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Economics

Cash becomes king with inflation on the up

KATE HAGE  |  TUESDAY, 25 JUL 2006
Yesterday's higher than expected Producer Price Index (PPI) has the market and some economists apprehensive about what tomorrow's Consumer Price Index (CPI) figures will signal for inflation, but it drives up the value of cash for fund managers.

Daily economic update

BENJAMIN ONG  |  FRIDAY, 23 JUN 2006
The US equity and bond markets are reading from different pages but the result is the same - they both went down overnight.

Daily economic update

BENJAMIN ONG  |  WEDNESDAY, 21 JUN 2006
US housing data released overnight has all but assured another Fed rate hike after its 28-29 June Federal Open Market Committee (FOMC) meeting.

Weekly economic round-up

BENJAMIN ONG  |  MONDAY, 19 JUN 2006
The wild gyration that has characterised financial market trading activity since mid-May continued to make its presence felt last week.

Daily economic update

BENJAMIN ONG  |  FRIDAY, 16 JUN 2006
Overnight US reports indicating that economic activity remains strong in spite of rising interest rates sparked a strong rally in US equities.

Daily economic update

BENJAMIN ONG  |  THURSDAY, 15 JUN 2006
Last night's bigger than expected increase in US core consumer prices virtually sealed a 25 basis point interest rate hike at the 29 June Federal Open Market Committee meeting.

Daily economic update

BENJAMIN ONG  |  WEDNESDAY, 14 JUN 2006
US core PPI increased by more than expected in May but US retail spending and business inventories point to slowing growth.

Daily economic update

BENJAMIN ONG  |  TUESDAY, 13 JUN 2006
European Central Bank rhetoric points to more rate hikes, Japanese GDP growth has been revised sharply higher and Chinese trade surplus has risen to a record high in May.

Daily economic update

BENJAMIN ONG  |  FRIDAY, 9 JUN 2006
The almost simultaneous interest rate hikes by six central banks over the past two days drive home the point that rising inflation is a global problem.

Daily economic update

BENJAMIN ONG  |  THURSDAY, 8 JUN 2006
Today's strong Australian employment report is consistent with a strengthening growth trend in the economy but it is also increasing the bias towards further RBA rate hikes.