Australia’s Federal election is set for Saturday, November 24th. Australian shares are set to follow the U.S. lead higher this week, according to the papers. But the chance of a crash exists, too. A report shows the Asia-Pacific region can’t get enough Australian coal, but that the rising Aussie dollar could hurt profits for coal producers. Tax-free super should be pushed out to the age of 67, according to another report. BHP unloads a uranium asset. And U.S. banks set up an US$100 billion fund to fight the credit crisis.
All the details below…
Australian Vote Hinges on Iraq, Economy
Prime Minister John Howard on Sunday called general elections in Australia for Nov. 24, cautioning voters about his opponent’s plans for a withdrawal from Iraq and reminding them he has overseen the country’s long economic boom. Howard, one of Washington’s staunchest allies in Iraq and the broader war on terror, is seeking a fifth term and hoping to save his reputation from the final judgment that he should have quit while he was ahead.
Uranium offload for BHP
BHP Billiton will bank $US126.5 million ($A139.9 million) cash from a deal to offload a Canadian uranium offshoot and mill licence. The licence will be offloaded to the Texas-based firm Uranium Resources Inc. The sale of Rio Algom comes after the value of the Toronto-based concern was written down to just $US35 million in the accounts of the mining giant.
Coal shortfall to bite
A thermal coal price hike looms after a report showed an expected shortfall in the Asia-Pacific region of 100 million tonnes a year by 2020. But the high Australian dollar is likely to temper some of the gains for miners.
Will stock market crash again?
THE 1987 stock market crash wiped a staggering 25 per cent off the value of Australian shares in a single day. Some believe there are worrying parallels between what happened then and what’s happening now – four and a half years of extraordinary gains combined with an increasingly volatile investment environment.
Super access age to increase
The age at which superannuation becomes tax-free should be extended gradually from 60 to 67 in line with increases in life expectancy. And, according to a report released today, eligibility for the aged pension should increase in steps from 65 to 67. The report by David Knox, a partner with consulting firm Mercer, for the economic think tank the Committee for Economic Development of Australia, says the proposals would encourage people to keep working longer, increase economic growth and improve retirement incomes.
What the papers are saying:
Overnight Market News