The New Zealand dollar sagged to a new near-decade low against Australian dollar this week. It was more evidence of the robust state of the Australian economy. Figures out on Wednesday showed the Australian economy grew 0.9 percent last quarter. That followed the Reserve Bank of Australia’s decision to lift interest rates, taking the official rate across the Tasman to 150 basis points above the level in this country. BNZ strategist Mike Jones said the GDP data had showed Australian growth picked up to 2.7 percent year-on-year. The contrast with this country was obvious, annual GDP growth here expected to print closer to flat in the fourth quarter, Mr Jones said. So, despite an upbeat period for risk-sensitive currencies, the weakness of the New Zealand dollar against the Aussie was again our currency’s ‘ball and chain’ against the greenback. - NZPA
The Timaru businessman Allan Hubbard has sunk $152.5 million of extra money into South Canterbury Finance. When SCF hit trouble last year Mr Hubbard, 82, said he would back the company, which has 40,000 investors with $1.4 billion in investments, using his personal wealth. “On Sunday Mr Hubbard and his wife’s company, Southbury Corporation, sold its 100% shareholding in Helicopters NZ and 64% holding in Scales Corp to SCF, which is coming out of a turbulent 18 months,” The Timaru Herald reported. In return, Southbury got 317.7m newly issued, fully SCF-paid shares worth $152.5m (48c each) and $10m of cash. “The move covers most of SCF’s $154.9m loss for the six months to December 31, 2009. It means Mr Hubbard has in effect sunk his key assets into SCF … to keep it afloat.” - The Timaru Herald
The news from the Finance and Infrastructure Minister (Bill English) was as expected. No Crown fibre top-up under a National Infrastructure Plan released this week. Funds available for the ultrafast broadband project remain at $1.5 billion Government investment, to be matched by the private sector. Telecom, Vector, and TeamTalk (including CityLink) are among those vying for Crown fibre contracts. Lines company Vector is taking advantage of Telecom’s recent woes to gather public support for its bid to install “fibre to the door” of 450,000 Aucklanders, with simultaneous TV and social media campaigns. The complete investment programme: State Highways, $10.7b over 10 years; national grid, $3.3b over five years; urban broadband, $1.5b over 10 years; new schools and buildings, $2.7b over five years. Total Budget capital spending: $7.5b, 5 years. – The New Zealand Herald
The economy continues to recover but the household sector lost momentum in recent months, The Treasury says. Residential construction was expected to contribute strongly in coming quarters as building consents continued to rise. Employment was expected to begin to expand again in coming quarters But with more people seeking work and more firms able to increase work hours rather than employees, wage growth was likely to stay subdued. After retail sales rose in the December quarter, momentum might continue to ease in the short term, consumer and retailer confidence slipping. Even though uncertainty continued to dominate the global economy, Australia and Asia were recovering strongly, it said. That, along with a lower dollar and more positive outlook for manufacturing and construction, boded well for exporters. - The National Business Review
The number of forced sales last year reached the highest levels since records began, averaging more than eight mortgagee sales every day. The data, released by Terralink International, showed 3024 registered mortgagee sales during 2009. That compared with 1303 in 2008 and 475 in 2007. Mike Donald, Terralink managing director, said: “The worst affected areas were the regions that include our biggest cities, Auckland and Canterbury … The hardest-hit smaller regions were Northland (up from 28 mortgagee sales in 2007 to 222 in 2009), and Hawke’s Bay (17 in 2007 to 131 in 2009).” Mr Donald did not expect the number of mortgagee sales to decline significantly until at least the last quarter of 2010. Terralink derives its mortgagee data from legal registrations of actual mortgagee sales. – Otago DailyTimes
Turners & Growers Ltd has reported a 34 percent fall in profit in the 12 months to December 31. People ate fewer fresh fruit and vegetables during the recession, it said. The profit of $9.5 million was down from $14.1m last year. The board has yet to decide on a dividend. “Historically, the fresh produce industry has been relatively immune from the effects of economic recessions, but in 2009 things have been very different,” the company said. Consumers globally have reduced their purchases of fruit and vegetables and gone downmarket, seeking the cheapest offerings, specials and discounts. The company moved to reduce overhead costs. Turners & Growers had recently bought a transport business in the South Island intending to provide a long-haul refrigerated service that mirrored the North Island operation. -Otago Daily Times
The New Zealand dollar sagged to a new near-decade low against Australian dollar this week. It was more evidence of the robust state of the Australian economy. Figures out on Wednesday showed the Australian economy grew 0.9 percent last quarter. That followed the Reserve Bank of Australia’s decision to lift interest rates, taking the official rate across the Tasman to 150 basis points above the level in this country. BNZ strategist Mike Jones said the GDP data had showed Australian growth picked up to 2.7 percent year-on-year. The contrast with this country was obvious, annual GDP growth here expected to print closer to flat in the fourth quarter, Mr Jones said. So, despite an upbeat period for risk-sensitive currencies, the weakness of the New Zealand dollar against the Aussie was again our currency’s ‘ball and chain’ against the greenback. - 
The Timaru businessman Allan Hubbard has sunk $152.5 million of extra money into South Canterbury Finance. When SCF hit trouble last year Mr Hubbard, 82, said he would back the company, which has 40,000 investors with $1.4 billion in investments, using his personal wealth. “On Sunday Mr Hubbard and his wife’s company, Southbury Corporation, sold its 100% shareholding in Helicopters NZ and 64% holding in Scales Corp to SCF, which is coming out of a turbulent 18 months,” 
The news from the Finance and Infrastructure Minister (Bill English) was as expected. No Crown fibre top-up under a National Infrastructure Plan released this week. Funds available for the ultrafast broadband project remain at $1.5 billion Government investment, to be matched by the private sector. Telecom, Vector, and TeamTalk (including CityLink) are among those vying for Crown fibre contracts. Lines company Vector is taking advantage of Telecom’s recent woes to gather public support for its bid to install “fibre to the door” of 450,000 Aucklanders, with simultaneous TV and social media campaigns. The complete investment programme: State Highways, $10.7b over 10 years; national grid, $3.3b over five years; urban broadband, $1.5b over 10 years; new schools and buildings, $2.7b over five years. Total Budget capital spending: $7.5b, 5 years.
The economy continues to recover but the household sector lost momentum in recent months, The Treasury says. Residential construction was expected to contribute strongly in coming quarters as building consents continued to rise. Employment was expected to begin to expand again in coming quarters But with more people seeking work and more firms able to increase work hours rather than employees, wage growth was likely to stay subdued. After retail sales rose in the December quarter, momentum might continue to ease in the short term, consumer and retailer confidence slipping. Even though uncertainty continued to dominate the global economy, Australia and Asia were recovering strongly, it said. That, along with a lower dollar and more positive outlook for manufacturing and construction, boded well for exporters. - 
The number of forced sales last year reached the highest levels since records began, averaging more than eight mortgagee sales every day. The data, released by Terralink International, showed 3024 registered mortgagee sales during 2009. That compared with 1303 in 2008 and 475 in 2007. Mike Donald, Terralink managing director, said: “The worst affected areas were the regions that include our biggest cities, Auckland and Canterbury … The hardest-hit smaller regions were Northland (up from 28 mortgagee sales in 2007 to 222 in 2009), and Hawke’s Bay (17 in 2007 to 131 in 2009).” Mr Donald did not expect the number of mortgagee sales to decline significantly until at least the last quarter of 2010. Terralink derives its mortgagee data from legal registrations of actual mortgagee sales. – 
Turners & Growers Ltd has reported a 34 percent fall in profit in the 12 months to December 31. People ate fewer fresh fruit and vegetables during the recession, it said. The profit of $9.5 million was down from $14.1m last year. The board has yet to decide on a dividend. “Historically, the fresh produce industry has been relatively immune from the effects of economic recessions, but in 2009 things have been very different,” the company said. Consumers globally have reduced their purchases of fruit and vegetables and gone downmarket, seeking the cheapest offerings, specials and discounts. The company moved to reduce overhead costs. Turners & Growers had recently bought a transport business in the South Island intending to provide a long-haul refrigerated service that mirrored the North Island operation. 