Garry Barker and Leon Gettler - Talking Business 2010 Ep 36c

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

Leon and Garry talk about the difficulty getting the legislation for the NBN through Parliament. But the Government needs to hurry as Telstra wants to have the NBN finalized by Christmas. Telstra has also released its latest renewal plan. Its shares tanked. The Reserve Bank’s mandate has broadened to take into account the stability of the financial system. The IMF praises the government’s mining tax but wants it broadened to other mineral resources. The latest data shows home prices are stablising but building approvals have fallen as have sales of new homes. Total private sector credit lifted has lifted marginally. The Gillard government’s climate change committee will seek input from business. Treasury says the government needs to ramp up spending on infrastructure and says Australia needs to introduce an emissions trading scheme as quickly as possible. Access Economics says Australia will fall back into deficit as commodity prices drop. Credit rating agency Fitch eill stress test the impact of steeper home prices on Australian bank debt. Board can expect some battles over executive pay at the forthcoming round of AGMs. Agriculture producer Nufarm has had a temporary waiver on its bank debt covenant breaches but the banks want the board to change. Wesfarmers and Woolworths are grabbing land to set up competing hardware stores. Virgin Blue blames its computer problems on its technology producer but the damage is done. The government is told a high speed rail network connecting Australia’s major cities is not viable. Taxi services company Cabcharge has been order to pay $15 million of costs and penalties by the court and the ACCC has warned telcos, airlines and car rental firms to revise their customer contracts. The Australian government to support Chinese efforts to build steel mills in Austral;ia. The ASX is looking at a merger with a global rival. Harvey Norman chief Gerry Harvey gets a pay cut but the number of millionaires in Australiahas rocketed. Data shows more than 2 million Australians are struggling to repay debt. Sigma reports a big loss. China’s biggest investment bank Citic Securities planning to set up a subsidiary in Australia. And the dollar continues to rise, reaching past US97 cents and set to hit parity.

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Garry Barker and Leon Gettler
Business, Economics, RMIT