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This Program is Captioned Live. The top stories from ABC News - the PM, Kevin Rudd, has again challenged Tony Abbott to more debates in the lead-up to the election. night's debate, the Opposition Leader made I infrastructure the theme of today's campaigning. He promised to give a yearly campaigning. He give a yearly update to Parliament on major projects if he is elected. Kevin Rudd announced $35 million to help retrain manufacturing workers. Human trials of an experimental skin cancer drug is been suspended. Nine Thai shents in NSW were injected with Dz13 two years ago. The ABC has learned serious questions have been raised about the science behind the trials. The University of NSW is investigating. New footage has emerged of last month's riots at the detention centre at Nauru. Much of the facility was burnt down during a pro test. The riot has heightened any opposition to re-settle asylum seekers there. And strong winds have brought down trees in Melbourne's north and east. Parts of Sydney have also been hit with dusts of up to 100km/h. Emergency services say one woman in the city's south-west has been streeted for cuts after a tree fell on her head. Those are the latest headlines from ABC News.

Tonight - more of the shine comes off Newcrest. One for the record books as Australia's largest goldminer posts its biggest ever loss.We believe that someone has to be accountable for this loss of shareholder value, which in fact is about a third of the shareholder value prior to the acquisition has been lost now with this writedown. I'm Ticky Fullerton. You're watching 'The Business'.

This Program Is Captioned Live. Talk of cost cutting saw Newcrest's share price jump, but it's facing huge writedowns and an ASIC investigation. Feeling the heat from shareholders of the as Newcrest scraps a final dividend. What China's worth to Aussie households. The numbers might surprise you. And - signs of the times. Why a record number of companies are going bust. First a quick look at the markets. More woes for Australia's biggest gold producer. Newcrest Mining has posted a 5.8 billion dollar loss, the biggest in the company's history. The plunge in the gold price has forced it to write down the value of its mines by more than $6 billion. The disappointing result comes as mining costs rise and investors question whether gold is the safe investment it once was. Newcrest's annual result revealed what's known in mining terms as a dirty big hole. A biggest annual loss in the company's history. It was no surprise, the company had already warned of massive writedowns in the value of some of its mines but who knew first? The analysts or the market, is being investigated internally and by regulators.It is a very significant issue for shareholders who may have been disadvantaged or some shareholders may have been advantaged. And that's a very serious issue. Ultimately, Newcrest has been forced to write down the value of its mines and investments by billion. In mines and investments by $6.2 briefing away from the cameras billion. In a 45 no, mention was made of briefing away from the no, mention was made of the no, mention was investigations.The fall in gold prices from a high of nearly $1800 an ounce in October 2012 to a low of US $1,200 in late June 2013 has reframed the operating environment for Newcrest and for all goldminers.What was a surprise was the size of the drop in underlying profit, which has more than halved. The net loss was $5.8 billion, down from a profit of more than $1 billion the year before, missing expectations by more than 5%.It's not a good result. Not at all. I guess it reflects earlier investments that were made, particularly the Lihir decision which was made for much happier times for the gold market.We believe someone has to be accountable nor this loss of shareholder value, which is about a third of the shareholder value prior to the acquisition has been lost now.As well as the gold price slump, earnings were hit by production disruptions at several of its overseas mines but some analysts say the financial problems are also related to poor performance.Over the last couple of years they've been able to raise billions and billions of dollars and it means that many of the companies that have become fats and lays hee and the costs have gone up. If you have a 30% decline in commodity prices it's going to show who's been swimming naked, basically. At the announcement, Newcrest admitted its medium-term outlook would depend on market conditions which are currently volatile but put a positive spin on the short term.We've reconfigure ed our plans to deliver cash flow. We intend to take further action it is business margins decline.For is
the shareholders association, is sceptical.We acknowledge that debt we don't believe we can at this stage accept everything that the company is telling stage accept shareholders. Despite no dividend, the company is telling
shareholders. dividend, shares in Newcrest are shareholders. Despite no are up 8% to $12.39, off the back of the gold are up 8% to $12.39, off back of the gold price, which is sitting at around $1330 US is sitting at around an ounce. As for the alleged breach of ASX disclosure rules, the investigations are ongoing. We may not real richer but a new report has found the average Australian household is cashing in on trade with China to the tune of thousands of dollars a year. Business leaders meeting today were talking up Australia's trade ties with China and talking down the risks. It comes as the Federal Resources Minister Gary Gray played down fears that the mining boom is over. $14,000 per hus hold, per year. According to a new report commissioned by the Australia China Business Council, that's how much Australia's bilateral trade with China is worth to the national economy.The benefits from free trade have always been too great to ignore. Too many commentators look to China with a wary and suspicious eye. But selling that message to the public has been the hard part. Especially in recent years, with a steady flow of news about factory closures and manufacturing jobs heading overseas. Tim Bradley says the study adds up Australia's imports and exports with China and adjusts for foreign ownership to arrive at the total benefit per household.It's all contributing in terms of greater incomes, greater job opportunities a more diverse economy, cheaper products. You wouldn't see it, it's very much hidden, but you would certainly feel it if it wasn't in.Gerard Sutti is one of those at the rough end of the bilateral trade relationship though. His tooling and moulding business is running at a third of capacity and hasn't made a profit for three years, thanks in large part to cheaper competition from China.We pay an hour here what the Chinese would pay a month. But Frank Tudor from the Australia China Business Council says the structural adjustment in the economy started in the 1980s with a succession of decisions to break down trade barriers.We had made a lot of the hard decisions well before our trade with China. To link the two and say it's as a China
result of our trading with China we're having issues in manufacturing or elsewhere in the economy is just a flawed argument. One aspect of the relationship that will need careful nurturing is investment in the resources industry which has seen a string of major projects delayed, cancelled or scaled back.Australia's reputation general tend to go up by reputation or reputations in general tend to go up by the staircase one at they come down

they come down in the elevator.
It should be no surprise to anyone that there be a pause in capital investment. But when I look at it in some of the energy areas, I see a growing appetite. The biggest casualty has been the Hong Kong-based Citic Pacific whose Sino iron project in the Pilbara has been delayed by three years and counting and seen a $7 billion cost blow-out.There have been substantial cost blow-outs. Those cost blow-outs in my view have been cost blow-outs due to the technical nature of the tasks.While the minister is optimistic that large scale foreign investment in Australian resource project also continue, he says the mining boom is now moving on from the investment phase to the production phase.In the year 2000, we exported less than 100 million tonnes of iron ore. In 2018 we will export 820 million tonnes of iron ore.Whether that will be enough to keep households happy and wealthy if manufacturing jobs continue to disappear is another question altogether. Offshore interest in Australian miners helped drive the local bourse past the 5,100 mark. I spoke to Ken Howard at RBS Morgans earlier. Ken Howard, that big mid-session turnaround, what sparked the rally there?It was a little surprising. I think if investors had been looking at US equity markets on Friday night, they would've expected our market to be down, but the story was really there in commodity space, the metals marketing have been having a very strong couple of weeks with the Australian dollar international
turning around, I think that international interest in Australia's big miners was certainly red hot today. So that sector led the charge. It finished up about 3%. So quite a solid result. But although it started the day being the only sector in positive territory, it was a broad-based rally forest of the market as the day wore on. So there was a bit of clear in for everybody. We saw the Newcrest numbers earlier, but there were a few other numbers coming out today, profit season. Take us through JB Hi-Fi numbers?The JB Hi-Fi numbers were quite impressive actually. It's a sector that's been struggling in the first half of the year. They delivered close to 6% revenue growth for the year all told and importantly for JB Hi-Fi, that strong revenue growth has continued into the current financial year. Their new home working fout
concept store seems to be working fout for them and they've flagged 10 new home concept stores for the 2014 year as well as another 12 JB high-standard stores. JB hi-fi looking positive and low interest rates certainly seem to be doing their bit for its business.On the other hand, investors a bit lukewarm on property Group G PT. Why was that?I think the company is a bit more pedestrian all-up. That's what you expect out of a property trust. The company owns premium real estate. Their leasing levels are about 98%. It's doing everything it should be doing as a property trust. The company's guiding for something like inflation plus 1% as far as earnings growth for the 2014 year and as far as property trust investors are concerned I'm sures can that's exactly what they're look for. An income stream that will keep pace with inflation and a management team that will keep their eye on costs.That's very interesting commentary. And UGL Limited attracted some buying support after its full-year result there.UGL has had a rotten year. So has most of the companies in the mining services and engineering space. JB Hi-Fi with the share price is bup 100%, UGL's price is down 50%. The company has two business. A property business which was reporting earnings up about 5% and an engineering business which saw earnings down about 60%. But as a group, it's a pretty unattractive set of numbers. You have profit down 40% and gearing up 33%. But that's the cyclical nature of the industry they're in. United Group is a very strong - UGL is a very strong engineering company with plenty of contracts on their books to take them into 2014 and the company's still hopeful of achieving a flat result for the current financial year. Ken Howard, thanks nor that wrap.Thank you, Ticky.To the other major movers on the local share market: Companies push themselves into the digital age with mixed success. But many of the top tech services businesses are from India. Tonight, giant telco services company Tech Mahindra announced its first quarterly result since its formal merger with a giant IT services company. Profits for the June quarter were up 27% on last year. The leadership team was in Sydney to talk to analyst, an clients and I caught up with Rohit Gandhi, senior Vice-President for Asia Pacific India, Middle East and Africa, and Ted Pretty, the advisory Chairman for Australia and New Zealand. Welcome to the program.Thank you,Thank you. Rohit, you've actually got some very ambitious plans for where you want to be in Australia by say 2015?Absolutely. In fact, as a company, we have plans to almost double our revenues by 2015 and we expect that Australia will contribute close to 10%. I think that's about $500 million, isn't it?That's right. Absolutely. We are superexcited about it. And this would happen through organic growth as well as through inorganic growth as well. It's also very competitive. I'm looking at the other Indian companies. If Australian company looking for services, why would I choose Tech Mahindra over, services, why would Tech Mahindra over, say, a TCS data consultancy services?Tech Mahindra is one of the top 5 Indian based or Indian origin ICT companies but it's No. 1 in telco. Largely from the heritage of the Tech Mahindra side of the business. So we're quite focused around a number of key towers. Telecoms is very strong. The second one is around the enterprise market and the third one around BPO. A large measure of the competition is more in that BPO environment. When you say BPO?Business process outsourcing. So we're not the traditional outsourcing company. We tend to get involved in a more end-to-end relationship with the customers. So in terms of your key clients that you have in Australia now, what sort of names are we looking at?We have major customers in the banking sector. We do a lot of work for National Australia Bank, we do work for Suncorp, we could work for Optus you What do
mentioned. Vodafone as well. What do you hope that you will presumably it
be able to offer them? Because presumably it is all about getting ahead of the curve on the innovation front, but also running things more cheaply and efficiently. An area like manufacturing would presumably be a big challenge.Funnily enough, actually the debate shifted from simply a cost-out model which you normally get with outsourcing a process. It's more about changing your business model, because you're - the competition you face is not only onshore, but global competition. And so how do I change the way I produce, how do I change the way I deal with my customers? And we like to be at that end. Not simply focusing our cost-out issue. Sometimes that's just outsourcing a bad problem.When it comes to data services, some of the talk, partly as a result of the Edward Snowden news, but part of the talk is Cloud, your data in the cloud, security for that, and I think what is now called data sovereignty.This is a world of hyper connectivity. Where men are connected to men, men are connected to machines, machines to machines and security becomes extremely important. Because end of the day you're protecting key data assets and maybe customer assets of a company. We've built a very, very strong security practice and we are in a way actually helping our customers Sol of this particular problem. Ted, you've been everywhere of course since the days at companies. You
Telstra. You've got your own companies. You have private venture involvements. And of
you're also the incoming chair of Next DC, which is a big data centre business of the how much crossover might there be between some of your businesses and Tech Mahindra?I think they're incredibly complementary. One of the challenges of any business person today is to actually remain current in terms of your knowledge of what's happening, as you said, from areas such as data sovereignty to security to management of infrastructure, to new business models. When you get very set inside one organisation you tend to think it's the whole world. But when you have the ability to have some interests that are slightly outside but somewhat complementary, then you're on a constant sabbatical of learning and and been able to introduce you have some the respect organisations that you have some relationship with
to each you have to each other. How important, given this business, is a full belt and braces Labor-style NBN?The issue around the NBN is what misconstrued. At the end of the day, what do we want? What we want, we need a rapidly evolving digital strategy for our economy to improve our global competitiveness. That's the simple solution. But do you think that could be achieved with NBN like the coalition style that might appear faster - in other words, delivered faster?We do need to move faster than we are moving today. Otherwise we won't take advantage of the fact that Australia has weathered largely because of the resources boom has weathered the global crisis a little bit better. I don't think we should get bogged down that
in debating technology because that will change every year for the next 20 years. And as an ex-Telstra and and very much involved on the digital side, would an full NBN Labor style be better for Foxtel?I think Foxtel has acknowledged that, I don't think that's the debate. I don't think Foxtel, they can speak for themselves, they know the challenge of keeping customers happy and customers interested. I think they would be thinking how do I provide my services over any network, including mobile net work? You don't think they have a preference?I don't think so, no. It's probably best to speak to Foxtel but there is such Foxtelness and tell stras and others of this world. I think they've been dragged into that debate but I think the debate for them, the purpose of them is how do I maintain that good relationship with my customers? You mentioned the opportunities for growth being both organic and acquisitive. So what particular areas on the acquisition side would you be looking at and would that be in Australia?Yes, sure. It would be in Australia, to answer your second question. The type of acquisitions we're looking at are either companies who are extremely strong and are chosen domains, which are are banking and financial services, telecom, manufacturing, utilities. Or we're looking at companies which are extremely strong in some of the technologies we want to focus on for the future. And third would be acquisition, you know where we have certain aspirational accounts to get into, and there is a company which has a significant footprint within that account. Those also would be acquisition targets. Rohit Gandhi, Brit Brit prit, thank you very much for joining me. I hope we'll keep in touch.Thank you.Thank you. And you can see the full interview with Tech Mahindra on-line. Up to 30 businesses go bust a day in Australia. It's a sobering figure for liquidators as they face another difficult financial year. High profile casualties like Lisa Ho make the news but increasingly administrators say it's low profile small and medium enterprises going under, as Emily Stewart reports. The beer stopped flowing hat this boutique Melbourne brewery in May when it went into liquidation.They spent a lot of money building up the plaiks. Essentially ran out of money.New owner Nick Pang was one of 50 bidders that saw potential in the Temple Brewing Company.There's a lot of negative aspects still regarding liquidation. We have to slowly educate and talk to suppliers about it so they can understand that it is new people coming onto the business.The microbrewery is one of a thousand businesses to go under in May alone. Analysts say it's shaping up to be a horror year.We've found a number of insolvency appointments have increased over the last 12-month period. A record number of companies entered into administration in the 2012 financial year. Up to 10,800.Of course you will see flurries of activity in certain years. In 2008-09, years. In 2008-09, we saw the spike caused years. In 2008-09, we spike caused by the GFC.I've been in this game for probably been in this game for 20 years. We're probably not 20 years. We're probably long as long a period of sustained back of business confidence. High profile companies to fold include Lisa Ho and Hastie Group and Reed Constructions.We're generally seeing building and construction industry, and
specialty retail, transports and manufacturing. Insolvencies are starting to claim more small and medium-size businesses.We saw large insolvencies happen fairly soon after the GFC. Things have now shifted towards the SME sector. Liquidators say the high numbers are driven by court orders from the Australian Tax Office. Director penalties were strengthened last June.The sort of honeymoon period if you can call it that for businesses may be over or coming to an end and they now need to collect debt. Those in the industry say the effects of the GFC are still flowing through.With the worldwide climate the way it is with China, the uncertainties there, there may be a spike of insolvency appointments. I would say for hat least another 12 to 24 months. ASIC's Adrian Brown says while the high number of failures is alarming the ratio is in line with expectations.You need to look at the longer-term trend which shows that insolvencies are around about 6% of new company registrations. Nick Pang says his new business won't be one of them.We're making sure we are fully capitalised. I have my stake holders who are very supportive and see the vision.He's confident his customers will share the vision when the doors reopen in October. A brief look at other business stories making news. David Jones is looking to re-energise its struggling electronics division in a deal with Dick Smith . Under the three year agreement, DJs' electronics departments will be rebranded as David Jones Electronics, powered by Dick
Smith. Paul Zahra says poor electronic sales have been a drag on profits. And is this North Korea's challenge to Apple? State-run television has aired photos of dictator Kim Jong-Un inspecting the May 11 mobile phone assembly line. The North Korean leader reportedly praised the creative ingenuity and patriotic enthusiasm of Seoul
workers. There are reports Seoul 3G network operator KoryoLink lass signed up 2 million users in the hermit kingdom but no international calls are allowed. A look at what's making business news in overseas newspapers. The 'Wall Street Journal' says momentum in the global economy is shifting to the advanced economies away from the emerging economies that led growth since the financial crisis. Britain's 'Daily Telegraph' says new Bank of England governor Mark Carney's promise to keep interest rates at record lows until the jobless total drops to 7% may be realised faster than forecast, with jobs growth at a six-year high. And - London's 'Financial Times' says a Chinese car go ship is attempting the country's first commercial transit of the north east passage above Russia as a changing climate opens a shortcut between Asia and Europe. That will change the map! That's 'The Business'. I'm Ticky Fullerton. Thank you for watching. Goodnight.

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This Program is Captioned Live.Tonight on The World, after the first leaders debate, week two of the election campaign gets under way.Happy to debate this Mr Abbott on any occasion, but so long as you have proper scrutiny which means having panels of journalists and the rest.Both camps claim victory but the Opposition calls foul play.The problem with the PM last night was not that he was reading from notes, it was more that the notes weren't worth reading. That was the problem.Also ahead on the program - fresh concerns about the safety of Narauan locals as new video reveals how last month's riot unfolded at the island's detention centre. A state of emergency in northern Japan where TEPCO insiders teld the ABC the Fukushima nuclear plant has been leaking radioactive water since the disaster in 2011 and some voters in Norway get to ut der the phrase "you'll never guess who was driving my taxi," the country's PM goes Nicole Kidman and behind the wheel to hear people's views.Hello, I'm Jeremy Fernandez. A pledge on gay marriage and claims the PM cheated in the great debate. Last night's face-off gave the leaders of the two major parties something to seize as the election campaign got into its second week. The latest poll shows the Government is still trailing the Coalition, Kevin Rudd says he's not fazed by his underdog status.Who says a debate was blah, blah, one young woman was blown away be it.What you said last night about gay marriage meant a lot to lot of my friends so thank you so much.It's time we did it.Perhaps, but the debate's more likely to be remembered for what Labor calls a storm in a tea cup.And for full disclosure I'm using notes also today if you just take due attention to that consistent with my normal practice of using notes.The debate rules Rudd arrived
stipulated no notes but Kevin Rudd arrived with a folder full. And repeatedly referred to them.To you my fellow Australians drawing on the great strengths of our country as exists now under my prime ministership I to secure Australia's ministership I offary new way future.If you want a new way future.If you want a you've got to future.If you want a new you've got to choose a you've got to choose Government.The Coalition accused Kevin Rudd of cheating.Not for Tony Abbott was the need to have cheat sheets like this.The problem with the PM last night was not that he was reading from notes, it was more that the notes weren't worth reading. That was PM's
the problem last night.The