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To: Bill Harmond who wrote (71718)	8/4/1999 3:00:00 AM
From: GST	Read Replies (3) \| Respond to of 164684

William < not your particular issues!! :) > ????? How do you figure that? Interest rates are very much part of the picture I have painted. And I laid out quite clearly why nets are the most interest-sensitive of all stocks. The article indicates one very important part of the pattern -- higher interest rates resulting from wage costs rising faster than productivity. This is central to my analysis. The missing (or only implicit) aspect in this article -- as with most of the people who post here -- is the stunning lack of awareness of how serious these issues become when a country is terribly dependent on foreigners for capital. This is a compounding factor. US spending and 'investment' patterns create a trade deficit which makes us reliant on the 'good-will' of foreigners to cough up enough in investment capital to offset the trade deficit -- which is why we are so hyper, hyper sensitive to the changing interest rate environment. If foreigners reallocate on the basis of 'better investment opportunities' as the article states, they are inclined to consider moving their money out of the US to protect themselves from currency risk. This creates a whole other dynamic in its own right. This is our predicament now. Did you really think this was just about some stupid 1/4 point interest rate hike?

To: Bill Harmond who wrote (71718)	8/4/1999 3:08:00 AM
From: GST	Respond to of 164684

Wednesday August 4, 2:49 am Eastern Time (Note: this article is ''in progress''; there will likely be an update soon.) Tokyo Nikkei ends lower as forex action hopes wane By Miki Shimgori TOKYO, Aug 4 (Reuters) - Tokyo stocks sagged on Wednesday as hopes waned for any immediate U.S.-Japan joint action to bolster a weakened dollar clouding earnings prospects for Japan's mighty exporters. Market disappointment over a lack of joint action on currency spurred sales of blue-chip electronics makers such as Fujitsu Ltd , Sony Corp and Matsushita Electric Industrial Co Ltd . Fujitsu fell 4.76 percent or 170 yen to 3,400, Sony shed 2.77 percent or 400 yen to 14,040 and Matsushita ended down 5.6 percent or 155 yen at 2,615. Internet-savvy Softbank Corp fell 8.93 percent or 2,750 yen to 28,050 following an overnight dive in U.S. Internet-related stocks. ''The market had long been driven by a very limited number of core issues like Fujitsu, Sony and Softbank. Those issues are now entering a corrective phrase, which had a widespread effect on the whole market,'' said Hiroichi Nishi, deputy general manager at Nikko Securities. The benchmark Nikkei 225 average finished down 284.55 points or 1.58 percent at 17,685.38. September Nikkei futures <0#JNI:> were 310 points lower at 17,620. Miyazawa said on Wednesday a phone conversation he had with U.S. Treasury Secretary Lawrence Summers on Tuesday was organised when the dollar seemed set to fall under 115 yen. His reference to that level failed to inspire the market, however, and the dollar stood just above 115.00 yen in Tokyo afternoon trade against 115.22/32 in late New York on Tuesday. ''There is a sense of disappointment after the yen failed to weaken much afterwards,'' said Tatsuo Kurokawa, deputy general manager at Nomura Securities.