THE NEWS WRAP: Australia’s competitiveness ranking tumbles due to high labour costs

Australia has fallen to its lowest competitiveness level relative to 60 advanced economies, according to a new IMD World Competitiveness Centre report.

The study, which ranked countries based on economic performance, infrastructure, government and business efficiency showed Australia fell to 16^th place largely off the back of rigid labour laws.

“In the end, the golden rules of competitiveness are simple: Manufacture, diversify, export, invest in infrastructure, educate, support SMEs (small and medium-sized enterprises), enforce fiscal discipline and, above all, maintain social cohesion,” said IMD director Stephane Garelli.

Nine proposes WIN television station takeover in order to secure cricket rights

Nine Entertainment has proposed acquiring its WIN Television controlled affiliate stations in Perth and Adelaide in the hopes of funding a bid for cricket rights through cost savings.

Nine’s private equity owners, Apollo and Oaktree, are looking to float the broadcaster in the middle of next year and are unwilling to spend $450 million to match the Ten Network’s bid for the Cricket Australia broadcasting rights.

Executives at the broadcaster now hope that the acquisition of the two stations from Bruce Gordon’s WIN television will produce cost savings of $15 million per year, allowing the network to match Ten’s offer.

Murdoch promises aggressive cost-cutting at newspapers ahead of News Corp split

News Corporation chairman Rupert Murdoch has vowed to aggressively cut costs at his company’s newspapers, ahead of a split that will divide his media empire into broadcasting and publishing companies.

Aside from job cuts and the creation of a “permanent start-up sensibility” in the publishing company, Murdoch says subscription prices might be increased due to a weak advertising market.

“We’re being very realistic and not expecting any big expansion. There’s no doubt the internet has taken a lot of business,” Murdoch said.

Overnight

The Dow Jones Industrial Average is down 0.69% to 15,302.80. The Aussie dollar is up to US96.41 cents.