Daily FNArena News - FYI

As Bear Stearns’ hedge funds are declared worthless, investment banks are getting stuck with private equity LBO loans and bonds, and Moody’s moves in on higher quality mortgage securities.

Wall Street action was all after the bell this morning as Bear Stearns announced its funds at the centre of the subprime crisis were close to worthless and some poor profit results were posted.

NZ inflation for the June quarter rose 1.0% against expectations of a 0.8% gain so the market is factoring in a July rate hike, but not all analysts agree the RBNZ will again tighten.

There was a broad market decline on Wall Street overnight leaving the Dow to do its own thing on rumours of a bid for telco Verizon.

US government officials are in China trying to find investors for troubled US mortgage securities.

UBS addresses a growing belief that global food prices are set to make a significant secular shift that will have significant ramifications for global inflation.

Australia is virtually devoid of data releases this week while it’s all happening across the Pacific, where the CPI release will be the highlight alongside earnings releases.

The Dow has posted one of its most extraordinary sessions ever rising 284 points largely on the back of retailer earnings reports.

An examination of the current bull and bear arguments on Wall Street.

The Dow bounces back 76 points as bond yields rise again? The subprime scare has caused a strange misalignment of the planets as Wall Street results season gets into full swing.