Edition:
United States

Charlotte Greenfield

New Zealand's quarterly growth hits fastest in two years, but challenges loom

Sep 19 2018

WELLINGTON New Zealand's economy grew at its fastest in two years last quarter, a surprise result in a gloomy business climate that could spare the central bank from any need to raise the prospect of a rate cut at its monetary policy meeting at the end of the month.

UPDATE 1-Global dairy prices fall for third time in a row, despite signs of robust demand

Sep 18 2018

* Global dairy prices drop 1.3 pct * Third fall in a row * Beats market expectations on strong demand despite increased supply (Recasts, adds analyst comment and market reaction) By Charlotte Greenfield WELLINGTON, Sept 19 Global dairy prices fell at the third fortnightly auction in a row early Wednesday as New Zealand's supply of key products ramped up. The GDT Price Index dipped 1.3 percent to an average selling price of $2,934 per tonne, after falling 0.7 percent at the previous sale. The drop was led by a 3.5 percent fall in cheddar prices and a 1.8 percent easing in values for whole milk powder (WMP), the most widely traded item. However, that was less than the 4.7 percent fall in WMP prices expected by futures markets, as New Zealand dairy producer Fonterra had signaled increased supply after recovering from bad weather that had hampered production at the start of the year. "WMP prices were therefore expected to come down due to the supply pressure," said Amy Castleton, dairy analyst at AgriHQ. The amount of WMP sold lifted 5 percent, led by North Asian buyers, suggesting strong demand and limiting downward price pressure even as supply expanded. In total, 39,143 tonnes was sold at the latest auction, up 0.9 percent from the previous one, the auction platform said. Ongoing weakness in dairy prices prompted New Zealand's Synlait Milk on Thursday to trim its forecast payout to farmers to NZ$6.75 per kgms from NZ$7.00 per kgms set earlier, in the wake of a similar payout cut by Fonterra. The auction results can affect the New Zealand dollar as the dairy sector generates more than 7 percent of the nation's gross domestic product. The kiwi currency edged down in the hours after the auction from around $0.6598 to $0.6575 but by morning had made up most of those losses to trade around $0.6592. GDT Events is owned by New Zealand's Fonterra, the world's largest dairy exporter, but operates independently from the parent company. U.S.-listed CRA International Inc is the trading manager for the twice-monthly Global Dairy Trade auction. A number of companies, including Dairy America and Murray Goulburn , use the platform to sell milk powder and other dairy products. The next auction is scheduled for Oct. 2. (Reporting by Charlotte Greenfield; Editing by Richard Chang)

UPDATE 2-NZ's Fonterra posts first annual loss as higher milk costs bite

Sep 12 2018

* Announces asset review, starting with stake in China's Beingmate (Recasts, adds CEO and analyst comment, market reaction)

New Zealand's NZX partners with Nasdaq in push for listings

Sep 12 2018

WELLINGTON NZX Ltd has signed a deal with U.S. exchange Nasdaq Inc to explore opportunities in dual listings and depository receipts, as the New Zealand bourse looks to attract share sales by providing greater access to overseas markets.

UPDATE 1-Global dairy prices fall, but volumes sold jumps at fortnightly auction

Sep 04 2018

* Dairy prices fall 0.7 percent * Prices have fallen at six of last seven auctions * Volumes growth jumps as competition for product heats up (Recasts; adds details, analyst comment) By Charlotte Greenfield WELLINGTON, Sept 5 Global dairy prices slipped for a second straight time at a fortnightly auction held early on Wednesday. The GDT Price Index dipped 0.7 percent, with an average selling price of $2,980 per tonne. Prices have fallen at six of the last seven fortnightly auctions as supply from New Zealand, the world's largest dairy exporter, ramps up. Prices for whole milk powder, the most widely traded item, fell 2.8 percent, compared with derivatives market expectations of a 0.4 percent rise. Nevertheless, a jump in volumes sold across most products suggested demand was picking up, which could underpin prices going forward. A total of 38,811 tonnes was sold at the latest auction, an increase of 21.1 percent from the prior one. The auction, by GDT Events, stretched out to more than 2.5 hours, compared to just under two hours at the previous auction. "There was likely some increased competition," said Amy Castleton, dairy analyst at AgriHQ. The auction results can affect the New Zealand dollar as the dairy sector generates more than 7 percent of the nation's gross domestic product. However, the kiwi currency was largely unchanged at $0.6554. GDT Events is owned by New Zealand's Fonterra Co-operative Group Ltd , but operates independently from the dairy giant. U.S.-listed CRA International Inc is the trading manager for the twice-monthly Global Dairy Trade auction. A number of companies, including Dairy America and Murray Goulburn , use the platform to sell milk powder and other dairy products. The next auction is scheduled for Sept. 18. (Reporting by Charlotte Greenfield Editing by Leslie Adler)

New Zealand TV journalist held by Nauru police

Sep 04 2018

WELLINGTON/SYDNEY Police in the South Pacific island of Nauru briefly held a New Zealand journalist at a police station and canceled her permit to cover a regional leaders' conference on Tuesday, because she met refugees without seeking permission, the government and broadcaster TVNZ said.

Starbucks gets new NZ partner in struggle to win Kiwi coffee connoisseurs

Sep 03 2018

WELLINGTON Starbucks Corp will have a new partner in New Zealand after the license holder said it will not renew its two-decade-old deal in a region where an entrenched coffee culture has made it difficult for the world's largest coffee chain to thrive.

NZ PM Ardern sets up advisory council to counter gloomy business sentiment

Aug 27 2018

WELLINGTON New Zealand Prime Minister Jacinda Ardern on Tuesday responded to firms' sinking confidence by announcing the formation of a business council, led by Air New Zealand Chief Executive Christopher Luxon, to advise her on major issues facing the economy.

UPDATE 2-Air New Zealand forecasts profit drop on higher fuel costs, hurting shares

Aug 23 2018

* Airbus receives 2 A321neo orders (Recasts, adds CEO, broker comments)

NZ's Minister for Women gives birth to baby boy after cycling to hospital

Aug 21 2018

WELLINGTON New Zealand's Minister for Women Julie Anne Genter announced on Wednesday that she had delivered her first child, a baby boy, after cycling to hospital and becoming the country's second member of the government, after Prime Minister Jacinda Ardern, to give birth this year.

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