POLITICS & POLICY

Bell FX Currency Outlook: The Australian Dollar continues to be pressured this morning and is trading at new session lows against the US Dollar and major currencies.

The Dow Jones Industrial Average erased losses in late Thursday trade, with the benchmark index trading up 12.95 points, or 0.1%, at 13,139. Trading tends to be volatile at the end of the quarter, as fund managers adjust their trading books.

Yesterday Australian stocks closed at their highest levels in almost five months but today investors are selling. Overall the Australian market is still performing a lot better than expected. Overnight end of quarter and end of month trading along with weak economic data out from the UK and US sent stocks lower. The All Ordinaries Index (XAO) is currently only down by 2pts to 4,433 points.

China assailed Australia's decision this week of banning a major Chinese firm from participating into the $36-billion roll out of the national broadband network (NBN), labelling the move as discriminatory and unfair trade practices.

Since 2008, the global financial crisis has wiped out more than $70,000 from the value of assets by the average Australian household. In 2011 alone, about $40,000 were lost from the average household assets value, a report by the Reserve Bank of Australia released on Thursday said.

In US trade, markets retreated on the back of disappointing durable goods orders and a plunge in oil prices. Risk appetite was generally subdued with commodities and risk currencies losing ground. Stocks were choppy through most of the European session, until the durable-goods orders data triggered the sharp move lower.

Treasurer Wayne Swan warned on Thursday of spending cuts and programme cancellations for the Australian government to achieve in May the budget surplus it promised. Money would also be redirected where it is needed most, he told the Australian Business Economists breakfast in Sydney.

At least 16 oil offshore blocks in East African Tanzania will be put up for oil exploration licensing beginning September, according to a geologist at state-run Tanzania Petroleum Development Corporation.

While asylum seekers globally are on the rise, in Australia their numbers went down by 9 per cent in 2011, a report by the UN Refugee Agency released on Wednesday said.

Mexico City is close to approving a bill that would ban bullfights.

Adelaide, South Australia based oil and gas producer Beach Energy will be undertaking a convertible bond rights offer to generate a total of A$345 million or $364 million to fund its various project initiatives in the next two to three years, including a fully underwritten 1 for 8 entitlement offer to raise A$195 million and an offer of senior unsecured convertible notes to raise about A$150 million.

Global energy giant Chevron Corp.,announced on Wednesday construction works at its $29-billion Wheatstone liquefied natural gas (LNG) in Western Australia is well underway, with more than half of the gas already committed to Japanese companies.

After a quiet night on the overseas markets the Australian market opened a few points higher and has extended its rally throughout the morning. The U.S. markets were held back by weaker than expected home price data, a fall in consumer confidence for March and profit taking after Monday's big rally. Yesterday on the Australian Stock Exchange (ASX) key banks, health care as well as food and beverage retail stocks moved higher. Today most sectors are holding on to gains into the afternoon sessi...

Thailand is wooing struggling automotive companies in Australia to move their operations to the former. Visiting Thai Deputy Secretary General Duangjai Asawacintachit, who heads the Board of Investment, said Thailand's solid economic growth and free trade links to other Asian nations offered wide opportunities for Aussie firms.

The Australian government has confirmed reports that the United States eyes a territory of the country for its spy plane operations but clarified that the plan will not be implemented soon enough.

Cooper Brewery Chairman Glenn Cooper called for new laws to stop the duopoly in the supermarket industry and protect local owners of farmlands. He specifically blamed Woolworths and Coles, which have engaged in a price war to the detriment of Australian farmers

U.S. stocks erased a little bit of Monday's sharp run-up in a late-day drop led by declines in energy and financial stocks. While Monday's action had the look of end-of-quarter/month window dressing, Tuesday looked a little more like investors taking some money off the table after a strong run in the aforementioned sectors.

Treasurer Wayne Swan gave Australians a glimpse into the Gillard government's new policy direction on Asia in a speech he delivered on Wednesday at the Australia China Business Council in Melbourne. Mr Swan called on Australia's business community to make an inspired decision and create greater links with Asia.

Bell FX Currency Outlook: The Australian Dollar has opened lower this morning following a fall in Chinese Industrial Profits yesterday, which was the first drop in profits since 2009.

Fresh from his landslide win, new Queensland Premier Campbell Newman has indicated his firm commitment to steer the Sunshine state away from the red column by first divesting its interests on QR National Ltd.

Dominique Strauss-Kahn has been preliminarily charged with having links with prostitution rings in France. He's denied the charge and been let off on a 100,000 Euro bail.

Julian Assange has described his planned Senate run as a corrective measure that would deal with the 'flawed political environment' in Australia.

With the prospect of the Coalition heading the national government by 2013 growing by the day, Shadow Treasurer Joe Hockey appears ready to take on the job presently dispensed by Federal Treasurer Wayne Swan.

Federal authorities have decided to prevent Huawei Technologies of China from playing any active role in the $38 billion roll out of the national broadband network, citing internet security issues.

Steel production by India has risen 6.8 per cent to 63.894 million tonnes during the April 2011 to February 2012 fiscal period, the country's steel minister announced.

India's total coal output by the 2016-17 financial year has been forecast to jump 43 percent to 795 million tonnes (MT) from the estimated 554 MT in the current fiscal year, India's Minister of State for Coal told Parliament on Monday.

Positive coal sales generation during January and February has prompted China Shenhua Energy Co Ltd. to declare its 2012 sales volume could likely reach 425 million tonnes to exceed earmarked targets.

The Queensland vote over the weekend pointed to a likely Labor humiliation come the national elections next year and today that spectre was further supported by the latest Newspoll survey, which showed Prime Minister Julia Gillard succumbing to defeat from the gathering Coalition storm.

MORNING REPORT (7am AEDT)In a speech to business economists Fed Chairman Bernanke confirmed that the Fed still believes that accommodative policy is needed to make further progress in lowering the unemployment rate despite being encouraged that the rate has fallen to 8.3pct - "conditions remain far from normal, as shown, for example, by the high level of long term unemployment."