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Enron Mail |
UK: Enron threatens double hit to credit tool market.
Reuters English News Service, 11/29/01 UK: Enron Europe splits from U.S. parent. Reuters English News Service, 11/29/01 USA: UPDATE 1-Enron may not pay previously declared dividends. Reuters English News Service, 11/29/01 USA: U.S. stocks set to open flat to a little up. Reuters English News Service, 11/29/01 UK: Enron Europe not seen in default on energy trade. Reuters English News Service, 11/29/01 USA: UPDATE 1-Enron may not pay previously declared dividends. Reuters English News Service, 11/29/01 UK: Enron says EnronOnline switched back on. Reuters English News Service, 11/29/01 USA: Dominion says Enron credit exposure $11 mln. Reuters English News Service, 11/29/01 Analyst: Enron To Have Minimal Material Impact On Brokers Dow Jones News Service, 11/29/01 Enron's Demise Leaves Counterparties With Tough Choices Dow Jones International News, 11/29/01 Enron-Dynegy Merger Collapse Roils Europe's Power Mkts Dow Jones Energy Service, 11/29/01 USA: Enron shares fall anew, trading partners also down. Reuters English News Service, 11/29/01 REPEAT: Enron Bankruptcy May Lead To Losing Brazil Assets Dow Jones International News, 11/29/01 S&P 500 To Drop Enron At Close; Replaced By Nvidia Dow Jones News Service, 11/29/01 IntercontinentalExchange Volume Rises 65% Vs. Month Ago Dow Jones Energy Service, 11/29/01 Duke Energy Halts Trading With Enron Dow Jones News Service, 11/29/01 Northern Border/Enron -2: Pipeline Has 2.8% Rev Exposure Dow Jones Energy Service, 11/29/01 Fall Of Enron Rattling Nordic Electricity Market Dow Jones International News, 11/29/01 Enron's Demise Leaves Counterparties With Tough Choices Dow Jones International News, 11/29/01 Europe Fin Services Cos To Take Small Hit From Enron Dow Jones International News, 11/29/01 Dollar Under Pressure on U.S. Economic Woes, Enron Situation Dow Jones Business News, 11/29/01 Electrabel Says Exposure To Enron "Insignificant" Dow Jones International News, 11/29/01 Duke Energy Confident Energy Sector Will Remain Strong; Halts Trading With = Enron PR Newswire, 11/29/01 Dominion Reports That Enron Exposure Not Expected To Affect Earnings Foreca= st Business Wire, 11/29/01 S&P Lwrs Rtg on Yosemite's 2000-A Linked Enron Notes Business Wire, 11/29/01 Northern Border Partners Reassures Investors Regarding Enron Exposure PR Newswire, 11/29/01 UK: Enron threatens double hit to credit tool market. By Tom Bergin 11/29/2001 Reuters English News Service (C) Reuters Limited 2001. LONDON, Nov 29 (Reuters) - The credit derivatives market faced a double thr= eat from troubled U.S. energy trader Enron on Thursday, leaving dealers div= ided on whether the rapid growth of the market might be at risk.=20 Enron's troubles impact the market through credit derivatives contracts wri= tten on the company, which would be triggered if it files for bankruptcy pr= otection, and through deals transacted by its Enron Credit subsidiary, whic= h specialised in trading credit protection on third parties. Credit derivatives are insurance-like tools that allow investors to hedge o= r gain the risk of an issuer defaulting on a loan or bond. Default swaps, t= he most liquid type of credit derivative, involve the buyer paying the prot= ection seller an annual premium, measured in basis points.=20 Accountants PriceWaterhouseCoopers said they had been appointed administrat= or to Enron's European division on Thursday. Some dealers predicted that if= Enron goes under, the credit derivative contracts on Enron and entered int= o by Enron would be unwound in an orderly way.=20 "It will be another good example of how the market does work... it will reg= ain people's confidence in the market," said Guy America, vice president fo= r credit derivatives at J.P. Morgan Chase in London.=20 IMAGE PROBLEM=20 However, other dealers predicted a messy conclusion.=20 "The impact is clearly a loss of confidence in the credit derivative market= overall," said a default swaps trader with a European bank.=20 The most recent corporate failure to trigger a large number of default swap= s, that of U.K. rail operator Railtrack , resulted in banks calling in lawy= ers to see if they had to pay out on certain obligations.=20 Dealers said Enron was an actively traded name in the default swaps market,= mainly in New York. As a privately negotiated market, it is difficult to g= et accurate figures for the value of contracts outstanding on Enron, howeve= r, dealers said well over a billion dollars of protection on Enron had been= written.=20 "(It was) one of the benchmark names for the US credit (derivative market).= ..so you can guess that a lot of people were involved in this credit throug= h default swaps," said the European bank trader.=20 UNCERTAIN CREDIT INSURANCE=20 Potentially more damaging for the credit derivatives market is the failure = of Enron Credit. The subsidiary specialised in selling credit risk mitigati= on tools to companies who wanted to hedge against customers going bankrupt = and failing to pay.=20 If end-users now find the derivatives they bought no longer give them the l= evel of credit protection they expected, it may make it harder for banks in= future to convince more of their customers to start using the tools.=20 On the back of demand from end-users, Enron credit was active in the inter-= dealer default swaps market. A filing for bankruptcy by Enron Corp. could t= rigger settlement on all the contracts into which Enron Credit entered.=20 This would involve a large number of contracts and dealers say this would b= e concentrated among the limited circle of banks, mainly Enron Corp.s bank = lenders, which accepted Enron Credit as a dealing counterparty.=20 "It was not broadly accepted as a counterparty," said one dealer, who added= that he hadn't seen the firm in the market since October.=20 LENDERS FACE BIGGEST LOSS=20 However, most dealers concur that any losses the banks might incur on credi= t derivatives contracts would be small compared to potential lending losses= .=20 "Counterparty losses would be dwarfed by direct lending exposure," said the= head of credit derivatives at a Euroepan bank.=20 Dealers said some banks had looked at taking on the Enron Credit trading bo= ok but that this now looked unlikely.=20 "The banks that were involved in trying to rescue the bank recently..were a= lso involved in overlooking their credit book and potentially making a bid = to take it into their own book," said one trader.=20 Shares in Enron fell 85 percent to 61 cents after a rescue deal by smaller = rival Dynegy Inc fell apart on Wednesday. On Thursday the company said it m= ay not pay previously declared dividends. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 UK: Enron Europe splits from U.S. parent. 11/29/2001 Reuters English News Service (C) Reuters Limited 2001. LONDON, Nov 29 (Reuters) - Enron's European business said on Thursday it ha= s been operating separately from its U.S. parent company since Wednesday wh= en headquarters in Houston stopped cash tranfers to the European trading bu= siness.=20 Accountants PricewaterhouseCoopers in London were appointed administrators = on Thursday to the European operation of crisis-hit Enron. "Effectively London is operating separately. The European operation gets ca= sh from Houston to trade - they stopped giving us cash yesterday," said an = Enron Europe spokesman.=20 He said the administration order covered mainly the European wholesale trad= ing business which is based in London.=20 It does not cover seven separate businesses belonging to Enron in the UK, i= ncluding the Teesside power station and regional water utility Wessex Water= , as well as Enron's European assets. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 USA: UPDATE 1-Enron may not pay previously declared dividends. 11/29/2001 Reuters English News Service (C) Reuters Limited 2001. HOUSTON, Nov 29 (Reuters) - Beleaguered energy trader Enron Corp. said on T= hursday it might not pay previously declared dividends on its various stock= issues, in an effort to preserve the value of its core trading and marketi= ng business.=20 Houston-based Enron said the dividends in question are those on its common = stock, cumulative second preferred convertible stock, Enron Capital LLC 8 p= ercent cumulative guaranteed monthly income preferred shares, and Enron Cap= ital Resources LP series A 9 percent cumulative preferred securities. Enron shares closed at a new low of 61 cents on the New York Stock Exchange= in trading on Wednesday, the same day that hometown rival Dynegy Inc. deci= ded to walk away from its planned purchase of the company.=20 The major credit rating agencies slashed their ratings on Enron's bonds to = junk status, also on Wednesday, triggering expectations that Enron would be= forced into bankruptcy. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 USA: U.S. stocks set to open flat to a little up. By Haitham Haddadin 11/29/2001 Reuters English News Service (C) Reuters Limited 2001. NEW YORK, Nov 29 (Reuters) - Stocks are set to open flat to slightly higher= on Thursday following some upbeat corporate outlooks, but mixed economic d= ata and the aftermath of the near-collapse of energy trader Enron Corp. cou= ld affect trading.=20 Enron , teetering on the brink of one of the biggest corporate implosions i= n U.S. history, plunged 85 percent in frenzied trading Wednesday. It dragge= d on the market as investors also sold amid worry that a rally from Sept. 2= 1 lows reached in the wake of the attacks on the United States was overdone= . "The Enron collapse may have significant ramifications on banks and other e= nergy companies where contracts with Enron may now not be honored. And the = Enron equity may be worthless," said Alan Ackerman, market strategist with = brokerage Fahnestock & Co.=20 Equity index futures were up but at one point off earlier highs after the r= elease of data at 8.30 a.m. (1330 GMT) that showed a rise in jobless claims= but also a rise in durable goods orders.=20 "There was a mixed response. We saw an encouraging number in the durable go= ods but it's too early to see this as a sustained trend up and layoffs cont= inue to be a real concern," Ackerman added.=20 The number of Americans lining up for first-time jobless benefits rose by 5= 4,000 last week, exceeding Wall Street expectations and showed continued we= akening in the U.S. labor market. The data showed the number of so-called c= ontinued claims rose by 301,000 to 4.02 million for the week ended Nov. 17,= the biggest one-week increase in 27 years.=20 Orders for costly U.S. durable goods surged at the fastest rate on record i= n October by 12.8 percent to $184.8 billion, led by huge increases in order= s for aircraft and defense capital goods. The data may help rekindle hopes = that the economy has rebounded since the Sept. 11 attacks.=20 Equity index futures suggested a largely flat to slightly higher open. Dece= mber futures for the S&P 500 index rose 1.70 points to 1,130.80 while futur= es for the Nasdaq 100 added 8 points to 1,567. Futures for the Dow Jones in= dustrials gained 7 points at 9,720.=20 Other indicators flagged a mildly higher open. The indicative Dow Jones ind= ustrial average , which is based on prices of Dow stocks trading in Germany= 's Deutsche Boerse U.S. market segment, rose 45.95 points, or 0.47 percent,= to 9,757.81.=20 The Nasdaq-100 premarket indicator was up 9.2 points, or 0.59 percent, base= d on trading ahead of the open in the tech-heavy index's biggest stocks.=20 Hand-held computer maker Palm Inc. rose in extended-hours trading on Wednes= day and pre-open trade on Thursday after the company said it expects to mee= t estimates. Palm rose to $3.7 pre-open from its Nasdaq close of $3.41.=20 Storage networking company Brocade Communications Systems Inc. rose to $30.= 30 ahead of the open from a close at $28.82. The company reported quarterly= operating profits fell sharply as the slower economy kept many corporate b= uyers on the sidelines, although the results beat Wall Street forecasts.=20 Enron, which finished at 61 cents on Wednesday, was a little higher in pre-= open trading, at 69 cents. Enron sank Wednesday after rival Dynegy Inc. pul= led out of its planned $9 billion takeover of the beleaguered energy trader= . Credit rating agencies slashed Enron's bonds to junk status and shoved th= e once mighty company another step closer to bankruptcy.=20 Enron squeezed other energy traders and financial giants Citigroup Inc. and= JP Morgan Chase & Co. Inc. , which may suffer losses of more than $400 mil= lion combined on their lending to the energy trading group, according to at= least one analyst.=20 On Wednesday, the blue-chip Dow Jones industrial average surrendered 160.74= points, or 1.63 percent, to 9,711.86, the largest drop in about a month an= d the lowest close since Nov. 12. The broader Standard & Poor's 500 Index s= lid 20.98 points, or 1.83 percent, to 1,128.52. The technology-laced Nasdaq= Composite Index dropped 48 points, or 2.48 percent, to 1,887.97.=20 In other pre-open activity, software provider FreeMarkets Inc. rose after r= aising its quarterly revenue and profit outlook after several large custome= rs renewed long-term contracts. Shares rose to $16.20 from a close of $13.5= 9.=20 H&R Block Inc. , the No. 1 U.S. tax preparer, rose to $37.25 on the Instine= t trading system after closing at $36 on the New York Stock Exchange. The c= ompany raised its profit forecasts for the current fiscal year as its secon= d-quarter loss narrowed, helped by new accounting rules and strong mortgage= business performance. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 UK: Enron Europe not seen in default on energy trade. By Raj Rajendran 11/29/2001 Reuters English News Service (C) Reuters Limited 2001. LONDON, Nov 29 (Reuters) - Beleaguered U.S. energy trader Enron so far has = not defaulted on any of its over-the-counter energy swap contracts in Europ= e, dealers said on Thursday. But many in the trading community have arrange= d alternative trades to cover their exposure as news emerged that Enron had= sought protection from its creditors and appointed accountant Pricewaterho= useCoopers as administrator.=20 Enron stands on the brink of bankruptcy after a rescue deal with its smalle= r rival Dynegy fell apart on Wednesday. The company halted trading on its E= nronOnline platform on the same day. "They haven't had any defaults yet. But nobody's trading with them at the m= oment," a dealer at a major oil company which had trading links with Enron = said.=20 Dealers said Enron had been missing from the European oil OTC market for ov= er a week and many companies had stopped trading with them a month ago as s= igns emerged of financial difficulties at America's largest energy trader.= =20 In the oil market, Enron's trading activities extended right across the pet= roleum product chain as well as various Brent crude derivatives contracts.= =20 They said the Dated to front line (DFL) Brent contract, which balances the = risk of Dated Brent against the front-month IPE futures contract, had seen = substantial activity on Thursday amid speculation that some players had mov= ed to square off their positions against exposures to Enron.=20 "It's a case of closing up positions," a Brent trader said.=20 Dealers said Enron was believed to have closed positions on London's Intern= ational Petroleum Exchange. The IPE declined comment.=20 The dealers said a shortlived price spike late on Wednesday on IPE and NYME= X crude oil and NYMEX natural gas futures markets suggested a brief session= of short covering.=20 "There was a short spell when the natural gas market was strengthening and = WTI moved up. One broker was doing most of the buying and most people thoug= ht he was covering for Enron. But the market came straight back down," said= one futures dealer.=20 An spokeswoman for the IPE said its compliance department was looking at En= ron's positions on the market and had been talking with financial services = authority and clearing house.=20 "We will be able to maintain the integrity of the market," the spokeswoman = said.=20 (With additional reporting by Jonathan Leff). Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 USA: UPDATE 1-Enron may not pay previously declared dividends. 11/29/2001 Reuters English News Service (C) Reuters Limited 2001. HOUSTON, Nov 29 (Reuters) - Beleaguered energy trader Enron Corp. said on T= hursday it might not pay previously declared dividends on its various stock= issues, in an effort to preserve the value of its core trading and marketi= ng business.=20 Houston-based Enron said the dividends in question are those on its common = stock, cumulative second preferred convertible stock, Enron Capital LLC 8 p= ercent cumulative guaranteed monthly income preferred shares, and Enron Cap= ital Resources LP series A 9 percent cumulative preferred securities. Enron shares closed at a new low of 61 cents on the New York Stock Exchange= in trading on Wednesday, the same day that hometown rival Dynegy Inc. deci= ded to walk away from its planned purchase of the company.=20 The major credit rating agencies slashed their ratings on Enron's bonds to = junk status, also on Wednesday, triggering expectations that Enron would be= forced into bankruptcy. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 UK: Enron says EnronOnline switched back on. 11/29/2001 Reuters English News Service (C) Reuters Limited 2001. LONDON, Nov 29 (Reuters) - Enron Metals Ltd, the metals trading arm of U.S.= energy trader Enron Corp , said on Thursday that its EnronOnline screen-ba= sed trading system was switched back on after shutting down on Wednesday ev= ening.=20 "EnronOnline Metals is definitely up and running," a senior official at Enr= on Metals said. "It was switched on around nine thirty or 10 o'clock (0930 or 1000 GMT) thi= s morning," he said. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 USA: Dominion says Enron credit exposure $11 mln. 11/29/2001 Reuters English News Service (C) Reuters Limited 2001. NEW YORK, Nov 29 (Reuters) - Dominion Resources Inc. on Thursday said its p= ast credit exposure to trading partner Enron Corp. , which is teetering on = the brink of bankruptcy, is less than $11 million and current trading expos= ure is less than 5 percent of earnings.=20 The Virginia-based natural gas and power producer also reaffirmed its earni= ngs for this year at $4.15 per share or better, $4.90 to $4.95 in 2002 and = 10 percent annual earnings growth after 2002. Dominion earned $334 million, or $1.37 per share, in the third quarter of 2= 001, with its independent power and natural gas subsidiary posting profits = of $288 million.=20 Shares of Dominion fell 5 cents at $58.50 Thursday on the New York Stock Ex= change. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Analyst: Enron To Have Minimal Material Impact On Brokers By Chad Bray Of DOW JONES NEWSWIRES 11/29/2001 Dow Jones News Service (Copyright © 2001, Dow Jones & Company, Inc.) NEW YORK -(Dow Jones)- Salomon Smith Barney analyst Guy Moszkowski said the= troubles at Enron Corp. (ENE) will not have a material impact on brokerage= firms' credit and counterparty energy trading exposure.=20 In a research note Thursday, Moszkowski said the credit exposure to Enron a= mong the larger securities firms - Morgan Stanley (MWD), Merrill Lynch & Co= . (MER), Goldman Sachs Group Inc. (GS), Bear Stearns Cos. (BSC) and Lehman = Brothers Holdings Inc. (LEH) - is minimal and is largely hedged where it ex= ists. Among the larger brokers, only Morgan Stanley and Goldman Sachs have "meani= ngful" operations in energy trading, Moszkowski said.=20 "Against the backdrop of significantly improved risk management procedures = in the industry, we believe exposure to Enron has been curtailed for some t= ime now, particularly as concern regarding the firm's credit worthiness is = hardly a new development," Moszkowski said. "However, given the sophisticat= ion and complexity of energy contracts, we believe it is fair to assume the= re will be some - albeit likely limited and, ultimately, immaterial - count= erparty exposure at both Goldman Sachs and Morgan Stanley."=20 In a research note Wednesday, Goldman Sachs analyst Richard Strauss said Ci= tigroup Inc. (C) - Salomon Smith Barney's parent - and J.P. Morgan Chase & = Co. (JPM) could have a total exposure of about $800 million to Enron, inclu= ding derivatives and secured lending. Total unsecured lending would amount = to about $270 million, or 8% of the total amount syndicated, he said.=20 Strauss said the Enron mess will likely cost Citigroup and J.P. Morgan Chas= e about 5 cents a share and 10 cents a share, respectively.=20 -By Chad Bray, Dow Jones Newswires; 201-938-5293; chad.bray@dowjones.com Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Enron's Demise Leaves Counterparties With Tough Choices By Sarah Spikes Of DOW JONES NEWSWIRES 11/29/2001 Dow Jones International News (Copyright © 2001, Dow Jones & Company, Inc.) LONDON -(Dow Jones)- U.S. energy giant Enron Corp.'s (ENE) financial troubl= es have left counterparties with difficult choices.=20 Enron's significant trading presence in the U.K. electricity market means t= here are many trading partners who are counterparties in deals with a compa= ny that looks bound for bankruptcy. Since Enron revealed a $1.2 billion reduction in shareholder equity last mo= nth related to controversial transactions with entities connected to former= Chief Financial Officer Andrew Fastow, the company has taken a nosedive th= at was only momentarily relieved when it looked as if Dynegy might step in = and rescue the company.=20 Most trading partners were quick to stop trading forward with Enron, althou= gh some continued, and almost all U.K. companies have some exposure to Enro= n. Several also continued trading short term contracts.=20 With the company as it is, there are two options for counterparties.=20 They can wait, anticipating that Enron will go bust, and then terminate con= tracts, or try to invoke a controversial clause in their contracts and get = Enron to put up more collateral.=20 An apparently much less likely option would be to sit tight and hope that a= nother buyer for Enron steps in.=20 Of course, terminating contracts doesn't guarantee payment. While Enron app= ears to have plenty of assets that could be sold to pay off its debts, the = company's record of inaccurate earnings reporting sheds doubt on the value = of its assets as well.=20 Terminating parties would be reimbursed, or charged, based on a marked-to-m= arket value of their contracts.=20 U.K. power prices have declined sharply since the introduction of the New E= lectricity Trading Arrangements in March, so parties with majority selling = positions through Enron would suffer financial losses when they had to rese= ll their power for a lower figure. But had they bought through Enron, they = would be able to source the same power for less money on the U.K. market to= day.=20 However, the immediate future of power prices is uncertain, making it diffi= cult to know exactly which contracts will be in or out of the money. In Aug= ust, just five months after the introduction of the New Electricity Trading= Arrangements, the Office of Gas and Electricity Markets announced that who= lesale power prices were down substantially and that price volatility on th= e balancing market had all but stopped.=20 But this has changed with the onset of colder weather, after one of the war= mest Octobers in recent history led to some complacency. The cost of having= to cover a short position has been spiking to well above GBP300/MWh routin= ely, and prices on the power exchanges have soared for peak time periods.= =20 The National Grid has also recently issued several warnings regarding a sys= tem shortfall during peak hours.=20 The second option open to Enron's trading partners involves trying to invok= e a muddied clause in the standard U.K. power-trading contract - the materi= al adverse change, or MAC, clause.=20 Asserting that the downgrade of Enron's debt to non-investment grade status= clearly calls the security of their contracts into question, they may be a= ble get Enron to put up more collateral in support of the contracts.=20 Before the downgrade, it might have been tough to invoke this clause, but i= t's now a possible option.=20 -By Sarah Spikes, Dow Jones Newswires; (+44 20) 7842 9345; sarah.spikesdowj= ones.com Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Enron-Dynegy Merger Collapse Roils Europe's Power Mkts By Sarah Wachter Of DOW JONES NEWSWIRES 11/29/2001 Dow Jones Energy Service (Copyright © 2001, Dow Jones & Company, Inc.) PARIS -(Dow Jones)- Amid news that Enron Corp. (ENE) will spin off its Euro= pean operations, the collapse of a buyout from Dynegy Inc. (DYN) touched of= f a bout of volatile, frantic buying in European power markets Thursday, pr= ompting questions about financial liabilities for the region's power compan= ies if Enron declares bankruptcy.=20 "There was panic this morning," a European power trader said, with frenzied= activity in Germany, Europe's largest power market. Prices for the most im= portant long-term German contract - full-year electricity in 2002 - moved a= full EUR0.40 up and down from one deal to the next. The yield curve streng= thened as much as EUR0.20 cents sheerly due to Enron's troubles, even while= electricity prices dropped, as buyers scurried to close out positions. Tra= de was eerily quiet in the rest of the forwards market. By midday, the Nord Pool Power Exchange, market operator for the Nordic reg= ion, excluded Enron from trading and clearing financial contracts for the f= irm's Scandinavian arm, Enron Nordic Energy, which had failed to post margi= n requirements. The UKPX followed shortly thereafter, and suspended Enron's= trading rights.=20 Otherwise it was business as usual on other European electricity exchanges,= which offer the security of clearing and settlement. German bourses in Lei= pzig and Frankfurt, the LPX and EEX, and the Netherlands' Amsterdam Power E= xchange continued to allow Enron to trade Thursday in the spot electricity = market.=20 It's a steep fall for the once-mighty Enron in Europe, said to account for = as much as 20% of all power trades in the region. Enron built up its Europe= an book through an aggressive push in the region, challenging regulations a= nd filing lawsuits to pry open the region's notoriously slow-to-deregulate = power markets.=20 Also midday Thursday, consultancy PriceWaterhouseCoopers said they will adm= inistrate a split of Enron's European operations, but won't be responsible = for the energy sales branch. Enron traders - considered among the best and = the brightest in the industry - will be prize assets to be snapped up by ot= her European trading houses, which are still expanding, as European power m= arkets are poised for full market deregulation in coming years.=20 Many now wonder who will now fill the breach and continue to press for much= -needed reforms.=20 "Enron was one of the few progressive companies promoting the trading busin= ess," said Katrin Duerwald, an analyst with Germany's HEW Trading AG. "Cont= inental power companies are conservative, and it's possible we'll enter a p= eriod of consolidation now."=20 Others wonder whether such a big counterparty can be replaced, and whether = Europe's nascent power markets may experience a downturn in activity.=20 "Markets will probably dry up a bit. It will be more difficult for companie= s to trade. It isn't completely obvious to me that these guys will be able = to have such an active market without Enron," said Vincent Gilles, utilitie= s research head for UBS Warburg.=20 European power companies rushed Thursday morning to issue statements that t= heir liabilities to Enron were limited, but analysts remain uncertain what = the true long-term liabilities will be, if Enron declares bankruptcy.=20 Long-term contracts will be a little more difficult to unravel, says Commer= zbank utilities analyst, Mark Robinson.=20 Deutsche Bank was one of the few to estimate its full liability Thursday, s= aying it would come in under $100 million, according to a VWD press report.= =20 Analysts say Enron did a good job of spreading around its counterparty risk= in Europe, so large power companies may not take a big hit, but small util= ities could suffer significant financial damage, HEW's Duerwald says.=20 In Germany, close to 600 small utilities have recently entered trading, and= they tend to have lower risk management thresholds than big power companie= s. They could either take a financial beating or decide trading is too risk= y and get out altogether, she said.=20 Enron's clout is greatest in Europe's lesser-developed power trading market= s, like France and Spain, which could suffer a slowdown in development due = to a loss of liquidity if Enron collapses, a power trader said.=20 Traders said the fall of Enron has been a wake-up call for greater vigilanc= e. "We'll be much more careful about managing credit risk. Risk management = will become much more important, too," a power trader said.=20 -By Sarah Wachter, Dow Jones Newswires; 331-4017-1740; sarah.wachter@dowjon= es.com Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 USA: Enron shares fall anew, trading partners also down. 11/29/2001 Reuters English News Service (C) Reuters Limited 2001. NEW YORK, Nov 29 (Reuters) - Shares of Enron Corp. renewed their relentless= plunge on Thursday, as energy traders and creditors assessed their exposur= e to the teetering company.=20 Enron was down 24 cents, or 39.3 percent, to 37 cents, and topped the most = active list once again on the New York Stock Exchange with more 19.1 millio= n shares traded. The stock was valued at more than $33 before it started it= s plunge in mid-October. Shares of companies in the utility sector opened mixed on Thursday, with th= ose owed the most money from financially troubled Enron losing the most gro= und.=20 The 40-company Standard & Poors Utility Index opened slightly down .27 poin= ts at 231.34, with Enron once again the top loser.=20 Shares of rival power company Dynegy Inc. , which backed of a deal on Wedne= sday to bail out Enron, were down 3.7 percent, or $1.34, to $34.55.=20 Aquila, another large trader which is 80 percent owned by Kansas-based Util= icorp. and that could be exposed to Enron, dropped 1.16 percent, or 21 perc= ent, to $17.95. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 REPEAT: Enron Bankruptcy May Lead To Losing Brazil Assets 11/29/2001 Dow Jones International News (Copyright © 2001, Dow Jones & Company, Inc.) RIO DE JANEIRO -(Dow Jones)- Enron Corp. (ENE) could lose the concession fo= r its Brazilian assets if it files for bankruptcy, Brazil's power sector re= gulator Aneel said Thursday.=20 "According to Brazil's privatization rules, local assets controlled by Enro= n would be transferred back to state control in case of insolvency," said a= n Aneel spokeswoman. Enron controls Brazilian electricity distributor Elektro Eletricidade e Ser= vico SA (E.EKO), which was acquired in 1998 for BRR1.479 billion ($1=3DBRR2= .48). It also owns two gas-fired thermoelectric plants: Eletrobolt, with a = capacity of 380 megawatts, and Cuiaba, with a 480-MW capacity.=20 The Houston-based company also owns important stakes in natural gas distrib= utor Companhia Distribuidora de Gas do Rio de Janeiro (E.CDR), or CEG, and = its smaller unit CEG-Rio.=20 In late April, Brazil's oil giant Petroleo Brasileiro (PBR), or Petrobras, = agreed to pay $240 million for the stake Enron owns in CEG. Petrobras agree= d to buy the 25.38% stake the U.S. energy group owns in CEG as well as the = 33.75% stake Enron has in CEG-Rio. The deal is seen closing in the next few= days.=20 CEG serves the metropolitan Rio de Janeiro area, and CEG-Rio supplies indus= trial towns in the greater Rio de Janeiro region and the interior of the st= ate.=20 Enron, one of the heavyweights of the international power market, is widely= expected to apply for Chapter 11 bankruptcy following the downgrading of i= ts debt to "junk" status and the withdrawal of Dynegy Inc.'s (DYN) merger p= lans Wednesday.=20 As reported, the Houston-based energy giant's shares, which traded as high = as $84.87 this year, closed Wednesday at just 61 cents, 85% lower than thei= r opening price of $4.11.=20 Enron said it was suspending all payments other than those needed to mainta= in core operations.=20 The company could still try to sell its Brazilian assets, although the sale= of Elektro is unlikely given the large size of the company and the current= unfavorable market conditions, analysts said.=20 Elektro serves about 1.6 million clients in 223 municipalities in Brazil's = industrialized state of Sao Paulo.=20 -By Adriana Brasileiro, Dow Jones Newswires; (5521) 9965-1193, adriana.bras= ileiro@dowjones.com Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 S&P 500 To Drop Enron At Close; Replaced By Nvidia By Karen Talley Of DOW JONES NEWSWIRES 11/29/2001 Dow Jones News Service (Copyright © 2001, Dow Jones & Company, Inc.) NEW YORK -(Dow Jones)- Standard & Poor's Corp. will remove beleaguered ener= gy trader Enron Corp. (ENE) from the S&P 500 Index at the close of trading = Thursday and replace it with Nvidia (NVDA), a designer of 3D graphics for t= he personal computer market.=20 Enron is trading down 9 cents, or 15.5%, to 40 cents. There is a 12.5 cent = dividend on Enron payable today that has yet to be rescinded. As is usually the case, S&P chose a large stock from the Standard & Poor's = Midcap 400 to graduate up. Nvidia had been the fourth-largest weighting in = the midcap index with $7.8 billion market cap. Nvidia is trading at $54.55,= up $3.19, or 6.2%. -By Karen Talley, Dow Jones Newswires; 201-938-5106; ka= ren.talley@dowjones.com Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 IntercontinentalExchange Volume Rises 65% Vs. Month Ago 11/29/2001 Dow Jones Energy Service (Copyright © 2001, Dow Jones & Company, Inc.) NEW YORK -(Dow Jones)- The volume of trading on IntercontinentalExchange, a= n Internet-based energy trading platform, rose 65% during the last days of = November compared with one month ago, the exchange said Thursday.=20 ICE is considered a primary alternative to Enron Corp.'s (ENE) Internet-bas= ed commodities market, EnronOnline. Users of ICE rose 30%, according to the exchange's press release.=20 EnronOnline is different from ICE because EnronOnline is a mechanism for co= mpanies to buy from, and sell to, Enron. ICE is a neutral multi-party excha= nge, allowing energy trading companies to trade with all other members.=20 ICE's trading system, which has been installed in 7,000 desktops worldwide,= covers 600 commodity and derivative contract types. ICE also owns the Inte= rnational Petroleum Exchange of London, Europes largest energy futures exch= ange.=20 ICE is owned by companies including American Electric Power (AEP), Aquila E= nergy (ILA), BP Amoco PLC (BP), Deutshe Bank AG (G.DBK), Duke Energy Corp. = (DUK), El Paso Corp. (EPG), Goldman Sachs Group (GS), Morgan Stanley Dean W= itter & Co. (MWD), Reliant Energy (REI), Royal Dutch/Shell Group (RD), Soci= ete General SA (F.SGF), Mirant Corp. (MIR) and TotalFina Elf SA (TOT).=20 -By Mark Golden, Dow Jones Newswires; 201-938-4604; mark.golden@dowjones.co= m Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Duke Energy Halts Trading With Enron 11/29/2001 Dow Jones News Service (Copyright © 2001, Dow Jones & Company, Inc.) CHARLOTTE, N.C. -(Dow Jones)- Duke Energy Corp. (DUK) has about $100 millio= n in non-collatorized exposure to financially-battered Enron Corp. (ENE), a= nd has halted trading with the energy conglomerate.=20 Duke Energy, which affirmed annual earnings growth targets, is the latest e= nergy company trying to quell concerns about its exposure to Enron, which c= ontinues a downward spiral in New York Stock Exchange trading. Enron recently traded at 44 cents a share, a sharp drop from its year high = of $66.10 a share in late December. The company's stock closed down 85.2% o= n Wednesday after announcing plans for a merger with Dynegy Inc. (DYN) fell= through. Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Northern Border/Enron -2: Pipeline Has 2.8% Rev Exposure 11/29/2001 Dow Jones Energy Service (Copyright © 2001, Dow Jones & Company, Inc.) OMAHA, Neb.-(Dow Jones)- Northern Border Partners LP (NBP) and its 70%-owne= d unit Northern Border Pipeline Co. said the recent downgrades of Enron Cor= p.'s (ENE) credit ratings and other financial problems shouldn't hurt the p= ipeline operator's financial condition.=20 Northern Border Partners, which includes Enron and Williams Co. (WMB) as so= me of its general partners, receives operating and administrative services = from Northern Plains Natural Gas Co. and NBP Services Corp., a unit of Enro= n. In a press release Thursday, Northern Border said its Northern Border Pipel= ine unit has about $9 million, or 2.8% of its revenue, tied into firm trans= portation contracts with Enron's North America unit. Northern Border Pipeli= ne has the right to remarket this capacity to other shippers.=20 Also, another Northern Border unit entered a swap arrangement with Enron No= rth America to hedge risks of changes in commodity prices. As of Wednesday,= the market value of the swap was $5 million in favor of the partnership. I= f the Enron unit can't perform its obligations under the contracts or swap = arrangements, the limited partnership won't be hurt financially.=20 The Northern Border partnership will continue to monitor its exposure to En= ron.=20 Northern Border's New York Stock Exchange-listed shares closed Wednesday at= $36.15, down 4.6%, or $1.73.=20 -Maria P. Vallejo; Dow Jones Newswires; 201-938-5400 Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Fall Of Enron Rattling Nordic Electricity Market By Frances Schwartzkopff Of DOW JONES NEWSWIRES 11/29/2001 Dow Jones International News (Copyright © 2001, Dow Jones & Company, Inc.) COPENHAGEN -(Dow Jones)- The precipitous fall of U.S. power giant Enron Cor= p. (ENE) hit the Nordic market Thursday, when the region's power exchange s= aid the company's Scandinavian arm, Enron Nordic Energy, was excluded from = trading and clearing.=20 The development - plus the continual stream of news about Enron's woes - tr= iggered worries among market participants over their exposure, and also ove= r the possibility of wider spreads on the Nord Pool exchange if Enron Nordi= c Energy closes up shop and liquidity in the market falls. By the company's own estimates, it is the leading electricity trader in the= Nordic market, where it first established its headquarters, in Oslo, in 19= 96. According to Enron Nordic Energy, it traded 77 terawatt-hours last year= .=20 "If Enron would disappear from the Nordic electricity market, liquidity wou= ld be substantially reduced and there is a risk that spreads would widen," = said Bo Andersson, an analyst with Graninge Trading in Stockholm.=20 Nord Pool announced Thursday that Enron Nordic had failed to post required = financial security margins, and as a result it was being excluded from trad= ing and clearing of financial contracts. It is still allowed to trade in th= e spot market.=20 The announcement followed an earlier one Thursday that contracts to which E= nron Nordic Energy is a party would no longer be cleared automatically. Ins= tead, each would be evaluated separately, and additional financial security= margins could be required.=20 In acting as the clearing agent, Nord Pool assumes the financial risk to en= sure a contract is fulfilled. Nord Pool officials declined to say how large= the exchange's exposure would be, either in the financial or the spot mark= et, should Enron go bankrupt.=20 But they said the exchange was prepared.=20 "I am relaxed and calm," said CEO Torger Lien, adding he hoped the rest of = the market was too. "It's a bit messy when the larger players go bust, rega= rdless of what business you're in. (But) we're set up to deal with this."= =20 It's yet to be seen whether trading houses that have bilaterally traded con= tracts with Enron not cleared through Nord Pool will be able to deal with t= he company's closure, should it happen.=20 Traders declined to go on the record about their positions except to note t= hat those contracts are at risk.=20 Upwards of 80% of power contracts traded bilaterally are cleared through th= e exchange, according to Nord Pool estimates. What share Enron has of the r= emaining portion is hard to say.=20 The total volume of financial contracts traded on Nord Pool in 2000 was 359= TWh, while the spot market's traded volume was 97 TWh. Another 1,180 TWh f= rom the OTC/bilateral market were reported to Nord Pool for clearing.=20 Observers said Enron's troubles could also open the market to other players= and reverse opposition to mandatory clearing of bilaterally traded contrac= ts.=20 Many traders have been opposed to the plan, which is currently under consid= eration as part of Nord Pool's application to the Norwegian government to b= ecome a licensed financial exchange and a licensed clearing house.=20 That may be one upside to Enron's demise, said Nord Pool's Lien. Otherwise,= he said, "Enron is an innovative, strong company. It's quite sad."=20 But, he added, "They haven't gone bust yet."=20 -By Frances Schwartzkopff, Dow Jones Newswires; +45 3311 1524; frances.schw= artzkopffdowjones.com=20 (Maria Aakerhielm in Stockholm contributed to this story) Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Enron's Demise Leaves Counterparties With Tough Choices By Sarah Spikes Of DOW JONES NEWSWIRES 11/29/2001 Dow Jones International News (Copyright © 2001, Dow Jones & Company, Inc.) LONDON -(Dow Jones)- U.S. energy giant Enron Corp.'s (ENE) financial troubl= es have left counterparties with difficult choices.=20 Enron's significant trading presence in the U.K. electricity market means t= here are many trading partners who are counterparties in deals with a compa= ny that looks bound for bankruptcy. Since Enron revealed a $1.2 billion reduction in shareholder equity last mo= nth related to controversial transactions with entities connected to former= Chief Financial Officer Andrew Fastow, the company has taken a nosedive th= at was only momentarily relieved when it looked as if Dynegy might step in = and rescue the company.=20 Most trading partners were quick to stop trading forward with Enron, althou= gh some continued, and almost all U.K. companies have some exposure to Enro= n. Several also continued trading short term contracts.=20 With the company as it is, there are two options for counterparties.=20 They can wait, anticipating that Enron will go bust, and then terminate con= tracts, or try to invoke a controversial clause in their contracts and get = Enron to put up more collateral.=20 An apparently much less likely option would be to sit tight and hope that a= nother buyer for Enron steps in.=20 Of course, terminating contracts doesn't guarantee payment. While Enron app= ears to have plenty of assets that could be sold to pay off its debts, the = company's record of inaccurate earnings reporting sheds doubt on the value = of its assets as well.=20 Terminating parties would be reimbursed, or charged, based on a marked-to-m= arket value of their contracts.=20 U.K. power prices have declined sharply since the introduction of the New E= lectricity Trading Arrangements in March, so parties with majority selling = positions through Enron would suffer financial losses when they had to rese= ll their power for a lower figure. But had they bought through Enron, they = would be able to source the same power for less money on the U.K. market to= day.=20 However, the immediate future of power prices is uncertain, making it diffi= cult to know exactly which contracts will be in or out of the money. In Aug= ust, just five months after the introduction of the New Electricity Trading= Arrangements, the Office of Gas and Electricity Markets announced that who= lesale power prices were down substantially and that price volatility on th= e balancing market had all but stopped.=20 But this has changed with the onset of colder weather, after one of the war= mest Octobers in recent history led to some complacency. The cost of having= to cover a short position has been spiking to well above GBP300/MWh routin= ely, and prices on the power exchanges have soared for peak time periods.= =20 The National Grid has also recently issued several warnings regarding a sys= tem shortfall during peak hours.=20 The second option open to Enron's trading partners involves trying to invok= e a muddied clause in the standard U.K. power-trading contract - the materi= al adverse change, or MAC, clause.=20 Asserting that the downgrade of Enron's debt to non-investment grade status= clearly calls the security of their contracts into question, they may be a= ble get Enron to put up more collateral in support of the contracts.=20 Before the downgrade, it might have been tough to invoke this clause, but i= t's now a possible option.=20 -By Sarah Spikes, Dow Jones Newswires; (+44 20) 7842 9345; sarah.spikesdowj= ones.com Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Europe Fin Services Cos To Take Small Hit From Enron By Evelina Shmukler and Catherine Taylor Of DOW JONES NEWSWIRES 11/29/2001 Dow Jones International News (Copyright © 2001, Dow Jones & Company, Inc.) LONDON -(Dow Jones)- Europe's financial services groups are expected to be = hit by Wednesday's downgrade of Enron's debt rating to junk, but analysts s= ay the impact isn't going to be as severe as it may first look on paper.=20 Many large European banks underwrote or arranged large loans for the troubl= ed energy trading company, but they've sold off a large amount of that debt= to other banks or insurers, mitigating the effects on their provisioning a= nd balance sheets. That syndication, however, makes it unclear at this point how much Enron de= bt paper each bank and insurer in the region is holding onto.=20 Enron's troubles are a "good reminder that there is still high unexpected c= redit risk latent in the large corporate loan books of banks," said UBS War= burg's Anik Sen. But he estimates that the large European banks' exposure r= isk is still relatively small.=20 In total, he estimates an exposure risk of about 2% of the market capitaliz= ation per large European bank - or around the intraday volatility of most b= anks anyway. It represents about 5% to 10% of a bank's earnings as a one-of= f hit, implying, he said, that the banks' capital is not at risk.=20 Most of Europe's major banks, and some minor ones, have helped to finance l= oans for Enron. The bank's with the greatest involvement, according to Fox-= Pitt, are Barclays, ABN Amro (ABN), Credit Suisse (CS), Societe Generale (F= .SGS), Credit Lyonnais (CL) and Dresdner Bank AG (G.DRS).=20 Fox-Pitt estimates these six banks each has exposure of $400 million to $45= 0 million, and though the downgrading of Enron will increase financial mark= et risk generally, they said these banks will feel the weakening effect mos= t.=20 Enron's debt rating downgrading is "clearly a significant event for Europea= n banks," Sen said, but he pointed out most of the large European banks don= 't keep all of those loans on their books.=20 "Banks are in the business of mitigating risk," he said. The few banks Sen = is concerned about are those that keep the loans as part of their core busi= ness, rather than selling them off. These banks' holdings, especially those= of some German and Italian ones, could be a concern for shareholders.=20 Also smaller European banks, to whom even a small loan could be significant= , may find this situation a "painful experience," Sen said. Banks' Say Don'= t Overreact=20 The large European corporates, however, tend to not hold onto such loans. B= arclays, for example, has said in the past that it sells down at least 90% = of what it provides via syndication.=20 A Barclays spokeswoman said Wednesday that the bank's exposure was not mate= rial, but investors seem worried anyway. Barclays shares fell 4% Wednesday = to 2093 pence. Thursday, shares fell another 1.5%, before recovering to a s= midge about the previous day's close at 2106 pence.=20 Investment bank Nomura, however, staunchly maintained its "buy" rating on B= arclays shares, explaining the size of the exposure is being substantially = overestimated.=20 But Nomura also said the potential fallout from an Enron bankruptcy will co= ntinue to weigh on shares of global wholesale banks until the issue is reso= lved.=20 European banks' share prices have already begun to feel it: ABN Amro was do= wn 1.2% to EUR17.73 and Credit Suisse fell 0.4% to CHF64.90 at 1215GMT. Soc= iete Generale was down 0.8% at EUR61.75, and Credit Lyonnais fell 0.6% at E= UR37.64.=20 Commerzbank shares were off 2.3% to EUR 19.54.=20 Commerzbank spokesperson Dennis Phillips said the bank's exposure to Enron = "is a low double-digit million Euro figure, and it has already been account= ed for in terms of provisioning for 2001."=20 French insurance group AXA SA (AXA) also said there would be no direct impa= ct on the company, even though one of its subsidiaries is one of Enron's la= rgest shareholders. An AXA spokesperson said that the subsidiary holds the = shares in an investment fund on behalf its investors. AXA shares were up 1%= to EUR24.24 at 1230GMT.=20 In general, Europe's insurers are unlikely to have a large exposure to Enro= n, said Tom Bennett, a European insurance analyst at BNP Paribas. As far as= their bond portfolios are concerned, they tend to make less risky investme= nts than banks, he said.=20 "They don't invest in junk, it's the basic rule," he said. "People are prep= ared to take much more risk [at banks]." Large, listed European insurers "t= end not to invest outside the investment grade area, and Enron hasn't been = that for ages."=20 In the U.K., both Standard Chartered PLC (U.STA) and Royal Bank of Scotland= Group PLC (RBSB) have some exposure to Enron, but spokespeople at both ban= ks downplayed any potential risk.=20 Carolyn McAdam of Royal Bank of Scotland declined to say to what extent the= Scottish bank was exposed to Enron.=20 "All we're prepared to say just now is that Enron is obviously a very large= business, with a range of business interests and assets," she said. "And i= t's far too early at this stage to reach any firm conclusions on the level = of our exposure."=20 Standard Chartered also said it has some exposure.=20 "But it is very small. We're probably one of the smallest, if not the small= est, lenders in one of the syndicates, so it's small stuff for us," Standar= d Chartered spokeswoman Pamela McGann said.=20 She declined to quantify "small," but said, "it's not something that's goin= g to keep me awake tonight, that's for sure."=20 -By Evelina Shmukler and Catherine Taylor, Dow Jones Newswires; 44-20-7842-= 9268; evelina.shmukler@dowjones.com=20 (Additional reporting by Bert-Erik Tencate in Frankfurt) Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Dollar Under Pressure on U.S. Economic Woes, Enron Situation 11/29/2001 Dow Jones Business News (Copyright © 2001, Dow Jones & Company, Inc.) Dow Jones Newswires=20 NEW YORK -- The dollar was under pressure Thursday, weighed down by a combi= nation of the Federal Reserve's somber outlook for the U.S. economy, waning= U.S. consumer confidence and concerns about the financial woes of Enron Co= rp. In morning New York trading, the euro was at 89.04 U.S. cents, up from 88.8= 2 cents late Wednesday in New York. The dollar was at 123.07 yen, little ch= anged from 123.06 yen late Wednesday.=20 The greenback was also at 1.6480 Swiss francs, compared with 1.6465, while = sterling was trading at $1.4254, down slightly from $1.4259 late Wednesday.= =20 The dollar managed to get a brief respite from U.S. durable goods data for = October, which showed orders for big ticket items sharply rebounded by a re= cord amount, more than reversing September's large drop.=20 But the overall tone for the dollar remains weak, amid a growing sense that= the U.S. might not be able to rebound from recession as fast as previously= thought.=20 "The dollar is a little heavy across the board," said Robert Sinche, head o= f global currency strategy at Citibank in New York. "Unless you get somethi= ng completely outrageous, it looks likely to remain that way."=20 The dollar has fallen below key support levels against both the euro and th= e yen, as traders moved to liquidate a spate of long dollar positions.=20 While the Enron situation doesn't have a direct effect on foreign exchange = markets, analysts said that it wasn't helping dollar sentiment.=20 "The market was ripe for an unwinding of long dollar positions," said Mr. S= inche. "Enron...is the kind of situation that just acts as a catalyst."=20 As is often the case, the euro's gains appeared to be more a result of pess= imism towards the U.S. rather than any optimism about the euro zone.=20 The market largely shrugged off third quarter euro-zone gross domestic prod= uct data earlier Thursday which came in exactly as expected: up 0.1% on the= quarter and 1.3% on the year.=20 The dollar's direction Thursday will also be influenced by U.S. shares, wit= h prospects for a marked rebound looking slim in the wake of the Enron woes= .=20 Analysts said a sustained move above the 89 cent level could set the euro u= p for a test of 89.45 cents and then 90 cents, which is expected to offer m= ore formidable resistance.=20 Its difficulty in making a concerted push for 90 cents is probably down to = the potential outflows related to the Morgan Stanley Capital International = indexes rebalancing, and the Deutsche Telekom/Voicestream deal.=20 The first phase of the new MSCI weightings comes into effect Friday, and sh= ould involve fund managers reducing their exposure to euro zone equities.= =20 So far, this seems to have been discounted, although it could still help to= keep a lid on the euro.=20 The lockup period for Voicestream shareholders to keep hold of their Deutsc= he Telekom shares expires Dec. 1, which could prompt them to offload the st= ock, in effect resulting in sizable euro-zone outflows.=20 Benign inflation data from Switzerland out earlier Thursday - up only 0.3% = in November on the year - has paved the way for the Swiss National Bank to = cut interest rates at its next meeting Dec. 7.=20 "With the market looking only for a rate cut of 25 basis points, we would e= xpect the Swiss franc to remain capped around current levels," said UBS War= burg analysts.=20 Grainne McCarthy of Dow Jones Newswires contributed to this article=20 Copyright © 2001 Dow Jones & Company, Inc.=20 All Rights Reserved Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Electrabel Says Exposure To Enron "Insignificant" 11/29/2001 Dow Jones International News (Copyright © 2001, Dow Jones & Company, Inc.) BRUSSELS -(Dow Jones)- Belgian power utility Electrabel (B.ELE) said Thursd= ay that it has a low financial exposure to Enron Corp. (ENE).=20 "Electrabel had anticipated the actual situation for the past month, and ha= s taken a number of measures to reduce its positions," an Electrabel spokes= man said. "Our exposure is totally insignificant." Electrabel has stopped trading with Enron, and began reducing its trading a= ctivities with Enron back in August, when news started to emerge of Enron's= deteriorating financial condition.=20 Electrabel has an asset-based trading strategy, not a policy of speculation= , he added.=20 The spokesman declined to detail the amount of Electrabel's liabilities wit= h Enron. Analysts are skeptical of statements power companies are making Th= ursday about their limited liabilities to Enron, saying it isn't clear whet= her the figures given represent gross exposure, or what the liabilities wil= l be if Enron goes bankrupt.=20 Enron is thought to account for up to 20% of all power trading in Europe.= =20 Enron is widely expected to apply for Chapter 11 bankruptcy following the d= owngrading of its debt to "junk" status and the withdrawl Wendesday of Dyne= gy Inc.'s merger plans.=20 -By Sarah Wachter, Dow Jones Newswires; 331-4017-1740; sarah.wachter@dowjon= es.com Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Duke Energy Confident Energy Sector Will Remain Strong; Halts Trading With = Enron 11/29/2001 PR Newswire (Copyright © 2001, PR Newswire) CHARLOTTE, N.C., Nov. 29 /PRNewswire/ -- Duke Energy (NYSE: DUK) today expr= essed confidence in the vitality of the energy sector and said it had taken= steps to manage its exposure during the very serious difficulties being ex= perienced by Enron, including instituting a trading halt.=20 "Although we didn't completely cease trading with Enron until yesterday, in= the course of our normal credit practices, we took steps to limit our expo= sure to Enron. We currently have approximately $100 million in non- collate= rized exposure to Enron. We are closely monitoring this unfortunate situati= on to determine if a provision against earnings is appropriate," said Richa= rd J. Osborne, executive vice president and chief risk officer for Duke Ene= rgy. Osborne was referring to Dynegy's announcement that it is terminating the m= erger agreement with Enron and the decision by major rating agencies to dow= ngrade Enron's long-term debt below investment grade.=20 "The market is larger than any one player and is very resilient. Enron's ro= le and activities in the energy market have significantly diminished over t= he past several weeks. And, market liquidity is provided by many active tra= ding and marketing companies that have effective risk management practices = and sound capitalizations," Osborne noted.=20 "We at Duke Energy are committed to our customers and fulfilling our contra= cts and services without disruption. We also continue to see strong growth = opportunities ahead and are extremely confident in our ability to achieve o= r exceed our financial targets this year and next," Osborne said.=20 The company remains fully committed to deliver earnings growth within its s= tated guidance of 10 percent to 15 percent compound annual growth in earnin= gs per share from a base of $2.10 in 2000. Based on the strong results repo= rted for the first three quarters of this year, Duke Energy had previously = communicated it will likely exceed 15 percent earnings growth in 2001. Yest= erday's developments do not change that view.=20 Duke Energy, a diversified multinational energy company, creates value for = customers and shareholders through an integrated network of energy assets a= nd expertise. Duke Energy manages a dynamic portfolio of natural gas and el= ectric supply, delivery and trading businesses -- generating revenues of mo= re than $49 billion in 2000. Duke Energy, headquartered in Charlotte, N.C.,= is a Fortune 100 company traded on the New York Stock Exchange under the s= ymbol DUK. More information about the company is available on the Internet = at: www.duke-energy.com.=20 CONTACT: Jennifer Hillings Epstein of Duke Energy, +1-704-382-1221, or 24-H= our, +1-704-382-8333.=20 MAKE YOUR OPINION COUNT - Click Here=20 http://tbutton.prnewswire.com/prn/11690X12208513 /CONTACT: Jennifer Hillings Epstein of Duke Energy, +1-704-382-1221, or 24-= Hour, +1-704-382-8333/ 09:30 EST=20 Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Dominion Reports That Enron Exposure Not Expected To Affect Earnings Foreca= st 11/29/2001 Business Wire (Copyright © 2001, Business Wire) RICHMOND, Va.--(BUSINESS WIRE)--Nov. 29, 2001--Dominion (NYSE:D) said today= that it has pre-tax credit exposure to Enron of $11 million for past sales= . Dominion said it has forward commodity sales contracts with Enron that re= present an exposure of less than 5 percent of earnings, based on today's fo= rward prices. Dominion reaffirmed its public operating earnings per share t= argets of $4.15 or better in 2001, $4.90 to $4.95 in 2002 and 10 percent an= nual earnings growth after 2002.=20 Dominion is one of the nation's largest producers of natural gas and power. CONTACT: Dominion, Richmond Media: Mark Lazenby, 804/819-2042 Hunter Applew= hite, 804/819-2043 or Analysts: Tom Wohlfarth, 804/819-2150 Suzette Mata, 8= 04/819-2154=20 09:06 EST NOVEMBER 29, 2001=20 Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 S&P Lwrs Rtg on Yosemite's 2000-A Linked Enron Notes 11/29/2001 Business Wire (Copyright © 2001, Business Wire) LONDON--(BUSINESS WIRE)--Standard & Poor's--Nov. 29, 2001-- Standard & Poor= 's today lowered its rating on the GBP200 million 8.75% series 2000-A linke= d Enron obligations issued by Yosemite Securities Co. Ltd. to 'B-' from 'BB= B-'. Concurrently, the ratings have been placed on CreditWatch with develop= ing implications.=20 The rating action reflects the Nov. 28, 2001 downgrade of Enron Corp.--whic= h supports Yosemite Securities Co.--which was prompted by Standard & Poor's= concerns about the viability of the merger agreement with Dynergy Inc. and= the liquidity implications of the possible failure of that transaction. Yosemite Securities' CreditWatch developing situation reflects the possibil= ity that Enron Corp.'s ratings can move higher or lower from the 'B-' level= . If the Dynergy merger or a similar transaction materializes, the rating c= ould be upgraded.=20 In the absence of Dynergy or another partner, the credit quality of Enron c= ould go even lower. A copy of the related press release, dated Nov. 28, 200= 1, can be found on Standard & Poor's Web-based credit analysis system, at w= ww.ratingsdirect.com.=20 Copyright 2001, Standard & Poor's Ratings Services CONTACT: Standard & Poor's, London Perry Inglis, (44) 20-7826-3857 Rebecca = Geen=20 08:13 EST NOVEMBER 29, 2001=20 Copyright ? 2000 Dow Jones & Company, Inc. All Rights Reserved. =09 Northern Border Partners Reassures Investors Regarding Enron Exposure 11/29/2001 PR Newswire (Copyright © 2001, PR Newswire) OMAHA, Neb., Nov. 29 /PRNewswire/ -- Northern Border Partners, L.P. (NYSE: = NBP) announced today that it believes that the recent downgrades of Enron C= orp.'s credit ratings and other events involving Enron should not have a ma= terial adverse impact on Northern Border Partners' financial condition. How= ever, it is too early to determine with certainty the extent to which the P= artnership will be impacted by these events.=20 As detailed in its September 30, 2001 Quarterly Report on Form 10-Q, Northe= rn Border Partners has a number of relationships with Enron and its subsidi= aries. Northern Plains Natural Gas Company and NBP Services Corporation, wh= olly-owned subsidiaries of Enron, provide operating and administrative serv= ices for Northern Border Partners and its subsidiaries. Certain of the serv= ices are provided through other Enron subsidiaries. Management believes tha= t Northern Plains and NBP Services will continue to be able to meet their o= perational and administrative services obligations under the existing agree= ments. Northern Border Pipeline, a 70 percent-owned subsidiary, has an aggr= egate financial exposure over the next 12 months of approximately $9 millio= n (2.8 percent) of revenues under its firm transportation contracts with En= ron North America (ENA), a wholly owned subsidiary of Enron. Also, another =
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