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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Frank Pembleton who wrote (5982)	1/3/2002 6:56:16 AM
From: Frank Pembleton	Read Replies (1) \| Respond to of 36161

Argentine Devaluation Would Blunt Edge Brazil Enjoys By Charles Penty Sao Paulo, Jan. 3 (Bloomberg) -- Brazil's Parati SA expects to cut prices for its cookies and wafers after Argentina carries out its anticipated currency devaluation. ``It's obvious that devaluation in Argentina would force us to review our prices because we will lose some of our competitive advantage,'' said Gerson Ziem, acting export manager at the food manufacturer's factory in the southern Brazilian state of Santa Catarina. Brazil's exporters have enjoyed a price advantage over rival Argentine companies since the real's devaluation in January 1999. Argentina maintained the peso's one-to-one peg to the U.S. dollar and a three-year recession ensued. Now Eduardo Duhalde, Argentina's new president, said he will devalue the peso to revive the economy by boosting exports, causing concern in Brazil, Argentina's biggest trading partner. quote.bloomberg.com

To: Frank Pembleton who wrote (5982)	1/3/2002 9:33:48 AM
From: isopatch	Read Replies (1) \| Respond to of 36161

More on NAPM <The new orders index rose to 54.9 from 48.8, showing that the number of companies reporting an increase exceeded those reporting a decline. Readings above 50 signal expansion and those below 50 indicate contraction. The overall index has been below 50 since July 2000 and producers such as Occidental Petroleum Corp. and Foamex International Inc. continue to shutter plants and cut jobs to cope with sluggish demand.> <The December rise was the second straight for the index. The two-month increase was the biggest since January-February 1983, at the end of a 16-month recession> quote.bloomberg.com Frank, what I really think we're looking at here is a combination of the snap back from the 9/11 induced down thrust plus the tidal wave of liquidity from the Pump-o-matic Fed. This is looking more and more like a 2 part recession ala 1980-82 with a brief and weak recovery sandwiched in between. In the market, that spells a broad trading range to me. Isopatch