POLITICS & POLICY

Until the unemployment report came out on Thursday, economists and analysts were anticipating a larger cut on the overnight cash rate when the Reserve Bank of Australia meets in May. Their expectations range from 25 to 75 basis points rate cut.

The government was asking too much from the mining industry, according to leading resource players, as they scored a new federal regulation that require them to furnish information that would allow non-mining firms to capitalise too on the ongoing mining boom.

Yesterday the Australian share market sold off from the open and the All Ordinaries Index (XAO) closed down 46 points or 1.1pct. After a better night on overseas markets the Australian market opened 6 points higher this morning. The concerns over European growth were still around, but investors were happy to hear that the European Central Bank could extend its bond buying program if needed to stimulate the economies.

Acknowledging that the present aged care system badly needs overhaul, the federal government is mulling for ways to effectively address the problem without derailing its goal of realising a surplus by 2013.

Iran has announced a jump in its gold reserves allocation to 320 tons after a discovery of three new gold mines showed 16 tonnes of proven net gold reserves, the Fars News Agency reported on Wednesday.

In a bid to concentrate on the development of its Talisman Gold Mine Project near Waihi in New Zealand, Heritage Gold NZ has announced plans to break up the company into two separate entities, replacing its chairman and transfer non-core assets to a wholly-owned subsidiary.

Bell FX Currency Outlook: A turnaround in market sentiment overnight has seen the AUD rally to back above USD1.0300.

In response to complaints from businesses that their cost of compliance with environmental laws is going up, Australian Prime Minister Julia Gillard ordered on Thursday the streamlining of state and federal laws.

The Reserve Bank of Australia (RBA) is under pressure from unions and business groups to reduce the overnight cash rate when the policy board meets in May. RBA had keep interest rates at 4.25 per cent the past three meetings, but the big four instead increased their mortgage rates twice.

It was a tough start of the Australian share market. The All Ordinaries Index (XAO) opened 30 points lower after European and U.S. market slumped overnight. U.S. markets listed the worst trading day in 3 months, down for the 5th trading day in a row, as new concerns over European growth and a slowdown in internal Chinese growth hit the markets.

It is more prudent to save up now to prepare for the rainy days as the International Monetary Fund (IMF) predicted considerable slides in prices of commodities for financial year 2012-2013.

The Australian government said stopping a group of Chinese asylum seekers setting sail for New Zealand is not covered by its legal authority.

The Australian central bank has been fairly consistent on rolling out its rates policies but its decisions were not of any help to the local economy.

Overall outlook for iron ore consumption and trade continues to look bright even as Chinese demand for the raw commodity may wither in the next years.

A closer cooperation on infrastructure projects between Australia and China is expected to emerge from the newly-signed deal that governments of the two nations hope would further strengthen their trade relations despite the tensions that recently arose.

Developing economy India has forged a memorandum of understanding (MoU) with Afghanistan which outlines a cooperation for the development of the war-torn country's iron and steel sector.

Internship arrangements have reportedly been abused by many employers that the Fair Work Ombudsman has been prodded to look deeper into allegations that companies have been using the set-up to enjoy 'free services' from hapless workers.

Bell FX Currency Outlook: The AUD is lower this morning due to a drop in sentiment offshore, brought on by worries about Spain's economy and Friday's weak US non-farm payrolls data.

In US trade, markets declined in a decidedly risk-off session. A sharp rise in Spanish and other peripheral European sovereign debt yields dented investor confidence. The inability of Spain's fiscal austerity measures to alleviate the pressure in the bond market is worrisome, as Economy Minister Luis de Guindos declined to rule out a rescue for the country, and Bank of Spain Governor Mr Ordonez said Spanish lenders may require additional capital if the economy weakens more than expected.

US wholesale inventories rose by 0.9pct to $478.9 billion in February. The surge in inventories was largely driven by a rise in petroleum inventories which gained 3.9pct - the biggest increase in a year. US ICSC chain store sales rose by 4.1pct last week compared with a year ago. Same store sales are expected to rise between 3-4pct in April.

Less than three months before the Gillard government starts to collect the carbon tax on July 1, the measure continues to generate criticism from various sectors of Australian society. A tax expert questioned the carbon tax's constitutionality on Tuesday and charities warned on Wednesday of its impact on the services it provides poor people.

The Australian share market opened 30 points lower after the Easter break. Last Thursday, the 5th of April, the market ended slightly lower with the All Ordinaries Index (XAO) down 0.4 pct to 4,402. Over the Easter holiday break U.S. non-farm payroll numbers, key monthly job data, came in weaker than expected and concerns about inflation in China saw Asian and U.S. markets fall and today our market has followed their lead.

Prime Minister Julia Gillard has adopted a hands-off policy in dealing with the Craig Thomson affair, insisting that the matter should be resolved by following the due course of the law.

A new estimate by an independent mining-industry consulting firm has elevated the proven and probable rare earths reserves at the Mountain Pass, California rare earths mine of American miner Molycorp Inc. to as much as 36 per cent.

Bell FX Currency Outlook: The AUD is unchanged after the Easter break despite some weaker than expected US payrolls data which was released during Friday's offshore trading session.

Australians will have to pay more on home bills once the carbon tax takes effect in July this year but the federal government said these additional expenses will be erased by considerable rebates under the tax program.

Bringing back the budget to surplus by next year is imperative for the Australian economy despite claims that deep spending cuts could hamper economic growth.

Keeping out China from Australia's multi-billion national broadband network (NBN) telecommunication build up was unjust, especially if the decision was based on mere suspicions.

The Australian sharemarket ended a little lower for the third time this week with the All Ordinaries Index (XAO) down 0.4 pct or 16.6 pts to 4402.3. Our miners have struggled this week, with BHP Billiton (BHP) down 0.86 pct or 30 cents to $34.44 while Rio Tinto (RIO) dropped 1.66 pct or $1.10 to $65.29 today.