THE NEWS WRAP: Lindsay Fox says Coles, Woolworths “expect everything for nothing”

Trucking entrepreneur Lindsay Fox has hit out at the dominance of Coles and Woolworths, claiming that they are “dictating” terms to every link in the retail chain.

According to The Australian, Fox said that the supermarkets “expect everything for nothing” from other businesses, including his own Linfox transport firm, which has contracts with Woolworths and Coles.

“They are going to crucify the farmers, crucify the bread manufacturers and if you spoke to most of the consumer goods manufacturers at the moment, you would get a very mixed response about the aspects of dealing with these companies,” Fox said.

Swan welcomes RBA rate freeze

Federal treasurer Wayne Swan has welcomed the Reserve Bank’s surprise decision to leave interest rates on hold yesterday.

RBA governor Glenn Stevens said the improving US economy and improving lending conditions meant that a third straight rate cut wasn’t needed.

Swan said the RBA had “struck a balance between global uncertainty on the one hand and Australia’s strong economic fundamentals on the other.”

Indian growth set to decline

Australian businesses trading with India could be hit by a downturn in the country, with figures showing a contraction in economic growth.

Indian government statistics show that growth is likely to dip below 7% this year, compared with 8.4% in 2010-11. Interest rate rises, aimed at curbing soaring inflation, have been blamed for hurting Indian industry.

Overnight

The Dow Jones Industrial Average rose 35.19 points, or 0.3%, to 12,880.32. The Australian dollar slipped to 107.93 US cents.