FIFA will be hoping that Sepp Blatter's decision to resign as its president will quickly restore the organisation's reputation and repair the damage to its brand.
British firm Brand Finance estimated that the controversy had reduced FIFA's brand value by US$400 million (NZ$560 million) to US$2.8 billion (NZ$3.9 billion). To put that figure in perspective, Brand Finance calculates that FIFA's total value as a business is around $16 billion New Zealand dollars.
Major sponsors have welcomed the move. Coca-Cola issued a statement saying: "Our expectation remains that FIFA will continue to act with urgency to take concrete actions to fully address all of the issues that have been raised and win back the trust of all who love the sport of football."
While McDonald's said: "We're hopeful that the changes being implemented within FIFA will be a big first step in positively reforming the organisation and gaining back trust from fans worldwide."
Blatter has said he will remain in office until FIFA's executive committee organises a vote for his successor.
The security of its sponsorship deals will depend on how quickly FIFA is seen to make changes.
Cheaper car licence fees
From next month there is going to be a hefty price cut for anyone renewing their car registration.
The ACC levy component of the fee is being reduced, meaning savings of between $40 and $170. That will mean an average reduction in the ACC levy of 45 percent.
This is to reflect a new vehicle safety ranking system. Typically the most modern vehicles have the highest safety ranking.
For petrol vehicles, this means savings of anywhere from $40 to as much as $130. Diesel vehicles will see savings of $80 to $170 per year.
So what do you do if your registration expires this month? The advice from the NZ Transport Agency is that you should not renew for a full 12 months. Instead, renew for as short a time as possible to maximise your savings.
I was going to renew online yesterday and could have renewed for a minimum of three months. But I went to a Post Shop and found I could renew for just one month. They also allowed me to pay for the July 1, 2015 to July 1, 2016 registration period at the new lower rate.
As well as the reduction in registration fees, the ACC levy on petrol is going to drop by three cents a litre from July 1.
Z Energy soars
The Z Energy share price leapt 21.6 percent, or $1.10 to $6.20 yesterday, after Z announced it was going to buy Chevron's New Zealand operation. Chevron operates the Caltex brand.
The deal does need the approval of the Commerce Commission however. It will look closely at what effect this proposed deal might have on competition.
Z plans to operate the two brands separately.
Most of Chevron's Caltex stations are independently owned and operated, meaning the people who run the stations determine pricing. But Z will determine the wholesale price at which it sells fuel to the Z and Caltex stations, which make up 49 percent of the market.
New car sales
The latest car sales figures have been released.
The Motor Industry Association says 10,034 new vehicles were registered in May. That is a very slight drop of 30 vehicles compared to May 2014, where 10,064 vehicles were registered.
However, the market for the year to date is up 6 percent (2,925 vehicles) on this time last year.
Toyota remained the overall market leader for the month of May with 16 percent market share (1,604 vehicles), followed by Holden with 11 percent (1,105 vehicles) and Ford with 10 percent (1,025 vehicles).
Toyota, Holden and Ford remain the overall market leaders for the year to date.
Dairy prices
The $7 billion hole in the economy looks set to grow even bigger, after another disappointing global dairy auction.
Prices fell 4.3 percent overall in the latest Global Dairy Trade auction. Whole milk powder price dropped by 3.1 percent on average to US$2309 per metric tonne. Skim milk powder fell 1.3 percent on average to US$1982 per metric tonne.
Global prices are now 54 percent below their peak early last year.
Fonterra has cut this season's forecast payout to its farmers to an eight year low of $4.40 per kilogram of milk solids (compared to last season's record payment of $8.40).
Dairy NZ has calculated that the average farmer's income will fall by $150,000 this season. It estimates that the break-even milk price for the average farmer is $5.70 kgMS. But under the current forecasts they will only be receiving $4.75 all up.
3 News
source: newshub archive
