THE NEWS WRAP: SME borrowers braced for interest rate hikes

Small business borrowers are set to be hit by further interest rate woes this week, with analysts predicting that the Commonwealth Bank and NAB will both hike their rates.

Both banks are to review their mortgage and business rate levels, with widespread predictions that they will follow ANZ and Westpac in increasing the cost of lending.

Joe Hockey, the Shadow Treasurer, said that the Government has had a “soft lettuce” response to the rising rates.

Abbott overtakes Gillard in economic management: poll

Australian voters think that Tony Abbott is more competent on economic matters than Julia Gillard, according to a new poll.

In a complete reversal of their economic reputations prior to Gillard’s U-turn on the carbon tax, Abbott now leads the Prime Minister by 9% when it comes to handling the economy, The Australian poll found.

The Sun reeling following arrests

Rupert Murdoch’s News Corp has been plunged back into crisis with the arrest of five senior journalists at his leading UK tabloid, The Sun.

The five arrests, linked to the ongoing investigation into phone hacking, include The Sun’s deputy editor. Murdoch stressed that he will continue to publish The Sun, despite the closure of The News of the World over phone hacking claims.

Overnight

The Dow Jones Industrial Average dropped 89.31 points, or 0.7%, to 12,801.15 on Friday. The Australian dollar fell to 106.71 US cents.