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The Rising Australian Dollar and the Damage to Society - Talking Business 2010 Ep 38c

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

Leon and Garry talk about the soaring Australian dollar with the NAB predicting it will hit $US1.10 in the next six months. Treasurer Wayne Swan warns that it could erode tax revenue with manufacturing, agriculture and tourism the hardest hit. Exporters are calling for government assistance to offset the impact of a strong dollar. Meanwhile, the rising dollar looks like it will cause some serious damage to Australia’s $18.6 billion education industry. Investors should be bracing themselves for a swathe of profit warnings with the dollar likely to hit earnings. The dollar also has Australian companies looking at overseas acquisitions. The Commonwealth Bank warns that the banks could raise interest rates above and beyond anything the RBA sets next month. Bank of Queensland announces a 5% lift in profit and announces plans to enter the motor insurance market. Treasurer Wayne Swan says Australia needs capital to support the biggest mining expansion since the gold rush in the 1850s. Prime Minister Gillard promises to unleash a new wave of economic reform to stop Australia being dependent on Asian demand for natural resources. The cost of building the NBN could blow out by $1 billion, according to a new report. NBN Co plans to sign up a satellite provider to supply broadband to remote households, all part of the Government’s deal with the Independents. Mortgage stress is highest in south west Sydney, according to a report from Moodys. BIS Shrapnel says housing prices will continue to grow by up to 20 per cent over the next three years, regardless of interest rates. Home construction activity suffers its tenth monthly decline, housing finance approvals rise just one per cent but sales of apartments close to the city centre in Melbourne have soared. An NAB survey shows overall business conditions have improved but points to Australia’s two speed economy. QR National releases its prospectus for the biggest IPO in more than a decade. Australia’s resource companies are on track to raise over $4 billion in 2010 to fund local and overseas development, according to estimates from Thomson Reuters. The planned water cuts in the Murray Darling basin could hit the rural economy and agriculture related businesses. Rio Tinto says iron ore, coking coal and alumina production has hit a new record. The $37 million harassment claim against David Jones seems to be heading towards settlement. Telstra indicates for the first time that it might sell its Sensis directories business. Optus meanwhile tries heading off Telstra on the battle for pre-paid mobile customers with a $1 a day deal. Virgin Blue says last month’s outage of its check in and operating systems could cost it $20 million. The value of housing commitment increases by a marginal one per cent. Australian dynasty the Myer Family has taken full control of its private financial services and is looking for growth. Australian drinkers are turning away from the big beer brands put out by Fosters and Lion Nathan. Westpac announces plans to have women in 40% of its management ranks. China could overtake Canada as Australia’s third biggest wine export market, according to figures from the Australian Wine and Brandy Corporation. Climate change minister Greg Combet says the economy will suffer if it does not have a carbon price. More Australian businesses are planning mergers and acquisitions. .Big infrastructure providers say Australia needs a congestion tax for its roads. The cofounder of Seek, Paul Bassatt, and Woodside Petroleum’s chief executive Don Voelte are stepping down. A report from Credit Suisse shows Australians are now three times as wealthy as they were a decade ago.

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iTunes Category: 
*Business*
Author: 
Garry Barker and Leon Gettler
Keywords: 
RMIT, Business, Economics