Talking Business

Leon and Garry discuss how a new study suggests Australia has a three speed economy. The RBA signals it might cut rates but inflation figures leave everyone guessing. The Australian Food and Grocery Council says retail sales will be subdued this Christmas. New research from the MYOB Business Monitor reveals Aussie business owners are pessimistic about the Australia’s economy. Australia's largest banks are told by the Australian Prudential Regulation Authority to prepare “recovery plans” to prove they will survive economic downturn. Figures released by National Credit Insurance Brokers show the second highest business default rate for September in eight years. National Australia Bank reports a best-ever profit of $5.22 billion but Ten Network profit collapses by 90.5 per cent. Medical equipment maker ResMed suffers an 11 per cent profit fall. KPMG begins voluntary redundancies. Woolworths increases first quarter sales by 4.9 per cent to $14.597 billion. A new survey finds people will pay off debt than increase their Christmas spending if interest rates are cut. Australian producer prices rise 0.6 per cent. Prime Minister Julia Gillard calls on Commonwealth nations to urge European leaders to solve their debt crisis and vows to give developing countries access to the Australian market free of tariffs. Australia’s debt market rebounds. The Australian Industry Group/Australian Constructors Group Outlook survey finds that engineering and commercial construction expects expecting a boost this financial year. Engineering firms Leighton Holdings and WorleyParsons say Libya remains off-limits. More than 10,000 Qantas passengers to be hit by further flight delays, as negotiations between the airline and ground staff break down. Tourism officials warn the Australian tourism industry will be badly damaged with the Qantas dispute. Australians don't trust Qantas management or their plan to outsource jobs offshore, a survey has found. Woodside Petroleum Ltd increases third quarter revenue by 27 per cent. Treasury is told Queensland coal mines are still struggling with high water levels. Macarthur Coal falls into foreign hands. European regulators give the nod to a drug to treat cystic fibrosis which is good news for Australian-listed company Pharmaxis. Grant Thornton finds that small businesses feel the stresses of skilled worker shortages, backed up by Woodside chief Peter Coleman and Gina Rinehart. Australia uses social media to build the Asian tourism dollar through Jetstar's expanding overseas presence. One in 10 Australian households are in housing stress. Malcolm Turnbull declines to express confidence in the NBN chief. The federal government's planned mining tax hits a snag. Hundreds of millions worth of collateralised debt obligations (CDOs), distributed exclusively in Australia, are on the brink of collapse. Explosives maker Orica chooses former Newcrest Mining chief executive Ian Smith to succeed Graeme Liebelt as chief executive. Super fund members to wait another year or more to recoup money lost during the global financial crisis, according to Chant West. Bendigo and Adelaide Bank chief Mike Hurst warns that banks face a threat from "disruptive business models". WikiLeaks forced to suspend publishing classified files after a funding blockade by Visa and MasterCard. An independent expert says a plan by Rio Tinto Ltd and Japan's Mitsubishi to buy the rest of coal miner Coal and Allied Industries Ltd is fair and reasonable. Australians have a record $636 million unclaimed in bank accounts, insurance policies and uncashed dividend cheques. The Australian Competition and Consumer Commission believes “significant unresolved issues” remain on the agreement to separate Telstra Corporation Ltd’s wholesale and retail arms.

RMIT economist Sinclair Davidson talks about the latest inflation figures, the outlook for interest rates, the European crisis and a pick up in America’s GDP.

Gabby Liebovich is the founder and chief executive of Catch of the Day, Scoupon and other online enterprises. He talks to Garry and Leon about his business, how quickly it is growing and how retail trade in Australia is undergoing a serious revolution, brought on by technology and the near ubiquity of the internet and online traders.

Leon and Garry discuss how Telstra shareholders have overwhelmingly voted for the NBN. Telstra says it will consider a share buy-back. The RBA says it may cut the cash rate if inflation is under control. The European debt crisis goes from bad to worse but RBA assistant governor Guy Debelle says Australia is well shielded from the funding pressures facing Europe's banks. Prime Minister Julia Gillard warns European leaders the time for "muddling through" is over. The taxpayer-owned Future Fund has $2.8 billion worth of assets in the troubled euro zone. The International Monetary Fund warns the Australian government to be prepared to abandon plans for a budget surplus. Major international funds managers warn that Tony Abbott's vow to scrap the carbon tax represents a "political risk". The Australian Federal Police prepares to investigate serious fraud that could arise from carbon pricing. Bank of Queensland's credit rating has been placed on review for possible downgrade after the bank reported a rise in bad debts. Australia’s economy will pick up pace in 2012, according to the Westpac-Melbourne Institute Leading Index. The Commonwealth Bank business sales indicator (BSI) rises by 0.2 per cent. ING Direct finds that consumer confidence is rising and spending could increase. NAB survey shows a drop in business confidence but there are signs the worst could be over. Australians spend big on home improvements and groceries pumping up Coles and Bunnings sales by 8 per cent. Pre-tax profit for Webjet rises 23 per cent to $4.65 million. Australia slips in the World Bank rankings. CSL says it is on track to deliver double-digit profit growth next year despite the high Australian dollar and it announces a buy back. Australian employees are hard-working but rank among the least productive, according to the inaugural Australian Productivity Pulse survey. Thousands of protesters rally across the nation condemning Australia's multi-billion dollar coal seam gas (CSG) industry. Virgin Australia says Honolulu will be added to its growing international network, after signing a codeshare agreement with Hawaiian Airlines. Qantas Airways Ltd cancels domestic flights, with the airline blaming it on industrial action. Prime Minister Julia Gillard says she can't yet intervene in the Qantas industrial dispute. Virgin Australia says it will provide additional capacity to minimise the impact of ongoing Qantas industrial action. Leighton’s offshore division is awarded an additional $US79.85 million ($A78.57 million) contract by Iraq's South Oil Company (SOC). But Standard & Poor’s lowers its credit rating for Leighton. Sonray Capital Markets co-founder Russell Johnson is sentenced to five years in jail for stealing millions of dollars from clients' accounts. ANZ is tapping Europe's jumpy money markets for fresh funds. More than half of Australian mid-market companies believe they are not prepared for continuing fluctuations in business conditions, according to the inaugural Commonwealth Bank Future Business Index. Super Retail Group snaps up market-leading sports goods retailer Rebel Group from Archer Capital for $610 million. New motor vehicles sales fall one-and-a-half per cent, according to the Australian Bureau of Statistics but ABS figures show business lending jumped last month.

RMIT economist Sinclair Davidson talks about Credit Suisse figures showing Australians are the richest in the world, the NBN vote by Telstra shareholders and its impact on taxpayers and the different statistical treatment of unemployment figures by the ABS and NewStart.

Antonette Golikidis is the founder and chief executive of Innoscents, a young and successful startup company in Melbourne specialising in babycare products, many of which is has developed itself, were originally made by Antonette herself but are now produced on large scale. It is a story of how a good idea, good products and good staff have made a home-based company into a very successful business.

Leon and Garry discuss how Julia Gillard's carbon tax is passed by the House of Representatives. Australia will begin talks next month with other countries to link Labor's carbon pricing regime to global carbon markets and the Opposition vows the first thing it will do when it gets into government is get rid of the tax. Meanwhile, a new Australian manufacturing industry group launches a fresh attack on the carbon tax with warnings that one in six of Australia's black coal mines could close prematurely. A survey shows most chief financial officers believe Australia will avoid a recession even though the general climate of uncertainty will hurt confidence. A 2.1 per cent fall in job ads in the latest ANZ jobs ads survey but the federal government's leading employment index rises in October. A survey shows building activity and profits will fall. Economists say the housing sector is stabilising as talk of an interest rate rise wanes and Australians are encouraged to borrow more. Australian business conditions and confidence perk up in September as markets buzz with talk that interest rates will be cut and the Australian dollar retreats below parity. Westpac Bank's index of consumer sentiment shows that consumer sentiment rose unexpectedly again in October, despite market instability. Sydney, Brisbane, Perth and Darwin are expected to have the strongest house price growth of all major cities in the next three years, with capital gains of more than 15 per cent predicted. The Business Council of Australia says Australia risks losing thousands of jobs and enduring decades of mediocre growth unless it confronts a productivity slump. Former BHP Billiton chairman Don Argus warns that Europe's grinding sovereign debt crisis will leave a legacy of higher borrowing costs for big businesses for years to come. The rollout of the national broadband network is behind schedule because of delays in striking a deal with Telstra and issuing construction contracts. Australia Post increases its annual pre-tax profit by 31 per cent, thanks to continued growth in online shopping. Despite a lower profit, discount retailer the Reject Shop plans to almost double its outlets to 400. Consumer electronics chain JB Hi-Fi says trading conditions have been challenging in the three months to September, but that the launch of the iPhone 4S and other new releases will boost sales. Tabcorp Holdings Ltd's first quarter revenue rises by 2.7 per cent compared to the same period last year. Crane operator Boom Logistics Ltd sells Victorian assets for $7.5 million and reports improved first quarter earnings. Gina Rinehart loses her battle to have a dispute with her children mediated behind closed doors. Research shows Asia is the world's top target for companies looking to grow, and many Australian businesses have the financial strength to spread into the region. The ACCC calls for tougher regulation of airports and the new head of Australia's competition watchdog also has major supermarket chains and the telecommunications sector in his sights. Statistics show the proceeds of tourism were worth $72 billion, or about five per cent of GDP, in 2009-10.

RMIT economist Alberto Posso talks about Australia’s low R&D expenditure and looks at labour market statistics.

Melina Scharnroth is the founder, chief organiser and the head of a possibly unique organisation called M.A.D. WOMAN. The MAD in this case has nothing to do with Melina’s sanity but, rather, stands for Making A Difference. The function of the outfit is to connect people with events. The idea began when Melina was working as a journalist in New Zealand and met Eve van Grafhorst, one of the first Australian children to be infected with HIV through a blood transfusion. She became the centre of a huge controversy when parents at her local pre-school demanded she be removed because of their fears she might infect other children. The family moved to NZ where they were welcomed. Melina met Eve who became the centre of a fund-raising campaign for AIDs research. Eve died when she was 11 and Melina came to Australia 15 years ago to work in public relations. “I wanted to find a nice boyfriend, which I ran as a social experiment about what would happen if you got a lot of single men and women into a soup kitchen and involved them in feeding homeless people.” And out of all that has come MAD Woman, a very successful business that these days is capable of connecting almost anyone to almost anything else.

Leon and Garry discuss how the RBA has kept interest rates on hold with expectations that it will cut rates before the end of the year. Markets are in turmoil over the prospect of Greece defaulting. The federal government will set up a business tax review, increase the personal tax free threshold and work with the states to make their revenue raising systems more efficient, in the wake of a two-day tax forum. But experts say don’t expect too much too soon. Wayne Swan moves to fix up Australia’s superannuation system. Debt sales have dropped. Home building approvals rise 11.4 per cent. A study of Australia's mortgage industry shows home lending growth has slowed in the last 12 months. ABS data shows that Australia had a surplus of $3.1 billion in August. Australian manufacturing activity contracts further in September. But then, figures show global manufacturing has shrunk for the first time since 2009. Retail spending rises 0.6 per cent. Still, retailers are bracing for a lean Christmas. Steve Jobs dies, rocking the IT industry. AMP censors a report on corporate governance at News Corporation. The Occupy Wall Street Movement is coming to Australia. Death threats have allegedly been made against Qantas CEO Alan Joyce and other senior executives. Qantas Airways Ltd baggage handlers and ground staff vote to keep fighting for better pay, with strikes possibly increased to 24 hours. Sundance Resources board endorses an improved $1.65 billion takeover offer from China's Hanlong Mining. Support for the carbon tax is falling, according to News Limited newspapers. Liberal front bencher Greg Hunt says the opposition has done its homework on budget savings and "is ready to go" if there's an early election. The RBA is setting up an office in China. Industry super funds consider a recommendation to vote against the re-election of six News Corp directors. A new fee for debit cards at eftpos machines. US oil producer Apache Corporation will develop the Balnaves oilfield off Western Australia. The Australian Government signs an open skies agreement with Japan’s leaders allowing an unrestricted number of direct flights between Australia and Tokyo. Australia's largest class action is back in courts with the case against ANZ bank fees. Low cost airline Tiger Airways forecasts a large loss for the September quarter. Aston Resources has sold another stake in its flagship Maules Creek coal project to a Japanese-backed company for $350 million to help fund development of the project. A second credit-rating agency downgrades National Australia Bank's British banking arm, amid doubts over whether the Australian lender was planning to offload all or part of Clydesdale Bank. Seven West Media Ltd moves to slash costs, calling in management consultants to reduce spending at the group as it moves to maintain profit margins in a weak advertising environment.

RMIT economist Jonathan Boymal talks about the RBA’s decision on interest rates, retail figures, trade data and dwelling approvals.

Shawn Smith is the founder and chief executive of Hypnotic Zoo, a web design company based in Point Cook. He deals mostly with small to medium businesses that are in most cases making their first forays into the online world. He talks about the challenges, for them and his team, in bringing in a successful result.

Leon and Garry discuss how next week's tax forum will include a new tax break. But Finance Minister Penny Wong warns we’ll need more tax. Business groups will push for the GST to be increased, even though the government has ruled that out. Former treasury secretary Ken Henry will help prepare a white paper on Australia’s involvement with Asia at a time when fewer Australians are learning mandarin. Treasurer Wayne Swan says the government remains committed to returning the federal budget to surplus but outgoing Commonwealth Bank chief executive Ralph Norris has warned the federal government to abandon that commitment. Future Fund chairman David Murray blames Australia's politicians for the pessimistic mood of citizens. The number of job vacancies in Australia rose 3.2 per cent in the three months to August. A G20 sub-committee report shows that a lack of competition in Australia’s banking sector poses systemic and “moral hazard” risks. Figures shows smaller lenders are now more popular than the big banks. Westpac reduces the interest rate on its fixed home loans, followed by ING Direct, St George and CUA. Myer chief executive Bernie Brookes believes the struggling retail market will not recover for at least six months. The Australian dollar falls to a 10-month low. Woolworths expects to lift net profit in the current year but admits retailers face significant challenges. Childcare and nanny services should be tax deductible to help women return to the workforce, high ranking female executives say. WA's mineral and resources wealth reach record levels. European Central Bank board member Lorenzo Bini Smaghi says that Australia should use international forums to pressure European politicians to act with more speed in attempting to avoid a global downturn. Collateralised debt obligations (CDOs) exposed to United States mortgage insurer PMI Group are on the brink of imploding and put tens of millions of dollars of Australian investments at risk. Local law firm Blake Dawson, will merge its Asian practice, and possibly all operations, with UK law firm Ashurst. US energy giant Chevron signs off on its $US29 billion ($A29.63 billion) liquefied natural gas (LNG) project in a West Australia's Pilbara region. Wesfarmers pockets a handy $90 million profit on the sale of part of its coal interests to Chinese miner Yanzhou Coal Mining. Rio Tinto Ltd lifts its stake in Ivanhoe Mines to 49 per cent. The Mongolian government wants to take a larger stake in the Oyu Tolgoi copper and goal mine managed by Rio Tinto. BHP Billiton plans to roll out a remote operations centre for the Pilbara.

RMIT economist Sinclair Davidson talks about the big issues at next week’s Tax Summit.

Garry and Leon talk to branding expert Michelle Hogan of Brandology.