O75 Public Administration

PM looks to nationalise failing firms

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Original article by Simon Benson
The Australian – Page: 1 & 4 : 20-Mar-20

The federal government may be forced to nationalise some companies as part of its response to the economic problems being caused by the coronavirus epidemic. Virgin Australia is cited as one company that the government cannot allow to fail, as having a domestic aviation network essentially dominated by one airline once the worst of the virus has passed would not be considered tolerable. Economist Chris Richardson notes that the government is going to have to spend huge amounts of money to fix the Australian economy "without batting an eyelid".

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VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH

Government relents on Newstart

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 20-Mar-20

The second phase of the federal government’s stimulus package will include an increase in the Newstart allowance for people who are currently unemployed. The Coalition had previously flagged a higher income payment than Newstart for workers who lose their job due to the coronavirus outbreak. However, it has long opposed an increase in unemployment benefits, arguing that getting a job is the best form of welfare. Prime Minister Scott Morrison has conceded that getting people off Newstart and into the labour market will be difficult over the next six months due to the economic impact of the pandemic.

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AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Major hit, big job losses ahead: RBA

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Original article by Patrick Commins
The Australian – Page: 4 : 20-Mar-20

Reserve Bank governor Philip Lowe says the unemployment rate can be expected to rise in coming months, as the coronavirus is likely to result in "significant" job losses. However, he says the labour market should rebound quite fast if the virus’s outbreak in Australia can be contained. Lowe also said the virus and measures to combat its spread will have a "severe" impact on the economy, although he is hopeful that this will be temporary. Lowe has indicated that housing market activity is likely to be affected by the pandemic.

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RESERVE BANK OF AUSTRALIA

$105b bridge across the chasm

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Original article by Matthew Cranston, James Eyers, James Frost, Jonathan Shapiro
The Australian Financial Review – Page: 1 & 4 : 20-Mar-20

Reserve Bank of Australia governor Philip Lowe has warned that the cash rate is likely to remain at the new record low of 0.25 per cent for three years. The emergency interest rate cut on 19 March is the RBA’s first out-of-cycle move since 1997; it has coincided with the announcement of a government bond-buying program which aims to ensure that the benchmark three-year bond yield remains at around 0.25 per cent. Lowe says there will be no limit to the bond-buying program. The RBA has also announced a $90bn line of credit for banks to provide low-interest loans to small and medium enterprises; the federal government will provide an additional $15bn to small lenders to help with their funding.

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RESERVE BANK OF AUSTRALIA

Criminal charges for food profiteering

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Original article by Tom McIlroy
The Australian Financial Review – Page: 3 : 20-Mar-20

Home Affairs Minister Peter Dutton claims that some members of the community are profiteering from coronavirus-inspired demand for groceries. Dutton has warned that people who are found to be buying groceries in bulk in order to send them overseas or to sell them on the black market could face criminal prosecution. Agriculture Minister David Littleproud notes that Australia produces three times the amount of food that is consumed domestically, so there is no need for panic buying.

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AUSTRALIA. DEPT OF HOME AFFAIRS, AUSTRALIA. DEPT OF AGRICULTURE AND WATER RESOURCES, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

New Zealand PM Jacinda Ardern has highest Net Trust Score of all political leaders while Australian PM Scott Morrison has a Net Distrust Score to overcome

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Original article by Roy Morgan
Market Research Update – Page: Online : 20-Mar-20

A special Roy Morgan survey on ‘Trust’ and ‘Distrust’ of government leaders shows New Zealand Prime Minister Jacinda Ardern scores the highest ‘Net Trust Score’ of all – meaning the ‘Trust’ felt toward the New Zealand leader far outweighs the ‘Distrust’ – according to a special Roy Morgan Snap SMS Survey of 974 Australians aged 14+ conducted over the last two days. Other leaders to score highly on Net Trust include Opposition Leader in the Senate Penny Wong, Victorian Premier Daniel Andrews, NSW Premier Gladys Berejiklian and former ALP Deputy Leader Tanya Plibersek. Prime Minister Scott Morrison is mentioned as a ‘Trusted’ leader by more Australians than any other. However, there are far more Australians that have a ‘Distrust’ of the Prime Minister than ‘Trust’ him – leaving Morrison with a ‘Net Distrust Score’. Other prominent political leaders that have ‘Net Distrust Scores’ include Home Affairs Minister Peter Dutton, US President Donald Trump and former National Party Leader Barnaby Joyce.

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ROY MORGAN LIMITED

ANZ-Roy Morgan Consumer Confidence hits decade low at 100.0

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Original article by Roy Morgan
Market Research Update – Page: Online : 18-Mar-20

ANZ-Roy Morgan Australian Consumer Confidence fell 0.4% to 100.0 in the week ended 15 March, a somewhat surprising result given the news flow. The Federal Government’s fiscal package may have contributed to the resilience. Current economic conditions fell 9.3%, adding to declines of 8% and 16.6% in the previous two reading; future economic conditions strengthened for the second week in a row, rising 2.1%. Meanwhile, current financial conditions gained 3%, while future finances declined 0.5%. The ‘Time to buy a major household item’ subindex fell by 0.2%, its third straight weekly loss, and it remains at an 11-year low. The four-week moving average for inflation expectations was stable at 4.1%.

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ROY MORGAN LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Operation Covid: save jobs

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Original article by Geoff Chambers, Simon Benson, Ewin Hannan, Robyn Ironside, Greg Brown
The Australian – Page: 1 & 6 : 18-Mar-20

The global death toll from the coronavirus has risen to 7,950; more than 197,000 people worldwide have been diagnosed with the respiratory illness, including 452 in Australia. The federal government will respond to the crisis with new measures aimed at supporting businesses and protecting jobs, in addition to the $17.6bn stimulus package that has previously been announced. Council of Small Business Organisations Australia CEO Peter Strong says many businesses could collapse without financial relief, with the potential loss of 500,000 jobs. The government will also provide a $715m financial assistance package for airlines, with Qantas CEO Alan Joyce warning that the virus is the "single biggest shock" the sector has ever seen.

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COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, QANTAS AIRWAYS LIMITED – ASX QAN

A majority of Australian businesses say we’re in recession

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Original article by Roy Morgan
Market Research Update – Page: Online : 18-Mar-20

A majority of 56% of Australian businesses say Australia is in its first ‘recession’ in nearly three decades, according to a special Roy Morgan Snap SMS Survey of 621 Australian businesses. Analysing by States shows over two-thirds (68%) of Queensland businesses say Australia is now in a ‘recession’ – higher than any other State. A majority of businesses in New South Wales (56%) and a slight majority in Victoria (51%) also agree that Australia is now in a ‘recession’. Although a small sample, Tasmanian businesses are more likely than those in any of the three larger States to say Australia is in a ‘recession’. In contrast a slim majority of businesses in both Western Australia (53%) and South Australia (52%) say Australia is ‘not’ in a ‘recession’.

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ROY MORGAN LIMITED

Economy in recession fear businesses

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Original article by Adam Creighton
The Australian – Page: Online : 18-Mar-20

Businesses across the nation have declared the economy in recession for the first time in almost 30 years, as the death toll from the deadly coronavirus reaches five and infections soar above 450. Almost 60 per cent of more than 600 Australian businesses surveyed by Roy Morgan said the economy was in "recession" already, including almost 70 per cent in Queensland – more than any other state – whose tourism sector is expected to be hit especially hard by the collapse of international travel. "Some industries have been hit harder than others but majorities of businesses in most industries agree Australia is in a ‘recession’ including Manufacturing, Construction, Wholesale trade, Accommodation & Food services and Education & Training," said Roy Morgan chief executive Michelle Levine. "Although it’s obvious Australia is already in a ‘recession’ there are only a few things that can save Australia from experiencing a full-blown ‘depression’ which is recognised as a fall in GDP of at least 10 per cent," she added. The last recession in Australia in the early 1990s saw the jobless rate surge from 6.6 per cent to 9.5 per cent in the 12 months to 1991.

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ROY MORGAN LIMITED