Australian retail sales better than expected in July

AUSTRALIA'S economy is performing slightly better than expected, with a small pick-up in retail sales in July and strong growth in business investment plans for capital expenditure.

Retail sales rose half a per cent in July, the Australian Bureau of Statistics (ABS) said today.

That was above economists' forecasts of an 0.3 per cent rise.

More significantly, new private capital expenditure rose 4.9 per cent in real terms, seasonally adjusted, in the June quarter, the ABS said.

The median market forecast was for a rise of 4.0 per cent in the June quarter.

RBC Capital Markets senior economist Su-Lin Ong said both releases had surprised to the upside....

Read more: http://www.news.com.au/business/retail-sales-capex-strength-surprise/story-e6frfm1i-1226127287801#ixzz1WgFTu6Gm

NZ Wool Market firms despite strong NZ Dollar

New Zealand Wool Services International Ltd reports that prices firmed at today’s wool sale, despite a rising New Zealand dollar over the last week.

Of the 7800 bales on offer at the auction of South Island wool, 86 per cent sold.

According to New Zealand Wool Services International general manager John Dawson, the impact of a resurgent New Zealand dollar was negligible as short supply combined with steady demand to drive prices up.

“Compared to last week’s sale on 25 August, the dollar rose 2.93 per cent against the weighted indicator for the main wool trading currencies. However, this potentially negative factor had practically no impact on a market that is under the influence of demand and supply.

“A small volume of merino fleece on offer today was up to 1.5 per cent dearer than prices for the nominal offering at the previous sale.

NZ Trustees to come under much stricter supervision

Trustees will face a new licensing regime and tougher minimum requirements once a new supervision scheme comes into effect in October.

Commerce Minister Simon Power announced the regime for all corporate trustees, including trustees of non-restricted KiwiSaver schemes and retirement village supervisors, will start on October 1 under the Securities Trustees and Statutory Supervisors Act 2011.

Under the legislation, trustees will have to meet certain conditions to monitor issuers of various securities.

The regime addresses failures highlighted in the finance company collapses, and will help to protect investors' interests, and enhance market confidence, Power said.

Australian 'Fair Work' clauses 'too risky' for small business

SMALL businesses in Australia are too afraid to take advantage of confusing "flexible" contracts, a peak body said.

The Individual Flexibility Arrangements were introduced as part of the Fair Work Act – which replaced the controversial WorkChoices legislation.

They allow employees to negotiate changes in ....

Read more: http://www.news.com.au/business/your-business/fair-work-clauses-too-risky-for-small-business/story-fn9evb64-1226126192263#ixzz1WZ1TuFo2

NZ Wineries open and waiting for business

Wine industry operators aimed at the upper end of the market are reporting sluggish bookings ahead of the Rugby World Cup but are hoping for a late rush.

The event is forecast to attract up to 95,000 visitors from overseas, many expected to be high-income earners and interested in wine tourism.

One tour operator, Phil Parker, said it appeared as if rugby tourists would book once they were here.

RBA boss paints a brightish picture

A grip on inflation, banks in good health and a strong currency will keep Australia in a secure economic position, says RBA governer Glenn Stevens.

Speaking at today's public hearing of the House of Representatives Economics Committee, Stevens told the committee that even the tendency of Australians to save rather than spend wasn't such a bad thing, despite the complaints of the retail sector.

"If we are entering another period of weaker international conditions, this is a pretty good starting point from which to do so," Mr Stevens said.

Read more: http://www.news.com.au/business/rba-boss-paints-a-brightish-picture/story-e6frfm1i-1226122978234#ixzz1WBP3RQSQ

Aussie dollar lower amid China growth worries

THE Australian dollar was lower today after a news article raised fears about the continuation of China's economic boom.

At 1200 AEST today, the Australian dollar was trading at 104.43 US cents, down from 104.80 cents yesterday.

Since 0700 (AEST) today, the local unit traded between 104.22 US cents and 104.76 cents.
After trading in a tight range for most of the morning, the Australian dollar fell half a US cent to its morning low point after a FT.com article raised fears about Chinese economic growth.


Read more: http://www.news.com.au/business/dollar-lower-amid-china-growth-worries/story-e6frfm1i-1226122019720#ixzz1W5LBxhDD

NZ Consumer confidence drives retail spending

New Zealand retail spending grew at a faster pace than forecast in the June quarter as households feel more confident to hit the stores.

The total volume of retail spending grew a seasonally adjusted 0.9 per cent in the three months ended June 30, according to Statistics New Zealand data, beating the 0.6 per cent expansion picked in a Reuters survey of economists. Stripping out motor vehicle related spending, the core figure grew 1 per cent.

NZ Supreme Court backs taxman in landmark avoidance case

The New Zealand Supreme Court has sided with the tax department in its judgment on a landmark tax avoidance case involving two Christchurch surgeons who used company structures and family trusts to artificially lower their salaries to avoid the top personal income tax rate.

The unanimous decision of the bench of five Supreme Court judges, led by Chief Justice Sian Elias, agreed with the Court of Appeal that "income derived from personal exertion should belong in its appropriate taxation band and should not be inappropriately diverted away."

CLIENTS OK ABOUT FINANCIAL PLANNING OPT-IN

Financial planners might not like the proposed two-year 'opt-in' rule or so-called 'dollar fee' invoicing, but that is what most clients really want, according to a study conducted by MSI Global Alliance.

The MSI Global Alliance - which markets itself as one of the world's leading international alliances of independent legal and accounting firms - has published the findings of a survey of 570 business owners which it says confirms pressure from clients for financial planners to move to charging time-based fees.

And while the survey outcome clearly contains some negative results, it also noted that planners were "the most trusted source of retirement planning advice".

Soaring Australian dollar claims manufacturing victims

(Reuters) - Australia's strong currency struck a heavy blow to the nation's manufacturing industry on Monday when BlueScope Steel (BSL.AX), its largest steelmaker, unveiled plans to shut half of its steel-making capacity, cease exports and slash 1,000 jobs.

The soaring Australian dollar has inflicted an increasing toll on manufacturers, hitting earnings at a time when raw-material costs are also surging, in a trend already familiar to other nations with strong currencies such as Japan.

NZ dollar follows sharemarkets lower

The New Zealand dollar fell against the US dollar after global equity markets surrendered last week's gains amid heightened recession fears.

The New Zealand dollar fell to 81.65 US cents from 82.18 on Friday in New York, and declined to 70.29 on the trade-weighted index of major trading partners' currencies from 70.79.

Service sector expansion keeps economy on track

New Zealand's service sector grew for a sixth month in July in a sign the economic recovery has enough momentum to ride out the latest bout of global volatility.
The BNZ-Business NZ Performance of Services Index slipped 0.2 points to 54.5 last month, with new orders extending gains to 58.6 while supplier delivers rose 0.9 points to 52, underpinning the sector's growth.

Activity/sales fell 1.3 points to 56.3 and stocks/inventories slipped 0.4 points to 53.5. Employment dropped 2.1 points to 48.8, indicating the sector is paring back on hiring new staff.

"Today's PSI was yet another reminder that the New Zealand economy is, or at least was, headed in the right direction," BNZ head of research Stephen Toplis said in his report.

"We stick to our view that there was sufficient pre-volatility momentum in the economy to provide some confidence that we might fumble our way through this mess."

Bonds firmer as sentiment unravels

Bonds firmer as sentiment unravels

THE Australian bond market has opened firmer today, after risk sentiment unravelled as poor US economic data collided with European fears over sovereign debt and bank liquidity.

At 0830 AEST today, the September 10-year bond futures contract was trading at 95.765 (implying a yield of 4.235 per cent), up from 95.640 (4.360 per cent) yesterday.
The September three-year bond futures contract was at 96.420 (3.58 per cent), up from 96.300 (3.700 per cent).
ANZ chief economist Warren Hogan said mounting concerns over European bank funding and weak US manufacturing data contributed to a significant sell-off of risk assets overnight.
European bank stocks took a battering on fears over the global economic recovery and renewed concerns about Greece's bailout.


Read more: http://www.news.com.au/business/bonds-firmer-as-sentiment-unravels/story-e6frfm1i-1226117949523#ixzz1VQpIbsj5