THE NEWS WRAP: Business confidence needs budget boost

Business leaders have called on the Federal Government to inject much-needed political stability in next week’s Budget, with calls for an overhaul of the industrial relations regime.

In a week in which Labor has been dogged by controversy over the Craig Thomson and Peter Slipper affairs, industry figures have said business confidence needs to be boosted by Tuesday’s Budget. 

Garnaut warns of Chinese resource slowdown

The Australian economy is set for years of turbulence due to its over-reliance on China’s demand for coal and iron ore, according to a leading economist.

Ross Garnaut, who was also previously Australia’s ambassador to China, warned that predictions of continued strong Chinese demand for our resources may be mistaken.

”As the Australian economy is restructured to expand the role of the resources sector, the inevitable fluctuations in activity in China’s market economy will challenge Australia’s capacity to maintain economic stability,” Garnaut writes in a paper called The Contemporary China Resources Boom.

ANZ not drawn on rate cut

ANZ Bank has refused to say whether it will pass on the Reserve Bank’s 50 basis point interest rate cut onto customers, a day after NAB lowered its own rates.

Having unveiled a record half-year profit of $2.9 billion yesterday, ANZ declined the opportunity to announce its own rate cut, with chief executive Mike Smith claiming that its funding costs were still high.

Overnight

The Dow Jones industrial average fell by 10.75 points, or 0.08%, to 13,268.57. The Australian dollar edged up to 103.37 US cents.