Dodge Dorland of Landor & Fuest Capital Managers New York tells the risk of a limited default by the US and the likelihood of it losing its AAA status if it does not trim its fiscal deficit. He also comments on whether the market is overbought given that it has reached its highest level since 2007, and also whether this would be a strong reporting season.

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New York-based FXCM Inc Technical Strategist Joel Kruger doesn't expect dollar selling to be sustained, due to overall strength in US data and as Fed considers possibility of raising interest rates.
Where the Euro is concerned, he doesn't expect significant gains in the Euro beyond 1.35, more likely to see a resumption of dollar buying.
More of the same for yuan-dollar going forward despite China's Hu Jin Tao visiting US this week, doesn't anticipate anything significant this week that will force any major moves. Likely to continue to see appreciation in the chinese currency.
He expects dollar strength and ringgit weakness in the days ahead.
He's looking to sell AUD and buy Euro on dips against AUD this week.

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NextView Sdn Bhd Chief Market Strategist Benny Lee is of the view that the market still has one more week to rally and to extend its up trend to 1,580- 1,600.

Regarding Affin Holdings' rising to a 10-year high of RM3.59 on Wednesday, charts show the rally for Affin started two weeks ago, with surge in volume for 3 straight days. It's a case of price leading the news. Charts show the price and volume break out since two weeks ago. He thinks Affin Holdings can go up and test RM3.80.

He agrees with Nomura Securities Malaysia year end target for the FBM KLCI of 1,700 as his charts show the KLCI target for long term (ie one year) is 1,750 points.

He sees next week's immediate resistance level at 1,580 with support at 1,550. Trading ideas-wise, look for price breakouts especially if the counter hasn't moved. Top three stocks he's watching are Ramunia Holdings, Mulpha International and Tebrau Teguh.

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Tim Mulholland, Managing Director, China-America Capital Company, Chicago, discusses US data either just released or about to be released such as Consumer Confidence - Mortgage Applications - - Initial Jobless Claims - inflation - and the picture it tells of the state of US economy. He also comments on so-called green shoots in US commercial real estate, his outlook on US shares, given Spain underlining they dont need an IMF bailout.
He then discusses China's military buildup and its Yuan strengthening ahead of an upcoming summits with the US and what he expects Obama position will be in regards to his commitment to Asia.

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Lucinda Chan, Division Director at Macquarie Private Wealth, discusses Macquarie's estimations for the impact on crop production, minerals and mining, coal as one  casualty and her outlook for prices and supply. She also discusses the impact on Baltic dry rates, the AUD, impact on foreign equities and whether there are any positives from the disaster.

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Palm oil processor and trader Intercontinental Specialty Fats Sdn Bhd CEO Usui San gave his views on a possible rebound of global palm oil output. Palm oil dropped for a fourth day on Wednesday to the lowest level in more than two weeks on speculation that a rebound in world output may ease supplies and pressure prices. CPO futures for March delivery slipped 1.4% to close at RM3,650 on Wednesday, Jan 12.  He expects CPO to trade between RM3,800 to RM3,600 for this week and next. RM3,600 is one of the strong support levels with next support level at RM3,500.

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HwangDBS Vickers Research analyst Hon Seow Mee spoke about her views on Top Glove's announcement about RM80m on expanding its nitrile glove business, including production of special products. She also explained why her industry and demand projects are lower than Top Glove's, and who are likely acquisition targets for Top Glove. HwangDBS has a fully valued call on  Top Glove with a Target Price of RM4.60. 

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HSBC Singapore Chief India and Asean Economist Leif Eskesen gave his take on growth, monetary policy and inflation pressures in the Asian region. Growth for Asia will hold up quite well in 2011. Growth forecast for Non-Japan Asia in 2011 is 7.7 % versus estimated outcome of 9.1% for Non-Japan Asia in 2010. Slight slowdown compared to 2010 when region was recovering from 2009 global crisis. He also gave his views on China trade data, Bank of Korea and Bank of Thailand's monetary policy meetings this week, and why rate hikes for Malaysia are only expected in the second half of this year.  

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Non-Japan Asia’s (NJA) food price inflation in November was at its highest level in the past decade, except for 2007-08 when global food prices spiked to extraordinary heights. As such, it is no wonder that food price inflation is among the top concerns on investors’ minds. Credit Suisse Singapore Economist Wu Kun Lung gave his take on food inflation.

Wheat and corn are the ones to watch after recent flooding. China, Indonesia and India most exposed to food inflation.

Indonesia may raise rates come March this year, expected to raise rates another 3-4 times; by 75-100 basis points by end 2011.

Credit Suisse's regression-based scenario analysis suggests that Malaysia and Korea are the countries in the region that are least exposed to such food price shocks in terms of headline CPI inflation.

Malaysia government will continue with subsidy reduction. Fuel price increase to be modest and gradual. Food subsidies in comparison with fuel subsidies are a smaller amount in M'sia, so probably will not raise prices on food items by much except for sugar, as government wants to discourage consumption due to obesity issues.

Overall, look at food stockpile conditions vs last year, and the demand situation especially in China. Where weather is concerned, it's 50-50: could be adverse, and it's equally likely that we'll see beneficial shocks.

In summary, Credit Suisse thinks year-on-year food price inflation is likely to rise further in the near term. However, without additional weather shocks or panics, they do not expect a full-blown food price crisis in 2011. They expect Non-Japan Asia food CPI inflation to peak in mid-2011 at around 15%, adding a further 1.5pp to headline inflation.

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Dodge Dorland, Chairman and Chief Investment Officer of Landor & Fuest Capital Managers, New York, tells why he expects a slight pullback in the market this week.

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