The market largely ignored the upgrade of BHP Billiton (NYSE:BHP) by Deutsche Bank (NYSE:DB), punishing the stock in New York as continued concerns over demand for raw materials in a shaky global economy continue.
Add to that the unsurety of the super tax in Australia and there's a need to settle things down to get a better picture of where they are going, especially with external forces like the Australian government acting upon them.
For the upgrade, it was from a "Hold" to a "Buy." On June 16, JPMorgan went the opposite direction with BHP, downgrading them from "Neutral" to "Undeweight."
While it seems the Australian miners definitely have an upper hand, and half the country surprised the politicians by supporting the miners with the 40 percent super tax.
It wasn't to solely support the mining companies, but the understanding it could devastate their economy and the good jobs the industry provides for them.
As with all governments around the world, Australia needs to realize they need to cut back on their programs and promises, as it's simply not sustainable, as Europe, the United States, and now Australia, are proving.
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