Tesltra warns that the NBN strategy could result in price hikes - Talking Business 2012 - Ep01

Summary: Leon and Garry discuss how Treasurer Wayne Swan says this year will be at least as tough for the domestic economy as 2011, but Australians should remain optimistic. But a survey shows one in three CFOs is worried about the economy, the broader mood among executives remains subdued and the Future Fund invests in cash as it prepares to wait out a long period of ''subdued economic growth''. ABS figures show Australia’s housing sector is expected to remain soft for a while longer and the Aussie dollar rises to a three month high. Deloitte research shows that Australia’s two-speed economy is about to become further polarised as the investment boom above the "Brisbane Line" moves into overdrive. The banks are under pressure with a report finding that Australian bankers are among the most anxious in the world with a report finding that regulations are saddling them with extra costs and forcing them to change their products and business models and a slowdown in Australia's housing market starting to strain bank balance sheets. All eyes will be on the banks to see if they cut rates next week if the RBA lowers rates. The Federal Government has called for a superannuation roundtable. A study finds that one third of Australian workers plan to return to their studies in order to get a leg up the career ladder. Australia's richest person, mining billionaire Gina Rinehart, has swooped on Fairfax, making her the media group's biggest shareholder at 14.8 per cent and Forbes says she is set to become the richest woman in the world. Sleep disorder equipment supplier ResMed Inc has suffered a first half profit fall but Origin Energy Ltd lifts its first-half revenue by five per cent despite lower production and sales volumes. The price war between supermarket chains began with discounted milk, but it is set to continue its expansion to other goods, with Wesfarmers Ltd-owned Coles announcing that it will cut the cost of selected fruits and vegetables by as much as 50 per cent. Woolworths is beefing up its board with retail experience. Woolworths’ first half sales rise 5 per cent to $29.7 billion but it plans to shut down 100 Dick Smith stores. Coles reports a 7.3 per cent rise in sales and Metcash is set to make a return appearance before the ACCC. In a blow to Telstra, the AFL and NRL, Optus wins the right to record and transmit free to air television over the Internet for consumers. Meanwhile, job losses continue. Telstra, Holden, BHP and Westpac plan to cut hundreds of jobs and Dettol and Mortein will stop production in Australia. Tesltra warns that the NBN strategy could result in price hikes. The Australian Agricultural Company has reported earnings of $58 million before tax, up 40 per cent on last year. Chinese interests are in talks to acquire up to 25 per cent of the massive Browse liquefied natural gas project, as Woodside Petroleum attempts to sell down a chunk of its equity.