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Posts Tagged ‘demand’

Australians need to save more for the economy to avoid a more rapid run-up in inflation, triggered by nation’s rising terms of trade, the Reserve Bank said today.

“In putting together the Reserve Bank’s forecasts it has been assumed that more of this boost to income is saved than was the case in the earlier boom in the terms of trade,” RBA assistant governor Phillip Lowe.

“This reflects two factors. The first is the different position of the federal budget and the second is the more cautious approach to spending currently being displayed by the household sector.”

The federal budget, handed down this week, contained no major increases in public spending and is expected the return to a surplus by 2012-13.

In that time, the RBA forecasts Chinese steel production will continue to drive demand for Australian iron ore and coal strong, boosting the nation’s terms of trade.

Terms of trade are the prices of a nation’s exports relative to its imports.

“If this lift in saving does not occur, then demand in the economy could well be stronger than forecast, and this would put additional pressure on capacity,” he said.

A lack of spare capacity in the economy has pushed the year-to-March inflation figure to 2.9 per cent from 2.5 per cent in the year to December, which surprised the RBA, Mr Lowe said.

“Disinflationary forces in the economy are not quite as strong as previously expected, largely because the economy has performed better than previously expected,” Mr Lowe said, in the speech delivered to Colonial First State Investment Forum in Sydney.

The RBA expects inflation to fall only to 2.75 per cent later this year, less than originally anticipated after the release of the March data.

Retail sales have remained lacklustre since the middle of last year, after the end of the government’s cash stimulus grants to households during the financial crisis. Six interest rate rises since October have also cut into demand at retailers, with a number of businesses including Fantastic Furniture, Clive Peeters and Woolworth’s flagging weaker sales ahead.

The RBA lifted interest rates to 4.5 per cent his month, creating more headwinds for shoppers. The latest rate rise added another $46 to the average monthly repayment cost on a $300,000, 25-year mortgage.

Investors currently foresee no chance of an interest rate rise in June, but predict the official cash rate will be at 5 per cent within a year, according to Credit Suisse data.

The central bank predicts 3.25 per cent economic growth this year accelerating to 3.75-4 per cent growth in the next couple of years, amid rising prices for commodities exports.

Source  :  www.watoday.com.au

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The Minister for Immigration and Citizenship, Senator Chris Evans, today welcomed the final report of the Baird Review on the legislation governing international education.

It is most pleasing to note Mr Baird’s support for the Rudd Government’s changes to the skilled migration program announced on 8 February 2010.

The skilled migration program changes will encourage overseas students to focus on obtaining a quality education from a high quality provider by removing incentives for students to apply for a course simply in the hope of being granted permanent residence.

Under the changes, the wide-ranging migration occupations in demand list was revoked and will be replaced mid-year by a new and more targeted skilled occupations list to be developed by the independent body, Skills Australia.

The new skilled occupations list will be tightly focused on high value skills that will assist in addressing Australia’s future skills needs. It will deliver a mix of skills across the professions and trades in areas such as healthcare, engineering and mining.

International students currently studying in Australia who hold a vocational, higher education or postgraduate student visa will still be able to apply for permanent residence if their occupation is on the new skilled occupations list.

Students currently studying a course in an occupation that is not on the new skilled occupations list will have until the end of 2012 to apply for a temporary skilled graduate visa which will enable them to spend up to 18 months in Australia to acquire work experience and find an Australian employer willing to sponsor them.

It must be remembered that a student visa is just that: a visa to study. It does not give someone an automatic entitlement to permanent residence.

International students should be focused on obtaining a good qualification from a quality education provider in a field in which they want to work. The changes will in no way impact on international students coming to Australia to gain a legitimate qualification and then return home.

Similarly, Australia’s migration program is not and should not be determined by the courses studied by international students.

Australia will continue to welcome international students and provide an opportunity for those who have the necessary qualifications and skills to find an Australian employer willing to sponsor them for a permanent visa.

Source  :  www.immigov.au

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Reserve Bank governor Glenn Stevens has signalled interest rates are on their way back up with mortgage rates likely to edge up between half and a full percentage point.

Giving evidence to the House of Representatives economics committee in Canberra, Mr Stevens said the RBA’s focus continued to be on what mortgage rates were offered by commercial banks rather than on the Reserve’s official cash rate.

He said given the commercial banks had lifted rates over and above what the RBA had done, there was still about a half and a full percentage point to go before mortgage rates were back to what the Reserve would consider close to their long term average.

“There’s a little distance to go yet before I think you could characterise the setting of interest rates as normal or average,” he said.

The RBA surprised markets by leaving official rates on hold at its February meeting.

Mr Stevens said on top of the Reserve’s own lift in official rates, the commercial banks actions had effectively delivered three and a half interest rate rises to mortgages cases, and in the case of Westpac customers, four rate hikes.

He said one of the advantages of lifting rates as the RBA did in the last three months of 2009 was that it could hold rates in February and get a clearer picture of how the economy was travelling.

“You get that luxury when you can wait a little a bit further down the line,” he said.

Mr Stevens said Australia had performed much better than even the RBA had expected out of the global recession.

But he warned that meant the economy was now heading into an upswing stronger than otherwise would have been the case.

“With the economy having had only a mild downturn with begin the upswing with less spare capacity than would typically be the case after a recession,” he said.

“There’s less scope for robust demand growth without inflation starting to rise again down the track.

“Monetary policy must be careful not to overstay a very expansionary setting.”

Mr Stevens said the resources sector in particular was looking to grow quickly, with the terms of trade likely to head back to the record highs seen in 2008 this year.

He also highlighted the strength of Australia’s sovereign debt position, hosing down fears the country was carrying too much debt.

“Australia’s position is by any measure very strong indeed,” he said.

The governor also played down fears raised by Opposition finance spokesman Barnaby Joyce that Australia could default on its debts.

Mr Stevens said Australia had never defaulted before and there were no signs it would now.

“I very much doubt there ever will be,” he said. 

“Monetary policy must be careful not to overstay a very expansionary setting.”

Mr Stevens said the resources sector in particular was looking to grow quickly, with the terms of trade likely to head back to the record highs seen in 2008 this year.

He also highlighted the strength of Australia’s sovereign debt position, hosing down fears the country was carrying too much debt.

“Australia’s position is by any measure very strong indeed,” he said.

The governor also played down fears raised by Opposition finance spokesman Barnaby Joyce that Australia could default on its debts.

Mr Stevens said Australia had never defaulted before and there were no signs it would now.

“I very much doubt there ever will be,” he said.

Source www.thewest.com.au

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QANTAS will increase international airfares by up 5 per cent this week, offering further evidence that the recent run of exceptionally cheap air fares is ending.

In its first international fare increase since June last year, Qantas will raise first-class and business-class fares by 3 per cent on Friday. The increases will affect popular routes such as Britain, Europe, Singapore and Hong Kong but not the hotly contested routes to the US, reports The Australian.

Premium economy and economy tickets will rise by 5 per cent, reflecting the relative strength of the leisure markets as travellers responded to the cheaper airfares and a high Australian dollar. These increases apply to wider range of destinations that include North America.

“Qantas reviews pricing continuously on all routes, taking into account demand and capacity, competitor actions and business performance,” a Qantas spokeswoman said.

Qantas has already been successful in raising domestic airfares by 5-10 per cent and desperately needs to get international fares up to improve yields, which in October were 24 per cent down on the previous year.

Qantas will test the water to see whether the increases affect passenger loads and whether competitors match them.

But even if the new fares stick, increased competition and continuing market softness is unlikely to see ticket prices return to previous high levels any time soon.

Read the full report in The Australian.

Source  :  www.news.com.au

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Chefs and hairdressers will top the list of most sought-after jobs as Australia emerges from the wake of the global financial crisis. It is thought that the highly transient nature of these jobs, with a high turnover and burnout rate, contributes to the skills shortage in these areas and the inability of supply to meet demand.

Other in-demand occupations will include health-care workers, educators, automotive and metal tradespeople, and IT professionals. The accounting and IT sectors are expected to experience high demand because of industry growth over the next two years.

Not so lucky are those in advertising, public relations and finance, as yet further job cuts are expected in these industries in the next couple of years. Those in marketing have been particularly hard-hit as companies slash marketing budgets in an attempt to stay afloat.

The construction industry has also been struggling as many building and development projects ground to a halt, leaving many construction workers out of work. However, with the Federal Government expected to fund new projects with its stimulus package until 2011, things could start looking up in the near future for the building industry. Industry insiders predict an impending resurgence and consequent shortage of construction workers and apprentices.
 
Some projections anticipate that unemployment will peak at around 7.5 per cent in mid-2010 to early 2011, but those sectors benefiting from public funding and the stimulus package – such as the health sector, education and infrastructure – should be well-protected and enjoy sustained demand.

Jobs such as chef, cook, hairdresser, automotive electrician, panelbeater, metal machinist, welder, bricklayer, carpenter, electrician, plumber, accountant, computing professionals and a variety of health care professionals (dentists, GPs, nurses and many others) all appear on the current Migration Occupations in Demand List (MODL) as the government attempts to fill in some of the gaps through skilled migration.

Not surprisingly given this outlook, enrolment in vocational courses in hospitality, hairdressing, automative trades and IT are up as students and job-seekers attempt to find work and fill the skills shortage gap. If you are at a career crossroads, trying to decide what to study or just trying to find a job, perhaps you, too, should consider jumping on the skills shortage bandwagon – and land yourself a job in the process.

Source  :  www.careerfaqs.com.au

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There are plenty of passionate Cliff Richard fans in this town, with the musical legend’s Burswood Dome concert alongside The Shadows sold out.

Fans have been starved of the chance to see the band live since 1961, resulting in unprecedented demand.

A second concert was announced. The band will be playing again on Sunday February 7.

Legendary guitarist Hank Marvin, who plays in The Shadows, lives a mostly quiet existence in East Perth, but will surely bust out some hot tunes during the tour.

It is 50 years since Cliff Richard and The Shadows got together. This Australian tour, billed as their Final Reunion, will bring them back to Oz for the first time since 1961.

Promoter Paul Dainty said there had been “unprecedented demand for tickets for this tour.  Cliff Richard and the Shadows have not been to Australia since 1961 so it’s been a long wait to see this legendary band”.

Tickets for the Sunday February 7 show go on sale on September 17, from midday.

Bookings can be made through www.ticketek.com.au or 132 849.

Source  :  www.watoday.com.au

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pet airwaysPEOPLE love their pets, sometimes more than they love other people.

So it is not a surprise that a start-up company, Pet Airways, has had a massive response since offering to transport dogs and cats in a much more caring way.

Precious pets won’t be left to fend for themselves in cages in a freezing cargo hold – an experience that so scared a Jack Russell terrier owned by husband-and-wife team Alysa Binder and Dan Wiesel that they decided to launch Pet Airways.

All of the passengers using the new airline’s cargo plane get to travel in the front of the plane in special carriers installed instead of seats.

They are escorted to the plane by pet-loving attendants who check on their precious cargo every 15 minutes.

The pets are given pre-boarding walks and bathroom breaks and also have access to a “Pet Lounge” where future fliers can wait and sniff the furniture before flights.

The demand for the service has been staggering, with flights rapidly booked out for the first two months.

Operating between regional airports in New York, Washington, Chicago, Denver and Los Angeles, Pet Airways charges about $315 per trip, which is comparable with charges on less pet-friendly airlines.

The company is already looking to add more flights and cities soon, and hopes to fly to 25 destinations within three years.

Betsy Saul, co-founder of Petfinder.com which ranks the pet-friendliness of various airlines, said she was excited about the expected impact Pet Airways would have on pet travel across major airlines.

”The entire industry will stretch because of Pet Airways,” Betsy told the Associated Press.

Source : www.news.com.au

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