AAP

The cattle industry should shift gradually to exporting carcasses and meat to Indonesia to avoid brutal animal slaughter practices in that country, West Australian Premier Colin Barnett says.

The threat of higher interest rates is based on a forecast that requires the economy to post the strongest quarter of economic growth for 28 years.

Australian manufacturing activity contracted in May for the third consecutive month, dragged down by weak domestic demand, cheap imports and the strong Australian dollar, a survey shows.

West Australia Premier Colin Barnett says he has made it very clear to Indian power giant Lanco Infratech it cannot renege on a coal deal affecting 10 per cent of the state's electricity supply.

The company building the national broadband network has chosen Ericsson to supply wireless broadband services in remote areas for the national broadband network.

BHP Billiton says it will gain a $US580 million ($A543.33 million) tax credit, after it won a long-running dispute with the Australian tax commissioner in the High Court.

Federal Treasurer Wayne Swan has blamed the summer's floods and cyclones for the biggest quarterly contraction in the economy for 20 years.

The cattle industry and rural communities dependent on live exports have urged caution, as the federal government faces pressure to impose bans on Indonesia.

Resources giant Woodside Petroleum has agreed to a $170,000 settlement payout with a former executive over a sexual discrimination claim.

Shares were flat at the open this morning, despite strong leads from trading offshore overnight.

The acquisition of Australia's Equinox Minerals by Canada's Barrick Gold has cleared a hurdle with authorities in Zambia, where its major copper projects are located.

US stocks shook off weak US economic reports on Tuesday, amid rising hopes that Greece will reach a deal to keep a debt default at bay.

The Australian dollar was lower against most major currencies this morning, weighed down by weak trade figures.

Households gain in carbon plan – The Fin; Worst result in at least 20 years – The Fin; Employer group pushes IR overhaul – The Aus; Oswal forces Yara to pull explosives plant – The West; Woodside in $170,000 payout – The West

Hills Holdings has forecast annual earnings to fall by up to 40 per cent, as it closes it Orrcon Steel pipe facility in NSW following "unsustainable" losses.

A financial firm bought by Lehman Brothers Australia generated over $60 million in profits by misleadingly selling high-risk investment products to local governments, a court has been told.

Opposition Leader Tony Abbott has potentially headed off the resignation of the Speaker and a political crisis, after a dramatic turn in federal parliament.

Shares in beef producer Australian Agricultural Company held steady on Tuesday as the federal government suspended live exports of cattle to several Indonesian abattoirs.

Energy and materials stocks lifted the Australian share market amid investor optimism about the euro debt crisis on expectations that Germany will provide aid to heavily indebted Greece.

Minerals explorer and developer Ivanhoe Australia has hosed down speculation it is contemplating a takeover bid for Perth-based Exco Resources.

Australia is suffering from a housing affordability crisis because of rising interest rates and uncertainty surrounding the Gillard government's planned carbon tax, the opposition says.

New laws to sell cigarettes in plain packets are set to pass parliament after the coalition swung behind the Gillard government move.

Households would receive an increasingly large share of the revenue raised from Labor's carbon tax at the same time as industry assistance dropped under a plan proposed by climate adviser Ross Garnaut.

The federal coalition has offered bipartisan support for a review of the live cattle export industry, but stopped short of advocating a complete ban.

Weak trade data will likely subtract from Australia's economic growth and may concern the central bank, economists say.

The West Australian government has imposed a winter sprinkler ban for Perth, Mandurah and other parts of state's southwest to boost water saving, with dams at less than 25 per cent capacity.

The head of Australia's second-largest telecommunications company says the proposed merger of Austar and Foxtel may raise competition concerns regarding content.

Westpac Banking Corporation plans to open two more branches in China after receiving final regulatory approval to open a branch in Beijing.

The Australian securities market has opened firmer despite an absence of significant leads from offshore trading overnight, with public holidays in the US and UK.

European shares closed lower on Monday and are on track to end the month down as concerns over the euro zone debt situation weighed, with volumes thin as both U.S. and UK markets were closed for a public holiday.

The Australian dollar was almost flat after a quiet night of trade ahead of key economic data releases later in the week.

China stokes mining boom – The Aus; Industries to receive 46pc of revenue – The Fin; Palmer calls on China to fund $2.7b Pilbara project – The West; Chevron close to domestic gas deal – The Aus; Margaret River won't be mined: Barnett – The Fin