Australian GDP Up 0.4%; Indian Students Attacks

123jump.com Staff
03 Jun, 2009
New York City

Australian stocks and dollar are likely to fall after weak global markets. Devine Ltd, the home builder lowered its earnings outlook. Students from India are the target of racially motivated crimes in Australia. The government and police have still to explain the cause of the recent violence surge.

[R]8:30 AM Sydney, 6:30 PM New York – Australian stocks and dollar are likely to fall after weak global markets. Devine Ltd, the home builder lowered its earnings outlook. Students from India continue to be the target of racially motivated crimes in Australia. The government and police have still to explain the cause of the recent surge in violence in Melbourne and Sydney.[/R]

Australian stocks are expected to trade lower as world markets falter and commodities prices decline.

World markets and the U.S. edged lower after investors worried that stocks may have advanced too fast. The world markets in the last ten weeks have erased the losses of the year and are now in the positive territory for the year. Foreign investors continue to increase their investments in Russia, China and India lifting these markets between 70% and 100%.

Fed Chairman Bernanke cautioned lawmakers in his testimony that American people, administration and the Congress have to make hard choices to maintain fiscal stability and keep inflation under check. He also disagreed with the comments from German Chancellor Angela Merkel that the Fed has mad unwise choices in extending large bailouts to banks and other industries.

Australian dollar declined to 80 U.S. cents in New York trading after commodities decline and investors shy away from risks.

The Australian Bureau of Statistics reported that first quarter GP increased at 0.4% from the last quarter of 2008 when the economy declined 0.6%. Recession is defined with two quarterly declines in a row. The news on the GDP lifted the Aussie to 82.15 U.S. cents.

The Reserve Bank of Australia left its key lending rate unchanged ahead of the GDP report and has lowered the rate by 425 basis points over the last three quarters to 3.0%.

Australia continues to be the focus of international press after a group of Indian students were attacked in the last week of May on apparent racial motives. The Indian students held a rally last week protesting weak support from the local police and lack of attention from university staff.

The lack of sensitivity to this issue was very evident when calls were made by 123jump.com to Education Minister and Deputy Prime Minister Julia Gillard.

First the calls were diverted and after persistent calls to the office, 123jump.com was referred to assistant Leanne Budd. We were directed to a statement that was published on the Web site of Gillard that is now six-day old and since then attacks have continued.

After persistent calls and two emails we received email from the Press Secretary Kimberly Gardiner that also directed us to the statement made by the Prime Minister Rudd to the Australian Parliament and the same six-day old statement by the Deputy Prime Minister.

None of these statements lay out any specific steps taken by the Australian government but they do show a concern to the safety of students.

The only thing that the Prime Minister Rudd noted in his speech other than diplomatic language was that, “The Commonwealth government was working closely with state governments to ensure that the perpetrators of these crimes are brought to justice and that government agencies are responding to these crimes to protect all students and others in our community.”

There are no concrete steps other than simple assurances.

Later in another call to Ms. Kimberly Gardiner, Press Secretary to Ms Gillard, said that the there are more “urgent matters that she has to attend” and she is not available for comments.

When asked what specific steps are taken to solve these problems, Gardiner said, “Your accusations are false” and the government is taking steps but did not elaborate on details.

When asked are there additional police assigned to patrol streets, what are the statistics of the crime against Indian students and what steps are taken to prevent future attacks from happening; Gardiner repeated again that there other important matters to us for now.

The Australian government is apparently treating this matter as if it will go away and is not willing to assure the public with specific steps. Ms Gardiner appears to believe that if you stone wall them they will go away.

The safety of Indian students is does not appear to be of real concern when after several days the crime is not solved and there are no new statements from the Deputy Prime Ministers’ office.

Australia has close to 440,000 foreign students with more than 110,000 from India. These foreign students are contributing A$15.5 billion to local economy.

Australia has still to explain what specific steps the government is taking to protect lives of foreign students.

Australian media reports suggest that Indian students have very little confidence in police and government as most of the pleas in the last six months have been ignored.

Australian police has yet to solve the near fatal attack on Shravan Kumar last month and a recent attack on Baljinder Singh.

According to Sydney Morning Herald in an article published today in the Opinion section authored by Miranda Devine, Indian student leaders indicated at least 20 other Indian students have been attacked in last one month.

Gainers & Losers

Virgin Blue Holdings Ltd surged 10% to 33.50 cents after the company is may start flights between Sydney and Tokyo in the next eighteen months.

Terramin Australia Ltd surged 17% to 94.50 cents after the zinc mining company said that China based company has received approval from the Foreign Investment Review Board for $10 million investment. China’s other large investments are still in limbo as Australian government is jittery of foreign investment in its mining sector.

Investment proposals in Oz Minerals and Rio Tinto are still facing hurdles as Australian lawmakers voice their oppositions.

McArthur Coal Ltd. rose 3.8% to $6.92 after the company indicated higher sales than previously forecasted on rising demand from China.

Devine Ltd, declined 6% to 44 cents after the company lowered its earnings for the current year ending in June 2009 to a between $15 million and $17 million from the previous estimate between $23 million ad $27 million. The company blamed the decline on a project deferral in Brisbane to the next financial year.

ASX 200 Index Movers

Australian Worldwide Exploration Ltd led the decliners in the ASX 200 index of 5.3% followed by losses in Australian Agricultural Company Limited of 5.2%, in Riversdale Mining Limited of 4.4%, in Equinox Minerals Ltd of 4.4% and in OZ Minerals Limited of 4.2%.

Minara Resources Limited led gainers in the ASX 200 index with a rise of 17.0% followed by gains in Valad Property Group of 15.0%, in GPT Group comprises General Property Trust of 12.5% and Macquarie Office Trust of 11.3%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 37.36 or 0.38% to 9,741.67, Hang Seng index in Hong Kong increased 187.39 or 1.02% closed to 18,576.47, CSI 300 index in China higher 74.29 or 2.59% closed to 2,939.39. ASX 200 index in Australia increased 61.90 or 1.56% closed to 4,017.20. The KL Composite index in Malaysia lower 8.22 or 0.77% closed to 1,055.40.

The Kospi Index in South Korea increased 2.04 or 0.14% to close at 1,414.89. SET index in Thailand closed higher 7.95 or 1.38% to 582.25 and JSE Index in Indonesia increased 12.27 or 0.61% closed to 2,010.91. The Sensex index in India decreased 4.01 or 0.03% closed to 14,870.90.