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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: philv who wrote (7589)	2/10/2004 2:31:10 PM
From: Jim Willie CB	Respond to of 110194

raise prices, relocate, or shut down ops (forgot #3) / jw

To: philv who wrote (7589)	2/10/2004 2:57:27 PM
From: russwinter	Read Replies (2) \| Respond to of 110194

<The run up of commodity prices must result in higher product costs unless savings can be wrung out somewhere else> Absolutely correct. The easy money that has overheated Asia and has caused the runaway inflation in input goods, is perversely causing even more job loss in the US. The proper policy now would be to fight inflation, job losses, scant savings, and a weak currency through a series of US rate increases. But as Misheldo has repeatedly pointed out, "Russ, you aren't the Fed", so we will get a massive trainwreck instead. In the meanwhile the BOJ prints up more yen for the inflation fire, and scarfs up a huge treasury offering, la de dah: Reuters US Treasuries in demand from foreign central banks Tuesday February 10, 1:22 pm ET NEW YORK, Feb 10 (Reuters) - Treasuries were easier but pulled off their lows on Tuesday as an auction of new U.S. government debt drew strong demand from overseas central banks, boding well for the rest of this week's $56 billion refunding. Indirect bidders, which include foreign central banks, picked up 46 percent of the issue, easily beating November's 37 percent and the best since this maturity was brought back last May. Traders had been hoping for strong demand given the Bank of Japan is known to have bought massive amounts of dollars in recent week to restrain a rise in the yen. The $24 billion in new three-year Treasury notes went at a high yield of 2.33 percent and drew bids for 2.27 times the amount on offer, beating November's 2.11 level and well above the 1.80 average of last year's auctions. The current three-year note (US3YT=RR) recouped some of its initial losses but was still off 4/32 in price, taking yields to 2.19 percent from 2.14 percent late on Monday. In when-issued trading, the new three-year paper had been yielding 2.33 percent just before the sale.

To: philv who wrote (7589)	2/10/2004 3:32:46 PM
From: mishedlo	Respond to of 110194

UK Output figures cast doubt on strength of recovery theherald.co.uk UK manufacturing output fell for the second month running in December, according to figures yesterday from National Statistics which wrongfooted the City and prompted warnings that further interest rate rises could snuff out the sector's tentative recovery. National Statistics' numbers were in stark contrast to upbeat survey evidence on manufacturing from the Chartered Institute of Purchasing and Supply and the Confederation of British Industry. The official figures showed a 0.1% fall in manufacturing output in December – confounding City expectations of a rise of 0.5%. In November, there was a 0.6% decline. David Kern, economic adviser to the British Chambers of Commerce, said: "The sector is still weak and, after a long and painful recession, the welcome signs of recovery we saw could easily be derailed and go into reverse. "It is critically important to avoid further interest rate increases until the recovery is more secure." Kern highlighted another barrier to manufacturers' competitiveness in the form of sterling's strength not only against the US greenback but also in relation to Asian currencies, notably the dollar-linked Chinese renminbi. theherald.co.uk