Garry Barker and Leon Gettler - Interest Rate Rises - Talking Business 2010 Ep 35c

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

Leon and Garry talk about how Australians should be bracing themselves for more interest rate rises, possibly four, as the RBA manages the largest minerals boom since the 19th century. The Aussie dollar soars to a two year high but there are some who say it is over valued. Australia’s commodity forecaster predicts a jump in commodity exports. But consumers continue to tighten their belts. The RBA says consumer restraint will continue to give retailers a hard time, consumer debt increases to record highs and the share of debt free households plunges to a nine year low. But spending across the economy increased during August for the first time in nine months. Returns from banks deposits are outpacing superannuation and Australians have lost confidence in their finacial well being.Meanwhile the ATO has flagged it will double audits on DIY super funds. The Ten Network could get Delhi Belly, attracting advertisers to the troubled Commonwealth Games schedule. Queensland Rail is about to list. David Jones has defied weak consumer sentiment to report a record profit. The ANZ says Australia needs to dramatically increase spending on infrastructure. Electricity generator avoids being tipped into administration through a deal with its lenders. SABMiller says its looking at buying Foster’s. Potash sues BHP Billiton and the Chinese are looking to gazmp the BHP bid by making a bid for Potash. James Hardie to appeal a Federal Court decision that it owes $339 million of back taxes. IAG executives get a massive pay boost, despite profits collapsing. APRA has cracked down on hybrid style shares. Solly Lew’s Premier Investments reports a drop in profit but is looking for acquisitions. Fortescue Metals chief Andrew Forrest says he prefers a carbon tax to carbon trading. The National Broadband Network is coming in for plenty of criticism. ANZ is hit with a class action over fees but banks still increase their penalty fees. BHP Billiton chief Marius Kloppers gets a one million dollar pay rise. The ACCC approves Virgin Blue’s alliance with Etihad Airways.

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Garry Barker and Leon Gettler
Business, Economics, RMIT