Daily FNArena News - FYI

While the US Federal Reserve is becoming increasingly concerned about the inflation outlook the Commonwealth Bank suggests the US Housing market needs to stabilise before a rate hike is considered.

US thrift IndyMac collapsed on Friday as the market focused on Freddie and Fannie. It was the second biggest bank collapse in US history.

Credit insurance group Atradius has surveyed businesses globally and come away with the conclusion the global credit crisis still has further to run.

Weekly musings by your editor. Let’s suppose high oil prices are here to say. Does anyone still see any benefits in portfolio diversification?

The previously bullish picture for the Aussie dollar is becoming more clouded with recent weakness in commodity prices, ANZ suggesting any correction would likely drag the Aussie dollar down as well.

Danske Bank sees the threat of inflation as the biggest driver of forex markets in coming months as only a few central banks are suitably positioned to fight the threat with higher rates.

As the “will they won’t they” debate on Australian interest rates twists and turns, this week sees the latest employment data.

State Street’s graphic interpretation of institutional investor sentiment suggests we are likely to see a further deterioration in risk appetite first, before a recovery will follow.

Weekly musings by your editor. What is going to trigger a bounce in the Australian share market?

The Fed is banking on US inflation eventually falling due to economic weakness, but Morgan Stanley warns it may take longer than hoped. There are also implications for Australia.