BUSINESS

British-Australian miner Rio Tinto (ASX:RIO) announced on Monday it will invest US$1.6 billion to develop the Hope Downs 4 iron ore project in Western Australia and link with Rio Tinto's existing rail, power and port infrastructure in the Pilbara.

The Australian currency managed to finish almost one US cent higher even after a steady fall throughout the trading day as the Bank of Japan took measures to bolster liquidity in an emergency meeting.

The Australian bourse rallied on Monday, posting a record increase this month, as the investment community took heart from reassurances by US Federal Reserve chairman Ben Bernanke that the central bank would provide more stimuli to the US economy if necessary.

Australian prospectors are searching old mines for more gold as bullion prices increase, pushing production to its record high in more than six years, according to consultant Surbiton Associates.

Gold showed to be steady as it began its fifth straight week in positive territory before the release of mixed US economic data.

The Australian Institute of Petroleum (AIP) announced on Monday that the national average price of petrol fuel slipped by 124 cents each litre last week, which it said was the biggest drop from the past six months.

Caltex Australia (ASX:CTX) has announced today it intends to continue a major expansion of its fuel terminal at Port Hedland in Western Australia in a move set to increase supply capability to the resource-intensive state's diesel market.

Building materials specialist James Hardie Industries SE announced on Monday that it would enter trading halt from 1400 AEST on September 1 pending the Federal Court decision on its appeal against a tax assessment that runs to more than $US330.4 million or $A366.62 million.

The six percent increase in electricity costs is not the last for the year.

Global rural lender Rabobank Group said on Monday that business confidence among Australian farmers soared to a record level in August as commodity prices saw marked improvement with farm outlook further buoyed by the arrival of winter rains in most states.

The number of new houses sold from May to July is 2 percent lower than the figures for the same period last year.

Australia's economy is expected to show an upward trend because companies earned well in the second quarter.

The Australian stock market was surging ahead at Monday noon, with banks and mining stocks following a strong lead from Wall Street.

The local market welcomed what Ben Bernanke, chairman of the US Federal Reserve, said over the weekend that he will do whatever it takes to boost the US economy. His statement proved to be the positive impetus for Wall Street, which rallied strongly on the weekend.

Giant oil firm Caltex Australia Ltd (ASX: CTX) announced on Monday that it is tapping Transfield Services Ltd (ASX: TSE) for expansion works on the company’s fuel depot at Port Hedland in Western Australia.

The Australian Nursing and Midwifery Federation (ANMF) is anxious over the South Australian government's stance on their recent enterprise bargaining action (EBA).

The $37 million sexual harassment suit against David Jones and its former chief executive Mark McInnes has commenced its hearing sessions in a Sydney Federal Court as similar complaints from other employees may be added to the case, according to a lead prosecuting lawyer.

Potential borrowers face an increase of 1.5 percentage points in the cost of bank loans.

The Public Transport Authority (PTA) reassured commuters early today that trains will come in as scheduled. David Hynes, spokesperson for the PTA, said Friday's incident will not be repeated.

The Australian Dollar surged following comments from Federal Reserve Chairman Governor Bernanke in a keynote speech to global central bankers lifted market sentiment on Friday night.

The US economy grew at a 1.6pct annual pace in the June quarter, down from the original estimate of 2.4pct. Economists had tipped a result near 1.3pct. US consumer sentiment rose from 67.8 to 68.9 in August, short of forecasts near 69.6.

U.S. stocks climbed Friday, with DuPont, Alcoa and Caterpillar leading broad gains. Investors took comfort in Federal Reserve Chairman Ben Bernanke's promise to do what it takes to support an economic recovery, along with a better than feared revision of second quarter economic growth.

The Australian Dollar is stronger across the board today and moved sharply higher against the greenback late in the offshore session on Friday.

US markets put in a good session to close the week out on Friday as Federal Reserve Chairman Ben Bernanke eased market concerns by saying the Fed was willing to do whatever it takes to stabilise the recovery. A better-than-expected reading on Q2 GDP also had the markets in a good mood.

Port and rail assets firm Asciano Group (ASX: AIO) is competing for all three parcels of the the mineral resources co-operative CBH Resources Limited (ASX: CBH).

The mandatory renewable energy target (RET) scheme would raise energy prices.

Commercial and residential projects could go back to the planning table due to the uncertainty in the proposed National Broadband Network (NBN).

Consumers increased their preferences for buying organic products this year.

The combined forces of Julia Gillard of the Labor party, Tony Abbott of the Liberal/National coalition, and the independents Tony Windsor, Rob Oakeshott, and Bob Katter could support regional development.