Summary: Leon and Garry talk about how it’s been a bad week for investors with the Australian sharemarket diving to its lowest point in almost a year and the Australian dollar taking a battering over concerns about a possible United States recession and figures showing retail spending in Australia at a standstill. The United States steps back from the brink of default. Fears of a recession in the US drives gold up to $1,666.30 an ounce. The Reserve Bank of Australia keeps interest rates on hold at 4.75% but the International Monetary Fund has warns that Australian interest rates will need to rise further to deal with the mining boom. Retail sales fall to a 50 year low, the Productivity Commission wants to end restrictive trading hours, residential building approvals fall 3.5% in June, house prices trend downward in the June quarter, new home sales fall in June, Australian manufacturing activity falls in July, activity in the service industries remains subdued in June, consumer prices rise at the fastest pace in three months, led by higher food and energy costs and media stocks crash. Another high profile retailer Brown Sugar goes under. But Australia's $2 billion-plus trade surplus for June brings the tally for the last financial year to $22.4 billion. The Clarius Skills Index says economic uncertainty at home and abroad prompts Australian companies to delay hiring plans. The boss of Woolworths food, liquor and petrol business, Greg Foran, resigns from the company after missing out on the top job. The Landfill Owners’ Association claims Australians will pay an extra $200 million to dump their waste under the Federal Government's carbon tax. National Australia Bank decides not to bid for 630 Lloyds branches on sale in Britain. Thousands of consumers have signed to explore switching mortgages, as part of a campaign to improve Australia's banking sector. Farmers fear a new rush of environmental plantings for biodiversity and carbon offsets will accelerate the loss of land for food production. Australia’s fast-growing internet industry now contributes almost as much to the nation's economy as the embattled retail sector. Telstra submits details of its structural separation. The NBN Co announces plans to begin work on the second release sites of the National Broadband Network (NBN) in NSW, Queensland and the ACT. The coalition insists it can deliver acceptable broadband using a mix of technologies at a fraction of the cost of Labor's NBN. Telstra plans to roll out a network of next-generation public internet kiosks dubbed "a 21st century upgrade for the payphone". Vodafone Hutchison Australia reports a loss of 375,000 customers this year, following customer service and network issues. The rivalry between Wesfarmers Ltd-owned Coles and Woolworths Ltd over milk pricing is about to spill over to alcohol sales. A move being prepared by the federal government preventing stockbroker firms from paying staff via brokerage they charge retail clients for buying will lead to an industry shake-up. Energy and ArcelorMittal go hostile with their $4.68 billion cash bid for Macarthur Coal after merger talks break down. Australia Post pushes deeper into the banking market through Bendigo Bank.
