Millennial fears may prove justified abroad

Article Abstract:

There are fears of the impact of the year 2000 computer transition problem, but United Kingdom brokers regulated by the Securities and Futures Authority (SFA) are likely to be compliant. The SFA has asked for details on a number of areas such as problems firms have identified, and standby arrangements should failures arise. Most UK companies are likely to be able to operate if the dealing system for the London Stock Exchange functions. The main markets in Europe and the US are likely to be free of problems, but there could be problems elsewhere, especially in emerging markets.

United Kingdom, Year 2000 transition (Computers)

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Global equities: dollar the key

Article Abstract:

World financial markets are likely to be affected by the value of the US dollar in relation to the Japanese yen, according to Nomura's Nick Knight. A stable relationship between the two currencies would help Wall Street, but the dollar is more likely to drop due to the US trade deficit. A drop would create inflationary pressures which would affect both bonds and shares. Asian equities are unlikely to be affected since foreign investors have hardly been involved in Asian markets in 1995. Gold could benefit from currency instability.

Dollar (United States)

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Global strategy: more difficult

Article Abstract:

Morgan Stanley's Barton Biggs sees the appropriate asset allocation for investors in 1996 is to prefer Asian equities and to be underweight in US stocks. He sees a revival in the Japanese, German and US economies in 1996 which could affect investors if interest rates and inflation rise. Speculative bubbles could be affected by a rise in US interest rates, but this should not affect the world market as a whole. The Japanese yen is likely to be weak and the US dollar is likely to move upwards.

Interest rates

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