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To: Enigma who wrote (16630)	8/26/1998 10:55:00 AM
From: Little Joe	Read Replies (1) \| Respond to of 116764

enigma: According to Kitco price is down. Where are you getting quote. Live long and prosper, Little joe

To: Enigma who wrote (16630)	8/26/1998 12:10:00 PM
From: Alex	Respond to of 116764

Japan stocks seen heading to post-bubble low/RPT By Hiroko Nakata TOKYO, Aug 26 (Reuters) - The Japanese stock market, buffeted by problems abroad and beset by troubles at home, looks likely to drop to a new post-bubble low, a growing number of analysts and strategists say. And when that happens, a further slide below the post-bubble low of 14,309 for the Nikkei stock average that was set on August 18, 1992, could be surprisingly quick, they say. ''Once it hits 14,308, it will plunge 2,000 points,'' said Robert Sasaki, head of quantitative analysis at Jardine Fleming Securities Ltd. ''You'll see a rush of U.S. hedge fund managers selling the Nikkei.'' Neither Japan's economy nor its stock market has recovered from the bubble of inflated land and asset prices of the late 1980s that left its banking system hobbled with massive bad loans and stock owners with losses. Evidence the equity euphoria that has boosted U.S. and European markets is waning has begun to mount in recent weeks. The Dow Jones Industrial Average, troubled by concern that Asia's prolonged economic crisis will erode earnings of its powerful exporters, is currently 8.5 percent off the high it set just six weeks ago. ''It's looking increasingly likely that we're going to face a world bear market,'' said Garry Evans, a strategist at HSBC Securities Ltd. ''Clearly we're going to have some volatility for the next few weeks.'' That same volatility is weighing on Japan's big export-driven manufacturers -- the only bright spot in a market that trades at less than half of its all-time high set almost nine years ago. For instance, Sony Corp , a favourite of international investors, has dropped 15.6 percent from the high it set in July. Toyota Motor Corp (7203.T) has fallen 16.8 percent from its high this year. And Matsushita Electric Industrial Co is off 15.2 precent from its high for the year. ''The effects of weak overseas stocks will easily pull the Nikkei 225 to a 14,600 to 14,300 level,'' said Mamoru Shimode, a strategist at Deutsche Securities Ltd. The key Nikkei average was down 195.71 points, or 1.30 percent, at 14,877.22 in Wednesday afternoon trade. But overseas anxieties, like the recent devaluations in Russia and Venezuela, are not the only problems Tokyo stocks face. The banking system's staggering bad loan problem -- estimated at 87 trillion yen ($604 billion) by authorities -- has choked off credit, pushing bankruptcies to record levels. Bank shares, which now comprise 12.91 percent of the overall market's capitalisation, have come under pressure as traders and investors doubt that either the banks or the government will be able to effectively deal with the problems. When ailing Long-Term Credit Bank of Japan Ltd announced a restructuring that included the closure of overseas branches, a 20 percent reduction in its workforce and the dismissal of the senior management that got the bank into its current mess, the banking sector promptly swooned. And even if LTCB is married to Sumitomo Trust & Banking -- a proposal that has been floating for months -- analysts say it will not address the financial system's key problem: Too many banks with too much bad debt. ''There are concerns that the failure of a weak bank may lead to more burden on stronger banks,'' Deutsche's Shimode said. ''LTCB will survive, but it will leave overcapacity in the banking industry.'' And banks could contribute to the equity debacle themselves if they move to sell off parts of their massive stock holdings to dress up earnings results. Technical analysts fret that already-fragile sentiment will turn ugly fast if the Nikkei slips below the 14,655-point level. ''If we don't hold these levels, I'm afraid we could be poised to test post-bubble lows,'' said Michael Wilkins, a dealer at Credit Lyonnais. ($1 equals 144 yen) biz.yahoo.com

To: Enigma who wrote (16630)	8/26/1998 4:05:00 PM
From: Alex	Read Replies (2) \| Respond to of 116764

Canada's Currency Crisis SUSIE GHARIB: And things aren't better, currency wise in Canada either. The Canadian dollar closed at $0.64 1/2 U.S. cents today. That's up a tiny bit from an intra-day level that found the currency at its lowest point in more than 100 years. As Howard Green explains from Toronto, the reasons for the slide are all too familiar. HOWARD GREEN, NIGHTLY BUSINESS REPORT, CORRESPONDENT: An American mutual fund company films a commercial but not in America, in Toronto. Why? Because the Canadian dollar's been tanking. So American film crews have invaded. Canada's dollar, known here as the loony, has been striking historic low after low. The popular scapegoat is that four-letter word, Asia. Asian turmoil has depressed commodity prices, and led to a stampede to the warm nest of the U.S. dollar. But that's just part of it says this prominent Canadian economist. JEFF RUBIN, CHIEF ECONOMIST, CIBC WOOD GUNDY: While the Canadian dollar has really got beaten up badly the last year, it's been on a one-way street since the early 1990's. I mean, six, seven years ago, the Canadian dollar was trading in the mid-$0.80 range where it's historically traded against the U.S. dollar, and it's steadily declined over the last six to seven years. GREEN: One big reason, during that period, Canadian interest rates have been lower than U.S. rates, so capital has flowed out of Canada. So far the government here has left rates alone, and let the loony dangle. But Sherry Cooper is a Toronto-based economist who once worked at the U.S. Federal Reserve. She's calling for a tax cut and an interest rate hike. SHERRY COOPER, CHIEF ECONOMIST, NESBITT BURNS: Yes, we've reduced the government excesses. Yes we have eliminated the deficits, but then so has the United States. And in fact, proportionately the U.S. budgetary surpluses are even bigger. The U.S. is paying down debt faster than Canada is right now, and so it makes no sense to have our interest rates below those in the United States. GREEN: But increasing interest rates spooks many Canadians. In the early '90s, the Bank of Canada, the Canadian equivalent of the Fed, raised rates to smother inflation. Many still blame those rate increases for the last recession and there's a fear it may happen again. RUBIN: The banks have been very reluctant to do that because it does, it's not confident that the Canadian economy can function properly with a return to historic interest rate spreads against the United States. GREEN: Higher rates. COOPER: Higher rates. GREEN: The drooping Canadian dollar is certainly a gift to American tourists, and Canadian exporters love it too. Their goods are cheaper for foreigners, namely Americans, who buy 80 percent of Canada's exports. This economist, however, is not so in love with the low dollar. COOPER: Those that suggest that the currency at $0.66 is a good thing, well does that mean $0.50 is even better, and what about $0.20? There's a logical inconsistency here. I think that it becomes too easy for Canadian exporters to hide behind the ever-weakening currency. GREEN: As for American investment opportunities, the low dollar means Canada is on sale. And one observer here says that if Americans start snapping up Canadian assets, that'll force the government here to look at propping up the Canadian dollar to protect economic sovereignty. Howard Green, NIGHTLY BUSINESS REPORT, Toronto. Nightly Business Report transcripts are available on-line post-broadcast. The program is transcribed by FDCH. Updates may be posted at a later date. The views of our guests and commentators are their own and do not necessarily represent the views of Community Television Foundation of South Florida, Inc. Nightly Business Report, or WPBT. Information presented on Nightly Business Report is not and should not be considered as investment advice. (c)1998 Community Television Foundation of South Florida, Inc.