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(generated from captions) company. Hope to see you web site. Thank you for your from the region check out our more news and current affairs That is the bulletin. For

soon. This Program is Captioned

Live. Welcome to program. In business today - under

repair, Sony looking inform

restore its fading brand

butter. Harsh reality - a

quater of Chrysler's US

dealers shut their doors.

Tech protection. The new

credit card aimed at reducing

online fraud. Those stories

are coming shortly but let's

look at the market number. Regional markets could

recover some of yesterday's

big losses after optimism

returned to Wall Street. On

Thursday Japan's Nikkei was

dragged down by exporters,

miners and retailers weighed

on Australia's ASX20. In Hong

Kong investors wanted to lock

in gains after weak data out

of the US. The mainland index

took its cue from offshore

markets ending lower. Wall

Street made modest gains as investors returned to

financial and technology

shares betting the recent

rally has further to go. In

Europe stocks snap add losing

streak ending slightly

stronger For more on the

marketation I'm joined from

Julia Lee from Bell Direct.

Banks were back in favour on

all wall Finally saw a toad

session on Wall Street so we

saw a they are-day losing

streak being snapped and that

was led by the banks we saw

some bargain-hunting going on

with the banks and saw the

three-month fall the most in

2 months making funding

cheaper for the financial

company so JM more depn and

Citigroup against more than

4%, Wells Fargo rose 6.2%

after moodies upgraded its

preferred stock. CA gained

5.5% on better-than-expected

earnings announcement so in

the end the did you up 0.6%,

the Nasdaq gained and the S&P

up. How did auto stocks react

from the news from Chrysler

it is shitting some of its

dealer ships It applied to

the court to close down 789

dealer ships, about 25%,

planning to close by 9 June

in a move it says is critical

to its survive. It is trying

to align its sales to demand

which has been falls. We

heard from General Motors and

its CEO saying bankruptcy is

probable so General Motors

shares falling by 5%. It will be interesting the see how

the Japanese auto makers

react today We will have a

bit more news on the story

later. But more gloomy

numbers out of the US on the economy. What can you tell

us? We saw jobless claim

numbers and they were greater

than expected. They came in

at 600, they came in at 600 -

637,000 up from the previous

week which came in at 601,00

and higher than what

economists predicted at

610,000. Continuing jobless

rates reached a report high

for the 15th consecutive week

showing US firms are not

hiring at the moment Let's

look at regional markets.

What can we expect today? We

saw the positive lead come

through from the US so

hopefully we will see regional markets bounce F we

look at the futures not a lot

of positive moves, the Nikkei

down5 point t Hang Seng

futures down 499 point but

the Australian futures up by

11 point but we should follow

the positive lead if the US.

We saw commodity stocks do

well too Oil seems to have

tracked the lead from Wall

Street higher. Where is it

trading now? Oil having a

pretty good session. We saw

equity markets higher which

helped oil prices as well as

the stronger US currency.

Watch gold. Gold reached a 7-week high on the back of

some of the economic data

coming through in the US but

spurred on by the P P I

numbers that were higher than

expected. We saw consumer

foods up by 3% so that really

helped gold and oil prices.

Julia can you tell us what

company or economic news will

investors be looking at

today? We have a lot of

economic data out. In Japan

we will look at machine

orders and we expect the so a

drop of 4.6% in the previous

month. We saw PPI numbers and

expect at drop 3% for the

year. In Hong Kong we get GDP

numbers and we expect at drop

of 2.6% in the first qua term

Singapore retail sales

expected to be down by 7.5%

and more capital raisings

around the region as well.

That was Julia Lee from Bell

Direct there. Now we will

take a look at what is

happening in currencies and


Sony's attempts to restructure in the face of the global financial crisis

will not be enough to stop a

second straightful-year loss.

The world's second biggest

consumer electronics brand

has warned its net loss for

this financial year may widen

to $1.2 billion. Inform are

the year ended in March Sony

posted its first annual loss

of just over $1 billion.

TRANSLATION: The situation

surround sing us for this

financial year worsened since

the financial crisis

triggered by Lehman Brothers

and the economic recession

that followed. In addition

with the yen depreciation and

a plunge in the Japanese

stock market we ended up with

lower profits. It is a

dramatic turn around for Sony

which is axing 16,000 jobs an

closing 10% of its

manufacturing plafnlts its

shares dived nearly 7% before

the earnings announcement. The falling

sales of key products such as

flat panel TVs and

PlayStation gaming consoles

have impacted Sony's

competitiveness. The question

now can the brand be rebuilt

or is it too big to be fixed?

In this tokens you districts

electricity tron anybody are

the star. Crowds goat her

find the latest had it is

cameras, camcorders. The Ss

or game consoles and is here

Sony will have to battle its

way back. Here in tokens you

it is a Wild West for

electronics, you can see

Sony's PlayStation,

Nintendos, Wii and X-Box

notice it it on the same

street. We are here to see

what is creating a buzz. Here

you will find the latest in

flat screens including this

the organic light emitting

display. This man is

impressed with the Sony

offerings but he brings up

one of the company's

problems, price. Sony's product might have the same

function as others but it is

better in design he says but

the Sony logo makes it look

more expensive. This Choyes

the newiest just but

Soniama TRANSLATION: Chinese

people love Sony But not

everyone here does. I only

use iPod and that kind of

thing. I don't think other

makers are attractive In

February Sony chairman and

CEO Howard Stringer took

direct control over the Ken's troubled electronics

department. Despite Thursday's financial results

u is still the early to judge

Stringer's initial moves Too

early the say but the

direction is already set the

achieve more efficient

organisation In the end

analysts say Sony's future

will hinge on reforms and new

products. Products hike the

ones iconic Walk Man now far

behind in the portable music

player market. Products this

have that "It" quality to get

people talking and more

importantly buying. As we

heard it is the end of the

line for a quater ever

Chrysler's US dealer ships. The independent owner of

nearly 800 of the bankrupt

company show rooms have been

told they are to be closed

down. There is concerns

closures could lead to the

loss of as many as 38,00 jobs. Today this truck

delivered the news Stanley

had been dreading. A letter

informing him in cold

corporate terms his life's

work was over. His eyes are

bad so his son read it

"Your's greement will be

rejected on or about June 9"

His daughter also part of

this family business could

not condition train herself,

we have worked so hard Her

grand father founded this

place her father once dealer

of the year but as the

economy tanked sales slowed

to a crawl They have been

after us for more value, more

volume, but you cannot get

the volume if the people do

not particularly like your

car. Today similar scenes

played out from New Jersey

When you get sucker punched

you to get over the initial

blow, you might get angry tomorrow. To Michigan I have

five family members employed

here at the dealer sip so

this is devastating adding

insult to injury Chrysler

will not take its cars back

Really for us frightening

news that is we are burdened

with these cars and with

these parts. Angie dealers

launched an ad blitz claiming

the closingless cost $are

150,00 main street jobs and

millions in sales tax

revenue. Many will fell the

ripple effect The many

dealers are making money but

not good enough. Cries case

like General Motors wants the

trim a vast dealer network

left over from a buy gone

era. All those dealers crossed manufacturers,

shipping cars, training wore

woulders, providing

financing. The winners big

change like Auto Nation tmplg

biggest model is fewer stores

with high through-put, that

is a win for the consumer,

you can actually lower your

prices because your fixed cost is so much less per

vehicle Losers t little

guys, loyal to Chrysler all

those years they now feel

betrayed. They are not going

to succeed, I'm sorry. Shame

on them. Mining group BHP

Billiton may offer to help

underwrite a rights issue and

possible percent a joint iron

ore convenient tours an

alternative the Rio Tinto's

$19 billion deal with

Chinalco. Rio Tinto's new

chairman is holding talks in

London this week with the group's major shareholders

and later in the month with

Australian investors. Many in

the market are taking that as

a sign the company might walk

away whether the proposed

tie-up with Chinalco. Just

three weeks ago Rio Tinto's

new chairman faced a

shareholder revolt at the

company's AGM. Large and small investors are worried

that Rio Tinto is youring a

$20 billion US investment

from Chinalco on terms that

are too favourable and would

give a major customer a seat

on Rio Tinto's board. Despite

the concerns the Chinalco

proposal and the broader market rally has sparked a

70% recovery in Rio Tinto's

share price but in the past 2

trading days Rio Tinto's piss

has plunged 16% as investors

speck that it company might

instead be looking to raise equity through a rights

issue. Definitely seemed to

indicate the chances of a deal other than the Chinalco dealing go ahead are

increased. The market

definitely seems to be

pointing towards that Mark

Taylor says the Chinalco deal was born in a very difficult

time and markets have

improved considerably. We

have seen a swathe of companies raising equity in

the markets and there seems

to be a strong appetite from

invest doors the participate

in new capital raisings and

this has given them probably

some comfort that there are

other options that are viable

at the moment But there is

scope to modify a deal in a way that could satisfy

Chinalco and Rio Tinto's

existing shareholders. That

could include Rio Tinto

taking a smaller equity

injection from Chinalco an

raising the difference from

existing shareholders. Tim

Schroeder argue the positives

of Chinalco's investments

still outweigh the negative

and would I Lou Rio Tinto to

continue its goat strategy

It is nots attractive today

given loser equity markets

and freer capital in the debt

market and the pricing there

of but ultimately the deal

remains attractive because it

allows Rio Tinto to basically

tie up lot of loose ends very

quickly and get on with the

business that it does

best. And he says a number of

factors could be driving Rio

Tinto share price over recent days including the fact that Australia's Foreign Investment Review Board is

weeks away if making a

decision on the Chinalco

investment. Rio Tinto will

not comment on the market

speculation but another

consideration the firm might

be weighing up is the risk of

of offending its biggest customer Losing face with

the Chinese has the potential

the damage their business in

an ongoing sense for the next

10 years if China decided to

review them as an

unfavourable supplier of raw

materials But Morning Star's Mark Taylor says the iron ore

market is dominated by they

players so customers have

little choice if they want

good quality product and he

is not concerned about the

$20 million break fee Rio

Tinto would be charged if it

walked away if the Chinalco

deal I is a very small price

the pay for the flexibility

an alternative deal affords.

We are talking about a

decision that will set the

path for the company for

years to come so $20 million

is neither here nor there A

sign of the times indeed when

a $200 million write off

might be the least of Rio

Tinto's concerns. South-East

Asia's biggest telecommunications company

has flagged interest in other

markets as revenue falls than

its home market Singapore.

The company reported a 17%

drop in profit in the March

quater to $616 million.

Singtel has invested $18

billion in subsidiaries in

India Indonesia and Australia. The strong

Singapore dollar also had an

impact on earnings, Singapore

airlines has reported its

first quarterly opt rating

loss in 6 years. It posted a $28 million loss for the

three months to March much

the regions largest carrier

has reorganised its flights

wanting to increase demand

for a steel fall in air

travel The Obama

administration is planning to

toughen trading rules for

instruments like derivatives

which have been blamed for

fuelling the credit crunch.

There are also calls from various governments for

stricter global regulation of

financial markets. As we

emerge from the current

crisis there is worries new

financial regulation could

lead the an era of financial

protectionism. The talk about

this I'm joined by Professor

Miran from the Australian

school of business. Whole

come the program Good

morning We are seeing an

emergence of what could be

called financial

pretensionies many. Would you

agree with that?

Yes, we have already seen in

this financial pretensionism

when you noted that capital

started to move out of the

eastern European countries

from some countries in Asia

and Latin America as a result

of the global financial

crisis. We have an implied in

effect rule that national projects should be given

preference, national lending

should be given preference

and hence in effect we in the

process of financial protectionism So is it

concerning then that we may

see the concept of a global

private bank evaporate? We

noted recently that Mervyn King the Governor of the bank

ever England stated that the

global bank or global in life

but national in death or

rescue from death. Of course

for instance you can look at

Loman brothers or Icelandic

banks versus British banks

which were simply rescued by

British authorities To

prevent this could we see

stricter global financial

regulations enacted? What

ideas have been put forward?

We have also noted that the

chief British financial - the

chief British financial

services authority has argued

that if they have a world

government we can rely on

global financial resources to

assist global banks. Now in

the absence of a world

Government The case is that

we can basically rely on

national governments to

support multinational banks.

In other words the suggestion

here is that mega banks

wherever they are operating

should have adequate capital

at natural level in the

countries I in which they are

be rating. That may not

necessarily be the best

solution. Banks have baulked

at the idea of global

financial regulation. What

are they so concerned about.

The problem we face here is

if we allow, if you like,

every country puts aside

capital for mega banks we are

going to restrict

international trade. We are

going to reduce the flow of

capital from one country the

another and this may not

necessarily be the best

solution. I think what we

have learnt if the current

global financial crisis is

that global financial

institutions require global

supervision. We need to have

a depe Bali integrated

financial system and to the European experience is a good

one. Now they are talking

about European supervision.

European coordination among

European banks and from the European Commission itself

will play a important role in

this process. So there are

some lessons to be learnt a from the current global

financial crisis in this

respect.. Could it really

hinder the operation of the

financial system

internationally? Not

necessarily because we have

noted at the national level,

having a Federal system in

the US is adding to the

efficiency of the banks in

the US. Our federal system in

Australia is improving. The

efficiency of our banks. In

Europe the rural mean

supervision is improving. At

the international level is

the same process. When we

talk about global problems we

talk about global solutions.

They cannot be deployed

unless we have the global framework and this is the

framework you are talking

about. What can we expect as

we emerge from this

crisis? The current global

financial crisis has taught

Australia lot of things. We

know in the past financial

crisis have led to a number

of major changes in the

world. In the 19th century

we ended up with one your

ensi. Bank panics in the 20th

century led the what we call

the Federal reserve system.

The Great Depression and the

WWII made a number of changes

the our financial systems and

the second world war social

security assisted Europeans

to come up with now what we

callure quo zone and the

European Central Bank. We are

learning new that G20 is more

relevant in G7 or G8. We are

talking about global

financial stability world of

how to enhance financial

institution's xat is the at

an international level with

better coordination and

supervision at an

international level. All this

are tributes of the crisis we

face and we should not underestimate that global

economy will emerge much

stronger, more efficient once

we come out of this current

glow billion recession I

suppose in summary time will

only tell whether or not we

see a more protected

financial system or not?

Well we are learning to live

in the 21st century with more

stability, with more security

and the only way we can deal

with that is to have more

integrated global financial

system and I believe that the

current crisis is assisting

us to think more globally

while we are acting

nationally. Thank you

Professor for your time

today Thank you.

Even in tough times we all

need to eat and drink so

supermarkets are still faring

reasonably well. The

Australian chain Woolworths

has posted solid results for

the last quater. The

company's CEO is optimistic

that the downturn will not be

as bad as some predictions.

I think it will be shallow.

We obviously have the

opportunity to talk to a

number of imminent

economieses from the major

banks and others and while

there is a range of views it

is very clear that the

consensus is that we will

have a slight slowing-down

teen now and Christmas but it

should start moving again

next year. Billions of

dollars a year are lost to

credit card fraud around the

world. This is a big

incentive to develop new ways

to tackle fraudsters and some

British banks think they

might have come up with an

answer. In the shape of a

very high-tech card. Firstly

I acty sit the card. It is

called believe it or not the

Emu card and James Price is

taking part in the tile. I

has an on board come utter

which gone Yates a unique

security number when you

enter your PIN It gives me

an 8-digit number to enter

into the web sit? The point

is nobody knows your PIN so

if the card is stolen it

cannot be used online The

threat from hackers houseing

my details fraudulently. The

card helps solve that by

giving a one-Tim pass code to

access internet banking,

shopping, my corporate email

Internet fraud is growing

from ?150 million four years

ago to ?33million in 20 89.

The key thing about this is

that if anybody else picks it

up it is not much use to them

it is tried to my identity

which mens this technology

could be very useful in

online places where you need

the proof you are who you say

you are It is Facebook,

twitter, World of War

Captain. The DVLA, Her

Majesty's ref now and Customs

where I have to remember

thousands of passwords I

would much rather use this

The Emu costs more the make

than standards cards so it

may be a while before this

makes a way in to your

wallet. The Standard reports

on the Hong Kong depf's plan

the over a further $10

billion in relief measures as

GDP figure are expected to

she a 5% contraction. The

financial times says US

retailer Wal-Mart is betting

the global down turn with

unchanged profits and in

Crowses in market share and

the Wall Street journal

reports on Sony's billion

dollar loss and warns things

are only going to get worse.

That is all for this edition

of Business sap today but if

you would like to look back

over any of our interviews please visit our web site. Closed captions by CSI