AUSTRALIA'S economy has been clobbered by a stunning collapse in export earnings in the March quarter, all but ending any prospect of interest rates rising in the next few months.
In the biggest reversal since the 1970s, export volumes dived by 9 per cent for the quarter, mainly due to the impact of summer's natural disasters on shipments of coal and other natural resources.
Minerals and energy exports slumped by 14 per cent, and coal exports by 27 per cent.
Read more: http://www.theage.com.au/business/economy-hit-by-dive-in-exports-20110531-1feqy.html#ixzz1NzE04F5h
Tuesday, 31 May 2011
MSI Global Alliance ANZ Region: SMEs pass judgment on accountants, lawyers, banks,...
MSI Global Alliance ANZ Region: SMEs pass judgment on accountants, lawyers, banks,...: "MSI Global Alliance’s March 2011 survey of more than 600 Australian and 240 New Zealand business owners reveals that accountants are still t..."
MSI Global Alliance ANZ Region: NZ terms of trade rise to 37-year high
MSI Global Alliance ANZ Region: NZ terms of trade rise to 37-year high: "June 10(BusinessDesk) – New Zealand's terms of trade rose their highest level since 1974 in the first three months of this year, bolstered b..."
NZ terms of trade rise to 37-year high
June 10(BusinessDesk) – New Zealand's terms of trade rose their highest level since 1974 in the first three months of this year, bolstered by higher dairy, meat and petroleum prices.
Exports gained 6.3% in the three months ending March 31, outstripping the 5.4% increase in import prices, resulting in a 0.9% improvement in the terms of trade, according to Statistics New Zealand. The increase marks the sixth improvement in a row.
Merchandise export prices showed a marked recovery following a 0.5% rise in the December quarter, and a 0.1% fall in the three months ending Sept. 30.
Today's data add weight behind the growing levels of optimism around the economic recovery, with yesterday's National Bank Business Outlook survey for May showing business confidence jumped to 38.3 in the month, up from 14.2 in April.
Exports gained 6.3% in the three months ending March 31, outstripping the 5.4% increase in import prices, resulting in a 0.9% improvement in the terms of trade, according to Statistics New Zealand. The increase marks the sixth improvement in a row.
Merchandise export prices showed a marked recovery following a 0.5% rise in the December quarter, and a 0.1% fall in the three months ending Sept. 30.
Today's data add weight behind the growing levels of optimism around the economic recovery, with yesterday's National Bank Business Outlook survey for May showing business confidence jumped to 38.3 in the month, up from 14.2 in April.
Friday, 27 May 2011
ASB New Zealand’s strongest bank, by a whisker
ASB New Zealand’s strongest bank, by a whisker
By Pattrick SmellieMay 27 (BusinessDesk) – The international credit rating agency Moody’s Investors Services says New Zealand’s financially strongest bank is the ASB.
The ANZ/National Bank has heavy rural sector exposure, Westpac’s New Zealand operation is over-exposed to commercial property, and Bank of New Zealand has lent to too many of the same people, Moody’s says in a credit rating downgrade announcement made today.
All four of New Zealand’s major trading banks dropped from Aa2 credit ratings to Aa3, mirroring a similar drop from Aa1 to Aa2 dished out to the banks’ Australian parents.....
Click headline to read more....
Thursday, 26 May 2011
NZ Budget - cautious and safe?
Some have described the 2011 budget as cautious and safe. Cautious, yes. Safe – maybe politically, but not in terms of removing economic risks. And no one to my knowledge described it as strategic – constituting a coherent, medium-term plan for restoring balanced growth.
Arguably the two main economic problems facing the country are the structural imbalances and the slump in productivity growth, both of which the government inherited from its predecessor. Both originate with the enormous increase in government spending and regulation, and the anti-growth policies more generally, of the last decade.
The imbalances take the form of stagnation of output ....
Click on the headline link to read more
Arguably the two main economic problems facing the country are the structural imbalances and the slump in productivity growth, both of which the government inherited from its predecessor. Both originate with the enormous increase in government spending and regulation, and the anti-growth policies more generally, of the last decade.
The imbalances take the form of stagnation of output ....
Click on the headline link to read more
Voters vs. The Welfare State
Canada’s Prime Minister Stephen Harper, by winning an outright majority of seats in his country’s parliament for the first time since assuming office, continues a remarkable series of national election victories, backed by voters demanding at least a pause, and perhaps some reversal, of the growth of the welfare state.
Moreover, Harper’s victory follows the Republican Party’s resounding 2010 triumph in the United States’ mid-term election, a campaign largely fought on the size and scope of government, following the massive expansion of public spending in the wake of the financial crisis and recession. British Prime Minister David Cameron (who leads, as Harper did until recently, a center-right coalition government), likewise won on a platform to roll back the excesses of the welfare state.
Click on the link to read more
Moreover, Harper’s victory follows the Republican Party’s resounding 2010 triumph in the United States’ mid-term election, a campaign largely fought on the size and scope of government, following the massive expansion of public spending in the wake of the financial crisis and recession. British Prime Minister David Cameron (who leads, as Harper did until recently, a center-right coalition government), likewise won on a platform to roll back the excesses of the welfare state.
Click on the link to read more
Wednesday, 25 May 2011
ATO targets employers over living-away-from-home allowances
The ATO is stepping up efforts to target rorting of tax-free living-away-from-home allowances, amid fears employers and employees are using contrived arrangements to get a tax-free salary boost.
Fringe benefits tax rules allow employers to pay tax-free LAFM allowances to employees whose work requires them to temporarily relocate from their home. The allowances, which are generally tax free, cover food and accommodation.
However, in the last few months the ATO has been writing to employers who provide large LAFM allowances to staff to review their arrangements.
Read more from Smart Company.....
Fringe benefits tax rules allow employers to pay tax-free LAFM allowances to employees whose work requires them to temporarily relocate from their home. The allowances, which are generally tax free, cover food and accommodation.
However, in the last few months the ATO has been writing to employers who provide large LAFM allowances to staff to review their arrangements.
Read more from Smart Company.....
NZ inflation expectations grow, interest rates seen higher
May 24 (BusinessDesk) – New Zealand business managers expect inflation will accelerate over the next two years and interest rates will rise over the coming 12 months, according to the Reserve Bank’s survey of expectations.
The consumer price index is expected to reach 3.12% in a year’s time, up from the 2.87% year-ahead rate expected last quarter. CPI would speed to 3% in two years time, up from a previous estimate of 2.64%.
Quarterly CPI of 0.87% is expected for the three months ending June 30, up from a 0.77% rate see in the last survey. They would translate into annual inflation of 4.4% and 5.1% respectively.......
The consumer price index is expected to reach 3.12% in a year’s time, up from the 2.87% year-ahead rate expected last quarter. CPI would speed to 3% in two years time, up from a previous estimate of 2.64%.
Quarterly CPI of 0.87% is expected for the three months ending June 30, up from a 0.77% rate see in the last survey. They would translate into annual inflation of 4.4% and 5.1% respectively.......
Tuesday, 24 May 2011
SMEs pass judgment on accountants, lawyers, banks, financial planners and business coaches
MSI Global Alliance’s March 2011 survey of more than 600 Australian and 240 New Zealand business owners reveals that accountants are still the most trusted advisers when it comes to both general business advice, advice on business strategy and advising on personal tax structures with 64%. 38% and 90% of participants selecting them against a grouping of other advisers. Across a range of business and personal financial advice areas covered by the survey, participants were able to select their lawyer, their accountant, their bank, their business coach, financial planner or ‘none of the above’.......
Doing Business in New Zealand
Everything you need to know about doing business in NZ.... with local accountant and lawyer links via the MSI Global Alliance website....
Doing Business in Australia
Everything you need to know about doing business in Australia.... and with local accounting and legal experts accessible via the MSI website.
Comparing the New Zealand and Australian tax system
Easy to read snapshot comparing the New Zealand and Australian Tax Systems.... simply click on the link
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