POLITICS & POLICY

The federal government of Australia is axing hundreds of jobs in various departments to meet its promise to deliver a $1.5-billion budget surplus in 2012-13. The layoffs and redundancies are part of the spending cut announced by Treasurer Wayne Swan last week.

The Australian sharemarket had an uninspiring session today, with the All Ordinaries Index (XAO) down 0.1 pct or 5.5 pts to 4418.9. Shares were down by as much as 0.5 pct at one point following some worse than expected economic data out at 11.30am (AEST). As the day wore on shares steadily wiped away those early losses.

China is dead serious in embracing free trade - the core element of capitalism - more so with the United States even as the two nations have yet to formally settle their trade disputes.

New Zealand Prime Minister John Key has said the death of a 26-year-old soldier outside of combat in Afghanistan, which “does not appear to involve the actions of another party" was "a very tragic circumstance.''

Prime Minister Julia Gillard will not support any moves to legalise illicit drug trade despite the strong support thrown behind the idea by one of her key cabinet ministers.

Gold imports by the world's leading buyer of the precious safe haven yellow metal fell more than 55 per cent in the first quarter of 2012, marred by the ongoing nationwide strike of gold bullion traders and jewelers protesting India's proposed hike in import duty on gold bars, coins and platinum.

The first phase of construction works on the Lynas Advanced Materials Plant (LAMP) in Malaysia is nearly completed, with just the temporary operating license (TOL) left as the final fuel to totally ignite the rare earths plant into full operation.

Two hundred U.S. Marines from the Fox Company, 2nd Battalion, 3rd Marines are now in Darwin as part of a new bilateral defence agreement between Australia and the United States.

Bell FX Currency Outlook: The Australian dollar has opened lower this morning, to be currently trading around USD1.0320, and looks like it may break below USD1.0300 during our trading session today.

A soldier from New Zealand died in Afghanistan outside combat Tuesday, prompting an investigation as initial reports indicated the death did not involve anyone else.

Even if the Reserve Bank of Australia (RBA) kept on hold the overnight cash rate of 4.25 per cent for the third straight month, the central bank did not discount the possibility that it may cut interest rate in May.

The Liberal National leadership is supportive of the plans revealed earlier by Senator Barnaby Joyce to switch into the House of Representative, purportedly in preparation for the election of a Coalition government next year.

The local share market had a positive lead from offshore markets overnight but managed only a modest gain by close. As expected the Reserve Bank of Australia left the official cash rate on hold at 4.25pct for the third month in a row, despite official data released today showing retail spending remains sluggish. By close, the All Ordinaries Index (XAO) was up just 8pts or 0.2pct to 4424.4.

There was no pressing need to revisit the provisions of the carbon tax, which takes effect July this year, according to Prime Minister Julia Gillard amidst suggestions within the Australian Labor Party that the tax could spell disaster for the Labor-led government.

The Reserve Bank of Australia (RBA) kept the overnight cash rate of 4.25 per cent on Tuesday, as forecast by economists and analysts.

The Australian sharemarket is slightly higher at lunch, with the All Ordinaries Index (XAO) up 0.3 pct or 13 pts to 4429.4. Most sectors are improving; however the industrials, healthcare stocks and the utilities are losing a bit of ground.

It is high time for the Australian government to reconfigure its strategy in neutralising the illegal drugs trade, a new report said, which also highlighted the seeming successes that organised crime groups have achieved against legal efforts to stem their operations.

Ampella Mining, a gold explorer focused in West Africa, has put up the sale sign albeit concerns it might not be able to hit the sale funds it expects.

Indian jeweler and watch maker Titan Industries has gotten an approval from the federal government to directly import gold for domestic sales, as the country's bullion traders and jewelers protests' entered their 17th day on Monday.

MORNING REPORT (7am AEST)The ISM manufacturing index rose by from 52.4 to 53.4. Across the sub-indices production jumped to from 55.3 to 58.3 , the new orders balance dipped from 54.9 to 54.5 and the employment reading rose from 53.2 to 56.1, a 9-month high.US construction spending fell 1.1pct to an annual rate of $808.86 billion, a 7-month low. The result was well below forecasts which centred on a rise of 0.6pct. Spending in January was revised to show a much bigger 0.8pct fall instea...

Bell FX Currency Outlook: The AUD is slightly higher this morning after some positive data out of the US and the UK boosted investor optimism.

Stocks rose to multiyear highs in the first session of the new quarter after a solid reading on domestic manufacturing activity in March. The Dow Jones Industrial Average climbed 52.45 points, or 0.40%, to 13264.49, its highest close since December 2007.

On Sunday, China released its official Purchasing Managers' Index (PMI) which, according to the China Federation of Logistics and Purchasing (CFLP) and National Bureau of Statistics, showed that manufacturing activity in the world's second-largest economy improved to 53.1 in March, up from 51.0 in February. It was also Beijing's highest in 12 months.

The Australian sharemarket started the day off almost 1 pct higher and then gave away its gains as the day progressed. The All Ordinaries Index (XAO) eased by 0.1 pct or 3.6 pts to 4416.4. The mining and energy sectors rose strongly while almost all other sectors lost ground today.

Australia has turned to the United States for skilled workers led by electricians and plumbers that are now highly in demand by local industries.

The already much-delayed $12 billion steel mill project of South Korean steel group POSCO in India hit yet again another snag, as a newly established government body placed the project on hold pending environmental review processes.

China is set to launch on April 8 a rare earths industry association in a bid to curb the rampant domestic illegal mining of the precious metal commodity as well as regulate its rare earths players.

Adelaide topped the list of Australian cities in terms of urban planning, the Council of Australian Governments (COAG) Reform Council said.

MORNING REPORT (7am AEDT)US consumer sentiment rose from 74.3 to a 13-month high of 76.2 in March - well above forecasts of a result near 74.7. US personal income rose 0.2pct in February with spending up 0.8pct - largest gain in seven months. The Chicago purchasing managers' index eased from 64.0 to 62.2 in March.