Banks

Last month President Obama made an uncharacteristically visceral attack on US banks, pledging to shake up the industry with extensive reforms, and thus sparking a Wall Street sell-off. What’s Wall Street’s problem? And how might it affect Australia?

The bottom line is that the RBA raised its cash rate an unprecedented three months in a row last year, and now it would like to let tightening take effect before making the next move.

Last week Citi and Credit Suisse lifted forecasts for Macquarie Group. Today RBS Australia and BA Merrill Lynch have followed suit, both also upgrading to Buy ratings on the stock.

CommSec notes new data from Rismark Australia show Australian housing affordability has actually improved a little since 2003 thanks to rising incomes levels.

The investment clock is a useful tool that provides a useful insight into the direction of the investment environment.

A Westpac-Melbourne Institite survey has showed Australians remain positive on the outlook for property prices, with 84% of those responding expecting prices to gain in 2010.

Stockbrokers are taking the view there’s value up for grabs in Macquarie shares as the improving earnings outlook is not fully priced into the stock yet.

Stocks pulled back from 15-month highs on a weak consumer confidence read and news JPMorgan booked some steep loan losses. Dow down 0.9%.

Australian housing finance numbers for November were weaker than market expectations, with the first home buyer segment particularly soft.

Brokers advise hanging on to AXA shares for what might happen next.