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Good morning, welcome to Business Today for Australia network, I'm Whitney depits Fitzsimmons. Coming up - serious charges, former top communist official Bo Xilai to face trial on corruption. Small business wants less regulation from the next government in Canberra. And testing all the latest titles at China's leading games expo. First let's take a quick look at the markets and on Wall Street indices recorded modest gains.

For more on the market action I spoke earlier to Chris Weston from IG who started with some analysis of the unimpressive session on Wall Street overnight.Yeah, I think towards the back end of the day certainly helped out by a slightly more dovish article from the 'Wall Street Journal' that talked about the Fed potentially pushing back on some of their fresh holds for potentially increasing Fed rates potentially increasing Fed fund
rates down the the dollar came under quite rates down the line. Certainly bit of pressure and the stock market got a bit of market got a wriggle on towards the back bit of pressure and the stock
market got the back end of the day on the news that market got a wriggle on towards the news that they might be in the market the back end of the day on market for a bit longer there.And can you tell us just market for a bit about that economic data there.And can you tell us about that economic data that
was released there.And can you tell us just
about that was released in the US?Yes, we saw the headline number was better than expected. If you drill down the better than expected. If drill down things to businesses actually drill down the shipment side fell about 1%. So things to fell about 1%. So that may have fell about 1%. a negative ramification s on the tracking a negative ramification s the tracking of Q 2 GDP. Jobless claims increased a bit so the tracking of Q 2 GDP. so I think the headline numbers Jobless claims increased a were OK but if you so I think the headline were OK but if you drilled down were OK but if there was some worrying fe there was some Matics hence why the dollar got sold off as Matics hence sold off as well.To Europe,
the session there sold off the session there ended in the
red, was sold off as well.To Europe,
the session there red, was that mostly due to
profit the session there ended in the
red, was profit red, was that mostly due to was definitely a profit takers?I think there going on. The economic data we saw in Europe as the good last night. The IFO business confidence numbers was good, the Spanish job numbers, the unemployment rate fell for first time in 2 years and the UK GDP came out in line at 1.4% which a lot of people say is a good number but historically that's still poor. Were there earn comings from Orange and Tsemans and people take a bit of profits off the table.And can you tell us what's the latest in the commodity sector?We've seen a bit of upside from gold. Gold is trading $1,335. The again, very much down to the slightly more dovish article from the 'Wall Street Journal' last night.And Chris, before we go, how is the greenback trading against the other majors?We're looking at the Aussie dollar, we saw some good moves last night and cable and stirling dollar which is trading up towards the 154 level. It was the dollar being sold off because of that 'Wall Street Journal' article we saw.Thanks for joining us.Chris wet - wefson from IG there. Let's take a look at what's happening with currencies and commodities.

A management shake up has started at GlaxoSmithKline as the drugs giant tries to deal with the fall out from bribery scandal that's with the fall out from the bribery scandal that's rocked its China operations. Herve Gisserot will take over as head of business in China. Mr Gisserot is former senior of business in China. vice-president of its London-based European business and replaces Mark Reilly who will remain part of the executive team in London. Mr Reilly left China earlier this month shortly after Chinese police raided several Glaxo offices where they seized documents and detained employees. He's not facing any charges as a result of the extensive investigations by Chinese authorities. It's alleged a number of GSK executives in China bribed doctors, hospital and government officials in an effort to sell more drugs at higher prices.And the former politician at the centre of one of China's biggest political scandals has finally been charged. Bo Xilai has been indicted on charges of bribery, corruption and abuse of power. It's a scandal that has exposed corruption at the highest levels of the Chinese Communist Party. At its centre, Bo Xilai, the former party boss of Chongqing. A man once considered a rising star of the Communist Party and one of the country's most powerful officials. Now almost a year since he was expelled from the party he's been formally charged. TRANSLATION: I hope the Government will handle the Bo Xilai case in a fair and just way. Everybody is supposed to be equal before the law. As an ordinary zint - citizen I hope Bo Xilai will not be treated as a high-ranking official but any ordinary citizen who breaks the law.The case is being seen by many as a test of legal reform and President Xi Jing pin against corruption. TRANSLATION: We ordinary people don't approve corrupt officials. He embezzled all the money which should have been spent on building the country, helping the poor and children.Political commentators say the Government's aware of the public sentiment. TRANSLATION: In this kind of situation the newly formed leadership might want to speed things up and get the Bo Xilai case over and done with. This way they will achieve some sort of unity.The only details about the charges have come from State media. There's been no information about how much money Bo Xilai is alleged to have received in bribes. He's also accused in the Cover up of his wife's murder of a British businessman.To look at corruption in China, businessman.To look corruption in China, the recent unrest there corruption in unrest there and some analysis of the recent changes to China's banking system I China's banking system I spoke earlier to Peter Cai, Asian affairs report wer 'The Age'. Welcome to the program.Hi, Whitney.So can you just tell us what are your thoughts? You've just come back from China, what have - are your thoughts about this case unwinding around GSK in China?Sorry, GFK.GSK, Glaxo Smith Kyne - Kline.It's a crackdown on the pharmaceutical companies in China but this is widely known that the corruption in the medical industry is very widespread. It's not only the foreign pharmaceutical companies that are involved, the Chinese pharmaceutical companies are actually more deeply involved than the Westen ones and the Chinese doctor's actually poorly paid so they need a kickback to maintain a reasonable living standard. So there's a fear amongst the West ern company that the Chinese Government is singling them out for punishment. One of the problem s is actually more systematic and widespread.Do you expect that we will see even further cases of corruption like what we're seeing with GlaxoSmithKline?Yeah, it's periodically I think the Chamber of Commerce in China, European and American Chamber of Commerce, they're actually all saying the business condition in China is actually getting worse. So I think you never know if the Government decide to single someone out we may see further cases of corruption charges against the Western companies.As I mentioned, Peter, you've just come back from China. You've described to me earlier some extraordinary events that you saw unfolding whilst you were extraordinary events there. Can you just saw unfolding there. Can you just give us some there. Can some insights into what you did experience when were in China?I was in a far western province of China for about four weeks, where the population is not high in Chinese but Uighurs. When I was there, there were two attacks on the police station. There was the whole city was kind of being locked down. So the Chinese Government are sending the paramilitary troops and there were helicopters and cars, tanks on the street. So I mean the whole city was in a state of siege. I mean kind of reminds people of the Belfast in 1970s. You know, the British paratroopers were patrolling the street. So I mean it just kind of perhaps an extreme example of social unrest in China and it made a visible impact on commercial and economic activity. I remember, you know, went through this shopping centre right in the centre of the city and it was kind of a 10 storey building, there was hardly anyone there. So perhaps kind of an extreme end of what the Chinese Government is worried about, the social unrest in China.And this civil unrest, as you say, you know, there's been - there was a spate of episodes particularly while you were there, what sort of impact, I guess, will this have on the central Government's economic policy as they try to, you know, stem these sorts of actions ?They are very mindful of this because if you look at it, Chinese Government, you know, one, we are kind of Chinese
obsessed, very focused on the Chinese economic figures, and date a, economic growth rates. The Chinese Government, Beijing, is actually very concerned about social stability in China. To give you an example, the budget for maintaining internal social stability is much larger than defence budget in China and the Government is very worried about this growing economic disparity in China, it's going to create more social disturbance and it is really testing the ability of the Chinese Government to maintain social cohesion in China which is very important for the Government to stay in power for the party.As you say, Peter, the growing disparity between the rich and poor in China is becoming a massive challenge. Why is it then that the central Government hasn't really gone about introducing a solid safety net?It is trying to introduce a safety net where it never existed before but now it's trying to create a semblance, a minimum social, at least for the city -Is it a case of too little too late?I don't think it's too late but they need definitely to accelerate. Because the economic disparity in China is getting to a stage where it is getting really dangerous because if it's measured by GD coefficient which is an internationally accepted benchmark for measuring social instability, China is actually very, very high. So the Government is rr - very conscious of that. It's late but I think, you know, if they can speed up maybe, you know, there's still a lot of room for
there's still a lot of the government to scale back
this the this problem.And while you were there you also had this problem.And while were there you meetings were there you also had some
meetings and chats with bank officials. What's meetings and chats with officials. What's your view or what's being said about the changes to what's changes to the banking system?The banking system is quite interesting because for very long time China operated a system which is known as - officially known as the financial oppression. So the Government collects money from depositors, you know, basically paying them kind of in real terms negative interest and channel all this money through the State-owned enterprises for industrialisation. It worked kind of very well for a long time to speed up China's process of industrialisation. But it is not really kind of working anymore because for very long time they were the beneficiary s of cheap credit and they're very efficient uses of them while the private sectors are starved for fund. So Chinese central bank made first the bold move on 20 July when it decide to scrap the cap on lending rates but it is kind of easier path. The most important step for the Government to take is actually to liberalise the deposit rates. Because at the moment it is capped but I think that will be the most important step for the Government to take then they will be able to introduce competition into the sector. The banks need to, you know, start to make a living as a bank again because they have to manage the risk, compete and get customers.Peter Cai, thank you for joining us.Thank you, Whitney.Solid data out of the US economy this week has reignited concerns that the Federal Reserve might start winding back its stimulus program sooner rather than later. US new home sales bounced to their highest level
in

in 5 years and durable goods orders came in stronger than expected. orders came expected. Analysts say investors remain cautious ahead of the Fed's policy meeting next week.It's becoming an all too familiar story. Good economic news is bad for stock markets.,I think the sting in the tail of better US economic data increases the probability that the US reserve will start to taper the monetary stimulus later this year, possibly around September.I still don't see it being an absolute happen like people are talking
about

about September or October. I think if it does happen it will probably be towards the end of the year, November, December and it will be very, very light.Europe posted strong manufacturing data as well leading some to suggest the continent's recession may end later this year.If Europeans are consuming and obviously producing it means their confidence is getting higher and they're the largest consumer of Chinese goods. That gets back to our mining companies and cyclical stocks that have been under pressure over the last couple of months.And Chinese authorities now seem to be getting more concerned about a slow down announcing a mini stimulus package to cut taxes for small business, reduce costs for exporters and stimulate investment.The floor, the level of growth they don't want to see it fall below is around 7% and I think what we're now starting to see is the Chinese authorities starting to move ever so gradually to provide a bit of stimulus to the economy.US corporate earnings are on a definite upswing, despite some mixed results this week. Evan Lucas from IG Markets says nearly three quarters of companies have beaten profit expectations and half are ahead on sales forecasts.What that tells you is the way they're getting better on earnings urs which and that means cost cutting, and any additional discretionary spend they can get rid of they've done that.The US sector is overall good shape and that's fitting in with the better data we're sees out of the US.Here in Australia the bellwether financial stocks Macquarie Group says its annuity based businesses are doing well thanks to rising markets but those divisions relying on deal making activity have been subdued.As a consequence of that we're expecting the overall group result for the full year to be up on where we conditions and the very dependent upon market assumption we've made is market conditions remain unchanged.And that assumption will be tested by a big week ahead of data from the US with GDP, house prices and unemployment taking top billing along with another decision on interest rates by the US Federal Reserve.After a 7-year investigation the US Justice Department has filed criminal fraud charges against the Wall Street hedge fund giant SAC Capital. Prosecutors say the fund was involved in systematic insider trading netting hundreds of millions of dollars in illegal profits at the expense of members of the investing public. An indictment and civil case have been launched seeking an asset freeze and criminal money laundering penalties against the $15 billion hedge fund. That's posted some of the industry's best returns.It comes as American authorities launched what they say is the country's largest ever hacking fraud case. 5 men in Russia and Ukraine have been charged with running the hacking operation allegedly stealing the details of more than 160 million credit and debit card accounts from major US companies.We frequently bring prosecutions of the people who use the fruits of this kind of crime such as organisations of runners and cashers who go from ATM or store to store with stolen credit card information and cash out millions and cash out millions of
dollars in a matter of hours. The individual's charged and arrested in this case are the ones at the top, the ones who steal the data that they sell to the folks who cash from corporate out.Losses from the thefts from corporate victims
including NASDAQ, from corporate including NASDAQ, Dow Jones,
visa and JC Penny amounted to hundreds of millions of hundreds dollars.The gloves are on and the lines have been drawn on both sides of politics preparing to battle for the small business vote. It's a sector that small business sector that makes up half of Australia's work force and at the NAB national small the NAB national small business summit in Brisbane company owners outlined what they want from government.David Gandolfo considers himself a typical Aussie small business owner. His financial services firm has been operating for 5 years, employs around 30 people and turns over $250 million a year.He says his business is telling him an election date is urgently needed.Until the election is actually held the economy's going to be pretty flat, pretty stagnant and in our sector which is lending to small business we are a very, very good barometer of activity in the market and market activity is flat.Frustrated by red tape and recent changes to fringe benefits tax, Mr Gandolfo says he's keen to hear from both political parties.All people want is just some certainty. Whether Liberal Government they want to
know which one it's going to be and what the likely outcomes or policies of those governments will be.It seems he won't have to wait long with both sides of government making strong pitches to a sector crucial to the country's economy. Both Small Business Minister Gary Gray and Shadow Minister for Small Business Bruce Billson took to a podium at a summit in Brisbane. Not surprised they're vying for his vote Mr Gandolfo flew north to Brisbane to hear what they had to say.What impacts small business owners impacts a large part of the community and that finally is being recognised.Opposition Leader Tony Abbott made his pitch too saying if elected he'd appoint small business experts to the board of taxation, the Australian Competition and Consumer Commission and the Fair Work Commission.We don't want them to think of small business as members of the public might think of exhibits in a museum or animals in a zoo. We want them to understand the life of small business, we want them to understand the reality of small business because we want the decisions of these agencies to reflect that.Mr Abbott repeated his pledge to delay the increases to the Superannuation Guarantee Levy and maintain current laws on independent contractors. But Mr Gandolfo thinks both parties still need to present more detail.I'd like to hear more tangible commitments and more specifics about what sorts of regulations they plan to repeal or review and how they plan to simplify the process of literally just running a business so that you can spend your time running your business and producing something rather than spending a lot of your time complying with a whole lot of red tape. De -Despite all the talk, what this small business owner really wants is an election date.One of the world's biggest gaming expos is under way in Shanghai with more than 450 companies showcasing their newest titles. Increasingly game rers playing more on their mobile phones which is sparking the development of new products in response to the trend.This multiplayer online role playing game is one of the most popular in the world.Players compete against each other online access to potentially billions
of

access to of other players. Some companies that have focused on single companies that single play games in the past are now looking to add single play games in are now looking to components to their existing products.Star craft 2 we kind of see products.Star craft 2 we of see it as two separate games almost. One is a game that you of see it as two separate can just play almost. One is a game that can just play on your own like a single player game and that's a full game on its own. And other part of it is the online part of it and the online part we kind of hope that it's we kind of hope that it's a more competitive experience compared to your other online games that you play.Blizzard is moving its games online at a time when mobile phones are taking over the industry.Last year alone mobile phone game s broubt in more than 3 billion yuan in China. And they have more than 170 million people using their cell phones to play online games across country. TRANSLATION: I play traditional online games a lot when I was a college student. I was so addicted to them that I spent a whole festival playing. Now I'm an office worker, if I have time I like to play mobile gameses to relax and I think the production of online games are good enough. TRANSLATION: I play mobile phone games a lot because I think it's more relaxing. I have played traditional online games but that was too complicated with so much stuff like equipment. And it also costs much money and energy. I don't like it anymore.Many game exhibitors say they are now working on changing the game platforms from traditional software players and download to their computer to games that run on mobile phones.And one TV set manufacturer wants to take the change even further. TRANSLATION: We have this game used the network to connect mobile phone with a TV set. Players can use the mobile phone as a game controller. It's very convenient.But game developers say the online mobile games have a long way to go to catch up to the quality of traditional games.The mobile game industry, this new market could be a great field to work on for the future. You have good access to this market, you can reach with your content many, many of the players, of the gamers. On the other hand those markets tend to have somehow not so high quality content already on the market and - or on the platforms.The online game
industry in platforms.The industry in China brought in nearly 34 billion yuan over the past 6 months and more than 2.5 billion yuan of that money came from mobile phone users. The exhibition will run until Sunday.The evolution of what's proclaimed to be the world's biggest dinosaur park has taken a giant step forward. The local council has given Clive Palmer to install another 160 life-sized dinosaurs at his resort on the Sunshine Coast. It might be quiet now but soon these dinosaurs will come to life. Some may even hatch or fly.They will join those already at the resort.From small ones, from eggs, all the way up to 20 metre long beasts and 6.5 metre high beasts. So it will represent the full dinosaur family.The park received unanimous council approval with one council describing it as classy.Outside the chamber he'd reassessed.This is very 1980s. I've got no concern about this at all. Probably classy is not the right word. I'd probably - I'd like to rephrase that a bit. It's classic, it's subtle, it's small. It's low impact.Despite assurances from council that the new arrivals will be small and subtle, resort management has confirmed that there will be an 8-metre twin to the T-Rex behind me and a 10 metre herb vor. Perhaps he will be used to trim the golf course.Since Clive Palmer bought the resort he's lost the PGA golf championship and occupancy rates have plummeted.For the last however long Clive's owned it we've had nothing happening there. So it's a big thumbs up from me.Should we use it as a flagship to coming to the Sunshine Coast? Probably not. I mean we bang on all the time about our natural assets. Dinosaurs are not a natural asset.The dinosaur park is scheduled for compleex - completion just before Christmas, just in time for the holidays.Let's take a look at what's making headlines around the region. The 'Wall Street Journal' reports Bangladesh police will soon file formal charges in relation to the Rana plaza factory disaster. That's all for this edition of Business Today. If you'd like any more information on the program please check out our website or you can follow me on Twitter. Thanks for joining me, enjoy your day.

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This Program is Captioned Live.This morning - the terrible moment that a train came off the tracks at high speed in Spain killing at least 80 people. A major search under way in NSW after a 9-month-old baby is kidnapped by his father.The Government warned its offshore asylum seeker policy is almost certainly in breach of international human rights.All of the individuals that are there, the conditions appear to be extremely onerous and Harris - harsh.And the AFL's chief denies warning Essendon of ASADA's doping investigation. Good morning, you're watching ABC News 24, I'm Joe O'Brien. We've also got two media