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Technology Stocks : Global Crossing - GX (formerly GBLX) -- Ignore unavailable to you. Want to Upgrade?

To: AurumRabosa who wrote (2281)	10/3/1999 1:54:00 PM
From: TechMkt	Respond to of 15615

I see the FED meeting as giving GBLX a good boost. Fez ________________________ Sunday October 3, 10:26 am Eastern Time U.S. Fed seen sitting tight on rates - for now By Knut Engelmann CHICAGO, Oct 3 (Reuters) - It is back to basics for the U.S. Federal Reserve -- growth at home and a nascent recovery abroad have the world's leading central bank focused once again on domestic inflation. Still, Fed policymakers gathering for a crucial interest rate meeting this week are expected to leave borrowing costs unchanged -- at least for now -- as they wait to see if patchy evidence of rising prices will turn into broad-based inflation pressure. Fed officials and economists at a Chicago Fed conference at the end of last week were reluctant to express their views on the future of interest rates that they have twice nudged up this year to keep inflation at bay. But just two days ahead of Tuesday's rate meeting, that silence in itself was a signal: The Fed usually telegraphs its intentions well ahead of time to avoid out-sized reactions in financial markets. A slew of benign inflation data over recent weeks and the lack of clear warnings from the central bankers' camp has the vast majority of Wall Street analysts convinced that no Fed move is imminent. Only one of the 30 top trading firms polled by Reuters on Friday said it expects the Fed to raise rates this week. Those results came despite evidence on Friday that the nation's manufacturers added power in September as orders and production climbed while robust consumer spending in August pointed to a quickening economic pace. Those figures were the last official economic data that Fed officials will see before going into their closed-door meeting on Tuesday. ONE DAY'S DATA WON'T RATTLE FED The news rattled U.S. stock and bonds prices as investors wondered whether the odds of a third increase in key interest rates this year had risen after all. The Dow Jones industrial average fell 0.62 percent, bringing its decline since this summer's highs to almost 10 percent -- a drop big enough that Wall Street insiders would call it a market correction. But veteran Fed watchers warned that one day's worth of data is unlikely to make much more than a difference in tone at the meeting of the Fed's Federal Open Market Committee. ``It'll be a bit of a closer call than it was before,' said David Hale, chief global economist at Zurich Group. In fact, economists point out, clear-cut evidence of higher inflation is scant even as the economy booms in its ninth year of uninterrupted growth. Fed officials, led by Chairman Alan Greenspan, have singled out technology-driven gains in productivity for helping to keep a lid on wages and prices. New York Fed President William McDonough, for one, believes the economy can grow by as much as four percent a year without generating inflation -- a rate few economists would have said is sustainable just a couple of years ago but one that roughly squares with most U.S. forecasts this year. ``As of this moment, it would appear that you can grow the American economy at essentially four percent per year and have that growth be sustainable,' McDonough said on Friday. Others inside the Fed may be more cautious. Among them is Governor Laurence Meyer, who told the Chicago meeting on Friday that the central bank's prime mission should be to provide an anchor of strong, but non-inflationary growth for the world economy. Yet Meyer also warned that the Fed would keep an eye on conditions in financial markets as a signal of the economy's health. That topic also been one of Greenspan's favorites. ``One takes into account what is going on in financial markets ... indirectly in terms of the impact it's having on the broad macro-economy,' Meyer said.

To: AurumRabosa who wrote (2281)	10/3/1999 5:05:00 PM
From: CF Rebel	Respond to of 15615

Ron, I agree that cash conservation is necessary right now under these conditions. I think he referred to the company's tight money policies in the Telecosm speech (but then again, $20 million to hire someone early on, but hopefully worth it). Another tip-of-the-hand is the consideration of taking parts of GBLX public. This is probably the path of least resistance to raising cash with the side benefit of increasing shareholder wealth. It seems to me that the combination of higher interest rates and multiplying bandwidth, oops!, throughput capacity (which reduces costs of the network dramatically) is just the thing to keep Project Oxygen from getting it's funding. What I like in this scenario is that GBLX management just keeps turning the screws. They continue to do things that expand the network and capacity as quickly as possible. The further ahead they stay on the curve, the harder it is for other companies to justify attempting what this company is doing. They also said "18 months" for an Asian Crossing IPO. That could mean 12 months the way these guys work. (I like how Winnick said in his speech that there are no more weekends for management.) If what we know about this company and it's market is "public knowledge," I'm amazed at how cheap it's stock is. Global Gorilla should be obvious. CF Rebel

To: AurumRabosa who wrote (2281)	10/3/1999 6:19:00 PM
From: CF Rebel	Read Replies (1) \| Respond to of 15615

If the Williams Communications Group (WCG-NYSE) junk bond sale last week is any indication, GBLX should have no problem raising more funds this way. I'd say our qualifications are as good. Original sale was for $1.3 billion and twice raised to $2.0 billion. biz.yahoo.com CF Rebel

To: AurumRabosa who wrote (2281)	10/4/1999 2:08:00 PM
From: JPLoos	Read Replies (2) \| Respond to of 15615

I do not agree with your statement "rates may be higher next year". Here is why. One of the easiest ways to look at the economy is by analyzing the Demographics of a country. The U.S. has been fueled by the Baby Boomer's spending habits. The theory I have heard and buy into is as follows. The typical U.S. citizen does the majority of his or her spending between the ages of 49 - 62 years of age. During this point in an individuals life he or she purchases expensive cars, second homes, dream vacations and an assortment of other things. The statistics within the Baby Boomer generation indicates three distinct groups. The first two groups have already joined the ranks of big spenders but the third and largest group is just now joining in the fun. For this reason alone I think the interest rates will remain low if not lower. The only thing that could screw up the economy is a wacky policy. Besides Auto sales which typically are the first indication of a weakening economy have been steadily rising.