Business
Midday Business News for 7 October 2025
In today's Midday Business News, ASB agrees to a $135.6 million settlement over credit disclosure breaches, while the ongoing case against ANZ is set for court next March. Business confidence is ...
Midday Business News for 7 October 2025
Business •
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Interactive Transcript
Speaker A
Jeffrey Halley is here now for some business news. Hi, Geoff. ASB is paying to settle a massive lawsuit.
Speaker B
Yes, as you've just noted there, ASB has agreed to settle a long running class action bought by customers over claimed historic breaches of credit disclosure laws. It will pay $135.6 million to settle the lawsuit after it rejected a $300 million initial demand in July. The bank is not admitting liability and the settlement needs high court approval, which may of course take time. Scott Russell, a lawyer representing the ASB plaintiffs, says it's a good outcome.
Speaker C
ASB haven't admitted any liability here, but that's very standard in this sort of settlement. But it's great that ASB have stepped up to the plate and they're going to give customers a significant amount of money. This is 135 and a large percentage of that is going straight into Kiwi's back pocket.
Speaker B
And in a statement, ASB Chief Executive Vitoria Short called it a pragmatic way to settle the matter. Meanwhile, the case against Anz continues and Scott Russell says its customers also deserve a positive outcome.
Speaker C
Yeah, Anz case is ongoing. As you know, we made that open offer of approximately 300 million in July, which they rejected. And in fact, it's set down for two weeks in court in March next year. So if it's not able to be settled, the court will determine it early next year.
Speaker B
Now, a proposed law change is currently before select committee which would retrospectively rule out a blanket penalty applying for disclosure breaches between 2015 and 2019, leaving the courts to decide the matter. Scott Russell says the ASB settlement won't be affected by that law change. And as you may have heard elsewhere in the news, business confidence is fading in the face of weak demand and quickening inflation. The Institute of Economic Research's survey for the last three months ended September shows a net 15% of firms expecting economic improvement. And that's nearly half of the level in June. Sales are still weak and fewer businesses expect any improvement. But they're sacking staff, cutting investment and face weaker profits and higher costs. Nzier principal economist Christina Leung says the Reserve Bank's job is getting tougher.
Speaker D
Firms face continued intense cost pressures, but they are finding it a bit easier to pass these on to customers by raising prices. So overall, this pickup in costs and pricing indicators do suggest that a lift in inflation pressures in the news and economy, given how weak demand is, it does point to a very tough balancing act for the Reserve Bank.
Speaker B
Christina Leong says the survey suggests the economy posted Flat growth or even contracted in the September quarter. A national housing survey report reveals a big gap between what people really want versus the available housing stock. The Urban Advisory report indicates community style co housing is the top choice amongst a broad cross section of nearly 2,600 survey respondents over the age of 60. Urban Advisory managing director Dr. Natalie Allen says the housing needs a refresh with more options between public housing and rental.
Speaker E
Markets and ownership models housing systems that are more fulsome. Overseas we see assisted options and they suit people at different life stages and they're able to cater to different price points. And we saw in the survey that people are starting to be curious and have an appetite about some of these options whether they're community land trusts. I think there's a huge potential for cooperative. I also think that there's some really interesting work happening in the IWI or MORI housing space at the moment.
Speaker B
Natidi Allen says there are too few options for older adults who want to downsize but remain in their communities. More overseas investors are now showing interest in the country's commercial property market. JLL New Zealand Managing director Todd Laughlin says there has been a significant increase in the number of enquiries and transactions overseas buyers. He says the market is in recovery mode and will be for the next 12 to 18 months thanks to interest rates dropping from their peaks. Todd Laughlin says the Internet. Sorry, I'll read that again. Todd Laughlin says the Intercontinental Hotel was sold to a Singaporean billionaire earlier this year who was a first time investor.
Speaker F
He paid, you know, paid a really good price for that above, above book value to come into a market that he I think saw as a great future growth opportunities. So I would say that would be typical. We're starting to see private equity, large ultra high net worth investors really starting to look at New Zealand again and I think the golden visa immigration policy that's been put in place by the government has been quite a positive catalyst for that.
Speaker B
And Todd Lockholid says Christchurch is currently dominating the commercial property market with some of the lowest vacancy rates in the country. And now for the latest from markets we're joined by Malika King of Craig's Investment Partners. Good afternoon.
Speaker G
Kia Ora.
Speaker B
Let's get straight to it. What's been happening on the New Zealand stock exchange today?
Speaker G
We're very flat in this morning's trading. We're up just 1 point at 13,490 points. Looking at the NZX 10. Auckland Airport's up 3 cents at $7.92. Contact Energy's at 1 cent at 9.13. EBOSS is down 13 cents at 2938 Fletcher Building down 1 cent at 3.40. Fish & Paykel Healthcare up 21 cents at 37.86 Infratool down 6 cents at 12.53. Main Freights up 18 cents at 61.98 Meridians down 8 cents at $5.74. Ryman's up 7 cents at $2.77 and Sparks up 1 cent at $2.36.
Speaker B
And across the Tasman in early trading on the ASX 200.
Speaker G
Yep, same story there. They've flattened this morning. Trading up just 3 points at 8 points on the ASX 200.
Speaker B
And across to currency markets, what's been happening with the New Zealand dollar today?
Speaker G
We're a bit weaker in this morning's trading. We're buying 0.5837 US cents, 88.2 Australian cents, 43.3 pence, 49.85 Euro cents, 87.8 yen and 4.168 yuan.
Speaker B
And finally interest rates, oil and gold please.
Speaker G
Nine today bills are at 2.715%, the five year swap is at 3.14% and the 10 years at 3.74%. Spot gold is 3,968 US dollars an ounce and Brent crude is 65 US a barrel.
Speaker B
Thank you so much Malika. That was Malika, King of Craig's Investment Partners. We we'll bring you a wrap of the day's news and numbers at around half past five in checkpoint this afternoon. But for now Charlotte, that is business.
Speaker A
Kia ora. Thanks Jeffrey.
Topics Covered
ASB lawsuit settlement
credit disclosure laws
class action lawsuit
economic improvement survey
business confidence
inflation pressures
housing options for seniors
commercial property market
overseas investors
Christchurch vacancy rates
golden visa immigration policy
New Zealand stock exchange
currency markets
interest rates
Brent crude prices