China says bank lending shrank in February

CHINESE banks cut back lending in February from January, official data showed, due to a tightening of liquidity and fewer working days last month because of the Lunar New Year holiday.

Domestic banks extended 620 billion yuan ($A97.77 billion) worth of new loans in February, down from 1.07 trillion yuan in January, the central bank said in a statement on Sunday.

The figure was below market expectations for 700 billion yuan, according to a median forecast of 13 economists polled by Dow Jones Newswires.

Economists said the figure was distorted by the Lunar New Year which fell in February this year, and was also a sign of the central bank's efforts to restrain credit growth from January, when new yuan loans more than doubled from December.

"We believe this reflected a combination of Chinese New Year distortions and the PBOC's (People's Bank of China's) intention to tighten liquidity from a very loose level in January," Goldman Sachs said in a research note on Monday.

"The PBOC's view on the appropriate level of liquidity supply is probably better represented by the combined January and February data," the investment bank said, adding credit growth in March may rebound from February.

Lu Ting, a Hong Kong-based economist at Bank of America Merrill Lynch, said China's monetary policy stance may be shifting from relatively loose to "neutral".

"The current economic recovery may not be solid enough, and inflation is surely not a big threat now to force for an imminent tightening," he said in a research report on Sunday.

The government on Saturday announced a series of economic indicators for February, including slowing industrial production growth and retail sales increases, providing further signs that a budding recovery may be fragile.

But China's inflation hit a 10-month high of 3.2 per cent in February, up from January's 2.0 per cent, data also showed, as holiday season spending and rapid credit growth accelerated price rises.

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Why you should stop using social media

STOP and smell the roses once in a while - not constantly take fancy pictures of them and plaster the results all over the internet.

That is the rather surprising message from a mobile phone sim card company that says Australians are missing out on "the moment" because they're so busy constantly sharing pictures and videos online.

At a restaurant? Point, click, share that roast chicken, baby!

Wedding? Oooh, Instagram the bride.

New baby? Facebook that cutie.

That's what most of us do according to sim card provider Amaysim, which says we need to stop social networking every now and then - and just enjoy life as it happens.

The company surveyed 1000 people about their social media habits and found 56 per cent had forgotten how to "live in the now" because they're always Facebooking, Instagramming or tweeting.

The answer? Well, rather incongruously for a company that makes money out of mobile data, it says we need to turn off our phones and tablets entirely.

"While Amaysim is in the business of keeping people in touch, we also reckon you sometimes need to turn off and enjoy life as it happens," its social media manager Ged Mansour said.

Amaysim's survey also found that one in three Australians thought mates shared too many pictures and videos online and the culprits should be de-friended or unfollowed.

But 38 per cent of all respondents thought that sharing plenty of videos and pictures online was fine.

Australia's love affair with social networking is being driven in a big way by mobile devices.

Figures released by the Australian Communications and Media Authority (ACMA) late last year showed that smartphone ownership increased by 104 per cent in 2012.

More than half of the nation's adult population now own a smartphone.

There are about 11.36 million Facebook users in Australia and 9.67 million YouTube users, according to the ACMA figures.

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Budget will pay for Gonski reforms: Swan

FEDERAL Treasurer Wayne Swan will outline the savings in May's budget to pay for the government's school reform plan.

Mr Swan says investment in education is a priority for federal Labor and Australia.

"As a country, we're kidding ourselves if we think we can stroll complacently into the Asian Century assuming we'll enjoy economic wealth without developing the skills we need to harness its opportunities," Mr Swan said in his weekly economic note on Sunday.

The treasurer said the government's proposed Gonski school reforms were central to improving skills and education.

"We will put in place the savings to ensure it's a key part of this year's budget," he said.

The treasurer will hand down his sixth budget on May 14.

The Gonski review proposed an extra $6.5 billion spending in total by the commonwealth, states and territories for schools.

Mr Swan is yet to outline the spending cuts or areas where more money will be raised to pay for Gonski and the National Disability Insurance Scheme.

He also lauded the latest economic growth data, which he said showed why Australia had one of the lowest jobless rates in the developed world.

Australia's economy grew by 0.6 per cent in the December quarter for an annual rate of 3.1 per cent, according to official data released last week.

Mr Swan said Australia's job market remained one of the most resilient among developed countries despite local firms becoming circumspect in employing more workers.

"We know that ongoing global uncertainty, the sustained high dollar and changing consumer patterns have made some businesses more cautious in their hiring," he said.

The eurozone's unemployment rate rose to a record 11.9 per cent in January, while the US rate was 7.7 per cent last month.

Local jobs data will be released on Thursday.

The market forecast is for 10,000 jobs to be added in February while the unemployment rate is tipped to rise 0.1 percentage points to 5.5 per cent.

Mr Swan again attacked the opposition for its plans to roll back income tax cuts linked to the carbon tax if elected in September.

"Under the Liberals' changes, seven million Australians will have their taxes hiked up," he said in a statement.

"For a mum and dad earning $65,000 each, the Liberals' tax hike would mean their family would pay $600 more a year in income tax alone, while Tony Abbott himself would only pay an extra $3."

The treasurer said the government would introduce legislation in the next fortnight to provide more funding for the independent parliamentary budget office to cost the policies of all political parties.

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New Mexico state tourism minister killed

THE tourism minister in Mexico's western Jalisco state has been shot dead, officials say.

State officials say Jose de Jesus Gallegos Alvarez was shot on Saturday while driving in Zapopan outside Guadalajara, which is Mexico's second-largest city.

State Government General Secretary Arturo Zamora says a preliminary investigation indicates the attack may to have to do with Gallegos' private business dealings and not his recent appointment as Jalisco's tourism secretary.

Jalisco attracts many tourists as the birthplace of popular Mexican traditions, including mariachi music and tequila production.

Local political and police officials are often targets of assassinations in Mexico, but rarely tourism officials.

President Enrique Pena Nieto has condemned the attack in his Twitter account and says he has ordered a thorough investigation.

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WA leaders cast their votes in state poll

THE Liberal and Labor leaders have cast their votes in the West Australian election, with Premier Colin Barnett playing down polling that points to a landslide win for his Liberal party.

A Newspoll released on Friday night showed the incumbents would win 59.5 per cent of the vote on a two-party preferred basis.

Mr Barnett maintained that at least a dozen seats hung in the balance.

"I can honestly tell you I don't know who's going to win those seats," he told reporters at a polling booth in Cottesloe, in his affluent western suburbs electorate, where he cast his vote.

"There's going to be a very close contest.

"I hope I can continue and I hope we get the chance to finish many of the projects around the state, around the city, and carry on."

Labor leader Mark McGowan was first off the mark in casting his vote in the working-class satellite suburb of Rockingham, south of Perth.

Mr McGowan, who had also kicked off the party's official election campaign 10 days ahead of his opponent, arrived in his trademark red campaign bus.

He remained optimistic despite the polling, saying he'd wait and see what happened.

He said he would spend the day visiting polling booths around the city.

Deputy federal opposition leader Julie Bishop was full of praise for Mr Barnett, saying he would continue to stand up for the state's interests.

Ms Bishop said Mr McGowan had tried to distance himself from federal Labor, but that was futile because there was a deep distrust of the Gillard government that the state party couldn't shake.

Polls close at 6pm WST.

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N Korea sanctions not the answer: China

SANCTIONS against North Korea over its nuclear program are not "the fundamental way" to resolve the crisis, China's foreign minister says.

China is the North's sole major ally and by far its biggest trading partner, including being its primary energy supplier.

It voted on Thursday for the UN resolution that stiffened restrictions on North Korea's financial dealings, notably its suspect "bulk cash" transfers, and blocked imports of some luxury goods, following Pyongyang's nuclear test last month.

"The DPRK conducted a third nuclear test and tensions on the Korean peninsula once again heightened," Foreign Minister Yang Jiechi told reporters in Beijing on Saturday, using the North's official name.

"This is not something we want to see."

But he added: "We always believe that sanctions are not the end of security council actions, nor are sanctions the fundamental way to resolve the relevant issues."

Reiterating China's longstanding position, he called for dialogue and negotiations, including a resumption of the six-party talks process, which has been moribund since 2009.

"We call on all relevant parties to bear in mind the larger interest, stay calm, exercise restraint and refrain from taking any move that may further worsen the situation."

Since the UN resolution was passed the North has responded with fresh threats of nuclear war, vowing to scrap peace pacts with South Korea as its rhetoric reached a frenzied pitch.

In Chinese strategic thinking, North Korea is a "buffer zone" that prevents the 28,500 US troops stationed in South Korea encroaching on its own border.

But analysts say that Pyongyang's actions mean the relationship risks becoming an irritant for Beijing.

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Tinkler lawyers try to stop court case

NATHAN Tinkler's lawyers have made a last ditch attempt to stop the liquidators of his Mulsanne Resources examining him and fellow directors in court.

The former billionaire was due to appear in the NSW Supreme Court on Friday morning to be examined over Mulsanne's failure to pay $28.4 million for buying a major stake in listed coal explorer Blackwood Corporation.

After the matter was adjourned to 1400 AEDT for talks between the parties, Mr Tinkler's barrister Alec Leopold SC told the court that he would be seeking a stay of the proceedings.

He said the same solicitor had acted on behalf of Mulsanne's liquidator Ferrier Hodgson, Blackwood and a major shareholder.

Mr Leopold also said the liquidator had met with Blackwood and the major shareholder.

"The liquidator is not acting in the interest of the creditors as a whole," he said.

The liquidator's barrister, Robert Newlinds SC, said the application was nothing more than a stunt.

He said there was nothing improper about the liquidator meeting with Blackwood or sharing the same solicitor as the coal company was by far the biggest creditor and the others were small claims from other companies owned by Mr Tinkler.

The stay proceedings have been adjourned until Monday, with the public examination of Mr Tinkler and other Mulsanne directors currently listed for Thursday.

Blackwood sued Mulsanne Resources after Mr Tinkler's company agreed last July to buy a 33.85 per cent stake in it for $28.4 million.

However Mulsanne then failed to follow through with the deal.

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Rebel MP promises to back Vic government

INDEPENDENT MP Geoff Shaw has promised to support the Victorian coalition government but won't return to the Liberals.

The rebel MP called Premier Denis Napthine on Thursday night to deliver the news he would support the government on key issues, including the budget and matters of confidence.

It means the coalition can rely on his vote to get laws through parliament.

Dr Napthine also announced former premier Ted Baillieu's chief of staff Tony Nutt had quit the government staff.

He also reassured Mr Shaw, the member for Frankston, that superannuation entitlements were being considered as part of a review of politicians' pay.

"There was no agreement, no undertakings made with Mr Shaw, nor were there any demands made by Mr Shaw of me and my government," he said.

"I believe we have a workable government. I believe we have the opportunity to provide good, stable government to the people of Victoria."

Dr Napthine said Mr Shaw had not won more power and the Frankston electorate would not be favoured over other areas of the state.

"Geoff Shaw has no more influence," he said.

Mr Shaw had told him he wanted to best represent the people of Frankston and pursue their concerns.

Dr Napthine said Mr Shaw did not ask for any specific investments in his electorate.

"All parts of the state will be given special treatment," he said.

Mr Shaw said he was confident Dr Napthine would be a strong leader for Victoria.

"My resignation from the parliamentary Liberal Party was based on my belief that I can best serve Frankston as an independent member," he said in a statement.

"I strongly believe in the values of the Liberal Party and that a return of Labor would be disastrous for Victoria."

Dr Napthine said he did not need a written document formalising the agreement with Mr Shaw.

He did not tell the deputy premier, Nationals leader Peter Ryan, that Mr Shaw had guaranteed supply and confidence until he revealed the news to other senior government MPs on Friday.

Earlier on Friday, Mr Ryan went on Melbourne radio and said Dr Napthine had not dealt with Mr Shaw.

On the question of his cabinet, Dr Napthine refused to confirm Kim Wells would remain treasurer.

He said he would sort out his ministerial team later.

Dr Napthine said he had confidence in Liberal state director Damien Mantach but the party employed him and was responsible for negotiations concerning his future.

Mr Mantach reportedly authorised $22,500 in payments to an adviser after the man had quit Mr Ryan's office in disgrace over his role in a plot to undermine former police chief commissioner Simon Overland.

Mr Nutt released a statement on Friday saying he had resigned because he did not want to distract from the new government's work.

Mr Baillieu referred "secret tapes" involving Mr Nutt to the corruption watchdog before quitting as premier.

"Over more than 30 years as a staff member, I have worked with many parliamentarians and political leaders, and Ted Baillieu is one of the finest men it has been my privilege to know," Mr Nutt said.

Mr Nutt said he had not done anything wrong.

"I am confident that my actions were proper and appropriate and have impeccable legal advice to that effect."

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Telstra raises 1 bln euros in bond issue

Telecommunications giant Telstra is raising $A1.28 billion by issuing new long-term bonds. Source: AAP

TELSTRA has raised more than $1 billion worth of euro-denominated bonds, ahead of the government's upcoming auction of mobile spectrum space.

Telstra spokesman Scott Whiffin said the one billion euro ($A1.28 billion) issue of 10-year euro-denominated bonds was part of the company's annual borrowing program.

"The proceeds will be used for general corporate purposes, which include a range of different business needs and may include funding spectrum," Mr Whiffin said in an emailed statement on Thursday.

"We may predominantly finance spectrum through debt in the first instance."

The federal government was hoping to raise about $3 billion from the spectrum auction, due to be held in April.

The auction comes partly from the reallocation of spectrum used for the analogue television signal that is due to be switched off after December 31, 2013.

Telstra, as well as competitors Optus and Vodafone, are all expected to bid for the spectrum allocation to boost mobile coverage and expand their high-speed 4G offerings.

Telstra would "predominantly finance spectrum through debt in the first instance", the telco's chief financial officer Andy Penn said during the company's first half results announcement in January.

"Hence we will have an active debt program in the second half of the year," Mr Penn said at the time.

US-based telco AT&T has also tapped the European bond market, selling one billion euros of 20-year bonds on Tuesday.

At 1500 AEDT on Thursday, Telstra was down three cents at $4.54.

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Man found dead in WA prison

AUTHORITIES are investigating the death of a 20-year-old Aboriginal man at Western Australia's Casuarina Prison.

WA's Department of Corrective Services confirmed the man had been found at around 3.50pm (WST) on Wednesday afternoon.

Efforts to revive him were unsuccessful.

A coronial inquiry has been launched into the death in custody, and WA police are conducting an investigation.

The man's next of kin have been notified.

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