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Financial Review Sunday -

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Welcome to financial review Sunday. It is great to have your company. Today, Abbott's off and running as Rudd slips back in the polls. Air wars - why Melbourne is challenging Sydney as the gateway to Australia. Next call - Telstra reveals its plans for growth as the mobile market slows. And break out the bubbly Aussie wine makers raise a glass to our weakening dollar. There is more bad news for Kevin Rudd in the opinion polls this morning as he prepares for tonight 's debate with Tony Abbott. Support for the Prime Minister appears to

the election campaign with the economy and merging as the main battleground.Here we go.Election campaigns, like any battle, require strategy and support. The Prime Minister may have had his strategy down but his luck and support our down. Three polls show the Coalition in the lead. The latest was a Galaxy poll this morning as they trailed the Coalition...

Prior to the campaign, labour got them back to 50-50. Now just after one week they have gone back. They momentum shifting against them.The first week started with an interest rate cut.It is a decision that will lower cost of living pressure on families.We should not the in a position where interest rates are cut.Political clearer.We are seeing growth slowing down, a critical problem, with idiot other parts of the economy picking up as a result of all of that, and as still relatively high Australian dollar, emergency interest rates should be higher.The GST is a target, he is accusing the opposition of wanting to raise it and extend it.Under an expanding goods and services tax would rise by 52 cents.It is part of the equation.We have no plans whatsoever to make any changes to the GST.There is a more definite policy from the Coalition to cut company tax. The $5 billion cost by proposed spending cuts.I clearly identified saving measures that amount to some $17 billion in total over the forward estimates.Double counting savings that have already been been announced, spending is another money twice.The cut of 1.5% at the opposition is talking about, with some stimulation of business and potentially some revenue increases.If your financing a tax cut our spending cuts you are benefiting one part of the economy at the expense of the other.Numbers dominated the political warfare and that will continue. The Opposition Leader will continue. He will now release is numbers on Tuesday.The budget bottom line will be there for everyone to see.Four days and counting until you come clean with your $70 billion worth of cuts. Coming up with the dollars and making sense in a election campaign will always remain challenging. This regard some of the number analysis. Listen to what makes more sense for the future of the country.Joining us this morning editor in chief of the financial review and Doctor Richard Dennis. Economic management is central to this election campaign and we will be hearing both more -- a lot more from the leaders about who is best to manage the economy. How do they then?The underlying economic fundamentals for the government are very good. But the budget deficit has become a giant wall and change thanks to their own selling off it. They made predictions of a to get it back, now they are being judged accordingly. On the one hand their past record is quite good but they have made a meal of it.This is the first of our first boom election. In the past 10 years, money has been raining down. It come through tax cuts and increased spending. In the last year or so we see a boom has ended. Instead of money falling from the sky, people are going to have to give up things. Through this budget process and through the Treasurer 's last economic statement, he took money away from people. We see that this is the first post boom election. Politicians are going to an election with no money to give out because they cannot get the budget back into surplus.Tony Abbott is sending mixed messages to business, he is willing to give tax cuts but is staying that paid parental leave scheme isn't it?Can they pay for their promises. Do their budget numbers add up. His big announcement was the cut to the company tax rate but at the same time he is increasing the company tax rate from 300 about 2000 largest businesses to pay for it very expensive paid parental leave scheme. That looks like an old social entitlement scheme, that is where the mixed messages are coming. People asking how do numbers add up to mark of what is here should tackle in the next week.Is that the right approach in the current climate?Very risky. The interest rate is being lowered because the economy is believed to be some -- slowing. They actually risk what we have seen in Europe which is prolonging a period of downturn. Everyone wants to see the budget come back into surplus, there is no doubt that some tax cuts we have had in some of the past years are unaffordable, but if they are in it too much of a hurry to do this they might make it worse.I think by not addressing our budget problem, but we are spending above our names, we are in danger of going down the European route if something goes wrong. We have spent too much of the mining money early and now we are increasing the debt. We cannot get the budget back into the black. Get yourself into a jam if you do not address your problem sooner rather than later.You can watch the great debate tonight, light and commercial free at 630. -- 6:30pm. Ever had has joined the chorus of people calling for a second airport in Sydney. The bass James Hogan has issued a warning that Sydney is that missing out to Melbourne if it does not release its strict curfews.The airport has to have the capability to meet the demand. Sydney does not have it yet. The discussion of a second airport is critical for Sydney to remain competitive as a gateway. In the meantime, the improvement in infrastructure at Sydney is key. What kind of conditions would like to see on the ground in Sydney? It's a tough question. You cannot change Sydney airport overnight. But having a curfew and a fort does ring considerable constraints. If you look at Melbourne Airport which is 24 hours, and makes it a much more competitive proposition for Victoria. To be competitive, and to meet the growth plans in NSW, the need to be a degree of portability. I believe the curfew in Sydney, and I believe importantly, let's make this second and airport decision. Is a privatisation an option for virgin?That is an issue for the virgin board. It is a tough business. We are supportive of John and his strategy, his partnership works well, I am confident they will work through this period and come through in shape. What you feel comfortable with? We would like to move to 19% over a period of time. We are a shareholder, we aim here for the long run.Qantas flights are complained that it is unfettered have to complain -- compete with government backed... Is very limited -- will limitless supply of funding here?We do not get any government guarantees, within a purely subsidise fuel, we have to ensure that the business plans tax and delivers on its merits.You are an Australian, any plans to come back here and run an airline here?I am injured -- enjoying living overseas.There are a lot of vested interests in this game, do you think that Sydney could lose out to Melbourne?You see with the airlines that the soft economy is starting to hit them. This issue shows us that the infrastructure and the bottleneck at Sydney airport. It is not being addressed at the election campaign with the curfew on Sydney airport. It is becoming a bottleneck for the economic growth for Australia. No one has wanted to front up for it in 20 years. We do not know what Tony Abbott 's position is on this. It is not being dealt with.It has been around for decades, no one has dealt with it so far. It is simply too expensive to get off the ground?It is very expensive. There is a lot of infrastructure that Sydney needs. When you can combine how hard it is to get a development that be through, and find the money for it, we might be waiting a bit longer for a second airport.It is something politicians really have to grasp hold of. The government might have to put into money, the money, the pockets of the airport, the governments need to sell off the other asset they have. They are selling off their ports. The government have to sell off their assets, sell into the private sector and putting money into some of the infrastructure needs that we are trying to fix.It has been a bumper start to the reporting season. Our round-up of company results next. This program is not captioned. We've got the lowest prices
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The company reporting season is in full swing. Hearing implant maker Cochlear posted a profit of $132.6 million - a 16% dip as sales fell in the US, its biggest market. The total dividend for the year was up $0.07, to $2.52. Downer EDI unveiled profits of $215 million, up 10%, defying the gloom in the rest of the mining services sector. Its dividend for the year - $0.21. No dividend was paid in 2012. Rio Tinto announced its half yearly earnings of $1.7 billion - a profit slump of 71%, due largely to exchange rate losses and write-downs. Underlying earnings were down 18%. It paid an interim dividend of $0.83.5 US - up $0.11. Profits for Tabcorp were $126.6 million - a fall of 63%. It was the first year the betting business had operated without its lucrative Victorian poker machine licence. Its full year dividend was $0.19 - down $0.05. Telstra 's profits were up to $3.9 billion, a 13% increase. Shareholders were pleased with the result and chief financial officer is hinting that it could lift its dividend in the future too. Australia's mobile market is glowing but Telstra has defied expectations to add 1.3 million new mobile customers in the next year. In the company insists there is more room for growth.I think historically, people have looked at the mobile market by dividing the number of sins in the market and the number of people in Australia. We do not look at it that way. We see more people with two entry devices, we see mobile connectivity being used in a whole range of cases. Such as remote cars, you can connect via phones these days.But two parts of Australia's business -- Telstra 's business a shrinking rapidly.Those report margins of above 50%. They are great cash cows for Telstra. And the fixed line is decreasing by 10%.Application services and new technologies will underpin future growth. He dismissed concerns that a change of government or a delay in the rollout of the national road band network will could jeopardise $11 billion for Telco. We are committed to support the government. Shareholders will hoping that that will lead to a higher dividend.In the long-term it is definitely part of our framework and strategy that we recognise shareholders want to see frank dividends increase, in the long-term that is our aspiration.Telstra reminds -- remains the biggest dividend -- privatisation in Australia's history. The stock halved in value as the company struggles before another change of shares was sold in 2000 six. After a few years of volatility the stock has been rising steadily since 2010.There are three things you need to look at. That is the competitive environment, the technology and what is happening in regulation. Telstra and a good position in all three of those which have not been for a good time. We look at the stock trading now with a dividend that we now know is going to grow for sure it is very attractive. Returning to our panel, there really is a lot approached -- pressure on Telstra now.It is Australia's mass-market stock with more Australians investing in it than any other company. At 28 cents dividend has been the thing investors have flocked to. You saw him talking about in the long-term they are in looking to increase the dividend. The thing that we pointed out this week was that for the past few years Telstra has been paying out more than its earnings, more than its profits. Now for the first time, it is... People are looking to see that when the 8 cents dividend will be listed.Telstra has defied expectations, but how much room in the future is there? There is or is room for expansion for the amount of information we are downloading or where Telstra is in trouble is that has got massive markups on things, such as fixed line rental. It is not going to make profits on those areas. There will be growth in the industry but they do not think its profits will continue to grow. And why Australia's falling This program is not captioned. A man has his own way
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The state of Brisbane is up for sale. It has already offered its 20% share in the port to its investors. It formal sale process is expected with the state valued at 1.1 and 1.6 and billion dollars. Brisbane is one of Australia's fastest-growing port with a 1 million containers handled every year. An investment bank is advising on the sale. I'm breaking news on all business deals, look at the website. A look at the markets now, and it was a bad week for major stock markets. Worries about the end of US central bank stimulus triggered the biggest weekly decline in US stocks since June.

triggered the biggest weekly
decline in US stocks since June. The Dow dropped about 0.5% on Friday. S and P lost about a 0.33%. Stocks rose in Europe and Asia on Friday but closed lower for the week. Our market retreated 1.1% with the banks, energy and healthcare stocks all down. On the commodities market, iron ore rallied to a 3-month high during the week. Oil and gold also closed higher on Friday. The Australian dollar had a good week, thanks to strong factory output from China and a slip in the US dollar. And looking ahead - the futures market indicates the ASX 200 will be steady at the open tomorrow.

indicates the ASX 200 will be
steady at the open tomorrow.

steady at the open tomorrow. On interest rates, a red car from the banks during a military campaign. We likely to see another fall in interest rates?There is a chance of that. They cut it because... The last thing they want to do is right on the eve of the election to cut rates. It is still up to debate whether they will cut after the election, but the two and a half percent rate, there are concerns that if you start making money too cheap people start speculating that and the worry is he might start to see some speculation bubbling up in housing prices which the Reserve Bank said could cause financial instability.On the dollar, it has gone up above the 90 percent mark. We think it will go?I think it will drift down. Commodity prices are going to trend down, I think we'll see the Australian dollar falling and that is going to be good news for Australian manufacturers, and wine and tourism.The weakening dollar is good news for many Australian winemakers and makers of Australian sparkling wine shoe reap the rewards. The price of French champagne should rise off the back of exceptional growth in Australia. This is the new 2004 vintage. Champagne on the whole... Australian tastes have become a creakingly adventurous. Champagne sales have become a verse of -- effervescent as the product.It is the seventh largest champagne market in the world. If you consider it the size of population, it is remarkable. Is the growing 15% in average.Sales have soared to over $155 million. Even as other alcohol categories dropped. The strength of the Australian dollar has stimulated a first for quality.We have seen 80 premium might in why consumers. It has been growing a quite strong rates.Good news for domestic producers who have every need to post the falling dollar.It will help the Australian wine industry because it makes it more competitive.With this changing nature of the dollar, definitely French champagne has capitalised the market. It has been taking ground off the Australian producers so we're going to have producers jumping up and down with excitement because it creates opportunities on the export front.Chandon is poised to expand into the Asian market.We have a very good position in the Japanese market, we will continue to grow that. I think there is plenty of room for Australian producers in the international markets. But they need to get it right, they need to get it very clear about their business model and very focused on the consumer. What the consumer needs. Probably the same thing applies in the domestic market.Australia is a perfect wine country. It is definitely on the map of all the top wines of the world.Do you look at the winemakers in Australia and in Prescot and Mark very impressed. The viticulture and the winemaking in Australia is very high. There is so much alone.It is a tough job but someone has to do it. After the break it is rear window. And what better to show some cheesy rock clips? This program is not captioned. If you're thinking you can't do
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This program is not captioned. It is Rear Window now. We beat a Bond farewell to one of the biggest bosses. Welcome to Rear Window. Coming up, Tony Abbott emanating celestials powers. But first, you thought we dislike team America quits for our own amusement. They called it early and they called it early and make all that often. News Corp has copped a dose of his own medicine. With like to call it the. Just two weeks after he shot returned to... He is gone. In favour of 69-year-old returnee, Julian Clark. Kim had a clear his office by the close of business on Friday. After falling out with Rupert Murdoch. We had a camera stationed inside News Corp to capture the moment of his and able devise. Our next it, he will be back. We will miss you Kim. The first week of the Federal election campaign is thankfully over. And like the 1980s, it was all about the have. -- Tony Abbott was living at. -- Tony Abbott was sticking it. Refusing to wear a hand at two consecutive factory visits. Who wants a stray grey in their barramundi. Meanwhile, ... Separated at birth? And then there was Kevin. I have six points to make on this. Firstly, the last.... What about the other five points. Before we go, the next.... Consumer sentiment figures for August are expected be in a holding pattern before the election and it is the second week of reporting season, results to watch Art JB-HiFi, CBA, CSL. Who are you backing to win. The Prime Minister needs to win the worm. Abbott is ahead, Kevin Rudd is falling, Abbott wants to be steady, Kevin Rudd will want to say that it Abbott gets an he will run a scare campaign, increase the GST and in heat your work conditions. This program is not captioned.

This program is captioned live.

Today, as Chris Rogers gets his maiden test century, we talk to them about the fourth Test. BMX superstars. Caroline Buchanan and Sam Willoughby are with us. We need an incredible athlete, Kevin Pearce, and look at his inspirational documentary. And there's also these guys. Today, right here on Wide World of Sports.

Welcome to another edition of Wide World of Sports. Nice to have you onboard. Holding my hand because I'm a little bit rusty but we will get through it.It's been amazing, how much sport there has been this weekend. The show is jampacked. Have your say, everyone. We would love to know what you think.And you can say what you think. Everybody has a crack on our show. In the meantime,

Everybody has a crack on our show.
In the meantime, all things AFL. In the meantime, all things There's plenty happening. Here are the round 20 results:

The big one, Sydney and Collingwood, it was a tough battle. Congratulations, Collingwood.

Collingwood, it was a tough battle.
Congratulations, Collingwood.

Congratulations, Collingwood. You came to Sydney and you conquered. Joining us is Billy Brownless. These two teams came out and that first half was just neck and neck. No quarter given.It was a good game early on. Sydney had a great start and kicked the first four goals. They were in front of 42,000 people. They started like a bomb. Kirk Tippet was upfront. He kicked two early. He finished the game with six but they only had five goal kickers, which is interesting. Normally Sydney shares it around a bit more. But slowly the Collingwood midfielders got on top and they were very good. Pendlebury was very good. Dane Swan was great. And Luke Ball as well. They started to get on top and brand Sydney into the ground. Jamie Elliott kicked three goals. What you don't see a lot is the Sydney midfielders getting beaten. Also driven into the ground by the hard run of Collingwood. They fully deserve this win. Well done, Collingwood. They are really going beautifully. They play Hawthorn on Friday night and it will be a blockbuster.They are finding form. Moving on to Gold Coast and Melbourne. Gary Ablett's 250th game. The coach thought it was a pretty scrappy game?It was. No doubt about it. 250th game, he was pretty quiet. Only kicked one goal and didn't have a lot to say. Campbell Brown is on fire. He will get another contract. Has been really good. The only one x 13 points. We thought they might win by a fume more. Melbourne was in the game up until the end. -- by a fume all. Nathan Jones probably their best player, for Melbourne. Gold Coast will take that. Their seventh win for the year.Moving on to Geelong. They were too strong for Port. But they struggled in the fourth quarter?They did, well done. They were fantastic. After half they lead by about 50 points. They played some really good footy. This man, there's one for you. Joel Selwood. Single, a good-looking bloke. He was a superstar yesterday. 32 touches. Stephen Motlop, number 32. Have a look at this? Just goes around the boundary. Give it back! Then runs around and kicks the goal of the match. He is Angus Monfries. He was good also for port Adelaide. He kicked seven goals. What was disappointing, as you said, Chris Scott.

disappointing, as you said, Chris
Scott.

Scott. Not Scott. Not that Scott. Not that exciting Scott. Not that exciting because the Cats did really well and then only kicked one goal in the end. People -- a big show on Sunday. J King will be on the show.

People -- a big show on Sunday. J
King will be on the show. King will be on the show. I King will be on the show. I think we will also talk to Jarryd Blair from Collingwood about their great win. We will try to grab him at the airport. Always a good show. And enjoy the show there from the -- with the male model!Thanks. Now to the NRL. The Eels against the Tigers.

We know he is a boy from the West when he gets excited about the Eels. If all we get onto the real football, talking about things that happened overnight, what are your thoughts on Benji Marshall issuing on the website or whatever, each week, a photograph of himself and a statement? He was in the Blues colours, saying he is looking forward to playing for the All Blacks. Is that a good look when he has five games to play with the Tigers?Everything that has gone on at the Tigers over the last few months... This seems to be the final slap in the face. It's a bit of a shame. Benji Marshall has held himself really well in the 11 years he has played rugby league.Do you think he has been badly advised?No doubt.Moving on to things more positive. The Sharks, a pretty good

be slipping after the first week of