THE NEWS WRAP: Future Fund chairman issues Australian debt warning

Australia could suffer similar debt problems as the Eurozone countries if it doesn’t cut spending and bolster productivity, the chairman of the Future Fund has warned.

Speaking at the Australian Business Economists’ annual conference in Sydney, David Murray said that the debt crisis in Europe should prove a “wake up call” for Australia.

He said: “I don’t see governments trying to wind back their debt positions rapidly; I don’t see governments trying to reduce their size and trim their spending. I don’t see people coming off subsidy arrangements of industry, in fact new arrangements are more the norm.”

iiNet eyes further expansion

Internet service provider iiNet has flagged further expansion, publicly identifying two potential targets for acquisition.

Michael Malone, who founded the WA company in his garage, said that he wanted to increase market share further, following the purchase of Canberra firm TransACT.

“I don’t think we’ve got sufficient scale. I think we need to grow further,” Malone told Business Spectator.

“I’ve said it publically before, I’m a big admirer of both Adam and Internode in Adelaide.”

Google and Samsung admit smartphone bug

Google and Samsung have admitted there is a problem with the volume on its Galaxy Nexus smartphone, following a deluge of complaints from customers.

Users have claimed that the volume on the phone drops sharply without any apparent reason.

“Regarding the Galaxy Nexus, we are aware of the volume issue and have developed a fix,” Samsung said in a statement. “We will update devices as soon as possible.”

Overnight

The Dow Jones industrial average fell by 236.17 points, or 2.05%, to 11,257.55. The Australian dollar was up to 97.24 US cents.