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To: Mike Johnston who wrote (51503)1/26/2006 6:52:39 AM
From: shades  Respond to of 110194
 
J China PBOC: To Pay Attention To Movement Of Natl Savings

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BEIJING (Dow Jones)--Patterns in the movement of national savings need to be watched to see if they are healthy, China central bank chief Zhou Xiaochuan said.

The movement of savings from one country to another is the result of globalization, Zhou said, in response to concerns the U.S. would suffer if Chinese savings, some of which are used to purchase U.S. Treasury bonds, declined. Zhou's comments were reported by the official Xinhua News Agency Thursday.

How China manages its investments, especially its foreign exchange reserves, remain a concern for market participants, especially as China is a major investor in U.S. Treasurys.



To: Mike Johnston who wrote (51503)1/26/2006 6:55:03 AM
From: shades  Respond to of 110194
 
Interest rates promote economic growth - what about productive investment in the children or R&D?

DJ Brazil Ctrl Bk: Gradual Rate Shift Aides CPI Trend, Econ

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BRASILIA (Dow Jones)--A continued gradual adjustment of Brazil's reference Selic interest rate will aide compliance with official inflation targets as well as promote economic growth, the country's central bank said in the minutes of its January interest rate meeting released Thursday.

The bank cut the Selic rate by three-quarters-of-a-percentage point to 17.25% annually at its monetary policy meeting last week. The reduction was the fifth made since August.

"Copom (Central Bank's Monetary Policy Committee) concludes that the cautious implementation of monetary policy has been fundamental to increase the probability of convergence of inflation with the trajectory of targets," the bank said, adding:

"So that this greater probability can continue producing effective results, however, it is necessary that inflation indicators continue showing elements compatible with a benign scenario that has taken form in recent months. In this manner, the gradual easing of rate policy will not compromise the important gains made in the combat of inflation and the preservation of economic growth, with the generation of employment and an increase in real income."



To: Mike Johnston who wrote (51503)1/26/2006 6:56:44 AM
From: shades  Respond to of 110194
 
I still don't believe holding shiny metal does much:

=DJ DAVOS:Global Risks Lower Than In Cold War - Exec

DAVOS, Switzerland (Dow Jones)-Oil price shocks, a bird flu pandemic, terrorism and climate change are among the main global risks at present, according to a report released by the World Economic Forum Thursday.

With the report, the WEF seeks to increase awareness to help mitigate disruptions to economies.

But Christian Mumenthaler, Swiss Re's Chief Risk Officer said on the sidelines of a press conference that the problems are less grave than the threat of nuclear war between the Soviet Union and the United States from the 1950s to the end of the 1980s.

"Overall, today's risks are lower than during the cold war years," as nuclear war risks today are lower than four decades ago, Mumenthaler said.

The report, conducted by the WEF in collaboration with Marsh & McLennan Companies Inc. (MMC) Merrill Lynch (MER), Swiss Re (RUKN.VX) and the Wharton School, groups global risks into five classes: economic, societal, environmental, technological and geopolitical. Within chief economic risks, the group identifies oil prices and energy supply, asset prices and indebtedness, and the ballooning U.S. current account deficit, among others.

Mumenthaler that globalization and increased economic links worldwide can spread out the negative impact of some risks, as happened with the terrorist attacks in the U.S. in Sept. 2001, which affected equities markets around the world.

On the other hand, according to Mumenthaler, the increased level of information in a global world can help mitigate some risks, such as wider global awareness of bird flu. Related web site: www.weforum.org By Santiago Perez; Dow Jones Newswires; (34) 618 528 681; Santiago.perez@dowjones.com