Economist Nicholas Gruen - RMIT Pro Vice-Chancellor Business and Vice-President, Professor Ian Palmer - Talking Business 2012 - Ep25

Summary: Interview with RMIT Pro Vice-Chancellor Business and Vice-President, Professor Ian Palmer Interview with economist Nicholas Gruen Leon and Garry discuss issues including The International Monetary Fund stepping up its warnings on risks to the global economy, especially from Europe, as it trim its growth forecast for the rest of the year The European Union's bailout fund working on a 100 billion euro ($A121 billion) package for Spanish banks Hundreds of firemen, police and nurses demonstrating against Spain's latest austerity plan, a day after thousands hit the streets in protest The Chinese government reporting its lowest quarterly GDP growth in three years, with second-quarter GDP growth at an annual rate of 7.6 per cent The International Monetary Fund cutting its growth forecast for China's slowing economy and says a "hard landing" is still possible Americans cutting their spending at retail businesses for a third straight month, with a weak job market making consumers more cautious Federal Reserve Chairman Ben Bernanke admitting that US economic data has been "disappointing" and that a future reduction in unemployment would likely prove "frustratingly slow" The Australian dollar reaching a six week high But worrying news with three in every 10 households with a home loan are suffering mortgage stress, the number of Australian businesses paying their bills on time falling markedly during the June quarter, as businesses struggle with reduced cash flow, a Macquarie senior economist warning that Australia's unemployment rate could top six per cent in 2013, saying that the country's jobless rate is rising faster than official figures indicate, Ford sacking 440 workers and Asciano foreshadowing job cuts, the sharp downturn in Australia's housing construction sector showing little sign of respite with the Housing Industry Association forecasting total housing starts in 2012 to be 11.5 per cent below 2011, sales of new motor vehicles in Australia falling in the month of June and missing expectations, Bank of Queensland getting downgraded, business lending slumping In May, Australian international merchandise imports falling in June and research showing that Australians are more likely to put money into their savings accounts than treat themselves to luxury purchases over the next year At the same time, the Westpac/Melbourne Institute Leading Index is telling us that the pace of economic growth is likely to improve in the second half of 2012 and into 2013 The head of the government’s tax review Ken Henry warning that Australians will face higher rates of GST to help repair the nation's finances as the population ages More Australian workers saying they feel dissatisfied with their jobs and are less trusting of their employers than during the global financial crisis The mining boom making many of us rich – especially those of us living out west. Five of the country's top 10 richest towns are located in Western Australia with Dampier taking the top spot with 22 per cent of its residents earning more than $4,000 per week The Prime Miniser Julia Gillard signalling that industrial relations as the big issue in the lead-up to next year’s election.