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Good morning, welcome to

the program. In Business

Today the G20 gathers, leaders expected to crack

down on bankers bonuses. Rare

deal abandoned, China pulls

out of another resources take

over and playing price games,

the battle of the Consul makers. Those stories

shortly. First a quick look

at the markets. A mixed fish

ish around the region.

Japanese investors came back

from a three-day break in a

positive move.

More on the market action

I'm joined by Julia Bell from

Bell Direct. Wall Street

dipped ahead of G20 talks in

Pittsburg? It has been an

interesting ride for the US

market. On Tuesday the

indices reached the highest

level since Lehman Brothers

collapsed. A bit of weakness

coming into the market ahead

of the G20 meeting the market

will watch to see if there

are any signs to the major

countries will be willing to

withdraw stimulus from

market. The decline on the US

market were helped by the

existing home sale numbers

which were worse than

declines they were expected. If we look at the

broad-based, two out of three

industrial average saw stocks on the Dow Jones

declines. The worst Alcoa

down 4.5% after the drop in

xwhod is the overnight. The

Dow down by 0.4% t Nasdaq

down by have 1.1% and the S&P

500 lost 1%. More home sales

in America and more jobs data

out? The numbers out of the

US overnight were a bit of a

double-edged sword. We

initially straw the US market

rise early in the session

supported by the initial

jobless claims numbers that

fell. They were 530,000 a

drop from 551,000 in the

previous week but we got the

existing home sale numbers.

We saw a drop 2.7% in August

to a 5.1 million annual rate

from 5.24 million in July.

The market was expecting the

so a rise up to 5.3 million

so jitters about recovery and

what lit look like saw losses

on the US market which was

good news for the US

dollar. In Hong Kong we saw a

weak debut. By the end of

the first session on the Hong

Kong markets stock was down

12% at $5.61. There is some

concern over signs from China

it will curb the oversupply

of cement and steel and this

company builds steel mills so

very bad news, the worst in

Hong Kong so far. How do you

think regional markets will

perform? A negative lead

from Wall Street will put a dampener on trading around

the region. It is the last

trading session so we expect

to see a bit of a concern

over the US session where

Asian markets can not trade

out of so we could see losses

accelerating. The futures

indicate losses so if we look

at the futures for the

Japanese market t Nikkei is

down by 10 points t Hang Seng

is off 605 points and the

Australian futures losing

too. The Asian ADRs are not

performing well with

commodity stocks leading the

decline. Oil prices slipped

4%. Why is that? A massive

slide in oil prices to do

with the economic data out of

the US which stoked our

worries about demand for oil.

On Wednesday we saw the oil

inventory report and a very

surprise rise in inventories.

In Japan yesterday the

export-import numbers, we saw

exports into Japan for crude

oil drop by more than 10% so

a negative. There if we look

at oil prices this is in

2009, this is what it looks

like. The next support level

for oil is not until that 63

US a barrel mark and if we

pass through that we could

see a slide down to 61 US a barrel. Julia Bell thank you.

Let's look at what is happening in currencies and

commodities.

As did G20 gets under way

one of the main topics of

discussion is what to do

about bankers bonuses.

Several countries have de

cried did fact that huge

executive bonus are creeping

back but so far there noise

consensus on what to do about

it. For top executives the award themselves these kind

of compensation packages in

the middle of this crisis is

not just bad taste it is bad

strategy. No rewards for

failure only for long term

and sustainable success.

Bonuses are quite outrageous

and we cannot let that

continue as it is at the

moment. That was the rhetoric

from political leaders about

cracking down on bankers pay

and bonuses but what is the

reality here in the city of

London, another financial

centres? Not a lot has changed, some bank haves started to make money again

and paying out bonuses. The politicians meanwhile are

still talking about banning

excessive pay packets. Some

governments have set out how

they want to curb the bonus

culture in future. British

ministers and regulators

demand long-term

In France the President has performance-related rewards.

called on the banks the agree

new rules on bonus policy. In

the US a pay tzar has been

appointed to review pay at

banks bailed out by

taxpayers. So far the

Netherlands is the only

leading economy to call for a

cap on bonuses. Finance

Ministers of the G20 group

have said they want coordinated action, for

example restricting bonuses

as a proportion of profits.

It will be a key issue at the

Pittsburg summit but as

preparations continued for

the arrival of world leaders

there have been warnings it

is too late to do much about

bankers pay. Governments did

miss the moment the day they

put the taxpayers money on

the line buying into these

banks, they should have asked

to rip up all the large pay

contracts, they did not do it

because they did not have

enough time and unfortunately

we are left trying to clean

that up now and it is not

easy. Pittsburg is welcoming

the world, that might not

necessarily apply to banker. The Reserve Bank of Australia

has delivered an upbeat

assessment of the economy. In

its 6-monthly report card the

Reserve Bank says global

financial conditions have improved significantly but it

has found mortgage stress is

on the rise as more

Australians lose their jobs

or are forced into part-time

work. For those workers doing

it tough a 3% pay rise for

the nation's politicians has

come as a slap in the face.

From next months MPs will get

a 3% pay Roos boosting a backbencher's base pay to

$131,000 a year. The remuneration tribunal says

its decision reflects an

appropriate balance between

ongoing economic uncertainty

on the one hand and the

sustained increases in remuneration in the wider

public service on the other.

Yet the pay rise stands in

stark contrast to this year's

minimum wage freeze. We have

all had to take a reduction

in pay and it is harsh

economic times on a global

scale, I do not think it is fair that they should turn

around and give themselves a

pay rise. Like they are

living the high life, they

are in their corporate box

living the high life where

everybody else is in struggle

town. Which is not how the

Reserve Bank would sum up the

plight of Australian workers but warns mortgage stress is

becomeing a serious worry as

thousands of businesses and

households fall behind in

their repayments. In its

latest financial star till

hadability review the Reserve

Bank has found 25,000

households are at least 3

months behind. If interest

rates do begin to rise and if unemployment begins to move a

little we will find more people in some degree of

stress and it could be as we

move into next year we will

see a larger number of people

having to for close or be foreclosed on their

mortgages. Yet the threat of mortgage stress has not

stopped buyers. With a

massive 11.4% surge in new

home sales last month. That is first-time buyers getting

down the market before the

boost starts to be wound back

from the beginning of October

but a rise of a double-digit

magnitude is certainly a more

healthy update than we anticipated. Healthier too is

the RBA view of the economy

as a whole, it has found

global financial conditions

have improved significantly

over the past 6 months and it

has highlighted Australia's

resilience but the board does

not shed any light on what

this all means for interest

rates. Another Sino-Australia

Resources has folded amounts

Chinese state-owned resource

company has pulled out of a

half a billion dollar deal to

take control of Lynas

Corporation. China Nonferrous

Mining says the conditions of

the deal by the Foreign

Investment Review Board

forced its hands of. The news

came as diplomats and regulators were trying to

talk up the conditions in

Sydney. The thwarting of

Chinalco's investment

ambitions, the detention of

Stern Hu in China and this

week's blocking ever Chinese

investment near Woomera have

Tessed the relationship

between the to countries but

officialdom has a broader

view. In a rare public

appearance the general

manager of the foreign investment review board has

also pointed to the important

of Chinese investment. In

2007-08 it was ranked number

6 in the Foreign Investment

Review Board statistics. In

208-09 we have not finally

completed the data yet but it

looks like China will be

number 3 after the US and the

UK and it is probably going

to go higher than in that

future years. In the past 18

months FIRB has approved 90

Chinese investments worth

around $34 billion bit is the

failures that have grabbed

the headlines. We are here,

we happy to work with

companies and so talk to us

early, do not turn it into a

legal stoush and deal with us

the way that we like to deal

with you which is in

confidence. Former difficult

flow Mount and China expert Richard Rigby says the doors

to business opportunities in

China remain open. I think

overall Australia is still

very well perceived in China.

I was in Beijing last week

and we did not pretend there

were not any issues that had

arisen but at the same time everybody stressed how important both countries were

the one to the other. Sino-Australia Resources

China is a stable place to

do business but it can be

challenging. Its is a

society in the midst of

change. The bureaucracy has

change add lot over the last

30 years and this means that

there is experimentation with policies, often times there

is not a lot of detail about

a particular policy or how a

law or regulation will be

implemented. This creates a

certain amount of ambiguity

and you have to work through

that. Foreign investors in

China are heavily regulated.

In financial services for

example foreign bank are

limited to a maximum 20%

stake. The head of China's

mergers and acquisitions association says those

investment restrictions will

be loosened eventually. I

think this is very important

for China and we had to do it

quickly so that is my

personal view so we always

push the Government, globe

lies, go global quickly. Former Prime

Minister Bob Hawke also spoke

at today's conference. He

says China's regulatory

approach has helped it

deliver enviable economic

growth. For God sake give

them credit for an historically unprecedented

growth, 10% per annum, done

better than anyone else in

history. They seem to know

what they are doing. Jab

Japan Airlines plane is

pleading for a massive

bailout to help it survive.

JAL is drowning in $15

billion of debt and is

heading for its second state

annual loss. It recently

announced plans to axe almost

7000 jobs and shares in

Asia's largest airline have

number and to record lows.

JAL is scrambling the put

together a restructuring plan

to secure a state funding guarantee. The Japanese Government says it does not

want the airline to go

bankrupt but it notices ready

to prop up the carrier.

Numera plans to expand. Next

month the Japanese investment

firm will sell 80 million

shares about 30% of its

stock. Namura lost out to

Barclays by bidding for the

bankrupt Lehmans operations. Canada's Canwest

has sold its stake in

Australia's Ten Network

ending a 17-year investment.

Analysts say the move will

free up Ten Network's

management at a time when market conditions remain

tough. Perfect Match was a

ratings hit for Ten Network

in the '80s, now network's

majority owner has engaged in

the corporate version of a

blind day. Canwest is selling

its 50.1% stake in Ten

Network to help pay down some

of its $4 billion debt. The

Canadian media group invited

a number of brokers to bid

for the right to sell its Ten

Network shares a process

known in the market as blind

date. The Macquarie was

successful agreeing to sell

the Canwest estate to reap $680 million for the

departing owner. Ten Network

are in the best world of all,

they will have a widespread

share register of people who

expect them to do a good job and the management will have the opportunity to get on

with it. It has been well

documented Canwest was a

distressed seller. It has had

issues with its bond holders

and debt position so if there

were an imminent bid about to

come for Ten Network or the Ten Network we would have

seen it by now with someone approaching Canwest directly

for their stake. The sale is

expected to be completed in a

week and Macquarie is looking

to place the shares at around

$1.30 each. A 5% discount to

Ten Network's closing price.

While that is a far cry from

61 cents in America it is

less than Canwest might have

received before the financial

meltdown. They famously

turned down private equity

players a few years ago who

offered $2.8 a share. They

refused that, they were

looking for $3.10 a shire and

the bit fell away after that. Ten Network has reaffirmed its profit

guidance forecasting

operating earnings of $151

million, 30% lower than last

year's result. Ten Network's

executive chairman warns -

Probably February of this

year was the low point and it has commenceed to get better

from then on. We are seeing

the period to Christmas now

looking better and we think

that the worst is well and

truly behind us. There has

been something of a

continuing structural change

as advertising dollars move

the Internet. That may

explain why Canwest was

unable to find a single buyer

to pay a premium for its

stake in the network. Major

Central Bank haves said they

will scale back some of the emergency cash injection

programs as financial markets

stabilise. So how have

currencies reacted and what

is happening in the markets

ahead of G20 talks. Here to

tell us is John Noonan, senior financial strategist

with Thomson Reuters. Where

are Central Banks turning off

the cash taps? Things are

returning to normal and a lot

of programs they are scaling

back on were not being used

anyway. The companies are now

using commercial paper market

wise returning to normal so a

lot of these programs were

redundant. It is not a major

move the Central Banks have

made but it is acknowledging the fact that the credit

markets have returned to

something like normal. What

about the euro and the pound?

This was not good news for

those currencies? The dollar

actually rallied. Some

investors are a bit nervous

now the Central Bank are

winding back some of this

accommodation that maybe they

will do it early so we saw an

equities sell off in

commodities and the dollar

went up a little but the

pound sterling was

particularly hit hard because

the bank ever England

Governor said the very weak

sterling is helping the

economic recovery which has led investors to sell

hard. The dollar seems to be

rising despite its appeal for

use in carry trade growing.

Can you explain what is going

on there. When risk appetite

is high they borrow the

lowest interest rate currency

and put it in more risky

assets. The reason the dollar

went up last night is the

more risky as yelts were not

as appealing because risk

aversion took the place of

risk April tight for the time

being.. There is some

unwideing which is why the

dollar got a bit of strength

overnight. Is the US dollar traditionally used for this

sort of trade? No it is not.

The sus suggestion dollar is

not normally a carry trade.

Interest rates in the US are generally higher than

Switzerland and Japan and

also US investors traditionally have not been

as aggressive investing offshore as they have been

for the last 2 or 3 years so

this is new and it is

particularly true since US

rates are so incredibly low

it is inviting for investors

to buy the US dollar. Do you

think the greenback could

take over the yen as the

desired currency to buy in?

It has for the time being and

while US, short-term US

interest rates remain below

Japanese interest rates

investors will choose the

dollar to borrow against but

that could change. If we

start to see US interest

rates rise a bit Japanese

investors are very

aggressive, the biggest

exporters capital in the

world so the yen could take

the place as the funding

currency but bit is the US

dollar at the moment. Why

is the yen trading in a

narrow range? We are seeing

broad dollar strength keeping

it above the 09 level but US

yields are continuing to go

down, not only in the

shortened as far as the carry

trade but in the longer end

and Japanese investors are

not putting money into the US

because there is not the

yield play there for them

stow the en is protected at

90 but some semi oh fishian

bids but every time it goes

to the 91 level investors are

happy to sell the dollar and

buy the yen. Do you think

currencies will feature

highly in G20 talks? There

seems to be a lot of chat her

about that but there is that

chat her before every G20

meeting. The French do not

like the euro strengthening

against the dollar and the

pound and there is also some

worry had that the Chinese

currency remains weak. I do

not think there will be any

major development. There is

usually chatter, talk on the sidelines but nothing

concrete. That will not-again

and it will pass without a lo of fanfare. Do you think

there is much worry out there

about currency weakness throughout Asia? There is a

lot of talking go into the -

most interesting thing about

the G20 meeting is the fact

that the US will bring global

rebalancing as an issue. If

you are going to get global rebalancing you are going to

have to see the dollar weaken

and Asian currencies

strengthening to get that

balance you need to get the

global balance some way

towards normal so yes, that

could be an issue F the

global balancing, rebalancing

issue takes some traction

then there could be an issue

about where the Asian

currencies stand. Joondalup thank you, we

John Noonan thank you nor

your dime today. My

pleasure.

When times are tight and

the Price is Right why not

sell the family jewels? Gold

is again selling for Monday

$100 an ounce and consumers

are cashing Onno a golden

opportunity. Now is the time

to send your unwanted gold

for cash. As prices soar to

record highs consumers are

being urged to make the most

of the gold rally. Almost

every day we will buy 5, 6

lots sometimes 10 from the

people. They used to be in

the past probably a week not

even that much. All types of

jewellery, broken

earrings. The gold is then

melted down and sold on with

almost 30 years in the

industry Sam Sap something

says now is the time to cash

in. After 2000 the interest

comes back bit by bit and the

last year or one and a half

year unbelievable. The

bonanza has prompted

Tupperware-style gold parties

and these cash for gold kiosks are popping up all

over the place. Gold price

is crazy so business is

booming. People are realising

they have a lot of jewellery

they no longer wear sitting

in their drawers unloved so

they bring it to us and cash

up. Stores selling metal

detectors and gold

prospecting the gear cannot

keep up with demand. We

getting 400 to 50 more a week

than normal. Because of the economic collapse people are

more interesting in finding a

hobby that is rewarding

rather than just filling in

time. The main trends pushing

up the price of gold are a

fall in the value of the US

currency and a desire among

investors to find a safe haven in still troubled

waters. Analysts say as long

as the global economy remains

unsteady people will continue

to seek solace in gold.

Certainly it seems a safe

haven particularly confined

to hedge against the falling

dollar. So in the words of

MC Hammer it is time to take

that gold and it g it

sold. The battle for market

share in video games is

hotting up with anyone ten de

and Microsoft slashing the

price of popular games. All

the major players are

displaying their latest wears

at Asia's largest game show

in Tokyo. One of the main

aprations in soft sort of's

new game which work s without

hand-held devices and the

player controls it by using

arms and legs. Nintendo has

announced a cut in the price

of Wii and Microsoft has

matched it slashing the X-Box

360. And a cheaper

PlayStation 3, over 200,000

people are expected to flock

to the show over four days A

look at headlines around the

region. An investor is suing Citibank for mislead hinge

her. The 'Financial Times'

says a dispute over the

International Monetary Fund

could overshadow the G20

meeting. That is all for.

Today Thank you for your company. Have a great

weekend.