ECONOMY

An official of the Reserve Bank of Australia (RBA) lauded the high-quality lending practices of the country's banks which helped avoid a subprime housing slump similar to what happened in the U.S.

Virgin Australia has benefited from the months-long labour dispute at Qantas by registering a first half profit of $51.8 million. It is more than double the $23.8 million the air carrier had compared to the same period a year ago.

The Australian share market is trading lower at lunchtime in the East, following an unconvincing lead from offshore markets and due to a lack of major economic data to guide investor sentiment. The All Ordinaries Index (XAO) is down 19.2pts or 0.4pct to 4352.9.

Luxury retailer David Jones reported on Thursday sales result that best reflects the generally sombre mood of the local retail industry. The numbers offered a snapshot of what to expect for the rest of the year.

The New Zealand dollar fell after European Union finance ministers handed Greece a 130 billion euro lifeline to avoid bankruptcy in March, the New Zealand Herald reported.

SR Exports, Australia's largest producer of tomatoes, blamed on Wednesday the country's supermarket giants for their poor business which led to the agricultural company's voluntary administration and loss of 60 jobs.

About 2,700 small enterprises folded up in Australia in the last quarter of 2011, indicating the weak national economy outside the booming mining sector.

The Australian share market is trading flat in the early session, after US and European share markets failed to rally overnight, despite Eurozone officials approving the second Greek bailout deal. At lunchtime in the East, the All Ordinaries Index (XAO) is lower by 4.2pts or 0.1pct to 4364.

The 300 employees of shuttered Air Australia were given assurances through email by the company's director, Michael James, that the business was sound hours before it was placed on administration.

More jobs in Australia continue to be axed as companies go into administration or shutter outlets. The latest jobs to be cut belong to employees of a tomato producer and steel manufacturer.

To appease Alcoa workers in Geelong who may lose their jobs as the company reviews the viability of its Point Henry aluminium smelter facility, Alcoa has dangled a more than 100 per cent hike compensation package. The big if is conditioned on the workers being posted in Saudi Arabia,

The Australian share market is trading higher at lunchtime in the East, as investors await the outcome of talks between Eurozone finance ministers to secure a Greek rescue deal, and digest another busy day of results. The All Ordinaries Index (XAO) is firmer by 19.6pts or 0.5pct to 4352 in early trade.

A large French bank, Societe Generale, doubts the big four Australian banks' claim of rising funding costs, which they cited as a reason for hiking mortgage rates Feb. 7, while the Reserve Bank of Australia held the overnight cash rate at 4.25 per cent.

Cash flow problems and slow payment of invoices are just some of the most common problems that businesses have to face.

Bank customers wishing to compare the lending rates of major Aussie banks should research the facts by themselves as these will not be volunteered to them, according to consumer advocacy group Choice.

Despite successive net losses it posted in the past years, U.S. retail giant Costco reportedly plans to further expand in the Australian market following its entry in 2008.

Australia's steelmaking industry continue to struggle as the country's biggest player, BlueScope Steel, reported another half-year loss on Monday, showcasing anew the company's flagging fortunes over the past few years.

Bendigo and Adelaide Bank reported on Monday a first-half profit drop of 67 per cent due to weak demand for loans and higher funding costs. Bendigo registered a net profit of $57.9 million in the second half of 2011, down from $173.9 million for the same period in 2010.

The Australian share market has kick-started the trading week on a strong note, thanks to positive offshore momentum. The People's Bank of China announced on Saturday that it would cut the reserve requirement ratio (RRR) for banks by 50 basis points, effective from February 24. The move is being seen as a good sign across Asian markets as it frees up capital and boosts liquidity. There are also hopes Eurozone Finance Ministers will agree on the Greek bailout deal later this evening. At luncht...

The Australian jobs market remains solid across the economy, with the weaker bits in retailing and manufacturing more than offset by the rapidly growing sectors such as resources, healthcare and education.

Queensland Premier Anna Bligh said in Friday that she will lobby with Qantas Chief Executive Alan Joyce not to shed 500 aircraft engineering and catering jobs in the flag carrier. She made the statement a day after Mr Joyce announced a review that would lead to the axing of jobs after Qantas posted an 83 per cent decline in profit due to the labor dispute and fleet grounding.

Australia's jobless rate improved a bit last month, supporting the country's steady economic gains but drawing mixed reactions from economists.

The Australian Bureau of Statistics recently released an update regarding the labour force status of Australia for Jan. 2012. According to the report, the number of people who are employed increased to around 11 million while the figures for unemployment decreased to 623,700. In terms of unemployment rate, it is still considered as "steady" with 5.2%.

Another large company in Australia may axe hundreds of jobs. Employees of the two Caltex refineries at Kurnell in Sydney and Lytton in Brisbane have expressed fear of losing work after the oil firm wrote down $1.5 billion value of its refining assets as it continues to conduct a review of refining future in Australia.

Despite hundreds of jobs axed since the start of 2012 as large Australian firm reported lower profits, the country's unemployment rate actually went down to 5.1 per cent in January from 5.2 per cent in December 2011.

Westpac reported on Thursday unaudited quarterly profit of $1.5 billion, which is 3 per cent lower compared to the same quarter a year ago of $1.55 billion.

Australian reaps more benefits from the ongoing resources boom despite its two-speed effect on the domestic economy.

The labor dispute that has plagued Qantas for months has taken its toll on the air carrier's bottomline. The flag carrier reported on Thursday an 83 per cent decline on its half year net profit which plummeted to $42 million compared to a year ago.

The research firm, Gartner, Inc. recently disclosed that the Australian Business Intelligence (BI) software revenue will grow to at least 11.7% thus reaching an estimated amount of AU$496.4 million in the year 2012. The predicted revenue includes all BI platforms, analytic applications, and corporate performance management (CPM) software.