Australia Lowers Commodities Exports Target

123jump.com Staff
15 Dec, 2008
New York City

Stocks in Sydney rose on the expectations that U.S. auto industry bailout will spur exports of raw materials. However, Australian government agency cut its forecast of commodities exports forecast by 10% to A$192 billion. One Australian dollar fetched 66.48 U.S. cents.

[R]3:00AM New York, 7:00PM Sydney - Australia slashed commodity export forecast by 10% to A$192 billion.[/R]

Australian market averages rose on optimism that a U.S. auto industry rescue plan will help to stimulate raw materials demand.

In Sydney trading ASX 200 index rose 2.3% or 81 to 3,591.40.

Of the ASX 200 index stocks, 152 rose, 38 declined, and 10 were unchanged. Aquila Residential Ltd. led advancers in the index shares with a rise of 38.4% followed Macquarie Office increasing 23.8%.

Australia Cuts Commodity Exports Forecast by 10%

Australian Bureau of Agricultural and Resource Economics forecasted overseas sales will fall 10% to A$192 billion in the year ending June 30, 2009 from the earlier projection of A$214 billion.

Exports of minerals and energy are estimated to fall to A$159 billion from A$180 billion projected in September.

Sales from energy commodities are estimated at A$80.8 billion and sales of metals and minerals are predicted to be A$78.3 billion.

Earnings from farm exports are forecast at A$29.4 billion in fiscal 2009 from A$30 billion September forecast and 7 percent point higher than a year earlier.

U.S. Considers Tapping TARP Funds for Automakers

The U.S. administration is considering tapping from the $700 billion fund in order to rescue the three troubled carmakers- General Motors, Chrysler LLC and Ford Motor Co.

The Senate Republicans last week blocked the passage of a $14 billion bill that was negotiated between White House and Congress Democrats.

Spokesman for U.S. President George Bush Tony Fratto said administration officials were gathering financial information from the automakers and assessing data such as their cash position.

“We''ll be focused on trying to get the policy right while considering the best interests of the taxpayer and our economy, and we''ll take the time we have available to do that right.”

Aussie Dollar Rises

One Australian dollar fetched 66.48 U.S. cents.

Gainers & Losers

Aquila Resources Ltd. led advancers in the ASX 200 index shares with a rise of 38.4% followed by increases in Macquarie Office of 23.8%, in Great Southern Ltd. of 22.5%, in Sundance Resource 18.1%, and Arrow Ltd. of 15%.

Tishman Speyer led decliners in the ASX 200 index shares with a drop of 20.7% followed by losses in Alesco Corp. Ltd. of 12.5%, in Telstra Corp. of 11.6%, and Goodman Corp. of 6.3%, and Envestra Ltd. of 5.8%.

Telstra Corp. dropped after the company was excluded from the bidding process for the A$10 billion broadband expansion program.

Telstra Excluded From Broadband Network Plan

The Australian News reported today that Telstra was excluded from the bidding process for the A$10 billion broadband network because its proposal didn’t include plans to involve small and medium sized enterprises.

Telstra communications minister Stephen Conroy said, “There was nothing to stop Telstra from submitting a complete proposal and competing vigorously with other bidders. Instead, the Telstra board failed to comply with the mandatory requirements of the requested for proposals.”