POLITICS & POLICY

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."

U.S. stocks surged Monday, largely erasing last week's losses, after a speech by Federal Reserve Chairman Ben Bernanke signaled the central bank is committed to a monetary policy that's helped buoy stocks for three years. The Dow Jones Industrial Average rose 130.67 points, or 1%, to 13,211.40. The S&P 500 Index gained 16.07 points, or 1.2%, to 1,413.18.

Bell FX Currency Outlook: The AUD has pushed through USD1.0500 after dovish comments from the Fed Chairman Ben Bernanke saw a selloff in the USD.

A Tibetan man has self-immolated himself in New Delhi on Monday at an anti-China protest rally. More than 600 protestors marched through the capital on Monday to show their dissent against China. The Tibetans are fighting for independence from Chinese rule.

Eager to cement an apparent budding friendship between India and South Korea, the two countries on Sunday announced plans to increase their annual bilateral trade to $40 billion by 2015.

Anytime you download a movie from Netflix to your television or turn on an Internet-based radio, you could be alerting people who you don't want or need watching you.

Retail giant Solomen Lew criticised on Monday the alleged mishandling by the Reserve Bank of Australia's (RBA) of the resources boom. He said the bank's board lacked an understanding of the broader Australian economy.

Can you imagine, for one horrifying second, a world with no sushi and no vodka? We can't. We can imagine a Hell of such description, yes. A fire and brimstone purgatory of infinite and unbearable pain. But not a world...at least not one in which we'd choose to live.

The rousing rejection suffered by the Australian Labor Party in Queensland on Saturday would necessarily lead to a federal government being bannered by the Coalition come next year's national elections.

Last week the Australian share market ended lower closing out a hard week for investors. However this morning the market seems a bit brighter thanks to higher commodity prices over the weekend and no negative news hitting the screens. At lunchtime in the East, the All Ordinaries Index (XAO) is higher by 4pts to 4,364.

General Electric backed the Australian carbon tax, which the government will start to collect on July 1. GE said on Monday that it would allocate more funds to pursue carbon reduction technologies.

The positive leads from global markets led by the rise in the U.S. equities Friday have not provided enough boost to prop up the sentiment in the Australian stock market early on Monday.

MORNING REPORT (6am AEDT)US new home sales eased from a 318,000 annual rate in January to 313,000 in February, below expectations for a result near 325,000. But the weekly Economic Cycle Research Institute index rose from 125.1 to 125.7.European shares recorded small gains on Friday. But key indices ended the week sharply l

Bell FX Currency Outlook: The Australian dollar has started the week in the mid 1.0400's after its tumble last week to a monthly low below 1.0350.

Companies including drugstore operator Walgreen Co. (WAG) and electronics retailer Best Buy Co. (BBY) are scheduled to report their latest quarterly results this week. A former MF Global Holdings Ltd. (MFGLQ) employee is expected to appear before a U.S. House subcommittee this week to answer questions about the transfers of millions of dollars before the failed broker-dealer's bankruptcy filing.

A panel set up by Treasurer Wayne Swan has recommended possible tax cuts for research and development by big business in the government's efforts to plug holes in the country's business tax system.

In the spirit of election season political posturing, the Obama White House has announced that it is filing a trade lawsuit against China for restricting exports on rare earth metals and other materials used in the production of touchscreen mobile phones, military weapons, laptop computers, and various other high-tech devices.

Australia's tax legislation is, according to urban legend, the longest piece of legislation in the world. One of our law professors reportedly has an entire room devoted to books of Australia's extensive tax law. Part of the story is that Australia has several tax Acts.

Fortescue Metals Group (FMG) owner Andrew Forrest called on the federal government Thursday night to simply make good on its earlier economic promises instead of attacking certain personalities.

Global miners Rio Tinto Group, BHP Billiton Ltd. and Vale SA, in a testament to China's global influence in the supply and price movements of iron ore, have decided to link hands with Beijing and join the Asian country's new spot trading platform for the raw commodity.

In an apparent firm demonstration of its commitment to reduce its gas emissions contribution, China has announced it will start controlling domestic production and corresponding usage of coal in the next five years through 2015.

Australia has signed a A$30 billion currency exchange deal with the world's second largest economy, China, to foster bilateral trade and investment, in what could also be seen as a confirming testament to the yuan's increasing buying power and global market reach.

Bell FX Currency Outlook: The Australian dollar has continued its tumble overnight as shrinking manufacturing data in China and Europe bolstered safe haven demand for the US dollar.

Stocks traded lower following weak economic signals from the euro zone and fresh concerns from China about slowing global growth. After rising to multiyear highs in recent days, major benchmarks extended their retreat into a third session Thursday. Sectors especially exposed to global growth, such as energy, materials and industrials, were the session's biggest decliners.

MORNING REPORT (7am AEDT)Flash PMIs dropped surprisingly in Germany, France and for the Euro-zone composite. The biggest surprise was the German manufacturing PMI which fell from 50.2 to 48.0. The French manufacturing PMI fell even more sharply, from 50.0 to 47.6.

Soft orders and oversupply could drive down the global market price of commodities but Australia's earnings from shipments of the products will continue climbing, according to the latest estimates provided Wednesday by the Bureau of Resources and Energy Economics (BREE).