Talking Business

Theos – Australian Country Manager - talks about why oDesk is setting up in Australia Interview with PwC economist Jeremy Thorpe on the pension age issue Leon and Garry talk about issues including: · China manufacturing strengthening but home prices declining. In the meantime, good signs for US manufacturing and there is a slight drop in Eurozone unemployment · New data showing Australian banks are extending credit to housing but not plant and equipment, indicating the lop-sided nature of the post-mining boom economic transition. · Businesses reacting negatively to the Budget with some worrying signs for the Australian economy. · Nonetheless the economy is growing at a healthy 3.5 per cent, which is why the RBA has kept interest rates on hold. Relevant links: https://www.odesk.com/o/jobs/ http://www.budget.gov.au/2014-15/index.htm

- Interview with Hakon Wium Lie, chief technology officer of Opera Software - Interview with economist Saul Eslake - Leon and Garry discuss issues including: · Good signs of recovery in the US with consumer confidence increasing slightly in May, with hopes for better job opportunities and higher wages rising. Also, the IMF declares that Spain's economic recovery is here to stay, hailing a return to growth and job-creation despite the nation's 26 per cent unemployment rate · While voters are maintaining their rage about the Budget, the Abbott government remains open to negotiating some of its budget measures with the Senate, but Treasurer Joe Hockey has all but ruled out compromise on a GP co-payment. Labor meanwhile says it will oppose a $2.6 billion budget cut that pauses the annual increase in family tax benefits. All this means that the Abbott government is facing an early budget shortfall because current senators as well as members of the future Senate, starting on July 1, say they will not support key measures in it. · The iron ore price remains below $US100 as analysts deliver a largely bleak outlook for the commodity with Credit Suisse saying it could drop to $87. As a result, BHP Billiton and Rio Tinto caution that the local coal industry is set for further pain, with more job losses and mine closures tipped before the end of the year. - Relevant links: http://www.opera.com/ http://www.budget.gov.au/2014-15/index.htm

Leon and Garry discuss issues including: · OECD data showing that leading output in advanced countries has slowed down overall · China’s state-owned companies rediscovering their appetite for Australian miners, with the latest multi-billion-dollar wave of acquisitions reflecting the expensive lessons of past deal failures. · A complete analysis of the aftermath of the Budget with the government falling back in the polls, consumer confidence crashing, Tony Abbott holding firm while the states want to inflict political pain, and questions about the future of superannuation Relevant links: http://www.careerone.com.au/

Interview with Adam Theobald, founder of Beat the Q Interview with economist Stephen Koukoulas Leon and Garry talk about issues including: · China’s economy slowing in April as sales and investment in the country’s crucial real estate sector plunge and China's president telling the country to get used to slower growth, damping expectations of a new stimulus. · The Bundesbank, which has for years been defined by its conservative opposition to the ECB's emergency measures to combat the eurozone's debt crisis, now fully engaged in the fight against super-low inflation in the eurozone using monetary policy tools. That could include introducing negative interest rates · A complete analysis of the Abbott Government’s first Budget

Interview with James Wakefield, founder of InStitchu Interview with RMIT economist Sinclair Davidson Leon and Garry discuss issues including: · Activity in China's manufacturing sector improving slightly in April, but remains in contraction while the European Commission flags a gradual recovery in the Eurozone · In Australia, consumer confidence is falling in the lead-up to the Budget as the Organisation for Economic Cooperation and Development has warns the Abbott government against large confidence sapping spending cuts or tax hikes · With mixed economic data, the RBA keeps interest rates on hold but ABS stats tell us that household debt is now at more than $1.8 trillion

Interview with Stephen Langsford, CEO and founder of Quickflix Interview with economist Nicholas Gruen Leon and Garry discuss issues including: · The International Monetary Fund issuing a warning about China's private debt. It released a report citing "rising vulnerabilities" in China's financial system, including lending outside traditional banks. At the same time, German economic growth is heading for a significant slowdown in the second quarter of 2014 and businesses across the 18 countries that share the euro have lost some of their recently recovered optimism during April · Prime Minister Tony Abbott saying he will make it tougher for new retirees to qualify for the age pension after the next election and has given his strongest signal yet that he will target Medicare in his first budget. And he won't confirm whether a new debt levy is on the budget table but insists a temporary tax hike wouldn't be a broken promise. · The levy causing uproar in the business world and the Liberal Party, forcing Abbott to back down on the generosity of his signature paid parental leave scheme, dropping the maximum payment for six months from $75,000 to $50,000, blaming it on the “budget emergency” created by the former Labor government

Interview with Bernard Salt Interview with economist Saul Eslake Leon and Garry discuss issues including: · Tips that Russia could slide into recession in the second quarter of 2014 after the economy contracted by around 0.5 per cent in the first three months of the year. At the same time, Japan's trade deficit quadrupled on-year in March to $US14 billion as a weak yen pushed up post-Fukushima energy bills and other import costs. · The number of households dipping into their savings is at a near 20-year high and the proportion of households drawing on their savings in March reach levels we've never seen in the last 20 years · Tips that the pension age will be pushed out to 70 in next month’s budget and may come into effect as early as 2029 under a razor-gang proposal to accelerate Labor’s plan to raise the pension age from 65 to 67

Interview with Abigail Forsyth, founder and CEO of KeepCup Interview with economist Steven Koukoulas Leon and Garry discuss including · The Eurozone central bank hinting at going into territory where no central bank has gone before and creating negative interest rates while the World Trade Organisation says global trade will grow at double the rate it did last year at 4.7 per cent · The Abbott government facing a tough battle to ease foreign investment restrictions for the new freed trade agreements · Reaction to the government’s plans to change the eligibility rule for pensions so that people qualify at 70 instead of 65

Interview with Gus Hashem from Diamond Emporium, an online jewellery business Interview with economist Francis Grey on China Leon and Garry discuss issues including: · Forecasting bodies saying that the eurozone economy is expected to recover steadily in the first quarter of this year with growth of 0.4 per cent pulled by industrial production, but then flag slightly. At the same time, the IMF is saying global growth will be slightly lower than forecast in January · An analysis of the Free Trade Agreements negotiated by the Abbott Government with Japan and Korea · Woolworths swooping on David Jones and the Abbott government still keeping Australia guessing on when it will release its Commission of Audit reports but there’s speculation that the age pension will be targeted.

Interview with economist Stephen Koukoulas Leon and Garry talk about issues including: · China’s five biggest banks collectively writing off RMB59 billion ($US9.5bn) in debts that could not be collected in 2013, representing a 127 per cent increase on the previous year. At the same time, activity in China's manufacturing sector slowed for the third straight month in March · Australia's standing as a global trade competitor has tumbled with exporters dogged by regulatory barriers. · The Reserve Bank of Australia leaving the official cash rate on hold at 2.5 per cent, as widely expected but economists are tipping a cash rate at the end of 2015 of 3.25 per cent as Treasurer Joe Hockey warns of deep cuts in his forthcoming Budget.

Interview with Tony Nicholson, CEO of the Brotherhood of St Laurence on youth unemployment Interview with RMIT professor Sinclair Davidson on the GST Leon and Garry discuss issues including: · Businesses in the 18 nations that share the euro cutting their prices at the sharpest pace since July, German business confidence slumping in the wake of the Ukraine crisis and weak readings from China’s manufacturing sector · A Deloitte report outlining the key areas of growth for the Australian economy in the post-mining boom · Finance Minister Mathias Cormann temporarily freezing the controversial roll-back of Labor’s future of financial advice laws after months of criticism, less than a week after besieged colleague Arthur Sinodinos stepped down from the portfolio.

Interview with economist Francis Grey on the economic fallout from the Ukraine crisis Leon and Garry talk about issues including: · China loosening its grip on its currency and accelerating exchange rate reforms while US industrial production rebounds in February. At the same time however, wheat prices are rising on the back of events in the Ukraine · The Abbott government planning changes to speed up an FTA with China and a fight is looming with a proposed $670 million restructuring of the GST which will leave Victoria and WA worse off. · With Chant West saying that the average Australian superannuation fund has posted a return of more than 10 per cent in the first eight months of the financial year, super funds are now under pressure to merge and are positioning themselves as better savings vehicles than banks.

Interview with Bryce Dunn, Senior Vice President, Global Product Management at recruitment firm PageUp People Interview with PricewaterhouseCoopers economist Jeremy Thorpe Leon and Garry talk about issue including: · China recording an unexpected trade deficit of $US22.98 billion ($A25.37bn) in February and its credit growth slowing dramatically. This has a big impact on markets sending iron ore prices and Chinese steel futures tumbling, hitting companies like Rio Tinto and BHP Billiton tumbling. The steep decline in the iron ore price could add as much as $10 billion to the existing $123bn of deficits faced by the Abbott government over the next four years. · The Australian media is in for a shakeup with Virgin Group looking to team up with Australia’s major commercial television networks to beat the expected arrival of US behemoth Netflix and communications Minister Malcolm Turnbull flagging changes to the media ownership rules. · German builder Hochtief AG planning to spend over $1 billion to lift its majority stake in Australia's Leighton Holdings Ltd. Regulator ASIC is looking at Leighton following a price spike that took place before majority shareholder announced a $1.155 billion share buying offer which sent the shares up 11.4 per cent while Standard and Poor’s places Leighton on negative watch

Interview with economist Stephen Koukoulas Leon and Garry discuss issues including: · China's manufacturing growth falling to an eight-month low in February, reflecting further weakening in the world's second-largest economy but China's government pledges to deliver economic growth of about 7.5 per cent this year · US manufacturers in February rebounded from a weather-hobbled January although production contracted but the US president announces his 2014 budget which suggests the US economy will continue to grow. His forecast is for GDP to grow by 3.1 percent versus 1.9 percent in 2013. · US Secretary of State John Kerry bluntly warning Russia it risks losing its place among the prestigious Group of 8 developed nations over its deployment of troops in Crimea but Russian president Vladimir Putin quells fears that Russia will go to war · Chinese investors now the largest source of foreign investment in Australian property in 2012-13, according to figures from the Foreign Investment Review Board · Federal cabinet agreeing to remove the ­foreign-ownership restrictions on ­Qantas Airways, opening the way for a split of the airline’s domestic and international arms, as well as a protracted political fight. Qantas Airways would still face national interest tests even if the laws relating to majority Australian ownership were repealed · Qantas Airways considering legal action against Virgin Australia ­Holdings, claiming the smaller airline’s ­foreign ownership levels breach rules for Australian-based international carriers. · Qantas managers, including chief Alan Joyce are expected to appear before a Senate inquiry into the airline

Interview with Rosh Ghadamian, co-founder of Rozibaby, an online pram business creating prams that are highly customisable, affordable, top quality and sold entirely online. Interview with RMIT economist Sinclair Davidson Leon and Garry discuss issues including: · Moody's raising Spain's sovereign credit rating by one notch, to Baa2 from Baa3 , citing progress in reforms to put the economy on a more sustainable track. And with business confidence in Germany reaching the highest level in more than two years according to data compiled by the Ifo Economic Institute, the European Union has upgraded its economic forecasts · But the EU still faces deflation · Data showing United States consumers growing less confident in the US economy · The world's top economies at the G20 in Australia agreeing on a plan to accelerate the pace of global growth by more than two per cent over the next five years · David Jones preparing to start talks with rival department store chain Myer · Treasurer Joe Hockey flagging to raise the retirement age · Warnings that the Australian dollar could face a "benign collapse" to US66¢ by the end of next year amid falling commodity prices, declining mining investment and reduced government spending.