Banks

The market is concerned the big Australian banks are not the investment proposition they once were, and that margins will come under further pressure. Not all analysts agree.

Moody’s and Bob Prechter conspired to send Wall Street lower last night after the big Friday rally. Dow down 48.

Others may have a negative view on CBA shares, but the Wizard sticks to the observation the shares are range-trading and are likely to continue doing so.

Brokers agree that Australian banks are already well positioned to comply with new international banking requirements stemming from the Basel III accord. But what happens now?

Wall Street followed Australia up last night on Chinese data and the Basel III regulations. Dow up 81.

With Jewish New Year in swing, lack of volume is affecting meaningless movement on Wall Street, although the bond sell-off is hotting up. Dow up 28.

Questions over European bank stress tests saw Wall Street sell off last night amidst minimal volume. Dow down 107.

Two month’s after surprising the market with weak earnings guidance, Macquarie Group has been forced to make a second, substantial, downgrade.

The post-GFC bad debt pressure may be easing, but UBS notes CBA’s loan book quality is deteriorating.

Leading US funds manager BlackRock foresees authorities being forced to inflate the US out of debt and out of an increasingly likely dip back into recession.