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To: Zardoz who wrote (16546)	8/25/1998 1:54:00 PM
From: Alex	Read Replies (2) \| Respond to of 116764

Thank you for the kind words Hutch, but it was ole 49r who waved the Euro flag in my face many moons ago. Considering the excellent calls you have made lately, I would be the last person that you would want to seek advice from. If it were possible to chart my calls, they would closely resemble the junior gold sector - talk about your bear markets : - ). I suppose you could use me as a contrary indicator - but be wary. You know that old saying about even a stopped clock being right twice a day. Still waiting..... tic-toc-clunk....tic-toc-clunk.VBG

To: Zardoz who wrote (16546)	8/25/1998 11:24:00 PM
From: Alex	Read Replies (3) \| Respond to of 116764

Deepening markets turmoil could 'ruin euro launch' By Mark Atkinson, Economics Correspondent Wednesday August 26, 1998 Europe's dream of a smooth launch for the single currency could be shattered by the deepening turmoil in the markets caused by the Russian crisis, economists said yesterday. As investors flee risky currencies and stock markets in search of 'safe havens', a huge queue is building up in the market for rock solid German government bonds, known as Bunds. Meanwhile, debt issued by peripheral European countries also destined to join the single currency, such as Italy and Spain, is viewed with suspicion. The result is that the yields, or returns, available on the different types of bonds which were converging have begun to widen considerably, reflecting changing perceptions of the different degrees of risk. The Italian government now has to pay investors 50 basis points more than German counterparts to attract buyers for its debt. A few weeks ago the gap was 20 basis points. Stephen Lewis, chief economist at London Bond Broking in the City, said this was creating tensions in the euro block which could turn into a currency crisis. "The pressures that are clearly building threaten to tear the euro apart." He said that, if current trends continued, the trickle of funds flowing into the German bond market from other first wave euro members could soon become a flood. Rising demand for marks, which would be needed to buy the Bunds, could push up the value of the German currency while forcing down the lira and the peseta. The exchange rate parities which are the foundation of the euro would come under pressure. "The euro plan may well collapse before too long," said Mr Lewis. European policymakers have swiftly stamped on suggestions that Russia's financial crisis threatens the launch of the euro. The European Commission yesterday denied earlier suggestions by one of its officials that it would slow growth in the region. Hans Tietmeyer, the Bundesbank's president, said that the financial crises in Asia and Russia had left "skid marks" all over international economic growth and the full dimensions of the consequences were not yet clear. Despite these problems, he said, the world economy in other areas continued to perform well and a global recession "is not at the moment knocking at the door". Ian Amstad, international economist at Bankers Trust, the US investment bank in the City, said European governments had invested so much political capital in European Monetary Union that they would not give it up without a fight. "Central Banks would intervene massively to maintain exchange rate parities if they came under pressure," he said.