Daily FNArena News - Australia

Retail sales in May were lower than the market had expected and suggest the RBA is seeing some success with its attempts to slow the pace of growth in the Australian economy.

Economists remain convinced that the world is not revisiting the 1970s. However we will have to get used to certain inflationary influences.

Origin Energy rejected BG’s revised offer and lifted its gas reserves significantly, forcing brokers to re-run their models and so generating higher valuations and price targets on the stock.

BNB has reiterated earnings guidance for the full year but brokers see risk to the downside if deals continue to be postponed, with brand damage the result.

The latest Westpac/MI Monthly Inflation Gauge shows inflation remains a problem in the Australian economy, which is expected to keep the RBA’s focus on interest rates.

RR Australia delivered a strong profit result and brokers see further growth in coming years from new markets and initiatives.

Are Qantas’ damage control reactions a good or bad thing for the share price?

ANZ is expecting inflation to hit 5% in Australia, the Aussie to pass through US dollar parity, and the RBA to increase the cash rate not once, but twice, in 2008.

Fund manager Perpetual has again lowered earnings guidance and brokers see few catalysts for the share price shorter-term given uncertain markets and cost issues in the group.

The Westpac-Melbourne Institute Leading Index of Economic Activity continues to suggest dire times lay ahead.