Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Bobby Yellin who wrote (14183)	7/7/1998 7:48:00 PM
From: goldsnow	Respond to of 116764

"The Asian crisis is the most significant shock to commodity markets since the dissolution of the Soviet Union and the global economic slowdown in the early 1990s," afr.com.au

To: Bobby Yellin who wrote (14183)	7/7/1998 7:54:00 PM
From: goldsnow	Read Replies (1) \| Respond to of 116764

Dollar Falls Against Yen On Renewed Expectations For Japan Tax Cut Dollar Falls vs Yen Amid Japan Tax Cut Expectations (Update2) (Updates rates.) New York, July 7 (Bloomberg) -- The dollar fell against the yen after a Japanese official renewed expectations the government will cut taxes to help pull the country out of recession. Japanese Prime Minister Ryutaro Hashimoto said government tax reforms will include income tax cuts, according to Hiromu Nonaka, deputy secretary-general of the ruling Liberal Democratic Party. Just yesterday, the yen slumped after Hashimoto damped talk for a permanent tax cut. ''The Japanese want the market to believe they're actually doing something to enact permanent tax cuts,'' said Dan Scherman, who helps manage $40 billion at MFS Asset Management in Boston. ''They seem to get a lot of mileage out of'' such suggestions. In late trading, the dollar fell to 138.70 yen from 140.14 yesterday. It rose to 1.8142 marks from 1.8108 on speculation Russia may have a hard time paying back debt and defending the ruble. Germany is Russia's biggest lender and trading partner, so Russia's financial woes often sour investors on Germany. The dollar briefly extended losses against the yen after Treasury Secretary Robert Rubin said the U.S. government's dollar selling last month to boost the yen wasn't done to win assurances from Japan that it is making progress on bank reform. Some traders took Rubin's remark as a hint the U.S. wasn't goaded into the joint intervention with Japan, said Keisuke Aso, manager of foreign exchange at Bank of Tokyo-Mitsubishi Ltd. Concern that central banks may sell dollars again could keep the U.S. currency from rising too fast in coming days. The yen also got support as LDP policy chief Taku Yamasaki said the party wants to discuss tax reform by July 18 -- before Hashimoto leaves for visits to France and the U.S. ''People now believe there is something coming from the Japanese on tax cuts,'' said David Ogg, manager of foreign exchange at Dresdner Bank. The dollar may stay down as long as that expectation persists, he said. Flip-Flop Some of that discussion could come at 5:30 p.m. tomorrow Tokyo time when Hashimoto holds a campaign news conference. He's campaigning for members of the LDP party up for election Sunday in the upper house of parliament. Still, some traders said the yen's rally will be short-lived amid skepticism that Japan will soon deliver on suggestions of permanent tax cuts. Hashimoto yesterday dashed such hope, though he fanned it in a speech Friday when he said he favored permanent ''tax reform.'' ''One day we hear the tax cuts are going to be permanent, and the next day they say they won't be,'' said Fernando Medina, a currency trader at Banco Atlantico. ''Until we see some resolve that Japan is taking concrete steps -- not just words and promises -- the markets aren't going to be convinced.'' Medina said he bought dollars at 138.85 yen. Temporary tax cuts and spending plans introduced by the government so far have done little to fuel growth. Japanese machine-tool orders fell for a third straight month in May, sinking 16.2 percent from a year ago, the biggest decline in four years. That follows a 3.2 percent drop in April. The dollar could rise above 145 yen in three months, MFS's Scherman said. Germany, Russia IMF The dollar gained against the mark as Russian stocks and bonds slumped on concern the government may be forced to devalue the ruble. The benchmark RTS stock index fell as much as 9 percent and closed at a 25-month low, while yields on ruble- denominated debt soared above 100 percent. ''There's still a lot of uncertainty and nervousness about Russia,'' said Lee Kassler, chief currency trader at Israel Discount Bank. ''With Germany's exposure to Russia, that's going to weigh on the mark.'' The dollar could rise as high as 1.82 marks in coming days, he said. Russia is facing a cash crunch and has dipped into its foreign exchange reserves to pay back maturing debt. It's now seeking as much as $15 billion from the International Monetary Fund to help replenish its reserves and defend the ruble. Many traders and investors are concerned that Russia's woes may spill over into Eastern Europe and take a toll on Germany, which has close commercial ties with the region. Russia owes German banks an estimated $30 billion in loans and takes in about $10 billion annually in German exports. ''Germany is the one with the largest exposure to Russia,'' said Banco Atlantico's Medina. ''It will be hit hardest should Russia experience the fallout we've seen in Southeast Asia.'' The mark got a brief boost in earlier trading after representatives from Russia and the IMF said talks on the loan are on their way to completion. ''This relieves some of the pressure on the mark,'' said Debra Larsen, a currency trader at Commerzbank. ''It fuels hope that we won't see a run on the ruble.'' Anatoly Chubais, Russia's envoy to the IMF, said preliminary talks on the loan will be completed this week, with final details hammered out next week. He met in Moscow with Martin Gilman, the IMF's representative in Moscow. ''All major issues have been identified and a broad agreement has been reached on what needs to be done,'' Gilman said. Elsewhere, sterling was little changed at $1.6377 from $1.6383 yesterday. The dollar was little changed at 6.0840 French francs from 6.0720 francs and rose to 1.5280 Swiss francs from 1.5232 francs. It was little changed at 1787.2 Italian lire from 1785 lire and at 1.4722 Canadian dollars from 1.4727 dollars.