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Financial Review Sunday -

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(generated from captions) pumping! Suz and Davina, it has been a wonderful day on the couch. Deb will be back on the screens soon. Have a lovely rest

This program is captioned live. Today, why we need to build our way out of trouble - Joe Hockey's warning as house prices bounce back. We reveal football's record profits, and how both games are aiming to make even more money. Brewers work to put beer back in fashion, as sales slump to a 66-year low. And actor Rachel Griffiths tries out the brand new iPhone. Treasurer Joe Hockey is calling on builders to meet the growing demand for new homes, and is playing down fears that rising prices and low interest rates could create a housing market bubble. He's also

knee-jerk reactions to short-term economic volatility, like this week's surging dollar. Suddenly, there's life in the property market. House prices are on the rise. Talk of a bubble. Don't panic, says new Treasurer Joe Hockey. His focus is on building new homes, to meet growing demand, and help keep prices under control. I don't think we should over react to the current market. Instead, we should see opportunity. Let's look at the glass being half full when it comes to housing stock and housing prices and encourage the builders, financiers and state governments through the approval process, to get on with the job of increasing supply.Housing activity is critical to Australia. Building new houses is always better because it has a greater multiplier effect. More materials, more appliances need to go into that house, more people are employed, so on and so on, it's terrific. But the fact is that with that, housing prices also go up.Our dollar and interest rates will also impact the value of our homes. The Australia dollar is not where the Reserve Bank wants it. Prolonged stimulus measures in the United States don't help and now the RBA is faced with a difficult decision. If it cuts rates further, to weaken the dollar and make it more competitive, that could over stimulate the housing market and create a bubble. Not so, says Westpac chief economist bill Evans. He forecasts the cash rate to bottom out at 2% by March next year, but doesn't see a housing bubble as an inevitable consequence.I think that story is way overrated at the moment. If we look back at when the Reserve Bank started to cut rates in November 2011, house prices nationally are up around 4% from that point. They are up around 7% from the low point in that cycle, because, initially, they fell further.He sees concerns over job security as the principle cooling agent.If people are concerned about their job security, the prospect of them leveraging to overexpose themselves to the housing market, I think is limited. That factor will be one that will constrain any rampant housing bubble that people are talking about at the moment.He says the Reserve should focus on where it wants our currency.To give up the opportunity to put further weakness on the Australian dollar. To give up the opportunity to provide households with an even better cash flow in the fear that somewhere down the track we might have house prices growing too rapidly would be the wrong policy move.What I think they fear, is if we cut rates again to help the dollar that might not work, and it might also see house prices across the country up 20% -25% in 12 to 18 months. We're all cheering, but we know houses in Australia are already expensive. That's not a good scenario because then, if rates have bottomed then they've got to go up at some stage, which we all know they should, a lot of people are going to be under enormous stress.The dollar goes up, the dollar goes down. We simply can not have knee jerk reactions. Australia is at its best when it plans for the medium and long-term, when it undertakes the reforms that are necessary to inoculate ourselves from short-term volatility. And you can see the full interviews with Joe Hockey and bill Evans on our website: Joining us this morning, Mark Johnson, former Macquarie Group Deputy Chairman, and Phil Baker, Associate Editor from the AFR - good morning to you both. Mark, is bill Evans right - should the RBA be focused on driving down our currency - it's seen a surge this week?He is half right, in my opinion. I agree with him on the housing issue. I do not think there is a bubble, the reserve bank affordability data says it is probably under control. I do not agree with him on targeting the dollar. I do not think the central bank can all short or is in fact targeting the level of the dollar.Not part of the charter to do that?Not part of their charter and is not part of reality. The number of money going round the world is so great that no central bank other than the US can afford to take on the markets. The US doesn't care because it is printing its own money.Phil, is the currency movement more to do with the US than the state of our own economy?The Federal reserve said they would not taper. You saw the instant reaction with the US dollar slumping. The Australian dollar was at 95 cents like that. On Friday night, when there were mixed messages about what the Federal would do, the Australian dollar was back to 93. The reserve bank would cut rates but if the American economy goes to bed patch, the Fed will be required to do more stimulus and the dollar will go up again. The US dollar is the key. The reserve tank does say it will not taper and the Australian dollar will remain strong.A tricky balancing act. ?NEWLINE Treasurer Joe Hockey also signed an agreement at the Asia Pacific finance ministers' meeting in Bali, enabling Australians to more easily tap into trillions of dollars of Asian investor funds. The so-called funds passport scheme will allow seamless movement of funds between Australia, South Korea, New Zealand and Singapore from 2016.Get on with the job of legislating in a common way to allow funds to be offered to retail and wholesale investors on a common basis across those jurisdictions. The world is crying out for infrastructure funding - private equity, is hugely important in that regard. And the passport is a very significant step forward. You were in Bali for the meeting - Joe Hockey is quite impatient on this, he wants it to happen sooner rather than later. How important is this move for the Australian funds industry?This is called the pilot. What it is hoped is that other economies will join in, especially places like Hong Kong and Thailand. What difference will it make?What it will allow for Australian institutions is make it easier for them to tap into the last pool of savings in the region. Also it will lead to read connectivity among the regional market and breed efficiency, lower cost of capital and a lot more variety for consumers.It has been on the table for decades?The last 10 years we have tried to make more of the financial services sector. It is very strong, the five banks are very strong. Do you think this leads to us being a financial services centre in the region, or do you think there is more work to be done? People are trying to make Sydney the centre and tap into the growth for Asia and the funds for Asia. The superannuation business is very good and solid.This is very good, the financial services industry is very strong and very com couldn't and competent. A lot of competitive products but we need to do more. This is a bellwether that we need to reform, especially tax, do some more with market practices to allow us to connect more effectively with these vast pools of savings.A step in the right direction.

A look at the markets now, and major stock markets fell on Friday after the euphoria from

major stock markets fell on Friday
after the euphoria from the US central bank's decision not to withdraw monetary stimulus. In the US, both the S and P and the Dow Jones posted their biggest losses since August.

major stock markets fell on Friday
after the euphoria from the Our market was also down on Friday, but closed the week 1% higher for its sixth consecutive weekly gain. The Australian dollar was slightly higher against the major currencies. And looking ahead - the futures market indicates the ASX 200 will open lower tomorrow. Coming up - the big new investment in Aussie uranium. And

Coming up - the big new investment
in Aussie uranium. And both footy codes reveal record profits, and plans to make even more money from our favourite sports.

Coming up - the big new investment
in Aussie uranium. And both That's next.

This program is not captioned. (BIRDS CHIRP)


(BIRDS CHIRP) VOICEOVER: Engineered to endure with a lifetime guarantee. Taubmans Endure.

This program is not captioned. Rio Tinto subsidiary ERA is investing $220 million at its Ranger uranium mine in the NT to build a water treatment plant. Rio is considering an underground mine at the site. The viability of the uranium resource is yet to be proven and uranium prices are still low after the Fukushima nuclear accident in Japan two years ago. But ERA boss Rob Atkinson is optimistic.The market will turn and I think one of the key points of this is you look at Chinese government they have got terrible environmental problems with the air and they are very much focused on not only renewable energy but nuclear power. I think that bodes very well for uranium miners in the future but we do have some tough times ahead. Uranium mining is controversial and a hot political topic but should we be taking it more seriously as an energy source.I have been wrong about uranium for 40 years. I thought it would the what iron ore as to the Australian economy today. I'm interested to hear the remark on the Chinese market. I think in the democracies now, nuclear power is off the table for generations. Look at Europe, the United States, Japan. And so, I hope they are taking a long-term view. Having said that, there is a great opportunity for Australia if we can become more deeply involved in the nuclear fuel cycle, by being producers of uranium but the consequence of that as we would also have two store spent uranium. We could bring ourselves to do that, and make it safe, we could be a participant in a free world nuclear fuel cycle. This race is very big problems, nobody wants spent nuclear fuel in they're backed out, even if it would be right in the centre of the outback of Australia, very stable geological conditions.Quite controversial. The business of sport now - and the NRL and the AFL have told Financial Review Sunday, they're set for record profits this year. Bosses at both codes are also preparing for the future, and that includes building up their media businesses. The AFL media unit, in particular, is a potential threat to traditional media companies who cover the game such as Seven West Media, news Corp Australia and Fairfax Media. Nabila Ahmed takes a closer look at the finances of footy.

Drugs and crime have dominated the headlines this year but dramas off the field have done little to dent Australia's love of footy.Things that went on at the foot bull club that should not have happened last year.The AFL has doubled its profits to $13 million. The NRL is set for a surplus of more than $40 million.The game will deliver the biggest surplus in its history at the end of this year. So I'm feeling reasonably positive, I think there's a lot more to go, there's a lot more upside.Crowds were great, the supporters have been wonderful. We'll be up on last year, nearly 3% and we will be approaching record numbers. Pleased with our television ratings, they've been exceptional, membership is at a record 756,000 and participation will be at a record level this year as well. So, touch wood on all things we measure ourselves by, we've had a pretty good year, notwithstanding, we know we've had some issues off the field and challenges.The AFL is the behemoth of Australian sport but what you will find is the NRL is closing the gap very quickly. There's a lot of money that's come into the sport this year and they're having a great finals series.But the NRL has struggled to lift crowds and TV ratings are down 3%. Smith is working on turning things around for next season.The first dimension is to work with our broadcast partners to explore the fixture schedule and make sure we are getting the best out of it. I think the split draws we had around Origin in the premiership didn't work very well this year. The structure with the picks and the way we go about it didn't work for all parties this year so I think there's a piece of operational work that we can do. The key issue, though, is growing our fan base as well as our membership base. We just don't have enough members in our game, we need to grow that base and we need to appeal to a wider market. And if we can appeal to a wider market, we'll make a structural change in the amount of people that watch our game and therefore you will be less influenced by the variability of teams' performance.At the AFL, Demetriou is working on making the competition stronger, taking lessons from the NBA, NFL and Baseball League in the US on how to better share the spoils of the game.They share much more than we do, it's more centralised revenues than we have. They are striving for more competitive competition with more profitable clubs as objectives and for us there's some key takeouts from that visit. I think from our perspective, it's probably the most significant issues facing the competition at the moment. It affects every club and if we get it right, we can get a much more competitive competition, lift the bottom clubs up to be competitive and at the same time make sure that we haven't got any disadvantaged clubs.The sport is also adapting quickly to the digital revolution, building up a fast growing media business.AFL Media now does its own publishing, does its own reporting, we produce the content for Telstra for Having control of our content through, we've got, I think it's a million video streams coming through now the app that's been produced. I mean, we just get a much better say and feel about how we want our website to look working with Telstra and it's an important part of our business going forward. I think all businesses, if they are not working through now today particularly through new media, I think they are slow on the uptake but we're trying to be ahead of the curve, to be honest.The AFL may well consider in future years some sort of a spin off or perhaps even a float of the AFL media business. I think there's a lot of value rather than just the AFL. Up next, we reveal the iconic company up for sale. And with beer sales flat, brewers tell us what they're doing to keep us drinking. This program is not captioned. Doesn't matter about
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are just the beginning.

This program is not captioned.

The Chubb security business in Australia could soon be up for sale. Chubb monitors security systems for more than 40,000 customers in Australia, and has more than 200 armoured vehicles transporting cash across the country. It earns about $50 million a year, and could fetch between $300 and $400 million. Chubb's New York listed owner, United Technologies Corporation, has been exploring strategic options for the business. Logistics operator Toll Group and private equity are among potential suitors. And for more breaking news on business deals, keep across the Street Talk website, and daily in the Financial Review. We were always expecting a boost for business in the wake of the election - is there more confidence in the market for asset sales?It is too a slight degree. It is a little bit too early. We have had a bounce with business confidence and consumer sentiment. You have a honeymoon period so we want that bounced to be sustainable. People have more confidence that there is a steady handed macro can be. It will not be a wild ride we've had for the last few years. That might make it easier to business.And Mark should we expect more IPO sales in the short term? Fund managers would like a more diverse range of business to invest in.I think straight in business and Australian businesses have been so conservative that they will take a little time to change that habit. The second big thing is the US taper. If there is a taper, and the US is getting better, the world is getting better. If there is no taper, it says things are too tough. -- still tough. It's almost sacrilegious to suggest, but Australians appear to have lost their thirst for beer - with new figures putting consumption at a 66-year low. That's forcing brewers to think differently about how to drive sales, and hang on to industry revenues worth $6 billion. A hard-earned thirst needs a big cold beer and the best cold beer is Vic. Vic bitter.Simpler times - simpler tastes. ?WHITE And, for brewers - a much simpler business. More recently, though, the froth has come off our thirst for beer. So, beer and the industry itself has been growing at a rather anaemic 1% over the last five years, so beer has been having a tough time as a category. Although there are some interesting performers on an individual segment basis.We are drinking less - we're also drinking differently. Total beer sales declined 2.7% in the last financial year. But premium beer is increasing in popularity - growing 10.4% in the same period. Nielsen predicts in the next three years premium imported beer will account for $1 in every $6 spent on packaged liquor.Tastes are going more flavoursome and more varieties but also simpler, less bitterness and easy drinking.The shift in tastes makes brewing more complicated for Lion, owned by the Japanese Kirin Group, and Fosters Group bought by SAB Miller. Together, they control 93% of beer production and sales in Australia. Staying ahead of the taste and profit game has meant developing and promoting an ever widening array of new styles.Introduces a whole different level of complexity from manufacturing selling and marketing. Of course, it'd be easier to just have one beer in one bottle and sell that to everybody. What is now super trendy was once seen as courageous - and not in a good way. 27 years ago, the historic Lord Nelson Hotel was converted into a microbrewery - crafting beers that were anything but mainstream.It wasn't about drinking quantity it was about people understanding that to have some flavour in the mouth, you didn't need to drink quantity in beer. It was more that you could taste something that was different and experiment.Back then, patrons walked in and walked out again because their favourite mass market brands were not on tap. Sales are now so stable, the Lord Nelson is bottling and distributing its brews nationally. It's a trend the major brewers haven't missed. Lion capitalises on higher margin premium beers across its range - and more particularly, through the Malt Shovel Brewery where it produces the popular James Squire range - the dominant craft brew. 15, 20 years ago, we each had our one favourite beer, two at most. Now though we are much more promiscuous, regularly drinking between seven and 10 different brands. A sign of how tastes have changed.Lion dismisses suggestions that it's been a follower rather than an innovator. It says it's known for some time that revenue growth had to come from some cannibalisation of traditional mainstream brands.We try and separate our products into beers that are really big and growing and those that are smaller and growing. They require a different approach. And those that are big and declining and we just want to maintain them and help them to grow.Unsurprisingly, our duopoly supermarkets, Coles and Woolworths, aren't missing a trick here either. They already control 63% of all liquor sales - both have also started producing private label brands. They're still small players - and the major brewers certainly hope it stays that way.

A lot at stake.

After the break - Rachel Griffiths tries out the brand new iPhone.

This program is not captioned. Time now for Rear Window, and guest reporter Will Glasgow meets up with Hollywood star Rachel Griffiths, reveals who dared to say 'no' to James Packer, and discovers what really goes on inside one of Australia's oldest clubs. Action -- Rachel Griffiths launches her new line of designer sunglasses. A new fee amounts situations with more female members stand Tony Abbott's cabinet is going to get bigger. Tattersalls has long been the ultimate man Kate. It is long been a men only establishment. The perfect place to do deals, drink liquor and celebrate success. John Howard, Malcolm Turnbull, they've all been tapped as all chaps. Last week, they offered to drop a roulette insisted all members should be male. In other words, hello, ladies. But we hear some of the old guard are unhappy, it could be the end of one of their beloved traditions. Since they are fond of working out the splendid germination in only wearing sneakers and budgie smugglers. Sweetie Private members. Pumping furiously. With little more than a hammock for support.

Art, it is about ideas, expression, money.There is very expensive art. There is very affordable art. There is great stuff, there is not so great stuff. When James Packer comes calling, most mortals jump, not so the AFL boss. He has turned down a seat on the board of Crocker.How do we know this, we got it from the horses mouth. Something I want to do in the future. When the timing is right will accept the offer.With everything going on at the AFL, the timing could be right real soon. And regular reporter Joe Aston returns to Rear Window next Sunday. Before we go, a look at what's coming up this week. On Monday, important data on China's economy, with the

important data on China's economy,
with the HSBC Manufacturing Purchasing Managers' Index, or PMI.

important data on China's economy,
with the HSBC On

with the HSBC On Wednesday, agricultural manufacturer NuFarm will release its full-year results. And on Thursday - job vacancy figures for August are released. China is such an important market for us, but will we learn much from those PMI figures?

for us, but will we learn much from
those PMI figures?

those PMI figures?I

those PMI figures?I do

those PMI figures?I do not

those PMI figures?I do not think so. There is so much static and confusion around the Chinese information. You need to take a broader look at trends over a bigger period of time. I think China is going well, every little bit helps, but I would not get confused by the static that comes with a lot of information out of China. That is 'Financial Review Sunday' for this week. Thanks to our panel, Mark Johnson and Phil Baker. And we love to hear from you - our email is: We're also on Twitter and Facebook at FinReviewSunday. And you can see the show again on our website: I'm Deborah Knight, thanks for your company. Time now for 'Wide world of Sports'.Supertext Captions by Red Bee Media Australia.

This program is not captioned. This program is captioned live.

Today we have all of the finals action. Israel Folau pays out another visit. We celebrate 30 years since we snatched the America's Cup. One of our latest world champions, she joined us live. That and plenty more today on Wide World of Sports.

Welcome to another addition of Wide World of Sports. Roz Kelly joins me. Love the outfit.Thank you. I am glad I have the approval. Happy Sunday.So much to talk about. We invite you where's to write in and tell us would they think about the subjects and what they think of us. -- view is.You can download the application and checkout extended features and the scenes footage.I am rider with the. Do not get ahead of yourself. It is football finals. AFL coming up in a moment. What a game last night.

They were atrophic came last night. What a beautiful farewell or Jude Walton. In the end, Fremantle were a team on the mission. They hounded the Swans into submission. Spot on. They were unbelievable last night. The first half, they just dominated the game. The second quarter, they were relentless. Just attacking. Their skipper was very good. He kicked a couple of goals, getting them going. The only thing that kept Sydney in their game was that bad kicking. It was also the crowd. They were up and about. 43,000 at Patersons Stadium. It is a Paterson curse. It just grows and grows.You cannot kill it.Exactly right. They dominated the game. Sydney finally got going at half-time and had a good last quarter. Fremantle will be very hard to beat.Really impressive performance. They haunted the Swans, whenever they had the ball in the first half. They chase them down. Whittled about Hawthorn as well.What an arm-wrestle that was. They just got their nose in front. They did. It was a game of momentum. Hawthorn early, then the Cats looked like they were going to win. Then back to Hawthorn. Then the Cats were really good, 20 points up. Sam Mitchell was very good for Hawthorn. They were outstanding in the end. Really good game. Hawthorn went in as favourites. But it was always going to be a close game. These two had so many close ones over the journey. In the end, it was the Hawks.

I love the game. Outstanding.

Here it is in the last quarter of. The Cats were in front. Bradley Hill, nice snap. Hawthorn goes in front with five minutes to go on the clock. The Cats had a chance. He misses! Game over.I love your enthusiasm.I just broke my pen. Unbelievable.The Hawks have a few injury concerns.Buddy Franklin hurt his elbow. Brendan Whitecross is out. A big show. I know he will be watching. You love your AFL.

A big game next week. Hawthorn and Fremantle.What is your hot tip?It is interesting. Best attacking side, Hawthorn, taking on the best defence inside, Fremantle. They say defence wins premiership. And going with Fremantle.I think you have picked that right.Is it because they knocked out the Cats?Yes.Had a great show. It is the business end of the NRL season. It has been a bruising final series so far. Newcastle took down Melbourne, 18-16.

What a winner for Newcastle. The first in Melbourne since 2004. You are at AAMI Park last night. Thank you for joining us. Did the best team win?They think they did win. Storm have been off their game for a while. They were patchy last night. For the first time in a long time, they panicked. When they're behind, they do not tend to respond to well. Especially in the first half, Newcastle were outstanding. , they were a bit patchy.They will have to be backed up and face a refreshed Roosters side.The risk is, has it taken its toll? The wrist is team have a week off. -- the risk is that is the Roosters have had the week. I thought the kicking game could have been a bit better. That was the opportunity for them to take control. I do not think they did that. Man of the match was outstanding. Jarrod Mullen... And think you could do better.Sea Eagles versus the

warning Australians to avoid