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MONDAY 31ST OCTOBER 2011
Rates cut favoured
JASON CADDEN: AAP
MELBOURNE Cup day could be a lucky one for
borrowers as expectations grow that the central
bank will cut interest rates.
Eleven of the 17 economists surveyed by AAP
say the Reserve Bank of Australia (RBA) will cut
the cash rate from 4.75 per cent to 4.5 per cent
when its board meets on November 1.
Interestingly the RBA has moved the cash rate,
either up or down, on the past five Melbourne
Citigroup head of economics Paul Brennan said
September quarter inflation data released on
October 26 was the turning point that helped
the low interest rate outlook.
He said the minutes of the RBA’s October board
meeting showed the board was expecting global
and Australian economic growth to slow and
the inflation outlook to ease.
“The RBA has indicated that an important
consideration at the November board meeting
would be the third (September) quarter
inflation data,” Mr Brennan said.
Underlying inflation, which excludes extreme
price movements in some.. Read more
Qantas; who wins, when and why
ROB BURGESS: ANALYSIS
Just who wins from Fair Work Australia’s ruling in the
Qantas dispute last night?
The emergency hearing of the full bench of the FWA
tribunal has resulted in a full “termination” of industrial
action, as sought by the Federal Government, rather than a
“suspension” that would have left the door open for further
industrial action beyond the suspension period.
A suspension would have been terrible news for Qantas, which
played its last card on Saturday when it grounded its entire
fleet and announced a lockout of relevant staff that was due to
begin today. But with the termination, it expects some flights to
resume this afternoon and the lockout cannot proceed.
Had industrial action been re-started some months down
the track, CEO Alan Joyce would have been well and truly
snookered – to disrupt around 80,000 travellers globally and
suffer inevitable damage to Qantas brand equity was not a
trick that could have been played twice.
Joyce, backed by his chairman, legendary union tamer Leigh
Clifford, had to get the termination to force the union to sit
down and begin to align its demands more closely with the
company’s emerging strategy for regaining competitiveness
– particularly on international routes.
Without it, the company’s push to develop a regional hub model
based in Asia would continue to be thwarted and the airline’s
long-term future would have been one of gradual decline.
Joyce pointed out over the weekend that, besides cutting off
a long-term strategy to regain competitiveness... Read more
Directors warned over new laws
TAX and treasury officials have said new laws that will
make directors liable for unpaid tax and superannuation
immediately, rather than with 21 days notice, will stop
companies from being able to enter liquidation in order to
Insolvency expert Cliff Sanderson, who runs the liquidation
firm Dissolve, says the laws will mark a massive shift in the
industry. Read more
Consumer slump widespread
GLOBAL consumer confidence
remained weak in the third quarter
with more than 60 per cent of
consumers saying it was not a good
time to spend, and one-in-three
North Americans saying they have no
spare cash, a survey shows.
The economic outlook, followed by
job security, became consumers’
biggest concern in the third quarter,
overtaking worries about rising
inflation, according to the quarterly
survey by global analytics and
information company Nielsen.
The Nielsen Global Consumer
Confidence Index dipped just 1 point
in the third quarter from the second
quarter to 88 points, but it was
shored up by a surge in confidence
in emerging economies Brazil and
Saudi Arabia, which masked weak
confidence in major developed
A reading below 100 indicates
consumers are pessimistic... Read more
Consumers in Market St, Manchester in the UK
Travellers at the Qantas inquiry desk in Singa-
pore’s Changi Airport
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