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2012_0831 - US Fiscal Cliff

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Future Fund plunges to less than half 2011 return. Weak sales drag Harvey Norman profit down 31.6pc. No quick fix for Harvey’s cost dilemma. How a “bot” stunned sharemarket traders. US bonds ease as market takes in new debt supply. Apple the main ingredient in US earnings growth. Catalonia highlights Spain’s burden. The Australian credit risk puzzle. Christopher Joye There is a worrying puzzle at the heart of Australia’s financial system that involves the misrepresentation and mispricing of credit risk.

The Australian credit risk puzzle

Telstra to extend 4G network. John McDuling Telstra has detailed plans to extend its ultra-fast 4G mobile coverage just weeks before a new version of Apple’s iPhone is expected to hit the shelves.

Telstra to extend 4G network

The carrier on Tuesday confirmed plans to expand its 4G mobile coverage to two-thirds of the population by June 2013 from about 40 per cent now. About 1000 new base stations offering 4G will be built under a $1.2 billion investment in its network. Units lead home building approvals fall. Private sector house approvals rose 1.6 per cent.

Units lead home building approvals fall

Photo: Peter Braig. Swan demands end to economic ‘scare tactics’ Tony Abbott, centre, and MP George Christensen at DGH Engineering, Mackay, on Monday.

Swan demands end to economic ‘scare tactics’

Mr Abbott responded to calls from former prime minister John Howard for a return to the industrial relations policies of his government by saying: “John Howard is two prime ministers ago, John Howard is three Liberal leaders ago. No avoiding the new tax reality - The Drum Opinion. Find More Stories No avoiding the new tax reality Greg Jericho Last week, Tony Abbott gave two woeful interviews - firstly on Wednesday night with Leigh Sales on ABC's 7.30 , and then on Friday morning on The Today Show with Lisa Wilkinson (an interview that has received less attention than it deserves). In both interviews, the key issue on which Mr Abbott found himself stumped was tax. Australia: Running Out of Luck Down Under. While it is summer in the Northern Hemisphere, it is winter "down under.

Australia: Running Out of Luck Down Under

" Some expectations are too radical - Radical Expectations. If you don't like reading angry rebuttals from people who are jealous their blog didn't make the cut of ftalphaville, don't read this edition.

Some expectations are too radical - Radical Expectations

However, I've been linked to this article reposted online three times today. I think it's wrong, very wrong. The incidence of vague finger pointing to crisis-inducing bubbles is on the rise. (Because we didn't have enough crises already). In these crystal ball crises, usually every market sector implodes in such a way that it causes a chain reaction in another. Today I am on the defence against this one: Short form: Long form: From the top: The European periphery is an economic basket case. Www.variantperception.com/sites/default/files/reports/samples/australia_-_the_unlucky_country.pdf. An AUD tale of correlation lost. Why the Australian Economy’s Bet on China Will Fail. Warning: after boom it'll be Dutch and go. Australian analysts dismissed many of Variant's conclusions as nothing new. AUSTRALIA faces a run on its currency, a deeper collapse in housing prices and a bank funding crisis to rival Europe's as it tries to come to grips with life after the mining boom, according to a report from a boutique US advisory firm.

Entitled Australia: The Unlucky Country, the report from Variant Perception argues that Australia faces a classic case of Dutch Disease, the erosion of capability that flows from a resources boom and an overvalued exchange rate. "The mining sector has crowded out almost all other sectors of the economy and also funnelled credit and liquidity into a housing bubble in the real estate sector," says the report, which has been circulated among global money managers. The Australian dollar is overvalued on most metrics, one being the hamburger-based Big Mac Index, which has the Aussie 15 per cent to 20 per cent above par, Variant says. Search for growth may need widening. World on watch for signs of QE3. Mining still a large part of future: Rudd.

Mining tax won’t cover spending promises. Fears of a new global food crisis. Global Trends by Martin Khor Monday 13 August 2012 Fears of a new global food crisis Drought in the United States and weather events elsewhere have led to sharp price increases in some foods and raised fears of a new global food crisis A new world food crisis is being predicted because weather conditions especially in the United States has damaged current food crops, especially corn and soya beans.

Fears of a new global food crisis

The world price index for food commodities jumped an alarming 6% in July (compared to June) while cereal prices jumped an average of 17%, according to the UN Food and Agriculture Organisation. There is greater likelihood a repeat later this year or in 2013 of the food price crisis of 2008 that led to riots and demonstrations in over 30 countries. Another concern is that the warnings by scientists that climate change can lead to a decline in food production are already becoming a reality. And some of these weather events are the driving force behind the spike in prices of foods.

Food prices rise, prompting fears of another world food crisis. Is another world food crisis in the works? The UN's Food and Agriculture Organization suspects the answer may be "yes," thanks in part to nasty world weather conditions. The FAO's Food Price Index climbed by 6 percent in July 2012, primarily driven up by an increase in grain and sugar prices, although international prices in meats and fats were little changed. Unilever se prépare à un "retour de la pauvreté" en Europe. Unilever sees 'return to poverty' in Europe.

Perpetual outsources 100 jobs in $68m deal. David Ramli Perpetual chief executive Geoff Lloyd announced the outsourcing plans to investors this morning Nic Walker Financial services firm Perpetual has announced a five-year deal worth $68 million to outsource its technology systems to Japanese firm Fujitsu, with 100 staff set to lose their jobs.

Perpetual outsources 100 jobs in $68m deal

The deal came as Perpetual blamed challenging markets and low investor confidence for a 57 per cent fall in net profit for the full year to $26.7 million. Matthew Grounds, rock star banker. Team UBS: (left to right) Guy Fowler, head of investment banking; Gary Head, co-head of equities; Robbie Venderzeil, co-head of equities; Duncan Haig, head of fixed income; Matthew Grounds, CEO.

Photo by Nic Walker. Pamela Williams, editor at large. CBA’s Twitter nightmare highlights anonymity risk. Tony Boyd Commonwealth Bank of Australia’s first-hand experience dealing with the dark side of Twitter is a reminder of how vulnerable corporations are to anonymous attack from special interest groups. ING Bank’s global sales put spotlight on local unit. Aussie workers sicker than the Poms. Rachel Nickless Australians are taking a third more sick leave than employees in the United Kingdom and workplaces with high union membership are worse-hit than those with lower union density, a new national survey has revealed.

Aussie workers sicker than the Poms

Absence management company Direct Health Solutions has released its 2012 survey of 112 organisations which employ some 500,000 staff. Based on sick leave data for 2011, it has found national average absence levels dropped to 8.75 days per worker compared with 2010 data, but this was still 30 per cent higher than UK sick leave rates, according to a 2011 survey of some 750 employers by peak human resources group the Chartered Institute of Personnel and Development. In the DHS survey, the telecommunications industry and utilities companies performed worst, with sick leave rates of 13.1 days per year per worker. CFMEU boss concedes Grocon blockade ‘illegal’ Virgin returns to profit, sets new three-year targets.

Virgin returns to profit, sets new three-year targets. Suncorp consolidates on IT Building Blocks - Finance. A confirmation email has been sent to your email address - SUPPLIED GOES EMAIL HERE . Please click on the link in the email to verify your email address. You need to verify your email before you can start posting. If you do not receive your confirmation email within the next few minutes, it may be because the email has been captured by a junk mail filter. Please ensure you add the domain @itnews.com.au to your white-listed senders. Suncorp protests third-party premium setting shortfall. Land booms rewrite the rules on rates. Going global on carbon emissions: risks must be managed. Tony Wood Two big questions arise from Climate Change Minister Greg Combet’s announcement on Monday that Australia’s emissions trading scheme (ETS) would be linked to the European Union’s emissions trading scheme.

Going global on carbon emissions: risks must be managed

The first question is whether the linkage creates opportunities for Australia and Australian companies to better participate in the global climate-change response and carbon markets, or whether our system will now be hostage to the vagaries of European politics. The second question is whether the risk to future budget finances and removal of the floor price are outweighed by the potential cost savings to Australian businesses. The European ETS is the largest carbon market in the world. Polluters in line for a windfall.