Talking Business

Leon and Garry talk about Foster’s falling into foreign hands, getting taken over by SABMiller for over $12 billion. The Westpac/Melbourne Institute Leading Index says Australia's economy is expected to slow in the second half of the year. The Reserve Bank signals it is well-placed to cut interest rates if global economic conditions continue to deteriorate. But it might not happen because the RBA says Australia is not immune to overseas events. Genworth Financial finds that a quarter of Australian homeowners experience mortgage stress. The International Monetary Fund has slashed economic forecasts for Australia. Rio Tinto chief executive Tom Albanese said demand for commodities has softened. Treasurer Wayne Swan is named Euromoney's Finance Minister of the Year. The beginning of a recovery in consumer spending may be in sight, with debit and credit card transactions recording its lowest fall in four months and the strongest consumer spending in half a year. David Jones profit falls 1.5 per cent. Kathmandu reports a 55 per cent rise in profit. Catch of the Day launches a new site dedicated to selling non-perishable groceries. The local arm of Rupert Murdoch's News Corp will be rebranded "News Australia". The Government releases new economic modelling of how a carbon price would affect the prices of items like milk, cheese and beer. An economist warns the political stand-off over the carbon tax is increasing the cost of funding new power stations. There’s pressure on the government to increase the GST from the OECD. Prime Minister Julia Gillard flags changes to the business tax system. Premier Investments’ reports a 50 per cent fall in profit. Premier Investments boss Mark McInnes says shopping centre landlords are gouging tenants. The former Colorado Group emerges from administration as a new retailing group. Australia’s richest woman Gina Rinehart becomes richer after her company, Hancock Prospecting, sells assets to Indian conglomerate GVK for $1.2 billion. The chief executive of bionic ear-maker Cochlear receives a pay rise of nearly 17 per cent in 2011. CBA announces an executive reshuffle. Business customers are feeling less satisfied with their banks, according to a new survey. Government documents show that raising petrol prices will do more to curb carbon pollution than mandatory emissions standards for cars. Former Fairfax Media chief executive Brian McCarthy walks away with $3.17 million. A former Citibank manager is banned from providing financial services for life. Macquarie Bank sacks staff. Gunns remains in talks with potential investors in the $2.5 billion Bell Bay pulp mill in Tasmania.

RMIT economist Alberto Posso talks about the world economic outlook and changes to the way the ABS looks at inflation.

Barry Westhorpe is chief executive of the CEO Institute of Victoria, an organisation representing chief executives of the many small to medium sized enterprises bases in Melbourne. He talks here about the challenges faced by these companies in the continuing global financial turmoil and explains the results of a survey conducted by his institute that shows CEO confidence at a fairly low ebb.

Leon and Garry discuss how an NAB survey has found business confidence falling to levels last seen in 2009. A CBA survey finds that many Australians believe recent natural disasters, like the Queensland floods, have hurt their personal finances, even though that may not be the case. Consumer sentiment rises 8.1 per cent and inflation is revised down. Australian dwelling commencements fall 4.7 per cent. The IMF says the RBA can afford to sit tight on interest rates. Australia experiences a sharp rise in the number of business failures during the June quarter, putting it alongside several weakened European nations. Deloitte warns things will get worse for retailers. Research shows Australians shop online more regularly than people in most other countries. Petrol prices reach a four month high. The government introduces its carbon tax legislation. Research shows that companies that regularly measure, report and reduce their carbon emissions are more likely to outperform their competitors. The federal Treasury warns the government that the GST is becoming increasingly inefficient and loses about $15 billion a year. Steelmakers condemn the Reserve Bank of Australia and federal government over interest rates and Australian dollar. PricewaterhouseCoopers finds labour productivity drops to its second lowest level in 15 years. The new look ACCC says it will be “all over” the NBN. Telstra chief executive officer, David Thodey, urges investors to put politics and emotion aside when they vote on an $11 billion NBN. Telstra considers a buyback to appease restive shareholders. Economists warn that key aspects of the NBN business case are anti-competitive. The communications authority tells telecommunications providers to lift their game over call plans and when dealing with customer complaints. Business groups have urged the federal government to discuss industrial relations reforms at its upcoming jobs forum. The competition watchdog has put the supermarkets on notice over buying Franklins stores. Tiger Airways names Andrew David, a former senior executive at Virgin Blue, as the new boss of its troubled Australian operations. The federal government has lowered the level of insurance on bank deposits that it announced during the global financial crisis. Medical device maker Cochlear Ltd announces a recall of its line of its unimplanted Nucleus CI500 implant range, after a recent increase in the failures in its CI512 product. Australia's trade surplus balance is virtually unchanged in July. Increased production at WA mines has significantly contributes to a record $175 billion worth of resources and energy exports from Australia. Total personal finance commitments rise 0.5 per cent in July. Thai coal giant Banpu launches a $447 million play for Perth-based explorer Hunnu Coal. Westpac chief Gail Kelly says says she doesn't support forcing companies to have more women on their boards.

RMIT economist Jonathan Boymal talks about housing starts, CPI adjustments and the changing labour market.

Jason Wyatt is the chief executive and co-founder of Bike Exchange, a Melbourne-based shopping site for everything and anything to do with cycling, including cycling holidays in any of 58 countries. He explains how he moved from being financial controller of Holden’s South Australian division to running his own thriving online business.

Leon and Garry discuss how Australia’s GDP climbs 1.2 per cent in the June quarter, up from the 0.9 per cent contraction in the March quarter. The RBA keeps interest rates on hold at 4.75 per cent but the market continues to bet the RBA will cut rates while retailers say the rate cut can’t come soon enough. Australian construction activity falls to its lowest level in almost two and a half years, home loans grow 1 per cent in July, less than expected, advertising revenue for commercial radio drops 0.22 per cent and a Sensis survey shows small business profitability is at a record low in Australia. Nielsen finds that Australian consumer confidence falls to its lowest level in two years. Australia’s unemployment rises to 5.3 per cent. Job advertisements in Australia fall again in August, the fourth drop in five months. A survey finds that one in four people are unable to meet living costs. Householders with credit and debit cards are spending an average of 38 per cent more on goods and services than they did in 2003-04, Farmers’ confidence falls to its lowest level in more than two years. Australia’s current account deficit narrows to $7.42 billion in the second quarter of 2011. The World Economic Forum finds Australia's world ranking in competitiveness slid to 20th place, from 16th last year. Australian companies will have to refinance over $A100 billion in debt over the next 18 months. A private sector measure of inflation records its first fall in almost two years. The ABS finds that company gross operating profits rose 6.7 per cent to $67.54 billion in the second quarter of 2011. An ABS study finds that fuel and power bills eat up no more of our wallets than they did six years ago. Australian banks will need to meet new global capital rules ahead of the internationally agreed timetable under proposals. The Australian Industry Group calls on the government for more flexible workplace rules. Former BHP Billiton chairman Don Argus criticizes the Gillard government for its failure to tackle issues like productivity. Rio Tinto attacks the government over the carbon tax. The ACTU blames employers for low productivity. SABMiller accuses Foster’s of making misleading and deceptive statements in presenting its annual profit. Toyota and the unions are locked in an industrial dispute. A decade long study of ASX-100 companies has found that while their share values increased by just 31 per cent, their chief executive’s pay packages more than doubled over the period. The Australian Retailers Association wants to cut shop workers’ penalty rates. The Productivity Commission rejects retailers calls to impose a GST on online sales. The Alcohol Education and Rehabilitation Foundation wants to change the tax on wine to reduce abuse. Research shows that Australia's major institutional superannuation funds grew at more than double the pace of their global peers last year. The mining industry comes out with a report showing it paid more tax than the government claims.

RMIT economist Sinclair Davidson says the latest GDP figures are a mixed bag, and talks about the latest unemployment figures, productivity and R&D.

Curve Tomorrow, a young company dedicated to identifying and evaluating innovative ideas in Australia, is led by three young men, Vikash and Avinish Rugoobur and Mahinder Jaimangal. Avinish and Mahinder formerly working with Dr Laurie Spark in his legendary Holden Innovation Centre at Fishermen’s Bend in Melbourne and Vikash was with IBM in the US, India and Australia. Dr Spark, now chief technology officer for the EDay Life electric car soon to go on sale in Australia, is an alumnus of RMIT and, now, a member of the professorial team in engineering. Avinish, Mahinder and Vikash speak to us about idea, innovation and how they need to be handled in the modern technological world.

Leon and Garry discuss how Australia is now officially a two speed economy according to fund managers. The federal government has been urged to hold an inquiry to help stave off a threat to manufacturing. Manufacturers are five times more likely to struggle to pay bills than other businesses. Growing rifts are emerging between the federal government and the opposition over the future of manufacturing. Pressure is growing on the Federal government for a review of workplace laws. BIS Shrapnel says investment in roads, rail, ports and education is necessary to prepare Australia when the mining boom ends. Australian chief executives are much less confident about the economy than they were this time last year. ABS data shows Australian households are effectively becoming poorer. Australians cut back on personal borrowing for a fourth straight month in July while annual growth in home loans was the slowest on record. Fears of a looming domestic slowdown have compelled a rising number of Australian companies to expand into emerging markets. Woolworths' chief executive Michael Luscombe expects a sharp decline in its annual profit growth in fiscal 2012. Australian dwelling approvals rose one per cent in July, seasonally adjusted, according to the Australian Bureau of Statistics. House prices are on the slide. New home sales fell by 8% in July. The goods and services tax will have to climb above 10 per cent says a Henry Review architect. Former Tabcorp boss and one-time ANZ executive Elmer Funke Kuppe has been appointed to take charge of the Australian Securities Exchange. Gold mining companies respond to record-high gold prices with a big increase in gold production. Gold miner Resolute Mining has swung back to profitability in 2010/11. Harvey Norman’s net profit increases 9 per cent to $252.26 million. QR National reports a net profit of $349.5 million. More retailers will close down according to a new survey. But IKEA is upbeat as it prepares to open a huge Melbourne store. Tiger Airways Australia loses another chief executive. The Australian Competition and Consumer Commission (ACCC) is seeking an injunction against energy broker Energy Watch. A Macquarie Group-led consortium of international investors has made a $1.74 billion takeover bid for Charter Hall Office REIT. Count Financial doubles its profit to $52 million in 2010-11. Meanwhile, Commonwealth bank of Australia Ltd moves to buy Count Financial Ltd for $373 million. Goodman Fielder reports a full-year net loss of $166.7 million. Centro Properties Group's underlying annual profit falls 92 per cent to $14.6 million. Centro directors escape being fined or banned. A $2.17 billion takeover offer by a group funded by pension schemes in the UK, Netherlands, South Korea, China, Denmark, New Zealand and the US for toll road owner ConnectEast gets Foreign Investment Review Board approval. ANZ looks at buying distressed Tokyo Star Bank. Samsung Electronics Co says it will delay the launch of its latest Galaxy tablet computer in Australia until after a court ruling in late September on its ongoing global patent dispute with Apple.

RMIT economist Sinclair Davidson talks about 20 years of superannuation, the future of manufacturing, productivity and the latest retail figures from the ABS.

Daryl Wright is managing director of Vantage Performance, a company specialising in breathing new life into companies that have perhaps lost their way and their performance. He talks about his work in Australia, the challenges of what he describes as the Australian business culture and the need to understand that Australian companies can effectively compete and succeed in the global market.

Leon and Garry discuss how BlueScope Steel is axing at least 1,000 jobs as it announces a $1.054 billion loss. OneSteel is expanding. Meanwhile, BlueScope Steel executives pocket $3 million worth of bonuses. Leighton chairman David Mortimer and chief executive David Stewart are forced out. International companies planning to invest in Australia will include local firms under new measures. Treasury boss Martin Parkinson warns financial turmoil will plague the world for years. Weak construction figures suggest low economic growth. A senior Reserve Bank official says interest rate decisions will remain difficult. It’s a disappointing start for Australian superannuation funds. Pacific Brands faces a $9 million bullying claim. US private equity fund Bain buys MYOB for $1.3 billion. Australian homes remain the largest in the world but are set to get smaller. In a blow to the ACCC, the Federal Court allows Metcash to buy Franklin stores. The Federal Government wants to raise employer superannuation contributions to 12 per cent. Shell and Petro China subsidiary Arrow Energy confirms a $520 million takeover bid for Bow Energy. BHP Billiton posts a monster $US23.6 billion profit. Sports and surfwear firm Billabong reports an 18.4 per cent fall in profit. Fortescue announces a 76 per cent jump in annual profit. QBE posts a net profit of $US673 million. Suncorp Group reports a net profit of $453 million, 42 per cent down. IAG’s profit more than doubles from $250 million from $91 million. Asciano reports a $145 million annual net profit, compared with last year’s $975 million loss. Wotif posts a profit of $51 million. Iluka Resources reports a first-half net profit of $145.9 million compared to last year’s loss of $6.6 million. Qantas records a $252 million profit, Virgin Blue posts a $67.8 million loss. Amcor Ltd almost doubles its full year profit to $356.7 million. Woolworths increases its full year profit to $2.12 billion. Foster’s reports an $89 million loss. Treasury Wine Estates reports a profit of $64.4 million. IOOF Holdings Ltd increases full year profit to $99.5 million. Newcastle-based health insurer NIB reports a higher profit of $65.5 million. Federal government funding cuts contribute to a 40 per cent slide in Primary Health Care’s full-year profit. Ramsay Health Care's net profit leaps 33.8 per cent to $198.4 million. Sonic Healthcare Ltd's full year profit is flat at $294.5 million. Flight Centre posts a flat annual profit. Toll Holdings reports a 3.7 per cent rise in profits to $294.8 million. Transfield posts a $19.73 million loss. Origin Energy reports a 15 percent jump in annual profit to $673 million. Mirvac’s net profit falls more than 20 per cent to $182.3 million. Mortgage Choice Ltd books a 17 per cent jump in annual profit to $27.459 million. Macarthur Coal reports a net profit of $142.4 million. Tatts Group reports a 130 per cent surge in profit, to $275 million. Crown declares a $336 million profit. Gunns reports a $355 million loss. AGL Energy increases full year profit 57 per cent to $558.7 million.

RMIT econiomist Alberto Posso talks about why the carbon tax will not work.

The electric car is on the ascendant as oil prices rise and global concerns over pollution increase. Dr Laurie Sparke, formerly head of Holden’s innovative advanced engineering division and now technical director of EDay Life, a manufacturer of small all-electric cars, talks about his project together with Vikash Rugoobor, who heads Curve Tomorrow, the Melbourne company that built the iPad application that controls this innovative car. Dr Sparke is also a professor in the engineering faculty at RMIT University.