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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 ...