F33 Basic Material Wholesaling

Two-step China free-trade plan

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Original article by Phillip Coorey, Angus Grigg
The Australian Financial Review – Page: 1 & 11 : 12-Nov-14

Insiders say the new free trade agreement with China due to be signed by Australian Prime Minister Tony Abbott on 17 November 2014 will not contain all of the concessions sought. Instead, some of the measures will be negotiated over time, in order to enable the timely conclusion of the main talks now. Trade Minister Andrew Robb has nominated the services sector as one area where more work will be done. Major issues for China are foreign investment restrictions on state-owned enterprises and plans to bring workers from China to Australia for projects financed by the former

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, ASIA-PACIFIC ECONOMIC CO-OPERATION, GROUP OF TWENTY (G-20), TRANS-PACIFIC PARTNERSHIP

Goyder pleads for action on new trade deal

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Original article by Annabel Hepworth
The Australian – Page: 19 : 7-Nov-14

Richard Goyder, CEO of Wesfarmers, also chairs the Business 20 (B20) body advising the Australian Government on the Group of 20 (G20) leaders’ summit in November 2014. He urges G20 nations to adopt the recommendations of B20 on issues such as global free trade and investment in infrastructure projects to boost the economy. Goyder also backs comments by International Monetary Fund MD Christine Lagarde that industrial relations reforms are needed. Robert Milliner, the B20 sherpa, says G20 members must roll out free trade initiatives agreed to at a meeting in Indonesia in late 2013

CORPORATES
WESFARMERS LIMITED – ASX WES, BUSINESS 20 (B20), GROUP OF TWENTY (G-20), INTERNATIONAL MONETARY FUND, WORLD TRADE ORGANIZATION, MALLESONS STEPHEN JAQUES, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Risk of ‘fiscal fiasco’ if China runs off the rails

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Original article by David Uren
The Australian – Page: 2 : 27-Oct-14

Deloitte Access Economics has released a new report on the potential impact on Australia of a more rapid slowing of GDP growth in China. The latter accounts for 38% of Australian exports, and if its growth rate falls to under 4% per annum Australia is likely to experience a recession. The forecasting firm warns that the Federal Government must do more to rein in the Budget deficit in light of this scenario. However Deloitte still maintains that the most likely outcome is growth in China of 7% or more, and a fall in Australia’s terms of trade of 9.2% for 2014-15 before less dramatic declines of between 1% and 2% a year in the period to 2018-19

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DELOITTE ACCESS ECONOMICS PTY LTD

Business backs final push for TPP

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Original article by John Kerin
The Australian Financial Review – Page: 3 : 23-Oct-14

Australian business organisations have issued a joint statement in which they stress the importance of forming the Trans-Pacific Partnership. Trade ministers of 12 countries in the Asia Pacific region will discuss the matter at a meeting in Sydney, starting on 24 October 2014. The Business Council of Australia, the Australian chapter of the American Chamber of Commerce, and the US Chamber of Commerce say in the statement that the trade bloc will create jobs

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, AMERICAN CHAMBER OF COMMERCE IN AUSTRALIA, AMERICAN CHAMBER OF COMMERCE AND TRADE, UNITED STATES CHAMBER OF COMMERCE, TRANS-PACIFIC PARTNERSHIP

China pact sees miners duck tariffs

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Original article by Sid Maher, Scott Murdoch
The Australian – Page: 5 : 22-Oct-14

The Chinese Government recently declared new tariffs of 3% and 6% on imports of metallurgical and thermal coal respectively. However, Australian producers will be spared the measure, as Trade Minister Andrew Robb has negotiated a zero tariff in the talks on a new free-trade agreement between the two nations. Meanwhile Prime Minister Tony Abbott is being criticised by some of his Coalition MPs over failing to roll out a promised tightening of foreign investment limits in the agricultural sector

CORPORATES
AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, NATIONAL PARTY OF AUSTRALIA, GROUP OF TWENTY (G-20), WORLD TRADE ORGANIZATION, ASIA-PACIFIC ECONOMIC CO-OPERATION, CHINA. MINISTRY OF FINANCE

LNG exports to quadruple in five years

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Original article by Scott Parker
The Australian Financial Review – Page: 31 : 22-Oct-14

The Commonwealth Bank’s Lachlan Shaw is upbeat about the outlook for Australia’s LNG industry, forecasting strong growth in exports over the next five years. However, he warns that high capital costs in Australia may jeopardise future LNG projects, while the price of LNG being linked to the crude oil price presents another headwind for the industry. The oil price recently reached a low of $US82.60 per barrel

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WOODSIDE PETROLEUM LIMITED – ASX WPL, ORIGIN ENERGY LIMITED – ASX ORG, EXXONMOBIL CORPORATION, FACTS GLOBAL ENERGY GROUP OF COMPANIES, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES

Race against time to wrap up China FTA

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Original article by Rowan Callick
The Australian – Page: 17 : 20-Oct-14

Chinese President Xi Jinping will in November 2014 travel to Brisbane to attend the Group of 20 (G20) leaders’ summit. The Australian Government aims to finalise a free-trade agreement with China by that date, and insiders say that only six of the 20 issues in the document still require more talks. The Minister-Counsellor for Economic and Commercial Affairs at the Chinese embassy, Huang Rengang, says Australian Agriculture Minister Barnaby Joyce is correct in scaling back expectations for the nation to become "Asia’s food bowl". Huang also notes that trade between the two countries grew 19% year-on-year during the first three quarters of calendar 2014

CORPORATES
AUSTRALIA. DEPT OF AGRICULTURE, GROUP OF TWENTY (G-20), ASSOCIATION OF SOUTH-EAST ASIAN NATIONS, WORLD BANK, PORT OF MELBOURNE CORPORATION PTY LTD, SHENHUA INTERNATIONAL LIMITED – ASX SHU

Australia exposed on oil by Mid-East conflict

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Original article by Cameron Stewart
The Australian – Page: 4 : 20-Oct-14

The NRMA motorists’ lobbying body in New South Wales warns that the nation’s energy security is under threat by the rising level of fuel importation as well as the armed conflict in the Middle East. Director Graham Blight says the current stores of transport fuel are only three weeks’ worth or less, and the economy would be severely crippled if they were to be depleted. Some 90% of fuel is now being sourced from overseas, compared with just 60% in 2000

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NRMA LIMITED

Speed-up plan for Japan deal

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Original article by Greg Earl, Peter Ker
The Australian Financial Review – Page: 7 : 14-Oct-14

The free trade agreement between Australia and Japan was slated to begin on 1 April 2015. Both nations are keen for the trade deal to begin earlier, possibly in February. This could result in the tariff on beef exports being reduced on the starting date for the deal and again at the beginning of Japan’s financial year on 1 April. Japan is the biggest export market for Australian beef

CORPORATES
AUSTRALIA-JAPAN BUSINESS CO-OPERATION COMMITTEE

Iron ore glut spurs ‘race to bottom’

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Original article by Jemima Whyte, Matthew Stevens
The Australian Financial Review – Page: 15 & 21 : 13-Oct-14

Australian producers BHP Billiton and Rio Tinto are responding to the recent dramatic decline of the iron ore price with a boost in output. The strategy is being criticised by Nev Power, CEO of third-ranked competitor Fortescue Metals Group, as well as by Alberto Calderon. The latter had spearheaded the ultimately abandoned plan to merge BHP and Rio, and also argues that a currently rumoured takeover bid for Rio by Swiss resources house Glencore would not reverse the price trend for iron ore

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RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, GLENCORE PLC, PLATINUM ASSET MANAGEMENT LIMITED – ASX PTM, PERPETUAL LIMITED – ASX PPT, PERPETUAL INVESTMENTS