Today’s retail sales figures and an increase in company profits may have reduced pressure on the Reserve Bank of Australia to deliver another interest rate cut tomorrow.
Manufacturing data, however, suggests the economic malaise is entrenched.
Australia’s stock market investors took the news in their stride with a morning slump countered by the retail and corporate profit figures.
The market, however, lost ground again in the afternoon, with the All Ordinaries closing at 4879.8, down 34.2 from Friday’s close.
Local company Elders Ltd was down 1.5 cents, or 15 per cent, at 8.5 cents, having lost 13 per cent on Friday after it posted a hefty first half loss and said the sale process for its rural services and automotive businesses was ongoing.
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Cochlear Ltd was down 17 per cent to $53.42 after the hearing implant maker reported its sales have slowed in the second half of the financial year, ahead of the launch of its newest range of products.
Telstra was down 8 cents at $4.66 as it moved to reassure the market it currently faces no financial risks from people being potentially exposed to asbestos in its pits and pipes.
Telstra boss David Thodey says anyone concerned about being exposed to asbestos following work on the company’s communications pits and ducts can “ring us now”.
Thodey was speaking after a meeting in Canberra on Monday with the Federal Government, union leaders and representatives from asbestos safety groups.
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The gathering, which included Communications Minister Stephen Conroy and Workplace Minister Bill Shorten, follows the discovery of asbestos in Telstra pits being prepared for the rollout of the national broadband network (NBN).
“Anyone who has any concerns about being exposed to asbestos ring us now,” he told reporters.
“Anyone who has seen any instances where they think it has not been well handled should get in touch with us.”
The government has set up a register for people to lodge claims about possible exposure to asbestos.
Concerns were raised last week after the discovery of the building material at a Telstra pit in Penrith in Sydney and more issues which arose at telecommunications works in Ballarat, Perth, Adelaide and Tasmania.
Thodey said he had good discussions with unions and workplace safety agency Comcare at the meeting and stressed the telco giant’s long experience in dealing with the hazardous material.
“I am very clear, whenever we take on the responsibility of remediation, Telstra is responsible, no questions asked,” he said.
He dismissed suggestions Telstra had cut corners when remediating the pits for the NBN builder NBN Co, which is rolling fibre optic cable through the infrastructure.
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