Category: Business

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ANZ completes acquisition of Suncorp Bank

Source: ANZ statements

ANZ Chief Executive Officer Shayne Elliott said: “Today is an exciting day for the ANZ Group, as we complete our acquisition of Suncorp Bank.

“This strategically important acquisition boosts our presence in Queensland, adds scale to our Retail and Commercial businesses, and means we can compete more effectively across the Australian market.

“Tomorrow we will welcome the roughly 3,000 strong Suncorp Bank team and their 1.2 million customers into the ANZ Group.

“Suncorp Bank customers will continue to receive the same great service, from the same exceptional Suncorp Bank staff. Over time, we will make available to them ANZ’s newest technology, giving them access to the very latest in banking services.

“Our acquisition demonstrates our commitment to Queensland and Queenslanders. We look forward to playing our part to help Queensland to continue to grow and prosper,” Mr Elliott said.

Completion of the acquisition follows the commencement of Queensland legislation amending the Metway Merger Act today, approval of the acquisition by the Federal Treasurer on 28 June 2024 and authorisation under Australia’s competition laws by the Australian Competition Tribunal on 20 February 2024.

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Consumer confidence: up 4.6pts over past fortnight

Source: ANZ statements

• Consumer confidence eased 1.3pts last week to 83.1pts but is still 4.6pts higher than a fortnight ago. The four-week moving average rose 0.4pts to 81.3pts.

• ‘Weekly inflation expectations’ was unchanged at 5.0%, while the four-week moving average fell 0.1ppt to 5.0%.

• ‘Current financial conditions’ (over last year) decreased 0.6pts, while ‘future financial conditions’ (next 12 months) rose 0.5pts.

• ‘Short-term economic confidence’ (next 12 months) fell 4.4pts and ‘medium-term economic confidence’ (next five years) fell 0.9pts.

• The ‘time to buy a major household item’ subindex declined 1.1pts.

ANZ Economist, Madeline Dunk said: “Despite a small drop last week, ANZ-Roy Morgan Australian Consumer Confidence is up 4.6pts over the past fortnight. The fact that consumer confidence held onto most of last week’s sizeable 5.9pt gain suggests households may be seeing the benefits of the Stage 3 tax cuts. Particularly as the biggest improvement has been in households’ confidence in their own financial situation.

Relative to two weeks ago, households’ confidence in their current financial position has risen 5.1pts, while confidence in their financial position in a year’s time is up 5.8pts. Over this period, confidence has increased most for those who own their homes outright (+6.8pts), followed by renters (+3.1pts) and those paying off a mortgage (+1.6pts).”

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Loss of Takutai Chief undermines New Zealand shipping and supply chain

Source: Maritime Union of New Zealand

 
 The loss of a New Zealand operated coastal freighter and 12 jobs due to the economic downturn threatens the viability and resilience of our supply chain.
  
Swire Shipping, the owners of Pacifica Shipping, have advised its second New Zealand coastal freighter Takutai Chief will be removed from service soon after a downturn in trade.
 
Mr Findlay says the Union accepts the reasons given for the decision, including current poor economic conditions and service changes by international lines reducing feeder volumes.
 
“Nonetheless, this is a major blow to New Zealand shipping and our maritime workforce, and reduces the resilience and future security of our supply chain.”
 
Mr Findlay says Pacifica has shown an ongoing commitment to New Zealand coastal shipping.
 
He says coastal shipping offers a low emission transport mode, and reduces congestion and wear on roads.
 
The situation reflect a larger crisis within the New Zealand maritime industry where there is a lack of stability due to failure in strategic policy, he says.
 
Mr Findlay says the dependence of New Zealand on overseas shipping was a major problem during COVID with serious disruptions when overseas shipping calls were delayed or dropped.
 
He says skilled New Zealand seafarers will leave the industry for opportunities in Australia, with an ageing workforce seeing a large number of seafarers retiring in the near future.
 
Mr Findlay says the uncertainty around the future of Interislander ferries is another aspect of the ongoing crisis in New Zealand shipping.
 
“Despite being a maritime trading nation, New Zealand has no clear strategy for a sustainable shipping industry, which leaves us exposed and vulnerable in a volatile global market.”
 
“New Zealand needs to build its coastal shipping capacity, with New Zealand owned, operated and crewed ships.”
 
Pacifica Shipping is an operating division of Swire Shipping (N.Z) Limited.
 

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Update on investigations into Australian Markets business

Source: ANZ statements

The update concerns three separate but related matters: data reporting processes; allegations around a 2023 bond transaction; and conduct and behavioural matters primarily within its Sydney dealing room.

ANZ Chief Executive Shayne Elliott said: “With the assistance of external counsel, we are investigating these issues with the urgency expected and the Group Board continues to supervise this work closely.

“We have been very clear with our people. Where we find any evidence of wrongdoing, those involved will be held accountable and action will be taken. The Board will also lead a process to ensure consequences will be applied to senior executives, both past and present, including myself, where appropriate” Mr Elliott said.

Data reporting

ANZ advised the Australian Office of Financial Management (AOFM) in August 2023 it had submitted incorrect monthly secondary bond turnover data for the FY22-23 year. This error came to light before the required year-end sign-off on the accuracy of the data supplied. 

Data errors were caused by a range of issues including process and data extraction errors on ANZ’s part. This resulted in the incorrect inclusion of transactions that should have been omitted as well as double counting of some transactions. 

ANZ acknowledges this is an unacceptable failure. It is also investigating whether it should have reported this issue to the Australian Securities and Investments Commission (ASIC) earlier than it did and will engage with ASIC further on this matter.

Mr Elliott said: “We have also reviewed recent data submissions provided to relevant customers and although there will be ongoing work, we don’t believe we have material issues with the data we have submitted.

“However, as an additional precaution, I have asked our internal audit team to review the governance and control frameworks supporting the production of similar submissions to customers and report its findings to the Board.

“I have personally apologised to the Chief Executive at AOFM for ANZ’s failures. We are significantly enhancing our governance process around this data, including building a separate validation tool and increasing training for relevant staff. We had already strengthened our breach reporting process through system improvements,” Mr Elliott said.

 

ASIC investigation into AOFM transaction

 

As previously advised, ASIC is investigating ANZ’s execution of a 2023 issuance of 10-year Treasury Bonds by AOFM. ANZ is cooperating fully with ASIC’s investigation which is expected to take some months.

ANZ’s external counsel has engaged independent experts to analyse trading data in relation to this issue. This independent experts’ work remains ongoing.

ANZ’s own preliminary analysis has not identified any evidence of market manipulation. ANZ, however, does not have all the information that ASIC has, and this position will be reviewed in coming months.

Conduct and behaviour issues

In addition to our own internal investigation, ANZ has engaged specialist external counsel to investigate allegations of inappropriate conduct and behaviour primarily within the Sydney dealing room.

While the external investigation remains ongoing, there have been employment outcomes for several employees including suspension, termination and a formal warning. Management changes in the Sydney dealing room have also been made.

Mr Elliott added: “My immediate priority is to ensure the investigations are completed in a timely manner, that action is taken against any individuals who have not met the required standards and that the necessary steps are taken to ensure these conduct failures do not re-occur. Importantly, we are not limiting our reviews and will address any conduct that is not in line with our expectations,” Mr Elliott said.

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ERA determination on public service job cuts a win for working people

Source: Council of Trade Unions – CTU

The Employment Relations Authority’s determination that the Ministry of Education failed to comply with their workers’ collective agreement when cutting jobs sends a strong message that workers’ rights must be upheld, said NZCTU Te Kauae Kaimahi President Richard Wagstaff.

“The Government’s reckless attack on public services and workers has been brutal, and aspects of it have now been deemed unlawful,” said Wagstaff.

“We welcome this decision from the Employment Relations Authority, as it shows that government departments can’t just get away with ignoring their obligations to their workers.

“The directive from cabinet ministers to public service departments to make sweeping cuts to workforces has directly led to this disregard for worker’s rights and conditions.

“The Government’s rush to axe jobs has been indiscriminate – workers should be retained when public services are already struggling to keep up with demand.

“Working people deserve respect and dignity, and for their rights to be upheld. Collective agreements must not be ignored in pursuit of the Government’s ideological agenda.

“We congratulate the PSA for taking this case and fighting to uphold the rights and dignity of their members in the public service.

“This decision sends a strong message that employers must uphold their agreements with workers and not rush ahead with indiscriminate job cuts,” said Wagstaff.

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Inflation data shows cost-of-living challenges continue

Source: Council of Trade Unions – CTU

Data released by Statistics New Zealand today shows that annual inflation was 3.3%, falling from by nearly half from a year ago (6% – June 2023).

 “This fall in inflation is welcome, but it is being driven by international factors rather than domestic actions. There are also costs for working people that continue to increase rapidly,” said NZCTU Economist Craig Renney.

“This data is also weaker than expected – suggesting problems within the wider economy. It supports other data which implies that we might be heading back into falls in economic output.

 “The falls in inflation were driven by reductions in the price of food, particularly fruit and vegetables. There are also falls in the price of furniture, household appliances, and the cost of second-hand vehicles. This data suggests a lack of demand in the economy and a lack of consumer confidence. There were also falls in IT equipment and international airfares – again suggesting that demand for these discretionary goods may be falling.

“Meanwhile, pricing for rents continues to increase rapidly – rising 4.8% annually. This is the fastest rate of growth for 17 years, which is as far back as the data goes. Local Authority Rates increased 9.8%. Insurance prices increased 14% annually, led by growth in property insurance (24%) and car insurance (24%). Petrol prices rose 14.7%. These are costs that are very difficult to avoid, and so will be hitting working people in their pocket.

 “This data will be welcomed by those looking for interest rates to fall. But they also suggest that economic growth is stalling, and that action is needed now to support employment and household incomes. The cuts in investment set out by the Government at the recent Budget are likely to exacerbate this problem even further,” said Renney.

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150 people picket against cuts to care at Ardiva’s Village at the Park – E tū

Source: Etu Union

This afternoon about 150 people joined a picket line outside Ardiva’s Village at the Park, a residential aged care facility in Newtown, Wellington.

The lively crowd included residents from Village at the Park, their families, workers, and neighbours from the wider Newtown community. The event was hosted by E tū and NZNO.

With Arvida proposing to cut over 400 hours a week from care workers, nurses, and activity coordinators, the picketers had deep concerns about the impact on affected workers and the care they can provide.

E tū delegate and care worker Rita Narendra, who spoke at the rally, worries about the impact of the proposed cuts on residents.

“With fewer staff, we won’t be able to care for all of them because there won’t be enough time,” Rita says.

“I don’t want any resident to stay in bed until the end of the shift. I don’t want to see residents not getting up to enjoy their life as they always do. I don’t want to see any resident ringing the bell with no one attending to them. It’s very sad.

“Cutting staff means we won’t be able to spend time with them, to listen and ask questions. It’s not just about care, it’s about listening to them and spending time with them, so they feel like this is still home. We don’t want to take anything away from them.

“I want Arvida to know they’ve been providing a beautiful service for years. Why change now? Their name is held in high regard. People talk positively about this place, so why go back? Why not continue providing quality life for these residents who appreciate it so much? That’s my biggest question.”

NZNO care workers Charith Weerasuriya Arachchige and Nama Wiejesinghe share the sentiment.

“We feel huge frustration. How am I to give my all? We are not working with machines, they are humans,” Charith says.

“It’s hard because we are dealing with emotional stress, not just physical, and we need to have good mental health,” Nama says.

Village at the Park resident Lew Skinner spoke on behalf of independent living residents at the facility. He knows that the proposed cuts don’t make sense.

“No one sees staff sitting around doing nothing – we see no fat in the system,” Lew says.

“These proposals affect all of us. Independent residents are part of the Village at the Park ‘Living Well’ community, many are one short step away from moving into the care units.

“Residents and their relatives are dismayed they had not been clearly told by Arvida what is happening – the two letters they’ve received had given no real information and had just confused people.

“We recognise there are financial challenges. We do not believe the solution to this problem lies in cutting the numbers of staff, who are the lowest paid and most vital to resident well-being.”

ENDS

If you are a worker or resident at Village at the Park, or would just like to help us stop the cuts, email joanna.wallace@etu.nz to get involved!

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Consumer confidence: six-month high

Source: ANZ statements

• Consumer confidence rose 5.9pts last week to 84.4pts. The four-week moving average rose 1.0pts to 80.8pts.

• ‘Weekly inflation expectations’ fell 0.1ppt to 5.0%, while the four-week moving average rose 0.1ppt to 5.1%.

• ‘Current financial conditions’ (over last year) increased 5.7pts, while ‘future financial conditions’ (next 12 months) rose 5.3pts.

• ‘Short-term economic confidence’ (next 12 months) lifted 7.6pts and ‘medium-term economic confidence’ (next five years) increased 5.3pts.

• The ‘time to buy a major household item’ subindex rose 5.2pts.

ANZ Economist, Madeline Dunk said: “ANZ-Roy Morgan Australian Consumer Confidence recorded its largest weekly rise since April 2021, jumping 5.9pts to hit a six-month high. The improvement in confidence was broad-based, with each of the subindices increasing by at least 5pts. Notably, households’ confidence in their current financial situation was the second highest since early-2023.

This suggests households may be starting to see a boost to their incomes from the Stage 3 tax cuts and other cost-of-living relief measures. The next few weeks will be important in determining whether this is the start of a sustained recovery in consumer confidence.”