Business

Wow, never saw that coming!

Statistics NZ have released some information which is stunning economists the world over. Quote.

Higher prices for takeaway foods and restaurant meals pushed the food price index up 0.2 percent in the year to June 2018, Stats NZ said today.

Prices for restaurant meals and ready-to-eat food increased 3.0 percent. Lunch meals (up 3.8 percent) led the way, along with a wide range of takeaway food options.

April’s 75 cent increase in the minimum wage, to $16.50 an hour, may have contributed to price increases for these items,” prices manager Matthew Haigh said.

“Of every $100 that Kiwi households spend on food, about $26 goes on takeaways and eating out.” End of quote.

A government mandated increase in the minimum wage, whether the industry could absorb it or not, may have contributed to price increases for takeaway items, usually served by minimum wage workers.

Well, I never!

Who would have thought that might be the outcome?

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In solidarity with the those in the world’s most despised demographic, WH has decided to ‘come out’ as an old white male. WH enjoys exercising the white-male privilege that Whaleoil provides for him by writing the occasional post challenging climate change consensus; looking at random tech issues that tweak his interest, as a bit of a tech nerd; or generally poking the borax at anyone in public life who goes on record revealing their stupidity. WH never excelled on the sports field because his coaches never allowed him to play in his preferred position on the right-wing. WH also enjoys his MG.

Wellington business confidence plummets

Stuff reports that confidence in Wellington has dropped since the new government took over. Quote:

The quarterly Wellington regional chambers of commerce business confidence survey found a net 18 per cent of businesses expect the Wellington economy to improve in the coming 12 months, down from 21 per cent in March.

A year ago, a net 55 per cent of businesses were confident about the capital’s prospects. End quote.

Wow. That is a big drop in twelve months. Particularly as we haven’t been hit with the fuel taxes yet, and house prices are not quite as bad as Auckland. Quote:

Confidence in the national economy also dropped, with a net 4 per cent negative, meaning those expecting the New Zealand economy to deteriorate exceed those expecting an improvement, for only the second time since 2009. End quote.

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Accountant. Boring. Loves tax. Needs to get out more. Loves the environment, but hates the Greens. Has been called a dinosaur. Wears it with pride.

Sealegs competitor runs aground in copyright case

Orion system installed on Stryda Marine boat fails on sea trials

Sealegs has won a massive copyright case against a competitor formed by ex-Sealegs staff.

NBR reports on the substance of the case: Quote:

A High Court judge has found Sealegs International had its copyright infringed by Orion Marine, Smuggler Marine and various other people associated with the rival business.

In ruling in favour of Sealegs, Justice Paul Davison found its former employees, Darren Leybourne and Vladan Zubcic, had appropriated the core of the Sealegs system when they set out to create an amphibious system for Orion after leaving Sealegs.

Sealegs had already won an interim injunction restraining engineering firm Orion, as well as boatbuilder Smuggler Marine, producer of a vessel using the Orion system, from marketing the rival system. It will now be able to seek damages or an account of profits from Orion.

Sealegs’ amphibious system features retractable legs, which enable boats to be driven over land and into and out of water. It was created by Maurice Bryham in 2000 and has since achieved commercial success, Thursday’s court judgment says.

Orion was created in 2012 to compete with Sealegs, by Mr Leybourne and another defendant, Yun Zhang. Mr Zhang had been a homestay student with Mr Leybourne’s family when he was a student and later discussed with Mr Leybourne setting up the company and moving to New Zealand on an entrepreneur’s visa. He told the court he had permanent residency from 2017.

Mr Leybourne said he had received the judgment only last night and would take some time to consider it with his legal advisers before deciding whether to appeal.

“It’s obviously not what we expected,” he said.

Sealegs has since been renamed Future Mobility Solutions. Its chief financial officer David McKee Wright, former chief executive of Sealegs, was not immediately available for comment. End quote.

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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him, you can’t ignore him.

Good way to tank business confidence even further

If you needed a good way to tank business confidence even further than it is tanking already, then it is headlines like this around the world that will do it:

That was in the Sydney Morning Herald: Quote: Read more »

As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him, you can’t ignore him.

Rocketman or conman?

They may look sexy, they may, as a commenter on an earlier post so eloquently put it, “go like snot,” they may save the planet, one may even have been launched into space – but the laws of economics still apply and Harris Kupperman has some serious misgivings about the longevity of the Tesla production: Quote.

Tesla’s Bullshit Conversion Cycle is the key financial metric underlying this scheme (from @ProphetTesla)

I originally started following Tesla as I felt it was a structurally unprofitable business nearing a cash crunch as hundreds of competing products were about to enter the market.

As I’ve studied Tesla more closely, I’ve come to realize that Elon Musk appears to be running a Ponzi Scheme disguised as an auto-manufacturer; where he has to keep unveiling new products, many of which will never come to market, in order to raise new capital (equity/debt/customer deposits) to keep the scheme alive.

The question has always been; when will Tesla collapse? […]
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In solidarity with the those in the world’s most despised demographic, WH has decided to ‘come out’ as an old white male. WH enjoys exercising the white-male privilege that Whaleoil provides for him by writing the occasional post challenging climate change consensus; looking at random tech issues that tweak his interest, as a bit of a tech nerd; or generally poking the borax at anyone in public life who goes on record revealing their stupidity. WH never excelled on the sports field because his coaches never allowed him to play in his preferred position on the right-wing. WH also enjoys his MG.

Grant says all is OK

But it isn’t.

This article is from Sharechat, which is an investor’s website, and as such is completely apolitical. It doesn’t care who the government is. It is only interested in how investments perform, to enable them to look after their clients, and bring in healthy commissions at the same time. Quote:

Storm clouds may be gathering for the upcoming corporate earnings season as business confidence hits a seven-year low and almost a third of companies said profits shrank in the June quarter.

The latest quarterly survey of business opinion – released yesterday [3rd July] – showed a  net 16 percent of respondents reported lower earnings in the three months ended June 30, down from a net 7 percent in the prior quarter. Importantly, a net 12 percent expect to report lower earnings in the September quarter, signalling a shift in perceived earnings momentum.

“The net measure does suggest some weakness in corporate earnings for the upcoming reporting season,” said New Zealand Institute of Economic Research principal economist Christina Leung.

The survey’s sector break-down showed around 30 percent of firms across the board said their profitability was “down” on the three months to the end of June.

Rising costs have crimped earnings with building sector firms reporting intense margin pressures and retail firms struggling to pass on higher wage bills to consumers. The QSBO was in line with the latest ANZ Business Outlook survey for June with expected profitability deteriorating to a net 17 percent, suggesting firms have little ability to pass on higher costs in the face of strong competition.

Not only is profitability getting squeezed but firms expect to hire fewer people and invest less money than three months ago, adding to the view underlying economic growth is slowing, which will only fuel greater losses for corporates. End quote.

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Accountant. Boring. Loves tax. Needs to get out more. Loves the environment, but hates the Greens. Has been called a dinosaur. Wears it with pride.

Capital gains again

Capital gains tax is back in the news. Another article telling us how it will save the world. This from a newspaperQuote:

Introducing a 10 per cent capital gains tax would reduce New Zealand house prices by 10.9 per cent and lead to a higher rate of home ownership, according to a leading bank economist. End quote.

No, it wouldn’t. Capital gains tax will only apply to properties owned for investment purposes. The proposed tax specifically excludes owner-occupiers. As there are far more owner-occupied houses than investment properties, the effect of a capital gains tax on house prices will be negligible. Quote:

Property prices in New Zealand are “profoundly affected” by the tax system, [Dominick] Stephens said.

“It follows that changing the tax system would change property prices.”

In New Zealand, property is more lightly taxed than other forms of investment, he said. End quote.

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Accountant. Boring. Loves tax. Needs to get out more. Loves the environment, but hates the Greens. Has been called a dinosaur. Wears it with pride.

Fran O’Sullivan echoes Hooton’s claims about oil & gas

Fran O’Sullivan echoes Matthew Hooton’s claims about why Jacinda Ardern destroyed New Zealand’s oil and gas industry: Quote:

Jacinda Ardern’s use of prime ministerial fiat to ban new offshore oil and gas exploration is disturbingly Orwellian.

Official papers released by her hapless Energy Minister confirm what was already blindingly obvious to anyone who has observed closeup the process of Governmental decision-making — the ban was purely political.

A decision that was kicked upstairs and made by Ardern, NZ First Leader Winston Peters and Greens Leader James Shaw. And rushed throughwithout being contested through appropriate Cabinet consideration — so it could be announced on April 12 just before the Prime Minister headed to Europe.

What it also confirms — as I wrote in April — is Ardern put her debut as a global climate change warrior ahead of making credible plans to transition New Zealand away from a reliance on fossil fuels towards clean energy.

There’s no other way to interpret the documents and emails that have been released this week. End quote.

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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him, you can’t ignore him.

The winter of discontent is upon us

The government has tried very hard not to repeat the winter of discontent that beset Helen Clark’s government in the first year. The hallmarks are similar. As in 2000, oil prices are rising, and the government has exacerbated that by piling tax increases on top.

Now business confidence has plummeted, just as in 2000. The NZ Herald reports: Quote:

The spiking price of fuel, slow progress on housing and infrastructure and the threat of rising labour costs has sent business confidence in the country’s biggest city into “free fall”, says Auckland Chamber of Commerce boss Michael Barnett.

The chamber last week surveyed 800 businesses and found nearly half (44 per cent) believed the economy will deteriorate over the rest of this year.

Only 15 per cent thought the economy would improve during that time.

Compare that to June last year, when a third of businesses surveyed thought the economy would improve while only eight per cent believed things would get worse. End quote.

Read more »

As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him, you can’t ignore him.

First they came for your plastic bags, now they are coming for your cotton buds

It seems that were are all being forced back into the dark ages, one banned product at a time.

First they came for our plastic bags, now they are trying to ban cotton buds: Quote:

Plastic-stemmed cotton buds are to be pulled from supermarket shelves later this year as companies continue to clampdown on plastic products.

Foodstuffs, which operates New World, Pak ‘n Save and Four Square stores, announced the new initiative on Friday to mark World Oceans Day.

The announcement comes as Foodstuffs presented a bench to Whale Watch Kaikōura, made from 16,000 recycled soft plastic bags and micro beads collected during a 2017 amnesty.

Read more »

As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him, you can’t ignore him.