MARKETS

The Australian share market had its worst session since early July today, as investors sold out of equity markets on fears the US Federal Reserve could soon start winding back its QE3 stimulus program.

TransCanada will transport 2 billion cubic feet of natural gas daily as part of the C$1.5 billion agreement it signed with Progress Energy, a Malaysian company.

The Australian sharemarket is in the red, with the All Ordinaries Index (XAO) down by 1.1 per cent. This is the longest losing streak for local shares since late June this year. The index is down by around 1.3 per cent since the start of this week.

Callum Newman's weekend Daily Reckoning took on a whole new meaning this morning. The Australian Financial Review reports that China just stopped all imports of milk powder from New Zealand.

Plenty of amusing stories are making the rounds today. Like the bond salesman who fooled Royal Bank of Scotland into thinking he had access to wealthy clients. After touring their trading floors and meeting clients and executives, it turned out the oddly named KK Ho wasn't a bond salesman after all. Just an employee facing an imminent layoff.

In a deal that has shocked the industry the Seattle billionaire Jeffrey Bezos known for creating one of the Internet's most innovative companies has bought the Washington Post for $250 million.

From banning the entry of contaminated whey from Fonterra, China and other Asian nations have taken the botulism scare a step higher by recalling infant milk products.

By Greg PeelThe Dow fell 93 points or 0.6% while the S&P lost 0.6% to 1697 and the Nasdaq dropped 0.7%.

As expected by nine out of 10 forecasters, the Reserve Bank (RBA) decided to cut interest rates by 25 bps to 2.5 per cent today. This makes it the very first rate cut by the central bank during an official election campaign period.

The Australian share market is flat in the early session, following a mixed session on US and European markets and as investors tread water ahead of this afternoon's rate decision.

By Greg PeelPost the Fukushima fallout, it seemed for a while that US$50/lb was a line in the sand below which utilities were happy to pick up "cheap" supply.

Nutricia, the manufacturer of infant formula Karicare, widened its recall of two types of formula amid growing fear of contaminated whey from Fonterra's Waikato plant causing botulism.

- Business confidence stabilising- Profit expectations stronger for Q4- Investment, hiring off agenda- More promising after electionBy Greg PeelHistory suggests that aside from perhaps some initial volatility, there is little correlation between stock market performance and which political party is ...

By Greg PeelThe Dow fell 46 points or 0.3% while the S&P lost 0.2% to 1707 as the Nasdaq rose 0.1%.The RBA will meet today and as far as anyone is concerned will cut the cash rate to 2.

For some time market commentators have spoken about the importance of the upcoming federal election as a market catalyst. However, on Monday it was hard to distinguish the impact of the news at the weekend that the country will go to the polls in September.

Fonterra Chief Executive Theo Spierings apologised on Monday to Chinese consumers in a media conference for the contaminated milk powder from its Waikato factory that reached China.

The Australian sharemarket is slipping by 0.3 per cent after 2.5 hours of trade, with the miners and consumer discretionaries the only improvers. Despite today's modest pullback, local stocks have risen by 8 per cent in just six weeks, while the ASX200 has had its longest winning streak since late January.

If the riches of the drug trade tempt you, leave them behind and do this: find a way to get quality milk powder to Chinese mothers. You'll find a hungry market of worried parents with cash in hand - wads of the stuff.

NEW claims for US unemployment insurance benefits unexpectedly dropped to a five-year low. The number of applications dropped from 345,000 to 326,000 for the week ending July 27. The reading was the lowest since January 19, 2008, when claims stood at 321,000 amid the financial crisis. Analysts on average had expected a slight rise to 345,000 claims from the unrevised prior week's figure of 343,000.

Well, there's 10 minutes of our life we're not getting back. This morning, out of begrudging necessity rather than desire, we read the latest statement on monetary policy from the Federal Reserve.

We presume the rich are always equally greedy - just like the poor. And we note that the total volume of regulation actually increased during the period under review. Just look at the tax code...or SEC rules. There are far more rules now than there were in 1950.

First came the denials, then - finally - the admission that, yes indeed, some of GlaxoSmithKline's senior Chinese executives broke the law in a $484.8 million cash and sexual favors scandal.

A recent article published in Health Magazine revealed some common restaurant mistakes that healthy people on a diet might make unconsciously, impeding their quest for weight loss. Listed here are 5 of the most common mistakes healthy people make.

All eyes are on New Zealand's Fonterra, following the weekend recall of infant milk products and sports drink due to the discovery of contamination of whey used in the manufacture of these two items. The bacteria found could lead to botulism, which could be fatal.

By Rudi Filapek-Vandyck, Editor FNArenaWhile appearing on Sky Business this morning with hosts Brooke Corte and Carson Scott, the discussion made a sidestep into the threat of more capital raisings following the surprise announcement by Paladin Energy ((PDN)).

The survival of New Zealand's $9.4-billion dairy trade is under threat over the discovery of tainted whey used in dairy products to eight customers in Australia, China, Malaysia, Vietnam, Thailand and Saudi Arabia.

Fonterra, the largest company in New Zealand, has issued a warning that some of products used in infant formula and sports drink may have the bacteria Clostridium Botulinum that could cause the deadly botulism.

Gains in the index continue to be hard earned. The market was flat early in the week with all the gains happening on Friday.

A 1 per cent improvement for the All Ordinaries Index (XAO) made today the happiest Friday since 14 June for the local sharemarket. The Australian market has now gained ground for six straight weeks and has only eased on two of the past 10 trading sessions. The XAO is only around 120 points (or 2 per cent) away from a five-year high.