Daily FNArena News - FYI

The Reserve Bank of New Zealand could make it back to back 0.5% interest rate cuts when it meets in October, says TD Securities.

It will involve maybe a US$1 trillion or more. The details are still being decided upon. It is hoped the plan can be rushed through Congress. Will it work?

Weekly musings by your editor. The dangers and perils of using stockbroker research reports as a tool for investment decisions.

The finer points of the Wall St rescue plan are still being worked out, but one thing we know is that the US governments wants US$700bn for a start.

The US Securities & Exchange Commission has announced it intends to ban all short selling on Wall Street for a period, subject to requisite approval.

The Economist’s Intelligence Unit expects the financial crisis to produce a US recession and weaker global growth with corporate collapses increasing.

Even though the US dollar has rallied hard in recent months, weakening global conditions remain supportive for further gains.

Late in last night’s session, Wall Street turned its attention away from the biggest corporate failure in US history to contemplate whether that record might be smashed within the week.

Rather than acquire Lehman Brothers Bank of America is now buying Merrill Lynch for around US$44 billion seeing Lehman Brothers announce a move to chapter 11.

A consortium of global banks is preparing a rescue fund for the market – but not for Lehman.