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(generated from captions) Live. This Program Is Captioned Good morning. Welcome Business Today Good morning. Welcome to Business Today for Australia

Network. Coming up on the program - we'll take a look the latest US employment program - we'll take a look at figure. Jobs pressure. The on President Obama figure. Jobs pressure. The heat

kick-start on President Obama to

launch a new round of mining

The new deals. And savings schedule.

looking to save. Those stories shortly. First a look at

markets this morning. I'm Saly from CommSec. course that there were jobs created in the US last S that likely to flow Australian futures pointing to to trading New Delhi? The

a drop of about 1.3% when a drop of about 1.3% when we

open or about 60 points on the

jobs report coming US on Friday really weaker than expected and it did expected and it did rattle

Reporting global investor sentiment.

are taking our lead once again from global share markets. from global share markets. The good reporting season gave quite

outlooks from the top 200

companies that reported. Not markets on the commodities front. We saw oil down front. We saw oil down around

2.5% on Friday and base 2.5% on Friday and base metal

prices also under pressure. Our key commodity players not

expected to get a support today. It is a

busy week. We have the September busy week. We have the RBA

change expected to the official September meeting tomorrow. No

cash rate of 4.75%. Also this

week we have the start of quarter which means week we have the start of the

of economic data. quarter which means a barrage

quarter economic coming out on Wednesday. tipping growth of about .9 of

1% in the quarter which is quite modest, considering the March quarter quite modest, considering that

contraction of

Friday, the key jobs numbers for August coming out, only a modest lift of about 12,000 jobs expected there, but a busy jobs expected there, but a very not busy week. It's unfortunately busy week. It's unfortunately not looking like a very positive start for today. We positive start for local stocks taking in today. We saw some profit hit over taking in Japan. Typhoon Tala

taking in Japan. Typhoon Tala taking in Japan. Typhoon Tala

hit over the weekend. Do you

think there will be any

disruption to markets as a

result of that? That's probably

not going to weigh too much on

the Japanese share market. We start in the Asian region are expecting

though. The Nikkei futures down

about 110 points at the moment. That's mainly going to be again

the flow-on effect coming

through from these weaker than expected jobs numbers out of

the US. Where this typhoon hit

was a very low population area

but there is expected to be

some disruption to transport.

It was a major transport route

so thousands were evacuated. Our movement of supply of goods

will be impacted especially

with the land slides and flooding across the flooding across the coastal

roads but we would expect most

of the investor sentiment or

direction to really come the US today. It wasn't only direction to really come from

the dismal jobs report that

contributed to the slide on

Wall Street? Not at all. We

also saw some big weakness in also saw some big weakness in

the banking sector. That was on

rumours that the US federal

housing authority was gearing up to files lawsuits against

major banks over the deals to led to the global financial

crisis in 2008. It was a bit crisis in 2008. It was a bit of

a dismal end to what's been a

bit of a bad week for investors

week consumer confidence in the US. We also had last

rattled, consumer confidence rattled, consumer confidence at its lowest level since August 2009 then this jobs report that the markets had been waiting

for and it was fla. We saw

unemployment remain steady at

9.1% but we were expecting a

jobs lift of about 50 to in the month of August.

Instead, no job gains, Instead, no job gains, so

ending 10 months of gainls. We saw US and European markets

fall very sharply on this data. Again, fear about the overall

health of the US economy weighing on investor

sentiment. There was a flight

to gold? Yes. Gold once again rallying buying. We saw investors bail out

out of some commodities. closed just under 1877 US an

by ounce. We have seen gold rise

by 4.5% over the course of last

week. So recouping the 3% loss

it saw in the previous week. We

saw oil prices a little weaker on Friday, down about 2.5%.

concern Those jobs numbers raising

concern beings future oil

demand. And also investors

watching the progress of

tropical storm Lee near New

Orleans. Over the course week, the oil price up by about

1.3% but certainly gold is

where a lot of investors are

putting their cash at the moment. What are in currencies? We saw the

greenback rallying on safe

haven buying. That saw the euro

and commodity currencies really fall hashed against the

dollar lost more than a cent greenback. The Australian

about the Greensback. It was holding about 107.# during above 106 US cents. Still holding very strongly against

the euro. But the Japanese yen

has traded in a very tight range against the greenback.

It's just under 77 yen per US

dollar. Thank you very much. Now a look at what's happening in

in currencies and commodities.

Let's go to the US where fears of a double-dip fears of a double-dip recession have increased after those

disappointing jobs figures for the year. Unemployment in

America is just over 9%, 14

million people are now out of work. Half the month, jobs were created for the first time

time since 1945. Obama is the

first President since the Second World War to witness a

month where overall no month where overall no new jobs

were created. No presence has ever been re-elected with

unemployment so high. 14

million Americans are now

looking for work N August,

private companies did private companies did create 17,000 new jobs, but that was wiped out by the public wiped out by the public sector getting rid of exactly the same

number of people. The zero jobs growth in August may

be a statistical freak but it's

also a symbol of an economy

that feels stalled. Some fear the economy is teetering on the edge of another recession. It indicates that the attempts to turn the economy around have failed.

failed. The US economy is

quickly stalling. May be in a

recession already. recession already. Unemployment was above 10% in

2009. Since then, it has come

down. But the rate has hovered

around 9% all of this year. And

the White House predicts it

will stay that will stay that high next year too. The President too. The President will unveil

a new plan to create jobs. The Republicans who control the

House are likely to kill it. If

that's the case where they don't support his President has made clear he

will go out to the public and

take that message to them

directly. Job centress are

filled with people looking for work. There simply aren't

enough vacancies. The left say

now is the moment for the

President to do something

really radical. By calling a joint session of Congress that's unusual. Basically he something I will have something

big. If he doesn't big. If he doesn't have something that sounds big something that sounds big and

at least plausible, he walks

away with a lot of egg on away with a lot of egg on his face. The President is in charge, the purpose of his big speech is as much political as economic. Ahead of the economic. Ahead of the 2012

election he is trying to frame the Republicans

the Republicans in Congress as the ones who've the ones who've really blocked America's recovery. To discuss

the impact of the jobs figures

and the implications for the US

economy I spoke earlier to

Michael Knox the chief economist with RBS. economist with RBS. Many thanks

for your time. These would not

be the figures they were

looking for in the US? No.

There was no employment created

in the month of August. The

market has reacted to that in a

very bad way. The S & P 500 is

down 30 points. Bond yields

have fallen down to slightly

below 2% for the 10 year that's equal to the lowest that

they have been for the last

three weeks. But if I look more

closely at the number, it may

not be as bad as it looks. Sure

there were no jobs created in this August but if you look at August last year, the US economy actually lost 59,000

jobs. To me, it may be a new

seasonality. What we're talking

about is the seasonally adjusted numbers. Course we have very soft construction in the US and construction usually happens in US in happens in US in the summer time. August is the middle of their summer. Low construction on the seasonally adjusted

basis is the numbers look

pretty soft. There is another way of way of doing the seasonal

adjustment that is to look at

the year-on-year changes in the absolute numbers of people

employed. If we do it that way

we see that the total number of

people employed in the United States is up 1.3% in the year to

to August. That's around about

the same as population growth.

It's the strongest figure by a small margin small margin for the last four months. So there are ways of

looking at this data which make

it look better than the original shock bad number. Why

do you think that the market

certainly reacted so badly? Oh

well, what happens is they

expect a number which I think

was 60,000. They're not - I

mean I've had three days to

look at the numbers since it

came out. They're reacting to

it instantaneously and selling

it down. Buff of course, this plays upon the fears in the US that the US is going into recession. We don't think that

the US is going into recession.

But people follow fear But people follow fear more quickly than they rationality. The White House

in its half yearly review said in fact they see growth slowing

but they don't believe it will

go into a double-dip recession.

Is that a wishful thinking, or that backs your thoughts that it is not going to go backwards and start going

growth? We've reduced our own

growth for the US economy to

1.6% for the full year . That's

lower than the 10 year average. The 10 year average is The 10 year average is 2.25%.

To have a recession you have to have negative growth. right around the world, we're

seeing it in Australia, in

Europe, inest US, this reluctance by consumers spend. If consumers aren't spending, businesses are cutting

cutting back, jobs won't be

puts on. I guess that malaise continues? Everybody talks about consumption because it's

a large part of the economy. What actually drives recoveries is business

business profits when they recover generate together with

the discount rate investment. And when businesses invest,

what they do is they buy new work stations or they buy trucks. When they say those new

work stations or

those new work stations or buy those new trucks, they then hire people hire people to work in those work stations or work stations or drive those

trucks. Really it's business

investment that recovers first,

then employment recovers, then personal income recovers and consumption recovers pretty much further down the track.

It's the last thing to recover when you're coming when you're coming out of a deep recession like this is.

It's difficult. The other worrying signs we saw worrying signs we saw coming out of Asia which has been driving so many particularly China is a

significant slowing in output.

So China, Korea, Japan. How do

you read that? China needed to

slow down. We think it will

grow slightly less than 9% this

year. They had a domestic property boom which they set

off as their own antidote to

the GFC in China. They thought

that they were going to recession. For a number of years. Five years at least.

Because of the US - what

Americans call the great

recession. But the US growth

recovered to trend relatively

quickly. What that meant was

the Chinese exports recovered to the United States. Then he

had two booms at the one time.

They had the domestic property

boom that they set off by end

making lending easier in China then they had an export boom. That generated a surge

inflation up to 5%. They

decided they had to tighten

monetary policy to reduce the property boom. property boom. They've been doing that. The objective of that

that really has been to make sure inflation doesn't blow out any more. It looks like they've

just got to the stage of

stopping the increases in

inflation. As soon as they've done that when you get into next year they will be using monetary policy again, demand

will be increasing. Remember the two export to China are

metallurgical coal and iron ore

and in recent month we've seen

them reach the highest prices

them reach the highest prices ever so it's not really, doesn't seem to be affecting

Australia's exports at this

Australia's exports at this stage. Thanks so stage. Thanks so much for joining us. Thank you.

Leading business and finance

experts met in Italy over the

weekend for the annual forum

and delivered a down beat assessment

of a renewed recession due to a

combination of sluggish

developed economies and financial disarray in the Eurozone. On top of that,

volatile markets impacted by the downgrading of the the downgrading of the US debt and the aftermath of and the aftermath of the

Japanese tsunami have all added to the gloomy outlook. My view

is that there is more than a

50% probability that by next

year we'll have a recession in many of the many of the advance economies. At the conference the head of

Central Bank warned Italy it must stick to must stick to its austerity

plan with a $2.6 trillion debt

mountain. However he declined to comment on the ECB's

bond-buying plans at this stage. The takeover activity in

the Australian resources sector

It would be a It would be a real pity if the government used the High Court and Solicitor-General as an excuse

to cave in to the Greens, to

cave in to the left generally.

I think we do need effective

border protection I think that offshore

processing, third country

processing is an important part

of effective border protection. As I said yesterday, I want to make it clear that the coalition is prepared

prepared to work constructively

with the government to put beyond legal doubt offshore

third country processing. I

think that if the Prime

Minister is serious about third country processing, as she has been assuring people that she is for months

now, she will take up this

offer. The ball is in the Prime Minister's court. The

coalition is serious about trying to give the Government

some options, some serious policy. At the moment there policy. At the moment there is

none and I think that it is a

very bad place for our country

to be in where we have a

government with just no answers

whatsoever to the problem of border protection. Mr Abbott,

are you offering here to rewrite

rewrite section rewrite section 198A which Phillip Ruddock at the time said enshrined our obligations

under the convention? We can't save the country from opposition. You you've got the

numbers though. It is really up

to the government to come to us with a proposal. The point I'm

making is we want to be

constructive. If the

government believes that

Solicitor-General and the High Court have between them Court have between them made offshore processing impossible, we want to give them the option

of putting beyond legal doubt offshore third country processing. Does that extend to processing in Malaysia or would you only make you only make this available to Nauru and Manus Island? I

think that the Malaysia deal

was always a bad deal. It was a very bad deal. As I said, I'm not in the business of

ruling things in or out. I'm saying we want to be constructive. We are prepared

to work with the Government, to work with work with the government to ensure that there are no legal

impediments to offshore third country processing and we don't

want to give the Prime Minister

any excuse to cave in to the

Greens and the left here and completely abandon offshore processing. Can you change processing. Can you change the Migration Act so that it Migration Act so that it is

Nauru specific or if you Nauru specific or if you make

any changes, wouldn't Malaysia be included at the more acceptable after those changes? As I said, I As I said, I am trying to make it easier for the Government.

I'm trying to give the

Government the option of

resurrecting something from the

ruins of its border protection

policy. Now, I don't want to

be too prescriptive here. I'm

trying to make it easier for

the Prime Minister to go down the the path of third country processing that she has processing that she has said for so long now she wants to go

down. I am trying to give her

the chance to give this country a border protection policy.

The ball is in her court. I hope she'll return it. Mr

Abbott, you said the previous Coalition policy was Coalition policy was an

essential part of the mix. Why

don't you make that a condition of support for offshore

processing this time given you

believe all those elements must

exist at once? I also think

that the Government should

retain the option of turning

boats around. I don't boats around. I don't expect that this Government will want

to exercise any such option.

Look, I'm not saying that the Government has to embrace the entirety of the Coalition's

policy. I'm saying that the Government has no Government has no policy whatsoever at the moment. whatsoever at the moment. I think that's bad for our country. I think that our country should have the best border protection policy border protection policy that

the government of the day

thinks that it needs. thinks that it needs. I'm prepared to work constructively

to give the government... To

restore to the government the option of third country

offshore processing which it

says the High Court and the Solicitor-General have denied to

ruined, if you like,

deterrent effect of Nauru? By

the conditions it now imposes

happy it merely made Nauru happy it merely made Nauru a staging post for asylum seekers to eventually land in

Australia? Look, this is just

dead wrong, this idea that

Nauru was just a staging post.

If you look at what happened in

Nauru up the former Government,

some 60% of the people who went

to Nauru never came to

Australia. Half of those people went original country and half of

them went to a third country.

It is just wrong to

characterise Nauru in that

way. That was then. What about now?

now? . There's no reason now? . There's no reason why

it can't be at least as effective now as it was then. Will the court Last

question. Will the court question. Will the court have

to again rule on the different interpretations that you and

the government have made? How

else can you work it else can you work it out?

Look, whether the court has to

rule again depends on whether

people bring an action. people bring an action. What I'm saying to I'm saying to the government is

that I am prepared to work

constructively with the Government to put third country

offshore processing beyond

legal doubt. I think this is

my attempt to be as

constructive as I possibly can

be in the very difficult circumstances that the Government finds itself in and, frankly, the difficult

circumstances that our country

finds itself in. We now have finds itself in. We now have a

government with protection policy whatsoever.

I'm giving them the option of resurrecting elements of their former policy and I think they

should take it. Thank

you've just joined us, here on ABC News 24, on a lovely

Monday, we've been listening

there to Tony Abbott who is in Canberra and to discuss what he

has been saying we're joined by political reporter Latika

Bourke in Canberra. We heard

Tony Abbott saying that we want

to be constructive, no legal

I'm pedestrian meants to offshore exactly is he saying that he's prepared to

prepared to allow changes to the Migration Act? Good

morning, Jane. Yes, that's

right. The opposition right. The opposition says at

the moment there is no processing policy for asylum

seekers who arrive in Australia

by boat. The Opposition says that the Government's Malaysia Solution, which is now a non-solution thanks to the High

Court ruling last week, is in a ruin and something needs to ruin and something needs to be

done. It was very interesting there listening to the opposition leader. He's saying that he Minister, Julia Gillard, a

chance to salvage some of the elements of an asylum seeker

policy. Both parties agree

that they do want to both stop

the boats. That's unlike the

Greens who say that boats

should be welcomed and there should be a community detention and processing for and processing for asylum seekers here in Australia. It

is very clear that the

Government does indeed need

Tony Abbott's help, Jane, if it

does want to amend the

Migration Act. That press questions than it potentially

answered. What's not clear is

whether the Opposition will

support the Government to go

further in the Act and try and override what the High override what the High Court ruled last week about ruled last week about the

Malaysia deal. The Government might try and seek some extra

powers. That would make it okay for Government to send

asylum seekers to a country where the human rights cannot

be guaranteed. Tony Abbott wasn't clear on that. He did say, however, that the government doesn't have to adopt policies including temporary

protection visas which is something that Labor something that Labor quickly shelved once it got into

office, and also turning the

boats back, which Labor boats back, which Labor says is

simply a simplistic slogan. A news poll out today on asylum

seeker policy shows voters are unhappy with the unhappy with the Government's performance on this issue. Yes,

that's right, Jane. I don't

think you do need an official

survey to tell you that Government's really hit the

depths of despair on this

policy issue. It is always been been a vexed one for Labor,

much more difficult for it to

tackle than the coalition which

has always prided itself on has always prided itself on a

tougher and harsher stance.

Labor is really split.

are some in the left who want a

more humanitarian approach.

They want offshore processing

and do not agree that Labor should in any respect should in any respect consider returning to a Pacific style

solution that it rallied against when John Howard

introduced it during introduced it during his prime-ministership. There are

some on right in labour that think that this troublesome issue for Government it is Government it is better adopting some of the right's

policies on this and trying to

make the issue neutral and go

away from the the headlines. The the headlines. The opposition

leader there would no doubt

look at this survey today showing 78% of showing 78% of Australians think Labor is handling think Labor is handling this

issue very poorly, Jane, and maybe

maybe that's the reason for his very emphatic language there,

that he's the one giving the

Prime Minister the chance, suggesting that he has more control over this opposition than the Government does from within the long. He

he's just be helpful. Finally on another issue the government could be facing a High

challenge on the question of plain packaging for cigarettes . Yes. One interest . Yes. One interest group watching very closely last

week's High Court decision was

British American tobacco here

in Australia. That group says

it is now going to go to it is now going to go to the

High Court today and seek the Federal Government's legal

advice for its plain packaging cigarette companies oppose this.

this. They've tried to seek the legal advice given to the Health Minister, Nicola Roxon, previously and been

unsuccessful. They say that if the Solicitor-General could get

this wrong on the question of

the Malaysia Solution, just maybe they've got it wrong on

plain packaging too. Latika

Bourke in Canberra, many thanks for your time today. Thank you, for your time today. Thank you, Jane. A popular West Jane. A popular West Australian

surf spot is likely to remain

closed for days as search for a shark responsible

for a fatal attack yesterday.

A 21-year-old man was A 21-year-old man was body boarding with boarding with friends at Bunker

Bay about 300 kilometres south of Perth when he

He was bitten on the lower He was bitten on the lower half

of his body and he died at the

scene. Two women remain in a critical condition after critical condition after being is seriously burnt in a

bushfire during an ultra

marathon in the Kimberley. On Friday afternoon, tore through El Questro

Wilderness Park and four

gorge. 24-year-old Turia Pitt and 35-year-old Kate Sanderson

suffered burns to about 80% of their bodies. They their bodies. They were rushed to Darwin Hospital before being

flown to specialist burns units

in Sydney and Melbourne. Two

men aged 56 and 44 are also

being treated in Perth with

burns to about 20% of their

bodies. One of the men,

Michael Hull, says the group

tried to run away from the blaze. I had a quick choice of being a being a human fireball and burning and that was the end,

or what we did instantaneously stop and ran back in stop and ran back in through

the will wall of flame. We

knew that the

high, on the other side of it,

there was nothing left to burn.

10 minutes either way would

have been safe but we were just in the wrong place when the

fire decided to come up the gorge and attack. The NSW Education Department will go to court today in a bid to stop a planned statewide 24 hour teacher's strike. Teachers plan to walkout of plan to walkout of the

classroom on Thursday over the

State Government's plans to cap public sector wages. The Education Department the industrial relations

commission to consider stopping

the strike. The State Government says pay

negotiations haven't even

started. Sydney ferry services

will be hit down for four hours

today as staff meet to today as staff meet to discuss how new franchising plans will

affect them. Ferries will stop

running between 10 am and 2pm

when staff meet the NSW Government to

proposed employment changes.

Dominique Strauss-Kahn has

returned to Paris two weeks

after being cleared of rape

charges by judges in New York. Attention has now turned to

whether the former head of the

International Monetary Fund

might re-enter the French presidential elections due in

eight months. Europe correspondent Emma Alberici reports. When he was last in

Paris five months ago,

Dominique Strauss-Kahn was Dominique Strauss-Kahn was one

of the most