new economic conditions unfold. normal. As Herald markets reporter Jamie Gray told The Economy Hub video show: “There’s nothing particularly magic about three per cent . . . markets tend to focus on specific numbers but the trend is the thing,” he said. “US Treasury yields are now at four year highs, that tells you that things are really moving in a profound way.” As of last night 10-year Treasury yields were steady below 2.9 per cent. The NZX closed down 0.4 percent, to 8342.71.

4 |The Business

Friday, March 2, 2018

News

TVNZ unfazed by RNZ plans

[TVNZ is] adept at adjusting to competition.

Kevin Kenrick, TVNZ CEO

Radio chief downplays TV talk Pattrick Smellie

elevision New Zealand is unfazed by government proposals to increase funding for Radio New Zealand that will allow it to produce more video content, the state-owned broadcaster’s chief executive, Kevin Kenrick told Parliament’s economic development, science and innovation select committee. In contrast to the lobbying campaign against the so-called RNZ+ policy being mounted by private TV3 owner MediaWorks, Kenrick said TVNZ was “adept at adjusting to competition” and that its most serious competitive threats were from global heavyweights moving into on-demand video streaming that competes directly with traditional ‘linear’ television. Both state broadcasters faced the select committee yesterday for their annual review, with TVNZ having announced relatively strong earnings for the six months to December 31 on Wednesday amid signs that advertisers are tentatively returning to television as an advertising medium after a prolonged period of prioritising online, digital advertising.

Kenrick held out the prospect that TVNZ and RNZ could collaborate on the provision of broadcasting infrastructure, which RNZ’s chief executive, Paul Thompson, identified as an area of ongoing requirement for investment. However, Thompson took the opportunity to downplay repeated suggestions that RNZ+ was planning to start a rival television station to TVNZ or TV3 with additional funding that was promised pre-election by the now Communications Minister Clare Curran. That policy, now the subject of negotiations ahead of Budget decisions to be announced in May, promised up to $38 million a year in new public broadcasting funding, roughly half of which appeared earmarked for RNZ+. “It’s not about a television station,” said Thompson. Rather, RNZ was looking to extend its reach across multiple media platforms: online text, audio and video to reach more audiences with more programming in various formats. “It will be partly televisual, but not a standalone television station,” he said. — BusinessDesk

Herald audience strong in latest readership survey New Zealanders still have a strong affinity with print, according to Nielsen’s latest readership survey. The Herald on Sunday’s readership has grown from last year, reinforcing its position as the bestread and top-selling Sunday newspaper. The Herald on Sunday’s readership increased 2 per cent to 326,000 in 2017 compared with the previous year. Each reader spends an average of 42 minutes with the paper each week, says the survey. The New Zealand Herald maintained a daily brand audience of

more than one million people — a 12 per cent increase year on year. The weekly New Zealand Herald brand audience (print & online) has seen an increase of 32,000 more Kiwis since the previous period, reaching 1,588,000 people. The Herald average print issue readership is 415,000 a day, with 769,000 New Zealanders reading the Herald over a week. Wednesday, which includes Viva magazine, is the best-read day during the week. During the week, readers will spend 38 minutes each day with the Herald. The Herald is continuing to

engage with New Zealanders across multiple platforms, not just print. The Herald Facebook page receives six million engagements in a week. In addition, print readers are also keeping up to date throughout the day, checking the website and Herald app. The Weekend Herald has 466,000 readers. Weekend newspaper readers are highly engaged; on average people spend 49 minutes with the Weekend Herald on Saturday and 42 minutes with the Sunday paper. In the regions, Hawke’s Bay Today gained readers from the previous survey period.

The Herald’s Travel magazines remain strong, with 340,000 unique readers of the Tuesday and Sunday editions. NZME managing editor Shayne Currie said New Zealanders are taking their time to read and engage with newspaper and digital journalism. “To see people taking their time to read the paper in an age when everyone is time-poor is extremely encouraging. It proves New Zealanders are interested not only in the news, but the investigative journalism and specialised content that the Herald offers.”

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Friday, March 2, 2018

The Business | 5

Mansons’ projects tally $1b-plus Developer busy in Auckland CBD and fringe Anne Gibson

ew Zealand’s largest private developer, Mansons TCLM, has $1 billionplus of work on or just completed. Director Culum Manson outlined a programme of works which sought to supply much-needed new Auckland CBD and city fringe office space, from the Wynyard Quarter to Newmarket. Manson said the biggest new Mansons TCLM job was in the Wynyard Quarter opposite Victoria Park, where a tower crane is on the ex-Caltex service station site at 155-167 Fanshawe St. A $265m six star greenrated office block is rising between the Air New Zealand and Fonterra headquarters. No tenants are precommitted, so the building is on spec. “It’s the only freehold land in that area,” Manson said, referring to surrounding land being owned by Auckland Council and Tramco. James Kellow, a director of NZ Mortgages & Securities, which is part of the Manson business, said: “The operating expenses will be half those of the neighbours.” Architectus designed the eightlevel 15,354sq m building with 80

In Newmarket, Mansons is well advanced on the new $143m Mercury Energy building at 33 Broadway. Construction is forecast to be completed next January and the project has already been sold to NZXlisted Augusta Capital. At 96 St Georges Bay Rd in Parnell, work is nearly finished on a $125m project, 97 per cent leased to Asahi NZ, Harrison Grierson and a listed corporate who will take naming rights, Manson said. That office block will be finished by July. Mansons has finished the AA Insurance building on Sale St in the Victoria Quarter and sold that to an offshore pension fund, Pacific Alliance Group, for around $117m. AA is the anchor tenant. Fujitsu NZ, EziBuy NZ and WPP Group also leased space. At 17 Hargreaves St in St Marys Bay, a new $80m office project is under way. NZX-listed Gentrack has leased Watch: half that. The site is Fanshawe St project above the prominent nzherald.co.nz/business Victory Church where Fanshawe St meets the motorway. Fuji Xerox was previously on that site. At 74 St Georges Bay Rd, Mansons is building new offices for their own business, moving from next door. That Fearon Hay design is due to be finished next April and will be 2054sq m with 34 carparks.

The new Fanshawe St building will have a six-star green rating.

carparks, work started last June and is due to finish next June. Manson said its six-star rating would set a new benchmark in the sector. At 46 Albert St, which media company NZME left in 2015, a $200m-plus project is underway by EVEN Hotel Group. Mansons intends to build a $350m 10-level office building adjacent to that new hotel. The first EVEN hotel outside the United States will open on the Wyndham St

corner in 2020 in a 37-level tower, which will also include a Holiday Inn. Mansons bought the NZME site for $40m about four years ago and has already recouped most of that by onselling a portion. “We sold a quarter of it for $31m and are retaining the remaining three-quarters for development,” Manson said of the corner hotel site. An application is yet to be made to build the offices on that site, he said.

Log exports to China jump 29 per cent

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New Zealand exported a record vol- in the coming months,” AgriHQ anaume of logs to China last year as lyst Reece Brick said in his February Asia’s largest economy clamped down Forestry Market Report report titled on harvesting its own forests, and the ‘Optimism ever-present for exports’. Brick noted Chinese government future points to constant or better demand in coming months, according policies and regulations are “particuto AgriHQ’s latest forestry market larly encouraging” for the New Zealand log market. report. “China is looking at The country shipped becoming more a record 18.8 million sustainable. This has cubic metres of softalready slashed the wood logs overseas amount of logs in 2017, up 18 per being harvested cent on 2016, with from native forexports to China ests, while jumping 29 per tougher enforcecent and accountment of pollution ing for threepolicies are already quarters of the clearing out the total. number of old and New Zealand inefficient wood cemented its position as processors,” he said. China’s top source of soft“The newest announcewood logs last year, with its NZ shipped a ment has come in the form share of the market lifting record 18.8 of building regulations. As to 36.3 per cent from 34.7 million cu m of of August this year, radiata per cent. China’s overall softwood logs pine specifications will be demand for softwood logs overseas in 2017. included in the Chinese increased 10 per cent to 31 million tonnes as the country clamped Code of Design, allowing buildings to down on harvesting its own forests be designed using NZ wood grades and reduced tariffs on imported logs and sizing. The immediate impact of this change is still somewhat of an to meet demand in its local market. Upcoming changes to government unknown, but there’s no doubt it will regulations which will allow for Chin- only be positive for NZ exporters in ese buildings to be designed using the long-term.” Still, he said the New Zealand log New Zealand wood grades and sizing are likely to further stoke demand in market “is not all about China”, citing a push for more affordable housing in the future, AgriHQ said. “Virtually all information coming India that would stoke demand for out of China has pointed towards New Zealand logs. constant or better demand for NZ logs — BusinessDesk

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6 |The Business

Friday, March 2, 2018

News

$55m payment triggered move CBL Insurance breached central bank’s orders

he Reserve Bank of New Zealand says it asked for CBL Insurance (CBLI) to be put into an interim liquidation after the company paid $55 million to overseas companies, breaching the central bank’s orders. Parent company CBL Corp, an Auckland-based credit surety and financial insurance risk firm, had its stock suspended from the NZX on February 8 amid concerns from NZX Regulation about the information it

Grant Bradley tourism Average daily rates in hotels around New Zealand increased nearly 11 per cent last year as occupancy rates rose and supply remained under pressure. The average daily rate for a hotel was $190 in 2017 and occupancy was up 0.4 percentage points to 81.2 per cent, according to a report by international real estate services company CBRE. All markets achieved revenue growth per available room of more than 5 per cent except Christchurch, which was only just positive as the market struggled to drive guest demand despite a tourism boom. The CBRE report shows Queenstown was the fastest growing market last year with revenue per available room growing at 16.1 per cent. This was down from 22.1 per cent the previous year as occupancy levels plateaued. International visitors to New Zealand continued to put pressure on tourism infrastructure around the country with 3.7 million visitors coming here last year, up 6.7 per cent on the previous year. “The need for new hotels to be built in main centres is growing with most markets indicating plateauing occupancy rates as existing supply reaches natural points of saturation,” the report’s authors said. In Auckland, occupancy rates have displayed a rising trend since mid 2009 due to limited new hotel supply, increasing international visitor arrivals and an improving economy. “The current plateau in occupancy rates reflects the saturation point achieved by the market with monthly occupancy levels nearing 95 per cent in peak months.” The report said any further growth in occupancy would require increased demand in the shoulder and low-season months. One tourist operator last month said rates at premium hotels were up to double the normal amount, prompting a warning that hotels needed to ensure they were delivering value and service to match. The CBRE report said the growth in room rates in Auckland was a direct result of increases in occupancy rates. Room rates spiked during the Lions rugby tour. Since 2015 average room rates in Auckland have increased by 12.5 per cent, hitting $210 at the end of last year. However, a 4.3 per cent increase in international visitor nights in the city was not enough to offset a 5.7 per

had given the market, following engagement between it, CBL, the Financial Markets Authority (FMA), the Reserve Bank, and a number of overseas regulators with prudential oversight of CBL’s international insurance business. On February 20, CBL Insurance told the Reserve Bank it was continuing to operate despite being below the minimum regulatory solvency level. Interim liquidators were appointed by the Auckland High Court last week, and yesterday the Reserve Bank’s deputy governor and head of financial stability Geoff Bascand said the payments had been the cause. The central bank’s concerns about CBL Insurance’s

reserving policies and regulatory solvency were being reviewed with the company and through an independent investigation, and the bank had told CBL it needed approval to make any significant transactions. “CBL Insurance did not have our approval but nevertheless paid a total of $55 million to two other entities,” Bascand said. “The payments may provide some creditors of CBL Insurance with an advantage over other creditors.” In an affidavit released alongside Bascand’s statement, the bank’s head of prudential supervision Tony Fiennes said the bank believes CBLI has $750m in assets, mainly in cash and insurance receivables, and there

is serious risk the directors could further dispose of those or that overseas creditors could ask for freezing orders. CBLI paid 25 million euro, or around $42m, to Alpha Insurance of Denmark for reinsurance claims on February 16, despite the bank declining permission and ordering it not to make the payment, the affidavit says. Between Feb 8 and Feb 20, it also made other payments, with the total including the Alpha Insurance payment worth $55m. Fiennes said the company’s chair, John Wells, had acknowledged the breach for the Alpha Insurance payment, but had offered no explanation for the other payments. — BusinessDesk

Hotel rates jump 11pc with supply squeezed

America’s Cup 2021 likely to pressure hotel space Auckland could face a hotel room shortage issue during the 2021 America’s Cup event, despite plans to construct more than 3000 additional rooms. A total of 3195 hotel rooms are planned to be built by 2021 but it is likely only 2580 would be constructed in time, according to a report by CBRE. “On this basis demand is likely to exceed supply during peak times however it’s still felt the current pipeline cent decrease in domestic visitor nights. “With limited new stock entering the market in 2018 we expect the current plateau in occupancy rates to continue with more moderate ADR (average daily rate) growth expected compared with recent years,” the report said. In Queenstown saturation point had been reached and increases in occupancy was relying on growth in the low season as a monthly occupancy rate of more than 85 per cent

of hotel stock should be sufficient to cater with some additional capacity required during these periods,” Peter Hamilton, CBRE New Zealand director of hotels and leisure, said. Hamilton said he expected the residential apartment market to cater to the additional capacity needed, through the likes of Airbnb and BookaBach. The report found that previous Cup events held in 2000 and 2003 drove up hotel occupancy rates which continued was reached in six months of last year. “With limited new supply under construction in Queenstown, we expect occupancy levels to increase marginally in 2018 as the market targets guests in quiet months.” Average room rates in Queenstown were about $225 a night last year. Rotorua has continued a strong recovery. During 2017 the share of nights sold to domestic guests increased from 39.7 per cent to 47.4

even after the events had finished. During the 2003 event, there were an extra 42,560 domestic visitors to Auckland, recorded in the Domestic Visitor Survey, and an extra 214,569 room nights sold during the event — to both local and international visitors. It expects February and March to be peak months for demand in 2021 and there will likely be a significant increase in room rates during that period. — Aimee Shaw per cent. Average room rates in Rotorua have picked up since 2015 with an average annual rise of 9.2 per cent, and were about $130 a night last year. In Wellington, occupancy rates were more than 80 per cent, boosted during winter by the Lions tour and the All Whites World Cup qualifier against Peru. Average room rates were up nearly 5 per cent to $176. Room rates in Christchurch averaged $160 a night and occupancy slipped slightly to 75.8 per cent.

Queenstown was the fastest growing market last year with revenue per available room growing at 16.1 per cent.

Friday, March 2, 2018

The Business | 7

World

All hail the ‘king of China’ Xi Jinping is the world’s most powerful autocrat, write Brian Bremner and Peter Martin

hina’s decision to repeal presidential term limits marks the moment when President Xi Jinping dropped any pretence of following the rules. The move, which may extend his tenure beyond 2023, shows just how deep the cult of Xi runs in Chinese politics. His political thought was enshrined in the Communist Party’s charter alongside his name last autumn, giving Xi, 64, the same mythic status as Mao Zedong and Deng Xiaoping. His government regularly bends Chinese companies to its iron will. Just ask Wu Xiaohui, who faces prosecution for alleged fraud, and whose debt-burdened Anbang Insurance Group was seized last month by the government as it cracks down on financial risk. China’s embrace of lifetime job security for its top leader cements Xi’s status as the world’s most powerful autocrat, just as countries question the reliability of US leadership and as Russia demonstrates its willingness to subvert democratic processes. Xi’s China and President Vladimir Putin’s Russia are seeking “a world consistent with their authoritarian models,” US Defence Secretary Jim Mattis said in January. Inside China, the business terrain has shifted, and not just for deeply indebted private conglomerates such as Dalian Wanda Group and HNA Group, now being pressured by greater regulatory scrutiny to jettison billions of dollars in assets. Marriott International, MercedesBenz, Delta Air Lines, Qantas and Medtronic — all have expressed regrets for perceived slights to China in recent months to protect their business interests on the mainland. In December, Chinese billionaire Jack Ma, founder of Alibaba Group, praised China’s one-party state for the

stability it provides and backed tight control over online content, while he urged Facebook and Google to “follow the rules” if they want to be competitive in the Chinese market. Last year, Xi’s government insisted that foreign tech companies locate their servers containing local content on Chinese soil, a move that would make it easier to enforce censorship policies. “Businesspeople shouldn’t assume they’re dealing with their Chinese counterparts from 10 or 15 years ago” who were interested in profits and growth, says Zhang Jian, an associate political science professor at Peking University. “They are very different animals now . . . they have a lot of

Businesspeople shouldn’t assume they’re dealing with their Chinese counterparts from 10 or 15 years ago.

Zhang Jian, Peking University

new political calculations.” Together, China and Russia “are undermining the international order” of free trade, unfettered capital, and digital data flows “from within the system by exploiting its benefits while simultaneously undercutting its principles,” according to the US strategic review. Russia is a far smaller economic player, but punches above its weight by bullying countries such as Georgia and Ukraine. Putin has reasserted Russian interests in the Middle East by cosying up to Iran and Syria, and his government is trying to marginalise the North Atlantic Treaty Organisation military alliance. Even if you don’t fully buy the Americans’ assessment, it’s hard to argue that autocracy isn’t making a comeback. The global liberal democratic order faced “its most serious crisis in decades in 2017 as basic tenets — including guarantees of free and fair elections, the rights of minorities, freedom of the press, and the rule of law — came under attack around the world,” according to independent watchdog Freedom House. Putin has also successfully sidestepped constitutionally mandated term limits in Russia. In 2008, after eight years as President, he was appointed Prime Minister by his successor, Dmitry Medvedev. Putin

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Porcelain plates feature portraits of Xi Jinping and former leader Mao Zedong (bottom right)

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then ended elections for regional governors, extended the presidential term from four to six years, and was re-elected as President in 2012. Soon he will seek a fourth presidential term that will keep him in power until 2025. What’s changed? It’s not as if the world has abandoned democracy. The Economist Intelligence Unit’s democratic-health index in its 2017 annual review shows that half of the world’s countries are democracies to some extent — but more than half saw their scores decline according to five categories such as electoral integrity and press freedom. Then there’s the unpredictable behaviour of US President Donald Trump, who suggested Putin is a better leader than Barack Obama and called Xi “the king of China”. He’s also a fanboy of other strongmen, including Philippine leader Rodrigo Duterte (“unbelievable job on the drug problem”) and Turkish President Recep Tayyip Erdogan (“a friend of mine”). In his first year, Trump has withdrawn the US from the TransPacific Partnership and the Paris Agreement on climate change. He has threatened to renege on the Iran nuclear deal, a free-trade agreement with South Korea and the North American Free Trade Agreement. America’s standing in the world has plummeted, according to a Pew Research Centre survey published last summer of 33 nations assessing the US’ image as a global leader. It fell from 64 per cent at the end of the Obama presidency to 50 per cent under Trump — versus 48 per cent for China, which backs the Iran and Paris deals. Xi is a true believer in the Chinese system, and the end of term limits means he may be in it for the long haul. But making himself the centre of everything could also be risky. His anti-corruption campaign has made him enemies in China’s most powerful political and business circles, while the sidelining of his peers makes him the only plausible culprit if the economy tanks. For now, though, Xi rules. Abroad, he’s building Chinese influence. At home, he is rooting out corruption and committed to remoulding the Communist Party in his own image. — Bloomberg

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8 |The Business

Friday, March 2, 2018

Stock Takes

Jamie Gray

jamie.gray@nzherald.co.nz

High-yield story takes a knock

Fletcher and Sky TV disappoint

he New Zealand sharemarket’s reputation for offering high-yield, dividend-paying investments has taken a knock in recent weeks. Fletcher Building and Sky Network TV have been at the cornerstone of the whole yield story, but dismal results from both companies have changed all that. In addition, Fletcher Building will not pay an interim dividend and Sky TV’s interim dividend has been cut to 7.5 cents per share from the 12.5c final dividend it paid in September. Until recently, both were regarded as reliable, dividend paying stocks — the kind that the New Zealand market had become known for. But Castle Point Funds co-founder Richard Stubbs says recent events have changed the dynamic. “There has been quite a dramatic change in the New Zealand sharemarket,” Stubbs says. “New Zealand has been known for what you would ‘safe yielders’ — businesses that produce cash and pay dividends — and this is still the case in general,” he says. “But there have been companies — generally international players such as a2 Milk, Fisher and Paykel Healthcare and (ASX-listed) Xero — that have come to the fore,” he said. “These companies are selling to the world and they have become more dominant,” he said. Stubbs said Fletcher Building’s result could impact on its capital needs and Sky TV “is quite frankly at the absolute pointy end of disruption. We personally would not own Sky TV debt, let alone equity, and yet until now there have been investors

owning it for yield,” he said.

Changing shape According to brokers Forsyth Barr, the market’s ownership started to change shape last year. The brokerage estimates that foreign ownership of the local market peaked at a little over 50 per cent at the end of 2016, falling to 46 per cent by last September. Australian ownership of the local market has remained fairly constant — perhaps due to the Aussies’ enthusiasm for a2 Milk — but the non-Australian foreign investment in the local market fell to about 30 per cent from 35.5 per cent over those same comparative periods. Forsyth Barr senior analyst strategy, Brian Stewart, said the shift reflected a change in emphasis by international investors out of defensive-oriented, safe haven markets like New Zealand’s in favour of growth-oriented markets. “It’s a change,” Stewart says. “We certainly had one-way traffic up until last year.”

SYNLAIT $

Close=$7.78

4.80

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4.40 Mar 1, 2017

Mar 1, 2018 Source: Bloomberg / Herald graphic

site. The company’s other manufacturing site is at Dunsandel, in the South Island. Synlait’s shares last traded at $7.78, up from $6.75 at the end of last week.

Trade Me pressure

Synlait Milk’s share price took a knock when its joint venture partner a2 Milk announced a tie up with opposition supplier, Fonterra, but the stock has roared back into life on the back of its plan to establish a nutritional powder manufacturing plant at Pokeno. Synlait, in which a2 Milk has a stake — this week purchased 28 hectares of land at Pokeno to establish a nutritional powder manufacturing

Trade Me’s half year profit this week showed just how much pressure its margins have been under. The online retailer had a weaker period for earnings off its general items division amid competition from Facebook marketplace and Amazon for second hand sales. But despite the pressure, Morningstar believes Trade Me still has the ability to compete against its much bigger rivals. “Amazon and Facebook remain a

Close=$4.39

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Synlait in vogue

Keep the Boards

TRADE ME

Dec 29, 2017

threat to some degree. But the Australian online classified businesses have shown that it is possible to carve out a regional niche.” Amazon has yet to enter the New Zealand market with a local warehouse and in the meanwhile Trade Me has moved to exploit the gap by experimenting with free delivery — a move which is expected to give it a competitive advantage. “Although Trade Me is unlikely to be able to ever compete with Amazon in terms of product range, its multiple verticals mean it is likely to maintain a significant share of audience which is likely to act as a key barrier to competition.” Trade Me shares have fallen 16 per cent in the last year and closed at $4.39 yesterday.

Sweep the Boards

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Clouds are swirling over Fletcher Building which will not pay an interim dividend.

Friday, March 2, 2018

The Business | 9

Business traveller

Grant Bradley

grant.bradley@nzherald.co.nz

HIGH-FLYING RESEARCH MONITORING CLIMATE CHANGE Hawaiian Airlines is the latest carrier to join a project to measure ozone, carbon monoxide and water vapour at high altitude.

Gases are collected in sensors on the fuselage of an A330

Equipment under the cockpit sends real-time data to Europe

Ha Hawaii

Equator

Hawaiian’s Pacific-wide network, including flights to NZ, fills an important gap

Auckland Auck

Herald graphic

Hawaiian Airlines joins global project to monitor health of the atmosphere

igh in the troposphere in the middle of the Pacific, a passenger aircraft bound for New Zealand is taking readings that could be crucial in predicting our climate future. A Hawaiian Airlines A330-200 has been kitted out with about 100kg of equipment to monitor ozone, carbon monoxide, temperature and water vapour at altitudes of around 12,000m as part of a global monitoring programme. The In-Service Aircraft for a Global Observing System (IAGOS) is a European-based programme and Hawaiian’s participation fills an important missing link in the scheme, now into its 24th year. Until now, data covering the south Pacific has been missing and Hawaiian Airlines offered routes covering the mid-Pacific to the West Coast of the United States and regular trips between the Northern and Southern Hemisphere. The airline, which has been flying here for nearly five years, is this month stepping up services between Honolulu and Auckland, from three to five times a week. The instruments are installed under the cockpit and attached to probes in the front-left fuselage which perform atmospheric sampling from takeoff until the plane lands. The probes also provide information about icing conditions which may be useful in aircraft safety studies. IAGOS executive secretary Dr Hannah Clark says the real-time data collected from the aircraft complements satellite information to help build weather models ”The data will be used to help validate some of the satellite observations — it also feeds into

models for weather forecasting and modelling climate change and to look at the dispersal of pollution across the globe,” she told the Herald. Other airlines including Lufthansa, Cathay Pacific, Iberia, Air France and Air China are also involved, flying mainly in the Northern Hemisphere. The European Union-funded non-profit project’s main purpose is to monitor emissions from all human sources, including from aviation, estimated to be responsible for about 2 per cent of CO2. Weather data is crucial for airlines, especially as they plan longer routes where wind and storm trends will help them decide how far they can fly. Better modelling helps airlines cope with extreme events such as those which have hit Air New

approaches and the latitude decreases, we get a lot more,” says Clark. “Ozone in the stratosphere is a good thing as it filters out ultraviolet light.” But in the lower part of the atmosphere it is a pollutant. “Breathing it in can affect your lungs, and vegetation growth.” Clark says monitoring by airlines over Europe in August 2003 had picked up signs of a sudden and serious degradation in air quality, and a subsequent heatwave resulted in thousands of deaths. “It’s all about trying to create a model where we can predict these kinds of events so we need these observations to make sure the model isn’t doing anything ridiculous and try and improve these kinds of predictions.”

Jocelyn Turnbull says she welcomes the expansion of the programme into the Pacific. “Commercial aircraft make an excellent platform for collecting trace gas measurements, since they can easily measure high in the atmosphere where it is otherwise hard to collect samples,” she says. The Southern Ocean plays a key role in limiting the atmospheric buildup of carbon dioxide from human activities. “Yet the Southern Hemisphere atmosphere is sorely under-sampled and these new measurements will help to understand the processes that control how the Southern Ocean absorbs carbon dioxide and how it might respond in the future,” says Turnbull. Associate professor of physical and theoretical chemistry at Waikato University, Joseph Lane, says IAGOS is largely focused on Europe, where the air being monitored is polluted. “Including routes over the Pacific will provide a useful comparison to air that is comparatively Watch: pristine.” Monitoring the air The Air Transport The depletion nzherald.co.nz/business Action Group is an of ozone in the stratosphere in environmental advocacy the 1980s brought group and a spokesman says the “flying test bed” is an associated health risk from increases in valuable. “The 10 airlines UV in sunlight reaching which have been involved in the Earth’s surface. While the global IAGOS are not only helping climate production of ozone-depleting sub- scientists gain a better understanding stances has decreased by 98 per cent of the impacts of climate change — and the ozone hole has started to throughout the atmosphere, but also shrink in response — it is still hopefully can further improve some regarded as important to study. of the uncertainties surrounding aviaGNS radiocarbon science leader tion’s own contribution,” he says.

Commercial aircraft make an excellent platform for collecting trace gas measurements, since they can easily measure high in the atmosphere Jocelyn Turnbull, GNS

Zealand’s domestic network this year. The airline says it has been disrupted four times already in the first six weeks of this year, when historically it is significantly affected once or twice a year. Readings from the Hawaiian aircraft started in October and already the data has shown that as it gets closer to New Zealand there is a big increase in ozone. ”Across the ocean in tropical areas we see very low concentrations of ozone and then as the land mass

10 |The Business

Friday, March 2, 2018

Economy

Brian Fallow

brian.fallow@nzherald.co.nz

Why can’t Auckland build?

Auckland’s housing shortfall is now measured in tens of thousands of dwellings.

Picture / Bloomberg

Elsewhere in NZ, home building kept pace with population. Not in the big city.

omething is peculiarly wrong with Auckland that stops it from building housing for its rapidly growing population at anything like the rate the rest of the country manages. One of the factors, at least, retarding an adequate supply response is a chronic shortage of construction workers. These are the takeaway messages from some careful research by Andrew Coleman for the Productivity Commission, and Ozer Karagedikli at the Reserve Bank, reported in a paper “Residential construction and population growth in New Zealand: 1996-2016” (bit.ly/2FfgYaa). The pair have trawled through population and building permits data for that period which divide New Zealand into 16 regions. They back out permits required to replace old houses and maintain existing dwellings; it is the marginal increase in housing they are interested in. When they plot new residential building permits per capita against population growth rates across those 16 regions, 15 of them cluster around a line with a gradient of one in three — one new dwelling for every three additional people. The conspicuous outlier is Auckland. “Even though the population increased more in Auckland than in the rest of New Zealand put together, only half as many new dwelling permits were issued in Auckland as in the rest of the country, 153,000 versus 304,000.” If it had built at the same rate as the rest of the country in response to population growth, there would be between 50,000 and 60,000 more homes in the city. When they interrogate the data in a more subtle way, to allow for varying time lags between when the population goes up and when the buildings go up, the picture remains essentially the same: it amounts to a cumulative shortfall of 40,000-55,000 dwellings, equivalent to around 10 per cent of Auckland’s housing stock. These figures are at the high end of the range for such estimates.

1996-2016

Source: Andrew Coleman & Ozer Karagedikli

If [Auckland] had built at the same rate as the rest of the country . . . there would be between 50,000 and 60,000 more homes in the city

Officials’ briefing to the incoming Minister of Housing, Phil Twyford, put the shortfall at 45,000. Auckland Council puts it at 40,000, and the recent Housing Stocktake estimates a shortfall of 28,000 over the past 10 years. One possible explanation Coleman and Karagedikli consider is that builders in Auckland have been building unusually large houses. The building permits data also provides information on the floor area of dwellings consented. Nationwide, the average house built these days is about half as large again as in 1990. In Auckland, new builds smaller than 150 square metres have fallen from 68 per cent of the total then to 32 per cent now, while the share of those over 250sq m increased from 8 to 26 per cent. But Coleman and Karagedikli found that the data clearly show Auckland’s housing shortfall — relative to the rest of the country — has not primarily been because Auckland builders specialised in large houses. If Auckland had built unusually large houses, the average size of new houses in the city would be larger than those built in the rest of the country. In fact, at 177sq m, it was 6sq m smaller. Although the size of new housing in Auckland mirrored trends in the rest of the country, more small dwellings, primarily apartments, were built in Auckland prior to 2005, Coleman and Karagedikli found.

“Auckland’s housing shortfall was modest until 2005 but sharply accelerated when apartment building effectively ceased between 2008 and 2012.” Builders in regions with low population growth mainly had to alter the quality profile of the existing building stock, Coleman and Karagedikli said. “In contrast, builders in regions with large population increases had to cope with increased demand for larger houses from their incumbent populations, and the increased demand for houses across the whole quality distribution due to the influx of new people. “The extent that the construction industry concentrated on one quality level rather than another . . . reflects the differences between the cost of new housing and the second-hand price of old housing along the quality scale.” In other words, the combination of high prices resulting from a shortage of housing and capacity constraints in the building industry could encourage builders to concentrate on larger properties. But the drivers are the shortage and capacity constraints, not some unusual preference for McMansions on the part of Aucklanders. Coleman and Karagedikli also look at the relationship between population growth and the composition of the workforce. In regions whose population is static, builders are still needed to

Population increase

Auckland Rest of NZ

Building permits issued

Auckland Rest of NZ

499,000 462,000 153,000 304,000

maintain and upgrade the existing housing stock and build things other than housing. By backing out that base level of demand for people in the building trades, they are able to figure out how many additional building workers are required to cope with population growth. So Tauranga needs 600 more construction workers than Dunedin, even though they now have similar populations. On that basis, Auckland is about 9000 construction workers short of what it needs. Whatever other factors may be constricting construction, a lot more builders will be needed. Coleman and Karagedikli leave it at that. But diligent readers of this column may recall that a cursory analysis of the visa issuance statistics for the 2015-16 year (still the most recent tidy data available) showed that of the 193,000 work visas issued that year, only one in six was in the essential skills category. It was a similar proportion in the two previous years. The rest were for working holidaymakers, family members, seasonal horticultural workers and former foreign students. But of the 32,000 essential skills visas, only one in four was a firsttimer, implying a marginal increase of 8000 to the skilled workforce. And a startlingly low proportion — 7 per cent, or 2233 to be precise — were classified as construction trades workers like carpenters, plumbers, plasterers, tilers and painters. If you include scaffolders and builders’ labourers, the proportion rises to nearly 10 per cent. So in a year when the net migration gain — excluding the comings and goings of New Zealand citizens, which can’t really be regulated — was around 72,000, immigration contributed only a few hundred extra pairs of skilled hands to the construction workforce. The conclusion has to be that the effect of immigration on the construction sector and the housing market was overwhelmingly on the demand, not the supply, side.

Friday, March 2, 2018

The Business | 11

World

Warring couples battle over bitcoin Cryptocurrency a new weapon in divorce cases

ivorces are messy, and cryptocurrencies are helping to make them a lot more so. Virtual currencies such as bitcoin and ethereum are a new challenge for lawyers, plagued with volatility and secrecy that is extending the already painful process of dividing a couple’s assets. The rising popularity of bitcoin — and for a while at least, its rising value — means more separations involve the currency, which is difficult to trace and hard to value. The anonymous nature of cryptocurrencies potentially makes them a safe haven for spouses wishing to hide money from a warring partner. Bitcoin was created in 2009, so lawyers and judges are only beginning to witness the first instances of crypto-related splits. “Often in a divorce, one spouse is looking for a pot of gold that doesn’t exist. But with cryptocurrencies, it’s possible the pot does exist,” said Toby Yerburgh, head of family law at Collyer Bristow in London. Yerburgh said he started to get cases where partners were concerned about hidden bitcoin since the digital currency became better known last year.

Lawyers in the US and Britain are trying to get their heads around bitcoin as more clients ask what it means for their divorce. “I’m getting calls from lawyers all over the US trying to get familiar with the language around cryptocurrencies,” said California’s Peter Walzer, president-elect of the American Academy of Matrimonial Lawyers. If one side decides not to disclose or provide evidence of their holdings, the divorce process becomes more expensive and time-consuming, and could result in the partner failing to get a fair share of assets. “It’s creating another layer of distrust that we haven’t had to deal

with before,” said Jo Carr-West, a partner at London-based Hunters. Cryptocurrencies traded using an online exchange or bought with funds from a bank account can be easier to trace and value. But if a cryptocurrency is moved offline — for example, if someone transfers their digital wallet onto a USB — then it becomes more difficult. In this case, a digital forensics expert can be brought in to search through the spouse’s email to determine what transactions have taken place. This is a slow process that can cost thousands — sometimes more than the currency itself is worth. “Cryptocurrencies make things complex if you have a spouse who’s

Easier to hide than cash, but harder to value, bitcoin poses new problems for lawyers and courts.

determined to hold on to their money, same as if they were hiding assets overseas,” said Victoria Clarke, a solicitor at Stowe Family Law in the UK. But as lawyers learn more about bitcoin, they’re beginning to ask the right questions to find it. “It’s now a standard part of our discovery process,” said Jonathan Fields, a partner at Fields and Dennis in Wellesley, Massachusetts. “I will make sure I’ve got the right language and questions to ensure a partner discloses their cryptocurrencies.” Cryptocurrencies also bring the problem of valuation. In December, bitcoin hit a high of nearly US$20,000, and less than two months later, had dropped to around US$6000. This volatility makes it difficult to determine value as the price can fluctuate wildly within the course of a divorce. Although a partner could have built up a substantial crypto fortune when filing for divorce, it may have diminished by the time of settlement. One case handled by the British law firm Royds Withy King involves an original investment of £80,000 made by a spouse in November 2016. By December 2017, it had jumped to £1 million, but was later worth £600,000. Such price shifts have led lawyers to suggest that clients not worry about fixing a valuation. The best course, they say, may be to ask to split the bitcoin itself and take the chance of selling on an exchange. — Bloomberg

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CHANGING ING PLACES 12 |The Business - Friday, March 2, 2018

Friday, March 2, 2018 - The Business | 13

Some careers proceed in a straight line, but Andrea Fox meets two busine business leaders whose jobs have taken a surprising change in direction

From Fieldays to the law

From business to charity

easoned manager Mike Rolton was all set for a new career coaching rugby and cricket, when he was asked to help restructure Waikato charity St Vincent de Paul. The former Fletcher Challenge and Waikato-Tainui fisheries manager wasn’t keen: he’d just earned Waikato University diplomas in national coaching and sports management and was itching to put them to use. But he agreed to help out the moribund Hamilton-based regional charity because the job wouldn’t take long. Seven years later, he’s still there, managing a rebranded “Vinnies”, which is now a $1 million non-profit business. Vinnies depends on volunteers, but Rolton runs it strictly along business lines, with sales targets for its five op shops, annual business plans and a strategic plan for the future. When he fronts up to Waikato businesses for help, he comes armed with a solid business case and supporting figures. And those figures are grim. Demand for Vinnies’ food help in the Waikato region doubled last year, says Rolton. Vinnies provided 90,000 school lunches last year and its vans, which nightly deliver food to Hamilton suburbs, are eagerly greeted. Rolton reckons Vinnies keeps nearly 460 kids at school every week by providing lunches in response to SOS calls from school nurses or social workers. “Families keep their children off school on Mondays and Tuesdays because they ran out of money on Saturday. I’m a big believer in education. If you want to break the cycle, get them educated. You won’t break the cycle without education and it’s my

goal to do that,” he says. Contrary to popular belief, low decile schools aren’t the most in need of food support. “Most of our schools are between the 4 and 9 decile range,” says Rolton. “Poverty is not restricted to deciles 1, 2 and 3.” The demographics of the people who come to Vinnies for help have changed “dramatically” in the past four years. “When I arrived, 90 to 95 per cent were Maori and on the benefit. Now that demographic is 52 per cent, and 48 per cent are what I call the working poor and generally they’re European. “The whole thing’s changed dramatically and we’re just lucky we’ve built it [Vinnies] so strong we can still help.” Low wages and rising costs are the culprits, says Rolton. Couples who need Vinnies’ support may both be working, but just one unexpected bill like a new tyre or a power bill blowout in the winter can be enough to demolish their budget, he says. “We break our year into [demand] blocks. In January it’s school fees and uniforms. From May to September it’s power bills. After that the pressure starts about Christmas. So we budget our cashflows for the peaks to make sure we can cover them.” With Hamilton growing fast, Rolton and his team have made a strategic plan to deal with the associated rise in demand for its services. Rolton will be stepping up his presentations to businesses for help. His current mainstays for food donations and cash are Greenlea Premier Meats, ProLife Foods, Maggy’s Catering, McDonalds Hamilton, Tetra Pak, WEL Energy Trust and the DV Bryant Trust. They’ve been strong

Pictures / Alan Gibson

Jon Calder

Mike Rolton

supporters for years, but Rolton will need to widen his hunt. “Unless charities reach out to the business community, they really struggle. So my job was about building really strong relationships with key people in the market.” The strategic plan calls for a sixth op shop. Around 75 per cent of Vinnies’ near-$1m income comes from its shops. The rest has to be raised. The Catholic church doesn’t influence Vinnies’ work and hasn’t contributed because it hasn’t been asked to, Rolton says. “But we keep in touch with the Bishop ... and I think that will change.” When Rolton arrived, St Vincent de Paul had about 40 volunteers and two shops. It lacked momentum and volun-

Fletcher Timber and Fletcher Challenge. After deciding that a bank job wasn’t for him when he left school — he wanted to do a BCom at university but his dad said to get a job — at 19 Rolton became a clerk at Fletcher’s newly built Kopu timber sawmill. At 26, after support from the company to study business after hours, he became the youngest cost accountant at any of its sawmills and went on to management positions. After 14 years with Fletcher, Rolton moved his family to Hamilton for schooling, doing several management jobs before being asked by Tainui to be marketing manager for its inshore fishery business. Then followed a stint overseas while he researched inshore fisheries for his

I can make a difference to someone’s life every day of the week Mike Rolton

teers, and different activities didn’t talk to each other, he says. Revenue was about $180,000. Today, Vinnies has seven paid staff and more than 260 volunteers. Shop managers are expected to meet sales targets and must manage their volunteer staff. “Volunteers have to be motivated and you do that through communication, so I have monthly staff meetings with my managers and we lay out goals and sort out problems. I update them on our achievements and they go back and pass all that information to their staff.” Thames-raised Rolton is a long way from his career beginnings as a cost accountant and manager with then-

own interest and dabbled in online seafood commodity trading. A yearning to be a coach then took the rugby-mad Rolton to Waikato University to study sports management, a path he never quite completed. Heading Vinnies can be emotionally draining, but there’s a simple reason why Rolton hasn’t gone back to the forprofit world. “I can make a difference to someone’s life every day of the week,” he says. “To that woman who comes in here with a black eye and split lip and hungry kids. For the kids who come in in the middle of winter with clothes you could spit through and no shoes. That’s a real driver.”

aikato Inc. was startled when Jon Calder, chief executive of the Southern Hemisphere’s biggest agribusiness show, Fieldays, and the Mystery Creek Events Centre, announced he was off to head up a law firm. He wasn’t a lawyer and it was hard to think of anything that the huge $400 million-generating, non-profit Fieldays had in common with a legal practice. Very little, except “good people”, says Calder, now in his second year as chief executive of Tompkins Wake, an 86-year-old law firm with offices in Hamilton, Auckland and Rotorua and more than 100 staff. Calder, 43, arrived at Mystery Creek

SkyCity Entertainment Group and director of Telecom, leader of Sydney’s successful Olympics 2000 bid and chairman of one of Australia’s biggest law firms, was speaking at a leadership conference. “He talked about the journey his law firm had gone on to culturally change and really live their values. The way they did that was to bring in a CEO who wasn’t a lawyer and pull the thing to bits and redesign it,” recalls Waikato born and bred Calder. “I didn’t have to do that, thankfully, but that whole story about what it was like to take a law firm that was good and make it exceptional really resonated. Ever since, I’ve had in my mind a leadership role in a professional services firm.”

If you haven’t got the best people and your people don’t feel valued and rewarded and know what they’re doing . . . you’ve got problems

Jon Calder

in 2012 via executive and senior management jobs at Air New Zealand and NZ Bus in Auckland, so he’s no stranger to changing horses to progress his career. But the move to the law firm was the result of a lightbulb moment back in the early 2000s, when the young, green Air NZ manager heard an address by veteran transtasman business leader Rod McGeoch, at that time dubbed Australasia’s most influential director. McGeoch, a former chairman of

For Calder, there’s an obvious common denominator to the diverse sectors he’s taken on. “It’s all about people. It doesn’t matter if it’s planes, buses, an events centre, a law firm. If you haven’t got the best people and your people don’t feel valued and rewarded and know what they’re doing, and you’re not providing an environment in which they can be their best, you’ve got problems.” At Tompkins Wake, his job is to build on the firm’s success, marrying the “exceptional” talent of its lawyers

with strategy to deliver for clients. And having had a brush with the serious end of cancers in 2013, he’s a champion of the firm’s focus on the importance of family time and work-life balance. It can’t have been easy adjusting to the hush of legal corridors from the four-year job with the National Fieldays Society, where he pushed through structural change which spurred significant growth at Mystery Creek, while vigorously promoting Fieldays and New Zealand agribusiness. Tompkins Wake’s corridors can be quite lively, thank you, says Calder, and he can promote the firm, its people and successes to his heart’s content — he just can’t share details of their work. What has been tough has been learning to work daily as a chief executive, alongside the firm’s owners, who are its partners and shareholders, and often, its board members. But it’s Calder as chief executive who conducts their performance reviews, is the compass for their future direction and recommends how the business should operate. “One of my biggest achievements at Fieldays [National Society], and which probably made me most unpopular, was redesigning the structure of the society. We took the board from 14 to seven and co-opted a couple of directors. Almost everything had been decided by a committee of up to 40 people. “I was 38 and probably a bit of a bull in a china shop. I could see what I wanted to do. There were some good learnings there about taking people with you. Stepping into this role, I’ve gone to the extreme opposite. It’s a very different dynamic. One of the things we talk about here often is navigating these relationships where I have a partner,

who is a shareholder, a board member but also one of my key staff. We can transition those relationships on an hourly basis. “Some of the most positive and constructive conversations are when we sit down and talk about that. A partner says ‘yes, we do own the firm, and yes, I am a board member and I work as a lawyer, but you are the CEO. And if you decide as the CEO that’s what we want to do, then that’s the way we roll’.” Calder says his role works because of the quality of the partners. He doesn’t have a law degree. Does that matter? “Yes and no. When I was at NZ Bus, I didn’t want to drive a bus to be a driver but to understand the challenge our people faced every day. “Sometimes not having a law degree is hard because I can never understand the level of detail that goes into the advice we craft in the problems we solve for clients. You can understand at a high level but it’s not too different from learning the different legislation when you go from planes to buses. “There’s a set of rules that lawyers operate by and that is what I have to have an understanding of. I have to understand the world our people live in and the rules by which they are bound to operate. “But in some respects it helps not being a lawyer because it stops the waters getting muddied [with detail].” Calder says he has been “lucky” to have had such diverse leadership roles. “I certainly don’t think I’m anything special but three times someone has reached out and said ‘would you be interested in having a look at this role?’.”

CHANGING ING PLACES 12 |The Business - Friday, March 2, 2018

Friday, March 2, 2018 - The Business | 13

Some careers proceed in a straight line, but Andrea Fox meets two busine business leaders whose jobs have taken a surprising change in direction

From Fieldays to the law

From business to charity

Pictures / Alan Gibson

Jon Calder

Mike Rolton

I can make a difference to someone’s life every day of the week Mike Rolton

If you haven’t got the best people and your people don’t feel valued and rewarded and know what they’re doing . . . you’ve got problems

Jon Calder

14 |The Business

Friday, March 2, 2018

World

Better butter a hit with consumers

onsumers aren’t just eating more butter, they are also willing to pay more for it. Global retail butter sales will expand by 2.9 per cent to US$19.4 billion ($26.6b) this year, outpacing the 1.9 per cent growth in sales volumes, says market research firm Euromonitor International. Demand for butter, cream and other commodities rich in butterfat has increased after consumer perceptions were swayed by studies indicating lower health risks from consuming dairy fat and the detri-

mental effects of alternative trans fats, the US Department of Agriculture said in a report last month. “Consumers are increasingly demanding dairy products that are richer in fat as they are allowing fat, and thus also butter, back into their diets,” said Hanne Soendergaard, Arla Foods’ executive vice president of marketing and innovation. Retail butter sales in North America posted a 7 per cent compound annual growth rate from 2012 to 2017 in value terms, said a Euromonitor researcher. European-style butters are also

selling particularly well through higher-end retail stores, said Michael McCully, owner of the McCully Group, a US food and dairy consultancy. It’s not just butter that is benefiting from consumers’ renewed taste for animal fats. Danone, the world’s largest yoghurt maker, has started selling a full fat version of its Activia brand in the Nordic region, “which nobody would’ve expected to exist a few years ago,” chairman and chief executive Emmanuel Faber said last month. — Bloomberg

Plenty of potential left in Britain’s North Sea oilfields For all the talk of ageing oil fields and shrinking production, Britain is about to achieve a surprising feat: it’s on the brink of becoming a net crude oil exporter for the first time in 14 years. A handful of new projects in the North Sea that will come on stream this year will lift the nation’s crude output above 1 million barrels a day, according to JBC Energy, a Vienna-based forecaster. On a net trade basis, that will soon allow overseas sales to overtake imports, the researcher said. “There is clear potential for the UK to return to being a net exporter again,” JBC said in a research note. The potential for net exports highlights a rebound in British crude production that once seemed in permanent decline. The last year Britain shipped out more crude than it received was in 2004, according to Bloomberg calculations. Output of 1 million barrels a day would exceed the average for 2017 by almost 10 per cent. Britain pumped an average 914,000 barrels of crude a day last year,

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according to preliminary data from the Paris-based International Energy Agency. Last month, the nation was a net importer of crude by half a million tonnes. That equates to about 3.7 million barrels, or 118,000 barrels a day. North Sea production has received a recent boost from new developments, such as BP’s 130,000 barrel-a-day Quad204 and Premier Oil’s Catcher 60,000 barrel-a-day fields. BP’s Clair Ridge and Statoil’s Mariner project could add an additional 155,000 barrels a day when they start production in the first half of this year, according to JBC. There’s clearly a demand for British oil from the North Sea, where global benchmark Brent crude is produced. Refiners in the US Gulf of Mexico are now buying the most oil from the UK since late 2010 as they seek to replace lost supplies from Venezuela, where output has collapsed amid an economic crisis. — Bloomberg

Friday, March 2, 2018

In association with

Advertising Feature – The Business 15

MEETINGS • INCENTIVES • CONVENTIONS • EVENTS

AUSTRALIA’S SPIRITUAL HEART Travellers won’t need d much h coaxing wh hen th hey see th he gorgeous scenery and d must-do incentive adventures unique to the Northern Territory. By Ewan McDonald RED CENTRE

Australia’s vast Red Centre was an impenetrable frontier to tourists for hundreds of years. Nowadays, groups such as Voyages Indigenous Tourism Australia have opened this living cultural landscape to everyone, while respecting and supporting local communities and indigenous cultures. Managed by Voyages, Ayers Rock Resort is described as an oasis within the middle of Australia’s central desert region and encompasses five individual accommodation options to suit a range of requirements.

SAILS IN THE DESERT

For unrivalled accommodation, dining, relaxation and recreation, Sails in the Desert is the resort’s premium hotel, a beautiful contrast to Uluru’s raw, red beauty. Soaring white sails crown the hotel and shade the 228 8 luxury five-star rooms and suites, where gue ests can relax with a treatment at the Red Ochrre Spa, swim the expansive gumtree-lining po ool, or feast from a range of culinary temptatio ons. In-house restaurants include the interrnational, brasseriestyle Ilkari Restaurant, with itts signature dishes enlivened by indigenous flavvours, and the casual contemporary Walpa Lobby y Bar - from coffee, cake, and cocktails to light meals and night caps. The mystery, colour and wisdom of the traditional owners of the land, the Anangu people, are woven into every facet of the hotel’s modern design, including a collection of indigenous artworks. The passion behind Aboriginal art can also be discovered in the hotel’s Mulgara Gallery. Set to open in July, the Lost Camel Hotel hass found its way back to being a contemporary and fun accommodation option for guests at

the busy resort. Originally opened in 2002, it was transformed into staff accommodation a decade later, before its imminent reopening as a mid-scale, boutique-style hotel. Located in the heart of Ayers Rock Resort, and only 20 minutes from Uluru, its compact studio-style rooms are furnished in a stylish mix of Aboriginal and urban themes. Guests can soak up the sun by the pool, browse the shops or enjoy a casual meal at one of the cafes located in the Resort Town Square, just minutes’ walk away.

UNFORGETTABLE EXPERIENCE

Guests from each of the Ayers Rock Resort properties have access to an impressive spectrum of internationally accclaimed experiences in and around Uluru Kata Tjuta National Park. There are over 70 tours and activities to choose from – unique opportunities to indulge in the free, daily Ind digenous Guest Activities programme, an astrronomer’s guide to the night sky, dot painting wo orkshops, and tours of the big, red rock itself by caamel or motorcycle. The resort’s monumental solar-powered, immersive art installation, Fielld of Light Uluru by Bruce Munro, is part of its commitment to arts and culture. More than n 50,000 glass spheres bloom as darkness faalls over the spiritual heart of Australia, illum minating a remote desert area the size of nine football fields and within sight of Uluru itself. There are a range of tour options each evening, as well as a sunrise experience. Field of Light is Munro’s largest work to date. Opened on 1 April 2016, it has already deeply moved more than 200,000 guests, so unsurprisingly its season has been extended until 31 December 2020. Along with the desert, food and wine experiences take centre stage as part of a stay

at the resort, including fine dining under the stars. Two stand-out signature open-air dining experiences that mix dining with indigenous culture include the award-wining Sounds of Silence and the premium, and more intimate, TaliWiru.

TOP END

There is more to the Northern Territory than Uluru, however. Its capital city, Darwin, located at the Top End of the Territory and bordered by the Timor Sea, is fast becoming a popular destination for those seeking the right balance between excitement and relaxation. Whether you’re unwinding on the waterffront, hiking national parks or flying to remo ote areas for an outback experience, Darwin is the gateway to an experience you’ll remember. And one of its most unique is off ffered by Outback ff Floatplane Adventures. As the naame suggests, these exciting tours include a spectacular floatplane flight with aquatic landing, as we ell as an airboat tour over the wetlands and through the monsoonal rainforest. You’ll also get to relax on a billabong cruise along the pristine Sweets Lagoon, enjoy a BBQ breakfast or lunch, and havve the opportunity to encounter local wildlife. Yes, th hat means crocs! To extend the fun, book the ovvernighter and, after your afternoon tour, you’ll be escorted across the Finniss River Floodplains to the Ultimate Outtback Adventure Camp. Unwind on the deck of your secluded, luxurious safari tent, or fresh hen up in your own n outdoor shower, before makin ng your way to the e elevated dining deck. Gatherr around the fire pitt to watch the sun set over the plains, while the welcoming staff provide a go ourmet Australian BBQ for you to dine under a star-filled sky. Thiss is glamping, and the Northern n Territory, at its be est.

A group enjoys a camel ride in Uluru Kata Tjuta National Park. Picture / COURTESY OF TOURISM AUSTRALIA

16 The Business – Advertising Feature

Friday, March 2, 2018 In association with

ISLANDS OF SUN WHERE IS IT?

The 74 islands that make up the Whitsundays oﬀer a top-notch tropical sun, sand and surf experience - a perfect location to reward top achievers. By Ewan McDonald

The Whitsunday Islands float between central Queensland’s tropical coast and the World Heritage-listed Great Barrier Reef – the world’s largest living structure. The area is among the planet’s most beautiful sailing destinations, with warm turquoise waters, sheltered coves, pristine white, sandy beaches and stunning reefs to snorkel. It also enjoys mild temperatures and clear skies all year round with an average temperature of 27 degress, meaning anytime is a great time to visit. Only eight of the islands are inhabited, including the largest, Hamilton Island, which is considered the premier resort isle in the Whitsunday Group.

The Whitsundays

qualia oﬀers a range of group and event dining options.

qualia resort.

WHAT TO DO? From Hamilton Island, there’s a wide range of ways to explore the Whitsundays, be it the surrounding waters by yacht, sea kayak or windsurfer, or venturing further afield by seaplane, helicopter or high-speed catamaran. Groups can dine at leisure at one of many restaurants and cafes, or select from over 12 themed dinner and cocktail party ideas ultilising the best venues the island has to offer. Whether it’s on a beach, dock or private pool area, there will always be a stunning sunset and ocean view backdrop for guests to marvel. Despite the variety of venues, only a third of the island is developed, which means the rest remains in its unspoiled, natural state. You can explore the island’s beauty on one of more than a dozen walking trails that cover over 20km, but watch out for the golf buggies. They stand in for cars as the island’s main form of transport, along with daily complimentary island shuttle transfers, or pre-booked private group transfers. For a fun group activity why not consider the Buggy Rally – an ‘Amazing Race’ style adventure that’s a cross-island treasure hunt. Along with its unique location, Hamilton lsland has the largest business event facilities in the region with the ability to cater from 10 to 1000 delegates, offering the perfect setting for incentive groups. It’s a one-stop destination so planning is made easier. As all accommodation, venues and facilities are within close proximity, your group is always close by while having the freedom to explore. With its own commercial airport, access is easy. Kiwis can fly from any of the country’s international airports to Hamilton Island via Brisbane, Cairns, Sydney or Melbourne. There are also 30-minute boat transfers from Shute Harbour or Airlie Beach on the mainland.

A a

Friday, March 2, 2018

The Business – Advertising Feature 17

In association with

AND LUXURY WHERE TO STAY ? qualia

A room with a view at qualia.

For premium luxury, there’s nothing comparable to qualia, a unique Australian expression of a world-class resort, situated on the secluded northern-most tip of the island. qualia can be translated as “a collection of deeper sensory experiences” in Latin, which perfectly describes this ultimate incentive destination that provides the perfect reward for top achievers. With its focus on bespoke, luxury experiences found nowhere else on earth, qualia has earned its outstanding reputation. And it won’t be surprising to learn the resort has also been recognised by both Condé Nast Traveler US and UK. Guests can rest easy knowing they’ll not only feel rewarded during their stay, but will leave feeling refreshed and inspired. How many resorts will have you cuddling a koala, joey or exotic reptile during your welcome reception, or give you the opportunity to take in an unforgettable sunset during dinner on your own island at the Hamilton Island Golf Club? Return during the day, and you’ll discover one of the world’s most spectacular settings for a round of golf on an 18-hole course, just minutes away by ferry or helicopter. Designed by Aussie legend Peter Thomson, it’s the only championship golf course on an Australian island; it’s located on neighbouring Dent Island. Other experiences include taking in the wonders of the region aboard a luxury motor cruiser before arriving at Whitehaven Beach – its 7km of glistening white sand named the world’s best beach in 2010for a gourmet Australian barbeque, or being whisked away by seaplane or helicopter to take in a bird’s eye view of the Great Barrier Reef, its countless shades of turquoise, and the iconic Heart Reef. Back at the resort, you’ll be impressed by exclusive facilities including a private beach, two infinity-edge pools, and an extensive range of glorious treatments at a sanctuary called Spa qualia. Executive chef Craig Knudsen interprets the Australian identity within his culinary creations for the two resort restaurants - Long Pavilion for fine dining and Pebble Beach for relaxed waterfront dining or afternoon drinks. Bespoke and private dining options are available, or why not dine under the glittering stars with a backdrop of the Whitsundays, and gentle sea breezes. There is also a gymnasium, a library housing rare and limited edition books, and a business centre so you can feed the mind as well as the body.

Pictures courtesy of Tourism Australia

Reef View Hotel

REEF VIEW HOTEL Stay at Reef View Hotel, and you’ll work out how it got its name. The views to the Whitsunday Passage from the Coral Sea View rooms are among the best in the world – even the view from the glass lift is fabulous. With over 364 spacious rooms and suites, you can really go to town on the size of the group. The multi-purpose Conference Centre is only a short walk away. For smaller, on-site catch-ups, the Chart Room is located on the ground floor of the hotel. During downtime, Catseye Beach is only a stroll away.

BEACH CLUB Other resorts a little closer to the action include the Hamilton Island Resort Beach Club, Yacht Club and Villas, and Reef View. It’s all in the name for the boutique Beach Club– if you were in any doubt, the hotel does have an absolute beachfront location, with every one of its 57 rooms facing directly onto Catseye Beach. Set in landscaped gardens, each room also has its own private courtyard or balcony. Described as intimate beachfront accommodation, Beach Club is adults-only, and offers a VIP experience for incentive groups. To gather the group together, the newly renovated Endeavour Room is located just a few steps from the beach, and offers a picnic-style lunch in the garden area, called Shady Creek Lawns, or head beachside with a rug under a palm tree.

HAMILTON ISAND YACHT CLUB On the opposite side of the island is the Hamilton Island Yacht Club. Designed by Australian architect Walter Barda, the Club provides a business event venue like no other in the country. Venues include the Ketch Room with its stunning floor to ceiling windows and views across the water to Dent Passage, a state-of-theart auditorium, plus a private dining room for banquets or cocktail events. Adjacent, the Yacht Club Villas were also designed by Barda, with landscaping crafted by celebrity designer Jamie Durie. They offer luxury waterfront self-catering accommodation with breathtaking sea views over Dent Passage. Designed for privacy and space, each villa spans three to four levels and can accommodate up to eight guests. Located alongside the 240-berth marina, they are within easy reach of the island’s restaurants, bars, entertainment and attractions such as Spa wumurdaylin, which can be booked sole use for groups.

18 The Business – Advertising Feature

Friday, March 2, 2018 In association with

MELBOURNE REWARDS

Australia’s most liveable city is also becoming the destination of choice for forward-thinking businesses when it comes time to reward and motivate their staff. By Venue editor Greg Fleming

lready its event capital - with the Australian Open, Melbourne Cup and this month’s Formula 1- Melbourne and the surrounding Victoria region offers incentive groups a bewildering range of destinations and activities, great food and growing infrastructure. And tasked with procuring international business events that go above and beyond for clients is The Melbourne Convention Bureau. “We work to showcase and give Melbourne a genuine point of difference for incentive planners and delegates,” says Melbourne Convention Bureau CEO Karen Bolinger. She says that there’s no shortage of incentive group activities across Melbourne and regional Victoria to select from, whether it be a group of 50 or a thousand. “In the city, delegates can kayak along the Yarra River, walk on the hallowed turf at the iconic Melbourne Cricket Ground, participate in an Aboriginal heritage walk and smoking ceremony at the Royal Botanical Gardens, or play tennis on the Australian Open championship courts at Melbourne Park.” The MCB can organise an event around one of our many major events such as the Melbourne Cup Carnival, Australian Grand Prix or Australian

Open Tennis Championship, and integrate these events into their program. One of the more unusual events they organised recently involved a hundred Chinese Square Dancers perform on the front lawn of Flemington During the Melbourne Cup Carnival in front of over 603,000 people. Another incentive group enjoyed a progressive dinner through the city’s streets and laneways. “Our role is to bring this all together and add the extra something, that delivers a compelling reason for planners to choose Melbourne. Our point of difference is our ‘Team Melbourne’ approach where we collaborate with Government and partners across the industry to deliver a bespoke program that can’t be replicated elsewhere. “All of our bids whether they be for association or incentive business are tailor made and specific to the client. There is no such thing as a one model offering anymore.” INCREASED CAPACITY

Melbourne’s capacity for conferences will get a boast in July when the Melbourne Convention and Exhibition Centre expansion opens for business. The new space will directly connect with the existing Convention and Exhibition Centres, growing MCEC’s total size to more than

Jackalope is a stunning new boutique hotel in Mornington Peninsula. Pic supplied

70,000 square metres, making it the largest convention and exhibition centre in the Southern Hemisphere. “The state has an outstanding track record of hosting some of the world’s most prestigious incentive events, which would not be possible without our modern infrastructure, accessibility, convenience and thriving culture,” says Ms Bollinger. And more experiences are just an hour’s drive through picturesque regional Victoria, where delegates can experience up-close viewings of the Little Penguins at Phillip Island, pan for gold at Sovereign Hill, take a helicopter over the Twelve Apostles along the Great Ocean Road, experience Australian farm life by shearing a sheep or float in a hot air balloon over the stunning Yarra Valley wine region. HOTEL BOOM

To the south Mornington Peninsula’s new 45 room Jackalope - set among 11-hectares of lush vineyards - gives incentive planners

a new option in luxury accommodation within driving distance of Melbourne. The hotel - named Gourmet Traveller’s Australian Hotel of the Year in 2017 - has a dedicated conference and events department and a focus on fine locally sourced food. Thanks to its increasing popularity Melbourne is experiencing a hotel boom with plans for more than 8,500 rooms across the city within the next five years, increasing room stock by 50 per cent. At least 18 major hotels are being proposed or under construction to date, with most of these within the CBD and city precincts. “We make the effort to understand our partners’ business inside out,” says Ms Bollinger. “We listen to what our clients want from their business event in Melbourne. We deliver, not just an outstanding event, but one that makes a long-lasting difference and delivers the business outcomes the client is seeking.”

This month Melbourne hosts the Formula 1 Grand Prix. Pic Getty

Melbourne is Australia’s event capital and a growing destination for business incentives. Pic Tourism Australia.

Bitcoin, blockchain and beyond PwC Herald Talks is back for 2018. Aaron McDonald, CEO and Co-founder of blockchain tech company Centrality, will share his knowledge and insights on cryptocurrencies and the prospect of a cashless society, as we look at The Future of Money.

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Wed 21 Mar, 7-9am, SKYCITY Theatre, Auckland | Thu 22 Mar, 7-9am, The Piano, Christchurch T H A N K S T O O U R PA R T N E R S

The Business | 19

HHM 217 03/18

Friday, March 2, 2018

This is Melanie. Heritage has a range of unique venues throughout New Zealand. She likes that. Let us take care of all the details of your next business event so that you can focus on the meeting and greeting.

Contact Shelley and the team to chat through all the ways we can help you get more out of your meetings, conferences and events in one of our 15 iconic locations nationwide.

Phone +64 9 979 7525 Email: ShelleyE@heritagehotels.co.nz Visit: heritagehotels.co.nz/events/conferences

20 |The Business

Friday, March 2, 2018

Markets 0800 102 100

Personalised Investment Advice

7000

8125

6000

8000

5000

Rises

Falls

102

Mar 18

Share name

Dec 17

Jun 17

-31.11

Sep 17

8250

Mar 1

8000

Feb 23

8375

Sky Network Air NZ Spark NZ Promisia Chorus SeaDragon NZ Windfarms Aorere Trade Me Group Ltd Kiwi Prop

Feb 16

9000

Feb 9

8500

Feb 2

Top 10 TURNOVER

8342.71

▼

A disclosure statement is available on request and free of charge

Last TWELVE months

Mar 17

NZX50

Last FOUR weeks

www.spicers.co.nz

Issues traded

Volume traded

Value traded ($)

201

46.24m

133.88m

s Ofﬁcial market statistics provided by the NZ Exchange. Closing data compiled at 5.30pm yesterday.

4,235,709 2,592,291 1,996,622 1,468,730 1,463,383 1,062,215 1,059,018 1,000,000 997,758 954,850

Top 10 VALUE

Share name

Fishr&Paykl Health Sky Network a2 Milk Air NZ Spark NZ Fletcher Building Chorus Trade Me Group Ltd Synlait Milk Ltd (NS) Contact Energy

Dollars

12,922,170.46 10,568,155.60 9,273,995.60 8,544,830.62 6,702,005.16 5,781,983.69 5,473,422.07 4,374,767.08 3,978,401.46 3,672,694.42

01/03

Biggest 10 RISES Share name

Percentage

SLI Systems Ltd Ords QEX EvolveEduc Tower TIL Logist AusDivFund Seeka Kiwifruit Methven NZX Limited Aus Fin Fund

7.69 6.06 5.66 3.67 3.62 3.30 2.76 1.90 1.90 1.80

Biggest 10 FALLS

Share name

Percentage

AWF Madison Smiths City AFT Pharm NZ Oil & Gas CDL Inv PGG Wrightson Sky Network NZ King Salmn Kathmandu Vista Group

11.01 8.33 5.85 4.41 4.25 3.17 2.76 2.51 2.22 2.17

Shares join regional sell-off

Kiwi trades above A93c

ew Zealand shares joined a regionwide sell-off with Asian equity markets following Wall Street lower as global investors second-guess the outlook for US interest rates, and as local analysts absorb a “pretty good” earnings season. Sky Network Television fell for a second day. The S&P/NZX 50 index fell 31.11 points, or 0.4 per cent, to 8342.71. Within the index, 28 stocks declined, 15 gained, and seven were unchanged. Turnover was $113.3 million. Stocks across Asia declined, with Australia’s S&P/ASX 200 index down 0.8 per cent in afternoon trading and Japan’s Topix down 1.3 per cent, following Wall Street lower as investors prepare for Federal Reserve chair Jerome Powell’s second congressional testimony, where they’re seeking clues on how quickly US interest rates will rise, which reduces the appeal of equities. That comes as the local company earnings season winds down with most results falling in line with expectations, which supports the current price-to-earnings ratio at 18.5. The two biggest surprises in the reporting period were a2 Milk Co, which more than doubled first-half profit and entered into a supply deal, while Fletcher Building unveiled wider construction losses in its Buildings + Interiors unit. A2 shares fell 1.1 per cent to $13.09 and Fletcher dropped 1.2 per cent to $6.43. “Earnings season looked to be pretty good, skewed by two significant

The New Zealand dollar rose against the Australian dollar after domestic terms of trade data surprised on the upside while Australia’s private sector capital expenditure fell short of expectations. The kiwi continued to lose ground against the greenback. The kiwi traded at A93.18c at 5pm yesterday versus A92.72c on Wednesday. It traded at US72.04c versus US72.24c on Wednesday. According to the Australian Bureau of Statistics, capex fell a seasonally adjusted 0.2 per cent in the final quarter of last year versus expectations for a rise of 1 per cent. Meanwhile, New Zealand’s merchandise terms of trade rose to a record in the fourth quarter after export prices outran imports as the value of trade in both directions rose. The kiwi benefited against the Aussie when “the capex disappointed slightly and the terms of trade was better”, said Tim Kelleher, head of institutional foreign exchange sales at ASB Bank. The New Zealand dollar continued to fall against the US dollar as the greenback benefited from Federal Reserve chair Jerome Powell’s optimistic assessment of the US economy on Wednesday, which stoked speculation the Fed may be more aggressive in hiking interest rates. “I would call it just grinding lower,” said Kelleher. He said the kiwi has strong resistance at US71.75c, this year’s low. The kiwi traded at 59.07 euro cents from ¤59.08c on Wednesday. It traded at 52.37 pence from 51.97p. — BusinessDesk

>> The Dollar Trade Weighted Index

01 MARCH: 74.35

Outdoor clothing company Kathmandu Holdings fell 2.2 per cent to $2.20.

>> Interest rates

76 74 72

The NZ dollar (Trade Weighted Index): Yesterday 74.35 -0.05 Primary Exchange Rates on the NZD: Currency Close Move US Dollar 0.72 -0.002 AUS Dollar 0.931 +0.003 Euro 0.59 -0.001 Japan Yen 76.88 -0.53 UK Pound 0.523 +0.004 Buy/Sell Rates on the NZD Yesterday: Currency Buy Sell Australian Dollar 0.9500 0.9164 US Dollar 0.7365 0.7085 Euro 0.6055 0.5802 Pound Sterling 0.5350 0.5153 Japanese Yen 78.66 75.36 Canadian Dollar 0.9454 0.9092 Swiss Franc 0.6952 0.6674 Danish Krone 4.5040 4.3056 Fiji Dollar 1.5192 1.4250 Hong Kong Dollar 5.7482 5.5369 Indian Rupee 47.8499 45.6862 Sri Lanka Rupee 114.9379 108.3372

names — one on the plus side and one on the downside,” said James Lindsay, a portfolio manager at Nikko Asset Management, which this week was named Morningstar’s New Zealand fund manager of the year. “With the end of reporting season, there wasn’t a lot to drive prices. A lot of the market continues to wait to see what Fletcher Building announces with regard to the US private placement market debt.” Fletcher announced it was granted a waiver by the US private placement noteholders after trading had closed. Sky TV led the market lower, falling 2.8 per cent to $2.46, adding to Wednesday’s 9.6 per cent decline when the pay-TV operator slashed its dividend and lowered the price of its entry-level service. New Zealand Rugby yesterday unveiled a return to profit in 2017, and chief executive Steve Tew said he’s keen for two or

3 MONTHS

Close 0.773 1.219 0.886 106.81

Norwegian Krone 5.8334 PNG Kina 2.4457 Philippine Peso 38.7553 Solomon Is Dollar 6.1489 Swedish Krona 6.1036 Singapore Dollar 0.9741 Thai Baht 23.3523 Vanuatu Vatu 81.02 Samoa Tala 1.8791 CFP Franc 71.83 South African Rand 8.6875 Tonga Pa’anga 1.6508 Source: ANZ

5.5759 2.0742 36.4224 4.9413 5.8503 0.9358 21.9645 72.82 1.7005 68.33 8.3033 1.4711

>> London

)

1.96

1400

1.92

1300

1.88

Move -0.006 -0.003 +0.007 -0.38

— BusinessDesk

>> Metals & Oils 3 MONTHS

90-Day Bank Bills (%)

World bank bill rates yesterday: Yield %

US 90 Day

1.657

US 10yr Bond

2.866

US 30yr Bond

3.131

Aus 10yr Bond

2.744

UK 20yr Gilt

1.901

Ger 10yr Bond

0.655

Japan 10yr Bond

0.047

Change 0.00 0.00 0.00 0.00 0.00 0.00

7400

11250

Change -0.013 -0.042 -0.037 -0.05 -0.057 -0.019 0.00

8500

3 MONTHS

Metals

DAX

28 FEBRUARY: 12,435.85 14000

7000

28 FEBRUARY: 1,317.66

NZ rates at close yesterday: Yield % 90 Day Bank Bill 1.95 180 Day Benchmark 1.99 2 Year Benchmark 1.8 5 Year Benchmark 2.45 10 Year Benchmark 2.97 US Prime Bank 3.75

>> Frankfurt

7800

Gold ($US)

01 MARCH: 1.95

FTSE-100

28 FEBRUARY: 7,231.91

1200

3 MONTHS

Cross Rates: Currency AUD/USD EUR/USD EUR/GBP JPY/USD Source: Reuters

three bidders in negotiations for the 2021 broadcasting rights, which are currently held by Sky. “Sky’s made its first attempt, and I don’t think it’s the end of it for it at trying to reduce the subscription losses and going into those negotiations for when the rights run out. It’s probably better that it’s in a good solid position as far as the number of customers,” Lindsay said. “The dividend cut is a very well thought out strategy as far as getting the corporate entity right-sized as far as debt going into those negotiations.” Kathmandu Holdings fell 2.2 per cent to $2.20 and SkyCity declined 2.1 per cent to $3.82. NZX was the best performer on the day, rising 1.9 per cent to $1.07. Metro Performance Glass gained 1.2 per cent to 84c and Tourism Holdings advanced 1 per cent to $6. Outside the benchmark index, Tower rose 3.7 per cent to 70.5c after the insurer’s board said it will resume dividend payments in the 2018 financial year, having settled a dispute with reinsurer Peak Re on Wednesday. The company told shareholders at yesterday’s annual meeting in Auckland it had boosted gross written premium 14 per cent in the first four months of the year. AWF Madison Group sank 11 per cent to $2.02 after the contract labour firm warned profit would fall on softness in labour hiring and delays in mobilising its migrant workforce to meet pent-up demand in the Auckland construction sector.

3 MONTHS

>> Paris

CAC 40

>> New York

Yesterday 5pm ($US) Price Gold (ounce) 1,317.66 Silver (ounce) 16.405 Palladium (ounce) 1,042.24 Platinum (ounce) 983 Aluminium (tonne) 2,153.5 Aluminium Alloy (tonne) 1,860.5 Copper (tonne) 6,894.5 Lead (tonne) 2,496 Nickel (tonne) 13,800 Tin (tonne) 21,640 Zinc (tonne) 3,477

Change -0.48 -0.015 +6.79 +0.10 -18.00 +25.00 -91.25 -80.25 -85.00 -180.00 -40.50

Oil ($US a barrel)

Price

Change

34000

25000

WTI Cushing WTI Sour Light Louisiana Brent Crude

61.42 59.78 63.71 65.76

-1.51 -1.31 -1.43 -0.74

27000

20500

20000

28 FEBRUARY: 5,320.49

28 FEBRUARY: 25,029.2

5600

27000

4800

25000

4000

DOW JONES

23000

3 MONTHS

>> Hong Kong

3 MONTHS

Hang Seng

01 MARCH: 30,780.46

>> Tokyo

Nikkei

01 MARCH: 21,700.32

16000

3 MONTHS

Friday, March 2, 2018

The Business | 21

New Zealand 0800 102 100

Personalised Investment Advice Share Code

NZX Market Shares

Closing quotes Buy Sell

Last Sale

Move

1000s Sold

a2 Milk Abano AFTPharm Air NZ AlliedFarmrs AMP ANZ Aorere Argosy Arvida ASB No.2 Pref ASB Pref AsiaPacFund AuckAirport Augusta Cap Aus Fin Fund Aus Found Aus Mid Cap Fund Aus Res Fund AusTop 20 Fund AusDivFund AusPropFund AWFMadison Bankers Inv Barramundi Blackwell BLISTech Briscoe Grp Cavalier Corp CBLCorporation CDLInv Chorus City of Lond Inv Colonial Motor Comvita Contact Energy

1306 930 225 330 10 559 3050 .1 102.5 120 89 92.6 205.6 640 104 782 647 694.6 431.3 359 163.8 129.8 201 1670 60 1 1.6 346 49 87 372 781 766 780 525

1309 1309 933 933 239 225 331 331 10.5 10 575 563 3110 3080 .2 .2 103 102.5 121 121 89.9 89.9 93.9 92.4 206.1 205.6 641 640 105 106.5 793 796 658 653 698.6 694.6 442 436 365.2 359 168.5 168.8 131.2 129.3 227 202 1690 1680 61 60 1 1.8 1.6 349 349 53 49 317 90 90 373 373 785 781 770 770 790 780 528 526

-14 -14 +2 +.5 -7 -60 -1 -1 -.1 +.4 -1.4 -5 +14.1 -2 -14.2 -8.1 -8.6 +5.4 -25 -20 +6 -4 -1 -16 -4 -2

706.524 9.2 8.7 2592.291 11 10.714 2.665 1000 411.181 173.5 117 31 139.243 309.094 12.603 2.5 16.511 9.025 60.35 33.981 32.547 82.75 1.105 54.629 152.027 20.374 108.841 30.825 1463.383 8.8 1 10.92 696.782

1462 1020 285 361 12.5 583 3585 .2 110 137.5 90.9 93.9 214.2 743 110 865 710 725 476 383.2 179 146.7 305 1756 64 1.1 4.6 454 65 380 96 477 845 798 921 585

233 808.6 216 222.5 6 500 2850 .1 96 115 74 77.9 180 602 99 753.4 588 604.6 330.1 333.3 159.6 126.5 195 1308 57 .5 1.5 312 27 275 78 367 717 720 515 480

46.03 29.17 .28 31.34 194.57 7.55 6.1 3.07 3.39 2.57 28.47 7.64 39.11 29.12 13.05 10.28 13.1 7.41 5.68 22.5 34.55 5.61 25.69 4.86 4.17 29.17 31.92 61.11 2.78 34.94

DGL EBO EMF MAD ERD EUF EVO FIN FPH FBU FCG FSF FCT FRE FMS

Delegat’s EBOS Group Emerg Markts Fund Energy Mad EROAD Ltd Europe Fund EvolveEduc Finzsoft Solutions Fishr&Paykl Health Fletcher Building Fonterra Fonterra Shrhlds Unts Foreign & Colonial Freightways Future Mobility

801 1775 131.5 .3 350 163.2 53 250 1366 639 598 597 1238 735 14

810 1780 132.5 1.7 360 164.2 56 270 1375 648 613 599 1260 747 14.1

810 1775 132 .3 350 163.2 56 254 1375 643 598 599 1238 735 14

-1.8 -5 -2 +3 -5 -8 -1 -1 -4 -3 -.1

2.595 48.107 231.504 38.95 179.833 115.476 940.905 899.099 101.141 205.582 1.2 24.218 6.7

810 1890 140.3 2.8 399 173.9 111 271 1449 978 668 666 1271 819 20

615 1655 110.9 .1 161 144 52 240 920 639 589 588 980 698 10.3

GNE GTK GBF GMT GXH HLG HBL HFL IKE IFT IPL JPG

GenesisEgy Gentrack Grp Glob Bnd Fnd Unt Goodman PropTst Green Cross Health Hallenstein Glasson Heartland Bank Hendrsn Far East ikeGPS Grp Infratil Investore JPMorg GlobGrth

233 630 312.7 132.5 161 460 181 702 36.5 309 136 617

234.5 638 312.9 133 170 462 183 725 37.5 310 137 630

233.5 630 312.9 133 160 462 182 709 37.5 310 137 617

-2.5 -12 -.2 +1 -2 -2 +.5 -1 -3

612.351 36.774 114.341 255.061 46.014 35.944 663.866 3.92 223.251 881.649 .836

262 695 316.7 140 246 491 214 742 43 337 149 649

KMD KFL KPG MFT MLN MMH MWE MGL MCY MEL MVN MET MPG MHJ MCK MOA

Kathmandu Kingﬁsh Kiwi Prop Mainfreight Marlin Global Marsden Mari MarWineEst Mercer Group Mercury NZ Meridian Energy Methven Metlifecare Metro Perf Glass Michael Hill Millennm&Copthrn Moa Ord Shrs

218 133 133 2410 85 540 39 318 278.5 105 586 83 118 286 46

220 134 133.5 2418 86 560 25 46 321 280 107 589 84 122 288 50

220 133 133.5 2410 85 560 25 39 320 278.5 107 588 84 118 288 46

-5 -1 +.5 -5 -1 +3 -1.5 +2 -7 +1 -1 +2 -1

53.618 59.652 954.85 21.781 9.3 .635 931.844 768.935 141.412 159.223 157.518 13.1 9.8 33.698

NTL NPT NZB NZC DIV NZK MDZ NZO NPF NZR TNZ FNZ NWF NZM NZX ONL OCA OHE PEB PGW PLX POT PCT PIL

NewTalisman NPTLtd Ord Shares NZBond Fund NZCash Fund NZDiv Index Fund NZKing Salmn NZMid Cap Fund NZOil & Gas NZProp Fund NZReﬁning Co NZTop 10 Fund NZTop 50 Fund NZWindfarms NZME Ltd NZXLimited Oceania Nat OceaniaHlth Orion Health Paciﬁc Edge PGGWrightson Plexure Group Port ofTauranga Precinct Prop Promisia

1.5 58 301.8 298.2 105.7 193 465.9 62 106.7 239 150.2 241.6 12.3 76 106 99 80 38 61 17.5 508 127 .8

1.6 59 302 298.4 106.6 195 471 67 107.2 241 151.8 243.2 12.7 77 107 100 81 40 62 18 509 127.5 1.2

1.5 59 302 299.5 106.1 194 471.2 65 107.3 239 150.5 243.2 12.3 77 107 142 99 80 38.5 61 17.5 509 127.5 .8

-.1 -.5 -5 +.4 -3 +.6 -1 -.4 -.9 -.4 +2 -2 +1 +.5 -2 -.4 -1 +.5 -.2

570 130.399 135.781 82.616 240.981 609.712 95.558 91.469 156.949 259.077 98.627 540.531 1059.018 84.204 173.518 287.883 31.211 94.634 297.829 113.307 133.708 908.366 1468.73

A-C

ATM ABA AFT AIR ALF AMP ANZ AOR ARG ARV ASBPB ASBPA APA AIA AUG ASF AFI MZY ASR OZY ASD ASP AWF BIT BRM BGI BLT BGP CAV CBL CDI CNU TCL CMO CVT CEN

D-F

G-J

K-M

N-P

52-week High Low

Dividend CPS t/c

Yld%

P/E Ratio

1.32 1.52 4.20 1.02 .74 1.42 3.22 12.91 1.46 1.45 3.59 .95 8.94 2.60 1.33 1.02 7.84 1.82 1.50 2.95 3.87 1.08 3.01 1.68 61.61 .60

4.93 8.81 2.78 5.57 6.32 7.36 5.04 3.42 3.67 1.25 4.45 7.17 4.91 4.46 1.88 2.36 3.65 4.39 4.40 11.14 2.06 9.36 7.36 1.53 4.63 7.82 4.09 7.94 .36 6.64

63.62 19.61 10.38 11.91 17.62 23.83 11.76 8.31 8.6 21.4 13.36 7.43 26.47 6.59 11.39 21.51 12.26 6.2 6.31 12.61 30.72 7.76 16.39 8.13 10.4 6.33 33.61

18.06 69.12 1.96 2.93 6.94 27.78 54.17 40 40 19.03 38.54 -

3.27 1.47 12.76 14.73 1.24 1.52 1.16 7.97 1.35 -

2.23 3.89 1.49 1.80 12.40 2.02 8.42 6.69 6.68 1.54 5.24 -

19.04 19.18 7.32 5.25 9.05 8.96 45.35 12.88 8.17 19.55 -

204 346 308.7 116.5 157 289 154.7 615 26 284 130 515

21.76 17.64 6.04 8.02 9.72 43.75 12.39 39.2 22.22 9.68 21.21

.66 1.19 1.34 2.18 1.84 .92 1.35 1.00 .99 1.88 3.42

9.32 2.80 1.93 6.03 6.08 9.47 6.81 5.53 7.17 7.07 3.44

21.29 41.71 53.62 9.17 12.44 15.94 15.06 18.01 19.63 9.49 8.51

262 135 145.9 2640 86 575 30 51 360 302 127 630 157 158 304 73

188 124 130 2138 75 410 25 30 302.5 269 99 523 81 110 265 40

18.06 12.35 8.68 59.72 7.6 20.83 27.22 23.71 7.95 8.05 10.56 5.44 6.94 -

1.45 .95 1.61 2.35 2.75 1.67 .75 .38 1.13 8.33 1.39 .81 8.18 -

8.21 9.29 6.50 2.48 8.94 3.72 8.51 8.51 7.43 1.37 12.57 4.61 2.41 -

11.65 12.54 12.21 23.82 4.37 22.41 21.71 39.22 13.55 8.76 7.94 26.66 7.05 -

3 64 304.4 300.2 116.3 245 497 77.5 113.2 270 152 249.7 17.2 100 124 142 111 201.5 59.8 63 25 523 139 6

.5 57 297.4 298.3 106.1 122 403.5 58.3 102 230 132.8 214.7 7.7 75 103 125 78 76 30.9 52 9 401 113.5 .4

4.22 10.58 8.15 7.31 6.94 18.28 5.56 5.71 16.67 6.71 10.61 1.18 13.19 8.33 2.1 5.21 22.5 6.29 -

.51 .63 .95 .82 4.31 9.11 2.09 .80 1.12 .92 3.50 1.56 .80 2.06 -

7.15 3.50 2.72 6.89 3.58 3.88 8.55 5.32 6.97 4.46 4.36 9.60 17.14 7.79 2.12 8.54 4.42 4.94 -

18.58 32.35 58.98 49.19 24.68 9 1.78 9.51 18.04 7.23 19.36 13.46 10.44 39.06 10.97 -

www.spicers.co.nz

Share Code

NZX Market Shares

PFI Prop For Ind PPH PushpayHld PGC Pyne Gould

Q-S QEX RAK RBD RBC RYM SAN SCL SCT SEA SEK SKO SKL SKT SKC SLI SPY SCY SRF SPN SPK STU SNC SPG SUM SML

QEX Rakon RestaurantBrands Rubicon Ryman Health Sanford Scales Corp ScottTech SeaDragon Seeka Kiwifruit Serko Ltd Skellerup Sky Network SKYCITYEnt SLI Systems Ltd Ords Smartpay Smiths City SnrTrst RetVill South Port NZ Spark NZ Steel &Tube Sthn Charter Stride Summrst Grp HldLtd Synlait Milk Ltd (NS)

TGG TTK TGH TLS TEM TLL TLT TWF THL TWR TME TIL TRS TPW TRA USF USG USV USM USS VCT VIL VGL VHP WHS WDT WBC ZEL

T&G Global TeamTalk Tegel Grp Telstra Templeton TILLogist Tilt Renew TotalWorld Fund Tourism Holdings Tower Trade Me Group Ltd Trilogy TRS Investments TrustPower TurnersAuto US 500 Fund US Large Growth US LargeValue US Mid Cap Fund US Small Cap Fund Vector Veritas Inv Ltd Vista Group Vital Healthcare Warehouse Group Wellington Drive Westpac ZEnergy

T-Z

A disclosure statement is available on request and free of charge

Closing quotes Buy Sell

Last Sale

Move

1000s Sold

52-week High Low

Dividend CPS t/c

Yld%

P/E Ratio

163 164 385 389 24 26.5

163.5 386 26.5

+.5 +2 -

811.694 915.794 -

170 156.4 445 160 36 19

7.42 -

1.51 -

4.54 -

14.62 -

32.64 18.8 31.94 26.39 13.89 27.78 13.19 38.19 27.78 4.86 6.31 36.11 34.43 22.22 12.11 9 -

3.96 1.74 1.18 1.32 1.67 1.36 1.15 .40 .56 1.06 1.35 .90 .91 1.66 11.16 -

4.53 1.76 4.15 5.88 3.97 4.15 7.02 15.53 7.27 8.84 6.31 5.92 10.29 10.63 7.17 1.42 -

14.36 19.23 20.09 26.43 20.09 14.57 7.76 47.61 29.65 11.09 28.08 20.73 17.32 14.88 14.32 10.43 6.29 35.22

8.33 10.49 28.85 14.6 3.77 2.27 27.22 25.69 6.24 47.22 20.14 4.25 3.32 22.22 4.87 8.81 22.22 212.43 42.08

2.64 1.26 1.22 1.58 1.51 18.01 1.65 1.28 4.04 1.06 1.76 30.85 16.38 .88 1.68 6.15 .37 1.26 1.99

2.59 9.99 8.10 .97 2.03 1.09 4.54 5.85 2.20 9.05 6.99 .61 1.10 6.73 1.80 4.17 11.06 6.46 6.02

20.36 4.32 11.02 10.12 65.05 32.54 7.1 17.28 18.48 15.62 14.52 11.28 7.36 7.05 7.69 8.72 7.61 23.56 45.89 4.04 34.13 12.75 11.6

Dividend CPS t/c

Yld%

P/E Ratio

4.4 4.17 3 2.78 8.94 9.37 -

3.15 2.76 4.76 5.45 3.97 4.69 -

44.63 6.06 16.03 21.45 7.48 17.31 4.05 19.79 -

Yld%

P/E Ratio

66 19.5 716 21 1065 757 446 335 .5 660 210 187 246 381 26 15.5 54 95 610 334 207 .2 169 620 776

70 20 720 21.5 1069 780 449 350 .6 670 212 188 248 382 27.5 17 55 100 335 209 171 632 778

70 19 720 21 1069 770 449 350 .6 670 210 188 246 382 28 16.5 55 100 610 334.5 209 .5 169 632 778

+4 -1 +1 +1 -3 -4 +18 -7 -8 +2 +.5 -5 -1 -8 -6

82.487 48.02 59.039 20.002 204.517 23.985 385.008 3.838 1062.215 2.4 71.449 124.974 4235.709 684.941 61.96 105 4.718 1.156 1996.622 68.475 180.701 503.376 509.217

70 25.5 761 24.5 1130 850 492 381 .8 700 262 195 396 456 40 24 75 100 625 396.5 263 7.1 184 652 825

39 16.5 519 18 812 670 321 236 .4 500 25 148 243 366 18 15.9 52 94 520 332 199 .5 161 460 310

322 86 104 355 1498 202 184 208.6 599 70.5 437 282 .2 518 288 693.8 402.9 296.3 429.4 404.7 328 5 266 211.5 201 15.8 3290 695

327 90 105 379 1505 205 186 209.6 600 71.5 439 283 .3 522 295 703.5 403.4 297.9 430.4 406.6 330 6 273 212 202 17 3389 708

322 90 105 356 1505 200 186 208.7 600 70.5 439 283 .2 522 288 694.5 402.8 301.1 434.2 410.8 330 5 270 211.5 201 15.8 3288 699

-5 -1 +1 -6 +4 +7 -2 -2.3 +6 +2.5 -1 +5 -1 -9.5 -2.4 -6 +.5 -1.2 -32 -1

4 30 426.788 47.1 .34 5 76.235 165.073 607.438 638.151 997.758 60.239 43.476 494.855 106.121 28.043 10.959 5.609 19.306 92.18 100 849.163 62.843 151.656 129.37 5.517 200.085

380 110 145 521 1592 584.7 227 218.5 610 112 559 286 .4 605 397 721.2 413 310.8 449.5 432.7 351 31 313 230 262 29.5 3865 804

302 67 103 355 1129 193 183 184.6 345 51.2 421 204 .1 448 285 605.1 342.9 263.5 386.3 360.3 311 4 248 201 199 14 3077 680

Closing quotes Buy Sell

Last Sale

Move

1000s Sold

.1 80 31 60 12.5 1 140 151 13.7 63 51 225 6 200 16.9 .7

+1.1 -.1 -

13.75 2 1.06 79.526 .01 24 28.5 .65

.4 168 70 80 12.5 2 200 156 52 69 55 260 6 250 23 1.5

Last Sale

Move

1000s Sold

52-week High Low

NZAX MARKET Share Code AFC BFW CRP CGL CGF CSM ENS FFW GEO GFL JWI LIC MYK SDL TRU WTL

NZX Market Shares

Aust Food BurgerFuelW’wide Chatham Rock Chow Group Cooks Glob Fds CSM Group Enprise Group FoleyFamWine GeoOP Ltd GFNZGrp Ltd Ord JustWater Livestck Imprvmnt Mykris Ltd Ord Solution Dynam TruScreen WindﬂowTech

.1 80 31 60 5 .2 100 152 14 60 25 230 6 16 .7

.2 90 34 73 12.4 .5 130 159 15 63 50 16.9 1.3

52-week High Low .1 80 25 57 4 1 126.4 120 12.5 42 22 210 2 184 12 .7

1.98 2.35 2.81 1.47 8.63 1.50 -

NXT MARKET Share Code

NZX Market Shares

MWE MarWineEst ONL Oceania Nat SNK SnakkMedia

Closing quotes Buy Sell - 25 - 6.5 8

25 142 6.5

Dividend CPS t/c

30 25 142 125 35.5 4

NZDX MARKET Share

01/03

NZX Market Bonds

Coupon rate %

ANZ

5.28

CEN020

Contact Energy

5.80

2019-05-15

ZEL030

ZEnergy Bonds

6.50

2019-11-15

ANBHA

Maturity date

Closing quotes Buy Sell

Last sale

1000s sold

Price/$100 face value

101.91

388

2.75

2.82

103.87

3.49

Disclaimer: All parties have endeavoured to ensure the accuracy of the information contained herein is correct. Neither this newspaper nor AAP, related companies 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 subject to change without notice.

22 |The Business

Friday, March 2, 2018

Australia 0800 102 100

Personalised Investment Advice

Rises

Falls

509

827

5775

6000

5350

5900

4925

5800

4500

Share name

Mar 18

Dec 17

Sep 17

Jun 17

6100

Boart Longyear Patrys Ltd Blina Minerals ManasResources Petrel Energy Invion Ltd Bravura Telstra Corp Taruga Gold King River Mar 17

6200

Mar 1

6200

Feb 23

▼

Top 10 TURNOVER

Feb 16

-42.70

Last TWELVE months

Feb 9

5973.3

A disclosure statement is available on request and free of charge

Last FOUR weeks

Feb 2

ASX200

www.spicers.co.nz

Issues traded

Volume traded

Value traded (A$)

1,736

2.62b

$5.17b

s Ofﬁcial market statistics provided by ASX. Closing data compiled at 5.30pm yesterday (AEST).

74,324,903 69,187,892 67,648,000 61,466,755 60,028,847 55,749,406 41,891,545 35,195,793 32,804,826 31,250,894

Top 10 VALUE

Share name

Rio Tinto Ltd BHPBillitonLtd Bluescope CBA Telstra Corp ANZ Banking CSL Limited Woodside Pet Woolworths Westpac Bank

340,218,863 180,740,696 136,760,294 129,022,820 117,362,450 114,917,292 109,770,192 96,100,046 95,743,610 94,018,403

Biggest 10 RISES Share name

Altium Ltd Saracen Min Speedcast Intl Ltd Primary Health G8 Education Steadfast Grp Nine Entertainment Bapcor Iron Mountain Orora Ltd

Biggest 10 FALLS

Share name

Orocobre Ltd Genworth Mtg Myer Holdings Western Areas Galaxy Res HT&E Seven West Oil Search Ltd Mineral Res Rio Tinto Ltd

RCL A2M AAC ABP ARI ABC AGL AIZ ALQ ALU AMC AMP ANN ANZ ANZPG APA ARG ARA ALL AHY ASX AIA AZJ AFI AST ASB API BOQ BAL BEN BYI BBG BKL BSL BLD BXB BKW BTT BWP CTX CAA CAR CBA CBAPF CBAPD CBAPC CLT CGF CHC CIM CWY CCL COH CLH CPU CTD CGC CYG CMW CWN CSL CSR CYB DVN

2.92 2.47 2.35 2.25 2.14 1.98 1.75 1.74 1.65 1.52

Percentage

6.14 2.37 0.425 3.08 3.33 1.78 0.600 7.21 18.17 77.85

INDUSTRIAL (A¢) Share Code

Percentage

20.82 1.66 5.66 4.09 2.86 2.57 2.32 5.85 40.56 3.35

6.12 5.95 5.56 4.94 4.86 4.81 4.76 4.50 4.42 4.08

Thursday, Mar 1, 2018

Last Sale

Move

100s Sold

36.5

-1.5

440 40.5 22.5 40356 1378 218 25325 198 110 9252 426 292 2.4 2.2 41996 705 527.3 18779 2847 2084 789 343 204 25671 850 572 12653 2050 701 21400 1678 1371 56953 549 474 6612 2634 2030 39958 3295 2718.5 83 10820 10367.5 22022 990.2 765.1 1303 844 742 2064 80 70.1 17240 2495 1589 119146 193 133 3477 5903 4856 1470 705 543 61832 574.5 444 3593 644 564 50943 195.5 156.5 1536 202 149.5 7564 238 132.7 11238 1345.8 1057.6 10046 1830 371.3 19400 1252 1028 160 105 60 1573 130 48.7 893 17800 8627 84725 1658 1061 38639 822 567 30841 1071 889 1410 1584 1233 5903 1326 946 7342 327 274 11277 3702 2755 4092 21 10.5 8522 1564 1084 16952 8774 7320 95 10448.5 10013 164 9960 9370 71 10419 10096 47 23 13665 1442 1132 8153 651 514 2741 5270 3541 35140 166.5 114 18622 1087 752 1471 18760 12600 3890 147 115 13073 1836 1319 6136 2634 1804 26143 739 382 11 129 58 53610 104.5 91.5 24708 1388 1080 6814 16584 11728 19305 525 385 25947 594 419 45 35

A2 Milk 1223 AAC Ltd 109.5 -1 Abacus 345 +1 ACN Ltd 2.2 AdelBrtn 661 +3 AGLEgy 2158 -28 Air NZ 308 +1 ALS Ltd 710 -10 Altium 2082 +59 Amcor 1410 +20 AMP 527 -2 Ansell 2606 -19 ANZBank 2880 -25 ANZBank 10680.1 -11.9 APAGroup 785 -15 Argo 805 -2 Ariadne 76 Aristocrt 2400 -65 Asaleo 133 -2 ASXLtd 5810 -29 AuckAirpt 594 -5 Aurizon 451 -6 AusFound 605 -4 AusNet Srvcs 164.5 -5.5 Austal 180.5 -2.5 AustPharm 149 -4 BankQld 1247 -16 Bellamy’s 1838 +31 BenAdeBnk 1089 -45 BeyondInt 71.5 +3 BillaBong 96 -1 Blackmore 12847 +7 Bluescope 1617 -16 Boral 768 -13 Brambles 951 -9 Brickwork 1510 +3 BTInvest 1070 +11 BWPTrust 293 +2 Caltex 3440 -77 Capral 15.5 -1.5 Carsales 1410 -6 CBA 7606 -33 CBA 10368 +13 CBAopt 9918 -2 CBAppt 10250 +50 Cellnet 39.5 Challenger 1244 -16 CharterHG 579 -6 Cimic 4554 -126 Cleanaway 152 -1 Coca-Cola 874 +4 Cochlear 18191 -199 CollHouse 134 +8 Compshare 1790 +6 CorpTrav 2522 -22 Costa Grp 738 +10 Coventry 124 +.5 Cromwell 99.5 -.5 Crown Ltd 1366 +16 CSLLtd 16142 -175 CSRLtd 515 -2 CYBG Plc 530 -3 Devine 40.5 -

52-week High Low

Dividend CPS Yld% 9 3 16 54 10.3 8 13 26.17 14.5 25.88 80 112.11 21 15.5 1 20 6 107.2 10.0 14 10 4.63 2 3.5 46 7.8 35 2 150 6 12.5 14.5 34 26 8.78 61 1.25 20.5 200 97.87 78.88 96.14 1.25 17.5 15.6 75 1.1 26 140 3.9 19 15 5 2.5 2.0 30 100.4 13.5 1.7 -

5.16 3.12 4.76 6.58 2.22 1.24 4.03 5.48 2.13 5.51 5.50 3.90 2.63 1.38 7.41 3.55 3.27 5.01 3.94 5.31 2.19 4.58 6.02 6.08 2.92 2.26 .67 3.14 3.02 3.38 4.25 6.07 3.44 7.35 2.97 5.63 3.21 3.81 3.16 2.78 5.33 2.88 1.44 5.40 1.52 6.19 2.13 1.30 1.65 8.34 4.44 1.18 5.13 .32 -

P/E Ratio 63.8 9.4 24.0 17.2 10.4 152.8 62.5 20.0 18.0 5.9 13.2 47.3 25.7 1.9 31.7 12.8 25.3 21.5 27.0 21.8 41.5 14.3 13.8 136.8 11.9 34.1 11.5 29.7 25.0 12.0 19.3 7.3 14.8 6.7 27.9 13.3 7.7 18.5 12.9 21.6 27.8 14.5 47.3 9.8 27.1 42.1 21.5 8.6 5.2 36.6 14.2 18.0 -

Share Code DXS DJW DHG DMP DOW DLX EBO EVT FXJ FRM FPH FBU FLT GNE GMA GLB GMG GNC GOZ GUD HVN HSO HIL HTA IAG IEL IDT IPL IFM IOF IFL IRE IVV JHG JBH JHX LGD LLC LNK MAH MQA MQG MFG MRL MCP MPL MCY MEZ MTS MIG MLT MGR MYO NAB NABPB NVT NWS NWSLV NXT NHF NEC NUF OEC ORI

Last Move Sale

Dexus 935 DjerriInv 340 Domain 304 Dominos 3898 DownerEDI 678 Dulux Grp 757 Ebos Group 1653 EventHos 1336 Fairfax 75 FarmPride 94 Fis&PayHc 1275 FletchBld 613 FlightCtr 5777 GenesisEn 216 Genworth 237 GlobeInt 132 GoodGrp 830 Graincorp 795 GrowthPro 325 GUD Hldgs 1176 Harvey 389 Healthscope 185.5 Hills Ltd 23 Hutchison 4.8 IAG 815 IDP Education 717 IDTAust 7 IncitecPV 375 Infomedia 83.5 Investa 425 IOOF 1033 Iress Ltd 1021 iSharSP500 35331 Jan-Hend 4551 JB Hi-Fi 2611 JHardie 2252 LegendCor 23.5 LendLease 1795 LinkAdm 849 Macmahon 24.5 MacqAtlas 554 MacqGroup 10293 MagellanF 2518 MayurRes 88 McPherson 137 Medibank 319 MercuryNZ 298 MeridianEn 258 MetcashL 320 Migme Ltd 4.4 Milton 459 MirvacGrp 211 MYOB Grp 311 NAB 3012 NAB 10075 Navitas 478 NewsCorp 2124 NewsCorp 2079 Nextdc 668 NIBHoldin 697 NineEntrtnmnt 232 Nufarm 824 Orbital 36.5 Orica Ltd 1800

+5 -4 -41 -15 -11 +2 -4 -.5 -1 -2 +9 -2 -2 -15 +9 -2 -1 -29 -12 -3.5 -5 -7 -5 +1 +2 -10 -17 -151 +12 +16 -33 -.5 +10 -8 +1 -72 -24 -3 +2 +4 -1 -4 +1 -1 -5 -6 -75 -4 -51 -24 +1 -7 +4 -4 -65

100s Sold 18672 1400 4635 10722 11631 12150 15 2209 89198 87 3171 13146 6525 196 17543 45915 5836 4285 1970 80697 49881 1694 45638 3174 2301 26050 525 7654 8544 5033 79 5827 6871 8262 1424 24105 41276 30362 30113 8197 4514 2316 46429 32 337 20642 1287 238954 35764 29318 217 3597 852 1.5 17217 4905 104820 6322 25633

52-week High Low 1084 387 398 6705 742 828 1794 1401 81.7 140 1310 912 5930 246 332.9 132 893 1055 363 1374 524 234 32 8.8 825 775 17 408 89 489 1194 1340 35800 5239 2947 2385 25 1873.5 905 25.5 644 10554 2950 110 159 339 333.2 292.6 336.5 5.5 480 254 381 3409 10325 564 2251 2249 735 720 231 1020.2 76 2139

898.5 332 273 3840 517 614 1545 1195 58.9 86 820 599.5 2801 186 247 85 733 717 307 1030 355 160.5 15 4.8 582 412 6.9 319 67 418 812 1034 30579 3500 2120 1703 16.5 1489 698.8 14.5 452.6 8228 2264 40 88 266 272.1 244.8 197 4.2 427 200.5 304 2801 9800 401.5 1566 1617 359 505 98 774 34 1691

Dividend CPS Yld% 23.7 10 4 58.1 13 13.5 27.3 21 1.1 8.0 17.3 60 7.5 12 5 13.75 15 11 24 12 3.2 2.1 14 8.5 4.9 1.4 10.15 27 28 136.1 40.3 86 10.5 .7 34 7 10 205 44.5 6 5.5 5.5 6.8 6 8.8 5 5.75 99 87.78 9.4 8.9 8.9 9 5 8 28

5.10 5.81 2.61 3.61 3.45 3.27 3.88 4.11 1.47 5.91 2.66 6.79 9.52 7.58 3.28 3.76 6.72 4.07 5.99 3.54 4.15 1.93 2.47 3.15 4.81 5.18 4.24 1.44 6.19 5.09 1.76 5.42 3.75 1.75 3.61 4.68 3.61 5.71 3.86 4.64 4.67 3.24 4.10 4.95 3.64 6.56 3.47 4.05 .82 .85 2.77 4.39 1.57 2.76

P/E Ratio 6.0 22.7 31.2 45.2 20.5 19.2 18.0 44.4 6.1 46.7 22.5 21.1 8.4 9.1 19.3 14.5 5.7 324.8 11.1 32.8 18.7 37.8 20.1 23.9 6.4 36.9 29.3 8.7 8.9 14.1 30.5 14.1 12.9 35.2 52.2 6.3 14.4 26.8 51.6 18.8 23.1 39.1 16.7 23.3 7.0 31.2 15.5 33.2 163.8 26.3 9.5 21.4 18.1

Share Code ORG ORA PGH PPT PTM PMC PMP PPK PMV PRY PRT QAN QBE QUB RHC REA REH RWC RMD RIC SCG SEK SVW SIG SLX SGM SKC SHL SOL SKI SPK STW SPO SGR GAS SDF SUN SDG SUL SYD TAH TAG TLS TGG TWR TPM TCL TWE VAS VCX VRL VAH WES WFD WBC WBCPG WTC WOW WOR XRO ZEL

OriginEgy Orora Ltd PactGroup Perpetual Plat Mgmt PlatCaptl PMP Ltd PPKGroup Premier PrimaryH Prime MG QantasAir QBE Qube Hold Ramsay Rea Group ReeceAus RelianceW Resmed Ridley Scentre SeekComm SevenGrp SigmaH SilexSyst SimsMetal Skycity Ent SonicHlth Soul Pat Spark I.Grp Spark NZ SPDR200 Spotless StarEnter StateGas SteadfstGrp Suncorp Sunland SupaCheap SydAirprt Tabcorp TagPac TelstraCp Templeton Tower TPGTeleco Transurban TreasryWine VangrdASI VicinityCtr VillageRd VirginAus Wesfarmrs Westﬁeld WestpacB WestpacB Wisetech Woolwrths WorleyPars Xero Ltd ZEnergy

Last Sale

Move

100s Sold

890 335 550 5116 615 198 33 22 1367 409 29.5 586 1020 246 6303 7624 1008 422 1224 145 388 1992 1825 88 33.5 1718 354 2425 1768 239 312 5621 113 524 30 257 1354 182 683 664 465 10 332 140 65 618 1163 1747 7672 250 346 24 4155 876 3069 10710 1049 2709 1511 3223 650

-15 +5 -10 -71 -26 +5 +2 +9 +.5 -3 +1 -2 -87 -75 -1 -7 -6 +2 +4 -29 -20 -1 -27 -3 -25 -17 -2 +2 -31 -3 -8 +5 -2 +3 +3 +5 +3 -3 -.5 +1.5 +7 +5 -3 -47 +2 -2 -1 +22 -8 -10 -16 -52 -31 +47 -9

27860 24057 7477 1882 26370 1673 345 1624 28331 6577 56328 43627 21806 11376 1278 138 26995 15569 894 98312 11927 6464 24796 1261 8899 11800 6267 1418 26829 10255 711 246 67027 32376 16621 1057 9197 43183 47266 351957 1167 5277 15566 43468 24368 956 93823 222 19655 22059 29487 30664 74 11364 35482 7533 2541 944

52-week High Low 978 351 734.3 5734 872 217 80 22 1538 400 50 653 1362 283 7618 8110 1046 463 1281 162 457 2086.5 1967 133 69 1805 436 2497 1900 288 377 5737 117.5 639.5 46 302 1524 185.9 1100 779.5 573.5 11 479.6 145 104 702.5 1311 1809 7834 299 428 29.5 4560 977 3539 10836 1627 2797 1615 3549 760

621 272 483 4672 423 149 32 12.5 1201 300 25.5 363 965 225.4 6106 5465 790 274 893.5 120.5 370 1467 971 72.5 29.5 1127.5 331 2060.5 1573 218.5 305 5277 70.5 483 27 233 1243 159 675 595 390.5 4 330.7 122.5 49.4 485.5 1074.2 1171 7190 244 305 16 3952 728 2940 10405 506 2445 768.9 1683 601

Dividend P/E CPS Yld% Ratio 10 6 11.5 135 16 4 2.4 1.5 27 5.1 1.7 7 4 2.7 57.5 47 6 3.5 3.15 1.5 10.87 24 21 2.5 23 9.2 32 32 7.6 11.2 50.0 1.35 7.5 2.8 33 5 21.5 18 11 11 4.5 6.8 2 28 15 68.0 8.1 14 103 16.2 94 115.47 1.05 43 10 9.4

3.64 21.5 4.11 20.3 5.21 17.0 4.84 19.4 5.18 7.5 6.4 3.88 20.4 2.73 11.72 10.3 2.38 11.1 2.55 2.22 52.7 2.18 27.5 1.27 219.3 2.00 22.7 1.52 31.0 1.02 32.6 2.97 18.1 5.66 4.8 2.23 19.6 2.28 23.4 6.18 15.3 2.46 16.1 5.10 51.6 3.18 22.3 3.03 12.8 6.33 45.7 6.39 14.8 4.11 7.4 1.16 3.01 28.3 2.86 30.0 5.38 17.6 5.03 5.4 6.84 13.4 5.24 42.4 5.09 6.87 10.4 3.20 87.8 1.64 12.7 4.71 51.0 1.60 40.1 3.48 4361.0 6.73 6.8 5.0 5.40 31.0 3.70 9.1 6.11 12.9 4.34 .21 94.2 3.37 20.0 .65 102.8 4.29 11.9

MINING (A¢) Share Code AWC AGG AZZ ARM ASL AWE BPT BHP BOC CAA CUE EMP ERA EVN FMG GXY GOR HLX HIG

Last Move Sale

Alumina Anglogold Antares AuroraMin Ausdrill AWE Ltd BeachEngy BHP Billiton Bougainvl Capral CueEnergy Emperor EnergyRes Evolution Fortescue Galaxy Gold Road HelixRes Highlands

225 252 50 3.5 270 95 130.5 3010 18.5 15.5 6.6 .4 65.5 288 495 333 80 4 7.9

+2 -7 +7 -2.5 -40 -2 -1.5 -1 +2 -9 -17 -.4

100s Sold 222965 42 14570 40093 67073 60016 1059 4092 26 1286 36199 147081 52874 5273 3405 971

52-week High Low

Dividend CPS Yld%

P/E Ratio

260 349 50 7 304 100 143 3216 42 21 8.1 .5 98 294 683 454 84.5 6.2 12

11.8 3.5 5 1 69.4 1.25 3.5 11 -

14.7 16.3 6.7 27.9 6.7 23.8 8.2 30.3 3.0 6.2

166.5 234 25 3.4 126 40 55.1 2206 17 10.5 4.5 .2 45 189 452 152 50.5 2.2 5.5

7.68 .86 2.09 1.50 4.01 7.35 2.27 7.14 -

Share Code ILU IGO INM KDR KCN LEG LYC MIN NHC NCM NST OGC OSH OMH ORE OZL PLS RRL RSG

Last Move Sale

Iluka Res Ind Group IronMt Kidman Res Kingsgate LegendMin LynasCorp MineralRe New Hope Newcrest NthStar OceanaGol OilSearch OmHold Orocobre OzMineral Pilbara Regis Resolute

1052 493 4056 201 36 2.1 212 1817 223 2129 636 340 721 147 614 951 91.5 427 111

+13 -14 +66 +1.5 -1.5 -.2 -1 -84 -1 +4 +7 +1 -34 +1 -40 -13 -.5 -1 -.5

100s Sold 27037 30979 263 33115 3115 36566 21583 26938 4616 22452 29703 2217 127173 5981 50266 15081 158505 26560 48499

52-week High Low

Dividend CPS Yld%

P/E Ratio

1083 523 5483 223 54 3 240 2214 264 2533 643 488 813 152 744 999 125 446 191.2

25 1 51.8 5 25 6 9.5 4.5 1.2 6.9 14 8 2

11.8 15.8 13.2 60.8 19.9 9.4 29.7 11.5 53.9 12.4 13.0 7.1

650 284 3952 33.5 19 .9 75 915 144.5 1926 374 309 636 10 260.9 631 31.2 298 94.5

2.98 .39 3.05 4.46 .89 1.67 .66 1.48 2.07 3.74 1.79

Share Code RIO SFR STO SAR SGM S32 SBM SYR TAP TAW WSA WHC WPL YAL

RioTinto Sandﬁre Santos Saracen SimsMetal South 32 StBarbara SyrahRes TapOil Tawana WestAreas WhiteHave Woodside Yancoal

Last Move Sale

100s Sold

7785 754 497 166 1718 334 405 336 5.4 43 308 426 2861 16

45314 13579 60358 41136 8899 175724 28286 10500 1685 14547 15979 33009 33302 8111

-331 -13 -7 +4 -27 +2 -5 -6 -.1 -1 -16 -11 -57 +.5

52-week High Low 8273 789 567 179.2 1805 402.5 423 495 8.7 58 353 498 3459.2 43.5

5672 525 287 87 1127.5 239.5 220 220.9 5.1 15 187.2 234.1 2784.7 9.8

Dividend P/E CPS Yld% Ratio 228.53 8 5 23 9.2 4 2 13 62.6 -

4.51 2.74 2.46 4.05 2.44 .62 4.35 4.27 -

12.9 11.9 22.1 16.1 12.0 11.4 39.6 8.5 18.6 -

Friday, March 2, 2018

The Business | 23

The Insider

election as chair of Labour’s Eastern Bay of Plenty branch.

Raining money

The latest financial results from the electricity industry prove that the security and profitability of NZ’s power supply is inextricably linked to the weather. It’s another reminder that for the big gentailers, when it rains, it pours — into their bottom line. And when it doesn’t rain, up go wholesale prices, and pressure on electricity retailers who don’t have generation capacity. Some of the Government’s bigger brains are starting to think even more seriously about the impact of this weather dependency, and how it might affect their climate change targets.

Puppet show

The Backbencher pub’s unveiling of its latest parliamentary puppets shows that in politics, some things never change. While Jacinda Ardern made her first appearance, Winston Peters is in his eighth puppet incarnation, seeing off Bill English and Gerry Brownlee, both headed for the exit door.

Baubles of office

The whips from all parties appear not to be keeping a careful eye on new MPs, some of whom have been racking up fairly hefty travel bills in a short time. Some new junior Ministers also seem to be revelling in the Crown limousines, apparently not realising how much they charge, and how bad it can look to stand out from the pack.

Limbo-land

One short-term problem in the electricity business is that everyone is waiting to see what the promised review of the sector will do. It has been announced, re-announced, draft terms of reference circulated, but still no one knows who is going to do it or what direction it will take. The problem is that meeting the Government’s ambitious targets for the sector will take a lot of investment in new generation, and no one is going to contemplate spending anything like the amounts needed until they know what the rules might be.

involved in thinking the vast majority of people are motivated enough to do all these things. Could this census record one of NZ’s biggest-ever population drops?

Budget blues

The rubber is starting to hit the road as the new Government puts together its first Budget. Treasury officials have been making it very clear to departmental bosses that they will have to find money within their budgets to meet the “new priorities of new ministers”. Stand by for phrases such as “progressive implementation” and “staged management to build up capacity” — Treasury-speak for “there is not enough money to do that now”.

Counting Kiwis

Are Stats NZ officials getting nervous about the census? In the past, people were hired to knock on doors, deliver forms and follow up (pictured). This year, Stats NZ has gone online — a letter is sent out, people must open it, then log on to provide their information. If they don’t want to, or can’t, do it that way, they have to phone in and request a form, which must be delivered, opened, filled in and returned. There are some heroic assumptions

Old dogs, new tricks

Retirement means different things to different people. Annette King has found herself running the Earthquake Commission as the new Government reaches out to old talent to fill emergency gaps. Meanwhile, Sir Michael Cullen is still fighting the good fight at ground level, with his re-

Dilbert

Pipe down

Labour MP Kieran McAnulty (left) leapt to his feet when he saw a National MP using a phone in the House, to complain about it being inappropriate. In the Chair, Anne Tolley said McAnulty was quite right, but noted that he interrupted the speech of a Labour Minister in full flow to make his point. “I do suggest to the member that he might want to wait until his Minister has finished speaking in future. It’s career-enhancing.”

Open government

Broadcasting Minister Clare Curran has pledged to help create the most open government ever, but has been a bit more open than she wanted to be. Her proactive release of a Cabinet paper on setting up a committee to look at state-owned media included bits blacked out. Unfortunately, the blacking out was not very effective and revealed, among other things, that she was pushing for an extra $38 million annually for public media in Budget 2018, to be split between RNZ and NZ on Air. More such openness will be welcomed by the media, not so much by Curran’s ministerial colleagues.

Women want a shot at climbing the ladder F

lexible working hours and maternity leave are all well and good, but what women really want is a fair chance to climb the corporate ladder. So says Vicki Hollub, and she would know: in her 35-year career she moved up the ranks at Occidental Petroleum to become big oil’s top woman. “Women I work with and talk with in the industry really feel it’s the assurance they’re going to be given the opportunities and the chance to perform,” says Hollub. “The industry has to prove that that’s a reality everywhere.” Hollub, a mineral engineer,

Working life worked in Russia, Venezuela and the US for Occidental before becoming chief executive in 2016. Under Hollub, Occidental has come up against majors like Exxon Mobil and Chevron to defend its leadership as the No 1 producer in the United States’ Permian Basin, one of the world’s biggest and most profitable oilfields. A path like hers is still rare in the industry, and she is the only woman who has risen this high among the 18 oil producers worth more than US$50 billion. Only about 20 per cent of the

industry’s workforce are female, a smaller share than all other sectors except construction, according to a study by Boston Consulting and the World Petroleum Council. The upshot is not only that women lose out on a promising career, but that companies don’t hire the best talent and suffer from having a smaller diversity of perspectives, the study said. Once companies hire women, flexible working is important to retain them, says Hollub, who took two years off for family reasons. “People do need to go and have their families,” she says. “They need to fulfil that part of their life. You need a way to integrate them back

into the workforce while still understanding that they have to take care of their family.” Historically, the oil industry’s need for engineers and geologists to work in remote locations may have stymied women’s chances but this is no longer an excuse, Hollub says. As other companies laid off employees after the 2014 oil-price crash, Occidental sent younger workers out to rigs to gain experience so that later on in their careers they could work remotely or from home. “They can sit in the office or at home and do a better job because of the exposure we put them through early,” she says. — Bloomberg

24 |The Business

Friday, March 2, 2018

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