Talking Business

Interview with economist Lynne Pezzullo from Deloitte Access Economics Interview with Russell Ivanovic, founder of Shifty Jell, one of Australia’s leading iPhone, iPad and Android app development companies. Leon and Garry talk about issue including - As the federal government puts its fifth budget together, a new survey shows many voters believe the economy is heading in the wrong direction. The weekly online Essential Research poll found 41 per cent of respondents believed the economy was going the wrong way, a significant deterioration from the 29 per cent who said this after the 2011 budget was handed down. - Latest research from the Melbourne Institute suggests the economy will look like it's chugging along at a reasonable clip by the end of the March quarter. The institute is predicting annual growth at around the economy's annual trend rate, which is usually seen at 3.25 per cent. - Latest research from the Melbourne Institute suggests the economy will look like it's chugging along at a reasonable clip by the end of the March quarter. The institute is predicting annual growth at around the economy's annual trend rate, which is usually seen at 3.25 per cent. - The decision by Australia's major banks to lift mortgage rates when the Reserve Bank left official rates steady has come back to haunt them, with customer satisfaction levels falling last month. - Analysis by three investment banks has suggested that Australia's largest miners will pay much less than expected through the mining tax set to be introduced July 1, further casting doubt on the federal government's forecast of $10.6 billion in revenues over the tax's first three years. - The federal government-owned NBN Co internally endorsed controversial Chinese equipment maker Huawei Technologies as a major supplier to the $36 billion national broadband network, but was blocked by the Gillard government on the advice of intelligence agency ASIO. - Billions of dollars in tax breaks for research and development by big business may be cut under an option being considered by a high-powered panel looking to plug holes in the business tax system. - Jobs could be shed by Holden despite the federal and state governments contributing $275 million to keep the carmaker operating in Australia for another decade. - A Senate Committee report has described a Qantas lockout and grounding last year as disastrous for Australia. The Senate Committee says that federal authorities should have the final say on the grounding of any airline and the Senate Committee has recommended the Federal Government change current regulations. - Qantas Airways Ltd will set up a budget airline in China under a new agreement reached with China Eastern Airlines. Jetstar Hong Kong will begin flights in 2013, flying short-haul routes in China and to Japan, South Korea and southeast Asia. - Bank of Queensland (BOQ) expects to post a $91 million first half loss because of a large increase in impairments on loans. - Australians will soon be able to receive their letters online with Australia Post's new digital mailbox.

Interview with RMIT economist Alberto Posso Interview with Don Meij, CEO, Domino’s Pizza Leon and Garry talk about topics including: - The Federal Government pushing its mining tax through the Senate as Parliament resumed in Canberra this week. - Fortecue leading a legal challenge to the mining tax in the High Court. - The Reserve Bank flagging interest rates in Australia could remain on hold for the next few months as the domestic economy deals with the "significant structural adjustments". - Australian international merchandise imports falling sharply in February, according to data from the Australian Bureau of Statistics. - The Westpac-Melbourne Institute saying the economy will continue to grow at a sluggish and below-trend pace. - Government figure showing that job advertisements on the internet fell by 0.1 per cent in February compared with a month earlier. - RBA governor Glenn Stevens saying that boosting productivity growth is the only way for Australians to improve their living standards. - Eight out of 10 corporate bosses saying that boosting productivity is a top business priority but only one in five measuring it. - New research showing that more households will be forced to use credit cards to pay living expenses in the coming months. - The peak body for business launching a campaign urging employers to look outside the box and hire older people, stay-at-home mums, indigenous people, the unemployed and the disabled. - New figures from RP Data showing that the share of homes with mortgages worth more than the property's value increased at the end of last year as the housing market stalled and prices turned lower. - Optus confirming that jobs are likely to be cut as Australia's second largest telecommunications company goes through a restructure. There are reports that 700 jobs will go after Optus's parent company Singtel announced a review of its business early this month. - Vodafone Australia chief executive Nigel Dews resigning from the company after a turbulent 18 months in which profits and customers exited the business. - Australia's corporate watchdog has warned all listed companies to adhere to continuous disclosure laws after securing an enforceable undertaking from Leighton Holdings over its $900 million earnings downgrade last year. Leighton Holdings has paid $300,000 to the Australian Securities and Investments Commission after being served with three infringement notices alleging the company did not comply with continuous disclosure provisions. - David Jones Ltd flagged a 30 to 40 per cent fall in its full year profit after deteriorating market conditions saw the department store owner post a fall in interim profit. - Kathmandu has reported a big fall in first half profit. Net profit for the six months to January 31, 2012, fell 43.1 per cent. - Queensland Greens founder Drew Hutton plans to sue billionaire Clive Palmer, saying the mining magnate has accused him of treason. Clive Palmer has claimed that Greenpeace, the Greens, and activists are part of a CIA conspiracy to undermine Australian mining interests.

Interview with RMIT economist Sinclair Davidson. Interview with Hooman Zahrai, chairman of the Institute of Factors and Discounters. Leon and Garry discuss issues including: An NAB survey showing business confidence slumping in February even as conditions improved. Consumer sentiment falling Consumers are increasingly reluctant to take on personal debt, with new figures showing the average credit card limit recorded its slowest growth in 17 years over the past 12 months, according to The Reserve Bank of Australia. But then, personal finance commitments jumping in January, while commercial lending fell, according to the Australian Bureau of Statistics. Motor car sales flat coming in February New home buyers and investors giving up on the housing market amid a soft economy and a diminishing chance of further interest rate cuts. Loan approvals for investment housing in January fell 7.1 per cent, seasonally adjusted, according to Australian Bureau of Statistics figures. Housing starts falling further than expected in the December quarter, according to data from the Australian Bureau of Statistics. Myer reporting a 17.5 per cent fall in profit. Trade Minister Craig Emerson outlining plans to harness capital from emerging economic giants such as China and India to spark a revolution in Australian food production. The chief executive officer of Telstra Corporation Ltd subsidiary Sensis, Bruce Akhurst, stepping down from his role at the company. The federal government’s $2.4 billion big business tax cut funded by the mining tax faces defeat in Parliament after the Greens said they would only support cuts for small business. The federal government's release of draft tax laws that would cut the 30 per cent company tax rate for big companies have stoked calls from business groups for more robust reforms of the country's tax laws. Billionaire James Packer donating $250,000 to maverick Queensland MP Bob Katter's Australian Party ahead of the Queensland election in two weeks. Pizza maker Domino Pizza Enterprises Ltd announcing that technology led pizza demand has driven the chain to hire 1000 extra staff across its Australian stores. Domino's said it needs extra pizza makers, delivery drivers and part-time managers at its 482 Australian stores. David Gonski, one of Australia's most high-profile businessmen, will be the next chairman of the $73 billion Future Fund. Billionaire mining magnate Clive Palmer flagging plans to establish a Guardian newspaper-type “blind trust’’ to invest in Australian media to ensure diversity and stop independent newspapers going bust. Palmer still intends to mount a High Court challenge against the federal government's carbon tax. If Australia's carbon prices remain higher than Europe's carbon prices, the Australian economy stands to take a $30 billion hit to growth by 2018, according to new economic modelling. The bitter dispute between Australia's richest person, Gina Rinehart, and her children expected to spark debate about the ownership of the Hope Downs iron ore mine

Interview with Ian Chalmers, chief executive officer of the Federal Chamber of Automotive Industries. Interview with Lachlan Smirl, economist at Deloitte Access Economics Leon and Garry discuss issues including: . Greece making the biggest debt writedown in history, providing much-needed breathing room for European nations living beyond their means and paving the way for Greece to receive an enormous second bailout in the hopes of containing the crisis before it drags the entire continent further into chaos. . The RBA keeping interest rates on hold with the Bank of Queensland raising its rates anyway but the ANZ keeps theirs on hold while Westpac Banking Corp chief executive Gail Kelly says Australian banks will continue their efforts to break the link between their lending rates and the RBA. . ANZ Job Ads gave a positive read for February, but this was countered by a fall in the SEEK new internet job advertisement series. The monthly labour market data continues to show next to no growth in employment and a contracting labour force. Meanwhile, GDP grew by only 0.4 per cent the last quarter, well below expectations of around 0.7%. . Australia's current account deficit has widened due to a fall in the value of exports, Australia has posted a surprise trade deficit in January with data showing Australia's terms of trade fell to a seasonally adjusted deficit of $673 million in the month, swinging from a surplus in the last month but farm exports will surge by more than $3 billion to $35.54 billion this year as the industry reaps the benefits of its most prosperous time in 30 years. . Australian construction activity has declined for the past 21 months. . Fruit and vegetables push up consumer prices. . Activity in the Australian services sector has contracted by the most in more than two and a half years last month showing the mining boom is not filtering through to rest of the economy. . Work days lost from strikes and lockouts nearly doubled last year to its highest annual level since 2004 in the first significant rise under Labor's Fair Work laws with nearly a quarter of a million working days were lost in 2011 to industrial action. . Deloitte Access Economics predicts a modest recovery for the retail sector in 2012. . BIS Shrapnel says the pain of the high Australian dollar will continue for at least another two or three years even though the pace of economic growth is expected to pick up. . Gross operating profits at Australian companies fell 6.5 per cent to a seasonally adjusted $66.35 billion in the fourth quarter of 2011, compared with the previous quarter, according to the Australian Bureau of Statistics. . We are witnessing the outbreak of class warfare in the lead up to next year’s election with Treasurer Wayne Swan attacking billionaires. . This coincides with Australians Gina Rinehart, Andrew Forrest and James Packer making the latest edition of Forbes magazine's global rich list.

Interview with Frank Milne, BMO Professor of Economics and Finance, Queens University, Ontario, Interview with RMIT economist Sinclair Davidson Leon and Garry talk about topics including: . News Corporation has announced that James Murdoch has stepped down as executive chairman of News International in response to damning revelations about his role in the hacking scandal. . Data from the Climate Change Department released showing that power generators accounted for some 170 million tonnes of carbon dioxide emissions in the 2010-11 financial year, which if repeated next year could leave the sector on the hook for more than half of the revenues expected to be raised by the looming carbon tax. . Three of Australia's big four banks have had their prized AA credit ratings downgraded by one notch because of their partial reliance on wholesale funding markets but Bank of Queensland has been placed on credit watch positive by ratings agency Standard and Poor's (SandP), indicating an upgrade to the lender's long-term credit rating is possible. . The number of Australian banking jobs heading offshore is set to grow following an announcement by RBS Australia that its fixed-interest team operations will almost entirely be moved to Singapore and London. . A fall in house sales in Victoria dragged national new home sales weaker in January . Construction work and retail trade figures confirm the economy has plenty of weak patches amid the areas of strength from the mining boom. Retail turnover rose by 0.3 per cent in January, after adjusting for the regular seasonal pattern and the volume of construction work done fell by 4.6 per cent. . A survey shows that online sales account for less than five per cent of the total retail sector, but shoppers are slowly drifting that way. . Crown plans to spend more than $1.5 billion on building new luxury hotels in Sydney and Perth, after boosting its investment in rival casino operator Echo Entertainment but former Prime Minister Paul Keating is putting pressure on James Packer. . Crown posts a net profit of $247,402 million. . Echo Entertainment Group hopes to boost the number of high-rolling gamblers visiting its Queensland casinos, after its Sydney casino. . Gaming machine supplier Aristocrat on Tuesday booked an annual net profit of $66.14 million. . Telstra Corporation Ltd has accepted the terms to its structural separation, removing the last major barrier to the government's national broadband network. . Iain Ross, a judge and former ACTU officer, has been named the new president of Fair Work Australia. . David Jones second quarter sales fall 3.1 per cent in a challenging retail environment. . Profit figures from Vodafone, Hastings Diversified Utilities, Fairfax, Boral, Worley Parsons, Southern Cross Austereo, Caltex Australia, Collins Foods, SFG Australia, Atlas Iron, ROX Oil Company, James Hardie, Gunns, Seven Group Holdings and Spark Infrastructure. . Holden wants about 2 1/2 times as much federal government money as the $100 million speculated for the package to maintain two-model manufacturing at its Adelaide car factory.

Interview with Rob Roe, AirWatch managing director Australia and New Zealand. Interview with economist Nicholas Gruen from Lateral Economics Leon and Garry talk about topics including: . The world heaving a sigh of relief that Eurozone ministers have sealed a 130-billion-euro ($172 billion) bailout for Greece to avert a massive default but it’s not over yet. . Treasury boss Martin Parkinson giving an upbeat appraisal of the Australian economy, saying the outlook is "incredibly promising". . Former Prime Minister Kevin Rudd meeting with business leaders, mending ties and promising talks on new policies as part of his push to regain the Labor leadership. . Australian retail spending rising 0.6 per cent, according to the ABS . The number of small business collapses soaring through 2011 and credit agency Dun and Bradstreet saying this year could be another tough one as poor sentiment outside of the mining sector and tightened credit conditions take their toll. . ABS data showing that the Australian wage price index rose 3.7 per cent, in trend terms, over the 12 months to December 2011. . Societe Generale casting doubt on claims by the banks that they have higher funding costs and suggesting that they only raised interest rates to bolster their profit margins. . ANZ posting a rise in profit to .41.48 billion but data shows that satisfaction among ANZ's business customers has fallen for the second consecutive month. . Criticism of the banks with ANZ planning to take top staff on a $1.75 million cruise just weeks after axing 1000 workers to save money and the Commonweath Bank holding a pirate party for top staff. . About 300 people losing their jobs after budget carrier Air Australia was placed in administration. . The 600 workers facing the sack at Alcoa's Point Henry plant in Victoria are being offered lucrative pay packets to help set up a new cut-price smelter in Saudi Arabia. . Australia’s biggest tomato grower Queensland-based SP Exports has gone broke and is blaming price manipulation by the two major supermarkets for playing a key role in its demise. . The iconic Holden Commodore will be replaced within five or six years, as parent company General Motors seeks to revamp the Holden brand in an effort to protect its Australian manufacturing base. US retail chain Costco committing a further $140 million to ramp up its burgeoning operations in Australia. . Rio Tinto planning driver less trains . AFL moving to secure domain names . Profit and loss announcements from Sims Metals Management, Santos, Billabong, Pacific Brands, Treasury Estate Wines, Woodside, Bluescope Steel, OneSteel, Paperlinx, Lend Lease, Amcor, Coca-Cola Amatil, Downer EDI, Sonic Healthcare, Flight Centre, iinet, Monadelphous, Fantastic Holdings, Mirvac, Computershare, Bendigo and Adelaide Bank, Speciality Fashion Group, UGL, CSL, Suncorp, Asciano, Seven West Media, Ten Network, and Transfield. . Woolworths Ltd opening two temporary virtual supermarkets in Melbourne and Sydney to explore the possibilities of digital retail and app based shopping.

Chapter times: 0:38 - Talking Business News 37:07 - Interview with Jim Stewart, who runs search engine company StewArtMedia. eon and Garry discuss many topics including: - The Reserve Bank of Australia (RBA) lowering its inflation and growth forecasts for the first half of 2012 as uncertainty about Europe's debt crisis weighs on domestic household and business spending. - All the banks raising interest rates independently of the RBA and the politicians attack but they are defended by the Reserve Bank of Australia. - ANZ is slashing 1000 jobs across Australia, just days after slugging homeowners with an interest rate hike independently of the Reserve Bank and the Commonwealth Bank posts a seven per cent profit increase while Westpac posts a lower profit of $1.5 billion. - Qantas says it will close more routes, terminate 500 jobs and slash spending over the next two years, as it reported a steep decline in first-half profit. - Unemployment in Australia fell in January, bucking expectations of a rise, according to data from the Australian Bureau of Statistics - Business conditions improved a little in January, after the Reserve Bank of Australia's (RBA) two interest rate cuts in late 2011 - The latest NAB business survey also shows an astonishing two-thirds of Australian businesses reported no need for finance in January, the highest since the survey began in 2008. - Personal finance commitments edged up in December, while commercial lending inched down, according to the Australian Bureau of Statistics. - Consumer confidence has risen following two interest rate cuts in late 2011, but remains well below its level a year ago, according to a private survey. - Wesfarmers, GrainCorp, Westfield, Alumina, Reject Shop, Dominos Pizza, Noni B, Carsales.com, Primary Healthcare, Fortescue and Brambles post increases in profits but Goodman Fielder, Paladin Energy, JB Hi Fi and OZ Minerals post lower profits. - The David Jones board has backed chief executive Paul Zahra after announcing the resignation of finance director Stephen Goddard just a week before the company is due to report sales for its second quarter. - Ten Network Holdings Ltd has appointed Lachlan Murdoch as non-executive chairman of the company's board, replacing incumbent chairman Brian Long. - Nine Entertainment Co advisors have met with executives from Seven West Media Ltd to discuss the potential sale of debt-laden Nine’s ACP magazines division. - Unions representing thousands of GM Holden employees have won a significant wage increase from the carmaker, one that could see some wages increase as much as 22 per cent by 2014. - Construction company Leighton Holdings says one of its subsidiaries may have made payments and possible bribes related to work in Iraq that potentially breached its code of ethics and broke Australian laws. - Cost of living pressures are rising and it's officially taking its toll as new research reveals five Australian cities are more expensive than New York.

Talking Business podcast chapters: 0:54 - Talking Business news 32:54 - interview Deloitte Access economist David Rumbens on the RBA decision and outlook for the economy. 44:48 - An interview with Elaine Saunders, proprietor of Blamey and Saunders which makes hi tech hearing aids. News overview: Leon and Garry discuss the week’s news in business. This week we hear, among other things, that: . Australian borrowers will have to wait for more interest rate relief after the Reserve Bank surprised pundits by leaving its key rate unchanged. . In fact we might even see rate rises as major lenders actually raise mortgage and business charges as they seek to restore profit margins hit by higher funding costs linked to offshore financial uncertainty. And the ANZ is first out of the blocks, quietly lifting the mortgage rate it charges new customers. . The Australian dollar hit a six month high after the announcement and there is talk that it could go as far as $1.20. It hit 108.12. . Australia's big four banks look to shed more jobs to counter losses in revenue. . Australian construction activity contracted in January for the 20th consecutive month, but the rate of decline is beginning to slow, according to the Australian Industry Group-Housing Industry Association's performance of construction index (PCI). . But job advertisements have posted their largest monthly rise since February 2010 and business conditions strengthened in the last three months of 2011, bolstered by improvements in profitability, employment and trading conditions, according to the NAB. . Australian shoppers kept their cash in their pockets at Christmas in the latest sign that the national economy is cooling off, according to the ABS . Following Gina Rinehart's threat to stop paying insurance that covers the cost of a ransom if her adult children are kidnapped if her three eldest children do not keep details of the family's fortune secret, the billionaire's three eldest children have refused to agree to a suppression order. . Telstra has reported first-half earnings of almost $1.5 billion, a touch below analyst expectations, as a jump in mobile subscribers was countered by a fall in sales at its Yellow Pages Sensis business. . Perpetual chief executive Chris Ryan has left the company after only a year in the role, following a disagreement with the board over the strategy of the wealth manager. . Qantas chief executive Alan Joyce has warned that Qantas will withdraw some services and cut jobs if proposed changes to laws governing its operations are passed. . Spotless has given in to shareholder demands and will allow its private equity suitor to cast its eye over the Spotless business. . The AFL and other major sport bodies held talks with the Prime Minister and senior ministers yesterday to demand changes to the law to protect broadcast rights worth hundreds of millions of dollars.

Leon and Garry discuss how Treasurer Wayne Swan says this year will be at least as tough for the domestic economy as 2011, but Australians should remain optimistic. But a survey shows one in three CFOs is worried about the economy, the broader mood among executives remains subdued and the Future Fund invests in cash as it prepares to wait out a long period of ''subdued economic growth''. ABS figures show Australia’s housing sector is expected to remain soft for a while longer and the Aussie dollar rises to a three month high. Deloitte research shows that Australia’s two-speed economy is about to become further polarised as the investment boom above the "Brisbane Line" moves into overdrive. The banks are under pressure with a report finding that Australian bankers are among the most anxious in the world with a report finding that regulations are saddling them with extra costs and forcing them to change their products and business models and a slowdown in Australia's housing market starting to strain bank balance sheets. All eyes will be on the banks to see if they cut rates next week if the RBA lowers rates. The Federal Government has called for a superannuation roundtable. A study finds that one third of Australian workers plan to return to their studies in order to get a leg up the career ladder. Australia's richest person, mining billionaire Gina Rinehart, has swooped on Fairfax, making her the media group's biggest shareholder at 14.8 per cent and Forbes says she is set to become the richest woman in the world. Sleep disorder equipment supplier ResMed Inc has suffered a first half profit fall but Origin Energy Ltd lifts its first-half revenue by five per cent despite lower production and sales volumes. The price war between supermarket chains began with discounted milk, but it is set to continue its expansion to other goods, with Wesfarmers Ltd-owned Coles announcing that it will cut the cost of selected fruits and vegetables by as much as 50 per cent. Woolworths is beefing up its board with retail experience. Woolworths’ first half sales rise 5 per cent to $29.7 billion but it plans to shut down 100 Dick Smith stores. Coles reports a 7.3 per cent rise in sales and Metcash is set to make a return appearance before the ACCC. In a blow to Telstra, the AFL and NRL, Optus wins the right to record and transmit free to air television over the Internet for consumers. Meanwhile, job losses continue. Telstra, Holden, BHP and Westpac plan to cut hundreds of jobs and Dettol and Mortein will stop production in Australia. Tesltra warns that the NBN strategy could result in price hikes. The Australian Agricultural Company has reported earnings of $58 million before tax, up 40 per cent on last year. Chinese interests are in talks to acquire up to 25 per cent of the massive Browse liquefied natural gas project, as Woodside Petroleum attempts to sell down a chunk of its equity.

Leon and Garry discuss how Australian banks are planning worst-case scenarios in the event of a European Union bust-up. Analysts are paring back their profit growth forecasts for the banks. A taskforce will look at the tax threshold on online purchases. Treasury secretary Martin Parkinson warns that achieving the promised budget surplus in the next financial year will be hard. An NAB survey shows a rise in business conditions. Consumer sentiment slumps, new car sales ease, JB HiFi warns of a 5 per cent drop in earnings and 61 Fletcher Jones employees to lose their jobs. AMP sells a 15 per cent stake to a Japanese company in a $425 million deal that continues the group's push into Asia. Hedge funds now control more than half of Nine Entertainment's $2.7 billion in senior debt. Gina Rinehart, joins the Ten Network Holdings board. Treasurer Wayne Swan sets the clock ticking on plans to give tax relief to loss-making companies. Mining companies Aston Resources and Whitehaven Coal merge to form Australia's largest independent ASX-listed coal company. Qantas Airways is in talks on setting up a premium airline in Asia. The number of home loans expands for a seventh month, fanning hopes that the housing market will improve but housing starts fall 6.8 per cent. The value of personal finance rises 5.2 per cent and commercial loans soar 16.5 per cent. Australia's resource and energy exports are expected to be worth a record $206 billion in 2011/12, 15 per cent up on the previous year. Australia’s corporate bond market will be thrown open to "mum and dad" investors under Federal Government proposals. Telstra plans to release a subscription service next year letting customers stream video games directly to their T-Box. News Ltd chief operating officer Peter Macourt is leaving the media company. China Petrochemical Corp (Sinopec) increases its stake in Origin Energy Ltd and US giant Conoco Phillips' Australia Pacific liquefied natural gas (LNG) project. Wesfarmers will slash the value of its Coregas industrial gas arm before a possible sale of the business. Prime Minister Julia Gillard appoints Greg Combet to take charge of the steel industry rescue package, Kim Carrr is out and Bill Shorten takes over Workplace Relations. Hong Kong investment group Wah Nam International says it wants to buy the 44 per cent share in Brockman Resources it doesn’t already own. Former Gunns Ltd executive chairman John Gay appears in the Launceston Magistrates Court on two counts of insider trading. The Federal Government urges states to privatise power with a report calling on states and territories to deregulate their energy markets. Construction contracting group Watpac Ltd tips a substantial lift in net profit for the full year. Generation Y is more financially savvy than they are given credit for, research shows. Rio Tinto Ltd is free to launch a takeover bid for Canada's Ivanhoe Mines. Orica resumes production of ammonium nitrate at Kooragang Island after the plant was shut down in November following a chemical leak. CHAMP Private equity buys oOh!media for $163 million. ATO figures show the self-managed superannuation fund sector grew twice as fast as any other super asset over the last five years. James Packer says Consolidated Press Holdings won't be getting back into free-to-air television. Amcor and VISY finally come through with $97 million in settlement payments over price fixing. AXA Asia Pacific chief executive Andy Penn becomes Telstra’s CFO. The nation's biggest gas pipeline group, APA, makes a long-awaited $1.8 billion tilt at its main rival, Hastings Diversified Utilities Fund. Shares in junior coal explorer ZYL jump almost 30 per cent. The Queensland government announces the go-ahead of another giant new coal port. Rogue liquidators are put on notice after the government announces new laws to protect creditors from misconduct by corporate undertakers. Bega Cheese takes over Tatura Milk Industries.

RMIT economist Sinclair Davidson reviews economics for 2011 and makes predictions for 2012.

Ron Santiago is the Chief Executive in Australia of Europcar, one of the largest vehicle rental companies in the world. He discusses the opportunities for car rental in Australia and some of the challenges ahead.

Leon and Garry discuss how the Reserve Bank has cut interest rates for the second consecutive month and banks passing it on. Standard & Poor's has warned it could downgrade the triple-A rating of the eurozone debt rescue fund, a day after nearly all governments of the monetary union were given a similar notice. The current account deficit has fallen 15.4 per cent to $5.64 billion in the September quarter in seasonally adjusted terms. Company profits soared to a record high in the year to September. Australia's construction industry continues to decline in November but at a slower pace. The unemployment rate has risen to 5.3 per cent. The ANZ job advertisement series is flat. Australia's big four banks are downgraded by Standard and Poor's. Business confidence falls as worries grow that the European financial crisis will worsen. Australia's services sector continues to contract in November as frugal households save more. Clothing retailer Fletcher Jones is placed in administration. But according to a new forecast by Australia’s leading online commerce enablers, PayPal, eBay and Australia Post, we are set for the busiest ever online shopping week. Hedge funds are set to have a tilt at the Nine Network. The TD Securities-Melbourne Institute monthly inflation index fell 0.1 per cent in November, following a rise of 0.1 per cent in October and September. The Federal Court of Australia has ruled that a class action for overcharging against the ANZ can proceed. Labor has backed union calls to strengthen the Qantas Sales Act. Rio Tinto is to press the Canadian government to allow it to be the operator of its recently acquired high-grade Roughrider uranium deposit in Saskatchewan. Rio Tinto has shipped its 100 millionth tonne of iron ore from the Pilbara to Baosteel under its Bao-HI joint venture. Whitehaven Coal and Aston Resources are negotiating a $4.7 billion merger to create a Gunnedah Basin focused coal group. A massive hole in the federal budget to the tune of $20 billion will become a game-changer for business and company directors as the government uses legislation to enhance the powers of the ATO to grab billions of dollars in extra tax revenue to plug its holes. Finger scanners are being used to monitor workers' hours and lunch breaks. The ABC has been awarded a permanent contract for the federal government's Australia Network broadcasting service. AiG chief executive Heather Ridout joins the RBA board. APN News & Media Ltd expects its second half result to be weaker than last year. The competition watchdog has abandoned its quest to stop the Metcash purchase of the Franklins grocery chain. Virgin Australia's domestic passenger numbers surge by 7.4 per cent in October. Aquila Resources secures WA Government environmental approval for its West Pilbara iron ore project. Almost 500 companies and individuals were convicted in the September quarter for taxation and superannuation offences, an increase of 20%, and 12 people were sentenced to jail. Heavy rains and a dramatic rise in the number of household solar energy panels have helped to boost Australia's renewable energy production in the past financial year. Sales of locally made family cars slump by more than a third last month. Five Japanese power companies have committed to buying $70 billion of liquefied natural gas from Australia. Seven Group Holdings Ltd takes over National Hire Ltd. An Australian businessman, Matthew Ng, has been sentenced in China to 13 years in jail for embezzlement. News Limited is fighting a decision by the ATO to disallow more than $2 billion in alleged currency exchange losses. BHP Billiton has raised gas production at Petrohawk by 12 per cent. Brisbane’s XXXX brewery workers will take industrial action. The resource boom has delivered Western Australia the fastest quarterly state growth ever recorded by the Australian Bureau of Statistics. Foster’s loses its chief executive. CPAS want to improve the reporting of super funds.

RMIT economist Sinclair Davidson talks about Australia’s GDP figures, rising unemployment, the RBA’s decision to cut rates and the European crisis.

Rick Hooper is the CEO of a slightly extraordinary Australian company called Barefoot Power which is dedicated to providing essential, low-cost electrical power to undeveloped countries. As Mr Hooper says: “We are a social enterprise that focuses on providing affordable lighting and phone charging products specifically for low income populations that do not have access to electricity. We believe that energy access is one of the key building blocks of economic development and the first step to alleviate energy poverty. Thus our first area of focus is on the most basic need for clean and affordable lighting. To achieve this, our designs, manufactures and distributes micro-solar lighting and phone charging products that have been designed to target communities in developing countries.”