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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: clochard who wrote (41373)	7/5/1999 10:54:00 AM
From: Haim R. Branisteanu	Respond to of 94695

Well they still flood the markets with money and Crude Oil is at $19.65 - from Bloomberg The Chartered Institute of Purchasing and Supply said the U.K. service industry expanded in June for a fourth consecutive month. Its industry activity index rose to 56.6 in June from 56.4 in May. The rise was led by swelling order books and rising employment and took overall activity to its highest level since July. A reading above 50 indicating service industries are expanding. The implied yield on the December futures contract is 5.45 percent, up 1 basis point from Friday. That means investors expect money market rates to rise 28 basis points by the end of the year, suggesting they anticipate a rate increase. ''Short sterling is implying a rate rise early next year, which I think is totally ludicrous,'' said Taylor, ''My personal view is that we could see interest rates coming down sometime after this month.'' The Bank of England will keep its benchmark repurchasing rate at 5.00 percent when the central bank's Monetary Policy Committee meets next Thursday to set rates, according to all 15 economists in a Bloomberg News survey. Central bankers have reduced the rate seven times since October. Money Supply Growth The M0 money supply rose 0.6 percent in June, an annual increase of 7.3 percent. Economists polled by Bloomberg had predicted a monthly rise of 0.6 percent, and a yearly rise of 6.7 percent. Looking ahead, the manufacturing and industrial production figures are released tomorrow. Economists predict a 0.1 percent monthly rise in May for both. '' There's been a very clear trend in manufacturing figures, we've had a broad stabilization in the last quarter,'' said Ken Wattret senior economist at Paribas. ''Survey data is telling us manufacturing should begin to expand.'' The central bank measures inflation using retail prices less mortgage interest repayments, the figures are slated for release July 13. The government's inflation target is 2.5 percent, and the Bank of England is mandated to keep inflation within one percentage point of that level.