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Business Today -

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(generated from captions) Live. This Program is Captioned

to the program. I'm Whitney Good morning and welcome

Fitzsimmons - in business

today, satisfying outcome.

Min Metals finally takes

control of Oz Minerals. Can oil's rally continue in oil's rally continue in the

global downturn? Military

precision. China's front tell

assault to capture cinema

audiences. Those stories

shortly but first let's look

at the markets. Taking a look

around the region, trade was

mixed yesterday with Japan's

Nikkei losing 10 points as

concerns about rising US

interest rates offset a jump

in steel shares. Australia's ASX200 added over ASX200 added over half a per

cent with mining companies

leading the gains for a

second day amid speculation

China is looking to make

further investments in the

sector. Hong Kong put on 5

point while Shanghai gave up

three-quarters of a% snapping

three days of gains. Wall

Street, trade ended in the

black with the Dow over up a

energy shares off the back of quater of a% boosted by

the continued rise the continued rise in oil and

the Nasdaq rose by half a per

cent. In Europe higher with

the Dax the top gainer

putting on over 1%. I'm

joined now by Julia Lee from

Bell Direct. Wall Street has

made steady gains in trade?

It was a session in the black

for the US market. We saw

interest rate fears subside

driven by on Wednesday. The session was

driven by fears of that

higher interest rate in terms

of the yield on the 10-year

treasuries. Overnight we saw

the yields decrease and the

fear subsided but in the last

half hour of trade we saw

some gain s driven up because

of concerns about high oil

prices which ate into the

gains by consumer stocks. We

saw economic data out of the

US and the numbers were sales rose better-than-expected. Retail

sales rose by half a per

cent, the first time we have

seen a rise in numbers in

three months but if you breakdown the numbers a lot

of that came because of the

higher oil price. Gas station

contributed a rise about 3.6%

and these numbers are not

adjusted for inflation. We

saw numbers from the first

time claims in the US which

dropped down to 601,00 but dropped down to 601,00 but

claims still at a record

high. It was a positive session. The Dow Jones industrial average has been flirting with being in the

black in 209 over the last

five sessions and I have

drawn a line at where it

started off the year. We have

the Dow Jones industrial not seen the line broken by

average was up 0.4% t Nasdaq

gained half a per cent and

the Standard & Poor's up by

0.6%. Still in the US there 0.6%. Still in the US there

are reports that household

wealth fell substantially in

the first quater. What can

you tell us? The uncertainty

inequity markets and housing

market over in the US really

ate into net wealth of US

households. Household wealth

for the first three months of

209 dropped by 1.3 trillion,

that is not million, billion

but $1.3 trillion. So but $1.3 trillion. So

household net worth came in

at $54 trillion, a lot was

driven by housing market.

Assets decreased by $500

billion. Some was driven by

equity. The stocks component

dropped by $350 billion so it

looks like the economic

downturn has had households

saving more and paying off

debt. Savings increased by 5.7% in

5.7% in and and we saw

consumer debt down 1.1%. What

can we expect to see on

regional markets? We started

in Japan. The Nikkei futures

are up 20 point. If we look

the Japanese market this is

for 2009. The key barrier

here is that 10,30 00-point

mark so the future is

pointing to breaking that

10,000-point mark. We are looking at a close above looking at a close above that

10,30 00 point which would be

a positive for the Japanese

markets. The futures are up

in Hong Kong and as are the

Spy futures. Retail sales

numbers out of China, an

increase in 15% in May

industrial production numbers compared the last year and

are expected to be up by 7.7%

compared to last year. In Japan Japan consumer confidence

numbers, we had see a rise up

to 34 in May. Oil has risen

above $73US a barrel? It has

been an amazing run for oil

prices. This is oil prices

since the beginning of the

year for 2009 and in the year

so far we have seen oil

prices up by a massive 85%.

Overnight oil prices were up

2%. The international 2%. The international energy

agency came out and upgraded

its forecast for daily

consumption and that

supported prices but overall

for the year it predict that consumption and demand will

decrease and contract by 2.9%. We saw net import

numbers out of China for May

and we saw those numbers at

the highest level in 14

months so oil prices

currently tradeing above $73US a

$73US a barrel. There is data

out of China on fixed as yet

investment. What can you tell

us? There has been a surge

ever 33% in the first quater

t first three months ever

209. 5.7 trillion has been

spent on fixed investment. A

lot has been driven by the

November announcement that $4 trillion

trillion stimulus package so

we have seen increased

spending on factories,

properties and roads t

biggest surge in five years.

We have seen an increase in

property sales and auto. An

increase in lending and all

this is showing the stimulus

is driving recovery in China.

The main hurdle is the

decrease we have seen in exports which is the main

challenge for economic

up the recovery there. Thank you for

up the date Julia Lee from

Bell Direct. Let's look at

what is happening with currencies and commodities.

Shareholders of Oz

Minerals have voted overwhelmingly to accept a

$1.4 billion asset sale to China's Min Metals. The

purchase is the biggest

acquisition ever an

Australian company in the

mining sector but investors

have slamside Oz Minerals's

directors of the handling of

the company's affairs. The mood of the

mood of the shareholders was

angry and justifiably so. China's Minmetals

increased by 15% its offer to

buy boast of Oz Minerals's

assets. 92% of Oz Minerals

shares were Cats in favour of

the $1.7 billion deal. A

proposal from Macquarie Group

the recap that lies Oz

Minerals fell through another

capitalisation plan was

rejected by the Oz Minerals

board on the ground it was board on the ground it was inferior to the Minmetals

deal. The Chairman says the

increased offer from

Minmetals reflects the

improvement in commodity and

equity markets. When they

came and rescued us they made

what was I thought a very

generous offer at the time

and thank gosh they did. But

the market has moved up a bit

and we have been and we have been from

discussing that and how

perceptions had changed. Oz

Minerals will retain the

Prominent Hill gold and

copper mine in South

Australia along with smaller

projects. The CEO says the

deal will leave the company

debt free holding half a

billion in cash. A far cry

from late last year when Oz

Minerals banking syndicate

refused to roll over the company's

company's debt facilities threatening its survival. The

CEO says the company was

vulnerable because of its

exposure th base metals. We

were hit faster than the iron

ore, coal, minerals companies

who have long-term contracts

and set prices. We take

instant prices off the LME so

base metals are hit faster

and earlier. Also the banking facilities t facilities t banks saying

they wanted all their money

back. While the Oz Minerals

answer the action received

overwhelming support Oz

Minerals faced a backlash on

executive pay. Only one-third

of shares were cast in favour

of the none binding poll on

Oz Minerals's remuneration

report and the long-standing

director Michael Eager

received 56% of the vote well

below the 90% below the 90% that incumbent

directors typically attract.

The key concern for

shareholders has been the

dramatic fall in the value of investments. Oz Minerals

shares plunged by half since

the company was formed after

a merger last July. Oz

Minerals says the transaction

is a defining moment in its history.

history. The new CEO will

retain a share holding in Oz

Minerals and suggest other

investors do the same but

after the experience of the

past 6 months the board will

have a much harder time

selling such an up beat story

to current and prospective

shareholders. In more

company news

company news Beijing auto

company has bid for Volvo. A

team of company executives

visit Volvo headquarters in

Sweden. The potential Chinese

buyers have emended after

Ford says the sale process is

ongoing but no names have

been disclosed. Meanwhile the

head of Mazda says its head of Mazda says its

targeting global annual sales

30,00 for its top-selling

Mazda. The company has hinted

at forming an alliance with

Ford and other car makers to

develop more fuel-efficient

technology. Hong Kong

officials have cleared energy

drink Red Bull after stress its found its found no cocaine. Tests

were carried out from local

outlets and traders. Some

products were found to have

contained traces of cocaine. China's security regulator

has issued new ruling on

public offerings. The changes

pave of pave the way for back

loads of IPOs. More than 30

companies have been waiting over a

over a year to go public

after a slump sparked the

regulator to suspend public

offerings last autumn. It

could push up to $15 billion

onto the market this year and

the new rules come into

effect immediately. Oil price

haves hit an 8-month high on

the falling dollar and the possibility that consumers

and businesses may be more

willing to spend on energy

but many have questioned the but many have questioned the fundamentals of the rally

arguing it has been based on

speculation and optimism.

However t international

energy agency has endorsed

the up beat sentiment saying

there are early signs of a

real recovery in demand A

more than double of the oil

price in the past 4 month has

many analysts change in their

forecasts from recession to

recovery. I is a psychological commodity oil psychological commodity oil because of the supply and

demand situation. If the market feels we are going

into recovery the price of

the commodity will be bid

up. But it is not entirely

based on the recovery story

with the falling green back

also playing a role. The

dollar is weak, with this

commodity or asset class now

since we have the speck as

crude oil as an asset class

it is just going to go it is just going to go higher. That momentum may

continue with the US report

showing the world's biggest

energy user is starting to

draw on its stockpile

suggesting demand is picking

up. It is certainly an indication that the market is

a bit more confident about

the economic outlook because

commodity price are regarded

as leading indicators of the

global recovery so the are

starting the factor in a bit starting the factor in a bit

more normality about global economic conditions. There

are fears the oil price could

run ahead of fundamentals and

dampener real economic growth

but the oil company say the

higher price is justified.

This week the head of wish

energy giant BP said oil

producing nations need a pies

above $60 to balance books

and consumer can cope with

prices up to $90 a barrel. prices up to $90 a barrel. The chairman of the Russian

group stands by his

predictions for oil to hit

$250 a barrel.. that is

pretty extreme. In July 2008

we peaked $178 a bar yes. Oil

is a funk of where we are in

terms of economic recovery. I

think we need to see further

signs removing through this

eoffer coffee with the green shoots taking hold. It shoots taking hold. It is

only then we will see oil

move through to start with

$100 a barrel. Discussions of

the supply have been pushed

off the agenda by the global

financial crisis. But the

issue is starting to emerge

with one Professor arguing

supply is already severely

con trained. I'm a physicist

and I believe that when the

oil is going into the through

the rocks down there they have the follow physical have the follow physical laws

and not economic laws and the

international agency uses

economic laws which is the

difference. When we put

physical pampers into the

equation it is

different. Demand will

determine if the current

current run-up in prices is

justified and a sign of

sustained economic recovery.

The Australian economy

continues to hold up continues to hold up

remarkably well in the face

of the global downturn with a

relatively small number of

jobs shed in May. The

unemployment rate rose 2.2%

to 5.7% while the numbers are

encouraging most economists

maintain their earlier

forecast of an unemployment

rate above 8% next year. The

second month in a row

employment numbers have taken

everybody by surprise be so far this

far this year just 9500 jobs

have been lost compared to 3

million in the US. Not surprisingly the Government

has been quick to take the

credit pointing to its

spending programs aimed at

propping up the economy. Our

action are designed the

create jobs today while

building skills and

infrastructure for

tomorrow. Helped by the boost

the the First Homeowners

Grant housing industry has

staged a strong come back staged a strong come back in

recent months with economists

such as JP more begun's Helen

Kevin saying - We have

hardly seen any jobs relative

the other sectors of the

economy shed in the

construction sector. Housing

industry association believes

the impact is wider than

that. The residential sector that. The residential sector

has quite a large multiplier

effect through to other

sectors of the economy. There

are a number of service

sector jobs for example that

ehigh on the residential

sector holding up relatively

well. A large part of the manufacturing sector feeds

into new home construction

and also into renovation

activity. However t First

wound back and with Homeowners Grant is being

wound back and with it

support for the construction

industry which does not auger

well for the employment

outlook. By the third quater

of this year unemployment

will be in the high 6s and in

previous recessions

unemployment has ventured

into double-digit territory. We managed to skirt a

recession but I do not think

we out of the woods yet. In

times of rising unemployment

some are looking at new ways

to earn a living to earn a living including

turning a favourite hobby

into a career. Others decided

to escape the daily grind

years ago and are finding the

mix of business and pleasure

can be profitable. A TV

program was the springboard

for one couple's newfound

export success. It was a

stint on the TV show New

Inventors that turned a

passion for quilting into a

thriving business. The couple thriving business. The couple

took out the People's Choice

award for their adjust table

ruler that takes the pain out

of measuring fabric.. our

lives changed. This is

full-time. We are now worldwide and it has all

happened in the span of 12 months. Leonie has been quilting for more than 30

years. Now she exports the

Europe and beyond. Next when

we get an order from Denmark

or we had an order or we had an order from

Malaysia the other day I

think no, it is very

surreal. You would have the

look twice to realise these

tinys to the the real deal.

Bev Graeme says creating piss

if her hobby was of more of a

challenge than a real time

job. You do not knock off,

business you keep because it is your own

business you keep working It

seems craft is making a come

back. 40,000 people are

expected to come through the

doors at this event in Sydney

and organisers say 400,000

attend similar event across

the country. Christine Smally

travels the world the source

beads and runs classes at her

store in Sydney's inner west

to be key ative every It has given me a opportunity

to be key ative every day and

you do not get the

opportunity generally in a 9

to 5 job. It is not

necessarily the easy path but

honing in on your hobby could

lead the ultimate job

unemployment figure are sent satisfaction. While the

as relatively good news for

the wider economy there is

still no bright spot for

those entering the job market

for the first time. There may

not have been widespread job losses but there losses but there has not been

an expansion of job creation

either which is having a real

impact on junk Australians

look in for apprenticeships.

Owen Jennings is 18 and lives

in central NSW. My name is Owen.

nice the meet you. I'm a

first year apprentice out of

work looking for a job. I'm

here the inquiry about any

carpenter apprentices zbh.s

Owen lost his Owen lost his apprenticeship

in the wake of the global

downturn. Owen now works

full-time at a fast-food

outlet and has been looking

for an apprentice ship for

the past year. That is why

my heart lies. My father and

father 's father were

carpenters so in want to

follow in the footsteps of my

family and carry on. Owen has tried everything. The

papers, the papers, the internet. Turning

up at building sites and

keeping in contact with his local group training company

which matches apprentices

with employers. Things are

even harder for Owen because

of where he lives. Central

Coast youth unem preliminary

runs at 37.6% which is

trending up and if the tone

if the business community is anything to go on anything to go on oh could

look down barrel of 40%. Hat

does that mean for apprenticeships? It is devistateing. You have 40% of

a population largerton size

of Darwin, some 300,000

people on the coats, tens of

thousands of kids will be

very, very

disadvantaged. Greg Best's

own assessment matches the own assessment matches the

figures. Employer are not

hiring which is hurting young

people In January 259 young

people, career hopefuls

looking for apprenticeships

and train and we gave 100

jobs. The situation will get

worse. The ABS figures for

young job seekers reveal a

disturbing trend. The

situation for 15 to

19-year-olds not in education

is troubling. Unemployment

for boys is 10% to 18% in 12

month and from females it has

gone from 14% to 18%. I with

is bad news for those seeking

apprenticeships. Vicky works

in retail and studies

part-time at a Melbourne part-time at a Melbourne

college but hat she really

wants is an apprenticeship.

I have been looking for over

a year now in graphic

pre-press. It is basically

doing page layout and type

setting and colour matching

for printing companies. It

is really, really frustrating

especially places that say

"We absolutely love you, we

think you are fantastic but

we just cannot take you on

right now" Despite their

frustrations neither Vicky

nor Owen are giving up.

Basically what I want to do

so it does not matter what

comes in my way, that is what

is going to happen. I'm going

to get my apprenticeship and

hopefully own my own business

and go on from there. To get and go on from there. To get

an apprenticeship is

everything at the moment. It

is my life, it will be my

career, what I want to do

with my life so it is the

most important thing at the

moment. For this generation

an improvement in the job

figures can not come soon enough. China's film industry

has managed to shake off the global financial crisis with

406 features made in 406 features made in 208.

According to official figures

the box office take was $635

million and that amount could

easily be surpassed this year

with Red Cliff a hugely

expensive revisiting of

China's history resetting

China's records. Stunning

scenery, spectacular

choreographed battles. A-list

stars. This historic epic Red

Cliff has wowed Asian audiences grossing more than

$10 million in Japan alone.

So did the $80 million

production cost reputedly the

highest ever for a Chinese

language film worry the Hong

Kong director? No, not at

all. I feel like I'm making

another, you know, big budget


Hollywood movie. The only

pressure how to create it

good, make it nice to, tell a

nice story. The legend dry

battle which occurred during

the Han dynasty in 208AD has

enduring appeal. Spawning

everything from cherished nor

yells to video games and

comics. For a long time John

Wu wanted the bring the

sweeping story to life on the

screen. Though he realised it screen. Though he realised it

would be on a heroic scale to

match Hollywood classics like

Ben Hur and Lawrence of

Arabia, one of his favourite

films. I have been dreaming

to make this movie for over

20 years. I grow up with this

story and I love all the

heros. It also had a very international theme.

international theme. It is

all about love, courage and

friendship. There were

numerous challenges that had

to be overcome during

shooting. The story was set

in southern China but had to

be filmed in the north with

its weather extremes. Up to

200 actors and extras were on

set every day. One scene took

more than month and a

stuntman died as a result of

a accident during the a accident during the final sequence. Even though I was

not on the set but I still

feel responsible. It is sad,

you know. Simply I have lost

one of my family. John Wu

made his name with Hong Kong action flicks in action flicks in the early 19

'80s. Lured to Hollywood he

made Mission Impossible 2

which earned $20 million at

the box office. This is his

first Chinese collaboration

in 15 years and it exposed a

younger generation of Chinese

actors and technicians to

Western film making. I

really want the young people

in China to learn some new experience

experience to learn how do

you make a big movie, to

learn the process, to learn

all kind of techniques. Asian

cinema goers have flocked the

first part of the four-hour

war opus. A deal has been

secured to show a shorten

version in the US and

elsewhere but the film's

blend of eastern and Western blend of eastern and Western styles, narrative and action seals December say inned the

make it a hit in many markets

beyond the middle king do.

Now let's look at what is

making headlines around the

region. The business pages of

the Standards lead with mixed

data out of the China.

Exports, imports fell in May

but better-than-expected

growth in urban investment.

The 'Financial Times' examines what is examines what is behind surge

in oil. And the 'Wall Street

Journal' looks at why

confidence is returning to

Japan's share market. That is

all for today. Thank you for

joining me. Enjoy your day.