Daily FNArena News

Higher interest rates will impact on activity in the sector but St George Bank expects Australian residential property prices will grow by 5-10% over the next year.

The annualised growth rate of the Westpac-Melbourne Institute Leading Index of Economic Activity fell below long term trend in January.

It has been revealed that as the Fed assisted in orchestrating the end of Bear Stearns on the weekend, it was simultaneously appealing to investment banks to rally around colleague Lehman Bros.

As the Fed steps up its financial market rescue, expectations are increasing that the G7 will be forced to intervene to save the US dollar.

Industry consultant TradeTech left its weekly spot price indicator unchanged at US$74/lb.

Bear Stearns is small fry compared to America’s large commercial banks. James Turk looks at the biggest of them all – Citibank – and how it shapes up alongside the investment banks.

It is generally considered China has an almost endless supply of rural workers willing to move to the cities but a recent academic study suggests this is not the case.

JP Morgan has acquired Bear Stearns not for US$20ps, but for US$2ps – all scrip. Goldman Sachs set to announce big losses. The Fed cuts the discount rate.

JP Morgan may have bought Bear Stearns by this morning while the Fed could cut 100 points.

The temporary bail-out of distressed US investment bank Bear Stearns poses all sorts of problems of its own.