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To: pater tenebrarum who wrote (85493)	2/13/2001 12:13:23 PM
From: John Pitera	Read Replies (1) \| Respond to of 86076

I've got to agree with you that trade tensions seem to be increasing recently. The Hawkish ECB is helping to enhance the deflationary overtones. There still seems to be a feeling that central bankers are not doing enough to combat the global economic slowdown. While the Fed is likely the least of anyone's concerns, something can be said for the bullish curve flattening bias we have seen in the wake of testimony from Fed Chairman Greenspan. Not surprisingly, such fears remain particularly evident in the foreign exchange market, as the hawkishness of the ECB has unleashed another wave of deflationary pressures. One currency that has been hit hard as a result has been the Australian dollar. While some of the Aussie's problems can be attributed to expectations that the RBA needs to be even more aggressive going forward, we would note support for RBA Gov Macfarlane's recent endorsement of a weaker currency via a recent National Australia Bank survey. The survey revealed that business conditions posted their lowest ever monthly reading in January, while the bank specifically noted that "Significantly weaker conditions in export-orientated sectors are also a concern and should be watched closely."