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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Robert Douglas who wrote (6477)	8/4/1998 7:11:00 PM
From: goldsnow	Read Replies (1) \| Respond to of 10921

Japan traders doubt forex intervention imminent 02:50 a.m. Aug 04, 1998 Eastern By Tamawa Kadoya TOKYO, Aug 4 (Reuters) - Markets are sceptical if monetary authorities will intervene to buy yen soon, since the currency has yet to reach a point where its weakness would trigger a global market meltdown, analysts and currency traders say. Another decisive factor in whether an intervention would work is whether the United States would join in the effort to stem the yen's slide, they said. ''I don't expect intervention to occur for a while...sole intervention by the Bank of Japan will not have much impact, and the U.S. will likely want to see the details of Japan's (economic stimulus) efforts,'' a dealer at a U.S. bank said. But chances of a yen-buying intervention may increase after Japan produces concrete plans to fix its ailing economy, traders said. ''Intervention by the Bank of Japan cannot be completely ruled out after Prime Minister (Keizo) Obuchi delivers his policy speech (to parliament on Friday),'' the dealer added. On Tuesday, Obuchi's new cabinet ministers went on a verbal offensive to protect the yen. Clarifying earlier comments which had prompted the dollar to gain almost five yen since last week, Finance Minister Kiichi Miyazawa said he never intended to indicate he was ruling out market interventions. ''It is unavoidable to correct market distortions in order to promote the orderly (workings of) the market economy,'' Miyazawa told a regular news conference. In an inaugural news conference last week after Obuchi's new cabinet was announced, Miyazawa had said the yen and stock prices should basically be left to the markets, although he said at the time that interventions were acceptable in ''extreme cases,'' such as the Japan-U.S. joint yen-buying operation on June 17. ''My statements may have been insufficient or sent the wrong message,'' Miyazawa told the news conference. ''It was not my intention to say that interventions are unnecessary.'' Trade Minister Kaoru Yosano and Economic Planning Agency chief Taichi Sakaiya also joined the chorus on conducting intervention when needed. But the dollar's nearly two yen tumble from an earlier high of above 146 yen on Tuesday stemmed largely from position adjustments rather than a genuine fear of intervention, dealers said. A Japanese city bank dealer said: ''The basic undertone is still bullish, but the dollar has been overbought recently. It was about time to see some corrective sales.'' But others warned that the MOF's stance should not be taken lightly. ''I think the market is underestimating the possibility of intervention...I wouldn't be surprised if it occurred anytime soon,'' said Takao Sakoh, senior adviser in the foreign exchange department at UBS AG. ''The MOF has said it will take decisive action if the yen becomes excessively weak,'' he added. Sakoh added that Obuchi ''has no choice'' but to implement stimulative steps to bolster the economy, and with the U.S. economy clearly peaking out, he expects the dollar to come down to near 130 yen ''around autumn.'' Meanwhile, traders do not see the United States taking part in a joint intervention effort as authorities would not want to see the dollar weakening at a time when Wall Street remains vulnerable. ''Further dollar weakness in the face of weak stocks would put a negative spin on things, so the U.S. is unlikely to agree on intervention,'' a bank dealer said. No threats of a devaluation of China's yuan have yet been made by Chinese officials, despite the fact that both the Hang Seng index and Chinese stocks on the Hong Kong stock exchange have suffered in recent days, said Tim Moloney, a currency strategist at Deutsche Bank. ''In terms of shaping perceptions of the risks of intervention, comments of U.S. and Chinese officials will be the most crucial,'' he said. ((Tokyo Treasury Desk +81-3 3432 8027

To: Robert Douglas who wrote (6477)	8/4/1998 8:28:00 PM
From: Jim Willie CB	Respond to of 10921

Robert, I agree with you about Keynesian stimulus... but the key ingredient to any such stimulus is removal of the cancer... saline and glucose doesnt cure momma's breast cancer, even lots of it... Indonesia has huge cancer that requires removal of entire limbs and organs, maybe separation of the body parts after recent severe burns... Japan just stares at its cancer and talks to it boldly... Japan has lost 30 lbs and has no energy to even stand up straight... its body wants surgery and needs surgery, but its body insists on losing no appendages, not a single finger... Korea's brain sees the cancer, but one arm stops the surgeon while the other arm nurtures that cancer... Malaysia has not gone to the doctor yet, blaming the west for its cancer economies receive productive stimulus to reflate ONLY AFTER the cancer is removed, medication is administered, and the patient understands and cooperates with the therapy... NONE OF ABOVE HAS HAPPENED YET / Jim Willie