Garry Barker and Leon Gettler - Business and Consumer Confidence - Talking Business 2010 Ep 20c

A review of the week in business, with expert analysis and commentary

Garry and Leon talk about business confidence and consumer confidence falling with rising interest rates and the global financial crisis. Unemployment has fallen to a better than expected 5.2% in May. At the same time, demand for home loans has fallen to a nine year low. RBA Governor Glenn Stevens is urging Australians to cut debt and save while times are good. The number of bank branches is expected to expand but the rural and regional areas are being ignored. Melbourne is set to overtake Sydney as the most expensive place to buy a house. Meanwhile construction activity continued to grow, fuelled by the government’s stimulus spending. The ANZ job ads series shows job ads have improved more than 20% but employers are still cautious. An Australian hedge fund Basis Capital’s Alpha Yield Fund is suing Goldman Sachs for $1.5 billion. Meanwhile the debate about the mining tax continues with billionaires taking to the streets, BHP Billiton chief Marius Kloppers saying the tax is the biggest sovereign risk and the Rudd Government offering sweeteners to try and entice state governments and miners. NAB has bought a failed US bank TierOne signaling that it expects to make money in the US. Figures from the Tasmanian government show a low take up for the government’s national broadband network which is bad news for Communications Minister Steve Conroy who has denied he has a vendetta against Google, despite calling in the Australian Federal Police. Negotiations on Telstra’s role in the National Broadband Network continue with Telstra CFO John Stanhope warning that the Australian Competition and Consumer Commission could still knock it back.

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Garry Barker and Leon Gettler
RMIT, Business, Economics, interest rates, Unemployment, Glenn Stevens, NAB, TierOne, NBN