Australia plans to join the Trans Pacific Partnership (TPP), a free trade agreement between Brunei Darussalam, New Zealand, Singapore, Chile and the United States. Japan, Vietnam and Peru have also expressed interest in the agreement.

Australian Prime Minister, Kevin Rudd, unveiled a $300 million plan that is expected to create thousands of jobs and improve infrastructure. The money will be split between councils and shires and will have to be spent on social and cultural infrastructure during the next following year. The plan aims to create jobs, support local companies and avert a recession.

Westpac and the St. George Bank have sealed their merger and now begin plans for a three year strategy to cut as much as $2.7 billion in operation costs. Westpac will official take control of St. George on Dec. 1 and expects savings equivalent to a quarter of St. George's cost base to start flowing within the first few months.

New Zealand's unemployed rate increased to 4.2% from 3.9% in the last three months. This is the highest unemployed rate the country has seen in five years. Unemployment will lower consumer spending and worsen the country's GDP. New Zealand's economy has considerably contracted during the last few months and Treasury forecasts that full-year growth will be slower than 0.6%.

When Australia begins emissions trading in 2010, households' electricity and gas bills will rise about $7 a week. Australia will begin using more renewable energy and wood products. Although GDP will continue to grow, aluminum and petroleum refineries will suffer.

Australia's federal Treasurer Wayne Swan has approved the merger of St. George and Westpac banks. Strict conditions will be imposed on the merger, including maintaining all Westpac and St. George retail banking brands.

Wind Turbine maker Windflow has reported that it has raised $8.22 million from New Zealand investors. The company raised about $2 million less than projected initially. However, the company has done considerably well in the midst of global economic instability.

The Council of Australian Governments (COAG) agreed that the federal government will be responsible for regulating mortgages, mortgage broking, margin lending, payday lending, and financial counseling services. In addition, the governments plan to develop a national energy efficiency strategy by the end of 2008.

The New Zealand Superannuation Fund posted a -4.92% return on investment for the first half of 2008. The fund lost $880 million after tax and may drop the level of investment it makes in New Zealand shares.

Despite the instability of the global equity markets, Australia's Future Fund will probably not reduce its asset allocation in shares. The Future Fund held assets of over $64 billion as of June 30 this year. It was originally set up in 2006 to pay the previously uncovered liabilities of public service superannuation.