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Speaker 1: The information provided in this program is of a general

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Speaker 1: nature and is not intended to be personalized financial advice.

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Speaker 1: We encourage you to seek appropriate advice from a qualified

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Speaker 1: professional to suit your individual circumstances. Executives are increasingly optimistic

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Speaker 1: now the Reserve Bank has cut rates, but for how

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Speaker 1: long can their companies hold on for our economy to improve?

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Speaker 2: Yeah, it's sill, pretty tough going. I think we've still

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Speaker 2: got really another probably six nine months where it's going

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Speaker 2: to be pretty choppy, although.

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Speaker 3: In the last three months we've seen some improvement. New

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Speaker 3: Zealand probably tougher than most of the other markets.

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Speaker 1: Businesses are struggling in this economy as high interest rates

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Speaker 1: took hold over the last couple of years. Industries tied

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Speaker 1: to a consumer spender have taken the biggest heads retail, hospitality, transport,

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Speaker 1: construction and even some services. We've got probably our highest

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Speaker 1: bad debt and seventy to ten years. It's all come

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Speaker 1: off the back of COVID's historic low interest rate era,

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Speaker 1: where analysts believe some leaders got too greedy with debt

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Speaker 1: and were quickly caught out.

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Speaker 4: But hash to say it was a bit of complacency

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Speaker 4: and laziness but clearly I think what'll call them out

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Speaker 4: was that zero interest rate and then the firing to

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Speaker 4: five and a half percent, and we're held it here.

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Speaker 1: But now the Reserve Bank has started at dropping rates

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Speaker 1: with a twenty five basis point cut last month and

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Speaker 1: signaling there's more to come. Also, our projections are that

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Speaker 1: the OCEA comes down to somewhere around three percent. Calls

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Speaker 1: in our growing louder for an even bigger rate cut

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Speaker 1: this month after the Federal Reserve opted for a fifty

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Speaker 1: basis point cut in the United States. If our Reserve

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Speaker 1: Bank follows the Fed with a fifty here, it would

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Speaker 1: take our official cash rate down to four point seventy

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Speaker 1: five percent. That would be the lowest it's been in

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Speaker 1: eighteen months. It's a move many executives at eager for

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Speaker 1: this year's here all the mod of the borderroom event.

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Speaker 1: Many executives we're keen to see the pace of rate

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Speaker 1: cuts quickened given the pain the companies are enduring.

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Speaker 2: I will definitely see more and it'll be helpful, but

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Speaker 2: it's going to take time. I think it'll be really

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Speaker 2: probably midnext calendar year before the reality of the interest

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Speaker 2: rate cuts really actually flows through.

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Speaker 1: How would you describe the state of the economy right

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Speaker 1: now from the business the.

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Speaker 3: Europe it's tough work, doesn't matter which economy you're in.

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Speaker 3: The freight volumes aren't as strong as what you would expect,

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Speaker 3: although in the last three months we've seen some improvement.

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Speaker 3: New Zealand probably tougher than most of the other markets,

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Speaker 3: but certainly you can feel some optimism from the customer base.

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Speaker 3: You can feel optimism from our people. So is that

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Speaker 3: transponding into more freight volume? Will We have to wait

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Speaker 3: and see.

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Speaker 1: This time last year you gave me the headline that

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Speaker 1: we've lost our mojo. Have we got our mojo back?

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Speaker 5: Make?

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Speaker 2: I think the mojo still wobbly, Nison. There's a glimmer

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Speaker 2: of light, but I think as a country we still

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Speaker 2: really need to find that sense of ambition, you know,

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Speaker 2: both on the global stage, but also I think are

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Speaker 2: seeds of confidence locally.

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Speaker 6: You're starting to see what I would call hope or

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Speaker 6: that glimmer of hope. It's been we've been kind of

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Speaker 6: in a bit of a funk for lack of another word,

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Speaker 6: for the last couple of years. So people are starting

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Speaker 6: to see that and therefore thinking about the longer term.

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Speaker 6: From a business perspective, you've got a lot through the

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Speaker 6: short term, so thinking about what are we going to

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Speaker 6: need to invest in for consumers themselves. Again, they are

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Speaker 6: still traveling. You've got ninety six percent of kiwis actually outbound,

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Speaker 6: are traveling again compared to twenty nineteen. So yeah, there's

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Speaker 6: there's optimism there that we haven't seen for a little while.

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Speaker 5: New Zealen definitely feels more depressed still at the moment.

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Speaker 5: Hopefully some more light on that rise.

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Speaker 1: I've heard the word hope a lot already this morning.

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Speaker 1: What is giving a business leaders that hope? And is

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Speaker 1: it legit? Scrant Oh?

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Speaker 5: Is it legit? Your look? I think it is because

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Speaker 5: we're starting to see a few more signs. We had

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Speaker 5: a vehicle sales show in Hamilton just last weekend. We

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Speaker 5: did better than last year. First time we've done something

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Speaker 5: better than last year for a little while. So I

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Speaker 5: think people are just starting to turn. I think definitely

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Speaker 5: interest rates are what's changing the attitude of people. We've

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Speaker 5: certainly seen that with the FED cut in the US

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Speaker 5: in the last couple of weeks as well.

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Speaker 1: What are some of the hard decisions that you've had

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Speaker 1: to make in your business and rest of monks.

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Speaker 5: Yeah, so all those natural things you expect in terms

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Speaker 5: of the number of people that you're hiring. The capital

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Speaker 5: expenditure is reduced, and we're definitely looking at at those

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Speaker 5: other cost cutting missions across the board and getting just

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Speaker 5: far more assertive in the market on sales, getting more active.

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Speaker 5: So yeah, it's those classic tough decisions in a difficult market.

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Speaker 3: Two crazy years that we've never seen volumes like that

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Speaker 3: before twenty two and twenty three, and it came away

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Speaker 3: quite quickly, so we had to adjust and that has

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Speaker 3: meant overflow warehouses helping our customers adjust. Therefore volume, but

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Speaker 3: amazing people were held on to everybody and everybody sales focus.

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Speaker 1: You haven't let anyone go. No, you must be one

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Speaker 1: in a million.

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Speaker 3: Yeah, but it's about our people. You have fantastic people.

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Speaker 3: We got to fantastic business.

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Speaker 1: What is your main focus at the moment as a

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Speaker 1: business leader for the next twelve months?

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Speaker 3: Growth? Lots of growth.

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Speaker 2: A big part of our focus is obviously developing our

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Speaker 2: own people because they're because developing our capabilities is a

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Speaker 2: big way about how we can help our clients. But

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Speaker 2: then also you know, we're still big into into our

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Speaker 2: tech transformations to a program and how we can really

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Speaker 2: really use that to drive efficiency through our business and

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Speaker 2: through our customers businesses.

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Speaker 6: Next twelve months reviews were finishing that recovery. We for

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Speaker 6: Auckland Airport were at ninety one percent of what we

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Speaker 6: were in twenty nineteen. So continuing to rebuild, albeit there

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Speaker 6: are some structural changes rebuilding getting that momentum moving again

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Speaker 6: and how we do that. We've got a massive infrastructure

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Speaker 6: program underway as well as how do we give confidence

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Speaker 6: to those people that are traveling through through our own But.

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Speaker 7: I think the big challenge probably is going to be

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Speaker 7: outside New Zealand. What's happening geopolitically. I mean, what's happening

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Speaker 7: in the Middle East at the moment is very concerning.

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Speaker 7: That's going to play into energy prices and commodity markets

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Speaker 7: around the world, and that of course is a critical

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Speaker 7: component of any economics prosperity.

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Speaker 1: Volatility you think is going to be one of the

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Speaker 1: big things going forward.

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Speaker 7: Then yeah, absolutely, I mean we are globally we're in

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Speaker 7: an energy transition anyway. The whollmark of an energy transition

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Speaker 7: or a transition of any type is volatility. Some of

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Speaker 7: the old, some of the new. You don't get it

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Speaker 7: all exactly, transitioning the way that you want it. And

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Speaker 7: I think the world is in transition at the moment.

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Speaker 7: It feels to me like the world is in a

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Speaker 7: leadership transition moment as well, where you've got a number

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Speaker 7: of older leaders that are in the end of their

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Speaker 7: tenure and a number of newer leaders that are coming

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Speaker 7: into the start of their tenure. So you've got this

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Speaker 7: global leadership sort of tension occurring, geopolitics occurring, that's playing

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Speaker 7: into many of the inputs in the New Zealand economy.

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Speaker 1: What's your advice to business leaders and business owners for

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Speaker 1: the next felve months.

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Speaker 2: My advice is you got to look through the current clouds.

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Speaker 2: You've got to have that long term view, and I

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Speaker 2: do think you need to have the aspect of ambition.

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Speaker 2: You know that as a country, I think we've become

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Speaker 2: paralyzed by risk, and I think you know, some of

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Speaker 2: the boardrooms have been paralyzed by risk a little bit

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Speaker 2: as well, and I think we need to actually balance

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Speaker 2: that risk with opportunity because actually good risk management is

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Speaker 2: mostly about how do you actually manage opportunity.

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Speaker 8: What a great problem. To solve great problem, to solve

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Speaker 8: logistics for New Zealand growth, to New Zealand economic growth.

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Speaker 8: We're going to get together and solve the problem.

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Speaker 1: He's been too much time with politicians. He started beside,

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Speaker 1: it's a real problem.

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Speaker 8: I spend lots of time with customers. It's a real problem.

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Speaker 8: The numbers keep changing. They keep on talking about the ships.

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Speaker 5: It's not about the ships.

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Speaker 8: It's bring everyone together. To bring the ships, supports, the

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Speaker 8: customers together. This is the customer logistics problem. It's enough

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Speaker 8: to do with the ships.

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Speaker 1: Have you got your silk to wind my wedding yet?

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Speaker 1: Have you?

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Speaker 6: No?

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Speaker 7: I've got lots of suits to what.

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Speaker 1: You're going to get? A spicial on a bowtie?

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Speaker 3: Oh?

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Speaker 2: I wear a bow tie.

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Speaker 4: What do you think