Day 2, we are on a roll.
Infrastructure
State versus federal funding of infrastructure
Comment on state versus federal funding of infrastructure, with each needing co-funding from the other. Consider the impact that infrastructure has on enabling entrepreneur activity in regions, adds to livability. Traffic and access is one reason why people move closer to the city, despite lack of affordability. Also, emphasis on treating digital infrastructure with the same importance as road and utilities.
- Brisbane cross-river rail and Sydney Metro West need federal co-funding
- Melbourne East West link has federal funding but not state support
- Federal budget of $100B in infrastructure spending in April, 1/3 to be spent in next four years.
- Three areas proposed to fast track infrastructure: 1) Accelerate the more than 120 large projects; 2) Victoria's East West Link, commonwealth commitment of $4B; and 3) get 166 small urban congestion projects in detailed planning or under construction in 12 months.
Technology
Unlockd Google anti-trust case
- $200m mobile advertising company Unlockd went into administration last year after Google banned apps from its services.
- Had valuation of $200m after 2 years, raised over $60m, $20m ARR
- Founder Matt Berriman is assisting US Justice Department in an anti-trust case against Google.
- Previously gone public about struggle with bipolar disorder, highlight existence of mental health among business people
- Currently a backer and adviser to startups and consults to CEOs and board on digital transformation
Amazon Prime day discount wars
- Dominant retailers heavily discounting to counter Amazon Prime days, weeks after end of FY sales
- Likely to impact on margins, already under pressure from rising rent and labour, weak AU dollar, and lackluster consumer spending
- Amazon Prime Day estimated to generate more than $US4.1B in sales worldwide in 2018, up from $US2.4B in 2017
- Macquarie Bank analysts estimate 73,000 shoppers signed up to Prime June to Dec last year
- Prime members tend to spend twice as much as non Prime customers
IAG invests $16.8m in Carbar
- Carbar online car leasing startup, allows drivers and companies to hire cars without fixed contracts, subscribe to use a car for a non-refundable $1,000 payment, founded in Melbourne in 2016, expanded to Sydney in June
- Investment to be used to expand into Brisbane and Perth, target corporate customers, guarantees spot on board of directors
- Graduated from Caltex's Sark accelerator in 2018, provided access to Caltex's South Yarra petrol station
NNNCo (National Narrowband Network Co) raises $8m to take on telcos in internet of things
- $8m raised from India-based energy and environment company Enzen group
- Provides telco infrastructure required for networks of tiny sensors to communicate in IoT
- Clients include City of Gold Coast, Newcastle, and Hunter Water
- Comp0etitive market with Telstra, Optus, and Vodafone all offering narrowband networks. Plans to complement with middleware platform N2N-DL
- Valuation of $32m
- Investment will be to employ more staff in AU
- Enzen AU head office in SA
Chris Morris invests in Barcats
- Investment part of a $1.2m raise, comes on the board
- Barcats - platform to find staff for hospitality - launched in Christchurch last week, 2 years old, half the investment sucures business for next four years, on target for profitability in next 12 to 14 years
- Site has over 45,000 staff registered looking for work, 13.500 venues looking for staff. 55% of jobs are full time
- Cofounders own 60% of company
Energy and Climate Change
LNG export market
- Liquified natural gas has become a $50b+ commodity export market for AU, 21.2% upswing in 2018/2019 shipments, set to pass Qatar as the biggest exporter this year.
- Exported 75.1m tonnes last FY, generating $50.5m in revenue
- Majority of growth from new projects in WA and NT, and QLD exports also rose slightly (from 20.5m tonnes in 17/18 t 21.8m in 18/19
- Previous $200b+ investment in new production plants
- Increased exports have driven up prices for domestic customers, now 3 times historic rates of $3 to $4 a gigajoule
- Short term domestic prices rose last month from May to average of $10.84/GJ in Adelaide, $9.51/Gj in Victoria
- Prices in Asia fallen to $US4.30 per million British thermal units
- Global Energy Monitor report this month identified LNG as potentially worse than coal in contributing to climate change because of methane gas leaks
- EnergyQuest indicates bulk of AU LNG produced from relatively new offshore projects less likely to experience significant leaks
Australia position on Climate Change
- Foreign Minister Marise Payne comments following Chief of Defence Force warnings that China could seek to occupy abandoned islands resulting from climate change
- Australia signatory on the Boe Declaration with other Pacific Island nations, which affirms climate change is the single biggest threat to the livelihood and security of the nation
- Said Australia's infrastructure fund in the Pacific would stream climate adaptation and resilience through its investment in energy, in transport, and in water
- 2016 Defence paper outline threats from climate change as: higher temperatures, sea level rises, more frequent and intense extreme weather events, food shortages, and undermining economic development
Plastics
- 350 million tonnes of plastic are produced each year
- Disposable bags are prohibited, restricted, or taxed in 127 countries
- Damage to marine life, fisheries, and tourism along with impact of greenhouse gas from manufacturing exceed industries $US40b annual profits
- Coca cola plans to collect and recycle equivelant of every bottle sold globally by 2030
- Recycling rates in developed countries should reach 70% by 2030
- Single-use plastic is becoming socially uinacceptable
Inclusivity and Diversity
State position on Indigenous treaty
- VIC, WA, and NT making most progress on agreements
- Issues to be pursued: reparations, land rights and self-determination for Indigenous Australians
- Advantage of a treaty is it is a political negotiation rather than a court process involving litigation
- NSW: pursued an accord with regional Aboriginal bodies to have greater input into local service delivery
- SA: Stephen Marsh terminated treaty negotiations after coming to power
- QLD: Deputy Premier Jackie Trad announced Sunday that QLD would open negotiations for a treaty, indicated prospect of financial compensation and an Indigenous voice to Qld parliament
- WA: Settlement with the Noongar people could be regarded as nation's first smallT treaty and a model for future talks. $1.3B deal resolved a raft of native title claims in return for more than $750m in payments - including establishment of $600m trust - and transfer of 320,000 hectares of land in south-west including Perth.
- VIC: running elections for inaugural First Peoples; Assembly, will negotiate a framework for a treaty. Legislation passed last year includes provision of a self-determination fund.
- NT: Appointed former Australian of the Year Mick Dodson to oversea development of a treaty
- Federal: Minister Ken Wyatt said treaties a matter for the states
- Advantage of treaties over land use agreements, increased scope for self-governance for Indigenous communities, Canadian example where communities allowed to determine membership and make bylaws.
Labour and talent
Low wage growth
- Survey of 251 executives
- More than 37% of CEOs expect to keep wage growth flat or 2%. 14% of CEOs said they would increase by 4% or more
- 30% of CEOs investing in automation to reduce labour costs
- Current 2.3% wage growth rate
- Low wage growth a macroeconomic global phenomenon
- Increased automation expected to maintain a low wage growth
- Unemployment expected to remain at 5.2%
- Less job switching also contributing to low wage growth. National switching rates declined to 8%, from 11% in early 2000s
- Treasury analysis suggests a 1 percentage point fall in job switching rate is associated with a 0.5% of a percentage point fall in average wage growth
- Most wage growth seen for lower paid workers
- Westpac's most recent agreement covering 30,000 employees granted 3.25% increase for next two years for those with salaries below $82,500
Uber drivers are not like casual employees
- Ruling handed down by Fair Work Commision
- Drivers not subject to other work obligations that affected casuals. Drivers not compelled to accept tasks. Decision based on level of control driver has.
Entrepreneur visa fails to attract offshore talent
- Entrepreneur stream introduced in the Business Innovation and Investment visa introduced in September 2016 as a National Innovation and Science Agenda initiative
- Criticised as too hard to access
- Less than 5 entrepreneurs applied from China, Hong Kong, Russia, Ukraine, UK, and Vietnam
- Visa requires at least $200k in funding, but most AU investors require proof of visa before investing
- SA trial running to November 2021 with fewer restrictions will be expanded nationally if successful. Applicants do not have to have investment committed. Proposals vetted by state of federal government entities, partnering with accelerators and incubators
Space
India launch delayed
- Launch delayed by a technical snag in 640-tonne, 14-storey rocket
- Countdown stopped at 56 minutes
- Other countries to land on the moon include US, Russia, and China
Moon overview
- China: In January, Chinese robotic spacecraft holding a small rover became the first to land on the far side of the moon. Sees first astronaut landing in 25 years
- India: Attempting launch to lunar south pole
- Israel: nonprofit SpaceIL tried a small robotic lander, but crashed
- European space agency: put out concept of an international moon village by 2050
- Russia: Plans to send astronauts to moon by 2030
- US: Sent 24 astronauts to moon from 1968 to 1972. VP Mike Pence announced goal of putting Americans on the moon again by 2024, four years ahead of schedule and near end of Trump's 2nd term. Moor prgams called Artemis. First mission scheduled late 2020 to test the Space Launch System. 2nd mission 2022 with astronauts would orbit but not land on the moon. 3rd flight in 2024 would travel to Gateway, an outpost in orbiot around the moon, and from there travel to the lunar south pole
- Blue Origin - Jeff Bezos: Developing lander hopes to sell to NASA
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