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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Earlie who wrote (175474)	6/26/2002 8:44:57 AM
From: Giordano Bruno	Respond to of 436258

Ahh yes, LTCM...Allen's glory days. -g-

To: Earlie who wrote (175474)	6/26/2002 8:45:07 AM
From: Haim R. Branisteanu	Respond to of 436258

06/26 08:29 European Economies: Currency's Rise May Stunt Export Growth By Catherine Hickley (USD to far to fast some time think twice what you wish for <GG> Europe is not even recovering just medling at the bottom) Berlin, June 26 (Bloomberg) -- For Heinkel AG, a German maker of equipment for chemical companies, the euro's 13.7 percent gain against the dollar this quarter may mean a loss of income. The company makes almost a third of its sales in the U.S. ``If the dollar continues to lose strength, we may be forced to adjust our price lists,'' said Thomas Roder, sales manager of the company based near the German city of Stuttgart. ``That could affect our sales in the U.S.'' Europe can't afford a more expensive euro. Exports, worth about 38 percent of gross domestic product, helped the region grow in the first three months of the year after shrinking in the fourth quarter. A drop in orders from customers abroad would lead factories to cut production, wiping out an economic rebound. The euro climbed to 99.42 U.S. cents today, a 2 1/2 year high. A 10 percent gain in the euro can slice 0.5 percentage points from economic growth in the dozen countries sharing the currency, the Organization for Economic Cooperation and Development estimates. ``It's the speed of the gain that creates problems,'' said Luigi Cammilli, who helps manage 1.3 billion euros ($1.3 billion) at Banca C. Steinhauslin & C. SpA in Florence, Italy. ``I'd definitely stay away from companies that are most susceptible to the weakening dollar.'' Shares in Paris-based Remy Cointreau SA, which produces Piper- Heidsieck champagne and Remy Martin cognac, have declined 9 percent in the past week on concern declines in the dollar may hurt profit. The shares were last trading at 31.49 euros. Remy gets about one-third of its sales in North America. `Very, Very Difficult' ``A further rise in the euro would put us at a disadvantage,'' said Hans-Juergen Thaus, deputy chairman of Krones AG, a maker of packaging machines for beer and soft drink bottlers which gets 80 percent of its sales abroad. ``It's very, very difficult to raise prices at the moment.'' The region's economy grew 0.2 percent in the first quarter. The European Commission in May trimmed its forecast for growth this quarter for the second time in a month, predicting expansion of at most 0.6 percent. The U.S. buys about a fifth of Europe's exports. Evidence that the recovery there may be faltering after the economy grew at a 5.6 percent annual rate in the first quarter is undermining investors' faith in dollar assets. Consumer confidence in the world's largest economy declined the most in June since last year's terrorist attacks on New York and Washington. quote.bloomberg.com