PRESS DIGEST-Australian General News - Oct 21
Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy.
THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)
-- The Challenger Financial Group-owned (CGF.AX) Challenger Howard Mortgage Fund is today expected to halt investor redemptions after Federal Labor's bank deposit guarantee plan triggered an investor flight to the major banks. Observers said the move by the A$2.9 billion fund, Australia's largest, was likely to cause similar redemption freezes by other mortgage funds. The Government last week announced plans to guarantee all savings deposits in a bid to shore up investor confidence in the face of the global financial crisis. Page 1.
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China has recorded a slower than forecast economic growth rate of 9 percent in the third quarter, sparking concerns of a fallout on Australian commodity exports such as iron ore. Prime Minister Kevin Rudd yesterday noted in federal parliament the weaker economic indicators emerging from China, Australia's biggest trading partner. The Federal Government will this week be briefed on the situation by Zhang Ping, the chairman of China's National Development and Reform Commission. Page 1.
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Australia's automotive market is under pressure because of the credit squeeze. The increased cost of funds yesterday prompted financier GE Finance, which has 20 percent of the domestic vehicle finance market, to raise the criteria for new car loans and cap them at a maximum of A$100,000. Meanwhile, leading car retailer Automotive Holdings Group blamed weaker consumer spending for a 30 percent decline in net profit in the September quarter to A$7.1 million compared with the previous corresponding period. Page 1.
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The governing coalition in Western Australia between the Liberal Party and the Nationals is under strain over the terms of a A$2.8 billion regional spending scheme. It emerged on Friday that Premier Colin Barnett was substantially trimming the plan to spend A$700 million over four years on regional projects, a proposal that had been key in securing the Nationals' support following the Sept. 6 election. Despite the revelation, Nationals leader Brendon Grylls yesterday stopped short of threatening to withdraw from the government. Page 3.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
-- Australia ranks in the bottom third of the Organisation for Economic Co-operation and Development nations in terms of infant mortality, according to a new study conducted by the Australian Research Alliance for Children and Youth (ARACY). The study also shows that despite Australia's affluence, more than 7 percent of families with children own less than 11 books. The ARACY study, titled the Wellbeing of Australian Children, will be launched in Canberra today by Federal Families Minister Jenny Macklin. Page 1.
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Prime Minister Kevin Rudd has announced a summit of small business leaders on Friday as part of the Government's efforts to deal with the fallout of the global financial crisis. The Council of Small Business Organisations of Australia plans to raise issues including tax relief, easier access to credit, and new measures in addition to the recently-announced A$10.4 billion economic stimulus package. Besides Mr Rudd, the summit will be attended by Treasurer Wayne Swan and Small Business Minister Craig Emerson. Page 1.
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A group of 16 Sri Lankans and four Indonesians allegedly attempting to reach Australia by boat has been intercepted by authorities in East Timor. East Timorese immigration officials said yesterday the small boat was detained at Betano and an investigation is expected to be completed by the end of the week. "Some of them say they were trying to enter Australia to look for jobs," said senior immigration official Boavida Ribeiro. Australian Immigration Minister Chris Evans said the situation was being monitored. Page 2. Continued...
