POLITICS & POLICY

Global market trades have gone awry overnight that might cascade negative sentiments to the local market on Wednesday.

U.S. stocks were on pace for their biggest decline this year, hurt by soft readings on global economic growth and concern over a looming deadline for Greece's bond swap with private bondholders.

The Australian sharemarket lost ground for the second straight day, with the All Ordinaries Index (XAO) falling by 1.3 pct or 58.7 pts to 4295.5. Almost all sectors finished in the red with the I.T sector the lone improver. The world's largest share registry, Computershare (CPU) was the biggest contributor to the sector's gains, rising by 1.9 pct or 15 cents to $8.05. Listed companies tend to have a share registry that looks after their administration tasks and shareholder responsibilities...

Banks have offered emergency relief packages to assist people affected by the floods in NSW, Victoria, Queensland and the ACT, the Australian Bankers' Association (ABA) said.

The Reserve Bank of Australia (RBA) has maintained the country's benchmark rates at 4.25% considering an economic turnaround by the second half as a result of some structural changes especially the onset of the carbon price on inflation.

The appointment of Senator Kate Lundy as Minister for Multicultural Affairs has received mixed response in Australia. She is the first minister given the portfolio which was abolished in 2007 by then Prime Minister John Howard who preferred to push for a shared national identity.

Australian mining major Rio Tinto Group, also the world's third biggest mining company, is set to infuse some $2 billion into its Orissa iron ore project venture in India amid reports the country's local steel demand alone will balloon by 9 per cent annually over the next five years.

There were tell-tale signs that Coles and Woolworths were flexing too much muscle in pressuring suppliers to ramp up their production but without the corresponding benefits.

The controversy now has hit home.With Lynas Corp. still to fully arrest and win over the controversy surrounding its Lynas Advanced Materials Plant (LAMP) in Malaysia, here comes yet another information that could possibly whip up a storm right where its home base is.

Rare earths miners in China and Australia have decided to fast-track their respective exploration projects amid earlier reports that the falling prices of rare earths in the global market will trigger anew a massive demand for the precious metals.

Official dealings with the government must be undertaken with a fully established identity, this according to new laws that will take effect April 30 this year in New South Wales.

Global markets retreated overnight with China's announcement acknowledging a weakness in its economy and growth would be subdued in 2012 at 7.5%

Stocks bounced back in afternoon trading from morning losses, but remained in the red amid concerns about slowing global economic growth. The Dow Jones Industrial Average was down 21 points, or 0.2%, to 12956, led lower by Alcoa, which dropped 3.4%.

Bell FX Currency Outlook: The AUD has opened below USD1.0700 this morning, currently trading at USD1.0670, as a downgrade in Chinese growth forecast sees a fall in commodity prices that could also result to a decline in the value of the AUD.

As global mineral producers want a more aggressive stance in their search for new sources of precious metals including gold, platinum, and palladium; and other industrial metals, but they might be caught within a credit crunch that may hamper their plans this year.

The backbone of China's newfound economic might mainly rests on its manufacturing sector, which experts said could face serious skill shortages soon as millions of Chinese migrant workers gradually return to their rural homes.

The Australian sharemarket kicked off the new week in the red, with the All Ordinaries Index (XAO) down 0.2 pct or 9.9 pts to 4354.2. Weakness from the miners and energy players dragged the market lower today. On a positive note, we are almost 10 weeks into the year and local shares have improved by 5 pct. The Brazilian market has been one of the standouts and has gained by 19 pct in 2012 while German shares have jumped by 17 pct.

After Friday's announcement by Australian Prime Minister Julia Gillard of her third cabinet reshuffle in 18 months, all eyes are on her appointee to replace resigned Foreign Minister Kevin Rudd.

Australia's total gold yield had barely moved in 2011 and two tonnes less than those registered in 2010.

Australia's total gold yield had nary a movement in 2011, albeit two tonnes less than those registered in 2010.

The Australian government called on its Libyan counterpart to run after the suspected Islamic militants who desecrated dozens of graves in a Commonwealth cemetery, located in Benghazi, where 48 Australian soldiers killed during the Second World War were laid to rest.

The Virginia Senate race is turning into quite the catfight now that Hank the cat has thrown his paw into the race.

The Australian billionaires apparently the subject of the recent essay penned by Federal Treasurer Wayne Swan have hit back and declared that the senior Labor minister was barking up the wrong tree.

Safety regulators had made progress toward improving the rearview visibility for drivers driving a car or a light truck. But the safety regulators said the U.S. rule that may require all cars and light trucks sold in the country to have rear-view cameras won't be issued by deadline dated Feb. 29, 2012 and may be delayed until after presidential election in November.

China is expected to reveal its 2012 military budget this weekend, which U.S. military experts said could exceed the estimated $US160 billion that the world's second biggest economy spent in 2010 for upgrading its military might.

The independent Media Inquiry commissioned last year by the federal government has proposed the creation of a national watchdog that would keep watch on the conduct of all media outlets in Australia - print, broadcast and online.

The Malaysian government continues to uphold Australian miner Lynas Corp., and its beleaguered Lynas Advanced Materials Plant (LAMP) after it directed the company to move its proposed residue disposal facility to a site far from the LAMP location in Gebeng, Kuantan province.

Cautious sentiment is seen getting a grip at the start of the Australian stock market trading on Monday after Friday's disappointing leads from the U.S. and European stocks markets.

Bell FX Currency Outlook: The Australian dollar has opened this morning on the mid 1.0700's after a fairly narrow trading range on Friday evening.