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Live. The top stories from ABC News - the Immigration Minister Tony Burke says he will Manus Island detention Burke says he will inspect the within days in Manus Island within days in response to allegations Manus Island detention centre
within days in allegations of asylum seeker within days in response to abuse. A former abuse. A former senior security manager has said that manager has said are being raped and tortured
with the

staff. Mr Burke says the allegation staff. Mr Burke says allegation need substantiating and the government still
intends to massively expand the facility.Police in Victoria say they are disappointed that say they are disappointed child killer Derek Percy didn't giver them information about missing children before his death this morning. The 64-year-old died in hospital. He was jailed for killing a girl in Melbourne in 1969. Police suspect Percy could also be linked to another eight infamous child abductions.Queen Elizabeth has visited her new great grandson at Kensington Palace. The Duke and Duchess of Cambridge have spent their first night out of hospital with their newborn son. There is still no word on the name for the third in line to the throne.And a sell-out crowd has packed to the MCG tonight to watch the Melbourne Victory take on 18-time English champions Liverpool. Around 95,000 fans have poured into the stadium to watch the Reds first ever match down under in Australia. Those are the latest headlines from ABC News.

This Program is Captioned Live.Tonight - the inflation dragon out of puff.A tame read on consumer prices gives the interest rate debate a

I'm Ticky Fullerton, you're watching The Business. Businesses say consumers are calling the shots on pricing. But could petrol prices fuel higher inflation down the road? Missing millions, a Missing millions, a widening scandal, a biotech firm Phosphagenics.Is the carnival over in Brazil? A special look at Latin America's showcase economy as the cracks start to appear.

And we'll be talking to Brazilian expert Patrick Carvalho about the BRIC powerhouse, the challenges ahead and the opportunities for Australian business. First a quick look at the markets.

Well Australia's interest rate future remains as uncertain as ever despite the latest reading on inflation.Whilst the headline CPI is weakening the Reserve Bank's preferred measures look to be firming and more recent data suggests the RBA will be grappling with a mix of uncomfortable forecasts. Here's finance correspondent Philip Laskar.Not much inflation here, electronics retailer Hans Vanderstadt has had to contend with stiff competition and cautious consumers.Generally over the last several years prices have been very stable so I think the consumer's really been reaping the benefits of that.Falling electronics prices help deliver a modest rise in the CPI for the June quarter leaving Australia's annual inflation rate at 2.4%.The big fall was actually petrol which is a combination of both oil prices being quite low and the currency being quite high early in the quarter. So petrol went down 3% and it has a very big weighting in the CPI.But the Reserve Bank's preferred measure showed price increases were picking up slightlyBasically the inflation number tells us that inflation is under control. It's running around the mid point of the Reserve Bank's target range which is where you want it to be.Adding to price measures were housing costs, rents and furniture, another sign housing sector's gaining momentum. When the Australian dollar did start to fall it also made its mark on the numbers.One stand out was the fact that tradeables inflation, which is for all those goods and services for which there's an exchange rate effect, that actually rose in the quarter for the first time in about 3 or 4 quarters.One thing is certain, the falling petrol prices in these inflation figures don't reflect the current reality at the pump where steep increases have been the order of the day. They're the
certain to boost inflation down the track.Higher petrol prices also act as a brake on activity because they're like a tax increase for anyone with a car. Robbing consumers of those extra dollars they might have spent elsewhere in the economy.So it remains to be seen whether higher petrol prices are a greater threat to the economy by stoking inflation or strangling consumers.If you're a company relying on transport yes, your costs will go up but it's going to be very, very hard for those companies, whether they be manufacturer s or retailers to pass on those cost increases to Australians because demand is so subdued.Petrol prices direct problem but their rise direct problem but a factor in Australian dollar. their rise is. The weaker are already hitting him with price hikes because of are already hitting him price hikes because of the
weaker currency are already hitting him with
price hikes because of weaker currency and he can't weaker currency and he just not that sort afford to absorb just not that sort of margin or that amount of money in the pricing to absorb it pricing to absorb it and it's come to a point now where you have to pass that on to the consumer.Just where all this leaves the Reserve Bank is anyone's guess.What the inflation number tells us is if the Reserve Bank is inclined to cut interest rates, and I think they r just not at the next meeting, I think they will cut it towards the end of the year is inflation is not an impediment to any rate cut.But a rate cut next month, even with an election in the wind, would signal a concern that the inflationary forces in the economy might win out as the mining boom cools.A small Melbourne biotech has fired its chief executive and 5 other staff are under investigation after the company uncovered a multimillion dollar discrepancy in its books. Phosphagenics is the company behind a cellulite cream called elix - Elixia that promises startling results but now the company is looking for a new boss and its money back alleging workers helped themselves to nearly $6 million over 8 years.They have been spruiking a wonder cream to make cellulite go away and enjoyed prime time billing on tabloid TV.Now scientists believe they've found that magic elixir. That product is Elixia.The cream penetrates 4 to 5 times deeper than any other. The results still stun this scientist.Independent studies have shown by using Elixia body shaper cellulite is reduced by an average of 38% over 28 days and an amazing 57% after 56 days.But now the company behind the cream Phosphagenics is in need of a makeover itself. On Monday Dr Esra Ogru resigned as a director of the company after Phosphagenics uncovered accounting irregularities. the company has revealed the full extent of the discrepancies, $5.7 million in funds over an 8-year period.The fact that it has been going for so long does indicate that there's something amiss with the systems that the company has.Phosphagenics alleges the money was misappropriate ed through the payment of false invoice. The company has dismissed Dr Ogru as an employee alleging she is impolitic Kated in and benefitted from a fraud. Its alleges 5 other staff members were involved. In a statement to the market Phosphagenics says it will pursue all available claims it believes it has against the persons it says are responsible.I think the company can say that but I mean the processes one has to go through, one, to find the people who are alleged to be culpable and then to go through the court processes to get judgments against those people, so it's not something that's going to happen tomorrow or next week.Phosphagenics, which also develops treatments for dibeeties, pain management and acne has total assets of $64 million but nearly $40 million of that is intang nls, namely intellectual property. Michael Heffernan says a loss of nearly $6 million in cash, even if it's eventually recovered will hurt the company whose market value is just $117 million.It is a significant hit. Maybe it's not a substantial hit that's going to mortally wound the company. It's hard to say just yet.While Phosphagenics shares bounced 4.5% on today's announcement they've spent a long time in the doldrums. After peaking at 78 cents in 1996, Phosphagenic shares have sp spent the most decade trading below 35 cents and closed today at 11.5 cents.It last made a profit in 1999. So, you know, I think that underlines the fact that if investors are going to invest in, if you like, bio pharmaceutical companies they are taking a risk.If you've tried everything else and want something that actually works, Elixia body shaper is now available nationally.Dr Ogru did not return the AB's calls and Phosphagenics says its priority is to recover the lost funds and costs. But the company would not say whether police were involved. While Phosphagenics says business is continuing uninterrupt ed and morale is excellent, it may take more than even a miracle cream to restore investor confidence in the company. Let's take a closer look at what happened on the markets today. I spoke to mar tin Lakos from Macquarie private wealth. The release of the HSBC manufacturing PMI figures for China took a little gloss off the markets, at least early in the morning?Yeah, it was very much a data day, along with that data which came at 47.7, that was below analyst expectations of 48.2. I guess the key here is that the number is still below 50. So manufacturing continues to contract in China. What's interesting for our day was the mining sector was the best por former of about 1%. Aussie dollar was around 93.19 in dollar early parts of the day but came off. That might have been more about our own inflation data about our own inflation data at 0.4% annualised about 2.3 which is 0.4% annualised is certainly giving the Reserve Bank some room now to cut rates is certainly giving in the first Bank some room now to which
in the first week of August which is certainly our in the which is certainly our view.
Interesting, in the first week of August
which is Interesting, the market was up about 36 points but just couldn't hold it, as you mentioned, and closed up 18. Apart from materials we had the energy sector down, we had interestingly those A dollar related stocks with offshore earnings quite week as well. QBE, Brambles, Fox and CSL were all down.You're saying despite those PMI figures the miners did quite well today?They did very well. Look, we've seen obviously from BHP and Rio and Fortescue and we'll talk a bit about Atlas later on, they've come in line in terms of their production numbers. Costs seem to be under control. They're clearly starting to get a benefit or will get a benefit from the weaker Aussie dollar and certainly showing that they're able to execute on production and development as well and along with the fact that they were sold down very heavily, valuation is starting to look quite compelling. To give you an idea, since 3 July both BHP and Rio have rallied 11 and 12% respectively.And Atlas Iron production figures came in better than expected?2.2 million tonnes of production, costs pretty much in line, a modest upgrade to their resources and again valuation now they've basically shown their ability to deliver, that valuation starting to look quite interesting as well and the stock was up 9% today to 91 cents or up 7.5 cents.The hunt for yield continues and Telstra doing well.The hunt for yield is still on and a bit of an unusual day. Telstra had a big day, rallied to a high of $5.04. It was rallying right through the morning from lows of 4.96. Closing at $5.01. At $5 hnth 01 it's still yielding 5.6% fully franked for domestic investors and the banks were strong and all data has come down with the view that inflation looking to be benign are the Reserve Bank is now set to cut rates.A good day for shareholders, thank you for joining usAlways a pleasure.To the other major movers on the local share market. Financials were mostly higher and all the banks posted gains.

It's a country that was tippeded to be the powerhouse of South America, rich in natural resources and agriculture, Brazil has been one of the fastest growing developing countries. In the past decade more than 30 million Brazilians have been pulled out ove poverty. But mass protests against government spending have revealed key struck - structural and social problems.A fiery welcome for the Pope.His visit has cost Brazilian taxpayers $53 million and these protestors are not impressed. TRANSLATION: That's too much. You could invest in health or education. This is not a religious protest, it's a political protest.It's the latest expression of public fury over government spending. In June, more than a million people protested about the billions being spent on the upcoming World Cup and Olympics. While the public face poor infrastructure, rising prices and widespread government corruption.Population is not getting anything back in return. So far taxation system in Brazil was one of the in Brazil highest in the world.Marcelo's highest business in Brazil. He says the unrest has reached breaking point.Something will have to be done otherwise I believe that the country will go into civil war.A scary prediction for the world's 6th largest economy. Brazil is one of the developing powerhouses along with China, India and Russia.And as a resource-rich country exports to China helps sustain economic activity. It's survived the global financial crisis through aggressive public spending and expansion of credit to households.That model is unlikely to deliver comparable growth in the next few years and Brazil really needs to undergo a reform and a restructuring to identify other ways of achieving growth.Poverty has been reduced an more people have been educated than ever before but there's still a long way to go with the economic development of Brazil.Growth in 2012 was lower than initially expected at 1% and inflation has hit a 20-month high.There's still an issue with domestic cost structures in Brazil and also the very high exchange rate, having some impact on prices and on despite the riots and economic despite the difficulties, analysts say difficulties, analysts say the fundamentals of the still strong and predict future fundamentals of the economy growth. Brazil's resources still strong and predict future growth. Brazil's resources and
agriculture will growth. Brazil's resources agriculture will be in demand
as growth. Brazil's resources and
agriculture as other regions develop and it's still attracting foreign investment.You've had companies that have gone there recently, carsales.com has purchased 30% of a comparable company in Brazil.Julia Gillard was the first Australian PM to visit Brazil in 2012 and now the two governments have a strategic partnership, including plans to meet annually. And there are more opportunities for Australian companies.Obviously the resource sector and agriculture are natural fits for both Brazil and Australia. There's education is a big opportunity, 16,000 Brazilian students studying here in Australia.There is still a great perspective to generate good profits by generating in the country.But unless the public sees substantial structural changes the riots could continue and any growth projections may be difficult to achieve.And joining me from Canberra is the former head of economic studies division at the Federation of Industries of Rio de Janeiro and now at the ANU, Patrick Carvalho, welcome to the program.Hi, Ticky.Let me start with these riots first. How worrying do you feel it is this public anger that there seems to be about the government spending on the World Cup or the Olympics and now even the Pope?Well, I think as well, justified in its widespread resentment against corruption. I think the riots will fade out eventually towards a civil war, I and definitely we're towards a civil war, I think
that's a dire prediction, that's not going to that's a dire happen.There's no that's not going happen.There's no doubt
there's been an extraordinary journey of reform with the Real plan in '94 and your currency and then monetary reform but growth from now on I see yesterday the GDP growth forecast has been lowered to 3% by the Ministry of Finance and analysts say more like 2.3 and 2.6 next year. Slow down in consumer spending and quite low housing credit. Where's the growth going to come from?I think you're right. Like in the past 15 years Brazil has done very well in some aspects such as flexible exchange rates and controlled public finances and low inflation but something more needs to be done and we need to look for reforms especially in tax reform and labour market reform as well. And that hasn't been done the last 10 years so Brazil - - has to rely on China to grow in the past 10 years and now as we see China is starting to decrease a little bit their growth rate and that impacts Brazil as much as Australia. So Brazil now needs a new formula and the formula to go forward is definitely through reforms.One of the other big issues, I guess, is infrastructure and I noted that Westfield chief operating officer out there in Brazil Peter Huddle said about Sao pall Paulo the super rich have given up using cars and looking out the window amazed at the helicopter traffic criss-crossing commercial roof tops. I was there 15 years ago and that was going on but presumably the traffic problem underneath is getting more problematic?Yes, traffic jams in Sao Paulo especially are just awful and as you said, some rich people, I think Brazil has - Sao Paulo has one of the highest rates of helicopters per capita in this sense because people just give up. I mean those that can.Was it a big sort of loss of confidence when Westfield actually pulled out of its major joint venture in the almaidia joint venture within the last 12 months? Did that change how business feels about pra - Brazil, do you think?Not a particular case is going to change the course of investment in Brazil but definitely it's more of a symptom what's been happening because due to lack of infrastructure and the not clear scenario towards business environment has hindered some further investments. The much-needed investments in Brazil.I was fascinated to see your coauthoring of this Lowy Institute report Great Southern Lands and the importance of the manufacturing industry to Brazil and particularly food manufacturing where you seem to be much further ahead than we are. And that the Brazil Foundation is quoted as saying the Australian Government seems to have given up on its role to make industrial policy, letting the mining industry abduct the country's currency ultimately crowding out other industries and that in the last decade Australia deindustrialised, even deserviced itself and Brazil has learnt the lessons from centuries of exploitation from gold, sugar, coffee and beset by this monoculture, monoclient economic model. I thought that was fascinating. Do you see it that way?Well, I believe Australia, as well as Brazil, has to exploit and benefit from its competitive advantages so if we have a scenario where Australia is a very good in services as it is, for example, education and finance, we should exploit that instead of looking backwards, we should look forwards and enjoy whatever you have the most to benefit out of it.Education seems to be a big opportunity for Australia with Brazilians, actually, doesn't it?Absolutely. Brazil, - Australia has more than 16,000 Brazilians studying in Australia and that number can increase dramatic Atley. So the Brazilian Government has already put a huge amount of funds towards skolorships for
PhD students all over the world

and Australia should benefit from PhD students all over the from that as well.What about other businesses from that as well.What other businesses and other investment other businesses and indeed could make in Brazil? I'm thinking of presumably our expertise following our limb - expertise following our limb Olympics or is that just too long ago and are Brazil getting expertise from elsewhere these days?No, I think Australia has much to teach Brazil in terms of infrastructure and hosting the logistics of international events was well done in Sydney in 2000 so Rio now next year will host the FIFA World Cup for soccer and in 2 years later in 2016 the Olympics and definitely Australia business can go and teach a lot how to do it and how do do it well.What about trade between the two countries because we don't have a double tax treaty, do we?No. I agree with you that a trade between two countries needs to improve and that has to be done through government level with business people engaging with each other and that's what we're trying to establish right now.Patrick Carvalho, I could talk to you for a great deal longer but thank you for giving us a taste of Brazil.Thank you, Ticky.And brief look at other business stories making news. A skeez on margins has taken a bite out of the profits of technology giant Apple but the company has pleased Wall Street with a surge in sales of its iPhone. Although its quarterly profit of US $6.9 billion is down 22% on a year ago it's still better than expected as it sold a record number of more than 31 million iPhones. But sales of iPads have been disappointing at 14.6 million.Bentley has announced its new uber expensive super luxury SUV will be built in the UK. It means at least another 1,000 jobs for the country's resurgent car industry and manufacturing sector. The Slovakian capital brats - Bratislava was mooted as an option.And Switzerland's biggest tell com's crup Swisscom is mourning the death of its executive. He's thought to have committed suicide at his home. A year after he became CEO in 2006, Swisscom bought Fastweb which was then written down heavily during the European debt crisis. More recently Switzerland's competition body has opened a probe into accusations Swisscom abused its market position in business broadband services. Swisscom's majority owner, the Swiss Government, has expressed shock.Before we go a look at what's making business news in overseas newspapers. The 'Wall Street Journal' says US federal prosecutors are preparing to announce criminal charges against SAC Capital advisers, the hedge fund giant has been the target of multiyear investigation into alleged insider trading.And London's 'Financial Times' says Singapore's rise as a global centre for managing money has taken a big step forward with assets under management in the city State rising by nearly a quarter last year to $1.3 trillion. It's closing the gap with Switzerland and London amid the growing wealth of a new generation of Asian business people.And Britain's 'Daily Telegraph' says Britain was Europe's top destination for foreign investment last financial year attracting 11% more projects than the year before. The Government says the 1,500 new foreign investment projects created or protect ed 170,000 jobs. And another 1,000 for Bentley. And that's The Business. You can watch the show Monday to Thursday at 8:30 each night on ABC News 24 as well as after 'Lateline' on ABC 1. I'm Ticky Fullerton, thank you for watching, goodnight.

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Tonight on 'The World', more deaths at sea as the PNG plan gets more complicated.We are asking the Australian Government to realign its program to PNG priorities. That's what we said on Monday. I don't particularly appreciate being miss represented by others for their own political interests. Peter O'Neill rebukes claim by the Australian opposition that the asylum seeker plan will give PNG greater control over the foreign aid budget.

Also ahead - as a group of asylum seekers is flown out of Manus Island to make way for the Federal Government's so-called PNG solution, there are claims vulnerable young detainees have been sexually assaulted in the detention centre. The Pope is in Rio de Janeiro where tens of thousands of young Catholics have flocked to the city's Copacabana Beach for the world's first mass of the World Youth Festival. It's midday in London, where the royal baby is spending his first full day at home in Kensington Palace, after being introduced to the world on those famous hospital steps.

I'm Andrew Geoghegan. Thanks for joining us. At least five people are dead and dozens missing after a boat carrying asylum seekers sank off the Indonesian coast. The boat was just 5 kilometres from shore when it started to break pay part. Local fishermen went to their rescue and managed to find more than 180 survivors. They've been moved to a small town in Java, while authorities continue to search for the missing. Indonesia correspondent George Roberts reports. This windy mountain pass is the highway to the south West Java coast where many boats have left from over the years in the hope of making it to Australia. Yet again it's ended in tragedy. Local fishermen were the first to respond, rescuing more than 160 people since about this time yesterday afternoon. The final death toll isn't known . But what is known is that among the bodies that have been retrieved from the sea is that of a small girl. It's not even a week since the Prime Minister Kevin Rudd announced that anybody who tries to get to Australia by boat will be denied any opportunity of being resettled in Australia and will be forced to live in Papua New Guinea. While some styles have told us that that's forced them to cancel any plans they had to go to Australia by boat, others say that life in an Australian-run detention centre still beats being stranded here in Indonesia. For more, Indonesia correspondent George Roberts joins us on the line. George, I gather the search is