Mr. Faitz: I follow pan-European chemicals. This includes basic chemicals and speciality chemicals.
TWST: What themes will drive the sector over the next period; what do
you anticipate?
Mr. Faitz: It'll definitely be the oil price development; another driver
for the chemicals sector is the GDP growth world-wide ' in Asia,
especially North America, and of course Europe.
TWST: In your view, what's the outlook for the oil price?
Mr. Faitz: Our oil price forecast is $26 per barrel for the year-end,
with $24 per barrel for year-end 2001; so considering this forecast we
do see a continued margin improvement for chemicals. However, if you
look at a potential drop in the oil price, you also have to see that the
customers of chemical companies are closely following the oil price
development, meaning they will demand that chemical companies again cut
prices when the oil price drops. Eventually this leads to a margin
squeeze, so it's not necessarily too positive for chemical stocks.
Tickers included in this excerpt: 542500.F, 575200.F, 575800.F, 856200.F, 895929.F, 928619.F, AKZOY, AVE, BF, CZ, DOW, DPMI, RPO.PA
For more information call (212) 952 7433. The Wall Street Transcript does not endorse any of the comments made by interviewees, and does not make stock recommendations.