Business News Feed

Business News Feed

Spark responds to Team Talk target company statement

Spark New Zealand responded to TeamTalk’s target company statement and independent adviser’s report, which was released today.

Spark’s Chief Financial Officer, David Chalmers, said, “We believe the valuation lacks real world credibility. The top end of the range represents a premium to the last trading price before the Spark notice of intention of 369%, which is patently absurd.

“This report asks shareholders to have enormous faith that the TeamTalk Board, many of whom are the same team which has led TeamTalk into what Grant Samuel refers to as the “ill-fated” acquisition of Farmside, and more recent “disarray”, will deliver the huge improvement relied on in the valuation.” 

The full details of the Spark offer are available at

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BusinessNZ PSI – February 2017

New Zealand’s services sector remains at a stable and solid level of expansion, according to the BNZ – BusinessNZ Performance of Services Index (PSI).
The PSI for February was 58.8.  Although this was 0.7 points lower than January, it was still the second highest level of expansion since November 2015 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).
BusinessNZ chief executive Kirk Hope said that the services sector has remained in a consistent and positive level of expansion for the last four months.
“What’s continued to drive solid expansion levels has been in no small part due to the sub-indices of activity/sales and new orders/business remaining over the 60-point mark”.
BNZ Senior Economist Doug Steel said that “with minimal movement over recent months, and even not all much change of the past four years, it might have some wondering if the PSI is telling us anything at all.  In fact, we think it is quite revealing in that the PSI is growing at a strong and steady pace”.
View PSI Time Series Data
Services Landscape

Steady Strong Service
New Zealand’s Performance of Services Index (PSI) remains very strong. February’s 58.8 result is little changed from January’s 59.5. Indeed, the PSI has remained in a tight 58.3 to 59.5 range over the past four months.
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Good For Growth
Ongoing PSI strength in January and February bodes well for GDP growth ahead. So too the bounce in the Performance of Manufacturing Index (PMI) for February published last Friday.
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Sales and Orders
The PSI details support the headline positivity, with broadbased strength. The sales and new orders components continue to lead the charge – both posting their fourth consecutive month above the 60 mark.
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Houses and Building
Despite the widespread near term positive growth signals above, we are alert to some other indicators cooling over recent months.
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View full BNZ Services Landscape

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BusinessNZ PMI – February 2017

New Zealand’s manufacturing sector saw activity increase in February after a dip in expansion during January, according to the BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for February was 55.2 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 3.0 points higher than January, and the highest level of expansion since September 2016.  Overall, the sector has remained in expansion in almost all months since October 2012.

BusinessNZ’s executive director for manufacturing Catherine Beard said that it was pleasing to see the sector pick up after January’s dip due to mostly seasonal factors.
“While a few respondents continued to outline negative seasonal factors impacting their overall activity levels during February, the 61.7% of positive comments received pointed to increased orders, both at a domestic and offshore level”.  

BNZ Senior Economist, Craig Ebert, said “it was good to see the PMI bounce in February.  Had it not, we would have become a little apprehensive about the way it was going”. 
View PMI Time Series Data

Manufacturing Snapshot

It was good to see New Zealand’s Performance of Manufacturing Index (PMI) bounce in February. Had it not, we would have become a little apprehensive about the way it was going.
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Manufacturing GDP
February’s PMI is particularly encouraging in suggesting the weak manufacturing result we saw in yesterday’s Q4 GDP report was transitory rather than the start of a genuine struggle.
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The local forestry industry is doing well. That said, its activity in the final quarter of 2016 eased from the level it spiked to in Q3.
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Exchange Rate
Supporting New Zealand’s manufacturing sector, in general, has been the recent moderation in the currency. Aided by a resurgent US dollar, NZD/USD (and NZD/CNY, for that matter) has dropped about 5% since early February.
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View full BNZ Manufacturing Snapshot