Daily FNArena News - FYI

A correction in NZ housing is due following five years of above trend growth, Credit Suisse says. One just cannot find any positive news on NZ these days.

In Citigroup’s view, Australia’s telcos are switching their focus to data services and mobile content in a bid a balance out lost voice revenues.

The new Fed chairman is going to overdo it, DBS economists believe, expect interest rate cuts in the US in 2007.

Weekly musings from your editor.

Expect another Fed rate hike in July, Morgan Stanley says, and possibly another one in September.

Danske Bank sees another three to six months of focus on negative news flow as energy prices and rising inflation take their toll. Beyond that, Danske’s favoured view is for a resumption in global expansion.

Economists at ABN Amro note that all the corporate profits outside the mining sector and the finance industry have evaporated in Q1. This will have consequences for future investments in Australia, they believe.

With all eyes on the World Cup and traders distracted, Lloyds TSB expects the EUR/USD to take a dip into next week. As for commodity prices, the strength story has been overdone, the economists say.

The RBNZ is unlikely to cut interest rates this year, due to inflation concerns, but analysts question the RBNZ policy.

The global correction is going to last a while. The main thing is not to lose your nerve and to focus on the main themes behind the events, Julius Baer says.