Daily FNArena News - FYI

Economists are becoming increasingly concerned about the US economic outlook for 2007. Fed rate hikes to combat inflation now may force a swift u-turn in policy next year.

This week’s FOMC meeting will have the whole world on the edge of its seats, but several experts have already drawn their conclusions: interest rates are moving up faster and further than previously anticipated.

New Zealand’s record current account deficit is not a result of poor policies. It is likely to grow further though.

Ethanol prices in the US are some 196% higher on a year-on-year basis.

New data from S&P seems to indicate arrears on low doc loans in New Zealand are rising rapidly.

Many economists, many risk measurements, much contradiction. However, the consensus still emerges as a continuing bull trend after the shake-out.

Reader John Bedson sold his entire portfolio of equities immediately before the May 2006 correction. He is buying again while keeping 75% in cash.

Weekly musings from your editor.

There is a lot of fear in the market that a rise in Japanese interest rates for the first time in years will spark a reversal of yen carry trades and trigger a collapse of all world markets. Morgan Stanley joins the list of those believing the notion is seriously flawed.

Consensus forecasts for global inflation are trending higher. Further monetary tightening seems but logical, CommBank says.