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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Captain Jack who wrote (72776)	11/27/1999 9:17:00 PM
From: rupert1	Read Replies (1) \| Respond to of 97611

The premise of several contributions here is that because the euro is lower against the US dollar, european economies will shrink and world trade will be adversely affected. With respect, this is nonsense. In the first place, the most recent projections by IMF and OPEC is that all european economies will see strong growth in the next several years. Mainland europe, which is where the euro is most widely used, will have stronger growth than the UK where the euro is not used although the UK will pick up again in 2001. There are a number of other northern european countries which also do not use the euro. The UK pound sterling has been unusually high against the US dollar recently, having just fallen back to its long term norm. The UK economy is projected to continue with strong growth but it will be lower next year than the mainland european economies before rising again in 2001. The favourable exchange rate with the US dollars gives european countries a competitive advantage in world trade with the US. Continental europe relies less on expensive US imports than does the UK. Countries like Ireland and Italy have rates of growth which rival the old Asian rates -7% per annum.