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ABC News 24: Business Today -

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Good morning. Welcome to

Business Today. Coming up on

the program - UK austerity

protests as Britain tells

Europe to get its house in order. Mass arrests order. Mass arrests in Australian wasn't street demonstrations. ranks. Dealing with the rise of

the rogue trader. We'll have

more on what will happen in trade today in

I'm joined now by I'm joined now by Juliette

Saly from CommSec. How will

regional markets regional markets trade

today? It's looking like a

lower start around the region after the weak finish on Friday night. The futures index

actually pointing to a 2% actually pointing to a 2% fall on the Australian on the Australian share market

or a drop of about 80 points

today. We don't think the fuels

will be that severe because a

lot of the selling occurring in

end of the month and the end of the quarter. We should be a bit more insulated

more insulated here. The Nikkei futures pointing to a fall bf 80 points. Not too much direction coming through direction coming through from

Asian regions today because China is closed all week. Investors in the US Investors in the US took

profits on Friday. Will that trend continue? Unfortunately

the same issues remain and that is we're still seeing a is we're still seeing a lot of concern about Europe. We want a

lot of stability and clarity lot of stability and clarity to

come through from US and European leaders European leaders and give a bit

of direction for investors. September was a tough month for investors. We saw the worst

quarterly performance since the

start of 2009. Europe was the

lower at the end of last week.

What should we expect to see

there this week? In Europe the focus will be on whether or not the 17 members of the EU ratify

the European stability fund

which is being seen as Greece's

last lifeline. On Thursday also

we have the European Central Bank discussing latest interest rate settings. It rate settings. It is considered unlikely that they will

rate s. This

rate s. This could be seen as another excuse to bail out of the

the markets. It has been the markets. It has been a tough month for European London. The FTSE index has London. The FTSE index has had its biggest quarterly fall since 2002. We've since 2002. We've seen September be another month for Europe as well. Gold

and oil have gone in different directions. Why was that? We

saw a bit of pressure on the

oil price on Friday, down by

about 3% to ball below US $80 a

barrel. That was in response to

a bit of weak data out of the

both the US and China on Friday

and also we saw some more

pressure coming through on the

base metals market. base metals market. Over the course of the week the oil price was up by almost have seen the gold price hold fairly steady over the course

of the weekend. It closed in

New York on Friday only up by

about half of 1%. about half of 1%. Ever over the

month. September, a big fall for the price of gold. It was

down by about 11%. It looked

strong over the quarter with

gold still very much a safe

haven. Gold was up 8% on the

September quarter. Just September quarter. Just before we go, economic data what shall

we took out for? Here in

Australia it's all about the RBA's interest coming through tomorrow. No

change respected to the official cash rate of 47.5%.

The debate has turned to

whether we could see a rate

cut. We have building cut. We have building approvals

, retail trade for August and tourist arrivals in departures.

In the US it's all about the

key jobs key jobs report coming through

on Friday and we also have US

Federal Reserve Chairman Ben Bernanke testifying before the joint economic committee on Tuesday.

despite another public holiday in New South Wales, the ACT and

South Australia here today.

Thanks for joining us. Thanks. Now a Now a closer look at what's happening with currencies happening with currencies and commodities.

Tens of thousands of people

have taken to the streets in northern England pro testing against austerity measures.

Prime Minister David Cameron

has denied that the government is simply sitting back in

response to the global economic

woes. But Mr Cameron has had

some advice for Europe's policy

makers. He says they must take

quick and deal with the debt crisis. Welcome said the sign but it

wasn't quite the welcome the

Tories wanted. Hundreds of conference as thousands

gathered outside David

Cameron's hotel to tell him

that he is wrong to cut public

spending. The Prime Minister said he wouldn't deviate from

his plan to cut the deficit. He

accept ed rising prices were

making life difficult for

people but he rejected tax cuts to to stimulate the economy. Those

who argue a few more billion

now would make all the difference, I would make this

point to them: over the next

four years we will

over ?3 trillion the government into the economy. Is it really

a good risk to spend a few more

billion now and potentially

billion now and potentially put

at risk the low interest rates that are so key to your

economic revival? Into for the

35,000 union members and others outside the conference this wasn't enough. They wanted

fewer cuts to their pensions

and public services and more

spending to help stimulate the

economy. Why are you here? With the first generation, my generation particularly for

decades that's facing life

worse on our parents had

it. There is an attack being

made an working-class people for an economic crisis we

haven't caused. And the

message from inside the

conference was that the

government just couldn't leave

so much debt to the so much debt to the next

generation. I say to those who are protesting out there today,

the money you were promised by the last Labour Government

never existed. It was never there. And we have been left

with the task of telling you that truth. There was another

truth for this conference. Mr

Cameron said there would be no referendum on Britain's EU membership. There are some

powers I'd quite like back from

Europe. There may be future

opportunities to give opportunities to give that back. But the problem for Europe right now is dealing

with the Eurozone problem. It could be a long week. Meanwhile, mass pro tests in Portugal's capital against austerity

measures there. Hundreds of

workers blocked the streets

angry about the declining

living standards blamed on the country's massive bail-out and

hundreds more rallied in the country's second biggest city

Porto in protests organised Porto in protests organised by

Portugal's largest union. And there's more anger in Greece as the government there announced it will push ahead with the

sacking of an extra 30,000

civil servants. It's part of a reform reform package demanded by the EU and the International

Monetary Fund in return for a further bail-out N some rare good

good news, Greece has signed a $600 million goldmining $600 million goldmining deal

with Qatar on hopes it can wealth creation in the debt

laden economy. And across the Atlantic, hundreds of people have been arrested demonstrating against demonstrating against corporate greed. The Occupy Wall Street

protesters have been camping in the city's fj district for past two weeks. After several

hours of stand-off the police

moved in, arresting hundreds of

demonstrators blocking traffic

on New York's Brooklyn bridge.

America's Mecca of capitalism

is being assailed by activists

fed up with the financial institutions they blame for the say are getting off scot-free. People are realising

that we are all one and it is our governments that work

against us to keep everyone

down. For the last number of weeks, a group of

organised protesters known as Occupied Wall Street have

camped out in New York's financial district. They're

angry about the bank bail-out

in 2008, but also, wider issues

of perceived but seemed to be growing. Corrupt! But growing. Corrupt! But smaller

campaigns are sprouting in other cities. It's too soon say whether this is the beginnings of

beginnings of mass rallies beginnings of mass rallies like

those seen in parts of Europe

but that is certainly the hope

of those taking to the street, protesting an economic system

they are convinced has they are convinced has failed.

It's been a rocky ride It's been a rocky ride for commodities over last month. Copper, nickel, zin and even

gold have tumbled steel

production is softening

China. The bulls may have given

way to the bears. What we've seen obviously this year seen obviously this year has been a couple of severe sell-offs. We see more a

technical and position driven sell-off but this time it does

seem to be more

driven by downgrades in economic forecasts like we economic forecasts like we have

done here at Citi. To I think

people are obviously

positioning for weaker growth

and as a consequence are starting to sell their long

positions that they had for

this year. But for the moment we haven't really seen a lot of

investors take a particularly

bearish sort of position just

yet but I think once things settle that economic growth is going

to be significantly low then that will start to that will start to flow through

to the commodity is space as

well. The industrial metals are

much more exposed to the

developed economies like Europe and the US than, say, the bulk

commodities or even energy. So

can differ greatly.

Particularly for us in

Australia, iron ore and coal are very heavily exposed to emerging emerging markets. We'd actually

see that hold up relatively

well if China did grow at plus

8%. The metals

suffer under a weaker

suffer under a weaker European and US outlook. We have as a

consequence a consequence a relatively

bearish views on those in the shorter term. In stories making Kodak says it has no intention

of filing for bankruptcy. The

comments by the struggling

American camera group American camera group came

before it confirmed it had

hired a law firm well known for cases. Shares in the firm fell

54% on Friday as fears persist

about its future. It has not

made a profit since 2007. Lawyers for Samsung have offered a deal on a

dispute with Apple that could see the

its galaxy tab 10.1 in

Australia next week. Apple Australia next week. Apple has

brought several cases against

Samsung over what it says are copies of the copies of the iPad. The global downturn has hit advertising's

bottom line. Spending is bottom line. Spending is on the

slide in around half of the

most important markets in the second quarter as second quarter as economic concerns slowed sales. Asian

countries were the one right

spot, rising nearly 10%.

As Australian businesses

look to growth and opportunity

many made the mistake of looking at the region as a homogeneous region. To look

more closely I spoke to Ki Wong. Welcome to the

program. Thank you, good to be

here. Now, do many businesses

look at Asia as a area rather than distinguishing

each individual country when

they're looking to do business

there? I think that it's a very

good point. Generally, when

people talk about Asia, they do

tend to categorise it as a

homogeneous geographic area.

But the one thing you need to

know when you talk about Asia,

there is no Asia. larger countries like China

there are regions within the

country as well and they're all

different so I think the

understanding Asia is to know

there is no Asia, but they're different countries and different countries and all with different cultural,

political and social

differences, even if they are

just across the border. I will

give you an example. For

example, Thailand and Malaysia

are very different. And whilst

Malaysia and Singapore used to be part of the same country they're now very different

countries, just crossing the border from one country to the

next. In your view because it

is quite a vast region and as

you said yourself there's many different nations. They have their own have their own idiosyncrasies and

and differences. How do

business people grasp onto

those in order to understand them

them when they are actually

dealing with their Asian

counterparts? I think the first first thing people need to know

is why they're going to Asia.

Once they've identified which country suits the country suits the business, then obviously they need to try

and get connections into those countries by establishing

partnerships in the local country by having expeditions

of their own people - unfortunately there's unfortunately there's no shortcut to success here and

that's getting the of the strategy of the business

before even embarking on

establishing a base there. They

suffer from the tyranny of

assistance I guess. assistance I guess. Physically

we are an island that is

physically far from many, many

physically far from many, many countries.

moment there is no easy way of establishing an establishing an understanding

of a particular country in

Asia, other than to Asia, other than to as we used

to say, you do the homework and

do the hard yards. For every

different business they need to

understand where they want to

position their position their offerings, whether it's product or services, and then being able to identify a to identify a particular country or a number should be targeting their

offerings to. Do you find that there are a few businesses there are a few businesses that

see this massive potential for

growth and they want to jump in before they've done their

homework and sort of short-cut

that process? Yeah, so I call

it the problem of being seduced by the charm of I guess the emerging economies in Asia. Particularly now when people

talk about Asia talk about Asia there is almost an automatic association an automatic association with

China or India. There are many

other countries in Asia, traditionally Japan is traditionally Japan is still a very big market and still worth

while pursuing if you have while pursuing if you have the right offerings to that market. So I concur with our

proposition that the seduction

of Asia is very strong. And almost to some extent there are companies who have companies who have bought discussions about discussions about why are we not yet in almost sometimes a trigger at

the most senior level to say we

need to go into Asia and I think sometimes people make the mistake of saying mistake of saying therefore let's jump in and let's let's jump in and let's get started and let's get

think Asia is a very geographic region. One has to

be very careful about how you enter into Asia, particularly

when companies have no prior

experience to that. The model that Australian businesses have

always run on is more sin none news with the western-style economy of economy of governance, of forming relationship and

putting agreements in place and

transacting based on agreements. In Asia the agreements. In Asia the model

works very differently. A lot

long-established relationships.

So jumping in and flying in,

flying out, putting together an agreement based on a legal

document may not create the

same success that one same success that one would expect if you were to transact

with companies in the US or Europe. You can --

you consult a lot of businesses

throughout the region. In your

view, what are Australian businesses getting right I would say about Australia

getting right is about the fact getting right is about the fact that we are close to that we are close to this region. I think geographic chee, we have chee, we have a long

association with many countries

here. One should not forget

that Australia has been a

destination for many overseas

students over decades. That presents ourselves in presents ourselves in a strategic advantage that we

have a long history of

with people who have been

educated in Australia. And are now business and now business and government

leaders in their home country.

That alumni is definitely an advantage for advantage for Australian

businesses and government to

establish strong links quite

easily. And so I think a lot of businesses are now starting to realise the value of that network. And I can see a lot businesses establish ing links

to look at new opportunities.

And so I think that there's a lot of savviness, certainly of

late, in understand ing some of

the gaps that they need to fill and there is sufficient

expertise, both in Australia

and with the expert networks in Asia

Asia to be able to assist that to give

there. Thanks for joining us. You're welcome.

The rogue trader who swindled the giant Swiss

investment bank UBS out of $2.2

billion has left his former employer with the difficult job of restoring its tattered

reputation. The scandal left

many asking how things can get

so out of hand and are the

banks doing enough

their risk? It's the walk of

shame for a select few who've blown billions of dollars and

brought financial brought financial giants to

their knees. London-based

Quaker Adaboli is the latest to

join the hall of infam lee, accused of losing $2.2

billion. For large items such as this,

that is preventable. It's up to

the individual organisation and the buck stops with board and

with management. Personally I

think we have a situation where

we give some young people who

are highly motivated control

over a large amount of money

and say go to make money for

us. The more you make the more

we'll reward you. That provides a set

a set of incentives where some

people may fall into the trap of of doing unauthorised activities. While this man is accused of racking up

eye-popping losses he is still

far from the world's worst

rogue trader. That rests with

Jerome Carviel, who lost $7

billion while working at

Societe Generale. Nick Lee son lost Barings Bank in the early

90s We feed to go back to the

old age of at least old age of at least manually cross-check

things. This came out very

distinctly in the Societe Generale scandal in France,

Generale scandal in France, that manual checking absent. Australia's own rogue trading scandal was modest by

comparison. In 2004, four foreign currency foreign currency dealers lost the National Australia Bank

$360 million. I would suggest it's fairly unlikely.

That assessment was as

misguided as the group's

trading strategies and all four of

of the NAB's rogue traders were eventually sentenced to jail terms.

terms. It also cost the NAB's

Chairman and CEO their jobs and led to a bitter And while it inflicted long-lasting share price

damage, it never came close to

breaking the bank. In the

context of overall returns for shareholders or shareholders or depositor safety, it's not a big issue.

The bigger issue is the one of

reputation for the bank. One starts to ask questions about

what is happening in terms of

their various trading and

investment strategies. The EU is now considering financial transactions which some argue may

some argue may also help reduce the risk of unauthorised trading. But that may be

wishful thinking. Rogue trading has been happening for

centuries and likely to

continue frightening banks continue frightening banks and their stakeholders from time to time, no matter what safeguards are put in place. Denmark has become the Denmark has become the first

country in the world to true a

fat tax. Prices went up fat tax. Prices went up this

weekend courtesy of a tax nearly $3 a kilo on saturated

fats. Butter, milk, cheese,

meat, oil and processed food

with more than

fat will all be taxed. It's put

the price of a pack of butter

up by 50 c. The fat tax is designed to limit obesity and

heart disease but many Danes are cynical about its

impact. The premise is good,

but I don't think this is the solution.

other ways they could change

the habits in the population.

Less than 10% of Danes are

considered obese and that's half of Australia's rate. Indigenous stock mn were once considered the lifeblood of the

Northern Territory cattle

industry . Their numbers have dropped significantly in the

last 50 years. Now, there's

hope a new generation will get

back in the saddle. This is a

sight not seen for decades. Mustering

Mustering cattle across the Roper Bar River crossing in the remote north east of remote north east of the

Northern Territory. I

know how long it's been since

there's a mob of cattle have walked across the bar. It could be 30 or 40 years. 10 students from the remote community of

Nooka are training to work in

the pastoral industry. They're

mustering 55 cattle almost 60

kilometres. They just got

natural skills. And they -

their balance and reflexes just inned credible. If I

grew up I gonna be a stock

girl. Indigenous stock mn were

were once the backbone of the Northern Territory cattle industry. But during the 1960s their numbers dropped. Now

these students are following in

the footsteps of their forebears. This country forebears. This country is

built on the backbone of Aboriginal stockmen in the

cattle industry but cattle industry but they're all gone. They don't do it any

more. This cattle drive isn't

just about producing young

stockmen and women. Most from the community of Nooka are

on welfare. It's this cycle of unemployment organisers are

hoping to change. The program encourages students to complete their schooling, and teaches

them schools they can use in them schools they can use in a range of industries. Once range of industries. Once they

learn to be able to look after a

a horse they can look after anything. After five long

days, it's the end of the

muster, but hopefully the start

of new beginnings. That's all

for this edition of the show. Thanks for joining me.

This morning - staying the course. Leading voices for the international community to stay

committed to Libya as the

fighting continues. Victory been won, but been won, but there's enormous challenges for the Libyans. There's still significant areas where they haven't gained

control. This Program Is Captioned


Ongoing effort. Firefighters

in Queensland continue to

battle bushfires battle bushfires on several months. Heading south. Julia

Gillard in Tasmania ahead of tonight's community Cabinet

meeting. And sweet, meeting. And sweet, sweet

victory. Manly celebrates the Sea Eagles' win over the

Warriors. It's great to see the

community here tonight get

behind the players and the behind the players and the

players get the chance to show

their appreciation to their