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To: bill meehan who wrote (66348)	10/4/1999 10:50:00 PM
From: John Pitera	Read Replies (1) \| Respond to of 86076

As others have pointed out on the thread Europe's thurs meeting may be much more pivotal in CB policy this week. European rate hike fears are likely to be exacerbated following recent comments from IG Metall's president Zwickel. According to the Bild newspaper he has upped the anti and threatened to table a high 2000 wage claim unless the government concedes ground on their request to retire early at the age of 60 from 63. IG Metall has yet to lay out its stall but it is feared that a settlement at or above the 3% level would provoke the ECB to hike rates at the start of the year. Duisenberg, Issing and Noyer have all highlighted their concerns over the 2000 wage round in a fairly hawkish and uncompromising way.

To: bill meehan who wrote (66348)	10/4/1999 10:53:00 PM
From: John Pitera	Read Replies (2) \| Respond to of 86076

Bill, one of the few Bill as savvy as yourself..... -g- (Editorial, I think that Bill Gross is one of the tuned in debt market players we have seen in the past decade) Bill Gross, portfolio manager extraordinaire for PIMCO, is worried about personal and corporate indebtedness. On the PIMCO web site, Gross asserts that total debt to nominal GDP is increasing to worrying levels. Gross also states that the default rate on junk bonds is approaching levels seen during the recession of 1991 -- all the more bothersome when considering that the U.S. economy has been enjoying 3-4% growth. If this the case during boom times, what can we expect during a slowdown? Gross tells his readers to "proceed with caution," as now may be the time to invest in the safe haven of Treasuries.