Daily FNArena News

Chinese manufacturers are feeling the squeeze of higher input costs and intense competition. CLSA believes they will soon start raising prices for exports, pushing inflation up worldwide.

The level of global business confidence has surged over 12 months but is now at a tipping point. The global GDP will lose steam, confidence will diminish, but a recession is not on the cards.

Market speculation about whether or not Tabcorp would launch a competing bid for the whole of UNiTAB has been quashed this morning. An offer to share holders of UTB has been released.

Good model but too expensive was the general opinion. Now that the share price has come off the shares have been placed on Buy by Citigroup. More to follow suit?

Weekly musings from your editor.

Experts agree the Japanese economic recovery is robust enough to witstand a few challenges. Interest rates will soon go up, but when and by how much is still subject to an open debate.

Merrill Lynch Investment Management joins the throng in expecting more to come from this correction, but only within an ongoing bull market.

Are iron ore prices peaking? National Australia Bank predicts a price roll over into Japanese fiscal 2008.

The price of alumina in China has begun to fall following record imports of bauxite. Unlike copper, aluminium is not plagued by low inventories and a slow production response. If aluminium breaks ranks with the metals bull market, the whole complex could come down.

Interest rates are likely to go up further in Hong Kong, liquidity is likely to tighten, but the economy should do well.