Daily FNArena News - Australia

The market is pricing in 2.25% of increases to Australian interest rates by the end of 2010 but Westpac sees such assumptions as too aggressive given the potential for financial distress.

Despite Crane Group’s reduced earnings guidance and cuts to market forecasts of 25-30%, earnings risk remains to the downside, according to Credit Suisse.

Australian inflation has been moderating for months and actually fell in September, but it’s unlikely to be enough to forestall a rate rise.

Sims returned to profits in the September quarter but brokers remain somewhat cautious given market conditions imply December quarter earnings will be lower.

A strong Q1 showing and improving business conditions in Australia have brokers thinking that Flight Centre is ready to fly.

Lihir Gold announced solid production for the September quarter and a better than expected increase in reserves, so brokers remain broadly positive on the stock at current levels.

Intersuisse believes Tox Free Solutions is poised for strong earnings growth in coming years.

Higher CPI data increase means the question for the RBA is not whether rates should go up or not, but by how much next week.

For a company that guided for “improvement” a few months ago, an upgraded call for 25% FY10 growth has confirmed analyst confidence.

Citi expects education provider Navitas to deliver strong earnings growth in coming years and so initiates coverage on the stock with a Buy rating.