AGP Executive Report

West Bank Pressure: Canada and a coalition including Australia, France, Germany, Italy, the Netherlands, New Zealand, Norway and the UK have condemned Israel’s West Bank settlement expansion, warning the E1 plan would “divide the West Bank in two” and breach international law, as bulldozers demolish Palestinian shops for road works tied to settlements. Welfare Fight: Labour says the Government’s changes to Temporary Additional Support remove a “last resort” safety net for cost-of-living-hit households, with savings framed as coming at the expense of vulnerable families. RBNZ Watch: Economists expect the Reserve Bank to hold the OCR at 2.25% at Wednesday’s review, waiting for clearer inflation direction before any hikes. Tech & Mobility: Tesla has renamed its China driver-assistance package to “Tesla Assisted Driving” ahead of a supervised autonomy rollout. NZ Business & Capital: Bridgewest Ventures says it has raised NZ$60.2m for a deep-tech venture fund, positioning it as a gateway for offshore investors and linking eligible deals to the Active Investor Plus visa. Sport Spotlight: New Zealand beat England by 14 runs in the second women’s T20, with Sophie Devine and Maddy Kerr praised for a key chase-turning partnership.

Defence Budget Push: Defence Minister Chris Penk has flagged a $1.58b maritime security investment ahead of Budget 2026, including drone systems, critical ship maintenance and work to replace the ageing fleet. Civilian Pay Pressure: The PSA says the Government must also deliver real pay rises for civilian NZDF workers, warning bargaining has stalled since Dec 2025. Public Sector Cuts Backlash: Wellington Mayor Andrew Little says he was surprised by the plan to slash public service jobs and wants answers from Finance Minister Nicola Willis, with uncertainty already hitting the capital’s economy. West Bank Diplomacy: New Zealand joined a coalition of western leaders calling for an end to Israeli settlement expansion, citing unprecedented settler violence and warning of legal and reputational risks for businesses. Ethical Investing Mood Shift: Australia’s ESG market is seeing “green fatigue”, with trading down sharply as younger investors cool on conscience-led funds. Health Funding Stress: Waikato DHB is putting PHO contracts “under review”, with PHO leaders saying short-term arrangements may follow.

Markets & NZX: The NZX50 eked out a weekly gain, helped by Serko shaking off gloom and Oceania Healthcare posting a record result, while Infratil kept momentum as investors leaned into the AI theme. Superannuation: A Q&A with Mary Holm puts a spotlight on how state pension expectations are shifting for older Kiwis. Crime & Courts: A senior Comanchero gang leader, Tyson Daniels, has pleaded guilty over a Port of Tauranga meth conspiracy involving 200kg. Geothermal & Tech: Rocket Lab launched Synspective’s Japanese Earth-observing satellite from New Zealand on the “Viva La Strix” mission, and XGS teamed with Baker Hughes on a 150MW geothermal project tied to Meta data-centre demand. Energy & Policy: China launched a crackdown on illegal cross-border broker activity, including a New Zealand-registered firm. Global Politics: Western governments, including New Zealand, condemned Israel’s West Bank settlement expansion and warned companies over legal and reputational risks. Sports & Culture: A new book preserves late hockey writer Tony Dransfeld’s legacy, while Air New Zealand’s Skynest economy sleep concept is set to launch on long-haul routes.

Markets: The NZX 50 edged up 0.2% for the week, led by Serko and Mainfreight as investors leaned into AI optimism and oil prices eased, while Tower slid after weaker half-year results and retailers digested mixed consumer spending. Budget 2026 / Border Security: Customs gets $81.5m for a customs crackdown on drug pipelines, including more frontline scanning and new Pacific and overseas posts. Public Services: A rally is set for Te Papa on Sunday as unions and workers push back on planned public service cuts, arguing jobs can’t be replaced by AI. Health / Industrial Action: Northern Ireland doctors are voting on strike action over pay, warning cancelled operations could hit patients already facing long waits. Innovation / Environment: A trial at Silverstream Landfill in Wellington is testing a process that could turn asbestos into a cement-like by-product. Immigration: RNZ reports Everlee Wihongi’s US immigration hearing was postponed after connection problems, extending her detention. Aviation: Air NZ says new Christchurch international routes are aimed at demand from mining and tourism, even as it consolidates elsewhere.

Markets Rally: NZX50 climbed 0.9% to 12,878 as Infratil surged on fresh AI optimism tied to Nvidia’s record quarter, while Contact Energy lifted after resuming trading. Electricity Affordability: A new push argues power shouldn’t be a “luxury”, spotlighting how fixed retail pricing can hide wholesale swings from households. Emergency Comms Upgrade: Spark and Connexa will upgrade 295 cell towers with stronger backup batteries, aiming to keep 111 calls working longer during outages, with work starting late 2026. Health Cost Pressure: Northland GPs report a sharp rise in missed appointments as fuel prices bite—patients are skipping care because they can’t afford to drive. Courts Disrupted: Rotorua’s courthouse black mould forced judges out and delayed sentencing hearings while remediation and air-quality testing continue. Israel-Gaza Fallout: Ben-Gvir’s taunting video of detained flotilla activists drew US condemnation and EU pressure, with Ireland’s Taoiseach saying it’s accelerating momentum for EU action. Local Business & Culture: Zealong teases its 30-year anniversary, while Auckland FC’s A-League grand final in New Zealand is already drawing big attention.

Auckland & Far North Rescue Bid: Mayor Wayne Brown is “chewing it over” on buying Kaitāia’s at-risk Juken NZ timber mills as a sale deadline nears, with about 200 jobs on the line. Hawke’s Bay Food Security: Hastings and Central Hawke’s Bay mayors have asked McCain to pause its Hastings plant closure for eight weeks while growers explore a grower-owned processing option. Housing Overhaul Backlash: Finance Minister Nicola Willis says she regrets calling social housing tenants “won the lotto” as the Government moves to cut average support in social housing while lifting support for some private renters. Central City Order Push: A bill to allow police move-on orders has cleared first reading, aiming to curb disorder in CBDs. Markets & Deals: NZX rallied after the Contact Energy sell-down; Infratil jumped ahead of Meridian. Insurance Talent: Zurich NZ has hired an AIG executive, Alan James, as distribution head. Tourism Trade: TRENZ wraps in Auckland and heads to Christchurch in 2027.

Public Service Shake-up: Finance Minister Nicola Willis is signalling a tightly controlled Budget ahead of May 28, with more spending restraint and state reshaping as job cuts and uncertainty keep biting households. Cost-of-Living Pressure: A solo mum says groceries are now the week’s biggest stress, while fuel-driven price rises are feeding into higher bills and more KiwiSaver hardship withdrawals. Housing Crisis Heat: Queenstown Lakes’ affordable housing trust warns “madness” is pushing people into hot-bedding, garages and long waitlists. Energy & Markets: NZX50 slid as investors cleared decks for Contact’s selldown, with power-company block trades adding to the churn. Competition & Regulation: T&G’s planned NZ fresh business divestment is expected to need ComCom sign-off, potentially delaying a handover. Aviation Tech: IATA launched a digital baggage platform aimed at speeding the shift to modern baggage messaging. Rugby Court Fight: Rugby Australia is defending a “Winning Rugby” plan dispute involving the now-defunct Melbourne Rebels.

Public Service Shake-up: Budget 2026 is set to cut about 14% of public sector roles, aiming for $2.4b in savings, but the fight is already turning political—MFAT has been spared the immediate 2% baseline cut, while Labour and unions warn of service damage and “ghost town” effects in places like Wellington. Markets & FX: Global risk sentiment is souring as US bond yields jump on Iran-war inflation fears; the NZ dollar is hovering near multi-week lows and NZX is hit by a Contact Energy block trade. Energy & Infrastructure: Infratil is selling a large Contact Energy stake in a discounted block deal, while on the ground Lightyears starts construction on a 13.5MW Reefton solar farm to boost West Coast resilience. Business & Crime: An Auckland man has been charged over two illegal poker venues allegedly taking $1m+ in profits, and a Christchurch payroll manager has been sentenced for $188k fraud. Consumer Pressure: Consumer NZ says no bank met its People’s Choice Award bar for the first time in a decade, citing widespread dissatisfaction with value and trust. Trade: Trade Minister Todd McClay heads to China for bilateral talks and APEC, including fuel-supply discussions. Weird-but-Real: De-extinction claims resurface as a US biotech firm says it hatched chicks from an artificial egg—sparking fresh scepticism from scientists.

Public Service Overhaul: Finance Minister Nicola Willis says the government will cut the core public service to no more than 55,000 full-time equivalents by July 2029, shedding about 8,700 roles from December, with most agencies facing 2% operating cuts next year and 5% in each of the following two years to bank NZ$2.4b—while insisting the cuts won’t hit teachers, nurses, doctors, police or Crown entity staff. Markets Mood: The NZX50 bounced sharply, its biggest daily gain in nearly two months, as Trump’s pause on an Iran strike eased Middle East risk sentiment and helped lift heavyweight Fisher & Paykel Healthcare and power stocks. Household Pressure: ASB’s housing survey points to softer house-price expectations as fuel-price and interest-rate fears bite, with more households now expecting mortgage rates to rise. Media Fallout: Sky TV removed Married at First Sight UK from ThreeNow after rape allegations, while Sky says it’s monitoring the franchise closely. De-extinction Buzz: Colossal Biosciences claims it has hatched live chicks from an artificial eggshell, reigniting debate over how far “de-extinction” can realistically go.

Public Sector Shake-up: Finance Minister Nicola Willis says New Zealand will cut about 14% of public service jobs—nearly 9,000 roles—by mid-2029, with the workforce target set at 55,000 full-time equivalents and $2.4b in savings to be redeployed, while the government also plans to merge departments, tighten budgets with “sinking lids”, and push faster AI adoption. Budget Politics: Labour’s Future Fund details are still being kept under wraps until after the election, with the party now pointing to Treaty-related “caveats” as the reason it won’t name which state assets or costs are involved. Energy Cost Pressure: Greenpeace’s fuel crisis scorecard gives National and ACT very low marks on practical steps to cut imported fossil fuel dependence, while the Greens and Te Pāti Māori score highest; separately, councils are still waiting on government green lights for rooftop solar loans. Local Governance & Media: Queenstown Lakes District Council is accused of blacklisting Crux Media’s editor from council access, sparking a press-freedom warning. Renewables Pipeline: Southland’s Hokonui Wind Farm has cleared its investigation phase and is moving to grid connection and fast-track approvals. Aviation Fuel Stress: Asian airlines’ industry chief warns carriers may need government support as jet fuel costs surge, citing risks similar to Spirit’s collapse.

Public Service Reshuffle: Finance Minister Nicola Willis is set to outline plans to cut the number of government agencies by pushing ministries and departments to propose “logical” mergers, alongside more digitisation and AI, and a target to reduce public service headcount to 1% of the population by 2029. Markets Mood: The NZX50 slid 1.6% as rising global bond yields and higher oil prices cooled risk appetite, dragging stocks including A2 Milk, Ryman Healthcare, Kiwi Property and Gentrack. Climate Cost Pressure: A new risk mapping exercise in Australia’s Victoria flags more than $57b of state infrastructure exposed to climate hazards by 2030, with bushfires, flooding and extreme heat the biggest threats. Health & Savings Squeeze: KiwiSaver withdrawals are surging, with a sharp rise in partial and full exits, while New Zealanders are still facing long waits for some care—prompting families to fund overseas treatment. Postal Fallout: The Government has sent a strongly-worded letter to NZ Post chair Dame Paula Rebstock, demanding better communication over store service closures.

Streaming Ads Boom: Netflix says its ad-supported tier now reaches 250m monthly viewers and will expand into 15 more countries from 2027, with AI tools for ad buying and audience planning—New Zealand is on the list. Public Sector Reshuffle: Budget 2026 is set to push major public service reforms, with more department mergers and further cuts to roles, as shock survey results show many public servants—especially younger workers—consider leaving. Education Overhaul: Education and Training (System Reform) Amendment Bill changes head to the Committee of the Whole House, including tighter Teaching Council accountability and new governance settings. Health Watch: WHO opens its annual assembly amid Ebola and hantavirus concerns, while NZ’s Island Pharmaceuticals shares jump on Ebola-linked demand for its antiviral work. Markets & Money: NZX starts weaker with heavy share falls as bond yields rise; the kiwi and aussie keep sliding. Policy Flashpoint: NZ First’s BNZ buyback plan keeps drawing fire as experts call it a costly, unrealistic idea. Business Moves: Gentrack buys NZ energy software firm Factor for up to $34m; AFT Pharmaceuticals appoints a new CFO.

Molesworth Station Lease Battle: The Crown’s 180,000ha Molesworth Station is up for grabs, with five applicants competing as the Department of Conservation weighs new plans for farming, conservation, tourism and public access after the current lease ends in June. Health Policy Push: GenPro has launched its Election 2026 agenda calling for a major funding lift for general practice, a stronger cost-pressure mechanism and changes to how primary care is funded and delivered. Hydrogen Freight Momentum: Hiringa and TR Group say they’re close to putting about a dozen hydrogen fuel-cell trucks on the road, despite earlier delays and ongoing debate over whether hydrogen or batteries should lead heavy-vehicle decarbonisation. Airline Pressure Point: A fresh wave of commentary and analysis keeps spotlighting Air New Zealand’s unique public-service role as fuel-cost pain and flight cuts feed investor and public scrutiny. Climate Disclosure Climb: New Zealand businesses are being pulled into a wider global shift toward assured, operational climate reporting—mirroring tougher rules rolling out overseas. World Cup Diplomacy: FIFA says it held “excellent” talks with Iran’s federation to secure Iran’s participation in 2026.

Immigration & Justice: A key witness in a kiwifruit tax scam is facing deportation despite being central to a pending Crown prosecution tied to an alleged violent kidnapping, with critics warning the move could undermine the case. Election Economics: Winston Peters doubles down on NZ First’s pitch: KiwiSaver-from-birth with a $1,000 Crown payment and a plan to buy back BNZ from NAB and merge it with Kiwibank to create a “National Bank of New Zealand.” Maritime Diplomacy: Japan’s JMSDF frigate JS Kumano visits Wellington alongside HMNZS Te Mana, underscoring interoperability as regional security tensions rise. Public Safety: Auckland–Tauranga flights were disrupted after floating lanterns entered the approach path. Health & Community: Northland mothers are being supported by a new postpartum business model focused on “matrescence” and practical recovery help. Environment: A humpback whale nicknamed “Timmy” is confirmed dead after a controversial rescue attempt.

Health Safety Gap: A Re: News investigation says peptides are being illegally sold “in broad daylight”, with buyers using AI chatbots to get injection instructions—pushing harm reduction into private, unsafe spaces. Fuel Cost Pressure: Protesters gathered in Auckland’s Victoria Park against fuel taxes, with organisers calling for cuts to excise and RUCs as petrol and diesel costs surge. Foreign Policy Tension: A New Zealand Herald analysis argues the Iran war is exposing a harder-to-defend “hedging” approach, with diplomacy tilting toward the US while avoiding direct endorsement. Global Health Leadership: Former Namibia First Lady Monica Geingos has been appointed chair of PMNCH, succeeding Helen Clark as the world’s biggest maternal and child health alliance faces funding strain. Aviation Connectivity: United Airlines’ long-haul WiFi reliability complaints are reigniting debate over Starlink rollouts and older onboard systems. NZ Sports Spotlight: Sky Blues interim coach Patrick Kisnorbo watched as Ben Garuccio’s penalty shootout heroics sent Sydney FC to the A-League Men grand final.

Hospice Funding Crisis: Hospices across New Zealand are turning away dying patients as government funding falls short, with the sector saying it needs an extra $80m–$100m a year to stay sustainable. Quarantine Shock: Australia has moved to a tougher response after six passengers from the hantavirus-hit MV Hondius arrived in Perth, including five Australians and one New Zealander, with a three-week quarantine at Bullsbrook. Sport Governance: The ICC has suspended Cricket Canada funding for six months over governance and financial oversight concerns, though it says cricket activities won’t be disrupted. Workplace Accountability: WorkSafe has laid charges against Dunedin robotics firm Scott Technology after a worker died in April 2025, with penalties up to $1.5m. Aviation Disruption: Auckland–Tauranga flights were disrupted after floating lanterns entered the airport airspace, forcing an aborted landing and a return. Trade Watch: Exports hit a 5-month high, rising 13.48% in April, while the trade deficit widened.