Dene Mackenzie

Air New Zealand is still regarded as having good earnings potential despite rising fuel prices, Forsyth Barr broker Suzanne Kinnaird said yesterday.

Gross margins were maintained but lower sales in the six months ended January 31 meant lower profits for The Warehouse Group.

Households remained cautious and continued to restrain their spending on items such as furniture and c

Retail banks rushed to cut their floating home loan rates yesterday after the Reserve Bank matched expectations and cut the official cash rate by 0.5% to 2.5%.

Listed retail Briscoe Group reported an improved operating profit for the year ended January 30 and announced an improved final dividend of 6c per share. Earnings before interest and tax (ebit) were up 8.8% to $32.76 million and profit after tax was up 14.6% to $24.1 million.

The Government accounts are forecast to become significantly worse in coming months as the impact of the Christchurch quake becomes clear, but the ones released yesterday provide some encouraging signs.

Consumers are facing record fuel prices and rising food costs as the weakened New Zealand dollar is unable to cushion further oil-price hikes.

Otago and Southland suppliers are concerned about their ability to retain access to their Canterbury-based retail and wholesale clients in the wake of the February 22 earthquake.

The Reserve Bank is expected to cut its official cash rate by up to 0.5% on Thursday in an effort to help the economy recover from the earthquake in Christchurch.