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THE ECONOMY.(TO THE POINT)

Investor's Business Daily

| October 01, 2002 | COPYRIGHT 2002 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Japan Cabinet shuffle lifts hopes

Prime Minister Junichiro Koizumi gave his pro-reform economics minister, Heizo Takenaka, the added role of top financial regulator, ousting a minister seen as an obstacle to changes. Koizumi acted to erase concerns over a split in his Cabinet, which he said will work with the Bank of Japan to address at least $424 bil in bad loans held by banks.

Brazil election fears hit markets

Brazil stocks hit four-year lows after weekend polls showed leftist presidential candidate Luiz Inacio Lula da Silva sailing to victory Oct. 6. Lula's support rose to 40.6% in a poll released Monday, with government-backed candidate Jose Serra trailing badly with 18.8%. Investors are concerned Lula will default on Brazil's $250 bil debt.

New York economy slows further

The New York City economy slowed for a fourth straight month in September on a pullback in manufacturing, the National Association of Purchasing Management-New York said. Another likely round of investment banking layoffs and the prospect of smaller year-end Wall Street bonuses "are producing a distinct chill in the city's business climate," the group said.

** Real estate will beat the stock market over the next three years, say 45% of 400 ...

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