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ABC News 24: Business Today -

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(generated from captions) Comings up on the program Australian airlines struggling

to clear a back log after the

volcanic ash. And sustainable argument, agriculture and land

conservation dominate the

economic forum in Those stories coming up economic forum in Jakarta.

shortly. Let's take a quick shortly. Let's take a quick

look at the This Program is Captioned

Live. Far more on the I'm f l am joined by Michael Far more on the market action

McCarthy. The local session will begin soon in a shortened

week. It looks like the theme

we've seen over recent weeks have priced moderate will continue in the Australian

market. The futures market indicate ing an market. The futures market is

the 4500 level and the the 4500 level and the market is watching very closely that level. This is the level that the market reached as low the market reached as low just

It is thought there there will after the Japanese

be good buying support at that

level. So all investors and

traders will be watching out h

market behave as it approaches 447 - 4047 this week. The futures managed to stay in the

It does appear as if

there's a resolution of the

Greek debt issue coming but

it's moving at a glacial it's moving at a glacial pace.

While that is the case it will

be very difficult for markets

to go ahead. We soggy performance across Europe

with up a & couple of key

themes emerge. One was towards

larger economies. So we saw Germany, France and the UK

doing better than most others.

And the other trend was towards larger companies. So we saw top 40 companies doing better top 100 companies. It 40 companies doing better than

top 100 companies. It does appear that they're doing better. How are gold perform? We're seeing price

moderation in the commodities. Gold has pulled back from the

highs of last week. Although it

this morning trading up $1 to has gone

be about 1517 at the moment.

The oil markets are starting to get quite interesting with a

big price difference between

the price of US crude, Texas contract and European contract the Brent

contract. West Texas is

contract is trading currently $96.90 and the Brent

$119.90. Just before we go, what economic data should what economic data should we

look out for? We will be seeing

This is the big driver not only some key reads in

of Australia's share market but

of the global economy. And we of the global economy. And we

are looking at CPI and PPI

numbers there. The market will

be look for lower numbers than

we have seen previously, hoping we have

that the central authorities to

moves to choke off inflation

are having an effect. Thank,

Michael. That is Michael

McCarthy from CMC markets. Now

let's take a closer look what's happening let's take a closer look at currencies and commodities. what's happening with

From Airlines

Airlines in Australia are

scrambling to clear a backlog of tens of thousands of

passenger s after an ash loud passenger s after an ash loud

the weekend. in Chile disrupted flights on

Adelaide, Tasmania and New all flights to and from

Zealand, a decision on when

they will resume is expected to be made later this morning. Other morning. Other operators such as Tiger airways has cancelled some services, while Virgin Australia says Virgin Australia says it will

operate normal scheduled services. On the last day of services. On the last day of a

public holiday, much of the

country, the timing couldn't country, the timing

have been worse. It is a long

way away and there's no I will get on the way away and there's no chance

flight. Earlier this year flights in parts

Europe were ground now a

volcano in Chile has sent ash across the southern across the southern hemisphere,

Lee ing tense of thousands strand. We have managed to

on a flight tomorrow evening at

clisht. If that goes ahead. My

flight has been cancelled. I

have no idea what is happening. The cancellations

began on Sunday. It flew

holidays and sporting fixtures into disarray and many

passengers were anger - earninged at the lack of

communation as airlines struggle ed to cope. We have

flights here. We have to go been told

home, wait on the phone for flights here. We have to go

three hours and there's nothing

they can do here. I think it's

ridiculous. They have all these

staff not able to do anything, they're twiddling their thumbs

why can't they rebook us? By

early afternoon Qantas and virn verjin early afternoon Qantas and virn

verjin has resumed flights in verjin has resumed flights in

and out of

and out of Melbourne.. The The cannot accommodate everybody today. The Qantas flights to and from New Zealand and

Tasmania are still grounded. As

the ash cloud drifts towards SA. And there of ash expected over Melbourne,

which means more disruptions

are on the horizon. At this

stage, the ash cloud is over

New Zealand. It's over Tasmania and it and it has shifted from time to

time over Melbourne. There is a

watching brief on a number of

other cities including claid

and Canberra. We do expect

there will be future delays

this week. Greece has become Standard & Poors lowest rated

country after the credit country after the credit rating

agency downgraded it by three

notches. They are now be low Ecuador, Pakistan and Ecuador, Pakistan and Granada.

- gren add ya. It's the latest

blow for the country's

attempting to push a new socialist Government which is

austerity package through

Parliament, despite rising

Blick anger. The deal would ensure continued funding under a year-old bail-out plan. Greek officials reacted to the officials reacted

downgrade saying it overlooked

continue with tough fiscal the Government's commitment to

effortings effortings to repair public finance an euro. Finance Minister also finance an retain tied to the

meet tomorrow to discuss a new

aid package. For Greece, that could call on private holders

of Greek dent to contribute by accepting delayed accepting delayed payment. The two-day two-day annual World Economic

Forum has concluded in Jakarta after government, business civil society leaders met to discuss how best discuss how best to respond to the new global itch. The overuse of natural resources

became a key focus of the east

Asian forum which is now in its 20th year. Around 600 officials from more than officials from more than 40

countries put natural resources

high on the agenda at the 20th annual World Economic Forum. The forum is an independent international organisation bringing together bringing together business, political, academic and other leaders of society global, leaders of society to shape global, regional agendas. It's headquartered in

quits Switzerland and

incorporated as not-for-profit foundation. Among them were foundation. Among them were key

representatives from the representatives from the palm oil industry who case on the importance of land conservation. I think it is important

important also that the important also that the NGOs

can help us also to really and

together with the public and

the private sector to really

conserve those areas that we

need to conserve. But those areas plantation I think that is something we need to focus

on. Mas Ma, an agribusiness and

food industry representative

said its company was committed to protect carbon to protect carbon rich peat

land and rain fest. Last yearet released an independent audit after Greenpeace alleged it

destroyed high conservation

value forests. Uni leaver and

negotiation ly have now dropped

the Sinar Mas group player. I think the commitments from traders, commit competents

from producers are absolutely essential to driving the essential to driving the market in the production in the right direction. Indonesia is world's top palm oil producer.

It's seen as a key player in

the fight against climate

change. As such, it's under intense international pressure to curb its deforestation rate

as palm oil, timber and mining

firms compete to seek land to

expand. While Greenpeace welcome the palm oil sector , the environmental group said there

is still much work to be is still much work to be done.

TRANSLATION: The buyers sector must be serious about this commitment. But in

seconders like pulp and paper I haven't seen any changes. It's

business as usual. A day

earlier at the forum,

Singapore's Prime Minister

commented on the revaluation of

the Chinese yuan. Where, he

said, a gradual said, a gradual realignment would would be helpful. Beijing is

currently under pressure to

ease controls, the twraiding partners are complaining is

and cause ing China's trade

surplus to swell. Hiel the Chinese Government has allow ed the currency to rise it's the currency to rise it's not

as fast as the critics want. A gradual realignment of currencies is helpful, helpful

for the overall balance and

helpful for helpful for China itself because it can be part of the restructuring restructuring which has to take place in China. A restructure

ing to become res le lient on

export-led growth and to have a

greater component of domestic

demand, whether this be

investment or investment or consumption. And to have spreading of the benefits of growth away benefits of growth away from

the export sector towards the rest of the economy, the domestic worker, domestic worker, the the people inland which would result with a gradual

appreciation of the remaining

time. It could help China to become less become less reliant on

export-led growth. The Thai Prime Minister took the opportunity to express his optimism optimism about winning Thai

laind's general election early

next month. And as interest in the yuan continues to increase across the globe, a raft of products are to provide access to this

growing market. HSBC is one

bank which recently lodged a basket of yuan-dominated

services. To find out more

about this, I speak to Paulo

Maia, the CEO of HSBC Australia. Welcome to Business Today. Thank Today. Thank you. Now what is

has prompted HSBC to launch has prompted HSBC to launch

this product? We're launching a comprehensive range

of products that are nominated

in the Chinese currency. It

ranges from products available to our corporate clients, which

more and more are demand ing

these types of products because they have transactions with the Chinese counterparts, import, exports, exports, foreign exchange

transactions, so there is a comprehensive range of products

to the corporate clients to the corporate clients and we're also seeing more and we're also seeing more and more

demand from the retail clients as well. That is why provided also a range of products including current

accounts, deposits and that is we're seeing more around more demand from clients that have ties directly ties directly with China. Now,

you say that this product will actually tap actually tap into China's economic power. Which is yet to be realised in its currency. How does this range of products do that? We of products do that? We expect

not in the too distant future,

in a couple of years time, the Chinese economy will become the

number one in the world. So that obviously will drive of the demand for the Chinese currency. More and more it will

be used as a means of be used as a means of trade to

support any type of transaction

involving a Chinese current

party. So we believe there is a

growing demand for. That that

is why we are launching this

comprehensive range of products. Actually we already

saw some demand starting out in

Hong Kong. We have quite comprehensive operation across addict. We are launching this addict. We are launching this

and Australia is a major trade

obvious country for us to

launch these products launch these products as well. China has been

notoriously reluctant to move

on its monetary policy, despite

being pushed by the US. If it does actually change its

monetary policy tact, will that

have any effect on these products? Actually this provides an opportunity for people who have a view on people who have a view on the Chinese currency to take a

position, to invest in position, to invest in the Chinese currency and perhaps benefit from a potential appreciation if that happens. Obviously this is something that we don't have a specific view on it. - I

sure you have a specific view, it's just whether or not you

want to share it! Clearly we

believe that is one of the reasons reasons why we reasons why we will see more

demand for this type of

products so it's about foreign exchange, risk management, it's about

about hedging, it's about using

also this opportunity as a way of getting better terms commercial investigations with

the counterparty in China

China. So so if you're able to

provide terms in the ram imby

when you're buying some merchandise in China or sell ing ing something over there and

anecdotal evidence has shown us that counterparty parties are anal to provide anal to provide betteral yearnive s. Why do you

China's currency has been so

under-represented to this point in trade and

not totally convertible. not totally convertible. We're

starting to see the beginning

of this process of taking it of this process of taking it to

full convertibility in the

future which we believe it will

happen, it will take a couple

of years but will first step towards this first step towards this is about the internationalisation

of the Chinese currency which

is exactly what's happening. It

starts with trade settlement, transactions, then it moves on

the deposit and more simple

things. We already started to

see a lot of volumes on that.

see a lot of volumes on that. Actually exponential Chinese currency because of our

presence in Hong Kong. That is

the first market that we saw a

lot of activity coming up. You anticipate that half of China's

emerging trade will emerging trade will be settled within about four year s by

yuan. That is a big call. Yeah,

we're seeing exponential growth. Trade growth. Trade settled transactions in ram imby, we

believe in the next two or three

three years it could reach a

figure of $2 figure of $2 trillion equivalent settled in Ramimbi: So that is So that is quite significant. And again that is

part of a process of internationalisation of internationalisation of the Chinese currency eventually take it to eventually take it to full convert ibility. If the Chinese convert ibility. If the Chinese current y were to be convertible it would be the

third largest traded currency. Would you

currency. Would you say then

that this seriously sparks the

debate over the demise of the

greenback as a reserve

currency? I think that

Chinese currency to become a

reserve currency it will take a

couple of years. Obviously it

has to be fully on vertible. It

is not yet. It is a process but

we are definitely that that will

that that will happen. It's the

relevance of the Chinese

economy across the current

market, the importance of being

able to negotiate terms in more

transparent ways, that will

inevitably happen in terms of

having a full convertibility having a full convertibility of

the Chinese currency. At which

point it could actually

challenge the dollar. We have to leave it there. Thank you for

for your time. It's a pleasure

to be here with you. Federal Resources Federal Resources Minister Martin Ferguson says he can't rule out some cold mines

closing because of the carbon

price but the overall price but the overall number of jobs will increase. The coal

industry has released a survey

at his commission showing a

carbon tax would cost the industry $18 industry $18 billion in the

first nine years. Mr Ferguson concedes some of the gaseous

mines which have the highest

emissions would be challenged

when the carbon price starts

but he maintains the tax is

fair. It's interesting only matter of a couple of weeks ago I didn't see Twiggy forest or

Forrest or the small miners outraged at the outraged at the WA's decision

to increase royalties in terms

of Ian oirn fines. This is a of Ian oirn fines. This is a

profit s based tax. Company

also only pay this tax when

they actually make super profits. The WA change to royalty means that in both good times and bad times iron ore

companies such as Twiggy

Forrest's will pay a higher

royalties, year in and year out. That is Federalry Minister Martin Ferguson

speaking there. The race is on

to dig up Queensland's to dig up Queensland's mining

resources and sell them to the

world but there's another race for workers who want their

slice of the action. In the

State's north, people are flood

ing into the unique mine safety

simulator in the hope of fast

tracking their career under ground. accountants, bimps and

electricians are swiching on

their head lamps and looking

for a career change in for a career change in the mines. They're mines. They're gaining mines. They're gaining entry level skills to pursue jobs in

mining, a business that mining, a business that without experience has proven experience has proven tough to get into. Been trying to get

into mines for a child while. About two years prior I've had

been concreting for 18 years. I

wanted a change . This wanted a change . This replica under ground tonne nell under ground tonne nell Mackay aims to give trainees an

insight into the workings of

coal pit. It allows them to

learn about underground mining without actually being without actually being on

site. And that is why we made

the centre as practically orientated as we could. The Queensland resources Council

says there's a growing trend towards career changes in the

mines. I met a teemp, a

soldier, and a ski instructor all looking to change careers

to get well-paid jobs in the

mining industry and I think you're going to see you're going to see more of

that, people jumping out of one

career into another. It's fair

only thing we're missing is a

dole dust around the place. Once graduated these

recruits hope to make the

transition from trainee and

miner and really heading

underground. The bank of

England is set to be given more responsibility responsibility to ensure there's no repeat of the events during the global financial crisis when the English banks

had to be bailed out by the

taxpayer. A new powerful committee will be created with committee will be created with

wide ranging over sight powers

. Are you yes or no? . Are you yes or no? To prevent such happening again, the Bank of

essential being given

essential being given sweeping new moufr nertion the most

important change to the way the

British economy is managed.

I've come to the marble I've come to the marble hall of the Bank of of the Bank of England to find

out how this ancient and powerful institution hopes to

prevent such a rice Christis happening again. - crisis happening again. The happening again. The task of

the barng of eeng's new finance

committee will be to spot banks - where banks collective risk and to collective risk and to nip it before it before it becomes a disasters.

This is where they will This is where they will assess

the health of the economy of

the world. But the big

question is - given that the

Bank of England failed to

prevent the last crisis, why we should believe that with its

new pow ers it should do any

better this time. We can do a lot better job than in the

past. There were warnings some

from this institution, some from the

from the FSA, many

and yet nobody picked up the

warns and ran with them. Can we

promise that it will never

happen again over the next 1050 years? No, that would

to say that. But can we do a

much better job than happened

in this country in it is the

past is a 15 or 20 years? J

yes. We can. By the end of 2012

the fans financial policy committee expects to committee expects to be able to force banks

force banks to slow down the pace of lendsing if such lending were seen to be leading

to a bubble in the housing the ordinary person on the

street is going to notice this,

because the bank now is not only going to affect the price

of your mortgage, but is actually going to directly impact the availability of the

mortgage, I think it's very

important that the bank proceeds cautiously

proceeds cautiously because

actually we know remarkably

little about the effect little about the effect of

these tools. If the Bank of

England does the job properly,

it won't be making many which the banks, households, businesses perhaps even

politicians all feel that the boom somebody has to stand to one side and say side and say this is getting out of control. In the old expression out of control. In the old age

expression we're going to take

away the punch bowl and slow

this down. So next time there's

a dangerous party in the

market, the Bank of

market, the Bank of England

plans to turn off the music and take away the booze. China take away the booze. China has unveiled a high speed rail between Beijing and Shanghai. Officials say the world's

fastest bullet train will fastest bullet train will begin

carrying passengers next

month. China's new bullet

trains are the fastest trains are the fastest in the world. They will world. They will take passengers from Beijing passengers from Beijing to

Shanghai in less than five

hours, cutting travel time in half.

TRANSLATION: We named it as the long mouthed rocket bietds's symbol of the symbol of the Chinese tradition. The new trains have

a top speed of more than 480km/h, but the Chinese

Government has decided only

slightly slower pace for every day travel.

TRANSLATION: You have

both the social and economic benefits into consideration consideration. Under these circumstances it circumstances it 's reasonable to choose 300km/h. The to choose 300km/h. The China

keez Government plans to keez Government plans to build

13,000 track by 2012, more than

the rest of the world put

together. I will invest in $43

0 billion US between 2011 and construction and has Shug Road

shh! Rugged off concerns shh! Rugged off concerns that the ministry is already heavily

in dent and should take things slowly. TRANSLATION: In the five-year plan, railway

construction will continue the

trend of rapid growth. We will

not slow down the pace and there will be no cut in investments. When the vain

trience Beijing to Shanghai line start taking passengers next

next month, ticket Fos the high speed confidence won't come cheap, starting at $85 US each.

But cheaper ticket s will But cheaper ticket s will be available for anyone doesn't want to travel quite so fast, with another service

making the Beijing-Shanghai

journey at a leisurely 250km/h. And now let's take a

look at what is making headlines around the the region. The Standard says Beijing's top official on Hong

Kong affairs has urged

potential unity and support for

the SAR Government if the city wants longer term benefits. 'Financial

benefits. 'Financial Times' reports Has just arrived for a press

conference. The Canberra press

gallery is Governor-General - you can see the Dalai Lama.

That is live shot from Parliament House. The press

gallery has been given an opportunity to throw a few weeks at the Dalai Lama Dalai

Lama so so we might listen in. All members of the parliamentary committee parliamentary committee for

dibbet has been holding talks

with him this morning We have a very a very busy schedule for you today in Canberra. We're so

pleased to see you in such robust health, able to do all of these

appointn'ts. From here, his holiness is going to see Mr

Abbott. Then he is going to

having a meeting with religious

leaders, a lunch with the parliamentry friends of Tibet, and then and then a public function over in the main Committee for in the main Committee for 84 members of Main Committee for 84 me

of Parliament. That is the

largest number of parliamentarians who have ever

That is a measure with which

the respect that people in this

Parliament hold you. We wills

have slst a number of

ambassadors there. Can I

welcome Senator Bob Brown and

Mr Peter Slipper who is on the Mr Peter Slipper who is on the

phone. But I ask peat tore come

up. Peter is going to ask you

to speak and then direct the

questions. Your Holiness questions. Your Holiness and

members of the press members of the press gallery, I join of members of the all-party group

of Tibet in welcome of Tibet in welcome ing Your Holiness back to Parliament House.

House. You're a very

House. You're a very welcome guest. And people around guest. And people around the

country are very enthusiastic country are very enthusiastic

about your regular visits about your regular visits to Australia because you are Australia because you are an

inspiration to all of us. I am wondering whether wondering whether you might

like to say a few words to

those who are present and then

we will give the media the

opportunity of asking some questions. Your Holiness.

Hello. Good morning, everybody.

I always say carry a salute

to commitments. Number one commitment I am just commitment I am just one of the

nearly 7 billion human being.

Now today's raility Now today's raility is such -

reality is such that one

individual's future very much

is that of the rest of the world. So, therefore, even from one point you have concern about the humanity. So

with that belief, with my own with that belief, with my own shared responsibility, so I (PROBLEM WITH SOUND) Now, first, in order to bring

stable, peaceful world, I stable, peaceful world, I often

telling people the 21st century actually becomes century

actually becomes century of

bloodshed. Over 200 millions of people killed. If these immense

violence really benefit - violence really benefit - bring some benefit, some some benefit, some stable or

happy world, then it might sort

of justify immense violence,

but that is not the but that is not the case. Therefore, our past experience

we must make every effort to

build this 21st century should

be cent riff of dialogue. That

means - century of dialogue.

That means That means some disagreement, some potential of conflict

always there. So the only thing

is our method softing is our method softing these

problem, not using - solving

these problem, not using force but using sort of dialogue. Respect others' interests. The

reality, destruction of your neighbour is destruction of

yourself. So we need sense of

global responsibility that very much relate s to much relate s to central concern of concern of other's well being. That also

inner peace. More sense of compassion for the feeling compassion for the feeling of

others' well being. You

yourself certainly should get

more inner self-confidence and

inner strength. As a result reduce fear, reduce dis trust,