Daily FNArena News - FYI

Weekly musings by your editor. Australia is facing a “hidden recession” and investors better not think that because it is hidden, it’s not there.

ANZ Bank notes outside the US equities have fallen in July while volatility is rising, suggesting continued caution on behalf of investors.

Will the RBA raise rates again in Australia? It might come down to this week’s CPI release.

State Street’s analysis of fund flows shows professional investors remain cautious rather than panicked by current conditions, but risks remain tilted to the downside in the group’s view.

What happens if foreign sovereign investors abandon Fannie and Freddie?

Weekly musings by your editor. Don’t think all that is happening in the US financial sector was impossible to predict. Don’t think it will all be over anytime soon either. And don’t be surprised if the next big event won’t be in the US at all.

Standard Chartered suggests the US dollar has been oversold on financial sector concerns and with the US ahead of other regions in terms of policy initiatives the currency may soon strengthen.

ANZ Bank suggests the Aussie dollar will move beyond parity against the US dollar in coming months but doesn’t see the strength as last much into 2009.

The market sees the British Pound at much lower levels against the US dollar in the year ahead and SVB’s Joe O’Leary couldn’t agree more.

According to Macquarie central banks are likely to lift interest rates modestly to control inflation but such a move would likely further pressure equity markets.