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House prices in Australia's capital cities leaping 1.4 per cent in September - Talking Business 2012 - Ep36

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The Reserve Bank of Australia (RBA) cutting the official cash rate for the first time in four months to 3.25 per cent, signalling the end of the mining boom

Leon and Garry discuss issues including:
An audit determining that Spain's banks will need an injection of 59.3bn euros ($76.3bn; £47.3bn) to survive a serious downturn. Meanwhile, European powers say they are "ready to act" if Spain seeks a sovereign bailout as financial markets banked on Madrid crying out for help within days. But Spanish Prime Minister Mariano Rajoy squashes rumours that Spain is preparing to request a financial bailout this weekend. In France, the government unveils shock fiscal action to plug a €37 billion ($A46 billion) hole in public finances with the toughest package of tax rises, including 75 per cent rate for the super-rich, along with spending cuts the country has known in an economic downturn. Manufacturing softens in China but manufacturing picks up in the US and there are signs of a rebound in the US housing market.
The Reserve Bank of Australia (RBA) cutting the official cash rate for the first time in four months to 3.25 per cent, signalling the end of the mining boom
Labor government economist and advisor Ross Garnaut warning that Government spending and wages growth will have to be subdued through the rest of the decade to account for a prolonged Chinese-induced downturn in Australia
The latest Ipsos-Mackay report showing consumers feel the same or worse than they did 12 months ago - and fear what will happen when the mining boom ends.
The latest ME Bank Household Financial Comfort report showing that More than half of households are cash-strapped at the end of the typical month despite the higher pace of savings in Australia in recent years. And while there was growth in the share of households saying their financial situation had improved slightly in 2012, those who could not make ends meet were spending more cash over their income levels
The TD Securities-Melbourne Institute Monthly Inflation Gauge rising 0.2 per cent in September, after a rise of 0.6 per cent in August. The gauge said inflation grew 2.4 per cent in the year to September.
House prices in Australia's capital cities leaping 1.4 per cent in September, suggesting that recent rate cuts by the central bank are buoying the market. The finding in the latest RP Rismark Home Values Index was the largest monthly increase since March 2010.
One of the receivers of Gunns Ltd says it is likely that shareholders of the collapsed Tasmanian woodchipper will lose all of their money. A bid has been submitted for Gunns' pine sawmills at Bell Bay and Tarpeena has been made by a wealthy Chinese businessman, Hua Wang but Former directors and executives of failed timber company Gunns could become the targets of a class action from shareholders
Dunn and Bradstreet research showing that Australian businesses are indicating that discounting is the required antidote for sluggish spending heading into Christmas, with expectations for selling prices now close to the lowest level in more than two decades.

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iTunes Category: 
Economics
Author: 
RMIT University
Keywords: 
Gunns, Spain, economy, economics, Tax, Reserve Bank, Labor, Government, Australia