Top Scoops

Book Reviews | Gordon Campbell | Scoop News | Wellington Scoop | Community Scoop | Search

 

Molesworth & Featherston (Weekend) – April 1 2006

Molesworth & Featherston - Weekend Update edition


Business and Political News
1 April 2006
molesworthandfeatherston.co.nz

In the latest edition:

Direct Link To This Week's Weekend Update Edition:
http://molesworthandfeatherston.info/pdf/MandF1Apr06L.pdf

Economy
Tide Turns

The signs are almost imperceptible but the tide has changed in analysts’ confidence about the economy.

The sharemarket has been surging, mainly because the Reserve Bank looks much more likely to begin the cycle of interest rate decreases later this year.

With the dollar at a pleasant 60 US cents and back to 85 cents Australian, the pressure is off the tradable sector. House prices are beginning to look more stable, which takes the pressure off the Reserve Bank’s biggest worry.

As we reported last weekend, things need to get better, though the finance minister is still pretty optimistic. He thinks we are probably through the bottom of the slow-down and we could see positive growth when figures for the first quarter of this year are produced.

Business confidence figures remain bleak. But the glimmer of an improvement was there in the National Bank's business outlook survey. A net 51 per cent of businesses expect conditions to worsen in the coming year. That's a very low level of confidence, but the good news is fewer businesses are gloomy than last month when a net 65 per cent said they thought business conditions would worsen this year.

“Every indicator within the survey has recorded an improvement,” the bank reported. “The improvement is widespread across retailers, manufacturing, agriculture, construction and the service sector.“

But if things are getting better, any recovery will not produce roaring growth rates, at least this year.

“Weak economic performance has been a key driver of the recent fall in the New Zealand dollar. The adjustment in the exchange rate will provide impetus to growth, and is already being reflected by firms’ export intentions increasing for three successive months,” the National Bank said.

The Bank’s economists and its business survey respondents are convinced interest rates will begin to come down this year, not next as the Reserve Bank has indicated.

ROLLING POLL

Percent Seats
Labour 41.86 53
National 42.17 53
Greens 6.85 9
NZ First 3.22 0
Maori 1.91 4
United F 1.40 2
Act 0.94 1
Progressive 0.16 1

************

The Weekend Update is a complimentary, condensed edition of the paid-subscription only Governor’s Edition published last Tuesday.

For the inside oil on politics and business in Wellington - and to subscribe to the Governor's edition see…

http://www.molesworthandfeatherston.co.nz Pay for a Governor's Editions subscription HERE

Direct Link To This Week's Weekend Update Edition:
http://molesworthandfeatherston.info/pdf/MandF1Apr06L.pdf

© Scoop Media

 
 
 
Top Scoops Headlines

 

Using Scoop Professionally? Introducing ScoopPro

ScoopPro is a new offering aimed at ensuring professional users get the most out of Scoop and support us to continue improving it so that Scoop continues to exist as a public service for all New Zealanders. More>>

ALSO:

Don Rennie: Is It Time To Take ACC Back To First Principles?

The word “investing” has played a major part in the operations of the ACC since 1998... More>>

27-29 Sept: Social Enterprise World Forum Live Blog

1600+ delegates from more than 45 countries have came together to share wisdom, build networks and discuss how to create a more sustainable future using social enterprise as a vehicle. Attending the Forum were social enterprise practitioners, social entrepreneurs, policy makers, community leaders, investors, activists, academics and more from across the globe... More>>

HiveMind Report: A Universal Basic Income For Aotearoa NZ

Results from this HiveMind suggests that an overwhelming majority of Kiwis believe that due to changing circumstances and inefficiencies in the current system, we need a better system to take care of welfare of struggling members in our society. More>>

ALSO:

Scoop Hivemind: Medical Cannabis - Co-Creating A Policy For Aotearoa

Welcome to the fourth and final HiveMind for Scoop’s Opening the Election campaign for 2017. This HiveMind explores the question: what would a fair, humane and safe Medical Cannabis policy look like for Aotearoa, NZ in 2018? More>>

ALSO: