GMM 15 June 01

Please find attached the Global Markets Monitor for the week ending 15 June=
=20
2001.

Executive Summary=20

? US: Fed=01,s beige book reports cool results across the U.S. Lack of=20
inflationary pressures gives Fed wider maneuverability to cut rates at end =
of=20
the month. One Fed member says the economy is probably at or near the=20
bottom. Leader of a U.S. manufacturing organization (N.A.M.) says dollar=
=20
overvalued as much as 30 percent.=20
? Europe: ECB trims its forecasts for GDP growth and lifts its inflation=20
expectations. Euro continues to languish although it received a bounce=20
following anti-strong dollar comments by the U.S. N.A.M. Spain urged by t=
he=20
OECD to open its power sector to competition. =20
? UK: New minister for Europe dampens rumors of an expeditious adoption of=
=20
the euro in the U.K. =20
? Country Update - Brazil: Three principal causes for the present energy=20
crisis: limited investment, limited private sector participation, and=20
regulatory limitations to bringing on new power plants. Cardoso pledges t=
o=20
adhere to existing economic policy platform despite the energy crisis.=20

Thank you,
Maureen Raymond-Castaneda=20
and Gwyn Kopke