What you need to know on Tuesday morning, August 5.
- NZX50 down 19.246 points (0.37 per cent) to 5090.685
- NZ dollar at US85.20 cents, A91.29c, 87.3yen, 50.55p, 63.49€c
- Brent crude oil at US$105.37 a barrel (up US53c)
- Spot gold at US$1287.90 an ounce
What's on today
- Goodman Property Trust AGM, 1.30pm, Waipuna Highbrook Conference Centre 60 Highbrook Drive, Highbrook Business Park, East Tamaki, Auckland
- GlobalDairyTrade auction (overnight)
Stocks to watch
- New Zealand Oil and Gas: A new report has labelled NZOG shares overvalued, with Morningstar saying a fair value would be 60c a share. The shares, which opened yesterday at 79.5c, "are too risky for most investors", the investment research firm said in a report. But, for those looking for small-company oil and gas exposure, the NZOG did have some "attractive attributes", including a potential "valuation upside" from exploration, Morningstar said.
Top international news
- McDonald's sales in markets including China and Japan, are experiencing a "significant negative impact" since a food-safety scandal in China a fortnight ago forced it to stop the sale of items such as Big Macs and Spicy McWings.
The affected markets account for about 10 per cent of its total revenue, the world's largest burger chain said in a regulatory filing yesterday.
"Risks have ticked up in the near-term regarding McDonald's business in China and Japan," Janney Capital Markets analyst Mark Kalinowski wrote in an advisory.
McDonald's said that while the scandal would hurt results in the near term, it could not estimate the impact on earnings for the full year.
About 15 per cent of McDonald's operating profit comes from the Asia/Pacific, Middle East, and Africa region, which includes China and Japan.
Something else for your morning
- The Chinese business that plans to buy Lochinver Station near Taupo is disappointed the purchase has become a political football. And Pengxin International says it has not ruled out further farm purchases. Pengxin bought 16 farms, covering about 8000 hectares, in the collapsed Crafar group in 2012 for $200 million. The station comprises 13,800 hectares, but of that only 9500 hectares are now viable farmland.