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ABC News 24: Business Today -

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(generated from captions) Coming up, market rally. Upbeat corporate Upbeat corporate news pushes US socks to a four-month high.on notice, Australia's Central Bank chief says he will not hesitate to raise rates in the minerals boom.

Finite resources, warning

that the supply of helium that the supply of helium is

dwindling with no ready

replacement. Let's look at

the markets first

the markets first - Hong

Kong is due the open shortly

slower yesterday A slower yesterday after the hang sent closed

rally in the US boosted by slower yesterday A strong

better-than-expected profit

results. European stocks rose

boosted by a jump in oil and commodities. All of the commodities. All of the

indices were up strongly indices were up

around 1.5%. For more I'm joined by just in the Smirk from St George Illawarra. The

Australian market has

be in focus today? It is two levels. One is the positive

sentiment spilling out of the

US in terms of their own

share Marsh the and the

impact that is impact that is having on a global demand story. We global demand story. We have

seen better commodity pisses

that has boosted mining

stocks but overall the mining The Aussie dollar

2-year high? Yes, Glenn The Aussie dollar is at a

Stevens followed on from Phil

Lowe. The further talk of the quantitative easing a US

dollar negative also helps to

rally underpin the Aussie dollar

rally at the points. What can

we expect around the region

as the markets open? The markets will focus on the positive sentiment from its holiday yesterday is positive sentiment coming out positive sentiment coming of the US and of course Japan

catching up if that positive

sentiment. It is the sentiment. It is the autumn holidays in Asia which holidays in Asia which means

interest will be quitter

through Asia. They will be watching the Australian

markets, and the mining stocks?

Yes t mining stock are the

focus. We have seen strong

oil prices helping to boost

underlying demand for the

stocks but really the recovery in the a bit more confidence to the

market the step up market the step up and take

some risk. But more money in

risk appetite. We will the system is helping feed

more about risk appetite. We will know Reserve meeting. European more about the Federal


stock are up. Are there still

concerns about Ireland and

Portugal's economy? That is a clear contrast in the globe. For a while people were

worried about the US but the talk of QE the focus has worried about the US but with

shifted back into Ireland, Portugal, fiscal austerity proceed assists

lowering tax revenues, it is a big circle making a big circle making the

thinking there has to be a markets nervous and they are

debt eadjustment which is

driving rates in driving rates in those countries higher. What economic data are investors economic data are investors

looking at? Clearly the

main thing that people are

nervous about is the FoI C

meeting tonight. There is a strong signal markets will start quantitative easing. I

would highlight in is a risk the markets could be

disappointed and we could get more volatility over the next few days spilling over the next of that. next of that. That meeting next of that. That

will make roar break the

strength in the Aussie and

the equities. Thank you the equities. Thank you just

in the. Let's look at what is happening in currencies and commodities -

Full-year net profit fell 4% to understand $80 4% to understand $80 million.

Premier is the holding

company for just plans and Peter Alexander.

The result was in line with

recent guidance. The world trade organisation boosted its trade forecast.

The organisation says trade

will be up for 13.5% a rise

from previous estimates of

10%. The head of the WTO at the United Nations said the

updated forecast reflects the

success made in heading off

protectionism as a response

the global financial crisis.

This is the dog that did not

at the moment. As demand really bark during the crisis

picks up, supply picks picks up, supply picks up,

trade picks up. The forecast

highlights a sharp recovery

from the 12% plunge in world

trade in 2009 when experts were hit by the economic

slowdown. The panel which makes the official call on

the time in of US recessions has ruled the downturn there ended in June lasted 18 months. The national bureau of research says the recession national bureau of economic was the was the longest

War II. For economists the was the longest since World

focus is new on how long

recovery will take an of

course the danger of a double-dip he section. The

OECD as revised downwards OECD as revised downwards its

forecast for US growth this

year. Back in May the Paris-based organisation predicted a growth

predicted a growth rate of

2.3% but says economic

conditions remain weak while unemployment continues to be conditions remain weak while

high. Rest Governor Glenn

Stevens says the for interest rates will Stevens says the next move

up. He says providing for interest rates will be

overseas risks do materialise the bank overseas risks do not

ready to use monetary policy

the manage a robust upswing

of that upswing will be for Australia's economy A lot

reliant on Asian demand for

the country's resource s. The Reserve Bank Government nor

has painted an optimistic picture. Of we picture. Of we think the global economy will record reasonable growth in the next

year but not as quick as the

past year.

We think and businesses

we talk to seem to agree that

resource sector investment

already quite high will rise further as Australia

experiences the largest minerals

minerals and energy boom for

100 years. He noted someries

took the upbeat outlook including a slowdown in the

US or China or a return to financial market chaos. But

if downside possibilities do

not materialise the job not materialise the job ahead looks likely to be one looks likely to be one of

managing a fairly robust upswing. That is a problem of

course that many other

countries would love to have.

Part of the task of

managing that will fall to monetary policy. Some

analysts have interpreted the

speech as an attempt to

soften up regional Australia

for an interest rate rise in the next couple of the next couple of months. Glenn Stevens acknowledged some regions are not some regions are not growing as

sector which would be the

real free cuss of any RBA

tightening. The issue is you cannot have monetary policies by region,

at least not if we are all

using the one currency and if

fund are flee to fund are flee to flow around. There has been much

talk of a two of speed see

con my in Australia with the resources states of WA and

Queensland out pacing the

others others but the Reserve Bank

Governor sought to play Governor sought to play down the differences. Compared to other countries or region

thanks have a single currency

the extent of dispersion of

country is not especially

large compare would these

other places. There will be

more clues on interest rates

when the Reserve Bank will

publish the minutes of its latest monetary policy meeting. Three of the Big

Four banks will report Four banks will report their

earnings in the next few

weeks with investors concerned that future goat

will be hard to come by. Higher borrowing costs its and renewed competition in

the mortgage market are among the most of challenges threatening to put the brakes

on the banks abilities the lift profits. Australian bank are in terrific shape but challenges centre on challenges centre on the

banks dependence on and

ability the access debt markets When we look at the earnings it will be in

the low digit rain for Commonwealth Bank due to funding restraint. It

will be higher for ANZ and National Australia Bank but

that will be due to the drop-out of the psych lot whereas the

whereas the others have already experienced that. With demand for depressed the bank are focusing on their residential

mortgage books which has led

to renewed competition on

mortgage rates, another

threat to earnings dew raltion of the mortgages

is 4 toyears so to the extent

they get an they get an unattractive spread on the products they

will be with them for a long

will be with them for a long time. While the bank time. While the bank are offering discounts.

There is no point competing for deposits because the

grow. All they are going grow. All they are going to do is cut one do is cut one another's throats on their margins. Bank are under pressure as companies bypass them and to go the bond market bond market with Woolworths the latest to go down that

route. Business is 35% of their book. If you their book. If you stop growth in 35% of your book the other parts very hard for you to maintain the other parts have to run very hard any momentum in any momentum in your top line. The post-global

financial world priceing for his being is the new

catchphrase. In reality it is a threat to earnings goat

because loans that may have

been approved a few years ago

are now invested. If you are

an uninvestment grade at the moment they are moment they are begging

client to take money off

them. They have surplus capital and they are capital and they are begging for them to take them off

them. If you have any risk at

all out there the bank are just do not want to know you. As

bank CEOs ponder their bank CEOs ponder their profit situations there is a situations there is a simple way to boost the top and

about the some lines but no one wants to be the first to

do it. They need a large

out-of-cycle rate rise to trigger meaning full earnings

growth relative to current

estimates. Banks will fund

that difficult even if they

do it when the Reserve do it when the Reserve Bank

moves rates there will be material political pressure which I'm sure is a factor in


has extended its take over deadline for Potash Corporation by nearly a Corporation by nearly a month after a Canadian after a Canadian regulator asked for more information. It comes It comes as Chinese media outlets report Sinchem has

asked for a backed bid. In

order to trim top take over

analysts say the company

would needed 40 to $60

billion but they had only $20 billion in assets at the end

of 2009. In to the Government Sinochem

argues bay describing should back its bid because Potash

is important to the food

security. Chinese authorities

say to take over will push up

the cost for fertilisers needed to produce food for

the country's huge

population. The UK's leading business group has called on the Government to quarantine research projects research projects from spending cuts. The

confederation of Government

industry warns there will be damage for years to come damage for years to come if

funding is vital infrastructure

projects. R and D projects. R and D transport and training need to be

spared the knife to ensure future economic growth. I

think international investors

believe there is better places to put places to put their

investments than in investments than in this

country because that is what will stop the necessary

economic growth. The price

of gold continues to rise of gold continues to rise

hitting record highs at hitting record highs at $1280

US an ounce. Copper backed

away if a five-month peak as investors braced

for the Federal Reserve meeting. Earl yeah I spoke meeting. Earl yeah I spoke to Jonathan Barrett from

Commodity Broking Services about where the gold price

might go from here. are various predictions on

the price of gold, all seem

to be going up. What are your

thoughts? It seems to have

good Moe men tumplts

continue to see record highs

you have to continue to you have to continue to flow

with it. I like the fact we

are moving into more quantitative easing in the

constituencies an as the US

dollar comes under pressure

that will really support gold

to new highs. As they be - to new highs. As they be - as more quantitative easing

takes place gold price will

go up? go up? Yes. That de basing of go up? Yes. That the currency will help the

trade higher. Traders have

said the market is focused on

the fed reserve meeting the

week. What sort of impact do you think

you think the meet link have on gold

on gold and other commodities. It is in the

wording. It is the wording on

wording. It is the wording on easeing. five-month peak. It is off slightly now. Why is that? What is happening to copper? That is just profit-taking

ahead of the in Asia but the copper

in Asia but the copper in itself is structurally in

demand. There is weak supply

at the moment. And 23 we get

this quantitative easing

coming through that will only increase the demand for

copper so we feel the copper so we feel the copper

in its several can have a

good move to the top side soon. So all the commodities depend on had the Federal Reserve

Reserve will pump more money

into the economy to boost it?

Yes, it appears that way. As

the No.1 economy we want to see that move on. they are out of the recession

and getting more easing and China is still going then there are there are some commodities

which really look better bid

than others and when you look for instance at copper that is one particular commodity which does look good given what eare going to see

what eare going to see out of

the US and China. Could

those gains be offset by any

of the woes happening in Europe? It is tricky. Europe's economy is not a powerhouse, I is a power us but it but it does not move aggressively. Which is one of the the concerns he see when we divide the economies in the Europe, America and ash yamplts No.1, 2 and 3

yamplts No.1, 2 and 3

economies are America, have economies are America, have t

US and China. Europe is

always there and is not aggressive so consumption

pretty much meets supply but

if you look at China and

America if those economies

are kicking on you will find

that will have more of a consequence to prices. The world's biggest

aluminium producer is

forecasting China will become

a net importer of the product

next year. What do

next year. What do you expect

to see what the price to see what the price of

aluminium? It is interesting

when you compare the to cop

Kerr and aluminium. Aluminium

is 35% off its record high.

Copper is only about 15% at

the moment so there is a

massive oversupply of copper

in the market.

It is more about what

producer wants to say to the market but at market but at the moment

there is too much supply in the market to the market to see that happening any time soon. Frption Wall Frption Wall Street rallied

on news that one of the major home builders had received better-than-expected profit

results. As things start

results. As things start to improve particularly in the

US what sort of you think you will see for commodities such commodities such as aluminium? It will help the use the surplus. use the surplus. The aluminium is a high-energy

producer so lit push things

more when you see the more favourable results coming outs. How large is

outs. How large is that surplus? In aluminium in

inventories and you take into consideration China it is

about 2.2 million tonnes.

When you look at a surplus

there with copper it is projected we are in deficit

by 70,000 tonnes so you start to see why we had 24

disarty in pricing between

the to base metals. Oil price

are surged. What are the main factors influencing price

movements there at the

moment? It has to do more with hurricane or weather-related. We did

breakthrough a major trend

through 74 the other night

but we have managed the trade back over that but it is more

weather related. When we get

more quantitative easing or

message from the Fed that

might pick up demand for the commodity.

commodity. A US legal firm

is set to launch a massive claim for compensation for

passengers and crew injured

on Qantas flight from

Singapore to Perth to years

ago. The company has made a last-minute plea to other passenger terse join passenger terse join the

action but aviation experts

warn that case could set a

warn that case could set a dangerous precedent.

Passengers were left dazed in the badly damaged cabin of into uncontrolled dives from sing or to Perth. The paramedics and ambulance

people are coming into the airport. Make way. Emergency

crews treated more than crews treated more than 10 injured passengers and crew and two years later more than

7including the kept and flight crew

flight crew are heading the a

US court. Many people on

board the Qantas flight 72 suffered severe psychological trauma if not physical damage. damage. The psychological

trauma is the worst

an US law allows an US law allows authority

for that. The on board come boat

boat er could feature boat er could feature in the world's largest compensation

claim but there is concern

about the impact of seeking

lucrative damages through the

US courts. If they are successful every time a plane

gets into severe turbulence

which happens a lot

passengers will say let's sue

for duty of care. Lawyers in for duty of care. Lawyers in Australia say the push for

come pen situation could be

future out in the courts

future out in the courts here. As well as the action in the US at leastfirms are preparing to lodge damages claims against

Qantas in Australian courts.

There have been claims by passengers against the carrier

carrier for some time.

have already been resolved

but those that have not been resolve ed have to be

commenced in court before commenced in court before the 2-year anniversary of the

flight because there is a

2-year limitation date.

Qantas says it has settled a

number of claims and will

number of claims and will consider any new ones. A private consortium has won

the $1.5 billion tender the

build Brisbane's next project linking the north. Initially more than 16,000 Moat met day are

expected to use the tunnel

which will join the Inner City

City Bypass with the Western

Freeway. There will be a $3 tell each way when opened in 2014 but motoring

opened in 2014 but motoring

groups do not think drivers

will use the road. Motorists

reject tolls. We see Tim and

time again toll roads do not get the

they expect so they are not

doing their job which is

easing congestion on Brisbane roads. I do not want a toll but this is a critical points

f we want this infrastructure the happen this is way the B CC as a council

way the B CC as a council can

do this. The project is due

the start in December. are warning with helium

reserves projected to run out

in 2030 the price of the gas

needs to increase. Helium is used in medicine, manufacturing and defence and

Australia make headway

exporting helium in the Asia.

There are warning thanks the

gas could soon be a lot harder to come by.

harder to come by. They are

the life of a party but one Nobel Nobel Prize winner says

helium is too cheap and helium is too cheap and the humble balloon should sell

for $100 a pop.. balloon are the backbone of our business and make up 50% of our sales.

No one will pay $1for a

helium balloon. It would be

pretty much to be end of it

for us. Helium shortage are

for us. Helium shortage are nothing new. The ill-fated

Hindenberg used helium in the

30s. But this time there are fears without urgent fears without urgent action

US reserves will run out. We should so many important technological applications of else yum exist. The world's

biggest helium reserves are

in the US but it plans in the US but it plans to sell the stockpile in five years depleting supplies and prompting fears of a

prompting fears of a global

shortage. It is hard the

imagination a world without imagination a world without

microchips, MRI machines and research like the Hadron

collider in Switzerland. They

all need helium. The problem

is it is not renewable and

there is no viable way there is no viable way to extract it from the atmosphere. Ex-streaking the

helium from natural gas

fields is fields is expensive. The first plant in the Southern

Hemisphere opened in Darwin this

this year. So far it this year. So far it meets all Australia's needs and

provides up to 3% of global

supply. It is now running at

full capacity and we are

importing from Asia from this

location. Australia is small

but rich natural gas deposits

mean there

mean there is potential to

grow the industry. There is

opportunity. The issue will be that of commercial viability. So until there are cheaper ways the harvest helium the race is onto

protect supplies that were

billions of years in the making. Now let's look at

what is making headlines - the Standard reports a 12%

profit hike for ash's largest developer to over $18 billion. The 'Financial

Times' leads with the price of cotton futures of cotton futures soaring

above the key $1 a pound

level for only the second

tile in history amid worries about a shortage of the fibre. The 'Wall Street Journal' reports that considering buying a stake in General Motors when the US

company reverts the publically traited one later this year. That is all for

this edition of business

today. Please today. Please visit the web

site if you would like to look

look back at any of look back at any of our

interviews. We look forward

to your feedback. Thank you for

for your company. Enjoy for your company. Enjoy your day.

A frontline soldier

deaths could have deaths could have been avoided if troops had more

artillery and aerial artillery and aerial support. Canberra's newest politicians arrive at

Parliament House to learn how

to be MPs. Asylum-seekers continue their each

continue their each top protest at the Villawood detention centre in Sydney.

Chris Judd takes out a surprise second Brownlow

immediate wall but plays down

his achievement. Jim

his achievement. Jim Stynes

and what he is doing real world I think not ball

if you like is make-believe.

if you like is make-believe.

Heavy rain continues the fall