Investors watch for company profits
What you need to know on Monday morning, August 25.
- NZX50 up points (0.52 per cent) to 5166.995
- NZ dollar at US84.07 cents, A90.20c, 87.37 yen, 50.73p, 63.47€c
- Brent crude oil at US$102.10 a barrel (down US53c)
- Spot gold at US$1279.90 an ounce
What's on today
- Metlifecare full-year result
- Heartland Bank full-year result
- Chorus full-year result
- Intueri Education full-year result
Stocks to watch
- Chorus: it has been a tough year for embattled telecommunications infrastructure firm Chorus, which announces its full-year result today. Shares in the company have plunged by 41 per cent since this time last year, after a Commerce Commission ruling that would slash the price it can charge for access to its copper network from December this year. The dispute is ongoing and the Government has been warned Chorus may not be able to complete its ultra-fast broadband (UFB) contracts if the ruling stands.
Top international news
- Pressure is building within the Federal Reserve for officials to move as early as next month to more clearly acknowledge improvements in the US economy and lay the groundwork for the central bank's first interest-rate hike in nearly a decade.
According to some US central bankers and their close advisers, signs of economic resilience and growing anxiety about the risks of holding rates too low for too long have set the stage for an intense debate over rewriting their policy statement.
It is uncertain whether officials will use their upcoming meeting on September 16 and 17 to scrap key parts of the language they have been using to keep rate-hike expectations at bay, but if they do not, October looks like a good bet.
"Some shift of language is on the table, and should be on the table in the coming meetings," Atlanta Federal Reserve Bank president Dennis Lockhart, a policy centrist, said in an interview with Reuters.
While a handful of officials have argued for prompt changes, Lockhart said he thinks September "is still early".
Adding, dropping or adjusting even a few words in the Fed's post-meeting statement is a potentially treacherous task.
A miscommunication by the world's most powerful central bank could shock financial markets globally and, in a worst case, reverse the economic recovery it seeks to foster.
Something else for your morning
- A group of six New Zealand infant-formula manufacturers, including Synlait Milk, are battling to register with Chinese authorities to be able to start valuable exports to China.
The Ministry for Primary Industries and the Ministry of Foreign Affairs and Trade are working directly with their Chinese counterparts to complete the registration process for the remaining manufacturers "as soon as possible".
New Zealand already has a group of eight manufacturers of retail-ready infant formula registered by Chinese authorities to export infant formula to China.