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(generated from captions) because the people have had a

chance to see the Republican candidates. 4 months ago

Scranton's Democrat mayor

described migt rollny as a

serious candidate as a

legitimate political threat to

Barack Obama. Now the mayor

thinks the former governor is

less than impressive and has

taken longer than expected to

wrap up his party's nomination.

But he believes the Obama campaign still has two

significant liabilities - a

continuing lack of enthusiasm

among the young. Four years ago

young people were just inspired

to get involved on their own.

They didn't have to be prodded.

No-one had to ask them or say would you please help in our

campaign. They wanted to be

part of the campaign. I still

think they have to overcome

that hurt. And another emerging

problem of rising gas

prices. Because the summer's

coming, that's when families go

on vacation. If it's at $4 or

$4.50 there will become a point

when the average person is

going to say I can't afford to

do the certain things I'd like

to do. There's no strict correlation between gasoline

prices and whether the

President loses. 4 months ago pollster and commentator

Professor Terry Madonna was

reporting p sma jority of pence

vainians wanted a change at the

White House. He's surprised at

the turn around he's seen. In

our State he's not doing as

well but on a pivotal question

we pollsters asked do you think

President Obama should be

re-elected or do you think it's

time for a change, for months

that question more than half

the voters said time for a

change. Now it's under 50%. So

he's doing better. Vince Galko

is a local who happens to be a Republican campaign consultant.

The 39-year-old thinks rising

gas prices will hurt the

President and believes

Republicans can make inroads in

Scranton because the Democrats

here don't fit the national

profile. It's a very prolife,

protraditional marriage, strong

national defence, limited

government community, very

strong second amendment and

sportsman community, so they

often lean more towards the

Republican side on those

issues. Hello

issues. Hello Scranton. In

another sign that Scranton is

once again shaping up as an election bull's eye the

President came to town last

year packing out the local high

school gymnasium. We want an

America where hard work is

valued and responsibility rewarded. Barack Obama

presented himself as a champion

of working Americans in an

effort to reconnect to the

voters who turned out in droves

for him 4 years ago. We are

America, we get back up, we

fight back, we move

forward. Steve Simko had a

front row ticket. It was very

inspiring. He's become more aggressive, which he should

have been from the start. But

25-year-old Alex Latorto

couldn't be bothered. He

describes himself as a stray

Democrat. We're the folks who

would go out and go door to

door and get lawn signs out for

him and my mum isn't making

phone calls for him this year

and it's a difficult situation

for us. I don't know who I

would vote for. He won the

State by a double digit margin

four years ago but Pennsylvania

is far from a sure thing for

Barack Obama this time. In

2008 he did really well in

Scranton, do you think he will

do here again? Probably not but

there's hope. Not sure. Why

not? I don't know, I'm just not

sure now. Because of the

economy, I guess. Tough,

everything's going to be tough.

In Scranton turn out will be

crucial. Parade day's over but the presidential election

season is just warming up. And

now to the weather:

And that's all from us. If

you'd like to look back at

tonight's interview with Anna

Bligh or review any of

Lateline's stories or

transcripts you can visit our

website and you can also follow

us on Twitter and on Facebook.

The Business is coming up. Tony

Jones will be back here tomorrow night and until next

time goodnight. Closed Captions

by CSI This Program is Captioned

Live. Tonight - DJs in a spin.

Out of fashion with shoppers St

Retailer's unveiled a shock

plunge in expected

profits. Today's about drawing

a line in the sand, writing the

wrongs of the past and moving

forward. I'm Andrew Robertson,

you're watching The Business.

there may be no other store

like it and we can see why.

David Jones is in trouble.

Sales are on the slide but boss

Paul Zahra says he will get the

cash registers ringing again.

The phosphate war out of

Africa. Joint vent rers fall

out over a multibillion dollar

prize. Having a crack at the

super next egg the tax

concessions that pay the rich

and rob the poor. First a quick

look at the markets and those

worries about a slowing China

won't go away.

The night mare that is

retailing was on full display

today with David Jones

reporting a nearly 20% full in

half year profits. Joining the

list was Kathmandu where

profits plunged 40%. Kathmandu

says its strategy is working

but David Jones chief outlined

a plan including an assault on

online shopping. There was

speculation that the David

Jones chief would not continue

steering the 174-year-old business. The experience that we've seen to date has been

head winds that we've not

experienced in the market place

for, according to industry

standard, 50 years. David Jones

has been savaged by reluctant

thrifty consumers, online

shopping and plunging demand in

its credit card business. Half

year profit dived nearly 20%

and the forecast full year is

expected to be as much as 40%

down. They've definitely lost

customers. Getting them back

will see DJs spend around $75

million on new bigger and

smaller format stores as well

as an online shopping

push. That's potentially a

little bit on the lighter side

than what we would have

expected. I think they're

probably pulling a little bit

away from the store network in

the shorter term to fund the

higher capex spend for

online. The David Jones chief

says retailers with both a

physical and online presence

like many in the United States

are in the box seat. The

retailers who are doing well

all have omnichannel presence

but DJs is a little late

getting on that band

wagon. David Jones is also

increasing its focus on

customer service, boosting

frontline staff and training.

And Paul Zahra was forced to

respond to questions about his

own future. The strategic plan

went to the board, it was signed off this morning. I've

got the full backing of the

board. They understand we need

to invest to move from being a

survivor to a thriver and

that's what today's about. But

thriving won't be easy. We

think discretionary retail

sales are likely to be flat, po

tenially down for the

foreseeable future. Just ask

the people at clothing and

outdoor goods retailer

Kathmandu, half year profits

plunged 43%. Kathmandu is in a

market where there's a lot of competition and they've

attributed their sales drop to

margins. I think that's

definitely the case there. With

more adventure wear players in

the market it's a lot harder to

get those margins through when

everyone's competing and discounting. Not surprisingly

Kathmandu was reluctant to

forecast what future profits

may be and unlike David Jones

they don't concede they need to

buy into a new strategy. There's a power play

going on in the phosphate

industry with mine makers

making a hos tail takeover bid

for joint venture partner UCL

Resources. They own a mine off

Namibia will ch will produce 2

billion tonnes of phosphate

over the next 20 years. UCL has

rejected the takeover offer

calling it inadequate. It takes

100 million years to form

phosphate, a major farming

input that's fast becoming a

scarce commodity. To feed 9

billion people by 2050 will

require more food and hence

more fertilisers. On top of

that we're seeing increases in

the - or changes in the diet of

the population, the global population, particularly

towards more meat and dairy

based products which require

more phosphorous inputs to

produce. Prices for phosphate

have spiked in the past few

years, up to $400 a tonne,

which has sparked a new

interest in exploration. That's

why the sand piper project, a

huge marine deposit of almost 2

billion tonnes of phosphate is

so valuable. The project is

owned by UCL resources, mine

makers and property development

company Tungeni. But Mine

makers wants to run the show

making an unsolicited bid of

$24 million for UCL Resources.

Fertiliser analyst Matthew

trivet said the offer missed

the mark. A lot of the later

shareholders got into UCL

probably around the 36 cent

mark and also with the actual

feasibility study for the sand

piper project coming back in

the vicinity of 6 to $700

million by my calculations it

really doesn't display the

value of the project cheer

trying - they're trying to

require. The view of the that

the UCL board has is that the

UCL shareholders won't have

their interest in UCL's principal asset, that of the

sand piper marine phosphate

deposit in Namibia deluted from

41.5% to 27%. UCL's major

shareholder is John Karl bet

Zen. He's rejected this and any

other takeover. Mine makers has

to attract 40% of the available

55% of other share horlds to

get this up to the 50% level

that they're requiring to push

the takeover forward. So within

those parameters I think they

will definitely have to sweeten

it a lot if they want to get

this over the line. UCL admits

it would be better for one

company to run the sand piper

project. It won't give details

but hasn't ruled out a

counteroffer to take over

Minemaker. It's quite difficult

with two joint venture partners

that are at the corporate level

having a mild conflict but we

are determined that this will

not slow down the project. And

with the resource becoming more

scarce and prices staying high,

analysts are calling for the diversification of phosphorous

sources. So we're not just

accessing phosphorous from

phosphate rock but also looking

to reuse phosphorous because

phosphorous is in human

excreta, food waste, compost,

all organic matter so we can

recover and reuse phosphorous

and use that as a fertiliser

too. Or food can get a lot more

expensive. Glencore has bought

Canadian grains company Sri

Viterra for $6 billion. It

exports grain from Australia

and owns handling facilities in Victoria and South Australia.

It has a barley operation.

Glencore's takeover bid was

made with the support of two

other Canadian companies. The

deal is subject to shareholder approval. Analysts say the

takeover of Viterra could be a

boost for Australian barley exports. Investor concerns over

a slowdown in China put the

brakes on stock marketings

across the region today and

Australia was no exception. For

his thoughts on today's action

I spoke earlier to James

Rosenberg from Macquarie

Private Wealth. The local

market tried to shrug off an

uninspiring lead from overseas

halving its losses throughout

the day, what does that tell you about what happened

today? For a start it was a

pretty quiet sort of day and we

did try to ignore the losses

overnight, particularly when

the Chinese market opened in

positive territory and despite

being a pretty quiet market and

no particular stock mouf -

moving around significantly we

did see some sell off later in

the afternoon, not dramatically

we closed down a little over 20

points and some of that is

because of a reversal of the

fortunes of the market in

Shanghai and also some weakness

across the region. The major

stock that bore the brunt of

the sell off was a further

decline in BHP which took about

8 points off the index itself. Another stock that got

a real dressing down today as

we already heard was David

Jones. What really annoyed investors about that result

today? There's a number of

things but particularly the

outlook statement. The result

itself down around 20% was

widely anticipated by analysts

but the fact that their outlook

statement for the remainder of

the year indicated a further

deterioration in their business

did spook the market. The company's talking about

earnings declining in therd er

oof 35% to 40% for the rest of

the year. They have expressed

optimism in the business with

further store roll outs and a

big investment in than their

online business as well as

employing new staff. But the

fact they have been suspended

for a few days probably

exacerbated the market's

reaction but with a 35% to 40%

downturn coming up 11% is

probably about right. Another

stock that was hit hard today

was Oroton, were its results

really that bad? No, I don't

think they were that bad at

all. In fact I think they were

pretty good. Their profit was

up marginally in what's very

much a discretionary retailer,

handbag accessories and so

forth. When you have a look at

it the company has outperformed

the market significantly over

the last quarter and a good

result but coupled with a

pretty cautious outlook

statement I think really saw

the stock down on profit taking

rather than anything that

spooked the investors with a

result itself. Another stock

going the other way today was

Transurban after the funds

manager announced it was

selling its stake? Yes, a big

block of stock went through the

market yesterday and I think

the fact that CP2 has been such

a large investor partially from

their stake in Connect East

which was taken over by

Transurban has weighed on the

stock for a while. Their stock

has underperformed the market

in the last quarter with very

much a perception of that stock

being an overhang. Now good

portion of it was sold

yesterday. That's a good thing

for Transurban, it basically

means that while the

relationship with CP2 was

pretty civilised it was perhaps

a little uneasy for Transurban

directors and management and

the fact that they've now sunk

below the 5% threshold really does indicate that they're not

likely to be a predator and

it's going to free up

Transurban management to get on

with the business of running

toll roads. James Rosenberg, thank you for your thoughts. Pleasure. To the

other major movers on the local

share market:

China is now comfortably Australia's largest trading

partner and that trade is only

going to get bigger in the

years to come. But while much

of the business community

focuses on maximising its

opportunities in China, other

markets of equal promise are

not getting the same attention.

One of those is Australia's

nearest Asian neighbour,

Indonesia, which has

transformed itself from a

dictatorship to democracy and

growing economic powerhouse in

less than a decade. A man who

definitely does see the

possibilities for Australian

business in Indonesia is Ian

Satchwell who is the head of

the Australia Indonesia

Business Council and Ian joins

me now from Jakarta. Ian,

you're a 35-year veteran of

Indonesia and you believe Australia's business

relationships with Indonesia

are underdone, why do you

believe that? I think that we

had the Asian crisis and a near

meltdown of the Indonesian

economy back in 1997 and '98.

Subsequently the rise of China

caused a lot of Australian

businesses to focus on China

and pretty well literally and mentally Australian business

people have flown over

Indonesia on their way to

China. But I'm pleased to say

there is growing recognition of

the extraordinary

transformation and growth of

the Indonesian economy. Just on

that point I'm sure most

Australians aren't aware that Indonesia's economy are growing

about 6.5% a year and within

the next 13 to 15 years it's

predicted its economy will be

the size of Australia. So what

opportunities is Australian

business missing out on in

Indonesia at the moment? Well,

the Indonesian economy, yes,

you're right, is growing and

indeed it will be quite a bit

bigger than Australia within a

decade. The Indonesian market

of 240 million people heading

for 250 million rapidly

becoming wealthier, a lot of

people moving into the middle

class is a fantastic consumer

market. So at that level a lot

of people are looking for increasingly expensive goods

from food stuffs think Du -

through to higher valued

manufactured goods, services in particular, sophisticated

financial services and

Australia is good at all of

those things and so there are a

lot of opportunities for

Australian business. As well,

Indonesia is a very rich

mineral and oil and gas province so Australian

companies involved in minerals

and oil and gas have also got great prospects. Although there

are some issues around the

mining laws in Indonesia that

we've had some publicity on

recently. Is there a perception

in Indonesia that Australia

treats Indonesia as almost a

second-class citizen and I'm

thinking now of last year's

public row over the conditions

in some Indonesian abattoirs

which prompted the Gillard

Government to ban Australian

beef exports to Indonesia? Look, the

relationship between Australia and Indonesia at the government

to government level is very,

very good and while Indonesia

has been somewhat irritated in

the way in which Australia has

made decisions that have

affected, amongst other things,

the price of food stuffs here

with the cattle export ban,

overall the relationship

remains very good. And

surprisingly Indonesian people,

well, maybe not so

surprisingly, Indonesian people

have very warm feelings towards

Australia. Australia is in the

top 4 countries in the minds of

Indonesian people as being

trust worthy, reliable, having

technology and systems that

Indonesia can use. So I think

that's a good platform on which

to build much greater business.

The relationship which remains

underdone and quite grossly so

is the business to business

relationship and I'm in Jakarta

with a delegation of ministers

and business people to start to

build a much Bert business-to-business dialogue

that we hope will result in a much stronger economic

relationship in the future. And

two of those ministers are the

Trade Minister and the

Agriculture Minister but would

it have helped our cause if one

of those ministers had gone to

Jakarta when this row over the

abattoirs broke out last

year? Well, I think there were

some attempts to talk with

Jakarta and indeed there have

been a number of meetings with

not only government officials,

State ministers and senator Joe

Ludwig, the agricultural

Minister has had deep

discussions with the

Indonesians both in Canberra

and in Jakarta. So we're now

out the other side of that. The

emphasis is on how Australia

and Indonesia can work together

to develop a good cross-border

integrated cattle industry that

by working together we can get

a sum of one plus one equals

three even and in the future to

even exporting meat to third

party markets and the two

countries can only do that by

working together. Tonight the Department of Foreign Affairs

and Trade is still warning

Australian tourists not to go

to Indonesia whilst the Trade

Minister is Indonesia with you

trying to get business to go to Indonesia. Is that sending

conflicting signals to the

business community about just

how safe it is in Indonesia to

do business? I think on your

first point Australian tourists

are cheerily noting the travel

advisory and then if noit -

not ignoring it risk managing.

This year nearly 1 million

Australians are expected to

visit Indonesia, making

Australia the third largest

source of tourists for

Indonesia. In terms of business

though the travel advisory is

somewhat more problematic

because business has a duty of

care to its employees and its

contractors and it also has to

take out insurance and the

travel advisory in the way it's

currently structured is

something of a blunt instrument

that doesn't, to the mind of

the Australia/Indonesia

Business Council and many f of

our members, properly nuance

the real risks that need to be managed when coming to

Indonesia. Quite frankly the

biggest risk is probably

getting caught up in the

traffic and hit by the

proverbial bus rather than some

terrorism incident. So it would

be better, it would be more

preferable if travel advisories

were more nuanced to enable

companies to risk manage more thoroughly. Maybe you could

take that up with the Trade

Minister while you've got him

with you. Ian Satchwell, thank

you for your time

tonight. Thank you, Andrew.

Well back home now and this

week Federal Parliament passed

laws to raise the compulsory superannuation contributions

level from 9% to 12% but a

fresh battle is brewing over

the way superannuation is

taxed. Each year the Government

foregoes around $30 billion

through tax breaks for

superannuation. Critics argue

those concessions favour the

rich and there's a push to have

the system overhauled. Since

Paul Keating introduced

compulsory superannuation in

1992 the system has been in a

seemingly constant state of

flux. This week the Gillard

Government gave the super

regime another makeover raising

the level of compulsory

contributions from 9% to

12%. What the Government's

interested in doing is making sure that Australians have

enough money to retire on. But

the constant tinkering with

super seems far from over and

the next battle ground could

well be over the tax breaks

given to superannuation. I

think the idea of some tax

concessions of superannuation

makes sense but when we look at

it we're spending nearly $30

billion a year, it's not quite

clear why. Under the existing

system employer and employee

contributions are taxed at 15%.

Investment income within a fund

is taxed at the same

concessional rate and benefits

received after age 60 are tax

free. The Greens argue those concessions overwhelmingly

favour the rich and the

Australia Institute's Richard

Denniss says Treasury's own

figures of taxing superannuation is

regressive. 30% of the tax

concessions are going to the

wealthiest 5% of income earns.

So we've got a system that's

delivering around $10 billion a

year to the wealthiest 5% of

Australians and virtually

nothing to the poorest third of

the population. However, David

Knox from the Financial

advisory term Mercer says

that's only part of the

picture. If you look at super

tax concessions alone they

favour the high income earner.

But the system is built odge this 3 pillar system in

Australia, the pension, the

super guarantee compulsory

contribution and. It's an

equity outcome. Mercer has

modelled ow much government

support is given to the typical

worker through superannuation concessions or the aged

pension. It's found total

amount of government support

for each worker's retirement is

similar across all income levels. For an individual over

their lifetime the government support is through the tax

concessions or the aged pension

or a combination of both and

that's pretty level across all

income streams. It's in the

order of about $400,000 for an

individual across their working

career and their post pension age. The Minister for

Superannuation, Bill Shorten,

says the reforms announced this

week will help lower income

earners but the industry

remains wary of further changes

to the system. But we've got to

make sure the tax rules don't

change every budget because

people are saying I'm

contributing this year or next

year, I'm contributing for 20,

30 or 40 years I want to know

that benefit is going to be

there with the appropriate

taxation support. So far the

Government has rejected the

Greens' calls to change tax

concessions on super. But with Wayne Swan under pressure to

deliver a budget surplus next

year that's already looking

wafer thin, the temptation to

raid the super pot might become

hard to resist. In other

stories making business news,

there's change at the top a at

Vodafone Hutchison Bill Morrow

is taking over after a rocky 18 months for the

company. Declining sales and

network problems have hit the

company's balance sheet. There

are signs home buyers are

feeling more confident as

mortgage stress eases. A new

industry survey has found 40%

believe now is a good time to

buy. And high prices are seen

as less of a hurdle with only

7% of first home buyers saying

the market is too

expensive. And Australia is the

5th best place in the world to do business according to

Bloomberg. Factors taken into

account were the cost of

setting up and hiring staff,

corruption and tax rates. Hong

Kong were the corporate tax

rate of 16.5% is the best

destination for business

followed by the Netherlands,

the US and the UK. Before we

go a look at what's making

business news in overseas newspapers. The 'Wall Street

Journal' says Mitt Romney

racked up a decisive victory in

the Illinois primary shoring up

his claim he will take the Republican presidential

nomination and dealing another

blow to Rick Santorum's bid to

block him. London's 'Financial

Times' says the threat of a

trade war won't make the

European Union back down on

climate change. The EU's

climate chief says she rejects

pressure by foreign governments

to drop plans to charge

airlines for carbon

emissions. And Britain's 'Daily

Telegraph' says Eurozone hard

liner the Netherlands has the

same problems as Italy and

Spain and is already on track

to break Europe's 3-week-old

fiscal pact. And that's 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

ABC 1. I'm Andrew Robertson. Ticky will be back tomorrow. Thanks for watching. Goodnight. Closed Captions by

CSI Do ghosts exist? When people experience a haunting, of the dead, or something else? are they really encountering spirits Arggh! Rarrr! TV is haunted by ghost shows. to make a popular ghost show All you need and an ability to overact. is a night vision camera Yes, I can! MAN: Can you talk to us?

1612! What date is this? But are ghosts real? Northern Scotland To find out, I've come to to investigate one of their most haunted castles, Castle Menzies. frightening type of ghosts - It's home to one of the most an angry Scottish one. about, objects go missing Apparently furniture has been thrown in the middle of the night. and people feel touched Ghosts or Aussie backpackers? I'm here to find out, of professional ghost hunters. so I've enlisted an expert team you've got here. This is like a James Bond operation involved, as you can see. Yeah, there's quite a lot of tech detection equipment, They've all sorts of complicated and laser beams. with cool flashing lights, sensors to understand was Iain's accent. But the most complex thing And the most important one from Officeworks. just looked like something phenomenon recorder. Electronic voice a dictation machine. Basically it's just the voices of ghosts. So you're saying you're recording Yes. come in handy. OK, that would definitely It is pretty awesome to hear, hear this, maybe you'll be turned. and if you're a sceptic, when you Alright. But it's not all high-tech. their spirit medium. They also had Maryann, walking into a cold area. Sometimes you feel as if you're walking into, um, jelly. Sometimes it feels as if you're into jelly straightaway. And she walked Oh! (Slurred speech) Yeah. Oh. I think she just... What? Did you see something? It was just our anaemic cameraman. But it wasn't a ghost.