Please find attached below the Global Markets Monitor (GMM) dated 8 June 
2001. 

The contents of the GMM are contained in the Executive Summary below:

? US: Legislative momentum building for price caps.  Some prominent 
economists are advocates.  
? Europe: ECB holds again, acknowledging that price pressures are likely to 
persist over the next few months.  By setting inflation expectations above 
its stated target for the remainder of 2001, the ECB has afforded itself some 
flexibility in setting interest rates to combat the economic slowdown.  
Europe,s manufacturing sector continues to display weakness, suggesting that 
recovery of Europe,s industrial sector may be well behind the U.S. 
? UK: As expected, the BOE left interest rates unchanged at 5.25 percent at 
its MPC meeting this week.  The pound reacted to speculation and political 
factors this week.  PM Blair,s repeat landslide victory on Thursday and his 
pre-election comments renewed an old debate regarding UK,s entry into the 
euro region.  The pound is too strong to join the common currency, and it 
must weaken further in order to assure export competitiveness of British 
manufacturers.    
? Country Update - Argentina: The bond swap that closed earlier this week 
buys the Argentine government time to reduce its fiscal deficit.   But the 
wave of optimism following the swap of short- for longer- term debt 
repayments may wash ashore if Argentina cannot meet its IMF fiscal targets 
this year.  The debt exchange prompted S&P to remove Argentina,s foreign 
currency sovereign credit ratings from CreditWatch on Wednesday June 6 (in 
place since March 19, 2001). 
? Country Update - Brazil: Brazil,s drastic power rationing plan could impact 
the short-term supply of some of Brazil,s major exports, including steel and 
pulp products.  Consumers must cut energy consumption by 20 percent and 
Industry by between 15 to 25 percent until at least October 2001.
Credit Ratings Activity - India and Mexico:  Fitch adjusted downward its 
outlook on India,s sovereign ratings to negative from stable on concerns 
about fiscal policy, privatization and a deterioration in the foreign 
investment climate.  S&P,s outlook for Mexico remains positive.  But, Mexico 
needs to improve its public finances before the rating agency will upgrade 
Mexico to investment grade.  Mexico,s foreign currency sovereign is rated 
&BB+,8 one notch below investment grade.  

Maureen Raymond-Castaneda 
and Gwyn Koepke