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To: banco$ who wrote (23710)	12/1/1998 9:31:00 PM
From: Gabriela Neri	Read Replies (1) \| Respond to of 116756

Exactly. It is indeed ominous that Boeing reveals that the Asian crisis has forced it to retract to such a large degree. Combine this with the price of oil and the changes it is imposing on the oil giants, and it is easy to understand the severe impact that this region is having on overall global demand. The market is still interpreting news in the "glass is half full" mode. This can change in a New York minute, and probably will. Greenspan foresaw the dramatic threat to US and global growth which is why he lowered rates. Now, we are just witnessing the events which he knew were going to occur-a slowing in economic growth. So, the real big question is not if we slow down, but how much we slow down. Even Greespan most likely has no clue about that. Just like the major oil producing countries were praying for an oil price recovery, so must the US treasury and fed officials be praying that the slowdown is not too dramatic. We now know that the oil producing countries prayers were not answered. Is this an omen?

To: banco$ who wrote (23710)	12/2/1998 6:47:00 PM
From: goldsnow	Respond to of 116756

02 December 1998 World markets fall after Dow's plunge Samantha Enslin WORLD equities were knocked yesterday after Wall Street's 2,3% fall on Monday. The Johannesburg Stock Exchange's all share index fell 233 points or 4,2% to end at 5388, led lower by the banks and financial index and the electronic and electrical index, which shed 5,2% and 3,8% respectively. SA equities' losses were also underpinned by concerns about corporate earnings prospects in a climate of high interest rates and low economic growth. World markets took similar hits. Hong Kong's Hang Seng and France's CAC 40 indices each fell 4,1%, the UK's FTSE 100 shed 3,6% and Germany's DAX lost 5,1%. The Dow Jones industrial average on Wall Street rose 17 points to 9133,5. The rand firmed 2,8c to R5,6570 to the dollar amid dollar weakness. Bonds drifted weaker, depressed by oversupply. The government R150 bond ended 7,5 basis points weaker at a 16,095% yield. Relatively thin volumes exacerbated the sharp move lower, dealers said. Shares worth R1,2bn traded, 16% of which were Sanlam shares, which fell 32c or 5,3% to 567c. Dealers said the sell-off on Wall Street was no surprise to the local market which in recent weeks had been hesitant to follow US and European markets higher. Citadel economist Dave Mohr said it was clear that the Dow's recent surge "was a bear trap, we are seeing confirmation of that now". Absa treasury economist Christopher Hart said the US's third interest rate cut about three weeks ago had been unwarranted; it merely inflated an asset price bubble and spurred greater consumer demand. This and the US's huge trade deficit were the dollar's Achilles heel. Jacques Potgieter, technical analyst at SG Frankel Pollak, said there was no doubt that the US market was running out of steam. "We will see further losses but not to the same extent as earlier in the year." Harold Jones, a senior equities dealer at ING Barings, said that "with more uncertainties than certainties", fund managers would remain shy of the SA market. bday.co.za