By Patrick Avenell

JB Hi-Fi has today backed the Rudd Government’s plans to stabilize and motivate the Australian economy. In a presentation to the UBS Australian Emerging Companies Conference, CEO Richard Uechtritz said that the plans announced so far would be beneficial to the retail group, and the industry in general.

In the presentation, JB Hi-Fi chief conveyed optimism reminiscent of Kennedy’s 1961 declaration of a future moonwalk, once again noting that the attractiveness of fast moving stock and a low-overheads business model were the two major factors in JB’s continued positivism amid an environment of uncertainty.

“The $10.4 billion government package is positive for retail and timely for JB (eg families receive lump sum payment early December) as we are very much a Christmas gift destination retailer for small value items such as CDs, DVDs, games, iPods, cameras, navigation, etc.,” said Uechtritz in the presentation.

Furthermore, Uechtritz noted that the fear and uncertainty, and the steadily escalating panic, is obfuscating key drivers that can actually be beneficial in the consumer electronics retail space.

“Some positive sentiment drivers appearing – lower interest rates, government support package, government bank guarantees and lower oil prices are helping to balance the negative sentiment from the financial crisis,” he said.

“[The] weak $A is good for consumer electronic retailers as it will stop or slow price deflation,” said Uechtritz, before revealing the most salient driving factor in JB’s optimism: “JB does not import any products”.

In the speech referred to above, Kennedy predicted in 1961 that America could send a man to the moon, and bring him home safely, before the end of the decade. Whilst Kennedy did not live to see his bold vision become reality, should JB continue to achieve its goals, shareholders may begin to hold Uechtritz in similar esteem.

By Patrick Avenell

Telstra has today viscously attacked its rival broadband providers, calling them pretenders and virtually accusing them of bankruptcy.

In a statement issued today, Telstra alleged that Terria, which is a consortium of rival broadband providers, including Optus, Primus, Telecom and Soul, had “no intention of ever participating in the construction process for the National Broadband Network.”

“Terria is an $8 shelf company, with no assets, no financial plan and no funding. It cannot be trusted with a project as critical as the National Broadband Network,” said Telstra public policy and communication group managing director David Quilty.

“Taxpayers cannot afford to face the real risk of having to bail out Terria from financial difficulties a couple of years down the track.

“It is time for the great pretender to show us the money or get out of the way.

“If they don’t have their finances secured, then why are we delaying the build for a moment longer? Australia’s biggest infrastructure project is being held up by a ramshackle outfit that has never actually wanted to build National Broadband Network,” he said.

As amusing as this rant is, it is a serious issue for regional and rural Australians, for whom a high speed broadband network has been promised for so long. Terria bid manager Michael Simmons can deflect negative attention by pointing to the current economic crisis, but many Australians are still likely to side with Quilty, who described the situation as ‘embarrassing’.

The charity wants websites to direct children to help and advice

Three out of four children have seen images on the internet that disturbed them, an NSPCC poll suggests.

The charity is renewing its call for computer manufacturers and retailers to install security to stop children finding violent or sexual content.

The NSPCC, which polled visitors to its children’s website There4me.com, said it was “alarmed” by the accessibility of potentially disturbing material.

Some 377 of 497 votes cast claimed to have been disturbed by internet images.

One child posted a comment on a There4me message board saying: “I’ve seen violent images I didn’t search for. I was freaked out.”

Children are just a few clicks away from innocently stumbling across upsetting or even dangerous pictures and films Zoe Hilton NSPCC policy adviser

Another said his eight-year-old sister’s search for “pictures of animals” generated pornography adverts.

The NSPCC wants social networking and video hosting sites to remove offensive material within hours of finding it.

Policy adviser Zoe Hilton said the NSPCC was “alarmed” by how easy it was for children to access “disturbing internet material”.

She said: “Children are just a few clicks away from innocently stumbling across upsetting or even dangerous pictures and films such as adult sex scenes, violent dog fights, people self-harming and children being assaulted.”

By Martin Vedris in Guangzhou

GUANGZHOU: News of the global financial crisis, which US Federal Reserve chairman Ben Bernanke refuses to call a recession, is front page news in the Chinese press as talk of the country’s lowest GDP in years sparks affirmative action from the Government to stimulate flagging exports.

The Chinese Government last year decided to lower the tax rebates it offered Chinese companies who were manufacturing for export. The companies were using the rebates as a subsidy by including part or all of the rebate in their pricing, thereby lowering the cost of goods to international buyers.

When the Government announced it would heavily reduce the rebates, prices of Chinese goods increased by up to 11 per cent.

Now, with news of China’s lowest GDP result since the 1970s on the way, worry is setting in.

Because the Chinese economy is so heavily reliant on exports, the falling demand from international buyers is putting pressures on local factories. Some toy factories, for example, have closed down with more closures to come, according to comments from Government officials in the China Daily newspaper.

The concerns forced the Chinese Government to intervene, and just like Harvey Norman and Bing Lee can stimulate retail sales in Australia by offering extended interest free credit terms, the Chinese Government is pulling the tax rebate lever to lower prices and stimulate demand.

By Patrick Avenell

Sony has today announced the availability of its three new Bravia XBR LCD televisions. The panels, which feature LED lighting, are now available, each with a price point to reflect the high end positioning of this product.

Originally launched to the industry at Uchi last month, the XBR series distinguishes itself from Sony’s previous Bravia offerings through the use of LED backlighting. Additional new features include Bravia Engine 2 PRO and Motionflow 100Hz PRO.

According to Sony, LED lighting “utilises local dimming technology which momentarily dims in dark areas of the picture, reducing light leakage for enhanced contrast and deeper blacks.” Sony claims this is the first time this technology has been used in 46- and 55-inch models.

Talking about this release is Sony Australia product manager for Bravia, Jan Ergen.

“The XBR series is a new, distinct benchmark in premium picture quality and design,” said Ergen. “The next series of Sony’s high-end XBR range of LCD TVs delivers deeper blacks thanks to 1,000,000:1 Dynamic Contrast Ratio, and the most realistic colour reproduction thanks to RGB Dynamic LED backlight technology.

“We are the only manufacturer to bring this technology to market here in Australia.

“The XBR series demonstrates our ongoing innovation in the TV space. Sony’s unique RGB Dynamic LED backlight technology delivers industry-leading levels of colour and contrast reproduction – significantly superior to other LCD backlight technologies including CCFL (Cold Cathode Fluorescent Lamp) and white LED backlight.”

Additional features include digital media port compatibility, for use with MP3 players; USB connectivity, which can allow for the panel to be used as a digital photo frame; DLNA compliance; and XMB incorporation.

The first release of the Bravia XBR series features three models: the 40-inch KDL40XBR45 at RRP $3,999, the 46-inch KDL46XBR45 at $6,999, and the 55-inch KDL55XBR45 at RRP $9,999.

By Patrick Avenell

Harvey Norman stores around Australia are especially hurting from the global economic crisis, with chairman Gerry Harvey once again reporting disappointing sales figures to the ASX.

In keeping with the company’s commitment to report sales activity to the ASX each week for a month through October and November, Harvey today wrote to the ASX to convey some troubling news.

“Like for like written sales for the 28 days ended 19th October 2008 (sic) from the franchised “Harvey Norman” stores in Australia decreased by 5.8% when compared to the same period last year,” wrote Harvey. “Retail margins continue to be under pressure.”

Written sales are those that have been processed in-store but not delivered.

With news that Australian Harvey Norman franchisees are facing almost 6 per cent in downturn, and that margins are continually strained, the Government’s plan to hand out one-off cash payments to qualifying Australians is welcome news. Due to be paid on 8 December 2008, single pensioners will receive $1,400, couples will receive $2,200.

In addition to this, the easing of pressure on homeowners through dramatic interest rate cuts, including those by the Commonwealth and ANZ banks extra to the Reserve Bank’s reduction, means that retail stores may experience a mini-boom in the weeks leading up to Christmas.

Considering that Harvey believes there is a Harvey Norman franchise “in every state and town of any significance in Australia,” this mini-boom will be desirous nationwide.