Trade surplus down to $7.3b caps week's economic data deluge

Australia's trade surplus dips to $7.29 billion in July, falling back from a revised $7.98 billion record high in June. 

The softer than expected result adds to evidence that exports are propping up Australia's economic growth. 

Read the ABS statistics 

Myer chief executive John King says he doesn't see a recession on the horizon after concerns that the cautious consumer cut a slice from June quarter GDP.

Australia's recession-free record in tact but growth at decade low

Australia's economy has slowed to its most sluggish pace since 2009, when the GFC slammed the brakes on GDP growth. In seasonally adjusted terms, 

GDP expanded by 0.5 per cent over the June quarter, or 1.4 per cent for the year — equal to the worst annual growth recorded in the aftermath of the global financial crisis in the September quarter of 2009. 

ABC's Peter Ryan goes through the numbers.

Soft GDP result tipped but 28 year recession record safe for now

The latest economic growth figures out today are likely to put pressure on Australia's ability to maintain its 28 year year recession-free record. 

Economists are tipping GDP growth of 0.5 percent in the June quarter and 1.4 percent over the year. 

However, while exports continue to prop up the economy, there are worrying signs that the consumer is becoming more cautious. 

EY chief economist Jo Masters speaks with ABC's Peter Ryan.

"Strike to save the planet" - Atlassian co-chief executive Mike Cannon-Brookes urges staff to be activists in climate crisis fight

Global tech company Atlassian will support its staff with special paid leave to participate in the so-called "climate strike" later this month. 

Atlassian's outspoken co-chief executive Mike Cannon-Brookes says climate change is now an "existential threat", backing climate activism as the new corporate social responsibility and critical to the survival of capitalism. 

While joining the strike is voluntary, Atlassian staff will be able to use all or part of a week's special volunteering leave to protest the lack of action by world leaders.

Mike Cannon-Brookes singled out Australia's prime minister Scott Morrison when he spoke in Sydney with ABC's Peter Ryan.

Atlassian co-chief executive, Mike Cannon-Brookes (supplied)

Economy softening though 28 recession-free run not over yet. Dr Timo Henckel of ANU is softening up students who've never known a recession

Official economic growth figures scheduled for Wednesday are tipped to show the slowest pace of expansion since the depths of the global financial crisis a decade ago. 

Given Australia's 28 years of world-beating record of growth, economists are starting to warn that an official recession is starting to look more likely in the year ahead. 

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

LISTEN: NBN on time, on budget as chief executive Stephen Rue rejects 5G concerns

The company building the National Broadband Network has repeated the $51 billion project will come in on time and on budget.

The rollout of the NBN is now in its critical final year but continues to face criticism that emerging 5G mobile technologies might become more dominant for consumers and business. 

But NBN Co boss Stephen Rue remains upbeat and says the network will soon be contributing billions of dollars to the nation's economy.

Here's my report from The World Today

Virgin Australia to slash 750 jobs, review flight network, after posting $349m loss

Virgin Australia is planning to cut 750 head office and corporate roles to slash $75 million a year in costs, as it seeks to rebound from a $349 million full-year loss. 

The airline also blamed rising fuel costs and a lower Australian dollar for its worsening financial performance. 

The airline's new boss, Paul Scurrah, says he'd been forced to make tough but necessary decisions.

Here's my report from The World Today

Small business tax dodgers continue to fuel "black economy" - I speak with ATO deputy commissioner

Tax cheats running small businesses continue to gouge billions of dollars from the economy by putting in dodgy expense claims and demanding cash-in-the hand transactions. 

The Australian Taxation Office says while almost 90 percent of small businesses pay income tax voluntarily, the most recent figures show $7.1 billion went into the "black economy" in 2015-2016 through straight-out tax evasion but also the use of software that can disguise  transactions. 

ATO deputy commissioner Deborah Jenkins speaks with ABC's Peter Ryan.

Source: Australian Taxation Office

Shady money transfer operators risk money laundering, terror links warns financial crime agency chief Nicole Rose

Australia's anti-money laundering regulator has launched a blitz on unregistered money transfer dealers who risk being exploited by sophisticated criminal organisations. 

Nicole Rose  - chief executive of the Australian Transaction Reports & Analysis Centre or Austrac - warns small home-based operators are exposed to human trafficking, child exploitation, illegal firearms sales and drug networks. 

In a rare interview, Ms Rose also told AM there's been a 70 percent surge in "self reporting" by the finance sector after the Commonwealth Bank was fined 700 million dollars last year for almost 54-thousand money laundering breaches.

Ms Rose has also confirmed that while Austrac is probing money laundering allegations relating to Crown casinos, she's yet to see evidence of criminal activity

Nicole Rose speaks with ABC's Peter Ryan.

Industry super forces 2030 emissions target on key infrastructure assets

Some of Australia's top infrastructure companies have agreed to cut their carbon emissions by up to 100 percent by 2030 as industry superannuation weighs in on climate change risks.

IFM investors, which manages more than $140 billion for industry super funds, has convinced companies it owns or co-owns to increase their use of electric cars, LED lighting and rooftop solar systems. 

Companies cutting back on their emissions include giant energy network Ausgrid, Melbourne Airport, Brisbane Airport and NSW Ports. 

IFM's director of responsible investments Chris Newton speaks with ABC's Peter Ryan.

"Like going to the casino" - ASIC moves to ban risky binary options and to restrict CFDs. I speak with ASIC commissioners Cathie Armour.

The Australian Securities & Investments Commission is moving to ban two complex financial products where 80 percent of the time mum and dad investors end up losing. 

Binary options are legitimately offered to consumers as "all or nothing" bets but experts say it's like going to the casino where the house almost always wins. 

Read the ASIC consultation here

In addition to binary options, ASIC wants to ban CFDs - another exotic product where investors bet on movements in a share price even though the odds are stacked against them. 

ASIC commissioner Cathie Armour speaks with ABC's Peter Ryan.

Hong Kong protests rattle Qantas as travellers change plans; 6.5pc fall in full year profit; CEO Alan Joyce unveils test non-stop flights to London and New York

Qantas has confirmed that escalating protests in Hong Kong are starting to hurt its business. 

The national carrier is now looking at sending smaller planes to Hong Kong as tourists and business travellers consider staying away. 

Qantas has reported a six percent fall in full year profit to 891 million dollars after its fuel bill surged by more than 600 million dollars. 

Chief executive Alan Joyce is also planning to trial non stop flights to New York and London as the airline navigates growing geopolitical turbulence. 

Mr Joyce speaks with ABC's Peter Ryan.

Gender discrimination on the rise as pay gap narrows. I speak with KPMG Australia chairman Alison Kitchen.

Rising gender discrimination is now the single biggest factor in driving a pay wedge between men and women, according to a report out today. 

Research by the advisory firm KPMG has found that "stubborn gender stereotypes" continue to harm the careers of women especially those who opt to care for children and elderly family members.

Read the online story

The study, conducted for the Diversity Council of Australia and the Workplace Gender Equality Agency suggests targets or quotas could be required to boost the number of women in leadership positions.

KPMG Australia chairman Alison Kitchen speaks with ABC's Peter Ryan.

BHP boss Andrew Mackenzie says US China trade tensions not hurting commodities "just yet"; Seven West Media chief executive James Warburton inherits $444.5 million full year loss

BHP chief executive Andrew Mackenzie says the US China trade war is not yet hurting demand for its commodities. 

But Mr Mackenzie says a prolonged trade dispute could have an impact, warning that nationalism was getting in the way of capitalism. 

Also today, Seven West Media post a loss of $444.5 million in the full year with writedowns the value of its TV licence and newspaper mastheads. 

Chief executive James Warburton said all options were on the table and did not rule out a merger with a major player such as News Corporation.

Here's my coverage from The World Today

Hong Kong on brink of recession as protests hit economy. I speak with Enda Curran, Bloomberg chief Asia economics correspondent in Hong Kong.

The escalating protests in Hong Kong - in addition to fallout from the US China trade war - are likely to take the special administrative region to the brink of recession. 

Hong Kong's economic growth contracted in the most recent quarter and the government has announced a US$2 billion stimulus package to keep consumers and businesses spending. 

With fears rising that China will intervene to break up the protests, Hong Kong businesses are making contingency plans raising the prospect that money could exit the local economy most likely to Asia's other financial hub of Singapore. 

Enda Curran, chief Asia economics correspondent with Bloomberg in Hong Kong , speaks with ABC's Peter Ryan.

Seven West CEO Tim Worner in surprise resignation, career tainted by Amber Harrison affair

Seven West Media chief executive Tim Worner has unexpectedly resigned with chairman Kerry Stokes declaring "now is the time for change". 

Mr Worner, whose leadership at Seven was tainted by his affair with former executive assistant Amber Harrison, will be replaced by James Warburton a one time Seven executive who defected to be Network Ten managing director.

Read the story here

Listen to my analysis on The World Today

Telstra profit dives, cuts dividend, $600 m NBN impact. I speak with Telstra chief executive Andy Penn

Telstra has reported a 40 per cent collapse in its full-year profit to $2.15 billion. 

But the result was roughly in line with market expectations given the ongoing $600 million hit to earnings caused by the NBN rollout. 

Telstra shares fell 1.4 percent with falls amplified by the broader sharemarket plunge. 

Telstra chief executive Andy Penn speaks with ABC's Peter Ryan.

NBN will be complete by mid-2020 and within $51b budget, says CEO Stephen Rue

The $51 billion National Broadband Network will be completed on time and within budget by mid-2020, according to the project's chief executive Stephen Rue. 

But Mr Rue is defying critics of the NBN with strong financial results for the year to June 30, which show the network is now 85 per cent complete compared to 75 per cent a year ago. 

Stephen Rue speaks with ABC's Peter Ryan.

READ the story here

Hong Kong unrest risking "flight of capital" as Hang Seng plunges

The fast-moving events in Hong Kong have the potential to derail the region's lucrative economy and investors worried by speculation that China is poised to cross the border and intervene. 

ABC's Peter Ryan says Hong Kong's main share index has plunged eight percent since June amid rising concerns that money is leaving the region in "a flight of capital".

ASIC defeated in landmark responsible lending case against Westpac. ASIC commissioner Sean Hughes says regulator "takes it on the chin".

The Federal Court has dismissed ASIC's responsible lending case against Westpac and ordered the regulator to pay the bank's costs. 

ASIC had alleged that Westpac breached responsible lending laws on up to 262,000 home loan approvals made using an automated process that relied on the Household Expenditure Measure benchmark, rather than using each applicant's individually assessed living cost. 

ASIC commissioner Sean Hughes tells ABC's Peter Ryan the regulator takes the defeat on the chin but will continue to fearlessly pursue breaches of corporate law.

Source: Justice Nye Perram - ASIC vs Westpac ruling 13 August 19

"No retail recesssion yet" - JB Hi Fi boss Richard Murray upbeat but cautious

JB Hi Fi remains upbeat in the face of a "retail recession" with chief executive Richard Murray cautiously optimistic. 

The electronics and music retailer has posted a 7 percent growth in profit to $250 million on the back of $7.1 billion in sales. 

Mr Murray told ABC's Peter Ryan that consumers are spending despite caution in the leadup to the election.

Households saving not spending as financial comfort gauge shows stress

Sluggish wages growth and worries about a weakening jobs market are dragging down financial comfort levels in households, according to a report from ME Bank out today. 

Despite 28 years of unbroken economic growth, Australians are nervous about their personal wealth with the housing correction taking a toll on confidence. 

ME Bank economist Jeff Oughton speaks with ABC's Peter Ryan.

Rates could to go zero, Reserve Bank governor Philip Lowe concedes

Reserve Bank governor Dr Philip Lowe has conceded that interest rates will stay lower for longer, and could even go to zero. 

Speaking at a parliamentary grilling in Canberra, Dr Lowe says Australia can't escape a world of falling interest rates which have already turned negative in Switzerland, Japan and Europe. 

ABC's Peter Ryan says Dr Lowe has warned wages should be recovering.

Packer share sale to Hong Kong gambling titan to be probed by NSW independent watchdog

James Packer's sale of Crown Resorts shares to Hong Kong gambling tycoon Lawrence Ho will be probed by the NSW Independent Liquor & Gaming Authority. 

Crown says it will "fully cooperate" with the inquiry. 

The investigation will examine whether Crown ensures casinos remain free from criminal influence or exploitation. 

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

Statement from NSW Independent Liquor & Gaming Authority

AMP in $2.3b first-half loss and asks shareholders for another $650m. I speak with AMP boss Francesco De Ferrari

The embattled wealth manager AMP has posted a $2.3 billion loss as misconduct revealed in last year's financial services Royal Commission continues to erode the company's once trusted reputation.

The half year loss comes as AMP continues to compensate customers hurt by misconduct, with three billion dollars in cash flowing out of the business as clients look for someone else to manage their money. 

AMP also announced a $650 million capital raising as part of a strategy to transform the company. 

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

Central banks cut rates as US China trade fears escalate

With the US China trade war biting into confidence, central banks are cutting rates as fears rise about a global recession. 

Central banks in New Zealand, India and Thailand have cut with the RBNZ governor suggesting rates could to to or below zero. 

Investors are now switching from risky shares to the safety of gold and US Treasury bonds. 

ABC's Peter Ryan says nerves are rising with no agreement in sight between the US and China.

Commonwealth Bank boss Matt Comyn warns on US China trade war fallout

Commonwealth Bank chief executive Matt Comyn says escalating trade tensions between the US and China are the troubling backdrop to the full year results from Australia's biggest bank..

The CBA's statutory profit is down 8.1 percent to $8.57 billion, mainly because of customer remediation from the banking Royal Commission, record low interest rates and the removal of a number of fees.

Matt Comyn remains positive but told me there's no escaping potential fallout as relations between the US and China deteriorate by the day.

"Don't panic" - Josh Frydenberg intervenes as US China trade war escalates

As the trade war between the United States and China escalates, Treasurer Josh Frydenberg has intervened this morning to shore up confidence in the domestic economy.

Mr Frydenberg says the escalation is "concerning" but hopes that "cool heads prevail". 

While Wall Street has bounced back from yesterday's steep losses, Mr Frydenberg told ABC's Peter Ryan that there are reasons to be concerned.

Stocks plunge as China ignites currency weapon in trade war with US

Australian shares plunged nearly three percent at the open of trade this morning after Wall Street suffered its worst day this year following a sharp escalation in the US-China trade war. 

China has ignited its currency as a weapon against US tariffs amid speculation that the Peoples Bank of China might consider selling down US Treasury notes in retaliation. 

ABC's Peter Ryan has been following the drama on markets.

Weak auditing could spark another Enron, warns former ASIC boss Greg Medcraft; cautious on Royal Commission criticisms about ASIC being too cosy with regulated companies

Former Australian Securities & Investments chairman Greg Medcraft warns that conflicts of interest in the auditing profession could result in corporate collapses on the scale of Enron. 

In his first broadcast interview since retiring as ASIC boss, Mr Medcraft said conflicts of interests and poor auditing standards risked another Enron, citing the US energy giant's spectacular implosion in 2001 after widespread fraud and corruption went unreported. 

Greg Medcraft, now a director at the OECD in Paris, speaks with ABC's Peter Ryan.

Rates to stay on hold as RBA weights household debt

After back to back interest rate cuts, the Reserve Bank looks likely to hold fire when its board meets tomorrow.

As the RBA assesses the impact of reductions in June and July, analysts are questioning the rate cutting strategy and when its enough to stimulate a softening economy. 

Dr Timo Henckel, a member of the RBA shadow board at the Australian National University says lower rates risk rising household debt.

Retail sales climb but department store ' retail recession' endures

Retailers saw a pick up in sales in June across most categories and in most states, however department stores continue to suffer from the online onslaught. 

Sales rose 0.4 per cent in June, marginally ahead of market expectations. 

ABC's Peter Ryan says the data reflects consumer behaviour in the month after the first of the Reserve Bank rate cuts, but before the second in July and the arrival of tax cuts via people's tax returns.

US rates cut as expected but investors upset it might be a one-off

The US Federal Reserve has delivered on expectations by cutting interest rates by a 0.25 percent. 

It's the first reduction in a decade when the Fed was slashing rates at the height of the global financial crisis. 

Wall Street stocks dropped in response when chairman Jerome Powell said the decision was not the start of a lengthy cutting cycle. 

ABC's Peter Ryan analyses the decision.

Crown's high profile board pressed on allegations reported by Nine newspapers and 60 Minutes

Crown's high profile board of directors include executive chairman John Alexander, former Howard government Minister Helen Coonan; former Qantas chief executive Geoff Dixon and former AFL boss Andrew Demetriou. 

The ABC has requested interviews with board members but is yet to receive a response. 

Here's my report from The World Today

ASX hits post GFC record; Huawei ramps up campaign against 5G ban; where to next with Crown allegations?

I speak with Patricia Karvelas on RN Drive

Stockmarket hits post crisis record, but can the surge continue? And how late payments can crush a small business.

The Australian sharemarket has hit a new high, surpassing the record set in November 2007 in the leadup to the global financial crisis. 

But with the economy softening, how sustainable is the market recovery? 

Also, ABC's Peter Ryan speaks with Greg Charlwood from Australian Invoice Finance on how the late payment of bills is hurting small businesses more than ever.

Huawei ramps up challenge to Australia's 5G ban, declares national security is safe. Communications minister Paul Fletcher spokesman says gov't "stands by decision".

Huawei is stepping up its campaign against the Federal Government after the Chinese telco giant was banned from supplying Australia's 5G mobile rollout last year.

A report by the tech consulting firm Ovum - commissioned by Huawei - says former prime minister Malcolm Turnbull was wrong to ban Huawei on national security grounds.

Read my report here

Huawei's global chief security officer Andy Purdy is the latest to executive visiting Australia trying to overturn the decision and he says the report backs other evidence that 5G networks can be split to protect sensitive information being passed on to Chinese intelligence.

Andy Purdy spoke in Sydney with the ABC's senior business correspondent Peter Ryan.

Huawei chief security officer Andy Purdy (picture supplied by Huawei)

Nuclear should be option in future energy mix: new Minerals Council of Australia chair Helen Coonan

Newly-appointed Minerals Council chair Helen Coonan has become the latest business heavyweight to call for nuclear power to be considered as part of Australia's future energy mix. 

The former Howard government minister says the "nuclear option" should be on the table along with renewables as the resources industry edges away from fossil fuels in the coming decades. 

Ms Coonan has also defended the approval of the controversial Adani Carmichael mine and rejected a prediction that Adani's financial structure is "a corporate collapse waiting to happen". 

In her first broadcast interview as Minerals Council chair, Helen Coonan speaks with ABC's Peter Ryan.

Facebook, Google market power targeted in ACCC landmark report

The market power of Facebook and Google has been targeted in a landmark inquiry into the dominance of tech giants in Australia. 

A landmark report by the the Australian Competition & Consumer Commission makes 23 recommendations including changes to merger laws, a strengthening of the Privacy Act and protections for local journalism and public broadcasters. 

ABC's Peter Ryan says the report has been anticipated by other regulators around the world.

Former RBA boss Bernie Fraser warns on lowering inflation target

Former Reserve Bank governor Bernie Fraser has rejected calls for the central bank's inflation target to be lowered given the persistently low inflation world. 

Mr Fraser who retired in 1996 says the current target isn't broken and has served the economy well over the past thirty years.

The inflation debate is hotting up with Treasurer Josh Frydenberg yet to sign a new monetary policy agreement with the Reserve Bank. 

Here's my coverage from The World Today

Could Treasurer tweak to RBA inflation in low inflation world? I speak with EY chief economist Jo Masters

Debate is hotting up on the future of the Reserve Bank's current inflation target given persistent low inflation around the world. 

Treasurer Josh Frydenberg is yet to sign a monetary policy agreement with RBA governor Dr Philip Lowe with a spokesman confirming he is taking advice from Treasury. 

ABC's Peter Ryan speaks with Ernst & Young chief economist Jo Masters.

BHP boss Andrew Mackenzie warns climate change is an "existential" risk

The head of the world's biggest miner company has conceded that climate change is an "existential risk" to the planet. 

BHP chief executive Andrew Mackenzie warns that the world's dependence on fossil fuels is undeniable and presents the biggest threat since World War 2. 

In a message to the global resources industry and climate deniers, Mr Mackenzie said BHP would reduce its own emissions over the next five years and tackle pollution caused when customers use its products.

Here's my coverage from The World Today

Rare interview with APRA deputy chair John Lonsdale as regulator proposes deferrals and clawbacks of incentives

Top financial executives may soon have to wait seven years to claim all their bonuses, as the banking, insurance and superannuation regulator moves to align pay with long-term performance. 

Read my story here

Under "far reaching" proposals from the Australian Prudential Regulation Authority, lucrative bonuses would be deferred with company boards handed the power to claw back incentives up to four years after they are paid out. 

In a rare broadcast interview, APRA deputy chair John Lonsdale speaks with ABC's Peter Ryan

Heritage Bank to challenge Big 4, exploits Royal Commission fallout

The federal government has been warned that cutting interest rates along won't be enough push wages higher. Advisory firm Ernst & Young says urgent action is needed to deal the skills gap in Australia and stubborn under-employment. 

Also ABC's Peter Ryan speaks with Heritage Bank chief executive Peter Lock who has announced the mutual is going national with bricks and mortar branches in Sydney and Melbourne, in a challenge to the major banks.

"No silver bullet" - new NAB boss Ross McEwan on salvaging bank's reputation

Veteran banker Ross McEwan has been appointed as chief executive at National Australia Bank. 

Read the story here

The former Royal Bank of Scotland boss replaces Andrew Thorburn who was forced to resign earlier this year after scathing criticism from the financial services Royal Commission. 

Mr McEwan - a one time top executive at the Commonwealth Bank - says there is no "silver bullet" in salvaging NAB's reputation but denies he has been handed a "a poisoned chalice". 

Here's my coverage from The World Today

Liddell planned closure a factor in energy competition shakeup and ensuring supply, says government energy adviser

The Australian Energy Market Commission says the planned closure of the Liddell coal-fired power station in 2022 is a factor in a rule change to allow big commercial users to bypass retailers and compete for lower prices. 

In a sign of rising pressure on power generation, the Federal Government's chief energy advisor is urging rule changes to allow large commercial and industrial users to easily reduce their demand in peak periods and sell it back into the grid. 

ABC's Peter Ryan speaks with the AEMC's Suzanne Falvi and ACCC chairman Rod Sims.

Top Huawei executive Walter Ji says gov't "got it wrong" in banning telco from 5G rollout - "we are trusted, we are safe"

Huawei western Europe chief Walter Ji says the Federal Government got it wrong a year ago when it banned the Chinese telco giant from supplying equipment to Australia's 5G mobile network.

Read the story here

Asked by ABC's Peter Ryan if Huawei took any direction from the Chinese government or handed over sensitive intelligence data to Beijing, Mr Ji said: "of course not. We are trusted. Australia can trust Huawei and we are safe". 

Listen to the interview from this morning's AM

Walter Ji in the AM studio - by Peter Ryan

APRA accepts recommendations from scathing review, but says "show me the money"

The banking regulator APRA has responded to scathing criticisms about its culture, leadership and cosy relationships after an independent review called for urgent change. 

APRA chairman Wayne Byres says he supports the recommendations from a capability review but wants more government funding to become a feared enforcer. 

Here's my coverage on The World Today

APRA slammed as timid "behind the scenes" regulator with cultural problems

Source: APRA Capability Review

An independent review is urging the overhaul of the Australian Prudential Regulation Authority slamming it for a poor culture and variable leadership.

In a proposed shakeup of the often secretive prudential regulator, a three member panel chaired by former competition czar Graeme Samuel says the prudential regulator needs tougher penalties, a greater focus on superannuation and the ability to veto the appointment or reappointment of company directors. 

ABC's Peter Ryan analyses the report on AM

Read my report on ABC News Online

Reserve Bank cautious on apartment glut; raises plight of disadvantaged Indigenous Australians

The Reserve Bank has highlighted the plight of disadvantaged indigenous Australians and sustained living standards that are well below the rest of society.

LISTEN TO MY REPORT ON THE WORLD TODAY

The observations came after the central bank held it’s July board meeting in Darwin for the first time since 1968 where it decided the cut the cash rate for the second consecutive month to a new record low of one percent.

“Members observed that the broad statistics on the labour market for the Northern Territory masked the relative disadvantage of the Indigenous population,” according to the minutes from the meeting.

“Indigenous Australians were less likely to complete school and more likely to experience poor health.

“These measures of Indigenous disadvantage were particularly acute in remote locations where it is more difficult to deliver services.”

While the Northern Territory’s unemployment rate is below the national average,, the minutes say that employment has fallen due to a downturn in the mining cycle.

“This had been accompanied by large flows of people moving to other parts of the country,” the minutes say.

In continuing concerns about the global economy, the minutes say risks from trade tensions between the US and China “remain high”.

The minutes acknowledge that risks to global growth and subdued inflation have increased expectations that global central banks will easy monetary police.

The US Federal Reserve is on track to cut rates in the coming months and the Reserve Bank says markets have priced in a further easing.

Some economists are prediction an eventual cash rates next year as low as 0.5 percent.

“The Board will .. adjust monetary policy off needed to support sustainable growth in the economy, “ the minutes say.

The RBA’s caution comes as day after China’s economic growth in the three months to June came in at 6.2 percent, the slower pace one of the result of the its trade impasse with the United States.

China's economic growth slowest since 1992 as trade war bites

China's economic growth fell to its slowest pace in nearly three decades as trade tensions with the United States take an increasing toll. 

With a trade truce not imminent, Australian investors are becoming increasingly nervous with the Australian economy reliant on exports of iron ore and coal to the the world's second biggest economy.

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

Modern slavery, worker exploitation not just in China but also Australia says Ausbil advisor Mans Carlsson-Sweeny

Evidence of forced labour in north-western China has once again raised questions about Australia's links with companies which make their money out of modern slavery. 

I speak with Mans Carlsson-Sweeny head of ESG Research at fund manager Ausbil who advises investors about what they should invest in, and the major risks of financing modern slavery. 

Here's the interview from The World Today

"Canary in coalmine" - financial watchdog finds 85 systemic issues in Royal Commission fallout as complaints surge

The Australian Financial Complaints Authority is investigating 85 systemic issues across the financial services sector and has identified 16 breaches that are potentially "serious contraventions". 

Read the story here

As it deals with a deluge of complaints stemming from last year's financial services royal commission, AFCA says the potentially systemic issues include misleading conduct, processing errors, poor complaints handling and the conduct of employees. 

AFCA chief ombudsman David Locke speaks exclusively with ABC's Peter Ryan.

Source: AFCA six month report

Eleven top lenders warned on dodgy consumer credit insurance; APRA tells NAB, ANZ, Westpac to hold $500m additional risk capital

ASIC has warned eleven major lenders of "significant enforcement action" after finding consumer credit insurance is "extremely poor value" and has consistently failed consumers. 

Also the prudential regulator APRA has told three major banks to put aside an additional $500 million in capital to deal with risk management issues and remediation stemming from the banking Royal Commission.

I speak with ASIC commissioner Sean Hughes and banking analyst Brett le mesurier.

Wall Street bounces on renewed expectations of US rate cut

US Federal Reserve chairman Jerome Powell signals a rate cut is likely in comments to the US Congress:

"A bad deal for most workers" - Grattan Institute warns compulsory super increase to 12pc will slice into retirement savings

Here's my story from The World Today


Workers could be worse off in retirement despite the scheduled increase in compulsory superannuation to 12 percent in 2024, according to updated research out this morning.

The Grattan Institute warns the legislated increase in the superannuation guarantee from the current 9.5 percent to 12 percent would slice $30,000 from average superannuation savings because of reduced access to the age pension and lower wages.

The modelling suggests a 30 year old worker earning $58,000 today would get less than a one percent boost to retirement incomes by losing 2.5 percent of wages each year in additional superannuation contributions.

Grattan Institute director of household finances Brendan Coates warns that unless employers pick up half the cost of the scheduled increase workers are in for a "super shock".

"Raising compulsory super to 12 percent won't translate into higher retirement incomes for middle income Australians," Mr Coates said.

"They'd sacrifice higher wages in exchange for little or no increase in their retirement incomes. The best evidence is that higher super contributions are paid for via lower wages."

The research argues that higher super at retirement is offset by lower pension payments due to the pension assets test and that pension payments will also fall because the aged pension is indexed to wages which would be lower with higher contributions.

Mr Coates also suggests that higher compulsory superannuation will bite into future budget surpluses with taxpayers funding an extra $2 billion to $2.5 billion in tax breaks to high income earners.

"High compulsory super might be justified if it save the budget money. But in fact higher compulsory super actually costs the budget," Mr Coates said.

However, the Grattan Institute research has been slammed by the actuarial firm Rice Warner which describes the warnings as "an obfuscation of facts".

Senior consultant Nathan Bonarius says Rice Warner research has been "twisted" to suit the Grattan argument that opposes the increase in compulsory contributions from 9.5 percent.

In a statement, Mr Bonarius says the contribution level of 10 to 15 percent is necessary and reasobable to "more people self-sufficient in retirement". 

The warning about "a bad deal for workers" comes as the federal government considers a review of the $2.8 trillion superannuation sector which the Productivity Commission last year described as "an unlucky lottery for some".

Compulsory superannuation was established by the Hawke-Keating Labor government in the early 1990s with the current contribution set to rise to 10 percent in 2021 and 12 percent in July 2025.


Follow Peter Ryan on Twitter @peter_f_ryan

ASIC targets short term lenders and 990 percent loans to vulnerable Australians

The corporate regulator has announced a crackdown on short-term lenders who target vulnerable Australians with fees that can go close to a thousand percent of a loan amount. 

ASIC has targeted two firms, Cigno and Gold-Silver Standard Finance, under its new product intervention powers where consumers from low socio-economic groups can be hit with 990 percent interest on loans. 

The regulator has identified "significant consumer harm" where often desperate Australians take out high interest loans just to make ends meet

Here's my report from The World Today where I speak with ASIC commissioner Sean Hughes and Gerard Brody from the Consumer Action Law Centre.

Westpac refunds wrongly-charged mortgage customers

Westpac has been forced to compensate around 40,000 customers who've been ripped off on their mortgage repayments. 

In the latest fallout from last year's banking Royal Commission, Australia's second biggest bank is on track to shell out close to a $100 million after discovering the customers had been charged too much when their loans switched off "interest only" payments. 

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

Markets surge in low rates world. But could a correction be on the way?

Australian shares are set to hit a record high later this week as investors race to secure returns on their money. 

CMC Markets chief strategist Michael McCarthy says the stockmarket is an attractive proposition as central banks continue to lower interest rates.

Reserve Bank likely to cut rates again as experts warn on low rate risks

Money markets see a 70 percent chance that the Reserve Bank will cut rates at tomorrow's board meeting. 

But former RBA board member Prof Warwick McKibbin warns cutting rates too low leave too little firepower for a global shock. 

Warwick McKibbin speaks with the ABC's Peter Ryan.

Bankers face possible jail time despite tough new code, ABA boss Anna Bligh concedes. So hard will it be to change culture at banks?

Australia's banks have signed on to a tough new code of conduct which comes into effect today after some of the shocking revelations from last year's banking Royal Commission. 

Among the changes, banks no longer offer unsolicited credit-card limit increases or charge commissions on lenders mortgage insurance and sales commissions for retail staff will also end. 

But how hard will it be to change the culture at banks - as ASIC continues to investigate possible criminal breaches.

Australian Banking Association chief executive Anna Bligh speaks with the ABC's Peter Ryan.

Christopher Pyne post politics job fails the pub test, says Transparency International chief

Christopher Pyne's post-politics appointment as a consultant to advisory firm Ernst & Young fails the pub test according to Transparency International chief executive Serena Lillywhite. 

Labor strategist Bruce Hawker agrees there are perception problems even though Ernst & Young say Mr Pyne's work will be in the private sector rather than government. 

Here's my report from The World Today

Nuclear energy an option to avert "climate disaster" report warns

The "nuclear option" has been raised as a real possibility to secure Australia's energy needs and to avert a "climate disaster" within fifty years. 

A report from Industry Super Australia says nuclear energy shouldn't be excluded and that a switch to renewables such as wind and solar won't be enough. 

Industry Super Australia chief economist Stephen Anthony speaks with the ABC's Peter Ryan.

Read the story here

Late payments holding up $7 billion in small business cashflow - I speak with Xero chief executive Trent Innes

Small and medium businesses are losing as much as $7 billion a year because bigger companies aren't paying their bills on time. 

A study of 150,000 conducted by the business software company Xero found late payments on invoices worth $115 billion create a "domino effect" by tying up cash flow. 

Xero chief executive Trent Innes speaks with ABC's Peter Ryan. 

Cash on the demise but not a collector item - yet

The demand for cash might be on decline but consumers will still require hard currency as a backup, according the finder.com editor-in-chief Angus Kidman. 

However, regional and remote communities that don't have access to digital payments still need to be served despite the demise of cash in metropolitan Australia. 

Angus Kidman speaks with the ABC's Peter Ryan.

Depositor pain considered in RBA rate cut decision, minutes show

The impact of lower interest rates on depositors - in particular older Australians - was a key consideration in the Reserve Bank's decision to to cut the cash rate to a new record low earlier this month. 

Read the minutes here

The minutes from the central bank's June meeting show the "implications of lower interest rates on household incomes" was discussed at length acknowledging that "changes in interest rates can have different effects on different groups of households". 

However, ABC's Peter Ryan says the RBA cut the cash rate regardless to lower the jobless rate towards 4.5 percent.

Uncapping university placements is driving enrolments — and drop-outs

A new report out today questions suggests extra university places for disadvantaged students has resulted in more dropouts. 

The Productivity Commission says 21 percent of students who entered under the current "demand driven" system that provides more spaces either failed their degrees or dropped out all together. 

Productivity Commission chair Michael Brennan speaks with ABC's Peter Ryan.

NBN scams on the rise as Australian fleeced of $500,000

Scammers posing to be from the National Broadband Network are fleecing consumers of an average $110,000 a month according to the Australian Competition and Consumer Commission. 

ACCC acting chair Delia Rickard tells ABC's Peter Ryan that more than $500,000 has been scammed so far this year, an increase of 300 percent on 2018.

Adani approval against backdrop of growing concerns about coal exposure

The approval of the Adani mine comes as Norway's sovereign wealth fund receives approval to dump billions of dollars of stocks linked to fossil fuels. 

ABC's Peter Ryan says Adani has been forced to self-fund the project after banks in Australia and China declined to bankroll it.

Unemployment remains steady at 5.2pc despite an extra 42,300 jobs

Australia's unemployment rate remained stuck at 5.2 per cent last month, despite the creation of 42,300 jobs in May. 

The Bureau of Statistics figures show part-time employment increased by 39,800, while full-time employment only rose by 2,400. 

However, ABC's Peter Ryan says the jobs creation won't be enough to stop the Reserve Bank from cutting interest rates further this year.

Netflix the new barbeque stopper with streaming services on track to dominate

A report from the advisory firm PriceWaterhouseCoopers says video streaming services like Netflix and Stan are on track to outstrip free-to-air television and subscriptions to News Corporation's Foxtel. 

Increasingly popular streaming services are tipped to grow by 13.7 percent between 2019 and 2023 with subscription services like Foxtel falling 2.9 percent in the same period as the market continues to fragment. 

Read the report here

Report author and PWC partner Justin Papps speaks with ABC's Peter Ryan.

Retail sector "clearly in recession" as economy slows: NAB survey

Australia's private sector is losing momentum, with business conditions "well below average" and weakening further, according to the National Australia Bank's monthly business survey. 

Chief economist Alan Oster tells ABC's Peter Ryan the retail sector is "clearly in recession".

ABC chair Ita Buttrose condemns AFP raid, vows to fight attempts to 'muzzle' broadcaster

ABC chair Ita Buttrose has "grave concern" about this week's Australian Federal Police (AFP) raid at the national broadcaster, which she says were "clearly designed to intimidate". 

The Afghan Files stories, by ABC investigative journalists Dan Oakes and Sam Clark, revealed allegations of unlawful killings and misconduct by Australian special forces in Afghanistan and were based off hundreds of pages of secret Defence documents leaked to the ABC.

Here's my report from The World Today