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Posted by BradyNet ( Thursday, October 23, '03 )

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GLOBAL MARKET HIGHLIGHTS

Texaco faces $1bn lawsuit 10-23-03 (BBC) A trial has begun in Ecuador's jungle town of Lago Agrio of the US oil giant ChevronTexaco, which is accused of polluting the country's rainforest and water resources.

States Try to Poach California Businesses 10-23-03 (Yahoo) PORTLAND, Ore. - With California roiled by the recall campaign and struggling to right its foundering economy, Oregon and other states are swooping in to try to lure some of its businesses away.

The secret of the permanent poor 10-23-03 (Yahoo) IT CAN BE the best of times or the worst of times, but whether in prosperity or recession, there is one constant in the U.S. economy: the richest country in the world maintains a permanent class of people who are poor.

Study: Factory Employment Falling World-Wide 10-22-03 (Yahoo) The U.S. manufacturing sector has gone through 38 grueling months of declining employment, but a new report shows that factory-job woes aren't just an American problem. From Brazil to Russia and yes, even to China, manufacturing jobs are disappearing around the globe.

Fast GDP Wont End Big Deficit 10-22-03 (Yahoo) Business seems to be getting better on Wall Street and even on Main Street. But will that ease federal and state budget deficits?

Analysts: Politics Wont Sway Fed in Election Year 10-22-03 (Yahoo) NEW YORK (Reuters) - The Federal Reserve (news - web sites) won't feel constrained by the upcoming presidential election next year if it believes higher interest rates are needed, but the economy is a long way yet from warranting a rate hike, analysts said.

U.S. Commerce Secretary Calm on Deficit 10-22-03 (Yahoo) BRUSSELS (Reuters) - U.S. Commerce Secretary Don Evans played down any worries over a burgeoning budget deficit on Friday, saying higher spending was sometimes justified, especially as the United States ran major military operations.

LATIN AMERICA

Ecuadoreans Sue U.S. Oil Firm Over Amazon Pollution 10-23-03 (Yahoo) LAGO AGRIO, Ecuador (Reuters) - Ecuadorean Indians wearing feathered headdresses and red face-paint marched outside a jungle courthouse on Tuesday at the start of a case accusing U.S. oil giant ChevronTexaco of polluting the Amazon.

U.S. Oil Co. Goes on Trial in Ecuador 10-22-03 (Yahoo) LAGO AGRIO, Ecuador - A decade after Texaco pulled out of the Amazon jungle, the U.S. petroleum giant went on trial Tuesday in a lawsuit filed on behalf of 30,000 poor Ecuadoreans who say the company's 20 years of drilling poisoned their homeland.

Argentine stocks hit all time high 10-22-03 (BBC) The leading stock market index in Argentina has hit its highest ever level since opening for business in 1986.

China Launches Satellite Developed with Brazil 10-22-03 (Yahoo) BEIJING (Reuters) - Less than a week after putting its first man into space, China launched a satellite on Tuesday jointly developed with Brazil to study the Earth's surface, the official Xinhua news agency said.

RUSSIA

New probe into Russian oil tycoon 10-22-03 (BBC) Russian state prosecutors have said they will interrogate oil tycoon Mikhail Khodorkovsky for a second time.

ASIA

Battle Lines Being Drawn for Philippine Election 10-23-03 (Yahoo) MANILA (Reuters) - With seven months until a ballot is cast, major players in the boisterous and colorful world of Philippine elections have started drawing up the battle lines.

AFRICA

Locust outbreak threatens Africa 10-22-03 (BBC) Crops in north Africa are under threat from swarms of locusts, says the UN Food and Agriculture Organization.

OIL PRICES

Oil firm escapes heavy penalties in Beverly Hills cancer case 10-23-03 (Yahoo) An oil company accused of contributing to a cancer cluster among former students of Beverly Hills High School, the training ground for some of Hollywood's most glamorous names,

Iraq oil watchdog formally established in UN deal 10-23-03 (Yahoo) UNITED NATIONS (AFP) - The oversight body to monitor the US-led coalition's handling of Iraqi oil money has been formally established, according to documents obtained by AFP.

Oil Firms Brave Safety Concerns in Iraq 10-22-03 (Yahoo) GENEVA - Lack of security is just one of the hurdles for foreign companies eager to explore for oil in Iraq (news - web sites).

Newest messages appear on top.

10-23-03 Fox: Bueenaasss!!

Nautilus pls define < L-Holding Co> is it Lux., Lich or something else?

thks

10-23-03 wally: <glut> please go to wiebel-board. there is a message for you.

10-23-03 optimist: Who said 5 yUST were not sexy at 3.4% :)) today they are at 3.23.. and still are a great buy..

10-23-03 nautilus: <Simpler, cheaper and safer alternative structure...suggestions welcome> Having had a close look to L-Holding Co. just recently I can confirm that there is nothing that beats it. The structure is guaranteed by ancient law just to attract direct investments in this tiny but safe country. No EU<topia> regulation was able to break it.

10-23-03 drjbg: The U.S. Senate just defeated (just barely) an effort to make class-action suits more difficult to win, with possible implications for any future ARG lawsuit in the U.S.. The bill could still pass the Senate if Republicans find one more vote.

From the New York Times:

"...Under the bill, class actions involving at least 100 plaintiffs and stakes of $5 million or more could be moved to federal court when the primary defendant and no more than one-third of the plaintiffs are from the same state. Cases would remain in state court when two-thirds of the plaintiffs are from the same state as the defendant. For cases that fall in between, judges would decide where the cases would be tried... "

10-23-03 Cheetah: (the one and only)

Advice !!!

can someone translate: are you bullish or bearish today or this morning...what type of upside down graphing techneek are you following now...

again that crazy technique that says GAPS ARE FILLED BEFORE THEY HAPPEN ???

Advice you have become the laughing stock at Pactual with your new grounbreaking technical analysis theory !!!

congrats !!!

10-23-03 Patient-Trader: WASHINGTON (AP) -- A former Navy attorney who helped lead the military investigation of the 1967 Israeli attack on the USS Liberty that killed 34 American servicemen says former President Lyndon Johnson and his defense secretary, Robert McNamara, ordered that the inquiry conclude the incident was an accident. ...

Israeli Embassy spokesman Mark Regev disputed any notion that Israel knowingly went after American sailors. ``I can say unequivocally that the Liberty tragedy was a terrible accident, that the Israeli pilots involved believed they were attacking an enemy ship,'' http://www.nytimes.com/aponline/nat...

Very interesting news. To those who are not familiar with the case: The USS Liberty was an espionage ship which floated off Egypt before and during the six-day-war. Apparently the Israelis were afraid that the US had learnt and would learn of Israeli massacres and attacked the ship. US servicemen on board who were waving US flags to identify themselves couldn't believe their eyes when Israeli planes made repeated bombing runs on their ship and even destroyed the rescue boats.

10-23-03 Patient-Trader: Bolivia, Oct. 22 � On a visit to the White House last year, President Gonzalo S�nchez de Lozada told President Bush that he would push ahead with a plan to eradicate coca but that he needed more money to ease the impact on farmers. Otherwise, the Bolivian president's advisers recalled him as saying, "I may be back here in a year, this time seeking political asylum."

Mr. Bush was amused, Bolivian officials recounted, told his visitor that all heads of state had tough problems and wished him good luck.

Now Mr. S�nchez de Lozada, Washington's most stalwart ally in South America, is living in exile in the United States after being toppled last week by a popular uprising http://www.nytimes.com/2003/10/23/i...

10-22-03 SPAL: Let's be generous and call the fund idea Spal's Folly from now on - you are encouraged to remind me of this! ... And colores need to know that we do have a surprisingly close knit and supportive network happening here [I will vouch for that]. Which is, I think, part of its charm and on reflection I don't think it jibes with the more calculating formality of say a "fund" ... no, its better and easier and I think wiser for me to keep on simply being SPAL with updates here on SchPAL's Schtocks ... and there's work to be done amigos ...

10-22-03 carib: More than a <fund> it would be like an investment pool with a manager, as shares will not offered to the public. One issue is to see if shares can be sold by a pool participant to a third party or only to other existing shareholders. Basically I would see it as a sort of drawer where people mostly invested in bonds put a small part of portfolio to be invested in voodoo shares, without need to get those funds back anytime soon, but the objective of getting back three times more in say five years time.

10-22-03 carib: <liquidity, redemptions> etc.... that IMHO can be tailor made. In the example I outlined, the investor has shares that can be sold to third parties or kept to increase capital value, and a bond that can pay a coupon or be a zero coup according to model selected, and can me made puttable or otherwise. Personally, I do not have particular preferences, but I would say a 3 to 5 year duration target, with the objective of producing a capital gain that can be in part distributed in the form of bond coupon, in part capitalized.

10-22-03 SPAL: <<Besides legal structure & things> it is important to define redemption periods, liquidity etc> claro. <... as Spalito will need to have a clear investment horizon to properly managed funds.> !!

10-22-03 SPAL: <MD has power to invest in certain kinds of securities, but no power to take funds from the accounts> perhaps simply appointed or contracted by said co. as the "Investment Advisor" with defined powers of attorney to pass a limited set of instructions to a third party brokerage account that clears co.'s investment activities etc.

<so far 2 emails and separately 2 others <Carib & Savo> expressing interest here > ...

10-22-03 Fox: Infobae:
<20:01 | De Vido: "Entre las privatizadas, prefiero las telef�nicas porque supieron generar ingresos m�s all� de las tarifas">

10-22-03 Fox: <SpalitoFund>

Besides legal structure & things it is important to define redemption periods, liquidity etc... as Spalito will need to have a clear investment horizon to properly managed funds.

10-22-03 Fox: Infobae:
<Repsol YPF prometi� al Ejecutivo inversiones por $2.200 millones

Lo asegur� el director ejecutivo de la petrolera, Ram�n Blanco, luego de un encuentro con el presidente Kirchner. Asimismo, asegur� que la compa��a se "mantendr�" en el pa�s y evit� polemizar por el tema tarifas. El consejero delegado de Repsol YPF, Ram�n Blanco, asegur� hoy en que la petrolera hispano-argentina no s�lo "mantendr�" sino que "incrementar�" sus inversiones en el pa�s sudamericano.

El directivo hizo estas afirmaciones luego de reunirse con el presidente argentino, N�stor Kirchner, y el ministro de Planificaci�n, Julio de Vido, en la sede del Gobierno de Buenos Aires.

"Vamos a continuar con nuestras inversiones en la Argentina, destinando este a�o 2.200 millones de pesos (766,5 millones de d�lares) s�lo a la exploraci�n y la producci�n" de hidrocarburos, afirm� en una rueda de prensa.

Blanco vincul� la decisi�n de la compa��a de "mantener e incrementar" el flujo inversor en Argentina a "las perspectivas de un crecimiento cercano al 7 por ciento" del Producto Interior Bruto (PIB) argentino en 2003.

Precis� que Repsol YPF explorar� "nuevas �reas" de explotaci�n "en la cuenca de la plataforma continental de las provincias de R�o Negro, Chubut, Santa Cruz y Tierra del Fuego", situadas en el sur argentino.

Adem�s, sostuvo que hay "avances" en la discusi�n con el Gobierno sobre la fijaci�n de un nuevo precio del gas a boca de pozo, aunque aclar� que esa modificaci�n tendr� un impacto "exiguo" sobre los clientes.

"El precio para uso residencial hay que analizarlo muy detenidamente para que sea eficiente para las compa��as" y al mismo tiempo no altere la "estabilidad social que se registra en estos d�as en Argentina", a�adi�.

Evitar las pol�micas
En otro orden, Blanco se desmarc� de la puja entre el Gobierno argentino y las empresas concesionarias de servicios p�blicos, que reclaman un alza de las tarifas congeladas por ley desde la devaluaci�n de enero de 2002.

"No nos gustan las pol�micas en los peri�dicos para establecer presi�n sino que buscamos encontrar puntos de encuentro para llegar a acuerdos v�lidos para las partes", se�al�. >

10-22-03 Fox: Ya que eramos pocos Pario la Abuela!!

<Wall Street sees blue skies for Venezuela's Chavez Reuters, 10.22.03, 11:47 AM ET.
NEW YORK (Reuters) - International investors are giving Venezuela a surprise vote of confidence, buying the nation's bonds with enthusiasm that could hardly have been imagined when leftist "revolutionary" Hugo Chavez won the presidency five years ago.

Since winning office in 1998, Chavez has sent shudders through Wall Street with his anti-capitalist diatribes. But when the rhetorical dust settles after each of his infamously long speeches, fund managers see a country flush with oil export revenue and a growing track record of expert debt management.

"Even though Venezuela bond prices have gone up a lot, they still have room to go," said Jose Cerritelli, a Bear Stearns debt strategist.

Should investors keep buying? "Absolutely," Cerritelli said.

The country's sovereign bond spreads, which measure the risk of default against safe-haven U.S. Treasuries, have tightened to the neighborhood of 760 basis points from 1,127 at the start of the year, outperforming the wider emerging debt market.

POLITICAL NOISE PERSISTS

Having failed to get rid of him in a botched 2002 coup, Chavez's opponents are organizing a recall referendum to kick him out of office California style.

"But the market's impression is that Chavez is not going anywhere," said David Rolley, emerging markets strategist at Loomis Sayles & Co. "There is a lot of skepticism that a referendum will be held."

Chavez, a populist former paratrooper who was jailed after leading a failed coup in 1992, revels in such predictions. When Fitch Ratings recently said he was likely to fight off the referendum and serve out his term, Chavez read a news agency account of the report during one of his weekly televised speeches.

His opponents say he's an inept authoritarian who takes after his friend Fidel Castro, the communist leader of Cuba. But Chavez's supporters, many of whom live in poor barrios long neglected by successive Venezuelan governments, characterize the opposition as elitists out to preserve their own privileges.

Venezuela is the world's No. 5 oil exporter. Its economy was devastated by a strike in December and January aimed at driving Chavez from office.

By coming to market with a series of successful debt issues aimed at extending the government's payment schedule, Venezuela has proven it can access the international capital markets when it needs to.

RISKS REMAIN

Investors worry about Venezuela's dependence on oil revenue, which accounts for about 70 percent of government revenue. They fret that a significant decline in world oil prices could blow Venezuela spreads back out again.

But even that fear is offset by the outlook for global oil consumption.

"Two years ago the Chinese made and sold 60,000 cars a month. This last month they made and sold 160,000 cars," Loomis Sayles' Rolley said. "China has seen the future and it looks a lot like Southern California to them. That's the argument why oil is not going to return to $18 per barrel."

Oil prices have hovered in the neighborhood of $30 per barrel in recent weeks.

Jim Barrineau of Alliance Capital Management agrees that Venezuelan bonds will probably continue to outperform. The country's total returns have risen 24.2 percent so far this year.

But he said risk remains that the president may revert to his populist instincts if the political pressure mounts.

"Chavez wants to spend a lot of money ahead of a possible referendum," said Barrineau. "So there is the risk that the government might issue a lot of dollar debt into the local market as a way of raising revenue. That could have a negative effect on spreads.">

10-22-03 Fox: < carib: Fox: S...t...I should not have sold BLX with a modest 700% profit... > Carib stop crying over profits!! So far you had an excellent year!!! IMHO BLX is as good as a bond it is no <Cucaracha>!! ;-))

10-22-03 Advice55: SPX will stop to acumulate there with a lack of sellers on the downside, and treasuries will sustain the bid longer.... IMO

10-22-03 Advice55: I think it is about to become clear for the market that msr Greenspan is on hold not only for the rest of this year, but for 2004 too....

BOOOOOMMMMMMM

10-22-03 Advice55: And my call on USA markets changed a little, still think buying bonds will do well, but would not short SPX any longer, think SPX will stop to acumulate there, or even rebound nice and slow....

10-22-03 Advice55: Foreign direct investment to Brazil might use this coutious move by the central bank and the better real level, to increase the flow to Brazil ahead....

Cause this is not the last rate reduction you will see this year, oh no, it is not......

10-22-03 Advice55: Brazil stocks ended the day oversold, on expectations that a very strong selling flow would arive tomorrow after copom reduced 1% in line with the market feeling.....

Shorts might get a surprise and they will have to cover fast, cause the flow to Brazil will continue and maybe increase, rates are going down, inflation is going down, and with the real above 2.80 Brazil is presenting some very strong trade balance surpluses....

10-22-03 Advice55: Copom, reduced 1% rates again.... Cautious move and I think market will like it, cause the cautious move was the best choice at this point and inflation will just melt down ahead and the real is about to get another bid ahead, as Brazil bonds as well...

This looks like the best central bank we ever had, and that is not a joke!

10-22-03 carib: SPAL: <as simply as possible> correct. Example: one sets up a Lux holding (that is a real, transparent corp with close to 0 tax) capital 500.000 E made by 100 shares of 5.000 E each. share holders elect board of directors, board appoints managing director. MD has power to invest in certain kinds of securities, but no power to take funds from the accounts, use them as collateral, make loans etc. Holding issues bond for 5.000.000 E, that is bought by shareholders, so account starts with 5.500.000 E to invest. Tax on the structure: 1.000 E per annum. Tax on cap gains: 0. tax on dividends: 0 (unless they are over 10% of capital) but irrelevant, because no dividends. Tax on bond coupons: 0. Simpler, cheaper and safer alternative structure...suggestions welcome.

10-22-03 SPAL: Stopped out of CORI today at $6.39 ... my initial read of today's earnings report indicate that it may weaken on the open tommorrow ... will look closer.

10-22-03 SPAL: Yes <Only requirements: structured> as simply as possible <in a way that makes shareholders feel fraud-safe ... and produce nice cap gains... > of course ...

10-22-03 Advice55: Tomorrow, SPX probably will rebound.... Treasuries on the ohter hand will stay well bid....

TCP lovers, our time is coming!

Vivo faz �ltima chamada
para os seus minorit�rios

Os minorit�rios das empresasintegrantes da Vivo n�o perdem por esperar.Mesmo antes de concluir a barulhenta recompra dea��es da Tele Centro-Oeste,a companhia vai dar in�cioa uma opera��o que promete um alvoro�o ainda maior: a consolida��o das suas demais empresas de telefonia celular. A Vivo est� se preparando para colocar o projeto na rua j� no primeiro trimestre de 2004. O modelo,que promete criar atritos com os minorit�rios denorte a sul, est� praticamenteselado. A companhia dever� propor aos acionistas da CRT Participa��es, da Tele Sudeste Celular Participa��es e da Tele Leste Celular Participa��es a troca de seus t�tulos por pap�isda Telesp Celular, a exemplodo que ocorreu na TCO.A principal candidata a puxar a fila do fechamento de capital � a CRT. Entre assubsidi�rias da Vivo, � a empres a quem tem o maior freefloat: mais de 40% das a��es est�o em Bolsa.Uma das principais evid�ncias de que a recompra est� a caminho � a atitude profil�tica adotada pela Vivo. Discretamente, o grup oib�rico estaria mantendo contatos preliminares com a Previ. O alvo espec�fico � a Tele Leste Celular,da qual a funda��o � acionist aminorit�ria. A inten��ode portugueses e espanh�is� evitar � ou aomenos reduzir � os problema sverificados na recomprade a��es da TCO � afunda��o, s�cia da companhia,n�o aceitou a ofertafeita pela Vivo. Com a mesma preocupa��o, portuguesese espanh�is tamb�m j�teriam mantido entendimentos com dois grandes bancosde investimento, donos de um expressivo lote dea��es da Tele Sudeste. Ates que algu�m enxergue algum procedimento pouco ortodoxo nas negocia��es em separado com os minorit�rios,� bom que se diga:pegando-se a lei ao p� daletra, a Vivo est� andandonos trilhos. Desde que a empresa ofere�a o mesm ovalor a todos os acionistas de suas empresas, n�o h� nada de irregular na atitude.

10-22-03 carib: SPAL: I do not think the <tax> issue should be an issue: Offshore (or CH LUX) based, 0 tax, not publicly traded, no bureaucracy etc. Only requirements: structured in a way that makes shareholders feel fraud-safe...and produce nice cap gains...

10-22-03 SPAL: < 10-22-03 carib: SPAL: no problem buying some quotas of your fund... > OK - let's see if there is sufficient interest - then we'll think of an appropriate structure to suit "tax" needs etc.

10-22-03 moneypenny: Comfort food arriving for Danni...

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