Talking Business

Interview with Innes Willox, CEO of the Australian Industry Group Interview with RMIT economist Sinclair Davidson Leon and Garry discuss the latest issues including: The latest eurozone deal bolstering world markets hoping for a long-term solution to the debt crisis Greece facing a worse-than-expected recession US manufacturing shrinking The International Monetary Fund paring its growth forecast for the US economy Growth in China's manufacturing activity falling to a seven-month low Barclays Banks losing its chairman and CEO because of the rate rigging scandal Analysts say the Australian equity market faces in for the kind of low-growth akin to that experienced in the 1950s and 1960s. The winners and losers in the Australian market in 2011-12 The Reserve Bank of Australia keeping the official cash rate on hold at 3.50 per cent, in line with market consensus. Sentiment among local manufacturers falling noticeably, as concerns over rising staffing costs and the high Australian dollar dampen the sector’s sales and profit expectations, according to the latest Dun and Bradstreet National Business Expectations Survey. New MYOB research showing that that almost half of Australian business operators borrowed money to stay afloat in the last 12 months, with just a quarter of them borrowing money to spend on their business Australia's manufacturing sector contracting for its fourth straight month in June, according to the Australian Industry Group/PriceWaterhouseCoopers Australian Performance of Manufacturing Index RP Data-Rismark data showing national home prices rose by 1 per cent in June but remaining 3.8 per cent lower over the past year. Retail sales in Australia rising 0.5 per cent to a seasonally adjusted $21.3073 billion in the month, beating analyst expectations Building approvals rocketing a seasonally adjusted 27.3 per cent to 13,591 for the month, well ahead of analyst expectations Australia's services sector continuing to contract in June but at a much slower pace than in previous months Australia's rate of inflation falling to its lowest level since the global financial crisis The Australian Securities Exchange (ASX) examining reforms that would make it easier for listed companies to raise money from their shareholders in an effort to expedite the process for rights issues Polls showing that opposition to the carbon tax has risen three points to 62 per cent, while support is down four points in a month Business splitting over the carbon tax. Despite protests of about 2000 people in Sydney, led by Alan Jones, almost 300 organisations have galvanised under the banner of Businesses for a Clean Economy to voice their support for putting a price on carbon. This clashes with the BCA, which supports a carbon price in theory but strongly opposes Labor's scheme Brumby’s Bakeries apologising for a "foolish'' newsletter urging its stores to put up prices and "let the carbon tax take the blame'' New figures showing the average superannuation fund will post a positive return for the third year running, but only just Grocery wholesaler Metcash says it is negotiating the acquisition of three or four small businesses for about $90 million

Interview with Adina Jacobs, founder of STM Bags. Interview with RMIT economist Jonathan Boymal. Leon and Garry talk about issues including: The EU summit, Greece’s tribulations, Spain and Cyprus asking for bailouts, Moody’s downgrading 28 Spanish banks and the Bank for International Settlements backing a pan-European banking system Australia’s banks now the most profitable in the world but ANZ’s standing with the public has gone down News Corporation splitting into two companies. The split will separate the company's publishing assets from its entertainment businesses. News Limited declaring 100 redundancies Structural changes at Fairfax Media continue, with three senior editors at two of the group's key mastheads are stepping down. Editor-in-chief of The Age, Paul Ramadge, stands down from the role and leaves the company. The Sydney Morning Herald editor Amanda Wilson is also stepping down, along with editor-in-chief at the newspaper Peter Fray. New editors are appointed and there are big changes in the news gathering process Mining magnate Gina Rinehart says her company Hancock Prospecting may sell its interest in Fairfax Media Ltd if "suitable conditions" aren't offered to it. Kerry Stokes' Seven Group Holdings (SGH) has sought regulatory clearance for a takeover bid of Consolidated Media Holdings Major Ten Network Holdings Ltd shareholders Gina Rinehart and Lachlan Murdoch have lifted their stake in the media company Seven West Media Ltd chief executive officer David Leckie has stepped down from the role after nine years, and will move across to the board of Seven Group Holdings Ltd. Current director and former Woodside Petroleum Ltd boss Don Voelte has been named as the new chief executive officer and managing director of the group. The number of online orders to Australian businesses increased by almost a third during the 2010-11 financial year, according to the Australian Bureau of Statistics Australian medium-sized businesses recovered slightly in the first few months of 2012 and have begun to shift their focus back to growth, according to a report by GE Capital In a development that further stokes concerns about the impact the soon-to-launch carbon tax will have on power generators, a second coal-fired electricity generator has been forced to tap its offshore shareholders for a multi-billion dollar bailout to stay afloat Butchers, bakers and meal makers are now receiving from the Coalition leaflets apologising to customers for price increases after July 1 attributed to penalties on carbon emissions but the ACCC is warning them that they could inadvertently find themselves misleading customers, a breach that carries fines of up to $6600 Analysis by Deloitte finds that Australia’s natural gas boom might set off a new round of interest rate hikes, pushing economic growth above the level with which the Reserve Bank is comfortable A study by BIS Shrapnel has found that property market conditions are likely to improve in New South Wales and the resource-rich states of Western Australia, Queensland and Northern Territory. But Victoria, SA, Tasmania and the ACT will lag behind Building products maker Boral has cut its full year profit forecast.

Interview with Kevin Dwyer, management consultant from The Change Factory Interview with RMIT economist Sinclair Davidson Leon and Garry discuss issues including: The situation in Greece with a new pro-bailout government, Spain’s debt problems, the G20 meeting in Mexico and Europe’s problems pushing the Australian dollar to a six week high. The US Federal Reserve has decided to extend existing stimulus measures until the end of the year, in a bid to tackle subpar US jobs growth. The Westpac/Melbourne Institute Leading Index saying that the pace of economic growth in Australia is expected to slow in the second half of the year. Economists saying interest rates will probably be on hold next month following the release of Reserve Bank minutes of its last board meeting New figures showing that small business customers have received the least benefit from the latest cycle of interest rate cuts. Sales of new motor vehicles in Australia rising in the month of May, beating expectations of a fall, according to data from the Australian Bureau of Statistics. Retail spending has risen for the third time in four months, according to the Commonwealth Bank (CBA) Business Sales Indicator New federal government figures showing that job advertisements on the internet rose by 3.4 per cent in May Australian international merchandise imports rising in May, according to data from the Australian Bureau of Statistics Dun and Bradstreet finding that six in 10 Australians are now worried about their financial security Fairfax Media closing down printing plants, moving The Sydney Morning Herald and The Age to a tabloid, and sacking 1900 staff — including 380 journalists — as part of a massive cost-cutting drive to save the media giant from corporate oblivion. Fairfax will shift to tabloid versions for those two newspapers, The Age and The Sydney Morning Herald, from the first quarter of 2013. Fairfax is also setting up a paywall for its site At the same time, pressure is growing on the Fairfax board with Gina Rinehart now taking out 19 per cent of the group and pushing for three board seats and the unfettered right to hire and fire editors, sparking concerns from politicians about the future of the Australian media News Ltd restructuring its newsrooms and shedding staff as part of a major restructure at Australia's biggest newspaper publisher but at the same time, acquire Packer’s Consolidated Media Holdings Ltd for nearly $2 billion, giving it 50 per cent control of Foxtel, and buying Australian Independent Business Media Pty Ltd, which publishes the Business Spectator website and Eureka Report for about $30 million Grocery wholesaler Metcash planning to take full ownership of the Mitre 10 hardware brand Insurance company QBE facing a $240 million profit hit as legal pressure is stepped up for it to slash its ''grossly excessive'' premiums on a controversial US product Clive Palmer announcing a design and engineering consultant for his Titanic II project Troubled video games retailer Game finally shutting its doors, with administrators PwC announcing it will close all remaining locations.

Interview with Dave Stevens, managing director of Brennann IT about his business. Interview with Jeremy Thorpe, economist with PricewaterhouseCoopers Leon and Garry talk about issues including: Spain being given a eurozone lifeline of up to €100 billion ($A128 billion) to save its stricken banks and Greece going to the elections which will determine its future in the Eurozone, with massive implications for the global economy. The World Bank warning that a faster than expected slowdown in China poses a risk for the rest of the region, in particular commodity-dependent countries such as Australia and China’s commerce minister saying that the world's second-largest economy faces a challenging trade situation in the second half of the year. Moody's says that the outlook for Australia's Aaa foreign and local currency ratings remains stable. Commercial finance commitments spiking in April, while personal lending inched up, according to the Australian Bureau of Statistics. NAB’s business survey showing that business conditions have slumped to a three-year low, dragged down by a sharp deterioration in the mining industry. Consumer sentiment edging up again in June, its second consecutive monthly rise, according to the Westpac Melbourne Institute index of consumer sentiment. Prime Minister Julia Gillard running an economic forum in Brisbane this week The Australian dollar is expected to remain around parity for another five years, putting huge pressure on exporters. More than two-thirds of large Australian companies are willing to hire foreign workers as the effect of the skills shortage is felt across a broad range of industries, according to an Australian Institute of Management (AIM) National Salary survey. Ratings agency Fitch is preparing to downgrade Queensland's credit rating from AA+ to AA. Motorists can expect further savings of up to three cents a litre on petrol in the next fortnight, building on recent falls in wholesale prices. The average unleaded petrol price fell 1.5 cents to 143.6 cents a litre in the week ending June 10, according to the Australian Institute of Petroleum. One in 10 Australians who'll be impacted by federal Labor means-testing the private health insurance rebate saying they will cancel their cover as a result. Fairfax flagging an 8 per cent fall in revenue in a half-year equating to about $100 million less coming in, Gina Rinehart continuing her attacks on the Fairfax board and Newcastle Herald and Illawarra Mercury workers failing in their bid to stave-off job losses under a plan by Fairfax to transfer editorial production to New Zealand. The national news agency, Australian Associated Press, becoming the latest media organisation to cut jobs because of turmoil in the industry. Ten Network's sales chief Mike Morrison quitting the No. 3 network suddenly, only six months into the job. Win Television founder Bruce Gordon expressing interest in Nine Entertainment Co as Nine scrambles to address its looming debt problem. Independent grocers are calling on the Australian Consumer and Competition Commission (ACCC) to rein in Woolworths and Coles. Woolworths chief executive Grant O'Brien offering an olive branch to the food sector.

Interview with Frank Farrall, lead partner of Deloitte Digital Interview with RMIT economist Sinclair Davidson Leon and Garry discuss issues including: Top European finance ministers vowing to respond "speedily" to the continent's debt crisis as Spain pleaded for help for its struggling banking system so as to avoid a full and humbling bailout. Billionaire investor George Soros meanwhile says Europe has three months to save the Eurozone. Meanwhile concerns are growing that any recovery in the US has sputtered out. The United States economy added only 69,000 jobs in May - only about half of what is needed to keep up with natural population growth. Meanwhile, surveys of Chinese factories in May added to a gloomy picture for economic growth in the world’s second largest economy, suggesting the slowdown is broader than previously thought, hitting both domestic and overseas demand. So where does that leave Australia? Business people around the world are now bracing themselves for tougher times in the wake of the triple-headed downturn – in Europe, China and the US. But Treasurer Wayne Swan says Australia's economy is well-placed to deal with global financial trouble. Australia's current account deficit grew more than expected in the March quarter, according to data from the Australian Bureau of Statistics. This was mostly driven by a large rise in mining equipment imports. The data showed Australia posted a seasonally adjusted current account deficit of $14.892 billion for the three months to March. The figure is 55 per cent bigger than last quarter's figure But the Australian economy expanded more than expected in the March quarter, according to figures from the Australia Bureau of Statistics. The data showed gross domestic product (GDP) in the quarter to the end of March rose a seasonally adjusted 1.3 per cent. For the 12 months to March, GDP rose a seasonally adjusted 4.3 per cent. The Reserve Bank of Australia (RBA) has cut the official cash rate by 25 basis points to 3.50 per cent, citing further weakening in Europe and some moderation in growth in China as contributing to its decision. But Australian house prices have slid to a six-year low in capital cities despite RBA efforts to lift the housing market out of the doldrums with rate cuts. Home values dropped 1.4 per cent across all capital cities in May and are now down by more than 5 per cent on a year ago, according to RP Data figures. The TD Securities-Melbourne Institute Monthly Inflation Gauge was flat in May compared with April, keeping the annual rate of inflation at 1.8 per cent. The latest Dun and Bradstreet business expectations survey shows that Australian enterprises expect lower profits in the September quarter. Company gross profits fell further than expected in the March quarter. Gross profits for the three months to March dropped four per cent, in seasonally adjusted terms. The ANZ job advertisements survey showed the number of total advertisements on the internet and in major metro newspapers fell 2.4 per cent in May.

Paul Barclay from ABC’s Radio National leads the discussion between Dr Bruno Mascitelli, President of the Contemporary European Studies Association of Australia (CESAA); H.E. Mr Sven-Olof Petersson, Ambassador of Sweden to Australia and H.E. Mr Patrick Renault, Ambassador of Belgium to Australia. "Australia and Europe in Conversation" took place at the EU Centre at RMIT University in Melbourne, Australia. H.E. Mr Sven-Olof Petersson, Ambassador of Sweden to Australia, H.E. Mr Patrick Renault, Ambassador for Belgium to Australia, and Dr Bruno Mascitelli, President of the Contemporary European Studies Association of Australia; Swinburne University, together discussed The EU as a regional institution and democracy? The place of smaller member states' . Mr Paul Barclay from ABC's Radio National moderated the discussion. An edited version of this discussion is available at: http://www.abc.net.au/radionational/programs/bigideas/features/eu-series/ Background 50 years ago, in March 1962, Sir Edwin McCarthy took up his position as the first Australian Ambassador to the EU. Since then EU-Australia relations have had their ups and downs but today the relationship is broader, deeper and stronger than ever - but many challenges lie ahead. Every month this year, two or three Ambassadors and/or High Commissioners from EU Member States, together with Australian Ambassadors to Europe and other experts, will gather at the ANUCES to talk about their country and why it joined the EU, their current position and how their country interacts with Australia. Most of the events will be recorded and broadcast by Radio National's 'Big Ideas' program, and filmed by the Sky A-Pac Channel.

Interview with John Casella, CEO of Casella Wines Interview with economist Nicholas Gruen Leon and Garry discuss issues including: how the debt crisis that has ravaged Europe for the best part of three years has exposed a dislike of the single currency but little desire to abandon it. The big worry now is Spain overtaking broken Greece as the new flashpoint for the wobbling Eurozone. In worrying news for bricks and mortar retailers, ABS figures show retail sales have fallen and a new study shows Australians spent more than $11 billion buying goods online in the 12 months to April. Internet sales made up 5.1 per cent of total retail spending in the 12-month period, up from 4.9 per cent a year earlier. Nearly three quarters of the $11.1 billion spent by shoppers was on buying goods from Australian websites. Coles and Woolworths are being challenged. 100,000 Australians are believed to have paid their $60 annual membership fee to shop at the US bulk goods discounter Costco as it steps up its battle with Coles and Woolworths. Wesfarmers has reached agreement on an employment contract with Coles chief Ian McLeod, which will enable him to remain in the role after his current agreement expires in June 2013. But his salary will be pared back significantly from the $15 million-plus he took home last year to about $5 million to be in line with other Wesfarmers executives. The number of new home sales rose in April but Housing Industry Association (HIA) says more interest rate cuts are needed for a sustained recovery in the housing sector. Business leaders have urged the Gillard government to stick with its decision to allow 1700 foreign workers to work at Gina Rinehart’s $6.5 billion Roy Hill iron ore mine. The government is allowing mining magnate Gina Rinehart to use up to 1700 workers from overseas for a major project in Western Australia. The decision has infuriated trade unions and some Labor MPs. The first coal mine to be built in Queensland's resource rich Galilee Basin has been given the green light. About 2700 jobs will be axed after embattled engineering company Hastie collapsed under an estimated $500 million of debt. The company's collapse will cost some 2 wipe an estimated $300 million from the profits of banks, in addition to investor losses. Commonwealth Bank has gone further than the other banks. It has cut interest rates on some fixed rate home loans by up to 0.4 per cent. The mining boom has seen Programmed Maintenance Services Ltd almost tripling its profit in the last 12 months. Programmed, which provides staffing and maintenance services, posted a net profit of $31.2 million in the year to March 31, up from $10.4 million in the previous year. The search of Melbourne's OZ Minerals for a new project to expand its portfolio beyond its South Australian copper-gold interests has led it to strike a deal on an advanced copper-molybdenum project in northern Chile.


Interview with David Cunningham who founded near field communications company Tapit. Interview with RMIT economist Jonathan Boymal Leon and Garry discuss issues including: Australia living up to its nickname of "the lucky country", with a new OECD survey marking it as the happiest industrialised nation in the world based on criteria such as jobs, income and health. But the top economist at the Organisation for Economic Co-operation and Development (OECD) is warning that the 17-country eurozone risks falling into a "severe recession" Despite the rosy outlook for Australia, the outlook for economic growth has improved although it is still below average, according to the Westpac-Melbourne Institute leading index. Retail spending rising for the ninth straight month in April but it is unclear whether the outlook is favourable. The Commonwealth Bank (CBA) Business Sales Indicator (BSI) rose by 0.5 per cent in trend terms in April, after a 0.8 per cent gain in March. The company that purchases white goods and electronics for more than 100 Retravision stores in Victoria, southern NSW and Tasmania has gone into voluntary administration. Myer Holdings Ltd lowering its full year profit guidance, after posting a slight decline in sales for the third quarter, in what it says is a very challenging trading environment. Roy Morgan Research finds that Australia's real unemployment rate is twice the official figure and the Reserve Bank must urgently cut interest rates, says the nation's biggest research firm. The Australian dollar keeps falling as nervousness grows that a summit of European leaders won't make progress on a solution to the region's debt crisis. Malaysia and Australia have signed a free trade agreement that will allow Malaysia to export all goods duty-free into Australia once the deal comes into force on January 1, 2013. Qantas Airlines Ltd has announced a major restructure, which will see it split its operations into two separate domestic and international businesses with their own management. Qantas is also axing 500 jobs Leighton is now paving the way to exit, or sell down, its share of the troubled Habtoor joint venture by preparing to float off shares in the company to a regional market in the Middle East, most likely Dubai. James Hardie Industries Ltd expects Australia’s residential construction activity to continue to contract in the coming 12 months, despite swinging to profit in the full year. Elders has returned to profitability with a first half net profit of $40.5 million Laboratory group Campbell Brothers Ltd's full year profit is up 68 per cent and the company expects more growth in the year ahead. Ticketing and labelling group TMA was behind a recently revealed takeover offer of printer and publisher PMP worth up to $252.5 million. Direct marketing company Sema Group has been placed in voluntary administration. Ten Network Holdings is negotiating the sale its outdoor advertising business Eye Corp, saying it has entered into an exclusivity agreement with a bidder. BHP Billiton Mitsubishi Alliance's (BMA) central Queensland coal miners will strikes after rejecting the latest workplace offer.

Interview with RMIT economist Sinclair Davidson Interview with Illumination Solar founder Shane Thatcher - www.illuminationsolar.com Leon and Garry talk about issues including - Conflicting polls about the response to the Federal Budget with some saying voters reject it and others pointing to a small lift in the government’s standing. - Treasurer Wayne Swan reassuring business the federal government is still on the case to reform the tax system, despite ditching a promised cut in the corporate tax rate in last week's federal budget. - Resources Minister Martin Ferguson warning against any tax reforms that could put at risk the looming wave of gas projects, at a time when companies have been vocal in their opposition to Treasury Department proposals to remove company tax concessions. - Union leader Paul Howes warning that Australia's union movement could be wiped out if there is another episode like the Health Services Union scandal. - The ACTU planning a permanent, multimillion-dollar campaign fund to take on the federal Coalition and business groups in the lead-up to the federal election due next year. - The ACTU canvassing the rich being forced to pay a new "millionaires' tax" under a plan inspired by multi-billionaire Warren Buffett and US President Barack Obama. - The Reserve Bank fuelling hope of further rate cuts, saying inflation should stay low and that the non-mining economy will need to create more jobs in order to contain unemployment. - Sales of new motor vehicles in Australia falling in the month of April, according to data from the Australian Bureau of Statistics. - Wages prices rising 0.9 per cent and commercial finance commitments rising 8.8 per cent. - A Boston Consulting Group study showing that more than than half of all Australians feel they have been personally affected the global downturn, despite the nation's strong economy while consumer confidence rises 0.8 per cent. - Transport and logistics Toll Holdings has warned of lower earnings in 2012 as weakness in the retail sector impacts on its business. Toll said it expects underlying earnings before interest and tax (EBIT) to fall to about $400-$420 million, excluding one-off items but including associate earnings. - Foreign investment approvals in Australia growing by 27 per cent in the last financial year, to be almost in line with pre-global financial crisis levels and reflecting ongoing interest in the resources sector. - Former Future Fund chairman David Murray predicting 15 years of difficult economic conditions as governments work their way through the effects of the global financial crisis, and flagging an alternative way to smooth out the effects of the resources boom for the non-mining sectors. - State governments reeling from a steep decline in forecast goods and services tax revenue as sluggish economic conditions create severe strains on state budgets already stretched after the global financial crisis. - The Australian dollar falling below parity against its US counterpart for the first time in almost five months. - And finally, the news from Greece is not looking good.

Interview with economist Saul Eslake on the Budget Interview with Deloitte head of strategy Gerhard Vorster who is also chair of the RMIT Industry Advisory Board Leon and Garry talk about issues including: Europe is now in for a period of uncertainty with the election of socialist leader Francois Hollande and a parliamentary election in Greece delivering a second hammer blow to Europe's political order, with voters flocking to anti-austerity candidates at the expense of the two traditional ruling parties. The Gillard government has upheld its promise to return the federal budget to surplus in fiscal 2013, in the largest budget turnaround in over 50 years, despite a larger than expected deficit forecast for the current year. Wayne Swan has dumped a promised company tax cut to help pay for $5 billion in handouts to Labor's heartland and scrape together Budget surpluses from next year. To deliver its promised surplus the Government will have to pull off the biggest fiscal consolidation since the 1950s, and as usual, much will depend on the forecasts. This year’s Federal Budget surplus depends on on GDP growth of 3.25 per cent for 2012-13. That’s almost one percentage point higher than the growth rate last calendar year. In its fifth budget, the Labor government has moved to boost productivity, following weaker than expected company tax receipts for the current year. The business investment boom is expected to reach an all-time high this year. The budget delivered in Canberra reveals investment will surge again, as companies cash in on the second phase of the mining supercycle. Treasury estimates there will be an extra $120 billion pumped into projects this year to build on the $450bn under way, more than half spent on projects already approved or under construction. The government's projected surplus of $1.5 billion next year won't be enough to stop its outstanding borrowings pushing past the parliament's legislated debt ceiling. The government will pour $76.8 million into the Australian Taxation Office and other agencies involved in Project Wickenby to recoup $210.1m over the next four years. The banks are cutting interest rates. But the average standard variable rate reduction out of the lenders that have announced rate drops is 35 basis points. Westpac chief executive Gail Kelly has urged her fellow business leaders to work with Prime Minister Julia Gillard more co-operatively rather than engaging in combat on issues such as the carbon tax and the budget. Australian building activity has continued to slide, due to weak demand and lower workloads, a private study has found. The Australian Industry Group-Housing Industry Association's performance of construction index (PCI) fell 1.3 points to 34.9 in April. Australia's trade deficit widened in March, meeting expectations of an increased deficit, according to data from the Australian Bureau of Statistics. The Reserve Bank has downgraded its expectations for the housing market, delivering a downbeat assessment.

Interview with PricewaterhouseCoopers economist Jeremy Cooper Interview with Steve Quane, executive vice president of Trend Micro, the second biggest Internet security company in the world Leon and Garry talk about issues including: The Reserve Bank of Australia (RBA) cutting the official cash rate by 50 basis points to 3.75 per cent, beating market consensus of a 25 basis point reduction. The Australia Institute saying the big four banks save $12 million for each day they don’t pass along the Reserve Bank’s rate cut. The Treasurer, Wayne Swan, putting a number on the savings he will need to outline on May 8 to return the budget to surplus. He said a collapse in projected budget revenue of $5 billion in 2012-13 and another $5 billion in 2013-14 would mean he would need to find an extra $10 billion over the next two years. Very high-income earners can expect to see their superannuation tax concession cut in the May 8 federal budget, a reform that will net the government some $1 billion over the next four years. Manufacturing activity slowing sharply in April, with 10 of 12 sub-sectors within the Australian economy recording negative growth. The Dun and Bradstreet Business Expectations Survey reveals that one in every four businesses is anticipating a drop in sales and profitability next quarter. Qantas is set to axe 400 employees working in its heavy maintenance base at Tullamarine while another 660 are at risk at Avalon. Professional services company Spotless group has agreed to Private Equity Partners' (PEP) $2.71 per share bid for the company. The takeover bid is worth $720 million. Mining magnate Clive Palmer is due to take on Wayne Swan at the next federal election, announcing he will seek Liberal National Party preselection for the seat of Lilley. MYOB research has found one in two small to medium business operators are dissatisfied with the Federal Government’s support for helping businesses such as theirs succeed. The federal government has released its media convergence review, which includes recommendations such as the scrapping of TV broadcast licensing and the regulation of large, revenue generating content providers. The AFL, NRL and Telstra have won an appeal against an earlier ruling that allowed Optus customers to use the TV Now service to record matches and view them on their PCs, telephones and other devices. Retail spending is expected to be moderate over the next quarter, following a sluggish start to 2012, putting further pressure on Australian retailers and manufacturers, according to the fifth AFGC CHEP Retail Index JB Hi Fi warns that full-year net profit after tax would be $100 million-$105m, 15 per cent below consensus of $119m, and 9 per cent down on the previous year. NAB restructures its loss making UK operations and announces a higher profit of $2.82 billion. ANZ lifts its first half profit by 10 per cent to $2.92 billion. Optus will axe 750 jobs.

Interview with RMIT economist Jonathan Boymal Interview with Phillip Gronvold, product manager at Opera Software, speaking from Norway. Leon and Garry discuss issues including Australia's inflation rate easing by more than economists expected. The inflation figures are seen as crucial to the central bank's deliberations on the official interest rate next week. The consumer price index (CPI) rose 0.1 per cent in Australia in the March quarter, for an annual inflation rate of 1.6 per cent, down from 3.1 per cent previously, the Australian Bureau of Statistics said. All this makes a rate cut look likely. The federal government could be in for a tougher-than-expected battle to have parliament approve controversial budget measures. Already one independent MP says he won't support a rumoured cut to the diesel fuel rebate for miners, a move that could save the budget billions of dollars. The decision by Peter Slipper to stand aside as Speaker pending inquiries into allegations he misused taxpayer-funded Cabcharge dockets has altered the numbers on the floor of parliament's lower house. It also has increased the bargaining power of crossbench MPs, especially Tasmanian independent Andrew Wilkie who had withdrawn support for the Labor minority government. The federal government has conceded capital gains tax relief in the May budget to superannuation funds planning mergers, following warnings that government policy could have scuttled a number of proposed multi-billion dollar moves to consolidate in the sector. Australia's two-speed economy will become more pronounced as mining investment goes into overdrive and consumer spending remains subdued, an independent forecaster says. Deloitte Access Economics expects a major surge this financial year and next as businesses, especially those in the resource sector, try to boost their production capacity. But a third of Australasian businesses - twice as many as six months ago - now believe that the global economy is improving, research says. Ernst and Young's six monthly Capital Confidence Barometer showed that corporate confidence in the global outlook is steadily improving and Australasian companies are poised for growth. But Western Australia is performing so strongly that the national economy is now being viewed in terms of Australia as a whole and Australia excluding WA. The latest report card by Commonwealth Securities (CommSec) on Australia's states suggests WA's influence, courtesy of the mining boom, has become so powerful it warrants its own special consideration. A pick-up in mortgage inquiries for the first time in two years could be an early indicator that house prices will recover in future months. Research by lending data provider Veda shows that while overall consumer credit demand remains soft, home loan inquiries rose 1.5 per cent in the year ending March - the first annual rise since the 2008-2009 global financial crisis. A new study shows that Australians borrow more than $1.6 billion from friends, family and colleagues every month. The average Aussie borrows about $200 per month in this way, for unforeseen or emergency situations, the survey by the Commonwealth Bank found.

Interview with RMIT economist Sinclair Davidson. Interview with Geoff Elwood, founder of the ETech group of companies. Leon and Garry look at issues including: - The International Monetary Fund (IMF) expects the Australian economy to expand by three per cent in 2012, as the threat of a sharp global economic slowdown recedes and activity in the United States rises. - The Greens under former leader Bob Brown could have done a better job of selling their economic vision for Australia, according to the woman who replaced him in the top job. - Research by MYOB has found that economic confidence has sagged to an eight-year low amongst small to medium business operators. More than one quarter (26%) do not expect the domestic economy to improve for at least two years, the highest percentage recorded by the MYOB Business Monitor since the study commenced in 2004. - The Australian economy continues to perform weakly, an industry study has found. The Westpac-Melbourne Institute leading index of economic activity, which indicates the likely pace of activity three to nine months into the future, posted an annualised growth rate of 2.4 per cent in February. - Commercial finance commitments fell in February, while personal lending also declined, according to the Australian Bureau of Statistics. - ANZ Bank has lifted interest rates for its variable home loan customers and small business borrowers despite the central bank leaving the cash rate on hold. ANZ’s decision will see its standard variable mortgage rate rise to 7.42 per cent. - Bank of Queensland (BOQ) says loan arrears are stabilising after a big rise in the costs of bad loans caused a $90.6 million first half loss. BOQ had flagged the result in March, when it launched a $450 million capital raising to strengthen its balance sheet. - The Reserve Bank has indicated wholesale funding costs of the banks were beginning to ease, despite the banking sector's claims that elevated costs were continuing to crimp their profit margins. - Australia's four largest banks are expected to report profits of more than $12 million over the first half of the 2012 financial year, which may raise further pressure on the banking sector to defend any interest rate hikes. - Loss-making small businesses will receive tax relief worth up to $300 million a year, under a recommendation the Treasurer, Wayne Swan, is tipped to adopt in this year's budget. - Foxtel's $2 billion takeover of Austar has cleared its final hurdle and received the tick of approval from the Federal Court. - Westfield is selling out of eight U.S. shopping centers for $1.15 billion, which it will use to reduce debt and boost long-term profitability. - In a move that will make Australia's bricks and mortar retailers shudder, Amazon - the world's largest online retailer - is in the market for a local warehouse in Australia as part of its massive global distribution network.

Interview with economist Nicholas Gruen from Lateral Economics Interview with Andrew Bennetto, the founder and managing director of EdSoft Interactive, the largest educational e-learning company in Australia. Leon and Garry talk about issues including: - The ACCC creating a monopoly by approving the merger between Foxtel and Austar - The government going on the offensive over its plans to cut the budget surplus in the face of criticism by economists and big business. - Almost three-quarters of voters believing the federal government should hold off on its promised budget surplus in 2012/13 to protect services from the axe, a new survey has found. The weekly Essential Research online poll found just 12 per cent believed a surplus was still warranted, even if it meant cutting services and raising taxes. - Treasurer Wayne Swan is talking up carbon tax compensation cheques for Australian households a month before the federal budget but a prominent lawyer believes the tax is unconstitutional. - The demand for home loans dropped in February, less than analysts had expected, according to the Australian Bureau of Statistics. - Job advertisements rose for a third consecutive month, in a sign that hiring intentions by businesses are continuing to improve, a private survey shows. Total job advertisements on the internet and in major metropolitan newspapers rose 1.0 per cent in March, the ANZ job advertisements survey showed. - Australian construction remained weak in March, although the pace of decline has slowed, an industry study shows. The Australian Industry Group/Housing Industry Association performance of construction index had a reading of 36.2 in March, up 0.6 points from the month before. - More than 120 automotive workers have been stood down without pay by a Melbourne car parts manufacturer which has been placed into receivership. Coburg-based APV Automotive Components says it cannot afford to pay its 126 staff, citing a sharp drop in orders for the parts it makes for Holden, Toyota and Ford. - The latest consumer confidence survey shows household sentiment has fallen to an eight-month low. The Westpac-Melbourne Institute Index of Consumer Sentiment found confidence dropped 1.6 per cent to 94.5 in April, its lowest point since August last year, as households worried about their financial security. - A record number of Australian companies went bust in February as the downturn in consumer confidence took a devastating toll, new figures reveal. - Building fixtures supplier GWA Group says full-year earnings are likely to fall by as much as 25 per cent as home building continues to slow and bad weather hits sales. - But business confidence lifted in March amid signs the US and European economies were improving, a private sector survey has shown. - Employers have expanded their push to cut minimum working hours and slash weekend pay for casuals. They are also moving to abolish evening penalty rates and to narrow the definition of shift work, according to submissions to a review of the awards system being conducted by Fair Work Australia.

Interview with RMIT economist Sinclair Davidson Interview with Alec Zeglis, Founder of Townsville based ISP Origin Net and Sydney-based Origin Consulting Services. Leon and Garry talk about issues including: . The Reserve Bank of Australia (RBA) leaving the official cash rate on hold at 4.25 per cent, in line with analyst expectations. . Analysts at ratings agencies Standard and Poor's and Fitch Ratings putting Australia on notice that a tough budget in May is required if Australia is to maintain its prized AAA credit rating . . Company directors warning federal Labor against posting a budget surplus that damages growth. . Sales of new homes rising modestly in February after a large fall in January, according to an industry report. . Manufacturing activity contracted in March as demand weakened, a private survey shows. The Australian Industry Group/PriceWaterhouseCoopers Australian Performance of Manufacturing Index (PMI) fell 1.8 index points to 49.5 in March. . Retail sales rising in February, in line with analyst expectations, according to the Australian Bureau Statistics. The data showed retail sales lifted 0.2 per cent in the month, seasonally adjusted, to $20.988 billion. . The total number of Australian houses and apartments approved for construction falling a seasonally adjusted 7.8 per cent in February from January. . House prices in capital cities growing 0.2% in March, according to the latest figures from RP Data, and the market was flat during the first quarter of the year, but key industry metrics are beginning to show some improvement. . Consumer prices rising in March on the back of holiday expenses, alcohol and fuel - and despite falls in meats, housing and clothes. The TD Securities-Melbourne Institute inflation gauge rose 0.5 per cent in March, following an increase of 0.1 per cent in February. . The Reserve Bank of Australia's (RBA) index of commodity prices rising 0.6 per cent in March, from February, thanks mainly to increases in prices of iron ore and oil. . The Commonwealth auditor-general slamming the way a tender process for the Australia Network was conducted, saying it presented the Gillard government in a poor light. . American engineers and tradies struggling to find work at home are being encouraged to fill skills shortages in Australia's booming resources sector. The federal government has announced it is streamlining the way US plumbers, electricians and other tradespeople can get licences to work in Australia. . Metcash Ltd announcing it will slash almost 500 jobs, close 15 stores and take multiple impairment charges after completing a strategic review of the company. The grocery wholesaler will close 15 Campbells Cash and Carry branches and expects that over 478 positions will be made redundant. . Austar shareholders voting in favour of a takeover by pay TV rival Foxtel even though the competition watchdog has yet to approve the deal. . OneSteel Ltd unveiling a potential new name for the company, Arrium Limited, which will be voted on by shareholders at an extraordinary general meeting in May.