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Strategies & Market Trends : Commodities - The Coming Bull Market -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (100)	6/5/2001 12:38:43 PM
From: craig crawford	Read Replies (2) \| Respond to of 1643

Tuesday June 5, 10:44 am Eastern Time Brazil real slips to new lows on power jitters SAO PAULO, June 5 (Reuters) - Brazil's real currency (BRBY - news) slipped to new record intraday lows in early trade on Tuesday amid lingering worries over the impact of power rationing on the economy, traders said. The embattled currency fell as low as 2.393 per U.S. dollar before recovering a bit to 2.388, but it was still below Monday's close of 2.382. ``There are concerns about the consequences of electricity rationing,'' said one forex trader, adding that traders were hoping for some sort of Central Bank intervention, be it direct dollar sales to the market or dollar-linked debt. The real closed only a tad firmer on Monday despite Argentina's much-hailed $29.48 billion bond swap. The cheer for the better-than-expected bond swap was undercut by continuing anxiety about rationing. The real, introduced in 1994, has lost more than 20 percent of its value since the start of the year, sinking to record lows. The government hopes to cut electricity consumption by about 20 percent over the next six months via its rationing plan in order to avoid power blackouts. Economists expect the power rationing to slow Brazil's once-surging economy, slash foreign investment and hike inflation.

To: John Pitera who wrote (100)	6/5/2001 5:20:52 PM
From: Moominoid	Read Replies (1) \| Respond to of 1643

I don't know which minerals the investment is being directed at and the data I saw was in percentage terms, 25% gain on nothing could still be nothing :) Because the Aussie Dollar is so low there might be some shift by multinationals to carry out investments here? Our trade balance is now again in surplus and the current account deficit is moving towards the previous cyclical lows but the Aussie remains near to the record lows. There is still a lot of grumbling about native title limiting exploration but maybe behind the scenes it is being sorted out. Clealry the stock prices rebounded from record lows and so has investment a little now. What the implications for future commodity prices is is mixed without more detailed info than I've bothered to look into. David