Coalition commits to Labor's super deal

One of the key agitators in Labor's leadership fiasco said he won't vote for raids on superannuation.

Penny Wong has refused to comment on 'gossip' about the government's budget plans for superannuation.

Andrew Main asks Clime Investment Management’s John Abernethy how superannuation will go and what the Australian dollar will do in 2013.

Shadow Treasurer Joe Hockey. Source: The Australian

THE Coalition says it will maintain Labor's commitment to boost employer superannuation contributions as the Gillard government continued to fuel speculation it would raid the sector in the May Budget.

Opposition treasury spokesman Joe Hockey yesterday said an Abbott-led government would keep in place Labor changes to the compulsory employer superannuation contribution from 9 to 12 per cent.

"We have already stated that we are going to continue with that programme to increase it to 12 per cent," Mr Hockey said.

"That is the only initiative out of the mining tax that we have committed to. So, nothing has changed."

The boost is due to start this year on July 1 and will increase a quarter of a per cent in 2012/13 and 2013/14.

It will then jump half a per cent every year until 2020.Julia Gillard again yesterday brushed off speculation her government was planning a hit to superannuation contributions and earnings of the wealthy in the May 14 budget.

"I can tell you with a lot of certainty what we will do. We will increase superannuation from 9 to 12 per cent for working Australians to give them a decent retirement income," Ms Gillard said.

"What you can always do is trust Labor with superannuation. It wouldn't be in this country if we hadn't brought it here."

Ms Gillard said the Coalition if elected would rip money from lower paid Australians under their plan to reintroduce the 15 per cent tax on superannuation for 3.6 million Australians earning $37,000 and under.

"That's one in three workers facing a superannuation cut," she said.

Labor MPs added fuel to the speculation yesterday with Cabinet minister Craig Emerson saying the government's fiscal position needed to be protected.

"Where there are tax concessions that are going to damage the fiscal position of the government of the day of course we need to look at that," Dr Emerson told ABC radio.

"It is the task of every government to make sure the budget is not only sustainable in the short term but also the long term."

Assistant Treasurer David Bradbury would not rule out his party would raid super, despite being asked repeatedly on the matter.

"The minute we start ruling things out we move onto the next thing," Mr Bradbury told Sky News.

Speculation over the budget move follows a call from Treasury secretary Martin Parkinson last year that superannuation tax concessions needed to be changed in order to preserve the tax revenue base as the population ages.

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Cypriots patient as banks reopen

People gather in front of Laiki (Popula) Bank as the country's banks re-open following 12 days of closure. Source: Getty Images

PATIENT Cypriots formed orderly queues and waited in the sun for their banks to reopen after nearly two cash-starved weeks.

Despite fears of a bank run that led the island to impose harsh capital controls, some Cypriots were even depositing money instead of withdrawing it following the closure of the banks on March 16.

The calm held despite some branches opening later than the scheduled time of 10am, with packs of foreign journalists, who in some cases outnumbered those in the queues, showing more signs of agitation than the locals themselves.

Kyriakos Vourghouri, owner of a minimarket, waved a yellow deposit slip showing an amount of 678 euros ($869) as he emerged from the bank.

"I didn't withdraw any money. I deposited money," he said. "The problem is not in Cyprus, it is in Europe, which has become gangrenous."

Dozens of people queued outside the banks in Nicosia for about an hour before the opening time, which was finally announced late on Wednesday after repeated delays while Cypriot authorities tried to avert financial meltdown.

Banks posted armed guards outside many branches while tellers, who unlike in other European countries are not housed behind glass security, urged customers not to vent their frustrations on them.

Guards dished out Greek-language copies of a decree issued by Finance Minister Michalis Sarris, which imposes limits on how much of their capital they can touch, including a daily 300 euro withdrawal limit.

The calm after the storm defied the sombre predictions of one Cypriot queuing outside a branch of Laiki, or Popular bank, which will be wound up as part of the bailout deal Cyprus negotiated with its creditors.

"It will be a very bad day - there will be swearing and a lot of anger," Philippos Philippou, an unemployed electrician wearing a purple sweatshirt, said outside Laiki in Nicosia's Makarios Street.

But when he emerged from the bank along with his mother, Mr Philippou flashed a smile and said: "There is confidence, everything was fine."

Around 30 people queued up outside the branch, many of them women in comfortable walking shoes ready for a long wait.

A bearded man, wearing a blue sweatshirt, who would not give his name, said: "I will take all my money slowly, slowly."

Depositors face severe restrictions to prevent a run on the banks that could wreak havoc on the island's already fragile economy but most put on a brave face saying there was no point in queuing when the amounts involved were so small.

"I'm not going to the bank today. I have to be in the shop these hours. There's going to be queues so I'm not going to spend so many hours there to get 300 euros," said Roula Spyrou, 50, a jewellery shop owner.

But along Makarios Avenue, where many designer shops and cafes have closed in the past months as the island's debt crisis intensified, stores remained mostly empty on Thursday.

Under a deal agreed in Brussels on Monday, Cyprus must raise 5.8 billion euros to qualify for a 10-billion-euro bailout from the "troika" of the European Union, European Central Bank and International Monetary Fund.

Depositors with more than 100,000 euros in the top two banks - Bank of Cyprus (BoC) and Laiki - face losing a large chunk of their money. Laiki will be wrapped up and largely absorbed by the larger BoC.

Many customers were angry with the EU - and particularly its economic powerhouse Germany.

"Yesterday my house, tomorrow your house," said one man.

"It's not the European Union, it's a German union to destroy us, everyone wants to destroy Cyprus," said Giorgiano, a kiosk owner.

"It's the first time I feel like this since 1974," he added, referring to the occupation of northern Cyprus by Turkish troops.

An elderly man with white hair added: "I have a Mercedes but from now on I will never again buy anything from Germany."

Mr Vourghouri predicted that Germany will be the biggest loser because Chancellor Angela Merkel "ignited the fire."

"Look on the streets and you will see that 70 per cent of the cars are Mercedes and BMWs. People will stop buying them and dealerships will close one by one," he said, adding he too will stop buying German products. "From now on I will buy from Afghanistan or Nicaragua if I have to."
 

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S&P 500 climbs to all-time high

THE Standard & Poor's 500 has set an all-time closing record in a sign of growing confidence in the US economy.

The widely watched, broad-based index, a bellwether of US markets and the US economy, closed at 1,569.19, up 6.34 points, or 0.41 per cent, pushing past the previous record of 1,565.15, set on October 9, 2007.

The narrower Dow Jones Industrial Average, which burst through its October 2007 record three weeks ago, propelled to yet another new closing peak of 14,578.54, up 52.38 points, or 0.36 per cent.

The tech-rich Nasdaq Composite finished up 11.00 points, or 0.34 per cent, at 3,267.52.

The S&P 500's run yesterday came after a revised estimate for the fourth quarter of 2012 that placed GDP growth at just 0.4 per cent, lower than some analysts had expected.

New jobless claims came in worse than forecast, and the Chicago purchasing managers index reading pointed to slowing growth.

"The data was somewhat on the negative side," said Paul Edelstein, an economist at IHS Global Insight.

But he said markets were likely reassured by news out of Cyprus, where banks reopened relatively uneventfully.

But the surge in US stocks also suggests investors are distinguishing the US's prospects from those of Europe. In spite of Thursday's data, key recent indicators, such as housing and unemployment, have improved.

"We're doing well and the eurozone's not, but at least on the current path, the eurozone shouldn't matter too much for the US," Edelstein said.

"There is confidence that the US has decoupled from Europe and the US financial system is likely to be immune to Europe and their current level of crisis there," said Chris Low, chief economist at FTN Financial.

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$338M Lotto winner's shop for sale

Pedro Quezada, the winner of the $338 million Powerball jackpot, has put his shop up for sale and gone into hiding. (AP Photo/Julio Cortez) Source: AP

• Winner of $338 winner lottery puts shop up for sale
• Pedro Quezada should close store over dangers: customer
• $338 million Lotto winner to buy a car and have fun

THE immigrant who won $338 million Lotto win has put a "For Sale" sign on his shop and gone into hiding.

Father-of-five Pedro Quezada originally planned to keep the Apple Deli Grocery store in Passaic, New Jersey, New York, open but his $338 million Powerball jackpot winnings has changed his life.

Others in the neighborhood agreed that Quezada should close the store because of the extra attention he would get in a low income area, the New York Post reported.

"I think it brings about some perils and dangers, especially in a poor neighborhood like this,” said Juan Rengifo, 47, a customer of the store.

Carlos Queszada, 38, Pedro’s brother, said the hard-working immigrant is ready for easy street.

“He won the lottery, he doesn’t want to work,” Carlos said.

“He’s planning to travel and have fun in life. He wants to enjoy the money. I think with all that money you shouldn’t have to wake up and work. Would you stay out here?”

Quezada’s son, Casiano, told his barber that he would still get his hair cut at his old hunt but added that he had to get a new cell phone because his old number had become inundated with calls.

Casiano opened the store early yesterday and began stocking shelves, but shut it down when a CNN crew clogged the tiny aisles.

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Battering cheap, low-quality imports

Source: The Daily Telegraph

FISH and chip takeaway shops would be forced to display signs revealing whether cooked fish is top-quality Aussie seafood or a cheap import under a proposal by veteran Nationals Senator Ron Boswell.

As tens of thousands of Australians embark on the Good Friday ritual of buying a fish meal, Senator Boswell yesterday warned they could unwittingly be served catfish from Vietnam.

He said this could be "easily fixed by one little word saying imported or local".

It would also apply to cafes and restaurant menus.

While Senator Boswell declared the plan to batter imports would be a "priority" for an Abbott government, it is not formal Coalition policy.

Small business spokesman Bruce Billson said it would involve too much red tape and customers should just ask the fish and chip shop owner.

Supermarkets and other shops are already required to have country-of-origin labels on uncooked seafood but only the Northern Territory requires a sign on cooked fish.

With up to 85 per cent of all seafood consumed in NSW now from other countries, the industry is concerned "misinformation" about imported products could cause a downturn in consumption.

General manager of the Sydney Fish Market Bryan Skepper yesterday urged Easter customers to buy Aussie fish but said all imported seafood was strictly controlled and safe to eat.

"We have extremely good import quarantine procedures and country-of-origin labelling is prescribed through the Food Standards Code." he said.

Primary Industries Minister Katrina Hodgkinson said: "Under NSW labelling laws all imported (uncooked) products are required to be clearly identified as such at the point of sale.

"Ask your retailer if you are unsure and if they can't reassure you the product is local then look for a home-grown option elsewhere."

Senator Boswell said seafood lovers "are prepared to pay extra for Australian seafood" and a sign would help the struggling fishing industry, which was battling to compete with cheap imports.

"When someone goes into a fish and chip shop and buys a piece of fish it could have come from anywhere," he said.

"Fish like farmed Vietnamese catfish, called basa, is far cheaper for shops to buy than good quality Australian fish."

It seems our love affair with fresh seafood is not waning.

The fish market's pre-Easter auction yesterday produced a record sale of seafood - $1,006,934 - $200,000 up on the previous best.

More than 350 tonnes of seafood is expected to be traded at the fish market over Easter, including 34 tonnes of prawns and 180,000 oysters.

The Sydney Fish Market expects 50,000 visitors during the long weekend.

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Aust dollar lower, bonds firmer

Economic and political uncertainty in Italy dragged down European markets while falls in banks and tech stocks hit Wall Street.

THE Australian dollar has opened lower, dipping below 104.5 US cents during the overnight session as worries about Europe prompted investors to turn to the US dollar.

A negative day on Wall Street also dampened appetite for the Australian dollar.

At 7am AEDT today, the local currency was trading at 104.47 US cents, down from yesterday's local close of 104.68 US cents.

Overnight, the local currency moved between a low of 104.19 US cents and a high of 104.78 US cents.

BNP Paribas currency strategist Vassili Serebriakov said the ongoing turmoil in Cyprus and Italy were the main concerns for markets.

"The headlines have been worrisome from Europe and that has been weighing on sentiment," Mr Serebriakov said from New York.

"It was more of a risk off kind of environment, with equities generally lower and the US dollar stronger."

The banks in Cyprus were due to open on Thursday, while Italy appears no closer to forming a government a month after elections were held.

Despite the move lower in offshore trading, the Australian dollar was the best-performing currency among the Group of 10 nations in March.

The local unit has risen about 2.2 per cent against the US dollar so far in March, and was up about two per cent against the Japanese yen and more than four per cent firmer against the euro.

Mr Serebriakov said there was "probably an element of profit taking" during the overnight session, given the Australian dollar's recent gains.

In economics news today, the TD Securities-Melbourne Institute inflation gauge for March is due for release.

Also, the Australian Bureau of Statistics will publish job vacancies figures for the three months to February and the Reserve Bank of Australia releases financial aggregates figures for February.

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Australia's cheapest petrol days

Petrol is an ongoing cost of living pressure on Australian families. Source: Supplied

AUSTRALIAN motorists could save as much as $200 a year on fuel by boycotting the bowsers on Thursday and Fridays.

One of the most comprehensive independent studies of petrol prices ever undertaken in this country has revealed the end of the working week is the peak in 90 per cent of 114 cities and towns analysed.

There was not a single place where either Thursday or Friday was the cheapest day to fill up, yet that was when demand peaked, the study's author, University of New England economics professor Abbas Valadkhani, told News Limited. The ACCC also found that Thursday was the day of highest demand in Sydney, Melbourne, Brisbane and Adelaide in 2012.

By shifting purchases to the cheapest days "motorists can counter-attack" against petrol retailers, Professor Valadkhani said.

"Everyone in Australia, avoid Thursday and Friday  that is the message," he said.

In nearly two-thirds of locations, the cheapest day to buy fuel was Tuesday. Sunday was best in one-in-five places.

Publicly funded and published in the revered journal Energy Policy, Professor Valadkhani's analysis of seven years of data identifies 16 locations where the potential savings are significant.

These have the strongest price cycles - and all are either mainland state capitals or major regional centres.

In Queensland they are Brisbane, Caboolture, Caloundra, Gold Coast, Ipswich and a region including Maryborough and Gympie. The NSW locations are Sydney, Newcastle and Wollongong. Canberra is also on the list.

Metropolitan Adelaide is the only South Australian location on the shortlist – but it had the largest potential saving of 5.4c/L by purchasing on Tuesday instead of Thursday.

Metropolitan Melbourne, Geelong and Sunbury were the only Victorian locations on the shortlist.

The more significant price differentials identified by Professor Valadkhani offer a motorist who buys on the day with the cheapest average an annual saving of as much as $200 if filling a family-sized car weekly.

"Motorists can certainly get a better deal if they are conscious of the fuel price cycle," said Australian Automobile Association executive director Andrew McKellar.

"If they do seek out information about when the price is at a peak and when it's dropping they can use that to their advantage."

Mr McKellar said the "constraint" on Professor Valadkhani's findings was that the price cycle had "changed substantially in the past 18 months". ACCC research suggested the changes began in 2010.

The cycle is now less predictable. Rather than being seven days in length, it tended to be 10-12 days long. That meant the day of the peak and trough changed.

"The fact that it's less predictable works to the advantage of the major retailers in the market," Mr McKellar said.

"The unfortunate reality for many motorists is that they get ripped off by the vagaries of the cycle."

In Brisbane, the ACCC's monitoring of petrol prices in 2012 found the peak of the cycle was most common on a Saturday and least common on a Tuesday or Wednesday. The low occurred most often on a Wednesday.

In Sydney, the high point was most commonly on a Saturday then Thursday. There was not a single peak on a Tuesday. Low points were most frequent on Wednesdays and Fridays.

In Adelaide, the top was most common on a Wednesday. However, this was also the day when the bottom was most common, along with Sunday.

In Melbourne, the peak of the cycle was most common on Sunday then Thursday and least common on a Wednesday. The low was most common on a Wednesday.

Professor Valadkhani said his research showed that motorists in rural areas "never enjoy the discount day".

And he found that the price impact of long weekends and public holidays were "insignificant" when compared to day-of-week differences. This is consistent with earlier findings by the ACCC.

The Australian Institute of Petroleum - which represents BP, Mobil, Caltex and Shell - did not respond to repeated requests for comment.

The AAA's Mr McKellar said he supported the ACCC's investigation of the way fuel retailers share information. The ACCC launched a probe last year, which is ongoing.

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Cyprus prepares for banks reopening

A man sits in front of empty ATMs outside the National Bank of Cyprus, which has been closed for two weeks. Source: Getty Images

CYPRUS has imposed limits on money transfers and hired extra security guards as it prepares for the planned reopening of its banks.

A banking official said Wednesday that new controls will include restrictions on large-scale transfers from the country's two largest and most troubled lenders, Bank of Cyprus and Laiki, when they reopen later today. Both are being restructured and big depositors face losses of as much as 40 per cent.

Authorities are looking to increase the daily withdrawal limit from 100 euros to 300 euros (from $130 to $386), while payroll payments will be allowed in order to help businesses, which have taken a huge hit as people cut down on their spending amid the uncertainty swirling about the banks.

The restrictions will be kept for at least a week until the situation stabilises, said the official, who spoke only on condition of anonymity because the measures have yet to be officially announced.

Meanwhile, private security firm G4S will dispatch 180 of its staff to all bank branches across the island to keep a lid on any possible trouble, said John Argyrou, managing director of the firm's Cypriot arm.

"Our presence there will be for the comfort of both bank staff and clients, but police will also be present," he said.

Mr Argyrou said he doesn't foresee any serious trouble unfolding once banks open their doors because people had time to "digest" what has transpired.

"There may be some isolated incidents, but it's in our culture to be civil and patient, so I don't expect anything serious."

Another 120 staff from G4S would be assigned money transportation duties.

Banks were closed on March 16 as politicians scrambled to come up with a plan to raise 5.8 billion euros that would qualify the country for 10 billion euros in bailout loans from fellow eurozone partners and the International Monetary Fund.

Under the deal clinched in Brussels early on Monday, Cyprus agreed to slash its oversized banking sector and inflict hefty losses on large Laiki and Bank of Cyprus depositors.

Laiki is to be restructured, with its healthy assets going into a "good bank" and its nonperforming loans and toxic assets going into a "bad bank," officials have said. The healthy side will be absorbed into the Bank of Cyprus.

The board of directors of both banks has been fired and administrators appointed to handle the restructuring and absorption, the banking official said.

Bank of Cyprus CEO Yiannis Kypris issued a statement saying the Central Bank governor had asked him verbally on Wednesday to resign.

"These are very difficult times for everyone. The Bank of Cyprus was and must remain the basic support of the economy and our society in the effort to deal with the crisis our country is going through," Mr Kypris said. "I hope that the handling of this transition phase will respect the workers, shareholders and customers of the Bank of Cyprus."

Cypriot officials said the deal would mean the country would shift its focus away from being an international center of financial services. That is expected to cost jobs, adding to the unemployment rate which now stands at around 14 percent.

Business leaders and cabinet ministers were meeting with President Nicos Anastasiades on Wednesday to find ways to get the economy going again.

To give consumers a break, electricity prices will drop 5.75 per cent next month. Over the next couple of weeks, authorities will look into how they can reduce them by another 3 per cent, said Commerce Minister Giorgos Lakkotrypis.

Interior Minister Socrates Hasikos said his ministry is looking to cut red tape in order to attract foreign investment. He said Chinese investors have shown increasing interest in property sales, adding that a single real estate office has sold some 400 residences to Chinese buyers.

"There has always been interest from foreign investors," said Mr Hasikos. "The question is how we as the government, as Cyprus, can convince all these investors ...that the environment is secure, that whatever happened has now passed and that they can continue securely investing in Cyprus."
 

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Aust dollar lower, bonds firmer

Economic and political uncertainty in Italy dragged down European markets while falls in banks and tech stocks hit Wall Street.

THE Australian dollar was trading near 104.5 US cents at noon, after a quiet morning with little news to push the currency one way or the other.

At 1200 today, the local currency was trading at 104.52 US cents, down from Wednesday's local close of 104.68 US cents.

The Australian dollar opened the local session at 0700 AEDT at 104.47 US cents and was largely unchanged during the morning, moving between 104.54 US cents and 104.44 US cents.

"We remain in very tight ranges waiting for further news flow from Europe," Deutsche Bank foreign exchange strategist John Horner said.

The Australian dollar has been one of the better performing currencies in the past month, having climbed about 2.2 per cent against the US dollar and two per cent against the Japanese yen.

The local unit was also up more than four per cent against the euro, in response to the banking crisis in Cyprus and the ongoing stalemate in Italy, which is yet to form government a month after elections were held.

"The Italian political stalemate was brought back to centre stage last night, particularly given the weakness of the bond auction there," Mr Horner said.

Mr Horner said he expected further euro weakness in the weeks ahead.

The Australian Bureau of Statistics' job vacancies figures, which came out a bit weaker than expected, had no impact on the currency, Mr Horner said.

Meanwhile, the Australian bond market was stronger at noon.

At 1200 today, the June 10-year bond futures contract was trading at 96.565 (implying a yield of 3.435 per cent), up from yesterday's local close of 96.470 (3.530 per cent).

The June three-year bond futures contract was at 97.140 (2.860 per cent), up from 97.020 (2.980 per cent) previously.

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Bankrupt showbiz mogul owes $7m

Can you undo a bad first impression?

WE are often told we have 30 seconds to make a good first impression. But  what if you make a really, really bad one?

Extra hours won't help you get ahead

WORKAHOLICS and office stalwarts beware: just because you've become part of the furniture doesn't mean you're primed for promotion.

• Careers: Men want toys, women seek options

How to deal with warring co-workers

EVER been in a situation where two of your colleagues hate each other so much that everyone around them is affected? Here's what to do.

Men want toys, women seek options

BLOKES want to work with fighter jets and big trucks while women value job security and flexible conditions, a new survey has revealed.

The 20 companies Aussies want to work for

IF you could work anywhere in the country, where would you choose? These employers offer great perks, a lot of flexibility and interesting work.

ACTU in $30 minimum-wage rise push

THE Australian Council of Trade Unions will lodge a claim this week for a $30-a-week pay increase for Australia's lowest-paid workers.

Shop charges customers $5 to browse

A SPECIALITY grocery store owner is charging customers to browse after becoming fed up with people who enquire but don't buy.

Safety first for business awards

REPEATED accidents to students learning how to use electrical tools in the classroom is what encouraged small business owner Bruce Lewis to finally take action.

Small business: The revolving door

THE fifth Small Business Minister in 15 months, Gary Gray, already is facing a rebellion from the sector where the Federal Government has an approval rating of just 14 per cent.

Unions attack building guidelines

UNIONS NSW has slammed Treasurer Mike Baird over new guidelines to undermine their influence.

Business a poster child for charity

BUSINESS is just ticking along but requests for help from the local kindergarten, footy club and seniors groups keep coming in thick and fast.

How to join the pyjama workforce

ABOUT two-thirds of all Australian micro and small businesses are based at home.

Log on to your business future

FOR many small businesses, getting online is akin to a child taking its medicine.

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RBA tells homeowners to resist loans

RBA tells homeowners to save and not take on attractive home loans. Source: Supplied

HOUSEHOLDS are being urged to continue bolstering their saving and resist the attractive loans on offer from the major commercial banks by the Reserve Bank, as the economy works its way out of its historically high debt levels.

Despite financial stress and mortgage arrears falling in most parts of the country, the RBA said the household savings rate of just over 10 per cent, which is well above its 20-year average, must be maintained and debts paid down.

And the central bank's half-yearly Financial Stability Review warns investors the upward swing in global markets this year may only be temporary with the crisis in Cyprus a clear warning of the risks that still remain as the global economy works its way out of its financial hangover.

The RBA's increasingly optimistic outlook has seen JP Morgan yesterday push back its tip of another and final interest rate cut, to take the official cash rate to a record low of 2.75 per cent, from May to November.

This comes as the RBA confirms the cost of wholesale funding - the level at which banks borrow from each other - has dropped to its lowest level since the GFC began in 2008.

But instead of using this drop to lower borrowing costs for consumers, the banks have continued to strengthen their capital, funding and liquidity positions.

The Financial Stability Review also said that while ANZ accounted for a large part of the growth in Asia with its super regional strategy to generate 25-30 per cent of its business from the region by 2017 - all the big banks have increased their exposure in the past five years.

International Banking Statistics shows Australian banks assets in Asia has risen from $27 billion in 2007 to $112 billion at the end of last year.

But the report warned that while the more prudent approach of the post global financial crisis period has helped bring household debt-to-income ratio down from 153 per cent in late 2006 to 148 per cent it was still to high and paying down debt must continue to be priority.

The US rate peaked at 133 per cent during the sub-prime boom.This more cash-conscious approach has however seen household's mortgage buffer surge to over 20 months - this is scheduled repayment plus interest - in the past five years.

"Housing loan arrears rates have continued to improve across most parts of the country and other indicators of household financial stress remain low," the RBA report said.

"Nonetheless, household indebtedness and gearing remain around historically high levels. It would therefore be undesirable from a financial stability perspective if households were to exhibit less prudent behaviour than they have over the past few years.

"This increasingly conservative approach to family finances has seen the net worth of the average household rise to $721,000 - this includes property assets, superannuation and savings in the March quarter.

It is back from a low of $632,000 in mid-2008 but still below its 2007 peak of $772,000 before the crisis hit.

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VB winning in battle of the brews

Source: Herald Sun

A BEEFED-UP VB has knocked off rival XXXX Gold from the top shelf as the nation's top selling beer.

Latest Nielson figures show the VB now makes up 12.2 per cent of all beer consumed in Australia with XXXX Gold slipping to 11.9 per cent.

A bitter brewery rivalry started between Victoria and Queensland after the nation's sunny state last year stole the mantle as the country's favourite beer with a market share 12.4 per cent.

Tell us below: What's your favourite brew?

VB reigned as king of beers for 19 years but drinkers lost flavour with Aussie icon after the brew was tinkered with and it's alcohol content dropped to 4.6 per cent.

Drinkers have been flowing back to VB after Carlton United Breweries decided to bring back the beer to its original 4.9 per cent alcohol content, original flavour and packaging late last year.

The move is costing CUB tens of millions of dollars in excise tax, but the gamble is paying off with sales up for the first time in 10 years.

``Seeing Vic Bitter's return to being Australia's favourite beer is heartening,'' Victoria Bitter general manager Richard Oppy said.

``Our drinkers were right; we shouldn't have tinkered with the brew.''

aleks.devic@news.com.au
 

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Can you undo a bad first impression?

Said the wrong thing? Don't worry, most things can be fixed with a genuine apology. Picture: Thinkstock Source: news.com.au

WE are often told we have 30 seconds to make a good first impression.

Others will say you have seven seconds to make a good first impression. Or is it three?

While the networking gurus can't seem to agree on the exact timing, the point they make is that first impressions matter. A lot.

But what if you make a bad one? Can it be undone?

Etiquette expert Anna Musson said it was possible but difficult.

"It is much easier to turn a good first impression into a bad overall impression than it is to turn a bad first impression into a good one," Ms Musson said.

Ms Musson said first impressions were so hard to change because people's senses go into overdrive when they first meet someone.

"We like to think that we're right and once we've made up our mind about a person we need to be persuaded otherwise," she said.

To undo a bad first impression takes "at best hours, at worst years".

"If their initial assessment is that you are shady, you will have to work to really show your integrity, honesty, authenticity, hard work - and actually produce what you say you will," she said.

"Whereas if someone meets you for first time and thinks 'this person is a hard worker' they'll only slowly realise you're not."

Some simple but common things people do that make a bad first impression:
Give a weak handshake
Swear
Get too drunk
Tell an offensive joke or story
Get someone's name wrong
Be unaware of who someone is when you first meet them (especially a boss or executive)

Business etiquette expert Danielle Di-Masi says it is hard to come back from a bad first impression made during a job interview or at an event, because you're unlikely to see the person again.

"But in most cases you're going to have an ongoing relationship with someone. You can fix almost anything," Ms Di-Masi said.

"Just don't keep making the same mistake".

If you are unsure whether you offended someone when you first met them Ms Musson suggests getting a second opinion.

"Ask someone else's advice – 'Was I out of line here?' Because we can justify our own behaviour easily," she said.

If you have offended them, Ms Musson says apologise.

"But if they don't accept your apology and it's a genuine apology it becomes an issue with them and not you," she said.

Ms Di-Masi said some bad impressions were easily fixed, like calling someone the wrong name.

"All you need to say is 'Michelle I'm so sorry I've been calling you Sally', that's all you should say and make sure from then on you're calling her the right name," she said.

"But what people do is they often drone on, in any situation they make it big deal and a drama and people get sick of you.

"Because then the issue isn't that you did something wrong it's that you're being a bit of a drama queen."

Other mistakes are more serious but still can be fixed by saying sorry, for example telling a story that offends or sending an email that gets misunderstood.

"Then you need to man-up or woman-up and you need to just apologise," Ms Di-Masi said.

"If you were in the wrong take ownership, there's nothing worse than an apology and a blame."

Some mistakes, like getting too drunk at work drinks, are difficult to come back from but not impossible.

"In Australia there are many different work cultures that encourage getting drunk and having heaps of drinks, things like investment banking and recruitment have a very big drinking culture," Ms Di-Masi said.

"And you see rookies coming in and wanting to be part of it and getting drunk, but people might not know you in any other setting apart from these business drinks."

If you do something really embarrassing Ms Di-Masi said "you are just going to have to be sad and feel sorry for yourself".

"Don't send out an all-work email. If you really did act like a pork chop, when you see your manager just apologise."

And make sure you don't do it again.

If you don't know what you have done but are sure you have offended someone, Ms Di-Masi suggests asking them about it.

"Say 'I feel I may have offended you, can you let me know?'" she said.

"If they tell you [what you have done] and you think 'Are you serious? That is ridiculous' you have to decide if it's worth it, if it's really a relationship you want to foster."

If so, say sorry.

If you try to apologise for something and the person doesn't accept it or continues to be passive aggressive, you just have to cut your losses.

"Some people are just super, super sensitive," Ms Di-Masi said.

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Food prices fall, alcohol and fuel rise

The price of fruit and vegetables fell in March but any savings have been eaten up by other cost of living rises. Picture: File Source: news.com.au

FRUIT and vegie prices fell this month, but any savings were eaten up by increases in the cost of fuel, alcohol and tobacco.

The TD Securities Melbourne Institute Monthly Inflation Gauge increased by 0.2 per cent in March for a 2.1 per cent annual pace, which followed a flat monthly result in February.

It was the lowest annual inflation outcome for eight months, renewing expectations of another official interest rate cut by June.

Consumer prices rose slightly in the month as increases in the cost of alcohol, tobacco, clothing and footwear were offset by falls in fruit and vegetables, household appliances and audio, visual and computing equipment.

Fruit and vegetable prices fell by 1.4 per cent in March while the price of automotive fuel rose by 0.5 per cent.

TD Securities Head of Asia-Pacific Research Annette Beacher expects forecasts for the March quarter consumer price index to increase by 0.5 per cent in the quarter to be 2.6 per cent higher than a year ago.

She said the Reserve Bank of Australia would leave the cash rate on hold at three per cent until June amid benign inflationary pressures.

"Recent events in Europe are a reminder that offshore risks remain, even if the risks of outright financial market contagion are minimal," Ms Beacher said.

TD predicts a final 25 basis point rate cut to 2.75 per cent by June if a soft inflation report is delivered.
Ms Beacher said the inflation rate was expected to fall slightly by the end of the year.

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Wealthy cash in on income boom

Incomes have risen, for those on high incomes. Picture: Thinkstock Source: Supplied

INCREASES in average incomes over the past 20 years have been shared by all, but high wage earners have benefited most, a new report shows.

The Productivity Commission study of income trends in Australia has found average incomes rose from about $800 to $1100 a week in the two decades to 2009-10, expressed as 2011-12 dollars.

On average the increase was 38 per cent since 1988-89.

But the commission said while the gains of the past 20 years had flowed to both high and low income groups, "income has grown faster among high earners than lower earners".

According to the report, pay for the top tier of workers increased by almost 70 per cent from just under $2000 to around $3200 a week (in 2011-12 dollars).

The inequality was attributed partly to differences between the average earnings of full-time, part-time and self-employed workers, and the faster growth in numbers of part-time workers over the 20-year period.

"The increase in population share of this 'low income' group in total workers moderated the growth of labour income when all employees are considered," the report said.

Over the two decades the number of part-time workers increased by 136 per cent to 3.1 million, while full time workers grew by 43 per cent to 6.6 million, the report said.

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