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Good morning, welcome to the

program, I'm Whitney Fitzsimmons, in Business

Today. Life after Lehmans, Ben

Bernanke says the technical

recession is over. Break-up

pain - Telstra faces a

Government ultimatum. And with

a cherry on top, the ice-cream

business booms in India.

Those stories coming up

shortly. First, a quick look at

the markets. Around the

higher. region, the markets were mostly

For more on the market

action, I'm joined by jewel

gentleman Lee from Bell

Direct. Did the commentators by US Federal Reserve chairman

Ben Bernanke have any impact on

US trade? We saw the US

stockmarket close at its

highest level for 2009, and kom

commodity prices increased,

with oil closing above US$70 a

barrel. The industrial stocks

were the big winners. The Dow

was up by 0.6%, the Nasdaq 0.5%

and the S&P 500 up by 0.3%.

Still in the US, a bigger than

expected rise in retail sales?

The retail sales numbers were

much better than expected. The

market expected a rise of 1.9%,

which would have made it the biggest rise since January

2006. Instead, the real trail

sales rose by 2.7%, the Bickest

rise in three years. The rise

was helped by the cash for

clunkers program. Motor sales

were up by 10.6% during August,

gasoline prices up by 5.1%,

which helped the numbers. The

numbers support a rise in the

US dollar, as well as stocks

and commodities. In the UK,

there has been interesting data

released there. The UK I

flation numbers are out, with a

rise of 1.6% from a year ago.

This is the smallest rise since

January 2006. The numbers were

helped by transportation costs,

especially fuel costs, rising.

Second-hand cars, there was a

substantial rise, which helped

the numbers. This eliminates

some of the fears that were

surrounding deflation, because

a rise of 1.6% is still

considered healthy. If we look

at core inflation, which

stripped out alcohol, tobacco,

food and energy, we saw a rise

of 1.8%, the highest level

since November 2008. What can

we expect to see on regional

market today? The positive

lead from the US should be good

news for regional market. We

saw commodity prices mostly

rising, so that is good news for the material sectorment

with the futures, a mixed read,

the Nikkei futures down by 30

points, Hang Seng down by 56

points, but the Australian

futures up by 21 points. We

expect to see a positive start

to trade in the region. How

are oil and gold pore forming?

Oil prices jumped on the back

of the retail sales numbers,

which supported the demand in commodity prices could again

rise. We saw the London metals

exchange base metals slightly

rising on the back of the

numbers. Altogether, a pretty

good day for commodity

players. Economic data, what

should we be paying attention

to? The big ones are out of

Japan, with the interest rate

decision, not expecting any

surprises, rise steady at 0.1%

is expected, in Australia the

Westpac index and the big

numbers will be in the UK

tonight, with the jobs numbers

out in Britain. Thanks for the

update. Julia Lee from Bell

Direct. Now a look at what's

commodities. happening with currencies and

US Federal Reserve chairman

Ben Bernanke says the company's

technical recession is probably

over, but he added the real

economy will remain weak for

some time due to unemployment.

He may the remarks at Brooksings institution on the

one year anniversary of the

collapse of Lehman Brothers.

I see some agreement among the

forecasting community at this

point that we are in a

recovery, we will see growth in the third quarter continuing

and the growth will continue

into 2010. But the general view

of most forecasters is that the

pace of growth in 2010 will be

moderate, less than you might

expect, given the depth of the

recession. Mr Bernanke also

says he feels confident

Congress will approve

comprehensive reform of US

financial regulation. The

Obama administration is trying

to push through regulations

designed to prevent another financial crisis. In

Australia, the country's

central bank says the economic

recovery remains fragile.

Softer than expected economic

numbers released recently have

done little to ease derns.

Minutes of this month's Reserve Bank board meeting suggest

members don't want to raise the

cash rate too early. If stockmarkets can be believed,

the global economy is in the

mid State of a remarkable

turnaround The Reserve Bank of

Australia seams for from

convinced In the minutes of

from its recent board meeting,

the RBA questions whether the

economic improvement would be

sustained and is mindful of the

risk of prematurely tightening

affecting confidence and interest rates and adversely

demand. Whiled board was also

concerned about leaving rates

too low for too long, it

ultimately decided the balance

was best struck by leaving the

cash rate unchanged for the

time being. All the optimism

is premature. The Reserve Bank

has gone to a lot of trouble to

curb us from the major impact

of the downturn and the last

thing they would want to do is

raise interest rates if it

threatens the recovery

process. BIS Shrapnel is

forecasting construction

activity will decline by 15%

over the next two years. Frank

Gelber says that will have a

significant impact on economic

growth and is predicting GDP

will rise by less than 1% over

the next 12 months If private

investment falls dramatically,

offset by strong government

spending on infrastructure, and

later on by a housing recovery,

but not enough to prevent a

fall in construction, keeping

the economy weak for another

year to a year and a half. In

terms of that housing recovery,

BIS Shrapnel says it could be

quite strong and imminent. We quite strong and imminent. We

are on the threshold of a major

upturn in residential

construction. If you look at

the housing finance numbers

over the last two or three

months, they are pointing

towards, by December quarter

this year, a 30% increase in detached housing construction

across the country. In its

September board minutes the

Reserve Bank notes funding

costs are rising and lending

standards have tightened. BIS

Shrapnel says that is the Shrapnel says that is the bringingest threat to new home

construction. There is still a

major issue in terms of luck of

finance for medium and high

density construction, where

demonstrators can't get finance

from the banks because of very

tight restrictions. That again

seems to have shown up in the

latest statistics, which reveal

an unexpected 3.7% drop in

housing starts for the June

quarter. The Australian

Government has issued the

telecommunications giant

Telstra an ultimatum, either

split its whole satisfy and

retail divisions or face losing

access to new wierms spectrum.

Separation of any kind will

destroy value for shareholders,

many of whom bought the stock

at a time when Telstra had

nearly a monopoly on the

market. In 1997, the $14

billion Telstra share offer,

known as T1, was sold as a

great opportunity for Australian investors. And it

was, at least initially. With

shares surging 40% on listing

day. At 1.9 million applicants

who sought shares, they have I

vef Ned a solid company and I

wish they will well .

Long-term shareholders are also

long suffering. In 1999,

Telstra shares were trading

above $9. But this year's share

market meltdown and the stock

is now trading at just one

third of that level. The government's announcement today

really pulls the rug out from

underneath the 1.4 million

shareholders in Telstra. It is

a very constricting

announcement and policy, which

restrains Telstra from pursuing

its growth activities. At the

same time, opening the door for

all of its competitors to come

straight into that space. The

government's move has been

welcomed by consumer groups and

some analysts say the sector

may now finally see real

competition. What this is

basically doing is halfway. On

one side it sets the

parameters, so we know what the outer parameters are. Within

the parameters, Telstra has a

choice: Does it want to be a

media company, a telco, does it

want to go into mobile or have

a bit of everything? They are

options. You cannot have them

all and be dominating

everything. Telstra will have

to make a decision about

separating its fixed line

assets from its retail business

or be restricted from expanding

its mobile network. Last month, Telstra chief David

Thodie said functional

separation could cost been $500

million and $1.2 billion.

Analyst Laurent Horrut says separation will also mean an

end to the monopoly profits it

currently enjoys. On some

fixed line products, Telstra

has a profit margin in excess

of 50%. It is my view that it

will be hard for Telstra to

maintain that level of margin

in the future. How much will

they lose? It's virtually

impossible to say. The major shareholder, the government's

future fund, wasn't prepared to

hold out for any potential

upside. Last month it

offloaded a third of its

holding in Telstra for $2.3 billion. billion. The struggling

Japanese airline JAL is moving

to improve efficiencies and cut

costs by slashing nearly 7,000

jobs. Chief executive officer

Haruka Nishimatsu held a

meeting with the Japanese min

Friday of transport officials

to discuss problems the airline is facing.

TRANSLATION: We have announced

a cut of 6,800 jobs, and that's

a huge number. We are doing a huge number. We are doing our

best to inform and manage our

employees, since we are getting

many inquiries. Mr Nishimatsu

also said he had been in talks

with American Airlines and

Delta as possible partners on

Atlantic routes. He said such

a move is dependent on an open

sky agreement being reached.

JAL is also specked to cut its

international routes and

concentrate more on business

customers in an effort to turn

around the loss-making

business. Macau casino

operator SJM Holdings says its

first half net profit dropped

by 41% from last year, coming

in at $43.61 million. The

company, which is controlled by

Stanley Ho, confirmed gaming

revenue declined due to

increased competition and

Beijing's visa restriction as

mainland visitors. SJM

maintains the second half of

the year started well as gaming

revenue in Macau Rose

significantly. The chairman

and chief executive of PCCCW

Richard Li has dropped plans to

challenge a sir detective that

stopped a bid to privatise the

company. He first attempted to

take the company private last

year, despite opposition.

China is accusing the US of

sending the wrong message on

trade, ahead of the G20 summit

next week. The latest trade

dispute between the US and

China over tariffs on Chinese

tyres highlights the growing

era of protectionism, as

closing trade borders could

become a real threat to the

global recovery. The global recovery. The growing

US trade deficit with China has

been a sore point in Washington

for a long time. Thanks to the

global recession, world trade

is down 10% this year. But Tim

Harcourt believes if the latest

China-US skirmishescal its,

Australia will fare better than

most. China's stimulus

package, China's investment and

consumption in its local

economy in its second and third

tire cities mean there will be

big demand for Australian

exports for a long time. China

will be a very important

juggernaut for us. Naturally,

we don't want conflict in the

world trading system because it

affects us as a major

international export er.

Leader of the G20 nations meet

in the US next week with free

trade high on their agenda, if

not their actions. Again them,

the G20 makeses have imposed

more than a hundred protectionist measures since

their last meeting last April.

There is no indication that

this particular policy by the

Obama administration will

create new jobs in the US.

Simply because the US tyre

manufacturers are now planning

to shift their production from

the US to low-cost producing

countries. That means the US

could soon be importing cheap

tyres from other country, such

as Brazil and Indonesia.

As businesses try to keep on

top of new technology, so do

cyber criminals. In many cases,

they are one step ahead of the

corporate world. That makes

cyber security an increasingly important xom of the business

mix. Here to look at the major

issues is Mark Bregman, chief

executive officer with Symantec. Do you think

security needs to be a greater

priority in the design of

online marketplace and company websites, particularly knows

that require transactions?

Clearly it needs to be a

priority. The important thing

is it needs to be thought of as

part of the overall design of a

commerce site, rather than an

after thought that is added on

late in the design cycle. Do

you find it is treated as an

after thought? It has been in

the past. Today, most companies

are very aware of the threat,

so they are thinking of security up

security up front as they

architect their commerce

websites. We tend to -

consumers tend to use the cyber

world as much as the physical

world for business these days.

How can you build trust on the

internet? One of the

challenges with building trust

is education and experience.

All of us, as we have been

growing up, have learned things

like, "Don't talk to strangers,

lock your car, don't leave the

doors unlocked in your home."

Yet on the internet people

don't have that much experience. Using tools such as

the ones we and others produce

can make people safe, but they

have to know to use them and

how to behave and how to use

the tools, as they use the

internet for commerce and person communications.

Wouldn't most of it be common

sense? A lot of it is, but if

you don't have experience with

the internet, it is very easy

to be fooled. There is a need

for ongoing education, training

and communications to the

public about what are the kinds

of threats you might

encounter. Do you think that,

given the global nature of

business, there needs to be a

coordinated international

approach to fighting cyber

crime? The internet, as you

know, is global and it is not

localised. Yes, we do need international cooperation to

fight cyber crime. In fact, I

think global companies like my own are part of that solution

because we have a security

footprint around the globe and

work with local governments and

help coordinate technologies

and policies between different

jurisdictions. Do developing

countries, limited in

experience in dealing with

cyber crime, hinder this

process? I don't know if I

would say the developing

countries hinder the process,

but it is clearly in the

developing countries that we

see the most growth of internet

use and new users coming on to

the internet. In many cases

their regulations and policies

are less mature. So working

with governments in developing

countries, we can help them

move quickly to embrace modern

global standards for security

and for policies. What

countries would you say are

actually leading the way? In

terms of cyber security, I

think clearly the developed

world, countries like the US,

Australia, within Asia,

countries like the European

Union are certainly at the

forefront of policy and

technology solutions to

security. What about a country

like India, where the IT sector

is very large? The IT sector

in India is very large. To a

large extent, many IT companies

in India follow US or European

policies and techniques,

because they are doing

outsourcing for US or European

companies. What kinds of cyber

crime are we seeing against

business, and how advanced is

it? One of the changes that

has occurred in the last

several years is cyber crime

has shifted from being

primarily graffiti or vandalism

to being a calculated,

organised financial crime. In

many cases the people under

attack are not even aware of

it, because the criminals want

to hide their presence. That's

true with attacks on

individual, in the consumer

space and also true of the

attacks on company. Are job

seekers at risk of identity

thefts because of the data they

store in CVs? Job seekers are

potentially putting more information than others on the

web, with things like their

address, age and birth date. I

do not think they are

significantly more ex-posed.

The real concern is consumers

and described making available

collection information,

identification information,

such as in the US the associate

security number. That is not

all in one place, even in a CV

for a job seeker. The advent

of social networking sites and

the proliferation of those, is security technology keeping up

with that? There are new

security technology, such as

data loss prevention data loss prevention

technology, which allow

companies to monitor and manage what information can be sent

out of the company. For

example, you don't want proprietary financial

information to get out to

public websites. You want to be

sure that other forms of

intellectual property - in our business, for example, our

source code itself - doesn't

get out. We can protect against

that, whether it is going out

through email or a website such

as a social network. The

challenge is that social

networks are becoming more and

more important to consumers and to business, therefore

businesses are being forced to

open up their networks more

broadly. With technologies like

data loss prevention, they can

open up their networks and

still protect their proprietary information. Unfortunately,

Mark Bregman, we have run out

of time, but thank you.

Many people lost their jobs

when Lehman Brothers collapsed

a year ago. During the

subsequent financial crisis.

Now, as talk of a recovery

gathers pace, how are these

people faring in the real

economy, and just how much have

things improved in the last

year? When we first year? When we first met

Olympia, she had lost they are

job as an executive assistant

at a pharmaceutical company and

was fearful? You worry whether

you will be able to survey.

Today, one year later, she is

one of 15 million Americans

still look for full-time work

These are the jobs I have

posted for. She has applied

for hundreds of office jobs, but

but the only offers have paid

less than she gets on

unemployment. You were worried

whether you would be able to

survive. What's the answer?

The answer is you can survive,

you can do things. She gets by

mostly on unemployment.

Vacations, even discount

theatre tickets, are out. Now

I realise I was very well

paid. She fights the blues by

volunteering at a local nursing

home. Do you enjoy it when she

comes to visit? It's

wonderful. Olympia hopes they

are volunteer job becomes a

permanent one They see you,

their eyes like up. I would

like to work in a place like

this. When Rick lost his job

at microsoft, he knew he would

have a hard time finding

another one as good. He has

found some work as a software

tester, but it's all been

temporary. Every time I

interview with a company and

don't get a job, which has

happened a couple of times,

it's another slap in the face.

His wife Laurie, who also lost

her job at microsoft, has been

unable to find even temporary

jobs I'm a work every day kind

of person. I've never gone

through this, it's horrifying.

With four kids and a condough,

they dig into savings every

month to pay the bills. Last

week, they turned over the

condough dot bank. I did

everything right. I got

schooling, I stuck with my

jobs, I did my best, I didn't

lie, cheat or steal. Why am I

among the ranks of the

unemployed? My job is to find

you work. 5 million mention

have been out of work six

months or longer and the longer

they stay jobless the more

likely they are to downsize

their expectations or reinvent

themselves altogether. Mark

lost his job at an Illinois

paper plant and has retoind to

be a truck driver. Larry, laid

off from a wall street job, is

headed to nursing school.

Jason considers himself one of

the lucky ones. After more

than a year of life as a stay

at home dad, he has found a new

job in banking, but it pays

$50,000 less than his old one

The one thing we learned

through what happened was we

can live with a lot less and

still be happy. A difficult

lesson. One year later,

Americans are navigating the

job market with a combination

of resilience and despair. The

global downturn has played

havoc with businesses around

the world. For one small Indian

sweet shop it created an

opportunity to expand. For 50

years, Gianni's sold

traditional Indian sweets from

one shop in Delhi's old

quarter, then the founder's

grandson introduced new lines

likis cream and milkshakes.

When the financial crises drove

down rents, he saw an

opportunity to expand the

business from 9 shops to 24.

What's making headlines: The

standard says sun hung Kai

properties is reporting a 2%

rise in profit and plans to

sell properties worth HD $23

billion this financial year.

The Financial Times reports to US Federal Reserve chairman Ben

Bernanke's comments that the

recession is probably over in

the US. That's all for this

edition of bid bids. If you

would like to look back at any

of our interviews, please visit

our website. We look

forward to your feedback. I'm Whitney Fitzsimmons, thanks for

joifng me, enjoy your day.

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