Talking Business

Leon and Garry discuss issues including: Asia becoming the wealthiest region in the world, according to a new study by Credit Suisse. The International Monetary Fund warning the world economy risked plunging into recession unless European and American leaders acted swiftly to address their countries' debt woes, cutting its forecast for Chinese and global growth. The World Bank also cut its forecasts for China. The OECD finds that unemployment in developed countries now sits at 7.9 per cent. The eurozone unlocks its €500 billion ($A646 billion) European Stability Mechanism (ESM), amid worries over Greece and as Spain agonises over whether to call for a full bailout. German Chancellor Angela Merkel tells Greece that the "tough path" of painful spending cuts will pay off, as tens of thousands protested in a show of anger against her visit to the eurozone's most indebted nation. US unemployment falls sharply. Australia overtaking beleaguered Spain in the International Monetary Fund's latest World Economic Outlook to become the world’s 12th largest economy. ANZ monthly jobs survey showing that the number of job advertisements on the internet and in newspapers fell for the sixth straight month in September Negativity about the Australian economy pushing the Australian dollar to a three-month low Foreign Minister Bob Carr outlining plans that would see closer diplomatic engagement between China and Australia. NAB monthly business survey finding that business conditions fell in September. A National Institute of Economic and Industry Research report showing that improvements in technology, the strong dollar and increasing global competition have sent 80,000 service sector jobs overseas in the past four years. In a sign that more rate cuts are coming, the Reserve Bank is pinning its hope on an improvement in the jobs market on interest rate cuts boosting the construction sector. Research by energy efficiency consultant Big Switch Projects revealing that Some electricity companies appear to be taking advantage of the introduction of the carbon price to hike consumption charges to large commercial and industrial companies Banks lower their interest rates in response to the RBA cut Reserve Bank of Australia governor Glenn Stevens emerging as a dark horse for the top job at the Bank of England Stevens admitting it would have been "prudent" for the Australian Federal Police to have been told of corruption concerns within one of the bank's currency printing subsidiaries in 2007. Alan Jones’ radio show entirely free of advertising in response to the outcry over his comments about Julia Gillard's father. Nine working with its lenders in an increasingly desperate bid to avoid receivership. Flight Centre facing massive fines and injunctions if it loses a closely watched price-fixing case that started this week in Brisbane Federal Court and set to run for three weeks. The Queensland government generating a $400 million profit after selling more than half its stake in railroad group QR National at a premium.

Leon and Garry discuss issues including: An audit determining that Spain's banks will need an injection of 59.3bn euros ($76.3bn; £47.3bn) to survive a serious downturn. Meanwhile, European powers say they are "ready to act" if Spain seeks a sovereign bailout as financial markets banked on Madrid crying out for help within days. But Spanish Prime Minister Mariano Rajoy squashes rumours that Spain is preparing to request a financial bailout this weekend. In France, the government unveils shock fiscal action to plug a €37 billion ($A46 billion) hole in public finances with the toughest package of tax rises, including 75 per cent rate for the super-rich, along with spending cuts the country has known in an economic downturn. Manufacturing softens in China but manufacturing picks up in the US and there are signs of a rebound in the US housing market. The Reserve Bank of Australia (RBA) cutting the official cash rate for the first time in four months to 3.25 per cent, signalling the end of the mining boom Labor government economist and advisor Ross Garnaut warning that Government spending and wages growth will have to be subdued through the rest of the decade to account for a prolonged Chinese-induced downturn in Australia The latest Ipsos-Mackay report showing consumers feel the same or worse than they did 12 months ago - and fear what will happen when the mining boom ends. The latest ME Bank Household Financial Comfort report showing that More than half of households are cash-strapped at the end of the typical month despite the higher pace of savings in Australia in recent years. And while there was growth in the share of households saying their financial situation had improved slightly in 2012, those who could not make ends meet were spending more cash over their income levels The TD Securities-Melbourne Institute Monthly Inflation Gauge rising 0.2 per cent in September, after a rise of 0.6 per cent in August. The gauge said inflation grew 2.4 per cent in the year to September. House prices in Australia's capital cities leaping 1.4 per cent in September, suggesting that recent rate cuts by the central bank are buoying the market. The finding in the latest RP Rismark Home Values Index was the largest monthly increase since March 2010. One of the receivers of Gunns Ltd says it is likely that shareholders of the collapsed Tasmanian woodchipper will lose all of their money. A bid has been submitted for Gunns' pine sawmills at Bell Bay and Tarpeena has been made by a wealthy Chinese businessman, Hua Wang but Former directors and executives of failed timber company Gunns could become the targets of a class action from shareholders Dunn and Bradstreet research showing that Australian businesses are indicating that discounting is the required antidote for sluggish spending heading into Christmas, with expectations for selling prices now close to the lowest level in more than two decades.

Leon and Garry discuss issues including: European Central Bank President Mario Draghi expecting the Eurozone to pick up next year while the International Monetary Fund is set to lower its growth estimates for the global economy while economists warn that Germany is headed for a recession. The World Trade Organisation has also slashed its 2012 global trade outlook, citing the eurozone debt crisis and weak growth in the US and China as key factors behind the downgrade. Paul Volcker, the former US Federal Reserve chairman credited with taming the inflationary threat of the 1970s, warning that further quantitative easing will fail to repair economies in Europe and the US. The Conference Board in the US saying US consumer confidence jumped this month to the highest level since February, bolstered by a brighter hiring outlook. A Bank of China report claiming the local economy has bottomed out over the second quarter of 2012 and will return to eight per cent across the year. Former prime minister Malcolm Fraser saying that US military bases on Australian soil pose a danger for Australia's relationship with China. This comes at a time when Chinese sovereign wealth fund Chinese Investment Corporation is negotiating to secure a stake in Tasmanian dairy operation Van Diemen's Land Company. The Reserve Bank warning that Australia could be exposed to "vulnerabilities" in Asia sparked by fallout from Europe's unresolved debt crisis Treasurer Wayne Swan saying the slowdown in the resources sector would significantly hit government revenues, making the government's efforts to return the budget to surplus more difficult. Money market pricing saying the Reserve Bank of Australia will probably decide to cut interest next week. Timber company Gunns Ltd entering voluntary administration, blaming the refusal of its banks to allow it to keep the proceeds of asset sales to keep the company afloat. Harvey Norman scoring the poorest customer service rating of Australia's major retailers, in a new survey by consumer advocate group Choice. Chinese telecommunications giant Huawei Technologies being urged by company board member and former Victorian premier John Brumby to consider a float on the ASX among other measures. A trio of local councils winning their multi-million dollar claim against the Australian arm of Lehman Brothers, with the Australian Federal Court today ruling the investment bank had breached its fiduciary duties and acted negligently. Solly Lew’s Premier Investments posting a net profit of $68.248 million in the full year to July 30, a 68.4 per cent rise on the previous corresponding period. The head of Australia's biggest electricity retailer Grant King receiving a pay rise, taking his remuneration package nine per cent higher to above $8 million while Suncorp boss Patrick Snowball receives a 50 per cent pay rise in the 2011/12 financial year to $8.27 million. BHP Billiton Ltd announcing it will axe its Port Hedland project, with the impact to be felt largely by project contractor NRW Holdings Ltd.

Interview with economist Steven Koukoulas Leon and Garry talk about issues including: More pressure on Greece with a senior member of Chancellor Angela Merkel's governing coalition saying that Germany's parliament is unlikely to approve a third financial rescue package for Greece. At the same time, Athens is close to sealing a deal with its international lenders on fresh austerity measures in exchange for billions of euros in aid funds The Federal Reserve unveiling QE3 and possibly opening the door for QE4, as well but it doesn’t seem to be helping the American economy with an index covering New York manufacturing activity unexpectedly falling further into contraction this month. Signs continuing to point to the Chinese government's reluctance to release further stimulus or ease credit conditions, despite the country's slowing economy, offering little hope for Australian export markets while a downbeat reading of the Chinese economy from one of Royal Dutch Shell's top executives suggests the country's economy could be worse than indicated by official figures and spell trouble for Australia's resources sector and Rio Tinto chief executive Tom Albanese dampening hopes of any fast rebound in the Chinese economy, following meetings with pessimistic Chinese business and economic policy leaders Resources minister Martin Ferguson revising down Australia's resource and energy exports forecast by $19 billion while the Bureau of Resources and Energy Economics says export earnings for the year to June 30, 2013, are expected to fall 2 per cent on-year to $189 billion. Ferguson blames companies and unions for failing to manage cost inflation, saying the two sides mismanaged the resources boom and that wage claims must be revised downward at the same pace as commodity prices decline. ABS figures showing that imports of goods fell $373 million, or two per cent, to $21.244 billion, seasonally-adjusted, in August. ABS data also shows that sales of new motor vehicles in Australia rose in the month of August, beating analyst expectations Australia's central bank saying it has room to cut interest rates further to support the national economy in the face of falling commodity prices, the high Australian dollar and weaker global growth. Ratings agency Moody’s saying that Australia's big four banks – ANZ, Commonwealth Bank, National Australia Bank and Westpac – are well placed to withstand any unexpected economic downturn that could result in significant losses on loans. But the country's regional banks would likely suffer from higher credit losses if Australia's economy was to experience such a downturn. The federal government's “two strikes” rule governing executive remuneration prompting nearly a quarter of Australia's top 100 companies to overhaul their executive pay plans, as businesses scramble to satisfy investors and avoid having their boards dismissed. The Australian dollar being propped up with up to 23 central banks from around the globe including Australian dollar assets in their foreign exchange reserves. Analysts downgrading forecasts for Myer after it books a 12.7 per cent lower profit.

Interview with Deloitte Digital leader Frank Farrall Interview with economist Ian Harper Leon and Garry talk about issues including: • The fallout in Europe continuing with the European Central Bank standing ready to buy the bonds of troubled European states, putting the ball back in the court of the governments. The ECB will only intervene if states request help from the eurozone rescue funds, agreeing to fiscal targets and to structural reforms. The eurozone has crossed a vital hurdle in its drive to adopt crisis tools, helped by a preliminary German court ruling, but anger over austerity hit the streets in Spain. Soros Fund Management chairman George Soros has warned that Europe’s recession is likely to intensify and spread to Germany within six months • The US trade deficit growing slightly in July as exports fell at a slightly faster pace than imports.  The Commerce Department says the trade deficit widened to $US42 billion ($A40.80 billion), 0.2 per cent higher than June's imbalance of $US41.9 billion. US employers added 96,000 jobs last month, a weak figure that could slow the momentum President Barack Obama hoped to gain from his speech to the Democratic National Convention. • Growing friction, and outright resistance, against foreign takeover bids made by state-owned Chinese companies prompting Chinese government policy advisors to warn that the country should reconsider its approach to overseas acquisitions. A greater-than-expected fall in Chinese imports has seen China's trade surplus widen in August to $26.7 billion. Imports fell 2.6 per cent to $US151.3 billion over the month of August, compared to a 4.7 per cent rise in July. Senior Chinese government policy advisers have said Beijing is unlikely to have the appetite for the new round of massive spending to boost its slowing economy, casting a shadow over Australian miners' hopes of a near-term rebound in the giant economy. Doubts are also growing within China as to whether banks are willing to finance a planned $US156 billion ($150 billion) infrastructure spending spree ranging from railways to roads as many local governments in China are still nursing a three-year-old debt hangover. • Disappointing Chinese data increasing the prospect of a federal budget shortfall. • Pacific Rim leaders have pledged to fend off deepening damage from the European crisis and revive flagging growth in the region by supporting open trade, reforming their economies and strengthening public finances. APEC leaders have also agreed to cut tariffs on solar panels, wind turbine blades, solar hot water systems and other ''environmental goods'' in what has been hailed as a shift against protectionist sentiment after global financial turmoil. • Nearly 1000 jobs are cut at BHP Billiton and Xstrata and analysts are predicting that the 3,500 mining jobs lost in the past six months will continue as the outlook for the coking coal sector darkens and miners continue to struggle with rising costs and weakened demand and prices • Australia’s biggest miners threatening to shelve new projects in Queensland following the state government's surprise $1.6 billion increase in coalmining royalties

Social media. Every business knows it needs to engage. But what's the cost-benefit equation? RMIT University brought five experts together to plot a path through the maze. The panel: Jeremy Yuille, School of Media and Communication Amanda Gome, CEO of Private Media Professor Mohini Singh, School of Business IT and Logistics Luke McCormack, Senior Analyst with Deloitte Digital Dr Tim Butcher, School of Management

Leon and Garry talk about issues including: The Eurozone facing a crucial two weeks with the Spanish government injecting another 6 billion euro ($7.5 billion) into its bank rescue fund to cope with growing problems, Moody's lowering the European Union's long-term issuer rating outlook from stable to negative, activity in euro-zone factories falling further in August, US Federal Reserve chairman Ben Bernanke flagging more stimulus, while US and Chinese manufacturing continue to decline and a former Chinese central bank adviser warning the rapid internationalisation of the country's currency could destabilise its financial system. The RBA keeps interest rates on hold Australia’s economy continuing to grow solidly in the three months to the end of June despite signs that the mining boom is beginning to abate. Australian GDP grew by 0.6 per cent in the June quarter, following a blockbuster expansion of a revised 1.4 per cent in the three months to March Australia's current account deficit narrowing further than expected in the June quarter Australia's services sector contracting for the seventh straight month in August as cautious consumers and the high exchange rate continue to hurt the industry. Company gross profits falling 0.7 per cent in the June quarter, missing expectations of a rise. Retail sales in Australia falling 0.8 per cent against expectations in July The number of job advertisements on the internet and in newspaper fell for the fifth straight month in August, according to the ANZ Banking Group’s job advertisements survey The TD Securities- Melbourne Institute survey posting its largest monthly increase in inflation in almost 18 months but very little is from the carbon tax The Australian Industry Group, PwC Australian performance of manufacturing index showing that manufacturing production and employment improved in the month although both remain in the red Home prices in capital cities were unchanged in August, halting the short recovery brought on back-to-back rate cuts earlier this year, according to the RP Data-Rismark hedonic home value index Hundreds of jobs now at risk after ready-to-eat food manufacturer Australian Convenience Foods Group and clothing retailer Ojay went into administration Hundreds more Darrell Lea workers to lose their jobs after a deal was struck to sell the troubled chocolate maker Rio Tinto to trim jobs at its Argyle mine, famed for its rare pink diamonds, as it seeks to cut costs in a division the mining giant plans to exit BHP Billiton chief executive Marius Kloppers saying that he expects iron ore prices to rebound by the end of 2012, saying he has “categorical” confidence in the price of iron ore. Iron prices though continue to fall. At the same time, he presents a bleak outlook for an expanded Olympic Dam mine ever operating in South Australia The peak business group backing calls by the conservative states to distribute GST revenue according to population share as part of a sweeping overhaul of federal-state finances.

Interview with RMIT economist Jonathan Boymal on the impact of the carbon tax and future of the mining industry Leon and Garry talk about issues including: Total net profit for China's major industrial companies declined during the month of July Spain falling deeper into a recession and moving closer to a full bailout while German Chancellor Angela Merkel offers a ray of hope to Greece Friday, stressing that she wanted the debt-burdened country to stay in the Eurozone and pledging German help after crisis talks. At the same time, German business optimism is falling more than expected US consumer confidence taking an unexpected fall in August, to its lowest level since November 2011. The US economy grew slightly more than first estimated in the second quarter but remained sub-par. Treasurer Wayne Swan has issued a staunch warning against people seeking to declare the resources investment boom dead, saying such commentary threatened to damage consumer and business confidence. NAB chief Cameron Clyne and RBA chief Glenn Stevens also hosing down talk of the mining boom ending. Gina Rinehart's Roy Hill iron ore mine and Xstrata's Wandoan coal project may be the next victims of a fading resources boom, after BHP Billiton scrapped its $20 billion Olympic Dam expansion. The economics of Roy Hill, in Western Australia, were said to rest on a $US100-a-tonne average iron ore price over the next decade, but analysts says those assumptions were looking shaky Reserve Bank of Australia (RBA) governor Glenn Stevens says a decline in the nation's terms of trade has been assumed for some time by both the central bank and the Treasury Rio Tinto expects BHP Billiton's decision to scrap a $30 billion expansion of the Olympic Dam copper and uranium mine to contribute to a coming copper supple shortfall The mining boom - or at least investment in it - will peak in 2014, but the non-resources sector will then drive growth, a BIS Shrapnel report has found Falling commodity prices jangling the nerves of investors, but BHP Billiton's boss Marius Kloppers says the company is banking on more falls. Australia's largest undeveloped uranium deposit, the Yeelirrie Project, finally could be mined following a planned BHP Billiton sale to big global uranium company Cameco Corporation. Sundance accepting Chinese suitor Hanlong Mining Investment's reduced takeover bid. Nathan Tinkler may sell down his major shareholding in Whitehaven Coal after dropping his $5.2 billion Whitehaven takeover bid amid rumours he is in financial strife. New home sales in Australia have fallen back into weak territory, reversing much of the strength gained at the end of the 2011/2012 financial year. Construction work has also fallen back. The federal government has scrapped its planned floor on the carbon price under a deal linking Australia to the European Union emissions trading scheme (ETS), the world's biggest carbon market Profit figures from companies including Atlas Iron, Salmat, Caltex Australia, Billabong, Toll and Woolworths.

Interview with economist Saul EslakeF on the Australian dollar Leon and Garry discuss issues including: Greece's creditors saying it must cut €14 billion ($A16.56 billion) from its budget in the next two years, €2.5 billion more than they originally demanded while Finance Minister Yannis Stournaras declares Greece intends to stay in the Eurozone The European Central Bank (ECB) considering buying the bonds of crisis-wracked eurozone countries to ensure borrowing costs do not rise beyond a pre-determined level Standard and Poor’s saying that the odds the United States will slip back into recession next year have risen Deutsche Bank warning against the growing risk of recession in Australia in 2013, as prices for commodities such as iron ore and coal spiral lower Australia's major miners face growing pressure as the price for iron ore looks set to fall due to Chinese steel mills lowering their output while BHP announces a profit fall and shelves the Olympic Dam project. Fitch Ratings figures showing that tourism hot spots have the highest concentration of borrowers falling behind on their mortgage repayments The Reserve Bank of Australia (RBA) saying the global economy remains fragile, with uncertainty emanating from the eurozone affecting financial markets and potentially hurting consumer and business spending Economists saying mortgage holders hoping for further interest rate cuts are likely to be disappointed if the minutes to the Reserve Bank of Australia's (RBA) latest monthly board meeting are anything to go by. Interest-only housing loans, and loans for 100 per cent of the property's valuation, could be scrapped in future after the Reserve Bank's annual conference heard that they inflate property booms and busts A BIS Shrapnel report saying that not enough money is being spent on maintaining Australia's roads, railways and utilities Former Treasury secretary Ken Henry saying that state and federal governments need to extract more tax revenue if they are to fund ballooning infrastructure needs in decades to come The Coalition planning to save billions on its national broadband scheme by linking as few as 25 per cent of homes directly to the high speed fibre network and connecting most people through neighbourhood boxes, existing cable networks and satellites Global car giant Ford pressuring parts maker Nexteer to turn its back on $63 million in government funding and scrap plans for a new factory in Melbourne Lazard Asset Management, which emerged earlier this week with a five per cent-plus holding in Fairfax Media Ltd, reportedly preparing to support calls for a break-up of the company For the first time in history the value of Australian banks now rising to be worth more than the Eurozone A consortium of banks facing the prospect of paying up to $3 billion to the liquidators of the Bell Group after their appeal against a 2008 ruling failed in a WA court Australia Institute research questioning bank claims that higher funding costs are preventing them from passing on the full value of official interest rate cuts

Interview with Patrick Llewellyn, CEO of 99designs Interview with RMIT economist Sinclair Davidson on corporate tax Leon and Garry discuss issues including: Eurostat figures showing that Europe is edging closer to recession, dragged down by the crippling debt problems of the 17-country euro bloc The Greek economy contracting 6.5 per cent in the first quarter A senior German MP declaring that Germany will block any new aid to ailing Greece if Athens does not fully comply with the terms of previous rescue packages, even if other countries support unlocking funds Good signs coming out of the US with US retail sales rising by a better-than-expected 0.8 per cent in July, breaking a three month losing streak and offering hope of faster growth in the third quarter Chinese business leaders urging Beijing to rethink its government-led overseas investment strategy in light of a brewing political backlash against it in countries including the US and Australia A global survey of executives from multinational corporations showing a growing reluctance to invest in Australia due to the cumulative impact of the carbon tax, spiking labour costs, the rising Australian dollar and political uncertainty An NAB survey showing confidence surging in July, snapping a two-month streak of heavy falls But cash rate cuts and government pay-outs fails to lift the confidence of Australian consumers, according to another monthly survey. The Westpac/Melbourne Institute Index of Consumer Sentiment fell 2.5 per cent to 96.6 in August, from 99.1 in July Australian Bureau of Statistics data showing the Australian wage price index lifted 0.9 per cent, in trend terms, over the three months to June. This brought the index's full-year increase to June 30 to 3.7 per cent for all jobs Sales of new motor vehicles in Australia falling in the month of July, according to data from the Australian Bureau of Statistics Business lending lifting in June, while personal finance also gained, according to the ABS. The Gillard government's business tax review – which has recommended that billions of dollars worth of company tax breaks be targeted to help fund an across-the-board company tax cut – looks dead in the water. Industry groups say they’ll pull support. Moody’s warning it could yet strip Victoria of its prized triple-A credit rating. The man who audits the Australian Taxation Office (ATO) saying he wants the public and businesses to tell him the issues he should focus on over the coming year The federal government securing a big win over big tobacco with the High Court ruling Labor's world-first plain packaging laws are constitutionally valid The government planning to scrap the $15 a tonne floor price on carbon emissions trading from 2015 and replacing it with a link to the European ETS, where permits are sell for less than $10 The ACCC declaring that large companies failing to remove false and misleading comments from their brands' Facebook pages within 24 hours face potential court action Alesco Corporation Ltd confirming it is talking with suitor DuluxGroup Ltd about a higher takeover offer

Interview with Danny Gorog, founder and chief executive of Melbourne-based Outware, one of the largest and most successful mobile app developers in Australia. Interview with economist Nicholas Gruen on introducing competition for Australian banks Leon and Garry discuss issues including: Italy's prime minister Mario Monti warning that the eurozone's sprawling debt crisis has created resentment amid the bloc's nations, which could ultimately trigger a break-up of the wider European Union, senior Spanish officials holding out the possibility that the government might need to ask Europe for a financial bailout, some of the world's largest companies pulling cash out of European banks and drawing up contingency plans for the break up of the Euro, the European Central Bank saving Greece from bankruptcy, Standard and Poor's cutting Greece's already junk-level debt rating outlook to negative, saying the worsening economy and political challenges could soon force another downgrade and growth in England at zero per cent. The Reserve Bank of Australia holding interest rates steady at 3.5 per cent as expected. The Australian Chamber of Commerce and Industry's (ACCI) expectations survey showing that interest rate cuts in recent months have failed to lift sentiment in the business sector, with a new survey showing conditions went backwards in the second quarter. The Australian dollar trading at a five month high, at over $1.05, with its value has been bolstered by the world’s tech giants. Consumer prices rising only slightly in July, despite the start of the carbon tax at the beginning of the month. The TD Securities-Melbourne Institute inflation gauge rising 0.2 per cent in July, after a 0.2 per cent fall in June and a flat result in May. Construction activity falling for a 26th consecutive month because of poor demand for work and subdued workloads. The demand for home loans growing in June, but missing analyst expectations, according to the Australian Bureau of Statistics. ABS data showed the number of home loans granted in June rose a seasonally adjusted 1.3 per cent. The number of job advertisements on the internet and in newspapers in Australia falling again in July, the fourth consecutive monthly decline, according to the ANZ job advertisements survey. Dun and Bradstreet finding that business confidence has posted a turnaround, with expectations reaching levels not seen for 10 years. Prime Minister Julia Gillard taking on the mostly coalition-led states to draw a line between the impact of the federal Labor's carbon tax and rising household power bills. A leading economist saying the Gillard government is able to maintain its budget surplus only because of an accounting loophole created by a previous Coalition government. Harvey Norman Ltd warning that its full-year profit before tax will tumble, after posting a fall in full year sales. For the 12 months to June 30, the retailer now expects to post a full year profit before tax and minority interests of $227.6 million, 39.1 per cent weaker than the previous corresponding period. Transurban posting a net profit of $54.905 million, down 51.2 per cent.

Interview with Craig Scroggie, CEO of Next DC, Australia’s largest data base company Interview with RMIT economist Jonathan Boymal Leon and Garry discuss issues including The leaders of Germany and France adding their weight to the battle to preserve the European single currency, issuing a joint statement promising to do everything they can to stop the 17-country bloc from breaking up. Eurostat, the European Union’s statistics office, revealing that the number of people unemployed across the 17 countries using the Euro has hit a record high in June. US growth slows to a trickle, just 1.5 per cent in the second quarter as consumer spending slows down. French bank Natixis warning that wage increases are threatening China’s competitiveness and that labour costs there will match those of the United States within four years. The Australian dollar moving to a four month high, boosted by Switzerland’s central bank foreign exchange reserves A global survey highlighting competitiveness problems for businesses in Australia has ranked this country twelfth among 51 surveyed nations Automotive sector players expecting industry giant Ford to cease production in Australia by 2016, with suppliers already factoring such a move into their business plans A majority of Coalition and Labor voters supporting Prime Minister Julia Gillard’s stance against raising the GST or broadening thre base to include health, education or food. An Age/Nielsen poll finding that most Australians say the carbon price’s introduction has made no difference to them. In a worrying sign of the slowdown in the mining sector, BHP Billiton chief executive Marius Kloppers has said he sees little reason to expect a “near-term” improvement in operating conditions due to a faster-than-forecast slowdown in China and growing European instability. This casts further doubt on the miner’s spending plans oln major projects. The proposed $30 billion expansion of BHP’s Olympic Dam mine is expected to be the first victim of the changing economic outlook. Miner Ivanhoe Australia’s tumultuous year continuing as it announces plans to slash exploration spending by half. The Rio Tinto-controlled company will reduce exploration expenditure to about $15 million a year from nearly double that last year. Rare earths miner Lynas Corporation warning of slowing demand from Asian economies, largely due to subdued macroeconomic conditions in China and falling rare earths prices. A report from Newport Consulting showing that the growing uncertainty surrounding numerous major planned resources projects is adding up to huge potential losses in jobs, investment and growth, with one survey highlighting uncertainty that could jeopardise nearly $200 million worth of projects. This follows on from warnings that the mining boom is set to end in two years’ time.’ On a tour of China, NSW Premier Barry O’Farrell saying that Chinese state-owned companies would be able to bid on asset sales that will be outlinined in an infrastructure blueprint, due to be released in September. At the same time, China’s ambassador to Australia calls for a deepening of the relationship between China and Australia, saying the two countries to include finance, infrastructure and agriculture.

Interview with Nick Waterworth, executive chairman and co-founder of recruitment company, the Ambition Group Interview with RMIT economist Sinclair Davidson. Leon and Garry discuss issues including: Madrid raising 2.98 billion euros (HK$28.09 billion) from the latest bond sale with financial pressure on Spain increasing to the level where it will need a bailout, the IMF backing Greece while ratings agency Moody’s lowers its assessment of the German economy, Britain continuing to be in the grip of the longest recession since the war and the World Trade Organization's Dispute Settlement Body setting up a panel to scrutinize China's measures to hold down its rare earth exports. News Corporation chief Rupert Murdoch stepping down as a director from a string of boards overseeing The Sun, The Times and Sunday Times newspapers in Britain, leading to fevered speculation that Mr Murdoch could be positioning to sell his newspaper group. REA Group Ltd signing a marketing alliance deal with News Corporation Ltd, which will see the media group's suite of newspapers and the realestate.com.au website share some content while Australian entrepreneur Dick Smith blasts the head of News Limited, accusing the organisation of biased and intimidating reporting. Opposition leader Tony Abbott using a scheduled speech in Beijing to commit a Coalition government to a tougher policy on Chinese state-owned companies seeking to take control of existing businesses in Australia. Deloitte Access Economics warning that the mining boom will ened in two years, BIS Shrapnel warning that residential construction and non-mining investment will overtake the resources sector within five years, forcing thousands of mining employees out into the cold, a new business survey by the Victorian Employers Chamber of Commerce and the Commonwealth Bank showing that conditions have slid to their worst levels since 2009 but RBA governor Glenn Stevens declaring that Australia is still the lucky country. Macquarie Group posting flat growth in assets under management over the first quarter to $323 billion. Coles workers voting to endorse a new enterprise bargaining agreement, paving a way for an end to their dispute but unions are taking legal action over plans to cut hundreds of jobs at Australia's largest rail freight company, QR National while construction workers walk off the job at Lend Lease building sites around the country as part of a pay dispute. National Australia Bank confirming it will raise interest rates on short-term loans to large- and medium-sized businesses by the end of the month. Producer prices rising in the June quarter, beating expectations, according to data from the Australian Bureau of Statistics. CommSec research showing that Western Australia remains by far the nation's strongest state on most economic valuations, Ten Network Holdings announcing the sale of its EYE Corp outdoor advertising business to Champ Private Equity for up to $145 million US private equity firm TPG considering a bid for debt-laden Australian media company Nine Entertainment at a time when the Nine Network is facing the prospect of steep losses from broadcasting the London Olympics because of weak advertising.

Interview with RMIT Pro Vice-Chancellor Business and Vice-President, Professor Ian Palmer Interview with economist Nicholas Gruen Leon and Garry discuss issues including The International Monetary Fund stepping up its warnings on risks to the global economy, especially from Europe, as it trim its growth forecast for the rest of the year The European Union's bailout fund working on a 100 billion euro ($A121 billion) package for Spanish banks Hundreds of firemen, police and nurses demonstrating against Spain's latest austerity plan, a day after thousands hit the streets in protest The Chinese government reporting its lowest quarterly GDP growth in three years, with second-quarter GDP growth at an annual rate of 7.6 per cent The International Monetary Fund cutting its growth forecast for China's slowing economy and says a "hard landing" is still possible Americans cutting their spending at retail businesses for a third straight month, with a weak job market making consumers more cautious Federal Reserve Chairman Ben Bernanke admitting that US economic data has been "disappointing" and that a future reduction in unemployment would likely prove "frustratingly slow" The Australian dollar reaching a six week high But worrying news with three in every 10 households with a home loan are suffering mortgage stress, the number of Australian businesses paying their bills on time falling markedly during the June quarter, as businesses struggle with reduced cash flow, a Macquarie senior economist warning that Australia's unemployment rate could top six per cent in 2013, saying that the country's jobless rate is rising faster than official figures indicate, Ford sacking 440 workers and Asciano foreshadowing job cuts, the sharp downturn in Australia's housing construction sector showing little sign of respite with the Housing Industry Association forecasting total housing starts in 2012 to be 11.5 per cent below 2011, sales of new motor vehicles in Australia falling in the month of June and missing expectations, Bank of Queensland getting downgraded, business lending slumping In May, Australian international merchandise imports falling in June and research showing that Australians are more likely to put money into their savings accounts than treat themselves to luxury purchases over the next year At the same time, the Westpac/Melbourne Institute Leading Index is telling us that the pace of economic growth is likely to improve in the second half of 2012 and into 2013 The head of the government’s tax review Ken Henry warning that Australians will face higher rates of GST to help repair the nation's finances as the population ages More Australian workers saying they feel dissatisfied with their jobs and are less trusting of their employers than during the global financial crisis The mining boom making many of us rich – especially those of us living out west. Five of the country's top 10 richest towns are located in Western Australia with Dampier taking the top spot with 22 per cent of its residents earning more than $4,000 per week The Prime Miniser Julia Gillard signalling that industrial relations as the big issue in the lead-up to next year’s election.

Interview with Andrew Birt from IT incubator AngelCube Interview with economist Jeremy Thorpe from PricewaterhouseCoopers Leon and Garry discuss issues including: The eurozone offering Spain an initial €30 billion to help its distressed banks. This comes as Spain's borrowing costs on its benchmark 10-year bond hits the critical seven per cent level China's trade surplus rising to 42.9 per cent year-on-year in June as demand from emerging markets offset stagnation in the eurozone and Japan The OECD warning that the unemployment rate in advanced world economies will remain high at nearly eight per cent until the end of next year with about 48 million people jobless The United Nations calling for a billionaires’ tax to raise more than $US400 billion a year for poor countries The number of job advertisements on the internet and in newspapers falling for the third month in a row The demand for home loans falling slightly in May, beating analyst expectations, according to the Australian Bureau of Statistics Consumer sentiment rising again in July, its third consecutive monthly rise, according with the Westpac Melbourne Institute index of consumer sentiment showing a 3.7 per cent lift in the index to 99.1, from 95.6 in May but the National Australia Bank (NAB) Monthly Business Survey is showing that the business confidence index had dropped one point to negative three points. The battle between Qantas and Virgin Australia for lucrative corporate passengers driving fares for business-class seats on domestic routes to their lowest levels in real terms in almost 20 years ANZ chief executive Mike Smith in the running to replace disgraced Barclays boss Bob Diamond as the bank embarks on a global search for a chief executive and chairman Australian law firm Slater and Gordon reviewing whether Australian businesses could launch a class action lawsuit against British bank Barclays over the Libor rate-rigging scandal, alleging that domestic businesses were hurt by the inflated Libor rate Gina Rinehart dumping $50 million worth of Fairfax shares as she continues to push for a seat on the company's board Economists warning that Australian consumers can expect to pay more for bread, potato chips, cereals and staple foods as a searing heatwave in the US sends global crop prices soaring The corporate watchdog considering calls to abolish the creep provisions in takeover laws that allow sharemarket raiders to increase their holdings without bidding for all of a company’s shares The directors of Darrell Lea Chocolate Shops placing the company in voluntary administration, leaving up to 700 jobs at risk A global study finding that Australians are among the unhappiest customers in the world The directors of Darrell Lea Chocolate Shops placing the company in voluntary administration, leaving up to 700 jobs at risk. Mothers are driving a revolution in the workplace, according to the latest Household, Income and Labour Dynamics Survey. It found that labour force participation of women with children under the age of 15 surged to 66 per cent in 2009, up from 61 per cent eight years earlier.