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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 Monday, August 25, 2025, and here are five stories you should know about. Retail sales volumes in New Zealand rose 0.5 percent in the June 2025 quarter compared with March, according to Stats NZ. After adjusting for inflation and seasonal effects, eight of 15 industries recorded higher sales. Electrical and electronic goods rose 4.6 percent, supermarkets gained 1.3 percent, pharmaceuticals increased 1.2 percent, and department stores grew 1 percent. Stats NZ spokesperson Michelle Feyen says growth was modest but broad-based. Westpac economist Satish Ranchhod says spending appetites are "gradually firming." Over the past year, sales volumes rose 2.5 percent, compared with pre-pandemic gains of around 4.5 percent annually, Ranchhod says. In other news, energy distributor Vector reported a $37 million impairment reflecting fewer future gas connections and uncertainty over supply. For the June year, adjusted EBITDA rose 16 percent to $401.1 million. Chief executive Simon Mackenzie says asset sales, including Natural Gas Trading and Vector On-gas, align with the company's evolving portfolio. Vector entered a new five-year regulatory cycle for electricity networks in April, following Commerce Commission re-pricing. The Auckland-based company announced a final dividend of 13 cents per share, bringing the full-year payout to 25 cents, representing 85 percent of free cash flow. Meanwhile, the Reserve Bank has proposed changes to loosen bank capital rules set in 2019. The bank outlined two options that could lower lending costs by between 8 and 13.9 basis points, with larger reductions for higher-risk borrowers. Farmers could see costs fall about 20 basis points, while homeowners may pay 5 less. Governor Christian Hawkesby says it is important to protect depositors and stability while supporting competition. The proposals follow changes under the Deposit Takers Act, which includes a Depositor Compensation Scheme insuring up to $100,000. Public feedback is open until October 3 before final decisions are made. Elsewhere, jewellery retailer Michael Hill International posted a net profit of $2.1 million for the year to June 29, after a loss last year. Revenue was flat at $643.7 million, while gross margin held steady at 60.5 percent. In Canada, sales were up 4.4 percent, and Australia rose 1.2 percent, but New Zealand dropped 5.5 percent. Digital sales increased 6 percent to exceed $50 million. The group ended with 287 stores, down from 300. Inventory closed at $199.1 million amid record gold prices. No final dividend was declared. And in agribusiness, rating agency S&P Global says Fonterra's strong balance sheet supports its credit quality following the $3.845 billion sale of its consumer business. The sale includes global consumer brands outside China, along with foodservice operations in Oceania, Sri Lanka, and the Middle East and Africa. Around 3.2 billion dollars will be returned to farmer shareholders. S&P says Fonterra's dominance in raw milk purchasing remains strong, and debt-to-EBITDA for 2025 is about 1.5 times, well below its downside trigger of 4.0. On the NZX, Fonterra units rose 22 cents to $7.37, while farmer shares eased. 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.