What you need to know in business: July 29
What you need to know on Tuesday morning, July 29.
- NZX50 down 7.126 points (0.14 per cent) to 5187.142
- NZ dollar at US85.44 cents, A90.82c, 87.05yen, 50.31p, 63.58€c
- Brent crude oil at US$107.56 a barrel (down US83c)
- Spot gold at US$1305.20 an ounce
WHAT'S ON TODAY
- Green Cross Health AGM, 2.30pm, Ellerslie Convention Centre, Ellerslie Racecourse, 80-100 Ascot Avenue, Auckland
STOCKS TO WATCH
- Fonterra Shareholders Fund: The fund will again be in the spotlight today when Fonterra announces its revised payout forecast for this season. The present forecast for a farm-gate milk is $7 a kilogram of milk solids, down from $8.40 for last season, but with the New Zealand dollar high and dairy prices still falling, economists are predicting the milk price could fall to $6 or possibly lower.
TOP INTERNATIONAL NEWS
- US economic growth is likely rebounded in the second-quarter from a winter-induced slump at the start of the year and will probably continue to gather momentum through the rest of 2014.
Gross domestic product likely grew at a 3 per cent annual rate, according to a Reuters survey of economists, lifted by an acceleration in both consumer spending and stock accumulation by businesses.
Earlier in the second quarter, growth estimates were as high as 4 per cent, but they were lowered as consumer spending and business investment rebounded less than expected.
With output having contracted at a 2.9 per cent pace in January-March, first-half growth was likely flat. As such, growth for the year as a whole could average below 2 per cent.
The economy was slammed by an unusually cold winter early this year and also hurt by a slower pace of inventory accumulation and the expiration of long-term unemployment benefits - temporary factors that have since lifted.
SOMETHING ELSE FOR YOUR MORNING
- The "Big Mac" index is showing New Zealand's dollar is massively over-valued against several major currencies. Invented by The Economist in 1986, the index is based on the price of a McDonald's Big Mac burger in each country. While not to be taken too seriously, it does highlight distortions in the currency market.