Business week in review

Petrol prices, broadband plans, interest rates and Phoenix fans were among the most popular business stories this week.

Ambitious plans by three of the country’s top businessmen to build a $900m international fibre cable across the Pacific to give virtually unlimited high speed broadband for New Zealand and Australia proved popular.

Pump pain also captured Stuff readers’ attention this week, following hikes by Shell, Mobil, BP and Caltex that pushed petrol prices to an 18-month high.

Meanwhile, Phoenix fever invaded the business pages, with tourism officials estimating football fans injected about $4-5 million into Wellington’s economy last weekend  and Briscoe crediting Phoenix fans with helping boost its annual net profit by 80 per cent.

In economic news this week, the Reserve Bank stuck to the script and, as expected, kept official interest rates unchanged at 2.5 per cent. Mortgage holders can expect rates to stay on hold until the middle of the year. but should prepare for interest rates to go up by about 3 per cent by 2012.

Although the economic recovery in New Zealand isn’t yet strong enough to warrant a rate hike, Australia’s economy continues to go gangbusters. The number of job ads posted across the Tasman last month recorded the biggest increase in 11 years, as Aussie employers look to hire more staff.

KiwiSaver was also in the news this week, with research showing almost half of KiwiSaver’s members thought their money was guaranteed by the government.

In light of worries about the integrity of KiwiSaver schemes, the government said it would look to fast track regulation of the managed funds sector, to make sure investors’ best interests are being looked after.

Looking offshore, the US posted its largest monthly budget deficit in history although its trade deficit shrank unexpectedly.

Toyota’s woes continued, as US consumers launched class action suits that could cost the carmaker billions.

Life is also not getting any easier for the victims of convicted US fraudster Bernie Madoff. They are now being targeted by online scammers, who are trying to con them into handing over their financial data in the hopes of getting compensation.

Global share markets are also looking healthier, with the MSCI's all-country world stock index up around 73 per cent from the lows hit during the worst of the financial crisis.

The head of the International Monetary Fund is taking a glass half empty approach to any recovery, warning we need to be preparing for the next big economic catastrophe.

The rich and the mega-rich are already reaping rewards from the reinvigorated financial and economic climate.

Reports out this week show that the number of millionaires in the US is on the rise, while the world’s billionaires have also been adding to their coffers.

Mexican telecoms tycoon Carlos Slim replaced Bill Gates as the world’s richest man, according to Forbes  latest billionaire list.

New Zealand’s Graeme Hart was once again named the richest man in Australasia, although his US$5.3 billion (NZ$7.5b) fortune could be considered small change next to Slim’s US$53.5 billion.

- © Fairfax NZ News