New Zealand Report: Selwyn Manning joins FiveAA’s breakfast hosts Jane Reilly, Dave Penberthy and Mark Aiston to deliver the week’s New Zealand Report. This bulletin: Business Confidence and the state of the economy, the highs and lows + Sport… All Blacks V Wallabies square off this Saturday. Can the Aussies Beat the Rugby world champions? – Recorded live on 7/08/15.
New Zealand Economy: (Ref. https://eveningreport.nz/2015/08/06/confidence-survey-results-august-2015/ )
New Zealand’s economic environment is transitioning away from a reliance on the dominant dairy sector.
The Bank of New Zealand’s chief economist Tony Alexander has produced analysis detailing how businesses and services that remain reliant on the country’s dairy sector are struggling, while those aligned to construction, horticulture, ICT, and some service sectors are doing well.
The business confidence survey reveals:
House construction is “very strong and rising” in Auckland, Hamilton and Tauranga… Skilled labour is however in short supply. While the property development sector is booming, and there are signs this month that the rocketing house values in Auckland are spilling over into other regions.
Horticulture is also booming especially with pipfruit, Kiwifruit, avocadoes, so is the wine export industry, which is very buoyant due to high demand in offshore markets and a lower New Zealand dollar.
While beef, lamb, venison and bee farmers are doing ok, dairy farmers, especially share-milkers, are struggling with many fearing insolvency. Their situation worsened this week after global milk commodity prices collapsed further.
Pastures are also drier than normal for this time of year. It appears the impact of El Niño is in evidence and is causing farmers to cut back on stock numbers.
Forestry is struggling.
The Bank of New Zealand confidence survey also revealed a downturn in the wider farming service sector. “Capital spending is falling away rapidly.” There has been a noted downturn in the sales of tractors, farm bikes, and farm machinery.
Manufacturing in the value added sectors is doing very well.
Rugby: If you are keen on sport, or even enjoy the Haka, then check out the All Blacks V Wallabies on Saturday evening in Sydney. It doesn’t get better than this.
The two teams are polishing up their form in preparation for the Rugby World Cup… Set to begin next month in England.
The All Blacks are the current world champions of course, and hold the Bledisloe Cup which the All Blacks and the Wallabies have battled over for decades.
Some pundits here insist the Wallabies are going to win on Saturday. And it is the first time Australia will start with its two star open side flankers David Pocock and Michael Hooper. That has got us Kiwis a bit worried.
But the All Blacks coach Steve Hansen says: “Whilst that gives (the Wallabies) strength in some areas it probably weakens them in others.”
Players to watch:
All Black Dan Carter, the world class act in the number 10 jersey, will play his last game in the black jersey in Australia.
All Black Nehe Milner-Skudder. A powerhouse.
Wallabies Israel Folau, pundits here say Australia’s fullback is the best all round athlete in international rugby.