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ABC News 24: Business Today -

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Good morning, welcome to 'Business Today' for Australian

program - Greek Fitzsimmons. Coming up on the 'Business Today' for Australian

European officials try to program - Greek crisis,

hammer out a debt package for

Greece, as its political

turmoil deepens. Industry stalemate - claims that no

action is being taken to improve cattle handling in

Indonesia. China's animation

industry takes on Hollywood.

Those stories shortly. First

let's take a quick look at the

markets. The local Australian session will start soon. More

on that in a moment. Yesterday

around the region, there were as alarm grows over massive

as alarm grows over Greece's

deepening debt crisis. Japan's

Nikkei gave up 1.7%.

Australia's ASX 200 dropped 20

-- 2% and Hong Kong's Hang Seng

lost one and percent. lost one and three-quarters

percent. To the US,

surprisingly on Wall Street

overnight the Dow gained ground

in a volatile session, but

in a volatile session, but in

Europe all major markets

slumped to a three-month slumped to a three-month low,

as the fierce over Greece

continue to weigh on investor

about Greece defaulting on its

debt reverberated heavily on

regional markets. In Tokyo,

weight stocks suffered the Nikkei tumbled, as heavy

substantial falls. Nissan

Motors fell by nearly 2%, while Tokyo Electric Power, the

operate ort of Fukushima

nuclear power plant, slipped.

By the time Europe started

trading, the losses were peared back thanks to a better expected US data. For more on

the market action, I'ms joined

bi Christ even Ip from Bell

Direct. Local trade will start

soon. Will soon. Will those continued losses be weigh on the market

number today? Yesterday we saw a

number of interesting things number of

There were massive happen on the technical tront.

There were massive losses across the

across the board. We saw the

ASX 200 break through the 4500 point level. The 4500 level has traditionally been a point level. The 4500 point

strong support for the

this morning, though, Australian share market.

indicating a positive open,

about 9 points, a flat day is

maybe expected. There is a

positive US lead, but softness

in commodities will weigh on positive US lead, but softness

the market. We're not far from

the year low of the 44.77.

Technical traders will keep a

close eye on that. For the

moment a positive start is

share market. Christine, expected for the Australian

elsewhere around the region

will the sovereign debt issues carry on through today's

particularly, the Greece debt session. I guess it's not so

is weighing on regional markets.

markets. It's rather fear of

systemic risk and contagion driving markets.

up less than 2% of Eurozone

GDP. If the Greek GDP. If the Greek crisis spreads across the European

continent, it will have a

massive impact on economies massive impact on

like China, South Korea and Japan,

Japan, that rely heavily Japan, that rely heavily on

exports to Europe. That

systemic risk and fear of contagion weighing on regional markets, that will see it

the region today. To the interestingly, Wall Street was higher. Why was that? That's

right. The US market seems to

jump from one extreme to jump from

another this week. another this week. We saw the

US stocks rebound, thanks to better than expected jobs and

housing date gentleman. Those two sectors have been the weakness that's been weakness that's been stalling

US recovery. Last night we saw

initial jobless claims falling

down to

down to 414,000. There was

some positive news in housing

as well. Housing is up 3.2% as well. Housing

for May, and building permits

also surprised on the upside.

That's helped drive US gains.

We saw those gains peared back after reports show that

manufacturing in the fill delva

region surprisingly contracted.

It was mostly positive. S&P

500 and Dow ended higher but

night. Of course, Christine, Nazdaq weakened jo every

night. Of course, Christine, as

expected, Europe was red across

the board. Is this the

beginning of a much bigger

stocks on the slide for the slide? That's right. European

second day in a road. The

political tension in Greece is political tension in Greece

adding fuel to the fire. There's been a number of parliamentary resignations and

it's making things difficult for the for the Greek Prime Minister to

gain support for austerity

measures, which are needed measures, which are needed to avoid a debt default. In

Greece, we saw selloffs across the banks

the banks with alpha bank and

National Bank of Greece losing

4%. Across Europe, the

benchmark index fell 0.5% to

lowest level since March of this year. That Greek debt lowest level since March of

contagion saw than expected data out of the

US. So red across the board,

European stocks now European stocks now down to

three-month lows. Let's look currencies. Of course news currencies. three-month lows. Let's look at

Euro. That's right. from Greece weighed on the from Greece weighed on

Euro. That's right. It has Euro. That's right. It

been very challenging for the

Euro. The Euro has fallen Euro. The Euro has fallen 1.8% yesterday, that's the biggest

drop in about six weeks. But

even if the EU and IMF do agree

on a Greece bailout, analysts

are saying that a rebound will

dollar is be short-lived. The Aussie

three-week lower, joins the New dollar is also lower, down to a

Zealand dollar being sold off,

as the Greek crisis demand

dampens the demand. as the Greek crisis demand

dollar trading at about 105 dampens the demand. Aussie

dollar trading at about 105 US

cents. Economic data, what

should we look out for? Not a

lot of economic data due in the local market today, but across in Japan we have some local market today, but across

in Japan we have some vehicle

sales numbers out. sales numbers out. Eurozone

trade balance numbers are out

tonight. That's going to be an interesting one to watch US confidence numbers out too. All right, Christine,

we'll leave it there, thanks

for the update. for the update. Thanks, Whitney. Christ ena Ip from

Bell Direct there. Let's

a closer look at what's happening with currencies and commodities now:

As we just heard, the debt crisis in Greece has caused

havoc with global financial markets. The Australian market

fell nearly 2% to a nine-month

low and Asia markets and European stocks also lost ground. The ground. The European Central

Bank is now concerned Greece

could spark a contagion effect,

could spark a contagion effect,

resulting in another resulting in another global

economic meltdown. Facing financial and turmoil, Greek Prime Minister,

George Papandreou, is trying to

head off a revolt from within

his own Socialist party as he

struggles to implement new austerity measures to save

Greece from a massive debt loan

default. Two deputies resigned at an emergency

at an emergency cabinet meeting, with meeting, with the Prime Minister intent on

Minister intent on a cabinet reshuffle in his attempts to

get the measures passed through

parliament. But in the mean time, Greece's problem has

become a global financial one, sending world markets into a

tail spin. TRANSLATION:

Before us a difficult negotiation. negotiation. The next days are

critical because the handling

of our country's crisis in of our country's crisis in the European Union has some not

European Union has some not so correct calculations. correct calculations. The

crisis has now spread and the

right solution for our country

will be the right solution for

Europe. Greek bond prices fell

to record lows and the cost insuring debt against default

soared to an all-time high.

The Euro also plummeted to a

record low, causing global panic. German and French banks

are seen amongst the most

are seen amongst the most

exposed to a potential crash. TRANSLATION: The Euro is,

along with our common agricultural policy, one of the greatest European achievements

and our task is to defend and

safeguard the Euro. Without the Euro there Without Europe there is no peace and no prosperity possible. The European possible. The European Union's top economic official

top economic official Wren raised the possibility of a default and highlighted the

need for the austerity package

to be approved by the end of

the month. He said the International Monetary Fund has agreed to pay Greece its $17 billion aid tranche next month,

even if Eurozone leaders do

even if Eurozone leaders do not agree on a new Greek bailout.

TRANSLATION: At difficult moment, there is only one goal for all of us - stability to

stability to keep the country and its economy on its feet, to

continue without interruption the financing of the country by its lenders. We have its lenders. We have an economic crisis turning into a

political crisis. It's not good news. Ultimately political decisions have to be

made for Greece to get out of

its turmoil. The new cabinet, once

once it's announced, I think will have a political suicide mission to do the right thing

to pass very tough measures to pass very tough measures and to pass them on time and

implement them. In response to

the chaos, Monetary Fund was compelled to

comment and in a statement comment and in a statement said

it will continue to support Greece, subject to the adoption of the economic policy reforms

agreed with Greek authorities.

The IMF said progress is being made in

made in discussions to ensure the full financing of the program and anticipates the positive outcome on this at the

next Euro group meeting. Conclusion of the Conclusion of the pending program review remains subject to approval by the IMF's executive board. Big global

banks are on high alert and expecting a volatile ride

ahead, with more

likely before any resolution or

likely before any resolution or possible possible Greek default. Mexico's candidate to

lead the IMF says lead the IMF says that his battle with France's Christine Speaking in Beijing after talks with Chinese with Chinese officials, Mr Carsten's call for the World Bank's involvement eased the

cost of a bailout for Greece.

Mr Carstens is the clear underdog in the race to become

the International Monetary Fund

following the resignation of

Dominique Strauss-Kahn last

month. His campaign to win support from major emerging

economies has faulted in the face

face of Lagarde's worldwide charm offensive, but he said

officials in China had listened very carefully to his pitch. Well, Government is refusing to bend

to demands from the cattle

industry and the opposition industry and the opposition for

an immediate resumption of live

exports to Indonesia. Instead, the federal and NT governments

say they're working to make sure the Indonesian slaughter industry improves standards, but independent MPs say there appears to be little

appears to be little actual

work being done on the ground.

It's a crisis being felt right

across the country. In Broome,

cattle producers and business owners called on the

Federal Government to resume

live exports. A lot of people

are very worried that we're

going to have businesses to go

home to. While in home to. While in the NT politicians held an emergency parliamentary parliamentary session and were

united in their call to restart

exports to some Indonesian abattoirs. I absolutely

resolve all my efforts in terms

of playing our part in terms of ensuring that this trade is resumed as soon as Opposition is also continuing

to push the case. When did the Government first raise with the beef industry beef industry any concerns that some Australian cattle were

being treated cruelly in some Indonesian abattoirs? The Federal Government is refusing

to budge. It says a task force

is working towards ensuring Indonesian abattoirs treat Australian cattle properly and

can't be rushed. Until such time as the supply assurance can be put in place,

then no cattle will go into those markets. But federal Independents Independents are questioning whether the Government actually doing anything to

improve standards in Indonesia

so the trade can resume. Not

one single video camera, not one single stungun or, for that

matter, a single expert has left

left Australia to go up there. The NT there. The NT Opposition Leader inspected Indonesian abattoirs ready to start receiving cattle

again. What I saw was a

standard and a system that does comply with comply with international standards. For now, across Northern Australia and animals stuck in

animals stuck in holding yards

continue to wait in limbo.

continue to wait in limbo. The

chief executive of Hong Kong,

Donald Chong, is in Australia

for a week-long visit to promote trade opportunities and

encourage more Australian

companies to list in Hong Kong. And the leader of the Territory

is still confident that Hong

gateway to China. When people

go to China, if you are large

companies, large firms, you are

the IBM of this world or

McDonald's of this world, you

may go direct into the may go direct into the main-end

market, but for small- and medium-sized enterprises, with the bulk of the business world

in these days, you are totally

lost in a huge market of China. But whereas in Hong Kong we

have been investing

market for the last 30 years.

We are the number one investor

in mainland, number one

investor in Shanghai, one in Beijing. We are familiar with all the commercial network, how the

whole thing works. So if medium-sized company were to

branch out into China, safest thing to do safest thing to do is go through Hong Kong.

through Hong Kong. Some of top business leaders are

gathering in Canberra for a

forum aimed at developing ideas

for more sustainable business

practices. On the agenda, business-led approach to

solving sustainability issues

through a new and innovative

technologies and solutions. Prime Minister Julia Gillard

presented Australia's

credentials as regional leader

at the forefront of economic change.

change. We have a strong economic record and robust

institutions. We've emerged

from the global recession with strong credentials. These

strong credentials coupled with our geographic position, make us a place of opportunity. The

forum will examine sustainability across a range of industries from engineering

to tourism and IT. One of the

keynote speakers at the forum

was choker, the managing

director of Tata industries. I

spoke to him a short time ago. Chok ago. Chok chok, welcome to 'Business Today'. Thank you. You're in Australia to discuss the future of sustainable business. What

sorts of initiatives is Tata embark ing on in this area? We

have taken several initiatives,

but I must confess, I must tell you upfront, that these

initiatives are not of last

three, four, five, 10 or 20 years. Several of them began

over 100 years ago, ever

our founder, Mr Tata, mentioned that business and interdependent. He said that

community is not just one more

stakeholder in an enterprise,

but as a matter of fact the

very purpose of it. Therefore

taking care of the interests of

all the stakeholders become s a part and parcel of any Tata business and therefore issues

related to employee benefits,

issues related to making sure that the that the environment does not

get damaged because of our activities, is something which

has been there in the Tata DNA

for the last 100 years for the last 100 years and more. Of late, because more. Of late, because the

issue of glo ebbal warming has

become an important issue, 39

contribute about 95% of our turnover have undertaken carbon

footprinting of their own

activities that have been

completed. They have plans for carbon emission mitigation programs and those are under

implementation. implementation. Almost all of them have set targets for themselves as to how themselves as to how much emission control and how much emission reductions they emission reductions they will do by 2015

will do by 2020. Tata is a vast company and you say that

sustainable programs in the company's DNA, but

you've undertaken, as you've just outlined, emissions carbon

imprinting or mapping. Given

the company is quite vast and you have sectors such as steel, energy and energy and telecommunications,

just to name a few, how difficult difficult will it be to reduce

your emissions? It's not very difficult. The difficult part

is the initial one, which took first

first few months to do that,

number one get the CEO

convinced, which wasn't too

difficult. The second one difficult. The second one was to make sure that everybody in

the organisation is on the same wavelength and

communication, continual education, was necessary to do that. Kishor that. Kishor Chaukar, I'm interested to know why do you

think countries like China and

India are so advanced India are so advanced down the sustainable path compared to

other countries, such as Australia, which are lagging in

this area? Quite honestly, this area? Quite honestly, I

don't think I'll be able to

answer that query because answer that query because I

don't know at what level don't know at what level China

is and I also do not know at

what level Australia is. But

in India the pollution or in India the pollution or the

damage to the environment has

been an issue for quite been an issue for quite some

time, and therefore it is very necessary for us to make necessary for us to make sure

that we have and maintain our country in a liveable to start

with and more comfortable, more

liveable as the years go by.

That has force. Of That has been the driving force. Of course, Tata force. Of course, Tata is well known for its product

car, the inexpensive car. What

was behind the philosophy in

bringing that to market? bringing that to market? The

basic principle of basic principle of Nano is that

if you have travelled to India,

you will see a lot of people using

using two-wheelers. Those

two-wheelers are not just individual transportation

vehicles, but very often you

will find that it is a family transportation vehicle. safety is a major issue.

Therefore, our chairman had been thinking as to how

can we do as Tata to make sure

that we give and we offer that we give and we offer a

product to these people who are capable of spending a certain

amount of money with a little more money, they'll be able to have a safer

have a safer four-wheeler economic born out of that concept. It

took some years. It took a

good bit of effort good bit of effort in designing and developing manufacturing processes, but it did happen. You're in Australia for the business leaders sustainability forum. What sustainability forum. What are your hopes of the outcomes of your hopes of the outcomes of a forum like this? I've been

able to put across the fact do

not treat this activity as a

cost, but treat it as an investment, and if you treat

this as an investment, the

benefits of building social

capital, benefits of building

environmental capital, they may not come to you in 10 years or

20 years, they may take 40

years, they may take 50 years, but come they will and they'll

be substantive. This is what

our experience is if the

participants get benefit out of

what I have said, I think it

will be great so far as we are concerned, because we concerned, because we believe - Kishor Chaukar, thank you for

joining the program. Thank you very much. very much. Well, there's

rarely a good-news story on

banks, but a new report shows

fees in 2010 didn't rise at

all. It's the first time

that's happened in 13 years. Consumers have been waging a

bitter battle against bank fees, We think that's a great thing.

It shows that people power does make a difference. A survey by the Reserve Bank shows fees remained the first time in over a decade. Probably more

importantly, the amount of bank

fees that households are paying has actually fallen quite

dramatically. Much of the

decline comes in a fall in exception fees like those on

late credit card payments and

bank revenue from ATM machines

also fell sharply after banks

were forced to notify consumers how much transactions. I want to see that continuing in relation to

home loans for instance as

well. Bank fees may be well. Bank fees may be down, but many consumers are still getting into trouble. A new report by a credit reference

agency shows 20% of Australians

are finding it difficult to

repay debt and 10% have

admitted to lying about their financial information when

applying for loans. Typically,

what we're seeing is people overstate their income,

understate their expenses, and don't tell the truth

don't tell the truth about how much they owe

much they owe on their credit could be forced to provide more comprehensive information about

their finances. It's their finances. It's very

difficult for banks to lend responsibly if people aren't telling us fully what their

actual financial actual financial situation is. But consumer groups say requiring individuals to

provide more information raises

real privacy concerns. real privacy concerns. They argue the responsibility should

fall on the big banks to educate consumers about

educate consumers about the risks of defaulting on a loan.

I think the level of information

moment is quite poor. A Senate

inquiry is investigating the

issue. It's due to report later this year. Well, the Hollywood-produced Hollywood-produced film 'Kungfu Panda' has been gapping

headlines in China and dominating takings, dominating takings, whilst stirring up controversy at the

same time. One noted artist

same time. One noted artist

has taken out a series of

newspaper adds calling for a boycott of boycott of the film and a

university professor has described it as a described it as a cultural invasion. At the that Chinese animators are

about to release their first

big-budget animation which they

hope will trump hope will trump Hollywood's efforts. At

efforts. At 120 million, and

with a Bevy of 300 staff, the

legend of a rabbit legend of a rabbit has

resources that would be resources that would be the envy of many in Chinaa's

animation business. Its

director says the film was

to 'Kungfu Panda' right from

the very beginning.

What prompted soul-searching

among Chinese animators was the run-away success run-away success of 'Kungfu

Panda' on the mainland and

around the world. around the world. Both instalments of this production have surpassed production have surpassed 100

UN mark. This is a benchmark locals struggle

locals struggle to beat. That's because Chinese films

lack funding and expertise, as

well as facing rampant piracy and expensive movie tickets:

Increasingly, Hollywood is

taking note of the huge

taking note of the huge Chinese market, collaborating with

Chinese companies as a way of circumventing the foreign movie

quota. This means even more

competition in future, but

China is also paying more attention to what's nurturing

its own animation industry and hopes high for the July release

of Legends of the Rbits. It's

not just money at stake. not just money at stake. It's

also about confidence and belief that the seemingly

impossible is possible. Looks

like fun. Now let's take a look at what's making headlines

around the region. The 'Wall Street Journal'

Street Journal' reports that China

China and Russia have failed sign a massive natural sign a massive natural gas pipeline deal. 'Financial Times' says global regulators

are poised to set a new regime of

of capital banks for some of

the world's biggest banks to

contain a potential financial

crisis. That's all for this

edition of 'Business Today'. If you'd like to look back over

any of our interviews, any of our interviews, please visit our visit our website. We look

forward to your feedback. I'm Whitney Fitzsimmons. Thanks

for joining me. Enjoy your

day. Closed Captions by CSI

This Program is Captioned Live. This morning - Live. This morning - the

Federal Government prepares to

fight a High Court challenge to its asylum seeker deal its asylum seeker deal with Malaysia. The Malaysia. The Government, through through the Immigration Minister,

If it's to be tested before the courts, it will be tested by

the judges as they work their

way through the law. way through the law. Also

today - the Government defends plans for a $12 million promotion campaign on carbon pricing. The United States

warns al-Qaeda's new leader to

expect a similar fate to Osama Bin Laden. And politicians

join top executives for a night

sleeping rough for charity. very good morning. You're

watching ABC News 24. I'm Jane