Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Disclaimer: The Parliamentary Library does not warrant the accuracy of closed captions. These are derived automatically from the broadcaster's signal.
Lateline Business -

View in ParlView

(generated from captions) reconfiguring their rhetoric.

An editorial in the

'Australian' suggesting the

Howard years haven't produced

much in the way of real reform

- this is the Keating argument? I remember reading Australian

Australian editorial regarding

Malcolm Fraser's tenure. It's

an important editorial. I

think it's got a bit to do with

the IR laws, or with Kevin Rudd's IR announcements. I think they've been holding

back. By and large with the

exception of IR, the elite

opinion of the 'Australian' has

not been empathetical to Rudd's

agenda.? once he moved on IR I agenda.? once he moved on IR I

think that was unblocking the

floodgates. They're suggesting

what a good many in the

business community are now

doing. Michael Kroger, here's

one critical quote among many

critical quotes. "We now see

Mr Howard struggling in the

polls not because of his age

but because he appears to have

little idea of what to do

next". Well, I think the

editorial was a rather editorial was a rather poor

piece of writing and thinking.

They follow this sort of

post-Latham line that Labor are

responsible for the great

economic reforms of the '80s

and that's why we're enjoying

such good economic times today. The great they think they

didn't concentrate on is the

fact that it's not just

bringing about change, it's

being able to manage change and

some of the things that the

Hawke and Keating governments

did were right in terms did were right in terms of

economic policy but they were

unable to manage that change

and it brought disastrous

consequences for the Australian

economy. We had a recession,

record unemployment, record

retirements, record debt,

almost $100 million left

behind. Massive debt,

superannuation like tos, small

businesses going to the wall.

I mean, this was the legacy.

Why? Because they couldn't

manage the change, they didn't

have the experience to manage

the change. The 'Australian'

doesn't make anything of this

at all, interest rates, the

Future Fund - I thought, in

contrast to most'Australian''

editorials, this was not their

shining hour. Let's not get

hung up on the 'Australian's

editorial. Far more important

is what Murdoch is doing in the

tabloids in the 'Daily

Telegraph' and the Melbourne

Sun in Melbourne. Rudd is Sun in Melbourne. Rudd is

getting a better run there.

That's a far more indicative

sign there. Is it possible that

Rupert Murdoch has, in fact,

cast his vote early and cast it

for Labor? Um, well we'll never

know, will we? Or we won't know

for a while. I can't see that

there's any great shift in

opinion either way. The

a 'Herald Sun' in Melbourne takes

a straight line in relation to

these things. I can't see a

great move for the coalition or

the Labor Party rising out of

the Murdoch tabloids or the 'Australian' quite frankly.

That's not to say they won't at

some stage in the future but at

the minute I think it's pretty

fair all round. We've got time,

just time, in fact, for a quite

prediction from both of you.

Rod Cameron, I'll start with

you, when do you think the election will be? If you're brave enough, who's going brave enough, who's going to

win it? I get asked this every

week by you or Virginia, Tony.

The election - we've now got a

wildcard with this wretched

equine flu. The Melbourne Cup

is now seminal perhaps to when

Howard is going to call it. I

don't think he's made up his

APEC mind. He'll wait to see how

APEC goes, probably won't be a

positive for him. I don't

think he'll want to have an

election on the week leading up

to the Melbourne Cup, because

even if one assumes there will

be some sort of Melbourne Cup

but it's going to be a shadow

of itself and there may well be

a lot of aggravated horse

racing industry and we may well

have a public inquiry having

started into the whole mess and

it's not going to help John

Howard. So he may well be

before or wanting to either go well

before or well after the

Melbourne Cup. Michael Kroger,

it never occurred to me the

Melbourne Cup might actually

play into this equation, what

do you think? I think that

assessment's pretty right. Rod

says he's going to call it

sooner or later than the

Melbourne Cup. I don't think

he'll be calling it sooner. I

think I've said before, I think

the right election date is 1

December or 8 December. I know Centrebet who are the Centrebet who are the

bookmakers in the country don't

agree with that and they're the

oracle on these things. I

don't know why you call an

election when you're a long way

behind. Menzies said call an

election in December - the

public are in a good mood, good

cheer. I would have thought

the first and the eighth would

be better opportunities for the be better opportunities for the

Government. Would you care to

cast a vote as to who would

win? I think the coalition

because the concentration on

economic issues, that's where

the Government is extremely

strong. 71% of the Australian

population today in the Lowy

Institute study say they're

optimistic or very optimistic

about the economic future of

Australia. That's a real

Government issue. You look at

the opinion polls, the coalition are well behind, coalition are well behind,

Labor are clearly the favourite

at this stage. Quick one from

you Rod Cameron, you didn't say

who you thought would win? I'm

sticking by 50/50 but looking

much more favourably down the

Labor side now. It's probably

Rudd's to lose. Alright, we'll

have to leave you both there

and hopefully during the course of the campaign we'll bring

this team of analysts back

together again . It's good of

you both to be here you both to be here tonight,

thank you very much. Pleasure,


A prisoner has been returned

to his cell after being

questioned over the nation's

most notorious murder cases.

Police interviewed Derek Ernest

Percy, but no new charges have

been laid. Helen Brown

reports. Glimpses of

Victoria's longest serving prisoner are rare and this

evening Derek Ernest Percy was

back in custody after eight

hours of police questioning

over several unsolved child

murders. I think the piece of

information that came to us is

significant information and one

that, it may lead to many, many

matters being dealt with. But that's a that's a matter of

investigation and over

time. Percy's been in prison

for 38 years. He was placed in

indefinite custody after being

deemed mentally unfit to enter

a plea over the 1969 murder of

12-year-old Yvonne Tuohy at a

Victorian beach. This morning

police brought Percy in for

further questioning. In

relation to some of the most

puzzling and sickening crimes

of the 1960s. He's going to be of the 1960s. He's going to be

asked about a set of different

offences. At this stage until

he's interviewed I'd prefer not

to say. It does cover offences

committed in NSW, in South

Australia and this State. In

1965 two girls were murdered at

Wanda Beach. Elizabeth Schmidt

lost her daughter. I hope it

comes to an end. It is long enough. The parents of enough. The parents of Sydney

toddler Simon Brook have been

grieving since 1968 wanting to

know who violently killed their

3-year-old son. I'd like to say

how grateful we are to the

police and the judicial system

for pursuing this business for

so long. Today, NSW police

travelled to Melbourne to make

further inquiries. Also of interest to police is interest to police is the disappearance of the three Beaumont children from

Adelaide's Glenelg Beach in

1966. And the abduction of

Linda Stilwell at St Kilda in

Melbourne in 1968. The horrific

nature of the crimes, the fact

that they involve children is a

great motivating factor for

police and they don't give up on such crimes very easily. Detectives from

easily. Detectives from

Victoria's Cold Case Unit this

morning asked the court for

permission to quiz Percy after

finding materials in a storage

facility he's kept since the

1970s. It's a set of taernld

videos, around other documents,

hand-written notes a whole set

of material that we've aware

aware of has been in that

location for 20 years. Police looked

looked through 35 boxes with

some of the material believed

to be about sex crimes. Police

have probably had lots of

pieces of puzzles for a long

period of time and maybe

they've just got the vital

piece of evidence tore lead

they needed. Percy has been

questioned before about the

unsolved murder. Detectives

say their investigations will continue.

If you'd like to look back at

tonight's interview forum with

Rod Cameron and Michael Kroger

or review any of Lateline's

stories or transcripts, you can

visit our website. Virginia

Trioli will be in this chair

tomorrow night. For now, here's 'Lateline Business' here's 'Lateline Business' with

Ali Moore. Thank you, Tony.

Tonight - losing on the horses,

the cancellation of the Spring

Racing Carnival in NSW hits

gambling companies. The

majority of the money coming

into those Tabcorp

Tattersall's, 35% is actually

coming into their turnover

based on the back of the spring carnival. Timber troubles -

Gunns grapples with profits, takeovers and delays takeovers and delays in

building a pulp mill. I think

the pulp mill is the

opportunity if it is approved

for Gunns to capture far more

of the added value process in

turning plantation timber into

wood chips and then the key

being able to turn it into pulp

for use in the production of

paper. And, let the good times

roll, signs the economy

continues to boom. Business investment is going to keep investment is going to keep

going. When you look forward

you would expect to see

fundamental strength in the

domestic economy.

First to the markets and

investors step back into action

today, their confidence boosted by rebound on Wall Street

overnight. The All Ordinaries

retreated from earlier gains

but closed up 0.5%.

but closed up 0.5%. The ASX200

added 35 points as higher metal

and oil prices boosted mining

and energy stocks. The rally

continued on Asian markets. In

Japan the Nikkei rose 1%. Hong

Kong's Hang Seng climbed 2%.

While in London fragile

investor confidence is limiting

the FTSE's gains. Shares in

Tattersall's and Tabcorp have

taken another beating on

confirmation the equine confirmation the equine flu has

spread to Royal Randwick in

Sydney. It completed an

unhappy double for Tattersall's

today with the company's profit

report falling short of

expectations. Neal Woolrich

reports. It's been an eventful

first year at the helm for Dick

McIlwain, overseeing the merger

of Tattersall's and UniTab and

dealing with the impact of more

smoking bans. Now the company

is facing a new challenge with confirmation that confirmation that equine flu

has spread to Sydney's thoroughbred racing

population. It couldn't have

come at a worse time with the

spring carnival coming up, the

majority of the money coming

into those Tabcorp

Tattersall's, 35% is actually

coming into their turnover

based on the back of the spring

carnival. With that coming up,

with the fact that Randwick

looks like potentially being

shut down, it is now all about

the duration of this. That news the duration of this. That news

overshadowed Tattersall's first

profit report since the UniTab


Dick McIlwain says comparable

earnings for the two companies

are up by 15%. I'm pleased with

this business. It's performing

the way a business should.

We're not into profitless

prosperity or growth at any cost, cost, good solid sustainable

growth so as we go into the

future our shareholders can

take a view of relative

safety. The result was below

analysts' expectations and that

saw Tattersall's shares tumble

by 10%. Shares in Tabcorp were

off by 4%. Despite the threat

that Sydney racing could be

interrupted for several months,

Dick McIlwain remains

optimistic. We're now just

travelling just fractionally behind last year. I behind last year. I think it

got over 1% over last night and

it'll improve today and Friday.

Once racing comes back on

Saturday in the southern States

we'd expect to see growth

returned, because we had been

growing quite strongly. Tabcorp

and Tattersall's are looking at

overseas meetings to put more

racing content in front of

customers. Victorian

authorities have scheduled an

expanded meeting in Melbourne this weekend

this weekend but analysts warn

that the city Spring Racing

Carnival remains under

threat. You've got to think

there's a risk at the moment.

Risk travels incredibly fast.

We're learning more about it in

the broking industry because of

the importance of it on

particular stocks. What we're

finding is the fact that if

there is one outbreak it can

effectively shut down the industry. Keith Thompson says

the current situation is like a the current situation is like a

continuing downgrade which some

estimate could cost

Tattersall's and Tabcorp up to

1% of annual earnings for each

week it drags on. Timber

company Gunns says it remains

committed to building a new

pulp mill in Tasmania's Tamar

Valley despite the Government

shelving any decision on the

controversial project for at

least six weeks. In an

eventful day for Gunns it also

announced its move to majority announced its move to majority

control of rival timber

operator Auspine and reported a

full-year profit increase of

just 1%. Andrew Robertson

reports. Gunns may be in the

line of fire, but the company

is determined to construct a $2

billion pulp mill in the

picturesque and largely

untouched Tamar Valley in

Tasmania. With the federal

election around the corner the

pulp mill has become a national political issue which is why political issue which is why the Government is delaying

approval. From a business

point of view, though, the mill

will be a key driver of profit

growth in the years ahead.

Toby Grimm covers Gunns for

stock broke ers Baker Young

Stockbrokers. I think the pulp

mill is the opportunity if it

is approved for Gunns to

capture far more of the added

value process in turning

plantation timber into ?p? wood chips and then the key chips and then the key being

able to turn it into pulp for

use in the production of paper.

Up until now Gunns have had to

effectively ship woodchips to

offshore pulp mills for that final stage of

processing. Environmental

groups are calling for the pulp

mill to be built where else but

Toby Grimm believes the Tamar Valley location is crucial to

the mill's viability. The costs of moving an of moving an operation like

that would be very large indeed

and that would be warned by the

company and would impact the profitability of that project

for years, possibly a decade

going forward. As the battle

over the Tamar Valley pulp mill

rages Gunns has released

full-year results after the

market's close. Tough competition in its forest products business and

disappointing sales of managed investments saw earnings investments saw earnings up

just 1% on an 8% increase in

revenue. Gunns is paying a

reduced final dividend of 8

cents a share. The other

battle the Gunns is fighting is

on the takeover front where

it's announced it's finally

moved to majority ownership of

Auspine. Its offer of $6.15 a

share values Auspine at $332

million, but with million, but with Auspine's CEO

Adrian de Bruin owning 30% of his company's shares and

refusing to sell, Gunns will

have to settle for a lot less

than full ownership. The

control of Auspine for Gunns

will mean increased scale,

better profitability, lower

risk through diversification of

both geographic assets as well

as the actual types of

plantations that the company manages. Without a change of manages. Without a change of

heart by Adrian de Bruin, the

best Gunns can hope for is

about 65% of Auspine, which

means many of the synergies

from turning the two companies

into one won't be achieved.

The US subprime mortgage crisis

has claimed its first

Australian victim with a specialist hedge fund going

into provisional liquidation.

Basis Capital's Yield Alpha

Fund which specialised in corporate and structured corporate and structured debt

is seeking bankruptcy

protection in both the US and

Britain. Equity market

volatility has seen its

creditors, mainly large

investment banks, demand their

money back. Court documents

show it has assets and

liabilities of more than $100

million. Earlier this month

Basis warned the fund's losses

would exceed 80%. For a closer

stock market I spoke look at today's action on the

stock market I spoke earlier

this evening to Martin Lakos of

Macquarie Private Wealth.

Martin Lakos, we seem stuck in

a cycle, we're down one day and

then the bargain hunters move

in and we're up the next? It's

almost viewing a graph of an

earthquake Ali where you have a

major shock and a number of aftershocks and it steadies

out. We're certainly in the aftershock period at the moment

with huge volatility, really. Wall Street up

Wall Street up and down 250-odd

nights the last two nights.

That's going to impact our

market. What's certainly

helped is as we mentioned in

the past is the reporting

season. That's been doing

quite well. The resources

sector held up very well. BHP

closed up 69 cents to 37.75.

It was 10 cents off its highs.

points The overall market was up 89

points at its best this

morning. Couldn't hold it and

we close off about 34. A few

stocks that's Neville impacted

the market or that index. It

was largely the banks were

weaker, the positives were

obviously Woolworths and QBE

obviously Woolworths and QBE

which have reported terrific

results and the market is

rewarding those results. Let's

look at the banks. Of course

the ANZ issued a trading update

today. To what extent did that

help pull the

help pull the markets back? The

banks came off from the time

that trading result came out.

ANZ itself was down 41 cents to

28.59. It starts to put the

market on alert a little bit.

The earnings growth numbers for

the banks posted by analysts

across the market is still

looking for low double digit

numbers going into 2008. We

may now find over the next few weeks as a result weeks as a result of ANZ's

update that analysts will start

to par back growth numbers.

We'll have to wait and see how

that looks in the next couple

of weeks. Only one more day of

this reporting season. Overall

it's been a pretty good one and

as you said, that of course has

helped the buying? You'd have

to say overall it's been solid,

although the statistics with

regard to earnings growth shows

up a few holes. I've got

up a few holes. I've got a few

statistics from our strategist.

Interestingly for this year just gone before the reporting

period the market was looking

for about 15.7% earnings

growth. It's coming in below

that at 14.9, just

marriaginally, but the make-up

is interesting. The industrial

sector pre-reporting period was

looking for about 12.5%

earnings growth, that's barely

like it's actually three months ago. It looks

like it's actually come in at

8.6. A fairly significant

widespread amongst the decline there. It's very much

industrials. Resources pretty

solid, still looking for about

24% earnings growth coming into

the reporting season and it

held that. And the banks again

up until today's ANZ report

were going for about 11.5%

going into the reporting

season. It's pretty much held

that. Overall, what stood out in these in these results? I guess

there's key features we have to

highlight as a result of this

reporting season. One is that

the results have been

highlighted by lower tax rates.

Earnings have been boosted because companies have been

using lower tax rates and

secondly their interest expense

has been higher. Quite

significantly so. In the last six months we have been

forecasting 15% growth in

interest expense. It's come in

at 30%. It would at 30%. It would certainly

signify that the companies potentially have been returning cash to shareholders and

gearing up a bit more. It may

be, in fact, a reaction by

companies to that huge amount

of private equity activity soar

over the last six months. It

may have been a defensive

mechanism by companies.

Gearing is up and hence

interest expenses are up.

Really, over the last three or

four years we've had stellar

reporting periods growing at

20, 22%. This

20, 22%. This time round we

haven't seen really significant

positive surprises. Don't get

me wrong, there's been great

results, notably QBE, Lleyton,

Worley, Woolworths and BHP.

But on the negative side, the

notables have been ABC learning

centres, Rio, dino, Telstra and

Billabong. They have come in

with negative surprises and

fall on the those share prices continue to

fall on the back of that. No

significant positive surprises

and very high expectations.

Martin Lakos, thanks for

joining us. My pleasure.

On currency markets, ongoing

worries about the US subprime mortgage mess continue to

affect the Australian dollar.

Another sign of a strong economy, business investment in

the last quarter soared by more

than 6%. Investment rose as

miners continued to expand and infrastructure projects were miners continued to expand and

completed. All this growth has

also seen an increase in

imports, pushing up the current

account deficit. Brigid

Glanville reports. The mining

boom continues to support a

robust Australian economy,

pushing up business investment

in the last quarter. Capital

expenditure rose 6 .3% to $21

billion, well above market

expectations of a 2%

expectations of a 2% rise. The

more interesting part of the

business investment numbers are

what you're going to get next

year. The statistician does an

expectation survey and that's

pointing to strong growth in

business investment over the

next year, probably somewhere

between 10 and 13% which I

think is much stronger than

most people were expecting. The

high level of business

investment is expected to push

the country's growth the country's growth rate up to

around 0.5% for the last quarter. So it does if you like

raise the speed limit for the

Australian economy over the

next couple of years and that

means that Australia can go

more rapidly without generating

inflationary pressures. But the

strong business investment has also pushed the current account

deficit up, due to imports

rising. For the June quarter

the debt has increased slightly

to $16 billion. The rise in to $16 billion. The rise in

the trade deficit is also due

to the drought which has slowed

growth in agricultural exports

and coal and metal shipments

have declined due to delays at

the nation's ports. You'd expect the current account deficit to actually improve

because of the strength in

commodity prices. I suppose

what we're seeing here is one

offset to that is the offset to that is the drought

and the second is that the

domestic economy is so

strong. Despite the high

current account deficit the

economy isn't expected to

weaken. Economists such as

Alan ouster now predict

business investment will

continue to grow as much as 13%

in the next year. What it means

is that a domestic economy is

still strong. It's saying that

business investment is going to

keep going. When you look forward you

forward you would expect to see

fundamental strength in the

domestic economy. The latest

gross domestic product figures

from the last quarter are due

out next week. The correction

in the Australian sharemarket

has effectively wiped about

$500 million off the final sale price of West Australian gas

company Alinta. The new owner

Babcock & Brown today revealed

the flagging share price would

mean some Alinta shareholders will receive will receive less for their stock than they first thought.

Dianne Bain reports.

Shareholders are describing the

sale of the nation's biggest

gas company as one of the

messiest deals in Australian

corporate history. And today's

news that the offer was less

than onlially thought hasn't

appeased their anger. They

finished up with something that

was a dog's breakfast. It was

all over the place. Alinta shareholders voted to sell the gas company to

gas company to a consortium of

Babcock & Brown and Singapore

Power earlier this month. At

the time they weren't sure how

much money they had receive for

their shares because the offer

was to be finalised on 22

August. In July, shareholders

looked to be paid an average of

$15.91 valuing the deal at $7.9

billion. Today the deal's only

worth $15.12 a share worth $15.12 a share or $7.5

billion. As in many takeover

transaction there's a lot of

activity that takes place

behind the scenes and some of

our shares in particular given

that it has involved script

consideration has had some shorting. Shareholders have

several different ways of

selling stock. Most will take

on a mixture of cash and shares from Babcock & Brown

businesses. Analysts say the

share returns will vary share returns will vary between

$13.43 and $15.42. But some

shareholders say they're still

in the dark. Basically we still

don't really know what we're

getting. Alinta as we know it

will cease to exist after tomorrow. The company will

close its books for the final

time and its trading name will

be removed from the Australian

Stock Exchange. Well, heading to to Australia or here already in

the run-up to the APEC leaders'

meeting is a raft of senior

financial and business leaders.

Among them the group expective vice-president of the Bank of

China, China's second largest

bank. Dr Zhu Min has worked

for the World Bank in

Washington before becoming a

key player in China's financial

services. His visit to

Australia comes at a time of

increasing discussion about the

role of China in role of China in the global

economy. It's more than $1

trillion worth of foreign

currency reserves and growing pressure on Beijing to allow

the country's currency to

appreciate. To discuss those

issues, Dr Zhu Min joined me

from our Melbourne studio

earlier. Dr Zhu Min, welcome

to Lateline Business. Thank

you, thanks for the

invitation. Let's start with

the global credit crunch and

the global credit crunch and

the fallout from the US

subprime mortgage market. How

much worse do you think it's

going to get before it gets

better? It's not over yet, it's

very clear. The peak was end

of year 2008. We're just in

the middle of that. We don't

know how deep the water it is.

But I don't think it will disturb the whole disturb the whole market

because both the US Federal

Reserves and the European

Central Bank are determined to pour liquidity into the market

and stabilise it, so it will be

fine. It will take some time.

I would expect things going on

for the next 12-18 month before

we really touch the base. If we

can look at China's economy,

China has massive foreign

currency reserves, $1.3

trillion and trillion and a massive trade

surplus, what sort of issues

are they causing domestically

in China? We see huge surplus

in China which is not good news

for us. A few things, number

one it causes prejudice on

monetary policy. Every dollar

we're paying we have to issue

roughly 7.6

roughly 7.6 into the market.

It's really... the Chinese

market. We don't want to see

that. But the real issues you

will see the Chinese

productivity grow very strong.

Make Chinese products are very

competitive in the market. The

demand is huge. We actually

try very hard to slow down


exports. 30% groceries every

month down to last month it's

only 20%, China cutting tax

subsidies to exports and

increase export tax, try to

slow down the exports. I think

that's very good for China, for

the global financial. You talk

about slowing exports. Of course what most in course what most in the West

want China to do is to revalue

the currency. That's also the

process. There are two sides

of the story, one side is China

doing fine and the gradual

approach and the other side say

we should have... they talk

about 27% and the appreciation

jump. I don't think a jump will save the world

will save the world or do

anything good for anyone else.

A gradual approach is the way,

because when it's approached in

a very dramatic way, all the

countries were facing a price

increase. Second ly there was

another unbalancing, a

widening, because the exchange

rate changed. I do believe the gradual

gradual approach is good things

for everyone. Dr Zhu Min

there's gradual and there's

gradual. Gradual in Chinese

terms is very very

slow? Depends on how they're

defined. Accumulation is 9%

already roughly in two years.

It's not too bad. Well, if we

return to that huge amount of

money in the Chinese economy which is encouraging which is encouraging the stock market fuelling the stock

market boom, it's encouraging

overinvestment, how do you

stimulate domestic demand

which, of course, is the answer

to that massive

liquidity? There are two

things. Number one Central

Bank tried to reduce liquidity. Increased the bampg's reserve

ratios. It's five times

already. 11.5, it soaked up a

lot of liquidity from the

system. Raised interest rates

four times already. Those

things took a lot of liquidity

from the market and we need to

work together. China is

cutting the import tax to make cutting the import tax to make

import much stronger in the

past than ever before. Meanwhile, more important

things, you want to make sure

you provide social securities

and low-cost education, health

care, those things, to give the

people a more comfortable

environment so people will be

able to consume more. Good

news, consumption grow very

strong. In the first half, 15.6% 15.6% consumption growth which

is very strong. On interest

rates as you just said they

have been put up to soak up

some of that liquidity, but

many would say they've just

been nudged higher. Do you

think we've seen enough nudge

organise do you think we'll get

more interest rate increases? I

think four times raise in four

month social security pretty

strong. I think the Central

Bank will wait and watch for a Bank will wait and watch for a

while and see how things go.

Whether the US Fed will cut

interest rates or stay for a

while it's not clear. This is

a fwlobl issue and given the

important role China played

today -- global issue. The

monetary policy should work

together for both sides. In

that sense I think China will probably wait to

probably wait to see how the

early sessions, the subprime

issues come down. The amount of liquidity in the Chinese

economy has helped fuel the

stock market, which despite

volatility continues to reach

record highs. Do you think

China's stock market is a

bubble waiting to burst? The

market goes too fast.

market goes too fast. The

typical case in history is

very, you really don't see that

type of thing happen in the

past. Roughly 18 months, a

300% increase. This is too

strong. The real question is

whether you have performance in

the whole stock market? The

question is not clear. Some

companies are doing well, some companies are doing well, some

are not. This is liquidity

driven. Make sure the market

go in the reasonable way, I

think is important and also

it's an important challenge. Do

you think that can be done, though, or do you think this is

a bubble about to burst? I

think it can do it. The key

issue is you want to make sure

no money... you can do

no money... you can do it. You

want to make sure money from international into the stock

market. There's larger ways

you can get that money. So far

it's pretty OK though. I will

say overall I don't think the

market will go bust. Dr Zhu

Min, many thanks for joining us. It's a pleasure, thank you.

A look at tomorrow's business


A look at what's making news

in the business sections of

tomorrow's papers. The 'Age'

says investors in Basis

Capital's Yield Alpha Fund are

unlikely to get their money back. The 'Australian' leads

on the same story. The 'Australian Financial Review'

looks at next week's APEC

meeting and says Central Bank

cooperation to strengthen bond

markets will be discussed. And

the 'Sydney Morning Herald' says investors

says investors were quick to punish Tattersall's profit

announcement. The FTSE is down

5 and the Dow Futures are down

89. I'll be back on Monday.

In the meantime, if you want to

watch any of our stories again,

you can log onto our website.

To send us your feedback,

please send an email. I'm Ali Moore, goodnight.

Closed Captions by CSI

'19' BY PAUL HARDCASTLE PLAYS SPOKEN: In 1965, Vietnam seemed like just another foreign war, but it wasn't. It was different in many ways, and so were those who did the fighting. In World War II, the average age of the combat soldier was 26.

I-I-I-I-In Vietnam, he was 19. MAN: Gimme an 'F'! Crowd: F! U! Gimme a 'U'! C! Gimme a 'C'! K! Gimme a 'K'!

Fuck! What's that spell?


in the United States, There's only one party and it's the war party. branches of the government And it's supported by all three

and a lapdog media, you know. # Huh! (Sings) # War! # Yeah, yeah, yeah # What is it good for? say it again # Absolutely nothing, # War # Huh # Whoa, yeah # What is it good for? come on # War is something that I despise

# For it means the destruction of innocent lives # And thousands of fathers and mothers cry # When their sons go off to fight, to give their lives # I said war