Immigration talks
Visit comes amid rising death toll from asylum boat tragedy
JAKARTA // The Australian prime minister arrived in Indonesia yesterday for his first trip abroad since taking office – a visit overshadowed by immigration issues.
These include the climbing death toll from the latest boat tragedy involving Australia-bound asylum seekers.
Tony Abbott’s trip comes three days after the vessel packed with refugees from the Middle East sank in Indonesian waters, killing 36 and leaving dozens of others missing.
Before leaving Sydney yesterday, Mr Abbott stressed the importance of the relationship between the neighbouring countries, which according to his office have two-way trade valued at A$14.6 billion (Dh50bn) a year.
“While Indonesia may not yet be our most important economic or security relationship, it is in many respects our most important relationship,” Mr Abbott said.
“We will be covering a range of matters because this is an important relationship and it’s important to get it right at the start of this new government.”
Mr Abbott was expected to meet one-on-one with the Indonesian president, Susilo Bambang Yudhoyono, yesterday.
He is accompanied on the two-day trip by his country’s foreign minister, Julie Bishop, the trade minister, Andrew Robb, and 20 senior businesspeople.
Border issues have been a long-time headache shared by the two countries.
Indonesia, with its thousands of islands and lack of maritime resources, is often used as a transit point by asylum seekers desperate to reach Australia’s Christmas Island in the hopes of starting a better life.
Thousands board rickety fishing boats every year to make the often deadly journey, which typically crosses about 340 kilometres of open sea.
Mr Abbott won the September 7 election on the promise that he would stop the boats of asylum seekers.
Indonesia has expressed concern over his “tow-back” plan, which involves the Australian navy intercepting and forcing back Indonesian fishing boats crowded with asylum seekers.
The Indonesian foreign minister, Marty Natalegawa, has warned that the move could breach the country’s sovereignty.
Australia’s immigration minister, Scott Morrison, yesterday maintained his government’s policy of refusing to say whether any boat had been turned back to Indonesia since the new administration took control on September 18.
“I’m not going to comment on operational issues at sea that compromise current and future operations,” Mr Morrison said.
He added that the new government had not changed how Australia responded to search and rescue emergencies.
On Friday, a boat thought to be carrying more than 100 asylum seekers from the Middle East, many from Lebanon, sank off the province of West Java’s Sukabumi district after being hit by high waves.
The search continued yesterday for dozens believed missing after 35 survivors were rescued. The exact number of people aboard the boat was unknown.
Seven more bodies were found late on Sunday and yesterday, bringing the death toll to 36, said Capt Warsono, police chief of Agrabinta in the district of Cianjur.
Separately, Australian navy boats rescued 80 asylum seekers and crew from two sinking boats last week. The passengers were travelling from Indonesia to Australia and were handed over to Indonesian authorities, said Mark Binskin, an air marshal with the Australian military.
Another four boats reached Australian waters last week, he said.
* Associated Press
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How Tesla’s price correction has hit fund managers
Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.
It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.
The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.
Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.
Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.
He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.
AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”
A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.
Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.
Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.
Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.
By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.
Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.
In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”
Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.
She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.
Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.
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