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14 theSun | MONDAY JULY 13 2009

business

Australia: Rio ‘spy’ arrest bad


for China’s business standing EXCHANGE RATES July 10, 2009
MELBOURNE: Australia Hu was arrested in government websites to find countries.
yesterday warned China Shanghai on July 5 but out information on Mr Hu.” “It shouldn’t matter what Foreign currency Bank sell Bank buy Bank buy
risked damaging its busi- Australian consular staff Smith quoted at length our relationship is in terms TT/OD TT OD
ness reputation abroad by only gained access to him Friday from a Chinese gov- of trade, all Australians Finding
1 US DOLLAR 3.5980 3.5330 3.5230
holding a top Rio Tinto five days later and Canberra ernment website outlining who are overseas and in new life 1 AUSTRALIAN DOLLAR 2.8570 2.7320 2.7160
executive accused of spy- has still received no official the allegations levelled at trouble should be getting in 1 BRUNEI DOLLAR 2.4770 2.4150 2.4070
ing, and predicted a lengthy explanation about the al- Hu, saying there had been appropriate action from
diplomatic stand-off over legations he faces. no direct contact with Chi- the government, and that is death 1 CANADIAN DOLLAR 3.1070 3.0310 3.0190
his fate. Smith said Australia had nese officials on the matter. what we’re doing,” he told pg 18 1 EURO 5.0540 4.9320 4.9120
As the opposition labelled asked China to deal with And Trade Minister Si- Channel Nine. 1 NEW ZEALAND DOLLAR 2.3040 2.2020 2.1860
Canberra-Beijing relations the matter quickly, adding mon Crean said in Shanghai Analysts have linked 1 PAPUA N GUINEA KINA 1.4880 1.2490 1.2330
“fractured” over Australian that it would be another on Saturday the government Hu’s arrest to Rio’s rejection
1 SINGAPORE DOLLAR 2.4765 2.4150 2.4070
passport holder Stern Hu’s month before consular staff was reliant on press reports of state-owned Chinalco’s
arrest, Australian Foreign were next allowed to see the for updates on Hu’s case. US$19.5-billion (RM69.23 1 STERLING POUND 5.8830 5.7400 5.7200
Minister Stephen Smith executive. Bishop said Australia billion) bid to lift its stake 1 SWISS FRANC 3.3420 3.2620 3.2470
urged China to consider “We may well be in for a should be demanding an- in the miner and the Anglo- 100 ARAB EMIRATES DIRHAM 99.7100 94.4400 94.2400
how the row would impact long haul here,” he said. swers directly from Beijing. Australian mining giant’s 100 BANGLADESH TAKA 5.3400 5.2100 5.0100
on its standing in the busi- China is Australia’s “The Australian minis- tough stance in iron ore 100 CHINESE RENMINBI N/A N/A N/A
ness world. number two trading part- ters, as far as we’re aware, negotiations.
100 DANISH KRONE 69.8900 64.2200 64.0200
“One of the issues for ner, in a relationship worth have not even picked up the “Although we cannot say
Chinese authorities to US$58 billion (RM205.9 bil- phone to their counterpart whether it is China’s revenge 100 HONGKONG DOLLAR 47.2500 44.7600 44.5600
contemplate is the extent to lion) last year, according to ministers and raised this or retaliation, the incident 100 INDIAN RUPEE 7.6800 7.0500 6.8500
which the circumstances official figures. issue,” she said. will definitely dampen the 100 INDONESIAN RUPIAH 0.0368 0.0314 0.0264
of this case will cause the Opposition foreign Employment Minister commercial relationship be- 100 JAPANESE YEN 3.8790 3.7850 3.7750
international business com- affairs spokeswoman Julie Mark Arbib denied Can- tween Beijing and the over- 100 NEW TAIWAN DOLLAR N/A N/A N/A
munity to have any cause for Bishop said Beijing’s lack berra was reluctant to raise seas companies,” Hongkong
100 NORWEGIAN KRONE 57.3300 52.4900 52.2900
concern,” he told reporters. of cooperation on the issue the case more forcefully Baptist University associate
Hu, the head of the showed deep problems in with Beijing because of the finance professor Billy Mak 100 PAKISTAN RUPEE 4.5100 4.2200 4.0200
Shanghai office for mining Australia’s diplomatic rela- trade ties between the two said. – AFP 100 PHILIPPINE PESO 7.6400 7.1900 6.9900
giant Rio, was arrested on tions with China. 100 QATAR RIYAL 103.3700 95.4700 95.2700
suspicion of espionage “There appears to be a 100 SAUDI RIYAL 97.4500 92.6900 92.4900
and stealing state secrets major fracture in the rela- 100 SOUTH AFRICAN RAND 45.8100 42.1400 41.9400
by bribing staff at Chinese tionship between Canberra
100 SRI LANKA RUPEE 3.2400 2.9700 2.7700
steel companies during and Beijing,” she told public
protracted iron ore price broadcaster ABC. 100 SWEDISH KRONA 47.6100 43.2700 43.0700
negotiations. “There’s been a lack of 100 THAI BAHT 11.3300 9.6000 9.2000
China has become the cooperation, no response to Source: Malayan Banking Berhad/Bernama
world’s biggest buyer of numerous requests for in-
iron ore, the main ingredi- formation and no informa- KL market summary
ent in steel, as economic tion coming from Beijing.
growth fuels demand for “In fact our Foreign Min-
JULY 10, 2009
commodities in the world’s ister Stephen Smith has been
third-largest economy. reduced to scouring Chinese INDICES CHANGE
FBMEMAS 7197.74 18.19

Global economy ready to roll or still on the rocks?


FBMKLCI 1067.76 2.08
INDUSTRIAL 2372.38 -2.20
CONSUMER PROD 320.91 -0.68
INDUSTRIAL PROD 83.60 -0.27
FRANKFURT: Some hard data And World Trade Organisa- for difficult times and we must reached businesses. CONSTRUCTION 206.00 1.38
is now underpinning prospects tion chief Pascal Lamy said: “The do it very soon.” “It is still unclear how the TRADING/SERVICES 143.41 0.72
for a global economic recovery, worst of the crisis in social terms The European Central Bank monetary stimulus is going to FINANCE 8552.22 -21.60
PROPERTIES 694.78 2.84
but world leaders urge caution is still to come, which means that will invest €60 billion (RM294 be passed on to consumers and
PLANTATION 5260.82 25.37
and at least one says the worst the worst of the crisis in political billion) into low-risk corporate investors,” Deutsche Bank econ- MINING 271.54 -2.03
is still to come for some. terms is still to come.” bonds to boost business finance, omist Gilles Moec told AFP. FBMSHA 7436.12 40.72
So should we perk up and Other examples of seeing and banks have been warned A second key recovery factor FBM2BRD 4709.49 6.32
head for the high street, keep the glass half-empty or half-full they could be sidestepped later if was how governments managed TECHNOLOGY 14.44 0.29
cash ready under the bed, or were provided by two Paris- necessary to ensure more credit stimulus packages which have
prepare for long, hard times? based groups, the International got to the overall economy. prevented the global recession TURNOVER VALUE
Some sample figures released Energy Agency and the Organi- On an industrial level, Pol- from becoming a depression, he 681.788mil RM1.110bil
this week gave reason for hope. sation for Economic Coopera- leit said the end of the credit added.
In the US, the world’s biggest tion and Development. boom “is going to change the “There’s a very fine line for
economy, key jobless claims fell
to a six-month low point, and
The IEA said: “Over the past
two weeks the mood has sud-
production structure of major
economies substantially”.
governments to walk” between
allowing swollen public deficits Prices expected to
a four-week average seen as a denly changed, as many leading The economist explained to drive up long-term lending
better indicator also declined.
In Germany, the biggest
economic and energy indicators
continue to show very weak
that “by generating ever-greater
doses of credit,” the global mon-
rates, and implementing “exit
strategies” too soon and chok-
trade in tight range
European economy and a top readings.” etary system had a “formative ing off growth. SHARE prices on Bursa Malaysia are expected to see a
global exporter, industrial or- But the OECD reported the impact on ... the kind of jobs “If there is a mistake either tight range in trade this week, in the absence of fresh
ders and output soared in May, same day some leading global that were created, on the kind of way it will be bad news,” Moec leads and renewed pessimism over the global economy
catching analysts by surprise. economies showed signs of products people were buying.” said, observing that his bank ex- recovery, said analysts.
And the International Mon- improvement in May, raising He observed: “This is now pected a “moderate” recovery. SJ Securities technical analyst Phua Kwee Hock said
etary Fund raised forecasts for the chances of recovery. subject to a correction.” He also said it was crucial for there was not much news to be expected during the
growth in China, the world’s For many analysts, the key A global recovery is nonethe- government stimulus measures month, to boost the local market.
third-biggest economy, to 7.5% factor in determining how less likely, though most analysts to be replaced eventually by “The market would be in consolidation mode this
this year from 6.5%, as well things will go is a single word: use terms such as fragile, mod- sustained growth from within month,” he said.
as those for the US and Japan, credit. “The credit outlook is the est or subdued to describe it. the economic system. MIMB Investment it its research note said there
number two worldwide. main threat that may yet turn In Eastern Europe, which “We have to make sure were many technical indicators to support a downside
Germany, Japan and the the scant recovery we expect sent a chill westwards when the recovery evolves from a in the short term.
US are all believed to be at the into a worst-case credit night- countries like Hungary pleaded policy-induced recovery to an Low volume and the fact that the market was stuck
bottom of their worst recessions mare,” UniCredit economists for bailout funds last year, “the endogenous recovery,” Moec in a tight trading range during the week basically con-
since the bitter battles of World wrote. risk of nasty surprises has been said. “That will be the main firms the cautious sentiment of traders.
War II. Barclays Capital economist clearly receding during the hurdle for next year.” OSK Research in its assessment said that it main-
That’s the good news. Thorsten Polleit told AFP: last three months,” IHS Global Spanish central bank tains a bearish view towards the near-term market.
But leaders of the Group of “Credit is drying up and it’s very Insight economist Ralf Wiegert governor Fernandez Ordonez “We will likely see the sellers selling more aggres-
Eight agreed that a full eco- unlikely that it starts flowing told AFP. urged everyone to avoid hasty sively. On the upside, continue to look for an immediate
nomic recovery was not waiting again as easily around the globe “Some countries like Poland conclusions on how to foster a resistance level at the 1,070-point level and support at
around the corner, US President as it did a couple of years ago,” look pretty good” now, he said. rebound. 1,057-1,064 points,” it said.
Barack Obama said on Friday. a phenomenon now seen as a Banks are in better shape “There is a Chinese proverb The market was mostly lower for the week ended
“We agreed that full recovery principal cause of the crisis. than after the US investment that says we cannot say that a with the new FBM KLCI making a bearish debut on
is still a way off, that it would Germany’s finance minister giant Lehman Brothers col- man was happy before the last Monday.
be premature to begin wind- warned of a “very serious” lapsed in mid September, owing day of his life. We should prob- On a Friday-to-Friday basis, the FBM KLCI eased 5.53
ing down our stimulus plans,” threat of a credit crunch later to massive aid and loans from ably take the same precautions points to close at 1,067.76 compared 1,072.69 a week
Obama told a post-summit this year and its economy min- governments and central banks, to discuss resolution of the ago. – Bernama
press conference. ister added: “We must prepare but little of the windfall cash has crisis,” Ordonez advised. – AFP