News in the political economy since Friday included:
New Zealand business confidence got even gloomier in May as firms, especially retailers, expect slower activity and more are now anticipating earnings to shrink in the coming year.
Business confidence dipped in May according to ANZ’s monthly business confidence survey.
Regulators launch urgent inquisition into big four Australian-owned banks, demanding results of internal inquiries into problems seen in Australia. Bernard Hickey introduces the full letter demanding results within 2 weeks.
The news that matters this morning
Newsroom Business Editor Nikki Mandow has taken a detailed look at the Overseas Investment Office's decision to block the takeover of ANZ's UDC by China's HNA. She found ANZ and UDC customers and funders dodged a huge bullet, thanks to the OIO's due diligence. One question stands out: why went wrong with ANZ's own due diligence?
Former Finance Minister Bill English has described the influence of Australia's big four banks as more pervasive in New Zealand than that of China.
In today's email we check out ANZ's monthly business confidence survey, Labour's plan for labour, the revelations about instant kiwi Peter Thiel - and more.
Kerry McDonald, a former chair of the BNZ and former National Australia Bank director, argues the current system designed to protect depositors in New Zealand’s big four banks is fundamentally flawed. He cites weak local governance by both the banks' boards and the Reserve Bank, and an unfair system that penalises local savers in any crisis. Like the IMF, McDonald is calling for tougher Reserve Bank regulation and reform of protections for savers.
In today's email, we detail the statistics out showing the increasing divide in wealth and the opportunity for financial mobility dictated by home ownership. And, speaking of statistics, we also look at the failure of Statistics House in the Kaikoura earthquake.