Talking Business

Interview with the Small Business Minister Bruce Billson. He reveals the Abbott’s government’s plans to revitalise small business. Interview with economist Saul Eslake on housing prices and bubbles Leon and Garry talk about issues including: · The big threat to the US is debt and a US default. United States Treasury Secretary Jack Lew has warned that Congress is "playing with fire". Mr Lew said the United States will run out of its ability to borrow money on October 17. With only $US30 billion ($A32.03 billion) cash in hand to meet obligations that can run to $US60 billion ($A64.05 billion) a day, it will quickly face default. · Failure by the world’s largest borrower to pay its debt -- unprecedented in modern history -- will devastate stock markets from Brazil to Zurich, halt a $5 trillion lending mechanism for investors who rely on Treasuries, blow up borrowing costs for billions of people and companies, ravage the dollar and throw the U.S. and world economies into a recession that probably would become a depression. · Speaker John Boehner declaring that the Republican-controlled House would not raise the US debt ceiling without concessions from the White House. · In Australia there is a lot more focus now on malfeasance with construction giant Leighton Holdings facing a shareholder class action over allegations of bribery and corruption in Iraq. The writ alleges Leighton breached its continuous disclosure obligations under the Corporations Act by failing to reveal allegations of bribery and corruption against senior officers responsible for a project in Iraq. It also alleges the company failed to disclose an investigation of "misbehaviour" involving senior officers, including "misbehaviour the subject of a claim by Leighton against a former employee for $5.6 million". The company denies there is a "proper basis for the alleged claim" and says it will vigorously defend itself. · Leighton Holdings' losses stemming from alleged corrupt activities in its offshore operations could amount to more than $500 million, including a potentially hefty fine, analysts have warned. Brokerage Deutsche Bank said the ''reputational damage'' stemming from the bribery scandal may ''limit the amount of future work awarded to Leighton'' or lead to cancelled contracts, and could result in a 20 per cent, or $46 million, hit to Leighton's offshore revenues. With the company's shares plummeting, Deutsche has warned that Leighton may also have to write off a $400 million debt it believes the company is still owed from an oil pipeline project in Iraq at the centre of some of the bribery allegations. · Revelations that a Reserve Bank of Australia subsidiary used a frontman to liaise with Saddam ­Hussein’s brother-in-law in an illegal effort to supply plastic bank notes to the Iraqi government while it was subject to United Nations sanctions. Two whistle-blowers who became police witnesses in the Reserve Bank-note bribery scandal have also broken their silence about the failure of the Australian Securities and Investments Commission to investigate the directors of two allegedly corrupt RBA ­companies, Note Printing Australia and Securency

Interview with Clive Rabie, the CEO of accounting software company Reckon Interview with RMIT economist Sinclair Davidson Leon and Garry talk about issues including: - How Tony Abbott as Prime Minister will impact industry, especially the Beef Industry - The US government shutdown: lessons from history, and how this could affect Australia.

Interview with Tim Brown who helped start e-commerce site, Goodz.com.au, sourcing quality products directly from China, which has grown into www.360dsc.com, a supply chain solutions business for various third party sales and group buying sites in 11 countries, including Australia, New Zealand, Netherlands, United States, United Kingdom and the United Arab Emirates. The business now employs more than 100 people and helps local Australian and New Zealand consumers get better deals online. Interview with PricewaterhouseCoopers economist Jeremy Thorpe Leon and Garry discuss issues including: · Growth in China's factory sector accelerating to a six-month high in September, a preliminary survey showed, as stronger domestic and foreign demand added to recent signs of a tentative turnaround in the world's second-largest economy. · Eurozone business activity continuing to pick up in September, hitting a 27-month high as the economy climbed out of a record recession. The Composite Purchasing Managers' Index compiled by Markit Economics jumped to 52.1 points for September from 51.5 in August, pushing further beyond the 50-points boom-or-bust line. The rise confirms a recovery for the embattled single currency bloc, which finally exited 18 months of recession in the second quarter this year. The emergence from recession is again being led by Germany, where better days helped propel Chancellor Angela Merkel to a resounding electoral victory on Sunday but she is five seats short so she will have to partner with the Greens or Social Democrats who will push for stimulus spending. · United States consumer confidence edging a bit lower in September, held back by job and income worries. · The big focus on the future of the National Broadband Network with the new Communications Minister Malcolm Turnbull forcing the board to resign. Turnbull was frustrated by cost blowouts and rollout delays, frustrated by their lack of experience and is seeking the installation of Ziggy Switkowski as executive chairman. Under Dr Switkowski three separate reviews and a forensic audit of NBN Co will be undertaken immediately to look at the ownership structure, which could include the private sector being invited to take equity to help fund the rollout. NBN Co will switch from a fibre-to-the-home network to the cheaper fibre-to-the-node and fibre-to-the-basement network, which will require massive changes to contracts and relationships with contractors, Telstra and other networks. It will require a renegotiation of the Telstra/NBN deal to arrange copper access and compensation as well as redesigning the rollout. · A look at the revised NBN business plan showing the company received revenues in the 2012-13 financial year of $17 million -- slightly below earlier forecasts. This compares to rising operating expenses, excluding all network construction costs and payments to Telstra and Optus, of $712m. Operating costs jumped from $500m the previous year and are forecast to hit $1.07bn this year. · But Turnbull has his work cut out, with Australia starting so far behind the rest of the developed world in broadband connection

Interview with Bevan Mailman. The brother of actress Deb Mailman, Bevan is a lawyer working with indigenous business and he talks here about their challenges. Interview with economist Francis Grey Leon and Garry talk about issues including: · World Bank president Jim Yong Kim saying China is likely to achieve its growth target of 7.5 per cent this year despite planned structural reforms to rebalance the world's second-largest economy · President Barack Obama’s economic adviser Larry Summers pulling out of the race to run the Fed. Many had opposed it because Summers had backed many deregulatory decisions as treasury secretary in the 1990s, and in Mr Obama’s administration had resisted more draconian treatment of the banks. Wall Street urges on news that he has pulled out. · The Congressional Budget Office saying the United States will hit its legal borrowing limit and run out of cash in the first two weeks of November, signalling an almighty political battle ahead · Important news for small business with the Abbott Government making serious attempts to address its needs. The ministry Tony Abbott has appointed for the 44th parliament is significantly different from almost all ministries in the past 43 parliaments – it includes a small business minister in the inner cabinet. And that small business minister, Bruce Billson, is a firebrand for the cause. This might mean that the influence of small business on the affairs of the Coalition cabinet will have some parallels to the influence that the unions had on ALP government cabinets. · In the wake of the Coalition's emphatic victory, retailers are very keen to the engage the new government in a serious conversation about penalty rates. The latest consumer sentiment figures suggest wallets may indeed be prised open in coming months but Australia's top retailers led by Myer CEO Bernie Brookes have been quick to draw up their own wish list · But small business is not expecting a big turnaround with an MYOB survey finding that just 23 per cent of respondents expect the domestic economy to improve within 12 months. · The scrutiny of big supermarkets' relationships with suppliers taking another twist as Woolworths Ltd readies to launch a "Woolworths Local" retail brand. The retailer has already created marketing material for a label called "W Local", with scope to use it as a new retail banner across its various outlets. The supermarket giant may also use the branding for frozen, tinned, snack and packaged food. The move echoes a move by Sainsbury's, the UK's third-largest supermarket retailer, to re-brand its smaller outlets with the "Sainsbury's Local" label in 1998. · Westfield Group entering agreements to sell seven shopping centres in the United States for $US1.64 billion ($1.77 billion). · Solomon Lew's Premier Investments Ltd is planning to expand into Europe and is looking to launch its Smiggle stationery chain there. This comes as the group announces a profit after tax of $174.5 million in fiscal 2013, including a one-off accounting reclassification gain of $105.2 million after tax, compared to the prior year's $68.3 million profit.

Interview with Michael Overell, from RecruitLoop, Australian recruitment industry startup which has just opened an office in the United States Interview with economist Stephen Koukoulas on the future direction of interest rates and Australia’s GDP Leon and Garry discuss issues including: · Introducing the iPhone 5s. Faster with a dual-LED flash, the much-vaunted fingerprint scanner on the home button and iBeacon. And then there’s the cheaper 5c · The immediate economic challenge for the Coalition: assisting the transition from growth driven by elevated mining investments to other sectors of the economy, while continuing the path to a surplus over the medium-term.

nterview with Rajiv Shah, communications, data and security solutions director at BAE Systems Detica Australia on risks of the BYOD movement Interview with economist Nicholas Gruen on promises that could have been made in the election campaign, but weren’t. Leon and Garry discuss issues including: · The Organisation for Economic Co-operation and Development reporting that North America, Japan and the United Kingdom are expanding while the euro area as a whole was no longer in recession. Growth in China - Australia's number one trading partner - also appears to have passed a trough. The Chinese economy is likely to grow at a 7.2 per cent annualized rate in the third quarter and 8.1 per cent in the fourth, the report said, accelerating from the 7.0 per cent growth recorded in the second quarter. But it warns recent financial market turbulence points to difficulties in a number of other emerging economies. And it says unemployment will remain high in developed countries · Eurozone manufacturing activity hitting a 26-month high in August, confirming other recent data that shows the bloc coming out of a deep recession · China putting in a mixed performance. On the plus side, China’s economy is strengthening after a two-quarter slowdown, with a manufacturing gauge rising to a 16-month high in August as new orders jumped and overseas demand rebounded. But China has also lowered its figure for economic growth for last year to 7.7 per cent from 7.8 per cent · Rio Tinto expanding its operations in the Pilbarea to capitalise on the growth in China · Mixed signals for the Australian economy with Australian business not expecting the long-awaited economic revival to arrive this year, with muted expectations for sales, investment and employment but there’s a slight pickup in retail sales, the trade deficit for the quarter falling seven per cent to a seasonally adjusted $9.35 billion and building approvals jumping over 10 per cent in July, beating analyst expectations of a more modest rise. The rate of inflation slowed to a crawl in August, leaving the door open for the central bank to stimulate the economy if need be. · The Reserve Bank of Australia keeping the official cash rate steady at its September board meeting. The bank kept the rate at 2.5 per cent, in line with analyst expectations. While some expect further cuts there is also the likelihood that the next movement for rates could be heading north. · Virgin Australia Holdings Ltd and Air New Zealand Ltd getting conditional authorisation from the consumer watchdog for an extension of their trans-Tasman alliance. Virgin Australia Holdings Ltd and Air New Zealand Ltd have conditional authorisation from the consumer watchdog for an extension of their trans-Tasman alliance.

Leon and Garry talk to Phillip Osborne and Geoff Boxer about how the accounting industry has adapted to the Government's financial planning reforms. For information on RMIT's RG 146 Financial Compliance course, which can be done online, visit http://bit.ly/17no3wT or call +61 3 9925 8111. Leon and Garry discuss issues including: · The US Congress being urged to raise the limit of its debt ceiling which it will hit in mid-October · More signs of recovery in the US with home prices in 10 major US cities increasing 11.9 per cent in the year ended in June and consumer confidence rising · China's government trying to reassure companies and its public about the economy's health, saying growth is stabilising after a lengthy decline and should hit the official target of 7.5 per cent for the year. · Tony Abbott abandoning his intention to return the budget to surplus in the first term of a Coalition government, saying instead voters would know before the 2016 election when the economy would be back in the black. · The coalition finding $31.6 billion of savings over the next four years. · The coalition's promise not to touch the goods and services tax (GST) looking set to come under fire within weeks if it is elected at the federal election. Conservative states including New South Wales, Victoria and Queensland will push for almost immediate changes to the design and state distribution of the tax. · Businesses and consumers wanting to pay for their own fibre connection facing costs of more than $4000 up front and $800-a-year rental under the Coalition's "fibre-on-demand" plan for the National Broadband Network. · Labor saying it will secure 1,750km of rail corridor for a high-speed rail network from Brisbane to Melbourne, via Sydney and Canberra, and pledging an initial $52 million for the planning stage of the project if it is re-elected · Corporate insolvencies reaching record highs as the mining boom continues to unravel · Several of Australia's biggest mining companies intensifying cutbacks by axing dividends to investors, in a move that underscores how few in the industry expect global commodities demand to recover any time soon. · Moody’s slashing the credit rating of National Australia Bank's troubled British division, saying it has an "uncertain" future. · BHP Billiton Ltd chief executive officer Andrew Mackenzie seeking to emulate the group's partnership with Rio Tinto Ltd in a copper mine joint venture, with a strategic partner in its $US15 billion Jansen Canadian potash project. · Mark Bouris ramping up his tilt against Australia Post for a share of the online shopping delivery business, signing up a string of retailers to an alternative delivery route - parcel lockers made by his technology company TZ. · In the year to June 30, Billabong posts a net loss of $859.5 million, a 211.8 per cent widening on the $275.6 million loss recorded in fiscal 2012. · Other companies announcing results including Caltex, Boart Longyear, NIB Holdings, Beach Energy, Seven Group, Flight Centre, Noni Group, Wotif, Woolworths, Transfield, Flight Centre and Whitehaven Coal

Interview with retirement specialist Bernard Kelly Interview with RMIT economist Sinclair Davidson Leon Gettler and Garry Barker discuss issue including : · Germany's finance minister Wolfgang Schaeuble saying for the first time that Greece will need another bailout to plug a forthcoming funding gap. His comments come at a sensitive time for his party as Germany will hold elections in five weeks' time. The amount of new money in question is likely to be far smaller than the 240bn euros (£205bn, $320bn) already granted by the International Monetary Fund (IMF), the European Central Bank and the European Union. · Sales of previously owned homes in the US rising to their highest level in close to four years, possibly reflecting a spike in activity as buyers look to close deals before mortgage rates rise further · Australian Bureau of Statistics figures showing that the wealth of a typical Australian household fell by more than $30,000 in the two years following the global financial crisis,

Interview with Allen Cullen from Cullen Capital Interview with economist Saul Eslake Leon and Garry discuss issues including: · Data showing the Eurozone is emerging from its worst recession on record · Japan disappointing markets with its gross domestic product growing by 0.6 per cent in the second-quarter of 2013, less than expected · United States retail sales edging up in July despite a drop in car sales. · The department of Treasury and Finance's Pre-election Economic and Fiscal Outlook confirming Australia's deficit in the current year is expected to be $30.1 billion, in line with Treasurer Chris Bowen's forecasts. · The coalition backing away from establishing before the September 7 election a timeline for returning to the federal budget to surplus, arguing that Treasury data is too volatile to rely on. · Australia Bank July monthly business survey revealing that business confidence has fallen to an eight-month low despite a falling Australian dollar and lower interest rates, while conditions remain at four-year lows · A new report commissioned by the Australia China Business Council revealing that the average Australian household engaged in $14,480 worth of two-way trade with China in 2012 · Australian Bureau of Statistics data showing that business finance commitments rose in June, while personal finance commitments fell · Reserve Bank data showing that But Australians are remaining cautious about taking on new debt despite the Reserve Bank slashing the cash rate to all-time lows, with the value of credit card purchases falling to their March levels. · UGL proceeding with a demerger of its engineering and property businesses as soon as possible, after posting a steep fall in full-year profit. In the year to June 30, UGL's net profit was $36.472 million, a 72.8 per cent decline on the previous year's $135.392 million. · Newcrest Mining Ltd planning to slash capital expenditure after slumping to a $5.78 billion full-year loss, after its shock writedowns blew out by hundreds of millions to to $6.23 billion. · JB Hi-Fi's net profit rising to $116.4 million, an 11.22 per cent increase on the $104.6 million recorded in 2012. · Falling profits for property outfit GPT Group at $257 million, a 6.7 per cent fall from the $275.5 million booked in the previous corresponding period, Stockland which posted a statutory profit of $104.6 million, a 79 per cent decline on the $487 million recorded in the previous year, mining services group Bradken which posted a net profit of $66.9 million, a 33.4 per cent decline on the $100.5 million recorded in 2012 and Mirabela Nickel which posted a US$68.9 million loss for the first half to June, which came in 14 per cent higher than the US$60.612 million loss recorded in the previous corresponding period. · Stronger profits for online real estate advertising group REA where profits rose 26 per cent to $109.7 million in fiscal 2013, compared with $87 million in the previous corresponding period and Domino Pizza which will spend more than $235 million to take over its Japanese-based sister company. · National Broadband Network rollout threatening to erupt into legal action

Interview with Gary Swart from oDesk, the largest online workplace for freelancers Interview with economist Stephen Koukoulas Leon and Garry talk about issues including: · China being stuck in low growth with activity in China's services continuing to expand modestly in July · Signs that the Eurozone might be emerging from the recession with key growth indicators giving a surprisingly strong showing although the IMF says Spain will be stuck with an unemployment rate above 25 per cent for at least five more years · Signs of recovery in the United States with activity in the US economy's crucial services sector growing solidly in July on a jump in business activity and new orders and the US trade deficit shrinking by an unexpectedly large margin in June to $US34.2 billion ($A38.42 billion), down from a revised $US44.1 billion in May · In Australia, retail spending falling to its slowest growth rate since July 2000, the ANZ job advertisement series shows that job advertisements declined 1.1 per cent in July after falling 1.6 per cent in June, new car sales for July were lower than the ­automotive industry expected, and activity in the services sector reached its lowest level since the global financial crisis and inflation is tracking at 2.7 per cent. · The Reserve Bank of Australia cutting the official cash rate to a record low of 2.5 per cent. · Australian Bureau of Statistics data showing that Australian capital city house prices rose 2.4 per cent in the June quarter, official data shows. That followed a rise of 0.8 per cent in the March quarter. In the year to June, the house price index rose 5.1 per cent, · ABS data showing that Australia's trade surplus widened in June to $602 million · The Federal Government announcing a $200 million package to help boost Australia's car industry. · Toyota investing $123 million in its Australian manufacturing operations. The federal and Victorian governments will contribute to the package · The Coalition refusing commit to a final budget bottom line when it releases policy costings because it does not believe the Treasury figures released in last Friday’s economic statement which warned of lower economic growth and higher unemployment this year as it reveals a much deeper budget deficit of $30.1 billion, but promised to stay on track for a surplus in 2016-17. · The Coalition announcing that an Abbott government would cut the company 30 per cent tax rate by 1.5 per cent. · The stoush over Labor's bank-deposit levy heating up, with Treasurer Chris Bowen suggesting big lenders absorb the cost after benefiting from taxpayer guarantees since the global financial crisis. · Tensions between Rupert Murdoch and the Rudd government over the NBN shaping the coverage the government is receiving in the election campaign · Virgin Australia expecting a statutory loss after tax in the range of $95 million to $110 million. · iiNet paying $60 million cash for South Australian budget internet services provider, Adam Internet, less than two weeks after Telstra pulled a bid for the group.

Interview with Tom Tobin from Tobin Brothers Interview with RMIT economist Sinclair Davidson Leon and Garry discuss issues including: The International Monetary Fund releasing €1.72 billion ($A2.48 billion) in aid for Greece after completing a review of the country's performance under the international rescue program. China's central bank injecting 17 billion yuan ($A3.06 billion) into the domestic banking system after a liquidity squeeze rocked financial markets in the world's second-largest economy last month. United States home prices jumping12.2 per cent in May compared with a year ago, the biggest annual gain since March 2006. Higher home prices help the economy by encouraging more sellers to put their homes on the market, boosting supply and sustaining the housing recovery. In Australia, building approvals tumble by almost 7 per cent in June, according to the Australian Bureau of Statistics The Grattan Institute saying that successive federal governments may have squandered more than nine out of every 10 dollars delivered by the terms-of-trade boom over the past decade, deepening the nation’s budget vulnerability. It says that successive Labor and Coalition governments failed to use the windfall from surging commodity prices to keep the budget in surplus. It found that the terms of trade delivered a windfall of $190 billion over the 10 years to 2012-13 but $182 billion of that was spent on tax cuts and increased concessions on superannuation. The mining downturn continues with a Deloitte Access Economics report warning that the mining investment boom is winding down sharply, with the next few months set to be a turning point for the Australian economy, The latest Mining Business Outlook Report from Newport Consulting finding that Australian miners have awoken to the reality that the mining boom is over and are preparing to move on, but Australian policymakers have been slow to create post-mining boom policies to help ease the transition UBS finds that the continued fall of commodity prices and concerns over China's economic growth have installed the mining sector as the greatest bad-debt threats to banks. OZ Minerals Ltd flagging a significant hit to its first-half profit due to falls in copper and gold prices and Moody's cuts Newcrest Mining Ltd's credit rating to Baa3 and declares its outlook as negative, after the gold miner last month announced a shock $6 billion in asset writedowns. In corporate news, Woolworths Ltd records a strong lift in full-year sales, buoyed by the strength of its Australian food and liquor businesses. Coles and Woolworths face a long court battle with the ACCC over their $200 million a year of petrol subsidies, which the regulator believes may be a form of predatory pricing or abuse of market power. The Australian Competition and Consumer Commission says supermarkets offering petrol discounts are likely to have a negative effect on competition in the petrol industry and may breach competition laws. And the Nine Entertainment Co hopes to raise up to $1.2 billion through its initial public offering (IPO), and is nearing a deal with banks.

Interview with Susan Heron, managing director of the Australian branch ADP, an American provider of business outsourcing solutions Interview with economist Nicholas Gruen Leon and Garry discuss issues including: · Japanese Prime Minister Shinzo Abe planning to reboot the Japanese economy following his massive victory in the elections · Chinese Premier Li Keqiang saying that 7 per cent GDP growth in China is the bottom line for tolerance of an economic slowdown · Signs of a pickup in the United States housing market. · The stronger US housing market putting James Hardie way out in front, now saying James it expects more growth in the US than in Australia and will expand its capacity accordingly. · Around half of Australian businesses saying they recorded no revenue growth in the past 12 months · Pressures on business continuing with Australian petrol prices recording their fastest jump in four years · Commonwealth Bank analysis showing that Western Australia remains Australia's best performing economy, while the Australian Capital Territory has powered past the Northern Territory to take second place · PricewaterhouseCoopers warning that failure to overhaul the tax system and rein in government spending will see federal and state budget deficits balloon for a generation to hit a combined $213 billion by 2040. PwC predicts deficits across could swell from $27.4 billion now to $583.1 billion by 2049-50. As a result of deficits each year, combined government debt, as a proportion of GDP, is on trend to grow from 12.1 per cent now, to 32.9 per cent by 2039-40 and to 77.9 per cent of annual GDP by 2049-50. · Superannuation accounts recording the best returns in 16 years last financial year, with equity market strength pushing the median growth fund's result to 15.6 per cent. · Tthe federal government’s razor gang looking for savings to cover $6 billion or more in forecast revenue estimated to have been lost since the May budget, to fulfil its promise of a ­surplus by 2016-17. · The car leasing industry claiming that reforms proposed by the Rudd government to overhaul tax benefits for cars will affect about 550,000 people, rather than the 320,000 figure claimed by Labor. · The Australian Greens all but adopting the Coalition’s policy for paid parental leave, increasing the prospect of a company tax rise for the nation’s most profitable businesses should Tony Abbott win the election. · The mining downturn continuing with Peabody Energy cutting 170 Australian workers from its operations in Queensland and New South Wales as part of a raft of cost-cutting measures to combat difficult market conditions, Oil Search Ltd reporting that production in the three months to June 30 decreased to 1.63 million barrels of oil equivalent, Mirabela Nickel also suffering a decline in production and Incitec Pivot Ltd saying its Phosphate Hill ammonia plant will be offline until mid-next week as the group continues to address a series of performance issues, at an estimated cost $23.5 million after tax. · Nine Entertainment Co chief David Gyngell warning Australia may soon only sustain two profitable, commercial free-to-air television networks

Interview with Kosmas Smyrnios from RMIT with Lucio Dana and Sue Prestney from MGI Interview with economist Stephen Koukoulas Leon and Garry discuss issues including: · The OECD warning that unemployment in the eurozone is set to hit a record 12.3 per cent in 2014 · China slowing to 7.5 per cent growth in the second quarter, putting the economy on track for its weakest year since the late 1990s as the country’s new leaders focus more on deep reforms than short-term stimulus. Weighed down by declining exports and faltering investment, it was the second consecutive quarter of weaker growth for the world’s second-largest economy, confirming that a rebound at the end of last year had been short-lived. · United States industrial production picking up 0.3 per cent in June after flat-lining in May but there are signs that the recovery in the United States might be sputtering. US retail sales slowed in June to a halt except for continued growth in car sales. Commerce department figures show US retail and food services sales rose 0.4 per cent from May, compared with a 0.5 per cent gain the prior month · The Reserve Bank of Australia saying the rebalancing of expectations around United States fiscal policy, combined with concerns over tightening liquidity conditions in China are weighing on the domestic economy. · A global Standard and Poor’s survey revealing that capital expenditure by Australian businesses could fall further than during the financial crisis amid an end to the commodity ''super cycle'', and as global corporate investment struggles to recover. · Australian Bureau of Statistics figures showing that total business finance commitments rose 2.5 per cent in the month to a seasonally adjusted $31.747 billion but personal lending commitments fell 3.1 per cent to a seasonally adjusted $8.087 billion in the month. · ABS figures showing that sales of new motor vehicles in Australia were flat in June · Resources companies and electricity retailers et to benefit if the Rudd government goes ahead with plans to shift to a floating carbon price sooner than expected. Under the changes announced by Treasurer Chris Bowen, the hundreds of companies now paying a fixed $24.15 for every tonne of carbon pollution will pay a floating price from July 2014, estimated at between $6 and $10 a tonne. Compensation for industry will be pared back and programs funded by the carbon tax could be cut to help the government find the $4 billion it will cost to shift the fixed carbon price to a floating price a year earlier than scheduled. Prime Minister Kevin Rudd is facing the likelihood of an uphill battle in his effort to cut the carbon price next year, with both the Coalition and the Greens vowing to oppose the plan, so he will take it to the voters. · The rollout of the National Broadband Network (NBN) facing fresh hurdles amid reports that subcontractors in Tasmania and parts of Victoria are at odds with the NBN's main construction partners over pay.

Interview with John Calabro (director, Made in Gippsland) and Marcus Westbury (director, Renew Newcastle) - How are new industries helping to revitalise regional areas? Interview with RMIT economist Sinclair Davidson regarding Chris Bowen's Treasury history, Wayne Swan's 'legacy' and other economic issues. Leon and Garry discuss issues including: · Greece receiving another financial lifeline to prevent bankruptcy, with the eurozone and the International Monetary Fund agreeing to a $9.5 billion deal that spares the country from defaulting on debt in August. Greece needs some of that money to redeem bonds due to mature next month. European finance ministers have provided $4 billion, but the deal comes with strict bailout terms, including cutting thousands of public sector jobs, raising taxes and selling state assets. · International Monetary Fund lowering slightly its global economic growth forecasts due to weaker domestic demand and slower growth in emerging market economies. · The head of the European Central Bank Mario Draghi warning that the region's persistent recession is weakening its banking system and is the most pressing risk it currently faces. The economy in the 17-member euro area has shrunk for six straight quarters and unemployment has risen to record levels · China's inflation rate rising by more than expected in June, increasing to 2.7 per cent from 2.1 per cent the month before. Food price inflation was 4.9 per cent in June, compared with 3.2 per cent in May, with rising pork prices partly to blame. · The US added 195,000 jobs in June, beating expectations but leaving the unemployment rate unchanged at 7.6 per cent. · In Australia, a National Australia Bank survey shows business conditions slumping to their lowest level in more than four years in June, with retail activity collapsing to a 16-year low while the Australian Chamber of Commerce and Industry's (ACCI) latest survey of investor confidence showing business conditions, sales and profitability declined further in the June quarter. · The ANZ Job Ads survey showing that job advertisements have declined for a fourth consecutive month, with Western Australia the hardest hit as the mining boom slows down. · Telstra outsourcing 170 jobs to India from one of its fastest-growing divisions which provides cloud-based IT services to businesses. · The downturn in mining continuing with Chinese coal giant Yanzhou Coal Mining Coal proposing the privatisation of its underperforming ASX-listed subsidiary Yancoal Australia Ltd, little over a year since it was floated, Minotaur Resources Ltd and Breakaway Resources Ltd looking set to merge as the sharp decline in equity raising activity continues to cripple junior resources stocks and Rio Tinto West Australian iron ore production hit in the June quarter by unseasonal rain and a conveyer outage, raising questions whether the miner will be able to meet its full-year guidance. The issues led to weaker-than-expected shipments for Rio, but the weather issues have also hampered BHP Billiton Ltd and Fortescue Metals Group. · The Australian dollar poised to fall below 90 US cents for the first time in almost three years as healthy United States jobs data boosts the greenback. The dollar’s decline is raising petrol prices around the country · A crackdown by the Australian Securities and Investments Commission on companies briefing analysts

Interview with Nick Simcock, Managing Director of Futurestep’s New Zealand business and member of Futurestep’s Global RPO Leadership team. Interview with economist Stephen Koukoulas Leon and Garry discuss issues including: · Official figures showing unemployment across the 17 European Union countries that use the euro reaches another record high in May. Eurostat, the EU's statistics office, says that eurozone unemployment rose 0.1 percentage point in May to 12.1 per cent. · Data showing China’s manufacturing sector weakened sharply in June, an indication that the country’s growth slowdown has deepened as the government has refrained from stimulating the sluggish economy. The official purchasing managers’ index fell to 50.1 last month from 50.8 in May. · The United States Federal Reserve announcing a fresh plan to tighten capital requirements for the country's largest banks to help ensure they are protected against unexpected losses and economic downturns. · More signs that the mining downturn is continuing with Brazilian resources giant Vale selling a Queensland coal mine, following retrenchments and asset writedowns across its Australian operations, global mining giant Glencore Xstrata cutting 450 jobs at two central Queensland coal mines, against a backdrop of lower coal prices and a strong Australian dollar, US giant Peabody Energy announcing 450 job losses at its NSW and Queensland coal mines, mining services company Downer EDI shedding 185 positions at its Goonyella Riverside coal mine in central Queensland, Xstrata Coal, a subsidiary of Glencore Xstrata, is shedding 46 jobs from its Ravensworth underground coal mine in the NSW Hunter Valley and the world's largest gold mining company Barrick is slashing 65 jobs in Western Australia · The Australian dollar this week falling close to 91 US cents after a member of the US Federal Reserve board of governors suggested American stimulus measures could be eased from September. · The Reserve Bank of Australia holding the official cash rate at a record low 2.75 per cent for the second consecutive month, in line with analyst expectations, but has flagged the inflation outlook could provide scope for further easing. · The new Treasurer Chris Bowen recasting Labor's economic message, warning of an uncertain outlook that will require "careful management" with China’s transition and falling iron ore and gold prices. · The manufacturing sector nudging growth in June, according to the latest monthly survey of the sector by the Australian Industry Group. The key measure from the survey, the Australian Performance of Manufacturing Index (PMI), rose to 49.6, up 5.8 points from May. That result put the PMI just under the 50-mark that stands between contraction and expansion. · The new look federal Labor government following up its commitment to rebuild bridges with the business community and holding talks with a group representing the nation's top 100 bosses. · PricewaterhouseCoopers warning that already cash-strapped newspapers risk losing another third of their ad revenue during the next five years unless they can win more value out of their consumers. · Brambles spinning off its Recall document-management business into a separately-listed company after failing to find a buyer last year.