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To: pater tenebrarum who wrote (12009)	8/17/2000 11:21:11 PM
From: SeaViewer	Read Replies (1) \| Respond to of 436258

The oil price surge must be killing EU. They must act now to weak dollar. I was very surprised they didn't raise last time.

To: pater tenebrarum who wrote (12009)	8/18/2000 8:26:31 AM
From: Oblomov	Read Replies (2) \| Respond to of 436258

Heinz, what is a good hedge against a Euro rally? Futures contracts?

To: pater tenebrarum who wrote (12009)	8/18/2000 11:02:08 AM
From: John Pitera	Read Replies (1) \| Respond to of 436258

Heinz, a 50 basis point rate hike by the ECB would help the euro from the interest rate differential perspective, won't it, talk about a positive carry against say the yen the economies in europe have been very strong this year. Venezuala has been really making hawkish oil comments. you know they have 7 different differentiations of crude that comprise the band, I understand that the band was reset 2 or 3 days ago, hence production will not be upped, very short term ----------- ----09:50 ET 30-year: +4/32..5.703%....GNMAs: -4/32....$-¥: 108.93 OPEC President Ali Rodriguez is on the wires, reiterating some of the hawkish comments that have come out of Venezuela lately. Rodriguez suggested that OPEC may refrain from raising production in September, as such a move could lead to a crash in prices when considering that prices have been boosted by refinery problems in the US and speculative trading activity. We somehow fail to see how an increase could lead to a crash in prices, but as we mentioned, OPEC has clearly taken on a much more hawkish tone, perhaps in retaliation to the dovish stance offered by the Saudis earlier this summer. While somewhat on the backburner, we still remain concerned about the sustainability of the stability pact agreement with OPEC continuing to rely on the price band mechanism for output adjustment. While the Saudis have been extremely tight-lipped as of late, we still expect them to play a bigger role in driving prices lower, and would note that a unilateral increase is very much in the cards when considering that capacity in other producer countries is so restrictive, that production has fallen short of the new June quotas.-------------