Daily FNArena News - Australia

Inflation concerns in Australia may ease following the latest enterprise bargaining agreement wage outcomes, which suggest little pressure despite a tight labour market.

A private equity deal in the US listed property sector implies value in Australian LPTs, with brokers expecting current discounts to net asset value to close.

Australian banks are dealing with higher interest rates, potentially higher bad debts and slowing credit growth, but Merrill Lynch still expects the sector to outperform.

Austock Securities has upgraded Incitec Pivot to Strong Buy from Buy, suggesting earnings risk remains to the upside as the stock is now effectively “drought proof”.

UBS notes the Freeport/Phelps Dodge merger puts pure-play copper producers into the frame.

Telstra shares were feeling the pressure as its partly paid T3 shares appeared in high demand in an overall subdued share market on Monday.

Southern Cross Equities expects Ansell to grow earnings as the latex price becomes less of an issue, with any downside offset by potential corporate interest.

Newcrest has restructured its hedge book to provide more near term exposure to higher spot gold prices.

Changes to the Pharmaceutical Benefits Scheme designed to lower the cost of generic drugs are expected to have little earnings impact on industry players given offsetting compensation payments to pharmacists.

Westpac suggests the global economy can withstand a slowing in the US economy, as other regions should continue to post near-trend growth.