Business Services Industry

Debt surge the elephant in the room.

Australasian Business Intelligence, May, 2007

Byline: Robert Guy

May 01, 2007 (The Australian Financial Review - ABIX via COMTEX) -- The rally in US financial markets has been fuelled by the rising level of global liquidity, according to analysts. The Dow Jones Industrial Average added 5.7 per cent in April 2007, rising above 13,000 points for the first time. The low US interest rates of recent years have also contributed to demand for investment products, yet there are concerns that the rising level of debt that has resulted could lead to a major economic shock. Richard Bernstein of Merrill Lynch believes that the US Federal Reserve is unlikely to cut interest rates, due to the rising levels of liquidity.

Publication Date: 2 May 2007

MERRILL LYNCH AND COMPANY INCORPORATED

UNITED...

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