CEO of Next DC, Craig Scroggie - RMIT economist Jonathan Boymal - Talking Business 2012 - Ep27

Summary: Interview with Craig Scroggie, CEO of Next DC, Australia’s largest data base company Interview with RMIT economist Jonathan Boymal Leon and Garry discuss issues including The leaders of Germany and France adding their weight to the battle to preserve the European single currency, issuing a joint statement promising to do everything they can to stop the 17-country bloc from breaking up. Eurostat, the European Union’s statistics office, revealing that the number of people unemployed across the 17 countries using the Euro has hit a record high in June. US growth slows to a trickle, just 1.5 per cent in the second quarter as consumer spending slows down. French bank Natixis warning that wage increases are threatening China’s competitiveness and that labour costs there will match those of the United States within four years. The Australian dollar moving to a four month high, boosted by Switzerland’s central bank foreign exchange reserves A global survey highlighting competitiveness problems for businesses in Australia has ranked this country twelfth among 51 surveyed nations Automotive sector players expecting industry giant Ford to cease production in Australia by 2016, with suppliers already factoring such a move into their business plans A majority of Coalition and Labor voters supporting Prime Minister Julia Gillard’s stance against raising the GST or broadening thre base to include health, education or food. An Age/Nielsen poll finding that most Australians say the carbon price’s introduction has made no difference to them. In a worrying sign of the slowdown in the mining sector, BHP Billiton chief executive Marius Kloppers has said he sees little reason to expect a “near-term” improvement in operating conditions due to a faster-than-forecast slowdown in China and growing European instability. This casts further doubt on the miner’s spending plans oln major projects. The proposed $30 billion expansion of BHP’s Olympic Dam mine is expected to be the first victim of the changing economic outlook. Miner Ivanhoe Australia’s tumultuous year continuing as it announces plans to slash exploration spending by half. The Rio Tinto-controlled company will reduce exploration expenditure to about $15 million a year from nearly double that last year. Rare earths miner Lynas Corporation warning of slowing demand from Asian economies, largely due to subdued macroeconomic conditions in China and falling rare earths prices. A report from Newport Consulting showing that the growing uncertainty surrounding numerous major planned resources projects is adding up to huge potential losses in jobs, investment and growth, with one survey highlighting uncertainty that could jeopardise nearly $200 million worth of projects. This follows on from warnings that the mining boom is set to end in two years’ time.’ On a tour of China, NSW Premier Barry O’Farrell saying that Chinese state-owned companies would be able to bid on asset sales that will be outlinined in an infrastructure blueprint, due to be released in September. At the same time, China’s ambassador to Australia calls for a deepening of the relationship between China and Australia, saying the two countries to include finance, infrastructure and agriculture.