smells like could be headed for a hire interest rate environment, providing we have any type of economic growth

-----Original Message-----
From: Fenner, Chet [mailto:Chet_Fenner@bmc.com]
Sent: Tuesday, February 12, 2002 8:44 AM
To: Parks, Joe
Subject: RE: Flows


Thought you would find that interesting.

-----Original Message-----
From: Parks, Joe [mailto:Joe.Parks@enron.com]
Sent: Tuesday, February 12, 2002 8:39 AM
To: Fenner, Chet
Subject: RE: Flows


THIS IS AN INTEREST STATEMENT "foreigners want to add to their holdings of
US assets when they already hold 11% of the US equity market, 21% of
corporate bonds and
36% of the Treasury market?"

-----Original Message-----
From: Fenner, Chet [mailto:Chet_Fenner@bmc.com]
Sent: Tuesday, February 12, 2002 7:43 AM
To: Parks, Joe
Subject: Flows


In some of this morning's analysis w/r/t our discussion yesterday...

* The net EUR/$ equity flow is Euro supportive currently mainly due to US
buying in Euroland, the same is happening with US investors buying
Japan. Net government bond flows are also US$ bearish both with
Euroland and with Japan, the latter due to strong signs of Japanese
repatriation still.
*  All this backs up what seemed a peculiar weakening of the US$
yesterday. For the remainder of the year the big question for the Dollar is
will foreigners want to add to their holdings of US assets when they
already hold 11% of the US equity market, 21% of corporate bonds and
36% of the Treasury market?
* We know that the there is likely to be net FDI outflow from the US in
2003,
with our pipelines suggesting a net US$46.2bn pending outflow currently
the worst it has been for many years. It is noteworthy that FDI has funded
around a third of the US current account deficits over the last 3 years, as
important as, net equity inflow.




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