RMIT economist, Sinclair Davidson - Founder of the ETech group of companies, Geoff Elwood - Talking Business 2012 - Ep12

Summary: Interview with RMIT economist Sinclair Davidson. Interview with Geoff Elwood, founder of the ETech group of companies. Leon and Garry look at issues including: - The International Monetary Fund (IMF) expects the Australian economy to expand by three per cent in 2012, as the threat of a sharp global economic slowdown recedes and activity in the United States rises. - The Greens under former leader Bob Brown could have done a better job of selling their economic vision for Australia, according to the woman who replaced him in the top job. - Research by MYOB has found that economic confidence has sagged to an eight-year low amongst small to medium business operators. More than one quarter (26%) do not expect the domestic economy to improve for at least two years, the highest percentage recorded by the MYOB Business Monitor since the study commenced in 2004. - The Australian economy continues to perform weakly, an industry study has found. The Westpac-Melbourne Institute leading index of economic activity, which indicates the likely pace of activity three to nine months into the future, posted an annualised growth rate of 2.4 per cent in February. - Commercial finance commitments fell in February, while personal lending also declined, according to the Australian Bureau of Statistics. - ANZ Bank has lifted interest rates for its variable home loan customers and small business borrowers despite the central bank leaving the cash rate on hold. ANZ’s decision will see its standard variable mortgage rate rise to 7.42 per cent. - Bank of Queensland (BOQ) says loan arrears are stabilising after a big rise in the costs of bad loans caused a $90.6 million first half loss. BOQ had flagged the result in March, when it launched a $450 million capital raising to strengthen its balance sheet. - The Reserve Bank has indicated wholesale funding costs of the banks were beginning to ease, despite the banking sector's claims that elevated costs were continuing to crimp their profit margins. - Australia's four largest banks are expected to report profits of more than $12 million over the first half of the 2012 financial year, which may raise further pressure on the banking sector to defend any interest rate hikes. - Loss-making small businesses will receive tax relief worth up to $300 million a year, under a recommendation the Treasurer, Wayne Swan, is tipped to adopt in this year's budget. - Foxtel's $2 billion takeover of Austar has cleared its final hurdle and received the tick of approval from the Federal Court. - Westfield is selling out of eight U.S. shopping centers for $1.15 billion, which it will use to reduce debt and boost long-term profitability. - In a move that will make Australia's bricks and mortar retailers shudder, Amazon - the world's largest online retailer - is in the market for a local warehouse in Australia as part of its massive global distribution network.