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Good morning. Good morning and welcome to the program.

I'm Whitney Fitzsimmons -

Magna gets Opal. General

Motors finally agrees to

off-load its German unit.

Steady as she goes, China

seek assist stable economic

policy. The Gordonstoun

pumps out gas deals. Chevron

counts the supply contracts.

Those stories shortly.

I'm joined by Stephen

Craft from Bell Direct.

Serious markets surged

overnight in Wall Street. We saw Wall Street up almost

from the off dipping a bit

later in the day but it

closed at the day's highs so

the Dow Jones up 0.8 of a per

cent but again the Nasdaq

stood outputing on another stood outputing on another

1.1% and the S&P 50 also up.

Positive company news.

Problem for and gamble

announced higher sales

forecasts and they gained

around 4% on the day. Texas

Instruments up on a profit

ungrade. Monsa fl, to

announced a downgrade and

were punished with nervous

investors punishing stocks

that may under-perform down that may under-perform down

5%. Did Barack Obama's speech

on health care have any

impact on trade? It is interesting. You would have

to say it was conciliatory.

There were aspects for the

Democrats and the Republicans. We saw managed

health stocks up. Significant

marks Health Net and Human

Australia, were all up 3% to

4% but we will be will see

that play out Tasmania

details of the ban become details of the ban become

clear. Let's move the UK.

News from the Central Bank

there. What can you tell us?

The bank ever glaze looking

to inject yet more capital in

the UK economy with a plan to

buy ?175 billion worth of

actionest which was a

positive for the markets

overnight. The FTSE climbed

above that for 5000-point

resistance level but the bank

ever England announced ever England announced a

fairly cautious outlook

saying that the downturn

still had some way the play

out which is the reason for

the continued stimulus over

there. How will Roo regional

markets trade today? We look

for a positive open helped by

higher oil prices and

Chevron's announcement from

more sales from the Gorgon

project should help. The Australian futures up Australian futures up 42

point but the Nikkei may pull

back after yesterday's strong

gains, Nikkei futures down around three-quarters a per

cent. Let's look at what is happening with currencies and commodities

commodities -

General Motors has finally

agreed to sell its European

unit Opal to Canadian company

Magna. Opal includes the

and there are now concerns British car company Vauxhall

about what will happen to the about what will happen to the

workers at its two plants. It

is the green light for a big

deal in the car industry.

General Motors has sold Magna

a majority steak in its

European business but that

raises a number of questions

for the British arm Vauxhall.

Workers leaving Vauxhall's

Luton plant after their shift

today were not clear what it

meant for their jobs. This

is a disappointment for us, a new

new company, you know, I

don't know what will happen.

Nobody knows. As long as

there is a future in Luton

that is all that matters. A

Bate move because that is

what the Germans wanted,

Magna said they are going to

save guard the German

plant. Magna is a Canadian

car plant business with a

plant in Austria which has partners teamed up with Russian

partners to buy Vauxhall and

the other European General

Motors business Opal. Magna

says it is committed

production of the Astra at the Ellesmere Port plant and

a new model will be launched

soon but when it comes to van

production in Luton there is

less certainty A deal to

build for Renault runs out in

2 30 13 and there are no

guarantees beyond. That union guarantees beyond. That union

leaders say if Magna expects

financial aide if the British

Government it must give

commitments on jobs. If they

want British taxpayer money

by the hundreds of millions

which they will need to keep

this going and cut losses it

has to be on the basis of

British jobs and not

supporting other countries workers. Sales slumped in every every major market which

caused widespread job cuts.

In June General Motors filed

for bankruptcy and had to be

bailed out by the US

Government. It has since been

trying to off-load its European operations. Today a

deal with Magna was

finalised It does provide

clarity. Now we have that

clarity I would say to the work force the Government

will be batting for them for

their interest for their

plants in the discussions we

the weeks will continue with Magna in

the weeks and months

ahead. For workers here there is the reassurance somebody

wants to take over their

uncertainty about what that company but there is real

means in the longer term. In

a landmark case for Hong

Kong's securities regulators

a former Morgan Stanley

banker has been convicted of

insider dealing. He was found

guilty of buy incorporated 11 million worth of

million worth of shares in

China's Specific Resources

while visiting company on the

purchase ever an oil field.

He sold the stock for a $4.3 million profit after the deal

was announced. He will be

sentenced later. The Chinese

Premier Wen Jiabao says his country's economic recovery

is not zabl and the country

will not alter its policy

direction until the time is

right. The premier made the

comments to those attending

the economic forum in Davos

and confirmed the company's

growth this confidence it can reach 8%

year. TRANSLATION: We will

continuously priorities the

mission of stabilising the

economy and finally and

continuously adapt lose

monetary and active fiscal

policy. We should also fully

implement and continuously

improve policies and discover

and resolve new problems in a

timely manner. But he did not

offer any appreciate policy

initiatives or indicate

additional Government you of

outlays beyond the current

stimulus spending. His remark

are likely the reashire

Chinese market investors and

others concerned that Beijing

is planning to slow its economic stimulus. China posted posted 7.9% growth in the

second quater of the year.

The Premier's comments come

ahead of a raft of Chinese

data due out today that will

be closely watched by

analysts globally. Here to

tell us what we can expect is

Shane Oliver chief market

economist at AMP Capital. Why

is China's economy being

watched so closely? For

several years it has been

several years it has been the

biggest single contributor to

global result. It results to

20% of the activity and it

has been the fastest major

economy to recover from the

downturn so the Chinese

economy is incredibly

important now for the global

economy and some would say it

is becoming more importanton

US. Will the comments

overnight from Premier Wen Jiabao about

Jiabao about maintaining

economic stimulus boost

sentiment on the mainland and

globally? It will help. Over

the last month this has been

debate about the intention of

Chinese policy makers given

some moves by the regulators

to tighten on the flow of

liquidity and restricts money

flowing into the share market

but there has been a consistent measure coming out

from the key policy makers from the key policy makers

including the Premier that

they will maintain policy

until they are sure that the

recovery is sustainable so

that will be a boos to

confidence. What about IPOs

do you think we will see more

of those think it market as

well? It is possible we L

there is an issue about the

regulators will do. At times

they restrict the issues of they restrict the issues of

IPOs where there will be a

dampener. It looks like they

are on their way to 9% in the

current quater and gains that

backdrop I think we will see

more IPOs coming forward

which is a dampener but the

broad trend will remain up in

the Chinese share market. We

will see trade data released today. How important are

exports for the domestic

economy? Important but the key thing key thing is they continue to

show signs of stabilising or

edging up. We do not need to

see a return to the booming

export figures China was

seeing a few years ago. I

think the Chinese export

figures will be down 20-odd%

from a year ago but if you

look at the monthly numbers

they have been showing signs

of stabilising or gradually

starting to recover which is

consistent with exports

coming out of other markets around the world.

around the world. I think the

key is the domestic demand

data out of China where the

growth rebound has come. From

fixed as yet investment we

think will remain at 30%

annual growth rate. Retail

sales growing around 16% and

we will probably see another leg up in industrial production growth so now the

key for China is domestic

demand which will remain strong. Looking broadly at the China story do you think the China story do you think

that the country has the

potential to thrift world out

of the downturn? On its own

it is not going to drag the

US and Europe up but it does

help. If it is almost 20% of

world GDP in world parity and

growing at 20% is a massive contribution

contribution to global growth

and while its impact on

Europe is limed, its impact

on Japan and Australia is

important. One of the reasons

Australia has come through

the downturn relatively

unscathed, it has been a

serious slow-down but we have

not had a recession, one of

the reasons is the continued

strength in China and that

flowing through to demand for

Australian raw materials so

my feeling this is the Chinese recovery is Chinese recovery is

incredibly important for the

region and it is a big contributor to global growth

but not enough on its own to

pull the US up. We have run

out of time. Thank you Shane

Oliver.

US oil giant Chevron has

signed a $60 billion signed a $60 billion deal to

supply natural gas to Japan

and South Korea from its

Gorgon project in Australia.

Last month Petro China signed

a deal to buy $50 billion of liquid natural gas from

Gorgon and the new deal has

fuelled prediction thanks

Australia could become the

world's large yes lot

supplier of liquid natural

gas in the next decade. What

a month for Australia's LNG industry. Last industry. Last month saw a

$25 billion sale to India and

a $50 billion export deal did China. Chevron-Australia

signed deals worth $70

billion over 25 years to

supply LNG from the Gorgon

gas fields off the West

Australian coast to Japan and

South Korea and the growth in

Australia's gas industry

shows no sign of slowing.

Date is the world's

sixth-largest supplier within 10

10 years it could be second

maybe first. At an oil and

gas conference in Darwin

hundreds of delegates heard

Australia is well placeed to

compete with Middle East

suppliers for business in the

Asia Pacific region. I.d npex

says it is on target to ship

gas from Darwin to Japan in

2015 from one of Australia's

largest reserves off the West

Australian coast. The Darwin Australian coast. The Darwin

plant will have the capacity

the supply around 10% of

Japan's projected demand for

liquid natural gas. The

company plans to spend $20

billion building an 8 50

kilometre sub sea pipeline an

processing plant in Darwin.

Further north the Greater

Sunrise field is the largest

in the Timor Sea and jointly held held with Australia. The

company is press foing for

gas to be processed on its

shores. It is only fair that

we develop from the struck

struck if the Greater Sunrise

liquid natural gas plant in

Timor. The joint venture

developers say the decision

on where and how to process

the gas will be presented to both governments this

year. Despite the huge Gorgon year. Despite the huge Gorgon project relations have been strained between China and

Australia recently. The

arrest of Stern Hu and other

Rio Tinto executives is just

one example but have business

conditions really changed?

One man who knows is Clinton

Dynes BHP Billiton's most

senior person in China for 30

years. He told us that new

rules and regulation haves

sprung unas China has become

more engage would the rest of

the world. The rules the world. The rules are

relatively clear enough. You

have to remember that China

has legislated an enormous

amount in the last 230 years.

In the 8 30s when the reform

start there were only four

laws on the book. I'm not

sure what the latest count is

bit is up to 20,000 and associated regulations. It

does not make it easier? It

is more complex but the other

side is the rules are there

but there have been so many

rules so fast it is hard for

everybody to keep up with

what is there and there is a

culture coming to terms with

the rules and a entire

bureaucratic and legal and

court apparatus having to

build capacity to keep up

with interpreting the rules

and bureaucratic apparatus

doing the same thing so it

takes time. Former BHP Billiton China president speaking the

speaking the the ABC.

Unemployment in Australia

remained steady last month

but behind the headline there

is a concerning trend. Nearly

30,00 jobs were shed in

August and the Government warns from the trend

continues the jobless numbers

will not stay low for much

longer. Economic turbulence

buffeted in tread yesterday

travel. Lay offs

travel. Lay offs loomed but

instead of sending staff

packing the call was for self

sacrifice. 73% of our

Australian staff did

sacrifice for six months. Sales picked up and

so did wages and new a bonus.

Not every Australian Business

is winning. In August

employers slashed for than

27,000 jobs. The unemployment

rate would have jumped but because people because people stopped

looking for work its stayed steady national life. It rose

in Victoria, South Australia

and Tasmania, dropped in the

resource states and was

stable in New South Wales and

the territories. We e pekt over - between now and the

end of the year there will be

a net loss ever another

70,000 jobs which will make

it hard for the Reserve Bank

to justify raising interest rates. One sex numbers, two

very different interpretations. When we interpretations. When we

consider the troubleing

aspects of the figures they

point to the need to continue

to support economic activity

through economic stimulus and

to continue to support the

jobs of Australians. If the Government continues to

spends record levels 67 money

that will put upward levels

on interest rates, there is

no average.. The Coalition

does not like deficits but it does not like deficits but it

has blocked plans in the rebamplts Labor will reintroduce the measure in

three months. If it is

blocked again the Government

will get a double dissolution

figure and 'Insiders' insist

they are willing to use it so

stand by for more debates

about the stimulus and Julia

Gillard's handling of

it. Australia has seen its

first major public listing

since 2007. Online since 2007. Online auto

trader carsales.com made its

market debut after a $160

million equity raising and

has provided hope that the

market for new listings is

about to be rekindled and

comes as Australian retailer

Myer plans its IPO. 5, 4, 3,

2, 1. There are sign this

the appetite for public listing is returning listing is returning with carsales.com hitting the

boards at a 12% premium to

its issue price. While the

economy remains delicately

poised the Australian share

market has enjoyed a 45%

rally from its mare than low.

Carsales.com's CEO says that

means the time was right for

the company to make its

public debut. I guess we

have been looking to provide

liquidity and transparency liquidity and transparency to

our shareholders we have had

since early in 2000 and we

looked last year and the

market was not right for us

and we felt the market was

going to come back and it has

and we think our timing has

been good so far. The over

was fully described without

much difficult and it is now

business as usual for the

firm. In 200 7 as the market

climbeds to record thigh Australian Stock Australian Stock Exchange

raised almost $20 billion from initial public

offerings. In the 20 months

since there has been just $3

billion worth of IPOs There

appears to be pent-up supply

if the private equity sector.

The old game of heavily

gearing up buying out a

business, working it hard and

relisting at a profit really

took a bit of a kick in the

teeth with the credit crunch

t cost of debt blowing

out. The next private equity

as yet widely tipped to be

refloated is Myer. In 2006

the chain was sold by the

Coles group to a consortium

of investors. There is that

amount of cash prepared to

come back into the market. We

have seen well in excess of

that raised over the last 6

months in secondary offers

and we still see excess cash

built up on the sidelines in

the retail sector and the institutional sector. But

Sean phone on the says sit

distoy say how well a Myer

float might go given the retail sector's true health

has been secured by the

effect of Government stimulus

payments. Stofr passion

Over the past week we have

seen most major currencies

rise against the US dollar.

The yen and New Zealand

dollar have performed well

and the Australian dollar in

particular has risen strongly against the greenback which

has ignited debate about had

the Aussie will reach parity

with the US dollar in the Good morning

Good morning John Noonan.

That Aussie dollar has been a

stand out against the

greenback R we headed for

parity? Not likely in the

short-term but the seeds are

being planted for such a

move. I think it is

inevitable that the US dollar

will continue to lose value

as the Fed keeps interest

rates low and continues to

print money and as Central

Banks around the world

diversify out of the US

dollar. It is inevitable that

xwhodty prices have moved

higher as China and other

emerging market nations fire

up their domestic economies,

they will need natural

resources so that is a

platform for the Aussie to move the parity and it could

be a debate for 2010. It

appears investors risk

appetite is taking hold as

they search for a higher

yielding as yet. Would you

say that as well? True. It is quite extraordinary. There

noise shortage of

commentators saying that

investor risk appetite or investors are running ahead

of themselves that the as yet

markets have to correct that

the economic fundamentals to

do not back its up and

Central Banks around the

world and fine ministers are

warning that the worst is not over and there are tough

times to come. That has not

stopped investors, investors have

have a strong risk appetite,

they see the glass as being

half full and you are seeing

evidence in the equity

markets, commodity markets

investor risk appetite alive

and well. Interestingly we

have seen the yen and the New

Zealand dollar perform

exceptionly well L that continue?

Yes, that is the strange bed

fellows if you like, normally

the Kiwi dollar and the the Kiwi dollar and the yen

will go in opposite direction

when risk appetite is highs

the New Zealand dollar does

well. When risk appetite is

lower there is risk aversion

and the yen does well. But

this is because of the

stronger risk appetite and

the yen US yields are coming

down. We see the 90-day rate

in the US is lower than the

90-day rate in Japan so

Japanese investors are

shunning the US assets

because of the very low

yields there and so it is

really a yield play in Japan

whereas it is in a investor

risk appetite in New

Zealand. Looking at the

comments about the continued

weakness in the US greenback,

during the week we heard that the United Nations is calling

for a new glow bat currency

to fix confidence. What do

you say to that? That is an issue that issue that does not go away.

That is because we have an enormous imbalance between

the creditor nations the

emerging market nations in

Asia and the developed

nations in the US in

particular so to get the

balance in place I think

everybody would agree a

global currency is the best option. The problem with

puting a global currency in

the short-term is the logistics logistics are extremely difficult and it will take

time so I think that it is

inevitable we will go in that

direction but it probably

will not be for a number of

years, probably at least

five. So John Noonan what do

you think the role will be

for the US dollar going

forward if the currency of

the realm will change? Lit

become a funding currency? become a funding currency?

The US dollar right now is a

funding currency. Interest

rates are solo in the US that

investors particularly US investors who see

opportunities of growth in

Asia and other parts of the

world are borrowing very

cheap US dollars and buying

more risky assets where they

can get better returns so it

has become a funding currency

already. If you do look

forward as the role of the US

dollar it will be

dollar it will be the reserve currency probably for

sometime to come but in the

future it will be one of a

make hutch of currencies that

will include the yuan, the

euro and the US dollar and

the pound and the yen but for

the time being it is the

funding currency of the

world. We have run out ever

time and we will leave it

there but thank you. My

pleasure.

if the global financial

crisis is getting you down a

vineyard in the UK has come

up with something to lift

your spirits. The Mount

Vineyard in Kent has produced

a boutique wine it calls

Recession Red. One bottles

costs ?13.50 and features a

picture of Britain's Prime

Minister Gordon Brown and

complete with instructions

that read despite choking that read despite choking

Government regulations and

taxation served with whatever

food you can afford. Far

practice publicity stunt

Recession Red has picked up several awards. The company

has white wine showcasing Alistair Darling Chancellor

Alistair Darling. Now

headlines - the Standards

reports on the Premier Wen

Jiabao's comments committing

China to stick with its current policy stimulus current policy stimulus while the 'Financial Times' quotes

the US Treasury Secretary

saying his country is

beginning to pare back its

supports to Wall Street

institutions and the

conviction of the Morgan Stanley banker for nine

counts of insider trading.

That is all for this edition

of business today. Thank you

for joining me. Enjoy your

day.