POLITICS & POLICY

Tankers hauling liquefied natural gas (LNG) ought to brace themselves not only for a busy operational turnover scheduling of transporting the chilled gas from supplier to client's port, but also for increased profits as global demand has been forecast to grow to an all-time high.

Growth of Australia's services sector has remained subdued in December with business services posting headwinds ahead of the consumer-related services offered by local firms in December, according to the latest survery conducted by the country's Australian Industry Group and the Commonwealth Bank.

MORNING REPORT(8.00am AEDT) -- US Market close US factory orders rose by 1.8pct in November, driven by aircraft and transportation orders. New orders excluding transportation rose by a more modest 0.3pct. Durable goods orders rose by 3.7pct.

From Morrison Securities Pty. Ltd: U.S. stocks fluctuated between slim gains and declines Wednesday after rallying sharply in the previous session, as encouraging results from auto makers helped offset concerns about the Euro zone.

Activity in India's services sector rose at its fastest pace in five months in December, data from a survey by Markit Economics and HSBC Bank showed Wednesday.Based on a survey of around 400 firms, the HSBC Markit Business Activity Index grew 54.2 in December from 53.2 in November, staying above the borderline 50 mark which separates growth from contraction. It was India's second consecutive monthly growth for its services sector.

Barely a week into the new year and yet China is already bracing itself for a difficult first quarter 2012 on weakening exports, no thanks to the continuing mad financial crisis affecting its major export market, the Euro zone.

China's second-largest oil company, China Petrochemical Corp., otherwise known as Sinopec Group, has entered a purchase deal with Devon Energy Corp. to acquire a one-third stake in five Devon exploratory oil projects in the U.S. for $900 million.

Residents and business owners in Hunter Valley reiterated its call for the New South Wales (NSW) government to ring fence the region from coal seam gas (CSG) exploration and production.

In what seems to be a testament of the global pandemonium for supply of rare earths, American rare earths producer Molycorp, Inc. on Tuesday reported it had entered into customer supply agreements representing 78 per cent of expected output from the Phase 1 expansion works at its Mountain Pass, California rare earth mine and oxide manufacturing facility.

The Australian government urged Fiji's military rulers on Tuesday to restore democracy in the island republic, a day after the country's leader, Voreqe Bainimarama, announced immediate plans of reforms after seizing power in 2006.

Fresh reports of boat refugees intercepted anew by Australian authorities on Monday prompted new calls from Opposition Leader Tony Abbott for Prime Minister Julia Gillard to finally adjust her immigration policy.

Former Prime Minister Bob Hawke has called on current Australian Labor Party leaders to steer through the modernisation of the party and implement reforms that would secure its existence in the years ahead.

Gold futures advanced a tad higher on Wednesday, by far its best level in little over a week, on a weakening US dollar and Iran's pronouncement of its progress in its nuclear program.As of 0015 GMT, spot gold inched 0.2 per cent to $1,606.09 an ounce, its biggest daily gain in more than two months.

Yesterday, The Australian Stock market ended higher, All Ordinaries index (XAO) gaining 1.1 pct or 44.2 pts to 4155.2. The market started off stronger this morning up 1.2pct at the open of trade.

CNN - North Korea advised its people to demonstrate loyalty to the death for the new leader Kim Jong Un.

Current reports indicate that two groups of scientists were paid to genetically change a lethal virus into something more infectious. It has triggered fear, even rage, in a few quarters.

Reliance Power Ltd. by Indian billionaire Anil Ambani and global energy giant Royal Dutch Shell Plc are reportedly mulling to put up what could become India's first east-coast liquefied natural gas (LNG) terminal.

The Gladstone Ports Corporation is exerting efforts to have its harbour removed from the World Heritage List so that it could continue with its dredging operations sans international scrutiny, according to the Greens.

China's continued tightening of regulation policies on its property market has affected sales of both new and existing homes in Beijing.Latest data by Centaline China Property Research, the city's housing regulator, showed sales of new home in Beijing fell 18.4 per cent to only 90,605 units in 2011 compared from a year ago, the Beijing News reported Monday.

With China and India, both emerging economies, posting favorable manufacturing statistics in the last month of 2011, it surely goes to prove the Asian region is very much resilient to the fiscal rollercoaster ride in the European region. Suffice to say, that in the event Europe goes down, Asia could possibly remain firm.

In what could be a positive signal for the eventual opening of its controversial rare earths plant in 2012, the Malaysian Atomic Energy Licensing Board (AELB) has put for public consultation the application for a temporary operating licence of Australian rare earth processing company Lynas Corp.

As Western powers move closer to enforce its planned economic sanctions against Iran, Tehran gave the green light for its navy to conduct test firings of missiles on Monday, quickly earning condemnations from France and the United States.

Indian iron ore miners cautioned federal authorities total shipments of the key steel-making raw material ingredient will unlikely exceed 50 million tonnes in 2012 following the recent implemented increase in the duties of iron ore exports by the country.

Gold One International is now 89.17 percent owned by BCX Gold Investment Holdings, a consortium of Chinese investors, after the latter had successfully completed the required A$150 million subscription investment to gain majority ownership of the dual-listed South African and Australian gold producer.

Israel's military will soon warn citizens in real time and in multiple languages of incoming missiles that are not intercepted via SMS.

Today is the first day of trading for the 2012 calendar year, The Australian Stock market ended the last day of 2011, 19 points lower. But today, after higher commodity prices and light trading in Europe the market opened stronger.

Global record high prices of gold as well as high domestic interest rates have affected imports of the yellow metal by the world's largest buyer, India, falling 9.11% in 2011 compared a year ago, the Bombay Bullion Association said on Monday.

Bell FX Currency Outlook: With the majority of offshore equity markets and commodity markets in the US closed for the New Year's holiday, the AUD is remaining steady around USD1.0200 level in thinly traded markets.

MORNING REPORT(8.00am AEDT)The euro zone purchasing managers index rose from 46.4 to 46.9 in December. The French index rose from 47.3 to 48.9 and the German index lifted from 47.9 to 48.4. In figures released on Sunday the official Chinese manufacturing index rose from 49.0 to 50.3 in December.