Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Disclaimer: The Parliamentary Library does not warrant the accuracy of closed captions. These are derived automatically from the broadcaster's signal.
ABC News 24 Business Today -

View in ParlView

(generated from captions) This program is not captioned. This Program is Captioned Live.


Good morning, welcome to Business Today for Australia Network. I'm Whitney Fitzsimmons. Coming up on the program - improving outlook, US shares snap a five day losing streak on better jobs data. Price collusion, Japanese car parts makers agree to massive fine for overcharging American customers and ideas factory, the new ways of guiding promising start-ups to commercial success. Those stories coming up shortly but first let's take a quick look at the markets - ??

For more on the market action I'm joined by Chris Weston from IG. The despite a slight rise on Wall Street that debate over the debt ceiling still weighing on invests' minds?In fact it's got slightly worse. If you look at some comments from last night, it was said that if the Senate votes through a bill that's inclusive of Obama care or they're trying to get through or the lack of he would vote it or the lack of defending nah
they're trying to he would vote it down. That
vote needs to he would vote vote Monday or on Tuesday we'll see a Government shutdown Monday or on Tuesday we'll a Government shutdown in the
US. a Government shutdown US. The commentary from 'Washington Post' they said US. The commentary the chance of a US. The commentary from the
'Washington Post' they said the chance of a Government
shutdown next week the shutdown next week had grown on
the back of those commentses but Wall Street didn't really mind too much. We saw the S&P snapping a five day losing streak putting on a 0.3% but economic data was the wigger driver there last night.Take us through the economic data out of the US overnight inWe saw pending home sales down 1.6%, at a three month low and we did see some weakness in some of the regional manufacturing from the data. It was the first time we saw those weakly claims coming out with any kind of IT distribution so disruption coming through, that's fell 5,000 and came out at 3500 climbs and if you look at the four-week average it's now at 3800. That argues for next week's pay role if it does go ahead so somewhere around 200 tow jobs which is really positive stuff and that's part of the reason we saw the dollar rally a bit last night.To Europe, the session was also sloogtsly higher there?If you look at the FTSE, there were some modest moves in different markets, and offsetting that with some concerns around this Budget negotiations that's happening. The index which really caught my attention was the Italian market, down about 1.2%, we saw a big receivoff in their bond market. A lot of political instability there is really hurting that market in the short-term there.How really hurting that the short-term there.How will
all this impact the short-term there.How all this impact local and regional trade today?We've got two days left till the end of the quarter and that's two days left till the the quarter and that's what we're seeing at the moment, we're seeing a lot of big Australian funds really looking to bolster their Australian to bolster their performance into the end of the quarter and continue on
I think that will really continue on today, we're calling the market up 23 points, we'll see new highs on the ASX 200. Even though BHP is likely to see a bit of weakness on its ADR. We saw some commentses from Abe last night but we expect the market fob unchangedHow is the Australian dollar trading against the other majors?Against the Greenback, 93.67. Unchanged since yesterday lunch time on a percentage basis. We're seeing some strength against the yen and the Euro. If you want to look at the weakness the most pronounced is against the kiwi dollar at the moment.Chris Weston from IG there. Let's take a closer look at what's happening with currencies and

Australia has helped crack an international price fixing scheme involving car parts sold around the world. Executives from a total of 20 companies mainly from Japan are facing fines of $1.6 billion and jail terms, the US Justice department says it's one of their biggest anti-trust investigations and it's not over yet.The American car market is one of the most competitive.Everyone has an...But some of its biggest players are among the victims of this massive fraud, Chrysler, Ford and General Motors among those counting the cost.The breadth of the conspiracies brought to light today are as egreedge os as they are pervasive. Seatbelt, wind screen wipers and airconditioning units were some of the parts fixed in price. 25 million cars were affected, some of the conspiracies had lasted a decade. Nine Japan-based companies are the latest to be accused of the crime.These conspiracies were initiated, directed and led by high ranking executives from these companies.In order to keep their legal conduct secret, they used code names and met in remote locations, then they followed up with each other regularly to make sure the clusive agreements were beinged a hered toThey won't say how much it increased the price of a car in America but it could go beyond US borders. The Australian Competition and Consumer Commission was part of the investigation.In totally 20 companies and 21 executives have been charged, all of them have agreed to plead guilty, some are facing jail term, there'll be $1.6 billion in fines. And the US Government has vowed its work yet.Self-managed superfunds have recently been in the
spotlight for

spotlight for all the wrong reasons. The Reserve Bank has warned reasons. The Reserve warned that speculative demand warned that speculative from DIY super could start to distort property prices. While $80 billion has been invested into real estate since rule changes in 2007, the industry says any concerns over a bubble are more to do with record low rates than self-managed super.With auction clearance rates high and interest rates low, the talk is all about property bubbles and booms.Sold, congratulations.And while there's no doubt that the amount invested by SMEs has gone up in dollar terms in recent years it seems the talk of a bubble driven by those funds may be overblownment fThe growth we're seeing in dollar terms is just a factor of the growth in self-managed superfunding generally.When you look at the percentage allocation by self-managed funds to both commercial and residential real estate the talk of a bubble does seem a little unrealistic.We seeing a large number of inquiries but a relatively few number of people actually going through with the strategy. And the number is being quite consistent over a number of years now, so the fact that the RBA have mentioned it at this particular point in time was a little bit of a surprise.I had to read it two or three times and try and understand what they were consults.The reason property rices are going about.Tony bathes of Bluepoint
consults.The rices are going up has nothing to the with SMEs and have everything to do with low interest ratesEven ANZ bank everything to do with CEO Phil Chronican says interest ratesEven CEO Phil Chronican says he's
sceptical of any link between property overheating and self-managed supermoney.I'm not sure that the self-managed superfund sector itself is big enough to lead to the housing bubble. But I do think that it's appropriate to sound a net of caution about having housing investment in self-managed superfunds.So while the note of caution raised by the Reserve Bank has left some scratching their heads it also raises some broader issues that may need to be dealt around who is offering what advice, especially to baby boomers who are running out of time to grow their investments and maybe looking for a quick real estate fix.There is an issue out there where there are spruikers talking up owning or woroing money to puts property in self-managed superand I think there's some concerns around that.There needs to be some focus on the licencing of the people who are giving advice, now, they're not as I incit financial planners who are accredited and authorised to give advice. These are people who are sort of on the fringe a little and they need to be identified.We do run the risk of people who are perhaps more at the naive end of the market putting things in there and exposing themselves to risks.So there a chorus of voices sounding a warning but it's not pressure on price but the quality of advice that seems to be the issue.The head of Indian's Central Bank has confirmed the bank isn't contemplating more rate rises after last week's surprise increase. The RBI Governor Raghuram Rajan says the bank has adopted a neutral stance on rates for now but will closely watch inflation. A week ago the RBI lifted rate to 7.5%, the first increase in two years. The move seen as necessary in tackling the country's high inflation rate of more than 8%. Speaking on the sidelines of a conference in Frankfurt, Raghuram Rajan reiterated the view that underlying inflation was still above the bank's target. The Federal Government has threatened to intervene in NSW to increase coal seam gas activity but the State is digging in its heel, the issue is still highly contentious in many communities.At an energy summit in Sydney tensions were boiling over.Le 4% of NSW residents say they don't want coal and gas mining protesters were bundled farmlandAnti-coal seam gas away.It's very clear that coal seam gas industry wants export this gas away.It's very clear that the
coal seam gas export this gas and leave our
State coal seam gas industry wants to
export this gas State with the damage to our land and water.It's all about land and water.It's exporting this gays gas to make a few people Federal a few people expenseThe
Federal resource Minister says overcoming the resistance in NSW to coal seam gas mining is a top priority. He's forming a committee including farmers, gas producers and consumers to come up with solutions to fast track projects.Men and women who work in the processing and industrial areas relying on gas will lose their jobs if we can't get the gas industry in NSW going.Ian Macfarlane also says he wants to unify national regulations covering coal seam gas. But the State energy Minister doesn't appear open to any change.We've made it quite clear that NSW regulatory framework is here and here to stay.The NSW energy Minister is also under pressure from the State Opposition. Labor leader John Robertson says he's planning to introduce a private seam
members bill to prevent coal seam gas exploration in water catchment areas.We need to ensure that we don't compromise water quality for Sydney by allowing coal seam gas extraction in the special catchment areas.The energy Minister says there are already significant protections in place.Small and medium enterprisings are a critical part of the Australian economy and making sure that the business environment is conducive to fostering growth is vital. So what are the critical issues focussing small and medium enterprises and what should the Federal Government be offering? Too look at in the in more detail I speak to Dr Caroline in more Caroline Hong, CEO SME association of Australia.Dr Caroline Hong, welcome to the program.Thank you whitmy.So what sorts of changing are you hoping or expecting to see from a new Government?I'm really excited about the new Coalition Government. I think we have a bright future for the business sector. The main and key change among many of us is that the Minister for small business will be in the inner Cabinet. The Government's going to focus on reducing regulations that have been created over the past years which has been administrative burden on small and medium enterprise of Australia, they've suffered quite a lot in recent years, having to be compliance officers, having to be pay masters and having to spend unpaid time which they otherwise would be spending on their businesses.What are some of the other main challenges that are facing small to medium enterprises around the country?If you talk to any small, medium enterprise will
business in Australia, they will continue to tell you that please get rid of red tape. Although that's the Coalition Government's pledge, I like to see it happen.When you say red tape, can you just clarify what that actually is, is it BAS statement, what is it?The BAS statement is a headache. I've had to deal with that myself personally and mainly to go through the process of what other people are saying. It is not user friendly. It could be more user friendly. I think the intent of most public servant and Government is to do their best, the challenge is finding the right talent within Government who actually understand the small business sector and who actually have experience and have worked in the private sector before.Your organisation promotes Sino-Australian ties, what sorts of policies would you like to see to strength Australian businesses doing business in the region, not just with China but with other Asian counterparts?If you look at what is happening all around the world, even my counterparts in Europe, America, they're all going into China and into Asia, Asia, the countries that are of significance Malaysia, Singapore, India, so it's not Malaysia, Singapore, it's not just China, China it's of interest, mainly because it has 1.3 billion people and it's has 1.3 billion people sheer volume and it's very exciting place but very complex, the Government actually help by making it easier for the small and medium enterprise to connect in the Asian countries at a moment I don't see a lot of that happening.Are you talking about trade missions?Yes. Trade missions are important, but trade missions can only be effective if the Government make it easy for those SMEs to join in the trade missions and also to explore opportunities, can you imagine someone going to Malaysia for the first time but have no idea about cultural awareness, about what tuntds are or no idea where to start to talk about their wines or their cheese or their beef or whatever products that cub potentially of interest or interest
their food that could be of interest to say a Muslim country and opportunities that can be created from there to other Muslim countries.What's your view about the proposed tightening of rules and scrutiny of foreign in Australia?I suppose I think
we have to look at it in the bigger picture in contacts, because Australia is a very attractive destination for FDI, for indirection investment, you look at the big picture, China for instance where there appear to be quite a lot of concern and fear that Chinese buying up all agricultural and mining land but in reality they only make up 2% of the total FD it. I would propose that the Australian Government and the Chinese Government would collaboratively together on strengthing the economic relationship and also the bilateral trade relationship to make it easier for both the Australian people and the Chinese people to benefit from the opening of the doors to foreign investment and for also increasing opportunities for the Australian people in terms of expanding their trade to new markets that they never thought were possible before. In terms of investments, what I'm seeing is instead of just a Chinese company coming here and buying the whole of your winery, it is more attractive to them now and some of them are considering this as a better option, is joint venture approach, because through a joint ventsure approach you retain expertise for instance in a wine making that exists in Australia and also through the joint venture approach, you don't have total ownership of the land, the land is more acceptable and then it is true that working through all of the development or possible opportunities of growing the market into China you've already got like the first hand person who has a trekts interest in the business to bring you new markets and for that particular business, otherwise it would not have the opportunity to expand into such a big market so quickly.Dr Caroline Hong, thanks for joining us.Thank you.Australia's no slouch when it comes to tech start-ups but those that don't move off shore can have problems surviving the early days. A new investment fund has now been set up which hopes to inject some Silicon Valley know how into the local produce.There's nothing like a bit of competition to generate inspiration. Well that's the theory. This shared work space in inner city Melbourne is home to a number of start-ups. One of those is Sidekicker, a kind of temp agency for the new century. Unlike traditional agencies, this website doesn't actually place its workers with specific jobs.They have their own ABN and they're empowered to apply for the jobs that suit their skills and their availabilities.I really like this...Around the corner is Tiger Pistol, self-serve social media tool
for Tiger Pistol, it's developed a self-serve social media for small business. It's found
Australia's for small business. It's Australia's small and immature
tech for small business. It's found
Australia's tech sector can with a edged sword for new comers.It's edged sword for comers.It's good grounding to
have it tough early but also makes it a little tougher for lots of ideas to get the air time that they deserve.And it's air time for innovative businesses that a new investment fund wants to foster.Ing backed by wealthy family, Rampersand has raised $6 million in just over a month.The appetite in Australia for early stage investment is really grown. They've seen that there's money to be made, there's success to be achievedPaul Naphtalid believes Australia's entrepreneurs can hold their own against Silicon Valley's best. But a major impediment is not only a lack of access to expect but also proper markets support.We've seen over the last couple of decade, is a, 20 world class Australian technology canes we think over the next few years we can have that same number again. The pace of development of the Australian ecosystem is faster than we've ever seen beforeFast on its way to becoming another one of those big success stories is Nitro. Founded in Melbourne eight years ago it's a document software application now second only to Adobe.We've been able to sell into some of the biggest alternatives.But for
who are very willing to look at alternatives.But for some time it's called San Francisco home alternatives.But for some where there's a much it's called San Francisco where there's a much larger skilled where there's a skilled workforce.Unless we can increase the numbers that we're can we're churning out of universities across the country and bringing in more skilled workers and workers from overseas then we want be able to prop up the demand for growing technology companies.The other significant disadvantage is the limited number of venture capitalists.It's quite a small market, it's capitalists.It's quite market, it's quite young in
many respects if you compare it to the States where venture capital is 40 plus years old now and has a real track record.That's that culture of risk that Rampersand wants Australia to embrace as it thinks about where the next generation of welt will come from.We point to WA and say if you've got a hole in the ground you can raise money, we now to put that kind of risk appetite into technology start-ups.Now well established on the eastern seaboard, Sidekicker has begun approaching invests. It's noticed attitudes towards the sector changing but admits there's still some way to go.We still need to educate people and show that running a start-up is actually a viable career path and not something that's going to keep your mum and dad awake at night.We never every parent is grateful for all the sleem they can get.New Zealand is still dealing with being on the wrong end of one of sport's greatest comebacks after a $30 million injection of taxpayer funds Team New Zealand failed to clinch the America's Cup. Despite a seemingly unbeatable lead over Team USA.New Zealand have madeFor eight days team New Zealand couldn't win that elusive last race to clinch the cup.Final race is under way.The all important start looked good.And New Zealand led around the first mark.Dean Barker holds his nerve.Worry set in after the second as cup defenders Team USA hit the front. And by the fourth leg, kiwi dreams had turned to despare, especially for this woman, whose brother was on the losing boat.I really wanted him to win because it... It was amazing. They're all amazing.13 years ago skipper Dean Barker amazing.13 years ago aloft when Team ABC News Dean Barker held the auld mug successfully defended their 1899 5 win. The support for this The support for this team you'll never know how much it means to us and we're just sorry that we haven't been able to win that one moreThey're an Australia team. They did everything they could possibly do, right, except they didn't have the pockets deep enough to spend enough cash on it.We were sailing, they were pushing buttonsTeam USA's skipper insists his crew was doing more than that. The Australian captain says his team's comeback stemmed from its determination to win.It's the ultimate. To come back, the greatest comeback in sports history, says a lot about a team, a lot about the character, the heart and the fight they've got inside them. Man, it was worth every single part of it.Jimmy Spithill wasn't the only Aussie sailor celebrating today. Crew members from 'Australia II' got together in Sydney to celebrate the 30th anniversary of their historic America's Cup win.We had a dinner last night with all the boys, and the stories that were being told, the only conclusion is we are faster now than we were 30 years ago.John Bertrand says he's still amazed at the impact that win had on the country.I guess I get reminded literally every day somewhere comes up to me in the were doing when we crossed the line afterway around the world 30 years ago.Alan Bond was there too as was Bob Hawke wearing the same jacket he had there too as was Bob on when he virtually gave the country the day off.I had goose pimples all the bloody well and it was a mixture of feeling about it was first of all it was absolute pride that here was Australia winning this unique sporting event, but also of course that here was little Australia a very, very small technological base, biggest technology base in the country, in the United States, and here we'd outtechnoed them. We'd outtechnoed the bastards, that was marvellousAustralia might have had the superior technology 30 years ago, but Team USA's win over New Zealand has proven the Americans are now back on top.In the other business news Shanghai is gearing up for the weekend's graend opening of China's first major free trade zone. Workers are putting the fishing touches on the district which is less than 30 square kilometres and has been designated by Beijing as a trial for wider reforms. The zone will allow labelised foreign exchange and interest rates, property prices have surged up to 30% on optimism over the development. And office workers in Paris now have a new option for relieving job stress. A temporary lunch time disco set up in one of the city's metro stations is proving to be a hit. Lunch Beat as it's called comes complete with sandwiches and bottled water. Bring back the disco I say. And now let's take a look at what's making headlines around the region.The 'Wall Street Journal' says Alibaba has taken its feud with the Hong Kong stock exchange public questioning why it wouldn't send its rules, bend its rules rather to allow the world's biggest ecommerce company to list there and the 'Hong Kong Standard' reports on an oil discovery by Stat-Oil Canada and co-venturer Husky Energy
owned by Li Ka-Shing. That's all for this edition of Business Today. Please check out our website and you can see us on catch-up at the Australia Network side F you have any comments you can find me on Twitter. Thanks for joining me. Enjoy your Australia

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

An officer shot in the face as colleagues remember their fallen colleagues on national prition remembrance day.One of the offender offenders has shot a police officer in the neck. A draft UN proposal to force Syria to give up its chemical weapons and Fremantle prepares for its first grand final parade with tomorrow's show parade with down with parade with tomorrow's down with Hawthorn.Good morning, you are watching ABC News 24, and the Australia Network across Asia and the