Latest / The SME Stream / SME Stream Weekly Wrap - 18th October

Transcript

SME Stream Weekly Wrap - 18th October · The SME Stream

• 0:01
  Speaker 1: Kyoda and welcome to the smeedstream weekly wrap Up, brought
• 0:04
  Speaker 1: to you by B and Z. My name is Wilhelmina Shrimpton,
• 0:06
  Speaker 1: and every week I'll bring you a short, sharp and
• 0:09
  Speaker 1: very sweet summary of all of the latest business news.
• 0:13
  Speaker 1: As most of us know, when it comes to business,
• 0:15
  Speaker 1: there's peaks, there's pitfalls, and everything in between. Often it's
• 0:19
  Speaker 1: hard to keep up with your own day to day,
• 0:21
  Speaker 1: let alone what's happening with the economy and how it
• 0:23
  Speaker 1: affects you. So that's where I come in, wrapping up
• 0:26
  Speaker 1: everything you need to know or may have missed over
• 0:29
  Speaker 1: the past week. And as a small business owner myself,
• 0:31
  Speaker 1: I'll be on this journey with you too. This week,
• 0:34
  Speaker 1: inflation is down, so does that mean things are actually cheaper?
• 0:38
  Speaker 1: And what can we expect from next month's OCR announcement.
• 0:41
  Speaker 1: We talk retail spend, deep tech, what it is and
• 0:44
  Speaker 1: what it offers, as well as a really inspiring chat
• 0:48
  Speaker 1: with one of the co founders of sustainable Kiwishoe company.
• 0:51
  Speaker 2: All Birds.
• 0:56
  Speaker 1: It's music to the airs of the government, the Reserve Bank.
• 0:59
  Speaker 1: In deed, most kiwis with inflation now back in its
• 1:03
  Speaker 1: box and momentum building in the battle to keep the
• 1:05
  Speaker 1: cost of living in check. Annual inflation dropped to its
• 1:09
  Speaker 1: lowest level in three and a half years, sitting at
• 1:12
  Speaker 1: two point two percent, just over a point less than
• 1:15
  Speaker 1: the June quarter when it was three point three percent.
• 1:18
  Speaker 3: And so this is a significant milestone for our economy.
• 1:21
  Speaker 1: It means that the error of crushing price increases is over.
• 1:26
  Speaker 1: It's a big day. Inflation is now well within the
• 1:29
  Speaker 1: reserve banks target range of one to three percent, and
• 1:31
  Speaker 1: experts say that also means good news for the lever
• 1:34
  Speaker 1: that controls it, and that's the official cash rate.
• 1:37
  Speaker 3: It does open that strong possibility of a seventy five
• 1:40
  Speaker 3: basis point cut in November because they'll be taking a
• 1:43
  Speaker 3: twelve week break over summer.
• 1:44
  Speaker 1: If that is the case, the OZR could dip as
• 1:46
  Speaker 1: low as four percent before the end of the year.
• 1:49
  Speaker 1: Now would that not be the best early Christmas present
• 1:52
  Speaker 1: you can find? That delightfully positive sentiment has also been
• 1:55
  Speaker 1: echoed by banks that continue to slash interest rates and
• 1:59
  Speaker 1: response a beautiful light at the end of the tunnel
• 2:01
  Speaker 1: for mortgage holders set to refix in the coming months.
• 2:04
  Speaker 2: People are moving towards the shorter term interest rates now
• 2:08
  Speaker 2: because they know the interest rates are on the way down,
• 2:11
  Speaker 2: so you know people are they're not wanting to fix
• 2:14
  Speaker 2: for longer term, which I think is a smart decision
• 2:17
  Speaker 2: because I do think there is going to be some
• 2:18
  Speaker 2: more reductions and interest rates.
• 2:20
  Speaker 1: Lower interest rates, of course mean more cash in your
• 2:23
  Speaker 1: back pocket and a timely boost for businesses, retailers and hospitality.
• 2:28
  Speaker 1: So how are prices tracking?
• 2:30
  Speaker 2: It?
• 2:30
  Speaker 1: Is anything actually cheaper when the time comes to swipe
• 2:33
  Speaker 1: your card at the checkout? While stats NZ, which releases
• 2:36
  Speaker 1: the inflation figures, says overall prices are still rising, but
• 2:40
  Speaker 1: not as previously recorded. The price of vegetables dropped seventeen
• 2:45
  Speaker 1: point nine percent. That's one way to stay healthy, and
• 2:48
  Speaker 1: thanks to the accine of Auckland's fuel tax, the price
• 2:51
  Speaker 1: of petrol also dipped by eight percent. But while overall
• 2:54
  Speaker 1: inflation is under control, domestically driven non tradable inflation is
• 2:59
  Speaker 1: still tracking higher.
• 3:00
  Speaker 4: That's at four point nine percent, so people will still
• 3:04
  Speaker 4: be feeling some of that. And yeah, the big ones rates,
• 3:07
  Speaker 4: insurance costs and rents were still very high.
• 3:11
  Speaker 1: The reintroduction of prescription charges also provided a hit, with
• 3:14
  Speaker 1: prices increasing by seventeen percent, but a byproduct of putting
• 3:18
  Speaker 1: the brakes on our spending and reducing inflation has been
• 3:22
  Speaker 1: unfortunately a boost to the unemployment rate. New Ministry of
• 3:26
  Speaker 1: Social Development figures revealed the number of people on the
• 3:28
  Speaker 1: benefit increased by almost twelve percent in the past year,
• 3:32
  Speaker 1: with unemployment rising to four point six percent in the
• 3:35
  Speaker 1: June quarter, and that's a number that's expected to climb
• 3:38
  Speaker 1: when fresh figures are released in just over two weeks time.
• 3:41
  Speaker 1: You can hear the experts crunch the numbers and give
• 3:44
  Speaker 1: more insights on inflation and OCR during interviews with Infometrics
• 3:48
  Speaker 1: Principal economist Brad Elson, New Zealand Herald Business editor at
• 3:52
  Speaker 1: Large Liam Dan and financial advisor Debbie Roberts on the
• 3:55
  Speaker 1: SMEE stream. Now, well, it can take a while for
• 3:58
  Speaker 1: interest rate cuts to mate realizes into that cold, hard cash.
• 4:02
  Speaker 1: The latest retail spend data from stats in z shows
• 4:06
  Speaker 1: the tide is actually starting to slowly turn now. It
• 4:09
  Speaker 1: turns out a few of us gave our credit cards
• 4:11
  Speaker 1: and debit cards a bit of a workout last month,
• 4:15
  Speaker 1: with call retail spending edging up by zero point three
• 4:18
  Speaker 1: percent or nineteen million dollars compared to August. Kiwis were
• 4:22
  Speaker 1: perhaps taking their new outfits for a spin while dining
• 4:25
  Speaker 1: out with hospitality, consumables and apparel, all recording a small
• 4:29
  Speaker 1: boost and it could actually be even cheaper soon to
• 4:33
  Speaker 1: use your debit and credit card. With the Coalition government
• 4:36
  Speaker 1: hinting and imposing a cap on surcharges.
• 4:39
  Speaker 5: The worst thing at the moment when you go into
• 4:41
  Speaker 5: a shop to buy coffee, you don't know what is
• 4:42
  Speaker 5: the search arge. So we want to deal with both
• 4:45
  Speaker 5: debit cards and credit cards. The Comments Commission's just finished
• 4:49
  Speaker 5: consultation process and it's had a lot of submissions and
• 4:52
  Speaker 5: we expect to make an announcement the next few weeks.
• 4:56
  Speaker 1: It follows a move by Australia which is set to
• 4:58
  Speaker 1: ban debit card search ear You can hear more about
• 5:01
  Speaker 1: the plans and the full interview with Commerce and Consumer
• 5:04
  Speaker 1: Affairs Minister Andrew Bailey on the speed Stream.
• 5:07
  Speaker 4: There's been a massive global trend towards climate investing, sustainability
• 5:11
  Speaker 4: and impact investing, and really for the most part, deep
• 5:16
  Speaker 4: tech is synonymous with those things.
• 5:18
  Speaker 1: That's the voice of WNT Ventures managing partner Carl Jones
• 5:22
  Speaker 1: speaking on the Business of Tech podcast about deep tech.
• 5:25
  Speaker 1: They you'd be forgiven if this is the first time
• 5:27
  Speaker 1: that you've heard about deep tech, because I am right
• 5:30
  Speaker 1: there with you. But it turns out there's a lot
• 5:33
  Speaker 1: to learn from this chat. And while deep tech can
• 5:35
  Speaker 1: actually be hard to define, broadly speaking, it refers to
• 5:38
  Speaker 1: startups with tech driven solutions based on mathematical, scientific, or
• 5:43
  Speaker 1: engineering challenges. Now Kyl's team helps to turn deep tech
• 5:47
  Speaker 1: into companies and financial returns with success stories like Foundry Lab,
• 5:53
  Speaker 1: Mint Innovation, and Carbon Crop. He chats about the industry's
• 5:56
  Speaker 1: rapid growth and the big appetite for deep tech and news.
• 6:00
  Speaker 4: I think the outlook is great. I think there's a
• 6:02
  Speaker 4: lot of commitment from New Zealand government into deep tech.
• 6:08
  Speaker 4: There's a lot of commitment from New Zealand investors. There's
• 6:11
  Speaker 4: plenty of opportunities coming out in the market which had
• 6:14
  Speaker 4: all those spaces.
• 6:16
  Speaker 1: You can catch the full episode with Karl and the
• 6:18
  Speaker 1: smea stream. Lastly, if you're after a bit of inspiration,
• 6:22
  Speaker 1: then this week's episode of Business in Between is definitely
• 6:25
  Speaker 1: a ticket.
• 6:26
  Speaker 3: I would prefer it was going really really well for
• 6:28
  Speaker 3: how Shelders and for our employees. But you know, I
• 6:31
  Speaker 3: also remember a tiny apartment in London full of wool
• 6:36
  Speaker 3: shoes that people laugh at literally, and so I've been
• 6:39
  Speaker 3: here before.
• 6:40
  Speaker 1: Tim Brown went from All Whites player to entrepreneur and
• 6:43
  Speaker 1: co founder of sustainable shoe brand Alberts. The company was
• 6:47
  Speaker 1: a fast growing success story in Silicon Valley, Darling going
• 6:51
  Speaker 1: public on the Nasdaq with evaluation close to a whopping
• 6:55
  Speaker 1: four billion US dollars, but COVID competition and a number
• 6:59
  Speaker 1: of product market factors caused a few major speed bumps
• 7:03
  Speaker 1: in its meteoric rise. Challenges and failures are, of course
• 7:07
  Speaker 1: a normal part of business, and in this really relatable chat,
• 7:10
  Speaker 1: Tim opens up with the business in between lads about
• 7:13
  Speaker 1: the peaks, the pitfalls, and why he stepped down as
• 7:16
  Speaker 1: co chief executive of All Birds. That's it for the
• 7:20
  Speaker 1: Weekly Rap. We'll be back next Friday with more of
• 7:23
  Speaker 1: the latest business news and the best bits on the
• 7:25
  Speaker 1: SMEE stream.