Summary When will fully-vaccinated international travellers be allowed to skip or shorten quarantine? The answer will be provided today. The Electricity Authority (EA) publishes its long-awaited market review today. As AGM season rolls on, Chorus, Skellerup and Michael Hill are among those providing a snapshot on the state of NZ’s economy today.
Electricity review The EA is due to publish its long-awaited review of the wholesale electricity market and spot prices today. Gentailers have seen no signs of a potential breaking up generation and retail, similar to the way telecommunications distribution and retail was broken up. Until an energy crunch hit Europe and China, electricity prices have been far higher in NZ than many places elsewhere, with supporters arguing the high prices mean investment in new generation is more attractive.
MIQ update More detail is expected to be provided today on shortened MIQ stays for fully vaccinated travellers. Covid-19 response minister Chris Hipkins has signalled managed isolation and quarantine (MIQ) system will be changed within weeks. In New South Wales, fully-vaccinated international travellers can skip quarantine from Nov 1.
Starlink effect The effects of competition from Starlink are likely to be a focus for analysts and investors when Chorus holds its AGM today. The telecommunications infrastructure provider’s profits for the past year were down on the previous year, due to competition and the effects of covid on demand.
Christmas campaign launched Michael Hill holds its AGM today, as it launches its Christmas campaign. The jewellery chain has been hit by lockdowns that meant closures of its shops across NZ and Australia, although overall it has seen sales and profits rise due to online shopping. NZ Windfarms and Skellerup also hold their annual meetings today.
Wetlands protection It’s the last day today to provide feedback on proposals aimed at protecting NZ’s remaining wetlands. Ninety per cent of wetlands have been lost since human settlement began and there is ongoing degradation and loss. The new proposal would make it easier to undertake maintenance and restoration activities in and around natural wetlands, and provide clearer rules around quarrying, landfills, cleanfills and managed fills, mineral mining and urban development.
Superhero expands Australian firm Superhero is working to add NZX-listed stocks as it plans to expand its retail investment platform into New Zealand. The retail brokerage firm, which launched last October, gives users low-cost access to the Australian and US share markets. It currently has 130,000 users and has raised $40 million this year alone. A recent funding round led by Perennial Value Management raised $15m from several Australian equity fund managers.
Falling mortgage demand Banks expect credit availability for home loans to contract significantly in the next six months but there will be much more credit demand from farmers and larger corporates. This is one of the findings of the Reserve Bank's latest survey of 12 banks, including all five of the largest banks, aimed at measuring demand and availability of credit.
Overseas bank review The Reserve Bank is hosting a webinar today as it continues its review of overseas banks operating in NZ. The bank is carrying out a review of branches of 12 overseas banks registered between 1987 and 2020. RBNZ deputy governor Geoff Bascand said: “We have launched a review of our current branch policy as in its present form it is not applied consistently to all the branches we supervise; and there are inherent limitations on our ability to apply our regulatory standards to all branches and to supervise them effectively.”
Holiday pay decision Businesses facing the potential liability for up to six years worth of extra holiday pay have been let off the hook with a court of appeal ruling. The court ruled short-term incentive payments do not have to be taken into account when calculating holiday pay.
Economic indicators Today’s second-tier economic indicators are worth a look, says the BNZ in its latest markets outlook. “Wednesday’s fleshed-out ANZ business survey for October will be most in focus. It will divulge the sector detail of soaring pricing intentions, which have proved very good told-you-so’s on the surge in CPI inflation now upon us. Wednesday’s merchandise trade figures for September will show annual growth in exports circa 10% and around 30% for imports … Wednesday afternoon’s new residential lending figures for September will have to abide the restrained level of home sales.”
Markets update US equities markets remained floating near record highs today, ahead of annual results from Twitter, Alphabet, Microsoft, Visa and Eli Lilly & Co among many other companies. The tech-heavy Nasdaq and the Dow Jones rose about 0.2%, while the S&P 500 rose 0.3%. The Stoxx Europe 600 index rose more than 0.5%, moving closer to a record with travel and leisure stocks providing buoyancy. The FTSE 100 rose for a third straight session, up 0.8% to hit a 17-month high. France’s CAC 40 rose 0.8% and Germany’s DAC 30 rose 1.01% higher.
