Deloitte Digital leader Frank Farrall - Economist Ian Harper - Talking Business 2012 - Ep33

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