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Interest rates and earnings will dominate in Australia this week; in the US its car sales, earnings and the January jobs figures.

The gap between the Australia and New Zealand economies opened further yesterday with the decision by New Zealand’s central bank to keep its main interest rate steady after the first meeting of the year.

On the face of it, news that Japan reported a rise in exports last month, compared with December 2008, seems to be good news.

The past few months haven’t been kind to the corporate cop, the Australian Securities and Investments Commission: it’s lost a trio of high profile cases and only won one.

Shares around the world fell again overnight, as concerns continued about China’s tightening, the regulation of banks in the US, and sovereign risk. 

The US Federal reserve kept rates on hold at 0% to 0.25% for a ninth successive meeting and continued its view that they will remain at current levels "for an extended period of time".

A solid pointer to today’s Consumer Price Index with a surprise easing in producer prices in the December quarter.

Global markets had their roughest week last week since October-November last year, but it could get even tougher this week if Ben Bernanke’s nomination for a second term as US Federal Reserve chairman fails.

Gold, copper and oil all had rough weeks as investors took profits after deciding sentiment was turning volatile and becoming uncertain.

US shares had their worst three-day slide in 10 months last week on fears the White House’s plan to curb bank risk-taking would cut profits.

Apart from the vote on Chairman Bernanke’s re-appointment, the week will be dominated in the US by the first meeting of the year of the Fed’s Open Markets Committee.

Strong consumer confidence figures, rising imports and confirmation of a solid end to 2009 for the motor industry (retailers, at least) have added to the belief that we will get another rise from the first Reserve Bank board first meeting of the year on February 2.

If the World Bank’s forecasts of 9% GDP growth for China this year and next prove to be near the mark, then the country will move past Japan this year into second slot behind the US, and extend the lead in 2011.

Led by continuing strong growth from China, and increasingly from other major economies, the World Bank sees global economic growth recovering to around 2.7% this year and 3.2% in 2011, after 2009 saw it contract by 2.2%.

China yesterday threw markets into confusion on the eve of the release of December quarter and 2009 annual economic figures with reports that banking regulators had ordered a halt to lending.

The chances of a fourth successive interest rate rise have increased after Australian consumers emerged from their annual Christmas-New Year break full of vim and vigour, with confidence hitting new highs, according to two major surveys.

And helping boost consumer confidence would have been better results from their stockmarket investment and super, especially from Australia.

Shares of corporate litigation funder, IMF (Australia) Ltd were driven down by nearly 15% yesterday in the wake of the decision by the federal government to reverse the so-called Sons of Gwalia High Court decision and remove the right of shareholders to greater priority in corporate collapses.

Shareholders rights trampled (again) or a justified restoration of the status quo?

A big week for China and Australia.