Daily FNArena News

Housing prices may not be booming across Australia but the HIA and CBA note affordability continues to decline for first home buyers.

The chances of a February rate rise may well be sealed this week as the fourth quarter CPI is released in Australia, while NZ is likely to stay on hold.

Iluka has become a restructuring story. While long term value appears to be present, the short term outlook has many risks and uncertainties.

Austock Securities sees value in Straits Resources as this year should see some better news and stronger earnings.

Citigroup’s downgrade on Telstra yesterday has been followed today by JP Morgan, who also argues the stock is expensive and it is too early to price in success in the transformation process.

Telstra has received a number of upgrades to earnings and price targets in recent days, but Citigroup counters too much is being priced in and the stock is overvalued.

Both Deutsche and Citigroup have initiated coverage on Babcock & Brown Power with Buy ratings, reflecting the combination of solid growth and an attractive yield.

A CPI outcome at the lower end of expectations has brokers tipping New Zealand interest rates are on hold, while ongoing inflationary pressures in Australia suggest possible further hikes.

Weekly musings from your editor.

If India’s Ranbaxy can increase its presence through the sale of Merck’s operations in Australia the news may not be so positive for Sigma and Genepharm Australasia, ABN Amro Morgans believes.