Daily FNArena News - FYI

A divergence of monetary policy between the Fed and the ECB is threatening the very existence of the euro as a currency.

Having been in an uptrend for the past 25 years Macquarie suggests there are a number of issues likely to now weigh on global corporate profit growth.

The latest report by BIS Shrapnel suggests limited gains in residential property prices are likely in FY09, though the market should then improve through to FY11.

The weekend has brought about an apparent capitulation on oil production from the Saudis. The US has some more data to mull over this week while it’s pretty quiet in Australia.

AMP’s Dr Shane Oliver expects oil will hit US$200 per barrel in coming years while suggesting stronger oil prices increase the risk of recession both in Australia and globally.

The Investment Policy Committee at Standard & Poor’s has revised lower its year-end target for the US market to 1,490 on the S&P500 Index but still suggests a stronger second half performance.

Weekly musings from your editor. Oil priced at US$130 per barrel is not good news. Ignore this message at your own peril.

This week sees the US holding its breath for the monthly CPI while inflation expectations in Australia will be closely scrutinised.

Weekly musings from your editor. Banks are out, resources in. But that doesn’t necessarily mean all of them, does it?

Write-downs in the US financial sector are not keeping pace with the increase in bad loans.