++ TREASURY + Challenges and opportunities for the Australian economy. ++ Farmers need capital to feed Asian demand. Nar Nar Goon dairy farmer Michael Shipton.
Photo: Arsineh Houspian Geoff Winestock and Julie-anne Sprague Farm output has stalled over the past decade and requires massive injections of capital, more modern farming techniques, and efficient supply chains to cash in on booming demand for cereals and meat from Asia, according to a report for the ANZ Banking Group. The farm sector could generate an extra $1.7 trillion for the economy up to 2050, according to the report, which was written by consulting firm Port Jackson Partners, and says that far from facing a food security threat, Australia can cash in on changes to Asian diets as the region becomes wealthier.
One of the obstacles to seizing market share from New Zealand and South America is a lack of capital, a problem exacerbated by foreign investment restrictions. ++ Profit growth missing from rally. Australia wins UN Security Council seat in ‘unequivocal’ vote. John Kerin and Lisa Murray in Shanghai Chinese officials have signalled that Beijing expects Australia to take a less pro-American approach to diplomacy on the United Nations Security Council, a sign that the Gillard government’s successful campaign for the seat may force it to side against Australia’s major trading partner in international disputes.
Australia beat Finland and Luxembourg to score a surprising first-round win in the secret ballot to take a seat on the body dealing with global security challenges for the first time since 1986. An academic closely associated with China’s Foreign Ministry warned that China would expect Australia not to always vote with the United States on the council and called on the government to take an “unbiased attitude” to territorial disputes in the South China Sea and the East China Sea. 2012 presidential debate: President Obama and Mitt Romney’s remarks at Hofstra University on Oct. 16 (running transcript) CANDY CROWLEY, MODERATOR: Good evening from Hofstra University in Hempstead, New York.
I’m Candy Crowley from CNN’s “State of the Union.” We are here for the second presidential debate, a town hall, sponsored by the Commission on Presidential Debates. CROWLEY: The Gallup organization chose 82 uncommitted voters from the New York area. Their questions will drive the night. My goal is to give the conversation direction and to ensure questions get answered. The questions are known to me and my team only. IMF chief urges US, Europe to bring down debt. Finance hub plan ‘losing ground’ John Kehoe Government adviser Mark Johnson and the financial services industry have warned that Australia is losing ground against Asian competitors in its plan to build a financial services hub amid slow progress of government policy changes designed to boost the sector.
A report shows Sydney’s global ranking as a financial services centre has fallen six places to 15th in the past five years, at a time when politicians have lauded the strength of the local industry in withstanding ructions in world financial markets. Mr Johnson, chairman of the Australian Financial Services Task Force, wrote a government-commissioned report in 2009 recommending 19 financial services policy changes. FT casts doubt on IMF research. US, Europe uncertainty won’t clear until next year: Swan. Wayne Swan predicts global confidence will remain fragile until the US and Europe resolve their budget and debt problems.
Photo: Andrew Meares Jacob Greber and Laura Tingle Wayne Swan has said it may not be clear until early next year whether the two “misfiring’’ engines of global growth – Europe and the US – are back on track as Labor attempts to deliver its promised budget surplus. In an interview with The Australian Financial Review, Mr Swan predicted global confidence would remain fragile until the US and Europe, the two biggest engines of world growth, resolved their budget and debt problems. International : Paris et Berlin étalent leurs divergences. Germany shocks EU with fiscal overlord demand. Eurozone crisis: three years of pain - interactive timeline. The fund warns and encourages. Housing to grow economy after mining boom: Treasury.
David Gruen, executive director of Treasury’s macro-economic group (domestic) ...
‘There’s no question commodity prices have come down by more than we expected at budget’. Photo: Louise Kennerley. + China targeted in US presidential debate. A Nobel for work that affects your daily life. U.S. economists Alvin Roth of Harvard University (left) and Lloyd Shapley of the University of California, Los Angeles, shared the 2012 Nobel Prize in Economics.
Harvard University/MFO. + NOBEL Economics that adds up. ++ ASIA CENTURY White paper needs teeth. Alan Mitchell, Economics Editor The Gillard government’s new white paper will challenge Australians to be ready for the challenges and opportunities of the Asian century.
But are our political leaders ready? + When policy lacks nuance. + War risks must be analysed. Spending on military systems is fraught when the nature of future conflicts is unknown. Christopher Joye The most profound hazard Australians face is the risk of war. We invest vast taxpayer resources – more than $30 billion each year – nominally insuring against it. Balance key in growth v austerity debate. Reserve Bank moves to Plan B on interest rates. Illustration: Michael Mucci.
IT'S not at all clear that falling commodity prices - or the Reserve Bank's latest cut in the official interest rate - will lead to a lower Aussie dollar. But if it doesn't fall, and the economy doesn't look like it will stay growing at its trend rate, the Reserve will just keep cutting rates. House prices tipped to recover in some capitals. Recovery expected in some capitals ... house prices in Sydney will increase by a total of 16.7 per cent between 2013 and 2015.
Zoë Fielding House prices in some capital cities will recover in the next three years but a property bubble is unlikely, according to BIS Shrapnel. The LMI Housing Outlook for 2012-2015, prepared by BIS Shrapnel, predicts that house prices in Sydney, Brisbane and Perth will improve over the next three years, while the other state capitals will experience weak conditions until mid-2015. Macquarie Dictionary has last word on misogyny.
“We need to add a second definition, which is slightly stronger than sexist but heading in that direction towards entrenched prejudice rather than a visceral hatred,” Macquarie editor Sue Butler says. Photo: Louise Kennerley Gemma Daley It has been observed the powerful often decide what becomes accepted history. In Australia they now influence the meaning of words. Prime Minister Julia Gillard’s celebrated and deplored speech against Opposition Leader Tony Abbott has prompted the national dictionary to redefine the word misogyny from meaning solely hatred of women to include a deep prejudice as well. Asian paper dumps IR for education. Craig Emerson with his Indonesian counterpart Gita Wirjawan at Parliament House in Canberra.
Misogynist: defining moment in war of words. ++ Google eyes Australian credit cards. Google’s US and UK business-to-business credit card is the first move in a global strategy. Cash is still king after the GFC scare. Ruth Liew Portfolio liquidity remains a high priority among mum and dad investors five years after the global financial crisis decimated investment returns, experts say.
Liquidity – the ability to sell an asset such as shares and receive cash quickly – became a critical issue during the GFC when investors wanted to pull out money from investments such as hedge funds, mortgage and property funds and managed investment schemes. Real Dow flags failure for QE3. Long view Philip Baker.
Medibank to pay govt $300m dividend. Medibank Private has confirmed its board is considering a special dividend drawn from capital reserves, but said it would remain comfortably above its prudential requirement. Photo: Glenn Hunt James Massola Online political correspondent Medibank Private has paid the federal government more than $1 billion in dividends and taxes in the past three years and will pay another special dividend of $300 million in 2012-13. Managing director George Savvides confirmed during Senate estimates hearings yesterday the government-owned healthcare provider was planning to make the new payment – the second special payment in three years.
Mr Savvides said the special dividend would be drawn from capital reserves but the fund would remain comfortably above its prudential requirement. + Super infrastructure win. + Super risk from shares exposure: report. BHP launches Texas jobs drive as shale booms. Debt-free Nine comes out of the blocks. Corporate credit spreads are ‘collapsing’
BoQ gets tough on Gold Coast. NAB loan war ‘unsustainable’ NAB puts aside extra $250m for bad debts. NAB shareholders may strike at executive pay. ASX moves to clarify company disclosure. OTC regulations hurt big Aussie banks. ASX revises rule book on disclosure. ASX catches up on disclosure. Citi After Vikram Pandit, is 'going to get a lot smaller' - Business News. More meetings, extra homework for directors. ASIC probes price spikes in blue chip shares. ASIC targets high-speed trading. How does it feel to be Back in Black Monday? Shades of 2003 recovery in most recent ASX rally. Black Tuesday: lessons from the crash. Black Monday and Its Aftermath - WSJ Coverage. A crash course on financial crises.
Revisiting the 1987 Crash. Black Monday Echoes as Computers Fail to Restore Confidence. 'Black Monday' Haunts Market, 25 Years On. Art Cashin On The 25th Anniversary Of 'Black Monday'