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This Program is Captioned Live.The top stories on ABC News. The Federal Government is encouraging the states to start reserve having land to ensure a high-speed rail line can be built along the east coast. The final report on the high-speed rail suggests a line from Brisbane to Melbourne will cost $114 billion and take about 40 years to build. The Government is not the committing to the plan but has set up a committee to negotiate with the states. Sydney police are trying to work out how a plan died before his body was dumped at Bankstown overnight. The body was found wrapped in a sheet in a gutter outside a high school. His hands were tied behind his back. A third hunger striker from the Broadmeadows immigration de Teng centre in Victoria has been taken to hospital after refusing water for four days. The man is the only one of 27 protesters refusing to take liquids after five others relented today. The Essendon Football Club will stand by its coach James Hird in the wake of allegations he took a banned substance last year. Fairfax Media is reporting Stephen Dank injected Hird with a growth hormone releasing drug banned by the World Anti-Doping Agency in 2004. Those are the headlines from the ABC News room.

Tonight - reality bites on jobs. Unemployment has hit a three-year high amid pre dictions of worse to come.

I'm Ticky Fullerton. You're watching 'The Business'.

This Program is Captioned Live.

Well, from high-fives last month to gloomy forecasts of 6% on jobs puts more unemployment. Hard work ahead on jobs puts more rate cuts
back on jobs puts more back on the back on the table.Buy Australian, says Jac Nasser, patriotic on the local car industry. patriotic on industry.And the great IT rip-off industry.And the rip-off - tackling price-gouging consumers.And our exclusive interview with our new Chi-X boss, just our exclusive interview new Chi-X boss, just four days on new Chi-X boss, Australia.Well, first a quick look at the markets and the local Bourse is back through the 5,000 barrier again after another record another record high from Wall Street overnight:

Well, after defying gravity, Australia's jobs market has come back to earth with a thud. Inemployment jumped 5.6% in March, the highest rate in nearly three and a half years. The jobless rate is now running above the Government's Budget for cast and places the Reserve Bank on standby for another cut in interest rates. Here is Phillip Lasker.The Government had some fun last month when employment surged.Very quiet over there because Australians are getting the opportunities and benefits of work.Now it was the Government making as little noise as possible as the volatile numbers moved against them.This result is unwelcome, but of course it's not exactly unexpected. This reflects what we have been hearing on the ground and in newspapers and in the media for the last few months, that is there has been a drop in employment confidence in Australia.Australia's unemployment rate climbed to 5.6% in March as more than 30,000 jobs were lost. It was the biggest monthly fall in 10 years, reversing half of the previous month's surge in jobs. But the numbers confirm Australia's economy isn't growing fast enough to create jobs for all the people entering the workforce.The fact that makes me a little more concerned, though, is that working-age population growth is growing faster than employment, so there are actually more people potentially entering the labour force than there are jobs being created for them, so this is a concern if that will be a likely trend going forward.The unemployment rate is already above the Government's Budget forecast of 5.5% by mid-year. In the three months to February, strong jobs growth was largely confined to the public sector and wholesale trade, possibly we flekting the growth in online shopping. Whereas most jobs were lost in manufacturing and jobs growth in mining was weak.The jobs that are being lost are often full-time and permanent, and the jobs being created are far more transitory. You see this even in the industries of strong growth. Of We're transitioning from a age of mining boom to more other areas of growth, but those domestic areas aren't picking up as fast as we would like them to.The restructuring of the economy has been under way for quite some time. There is nothing quite novel about that. It is exchange-rate driven now, where in the past it was globalisation and bringing down tariff barriers.Despite the the interest rates, strong dollar fits with today's jobs numbersNot seeing the track shun in things like business sentiment and consumer sentiment that we normally see at this stage in an easing cycle. Certainly we're seeing a lot more caution out there from both consumers and businesses, and businesses in particular are taking longer than they normally would to actually respond to what are low interest rates at the moment.And its numbers like today's that make many believe the RBA had have to lower interest rates again in the not-too-distant future.Taps may subsidise the local car industry, but they're not patriotic enough to buy Australian. That's the view of former Ford boss BHP chairman Jac Nasser. He says he doesn't believe the Federal Government subsidies says he doesn't are extravagant, but fears the end of the are extravagant, but end of the Australian car industry is inevitable, as Emily industry is Emily Stewart reports.Jac Nasser spent 30 years at the wheel of Ford, developing a reputation for slashing staff
and cutting costs to turn the business around.But and cutting costs to business around.But the man dubbed Jac the Knife admits the future for Australia's car industry is grim.It's clear that the general feeling in Australia is they don't have - they're not patriotic around their automotive industry, and in most countries around the world, they are.This week Holden cut 500 jobs, despite the Federal Government spending billions in subsidies on the industry in the past decade.We take what you all provide to us in terms of assistance very seriously, the taxpayer support from this country, we take very, very seriously.But the beleaguered Holden boss has found support from another car manI would say we haven't spent a lot on it.But the one-time Ford boss says he fears the writing is on the wall.Particularly when the car industry is reducing the number of engineers they have in the workforce. I think that's a leading indicator of a reduction in future programs and future technology.But wearing his hard hat, Jac Nasser says rumours of the death of the mining industry are greatly exaggerated.Given the continued growth in China and Asia over the next decade, the potential investment and jobs created could be as big as the last 10 years.But the BHP chairman says the resouss industry is at a tipping point. Of he cautions mining shouldn't be the golden goose when governments need revenue.If there are changes, they should recognise that the resources industry already pays our fair share, and that stability and certainty is critical for ongoing investment and long-term success.BHP paid $9 billion in tax and royalty palts from federal and state governments last year.That's an effective tax rate in Australia of 45%.But the Greens say it's not enough. Christine Milne says the mining sector will receive nearly $14 billion in subsidies over the next four years. The Greens are pushing Labor to target tax concessions in the May Budget.Why should you have accelerated depreciation on assets in the oil and gas industry? Why should you have accelerated depreciation exploration? The issue is you are subsidising the exploration of oil and gas and you could be replacing those are renewable energy.But Mr Nasser says all Australians have a staek in a healthy mining industryOne in, all in.In a call to action, he says not just mining but the whole Australian economy needs to become more efficient and productive. It's not enough to just rely on being the lucky country.Well, to the international stage and a big speech overnight by IMF chief Christine Lagarde. She says Europe is suffering from fatigue and begs it not to give up now, but finish the job. Banking union down the road, fiscal union and keep that currency together and solid. For comment I'm joined by David Buik at Panmure Gordon. Welcome to the programTicky , greetings to you.Ms Lagarde has made this big speech but in the meantime, almost irrational ex-ur Brands back in the markets in Europe?Well, just a couple of comments. I don't go with irrational exuberance. I can understand why because people scratch the back of their heads and say why on earth are we hitting levels on a global level and the answer is we're just coming back to 2007 levels, so we're just playing catch-up, really and when you consider the alternative asset classes, whether it be bonds or anything else, they're pretty unappetising apart from the fact unless you're just fact unless you're just happy
marking time and earning 1% or less or if you've got ideas towards fine arts or something, then good luck to you, but apart from that you don't want to get involved in sovereign debt because you could get it horribly wrorng,Sorry to interrupt, but if the market is still positive now, if it's not sort of heady and out of control, why is it positive when we still have these issues at the moment, particularly with Portugal?Well, basically taking the United States of America for a start, nierg the S&P 500 nor the Dow is representative - sorry, is probably representative of the US economy, but 30 stocks in Germany and 40 in France certainly aren't, and these are large international companies, paying their way, paying very good dividends and doing great international business, and that's why they've cracked on, and in the case of the far East, we've seen in the case of the Hang Seng and the Nikkei, we've seen nothing but stimulation. Chiles these Central Banks are there shovelling money into the economy, whether it's the United States, whether it's the ECB, Bank of England, Bank of Japan, there is no way for ek qities to come down apart from a correction for the simple reason they are underpinning these stocks and they are giving the world at large encouragement to crack on.Some interesting and positive news really out of the US on the banking side because we've been hearing recently some rather negative news in the US and it seems that they have turned the corner, at least more quickly than the European banks?Well, they didn't wait for the rest of the world to get their regulation organised and well done to them. They got tarp replayed with a profit. They got the banks to a certain degree basically reorganised and they had a dreadful housing market which has improved. Overnight we heard that the foreclosures had dropped by 23% in the last year. If banks are allowed to adjust their balance sheet and improvisations on that basis, that's where they are, and tomorrow you've got JPMorgan Chase likely to announce a profit for the quarter of $5.6 billion and Welsh Fargo, probably one of the biggest and soundest domestic-based US banks will post pretty handsome numbers as well. Madam Lagarde - sorry.I was going to say madam Lagarde on the other hand is talking about the too big to fail banking model in Europe being more dangerous than ever?Two points, nobody things higher of madam Lagarde than myself, but I found her comments about the banks offence sieve for the simple reason they have messed around for regulation. Taking time in memorial when you're trying to come up with the same formula for European and UK banks when they have different criteria, so no surprising we are in a complete mess. If each centre cracked on, talked to each other about what they're doing, you would have arrived at a conclusion and the Bank of England said, "Throw the rule book away. Utter waste of time. Too complicated. Let's start again." There is a man worth listening to. Very bright and he knows exactly how many beans make four.As you are, too, David Buik. Thanks for joining usBless you. Thanks a lot, Ticky.To key stocks on the local share market. As higher, Westpac led non-mining sectors moved lifting by the higher, lifting by the banks.
Woolworths gained lifting by the Woolworths gained more than 1%
a lifting by the banks.
Woolworths gained a announcing a lift in quarterly sales to a announcing a lift quarterly sales to almost $14.5 quarterly sales billion. Transurban increased billion. its revenue to just its revenue to just under $200 million and Alkane Resources million and Alkane shot up after an encouraging study.

exchanges that drive them. Slowly the exchange business is becoming more Slowly the exchange becoming main rival to the ASX, main rival to is now 18 months old, armented is now with a new is now 18 months old, executive who will take with a executive who will take the
reins on May executive who will take reins on May 1st. His last job reins on was running strategic reins on May 1st. His last development for one of was running major high development for one major high frequency trading operations, GetCo out operations, GetCo out of views
Singapore, so he has got strong views on HFT and on dark pools, those growing off market trades. I spoke with the trades. I spoke with CEO-to-be John Fildes in his first Australian TV interview.John Fildes, welcome to the programThanks very much, Ticky.Your market share is up 11 to 12% I think after 18 months but no profit yet. 18 What are the challenges that you see coming into the job?Well, look, the challenge is to get the company to break even and that means really getting us to about 20% market share.How soon do you see yourself breaking even now?Getting to 20% market share within the next year would be an amazing achievement and would get us very close to break-even.Let me move to some of the more contentious issues, high frequency trading being one of the regulator doesn't seem to have a problem with it, but the Shareholders
Association here is right when it says millions of Australians who individually trade are at a disadvantage to the global financial giants when it comes to their fast technology and their fast access to information?In fact, they're at an add vantage to most investors. If you look at the market micro structure in Australia, what the firms like GetCo and Verto and these other - I will call them high-technology market makers because Dave Gonski has used the phrase "high technology traders "quation and they're sitting there creating a bid on offer on Chi-X with a better price than you can get on the ASX and people who are benefitting most are superannuation funds. Price movement on ASX on 20% of all trades with an average price improvement of 20 points per trade.You put that down to high-frequency trading?Down to market makers and high-technology market maker whose are providing these tighter spreads yes.I assume you have a different attitude towards dark Pools, now 25-30% of the market in Australia, deals done off market and I think 38% of the US market in February, I see?I have no problem with certain trades being trance kt aketeded in the dark, but there has to be a limit and I think that ASIC has laid down some very sensible rules about where those limits should be.Dow see yourself perhaps in coalition with the ASX, a bit like the New York Stock Exchange and NASDAQ have done in trying to block dark pool trading,?I don't think anybody is out to block dark trading. The key point is to make sure that price formation still happens efficiently.Exchanges, though, are moving against dark pools. There was a meeting of three exchange bosses in America in the last couple of days. But they have been slow to move. Is it fair to say that that's partly because that dark pools are generally owned by the banks which are some of the exchange's largest customers?It's like anything, there are many different elements that have to exist to create an efficient market micro structure and I think both dark and lit pools can co-exist efficiently.OK. Let's move to the Government's decision to protect the ASX's clearing from competition. What do you make of that, this exclusivety now that the ASX has?Well, obviously we're disappointed. Where we've competed with the ASX, there have been price reductions that have benefitted every single investor. Unfortunately, without competition in clearing, there can be no price benefits for everybody.In return for its two-year exclusivety in clearing, the ASX has this draft code of practice for clearing and settlement in equities and it suggests that you as the CEO of Chi-X be a member of the forum. Will you be participating?Absolutely. We'll participate so sieve rousely in the forum. We've only - so sieve rousely in the forum. We've vociferously in the forum.John, you talk about new products for Chi-X, perhaps one by the end of the year. Are we talking equity deriffties, things like single stock options or perhaps even a future off your own calculated index?There are all sorts of things that we could do and I don't want to give away too much of our game plan, but Alma has been very clear that we only compete with a much smaller part of his business. We would like to compete with a broader part of his business.A new clearing trade was released by the new clearing by the Government. What sort of impact do you think that will have on the market and do you have any lessons to share with those have on the market and do those guys?I think they've been through a long, hard slog to get their licences as Chi-X did as well. It took Chi-X nearly four years to get its licence eventually. We applaud the advent of more competition in the marketplace.You could launch a CFD and put it over clear net?Well, we would have to see, wouldn't we?On a global basis, the business of exchanges, how do you see that turning out and would, for example, do you see another attempt of a merger between the ASX and the SGX - you've just come from Singapore?The derivative s area will be a key focus for all of these exchanges as they try to grow or merge. Additionally Europe is becoming a very tough place to do business as an exchange and so actually what we're seeing is that exchanges like Eurox, Deutsche is now looking to, fewer restrictions to Asian product in Europe than European product in Europe.A very interesting development. I wish you a lot of luck when you take over on May. David Buik, thank youThank you.It has been a long slow decline from 18th spot in the world down from 9th place. The biggest cost is the high cost of Internet and mobile phones. The Australian Industry Group says it underlies the urgent need to lift skills in the sector. It may be a location of envy for some, but living in Australia can also mean paying up to 88% more for some of the most common IT products. The inequity led a parliamentary inquiry to take the unusual step of forcing some of the biggest iment T companies to front up and explain the price hike, about you in the global digital age is there anything the Australian Government can real yis.Isticly do?It was a move that surprised and impressed mm. The Il Australian parliamentary inquiry issuing a threatening summons tos world's technology giants to answer accusations of price gouging, but their testimony failed to surprise or impressI thought the inquiry hearing was like the theatre of the absurd.Each gave quite different reasons.Microsoft says its current prices are set and customers can vote with their wallet. Adobe says it charges an extra thousand dollars to download its software because it offers a local bispoke experience, and Apple has blamed local copyright holders for its eye tunes prices which are 50% higher than in the US You're talking about a business as large as Apple saying that they don't have any influence of the price of their product.Geoblocking with where a company uses measures like reading your computer's location to ensure you can't buy the same product more cheaply from the company's offshore website.The Australian Competition and Consumer Commission needs to be unchained.Already some Australians are sir kun vepting these geoblocks, but there are questions over the legalty.This is exactly the sort of area that we think the committee and the Government should be looking at to give consumers the confidence to access legitimate cheaper products. You would have to be careful because there are copyright restrictions in the Australia free trade agreement with the US, but I think there are ways that you could draft an exclusion so that circumventing geoblocking wouldn't be illegal.And the pricing inquiry has also raised the issue of parallel importation restrictions.I think in the new kind of digital age, the rationale for such restrictions is really quite questionable.There is wide agreement that Copyright Act needs an overhaul. Thrmptel is obviously legitimate place for copyright but when that extends further to simply than the exclusive rights of the copyright owners we think it raises issues for consumers.Whatever the forms being considered they are in the shadows of negotiation for a new trade agreement, the Transpacific partnership. Leaks suggest the US wants retain parallel importation restrictions and anti-circumvention lawOften when the Government is negotiating a free trade agreement, their position is based on current law, so they would -If they're thinking they might need to change that current law in order to enable consumers to access material, this he would need to take that position into the negotiations.Regardless, critics of the global cyber giants say the inquiry has been worthwhile.It has raised discussion about the issue and to some extent perhaps publicising the extent of the pricing differences might operate to embarrass some of the US companies.Whether that leads to any reduction in prices for Australian consumers remains to be seen.And a brief look at other business stories making news. Fly-in fly-out workers are driving a boom in rents. The Australian Property Monitors survey says Darwin leads the nation with an average house rental of $700 a week. Pushed by demand from mining workers and Perth is predicted to overtake Sydney as landlords jack up rents.Brazil has wheeled out the really big guns. Latin America's largest defence expo is under wage in Indigenous. On display and armoury of cutting edge missiles, pre significance-guided Seebohm s and drone technology. More than 700 companies from over 60 countries are showing off their technology. Defence is big business with global sales topping $85 billion in 2011.Out with a bang. That's 'The Business'. Alan Kohler is here with 'Inside Business' on Sunday. I'm Ticky Fullerton. Thank you for watching. Goodnight.

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This Program is Captioned Live.Tonight on The World, North Korea moves missiles around in an attempt to confuse Western intelligence while Live.Tonight South Korea remains on high alert.There is just one North Korean soldier standing guard on the other side today but it doesn't hide the fact that the atmosphere here is tenser than ever.Meanwhile, in London, the Korean issue will be high on the agenda between talks between Foreign Ministers of G8 nations.

nations. Also ahead, it is 2p.m. in Damascus and the Syrian regime stands accused of deliberately repeatedly targeting civilians with military air strikes in what Human Rights Watch is calling a series of war crimes. It is 1p.m. in the Netherlands where Dutch authorities are beginning the task of recalling thousands of tonnes of meat products sold as beef but which may have contained horsemeat. It is 6a.m. in Chicago where America's First Lady Michelle
Obama has made an emotional plea to strengthen US gun laws saying she too could have been a victim of street violence while growing up.

Hello, I'm Jane Hutcheon. It is midday in London where Foreign Ministers from the G8 nations are meeting to discuss the rhetoric coming from Pyongyang. Ministers agree that the combination of war-like threats from North Korea and preparations for new missile tests amount to dangerous provocation. South Korea has stepped up security outside hundreds of potential targets and American and South Korean sources say at least one previously untested rocket with a range of more than 3,000km is fuelled and ready for launch. Joining us in a moment to discuss the uneasy atmosphere is North Korea expert Mike Chinoy but first this report from the BBC's Lucy Williamson on the fragile border between the Koreas. Seoul doesn't look like a city at war. But outside the capital, the boutiques quickly turned to barbed wire. The galleries to guard posts. quickly North Korea and its unpredictable leader lie just an hour's drive away. Up at the border, across a line of UN meeting huts soldiers from North and South watch each other 24 hours a day. Visitors to this Cold War relic are banned from pointing, shouting or wearing ripped jeans. Today the restrictions on movement and filming here were tighter than usual. There is just one than North Korean soldier standing guard on the other side today but it doesn't hide the fact the atmosphere here is tenser