The view is still muddy as the weekend summit in Japan promised much but delivered very little. At the end of the day the press statements were more expressions of hope than anything else that the Japanese would regularise the banking sector, stimulate demand-led growth and work towards a stronger yen. Regularising the banking sector is not going to be easy many banks have been downgraded and merger rumours are rife. In the meantime the Long Term Credit Bank (itself the subject of intense speculation over the weekend) is to categorise loans into three types unrecoverable, difficult to recover and recoverable! You kind of hope that a lot fall into the "recoverable" area, but who knows?
There was some recovery in building and other stocks as traders decided that the latest demand-leading efforts might have more effect than some of the government's past endeavours. But it seems that actual plans may not be presented until after the Upper House elections on July 12th and the markets are probably in for a continuing bumpy ride.
Meanwhile, Sakakibara and Tanami are committed to intervening to support the yen if necessary at least with support from the US this is a more feasible prospect than before.
Still, the Asian situation is a mess and the troubles of the whole region were highlighted by the World Bank which commented that recent events would lead to 20 million Indonesians losing their jobs while 50 million face a return to poverty.
All of which underlines that, in the good times, governments must make certain that they are maintaining the sound foundation of the economy and not getting carried away by a seemingly invincible Tiger.
Other markets are having a bumpy ride too. After an initial start with surprisingly few red or yellow cards, the bookings market in the World Cup has suddenly taken off. People who were short red cards were scrambling to cut their positions as cards were suddenly flying around like confetti and players (who were going for the ball, absolutely!) marched grimly back to the dressing-rooms. I haven't seen much betting on different coloured boots in a match but I'm sure the Jamaicans must have given that market a boost they brought a very colourful yellow and red footwear as well as the more boring black to their contest with Argentina. Long Jamaican footwear and short Jamaican goals was the way to be for that one.
Glad to report that the Netherlands (on whom you may remember I have a small but telling wager) managed to whop South Korea 5-0 which won't do much to stimulate demand-led growth of team jerseys back in South Korea I'm afraid but made me feel happy.
Lots of betting around for Wimbledon too but I am staying clear of that particular market as I am the kiss of death to any player I back. I never seem to get it right. Tickets would be nice but, given that the one and only time I made it to Wimbledon it rained, the organisers would probably prefer I stayed away. At least I managed to miss the day when Cliff Richard gave his concert. There are some things that are asking too much from anyone.
Harvey Nichols probably has mixed feelings about my visit there too. No problem with the purchases (all safely stacked away on the credit card) but if I'd gone before the end of March then my goodies would have helped their turnover for the year grow even more. Turnover to March was up 12.5 per cent according to their figures released on Monday and their operating profit is up 16.8 per cent. Well, I'm not surprised with the prices they're charging! If you remember, though, I said that it was impossible to eat in the sushi bar this is because it is, apparently, the star in their crown. It's referred to in their statement as the "highly successful sushi concession" well, obviously it is if you can't get in but, quite honestly, I'd try the nifty little sandwich and wine bar across the road again much better.
Anyway those increased profits are, no doubt, a welcome relief to its parent company, the Hong Kong-based Dickson Concepts International which, given the state of consumer demand there, is probably considering adding more eating space to the fifth floor cafe.
Meanwhile, at home, I see that there has been a 29 per cent increase in exports versus first quarter 1997 and of this, exports of organic chemicals have gone up 61 per cent. This is, apparently, due to demand for Viagra. What can I say about Viagra that hasn't been said already? Except that I never knew there were so many impotent men in the universe. Correct me if I'm wrong, but I thought that this wonder drug was of no benefit to well normally functioning men. So how come all these guys are just striding into the chemist and are quite happy to announce that they need this blue pill? Who are they? I know I've been accused of being unjust to the other sex in this column from time to time but, honestly, only a bloke could make a sexual problem into something to be proud of!
I believe prescriptions for Viagra are available over the Internet, but could I suggest that you put it to more profitable use and have a look at the NCB Website which offers Ireland's first online dealing service. From time to time people have rung me up and asked about share dealing and market information now, if you go to www.ncbdirect.com you can deal online, view a portfolio valuation and access our latest research, all from the comfort of your own home. We've had a huge hit rate so far and the comments have been very favourable, so give it a try and see what you think. It's got just about everything to give you a headstart in financial markets. But we don't do sushi and we don't do Viagra. Sorry, but you can't have everything.
Sheila O'Flanagan is a fixed-income specialist at NCB Stockbrokers
