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Technology Stocks : INDONESIA'S PT TELECOM(TLK) -- Ignore unavailable to you. Want to Upgrade?

To: Jyoti sharma who wrote (271)	2/6/1998 7:03:00 PM
From: Duke	Respond to of 947

U.S. banks seen staying in Asia for long haul By Cal Mankowski NEW YORK, Feb 6 (Reuters) - The major U.S. commercial banks and investment banks are in Asia for the long haul and not about to cut back their activities because of a drop in the markets, according to analysts and bankers. ''We're talking about a short-term cyclical phenomenon,'' said analyst Ronald Mandle of Sanford C. Bernstein Co. He said profits in the region were under pressure last year and likely would remain so this year, though 1999 could bring a rebound. ''The banks take a long-term view,'' the analyst said. Asked if any U.S. banks were likely to retreat from the region, Brown Brothers Harriman & Co analyst Raphael Soifer said: ''I have no reasons to believe that they intend to cut back in Asia. They are all viewing Asia as a long-term opportunity that is going through some hard times at the moment.'' Industry sources said the Asian chaos offered opportunities for many players to step up certain activities. Bankers Trust New York Corp (AMEX:BPB - news; BT - news), for example, is a major trader in debt issues of troubled companies. A spokesman for Bankers Trust declined comment. Another source said banks could increase activity in one business area while cutting back in another, in effect rebalancing of their business strategy. A source at a large New York-based bank said there had been no talk of cutting back in Asia. Meanwhile, Merrill Lynch and Co Inc (MER - news) is believed to be taking a long, hard look at hiring some of the people or buying some assets of the failed Japanese brokerage Yamaichi Securities Co Ltd (8602.T), one of Japan's ''Big Four'' securities firms. ''As we have indicated for several weeks, we are involved in ongoing discussions and have no further comment,'' a Merrill Lynch spokesman said Friday. In December, Jerome Kenney, Merrill Lynch corporate strategist, said deregulation and modernization of the Japanese financial system were creating a once-in-a-lifetime opportunity for foreign-based firms to play a bigger role. Another banking source said that anything the U.S. banks did in the region must be viewed in the context of a continuous effort to control expenses. Chase Manhattan Corp (CMB - news) confirmed a week ago that it was looking at streamlining administrative functions worldwide, a move expected to lead to many job reductions. Bankers Trust is planning to consolidate Asian trading activity in Singapore. Soifer said that decision was made some time ago and did not indicate a cutback in Asia because of market conditions. When a spokesman for Citicorp (CCI - news) was asked if any cuts were contemplated, he said: ''We have been in Asia since 1902, and customers can count on us to stay there and grow.'' More difficult to answer is the question of whether any banks would delay expansion plans until the dust settles in Asia. Last month, BankBoston Corp (BKB - news) said a restructuring of its Asian activities would emphasize capital markets and trade finance. Bradford Warner, executive vice president in charge of global capital markets, characterized the move as more of a refocusing than a cut. Even so, in an interview with Reuters, Warner conceded that the bank's ranking executive in Asia was resigning because he had wanted the company to be doing more in the region.

To: Jyoti sharma who wrote (271)	2/6/1998 7:05:00 PM
From: Duke	Respond to of 947

Resolution by U.S. Rep. calls on IMF to sell bonds WASHINGTON, Feb 6 (Reuters) - The chairman of a Congressional panel introduced a resolution on Friday calling on the IMF to sell bonds to raise money rather than rely on the United States and other countries for financial support. New Jersey Republican Rep. Jim Saxton, chairman of the Joint Economic Committee, said his resolution urges the International Monetary Fund to either sell bonds or notes to bolster its resources to cope with global financial crises. ''The International Monetary Fund should raise funds in private financial markets such as through the sale of bonds or notes, rather than from member countries, in order to reduce the risk of loss to United States taxpayers,'' the resolution said. The Clinton administration has asked Congress to approve about $18 billion in additional funds for the IMF to replenish resources drained by multibillion-dollar bailouts for Indonesia, South Korea and Thailand. But many lawmakers have accused the IMF of being too secretive and inflexible, and have vowed to oppose the request for extra money. Saxton has been one of the most vocal critics of IMF policies. His resolution accuses the international lending agency of encouraging unsound investments and of imposing counterproductive conditions on borrowing countries. ''The issuance of IMF bonds would work to reduce moral hazard, limit taxpayer risk, promote transparency, and make counterproductive conditions less likely,'' the measure said. Even if approved by Congress, the resolution would not force the IMF to issue bonds or to change the way it raises money. A Saxton aide said the measure would nonetheless send a strong signal to IMF leadership.

To: Jyoti sharma who wrote (271)	2/9/1998 1:28:00 PM
From: tom	Read Replies (1) \| Respond to of 947

I agree that normally broker downgrades are a bullish sign but in TLK's case they have only just started. I have been bearish for some time and only now are the downgrades coming through. Most brokers are still positive as they think TLK will survive and Indo is a growth market long term etc etc but they ignore the valuation. It is trading like an investment trust ie at big premium because of the lack of other opportunities. If the market rallies and the Rupiah strengthens then local fund managers will sell TLK to buy other stocks and if the market tanks then it will outperform the index - but still go down. I think that we agree that TLK is a relative rather than an absolute buy? Tom