Talking Business show

Talking Business

Summary: Talking Business is a weekly review of the Australian economy, featuring interviews with prominent business leaders and expert analysis from RMIT academics. The series is produced by experienced journalists Leon Gettler and Garry Barker.

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Podcasts:

 UK House Prices and Executive Pay - Talking Business 2011 Ep 19b | File Type: audio/mpeg | Duration: 1704

Garry and Leon talk about the Euro, UK house prices and executive pay. In Australia, home owners are spared a June interest rate increase, for now. Australian retailers face their worst financial year in two decades. Melbourne’s first Zara store opens. New home loans rise by 4.8 per cent in April. Housing affordability has increased over the past year thanks to sizeable falls in property prices and wages growth, but the proportion of first home buyers falls to a 17 year low. Mineral exploration spending jumps in the March quarter. The unemployment rate remains steady at 4.9 per cent. The 11 billion deal for the National Broadband Network is to be completed next week. Former Victorian premier John Brumby and Howard-era minister Alexander Downer join the Australian board of Chinese telco giant Huawei. The Gillard government suspends all live cattle exports to Indonesia. The humble cheque to go the way of the ill-fated Bankcard, with the banking industry set to review the long-term future of paying by paper. Sigma’s underlying earnings to rise almost 20 per cent. The security of hundreds of thousands of electronic key fobs used by Australian banks and their customers, the Defence Force and organisations such as the Tax Office to access computer systems is in doubt after a cyber attack. Virgin Australia announces a deal with Singapore Airlines, Qantas Airways Ltd top cut a deal with China Eastern Airlines and American Airlines, Qantas chair Leigh Clifford denies there is a rift between himself and CEO Alan Joyce, Qantas expects more fare increases going forward due to higher oil prices, despite the recent hikes in fares and Tiger Airways is under investigation. The International Energy Agency predicts Australia will be the world's largest producer and exporter of liquefied natural gas by 2020. The fourth attempt by Clive Palmer's Resourcehouse mining company to list on the Hong Kong stock exchange has been called off. Former Leightons chief Wal King will not seek a seat on the company's board. Mining veteran Andrew Forrest approaches the court to stay as head of his company. Disgraced former HIH chief Rodney Adler is back in business after three and a half years out of jail. New South Wales records the largest number of new start-ups among the states in the March quarter but is also the state with the greatest percentage of failures, according to a new report. The number of job advertisements in May posts their largest monthly drop in more than two years. A private gauge of Australian consumer prices points to a slight easing in inflation pressures. Iluka shares have soared after the mineral sands producer announced a new price deal with titanium dioxide customers. Constructor and property developer Lend Lease Group says it has won two pieces of work worth a total of more than $1 billion. Queensland's Galilee Basin will become the site of a multi-billion-dollar thermal coal mine planned by Meijin Energy, China's largest private coke producer. The mining industry has established a fund specifically designed to finance court challenges opposing rulings by Fair Work Australia, setting the stage for a confrontation with government over industrial relations. Newcrest Mining says problems at its big Lihir Island goldmine in Papua New Guinea could wipe out $170 million of full-year revenue. The Australian Securities and Investments Commission (ASIC) is set to investigate broking-style services not licensed by the Australian Securities Exchange. The $5.8 billion MTAA Superannuation Fund, one of the country's largest superannuation funds, is under investigation.

 Jonathan Boymal - Labour Force Figures - Talking Business 2011 Ep 19b | File Type: audio/mpeg | Duration: 453

RMIT economist Jonathan Boymal talks about the latest labour force figures and the RBA decision to keep interest rates on hold.

 Jim Valle & Ed Manigold of Connecting Point - Talking Business 2011 Ep 19a | File Type: audio/mpeg | Duration: 1226

Garry talks to Jim Valle & Ed Manigold of Connecting Point, a Melbourne business that provides IT solutions for Education, Corporate, Government, and Pro Video.

 Greece and the Survival of the Euro - Talking Business 2011 Ep 18c | File Type: audio/mpeg | Duration: 1768

Garry and Leon talk about Greece and whether the Euro will survive, falling house prices in Britain and the growing debate about executive pay in the UK. In Australia, the economy has suffered its biggest quarterly contraction since the recession of the early 1990s. National gross domestic product (GDP) fell a steep 1.2 per cent in the March quarter, largely as a result of the flood impact on Queensland coal exports. Export volumes collapse 8.7 per cent in the first quarter, which will subtract a whopping 2.4 per cent from growth, stalling the economy. Australian new home sales fall to levels seen during the global financial crisis. Declining home ownership rates mean a quarter of Australians won't own a home by the time they retire. The value of Australian capital city dwellings falls more than one per cent in the three months to April. Australian residential building approvals fall 1.3 per cent to 13,377 units in April, seasonally adjusted. Flooding in Queensland and Victoria have hit company profits in the March quarter. Company gross operating profits fall 2.0 per cent.The Australian manufacturing sector has contracted for the third straight month in May, weighed down by a near 30-year high Australian dollar. But on the plus side, consumer spending grows at is quickest pace in almost two years in April. And Australia's international trade appears to again be marching on a steady path to recovery. Australian shares have their worst day since June last year, wiping about $30 billion off the market's value. Prime Minister Julia Gillard has ordered a national blitz by senior ministers to sell the government's climate change plans.The federal government's carbon tax would raise about $11.5 billion in its first year, assuming a carbon price initially set at $26 per tonne, according to the government's top climate adviser Ross Garnaut. Unions have won significantly broader rights to legally protected strikes in a precedent-setting decision by the Fair Work Australia tribunal. Prime Minister Julia Gillard faces the threat of widespread strikes by government employees. Home owners are being offered bigger discounts on increasingly large mortgages. Analysts say budget airline Tiger Airways exiting Australia would push up domestic fares by up to 15 per cent. The nation's major retailers are pushing for unrestricted trading hours, in order to compete with overseas internet sites.

 Alberto Posso - Industrial Dispute Figures - Talking Business 2011 Ep 18b | File Type: audio/mpeg | Duration: 747

RMIT economist Alberto Posso talks about industrial dispute figures, how Australia ranks as a place to business and looks at the currency’s impact on trade figures.

 Mark Davidson, Tamburlaine Organic Wines - Talking Business 2011 Ep 18a | File Type: audio/mpeg | Duration: 1035

Garry and Leon talk to Mark Davidson, Chief Winemaker at Tamburlaine Organic Wines in the Hunter Valley.

 Business News Abroad and in Australia - Talking Business 2011 Ep 17c | File Type: audio/mpeg | Duration: 1886

Leon and Garry talk about the prospect of French finance minister Christine Largarde taking the top job at the IMF, the crisis in Europe with Greece struggling with restructuring, turning it into a political problem and China's ratings agency, Dagong, downgrading Britain from AAA to AA+. Meanwhile in Australia, banks have been hammered by an investor sell off as European debt concerns and Chinese data spooked investors. Goldman Sachs has downgraded its investment view on Australia’s banking sector. National Australia Bank Ltd plans to take the pricing war between the major banks to a new level by offering discounted mortgages online. Australia's four major banks will not fund a planned coal-fuelled power plant at Morwell in Victoria, while environment groups plan to take legal action against the plant's approval by the Environment Protection Authority. Arrears on mortgage repayments spiked to a record high in the first three months of 2011, as more Australians struggle with rising costs. But Australia's economy is set to accelerate as exports recover from disruptions caused by extensive flooding early in 2011 and the mining sector continues to boom, according to the OECD. Business investment rose solidly last quarter as firms spent heavily on machinery and building, while spending plans for the next fiscal year were upgraded to a fresh record high in an upbeat sign for future growth. The government's corporate advisory body has urged Canberra to steer clear of another overhaul of executive pay laws, instead calling for improved disclosure. Construction work edged higher in the first quarter, but was below market expectations as non-residential work fell heavily, according to the ABS. There might be signs of recovery with retail sales environment in Australia showing signs of life and retail sales in the US have improved "enormously", according to Westfield Group executives. Goldman Sachs has tempered its growth outlook for China, citing a combination of high oil prices, supply constraints and a recent string of weak data. Australia will get the world’s first floating LNG facility. Royal Dutch Shell has taken the investment decision to make the largest floating structure ever built. Woodside Petroleum's plan to expand its $14 billion Pluto LNG project has been bolstered by another gas find off Australia's west coast. Wesfarmers has downgraded its forecast production at the Curragh metallurgical coal mine to a range of 5.1 to 5.4 million tonnes. The strong Australian dollar and catastrophic weather conditions have led rural services business Elders to post a first-half net loss and lower its full-year profit expectations.

 Sinclair Davidson - Increase In Capital Expenditure - Talking Business 2011 Ep 17b | File Type: audio/mpeg | Duration: 669

RMIT economist Sinclair Davidson talks about the increase in capital expenditure, the mining boom and the employment prospects and participation rate of migrants.

 Mark Birrell, Chairman of Infrastructure Partnerships Australia - Talking Business 2011 Ep 17a | File Type: audio/mpeg | Duration: 1305

Leon talks to Mark Birrell, Chairman of Infrastructure Partnerships Australia.

 The Big Four Banks Get Their Credit Rating Cut - Talking Business 2011 Ep 16c | File Type: audio/mpeg | Duration: 902

Garry and Leon talk about the big news of the week that Australia’s four largest banks had their credit rating cut one notch to Aa2 by Moody’s Investors Service due to their reliance on overseas debt markets. Most Australians face a faster cost of living rise than the official rate of 3.3 per cent. The increase facing working families is 4.9 per cent, the increase facing age pension households is 4.1 per cent, and the increase facing Australians on welfare is 5.1 per cent. The number of home loans approved in March fell to a 10-year low, dragged down by the Queensland floods and by the November rate hike. The Reserve Bank has signaled its intentions to raise interest rates if current economic conditions “continue to evolve as expected”. Worries about rising interest rates and the Federal budget have caused consumer sentiment to fall in May. New motor vehicle sales fell by 3.5 per cent in April, with sales of sports utility vehicles (SUVs) dropping by almost 10 per cent for the month, according to the Australian Bureau of Statistics. ABS figures show that hourly rates of pay rose by a seasonally adjusted 0.8 per cent in the March quarter and 3.8 per cent over the past year. Australia's biggest insurance group QBE has raised $US1 billion in subordinated debt in the US debt markets to strengthen its balance sheet and provide funding for its operations as the spectre of disasters in 2011 continue to haunt the market. One of Australia's biggest fertiliser importers and sellers South Australian fertiliser business Megafert has become the latest company to go into administration. Australia's top 300 listed companies recorded stronger business conditions in the March quarter and expect to perform better than smaller companies in 2012, a bank survey has revealed. The newly created Seven West Media has become the latest media company to issue a profit downgrade as weak consumer confidence continues to eat away at print earnings. Construction company Leighton Holdings has announced a loss of $382 million for the nine months to the end of March. The shares of Sydney based miner Whitehaven Coal's shares have taken a hammering after it revealed it failed to find a suitor seven months after it put itself up for sale and ending speculation that the Chinese were finalising a $US3.74 billion ($3.5bn) bid. James Hardie Industries says an internal restructuring of the company will lead it to cut its contribution to the asbestos injuries fund next year possibly by more than $US11 million. Dulux Group expects to lift full-year profit as rebuilding after Queensland's devastating floods and a new entrant into the "big box" hardware sector boost demand for its products. Macarthur Coal Ltd has raised its net profit guidance for fiscal 2011 to between $240 million and $260 million, from $185 million to $205 million previously. The most significant women's pay decision in nearly 40 years, the workplace tribunal has ruled that gender was a key factor in the low pay of tens of thousands of social and community workers.

 Sinclair Davidson - Banks Getting Downgraded - Talking Business 2011 Ep 16b | File Type: audio/mpeg | Duration: 556

RMIT economist Sinclair Davidson talks about the Australian banks getting downgraded and impact of cost of living increases rising above inflation.

 Phil Smith, CEO of Fletcher Jones - Talking Business 2011 Ep 16a | File Type: audio/mpeg | Duration: 1068

Garry and Leon talk to Phil Smith, CEO of Fletcher Jones, about The Skeleton Project.

 Europe in Crisis - Talking Business 2011 Ep 15c | File Type: audio/mpeg | Duration: 911

Leon and Garry talk about the European crisis. Then to the first budget of the Gillard government which is not as savage as threatened, but if its economic forecasts are right it will get the government's balance sheet back into the black on schedule in 2012-13 anyway. The first Gillard government budget promises sweeping welfare reform, freezes family benefits for the wealthy and increases spending on mental health, while promising to be back in the black with a $3.5 billion surplus in 2012-13 and positions Australia to ride a massive new mining boom. Labor is counting on a second mining boom. The budget also seeks to tackle the skills shortage with a $3 billion, six-year plan to train thousands of new workers. The Budget papers shows that the natural disasters last summer -- including the Queensland and Victorian floods and Cyclone Yasi -- have cost the economy $6.6 billion. The number of people with jobs in Australia fell by 22,100, or 0.2 per cent, in April, according to the latest data from the Australian Bureau of Statistics. The unemployment rate remained steady at 4.9 per cent in April. Executives are increasingly pessimistic about the business outlook heading into the new financial year as they grapple with the spectre of further interest rate rises and increasing fuel costs, amid a two-speed economy. Expectations for sales now at a two year low and a number of key indices have entered negative territory, according to the latest Dun & Bradstreet Business Expectations Survey. Business conditions slipped in April, after recording a solid lift in March, as profitability and trading conditions decreased, according to the National Australia Bank monthly business survey. The number of companies entering insolvency in March reached a near-record high of just under 1500, according to the corporate regulator, with cautious consumers and rising rents believed to be behind the worrying result. Australia's trade balance returned to a very healthy surplus in March, led by a boom in exports. Commonwealth Bank of Australia (CBA) posted third quarter unaudited cash earnings of around $1.7 billion amid "subdued" credit demand and "fragile" consumer and business confidence and a rise in bad home loans. Both Myer and David Jones report falls in third quarter sales, but see hope in winter luring fashion-conscious buyers back into stores. BHP Billiton has urged the government to ''go slow'' on tackling carbon emissions, saying reform of the electricity sector should take priority over the rest of the economy. The spate of profit downgrades expected to flow from the soaring Australian dollar has started, with steel manufacturer OneSteel blaming the currency for a forecast $38 million fall in full-year profit. BlueScope Steel, Australia's largest steelmaker, has announced that it will report a full-year loss as the strengthening Australian dollar cuts the price of competing imports and the value of offshore earnings.

 Sinclair Davidson - The Budget and Unemployment - Talking Business 2011 Ep 15b | File Type: audio/mpeg | Duration: 500

RMIT economist Sinclair Davidson talks about the Budget and the latest unemployment figures.

 Saul Eslake, Program Director at the Grattan Institute- Talking Business 2011 Ep 15a | File Type: audio/mpeg | Duration: 838

Economist Saul Eslake, program director at the Grattan Institute, talks about the Federal Budget and its impact on inflationary pressures.

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