Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Box-By-The-Riviera™ who wrote (55703)	6/29/2000 9:08:00 AM
From: UnBelievable	Read Replies (2) \| Respond to of 99985

U.S. CONSUMER SPENDING Jumped 7.7% in the First Quarter much higher than the 5.9% previously reported. GDP grew at a 5.5% annual rate, compared with the 5.4% estimated earlierFirst-Quarter Spending, Prices Were Higher Than First Reported WASHINGTON -- Prices and consumer spending were higher than previously estimated in the first quarter, according to the government's final tally of the period's economic growth. The chain index for personal consumption expenditures -- a measure of price pressures on the economy -- jumped 3.5% in the first quarter, the Commerce Department reported Thursday. That represented a slight upward revision from the 3.1% advance previously reported. Consumer spending was sharply higher than previously estimated, however. Personal consumption expenditures jumped 7.7%, compared with the 5.9% gain previously reported. The latest increase came on top of a robust 5.9% advance in the fourth quarter of 1999. Economic growth, as measured by gross domestic product, came in at a 5.5% annual rate, just a tad higher than the earlier estimate of 5.4%. Economists surveyed by Thomson Global Markets expected GDP to stay at 5.4%. The report also showed that businesses remain healthy, despite weakness in exports. Corporate profits jumped 5.8% in the first quarter, compared with the previously reported 4% rate of growth. In the fourth quarter, corporate profits were up just 2.7%. Disposable personal income grew by 5%, less than the 5.5% previously reported. The personal savings rate was also revised downward, to 0.3%. A WSJ.COM News Roundup Thursday, June 29, 2000

To: Box-By-The-Riviera™ who wrote (55703)	6/29/2000 9:12:00 AM
From: pater tenebrarum	Respond to of 99985

the coming energy crisis...a summary and links: csf.colorado.edu regards, hb

To: Box-By-The-Riviera™ who wrote (55703)	6/29/2000 10:10:00 AM
From: Tunica Albuginea	Respond to of 99985

Joel Gander, Re: Japan public debt is growing and bond rating decreased. That has always been Japan's and Europe's ( and the US's ) problem : "Living High in the Hog on borrowed money. " And, nobody is ready to -pay back the debt -cut spending. This game has been going on for years. Finally I think it is coming to ahead. Japan MUST - a) cut spending and/or - b) increase rates They are unwilling to do a) (because they " just don't get it " I think ) that is why they are likely to do b). however b) will raise the yen and weaken the US dollar which will hit US Equity Markets, All IMHO TA ---------------------------------- Message #55703 from Joel Gander at Jun 29, 2000 7:55 AM ET Japan rating lowered by Fitch Thursday June 29 6:59 AM ET Fitch Cuts Japan's Local Currency Rating TOKYO (Reuters) - International credit rating agency Fitch said on Thursday it downgraded Japan's long-term local currency rating to AA+ from AAA, due to concern about its public finances. Fitch affirmed Japan's long-term foreign currency rating at AA+ and its short-term rating at F1+. ``Japan's fiscal deficit, excluding social security, has risen to around 10 percent of GDP as a result of successive fiscal stimulus packages and underlying falls in tax revenue,'' Fitch said in a statement. ``The public debt burden has mushroomed in recent years and gross general government debt is now around 125 percent of GDP, easily the highest level in the OECD economies,'' it added. Key September 10-year Japanese government bond futures on the London International Financial Futures Exchange (LIFFE) dipped briefly on Fitch's announcement. Yet analysts said they did not expect Fitch's downgrade to have a major long-term effect on Japanese government bonds (JGBs). ``Despite ballooning JGBs issuance, Japanese financial institutions have ample appetite for JGB investment,'' Kazuo Mizuno, general manager for Kokusai Securities' Economic Research Department said. That's because Japanese companies are borrowing less, leaving banks with surplus cash to invest in buying government bonds. Analysts also said they did not see an increase in risk of investing in Japanese government bonds (JGB) despite Fitch's downgrade, since Japan's government debt, though large, could still be covered by the country's personal savings. Sadateru Nishiura, the managing director of Fitch's Tokyo office, said the outlook for Japan's ratings was stable. Nishiura added that the cut in Japan's local currency rating does not directly affect the ratings of bonds issued by private Japanese companies. Fitch also said in a statement that the downgrade of Japan's local currency sovereign rating does not affect Fitch's rating of any yen-denominated asset-backed securities. Big Debt, Bigger Savings Japan's total government debt is forecast to rise to 645 trillion yen ($6.12 trillion) by the end of fiscal 2000/01, ending next March, but that is covered by financial assets worth 1,300 trillion yen held by individuals, Kenji Yumoto, senior economist for Japan Research Institute Ltd, said on Wednesday. Japan's net government debt is still relatively low, due to a large surplus of funds in social welfare programs and large government asset holdings. In 1999, Japan's net debt rose to 37 percent of GDP compared with 45 percent in the United States, according to data released last October by the International Monetary Fund. But Fitch's Nishiura said the fact Japan's net government debt is rising was a source of concern, despite its current low level. ``Net government debt is low, but the trend is toward an increase and there are no signs that the trend may change,'' Nishiura said. ``It is not so much a question of whether fiscal consolidation starts immediately or not. The bigger concern is that the Japanese government has not presented a concrete scenario for improving its fiscal situation,'' Nishiura said.