IMF chief says euro's future secure

Lagarde told delegates at the Boao Forum that she hoped the recent deal for Cyprus would spell an end to European bailouts. Picture: AFP/Ed Jones Source: AFP

INTERNATIONAL Monetary Fund chief Christine Lagarde says the euro has a solid future as she expressed hopes no more EU countries will need bailouts.

"I think the collective political will ... to maintain, defend, protect and enhance the monetary zone and currency zone has been largely underestimated," Lagarde told an audience in China on Sunday.

"The euro has a future and has a long-standing one."

The former French finance minister spoke during a question-and-answer session that followed an address she gave at the Boao Forum for Asia, an annual conference of political and economic leaders held on the Chinese island of Hainan.

Her appearance prompted questions from audience participants about the situation in Cyprus, where the Mediterranean country struck a 10 billion euro ($A12.5 billion) bailout deal with the European Union, the European Central Bank and the International Monetary Fund - the so-called troika.

Asked specifically about the prospect for further crises, Lagarde said: "I don't have a crystal ball.

"My dearest hope is that there is not yet another country down the line that needs to be repaired and that could require support from both the European partners and the IMF."

She added, however, that Cyprus represented a unique case and reminded her audience the country's economy amounted to a mere 0.2 per cent of Europe's economy.

"I don't mean to be derogatory about this country," she said, noting its status as a member of Europe and of the IMF.

"But it was a very specific case in many respects," she added, citing factors such as the the size of the banking sector relative to the Cyprus economy.

Lagarde also said she hoped European authorities would learn from experiences over the past couple of years and "decide to accelerate the consolidation of their currency zone".

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Future Fund capitalises on mall sale

AUSTRALIA'S Future Fund is set for a $175 million windfall with plans to sell its stake in a Birmingham shopping centre.

As Britain was in the midst of the worst recession in a generation in 2009, the federal government's investment fund gambled $300 million on a 33 per cent share buy up in the Bullring shopping centre, a futuristic shopping mall built in 2003 on the site of where a market has existed since the Middle Ages.

At the time the owner, a FTSE 100 property company, was struggling to balance its books and happy to off load a share.

But the September 2009 gamble has now paid off with the Bullring's evaluation estimated at more than $1.5 billion with the pension fund's stake now worth at least $480 million.

The timing of the sell off now is being seen by London's business analysts as perfect with high demand from international investors to buy into shopping centres.

The bullring comprises of 167 shops and restaurants and is part owned by property consortium Hammerson, Henderson and Land Securities which in January joined Australian giant Westfield in a $2 billion joint venture to redevelop shopping centres in Croydon in south London.

The Future Fund was last week on the verge of taking a 30 per cent controlling share of Perth Airport. The fund invests $86 billion for the future superannuation pension needs of public sector workers and aims to have a $140 billion fund by 2020.

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Aussies fear 'working poor' future

One in two people polled by the ACTU fear a US economy-type future. Source: Supplied

ONE in two people are worried Australian workers could emulate America's working poor, according to an ACTU poll.

A February poll of 1000 people by the Australian Council of Trade Unions to be released today found people were extremely concerned the numbers of people stuck in low-paid insecure jobs were set to soar.

The issue is set to be debated at a summit today in Canberra, where Prime Minister Julia Gillard will speak.

Public hurls insults at Prime Minister Julia Gillard during question time

The survey follows Australian Bureau of Statistics research released just last month that showed Australia is in the grip of an underemployment epidemic, with 784,000 people struggling to find more hours to earn more pay.

About 55 per cent of people surveyed were very or extremely concerned about the growing numbers of an American-style "working poor'' in Australia and that their children would not have access to good jobs here when they grew up.

US economy still sluggish - Federal Reserve

Similar numbers were deeply worried about a rising inequality of incomes and the future of Australian manufacturing and "smart'' industries.

More than 40 per cent thought advances in technology would replace the need for human workers.

The federal government is cracking down on the 457 visa scheme for temporary overseas workers.

Women and older people were more likely to worry, as were people who had needed to sign up to welfare at some stage in their life.

It comes as the Federal Parliament examines a Greens bill that would allow long-term workers to apply to the Fair Work Commission to argue why their employer should move them from casual to permanent contracts.

The ACTU survey also tested perceptions of the $246-a-week New Start allowance.

ACTU says employers must modernise workforce

Younger people and those who had never received welfare were more likely to dub that amount "too generous'', compared to welfare recipients and older people, who said it was "not high enough''.

Iowa State Supreme Court in the US has ruled that a boss can sack a worker for being too attractive

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Macmahon to post loss before new future

MINING services company MacMahon Holdings will post a loss of up to $20 million this financial year because of its troubled construction business.

But the sale of the construction operations, approved by shareholders yesterday, will enable the company to focus on its better performing mining operations, it said today.

MacMahon made a net loss of $60.7 million in the six months to December 31, due to almost $61 million in writedowns on its construction projects.

Leighton Holdings has bought all of the construction business' projects, and costs associated with the sale, plus ongoing losses, are expected to lead to a loss of between $10 million and $20 million for Macmahon in the full 2012/13 financial year, Macmahon chief executive Ross Carroll said.

Macmahon shares were down two cents, or 5.9 per cent, at 32 cents at 11.29am AEDT.

Macmahon's mining business made a profit before tax of $38.4 million in the six months to December, up 20 per cent on the previous corresponding period.

The business provides drilling, blasting and other services for clients including BHP Billiton and Fortescue Metals Group.

Macmahon expects it to make a pre-tax profit of more than $85 million in the year to June 30.

"The recent growth of our mining business in a time of challenging market conditions highlights its sustainability and holds the company in good stead for its mining focused future," Mr Carroll said.

Leighton chief executive Hamish Tyrwhitt said Macmahon's construction contracts would now begin transferring to the John Holland business, expanding that company's presence in the Northern Territory.

"We are planning a seamless transition of the projects," Mr Tyrwhitt said.

Indian-owned firm Sembawang Australia had also been trying to buy MacMahon's construction business, and has vowed to maintain its interest despite shareholders approving Leighton's purchase.

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