Considering the economic and financial crisis at the moment, some are confident that Australia can manage the situation. The long-term effects have altered significantly to what Australians were thinking, but it’s not certain, it will depend on the country’s investment on productivity-increasing innovation and reform and getting the right balance on regulation, says Glenn Stevens, RBA governor. Things may get worse soon, but it will get better from there. The household sector’s gross debt servicing burden has been reduced by RBA’s recent interest rate cuts by nearly 3% of household income. In future, households will become more cautious with debt.

Melbourne Airport has been approved for a third terminal, upgrades to other terminals and a new hotel. This plan will be able to double the capacity of the Airport. The new aircrafts that are made today hold 800 people meaning that Airports will hold more people and less aircrafts. So far thay have invested $330 million in the project, but the third runway may never be built.

Some other ideas the plan was hoping for were the extension of one of the east-west runways, offices, activities and greater provision for airline maintenance and flight services. There has been a slight problem with flight paths and road access. The planning of this was very careful and precise, Melbourne Airport chief executive Chris Woodruff says. There has been a slight problem with flight paths and road access.

NAB’s monthly buisness survay for November has shown the lowest buisness confidence level ever, in the survay’s life of 20 years, reaching minus-30 points. NAB’s survay of October shows a 21 index point drop. There is no reason for confidence to be lower now than the 1990 recession, but results have proven that it is.

Buisness conditions have dropped 6 points to minus-17 points, the lowest since 1992. NAB is predicting Australian GDP growth to slow to 0.5% in 2009.

Have your say: Why do you think the buisness confidence is weaker now than in the 1990 recession?

Al Habtoor Leighton Group and joint partners South African group Murray & Roberts Holdings and Takenaka Corp have been awarded a $2 billion contract to build a new terminal at Dubai Airport.

Many projects in Dubai will be put on hold or cancelled, adjusting to the real world. The $1.2 billion Trump Tower in Dubai has been suspended by property development company, Nakheel, due to marketing conditions. Many projects will undergo significant changes in the Middle East to adjust to the real world.

Have your say: Do you think projects should change to adjust to the real world?

The Housing Industry Association PCI fell just over 4 points in November to finish on 32 points. This is the second worse monthly fall since the survay started in September 2005 and the ninth month in a row below the key 50 points level. It has almost reached the record low of 31.8 in September.

Engineering and commertial construction grew weaker in November to the lowest level ever. The sub-index measuring new orders fell almost 10 points to reach 17.9 points. Housing building activity is in the tenth month of contraction. However, construction industries should improve through 2009.

Have your say: Why do you believe the construction activities are at the lowest ever?

By December 31 2013, analogue TV can be switched off. This would be a relief for broadcasters and retailers. Progress reports will be provided from the Australian Communications and Media Authority. This is a Bill which will now go to the senate.

Have your say: Do you belive the government should switch off analogue TV?

Norfolk, along with Laing O’Rourke, Connell Wagner and its subsidiary O’Donnell Griffin have signed a $1 billion contract with Railcorp on the Railcorp Program Alliance (RPA) project. This project will include the delivery track work, along with electrical projects from December 2008. The project will go for 5 years with a possible 5 year extension. Norfolk says, they will begin construction in April 2009.

Have your say: When do you think construction should start. Why?

Iron Ore producer , Fortescue Metals Group Ltd,  has suspended about two thirds of its long-term shipping contracts as its Chinese customers take advantage of cheaper rates stemming from the commodities slump.

Fortescue said on Friday that it was suspending all long-term cost and freight (CFR) shipping contracts, whereby the miner covers transport costs and passes them on to its steel mill customers at a premium.

The company said the change would not affect total volumes of iron ore shipped, but would change the mix of sales between the suspended contracts and the other major form of shipment, FOB (freight on board).

Chinese steel mills are attempting to take advantage of low ship charter rates caused by dampened export activity amid the global economic downturn.

The mills may also want to manage their own shipping because it gives them greater scheduling control, allowing them to determine when product arrives.

“The changed arrangements are in direct response to market conditions demanding greater FOB sales,” Fortescue said in a statement.

It is unknown how the ship owners have reacted to the suspension of the long-term contracts.

Fortescue offered the explanation that the move was “on the basis of unforeseen circumstances”.

The miner said it would not affect the volume of iron ore that it shipped.

The impact of the changed arrangements on Fortescue’s bottom line is unclear.

Many exporters prefer FOB - which is playfully referred to as “free of bother” - to CFR contracts because the product is off their hands as soon as it is delivered to port.

In Fortescue’s case, providing shipping for its customers is an important revenue stream, bringing in $71.15 million in 2007/08 against shipping costs of $60.85 million.

The company’s balance sheet for this financial year is almost certainly already being hampered by a slump in spot prices for iron ore as demand from Chinese steel mills wanes.

The iron ore miner said about two-thirds of its sales had been on CFR terms but this was likely to reduce to about one-third of sales.

It would instead increase FOB sales, which involve the customer directly paying a ship charter company for transporting product.

Separately, Australia’s newest iron ore miner Atlas Iron Ltd on Friday shipped its first load of the bulk commodity to an unidentified medium-sized Chinese steel mill using Fortescue’s port facilities at Port Hedland in Western Australia.

Atlas is the first company to have reached an agreement with Fortescue to use its infrastructure, and is cashed up with no debt.

“This shipment shows third-party access can work,” Fortescue executive director Graeme Rowley said.

The long awaited Google Phone has been delayed for its Australian launch. The Android mobile phone, manufactured by Kogan Agora, will not be released in Australia until January. Ruslan Kogan, the manager of the phone company in Melbourne, stated in October that he planned to release a Kogan branded phone that would utilise the Android platform. The original date of release was December 15, and the phones were set to sell for AU$199.

However, not only is the release date worse, but the price has gone up also. Ruslan has blamed the increase in price on the worsening economic conditions that have been witnessed over the past months, including the siginifcant devaluation of the Australian dollar.

Kogan now says that the launch date will be 29 January, 2009, and two models will be released, one priced for the $299 and another model, containing extra features, for $399.

The mobile phone handsets will be named Kogan Agora and Kogan Agora Pro. The pro model will have the additions of GPS and Wi-Fi connectivity and also a built-in camera. Both models will be compatible with 3G networks.

Have your say: What do you think of the Google Android?

The Reserve Bank of Australia have just announced another cut to interest rates. This time rates have been slashed by 1 percent. RBA Glenn Stevens said “At its meeting today, the Board decided to reduce the cash rate by a further 100 basis points, to 4.25 per cent, effective 3 December 2008.”

Some good news to come from the RBA’s meeting today was the mention that Australia is not struggling as much as some other countries. The minutes of the meeting make reference to this by stating “has been more resilient than other advanced economies”. But, due to the recent slowdown in economic growth, expansionary monetary policy has been required again.

Hopefully this will help to curb the pending financial crisis that we are all witnessing. Home owners will be relieved as they save on their mortgages. Will spending improve in order to sustain the economy?

Have your say: What do you think of the RBA’s 100 basis point cut to interest rates?