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Enron Mail |
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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