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Lateline Business -

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(generated from captions) to get to these elite levels in

sport and music, why do we

still sometimes see top

performers choke? Well, this is

one of the great mysteries of

sport and one that I have good

reason to look at in the book,

because I in one of the

defining matches of my table

tennis career at the Olympic

Games in Sydney I had a

catastrophic meltdown in my

opening match. It wasn't my

ability was inefficient, I just

couldn't cope with the

pressure, the expectation, the

occasion. And this is a

fascinating phenomenon because

it's something I think we can

all relate to. Greg Norman,

great Australian sportsmen,

final round of the US Masters

in the 1990s, he was leading by

5 or 6 shots from Nick Faldo

and totally fell apart and he

did it a number of times in the

defining stages of golf's major

titles, and I think the answer

is actually relatively simple.

When you learn a skill for the

first time you exercise

conscious control over it, like

when you drive a car you're thinking about turning the

steering wheel, looking in the

mirror, moving the gear stick

and so on and as you build up

the neural framework supporting the skill you have to

concentrate very hard. When you become brilliant and

proficient you can do it

subconsciously. When you drive

you can think about what you're

going to make for dinner. The

problem with choking is you

become so anxious that you

wrestle conscious control over

a skill you ought to be

delivering automatically. That

complicates the smooth workings

of the connection between brain

and hand or brain and foot or

whatever it happens to be.

That's why you get a dramatic

decline from brilliance to

someone who looks rather like a

involves. Given presumably the

natural instinct when you're

faced with a pressure situation

like this where you've got one

opportunity to stink a put or

one opportunity to play a piece

of music in front of an

audience the natural thing

would be to choke and doubt

yourself, what do athletes do

to avoid having that reaction

and overthinking it? Well,

first of all I'd like to

acknowledge what you say. It

is almost natural when you care

about something to focus very

hard on doing it. You can

understand why we do that you

can understand why it's an

adaptation that often would

something very complex that work, but when there's

you're doing that conscious

control can be catastrophic.

How to avoid it, we know

are striving for top choking is triggered when you

performance under pressure,

when you really want to do your

best. One way is to take the

pressure off by pretending to

yourself that what you're doing

doesn't matter very much. If

you don't care about the

outcome you're less likely to

become anxious and, therefore,

less likely to choke. A lot of

performers are able to perform

in self-dillusion, kid-ology to

alleviate the pressure on

themselves. Different

techniques works. Some people

say "The result's in God's

hands". Kevin Pietersen the

English cricketer said it's all

about fate and that liberates

him. Different performers use

different techniques. Or you

need to carry your racquet in

the right bag or wear the right

sneakers? Exactly,

superstition. It is rather

extraordinary to see in the

arena of competitive sport when

defeat and victory are measured

in such small variable ables ,

so many athletes are

superstitious. It's the way it

impacts on the mind and if the

performer believes it might

help them, that actually can

help them. It's like a placebo

effect. Matthew Syed we

appreciate you very much coming

in, thank you for joining

us. Thank you.

The weather, rain developing

in Sydney, Canberra and

Melbourne.

That's all from us. Lateline

Business coming up in a moment.

If you'd like to look back at

tonight's interview with

Matthew Syed or review

Lateline's transcripts, you can

visit our website and follow us

on Twitter and Facebook. Now

Lateline Business with Ticky

Fullerton. Tonight - protecting investors from

themselves ASIC calls for

greater disclosure from the

risks surrounding CFDs or

contracts for difference. When

you go to the racecourse you

can't lose more than you put

down. Power costs to keep

rising as investors stay away

because of a carbon policy

vacuum. We're not going to put

money into Australia until we

encouragement from the policy have confidence and we have

framework set-up. And, the

danger of going it alone -

Dulux splits from Orica amid

talk of early takeover. From an individual shareholder should

be a very prized chair.

Hopefully that will keep the

share price higher. First to

the markets and it was a

cautious day with low volumes,

but the All Ords finished up 15

points. The ASX200 also made a

small gain held up by the big

miners. In Japan, the Nikkei

slipped a little. Banks and profit pushed Hong Kong's Hang

Seng higher, and in London the

FTSE is up. The corporate

regulator has threatened to get

tough with global trading

houses pedalling high-risk

products to retail investors.

A study by the Australian

security guards found companies

issuing derivative products

called contracts for difference

or CFDs need to do more to

inform investors. In particular the regulator

criticised operators who

advertised high-risk products

Here's Phillip Lasker. to a mass market on prime TV.

Sometimes the man on the street

needs to be protected from

himself. ASIC found those

selling the contracts for

difference aren't doing it well

enough. It's riskier than the

racecourse. When you put a bet

down you can't lose more than

you've put down. Here, because

it's a leveraged bet you can

lose a multiple of what you've

put down. Within a short

period, potentially one day you

could actually probably for

most average Australians you

could lose everything you

own. This report was too late

to save many retail investors

wiped out by the collapse of

the derivatives trading

specialist Sonray, but the

growth in over-the-counter CFD

trading through companies where

transactions are less

transparent and disclosure minimal has regulators worried.

Lured by the prospect of quick

and easy big bucks, retail

investors are being invited

into the high-risk world that

used to be the exclusive

preserve of the sophisticated

wholesale investor. The

advertising is actually

focussed on prime-time viewing

to mass market audiences and we don't consider these

appropriate products for mass

market. These are for very

sophisticated investors who

really can comprehend the risks

and have the resources to

actually be able to tolerate

potentially severe losses. The

ASIC study found investors are

confused about how CFDs work.

They don't understand the

significant risks and they

don't seek financial advice

before investing. Nor do they

receive enough information to

make informed decisions.

Kingsley Fong is a CFD investor

who could hardly be called

ignorant. He lectures in wealth management, corporate

finance and securities trading

at the University of NSW. This

industry is quite new and I

certainly would not claim that

I understand this industry

entirely. There are many

things I don't understand. They

include a long list of issues that remain a mystery to

investors. How the CFD

providers have their own

positions, what's the impact

and the counterparty risk,

whether anyone know what they

have done. Some of these issues

may be addressed by ASIC's

recommendations which include

disclosure benchmarks for these

products, continued monitoring

of advertising, the publishing

of an investor guide to help

understanding and the threat of

regulation if things don't improve. The process of

improving disclosure and

improving education is already

under way. I think now with

the added impetus of this

report we'll see this brought

to a satisfactory conclusion

very shortly. According to the Financial Markets Association

very shortly means weeks or

months. Dulux Group has made its debut on the ASX after

breaking ties with parent

company Orica last week. Dulux

Group staff were joined by the

company Mascot to witness the

start of trade at 11 o'clock

this morning. Managing director Patrick Houlihan says the growth strategy for the

paint and garden products

manufacturer will remain

largely unchanged but he

wouldn't be drawn on any

specific plans. We'll continue

to focus on developing those

market leading positions here

in the Pacific but at the same

time we're really looking to

continue to see sustainable

niche positions in Asia. So we

think that two-pronged approach to strategy really presents exciting opportunities for our

shareholders. The stock opened

at $2.50 and traded as high as

$2.78 before closing at $2.57.

Dulux Group chairman Peter

Kirby shrugged off suggestions

that the new company could

become a takeover target if its

shares fail to perform in the

longer term. From an individual

shareholder, it should be a

very prized share, and

hopefully that'll keep the

share price high and hopefully

the predators at bay. Orica

shares didn't fare as well

closing down almost 6%. Now

for a look at other trading on the local market earlier I

spoke to Marcus Enfield at Patersons Securities. A mixed

bag across the sectors today, a

cautious start to the week.

Wall Street up over 5% last

week and we were up 3.5% after

sharp falls just before that,

and the US had its lowest

volume session this year on

Friday despite its rise and we

have the US results season

starting tonight. A lot of

volatility, low volume, the

rally we've seen isn't

desperately convincing. We

still have big question marks

in the market. Market still in

medium term, weekly start down

trend and that seems to be the major trend at the moment. The

short-term rally isn't

convincing us. We'll see how

the result season goes in the

US. That really is the next

big indicator for where we go

from here. Just looking at a

couple of stocks, strong gains

for Linus Corpse, what's driving the interest

there? They cleverly put out an

thount. They own the richest, biggest rarest earth deposit

out of China, due to come into

production in the third quarter

of 2011. We have a little

thing in our office, anything

you can Google that you ask

about you get fined $1. The

Chinese ministry of commerce

put out an announcement which

they have picked up on and

published saying they are going

to cut quotas on Chinese

exporters of rare earth by 72%

in the previous corresponding

period in the quarter and 40%

this year on last year and

obviously if they can get into

production quick enough, they

will be saying that they're

capable of taking up any slack.

We have 32 million shares

traded, all the day traders are

over it, up 27% in a month or

so, just a very busy stock on

the back of that announcement.

When you consider it's 2011

till they start producing it

will probably be a momentary

interest. More noise around the

Sigma pharmaceuticals takeover

deal? Yes, South African bid e

they announced their bi-in May

after a March profits warning.

Sigma flat on its back in 2005

when they bought Arrow Pharmaceuticals they were 3

bucks, they're now 43 cents

today. They've received a

takeover bid, perhaps an

opportunistic one from Aspen

Pharma care in March. They

originally bid 60 cents,

dropped it to 55 cents just

recently and so Sigma are

saying, " Look we want to talk

to you but don't like the new

offer and we're going to talk

it up". Basically they're on

the back foot, we'll see what

happens, but not good for the

share price to see the bidder

basically having all the power

which is what's going on at the

moment. Surfwear company

Billabong International going

surfing USA? A bit like the

Rupert Murdoch of the fashion

retailing overseas, they have

bought a company - I have to be

careful it's not RACV - the

company's actually called RVCA

they've bought. They say it

was for an undisclosed amount

and it's not material to

earnings this year. They also

saw a counterbid for West 49 a

Canadian retailer they're

trying to buy for $91 million.

They're in talks about that.

It didn't do much for the

Billabong share price, down a

little today. Marcus Padley

thanks for talking to Lateline

Business. To the other major

movers on our market: Federal Cabinet meets

tomorrow with sections of the

business community wanting the

Government to re-commit to a

carbon Emissions Trading

Scheme. The meeting comes as a

new report suggests Australians

will be paying billions of

dollars a year extra for

electricity if a price for

carbon is not introduced soon.

Drusht reports. The Government

-- Andrew Robertson reports. The Government may have

postpone ed the introduction of

the carbon Emissions Trading

Scheme. Investors are in

corner. No-one is going to finance commercially, State

governments may be silly enough

to go there, but no-one is

going to build that commercially because they know

there's a price tag on

pollution coming. With

investment in renewable energy

stalling, stop gap options are

being considered. The Climate

Institute is worried cheap to

build but costly to run power

stations will add up the

cost. In 2022 that Costa Brava

the economy up to $2 billion,

that's dead weight loss to the

economy. No benefit to the

broader economy or to

consumers, and so it needs the

Government to set a clear

signal when it's going to put

the limit and price tag on

pollution. It's not just the power industry that's being

affected by the lack of a

carbon price. Fiona Wain is

the head of the business lobby group Environment Business Australia. She says all

sectors are being hit as the

investors wait for the

Government to show leadership. We're seeing investors, both domestic and international investors saying

we're not going to put money

into Australia until we have confidence and encouragement

from a policy framework setting. The Investor Group on

Climate Change represents fund

managers with over $600

billion. It says even basic investments such as property

are being adversely affected by

the lack of a price for

carbon. We know that pricing

energy use in buildings is very

difficult and we need some kind

of regime to do that. Do you

buy an old building or a new

building? These are real

questions for investors?

Refurbish an old building? It's

because of the that type of

uncertainty that Nathan Fabian

believes tomorrow's Cabinet

meeting is crucial. What it

should decide is we need a

framework for pricing emissions

as soon as possible. Most

business and investors have

been calling for that for some

time. If it can't see its way

to deliver that we need to know

what this consensus-building

process looks like and we need

as much a commitment as the

Government can give that will

implement this framework in the

next term. Environment Business

Australia's Fiona Wain believes

fudging a decision tomorrow

will have serious implications

for the renewable energy sector

in particular. Geothermal,

marine energy, solar energy all

need very early stage

investments so they can scale

up in time to make a

difference. If that investment

doesn't come to Australian

projects it will go to Chinese

projects or European projects

or American projects. Fiona

Wain points out that the

Government's current revised

Emissions Trading Scheme

timetable of 2013 will in

effect mean that major carbon-reducing infrastructure

won't be built until the end of

this decade. Not everyone,

however, in business agrees

that a carbon price and a

trading scheme are best for the

economy. A short time ago I

was joined by Peter Anderson

the chief executive of the

largest employer representative

group the Australian Chamber of

Commerce and Industry. Welcome

to Lateline Business. Thank you. We've got an election in

the wind, a new leader, a

smaller Australia, policies

coming out on the trot if not

the run, what's the biggest

issue for business and

employers in this election? The

real issue is to have political

leadership that looks to the

economic horizon, that can lift

a vision from the day-to-day

challenges and issues we have

and craft a broad long-term

economic plan for Australia's

prosperity, and that takes some

leadership and it also takes

some good sensible policy

thinking and it's certainly not

without a lot of hard reform

effort attached to it. Prime

Minister Gillard is tackling a

couple of those long-term

issues, the climate change

institute chief today said

power price also go up because

we don't have a carbon price in

this country and no action on

climb, he and others are

calling for a carbon price and

an ETS - is that what you'd

like? We've had momentous

political changes in Australia

in the past month, but one thing that the change from

Kevin Rudd to Julia Gillard has

not been able to change is the

fact that the Copenhagen

conference last December failed

to reach a global consensus on

international action on climate

change and that means something

for a country like Australia.

It means that we should be

recalibrate ing our approach to

take into account those global

realities. If we went down the

path of an Emissions Trading

Scheme right now or a carbon

tax for that matter it would be

a big stick which we would be

hitting our own economy with,

our own community with for very

little gain. What we need are

policies which are more carrot

than stick in this period

whilst we're waiting for an

international consensus to emerge. In fact, if the Prime

Minister announced a couple of

helpful direct action goals and

carrots as you say, and talked

about a carbon price but not

yet, that might suit you very

well? It's very important we

don't get ahead of ourselves

here. We saw last year that

big ideas can come crashing

down, because all of the big

ideas to deal with climate

change which are based around

targets and assumptions

ultimately expose Australia

greatly if other countries

don't pick up a fair share of

the heavy lifting as well. Just

moving to the new deal on the

mining tax, the Government says

the deal only shaves off $1.5

billion on Budget numbers. Analyst reports are now coming through questioning that view.

Where do you sit on this? We've

had a look at the figures and

we have to at this stage rely

on what Government through

Treasury is saying. There

obviously are assumptions about

commodity prices being built

into what the Government says

will still be its revenue

stream. The important issue

here is to recognise there is

still a heavy new tax which is

being placed on the resources

industry and only a proportion

of that is being returned to

the economy through tax relief

and tax reform. The Government

has a big tax reform agenda

which it still is yet to grasp.

It needs to be seized. A tax reform agenda which adds a

great deal of incentive and

reward for entrepreneurship in

Australia is part of building

that economic vision, part of

lifting our sights to the

economic horizon and taking opportunities which are great,

but require hard reform to occur. Do you believe that the

funds raised from this new

mining tax will indeed be

funding the rise in the superannuation guarantee to 12%, or do you think employers

might end up funding this? It's

not a question of even what I

think, it's a question of what

are the facts, and the facts

are that the mining tax is not

going to fund an increase in

superannuation from 9% to 12%.

The Government is going to

legislate that employers in

Australia, about one million

employers pay that increase in

superannuation. It's a 33% increase in what employers are

currently paying. It's an

enormous hit on the employer

community of Australia. It was

not recommended by the Henry

review. It was put in place by

consultation and what the the Government without

Government now needs to do is

to sit down with the employer

community of Australia and work

out a way in which that can be

funded, because at the moment

the Government is simply saying

you the employers of Australia

are progressively over the next

decade going to be doing almost

all the heavy lifting on retirement incomes in this

country and that's a very

unbalanced approach. Moving to

industrial relations, are you

expecting the Government to run

a strong scare campaign on

WorkChoices? I think the

Government will point to the

changes it's made but equally

what the business community is

going to do is to point to the

need for our industrial

relations system to maintain

both the principles of fairness

and the safety net that is

generally accepted in the

community as necessary, but

also the necessary flexibility

for an economy as diverse as Australia's and just in the

course of the past couple of

days we've seen an example

where one of our new industrial

relations rules in the retail

industry has had negative

impacts for afterschool

employment of young people in

country people. That's

undesirable. We need to build

some flexibility into those

rules so those silly outcomes

don't occur, so those errors

are corrected and the

Government needs to point not

only to what it's done, but to

make sure it has an open mind

toe making changes in the

future if re-elected. There are

other concerns raised by the 'Australian' today on Julia Gillard's Fair Work Act which

will impact coastal shipping

and particularly the movement

of freight under international

flags. Is this a concern? Do

you agree with people like Paul

Little? I do. There's no doubt

even where changes are merited,

where those changes bring about

costs and those costs flow

through, in this case cost of

shipping passed onto business

consumers and the public at

large. What we need to do is

to pick up the principle the

Government said and that is

that enterprise bargaining involving productivity

tradeoffs will be at the heart

of the industrial relations

system. Whenever costs occur

they should be subject to offsetting productivity changes

and we haven't yet seen a lot

of that coming out of the

industrial relations

system. Thank you for talking

to Lateline Business. Thanks

very much. Home loan approvals have risen for the first time

in eight months. They were up

1.9% for May, above what many were expecting. The overall

picture is unclear as it was investment loans pushing the

numbers higher while the value

of loans to owner occupiers

fell. There was a sharp rise

in lending to buy new

properties, but a fall in the

finance to build them. The

overall increase was partly due

to homeowners switching

existing variable home loans to

fixed rate deals. The new

owners of the Ravensthorpe

nickel mine have begun

advertising for staff and say

they're on track to re-open the

mine next year. The news comes

amid indications of a strong

sustained growth forecast for

Western Australia. Jane Norman

reports. The Ravensthorpe

nickel mine was mothballed at

the beginning of last year, a casualty of the global

financial crisis, but 18 months

on, signs of life have

re-emerged with the new owners taking out newspaper advertisements to lure workers

back to the south coast. This

is a very positive position

where they're out front and

asking for 600 people to come

and work at Ravensthorpe, so

we're feeling good, and the

future looks strong. Canadian

company Quantum Resources

bought the mine from BHP

Billiton earlier this year and

plans to restart production

next year. According to the WA

Chamber of Commerce and Industry, it's a sign of things

to come. We will see the WA

economy again start to fire on

all cyclinders after the

glvk-induced slowdown that came

during the last 18 months. --

GFC. That is going to be the

catalyst of growth for the next

12 months and beyond as a

number of key mining projects

start to commence construction

and that feeds into the broader

economy. As WA's economy grows

so, too, will its population

giving a much-needed boost to

the local retail and property

markets. We're seeing people

looking to buy investment properties again which is

something we didn't see 12

months ago. WA's growth rate is

expected to return to boom-time

levels of around 5% within the

next three years. Businesses say that gives the Federal

Government time to bring in

measures preventing a repeat of

the labour shortages that

nearly crippled the State

during the previous boom.

Now a look at the business

diary:

A look at what's making news

in the business sections of

tomorrow's newspapers. The

'Australian' says the big banks

are under pressure from rising

funding costs and could put up

rates independent of the

Reserve Bank decision. The 'Australian Financial Review' says unions are pushing wage

claims of up to 7% as a pay

agreements come up for

negotiations. And the 'Sydney

Morning Herald' says the Tax

Office wanted Sonray wound up

in 2005 because it was

technically insolvent. That is

all for tonight. The Dow is

just off 15 points, and the

FTSE is up 35 points, or 0.7%.

I'm Ticky Fulton, thanks for

watching. Goodnight. Closed Captions by CSI SOMBRE MUSIC February 23, 1942. Out of Poland had come these appalling pictures of the end product of German conquest. They show mass misery and death carried by German thoroughness to an extreme, rarely seen before in history. They also show the kind of thing the fighting foes of Nazism may expect if they really lose the war. The methodical massacre takes on an emotional quality of sadism as applied by the Nazis to the Jews. Herded in Polish ghettoes, forbidden to walk out or use a railway, machine gunned in their synagogues, thrown by thousands into the rivers, stripped of clothing and food and possessions - the Jews of Poland are literally dying out. These are the grim statistical facts. The details of human agony are multiplied beyond the telling. 'Life' magazine. At the start of 1942, almost all the news was bad. The Soviet Union - the United States' new ally, was under unceasing attack from the Germans who had encircled Leningrad and reached the outskirts of Moscow. Japanese troops had now taken Singapore - the Gibraltar of the east, and with it, all of Malaya. They had seized Borneo and Burma and Hong Kong. And they had taken Guam and Wake Island, Makin and Tarawa. There was not a single American base between Hawaii and the Philippines. But President Roosevelt and British Prime Minister Winston Churchill agreed that for the time being, they would have to remain on the defensive in the Pacific. Germany, they decided, with its vast armies and mighty industrial machine was the greatest danger. Victory in Europe would require not only the mobilisation of a generation of young men, but also billions of rounds of ammunition, millions of guns, hundreds of thousands of tanks and airplanes and fleets of ships to bring them to battle. Producing all of that would take time. Meanwhile, the survival of Britain and the Soviet Union depended on a steady stream of food and fuel and weapons from America. When I was seven years old in Theodore Judah School

a boy from England, an English refugee, came into our class. His name was William Murgatroyd Buchanan.

We all called him Royd - Royd Buchanan. And we developed a great friendship and one day, Royd came over to my house and I was upstairs and he called, "Burt, Burt." And I looked out the window and I said, "Hi, Royd, what's going on?" And Royd said, "Do you know what a dirty German sub did to my father?" And I said, "No, what?" He said, "It killed him." And...I don't...I didn't know how to deal with that. I went downstairs and and we sat down under the tree and talked awhile. But it was still something that I never had any experience with up until that time - one of my best friends telling me that his father was killed in the war. On the evening of January 13, 1942, as American troops tried to stop the Japanese on Bataan, a German U-boat surfaced silently off Manhattan. Its commander was astonished but gratified to see that more than a month after Germany declared war on the United States, America's largest city was still ablaze with lights. Using those lights to silhouette its target, he sent a torpedo hissing towards the side of an American oil tanker. BLAST Then, slipped back beneath the sea and moved south in search of further prey. Within 12 hours, he had sunk seven more unarmed vessels. The United States seemed totally unprepared for this kind of war. BLASTS By the end of January, U-boats would sink 25 tankers along the east coast continuing a fierce struggle for supremacy of the seas, called the Battle of the Atlantic, and threatening to choke off America's allies. American beaches were black with oil. WOMAN: All along the Gulf coast and all on the shores of Mobile Bay, we could go sit on the beach, but we were not allowed to light a fire because of the U-boats. We heard often in Mobile that ships were sunk

just as they went out of Mobile Bay and we know this to be true because the life preservers and the canned goods washed up on our beaches. For a time, the waters from Jacksonville, Florida to Galveston, Texas were considered the most dangerous shipping lane in the world. The only safe run, said one weary merchant seaman, is from St Louis to Cincinnati. BLAST