"Negative equity" a risk if housing correction deepens, Reserve Bank warns

More major falls in real estate values particularly in Sydney and Melbourne could push some borrowers into "negative equity", the Reserve Bank has warned. 

In its six-monthly Financial Stability Review released this morning, the RBA says the deepening housing correction has the potential to stoke negative equity - where the outstanding balance of a loan taken out to purchase real estate exceeds the value of a property it is secured against. 

ABC's Peter Ryan says the RBA's warning will send jitters among borrowers who bought at the top of the market.

Business groups jaded by political spin but hope for big picture reform policies

Business groups are hopeful but realistic about a big picture policies on economic reform from the two major parties. 

ABC's Peter Ryan speaks with chief executives from the Business Council of Australia; Australian Chamber of Commerce & Industry and the Australian Industry Group.

Business Council chief Jennifer Westacott warns Labor, Coalition to avoid election "race to the bottom"

With the election now called, big business is warning both major parties to resist a "race to the bottom" where critical policies fall off the table to make way for short term political gain.

The Business Council of Australia has released its pre-election "to do" list that includes creating more jobs, lifting wages, lowering taxes and tackling surging energy prices. 

Business Council chief executive Jennifer Westacott speaks with ABC's Peter Ryan.

Crown Resorts shares plunge after Las Vegas suitor Wynn pulls deal

Crown Resorts shares plunged more than ten percent after a potential suitor Wynn Resorts abruptly terminated its proposed $10 billion takeover deal. 

In a brief statement, Wynn said the deal was off because it had been prematurely disclosed to the Australian sharemarket. 

ABC's Peter Ryan says there is little doubt that James Packer will be seeking another deal and that his plans to sell down assets continue.

Packer casino sale shelved as Wynn Resorts pulls $10b deal

Wynn Resorts has abruptly terminated its proposed $10 billion deal by buy James Packer's Crown casino empire. 

In a brief statement, Wynn said the deal was off because it had been prematurely disclosed to the Australian sharemarket. Crown shares rocketed 21 percent on news of the potential takeover. 

Here's my analysis from AM

James Packer cashing in his chips? Crown confirms talks underway for possible $10b sale

Crown Resorts confirms "confidential discussions" are under way with the Las Vegas-based Wynn Resorts for a possible $10 billion sale. 

ABC's Peter Ryan says the speculation is fuelled by James Packer's retreat from corporate life after standing down from all Crown positions last year when he revealed mental health issues.

Election race for economic credibility against housing, wages background

A critical platform on the yet-to-be-called election will be economic management. 

With the federal budget out of the way, economists are now focussing on how the two major parties will confront the big challenges - including the housing correction, weak wages growth and a slowing global economy. 

ABC's Peter Ryan speaks with market economists Paul Bloxham and Sarah Hunter.

30 Big W stores face axe as retail slump, online sales bite

Woolworths will close 30 of its loss-making Big W stories as the retail slump and growing online sales continue to bite. 

The decision adds up to a $370 million hit to Woolworth's bottom line. 

Woolworths chief executive Brad Banducci says it was a hard decision but a pragmatic one that any leader would make.

Here's my report from The World Today

Business pleads for lending relief as Royal Commission fallout bites - I speak with Xero boss Trent Innes and NSX chief executive Ann Bowering

Businesses - both big and small - have their usual budget wish lists of tax cuts, looser regulation and incentives to counter a slowing economy. 

But by far, the biggest headache for business at the moment is sourcing finance given tighter lending standards stemming from the banking royal commission. 

Trent Innes, chief executive of the accounting platform provider Xero, says small businesses under the pump are having to find others ways to fund their investments. 

National Stock Exchange chief executive Ann Bowering says small companies are turning to capital markets to raise cash.

Here's my report from this morning's AM.

Climate change raising company liabilities, barristers warn on potential litigation

Evidence that climate change is posing a greater risk to broader economy is putting company directors at greater risk of being taken to court, according to updated legal advice out today. 

Barrister Noel Hutley SC says it's now obvious that climate change is affecting the economy and given recent warnings, companies could face legal action for not acting on the exposure to investors - and that includes anyone worried about their retirement nest-egg. 

Centre for Policy Development chief executive Travers McLeod commissioned the advice and spoke with ABC's Peter Ryan.

Tax Office updates nation's widening income gap - surgeons top list of biggest earners

Australia's richest live near Sydney's northern beaches and earn more than 10 times the income of the nation's poorest, who live in regional NSW, ATO statistics show. 

Sydney's 2108 postcode recorded Australia's highest average taxable income of $230,330. New South Wales was home to the lowest-earning area. Postcode 2308 had an average taxable income of $20,589. 

However, ATO deputy commissioner Louise Clarke tells ABC's Peter Ryan the data does not provide enough information to identify tax avoiders.

Microsoft president Brad Smith: more needs to be done to prevent another Christchurch

Two weeks after the Christchurch massacre, Microsoft president Brad Smith tells The World Today that more needs to be done to prevent to spread of hate material. 

Mr Smith has met with New Zealand prime minister Jacinda Ardern who has demanded tech and social media companies find ways to identity and eliminate hate material. 

Brad Smith spoke in Sydney with ABC's Peter Ryan.

ANZ Bank boss Shayne Elliott concedes shareholders ranked ahead of customer interests in years leading to Royal Commission

ANZ Bank chief executive Shayne Elliott concedes that shareholders had "primacy over customers" in the years leading up to the financial services Royal Commission. 

Speaking at a six-monthly parliamentary grilling, Mr Elliott said bankers guilty of misconduct should be penalised and that tighter lending standards were a potential impact on the broader economy.

Resource companies accused of betting on Paris Agreement failure. Billionaire businessman Rob Millner tells unhappy investors to "sell"

Environmental finance group Market Forces has outed 22 listed resource companies for ramping up fossil fuel investments in the hope that the Paris Climate agreement will fail.

Companies accused of ignoring warnings from investors and regulators include New Hope, Whitehaven and Washington H. Soul Pattinson. 

But billionaire investor Rob Millner, chairman of Washington H. Soul Pattinson, tells ABC's Peter Ryan that investors should sell their shares if they don't like plans to build new coal mines.

Unemployment drops below 5 per cent for the first time in eight years

The unemployment rate has fallen to its lowest level in almost eight years, although its move below 5 per cent was largely driven by fewer people looking for work. 

In seasonally adjusted terms, the unemployment rate came in at 4.9 per cent, its lowest level since June 2011. 

ABC's Peter Ryan says the rate of job creation slowed with 4,600 new jobs over the month, a marked step down from the 39,100 jobs in January.

Ireland braces for post-Brexit world as delegation does deals in Australia

Ireland is bracing for a post-Brexit world but is confident that a hard customs border between the Irish Republic and Northern Ireland can be avoided. 

Enterprise Ireland executive director Kevin Sherry concedes Brexit will likely cut economic growth but says the Irish people are used to dealing with adversity. 

Mr Sherry, who is part of a delegation in Australia to broker post-Brexit deals, spoke with the ABC's Peter Ryan.

Reserve Bank deputy governor Guy Debelle warns climate change impact would be "abrupt, disorderly" - now factored into policy deliberations

Climate change now threatens Australia's financial stability. 

That's the stark warning from the Reserve Bank on what could become an "abrupt and disorderly" economic transition. 

In a landmark speech last night, the RBA's deputy governor said climate change had become a "key policy concern" given that's being factor into monetary policy deliberations. 

ABC's Peter Ryan analyses Guy Debelle's landmark speech.

Abolish lucrative tax breaks to restore budget discipline, CEDA warns ahead of election

An independent economic think tank is urging the federal government to do the politically unthinkable and rein in what it sees as unsustainable tax breaks just out from the May election.

The Committee for Economic Development of Australia (CEDA) says tough decisions need to be made about controversial refundable franking credits, work related expenses and capital gains tax to ensure the anticipated budget surplus is long term instead of a one off. 

In the case of the tax credits that Labor wants to abolish, CEDA says the cost to the budget has ballooned from $550 million when the break was first introduced to $5 billion dollars today, mostly to individuals with big investment portfolios. 

CEDA chief executive Melinda Cilento speaks with ABC's Peter Ryan.

Incoming NAB chairman Phil Chronican bracing for possible prosecutions from Royal Commission

Newly-appointed NAB chairman Phil Chronican assumes that the National Australia Bank is among institutions being investigated by regulators for possible civil or criminal prosecutions stemming from the banking Royal Commission. 

In his first broadcast interview since being appointed, Mr Chronican said he fully expects "other issues" to emerge this year. 

Phil Chronican tells ABC's Peter Ryan that alleged multi-million dollar fraud being investigated at the NAB is "exceptionally disappointing" but that the bank needed stronger internal measures to prevent it. 

Cooling economy, rising jobless to prompt two interest rate cuts this year: Westpac chief economist Bill Evans

Westpac chief economist Bill Evans says a cooling economy and a rising unemployment rate will force the Reserve Bank to cut interest rates twice this year. 

Mr Evans, who rightly predicted the RBA's last rate cutting cycle in 2011, believes the central bank will once again downgrade its forecasts for three percent growth in 2019. 

However, Bill Evans tells ABC's Peter Ryan that despite the slowing growth, a recession is not inevitable.

Economy slows as subdued consumers and real estate investors hold back. Income recession we had to have?

The Australian economy grew at its slowest pace in more than 18 months, rising just 0.2 per cent in the December quarter and 2.3 per cent over the year. 

The ABS says household spending is subdued with dwelling investment falling by 3.4 per cent. 

ABC's Peter Ryan says although the Reserve Bank says rates are on hold, some market economists believe there will be two rate cuts this year as the jobless rate rises.

Economy tipped to slow as forecasters punt on RBA rate cut

Growth figures for the final three months of 2018 are tipped to show Australia's world beating economy is slowing. 

Market economists have downgraded their growth forecasts in the expectation that rising unemployment would force the Reserve Bank to cut interest rates. 

But BIS Oxford Economics chief economist Sarah Hunter tells ABC's Peter Ryan she is alert but not alarmed.

Land of fair go at risk as inequality worsens, ACTU secretary Sally McManus warns

Anemic wages growth, a widening gap between rich and poor and a "powerful elite" of banks, insurers and multinationals the main winners from 27 years without a recession.

That's the warning from the ACTU which is warning the policies of the Morrison government could result in an American style economy of dead end jobs, poverty pay levels and zero job security. 

ACTU secretary Sally McManus tells ABC's Peter Ryan that living standards in Australia are at thirty year low and could fall even further.

Australia's youth unemployment crisis in regions and suburbs

Source: Brotherhood of St Laurence based on ABS data

Official figures confirm Australia's national jobless rate is sitting at five percent. 

While Scott Morrison will be spruiking jobs growth in the leadup to the election, the youth unemployment rate is as high as 25 percent in part of regional Australia.

The Brotherhood of St Lawrence has crunched the numbers to identify the twenty worst hotspots where young Australians struggle to find a job. 

Brotherhood of St Laurence executive director Conny Lenneberg speaks with ABC's Peter Ryan.

Women in 80 year wait for CEO parity with men, report warns

A gender study out this morning says it might take 80 years for women to achieve parity in chief executive roles that remain dominated by men. 

Research from the government's Workplace Gender Equality Agency and the Bankwest Curtin Economics Centre shows that while the pay gap is narrowing, the glass ceiling for women at the CEO level might have to wait til next century. 

Report co-author Associate Professor Rebecca Cassells speaks with ABC's Peter Ryan.

Ita Buttrose's big challenge as ABC chair - fight the digital giants, shore up funding

ABC's Peter Ryan says incoming ABC chair Ita Buttrose is known as a tough operator as a top editor for Kerry Packer and Rupert Murdoch. 

Analysts say Ms Buttrose's first challenge will be to restore stability at the national broadcaster and to lobby for greater funding certainty in the face of cut throat digital competitors. 

Media Entertainment & Arts Alliance chief executive Paul Murphy does not question Ms Buttrose's credentials but says the bypassing of the government's independent selection panel creates the perception of a political appointment.

Here's my analysis from this morning's AM.

Ita Buttrose appointed as ABC chair; PM defends bypassing selection process

After days of speculation, the veteran editor and media icon Ita Buttrose has been confirmed as Scott Morrison's captain's pick as chair of the ABC. 

Ms Buttose's appointment brings some long-awaited stability to the national broadcaster after it lost its managing director and chairman in the space of days last September. But 

ABC's Peter Ryan says Ita Buttrose's elevation to the top of the ABC has been overshadowed by the Prime Minister's decision to sidestep the nominations of the government's independent selection panel.

ASIC's Sean Hughes warns - insurers ignore Hayne lessons at their peril

The corporate watchdog has warned it will aggressively pursue criminal action against white collar criminals in the wake of misconduct that emerged at the banking Royal Commission. 

ASIC commissioner Sean Hughes has also urged the financial sector to clean up its act now before tougher laws are brought in - and that the recommendations from Royal Commissioner Kenneth Hayne can't be ignored. 

ABC's Peter Ryan reports for The World Today.

Bluescope Steel yet to see dent from housing correction; Ita Buttrose firms as ABC chair pick

Bluescope Steel chief executive Mark Vassella confirms he has seen a moderation in demand from the housing correction but warns that any shock could have a more material impact on the steel maker. 

Also today, Ita Buttrose has been named as a possible top candidate for the ABC chair role which has been vacant for five months. 

Prime Minister Scott Morrison says a decision is yet to be made but says he was surprised and disappointed to receive an all-male short list from the government's selection panel.

Here's my report on The World Today

Ita Buttrose tipped as ABC chair with PM to decide this week; PM "surprised , disappointed" at all male short list

Ita Buttrose has been named as a possible top candidate for the ABC chair role which has been vacant for five months. 

Prime Minister Scott Morrison says Ms Buttrose is a great Australian but says a decision is yet to be made. 

However, Mr Morrison says he was "surprised and disappointed" to receive an all male short list.

The media buyer Harold Mitchell says the former editor for Kerry Packer and Rupert Murdoch is tough but compassionate. 

ABC's Peter Ryan says the position of ABC managing director is also vacant after last year's sacking of managing director Michelle Guthrie.

"Don't jump to conclusions" - Reserve Bank governor warns on China coal ban

Reserve Bank governor Dr Philip Lowe warns against jumping to conclusions for reasons behind China's ban on Australian coal at its Dalian port. 

Dr Lowe suspects policies to improve the environment and to protect a slowing local coal industry could be factors behind the decision. 

Here's my report from The World Today

Could Glencore coal decision be tipping point in climate debate?

In what could be a tipping point in the climate change debate, the mining giant Glencore says it will cap its investments in coal after pressure from major investors. 

ABC's Peter Ryan says shareholders are now more aware of long term risks associated with fossil fuel investments. 

Qantas profit weighed down by rising fuel costs but chief executive Alan Joyce says consumers remain bouyant despite economic headwinds

Qantas has seen its first half profit lose altitude down 16 percent to $498 million as it deals with higher fuel costs. 

But speaking with the ABC's Peter Ryan, chief executive Alan Joyce expects to make up the losses and doesn't see a cautious consumer despite economic stormclouds such as a housing correction. 

Wages flat, Woolies warns on "subdued consumer demand", NAB confirms Andrew Thorburn's million dollar exit

The latest quarterly wages update shows growth continues to flatline. 

The ABS says wages grew 0.5 percent in the quarter and 2.3 percent over the year. 

With household budgets tightening, Woolworths chief executive delives a $979 million half year profit while noting "subdued consumer demand" as consumers move from champagne to sparkling wine. 

Also the National Australia Bank confirmed exiting chief executive Andrew Thorburn will received a $1 million payout.

Here's my report on The World Today

IOOF push to restore trust after Royal Commission fallout; caution still running high as acting CEO cancels ABC interview

The embattled wealth manager IOOF has pledged to rebuild trust with regulators and consumers after its reputation was badly damaged during the financial services Royal Commission. 

The company - which was accused of not acting in the best interests of its superannuation clients - will spend as much as $30 million to ensure it meets additional licence conditions imposed by the banking regulator APRA. 

Acting chief executive Renato Mota backed out of an interview with ABC's Peter Ryan despite an earlier commitment.

Here's my report from The World Today.

Big car makers face demise as self driving Ubers soon in a street near you

Traditional car makers could find themselves out of business within the decade as autonomous electric cars become affordable to regular motorists. 

Brett Winton, director of research at the US investors Ark Invest, predicts autonomous taxis could be available in big cities by 2021. 

Mr Winton also believes traditional car insurers will be disrupted as the likes of Tesla and Google bypass the retail market. 

Brett Winton speaks with the ABC's Peter Ryan.

Tough new penalties will make ASIC a "feared" regulator, warns deputy chair Daniel Crennan

The corporate watchdog ASIC has put white collar criminals on notice that tough new penalties with potential jail terms of fifteen years will make it a "feared" regulator.

The Senate has passed legislation that could see criminal fines for corporations rocket from  just $210,000 to almost a million dollars or ten percent of a company's turnover. 

While the proposed criminal and civil penalties won't cover misconduct that emerged in the banking Royal Commission. 

ASIC deputy chair Daniel Crennan tells ABC's Peter Ryan that corporate criminals are on notice.

AMP profit crashes 97pc amid royal commission scandal fallout. I speak with AMP boss Francesco De Ferrari.

Wealth management giant AMP has seen its full year profit dive by 97 percent to $28 million as it confronts scandals from the financial services Royal Commission. 

AMP has recorded net cash outflows of $3.97 billion from its wealth management business as customers consider where to invest their money. 

AMP chief executive Francesco De Ferrari speaks with ABC's Peter Ryan.

Consumer confidence rebounds; budget surplus could be buffered by surging iron ore price

Consumer sentiment has recovered most of its pre-Christmas dip despite gloom about economic headwinds. 

A rising iron ore price could add $9 billion to treasury coffers adding to projections for a budget surplus.

Peter Ryan explains

No silver bullet but catalyst for change - Industry Super chair Greg Combet backs Hayne recommendations

Industry Super Australia chairman Greg Combet says the Hayne Royal Commission final recommendations are not silver bullet but an important catalyst to deal with bad culture and misconduct in the banking sector. 

The former Labor minister says the regulators ASIC and APRA must be properly funded by any future government to pursue potential criminal prosecutions. 

Mr Combet tells ABC's Peter Ryan that a recommendation to shake up the mortgage broker industry has the potential to reduce competition in favour of the major banks.

Peter Costello to Ken Henry: stay away from NAB chief executive appointment

Future Fund chairman Peter Costello has slammed the transition process underway at the National Australia Bank and says outgoing chairman Ken Henry should not have a role in appointing a new chief executive to replace Andrew Thorburn. 

Mr Costello, a former Liberal Treasurer and chairman of Nine Entertainment, said it was appropriate that Mr Henry and Mr Thorburn were leaving but said Dr Henry should "go first" to allow a new chairman to make the decision.

Both Dr Henry and Mr Thorburn were forced to resign last Thursday after commissioner Kenneth Hayne said in the Royal Commission's final report he was not confident "that the lessons of the past had been learned". 

ABC's Peter Ryan says the Future Fund posted a 5.8 percent return in the year to December 31, 2018.

NAB boss Andrew Thorburn thrown under a bus, but Ken Henry a reluctant casualty

ABC's Peter Ryan says while the departure of NAB chief executive Andrew Thorburn was inevitable, chairman Ken Henry has to be convinced by the NAB board to walk the plank.

Senior government frontbencher Christopher Pyne suspects more bank executive heads could roll as a result of the Hayne royal commission findings.

Bill Shorten says suspect a "coverup" if no convicted banker goes prison

Opposition Leader Bill Shorten says Australians should suspect a coverup if no banking executive convicted of criminal conduct goes to prison. 

The National Australia Bank is in damage control after yesterday's resignations of chief executive Andrew Thorburn and chairman Ken Henry. 

Former labor senator and NAB shareholder Chris Schacht tells ABC's Peter Ryan that in addition the the departures of Mr Thorburn and Dr Henry, the rest of the NAB should consider leaving.

Labor asks for "please explain" after alleged leak of Hayne Royal Commission final report

The corporate regulator ASIC is under increasing pressure to investigate claims that parts of the Hayne Royal Commission final report were leaked allowing insider traders to make millions. 

Labor and the Greens say there valid suspicions that Kenneth Hayne's final report into the banking sector made its way to some investors before its official release after the stock exchange closed on Monday. 

Treasurer Josh Frydenberg has rejected the allegations saying that all briefings and lockups for the media, stakeholders and regulators were done under strict security to prevent damaging leaks. 

But CMC Markets strategist Michael McCarthy tells ABC's Peter Ryan there is no evidence of  leak to investors.

Hayne pain to rattle banks on Royal Commission day of reckoning

Banks are bracing for possible civil or criminal charges in Kenneth Hayne's final Royal Commisison report to be released after the stock exchange closes today. 

But Dr Kym Sheehan from the Sydney Law School at the University of Sydney warns some in the community might be disappointed if Mr Hayne's recommendations are not as far reaching as anticipated. 

Dr Sheehan speaks with ABC's Peter Ryan.

Australian dollar and Wall St surge after Federal Reserve keeps interest rates steady

The Australian dollar has surged to its two-month high, as the greenback weakened after the US Federal Reserve decided keep interest rates on hold. 

Instead of aiming for "further gradual increases" in rates, the Fed said it would "be patient as it determines what future adjustments to the target range" — which suggests the central bank may not raise borrowing costs in the foreseeable future. 

ABC's Peter Ryan analyses the Fed's decision.

Chief bank lobbyist Anna Bligh braces for possible criminal referrals as Royal Commission final report looms

Australian Banking Association chief executive Anna Bligh is bracing for possible civil or criminal referrals when the final report of the banking Royal Commission is released on Monday. 

The former Queensland Labor premier says the report will "make for some very sobering reading" but says if charges are referred bankers are entitled to a defence under the criminal justice system. 

Ms Bligh tells ABC's Peter Ryan only a brave person would speculation on the sharemarket reaction when the report is released.

Inflation edges up, but not enough to take interest rate cut off the agenda

Official inflation has strengthened marginally but is still well below the Reserve Bank's target band of two to three percent. 

The ABS says the consumer price index rose 0.5 percent in the December quarter and 1.8 percent over the year. 

Combined with the housing correction and credit squeeze stemming from the banking Royal Commission, some economists are tipping the RBA will cut interest rates this year.

Here's my report from The World Today

AMP's male only board one of four outliers as gender diversity improves

AMP's male-only board has been outed as the latest gender diversity survey shows women now account for 29.7 percent of ASX 200 board positions. 

Australian Institute of Company Directors chief executive Angus Armour says Australia is the first country in the world to achieve the 30 percent target without quotas or regulatory intervention. 

Other companies with no women on their boards include TPG Telecom, ARB Corporation and Emeco Holdings. 

Angus Armour speaks with ABC's Peter Ryan

TPG stops mobile network rollout after Huawei 5G ban in Australia

TPG has ceased its rollout of its mobile network after the federal government banned the use of Huawei equipment for Australia's 5G mobile network. 

Huawei spokesman Jeremy Mitchell tells ABC's Peter Ryan the reduced competition means consumers will end up paying more.

Burford Capital bankrolling AMP class action as Royal Commission final report looms

The world's biggest litigation funder has set up shop in Australia to get a slice of the booming class action business, with some high profile ones stemming from the banking Royal Commission.

Read the story here

The US-based Burford Capital is already bankrolling one of the potential class actions against the troubled wealth manager AMP which has had its reputation and market value smashed by Royal Commission revelations including the "fee for no service" scandal. 

Burford chief executive Chris Bogart speaks from Washington with ABC's Peter Ryan.

AMP shares plunge as much as wealth manager warns of full year profit wipeout, slashes dividend

AMP investors have been warned to brace for a 97 per cent slump in profit and massive dividend cut as the costs of the scandals exposed in the banking royal commission continue to mount. 

AMP further downgraded its already weak guidance, reporting that its net profit for the 2018 calendar year would be "approximately $30 million" down from $841 million reaped the previous year. 

Shaw & Partners banking analyst Brett Le Mesurier says investors are now bracing for the Royal Commission's final report due on February 1.

Australian dollar tipped to dive to 60 US cents on China economy, housing correction fears

The Australian dollar could dive to 60 US cents if China's economic slowdown deepens and local real estate prices continue to correct. 

The London-based Capital Economics believes a hit to Australia's economic growth will force the Reserve Bank to cut interest rates. 

ABC's Peter Ryan says tighter credit conditions from the banking Royal Commission will also risk weighing on the economy.

Source: Capital Economics

Unemployment dips to 5pc despite a cooling economy and housing correction

Australia's jobs market has defied cooling economic conditions with the jobless rate edging down to 5 percent in December. 

A better than expected 21,600 new jobs were created, although the bulk of these were part-time positions with 3,000 full-time jobs being shed over the month. 

But AMP Capital chief economist Shane Oliver tells ABC's Peter Ryan the deepening housing correction could harm the broader economy.

Global tremors put Australia's recession free record at risk, warns Saxo Bank strategist Eleanor Creagh

Investors are becoming increasingly nervous that Australia's 27 years without a recession is being tested by global economic tremors. 

The risk of a sharp slowdown in China and simmering trade tensions between the US and China leave Australia exposed - on top of a potentially damaging correction in real estate prices. 

Saxo Bank market strategist Eleanor Creagh speaks with ABC's Peter Ryan.

"We're not the enemy" - Huawei Australia chairman John Lord distances Chinese telco from IP spying fears

Huawei Australia chairman John Lord has distanced Chinese telco from allegations about a spying campaign by two Chinese nationals said to be acting for Chinese intelligence. 

Mr Lord tells ABC's Peter Ryan that Huawai is not the enemy and that he has not considered leaving his chairman role given deteriorating relations between China and western powers. 

Huawei was blocked from supplying equipment for the rollout of Australia's 5G network because of security concerns.

John Lord speaks with ABC's Peter Ryan

Renewables surge set to drive down power prices, but policy uncertainty stalling investors. I speak with Grattan Institute energy policy director Tony Wood

A flood of new renewable energy projects is likely to drive down electricity bills according to new analysis by the Australian Energy Market Commission. 

The bill reductions come from lower wholesale costs and the reversal of hikes from the closure of brown coal power stations in South Australia and Victoria. 

But Grattan Institute energy expert Tony Wood says the lower prices could be short term with investors cautious to bankroll projects given the lack of a clear energy policy. 

Tony Wood speaks with the ABC's Peter Ryan. 

Read more here 

Jobless rates ticks up to 5.1pc but employment growth beats forecasts

Australia's official jobless rate rose slightly to 5.1 percent in November though employment growth beat forecasts. 

Earlier today, the US Federal Reserve has raised interest rates as expected but has signalled fewer rate hikes next year in the face of financial volatility and slowing global growth. 

ABC's Peter Ryan looks at the numbers.

Wall Street dives 1.7 pc after US rate hike amid signals of uncertain outlook; analysts say Fed language less dovish than expected

The US Federal Reserve has raised interest rates as expected but forecast fewer rate hikes next year in the face of financial volatility and slowing global growth. 

Read the Fed statement here

While citing a strong US economy, Fed chairman Jerome Powell said inflation was more subdued than anticipated and signaled he might change strategy if developments in 2019 warrant. 

ABC's Peter Ryan analyses Mr Powell's comments.

NAB pay report to be slammed in protest vote, chairman Ken Henry admits "we got it wrong"

National Australia Bank is bracing for a massive shareholder backlash as investors vent their anger over fallout from the financial services Royal Commission. 

Chairman Ken Henry has axed the current executive pay structure but predicted that 80 percent of shareholders would vote down the remuneration report. 

ABC's Peter Ryan says the banking regulator APRA has unexpectedly remove limits on investor lending imposed last year to cool hot real estate markets in Sydney and Melbourne.

Here's my report

Oil dives on global slowdown fears, supply glut, rising US China trade tensions

Oil prices have plunged as much as eight percent on growing concerns about a global economic slowdown and rising trade tensions between the US and China. 

Investors are also on alert for a likely rise in US interest rates, despite concerns about the US recession within 18 months. 

ABC's Peter Ryan looks at rising nerves on global markets.

Housing falls, high debt, slowing consumption pose downside risks to economy, RBA warns

Falling household consumption fuelled by declining real estate values and high debt levels are a key source of uncertainty for the Australian economy, the Reserve Bank has warned. 

In the minutes from its December meeting a fortnight ago, the RBA said board members had noted evolving headwinds and that "this combination of factors posed downside risks". 

The RBA said housing markets in Sydney and Melbourne had continued to ease from record high values and that lending had tightened as a result of the revelations from the financial services Royal Commission. 

ABC's Peter Ryan goes through the minutes for The World Today.

'Gobsmacking, highly surprising': analyst Brett Le Mesurier on NAB boss Andrew Thorburn taking extended leave as Royal Commission final report looms

Banking analyst Brett Le Mesurier has described plans by National Australia Bank chief executive Andrew Thorburn to take extended leave as "gobsmacking" and "highly surprising".

Mr Le Mesurier tells the ABC's Peter Ryan that the timing raises questions about Mr Thorburn's future given his plans to take a month's long service leave after the royal commission's final report is released in February.

House price falls, subdued household income growth, sluggish wages, China US trade tensions a key risk to budget forecasts

The budget update has flagged key risks to the rosy forecasts including house price falls, subdued household income growth, tight credit conditions and continuing trade tensions between the US and China. 

Economist Stephen Koukoulas says it wouldn't take much to complicate or even derail the optimistic outlook. 

Stephen Koukoulas speaks with ABC's Peter Ryan.

Federal budget deficit on track to halve, but Treasurer warns no room for complacency

Treasurer Josh Frydenberg remains cautiously on track to delivering a prized surplus in next year's federal budget and the best set of books since the Howard government a decade ago.

The midyear economic and fiscal outlook (MYEFO) to be released this morning is expected show the budget deficit is at its lowest level since 2007-2008.

It is understood the $14.4 billion deficit for 2018-19 forecast in the May budget will be more than halved after higher than expected tax receipts and lower payments by the government.

Here's my preview on ABC News Online

Tax Office receives first list of Swiss bank accounts held by high wealth Australians

The Australian Tax Office has just received its first list of all Australians holding Swiss bank accounts. 

Deputy commissioner Jeremy Hirschhorn tells AM that while there is nothing wrong with holding such an offshore account there's "a few people on the list we're pretty interested about". 

The ATO's corporate tax transparency report released yesterday show around a third of large Australian companies failed to pay tax as they continue to claim tax losses and concessions that go back several years.

PM backs down and announces Commonwealth Integrity Commission to weed out high level corruption

Scott Morrison has bowed to pressure and announced the establishment of a Commonwealth Integrity Commission to stamp out corrupt and criminal behaviour at the highest levels of government. 

The new body's reach will be wide and cover top regulators including ASIC, APRA, Austrac and the ATO in additional to law enforcement bodies like the Australian Federal Police. 

ABC's Peter Ryan analyses the surprise announcement.

One-third of large Australian companies paid no tax, ATO data show

Around a third of large companies have failed to pay tax even when they made a profit, but the Tax Office says most have a good reasons under current the regime according to the latest tax transparency report released today.

Who's paying tax and who's not? Read here

Of the 2,109 entities monitored by the ATO in data covering 2017-17, 66 percent paid tax although the remainder did not as they claimed tax losses, concessions and bad economic performances that can go back several years.

"While the majority of entities in the corporate transparency population made profits and paid tax in relation to the 2016-17 year, some do not pay tax," the transparency report says.

"We look to understand the reason for tax losses or nil tax payable. Sensitivity to economic conditions, reinvestment back into the business .. tax deductions and tax offsets can all effect the amount to taxable income and tax payable."

The ATO says corporate entities paid total income tax of collected in the period lifted by 19 percent to $45.7 billion in the period which is a $7.5 billion on the prior period because of an additional 68 entities being taxed.

Corporate high flyer Peter Gregg faces four year sentence for falsifying Leighton Holdings accounts

The corporate regulator has scored a significant win after former Leighton Holdings chief financial officer Peter Gregg was found guilty of falsifying the company's accounts. 

The criminal case was brought by ASIC in relation to a probe over shady payments made to a consultant in Dubai for "market advisory services" which ASIC says was never a genuine agreement. 

ASIC commissioner John Price tells ABC's Peter Ryan that Mr Gregg faked accounts to cover up for payments.

Existing and interest-only mortgage borrowers gouged by big banks, says ACCC chairman Rod Sims

Borrowers subsidised big bank revenue by more than a biillion dollars after the Big Four hit them with a synchronised rate rise. 

The ACCC's final report into residential mortgage pricing practices says "opaque discretionary pricing" makes it harder for borrowers for shop around and banks have been profiting as a result. 

ACCC chairman Rod Sims speaks with ABC's Peter Ryan.

Brexit uncertainty accelerates dive in British Pound as global jitters rise

The British Pound has hit a twenty month low after UK Prime Minister Theresa May abandoned a vote on Brexit. 

This morning it's plunged as much 1.6 percent against key global currencies. 

On Wall Street, stocks continue to be hammered by worries about Brexit and continuing trade tensions between the US and China. 

ABC's Peter Ryan analyses the fallout from the Brexit uncertainty.

OECD warns on house price collapse and risk of hard landing

The OECD says a severe collapse in housing prices is a significant threat to Australia's economy. 

The Paris-based organisation says regulators should begin drafting contingency plans for a possible hard landing and a scenario where a financial institution might become insolvent. 

At the same time, the OECD says Australia's economy is resilient to shocks and noted its strong fundamentals. 

Treasurer Josh Frydenberg has jumped on the positive comments and says Labor's proposed reforms to negative gearing pose a significant threat.

Here's my report from the ABC's AM program

Source: OECD

ACCC puts tech titans Google, Facebook on notice in privacy crackdown

The power and influence of the global tech giants Google and Facebook could be reined in to protect consumer privacy according to a world first report by Australia's competition watchdog. 

The ACCC has released a set of eleven recommendations to deal with the seismic changes caused by the likes of Google and Facebook, including a proposal to establish a new watchdog to ensure market power isn't being abused in digital advertising. 

ABC's Peter Ryan examines the recommendations for The World Today.

IOOF shares crash 33 percent after banking regulator pursues top executives including managing director Chris Kelaher

The banking regulator APRA has taken action against superannuation giant IOOF for allegedly failing to act in the best interests of customers. 

APRA is targetting managing director Chris Kelahar and four other senior executives. 

IOOF shares plunged 33 percent in late morning trade wiping $800 million of the company's market value.

ABC's Peter Ryan with the breaking news 

New AMP boss Francesco De Ferrari takes "glass half full" view on embattled wealth manager but says misconduct has been "systemic"

Newly-appointed AMP chief executive Francesco De Ferrari has conceded that serious mistakes have been made at the embattled wealth manager but says the flashpoint of the "fees for no service" scandal points to systemic issues across the entire financial services sector. 

Mr De Ferrari began Australia's most challenging role earlier this week as AMP braces for the final report from the financial services Royal Commission after the revelations about misconduct trashed the company's reputation and shredded its market value. 

In his first broadcast interview since joining AMP, Mr De Ferrari speaks with the ABC's Peter Ryan.

Reserve Bank deputy governor Guy Debelle flags possible rate cut to counter slowing economy, housing downturn

Reserve Bank deputy governor Guy Debelle has flagged a possible cut official interest rates if slowing growth and the housing downturn begin to hurt the economy.

The possibility of emergency measures comes after confirmation this week that the economy dramatically slowed in the most recent quarter and that tighter lending standards from banks could damage confidence even more. 

ABC's Peter Ryan on Guy Debelle's comments.

Retail sales steady in Christmas leadup as slowing economy prompts rate cut talk

Retail sales figures for October have held steady easing fears that consumers are becoming more cautious in the leadup to Christmas. 

The ABS says retail trade grew by 0.3 percent although there were falls in discretionary items like cafes, restaurants and takeaway food. 

ABC's Peter Ryan speaks with AMP Capital chief economist Shane Oliver.

Slowing economy could force RBA rate cut in 2019, economist Stephen Koukoulas predicts

Two prominent market economists are predicting the Reserve Bank will be forced to cut official interest rates after official figures confirmed a slowing economy. 

Shane Oliver, chief economist at AMP Capital, and Stephen Koukoulas of Market Economics believes the RBA might cut rates in May. 

ABC's Peter Ryan says a slowing economy could put pressure on hopes that a surplus will be announced in April's pre-election budget.

Economic growth slows as discretionary spending dips - but unbroken expansion continues

Australian economic growth slowed sharply in the most recent quarter, defying analyst forecasts. 

The ABS says GDP slowed to 0.3 percent in the quarter and 2.8 percent over the year. 

The Reserve Bank recently predicted that GDP would rise to around 3.5 percent by 2020. 

ABC's Peter Ryan analyses the surprise result.

"Criminal charges would be a surprise" - industry super boss Garry Weaven on Royal Commission fallout

Industry superannuation guru Garry Weaven doubts there will be civil or criminal referrals stemming from the financial services Royal Commission despite the "fees for no service" scandal and evidence that banks lied to the corporate regulator ASIC. 

Mr Weaven, known as the godfather of superannuation, is retiring as chairman of IFM Investors which manages $107 billion of funds. 

But Mr Weaven believes the federal government will cease its campaign to shake up industry fund boards given scant evidence that industry super has been engaged in misconduct. 

Garry Weaven speaks with the ABC's Peter Ryan.

Redundancies at Nine Entertainment after Fairfax Media merger; new AMP boss in first day on the job

Nine Entertainment boss Hugh Marks confirms that 144 positions will be made redundant as a result of the company's recently approved takeover of Fairfax Media. 

In a statement to staff, Mr Marks said the roles would be eliminated to reduced duplication. 

Also, AMP's new chief executive Francesco de Ferrari begins his first day in Australia's toughest corporate position as he rebuilds the wealth manager after the "fees for no service" scandal emerged at the Royal Commission.

Here's my report from The World Today

Unsettled Christmas as top bank brass await Kenneth Hayne final report and potential civil or criminal referrals

Top bank bosses face an unsettled Christmas break as they await recommendations from the final report of the financial services Royal Commission which ended yesterday. 

Poor culture where consumers were ripped off through the "fees for no service" scandal left bank chief executives and chairs struggling to explain why boards failed to act. 

ABC's Peter Ryan says its likely that Kenneth Hayne will refer certain civil or criminal matters to the Commonwealth Director of Public Prosecutions. 

Here's my wrap of what we've learned

Poor audit and compliance big factors behind banker misconduct: APRA chair Wayne Byres

APRA chairman Wayne Byres has blamed poor audit and compliance systems for some of the shocking misconduct uncovered at the financial services Royal Commission. 

On the final day of hearings, Mr Byres said tough new laws under the Banking Executive Accountability Regime (BEAR) could see bankers face civil or criminal charges. 

ABC's Peter Ryan is covering the Royal Commission.

Brokers should have legal duty to customers ahead of sales, profits - ANZ chief Shayne Elliott

Mortgage brokers should have a legal duty to action in the best interests of clients, ANZ chief executive Shayne Elliott has told the financial services Royal Commission. 

Mr Elliott also conceded that some banks had become fixated on sales and profit after almost 30 years of continuous economic growth in Australia. 

ABC's Peter Ryan is covering the Royal Commission.

NAB drifted, lost its purpose: CEO Andrew Thorburn tells Royal Commission

National Australia Bank chief executive Andrew Thorburn concedes that the bank lost its way and put shareholder interests ahead of customers. 

Mr Thorburn said the N-A-B executives were chasing incentives rather working towards the long term vision of the bank. 

But Mr Thorburn has stopped short of agreeing that fixed pay for bankers would do much to rein in banker misconduct. 

ABC's Peter Ryan is covering the Royal Commission. 

RBA boss raps banks for misconduct but warns tighter regulation could hurt economy

Reserve Bank governor Dr Philip Lowe says Australia's banks have been "severely tarnished" by evidence of shocking misconduct but has warned that tougher regulation might hurt the economy. 

Dr Lowe has cautioned against kneejerk responses as a result of the financial services Royal Commission and says bank boards need to review bonuses and other incentives that have encouraged bankers to act against the best interests of their customers.

Here's my report from the ABC's AM program

"Temper your sense of justice" - CBA boss Matt Comyn on "robust" meeting with predecessor Ian Narev

Commonwealth Bank boss Matt Comyn has told the banking royal commission he was ordered to "temper his sense of justice" by former chief executive Ian Narev. 

Mr Comyn was attempting to abolish a range of junk insurance products and decided not to go the the CBA Board because he believed they shared Mr Narev's views. 

ABC's Peter Ryan is covering the Royal Commission and saying the revelations as culture at the top of the CBA are extraordinary

Collaboration caused consensus, compromise, complacency, CBA boss Matt Comyn tells Royal Commission

Commonwealth Bank chief executive Matt Comyn has conceded that internal policies to promote greater collaboration resulted in consensus that contributed to misconduct or poor ethical behaviour. 

Mr Comyn is the first major bank boss grilled at the financial services Royal Commission this morning where senior counsel assisting Rowena Orr QC insisted the time for apologies is over.

 ABC's Peter Ryan is covering the Royal Commission.

Bank chiefs prepare for Royal Commission grilling amid to confront "culture of greed" evidence. I speak with Macquarie University professor Elizabeth Sheedy

Commonwealth Bank chief executive Matt Comyn and chairman Catherine Livingstone will face the final round of the financial services commission amid expectations of intense grillings. 

Meanwhile, Macquarie University associate professor Elizabeth Sheedy says the "balanced scorecard" used by banks does not improve productivity and tempts executives to chase bonuses rather than acting in the interests of customers. 

Elizabeth Sheedy speaks with the ABC's Peter Ryan.