NZ dollar, share market caught in fallout from UK ‘mini-budget’

NZ dollar, share market caught in fallout from UK ‘mini-budget’
Financial markets were spooked, and the British pound dropped below 1.04 pounds against the US dollar – an all-time low – before recovering to 1.07 this morning. (Image: Depositphotos)
Dan Brunskill
New Zealand shares fell 0.3% at market open as traders returned from the Queen Elizabeth Memorial Day holiday to incredible volatility across global markets. Financial markets worldwide dropped during the long weekend after the British government announced an economic plan that traders think will worsen inflation.The ‘mini-budget’ included significant tax cuts and energy subsidies, funded by massive increases in government borrowing.Financial markets were spooked, and the British pound dropped against the US dollar – to a...

More Economy

Manufacturing activity has contracted for 22 consecutive months
Economy

Manufacturing activity has contracted for 22 consecutive months

New Zealand’s manufacturing sector contracted in December, marking the first time in the survey’s history that all 12 months were in contraction. The seasonally adjusted Performance of Manufacturing Index (PMI) for December was 45.9, up from 45.2 in November but still well below...

Bank economists expect OCR rises in 2026
Economy

Bank economists expect OCR rises in 2026

‘A number closer to four takes the cash rate to neutral,’ says BNZ's Stephen Toplis. 

Westpac records soft December retail spending
Economy

Westpac records soft December retail spending

Despite a slight lift, Westpac data points to a soft end of year for household spending.Westpac’s retail tracker, released on Thursday, showed spending on Westpac-issued credit and debit cards was up 2% in December compared to last year.  Westpac senior economist Satish Ranchhod...

Staff reporters 16 Jan 2025
Price shakeup for cigarette brand
Retail

Price shakeup for cigarette brand

Cigarette prices typically go up each year. Not in this case.

Oliver Lewis 16 Jan 2025