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David Owen from BAE Detica - Economist Nicholas Gruen - Talking Business 2012 - Ep46

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Spanish Prime Minister Mariano Rajoy saying it will be difficult to meet the goal of cutting Spain's public deficit to 6.3 per cent of gross domestic product this year in line with European Union demands

Interview with David Owen from BAE Detica - Interview with economist Nicholas Gruen
Leon and Garry discuss issues including:
• German MPs overwhelmingly backing a deal aimed at trimming Greece's debt load and keeping the country financially afloat but the country's finance minister insisted it’s irresponsible to raise hopes of more radical debt forgiveness soon.
• Spanish Prime Minister Mariano Rajoy saying it will be difficult to meet the goal of cutting Spain's public deficit to 6.3 per cent of gross domestic product this year in line with European Union demands
• The Chinese economy showing strong signs of a rebound, dispelling the notion that the nation is heading towards a hard landing. The official November Purchasing Managers Index, a key barometer of the economy, reveals the powerful manufacturing sector is expanding after a long period of contraction. The figure of 50.6 was in line with the expectations of most economists and was the highest reading in seven months
• US manufacturing shrinking in November to its weakest level since July 2009, the first month after the Great Recession ended.
• The Reserve Bank of Australia cutting the official cash rate by 0.25 per cent, as had been widely expected. At its December board meeting, the RBA board lowered the official cash rate to three per cent, after holding the rate steady at 3.25 per cent in November. The official cash rate is now equal with the lowest rate during the financial crisis in April 2009
• The Gillard government asking public servants to search for fresh spending cuts in the lead-up to Christmas in a new attempt to achieve a 2012-13 budget surplus. The package of measures that could form a mini-budget or several separate announcements would be unveiled early in the new year in time to improve the position of the 2012-13 budget in the remaining months of the financial year.
• Liberal states planning to block Prime Minister Julia Gillard’s plan to cut electricity prices by reducing over investment in poles and wires, criticising key elements of Labor’s reform blueprint, including a rollout of smart meters, time-of-use pricing and a beefed up energy market regulator
• Building approvals dropping in October, more than analyst expectations, according to the Australian Bureau of Statistics.
• Australia's current account deficit widening more than expected in the September quarter, according to data from the Australian Bureau of Statistics. The data showed Australia posted a seasonally adjusted current account deficit of $14.9 billion in the three month period. Economists were forecasting a current account deficit of $14.7 billion
• Inflation fell in November, after rising in the previous two months, according to the latest TD Securities-Melbourne Institute survey
• The number of Australian job advertisements dropping for the eighth straight month in November, taking the series to its lowest point since January 2010
• Wages growth under enterprise bargaining agreements being reined in during the September quarter
• Australian retail sales flat in October, weaker than market expectations of a 0.4 per cent rise. In trend terms, monthly sales growth came in at 0.2 per cent

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iTunes Category: 
Economics
Author: 
RMIT University
Keywords: 
Reserve Bank of Australia, interest rate, inflation, job advertisements, retail sales, Nine Entertainment, Ten Network, Rupert Murdoch, Rosella