Tag Archives: New Zealand

China returns from New Year, CSI 300, New Zealand trade, Fed meeting

Visitors on Central Street of the Taipa Village in Macau, China, on Wednesday, Jan. 25, 2023. Tourism and spending are reviving in Macau as the Lunar New Year holiday spurred a jump in visitors after pandemic travel restrictions were eased between the territory and mainland China.

Bloomberg | Bloomberg | Getty Images

Stocks in the Asia-Pacific traded mixed on Monday as mainland Chinese markets jumped on resuming trade after a week-long New Year break.

Chinese onshore equities are headed for a bull market the CSI 300, which tracks the largest mainland-listed stocks, have gained more than 20% from its recent lows seen at the end of October last year.

The Shenzhen Component rose more than 2%, leading gains in the wider region. The Shanghai Composite rose 1.36% in its first hour of trade. Hong Kong’s Hang Seng index traded 0.6% lower.

In Japan, the Nikkei 225 rose 0.12% while the Topix also gained 0.03%. South Korea’s Kospi fell 0.24% while the Kosdaq rose 0.28%.

The S&P/ASX 200 in Australia shed 0.12%. Investors also digested trade data from New Zealand.

Stocks on Wall Street ended the week last Friday higher, fueled by gains in Tesla shares and a better-than-expected GDP report on Thursday. All major averages posted a positive week and are on pace for a month of gains.

— CNBC’s Samantha Subin, Carmen Reinicke contributed to this report

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3 dead, 1 missing as rain pounds New Zealand’s largest city

WELLINGTON, New Zealand (AP) — Authorities said Saturday that three people had died and at least one was missing after record levels of rainfall pounded New Zealand’s largest city, causing widespread disruption.

Prime Minister Chris Hipkins flew to Auckland on a military plane after a state of emergency was declared in the region.

“Our priority is to ensure that Aucklanders are safe, that they’re housed and that they have access to the essential services that they need,” Hipkins said.

He said the city was in for a big cleanup and that people should remain indoors if possible. He said a break in the weather could prove temporary, with more heavy rain forecast.

“This is an unprecedented event in recent memory,” Hipkins said.

Friday was the wettest day ever recorded in Auckland, according to weather agencies, as the amount of rain that would typically fall over the entire summer hit in a single day. On Friday evening, more than 15 centimeters (6 inches) of rain fell in just three hours in some places.

The rain closed highways and poured into homes. Hundreds of people were stranded at Auckland Airport overnight after the airport stopped all flights and parts of the terminal were flooded.

Police said they found one man’s body in a flooded culvert and another in a flooded carpark. They said fire and emergency crews found a third body after a landslide brought down a house in the suburb of Remuera. One person remained missing after being swept away by floodwaters, police said.

Hipkins said power had been restored to most places, although about 3,500 homes remained without electricity.

Video posted online showed chest-deep water in some places.

Lawmaker Ricardo Menéndez posted a video of water surging into houses. “We’ve just had to evacuate our home as the water was already rising rapidly and coming in aggressively,” he tweeted.

Fire and Emergency New Zealand said crews had responded to more than 700 incidents across the region and staff had taken more than 2,000 emergency calls.

“We had every available career and volunteer crew on the road responding to the most serious events,” said district manager Brad Mosby.

Mosby said crews had rescued 126 people who were trapped in houses or cars, or who had been involved in vehicle crashes.

Air New Zealand said it resumed domestic flights in and out of Auckland on Saturday afternoon, but wasn’t yet sure when international flights would resume.

“The flooding has had a huge impact our Auckland operations,” said David Morgan, the airline’s chief operational integrity and safety officer. “We’re working on getting customers to their final destinations and getting our crew and aircraft back in the right place. It might take a few days to get everything back on track.”

In a series of updates on Twitter, Auckland Airport said people were able to leave the airport early Saturday for their homes or accommodation after hundreds spent the night in the terminal.

“It’s been a long and challenging night at Auckland Airport, we thank everyone for ongoing patience,” the airport wrote.

“Unfortunately, due to earlier flooding in the baggage hall, we are currently unable to return checked luggage to you,” the airport wrote. “Your airline will make arrangements for its return at a later time.”

The storm also caused an Elton John concert to be canceled just before it was due to start Friday night. A second concert by John that was planned at the stadium on Saturday night was also canceled.

About 40,000 people were expected to attend each concert at Mt Smart Stadium. Thousands were already at the venue Friday night when organizers decided to cancel not long before John was due to take the stage at 7:30 p.m.

Many concertgoers who had braved the conditions were frustrated the decision hadn’t been made hours earlier.

Auckland Mayor Wayne Brown defended criticism that his office did not communicate the seriousness of the situation well and held off on declaring an emergency until about 9:30 p.m. Friday.

He said the timing of the emergency declaration was guided by experts.

“We will review everything that took place,” Brown said. “We’ve got to make sure we had the coordination, and the consultation with the public, correct.”

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2 dead, 2 missing as rain pounds New Zealand’s largest city

WELLINGTON, New Zealand (AP) — Police said Saturday that two people had died and two more were missing as record levels of rainfall pounded New Zealand’s largest city, causing widespread disruption.

Authorities declared a state of emergency for the Auckland region and the nation’s new Prime Minister, Chris Hipkins, flew to the city on a military plane to assess the damage. Hipkins was sworn in to the top job on Wednesday after Jacinda Ardern resigned.

Hipkins said the rain had hit the city fast. “Aucklanders need to brace for the fact there could be more rain,” he said.

Earlier, hundreds of people were stranded at Auckland Airport overnight after the airport stopped all flights and parts of the terminal were flooded.

Friday was the wettest day ever recorded in Auckland, according to weather agencies, as the amount of rain that would typically fall over the entire summer hit in a single day. On Friday evening, more than 15 centimeters (6 inches) of rain fell in just three hours in some places.

Police said they found one man’s body Friday evening in a flooded culvert and another man’s body early Saturday in a flooded carpark, and they were continuing to investigate both deaths.

Police said a third man had been reported missing after being swept away by floodwaters while a fourth person remained unaccounted for after a landslide brought down a house in the suburb of Remuera.

Video posted online showed chest-deep water in some places.

Lawmaker Ricardo Menéndez posted a video of water surging into houses. “We’ve just had to evacuate our home as the water was already rising rapidly and coming in aggressively,” he tweeted.

Fire and Emergency New Zealand said crews had responded to more than 700 incidents across the region and staff had taken more than 2,000 emergency calls.

“We had every available career and volunteer crew on the road responding to the most serious events,” said district manager Brad Mosby.

Mosby said crews had rescued 126 people who were trapped in houses or cars, or who had been involved in vehicle crashes.

Air New Zealand said it resumed domestic flights in and out of Auckland on Saturday afternoon, but wasn’t yet sure when international flights would resume.

“The flooding has had a huge impact our Auckland operations,” said David Morgan, the airline’s chief operational integrity and safety officer. “We’re working on getting customers to their final destinations and getting our crew and aircraft back in the right place. It might take a few days to get everything back on track.”

In a series of updates on Twitter, Auckland Airport said people were able to leave the airport early Saturday for their homes or accommodation after hundreds spent the night in the terminal.

“It’s been a long and challenging night at Auckland Airport, we thank everyone for ongoing patience,” the airport wrote.

“Unfortunately, due to earlier flooding in the baggage hall, we are currently unable to return checked luggage to you,” the airport wrote. “Your airline will make arrangements for its return at a later time.”

The airport on Friday said it was reducing its runway operations after an arriving aircraft had damaged runway lighting.

The storm also caused an Elton John concert to be canceled just before it was due to start Friday night. A second concert by John that was planned at the stadium on Saturday night was also canceled.

About 40,000 people were expected to attend each concert at Mt Smart Stadium. Thousands were already at the venue Friday night when organizers decided to cancel not long before John was due to take the stage at 7:30 p.m.

The concert was billed as a final farewell tour for John. Frontier Touring, one of the concert promoters, tweeted the concert had been canceled due to unsafe weather conditions.

Many concertgoers who had braved the conditions were frustrated the decision hadn’t been made hours earlier.

Weather agency MetService warned of flash flooding and hazardous driving conditions. On Friday night, transport authorities closed parts of State Highway 1, the main highway that bisects Auckland.

Auckland Mayor Wayne Brown told Radio New Zealand, “We need the rain to stop. That’s the main issue.”

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Australia PMI, Japan Jibun Flash PMI, Lunar New Year holidays

New Zealand’s Auckland airport passenger volumes hit 74% of pre-pandemic levels in November

New Zealand’s Auckland Airport saw its total passenger volumes for November reach 74% of levels seen in the financial year to June 2019, or the last full-year not impacted by the pandemic, according to the airport’s monthly traffic update.

International passengers were at 67% of pre-pandemic levels, the release said, adding that a majority of the recovered overseas travel was short-haul flights from Australia and the Pacific Islands.

The demand for routes between New Zealand and North American regions has recovered to 86% of pre-pandemic levels, including two added destinations in Texas (Dallas/Fort Worth) and New York.

— Jihye Lee

CNBC Pro: These 6 low-debt global stocks are set to outperform, Bernstein says

Rising interest rates have major implications for companies with large amounts of debt, as they will likely experience higher costs from increased borrowing.

As interest rates continue to rise, analysts at Bernstein think that stocks with low debt exposure and a higher quality of debt should outperform.

The investment bank named a handful of global low-debt stocks with an investment-grade credit rating there likely to outperform.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Shares of Zip reverses after initial rally

Australian “buy now, pay later” company Zip fell by more than 10% after a short-lived rally following its quarterly results.

Zip traded 15% lower, a sharp turnaround from its earlier gains of more than 10% after posting 12% revenue growth.

The company said underlying “monthly cash burn has continued to decrease and expected to further improve.” It said currently available cash and liquidity position is “sufficient to see the company through to generating positive cash flow” and expects to deliver positive cash EBITDA by the first half of fiscal 2024.

Week ahead: PMIs, Australia and Singapore inflation reports, South Korea GDP

Here are some of the major economic events in the Asia-Pacific that investors will be closely watching this week.

Stock markets in mainland China and Taiwan will remain closed until they resume trade on Jan. 30.

On Tuesday, regional purchasing managers’ index readings for Japan and Australia will be in focus while most markets remain closed to observe the Lunar New Year with the exception of Australia, Japan and Indonesia.

Inflation reports will be in focus on Wednesday as Australia and New Zealand release their consumer price index readings for the final quarter of 2022. Singapore will publish its inflation print for December.

Hong Kong’s market is scheduled to resume trade on Thursday.

Fourth-quarter gross domestic product for South Korea and Philippines will be published Thursday, while the Bank of Japan will release its summary of opinions from its latest monetary policy meeting in January. Japan also reports its services producer price index on Thursday.

Japan’s core CPI readings for capital Tokyo will be a barometer for where monetary policy is headed.

Australia’s producer price index and trade data will also be closely monitored indicators ahead of the Reserve Bank of Australia’s meeting in the first week of February.

— Jihye Lee

Australia’s business conditions worsened last month: NAB survey

National Australia Bank’s monthly business survey showed worsened business conditions for December with a reading of 12 points, a decline from November’s print of 20 points.

The survey reflects deteriorated trading conditions, profitability, and employment, NAB said.

“The main message from the December monthly survey is that the growth momentum has slowed significantly in late 2022 while price and purchase cost pressures have probably peaked,” NAB chief economist Alan Oster said.

Meanwhile, business confidence in December rose by 3 points to -1, an improved reading from -4 points seen in November.

— Jihye Lee

Japan’s headline factory data shows second month of contraction

The au Jibun Bank Flash Japan manufacturing purchasing managers’ index in January was unchanged for a second-straight month at 48.9, below the 50-mark that separates contraction and growth from the previous month.

The reading “signaled the joint-strongest deterioration in the health [of] the Japanese manufacturing sector since October 2020,” S&P Global said.

The au Jibun Bank flash composite output index rose to 50.8 in January, slightly higher than the reading of 49.7 seen in December.

Flash services business activity rose further with a print of 52.4, higher than December’s reading of 51.1.

— Jihye Lee

CNBC Pro: Wall Street is excited about Chinese tech — and loves one mega-cap stock

After more than 2 years of regulatory crackdowns and a pandemic-induced slump, Chinese tech names are back on Wall Street’s radar, with one stock in particular standing out as a top pick for many.

Pro subscribers can read more here.

— Zavier Ong

Fed likely to discuss next week when to halt hikes, Journal report says

Federal Reserve officials next week are almost certain to approve another deceleration in interest rate hikes while also discussing when to stop the increases altogether, according to a Wall Street Journal report.

The rate-setting Federal Open Market Committee is set to convene Jan. 31-Feb. 1, with markets pricing in almost a 100% chance of a quarter-point increase in the central bank’s benchmark rate. Most prominently, Fed Governor Christopher Waller said Friday he sees a 0.25 percentage point increase as the preferred move for the upcoming meeting.

However, Waller said he doesn’t think the Fed is done tightening yet, and several other central bankers in recent days have backed up that notion.

The Journal report, citing public statements from policymakers, said slowing the pace of hikes could provide the chance to assess what impact the increases so far are having on the economy. A series of rate hikes begun in March 2022 has resulted in increases of 4.25 percentage points.

Market pricing is currently indicating quarter-point hikes at the next two meetings, a period of no action, and then up to a half-point reduction by the end of 2023, according to CME Group data.

However, several officials, including Governor Lael Brainard and New York Fed President John Williams, have used the expression “stay the course” to describe the future policy path.

— Jeff Cox

Nasdaq on pace for back-to-back gains as tech shares rise

The Nasdaq Composite rallied more than 2.2% during midday trading Monday, lifted by shares of beaten-up technology stocks.

The move put the tech-heavy index on pace for a consecutive day of gains exceeding 2%. The index finished 2.66% higher on Friday.

Rising semiconductor stocks helped pushed the index higher. Tesla and Apple, meanwhile, surged 7.7% and 3.2%, respectively, as China reopening lifted hopes of a boost to their businesses. Western Digital and Advanced Micro Devices rose about 8% each, while Qualcomm and Nvidia jumped about 7%.

Information technology was the best-performing S&P 500 sector, gaining 2.7%. That was in part due to gains within chip sector. Communication services added 1.9%, boosted by the likes of Netflix, Meta Platforms, Alphabet and Match Group.

— Samantha Subin

El-Erian says Fed should hike by 50 basis points, calls smaller increase a ‘mistake’

Surging inflation may appear largely in the past, but a shift to a 25 basis point hike at the next Federal Reserve policy meeting is a “mistake,” according to Allianz Chief Economic Adviser Mohamed El-Erian.

“‘I’m in a very, very small camp who thinks that they should not downshift to 25 basis points, they should do 50,” he told CNBC’s “Squawk Box” on Monday. “They should take advantage of this growth window we’re in, they should take advantage of where the market is, and they should try to tighten financial conditions because I do think that we still have an inflation issue.”

Inflation, he said, has shifted from the goods to the services sector, but could very well resurge if energy prices rise as China reopens.

El-Erian expects inflation to plateau around 4%. This, he said, will put the Fed in a difficult position as to whether they should continue crushing the economy to reach 2%, or promise that level in the future and hope investors can tolerate a steady 3% to 4% nearer term.

“That’s probably the best outcome,” he said of the latter.

— Samantha Subin

An earnings recession is imminent, according to Morgan Stanley

An earnings recession is imminent this year, according to Morgan Stanley equity strategist Michael Wilson. 

“Our view has not changed as we expect the path of earnings in the US to disappoint both consensus expectations and current valuations,” he said in a note to clients Sunday.

Some positive developments have unfolded recent weeks — such as China’s ongoing reopening and falling natural gas prices in Europe — and contributed to some investors viewing market prospects more optimistically. 

However, Wilson advises investors to remain bearish on equities, citing price action as the main influence for this year’s rally. 

“The rally this year has been led by low-quality and heavily shorted stocks,” he said. “It’s also witnessed a strong move in cyclical stocks relative to defensives.”

Wilson has based his forecasts on margin disappointment, and he believes the case for this is growing. Many industries are already facing revenue slowdowns, as well as inventory bloating, less productive headcount. 

“It’s simply a matter of timing and magnitude,” said Wilson. “We advise investors to stay focused on fundamentals and ignore the false signals and misleading reflections in this bear market hall of mirrors.”

— Hakyung Kim

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Egg shortage sends New Zealanders rushing to buy their own hens


Hong Kong
CNN
 — 

Eggs have soared in cost around the world over the past year as avian flu decimated chicken flocks and fallout from Russia’s war with Ukraine raised the prices of energy and animal feed.

In the United States, egg prices have far surpassed the increase in other grocery items, soaring nearly 60% in the 12 months to December compared to the year before. In Japan, wholesale prices have reached a record high.

In New Zealand, which consumes more eggs per person than most countries, the squeeze has been exacerbated by a change in farming regulations. And rising costs have sparked a frenzy, with people hunting for hens online so they can secure their own supplies of the pantry staple.

On Tuesday, popular local auction site Trade Me told CNN that searches for chickens, and equipment related to caring for them, had spiked 190% so far this month, compared to the same period a month ago.

“Since the start of January, we have seen over 65,000 searches for chickens and other chicken-related items, like feeders, coops and food,” said Millie Silvester, a spokesperson for the company.

The shortage has also caused a particularly acute headache for bakers in the country.

“All the public are now trying to buy chickens for home because they can’t get eggs,” said Ron van Til, a bakery owner near the city of Christchurch, who has had to adjust how he makes his cakes and muffins.

Van Til said his sister was selling “four brand new chickens” on auction through Trade Me, fetching more than double the usual price.

The trend has prompted animal welfare advocates to warn against making impulse buys.

“Chickens live for a long time,” said Gabby Clezy, CEO of the Society for the Prevention of Cruelty to Animals (SPCA) in New Zealand. “They live from eight to 10 years, sometimes even longer depending on the breed.”

Clezy also noted that hens do not produce eggs their entire lives, and their laying habits are dependent on factors including their age and local climate.

“So if people are getting chickens solely because [they think] they’ll have a permanent supply of eggs, that just isn’t the case,” she said. “We’re asking people to consider them as companion animals, which they are.”

Trade Me has also urged customers on its marketplace to think through any purchases.

“It’s important that our members are aware of the responsibilities that come with owning chickens, and are well set up to care for them,” Silvester said in a statement.

Health experts are weighing in, too. According to the US Centers for Disease Control and Prevention (CDC), anyone signing up for a backyard coop should take special care when handling the animals and their eggs, particularly because of the risk of germs associated with salmonella.

New Zealand’s egg shortage has been linked to a long anticipated change in farming law, which took effect on January 1 this year.

The law prohibits the production of eggs from chickens kept in conventional or “battery cages” — typically cramped metal spaces that do not provide adequate welfare for hens, according to SPCA.

That’s why in 2012, the government announced a ban on such facilities.

But “a 10-year transition period away from conventional cages was introduced, to allow egg producers time to shift farming practices,” Peter Hyde, a representative for New Zealand’s Ministry for Primary Industries, told CNN in a statement when asked about the current shortage.

 “Egg producers had the option to move to colony cages, barns and free-range systems,” added Hyde, the ministry’s acting national manager of animal welfare and national animal identification and tracing compliance.

Hyde said that over the last 18 months, the ministry had “been in regular contact with operators, and visited farms needing to transition.”

Even with the long lead time, however, the ban has caused supply snags, according to some businesses.

Foodstuffs, a New Zealand supermarket chain, recently placed temporary limits on how many eggs each customer can buy.

“It’s a significant change for the egg supply industry,” Emma Wooster, the company’s head of public relations, told CNN in a statement. “We’re working with egg suppliers to increase our offer in other types of eggs.”

Countdown, another major grocery retailer, said while it did not currently have limits on egg sales, it would encourage customers to “only buy what they need” to ensure enough supply for everyone.

Other businesses have been forced to switch things up.

Van Til, the bakery owner, said his team had swapped out fresh eggs in recipes for alternative ingredients.

The longtime owner of Rangiora Bakery has seen wholesale prices for fresh eggs shoot up about 50% compared to four months ago, leading him to buy more dried eggs instead.

Van Til also pointed to changes at other local eateries, saying some cafes had started taking certain dishes off their menus so “instead of having five breakfast items [with] eggs, you might only have two.”

“And the customer hopefully will pick up pancakes or waffles,” he added. “Or whatever other offerings you come up with.”

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New Zealand’s Education Minister Chris Hipkins is set to replace Jacinda Ardern as PM



CNN
 — 

Chris Hipkins, New Zealand’s education minister, is set to replace Jacinda Ardern as prime minister, after her shock resignation announcement earlier this week.

Hipkins was the only candidate to be nominated for the leadership of the ruling Labour party, the party announced in a statement on Saturday morning.

“The Labour Party caucus will meet at 1pm on Sunday to endorse the nomination and confirm Chris Hipkins as leader,” Labour Party Whip Duncan Webb said in the statement.

New Zealand’s next general election will be held on October 14.

Ardern said Thursday that she would stand aside for a new leader, saying she doesn’t believe she has the energy to seek reelection in the October polls.

Speaking at a news conference then, Ardern said her term would end by February 7, when she expected a new Labour prime minister will be sworn in – though “depending on the process that could be earlier.”

Hipkins previously oversaw New Zealand’s pandemic management as Covid-19 response minister in Ardern’s cabinet.

According to his official profile, Hipkins first joined the government as senior advisor to two education ministers and later in the office of then-Prime Minister Helen Clark.

He entered Parliament in 2008 and became the spokesperson for education at the beginning of 2013.

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New Zealand’s Jacinda Ardern, an icon to many, to step down

WELLINGTON, New Zealand (AP) — New Zealand Prime Minister Jacinda Ardern, who became a global icon of the left and exemplified a new style of leadership, said Thursday that she would leave office.

Just 37 when she became leader, Ardern was praised around the world for her handling of the nation’s worst-ever mass shooting and the early stages of the coronavirus pandemic. But she faced mounting political pressures at home and a level of vitriol from some that hadn’t been experienced by previous New Zealand leaders.

Still, her announcement came as a shock throughout the nation of 5 million people.

Fighting back tears, Ardern told reporters in Napier that Feb. 7 would be her last day as prime minister after five and a half years in office.

“I know what this job takes, and I know that I no longer have enough in the tank to do it justice. It is that simple,” she said.

Lawmakers in her Labour Party will vote for a new leader on Sunday.

Ardern became an inspiration to women around the world after first winning the top job in 2017. She seemed to herald a new generation of leadership — she was on the verge of being a millennial, had spun some records as a part-time DJ, and wasn’t married like most politicians.

In 2018, Ardern became just the second elected world leader to give birth while holding office. Later that year, she brought her infant daughter to the floor of the U.N. General Assembly in New York.

She notched up center-left victories while right-wing populism was on the rise globally, pushing through a bill targeting net-zero carbon emissions by 2050, overseeing a ban on assault weapons, and largely keeping the coronavirus out of New Zealand for 18 months.

Her approach to the pandemic earned the ire of U.S. President Donald Trump, and she pushed back against wildly exaggerated claims from Trump about the spread of COVID-19 after he said there was a massive outbreak and “It’s over for New Zealand. Everything’s gone.”

“Was angry the word?” Ardern said about Trump’s comments in an interview with The Associated Press at the time.

In March 2019, Ardern faced one of the darkest days in New Zealand’s history when a white supremacist gunman stormed two mosques in Christchurch and slaughtered 51 worshippers during Friday prayers. Ardern was widely praised for her empathy toward survivors and New Zealand’s wider Muslim community in the aftermath.

After the mosque shootings, Ardern moved within weeks to pass new laws banning the deadliest types of semi-automatic weapons. A subsequent buyback scheme run by police saw more than 50,000 guns, including many AR-15-style rifles, destroyed.

Less than nine months after the shooting, she faced another tragedy when 22 tourists and guides were killed when the White Island volcano erupted.

Ardern was lauded globally for her country’s initial handling of the pandemic after New Zealand managed to stop the virus at its borders for months. But she was forced to abandon that zero-tolerance strategy as more contagious variants spread and vaccines became widely available.

She faced growing anger at home from those who opposed coronavirus mandates and rules. A protest against vaccine mandates that began on Parliament’s grounds last year lasted for more than three weeks and ended with protesters hurling rocks at police and setting fires to tents and mattresses as they were forced to leave. This year, Ardern canceled an annual barbecue she hosts due to security fears.

Ardern last month announced that a wide-ranging Royal Commission of Inquiry would look into whether the government made the right decisions in battling COVID-19 and how it could better prepare for future pandemics. A report is due next year.

Many observers said sexism played a role in the anger directed at Ardern.

“Her treatment, the pile on, in the last few months has been disgraceful and embarrassing,” wrote actor Sam Neill on Twitter. “All the bullies, the misogynists, the aggrieved. She deserved so much better. A great leader.”

But Ardern and her government also faced criticism that it had been big on ideas but lacking on execution. Supporters worried it hadn’t made promised gains on increasing housing supply and reducing child poverty, while opponents said it was not focusing enough on crime and the struggling economy.

Ardern described climate change as the great challenge for her generation. But her polices faced skepticism and opposition, including from farmers who protested plans to tax cow burps and other greenhouse gas emissions.

Ardern had been facing tough prospects at the ballot box. Her center-left Labour Party won reelection in 2020 with a landslide of historic proportions, but recent polls have put her party behind its conservative rivals.

She said the role required having a reserve to face the unexpected.

“But I am not leaving because it was hard. Had that been the case I probably would have departed two months into the job,” Ardern said. “I am leaving because with such a privileged role comes responsibility. The responsibility to know when you are the right person to lead, and also, when you are not.”

She said her time in office had been challenging but fulfilling.

“I am entering now my sixth year in office, and for each of those years, I have given my absolute all,” she said.

Australian Prime Minister Anthony Albanese said Ardern “has shown the world how to lead with intellect and strength.”

“She has demonstrated that empathy and insight are powerful leadership qualities,” Albanese tweeted. “Jacinda has been a fierce advocate for New Zealand, an inspiration to so many and a great friend to me.”

Canadian Prime Minister Justin Trudeau thanked Ardern on Twitter for her friendship and “empathic, compassionate, strong, and steady leadership.”

Ardern charted an independent course for New Zealand. She tried to take a more diplomatic approach to China than neighboring Australia, which had ended up feuding with Beijing. In an interview with the AP last month, she said that building relationships with small Pacific nations shouldn’t become a game of one-upmanship with China.

New Zealand Opposition Leader Christopher Luxon said Ardern had been a strong ambassador for the country on the world stage. He said that for his party “nothing changes” and it remains intent on winning this year’s general elections to “deliver a government that can get things done for the New Zealand people.”

Ardern announced that vote will be held on Oct. 14 and that she will remain a lawmaker through April. Because she will leave Parliament within six months of an election, no special election for her seat is needed.

Deputy Prime Minister Grant Robertson announced that he won’t contest the leadership of the Labour Party, throwing open for the competition for who will take over as prime minister from February until the election. Among the frontrunners is Education Minister Chris Hipkins.

If no candidate gets at least two-thirds support from the caucus when Labour lawmakers vote on Sunday, then the leadership contest will go to the wider party membership. Ardern has recommended the party chose her replacement by the time she steps down.

Ardern said she hadn’t had too much time to reflect on her tenure in the role, although she noted that it had been marked with crises.

“It’s one thing to lead your country in peace times, it’s another to lead them through crisis. There’s a greater weight of responsibility, a greater vulnerability amongst the people, and so in many ways, I think that will be what sticks with me,” she said. “I had the privilege of being alongside New Zealand during crisis, and they placed their faith in me.”

Aya Al-Umari, whose brother Hussein was killed in the Christchurch mosque attacks, tweeted her “deepest gratitude” to Ardern, saying her compassion and leadership during that grim day “shone a light in our grief journey.”

“I have a mixture of feelings, shocked, sad but really happy for her,” Al-Umari wrote.

Ardern said she didn’t have any immediate plans after leaving office, other than family commitments with her daughter, Neve, and her fiancé, Clarke Gayford, after an outbreak of the virus thwarted their earlier wedding plans.

“And so to Neve, Mum is looking forward to being there when you start school this year,” Ardern said. “And to Clarke, let’s finally get married.”

___

Associated Press reporter Rod McGuirk in Canberra, Australia, contributed to this report.

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Jacinda Ardern: New Zealand PM to resign before upcoming election



CNN
 — 

New Zealand Prime Minister Jacinda Ardern announced Thursday she will stand aside for a new leader within weeks, saying she doesn’t believe she has the energy to seek re-election in the October polls.

Speaking at a news conference, Ardern said her term would end by February 7, when she expects a new Labour prime minister will be sworn in – though “depending on the process that could be earlier.”

“The decision was my own,” Ardern said. “Leading a country is the most privileged job anyone could ever have, but also the most challenging. You cannot and should not do the job unless you have a full tank, plus a bit in reserve for those unplanned and unexpected challenges.”

“I no longer have enough in the tank to do the job justice,” she added.

When Ardern became prime minister in 2017 at the age of 37, she was New Zealand’s third female leader and one of the youngest leaders in the world. Within a year, she had given birth in office – only the second world leader ever to do so.

– Source:
CNN
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See the moment Jacinda Ardern fired back at reporter’s question about gender

She was re-elected for a second term in 2020, the victory buoyed by her government’s “go hard and go early” approach to the Covid-19 pandemic, which saw New Zealand impose some of the world’s strictest border rules, separating families and shutting out almost all foreigners for almost two years.

On Thursday, Ardern spoke candidly about the toll the job has taken and reflected on the various crises her government has faced, including both the pandemic and the 2019 Christchurch terror attack, which killed 51 people at two mosques.

The attack was a defining moment of Ardern’s leadership, and her rapid response won widespread praise. She swiftly introduced gun law reforms, wore a hijab to show her respect for the Muslim community and publicly said she would never speak the name of the alleged attacker.

“The only interesting angle that you will find is that after going on six years of some big challenges, I am human. Politicians are human,” she said. “We give all that we can for as long as we can, and then it’s time. And for me, it’s time.”

Ardern also highlighted achievements made during her tenure, including legislation on climate change and child poverty. “I wouldn’t want this last five and a half years to simply be about the challenges. For me, it’s also been about the progress,” she said.

Bryce Edwards, a political scientist at New Zealand’s Victoria University of Wellington, said Ardern’s resignation was “shocking” but not a complete surprise.

“She is celebrated throughout the world but her government has plummeted in the polls,” he said.

New Zealand’s next general election will be held on October 14.

A former DJ and lapsed Mormon, Ardern was the closest thing New Zealand had to a rockstar politician, attracting mass rallies and wall-to-wall press coverage. She enjoyed particular support among young people, in a wave dubbed “Jacindamania” during her first election.

That popularity has extended overseas, with Ardern gracing the covers of Vogue and Time magazine, and hosting American TV personality Stephen Colbert at her suburban Auckland home.

But while Ardern gained supporters globally for her fresh and empathetic approach to the role, her popularity has waned in New Zealand in recent years, with some critics arguing she has done little to deliver the transformational government she promised when first elected.

Several polls in late 2022 showed falling support for Ardern and her Labour Party, with some at the lowest level since she took office in 2017, according to CNN affiliate Radio New Zealand.

Edwards, the political analyst, said Ardern’s decision to stand down perhaps spares her a disappointing election result.

“Leaving now is the best thing for her reputation … she will go out on good terms rather than lose the election,” he said.

Edwards said there isn’t “anyone obvious” to replace her, though potential candidates include Police and Education Minister Chris Hipkins, who has a strong relationship with Ardern, and Justice Minister Kiri Allan.

Ardern said she has no firm plans about what she’ll do next – but she is looking forward to spending more time with her family again. “Arguably, they’re the ones that have sacrificed the most out of all of us,” said Ardern.

Addressing her child and fiance, she said: “For Neve, Mom is looking forward to being there when you start school this year, and to Clarke, let’s finally get married.”

Ardern has been engaged to television host Clarke Gayford since 2019.

– Source:
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A look at Prime Minister Jacinda Ardern’s profile

Ardern gained a reputation as a trailblazer while in office, speaking frequently about gender equality and women’s rights.

For instance, when announcing her pregnancy in 2018, she underlined women’s ability to balance work with motherhood.

“I am not the first woman to multi-task, I’m not the first woman to work and have a baby, I know these are special circumstances but there will be many women who will have done this well before I have,” she said at the time, with Gayford taking on the role of a stay-at-home dad.

After giving birth, she and Gayford brought their 3-month-old baby to the United Nations General Assembly, with Ardern telling CNN she wanted to “create a path for other women” and help make workplaces more open.

In a 2021 interview with CNN, she reflected on her rise to power, saying: “It was not so long ago that being a woman in politics was a very isolating experience.”

The announcement of her impending resignation on Thursday spurred a wave of support on social media, including from other political leaders, with many pointing out the legacy she is leaving for women in politics.

Australian Prime Minister Anthony Albanese tweeted praise for Ardern, saying she “has shown the world how to lead with intellect and strength” and has been “a great friend to me.”

Australian Foreign Minister Penny Wong also tweeted her best wishes for Ardern, saying she was “a source of inspiration to me and many others.”

Canadian Prime Minister Justin Trudeau shared a photo on Twitter of him and Ardern walking together, thanking her for her friendship and “empathic, compassionate, strong, and steady leadership over these past several years.”

“The difference you have made is immeasurable,” he added.

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Asia-Pacific markets trade mixed as region kicks off 2023

India’s cement stocks to perform well on government infrastructure spending, says IIFL Securities

India’s domestic cement stocks are set to rise on increased government spending on infrastructure, said Sanjiv Bhasin, director at investment management firm IIFL Securities.

“The government spending on both commercial and real estate, and [developments on] the infrastructure, is going to see cement companies do well,” Bhasin said on CNBC’s “Street Signs Asia” on Tuesday.

He said his firm is positive on companies such as Larsen & Toubro, Ultratech India, and Kotak Mahindra Bank, adding that cement prices in India is expected to rise as the country enters a period of high levels in construction activity.

Australian miners, metal prices fall as China Covid cases rise

Shares of mining companies listed in Australia fell in Tuesday’s afternoon trade as prices of metals fell in Shanghai as Covid infections soared in mainland China.

The February copper contract trading on the Shanghai Futures Exchange fell 0.7% to 65,670 yuan per ton while aluminum fell 2.7% to 18,175 yuan per ton.

Sandfire Resources inched 0.18% lower while Oz Minerals traded 0.25% higher – Rio Tinto fell more than 1% while Yancoal Australia shed more than 4.6% and Whitehaven fell 5.89%. Fortescue Metals lost 0.73% and South32 traded 0.5% lower.

— Jihye Lee

Consumer growth in Asia remains a ‘massive challenge’ for region, says Singapore Exchange

Consumer growth in Asia remains a “massive challenge” for the region, as its economic growth is significantly dependent on trade, Geoff Howie, markets strategist at the Singapore Exchange said.

Howie pointed to South Korea and Taiwan’s declines in exports since May 2021 as well as Singapore’s non-oil exports contracting by 14.6% in November.

There have been “much hinges on trade and tech, and we are expecting moderation in global trade,” he said on CNBC’s “Street Signs Asia” on Tuesday. “Consumer growth is an area that we have to really watch,” Howie said.

– Charmaine Jacob

‘Rough front half, better second half for tech stocks’: Jefferies shares 2023 outlook

The first half of 2023 is going to be a “tough setup” for tech stocks, Brent Thill, managing director and senior analyst of investment firm Jefferies, told CNBC’s “Street Signs Asia” Tuesday.

“You still have the economic overhang that is going to be impacting earnings as we go into the beginning of this year. Companies have to lower numbers and expectations are still coming down,” said Thill.

He projected things to turn around in the second half of 2023, as it “takes time” for effects from macro economic conditions such as rising interest rates to unravel and “investors start to look at 2024 numbers being reset.”

“I think the worst-case scenario is that 2023 could be a total wash,” said Thill, adding that Jefferies is expecting a recession to hit the third quarter, which is later than most expect.

– Sheila Chiang

Oil prices to fall to $70-levels by end of 2023, says analyst

The price of Brent oil will fall to the lower end of $70 a barrel by year’s end, according to Citi’s global head of commodities research, Ed Morse, adding volatility surrounding the oil markets will remain.

“We’re expecting volatility to be about what it was last year,” said Morse. “We’re looking at Brent prices going down by the end of the year to the low 70s,” he estimated.

A number of oil producing countries are facing extreme difficulties, Morse said. He also expects demand for oil to be kept low due to a prolonged recession in China.

Developments on Russia’s war on Ukraine will also add onto volatility in prices, Morse added.

Brent crude dipped 0.43% to $85.57 a barrel. The U.S. West Texas Intermediate crude traded down 0.39% to $79.95. 

—Lee Ying Shan

Japanese yen at strongest levels in seven months

The Japanese yen hovered around its strongest levels since early June, Refinitiv data showed.

The currency last traded at 129.7 against the U.S. dollar after strengthening past the key technical level of 130.4 that it last saw in August. Late last year, the yen depreciated significantly and hit its weakest levels in 32 years.

The currency weakened past 151 against the greenback in mid-October as the Bank of Japan maintained its ultra-dovish monetary policy and yield curve control strategy. But the yen has since strengthened after the central bank widened its YCC band last month.

– Jihye Lee

China’s Caixin PMI shows further factory activity decline

China’s factory activity slid further into contraction territory in December, a private sector survey showed.

The Caixin/Markit manufacturing purchasing managers’ index fell further to 49 in December after recording 49.4 in November – remaining below the 50-point mark that separates growth and contraction.

The survey saw improved optimism among businesses, the release said, adding that firms expressed confidence in China’s economic recovery following the relaxation of most of its stringent Covid measures.

Separately, China’s National Bureau of Statistics said the official manufacturing PMI fell to 47 for the month, marking the biggest drop since the start of the Covid outbreak in January 2020.

– Jihye Lee

Singapore economy grew 3.8% in 2022

Singapore’s economy saw full-year growth of 3.8% for 2022, according to data released by the Ministry of Trade and Industry on Tuesday.

The economy grew 2.2% in the fourth quarter compared with a year ago, the slowest pace since mid-2021 but beating expectations of 2.1% from a Reuters poll.

The latest figures reflected continued recovery in the service sector that followed lifting of domestic and border restrictions since April, the ministry said in a statement, adding that the accommodation sector expanded for the first time since mid-2021.

— Jihye Lee

Bank of Japan is reportedly considering hiking its inflation forecasts in January, according to Nikkei

Japan’s central bank is reportedly considering boosting its inflation forecasts in January to reflect price growth that’s closer to its 2% target in the 2024 fiscal year, according to a Dec. 30 report from Nikkei, citing sources familiar.

The move could be laying the groundwork for a shift toward tighter fiscal policy, according to the report.

The report arrives more than a week after the Bank of Japan changed its bond yield controls, allowing long-term interest rates to rise more. The rate on the 10-year bond will be allowed to fluctuate by half a percentage point above and below the nation’s target of 0% – up from a quarter-percentage point range.

Retail sales have also ticked higher in Japan, rising for a ninth consecutive month in November.

Darla Mercado

Week ahead: PMIs in Asia-Pacific, trade data, inflation readings

Key economic events in the Asia-Pacific next week will be dominated by Purchasing Managers’ Index readings in the region.

China’s National Bureau of Statistics is scheduled to release the official manufacturing and non-manufacturing PMI prints on Saturday. Reuters expects China’s factory activity to show a contraction with a reading of 48.

South Korea is also slated to report its December trade data over the weekend, in which economists polled by Reuters predict will show a drop of 10.1% compared with a year ago.

Singapore is scheduled to release manufacturing PMI readings next week, while S&P Global is scheduled to release its PMI readings for South Korea, Indonesia and India on Monday.

Inflation prints for the Philippines and Indonesia will also be closely watched, with the releases scheduled for Tuesday and Monday, respectively.

Japan’s PMI reading and China’s private survey for services PMI will be released on Wednesday. Singapore will release November’s retail sales on Thursday as well as South Korea’s unemployment rate for December.

– Jihye Lee

CNBC Pro: Wall Street veteran names the stocks that could go to $0 — and his favorites in tech

2022 has marked the end of an era of cheap money, and that’s bad news for companies with a “growth at all costs” approach, said David Trainer, CEO of investment research firm New Constructs.

In the year ahead, investors will need to exercise due diligence in distinguishing between good and bad firms, he told CNBC Pro.

That’s because the U.S. Federal Reserve’s interest rate hikes in 2022 have “ended the era of super easy money,” and exposed many companies with bad business models. He calls those companies “zombie stocks” with heavy cash burn.

He highlights a list of such names to avoid and what to buy instead.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Final market stats for 2022

Friday was the final trading day of the 2022, but also for the quarter, month and year. Here’s how the major market averages fared over those time frames.

The Dow finished:

  • down 8.78% for the year
  • up 15.39% for the quarter
  • down 4.17% for the month
  • down 0.17% for the week

The S&P 500 finished:

  • down 19.44% for the year
  • up 7.08% for the quarter
  • down 5.90% for the month
  • down 0.14% for the week

The Nasdaq Composite finished:

  • down 33.10% for the year
  • down 1.03% for the quarter
  • down 8.73% for the month
  • down 0.30% for the week

The Russell 2000 small caps finished:

  • down 21.56% for the year
  • up 5.8% for the quarter
  • down 6.64% for the month
  • up 0.02% for the week

— Jesse Pound, Christopher Hayes

CNBC Pro: 2023 looks good for the market — especially for one ‘extremely attractive’ asset class: Fund manager

Markets have bottomed and things are looking up for stocks and bonds, which could rally more than 10% in 2023, according to one portfolio manager.

Jay Hatfield, CEO and portfolio manager at Infrastructure Capital Advisors, also highlighted the “conviction investment themes” he expects will be very attractive in 2023.

That includes one asset he said could beat its peers.

CNBC Pro subscribers can read more here.

— Weizhen Tan

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European markets open to close; data, news and earnings

LONDON — European stocks moved higher on Tuesday as positive sentiment continues in the final trading days of 2022.

Germany’s DAX climbed by around 0.8% in early trade, while France’s CAC 40 was up around 0.9% and Italy’s FTSE MIB around 0.7%. The U.K.’s FTSE index is closed Tuesday for a public holiday.

Sector-wise, autos and chemicals both added 1.6% to lead gains as most sectors traded in positive territory.

Stocks in Europe received a boost from their counterparts in Asia-Pacific after China officially announced overnight that it will end quarantine for inbound travelers on Jan. 8 — symbolizing an end to the zero-Covid policy that it has held for nearly three years. Health officials are slated to hold a press briefing on Covid at 3 p.m. Beijing time.

The Shanghai Composite rose 1% and the Shenzhen Component gained 0.9% on the news while markets in Hong Kong, Australia and New Zealand were closed for the Christmas holiday.

Stateside, U.S. stock futures rose on Tuesday morning as investors looked to see whether a Santa Claus rally will appear before year-end.

Friday marked the start of the time period for a Santa Claus rally, which is typically considered the final five-day trading stretch in the current year, as well as the first two trading days in the new year. Markets were closed Monday for the Christmas holiday.

There are no major earnings or data releases in Europe on Tuesday.

— CNBC’s Sarah Min and Jihye Lee contributed to this market report.

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