This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Australian Prime Minister Calls Election for Sept. 7

By Rod McGuirk

CANBERRA, Australia -- Prime Minister Kevin Rudd called an election for Sept. 7 and said Sunday that it will be fought over who can be trusted to manage the Australian economy as it transitions from a decade-old mining boom fed by Chinese industrial demand that is now fading.

In starting the five-week election campaign, Rudd said the economy can no longer rely on Chinese demand for iron ore and coal that made the country one of the few wealthy nations to avoid a recession during the global economic downturn.

"Who do the Australian people trust to best lead them through the new economic challenges that lie ahead?" Rudd asked at a news conference at Parliament House.

Rudd conceded that his center-left Labor Party was the underdog, saying his advisers had told him that if the election had been held this weekend, his government would have lost.

But opinion polls also show that more voters prefer Rudd, a 55-year-old Chinese-speaking former Beijing diplomat, as prime minister than opposition leader Tony Abbott, a former Roman Catholic seminarian and journalist who is also 55.

Latest economic figures show a sharp decline in the nation's finances, with the Treasury Department last week raising its estimated deficit for the current fiscal year to 30.1 billion Australian dollars ($26.8 billion) due to the mining slowdown. The new forecast for the year ending June 30, 2014, was AU$12 billion worse than the department's last forecast in May.

The government also announced a AU$33.3 billion shortfall in the revenue forecast over the next four years -- a deterioration of about AU$3 billion a week since the May forecast.

Economic growth for the fiscal year, forecast at 2.75 percent in May, was downgraded on Friday to 2.5 percent.

The unemployment rate forecast in May to rise to 5.75 percent in the current fiscal year was revised up to 6.25 percent.

The conservative Liberal Party-led opposition coalition has accused the government of wasting money on stimulus spending after the last conservative government delivered surplus budgets year after year until it lost power in 2007. But economists largely applauded Labor's early spending.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $113.23 -4.40%
FB $94.92 0.83%
GOOG $629.25 -0.31%
TSLA $263.50 1.40%
YHOO $37.12 1.17%

Markets

Chart of I:DJI
DOW 17,550.69 -47.51 -0.27%
S&P 500 2,093.32 -4.72 -0.22%
NASDAQ 5,105.5460 -9.8360 -0.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs