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To: Tito L. Nisperos Jr. who wrote (13480)	12/16/1997 9:46:00 PM
From: Kumar Nathan	Respond to of 70976

Tito: With the data available as of now, tommorrow is going to be a rally day. Japan is flying like hell. At one point it rallied upto 800 points, HongKong, Taiwan, Malaysia, South Korea all rallying on an average of 3% as of now. Japan's recovery package has been announced and for the first time they are talking about tax cuts. All the news are positive. Yesterday's Micron technology earnings were positive news too. I look at it in this way, Micron's competetors, Hyundai, Samsung, LG etc.,, almost brought their entire country to bankruptcy due to their trade practices and dumping . At least Micron inspite of this pricing pressures made some penny. I think we should give some recognition to them. Right now S&P futures and Nasdaq 100 futures are soaring. Good gap opening up tommorrow. Regards Kumar

To: Tito L. Nisperos Jr. who wrote (13480)	12/16/1997 9:52:00 PM
From: Kumar Nathan	Respond to of 70976

Tito & Amaters: Good writeup about Japans package. Now you guys will be realizing why I am upbeat on tommorrows action. Tuesday December 16, 9:06 pm Eastern Time INSTANT VIEW - Japan special tax rebate TOKYO, Dec 17 (Reuters) - Below are analysts and economists initial reactions to Prime Minister Ryutaro Hashimoto's announcement of two trillion yen worth of special income tax cuts. TETSUFUMI YAMAKAWA, DIRECTOR OF ECONOMIC RESEARCH, GOLDMAN SACHS: ''Probably the financial markets regard it as a turnaround in the trend of fiscal contraction, which means there will be more. If we just think about a temporary two trillion yen tax rebate, the potential impact on the economy is fairly limited -- the fiscal contraction in the first place was nine trillion yen and there is huge pessimism...on the consumer side. ''It is unlikely to be spent for consumption. It is more likely to go for saving. The actual impact should not be exaggerated, but if the markets see it as a turnaround in fiscal contraction, the markets may react in an excessive manner.'' JESPER KOLL, CHIEF ECONOMIST, JP MORGAN IN TOKYO: ''I don't think he (Hashimoto) has to resign. He basically turns into a pragmatist. It's a good homecoming for Hashimoto. It's a very pragmatic move. Technically, it's okay because the balanced budget provision kicks in on January 1. Asked if consumers would simply save the extra money, he said: ''Past experience shows that 40 to 50 percent of the money is spent in the first 12 months.'' ''It will lift growth about one-quarter of a percent over the next 12 months. I don't think it will would get the economy out of recession, but it's enough to cheer us up.'' MICHAEL HARTNETT, CHIEF ECONOMIST, MERRILL LYNCH ''It's an earlier announcement than widely anticipated, therefore it is positive policy shot for the equity market. But two trillion yen is probably the lower end of expectations.'' ''If financing is done by deficit-financing bonds, which is likely, it is a reverse of the fiscal consolidation stance so intially yen positive, jgb negative. However it is not a massive stimulus, 0.4 percent of nominal GDP, 0.7 percent of employee compensation and if you remember the income tax cut in '94 it was about five trillion of which two trillion was permanent and that was a modest not massive success'' He added that because it was a one-time tax cut rather than a permanent one, ''most of it is likely to be saved than spent.'' MINEKO SASAKI-SMITH, CHIEF ECONOMIST, CREDIT SUISSE FIRST BOSTON: ''This is an admission of a policy blunder by the LDP...It's a natural outcome but it's not enough to create a self-sustaining recovery. The money doesn't come until next year. It's important to have a bit more money coming in -- it works out to about 10,000 yen per head. But it's a lot better because it is private consumption that is weaking so much.'' MATTHEW POGGI, ECONOMIST, LEHMAN BROTHERS: ''Certainly we think it is a step in the right direction...but we wouldn't want to exaggerate how much impact there will be. (On the political side) We thought the government would have to fall before they changed direction on fiscal policy. We're still worried about that. ''It will help confidence...but the consumer is still worried. For domestic demand to recover, I think the government should do more.'' Regards Kumar