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$A surges on fiscal cliff deal

Written By Unknown on Rabu, 02 Januari 2013 | 13.39

THE Australian dollar has surged to a two-week high on news the US will avoid a "fiscal cliff" of automatic spending cuts and tax hikes.

At 1700 AEDT on Wednesday, the currency was trading at 104.73 US cents, up 0.9 per cent from 103.83 US cents on New Year's Eve on Monday.

The Australian dollar hit a two-week high against the US dollar of 104.94 US cents on Wednesday afternoon (AEDT), after the US House of Representatives passed legislation that will allow the country to avoid the fiscal cliff measures.

Economists had warned the measures would send the world's largest economy into recession.

Under the legislation passed by Congress, tax cuts that came in during President George Bush's term of office will expire for households earning more than $US450,000 ($A435,097), but lower and middle-income Americans will be spared tax hikes.

Meanwhile, a decision on spending cuts will be delayed by two months, setting the stage for fresh battles between Republicans and Democrats over the coming months.

ANZ foreign exchange strategist Andrew Salter said that, with most markets closed due to New Year's Day holidays, a lack of liquidity had helped fuel the Australian dollar's rally.

"There has been very poor liquidity in foreign exchange markets in the Asian session and the moves we have seen are reflecting that," Mr Salter said.

"Nevertheless, the partial resolution on the cliff is a positive."

Mr Salter said markets would now begin to turn their attention to global growth issues, which was likely to benefit the Australian dollar.

Meanwhile, the Australian dollar also rallied against the Japanese yen, hitting its highest level in more than four years.

It rose as high as 91.52 Japanese yen on Wednesday, its highest level since 01 September 2008, shortly before the collapse of Lehman Brothers.


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NSW family charged over police brawl

Seven police officers have been injured during a brawl with a family in Sydney's southwest. Source: AAP

A SYDNEY couple and their four children have been charged with assaulting seven police officers who were allegedly punched and bitten.

Three of the accused are 18-year-old triplets.

Tasers were drawn during a brawl that resulted in three police officers being taken to hospital for treatment.

Police responded to a domestic incident at a Bankstown home, in the city's southwest, about 12.30am (AEDT) on Wednesday.

As they were in the driveway preparing to leave, a family member allegedly punched a probationary constable, giving him a black eye, police said.

The remaining family members allegedly joined the assault on the officer before other officers came to his aid.

A further six officers suffered injuries. These included bruising and concussion.

"Tasers were drawn but not fired," a police source told AAP.

Three of the officers, including the probationary constable, required treatment at Bankstown Hospital. They have since been released.

Police charged the 46-year-old father, a son aged 21 and the triplets - two boys and a girl - and refused them bail.

The charges include affray, assaulting police and resisting police. One of the male triplets was charged with assault occasioning actual bodily harm.

All five are expected to appear at Parramatta Bail Court on Thursday.

The 41-year-old mother was charged with the same offences and issued with a notice to attend Bankstown Local Court on February 13.


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Fiscal cliff fix not enough: Carr

Written By Unknown on Selasa, 01 Januari 2013 | 13.39

Foreign Affairs Minister Bob Carr says the temporary fix to avoid the "fiscal cliff" is not enough. Source: AAP

THE short term agreement to head off the "fiscal cliff" in the United States is not enough, Foreign Affairs Minister Bob Carr says.

The White House and top Republicans have struck a deal to avert huge New Year tax hikes and spending cuts known as the "fiscal cliff" that had threatened to send the US economy into recession.

The pact would raise taxes on the richest Americans - those earning over $US450,000 ($A436,000) a year - but exempt everyone else, and will put off $US109 billion ($A105.63 billion) in budget cuts across the government for two months, top congressional aides said late on Monday (local time).

But Senator Carr said the US must go further to convince the world that it was still a world leader.

"We want a longer term agreement that will see America rein in the debt and deficit that have questioned its ability to provide world leadership," Senator Carr told reporters in Sydney on Tuesday.

"I've said throughout that America is one budget deal away from resolving the issue of American decline."

Treasurer Wayne Swan said there was more work to be done to achieve a deal the rest of the world needed.

"As the IMF have said, anything short of a deep and wide-reaching resolution will not be good enough this time around," he said in a statement on Tuesday.

"We will continue to closely monitor these developments because they have a significant impact on the entire global economy, including Australia and our region."


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World welcomes 2013 in rolling NYE party

Capital cities around the world have ushered in 2013 with spectacular firework displays. Source: AAP

A MILLION people cheered in New York's Times Square as the traditional crystal ball dropped to mark the start of 2013, bringing a rolling global New Year's party that kicked off in Australia to US shores.

An estimated one billion television viewers around the world also watched the Big Apple extravaganza, which climaxed when Mayor Michael Bloomberg, aided by a bevy of Rockettes dancers, sent the huge, glittering ball down at one minute to midnight, sparking kissing and dancing.

"It's something you need to do in your life - it's New York and New Year's Eve," said an excited Juli, 18, visiting from Austria.

Worldwide celebrations got started on a balmy summer's night in Sydney with a $A6.69 million pyrotechnics display curated by pop star Kylie Minogue the highlight.

From there, the endless party shifted to a kaleidoscopic eight-minute jamboree in Hong Kong, with the city's famed Victoria Harbour lit up in spectacular fashion, and fireworks across other Asian cities including, for the first time, Yangon in long-isolated Myanmar (Burma).

As the stroke of midnight moved westwards through time zones, the world's tallest building, Dubai's Burj Khalifa, was the centrepiece of festivities in the huge expatriate and tourist hub.

In Britain, tens of thousands braved rain on the banks of the Thames to see fireworks and the London Eye wheel lit up in changing colours.

"What an amazing end to an incredible year," said London Mayor Boris Johnson, alluding to the Olympic and royal spectaculars of 2012.

Across the Atlantic, the mood was more sombre in Washington, where the White House and congressional leaders took their fiscal cliff wrangle over the budget down to the midnight wire.

New York made up for that, though, with South Korean pop sensation Psy and country star Taylor Swift in the line-up and the Empire State Building blazing in an unusual pulsating light display.

In South America, Rio de Janeiro had a bumper 16-minute 24-tonne display opposite Copacabana Beach.

There was little prospect of such fanfare in Venezuela, though, as President Hugo Chavez's declining health cast a shadow over the start of 2013 and prompted cancellation of major celebrations.

In Russia, President Vladimir Putin used a traditional New Year's address to call for unity following a year of protests against his return to the Kremlin for a third term.

In Rome, Pope Benedict XVI celebrated New Year's Eve vespers in St Peter's Basilica, voicing solidarity with the poor and calling on believers to pause to reflect from time to time despite busy lives.

"We have to know how to stop and think. This way our soul can find healing for the inevitable wounds of everyday life," the Pontiff said.

In Spain, revellers who gathered in Madrid's Puerta del Sol square ahead of midnight - cowed by cold, rain and recession - sought to numb the pain of economic crisis with a glass of wine and plenty of cheer.

In Paris, however, there was less cheer as authorities issued a reminder that all fireworks are officially banned for the night.

Earlier in Asia, in regions devastated by Typhoon Bopha which hit the southern Philippines in early December killing more than 1000 people, many survivors said food, work and permanent shelter topped their priorities.

In Manila, authorities had been bracing for the annual rush of injuries as families celebrated with do-it-yourself firework displays and shot celebratory bullets into the air.

Seoul ushered in 2013 with a ritual ringing of the city's 15th-century bronze bell 33 times, reflecting the ancient practice of marking a new year.

Millions visited temples and shrines in Japan for "ninen-mairi" two-year prayers, gathering at family homes to feast on soba noodles and watch the New Year variety show "Kohaku Uta Gassen" or the Red and White Song Contest.

Fireworks also went up in cities across China. And In Taiwan, hundreds of thousands defied chilly winds to pack the square in front of the Taipei City Hall for a concert featuring Taiwanese pop diva A-Mei and Hong Kong-based singer and actor Aaron Kwok.

In Myanmar, an estimated 50,000 flocked to Yangon's revered golden Shwedagon Pagoda for the city's first public New Year countdown and fireworks display, seen as further evidence of opening up after decades of military rule.

"I came here to have fun and leave disappointment behind," said 27-year-old reveller Sithu.

But in India, rocked by the deadly gang-rape of a young medical student, the armed forces cancelled New Year celebrations while many hotels and bars scaled back parties out of respect for the unnamed victim.


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China manufacturing activity improves

Written By Unknown on Senin, 31 Desember 2012 | 13.39

CHINA'S manufacturing activity surged to a 19-month high in December, British bank HSBC said, adding to signs of recovery in the world's second-largest economy.

The year's final purchasing managers' index (PMI) from the lender hit 51.5 up from 50.5 in November when the figure returned to growth after 12 consecutive months of contraction.

A reading above 50 indicates expansion in the key sector, while one below signals shrinkage.

The December reading released on Monday was also better than a preliminary 50.9 announced earlier in the month and marked the fourth straight month-on-month improvement.

"Such a momentum is likely to be sustained in the coming months when infrastructure construction runs into full speed and property market conditions stabilise," Qu Hongbin, HSBC's chief economist for China, said in the release.

The index, compiled by information services provider Markit and released by HSBC, tracks manufacturing activity and is a closely watched barometer of the health of the economy.

Output at factories expanded for the second straight month in December at the fastest pace in 21 months, while total new orders rose at the fastest clip since January of 2011, HSBC said.

China's strengthening manufacturing sector, and improvements in areas including broader industrial production and retail sales, have spurred optimism that the country's economic slowdown has bottomed out.

Economic growth hit a more than three-year low of 7.4 per cent in the third quarter to September, though data so far for the fourth quarter has led analysts to expect a pick-up.

Qu said that prevailing conditions and continued government policy support should see the economy grow about 8.6 per cent in 2013.

The Chinese government has forecast 2012 economic growth to come in at 7.5 per cent, considerably lower than the 9.3 per cent recorded in 2011 and 10.4 per cent racked up in 2010.

Ren Xianfang, economist with IHS Global Insight in Beijing, said the PMI data confirm the "rebound trajectory" of China's economy.

"Having escaped the hard-landing curse in 2012, the Chinese economy looks to have a better chance delivering a slightly stronger growth in 2013," she told AFP in an email.

She said infrastructure and housing construction would bolster the economy in 2013, "while the external sector's contribution to growth will likely remain minimal or negative".

Indeed, weakness in the global economy -- where Europe is still struggling with its debt crisis and concerns remain over the strength of recovery in the United States -- is seen as a potential hurdle for China's recovery.

Exports for November rose just 2.9 per cent year-on-year to $179.4 billion, much lower than market expectations.

New export orders as reflected in the December PMI fell slightly, according to HSBC.

"The external environment remains challenging as we enter 2013," according to a separate analysis by the bank.

"This is reflected not only by the drop in the new export orders readings within the HSBC PMI, but also by fast fading hopes of an effective resolution to the US's fiscal cliff crisis," it said.

"Moreover, European economic fundamentals remain weak."

Political leaders in the US are working against a January 1 deadline to avoid the "fiscal cliff" -- a punishing package of spending cuts and tax hikes due to take effect on Tuesday that could derail the country's recovery, with knock-on effects globally.


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China manufacturing activity improves

CHINA'S manufacturing activity surged to a 19-month high in December, British bank HSBC said, adding to signs of recovery in the world's second-largest economy.

The year's final purchasing managers' index (PMI) from the lender hit 51.5 up from 50.5 in November when the figure returned to growth after 12 consecutive months of contraction.

A reading above 50 indicates expansion in the key sector, while one below signals shrinkage.

The December reading released on Monday was also better than a preliminary 50.9 announced earlier in the month and marked the fourth straight month-on-month improvement.

"Such a momentum is likely to be sustained in the coming months when infrastructure construction runs into full speed and property market conditions stabilise," Qu Hongbin, HSBC's chief economist for China, said in the release.

The index, compiled by information services provider Markit and released by HSBC, tracks manufacturing activity and is a closely watched barometer of the health of the economy.

Output at factories expanded for the second straight month in December at the fastest pace in 21 months, while total new orders rose at the fastest clip since January of 2011, HSBC said.

China's strengthening manufacturing sector, and improvements in areas including broader industrial production and retail sales, have spurred optimism that the country's economic slowdown has bottomed out.

Economic growth hit a more than three-year low of 7.4 per cent in the third quarter to September, though data so far for the fourth quarter has led analysts to expect a pick-up.

Qu said that prevailing conditions and continued government policy support should see the economy grow about 8.6 per cent in 2013.

The Chinese government has forecast 2012 economic growth to come in at 7.5 per cent, considerably lower than the 9.3 per cent recorded in 2011 and 10.4 per cent racked up in 2010.

Ren Xianfang, economist with IHS Global Insight in Beijing, said the PMI data confirm the "rebound trajectory" of China's economy.

"Having escaped the hard-landing curse in 2012, the Chinese economy looks to have a better chance delivering a slightly stronger growth in 2013," she told AFP in an email.

She said infrastructure and housing construction would bolster the economy in 2013, "while the external sector's contribution to growth will likely remain minimal or negative".

Indeed, weakness in the global economy -- where Europe is still struggling with its debt crisis and concerns remain over the strength of recovery in the United States -- is seen as a potential hurdle for China's recovery.

Exports for November rose just 2.9 per cent year-on-year to $179.4 billion, much lower than market expectations.

New export orders as reflected in the December PMI fell slightly, according to HSBC.

"The external environment remains challenging as we enter 2013," according to a separate analysis by the bank.

"This is reflected not only by the drop in the new export orders readings within the HSBC PMI, but also by fast fading hopes of an effective resolution to the US's fiscal cliff crisis," it said.

"Moreover, European economic fundamentals remain weak."

Political leaders in the US are working against a January 1 deadline to avoid the "fiscal cliff" -- a punishing package of spending cuts and tax hikes due to take effect on Tuesday that could derail the country's recovery, with knock-on effects globally.


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Aust dollar closes higher

THE Australian dollar has closed marginally higher ahead of the New Year's Day public holiday and amid uncertainty about a successful US budget deal.

At 1700 AEDT on Monday, the local unit was trading at 103.83 US cents, up from Friday's local close of 103.74 US.

During the morning, the currency moved between a low of 103.68 US cents and 104.06 US cents.

The Australian dollar opened the local trading day at 0700 AEDT at 103.66 US cents, having lost ground during weekend offshore trading, but ground up towards 104 US cents during the morning.

The move was not sustained however, as the currency gave up some ground in the afternoon to stay within its post-Christmas range between 103.3 US cents and 104 US cents in a quiet day's trade.

Rochford Capital consultant Richard Breen said little could be read into the day's move, given the lack of activity in the market at this time of the year.

Moreover, Mr Breen said those investors working during the festive season were inclined to stay on the sidelines ahead of any news regarding the US fiscal cliff.

"Until something happens there I don't think you will see many people taking large positions beforehand," Mr Breen said.

"As soon as we hear something from the US, that will really determine near-term direction.

"It's a very quiet and illiquid market today."

Negotiations between US President Barack Obama and legislators in the US Congress over a looming budget deadline look set to go down to the wire.

Talks centred on the best way to avoid a series of tax hikes and spending cuts, which were tipped to push the US economy back into recession, coming into effect in early 2013.

The measures, dubbed the fiscal cliff, would also have a significant knock-on effect on the world economy.


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Aust dollar closes higher

THE Australian dollar has closed marginally higher ahead of the New Year's Day public holiday and amid uncertainty about a successful US budget deal.

At 1700 AEDT on Monday, the local unit was trading at 103.83 US cents, up from Friday's local close of 103.74 US.

During the morning, the currency moved between a low of 103.68 US cents and 104.06 US cents.

The Australian dollar opened the local trading day at 0700 AEDT at 103.66 US cents, having lost ground during weekend offshore trading, but ground up towards 104 US cents during the morning.

The move was not sustained however, as the currency gave up some ground in the afternoon to stay within its post-Christmas range between 103.3 US cents and 104 US cents in a quiet day's trade.

Rochford Capital consultant Richard Breen said little could be read into the day's move, given the lack of activity in the market at this time of the year.

Moreover, Mr Breen said those investors working during the festive season were inclined to stay on the sidelines ahead of any news regarding the US fiscal cliff.

"Until something happens there I don't think you will see many people taking large positions beforehand," Mr Breen said.

"As soon as we hear something from the US, that will really determine near-term direction.

"It's a very quiet and illiquid market today."

Negotiations between US President Barack Obama and legislators in the US Congress over a looming budget deadline look set to go down to the wire.

Talks centred on the best way to avoid a series of tax hikes and spending cuts, which were tipped to push the US economy back into recession, coming into effect in early 2013.

The measures, dubbed the fiscal cliff, would also have a significant knock-on effect on the world economy.


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More toxic canisters wash up in Qld

Written By Unknown on Minggu, 30 Desember 2012 | 13.39

MORE canisters containing a potentially lethal chemical have washed up on Queensland beaches.

Three canisters containing aluminium phosphide, which authorities warn can be fatal if inhaled, have been discovered on beaches in central Queensland this month.

A canister was located on Lady Elliot Island on December 10, a second canister was discovered at Rules Beach, while a third was reported to police at Deep Creek south of Gladstone on Sunday morning.

Their discovery comes after four canisters were washed up along a 200-kilometre stretch of coastline from Ayr to Ingham in the months since February.

Police are re-issuing their warning for beachgoers to avoid the canisters if they spot them and immediately call triple zero.

The deadly chemical they contain is used to fumigate ships, and it's believed the canisters came from a passing vessel.

"For safety's sake, should anyone find one, I urge them to immediately report it by calling triple zero," Gladstone District Officer Glenn Kachel said in a statement.

"Do not inspect the contents, open the canister or transport it."

Aluminium phosphide generates phosphine gas when it comes into contact with air or moisture and can also self-ignite in certain conditions.


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Australia ready to welcome in 2013

A GLITTERING night planned by pop princess Kylie Minogue will lead New Year's Eve celebrations throughout Australia.

And the famous Sydney fireworks that are shown around the world are promising not to disappoint.

As creative ambassador for Sydney's event, Minogue developed the event's theme "embrace" and chose its colour scheme and soundtrack.

"I love the concept of embrace - it can mean so many different things, and I'm looking forward to embracing new possibilities for the next year," Minogue told reporters.

She will be honoured with a one-of-a-kind sparkling musical-note firework.

The semiquaver will be one of 100,000 individual pyrotechnic creations this year, including brand-new koala, octopus and hand images up in lights.

"What we aim to do (each year) is to make it the best one - for people to go away and say 'that was the best display I've ever seen'," fireworks director Fortunato Foti said.

For those cities that don't have Kylie, there will still be celebrations with families, friends, champagne and fireworks.

Most capital cities are hosting two lots of fireworks - one around 9pm for families and another at midnight.

Melbourne's skyline will be lit up like never before as New Year's Eve fireworks are launched from building tops across the city.

The City of Melbourne is expecting more than half a million people to flock to the city to welcome in 2013, with three official live sites featuring entertainment at Flagstaff Gardens, Treasury Gardens and Docklands.

At midnight, fireworks will be launched from 22 sites across the city - 18 from buildings.

"So the message is, if you can see the city skyline, then you will see the fireworks on New Year's Eve," Lord Mayor Robert Doyle said.

Fireworks will light up Brisbane's CBD with Southbank Parklands the place to be.

On the Gold Coast, organisers of the Surfers Paradise New Year's Eve celebrations are hoping a superhero theme will bring a more family-friendly crowd.

Children are being invited to dress up as their favourite superhero before attending one of the biggest fireworks shows in the state, with more than 10,000 fireworks to be released from Surfers Paradise beach.

Adelaide is also going for family-friendly events with thousands expected to gather at the venues - Elder Park in the city and at seaside Glenelg.

Organisers will keep drinkers separate from other partygoers at Elder Park.

A heatwave in Perth is likely to continue with 40C forecast for New Year's Eve before dropping to 36C on New Year's Day.

However, that's not expected to keep people away from the festivities.

Events include the City of Perth's free outdoor New Year's Eve Northbridge party.

And Hobart will get a chance to show off its newfound hipness to thousands in town for the Sydney to Hobart yacht race and Tasmania's biggest event, The Taste Festival near Salamanca Place.

Proving Tasmania is the world's new avant-garde capital, American rockers The Flaming Lips will give up their annual Freakout New Year's Eve gig in the US to bring in 2013 at The Falls Festival east of Hobart.

And to prove it's not too cool, there will be fireworks.


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