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Technology Stocks : Alcatel (ALA) and France -- Ignore unavailable to you. Want to Upgrade?

To: zbyslaw owczarczyk who wrote (2718)	11/1/2000 5:51:54 PM
From: zbyslaw owczarczyk	Respond to of 3891

More from Glodman Sachs : I have called my friend in Europe and he told me that GS recomendation to reduce vendor abd buy carriers was for CONSERVATIVE BALLANCE PORTFOLIO ONLY. For example Abby J.Cowen of GS likes technology very much!!! Also according to analysts in Europe, Euro has enter into very bullish phase. Higher Euro stronger ADRs Glodman Sachs in Europe likes carriers but not equipment vendors: London, Nov. 1 (Bloomberg) -- Goldman, Sachs & Co. recommended investors reduce their holdings of European phone- equipment makers such as Nokia Oyj and increase their stakes in phone companies such as Telefonica SA. Goldman cut its position in technology hardware stocks to ``underweight'' from ``neutral'' and reduced holdings of Ericsson AB, Nokia and Alcatel SA in its model portfolio of 52 European stocks, analysts Mike Young, Peter Sullivan and Ali Nokhasteh said in a note to investors. The move was prompted by concerns mobile-phone handset sales in 2001 and spending by telecom service providers on high-speed wireless networks will be lower than forecast, the note said. Telecom Italia Mobile SpA was added to the model portfolio and the bank increased its recommended weighting for Telefonica on optimism share prices already reflect concerns about the $200 billion European phone companies are spending on new wireless licenses and networks. Still, Goldman remains ``underweight'' in telecom companies, the analysts said. The Dow Jones Stoxx Telecommunication Index has fallen 22 percent so far this year. British Telecommunications Plc is the worst-performing stock in the Stoxx 50 this year, losing 48 percent. The DJ Stoxx Technology Index has risen 1.7 percent over the same period. Alcatel is the biggest gainer in the Stoxx 50 in 2000, surging 57 percent. London, Nov. 1 (Bloomberg) -- The euro rose for a fifth day against the dollar, its longest winning streak in more than a year, amid signs U.S. economic growth is slowing. The euro climbed to 85.64 U.S. cents from 84.89 cents in London yesterday, the highest in two weeks. The dollar fell to 108.49 yen, from 109.15. The euro has gained 3.3 percent in the past five days against the dollar, its best week since Sept. 22 when central banks jointly bought the single currency. ``There's a big reappraisal of the dollar underway here,'' said Nick Parsons, chief currency strategist at Commerzbank. These are ``the first signs that the dollar is reacting negatively to weak economic news, but not gaining any support from a stronger equity market. That is a key change in sentiment.'' Today's National Association of Purchasing Management figures will probably show U.S. manufacturing contracted for a third month in October, according to economists surveyed by Bloomberg News. U.S. stocks advanced yesterday, with the Standard & Poor's 500 Index rising 2.2 percent and the Nasdaq Composite Index gaining 5.6 percent. ``We're seeing some reaction to the fact that Europe is now growing faster than the U.S.,'' said Adam Cole, an economist at HSBC Bank. ``Whether it is sustained depends on how U.S. data pans out.'' He was skeptical about a U.S. slowdown, and forecast the euro would fall as low as 83 cents in coming months. The common European currency has gained against the dollar since Friday, when the U.S. reported slower-than-expected growth for the third quarter. The momentum was reinforced yesterday as reports showed consumer confidence and a purchasing managers index for the Chicago area fell more than expected in October. Iraq Separately, a UN Security Council panel this week said it allowed Iraq to set up a euro-denominated bank account for future oil sales. Iraq wants to swap from pricing its oil in U.S. dollars. Iraq also wants all contracts with foreign and Arab companies investing in the country's free trade zones to be conducted in euros, Egypt's official news agency reported yesterday. The euro was helped by speculation other countries, perhaps Venezuela, may follow Iraq and demand payment in euros, traders said. Analysts said the euro did well to gain at the same time U.S. stocks advanced. Typically when stocks rise foreign investors buy dollars to purchase them. ``We were a little bit surprised that the euro rally coincided with a rally in dollar-assets,'' said Neil Ellerbeck, who helps oversee $6 billion at Chase Asset Management. ``Everyone knows the (U.S.) data is coming off the peak.'' The euro could rise as high as 86.50 cents, he said. Central Banks Sell ``One thing that has been going on in the background is that European national banks have been actively selling dollars,'' he added. Ellerbeck calculates that over the last six weeks central banks sold foreign assets totaling $8.7 billion. European Central Bank policy-makers will meet tomorrow to decide interest rate policy. Only one of 29 economists surveyed by Bloomberg News forecast an increase Thursday. Federal Reserve policy makers will next meet on Nov. 15. ``It's very difficult at this stage to consider any ECB hike,'' said Francois Marais, who manages 28 billion euros in bonds ($24 billion) as head of fixed income at Credit Lyonnais Asset Management in Paris. Benchmark interest rates in the U.S. stand at 6.5 percent. The key euro-zone repurchase rate is 4.75 percent. Gross domestic product in the U.S. will grow 5.2 this year, and slow to 3.2 percent in 2001, according to International Monetary Fund statistics. That compares with euro-zone growth, projected to accelerate 3.5 percent in 2000 and 3.4 percent next year. The dollar will end its two-month rally as the U.S. may abandon its strong dollar policy, pushing the currency down almost 1 percent by the end of this month, according to the average forecast of eight analysts. The dollar will probably fall to 108.25 yen in mid-November, and close out Tokyo trading at 108.40 yen by the end of the month, analysts predicted. Bloomberg News conducted the survey when the dollar traded near 109 yen today.