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Unemployment forecast to hit four-year high, with rise to 5.1%
Unemployment forecast to hit four-year high, with rise to 5.1%

04 February 2025, 6:46 PM

Unemployment is expected to reach a four-year high in official numbers confirming the recession has caught up with the jobs market and also slowed wage growth.Consensus economist forecasts are for the unemployment rate to rise to 5.1 percent in the three months ended December from 4.8 percent in the previous quarter.ANZ economist Henry Russell said the labour market was a lagging indicator of the economy."While the New Zealand economy appears to have bottomed out and is now recovering, the labour market is still playing catch-up to the past slowdown in activity."The second half of last year saw loss of many hundreds of jobs in government restructuring and industrial layoffs, with estimates the economy has shed as many as 30,000 jobs in the past year, while the number of jobs advertised has been more than 20 percent lower than a year ago.Given upOne factor that has likely limited a bigger rise in unemployment has been people giving up looking for work."Much of the current cycle in employment has been driven by young people, who were drawn into the workforce in 2021-22 when the labour market was tight and migrant workers weren't available," Westpac senior economist Michael Gordon said."As those conditions have reversed, many of them are ending up back at school rather than continuing to look for work. The result is that the official unemployment rate has risen at a slower pace than many of us (including the RBNZ) were expecting."He said that along with slower growth in the size of the workforce and lower immigration would help put a cap on unemployment, which had previously been forecast to reach at least 5.5 percent.However, recovery in the jobs market is expected to be slow until lower interest rates filter through to better household spending, and increased business activity and sales, although the mood has improved according to Westpac McDermott-Miller's latest survey.Slow wages to content RBNZMeanwhile, a weaker labour market with more people chasing fewer jobs has put the brakes on the rise in wages.During the pandemic a desperate need for workers fuelled strong wage growth, which, by some measures, was more than 7 percent annually.ASB senior economist Mark Smith said all that had changed."Employees are just trying to hang on to their jobs and the security of having a job is trumping the pay increases they would be getting and lower inflation means consumers are asking for less compensation."The consensus is for annual wage growth of around 3 percent.Smith said that should satisfy the Reserve Bank's desire to see lower wages as a driver of slower domestic inflation, thus justifying a further 50 basis point cut to the official cash rate to 3.75 percent on 19 February.

Donald Trump's tariff trade war could spell trouble for NZ, experts say
Donald Trump's tariff trade war could spell trouble for NZ, experts say

03 February 2025, 10:00 PM

US President Donald Trump has introduced 25 percent tariffs on Mexico and Canada, and a 10 percent tariff on China - claiming they're meant to stop drugs and undocumented immigrants.Sense Partners economist John Ballingall told Morning Report's Corin Dann the move could spark a potential retaliatory trade war between the nations, spelling bad news for New Zealand exports."The larger concern for New Zealand is that Trump's actions here lead to retaliation, which we're already seeing from Canada, Mexico and China, and that that blows up into a full-blown trade war."When that happens, you'll see global GDP growth go down, and that means lower demand for all of the things that New Zealand exports."He acknowledged there are possible upsides in the short term.As dairy products going into Canada become more expensive.This could potentially open up new opportunities for New Zealand."I don't want to paint this as something which is great for New Zealand. The medium-term and longer-term consequences are pretty worrying."Especially, he said, if the scope of Trump's tariff tactics widens to include Europe."Europe's already talking about how it might retaliate. We know the EU does this pretty effectively. It's got a list of products that it would counter-punch with."So again, it's not hard to see this skill heading relatively quickly into something much more concerning to New Zealand."But while the actions of the US President have incensed those who believe the measures violate the rules-based system of fair trade, New Zealand is unlikely is join the choir."I think, to date, we've been very measured in terms of any political statements around President Trump's actions."I think that is probably going to be the way that we continue to go. There isn't a huge amount to be gained by jumping up and down and criticizing the US."Now that may sound like we're being a bit weak, but I think we have to be pragmatic. New Zealand making a song and dance isn't going to change President Trump's mind about tariffs, so perhaps we're better off taking the diplomatic route, trying to talk to people in this administration, position New Zealand as a partner."Trump should be told 'allies are not lackeys'But, Otago University international relations professor Robert Patman says New Zealand and other liberal democracies should make their opposition to the tariffs loud and clear."We always see ourselves as a good international citizen. Well, we actually need to walk the talk," he said."And that means to say we need to make it quite clear, along with Australia and other liberal democracies that Mr Trump's attempts to single out traditional allies of the United States for this sort of top-down pressure is unacceptable. Allies are not lackeys," he said.Patman said Trump's "America First" approach to alliances and international institutions implies that other parties involved in the alliances took second place."I do think it is important that the United States is left under no illusions that everyone is going to quake in their boots and fold in front of them under Mr Trump."Noting that New Zealand did have an ongoing trade dispute with Canada over dairy quotas under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), he said the relationship was strong.US tariffs won't affect profits says Fisher & PaykelAlthough Fisher & Paykel Healthcare said US tariffs will increase the cost of the goods it makes in Mexico that isn't expected to have a material impact on this year's net profit.The company manufactures about 45 percent of its products in Mexico and 55 percent in New Zealand, said managing director Lewis Gradon.About 60 percent of its products sold in the US are made in Mexico, with US-based customers generating about 43 percent of its first-half-year revenue.Gradon said they're taking a long-term view, working with global suppliers and US customers to mitigate the impact of the US tariffs.'In a wait and see period'Executive director at ExportNZ, Joshua Tan, said while the change brings possible risks and opportunities, right now exporters are "in a wait and see period given that the Trump administration hasn't actually announced anything on New Zealand.""There could be an opportunity for New Zealand to replace Canadian, Mexican, and Chinese goods in the US market and for our products to replace US products in those markets."The great thing is New Zealand has free trade agreements with all three.""We're pretty confident our exporters can adjust to global changes... but it's pretty hard to break down at this point."

Cost of Living Rises 3.0% in 2024
Cost of Living Rises 3.0% in 2024

03 February 2025, 6:45 PM

Households across the country continue to feel the pressure of rising living costs, with new figures from Stats NZ showing a 3.0 percent increase in the 12 months to December 2024.This follows a 3.8 percent rise in the September 2024 quarter, highlighting persistent financial strain on families.The Household Living-Costs Price Indexes (HLPIs), which measure inflation's impact on different household groups, indicate that key contributors to the increase include insurance, property rates, and rent.Meanwhile, consumer inflation, measured by the Consumer Price Index (CPI), rose 2.2 percent in the same period."For many households, interest payments on mortgages remain high and continue to contribute significantly to living costs," said Stats NZ prices and deflators spokesperson Nicola Growden.Interest payments have surged 104 percent since December 2021.However, the pace of increase has slowed, with a 7.1 percent rise in the past year.Other expenses, such as building new homes, climbed 2.0 percent.Superannuitants on the Hibiscus Coast may feel the strain more acutely, with their living costs up 3.6 percent.Many in this group own their homes but face rising insurance and property rates, which increased 15.8 percent and 12.4 percent, respectively.Beneficiary households saw a 3.3 percent cost increase, largely due to rent rising 4.5 percent and property rates increasing 12.1 percent.Rent remains a significant portion of their expenses, accounting for 29 percent of their household budgets.For the lowest-spending households, living costs rose 3.9 percent, the highest increase across all groups.Meanwhile, the highest-spending households saw the lowest cost rise at 2.7 percent, mainly due to interest payments, insurance, and property rates.Though inflation has cooled compared to previous years, ongoing increases in core expenses continue to challenge Coasties, particularly those on fixed incomes or renting.Have a News story to share?Contact [email protected]

Sellers Drive Property Market Surge in 2025
Sellers Drive Property Market Surge in 2025

02 February 2025, 10:59 PM

New Zealand’s property market kicked off 2025 with a surge in new listings, reaching levels not seen in nearly a decade, according to realestate.co.nz. After a record-low December, January saw nearly 9,000 new listings, marking a 21.2% increase year-on-year.The influx of properties is providing buyers with more choice while increasing competition among sellers. Stock levels are also at their highest January levels since 2015, creating a market environment with relative price stability.Stock Levels at a 10-Year HighStock levels nationwide climbed 18.9% compared to January 2024, with all 19 regions experiencing an increase. Auckland led the surge, recording 11,465 properties available for sale—the highest January level since 2012.“We haven’t seen this level of housing stock in Auckland for more than a decade,” said Sarah Wood, CEO of realestate.co.nz. “There could be a window of opportunity for those looking for property in the region.”The increase in stock levels indicates a more balanced market, with buyers benefiting from greater selection while sellers navigate a more competitive environment.Prices Hold Steady Despite Market ShiftsWhile new listings and stock levels surged, property prices remained relatively stable. The national average asking price in January was $868,969, a slight 1.3% decline from the previous year.Regional trends varied, with Coromandel experiencing the largest drop, down 20.3% year-on-year to $1,004,312. Conversely, the West Coast saw a 6.3% price increase, reaching $505,151. Four regions—Auckland, Hawke’s Bay, Nelson & Bays, and Southland—saw prices rise both month-on-month and year-on-year.Opportunities in a Changing MarketWith interest rates easing and a high volume of properties available, market conditions are providing both buyers and sellers with new opportunities.“Lots of choice, combined with relative price stability, offers certainty for both buyers and sellers,” said Wood. “And as interest rates decline, the market may become more appealing for those on the sidelines.”Despite the strong start to the year, high stock levels mean a rapid rebound in prices is unlikely. However, Wood noted that real estate markets are cyclical, and shifts are expected over time.Have a News story to share?Contact [email protected]

Penlink Progress Continues in Whangaparāoa
Penlink Progress Continues in Whangaparāoa

02 February 2025, 8:30 PM

Whangaparāoa locals will notice continued progress on the Penlink project, with significant road and bridge construction developments. The project team has completed the majority of bulk earthworks between the Wēiti River and Whangaparāoa Road, marking an important step forward in the region's transport infrastructure.Since mid-2024, work has focused on relocating and installing underground services to support the next construction phase. These installations are necessary as the team moves forward with building the main alignment for the future Whangaparāoa intersection.A major traffic change is set for March, with a long-term temporary closure planned for the Cedar Terrace intersection. The closure is expected to last at least 12 months, requiring all Cedar Terrace traffic to detour via Scott and Norfolk Roads. Temporary steel roadside safety barriers will also be installed along Whangaparāoa Road near the work site to create a safe working space while maintaining two lanes of traffic.Wēiti River Channel Reopens Following Concrete PourConstruction crews recently completed a large concrete pour for the Pier 4 piles, allowing the reopening of the Wēiti River channel. While vessels can now navigate past the worksite, restrictions remain in place. Boaters travelling upstream must pass through a controlled navigable gap between the eastern and western sections of the temporary platform.For safety reasons, the channel will be intermittently closed during construction hours when heavy loads are being lifted over the navigable gap. During these periods, vessels must follow instructions from the project team, who can be contacted via VHF CH73 or 0800 PENLINK. Safety vessels and hand signals will be used to manage movement and ensure safe passage.As construction progresses, locals and road users are encouraged to stay updated on detours and roadworks. The Penlink team remains committed to maintaining safety while advancing this critical transport project.Have a News story to share?Contact [email protected]

Pothole Repairs Exceed Targets on State Highways
Pothole Repairs Exceed Targets on State Highways

01 February 2025, 7:16 PM

Coasties can now enjoy a smoother ride on state highways, thanks to the Government's efforts to tackle potholes. Since July last year, around 98 per cent of potholes on state highways have been repaired within 24 hours of identification.Transport Minister Chris Bishop says the Government's commitment to getting New Zealand's roads back on track is delivering strong results."Increasing productivity to help rebuild our economy is a key priority for our Government, and boosting pothole repairs and prevention will deliver a safe and efficient state highway network that will support this growth."To address the issue, the Government established a $3.9 billion Pothole Prevention Activity Class over three years. This funding is ring-fenced for resealing, rehabilitation, and drainage maintenance works. The NZ Transport Agency (NZTA) is delivering a significant programme of works, including a record increase in road rehabilitation.The results show that NZTA has delivered on the Government's 24-hour pothole repair targets each month since they were introduced. The data reveals:July 2024: 7,114 potholes repaired, with 95% repaired within 24 hoursAugust 2024: 6,303 potholes repaired, with 98% repaired within 24 hoursSeptember 2024: 5,030 potholes repaired, with 98% repaired within 24 hoursOctober 2024: 4,809 potholes repaired, with 98% repaired within 24 hoursNovember 2024: 3,200 potholes repaired, with 99% repaired within 24 hoursDecember 2024: 1,697 potholes repaired, with 98% repaired within 24 hoursIf you spot a pothole on the state highway network, report it immediately by calling 0800 4 HIGHWAYS.Have a News story to share?Contact [email protected]

Auckland Transport Revises Fares And Zones
Auckland Transport Revises Fares And Zones

01 February 2025, 1:29 AM

Reminder: Auckland Transport (AT) is rolling out significant changes to its fare structure and zone system starting 2 February, marking the most extensive update since 2016.The changes aim to simplify travel for passengers across buses, trains, and ferries while adjusting fares to reflect rising operational costs.The new system reduces the number of fare zones from 14 to nine, consolidating several areas.For example, the East Coast/South Rodney zone now combines the Helensville, Huapai, Hibiscus Coast, and Upper North Shore zones.These adjustments result in cost savings for some passengers, particularly those travelling longer distances.From 2 February, an adult travelling from the Hibiscus Coast to Albany will pay $2.80 per journey, down from $4.65.Similarly, passengers commuting from the Hibiscus Coast to Auckland city will see their fare drop from $7.40 to $6.25 per trip.While some fares are decreasing, Auckland Transport’s annual fare review will bring modest increases to other fares.Bus and train journeys will rise by 15 to 25 cents, and ferry fares will increase by 20 cents to $1.40, depending on the distance travelled.AT’s Director of Public Transport and Active Modes, Stacey van der Putten, explained the rationale behind the adjustments.“We know any increases add to people's cost of living and so these are carefully considered,” Ms Van der Putten said.“However, the cost of running, maintaining, and investing in Auckland’s public transport network is also increasing, and we need to keep up with this.”She noted that the $50 seven-day fare cap for HOP card users remains unchanged, benefiting approximately 25,000 weekly passengers.This cap provides some relief for frequent bus, train, and ferry users.Additionally, off-peak discounts will be discontinued, as they have not achieved the intended impact of managing peak-time capacity.Auckland Transport Director of Public Transport and Active Modes, Stacey van der PuttenFerry fares will also be adjusted independently from buses and trains to account for their operational costs.AT says these structural changes aim to make fares simpler and fairer while encouraging public transport use.Ms Van der Putten highlighted the long-term goal of aligning Auckland’s public transport systems with global best practices.“These structural changes themselves, when applied as a whole, are revenue neutral,” she said.“Our key driver for these changes is to bring the most value to people who use our services.”Locals are encouraged to review the new fare zones and pricing changes before they take effect on 2 February.Have a News story to share?Contact [email protected]

Speculation Desley Simpson will stand for Auckland mayoralty at next election
Speculation Desley Simpson will stand for Auckland mayoralty at next election

31 January 2025, 10:28 PM

There is growing speculation over whether Wayne Brown's own deputy and political ally is set to challenge him for Auckland's top job.Desley Simpson, who previously stood under the right-leaning Communities and Residents (C&R) party in local body elections, has served as deputy to Mayor Wayne Brown since his election in the 2022 elections.The high profile councillor is married to businessman and former National Party president Peter Goodfellow.Simpson took on a more visible role as the face of Auckland Council in the wake of the Auckland Anniversary Floods when Brown was criticised for not handling the emergency well and for his combative attitude toward media at the time.There has been speculation in political circles over Simpson's future in recent months.However, Simpson told RNZ on Thursday afternoon she had "not yet made a decision about what I intend to to this year".Sources familiar with the situation, who did not want to be named, told RNZ in December that Simpson was no longer a member of C&R and that it was expected she would launch a mayoral bid.In December a domain name, "DesleyforMayor.co.nz'' was registered by Andrew Simpson, her son by her first marriage to Coromandel MP and Senior National Party Whip, Scott Simpson.When asked whether Simpson was still an active member and would be a C&R candidate this election, President David Hay said he did not want to comment until he had spoken to Simpson.He said there had been no discussions between C&R and Simpson about her joining the mayoral race but "the rumour was she was running''.Hay said he had tried to contact Simpson in the past few days but she was not answering.RNZ was told on Wednesday Simpson was overseas and would be back at work next week.In a bizarre turn of events, the domain name 'desleyformayor.nz' was registered by Jordan Williams last week.Jordan Williams is a right-wing lobbyist and political campaigner, known for his involvement in the Taxpayers' Union.In a statement Williams said when he discovered the domain name was available he registered it.Speaking to RNZ Williams said he was not involved in Simpson's campaign and had done it as a joke.In an email to Ratepayers' Union members, he said they discovered Simpson's son only registered "DesleyForMayor.co.nz" and forgot "DesleyForMayor.nz".He said they would give the domain to Simpson if she wanted it.Wayne Brown has not officially declared he is standing for mayor again, saying he would make an announcement early this year, but is widely expected to stand.He did not want to comment "at this time", a spokesperson for his office said.Simpson has been contacted for comment.

Hibiscus Coast Notice Board Keeps Locals Connected
Hibiscus Coast Notice Board Keeps Locals Connected

31 January 2025, 7:01 PM

Hibiscus Coast residents now have a free, easy-to-use tool to stay informed and engaged with local happenings. The Community Notice Board, , a dedicated section within the Hibiscus Coast App, allows individuals and community groups to post notices at no cost.With over 50,000 monthly views, the platform ensures that local notices reach a wide audience, making it an effective tool for sharing important updates. Coasties can use the board to post announcements, lost-and-found alerts, and personal items for sale. Community organisations and non-profits can also raise awareness about local initiatives and events.“The notice board is a great tool for keeping locals connected,” said Steve Pulley, owner of the Hibiscus Coast App. “People can post notices easily and see what’s happening in their neighbourhood without needing to sift through social media.”Unlike traditional paper-based notice boards—or social media platforms where posts can quickly get lost in busy feeds—the Notices section keeps information visible, accessible, and relevant. Posts remain live for a set period, ensuring they reach the right audience at the right time.Locals have already begun using the platform to share updates.The initiative aims to foster stronger local connections by making essential information easily available.For those looking to promote events, the app also features a separate Events page, ensuring a clear distinction between general notices and upcoming activities.While the Community Notice Board is open to the public, business listings are not permitted. Local businesses can explore advertising options or business directory listings within the app to reach its growing audience.Coasties are encouraged to make use of the Community Notice Board to keep the Hibiscus Coast informed and connected. Notices can be posted online at any time, completely free of charge.Have a News story to share?Contact [email protected]

Business Confidence Remains High in New Zealand
Business Confidence Remains High in New Zealand

31 January 2025, 2:00 AM

According to the latest ANZ Business Outlook survey, business confidence across New Zealand remains strong despite a slight dip.The survey, released yesterday, reports an eight-point drop in business confidence to +54 in January, while expected own activity eased by four points to +46. ANZ describes the figures as "easing, but still extremely high."Economic Growth Minister Nicola Willis acknowledged the findings, stating that the economy is on a positive trajectory."The latest ANZ Business Outlook survey shows business confidence and expected own activity remain very high," Willis said.She attributed the resilience to improving economic conditions, including inflation control and declining interest rates."New Zealanders have faced challenges with the high cost of living and elevated interest rates. This survey, along with NZIER’s findings this month, suggests conditions are set to improve," she said.Willis emphasised the government's commitment to accelerating economic growth and ensuring businesses continue to thrive."Economic growth means more and better-paying jobs for Kiwis, creating community wealth and generating revenue for world-class infrastructure, healthcare, and education services," she said.The ANZ survey serves as a key indicator of business sentiment nationwide. While confidence levels fluctuate monthly, the latest data suggests businesses remain optimistic about their future performance.Have a News story to share?Contact [email protected]

Local wins boat in Coastguard Lottery
Local wins boat in Coastguard Lottery

30 January 2025, 11:30 PM

Lifelong boatie, Ryan Archer from Whangaparāoa is now the proud owner of a brand-new, custom- built Rayglass boat after winning this year’s Coastguard Captain’s Club Lottery.  Growing up in a family with a strong connection to the marine industry, Ryan's love for boating started early.“At 16, my parents insisted I get a membership as an added layer of safety when I went out fishing with friends on my 16-foot boat. It became my peace of mind on the water,” says Ryan.  Over the years, the membership proved its worth.Ryan recalls one memorable incident on Lake Taupō while testing a powerboat, and the motor failed.“One call to Coastguard, and the crew were there to help. I don’t know what I’d have done otherwise.” For his 30th birthday, Ryan's family gifted him a lifetime Coastguard membership, and ever since, he's contributed annually through Coastguard’s lotteries.  That turned into something extraordinary when he received the winning call in December.“I’d completely forgotten I’d even purchased the tickets. It was such an incredible surprise, and to be honest, my wife thought it was a scam at first,” he laughs. Winning Coastguard’s Captain’s Club Lottery couldn’t have come at a better time.With a growing family and an ageing boat that no longer met their needs, Ryan’s new vessel, complete with custom comforts and an outboard motor of his choice, is perfect for family adventures. But for Ryan, the win is much more than just the boat. As a father of two, he knows firsthand how important it is to have that peace of mind on the water.“Buying a lottery ticket isn’t just about the prize,” says Ryan.“It’s about supporting a cause that truly makes a difference in the lives of Kiwis. Coastguard keeps families safe, and I’m proud to support and help fund that work.”Have a News story to share?Contact [email protected]

Relentless Focus on Literacy and Numeracy
Relentless Focus on Literacy and Numeracy

30 January 2025, 10:00 PM

As the 2025 school year begins, students across the Hibiscus Coast and the rest of New Zealand will see a renewed emphasis on literacy and numeracy, following the government’s push for structured and explicit teaching methods.Education Minister Erica Stanford announced that all state schools will now follow a knowledge-rich curriculum, designed to ensure students receive consistent and effective instruction in reading, writing, and mathematics.“A world-leading education system is a key driver to economic growth,” Stanford said. “We want all children to be proficient and confident in reading, writing, and maths so they grow up and live the lives they want.”The new approach focuses on structured teaching that does not leave learning to chance, alongside improved assessment tools to identify students in need of additional support earlier. According to Stanford, this change aims to create a strong foundation for all students, regardless of their career aspirations.To support the transition, the government has allocated $30 million for professional learning, development, and classroom resources, including maths workbooks and online learning tools. These investments will provide 433,000 students with essential materials to track their progress and support their learning.Teachers will also receive guidance on what to teach, when, and how, ensuring a standardised approach across schools.As the structured literacy and numeracy curriculum is embedded this year, the Ministry of Education will continue updating other subject areas up to Year 13, alongside ongoing reforms to NCEA and school infrastructure improvements.Stanford extended her best wishes to teachers, students, and parents as the new school year begins, stating that the government remains committed to ensuring every child receives a strong education.Have a News story to share?Contact [email protected]

Universities Must Foster Entrepreneurial Spirit
Universities Must Foster Entrepreneurial Spirit

30 January 2025, 6:14 PM

Locals are being urged to rethink how universities approach entrepreneurship education to better prepare students for the modern economy.A recent report by the Science System Advisory Group has highlighted significant gaps in entrepreneurship education within New Zealand's universities. The report emphasises that universities are failing to equip students with the necessary skills to succeed in the entrepreneurial realities of the modern economy.Key findings from the report indicate that PhD programmes remain overly focused on academic pursuits, despite most graduates pursuing careers in industry, startups, or government. Furthermore, entrepreneurship is poorly integrated into STEM degrees, leaving students lacking in innovation and research commercialisation skills.According to Rod McNaughton, Professor of Entrepreneurship at the University of Auckland, "Entrepreneurship education must start earlier. Many innovation-driven countries introduce entrepreneurial thinking in secondary, and even primary school, exposing students to essential skills like problem-solving, innovation, and business-building."Professor Rod McNaughton.McNaughton stresses that universities cannot drive this change alone. "Government support is crucial. The Government must support industrial PhD programmes, incentivise industry partnerships, and fund co-operative and entrepreneurship education across disciplines."The University of Waterloo in Canada offers a compelling model for fostering entrepreneurial spirit. By integrating entrepreneurship into STEM programs, combining researcher-owned IP models with co-operative education programs, and cultivating a thriving innovation ecosystem, Waterloo has achieved significant economic impact.Rod McNaughton notes that New Zealand students do not see entrepreneurship as a viable career path at the same rate as their global peers. "This is not due to a lack of talent or ambition but rather structural barriers in the education system."Have a News story to share?Contact [email protected]

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