Friday, February 7, 2020

"Worse than SARS" - Reserve Bank boss warns on Australia's coronavirus exposure

The Reserve Bank has downgraded Australia's near-term growth forecast as a result of bushfires, drought and coronavirus. 

In its quarterly statement of monetary policy released this morning, the RBA sees growth to June of 1.9 percent down from 2.6 percent. Dr Lowe says Australia is exposed to the coronavirus and that the impact could be worse then the SARS epidemic in 2003. 

Here's my report from The World Today

Melco shelves second Packer share sale as Crown Barangaroo inquiry looms; I speak with Crown Resorts chairman Helen Coonan about revamped governance


The coronavirus epidemic has partly derailed James Packer's controversial deal to sell almost twenty percent of his Crown Resorts casino empire to Hong Kong gaming tycoon Lawrence Ho.

In a statement released last night, Mr Ho's Melco Resorts said the company had dumped plans to proceed with the full $1.75 billion purchase from Mr Packer and had walked away from the second $880 million bundle of shares.

Melco has cited "the impact of the coronaviris epidemic, including a severe drop in tourism .. and the recent decision by the government of the Macau special administrative region to close all casinos in Macau."

Here's my online story

Melco's decision to "reassess all non-core investments to be made in 2020" comes as a high stakes inquiry by the New South Wales gaming regulator prepares to scrutinise where the deal breaches a condition of Crown's licence to operate a VIP casino at Barangaroo in Sydney.

In her first broadcast interview since her appointment, I speak with Crown's newly-appointed chairman Helen Coonan about the company's revamped boardroom governance ahead of the inquiry.





Crown chairman Helen Coonan and chief executive Ken Barton - supplied by Crown

Thursday, February 6, 2020

Coronavirus a multi-billion dollar risk to Australian universities as Chinese students stay away

The coronavirus is likely to cost Australia's universities billions of dollars in lost revenue with thousands of international students stranded in China. 

Universities are drawing up plans to hold on to Chinese students by deferring courses and encouraging them to study online and eventually returning to Australia. 

As the economic toll rises, economists at the ANZ bank are predicting the coronavirus along with bushfires will mean a negative quarter of economic growth.

Here's my report from The World Today

Wednesday, February 5, 2020

Hyundai suspends production, Macau casinos close in coronavirus fallout

Fears about the rapid spread of coronavirus have already badly hurt business and industry in China but also around Asia. 

The South Korean automotive giant Hyundai is suspending production because it can't be sure of getting parts from China.

And casinos in Macau have also been told to close their doors for two weeks in a bid to prevent coronavirus spreading. ABC's Peter Ryan analyses the fallout.

Here's my report from The World Today

Tuesday, February 4, 2020

Budget airlines could struggle to survive as coronavirus rocks global airlines. I speak with aviation economist Dr Tony Webber

Fallout from coronavirus could force small airlines out of business, according to aviation analyst Tony Webber. 

Key airlines at risk are based in Hong Kong servicing slights to China's mainland. 

Australian stocks had fallen 1.6 percent in late morning trade on Monday but analysts say falls could have been worse without action by the People's Bank of China to inject RMB 1.2 trillion (A$258 billion) into China's financial system. 

Monday, February 3, 2020

China's central bank in emergency stimulus to cushion coronavirus fears

China's central bank will injected RMB1.2 trillion (A$258 billion) into the Chinese economy to cushion damage from coronavirus fears. 

Australia's Reserve Bank is expected to keep interest rates steady but will monitor local economic damage in addition to the bushfires crisis. 

Dr Timo Henckel, chair of the RBA "shadow board" at the Australian National University speaks with ABC's Peter Ryan. 

Source: People Bank's of China 3 February 2020