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.
Business Today -

View in ParlView

(generated from captions) program, I'm Whitney

Fitzsimmons in bids bid. Oil

spikes as business leaders

prepare to meet. The

First, a quick look at the

markets. The markets again

ended the day in the black.

prepare to meet. The Oil spikes as business leaders

leaders prepare to meet. The ended the day in thbid. Oil spikes markets. The markets again First, a quick look at the

ended the day in the black. markets. The markets again First, a quick look at the

For more to the market

action, I'm joined by Steven

Kraft from Bell Direct. The US

opened hirer has is played catch-up with other

catch-up with other global

markets US came back with a

bang after Monday's Labor day

holiday, putting on 9%. The S&P

500 was up 0.9% and the Dow

Jones putting on 0.5%.

Original prices spiked by 4% to

US$71, which helped

US$71, which helped Chevron,

Exxon and mobile, the best

performers among the blue

chips. The marked was buoyed by

the recent merger activity,

with the announcement of a

takeover bid by Kraft of

Cadbury, following last Greek's

announcement of a takeover by

marvel. That is seen as a vote

of confidence in the state of

market and the economy in

market and the economy in the

US when there is still weakness

in the economy. People see the

larger stocks looking to snap

you are their under valued

rivals, so a good start from

the US today. Turning to

commodities, gold breach the

US$1,000 mark. Yes. It's not

often you can say shares are up

and gold is up in the same sentence, but it is

increasingly the story later.

Investors are seeing a mixed

picture from the US and turfg

to gold as a safe haven.

Typically you would catch in

your portfolio, but people seem

to be turning to gold as the US

dollar continues to dip.

Turning to currencies, the

greenback has fallen to its

lowest level against the

euros. It is around 1.44 euros

and 1.64 pounds. The Aussie

dollar is trading at a one-year

high of over 86 c, a continued

strong performance. The US

dollar is under continued

pressure, partly due to the

weakness in the US economy. We

see green shoots, but none have

blossomed, and due to the US

trade deficit. It is down from

a year or so ago. I saw one

report which suggested the US

means to find a $1 billion a

day in foreign capital to keep the dollar at its current

level, which is a difficult

task. The US dollar will be under pressure for some time

until the economy recovers. How will regional markets

perform today? We are looking

at a good day on the regional

market, perhaps quieter in

Australia after yesterday's

positive performance. The

Australian market is at an

11-month high. A lot of depend

on the retail sales data later

in the day. The Australian

futures is up 0.25% and the Nikkei up

Nikkei up 0.25%. Steven Kraft

from Bell Direct. Looking at

what is happening with kurns

sis and commodities:

Oil has had its biggest gain

in a more, heading $71.10 in

New York ahead of the OPEC

meeting in Austria. On arriving

in Vienna, Kuwait's oil

Minister maintained it should

not increase production. Do

you think OPEC should increase

production? No. More

compliance, that's all. Most

analysts expect the group to

keep its official price target

of around $70 a barrel. The

cartel has kept its official

output target steady since it

announced a record cut of 4.2

billion barrels a day lot half year. OPEC supplies more than a

third of the world's oil.

China has made another play for

China has made another play for

Australia' resources, this time

Energy Metals. The company's

directors recommend

shareholders accept the $120

million takeover bid. While the

rest of the world has a healthy

appetite for yellowcake,

industry advocates are from us

trayed the nuclear option is

ignored in Australia. For

decades nuclear power has

ignited strong emotions in

Australia. Overseas the tide

is turning. It accounts for

15% of the world's energy

generation, with France getting

80% of its power from nuclear. However, while Australia has

the world's largest urinum

reserves, policy maker appear

unwilling to contemplate

nuclear power. In allowing

coal to be demonised as a dirty

fuel and barring any

consideration of nuke energy as

an option, our policy makers

may be shaepg an energy future

disproportionately dependent

upon technologieses which may

compromise the reliability, the

productivity and low cost of

our current electricity

system. While Australian

governments are avoiding

nuclear, China is not. The

state owned Guangdong nuclear

power company is making a $120

million bid for the Perth-based

Energy Metals. Its biggest

shareholder general today Lee

resources plans to accept and

Energy Metals board is

recommending other investors do

the same. Ziggy Switkowski

warns the apparent policy in

Australia of nuke avoidance

will carry a cost. The awe I a

bun dance of inexpensive fossil

fuels will be overtaken by nuke

power where we have no presence

and our competitive advantage

will disappear. Safety

concerns remain an impediment

to nuclear. However, Professor

George Dracoulis says

incidences at reactors have

been cut by 90% since 1985 and workers radiation exposure has

gone down significantly.

Professor Dracoulis argues the

industry is safely storing

nuclear waste and is

competitive with other power

sources in terms of the cost of

generation. Nuclear here,

similar to gas, similar to

wind, similar to hydro, to some

extent to biomass, cheaper than

solar thermal and photovoltaic,

a factor of 8 to 10 high yes,

is not on the graph. Nothing in

Australia competes with coal.

Unless there is a price on ah

Bonn. The Australian urinum

industry has made great strides

in gaining more public

acceptance, but the industry

could do more in shaping

opinion by being more open,

humble and honest. McDonald's

ha lost an 8-year trademark

battle in malmat Asia, trying

to stop McCurries from using

the prefix Mc. McDonald

appealed against the earlier

verdict, and McCurry argued the

MC stood for Malaysian chicken. The court ruled in favour of the company.

the company. Weenkt are happy

we can butt this thing behind

us and start expanding our

business, what we thought about

eight or nine years ago.

McDonald's has 185 outlets in

Malaysia, McCurry has just the

one the one. Two European

Telecom companies are planning

to American their British divisions,

divisions, to form the biggest mobile phone company in the

UK. The join entity created

between Orange's unit and

Deutsche Telekom's T-Mobile

would take over Vodafone as the

market levered. Take one

French owned firm, add another

German owned business.

Together, Orange and T-Mobile

would have 28 million

customers, creating Britain's

customers, creating Britain's

biggest mobile phone network.

If the deal goes through, it

will mean the biggest upheaval

in a decade for the mobile

phone industry and its

customers. Everything is biddy

at the moment. The two

partners were claiming

everybody will win if they are

allowed to go ahead with their

alliance. Better value to our

customers, at the same time

giving a much better customer

experience with better levels

of coverage, geographic

coverage, inbuilding coverage.

In Britain's mobile phone

chart, Orange and T-Mobile lag

well behind the leaders in

third and fourth places.

Together they would zoom to the

top of the league, with more

customers than anyone else.

The UK mobile phone market is a

cutthroat place. You can choose

between five different networks

offering all sorts of hand sets

and a bewildering array of

complex deals. If you take one

of the networks away, will

customers be any worse off?

The competition watch dogs who

will examine the deal will want

to be sure that phone buyers

kasht given less choice and

higher prices. The two firms

should be able to build a

better mobile phone network,

with fewer masts. Currently

T-Mobile and Orange are flalg

by themselves. If they join up

they will give customers

greater choice for mobile phone

models and will give they will

better deals, better customer

service and better 3 G faster

internet coverage. One place

they will welcome a tie-up is

the city. T-Mobile and Orange

follow Cadbury and Kraft as

another possible multimillion

pound marriage which could ring

up big profits for the

bankers. China has unveiled

the dine of what will be its

largest locally made commercial

aircraft. The jet was revealed

at the Asian air space

international expo and Congress

in Hong Kong. It has a single

aisle with up to 190 seats. It

will be ready for test

flightses in 2014 and delivery

in 2016. The plane is made by

Comac, a unit of the state

owned aviation industry corp of

China. Chinese car maker Geely

has reported a rise in first

half profit to $87 million. The

company expects to pay a 4-year

dividend but won't make an

interim pay-out. Geely boosted

vehicle sales by 29%. The

company is considering a

takeover bid for

takeover bid for Ford's Volvo

unit. Toyota says it will

increase its domestic workforce

by recruiting about 800 casual

workers in October of. The move

marks the first hiring drive in

16 months and highlights the

ongoing pick-up in vehicle

sales in key market, fuelled by

tax breaks and subsidies.

tax breaks and subsidies.

Official Australian retail

sales and consumer confidence

will be released later today. A

leading economics group Access

Economics says Australian

retailers can expect tough

times ahead. The group says the

impact of a Federal Government

stimulus policy will fade and

growth in household income will

weaken. How do sales people

weaken. How do sales people

tackle tough times and

encourage consumers to spend?

To spend out, I spoke to

professional selling expert

Neil Rackham, who says a

targeted approach is best. If

I could put it in one word, I

would say focus. What the

floundering businesses are

doing is chasing after

everything that movers. That

seems a good strategy, when tiles

tiles are hard and you don't

have sales come in, you knock

on more doors many but that's

not what the successful

businesses are doing. The

successful businesses are

working to a clear mantra,

which is if you wouldn't chase

a piece of business in good

times, never chase it when

times are bad. As well as

targeting the right consumer,

what other strategies are

what other strategies are

working? I suppose the most

important one is deciding that

you are in a price sensitive

market but the pricesn't as

important as most sales people

think it is. If you look at the most successful companies in

previous resessions, they

haven't been the ones who have

cut prices on negotiated price,

in fact in the 1980s recession

IBM increased their prices when all

all their competitors were

cutting by 30%. They took

market share from them. They

were selling safety. What

consumers are looking for is a safe decision, more than a

cheap decision. In fact, 82% of

consumers, when you ask them,

would you go for the cheaper

option or the safer option,

would choose the safer option.

You are saying that in these

hard times consumers aren't necessarily focused just on price, it is more

price, it is more about

quality, and that companies

should resist the move to go

downmarket? Yes. They should

resist getting into price negotiation very early with

customers. They have to have

customers feel that we are the

safe option. If you can create

that, you can take a lot of

business. Unfortunately, most sales people aren't

sales people aren't good at

doing that. You say they are

not good at doing that. What do you suggest they should be

doing? The important thing is

to understand that prices bt

everything. As soon as you

start thinking the price is

everything then you cut your

own throat because you start

negotiating too quickly, you

give things away and create a

customer's demand for more and customers start thinking you

are not the safe option. When

someone says, we can cut you a

really good deal, how does that

make you feel? Confident that

they are going to last? No,

what you feel is they are in

trouble. In fact, a lot of the

things we do, thinking we are

pleasing customers, make

customers feel more insecure

The best sales people work on

making customers feel

comfortable, they build a

relationship with the customer,

trust, and work on satisfying

the customer's needs, not

trying to sell products when

times are hard. We have looked

at the sales positions, but

let's look at the role of the

marketer in the slowdown. How

do you generate demand? We are

in an able where often the best

way to generate demand is to

use as many media as you can in

as many engenius ways. One thing in the United States

right now is a lot of marketers

have relied much more than ever

before on social marketing,

networking, Twitter playing a

part, as well as Facebook. We

are using multimedia to get to

the customer, not the

traditional media alone. It is

not as dire a situation in Asia

as it has been in the United

States. Let's look at the role

of the sales person broadly

speaking. Do you think it is

still relevant going into the

future? Yes. What will happen

in the future is that one type

of sales person will just

vanish, and that is the talking

brochure, the people who go in

and say, let me tell you about

what a fine product we have.

Those people managed to survive

in easy times and they have

managed to survive very much in

Asia because Asia has more

patient customers. Worldwide,

there is data emerging that

says customers don't want to

sit and list tone a talking

brochure, they would rather get

information about products from

the internet in their own time,

it is quicker, more efficient

and more objective. So those kinds of sales people are

dropping away. Sales people who

work with customers to solve

their problems are prospering

and doing very well, even

though times are hard. What

about long term engagement was

customers is that a thing of

the past? No. That is

actually going to be more and

more important in the future.

Right now, to get a customer,

if you are in a business which

is making a large sale, like

IBM, it will cost as much as

US$500,000 to get a customer.

If you want to make one sale to

them, you will make a loss

forever. If you are in that

kind of business, one thing you

have to do is to think of a

revenue stream across the

relationship and the life you

have with that customer. If you

do that, we see that the

long-term relationship in

selling is the best

profitability for the sales

company. It is also, in the

end, the best option for the

buying company. Before we go,

for our viewers in sales-based

industries, what are some of

the future trend to look out

for? Sales forces will slim

down. There will be much more

working with other channels

than there is at the moment.

The best sales people will

become higher paid, that's the

good news. The talking

brochures will fail and curl up

because there is no place for

them any more. Sales and

marking will be working much

more closely together. Finally,

for the first time CEOs are

beginning to focus on selling

as their way out of the

position their company is in,

rather than acquisition or

efficiency. All of those

changes are becoming visible

now and they will accelerate

and intensify. We have run out

of time, but thank you. Australia's leading solar

energy company has gone into

voluntary liquidation as

administrators race to find a

buyer to rescue the business.

The solar systems group was

planning to build one of

Australia's biggest solar power

plants and expand into Asia but

instead the company's 150 staff

members have been stood down while administrators try to

salvage the business. It is

meant to be part of the nation's bold future in

alternative energy. A massive

$420 million solar plant to be

built in regional Victoria.

Now, it needs a buyer. We

have been doing everything in

our power to get a successful

sale or restructure of the

business. Solar systems failed

to coax $50 million to $100

million from jitterry financial

market to keep it operating but

there is still hope it has than

come to an end. The technology

is right and the philosophy is

right. I don't think you can

make judgments yet about

whether this will or will not

succeed. Nearly all of solar systems 150 staff have been

laid off. Administrators have

given themselves three months

to find a way to save the

company: It is a risky business

developing these technologieses

and they need all the support

they can to get through the

markets. The Mildura plant is

designed to provide enough

annual four for 45,000 homes.

State and Federal Governments

have promised grand of $125

million as the project

progresses. The government has

honoured those commitments and

worked with those commitments.

The Opposition Leader says the

government should have taken a

stronger interest. It appears

a level of drift has set inform

the State Government has

dithered and delayed on

bringing the project forward.

Solar systems first creditors'

meeting will be held next

week. Find a satisfactory work-life balance has become

difficult for many worker.

However, new technology is

changing the way we work and

where we workment as a result,

the dlally commute could become

a thing of the past. home life

is I voiding the office and

office life is invading the

home. You can check your

blackberry or internet after

dinner in your suburban home

and complete a few hours of

work. With many families

having two bread winners, both

juggling children and career,

Bern old salt says our work

habits are set for big changes.

His research shows many future

workplaces will have flexible

hours and they will be in the

suburbs, not the CBD. Why

travel into the city centre to

do work that can be done just

as fire antly in a suburban

office park It is less impact

environmentally. Reduces

commuting has to be good. More

time for the wife and children

and everyone is happy.

Psychologists say eliminating the clear divide between work

and home life can be

unhealthy. There is a risk

that people will never know

when it's free time, when they

can just play, be part of life

and not part of work. It could

also lead to segregation, where

people from different walks of

life no longer mix. During the

days of the dot com boom he was

known as a genius by some and

as a madman by others. The

spectacular rise of Josh Harris

was followed by a spectacular

boost as he lost millions when

the tech bubble burst and

suffered a your investigate

breakdown He is hoping a movie

which traces rise and fall will

spark his comeback. There was

a time when Josh Harris was a

giant. He made $80 million selling his first internet

company I'm Josh Harris,

president of Jupiter

communications. He started an

online video company years

before You Tube and made a bold

prediction to 60 minutes I'm

in a race to take CBS out of

business. He through more of

his millions to build a bunder

in man tat Manhattan, where

everything was recorded

Everything is free except the

video, that we own. He did the

same thing at the apartment

where they and his firl friend

live. Live internet audience commented on everything they

did. It was called, we live in

public. The new documentary,

also called we live in public,

fates Harris as having seen the

age of Facebook and Twitter,

where many of us voluntarily

give the details of our lives.

Shortly after reaching the top,

Harris unravelled. His bunker,

which was filled with firearms

and an interrogation room, was

raided by police. He and his

girlfriend had a public and

messy break-up. Then the dot

com bubble burst and Harris

lost nearly everything. I need

to tell you, you have a

negative balance in your

checking account. It does feel like

feel like you're watching somebody come apart at the

seams. It was a nervous

breakdown, a complete official

meltdown. Today he is living

in a friend's pool house in Los

Angeles. Playing poker a few

days a week at a casino to make

a living. When you work in,

you don't think, what's gone

wrong? Harris sees the new

movie as his ticket back to the

big time. He is tooling around

Hollywood in a borrowed

Corvette, pitching a new show

that captures all the video

streams people are putting on

to the internet from their web

comes. He wants to broadcast

brutally intimate moments of

people's lives. Harris believes

we are headed into a future

where we all live in public.

Now the headlines around the

region: The standard says city

Pacific's chairman is rurpg to

the business world. Cadbury

will struggle to remain ipt.

The CIC is aiming to invest in

US real state. That's all for

this edition of Business Today, I'm Whitney Fitzsimmons, thank

you for jong me, enjoy your

day.

day. Closed Captions by CSI.