Welcome to Today in Business - Powered by Spark for Business, an experimental AI podcast by the New Zealand Herald. Each weekday, we bring you five stories, the best of the New Zealand Herald business journalism, summarised and delivered by an AI voice as an easily digestible recap. It's Wednesday, August 20, 2025, and here are five stories you should know about. The Reserve Bank has cut the Official Cash Rate by 25 basis points to 3 percent, citing a stalled economic recovery. The Monetary Policy Committee voted four to two in favor of the cut, having debated options to hold rates or cut by 50 basis points. The bank highlighted weak household and business spending, falling employment, higher costs, and declining house prices. The Kiwi dollar dropped half a U.S. cent, while the NZX50 stock market rallied. Interest rate markets also reacted, with the two-year swap rate falling 15 basis points to 2.97 percent and 10-year bond yields easing to 4.41 percent. In other news, appliance retailer Kitchen Things has gone into receivership, leaving customers uncertain about deposits and orders. Several customers reported losses between four and five thousand dollars. The company's 12 New Zealand stores are closed while receivers from Grant Thornton assess stock and options. Related entities including Applico and Baumatic Appliances are also impacted. Kitchen Things has faced weaker demand and tougher competition over two years, prompting directors to request receivership. Key staff remain as receivers seek buyers for the business. One Hamilton store is unaffected, operating under a separate franchise not included in the receivership. Meanwhile, Spark has reported a sharp profit drop, with net profit down 17.7 percent to 260 million dollars, or 227 million after adjustments. Chairwoman Justine Smyth says the year has been one of Spark's most challenging, citing weaker customer spending and market changes. The company reduced its workforce by about thirteen hundred roles, leaving 4,043 employees, as part of 85 million dollars in cost cuts. Shares rose to two dollars and 52 cents in early trading and closed the day at two dollars fifty seven, up 3.63 percent. Spark declared a full-year dividend of 25 cents per share, matching revised guidance. The result was within earlier forecasts and close to analyst expectations. Overseas, Intel shares have surged 28 percent this month, gaining 25 billion U.S. dollars in market value. Bloomberg data shows the chipmaker now trades at 53 times projected earnings, its highest valuation since 2002. The rally followed reports of possible U.S. government equity involvement and a planned two-billion-dollar investment from SoftBank. Intel recently posted losses of 1.3 billion U.S. dollars over four quarters but is projected to return to profitability. The rebound follows a sharp earnings disappointment in July and earlier political criticism of CEO Lip-Bu Tan. And back home. Transpower has announced plans to invest 193 million dollars upgrading the power grid in the upper South Island. The proposal, submitted to the Commerce Commission, includes two new switching stations near Ōrari and Rangitata, upgrades to transmission lines in the Waitaki Valley, and new voltage management equipment. Executive general manager Matt Webb says the upgrades will strengthen the network north of Twizel, where demand has risen from irrigation and increased electricity use. Transpower also earmarked seven million dollars for non-transmission solutions, such as large batteries and demand response arrangements with industrial users and electricity retailers. That was Today in Business - Powered by Spark for Business - your NZ Herald daily business summary. For the best in business, subscribe to Herald Premium at nzherald.co.nz.See omnystudio.com/listener for privacy information.

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