POLITICS & POLICY

There was nothing frightening about Friday 13th, with sharemarkets improving for the first time in seven trading days thanks to economic news out of China not surprising investors. The All Ordinaries Index (XAO) rose by 0.3 pct or 12.3 pts to 4118.3. The XAO is one of the main ways to measure market performance in Australia. Despite today's gains, shares locally have slumped by 1.7 pct over the past five days, are only a touch weaker so far in July and are flat in the 2012 calendar year.

As expected, the Australian dollar slid, albeit marginally, on Friday afternoon in reaction to China's dismal second quarter 2012 gross domestic product (GDP) growth performance.

Matamec Explorations Inc., a junior mining rare earth exploration company, has entered into a sale and purchase agreement (SPA) and a joint venture agreement (JVA) with Toyotsu Rare Earth Canada, Inc. (TRECan) over the former's Kipawa heavy rare earths element (HREE) deposit in Québec.

The former Treasury Secretary, Ken Henry, encouraged Australian businesses to have an open mind for offshoring to help them survive the current economic and commercial global environment. By sourcing more of the products from overseas, he said the businesses - especially those in the manufacturing sector - would offset the squeeze they experience from the mining boom.

The three economic leaders U.S., the European Union and Japan won't be pleased. After imposing curbs of its rare earths exports, China is set to launch effective August 8 a physical trading platform for rare earths, in a bid to strengthen its hold, if not totally manipulate, the global prices of the essential minerals.

Not by some stroke of luck but more of a force majeure, the U.S. House of Congress on Thursday cleared a proposed law to increase the output of rare earths and other highly coveted metals and minerals, effectively clearing for the resurrection of its domestic rare earths mining which it suspended over 20 years ago partly due both to environmental concerns and falling global demand and prices.

Australians were at the mercy of global online retailers for now, which is the main reason that digital contents and products marketed locally carry more premium price when compared to offshore online stores, a new government submission said.

The federal government on Friday warned businesses to refrain from applying the GST on top of the fixed-priced carbon tax following news reports that the goods and services charges would be included on customer bills.

Australian unions are gearing up for a battle with Opposition leader Tony Abbott after he disclosed on Wednesday plans to revamp the country's flexible workplace agreement system.

The S&P 500 fell Thursday, extending the longest slump for the broader market in nearly two months as investors weighed concerns about corporate earnings and a global economic slowdown. The Standard & Poor's 500-stock index dropped 6.69 points, or 0.5%, to 1334.76. Technology and financial shares led declines, while defensive sectors such as healthcare and utilities rose.

Bell FX Currency Outlook: The Australian Dollar has opened lower this morning following a night of heavy market sentiment.

Rio Tinto has backed out from a planned $1-billion iron ore project in Portugal to focus on much bigger and potentially profit-yielding development projects, Reuters News reported.

A double whammy of falling revenue and rising costs have ultimately forced Australia's largest department store operator Myer to slash 100 jobs from a total of 13,000 manned staff, chief executive Bernie Brookes announced on Thursday afternoon.

The United States strongly urged China to seriously consider a code of conduct in the South China Sea, purportedly to ease the deepening dispute among claimants of the area, which is believe to hold vast amount of oil and natural gas reserves.

Ten days after Australia implemented its $23-a-tonne carbon tax law, the country's competition watchdog said it has received a total of 630 complaints against it.

Prime Minister Julia Gillard said on Thursday that remote areas in Australia will soon enjoy wireless broadband access with the sealing of the $280 million deal between NBN Co and U.S.-based ViaSat Inc.

At the rate BHP Billiton Ltd.is going, having filed for environmental approval for its iron ore expansion plans in the Pilbara region, it sure does look the global miner is bent to hoard much of Australia's natural reserves despite uncommitted action to push for the advancement of its two major expansion projects in the country.

Australia's unemployed has grown by 0.1 percentage points to 5.2% in June, as the number of people with jobs declined by 27,000 to 11,500,500 in the sixth month of the year, latest figures released Thursday by the Australian Bureau of Statistics (ABS) revealed.The Australian dollar, at 1200 AEST, dropped at 101.93 US cents immediately after the figures were released.

The Australian share market closed marginally lower yesterday and overnight market were held back once again by Eurozone concerns and lack of immediate stimulus help from the US Federal Reserve.

South Korea earned praises this time as it hinted the likelihood of backing down from its earlier announced plan of resuming whale hunting in pursuit of scientific research.

A study by an Edith Cowan University School of Management research team estimates a 25 per cent annual turnover rate for the 50,000 fly-in, fly-out (FIFO) workers in Western Australia.

Investors pared most of their losses in late trading, but still handed the Dow Jones Industrial Average its fifth straight loss after the minutes of the Federal Reserve's June policy meeting showed few signs that central bankers were moving towards further action. The Dow Jones Industrial Average ended down 48.59 points, or 0.38%, at 12604.53, after falling as many as 119 points in intraday trading.

Besides promising to repeal the carbon tax if the Opposition would win the 2013 election, Coalition leader Tony Abbott also vowed changes in work flexibility arrangements which would benefit Australia's tourism industry.

Bell FX Currency Outlook: The Australian Dollar is slightly stronger this morning, currently trading at USD1.0250, as investors digest the US Fed Minutes and news that Spain has added additional deficit-reduction measures.

Australia's exports of liquefied natural gas (LNG) is facing stiff rivalry from oil and gas exploration companies in East Africa amid the whopping 24 oil discoveries made from just only 27 test wells there.

Labor must clearly define its distinction from the Australian Greens but a veteran figure of the ruling party said today that ongoing stoush between the federal partners was wholly unnecessary.

A direct Australian dollar and China yuan currency conversion could very much augur well for a stable trade between the two growing economic leader nations.

Prime Minister Julia Gillard was playing politics when she picked Brisbane to play host for the 2014 G20 summit, top officials of New South Wales said on Wednesday.

China, as it gears its economy to sustain the continued global fiscal crisis along with general plans to boost domestic consumption, could transform from a major rare earths producing and exporting nation to a major consumer and importer of the precious metals essential to make high-tecg gadgets and applications.