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The top stories from ABC News - Australia's Adam Scott has moved up to No. 3 in the world golf rankings following his extraordinary victory at the US Masters. Scott beat Argentinian Angel Cabrera in a dramatic play-off for the green jacket. Under immense pressure, the Queenslander held his nerve and birdied the second extra hole to secure his first major. The Federal Opposition says signing separate school funding agreements with each of the states would create a bureaucratic nightmare. The Government has revealed details of the $14.5 billion plan which would involve the states paying a third of the conservative. The Opposition's education spokesman Christopher Pyne says if the states don't all agree, the deal should not go ahead.Doctors are calling for a major overhaul of how flu vaccines are tested before they're approved for children. It follows the suspension two years ago of a CSL vaccine. Experts say the vaccine was of approved without proper testing
of its effects on children.And of its effects on a report has found that the technology a report has found technology summer ice melt is
now occurring 10 times faster than it did than it did 600 years ago. The paper states it's not yet certain whether the high levels of ice melt are caused by human-driven climate changes. And those are the latest headlines from ABC
Tonight - growing pains for China. A red flag to the resource bulls as the economic giant misses the mark.Today's figures suggest that we aren't seeing the kind of bounce-back that we were hoping to.I'm Ticky Fullerton. You're watching 'The Business'.
This Program Is Captioned Live.
Gold and resources were smashed today as China disappointed investors. Desell rating data slams the brakes on Australian commodity stocks. Don't be afraid of Frankenstein foods, the message from GrainCorp's boss. Paying big cyber dividends. Why small business can't afford not to go digital. And - rising 90, but betting on a big future. We talk to poker machine king Len Ainsworth about building a second fortune. First a quick look at the markets.
Gold stocks took a hammering today after Goldman Sachs tiped the price of the precious metal could fall another 14% by the end of next year. It's another blow for local producers who've seen their shares underperform the gold price over the past year, because of cost blow-outs and the rise of electronically traded funds, ETFs. While investors continue to flee gold, there was nowhere to hide in the rest of the resources sector today after China's GDP came in below expectations. Neal Woolrich reports. China might be the engine room of the global economy, but it's struggling to get back to top gear. GDP growth for the first quarter came in at 7.7%, below market expectations of 8% and down from the 7.9% recorded in December.Well the focus was are we seeing a bounce-back in Chinese economic recovery? Today's figures suggest we aren't seeing the kind of bounce-back that we were hoping to. The biggest concern for
Australia is China's industrial production. Which grew by a modest 8.9%, well below the 10% consensus forecast.That's not boding well in terms of commodity demand out of China.Probably means we've seen demand overestimated for the year for 2013. And that may mean more volatility in commodity prices, with China's GDP figures clouded by the aggressive stockpiling then destocking of raw materials by factory managers.Demand's still going to be robust for 2013 and I'd expect that these figures are maintainable. The disappointing Chinese figures sparked a mini sell-off of the Australian dollar and commodities and added more pressure to the gold price. In 2011 the precious metal hit a record high above 1900 US dollars an ounce but is now trading around $1450, and has lost its safe haven status. The investment bank Goldman Sachs stoked more fears about gold, saying it expects the price to drop another 14% by the end of next year.What we're probably seeing is investors becoming more settled that the inflation there as a consequence of risks potentially that are out there as a consequence of an there as a consequence expanding monetary base imminent any time soon. As we go into imminent any time soon. we go into the second half of this year, there's an this year, there's expectation that the US Federal Reserve's quantitative easing program will be wound back and this has been the single major driver of that weakness in gold. The recent plunge is another worry for Australian gold producers. While the gold price is down 10% over the past year, local companies like Newcrest and Kingsgate have underperformed by a considerable margin. On the other hand, electronically traded funds or ETFs have largely tracked the commodity price.A lot of the money that would've gone into gold production companies has gone into ETFs over the last couple of years. If anything, it's something whilst we saw it all happening before our eyes, probably a few of us didn't really appreciate the impact that it would have. Kingsgate Consolidated's Chairman says the share market has overreacted recently gold is still four times the price it was gold is still price it was when Kingsgate started producing a decade ago and the company is about to post its best quarterly output for the year.We're looking at about 50 to 60,000 ounces of gold produced. So if the gold price is down $100 from what we were expecting you're talking about a 5 to $6 million less on our end profit. But fund manager Tim Schroeder says ETFs are becoming more attractive because goldmining companies are struggling to keep costs under control.Managing the costs of your existing operations, grade fall, mines get deeper, it becomes more difficult to maintain your costs par tigly when you're trying to get the most expensive or valuable gold out first. And that will be an issue for all companies in the resources industry as they too compete with ETFs not to mention government bonds for a slice of investors' money. Australia's largest listed agribusiness GrainCorp has reopened the debate on so-called Frankenstein foods. Genetically modified foods are bitterly opposed by environment al groups but the GrainCorp boss says GM crops are the only way naturalers can grow production.Label GM. Many don't want to eat it. But GrainCorp boss Alison Watkins wants to put genetically modified food back on the tableWe are a little blinkered here in Australia compared with what's happening in the rest of the world. But I really think we have to - we really have to see this as a tremendous opportunity for us, not as a threat. Greenpeace dis a agrees. It's staged an overnight raid on CSIRO's first outified modified wheat trial two years ago. The CSIRO said it was a huge setback. Despite the protests Alison Watkins says the time is ripe for GM foods.We're not going to have a whole lost new land and many of the benefits from improved practices and fertiliser and so forth have been used up. The GrainCorp boss says it's a hungry world that will require an extra billion tonnes of grain to be grown each year by 2050.Equivalent to asking the world to produce enough food to feed a new France every year for the next 40 years. Australia currently exports 25 million tonnes every year, around 10% of the world's grain supply. To keep up market share, this will need to grow to 40 million tonnes by 2050. Another agribusiness leader, John Murray, runs animal food producer Ridley. for animal products is producer Ridley. He says demand for animal products is also increasing for animal products is way the world will be able to deal with deal with this dilemma is to increase productivity and the intensity of animal production. But even with GM food, Alison Watkins says Australia will never be the food bowl for Asia. She says Australia can't compete with the major producers in north and South America and the Black Sea region.Rather our competitive edge is as a reliable supplier of safe and high-quality production. To my mind, Australia should be consolidating our niche as the local specialty grocer or the Dell cat Tess sense, at least in grain rather than trying to be the supermarket.In a call to both sides of politics, Alison Watkins says now to the time to push for further deregulation.The minute we throw up barriers or try to control capital flows that capital is lost to other locations. And John Murray says Australians have nothing to fear from foreign investment.Yes, you might have a gentleman from Hong Kong might come and down a buy a farm but he can't actually load up the dirt off that farm and take it back to Hong Kong with him. It's always going to stay here. investment, better rail and road links are key. And with an road links are election looming in September, agricultural leaders say they are looking for a better deal on infrastructure. It was the worst day in four weeks on the local share market as the latest Chinese data spooked investors. I spoke earlier to Ken Howard at RBS Morgans. A 1% decline, it was always going to be a pretty difficult day on the local market, wasn't it?It certainly was. Negative leads out of all the equity markets on Friday night and a double negative lead out of all the commodity markets. Certainly wasn't being set up for day today. There was a tale of two markets. We did see positive contributions out of the of the banks, property trusts, utilities, telco, etc., but the resource sector was another story. So there was about a 4% drop there from the big miners across-the-board which is a pretty rough day and it's been that way for the last couple of months actually.We heard earlier about some of the ructions in the gold market. Take us through some of the stocks bearing the brunt?Look, Newcrest is probably the best one to pick on. It's the largest there in the sector. It's one of the largest in the world. Their share price is down the best part of 20% in the last four weeks and it fell a further 8% today. So unfortunately, there's not a lot of yield support, the PE ratio is pretty high there has been a string of disappointing production announcement there is from Newcrest. So not a lot of support there at the stock level. And quite a bit of weakness there at the commodity level too. So for the gold bulls, they're constantly looking at the money that's being printed around the world and see that as a reason for the gold price to remain strong. For the gold bears, gold is another fashion item. When it becomes unfashionable as an investment there's not a lot of value there to support the share price. Time will tell which way that will play out but a rough day for Newcrest.Any follow-through buying on Woodside Petroleum an Friday's al rally as the company abandoned the jail jail project in Western Australia?- the James Price Point project in Western Australia.The market performance off woot side, you have to give it a thumbs up. It wasn't in positive territory but it certainly outperformed much of the rest of the commodity space on our market. I think deferring that project makes a lot of sense and investors are clearly focused on balance sheet strengths and abilities to stay in dividends so if Woodside was to embark on that project it would draw out a lot of cash couple of years out of the
company. So of cash flow out of the next
couple of company. So look defering it
makes a lot of couple of years out of the makes a lot of sense I think
for shareholders in company. So look defering it
makes for shareholders in the current market. We've been talking about the resources sector. Of course not all the declines in the last weeks and months have been in resources. Any other trends?Look, one stock to note is Cochlear. It's been a market darling for many years. Done extremely well with this innovative technology. It's a dominant player as far as bionic ears are concerned globally. But look its share price is down the best part of 20%. For my money, Cochlear needs to be or is approaching a point where investors should be looking at it seriously. You have a balance sheet there that has net cash, generates strong cash flow and they are spending over $100 million a year on research and development. So while a few short-term head winds there with a product recall, I think long term there's still a very strong picture there for Cochlear.Still a darling for you. Ken Howard, thank you for joining us.Thank you Ticky.To the other major movers on the local share market.
Almost 20 years ago, businessman Len Ainsworth was told he could have less than a year to live. The founder of gaming machine builder Aristocrat carved up his fortune but then they got better. Then he set up a new company in competition. Ainsworth Gaming Technology makes 2 (3) 5% of Australia's new gaming machines now and the stock price has risen 145% in 12 months, making him a billionaire all over again. I spoke to him earlier. Len Ainsworth, thank you for joining me.My pleasure. At a time when there are talks of programs the whole of the car industry shutting down, what is your see yet?Well, I think it's better designed, better-made equipment. And a lot of nuz Yass tick people working hard. - enthusiastic.Do you think your sector is, though, quite recession private?To a point. Strangely enough, when times are difficult, club, hotels do better because people have more recreation time. I noticed you call for your 20,000 more pokies down in Victoria. Do you think at a time when people like Andrew Wilkie have been pushing against the gaming industry, that governments are going to be more wary of increasing pokie numbers?Well, I think those people who are against gaming machines and perhaps gaming of any kind are entitled to have their opinion but they carry more weight than they should. You see, naturally enough, particularly when there are only two people providing machines in Victoria, as commercial enterprises they put machines where they would earn the most money that means that perhaps those people who needed that additional source such as small clubs and pubs have had to go without. The government will probably the State of Victoria a favour if they did allow an additional 20,000 machines on particular basis, that didn't cause any problem, and they don't necessarily cause problem, not to 99.5 or .6% of the population.Let me talk about your international business now. You opened a manufacturing plant in Las Vegas just over a year ago. How is that
is that going?There are a lot of very well educated people there. There's no all in getting people with tertiary education and loads of brains.Why do you think that is? Why do you think, they obviously have a stronger work ethic or something?I think it's the fact that probably more people are unemployed in America. But I think nevertheless they have a stronger work ethic, because things are so competitive over there. You look at anything at all it's just competitive, motor cars, half the price. Clothing half the price.How much does the strong Australian dollar have to do with dollar have to do with how you are thinking about your are business?Well of course, business?Well export comes and export goes or economics come export comes and export economics come and economics go. But there are certain things that lend themselves go. But there things that lend themselves to things that lend production, for example, in Las Vegas and it's production, for example, Vegas and it's in Las they're made, more the steel works at the back of the cabinet the cabinet which is heavy T has a lot of volume. It's expensive and slow to ship. So we have that made in Las Vegas. It's something like $100 less per unit than it can be made for here. So productivity is higher, costs are lower. You are looking, though, with the strong dollar, at building in North America, but exporting down to South America.Oh all through South America. It means that you're shipping either duty free into the South American countries, or almost duty free. But you also find there are a few traps in dealing with the South American countries, namely, that if there's a debt that you're having trouble collecting, if you're suing from Australia, you've got a hard job ahead of you. Let me ask you you. Let me ask you about the growth of Internet gambling. I gather you and the company are equipping yourself. What do you mean by that?We will be ready. Ha ha ha! But that is not only huge, it's going to be huge. By way of example, we have certain arrangements with our companies whereby we licence them to use our games, just the games themselves. E don't know how many cents every time somebody on the Internet clicks one of our games, but it amounts to a seven-figure amount.Essentially you're providing con tent?We're providing content, yes. And of course, it's content of games that are already established, some of them might be 20, 30 years old. So that's a nice one to be doing.You're a staunch defender of pokie gambling. And yet when it comes to the Internet, you do have concerns?I have concerns from a social view point. It really means the way it functions that any kid can sit at home with a computer. And I don't think they make too many inquiries as to who or what you are, as long as you're prepared to gamble. Another viewpoint of course is that they're probably training these people to gamble and they'll end up in a casino or a club or a machines, wherever it might be. That's perhaps ... You That's perhaps ... You were
arguing from your camp very well there.And the other thing of course is the government don't get any tax the way it is. I think the government will have to find a way or the governments of the world will have to find a way to raise tax from gaming on the Internet. Now , if I could be so impertinent, I gathers is your 90th birth day in July.On 11 July, yes. Retirement is obviously a dirty word?No, it's not a dirty word, but it's a very pleasant occupation. It's hard work. But it's very creative work and I'm a creative person and we have a lot of creative people working for us. That's our advantage. And why would I retire? You say you're not a betting man. Could I ask you, though, to put some odds on for me in the battle for a casino licence between Echo and James Packer's Crown?They're both customers, my lips are sealed. Ha ha ha! Len Ainsworth, it's been a delight to talk to you. Thank you very much for joining the program.My great pleasure. Thank you. An extended version of our interview with Ainsworth will of our interview with Len shortly. Log on to Ainsworth will be on-line shortly. Log on to the digital
world and reap shortly. Log on to world and reap the rewards.
That's shortly. Log on to the digital
world and reap That's the message to small business missing out on That's the message business missing out on the
cyber revolution. A new report cyber revolution. A found a third of enterprises have virtually no digital engagement. But those that do are twice as likely to be growing and profitable. Tracey Kirkland reports. Michael tatters field has been a printer for more than a decade but in has been his best year yet. He puts his company's rapid growth down to the InternetInitially I was using mail drops, leaflets. And then that was successful on a very patchy scale. And then I started reading about web marketing. Two years ago, he consulted an IT professional and together they built a web site. Now, he uses social media, posts web videos and constantly updates his site. He's also doubled his Botanic Gardens tom line. - his bottom line.I'm getting 20, 30, 40, 50 inquiries a back. Staff at the company who do this for a living a-Grohl wholeheartedly.We have tried promoting ourselves in conferences, we do direct mail but we find on-line gets us the best result.They're outcomes which reflect the findings of a report into the small business sector of Australia commissioned by Google and undertaken by Deloitte Access Economics. It surveyed 500 small businesses about their digital engagement and found more than 35% of small businesses had no or a very low digital presence. Around 24% had low levels. Maybe had web site or a simple digital marketing strategy. 25% medium. Those optimising their web marketing strategy. 25% were
medium. web presence and pursuing a medium. Those optimising more sophisticated web presence and pursuing more sophisticated digital strategy. But only 16% had high Internet use.When you look at the scale of those numbers and then you sort of put that on the scale of the small business then you sort of put sector and it's important to the economy, these sector and the economy, these are phenomenal numbers that really did surprise us. Businesses more pluged into the cyberworld are four times more likely to be hiring than those who aren't as kek. They're also twice as likely to be growing and will earn twice as much revenue per employee each year.A lot of people are much more digitally engaged at home than they are in their business. Hand that is a big missed opportunity. The good news is that small moves into the digital area can have enormous economic benefits for small businesses.You don't need to jump from very low to
very high levels of digital engagement overnight. Any step along the way tends to help.Even moving up one level of digital engagement can have a 20% impact on a small business's revenue.And working the web doesn't have to cost ma lot.All of the social media platforms, setting up a basic web site, all of that is very low cost for small business and can make a gigantic difference. The message for small business is to jump the digital divide for bigger profits.
A brief look at other business stories making news. The demand for home loans has risen for the first time in five months, beating analysts' predictions. The number of loans granted rose 2% in February according to the Australian Bureau of Statistics. First home buyers accountsed for 14% of the market, down from 17% last year. RM Williams, one of Australia's most recognisable brands, has a new luxury partner. L capital Asia a private equity fund backed by Louis Vuitton-Moet Hennessy has acquired a 49% share in the company. Owner Ken Cowley will retain the majority shareholding. Mr Cowley says the deal fulfils a promise to RM Williams to take his legacy to the world and they are by far the heaviest heavy metal band in the world. ComperssorHead, complete with a four-armed drummer and 78 fingered guitarist, rocked the Frankfurt Music Trade Fair this week. The three heavyweights createed from recycled metal have already starred at an Australian festival. While human rockers demand sex, drugs, rock'n'roll, ComperssorHead's creator says the trio are happy with machine oil. Not sure that's progress. Before we go, a look at what's making business news in overseas newspapers. The 'Wall Street Journal' says a labour shortage in US nursing homes is worsening. Just as baby boomers head into old age. It says the nation's facing looming retirements with one fifth of workers 55 or older. And says wealthy Britain's 'Daily says wealthy households would
be slugged Britain's 'Daily Telegraph'
says wealthy be slugged new taxes on be property and other assets under German plans to pay towards the cost of any future bail-outs for struggling members of a single currency. And that is 'The Business'. You can watch the show Monday to Thursday at 8.30 each night on ABC News 24 as well as after 'Lateline' on ABC1. I'm Ticky Fullerton. Thank you for watching. Goodnight.
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This program is not captioned. This program is not captioned. This program is not captioned. Tonight World' turn to anti-North Korea protests inflaming tensions on the Korean Peninsula. Tonight we go live to the city in where the threats from the north are testing people's patience. This Program is where Captioned Live.Also is 2pm in Zaatari in northern Jordan near the border with Syria. One refugee camp has now reached the size of a small city of 100,000 people. At 6.30 am in Caracas and Venezuela's new President Nicolas Maduro has been congratulated by world leaders after declaring victory and succeeding the late Hugo Chavez. But his electoral opponent is refusing to concede defeat.At 7 am in the US State of Georgia where golfer Adam Scott is waking up to his day in the green jacket after becoming the first Australian to win the Augusta Masters.A life changer!Hello, I'm Nick Grimm. It's 8pm in Seoul right now where there's been anti-North Korea protests and peace rallies in the South Korean capital. Peace act /* activists called on the south to open dialogue with north amid fear of a missile test. As Pyongyang has rejected a call of talk with South Korea aimed the reducing tension on the peninsula. North Korea has been celebrating the 101st anniversary of the birth of its founder Kim Il-sung with a lavish parade in the capital. There was speculation it would also launch a new missile to mark the occasion, although that hasn't happened just yet. Let's hear from someone on the ground on the Korean Peninsula this evening. Jim Middleton is the presenter of 'Newsline' shown throughout the Asia-Pacific on the Australia Network. He's in South Korea tonight where he joins us live from the capital Seoul. Good evening Jim. It's often been said Seoul is a short missile flight from North Korea. Can we start our interview with me asking you this: what's the mood like in Seoul today while she celebrate the 101st anniversary of soong sang's birth? Good evening. If you'd been walking streets of Seoul today you'd hardly have thought there was either the threat of war let alone a missile strike or indeed that there were any celebrations going on, as you