Climate disclosure gets a little easier for NZX firms; gold run ends

Commerce minister Scott Simpson’s long-awaiting decision on climate disclosure rules have landed, with the market captalisation threshold raised to $1 billion from the $60 million mark that had previously captured smaller players in the costly compliance regime.

Meanwhile, the golden run for gold is over with the precious metal poised for its biggest one-day decline in more than a decade as the easing of investor nerves ends the rush to the commodity’s relative safety, weighing on mining companies such as Newmont and hinting at a soft start to the day for the resources-heavy ASX.

Stocks on Wall Street were generally stronger with earnings from the likes of General Motors, and Coca-Cola boosting the blue-chip Dow Jones Industrial Average, with streaming giant Netflix among those poised to report after the bell.

And Google-parent Alphabet was on the red side of the ledger after artificial intelligence giant OpenAI launched its ChatdGPT Atlas browser.

Better late than never

Commerce minister Scott Simpson unveiled his decision on easing climate disclosure obligations, lifting the market capitalisation threshold for listed companies to $1 billion from the $60 million valuation currently capturing firms, and committing them to spending as much as $2 million to meet the criteria.

Managed investment schemes and their managers will also be excused, while directors will no longer be personally liable if their company breaches its obligations.

“Together, these changes will ensure the right entities are reporting, the regime is not making it harder for Kiwi firms to do business, and the information produced remains robust and useful,” Simpson said in a statement.

The changes come as Australian media are reporting another couple of sizeable deals are in the air, with Canterbury-based Coupland’s Bakeries said to be exiting its retail and manufacturing facilities in full and wanting to sell half its wholesale and distribution arm, according to the Australian Financial Review’s Street Talk column.

Meanwhile, The Australian’s DataRoom column reported Kohlberg Kravis Roberts is hiring investment bankers to sell its Ritchies Transport company.

Australian futures are pointing to a 0.4% decline for the S&P/ASX 200 index when trading opens across the Tasman, with the resources-heavy bourse set to ease from its highs as gold prices tumble and weigh on mining companies.

End of the golden run

Gold futures were down 5.4% at US$4,126 an ounce at 7am in Auckland, with the precious metal’s run coming to an end as investor nerves settle from the brief rattling last week. The CBOE’s volatility index, known as Wall Street’s fear gauge, was down 2%.

Stocks on Wall Street were broadly stronger on corporate earnings growth, with the S&P 500 up 0.1% and the Dow Jones Industrial Average climbing 0.7%. General Motors jumped 16% after the automaker raised its guidance, while defence company RTX rallied 8.2% on increased demand for its munitions and missiles.

Other companies beating analysts’ expectations included 3M and Coca-Cola, while Netflix is among those reporting after the bell.

Alphabet declined after OpenAI launched its ChaptGPT Atlas browser, entering the search engine giant’s territory where its Google Chrome product has a firm grip on the market.

Stock markets were stronger across the Atlantic, with the UK’s FTSE 100 and Germany’s DAX 30 both up 0.3%, while luxury stocks including LVMH and Hermes supported a 0.6% gain for France’s CAC 40.

Danish drugmaker Novo Nordisk declined after its controlling shareholder, the non-profit Novo Nordisk Foundation, plans to put forward its own chair, Lars Rebien Sorensen – who’s previously run the pharmaceutical firm – to lead the company’s board for the next two or three years.

The kiwi dollar traded at 57.44 US cents at 7am in Auckland from 57.29 cents yesterday, and gained to 87.25 yen from 86.53 yen yesterday after Sanae Takaichi secured Japan’s prime ministership.

No local major data are scheduled today, while annual meetings for Michael Hill International, Fletcher Building, Winton Land and Steel & Tube Holdings will provide another update on their respective industries.

Reporting by Paul McBeth. Image from Curious News.