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IBC COFFEE AUCTIONS TO START SOON - DAUSTER | The Brazilian Coffee Institute, IBC,
plans to sell in a series of auctions over the next few weeks
robusta coffee purchased in London last year, but details of
where and when auctions will take place are still to be
finalised, IBC president Jorio Dauster told reporters.
The sales of 630,000 bags of robusta and an unspecified
amount of Brazilian arabica coffee will take place over a
minimum of six months but it is not decided where sales will
take place or whether they will be held weekly or monthly.
The amount offered at each sale has also not been set, but
could be in the order of 100,000 bags, Dauster said.
Reuter
|
AMCA (AIL) NAMES NEW CHAIRMAN | AMCA International Ltd said it
appointed president and chief executive officer WIlliam Holland
to succeed Kenneth Barclay as chairman.
Barclay, who is 60 years old, decided not to stand for
reappointment as chairman this year but will continue as a
director, AMCA said.
Reuter
|
API OIL INVENTORY REPORT TO BE ISSUED TONIGHT | The American Petroleum Institute, API,
said its weekly U.S. petroleum inventory report will be issued
tonight, despite many company closures on Friday of last week
for the Easter holiday.
The API report is usually released around 1700 EDT on
Tuesday nights.
The Energy Information Administration said it also expects
its weekly oil statistic report to be released as usual, on
Wednesday night at about 1700 EDT.
Reuter
|
SORO GROUP TO LIMIT FAIRCHILD <FEN> STOCK BUYS | Quantum Fund N.V., a Netherlands
Antilles mutual fund for which New York investor George Soros
is investment adviser, said it has agreed to limit further
purchases of Fairchild Industries Inc stock.
In a filing with the Securities and Exchange Commission,
Quantum, which already holds 1,647,481 Fairchild common shares,
or 11.5 pct of the total outstanding, said it agreed to the
restriction after Fairchild said its security clearance might
be jeopardized if Quantum acquires a major stake in it.
But Quantum said Fairchild management was told that Soros,
acting either individually or through entities other than
Quantum that he controls, may decide to buy common stock in the
company on his own behalf.
Quantum had recently notified the Federal Trade Commission
under the Hart-Scott-Rodino Antitrust Improvements Act of 1976
that it might buy up to 49.9 pct of Fairchild's voting stock.
Unless the FTC had objected, Quantum would have been free, but
not obligated, to buy up to 49.9 pct of Fairchild stock.
Fairchild management, however, warned that if Quantum, a
foreign entity, raises its stake in the company to 49.9 pct, it
could "impair" the government security clearances Fairchild
needs to carry out its its defense contract work.
In response, Quantum said it told Fairchild it will not
make "significant additional purchases" of its common or
preferred stock without giving Fairchild enough prior notice to
enable it to consult with Quantum over the impact of action.
Quantum also said it has withdrawn its notification request
to the FTC and the antitrust division of the Justice Department
of its intent to buy up to 49.9 pct of Fairchild.
Quantum also said it told the FTC and the Justice
Department that it does not expect to resubmit any further
notifications of intent to significantly raise its stake in
Fairchild at this time.
The restrictions Quantum has agreed to follow regarding
further dealings in Fairchild stock do not apply to Soros as an
individual investor.
Fairchild's annual shareholders meeting is scheduled to be
held tomorrow.
Reuter
|
FED ADDS RESERVES VIA TWO-DAY REPURCHASES | The Federal Reserve entered the U.S.
Government securities market to arrange two-day System
repurchase agreements, a Fed spokesman said.
Dealers said that Federal funds were trading at 6-7/16 pct
when the Fed began its temporary and direct supply of reserves
to the banking system.
Reuter
|
CAPITAL ASSOCIATES <CAII.O> TO TRADE ON NASDAQ | Capital Associates Inc
said its common stock will be included in NASDAQ's national
market system, starting today.
Capital Associates is an equipment leasing and financial
service company with headquarters in Colorado Springs, Colo.
Reuter
|
MINT REVIEWS OFFERS ON 3,701,000 LBS COPPER | The U.S. Mint received 17 offers
from seven firms at prices ranging from 0.66845-0.6840 dlrs per
lb for payment by standard check and 0.66695-0.68 dlrs per lb
for wire transfer payment in a review of offers on 3,701,000
lbs of electrolytic copper it is seeking to purchase.
Philipp Brothers, N.Y., led with the lowest offers of
0.66695 for wire transfer payment and 0.66845 dlrs per lb to be
paid by check, followed by Cerro Sales Corp, N.Y., with 0.6684
dlrs per lb on one mln lbs for wire payment, and 0.6713 dlrs
per lb on one mln lbs for standard payment.
Firms, in submitting offers, elect to be paid by standard
check or wire transfer, with awards based on whichever of the
two methods is more cost advantageous at that time.
Cerro Sales also offered prices for wire payment of 0.6689
dlrs per lb on one mln lbs and 0.6693 dlrs per lb on 1,701,000
lbs. Cerro's standard payment offers included 0.6719 dlrs per
lb on one mln lbs and 0.6723 dlrs per lb on 1,701,000 lbs.
Cargill Metals, Minneapolis, offered 0.67025 dlrs per lb
for wire payment and 0.67275 dlrs per lb for standard payment,
while Elders Raw Materials, Darien, Ct., offered 0.6718 dlrs
per lb for wire payment and 0.6735 dlrs per lb for standard
payment on increments of 950,000 lbs each.
Other offers for wire transfer payment include 0.6759 dlrs
per lb on 380,000 lbs, submitted by Deak International, N.Y.,
0.6789 dlrs per lb on the entire quantity by Diversified Metals
Corp, St. Louis, and 0.68 dlrs per lb by Gerald Metals,
Stamford, Ct.
Other standard payment offers include 0.6819 dlrs per lb on
950,000 lbs by Diversified Metals, and 0.6840 dlrs per lb on
the entire quantity by Gerald Metals.
The Mint said the copper is for delivery the week of May 11
to Olin Corp, East Alton, Ill.
The offers have a minimum acceptance period of three
calendar days, it said.
Reuter
|
AHED <AHM.TO> MAY ISSUE ONE MLN SHARES | Ahed Corp said it began discussions
with an investment dealer about issuing an additional one mln
treasury shares in the near future.
Ahed also said it believes recent increases in its stock
price could be attributable to a published report describing
the activities of the company.
Ahed said no other events are known to have taken place
which would cause these recent price increases.
Reuter
|
U.S. WEST <USW> INTRODUCES DATA NETWORK PRODUCT | U.S. WEST INC said it introduced its
first product for managing data networks, called the NETCENTER
graphic network monitor.
The product was developed by U.S. WEST Network Systems Inc,
a subsidiary of U.S. WEST INC, it said. It will be distributed
in the third quarter of 1987.
The company said the product is aimed at companies with IBM
SNA networks, and will allow customers control over their own
networks.
The initial license fee for a typical configuration will be
in the 100,000 dlr to 300,000 dlr range, depending on the size
of the network, the company said.
Reuter
|
FRENCH WINTER CEREAL SOWING SEEN LITTLE CHANGED | The Ministry of Agriculture left its
estimates of French winter cereal sowings for the 1986/87
campaign barely changed at 6.606 mln hectares compared with its
previous forecast of 6.601 mln.
This compared with the 6.41 mln ha of winter cereals
harvested in the 1985/86 campaign.
Winter soft wheat sowings were put at 4.647 mln ha compared
with its previous estimate of 4.651 mln and 4.57 mln ha
harvested last campaign. Winter barley plantings were forecast
at 1.46 mln ha, unchanged from its previous estimate and
compared with 1.41 mln harvested last season.
The ministry put hard winter wheat sowings at 246,000 ha
versus a February 1 estimate of 236,000 and actual area
harvested last campaign of 217,000.
Winter rape plantings were forecast at 627,000 ha against a
previous estimate of 621,000 and 375,000 rpt 375,000 harvested
in 1985/86.
Reuter
|
ENERGEX MINERALS <EGX> MAY RUN UP TO THREE PITS | Energex Minerals
Ltd said economic evaluation of reserves indicates high-grade
operation from three open pits may be feasable based on
five-year operation at 100 tons a day, a payback of less than
1-1/2 years.
An increase in the project's life, profitability and scale
is anticipated as additional reserves are developed in 1987,
the company said.
Current reserves are one mln long tons at 0.20 ounce gold
per ton, all categories; proven-probable 262,242 long tons at
0.25 ounce gold per ton, the company said.
Reuter
|
TURNER TO MEET WITH DOME <DMP> EXECUTIVES | Liberal Party leader John Turner said he
will meet with senior executives of Dome Petroleum Ltd in
Calgary tomorrow to discuss the proposed sale of Dome.
Turner's office said he will hold a news conference
tomorrow at 1400 MDT (1600 EDT) in Calgary.
Turner, who is opposition leader in Parliament, has
criticized Dome's acceptance of a 5.1 billion dlr takeover bid
from Amoco Corp <AN> as a sell-out of Canada's oil industry.
Reuter
|
NEW YORK TIMES <NYT> SEES UNEVEN GAINS IN 1987 | The New York Times Co said
that if prevailing business conditions continue, the company
sees "another outstanding year, although the remaining quarters
of 1987 will probably not show uniform gains."
The company's first quarter earnings rose 21 pct to 41.1
mln dlrs or 50 cts a share compared to 33.9 mln dlrs or 42 cts
a share in the year-ago quarter restated for a two-for-one
stock split.
The company also said its newspaper division, which
includes the New York Times and 32 regional newspapers, had a
first quarter operating profit of 69.8 mln dlrs compared with
60.7 mln dlrs in the year-ago first quarter mainly due to
advertising volume and rate increases.
The company's magazine division, which includes "Family
Circle," had a first quarter profit of 9.7 mln dlrs compared to
7.4 mln dlrs in the year ago quarter.
The company's broadcasting and cable tv group reported an
operating profit of 2.9 mln dlrs compared to 2.6 mln dlrs in
the year-ago first quarter.
Reuter
|
BANKERS TRUST <BT> TIES NET TO CURRENCY EARNINGS | Bankers Trust New York Corp said its
first quarter foreign exchange trading income rose to 82.8 mln
dlrs from 20.9 mln dlrs in the first qtr of 1986, offsetting
the bank's 7.4 mln dlr loss incurred from placing 540 mln dlrs
of Brazilian loans on a non-accrual status.
Earlier, the bank reported that first quarter net income
increased to 124.2 mln dlrs, or 1.77 dlrs a share, from 115.9
mln dlrs, or 1.64 dlrs a share, a year ago.
Bankers Trust chairman Alfred Brittain III said increased
non-interest income, a lower provision for loan-losses and
increased net interest income also helped first quarter net.
Bankers Trust previously announced that the 540 mln dlrs in
non-accruable Brazilian loans would cut its first quarter
earnings by 7.4 mln dlrs, and could slice about 30 mln dlrs
from the full year's net.
Bankers Trust said non-interest income in the first quarter
equaled 275.4 mln dlrs, up 37.1 mln dlrs from a year ago.
Loan losses fell in the quarter to 22 mln dlrs, versus 40
mln dlrs a year ago while taxable net interest income remained
flat at 266 mln dlrs, the bank said.
Reuter
|
ALTEX <AII> TO SELL OILFIELD SERVICES ASSETS | Altex Industries Inc said it agreed to
sell the assets of its wholly-owned oilfield service
subsidiary, Parrish Oil Tools Inc.
The price and buyer were not disclosed.
Altex said Parrish had a loss from operations of 428,000
dlrs on revenues of 881,000 dlrs in fiscal 1986 and a loss from
operations of 48,000 dlrs on revenues of two mln dlrs in fiscal
1985.
Reuter
|
IMARK INDS <IMAR.O> VOTES ANNUAL 25 CT DIVIDEND | Imark Industries Inc said its
directors approved payment of an annual dividend of 25 cts on
May 21, record May seven.
The company paid the same dividend last year.
Reuter
|
DUQUESNE LIGHT <DQU> HURT BY LEGISLATION | Duquesne Light Co president Wesley
von Schack told shareholders that current state law and
regulatory policies will result in higher capital rates and
higher rates for customers.
"Pennsylvania's recently enacted excess capacity
legislation denies shareholders the opportunity to earn a fair
return on their investment and undermines economic development
in Pennsylvania," von Schack told shareholders at the annual
meeting.
Von Schack said two major bond rating agencies have recently
downgraded Duquesne's credit rating due to regulatory
uncertainty. The action will result in higher capital rates and
higher rates for customers, he said.
He said the Pennsylvania Utility commission indicated in
its most recent rate case decision that even if newly
constructed Perry No. 1 nuclear plant was in commercial
operation, shareholders would be denied a return on their
investment in the plant. Von Schack called on shareholders to
join it and certain legislators' efforts to create a
partnership to fight these issues and resolve these problems.
Reuter
|
CREATIVE MONETARY POLICY TO SPUR KUWAITI ECONOMY | Kuwait, a major oil producer hit by last
year's price slump, is leaning towards a more creative monetary
policy to help spur its economy, banking sources said.
"There is a clear emphasis on encouraging the use of money
in productive ventures, rather than having it all tied up in
interest bearing investments which have no direct productive
outlet," one banker said.
Kuwait's Central Bank yesterday cut one key money market
rate and abandoned another which had been used since February
1986 to direct inter-bank borrowing and lending costs.
The bank reduced to six pct from 6-1/2 pct the rate at
which it will offer funds of one month to one year in the
inter-bank market. This, in turn, affected retail rates.
The cut, the third this year, followed a major overhaul of
interest rate policy last month which Central Bank Governor
Sheikh Salem Abdul-Aziz al-Sabah said was designed to revive
the economy.
One banker said "There is growing flexibility, creativity,
in interest rate policy, amid an awareness of the need to
diversify the economy by stimulating the non-oil sector."
For the first time in nearly three years domestic interest
rates are now significantly below those for the U.S. Dollar, a
favourite haven for Gulf speculative and investor funds in the
past, banking sources said.
Despite uncertainties generated by the 6-1/2 year old Iran-
Iraq war on Kuwait's northern doorstep, bankers play down the
prospect of any significant capital flight.
The Kuwaiti dinar, whose value is set by the Central Bank
and was fixed today at 0.27095/129 to the dollar, is stronger
now than for several years.
Fears that the dollar may fall further will prompt second
thoughts among Kuwaiti investors prepared to consider switching
funds into the U.S. Currency, the sources said.
"There is a distinct exchange rate risk," they added.
Bankers said the dollar slump hurt many investors behind
the last major capital outflow in 1984, encouraged then by 18
pct U.S. Interest rates and the start of Iranian attacks on
neutral shipping in the Gulf.
The Central Bank calculates its dinar exchange rate against
a basket of currencies. Bankers do not know the basket's exact
make-up but say it is weighted heavily in favour of the dollar.
Some bankers believe any strengthening of the dinar beyond
0.27000 to the dollar might provoke investors into shifting
funds into the U.S. Currency. "They may ask:When will the dollar
be so cheap again?" one said.
And with dinar interest rates now roughly one pct below
those for the dollar, they say the Central Bank faces a
delicate balancing role requiring further flexibility.
Bankers said the current, expansionary interest rate policy
is only part of a broader attempt to encourage local investment
and strengthen the backbone of the economy.
They estimate the economy, measured in terms of GDP and
allowing for inflation, shrank 19 pct in 1986 after an 8.1 pct
contraction the previous year.
Bankers also noted recent measures to stimulate stock
market activity, capped today by sharp cuts in brokerage fees
to make it cheaper for investors to trade.
REUTER
|
CSX <CSX> UNIT CHAIRMAN RETIRES | CSX Corp said
that Joseph Abely, chairman and chief executive officer of
CSX's Sea-Land Corp unit, will retire by the end of the month.
The company said he will be replaced by Robert Hintz,
executive vice president of CSX and president and chief
executive officer of the company's energy and properties
groups.
Reuter
|
BRAZIL FUND SHOULD START OPERATING SOON | A Brazil Fund through which foreign
investors will be able to buy stocks in Brazilian companies
should start operating in about two months, the Securities and
Exchange Commission said.
A spokesman told Reuters that four institutions in the
United States were interested in participating in the Fund --
Merrill Lynch and Co Inc, Salomon Brothers Inc, the IFC and the
First Boston Corp.
The spokesman said the Fund, approved last December, was
expected to attract about 100 mln dlrs of investments.
Reuter
|
JAPAN BUYS 4,000 TONNES OF CANADIAN RAPESEED | Japan bought 4,000 tonnes of Canadian
rapeseed for last-half May/first-half June shipment, nearly
completing buying for May needs, trade sources said.
Price details were not available.
Reuter
|
SOUTH KOREA BUYS 50,000 TONNES CANADIAN WHEAT | South Korea yesterday bought 50,000
tonnes of Canadian feed wheat for late June/early July shipment
at 95.00 dlrs per tonne FOB Vancouver, trade sources said.
Reuter
|
SENATE PREPARING FOR NEW U.S. BUDGET BATTLE | Congress returned from its Easter
recess ready for the annual Spring budget battle that promises
to be a partisan dispute.
The budget fight pitting Democrats against President Reagan
and Republicans is expected to get underway this week in the
Senate late this week and last at least another week. It is
taking on new prominence because of current trade woes.
That is because the budget problems and its associated huge
deficits are said to be at the root of related international
trade friction currently worrying financiers.
As the dollar slides downward on global markets and stock
exchanges gyrate wildly, the trade dispute involving the United
States and Japan once again is spreading fears of a major trade
war between the two trading giants for the first time since
World War II.
Ostensibly that dispute is over U.S. charges that Japan is
refusing to open its markets to semi-conductor chips and the
resulting U.S. tariffs doubling prices of Japanese televisions
and small computers.
Behind the elements of a brewing trade war which neither
side wants, is the dilemma of the U.S. budget and its deficit.
Some analysts say the financial markets may be waking up to
the economic realities that the huge debt cannot continue to
grow without repercussions.
A large portion of the U.S. debt has been financed by
foreigners from their accumulated trade surpluses. But if they
withdraw this support the result can only be further problems,
including higher interest rates for Americans.
In a nutshell, the U.S. budget process has now moved to the
showdown stages in Congress. Reagan's own trillion dollar
spending budget for the government year 1988, starting Oct. 1,
was trounced badly in the House on April 9.
The Senate takes up a plan similar to one that passed the
House, calling for slashing the deficit from its estimated 171
billion dlr level next year to about 134 billion dlrs, through
defense and domestic spending cuts and about 18.5 billion dlrs
in new, unspecified, taxes. As the Senate prepares to take up
its own budget plan, majority Democrats predict there will be
passage of a bill, only after a protracted partisan battle.
In the House, not one Republican voted for the budget,
which passed by 230 to 192. In the Senate, none of Reagan's
Republicans voted for the budget as it passed out of the Senate
Budget Committee for full Senate consideration.
A key Senate Budget Committee source told Reuters he
believes this very unusual unanimous opposition was by design
among congressional Republicans, perhaps with the tacit
approval of the White House.
"Republicans want Democrats to take the heat for any tax
hikes and defense cuts," he said.
In the coming weeks, the source said, Democrats will press
for a bipartisan budget and seek a negotiated budget with
Reagan -- who already is opposed to the idea. But "it is not
clear how the Republicans will act," he added.
He said Republicans may propose their own plan for lower
taxes and more defense spending, which they did not offer after
Reagan's budget was clobbered in an early vote in the House.
When Reagan entered the White House in 1981, he inherited
what was labelled a huge deficit from Jimmy Carter that wound
up to be nearly 79 billion dlrs that year.
Despite Reagan's promise to balance the budget by 1983,
critics note that his administration's record of accumulated
debt is estimated over one trillion dlrs, or 1,100 billion
dlrs.
That is money the government must borrow, and pay back, and
many analysts say it is what kept the dollar high and caused
the worst U.S. trade deficit ever.
Last year the United States bought goods from the world
worth 169.8 billion dlrs more than what it sold, including
purchases of 58.6 billion dlrs in Japanese goods.
While Congress is trying to attack the trade deficit on one
front through a get-tough trade bill promising retaliatory
measures unless all markets are opened, its success so far
against the budget deficit has been marked by limited progress.
Congress, which controls the pursestrings, has put the
deficit on a downward path from its record high of 220.7
billion dlrs accumulated in fiscal 1986, which ended Sept. 30.
Because of the Gramm-Rudman-Hollings balanced budget law
enacted in late 1985, there has been pressure on Congress to do
more than talk about deficits.
That law, named after Republican Senators Phil Gramm of
Texas, Warren Rudman of New Hampshire and Democrat Ernest
Hollings of South Carolina, calls for a balanced budget by 1991
through a series of set deficit targets that Congress must meet.
The law has been followed, even though an enforcement
mechanism to mandate automatic across-the-board cuts if
Congress misses its goal was stricken by the Supreme Court.
The legislators have followed the targets -- on paper. But
in reality, the goal has actually been missed. For example,
Congress last year approved legislation to meet the 1987 target
of a 144 billion dlr deficit. But even after approving the
numbers, the deficit for 1987 is estimated at over 170 billion
dlrs -- far off the target.
This year the target is 108 billion dlrs and that goal is
expected to be missed widely.
Reuter
|
COMMONWEALTH EDISON <CWE> SELLS MORTGAGE BONDS | Commonwealth Edison Co is raising 360
mln dlrs via a two-tranche offering of first and refunding
mortgage bonds, said lead manager Morgan Stanley and Co Inc.
A 200 mln dlr issue of bonds due 1990 has an 8-1/8 pct
coupon and was priced at 99.775 to yield 8.21 pct, or 65 basis
points over comparable Treasury securities.
A 160 mln dlr offering of bonds due 1992 has an 8-5/8 pct
coupon and was priced at 99.85 to yield 8.661 pct, or 78 basis
points more than Treasuries. Both tranches are non-callable for
life and rated A-3 by Moody's and A by S and P. Salomon
Brothers Inc co-managed the deal.
Reuter
|
BUSINESSMAN HAS ROYAL RESOURCES <RRCO.O> STAKE | James Stuckert, a Louisville, Ky.,
businessman, told the Securities and Exchange Commission he has
acquired 380,000 shares of Royal Resources Corp, or 5.7 pct of
the total outstanding common stock.
Stuckert said he bought the stake for 600,000 dlrs solely as
an investment.
Reuter
|
ATT <T> LAUNCHES SYSTEMS FOR SMALL BUSINESSES | American Telephone and Telegraph Co
introduced two communications systems, Spirit and Merlin, and
other products, in a bid to strengthen its position with small
businesses, the company said.
The Spirit system, with a basic price tag of 1,500 dlrs,
can handle up to six lines and 16 telephones and a more
advanced line which can handle up to 24 lines and 48
tlelphones.
ATT said the Merlin line, which starts at 2,500 dlrs, can
handle up to 32 lines and 72 telephones.
ATT said the new products will eventually replace the
current Merlin product family. Some of the systems will be
available in May and others in the third quarter.
ATT also introduced software enhancements for the System
25, for business that require PBX voice and data communications
and need up to 150 phones. These and other enhancements will be
available in the third quarter, the company said.
Reuter
|
SPAIN MAINTAINS FIVE PCT INFLATION TARGET | Spanish Secretary of State for the
economy Guillermo de la Dehesa said the government maintained
its five pct inflation target for this year although a 0.6 pct
increase in March pushed the rise in the year on year consumer
price index to 6.3 pct.
De la Dehesa said the March rise, announced today by the
National Statistics Institute, was not entirely satisfactory
but acceptable.
The year on year rate at the end of February was six pct.
Prices rose 8.3 pct last year.
The March rise included a 0.05 pct increase correcting an
error in last January's consumer price index. Economists had
earlier said the error could have been as high as 0.2 pct.
De la Dehesa said seasonal increases in food prices pushed
the index up in March and he expected the rate to be lower in
April.
The Communist-led Workers Commissions union said the March
price rise showed inflation was going up again and the
government looked increasingly unlikely to meet its five pct
target.
The Workers Commissions said the inflation trend fuelled
unions's claims to wage increases beyond the government's
recomendation to limit wage rises at around five pct.
Spain is being affected by a two-month-old wave of strikes
for wage rises. Government officials note wage settlements so
far this year have yielded average increases upwards of six
pct, while unions say the figure is higher then seven pct.
REUTER
|
API SAID STATISTICS TO BE RELEASED TONIGHT | The American Petroleum Institute said
it plans to release its weekly report on U.S. oil inventories
tonight, even though last Friday was a holiday.
Reuter
|
GCA <GCA> COMPLETES FINANCIAL RESTRUCTURING | GCA Corp said it completed its
previously announced plan of financial restructuring under
which Hallwood Group Inc <HWG> took a 14 pct interest in the
company, a maker of semiconductor manufacturing equipment.
The company said it also implemented a one-for-50 reverse
stock split.
Under terms of the plan, the company exchanged about 109
mln dlrs in debt to creditors and suppliers for 43 mln dlrs in
cash, and warrants to purchase 2.2 mln shares of its common
stock. GCA also raised 71.7 mln dlrs through the sale of common
stock.
Reuter
|
SEC WARNS SECURITIES DEALERS ON HIGH MARK-UPS | The Securities and Exchange
Commission reminded securities dealers that its mark-up
disclosure requirements also applies to transactions on
zero-coupon securities.
Dealers and brokers are required by U.S. securities law to
disclose their mark-ups if they are excessive, the SEC said in
a public notice.
Further, excessive mark-ups on securities transactions,
whether disclosed or not, violate the rules of the national
Association of Securities Dealers Inc and Municipal Securities
Rulemaking Board, it said.
In a separate action, the SEC filed a friend-of-the-court
brief in a private civil case involving a complaint against
Merrill Lynch over excessive mark-ups on zero-coupon bonds. The
case is being appealed to the U.S. Appeals Court.
The lower court dismissed the complaint, finding antifraud
provisions of securities laws do not prohibit undisclosed
excessive mark-ups on securities transactions.
The SEC is urging the appeals court to reverse the
decision, citing its nearly 50 year-old position that
undisclosed excessive mark-ups by securities dealers violate
the general antifraud provisions of securities laws.
Reuter
|
SOUTHAM INC <STM.TO> 1ST QTR NET | Oper shr 32 cts vs 37 cts
Oper net 18.9 mln vs 21.6 mln
Revs 352.1 mln vs 323.0 mln
Note: 1987 net excludes extraordinary gain of 2.8 mln dlrs
or five cts shr from sale of surplus property.
Reuter
|
LOCTITE CORP <LOC> 3RD QTR MARCH 31 NET | Shr 96 cts vs 53 cts
Net 8,663,000 vs 4,798,000
Revs 89.7 m ln vs 66.8 mln
Nine mths
Shr 2.33 dlrs vs 1.67 dlrs
Net 21.1 mln vs 15.1 mln
Revs 241.3 mln vs 192.8 mln
Reuter
|
U.S. CONGRESS STILL ANGRY WITH JAPAN - ABE | Special Japanese envoy Shintaro Abe
said in a brief interview with Reuters that the feeling in the
U.S. congress is "very severe" against Japan.
However, Abe said he believed that neither Congress nor the
Reagan administration wants to undermine relations with Japan.
He said the Reagan administration showed "relative
understanding" of how Japan is trying to alleviate its U.S.
trade imbalance. Abe said he was convinced "Congress and the
administration had the same view that the relationship between
Tokyo and Washington should not be undermined."
Reuter
|
GLENFED INC <GLN> 3RD QTR MARCH 31 NET | Oper shr 1.54 dlrs vs 82 cts
Oper net 33.7 mln vs 17.66 mln
Revs 473.1 mln vs 419.0 mln
Nine mths
Oper shr 4.60 dlrs vs 2.39 dlrs
Oper net 100.4 mln vs 51.0 mln
Revs 1.38 billion vs 1.21 billion
Assets 18.5 billion vs 15.5 billion
Deposits 13.00 billion vs 11.29 billion
Loans 15.04 billion vs 12.56 billion
Note: Oper net excludes extraordinary loss 6,636,000 and
11.9 mln for 1987 qtr and nine mths on prepayment of borrowings
from the Federal Home Loan Bank Board.
Oper also excludes tax credits of 15.8 mln vs 5,954,000 for
qtr and 17.8 mln vs 11.6 mln for nine mths.
Reuter
|
HORIZON INDUSTRIES INC <HRZN> 2ND QTR NET | Qtr ended April four
Shr profit eight cts vs loss 22 cts
Net profit 341,000 vs loss 903,000
Revs 58.4 mln vs 46.3 mln
Six mths
Shr profit 35 cts vs loss 19 cts
Net profit 1,466,000 vs loss 767,000
Revs 121.4 ln vs 95.9 mln
Reuter
|
FED DATA PROVIDE NEW EVIDENCE OF TIGHTER POLICY | U.S. banking data released today are
too distorted to draw sweeping conclusions about monetary
policy, but they do support the market's assumption that the
Federal Reserve has started to tighten its grip on credit,
economists said.
"It's clear that the Fed has firmed somewhat. Discount
window borrowings, net free reserves, the Fed funds rate
average and the pattern of reserve additions are all consistent
with a modest tightening," said Dana Johnson of First Chicago
Corp.
Johnson, and several other economists, now estimate that
the Fed funds rate should trade between 6-1/4 and 6-3/8 pct.
Discount window borrowings in the week to Wednesday were
935 mln dlrs a day, producing a daily average for the two-week
statement period of 689 mln dlrs, the highest since the week of
December 31, 1986, and up from 393 mln dlrs previously.
Moreover, banks were forced to borrow a huge 5.2 billion
dlrs from the Fed on Wednesday - the highest daily total this
year - even though unexpectedly low Treasury balances at the
Fed that day left banks with over two billion dlrs more in
reserves than the Fed had anticipated.
However, economists said it is almost certain that the Fed
is aiming for much lower discount window borrowings than
witnessed this week. They pointed to two factors that may have
forced banks to scramble for reserves at the end of the week.
First, economists now expect M-1 money supply for the week
ended April 29 to rise by a staggering 15 to 20 billion dlrs,
partly reflecting the parking in checking accounts of the
proceeds from stock market sales and mutual fund redemptions to
pay annual income taxes.
As banks' checking-account liabilities rise, so do the
reserves that they are required to hold on deposit at the Fed.
Required reserves did indeed rise sharply by 2.5 billion
dlrs a day in the two weeks ended Wednesday, but economists
said the Fed may not have believed in the magnitude of the
projected M-1 surge until late in the week and so started to
add reserves too late.
Second, an apparent shortage of Treasury bills apparently
left Wall Street dealers with too little collateral with which
to enagage in repurchase agreements with the Fed, economists
said. Thus, although there were 10.3 billion dlrs of repos
outstanding on Wednesday night, the Fed may have wanted to add
even more reserves but was prevented from doing so.
"It's not at all inconceivable that the Fed didn't add as
much as they wanted to because of the shortage of collateral,"
said Ward McCarthy of Merrill Lynch Economics Inc.
McCarthy estimated that the Fed is now targetting
discount-window borrowings of about 400 mln dlrs a day,
equivalent to a Fed funds rate of around 6-3/8 pct.
After citing the reasons why the Fed probably has not
tightened credit to the degree suggested by the data,
economists said the fact that the Fed delayed arranging
overnight injections of reserves until the last day of the
statement period was a good sign of a more restrictive policy.
Jeffrey Leeds of Chemical Bank had not been convinced that
the Fed was tightening policy. But after reviewing today's
figures, he said, "It's fair to say that the Fed may be moving
toward a slightly less accommodative reserve posture."
Leeds expects Fed funds to trade between 6-1/4 and 6-3/8
pct and said the Fed is unlikely to raise the discount rate
unless the dollar's fall gathers pace.
Johnson at First Chicago agreed, citing political
opposition in Washington to a dollar-defense package at a time
when Congress sees further dollar depreciation as the key to
reducing the U.S. trade surplus with Japan.
Reuter
|
RORER GROUP INC <ROR> 1ST QTR NET | Oper shr profit 34 cts vs loss 78 cts
Oper net profit 7,434,000 vs loss 17.0 mln
Revs 201.2 mln vs 171.7 mln
Note: Year-ago oper exludes gain on sale of businesses of
139.6 mln.
Year-ago oper includes charges of 27.8 mln resulting from
allocation of the purchase price of Revlon's businesses to
inventory and 7.1 mln for restructuring costs.
Reuter
|
MILD COFFEE GROWERS TO MEET IN GUATEMALA | A large group of "other milds"
coffee-growing nations will hold talks in Guatemala next month
to map their strategy for next September's meeting of the
International Coffee Organisation (ICO).
Mario Fernandez, executive director of the Costa Rican
coffee institute, said delegates from Mexico, the Dominican
Republic, Peru, Ecuador, India, Papua New Guinea and five
central american nations will participate in the two-day
strategy session beginning May 4.
The main topic will be reform of what many producing
countries perceive as the ICO's unfair distribution of export
quotas, Fernandez said.
He said Costa Rica would press for quotas "based on the
real production and export potential of each country in the
past few years" and to distribute quotas based on "historic"
production levels rather than recent harvests and crop
estimates.
Reuter
|
US STUDY DISCUSSES DROPPED COMSAT-CONTEL MERGER | A congressional study today said the
proposed, but now apparently abandoned, merger of the
Communications Satellite Corp <CQ> and Contel Corp <CTC>
would technically be legal but could violate the spirt of the
law setting up COMSAT.
Two weeks ago before the study was completed, Contel
announced it would seek to terminate the proposed merger.
The study by the non partisan Congressional Research
Service (CRS) said "the proposed merger appears to comply,
technically, with the mandates or letter of statutes, if may
nevertheless violate the spirit of the law."
Comsat, created by a 1962 act of Congress, and Contel, a
corporation of local telephone and communications firms, filed
with the Federal Communications Commission last November 3 an
application for merger. Several firms had protested the
proposed merger.
In an analysis of the law, the research service issued
several critical comments about the structure of the new firm
and said apparent domination by Contel of a restructured COMSAT
would have broken the spirit of the law setting up
COMSAT.COMSAT is the U.S. arm of Intelstat, the international
satellite communications firm.
Reuter...^M
|
SETBACK SEEN FOR NAKASONE IN JAPANESE PARLIAMENT | Japan's Lower House passed the 1987
budget after the ruling Liberal Democratic Party agreed to a
mediation proposal that could kill its plan to introduce a
controversial sales tax, political analysts said.
The move was seen as a major blow to Prime Minister
Yasuhiro Nakasone, the leading advocate of the five pct tax.
Some analysts predicted Nakasone might be forced to step
down just after the June summit of leaders from major
industrial democracies, well before his one-year term is due to
expire at the end of October.
The ruling party though was anxious to pass the budget
before Nakasone leaves next week for the U.S. so that he could
tell Washington the Japanese government was doing its utmost to
boost the sagging economy and imports.
Reuter
|
BANK OF JAPAN INTERVENES IN TOKYO MARKET | The Bank of Japan intervened just after
the Tokyo market opened to support the dollar from falling
below 140.00 yen, dealers said.
The central bank bought a moderate amount of dollars to
prevent its decline amid bearish sentiment for the U.S.
Currency, they said.
The dollar opened at a record Tokyo low of 140.00 yen
against 140.70/80 in New York and 141.15 at the close here
yesterday. The previous Tokyo low was 140.55 yen set on April
15.
REUTER
|
AUSTRALIA'S M-3 MONEY SUPPLY RISE 1.5 PCT IN MARCH | Australia's M-3 money supply growth was
1.5 pct in March and 11.3 pct in the 12 months to March, the
Reserve Bank said.
This compared with a revised rise of 0.5 pct in February
and 11.1 pct in the year to end-February.
The Reserve Bank said the M-3 data for March was affected
by the start of the operations of <National Mutual Royal
Savings Bank Ltd>, which has resulted in the transfer of
deposits (equivalent to around 1.5 pct of m-3) from the United
Permanent Building Society to National Mutual Royal Savings
Bank Ltd.
The Reserve Bank said M-3 money supply in March was 110.77
billion Australian dlrs compared with a revised 109.11 billion
in February and 99.48 billion in March, 1986.
M-3 is deposits of the private sector held by trading and
savings banks plus holdings of notes and coins.
REUTER
|
JAPANESE PARLIAMENT PASSES 1987 BUDGET | Parliament's Lower House passed the 1987
budget shortly before midnight local time, official
parliamentary sources said.
The move followed agreement by the ruling Liberal
Democratic Party to a proposal that could kill its plan to
introduce a controversial sales tax, political analysts said.
The move was seen as a major blow to Prime Minister Yasuhiro
Nakasone, the leading advocate of the five pct tax, they said.
Some analysts said Nakasone may be forced to step down
after the June summit of heads of major industrial democracies
and before his one-year term is due to expire at end-October.
Under the compromise agreed by the LDP and opposition
parties, Lower House Speaker Kenzaburo Hara will take charge of
the sales tax bill, appoint a ruling/opposition party council
to debate it and allow opposition leaders to review the present
tax system, analysts said.
Hara also verbally agreed to scrap the sales tax plan
entirely if the joint council fails to reach agreement on how
to handle the tax.
The opposition parties, who have been vociferously
attacking the sales tax plan for months, hailed the decision as
a great victory.
The opposition parties had already delayed passage of the
budget for three weeks after the April 1 start of the fiscal
year by intermittent parliamentary boycotts.
Although the LDP had more than enough votes to ram the
budget through parliament, it had been reluctant to do so for
fear of a backlash of public opinion, especially after its
setback in recent local elections due to the sales tax issue.
The ruling party though was anxious to pass the budget
before Nakasone leaves next week for the U.S. So that he could
tell Washington the Japanese government was doing its utmost to
boost the sagging economy and imports.
According to Kyodo News Service, Nakasone told reporters he
did not think the sales tax was dead.
If the sales tax is dropped, it could prove a major boost
to the economy because it would increase the government budget
deficit, economists said.
The sales tax was originally scheduled to be introduced
next January to help offset the loss of government revenues
stemming from a cut in income and corporate taxes due to go
into effect this month.
REUTER
|
Dollar trades at post-war low of 139.50 yen in Tokyo - brokers
| |
Many major nations yesterday intervened heavily to aid dlr - Miyazawa
| |
STANDARD OIL SAYS BRITISH PETROLEUM SHARE TENDER EXTENDED UNTIL MAY 4
| |
JAPAN HAS NO PLANS FOR NEW MEASURES TO AID DLR | Finance Minister Kiichi Miyazawa said
Japan has no plans to take new emergency measures to support
the dollar, other than foreign exchange intervention.
He also told reporters that many major nations yesterday
intervened heavily to support the dollar against the yen.
Yesterday's intervention was large in terms of the
countries involved and the amounts expended, he said.
With the continued fall of the dollar against the yen,
0speculation had arisen in currency markets here that Japan
might take new measures to support the U.S. Currency, such as
curbing capital outflows.
Miyazawa said that yesterday's news of a 4.3 pct rise in
U.S. Gnp in the first quarter had been expected. Although the
growth looks robust on the surface, the figures in reality are
not that good, he said.
He said the ruling Liberal Democratic Party (LDP) is
expected to come up with a final set of recommendations of ways
to stimulate the Japanese economy before Prime Minister
Yasuhiro Nakasone leaves for Washington next week.
Commenting on yesterday's report on economic restructuring
by a high-level advisory panel to Nakasone, Miyazawa said it
was important to put the panel's recommendations into effect.
REUTER
|
STANDARD OIL SAYS BP EXTENDS TENDER | Standard Oil Co <SRD> said in a brief
announcement issued after a meeting of its board of directors
that British Petroleum Co PLC <BP.L> (BP) has extended its 70
dlr per share tender offer until midnight May 4.
The offer for the 45 pct of Standard shares not owned by BP
had been due to expire midnight April 28.
Standard Oil said discussions with BP concerning the tender
were continuing but provided no further details.
"So long as those discussions continue, no recommendation
will be made to Standard Oil shareholders regarding the offer,"
Standard said.
Standard directors met at the company's Cleveland
headquarters on Thursday in a regularly scheduled meeting. The
spokesman was unable to say if the meeting would continue on
Friday.
A committee of independent directors previously obtained an
opinion from First Boston Corp that the Standard shares were
worth 85 dlrs each, 15 dlrs more than the BP offer.
REUTER
|
QANTAS TO BUY EXTENDED RANGE BOEING 767 AIRCRAFT | State-owned <Qantas Airways Ltd> said it
has placed a firm order for a single Boeing Co <BA.N> 767-300ER
(extended range) aircraft for delivery in August 1988 at a cost
of 150 mln Australian dlrs, including spares.
A statement said it also has options to buy six more and
will decide in mid-1987 whether to use engines made by United
Technologies Corp <UTX> unit Pratt and Whitney or General
Electric Co <GE>.
The 767-300ER can carry more cargo and passengers and is
more fuel-efficient than the 767-200, six of which Qantas has
in service.
REUTER
|
JAPAN AGENCY URGES WATCH ON YEN RISE EFFECTS | Japan should look out for possible
effects of the yen's recent sharp rise on Japan's economy as
growth remains slow, the government's Economic Planning Agency
said in a monthly report submitted to cabinet ministers.
EPA officials told reporters the underlying trend of the
economy is firm but growth is slow due to sluggish exports.
Customs-cleared exports by volume fell 4.9 pct
month-on-month in February after a 2.8 pct fall in March.
The government must take adequate economic measures to
expand domestic demand and stabilise exchange rates in a bid to
ensure sustained econonic growth, the report said.
The report made a special reference to the yen's renewed
rise and its effect on the economy, the officials said, adding
the agency's judgement of current economic conditions has not
changed since last month.
The EPA said last month Japan's economy is beginning to
show signs of bottoming out, conditional upon exchange rates.
The dollar fell below 139 yen in early trading today - a
post-war low.
REUTER
|
JAPAN DOES NOT INTEND TO EASE CREDIT - OFFICIALS | The Bank of Japan does not intend to ease
credit policy further, bank officials told Reuters.
They were responding to rumours in the Japanese bond market
that the central bank was planning to cut its 2.5 pct discount
rate soon, possibly before Prime Minister Yasuhiro Nakasone
leaves for Washington on April 29.
Bank of Japan governor Satoshi Sumita will be in Osaka,
western Japan on April 27 and 28 for the annual meeting of the
Asian Development Bank, making a rate cut announcement early
next week a virtual impossibility, they said. April 29 is a
holiday here.
REUTER
|
NATIONAL MUTUAL CUTS AUSTRALIAN PRIME TO 17.75 PCT | National Mutual Royal Bank Ltd said
it would cut its prime rate to 17.75 pct from 18.25, effective
April 27.
The cut follows a trend toward lower rates started last
month and accelerated by Westpac Banking Corp, which yesterday
cut its prime to 17.50 pct from 18.25 pct. Westpac's 17.50 pct
is the lowest prevailing rate.
REUTER
|
ELDERS PURCHASE OF CANADIAN BREWER APPROVED | Elders IXL Ltd <ELXA.S> said the
Canadian government approved its bid for <Carling O'Keefe Ltd>.
Elders earlier announced it was buying 10.9 mln shares, or
50.1 pct of Carling, from the Canadian subsidiary of Rothmans
International Plc <ROT.L> for 18 Canadian dlrs each.
Elders chairman John Elliott said in a statement when the
offer for the ordinary shares closed on April 23, that
acceptances representing over 93 pct of outstanding shares had
been received. <IXL Holdings> would proceed to acquire the rest
compulsorily, he said.
REUTER
|
ECUADOR TO USE COLOMBIA OIL LINK FOR FIVE YEARS | Ecuador will use a new pipeline link
with Colombia to export crude oil for the next five years,
Colombian mines and energy minister Guillermo Perry said.
The link will be inaugurated on May 8. It was built to
allow Ecuador to resume exports of crude oil halted on March 5
by earthquake damage to its Lago Agrio to Balao pipeline,
Once that pipeline is repaired, Ecuador will exceed its
OPEC quota in order to offset lost income and pay debts
contracted with Venezuela and Nigeria since the quake, Ecuador
mines and energy minister Javier Espinosa said.
The two ministers were speaking at a news conference after
signing an agreement for joint oil exploration and exploitation
of the jungle border zone between the two nations. Drilling
will begin in September.
"The agreement to transport Ecuadorean crude oil is not only
for this emergency period but for the next five years, with
possibility of an extension. Between 20,000 and 50,000 barrels
per day (bpd) will be pumped along it," Perry said.
Espinosa said Ecuador planned to pump 35 mln barrels
through the link in the next five years, at a cost of 75 cents
per barrel during the first year.
The 43-km link, with a maximum capacity of 50,000 bpd, will
run from Lago Agrio, the centre of of Ecuador's jungle
oilfields, to an existing Colombian pipeline that runs to the
Pacific port of Tumaco.
Espinosa said the 32-km stretch of the link built on the
Ecuadorean side cost 10.5 mln dlrs. Perry gave no figures for
Colombia's 11 km segment but said it was "insignificant compared
with what we are going to earn."
OPEC member Ecuador was pumping around 250,000 bpd before
the quake. Lost exports of 185,000 bpd are costing it 90 mln
dlrs per month, Espinosa said.
REUTER
|
SUHARTO PARTY SET FOR EASY WIN IN INDONESIA POLLS | President Suharto's ruling Golkar party
appears to have made substantial gains with over 75 pct of the
votes counted in Indonesia's national elections.
Figures released by the election commission showed Golkar
on target to take 70 pct of the vote.
Provisional figures indicate that with results of 68.9 mln
ballots announced, Golkar had won 50.29 mln, the Moslem-based
United Development Party 10.93 mln and the nationalist
Democratic Party 7.69 mln.
The total electorate is 94 mln and officials said they
thought about 90 pct of the votes had been counted.
|
DENMARK'S NOVO INDUSTRI GETS SWISS SHARE LISTING | Danish-based insulin and enzymes
producer Novo Industri A/S <NVO.CO> said in a statement that
its "B" shares would be listed on stock exchanges in Zurich,
Basel and Geneva from May 4.
The aim is to create broader European interest in Novo
stock, currently listed in Copenhagen, London and New York,
said the statement issued after yesterday's ordinary general
meeting.
Novo said more than 50 pct of its B shares were owned by
U.S. Investors. The new listings, the first by a Danish company
on the Swiss exchanges, will not involve issuing of new share
capital.
REUTER
|
TAIWAN TO TENDER UP TO 87,000 TONNES OF U.S. MAIZE | The joint committee of Taiwan's maize
importers will tender on April 29 for two cargoes of U.S.
Maize, totalling between 54,000 and 87,000 tonnes for delivery
between May 21 and June 25, a committee spokesman told Reuters.
Taiwan has set a calendar 1987 import target of 2.92 mln
tonnes compared with imports of 3.05 mln in 1986. About 80 pct
of the imports are expected to come from the U.S. And the rest
from South Africa, the spokesman said.
REUTER
|
SWISS COMMITTED TO JOINT CURRENCY INTERVENTION | The Swiss National Bank will continue to
take part in concerted intervention on currency markets as
necessary, president Pierre Languetin told the bank's annual
meeting.
He said the dollar had on occasion hit highs or lows which
bore no relation to economic fundamentals and cooperation
between all monetary authorities was necessary to prevent it
breaching thresholds that would damage everyone.
"We are resolved -- as we have done in the past -- to take
part in concerted intervention to the extent that this is
possible and desirable," Languetin said.
Languetin said Switzerland had noted with satisfaction the
six nation Paris accord on currency stabilisation measures in
February, adding that it had anchored the principle of
strengthened international cooperation.
He said measures such as recent concerted intervention were
useful in the short term.
But he added, "The (Paris) Louvre accord can produce no
lasting effects without a correction of the fundamental
imbalances, without a reduction of the American budget deficit
and without stronger growth in Europe and Japan."
Languetin said certain changes would probably be necessary
in the "too expansive" monetary policy of the United States,
adding that there was a prevailing view that U.S. Money supply
was expanding too strongly.
"If this should last long the dollar could only be
stabilised at the cost of a substantial easing in monetary
policy on the part of the other central banks, which would in
turn create the basis for a new wave of world-wide inflation,"
he said. One positive factor was that monetary authorities in
the most important countries had not relinquished their
anti-inflation policies.
REUTER
|
JAPANESE BUYERS ACCEPT CUBA SUGAR DELAY - TRADERS | Several Japanese buyers have accepted
postponement of between 150,000 and 200,000 tonnes of Cuban raw
sugar scheduled for delivery in calendar 1987 until next year
following a request from Cuba, trade sources said.
Cuba had sought delays for some 300,000 tonnes of
deliveries, they said. It made a similar request in January
when Japanese buyers agreed to postpone some 200,000 tonnes of
sugar deliveries for 1987 until 1988.
Some buyers rejected the Cuban request because they have
already sold the sugar on to refiners, they added.
Japanese buyers are believed to have contracts to buy some
950,000 tonnes of raw sugar from Cuba for 1987 shipment.
But Japan's actual raw sugar imports from Cuba are likely
to total only some 400,000 to 450,000 tonnes this year, against
576,990 in 1986, reflecting both the postponements and sales
earlier this year by Japanese traders of an estimated 150,000
tonnes of Cuban sugar to the USSR for 1987 shipment, they said.
They estimated Japan's total sugar imports this year at 1.8
mln tonnes, against 1.81 mln in 1986, of which Australia is
expected to supply 550,000, against 470,000, South Africa
350,000, against 331,866, and Thailand 400,000, after 390,776.
REUTER
|
INDIA AIMS TO EXPORT 280 MLN KILOS TEA BY 1990 | India plans to export about 280 mln
kilos of tea a year by 1990, up from estimates of 202 mln in
1986 and 220 mln in 1985, Minister of State for Commerce Priya
Ranjan Dasmunsi told Parliament.
Bad weather reduced domestic tea output in 1986 causing a
shortfall in exports. To boost exports the government recently
introduced higher cash compensatory support on packet tea,
excise tax rebate of 50 paise per kilo of bulk tea, full rebate
of excise duty on packet tea exports and exemption of customs
duty on filter paper used in making tea bags, he said.
REUTER
|
UBS CONFIRMS FIRST QUARTER PROFITS LOWER | Union Bank of Switzerland <SBGZ.Z> said
first quarter profits were higher than in the third and fourth
quarters of 1986, but were below the record results of the
first quarter of last year.
Nevertheless, the bank said overall performance in the
first three months was satisfactory, with the situation
particularly promising in commission, foreign exchange,
securities and trading sectors.
In a newspaper interview on April 10, chief executive
Nikolaus Senn said first quarter earnings had been below last
year's level.
The bank said its assets grew by 1.2 billion francs in the
three month period to reach 153.3 billion at end-March. If it
had not been for the decline in the dollar, the rise would have
been as much as 4.3 billion francs, it said.
REUTER
|
NORWEGIAN CENTRAL BANK RESERVES RISE IN MARCH | Norway's Central Bank reserves totalled
74.77 billion crowns in March, against 70.56 billion in
February and 98.55 billion in March 1986, the Central Bank said
in its monthly balance sheet.
Foreign exchange reserves totalled 67.05 billion crowns,
compared with 67.21 billion in February and 92.08 billion
crowns a year ago. Gold reserves totalled 284.7 mln crowns,
unchanged from the previous month and last year's figure.
Central Bank special drawing right holdings were 3.07
billion crowns, compared with 3.06 billion in February and 2.27
billion a year ago.
REUTER
|
BANK OF SPAIN RAISES INTEREST RATES | The Bank of Spain announced a one-point
rise in overnight call money rates to 16-5/8 pct, which a
central bank spokesman said was part of government efforts to
control money supply growth.
The increase came after yesterday's one-point rise and
pushed interbank rates to 19 19-1/2 pct from 18-1/8 19 pct.
The M-4 money supply, liquid assets in public hands, the
broadest measure of money supply, rose 14.1 pct in the first
three months compared with this year's eight pct target. Money
supply growth was 11.4 pct last year.
REUTER
|
BUNDESBANK BOUGHT DOLLARS FOR YEN IN OPEN MARKET | The Bundesbank intervened in the open
market to buy dollars for yen ahead of the Frankfurt fixing,
dealers said.
They said the Bundesbank bought dollars for around 139.80
yen in small amounts in the half-hour running up to the 1100
GMT fix.
The Bundesbank did not intervene when the dollar was fixed
in Frankfurt at 1.7969 marks.
Earlier the Bank of Japan bought dollars steadily in the
Far East, but could not stop heavy selling which pushed the
dollar to a post-war low of 139.05 yen at one point.
REUTER
|
NO SWISS NATIONAL BANK INTERVENTION SEEN | A Swiss National Bank spokesman said the
bank had not intervened in currency markets today and dealers
said they had seen no evidence of Bundesbank action outside
West Germany.
Frankfurt dealers reported that the Bundesbank bought
dollars for yen in the open market there.
Zurich dealers said the absence of the Swiss National Bank
suggested that no concerted intervention was under way.
Asked earlier today if the Swiss National Bank had
intervened, the spokesman said "not yet."
REUTER
|
BANK OF JAPAN INTERVENES IN TOKYO MARKET | The Bank of Japan intervened just after
the Tokyo market opened to support the dollar from falling
below 140.00 yen, dealers said.
The central bank bought a moderate amount of dollars to
prevent its decline amid bearish sentiment for the U.S.
Currency, they said.
The dollar opened at a record Tokyo low of 140.00 yen
against 140.70/80 in New York and 141.15 at the close here
yesterday. The previous Tokyo low was 140.55 yen set on April
15.
REUTER
|
FRENCH BEET PLANTERS SEE FAVOURABLE SOWINGS START | French sugar beet plantings are off to a
good start, thanks to generally favourable winter and spring
weather, the CGB beet planters' association said.
It said in a report that soil structure was likely to be
excellent for good preparation as a result of a cold,
reasonably showery, winter.
By April 15, 27.8 pct of the area had been sown against
three pct at the same year ago date.
It added the area sown was likely to be reduced this year
by 1.2 pct to 445,000 hectares.
REUTER
|
JAPAN AGENCY URGES WATCH ON YEN RISE EFFECTS | Japan should look out for possible
effects of the yen's recent sharp rise on Japan's economy as
growth remains slow, the government's Economic Planning Agency
said in a monthly report submitted to cabinet ministers.
EPA officials told reporters the underlying trend of the
economy is firm but growth is slow due to sluggish exports.
Customs-cleared exports by volume fell 4.9 pct
month-on-month in February after a 2.8 pct fall in March.
The government must take adequate economic measures to
expand domestic demand and stabilise exchange rates in a bid to
ensure sustained econonic growth, the report said.
The report made a special reference to the yen's renewed
rise and its effect on the economy, the officials said, adding
the agency's judgement of current economic conditions has not
changed since last month.
The EPA said last month Japan's economy is beginning to
show signs of bottoming out, conditional upon exchange rates.
The dollar fell below 139 yen in early trading today - a
post-war low.
REUTER
|
DEALERS SEE MODERATE DUTCH CENTRAL BANK YEN SALES | The Dutch central bank has intervened
in the currency markets today, in apparent concerted action
with other central banks, foreign exchange dealers said.
They detected selling of the yen for dollars, which some
estimated would run to a moderate 200 mln guilders, comparable
to token Dutch intervention reported last week.
Other dealers, however, said they believed today's moderate
intervention had been in guilders against dollar.
The dealers agreed the intervention was minimal and more a
political gesture than a market moving force.
REUTER
|
NAKASONE EXPECTED TO SURVIVE SALES TAX DEFEAT | Prime Minister Yasuhiro Nakasone's
unpopular sales tax plan has been defeated and although fellow
politicians and political analysts agree he has suffered a
grave loss of face only a few are willing to write him off.
Michio Watanabe, a Nakasone faction member and deputy
secretary general of the ruling Liberal Democratic Party, LDP,
is one of those who believes he will survive.
"He's tough, he won't step down," but "will hang on to the
death" at least until his term ends on October 30, Watanabe told
Reuters.
The sales tax scheme was a mainstay in Nakasone's plans to
revamp the nation's tax system for the first time in 36 years.
Watanabe acknowledged that the five pct sales tax was a
mistake.
"It was too greedy," he said. A two or three pct tariff might
have been easier to swallow, he said.
One popular school of thought among skeptical analysts is
that Nakasone will be remain in office at least until the June
8-10 summit of industrialised nations in Venice.
A Western diplomatic observer said he believed that
Nakasone would be at the summit as prime minister. But he would
not bet on his chances of survival up until October.
Masamichi Inoki, a senior fellow at the conservative
Institute of Peace and Security, said he did not think Nakasone
had suffered irreparable damage.
"He will certainly hang on for the summit," Inoki said.
In any event, the general belief now is that the five pct
sales tax, as championed by Nakasone, is a dead issue but that
an indirect tax, in another form, will be introduced by the
LDP.
Inoki said he believed the issue would be resurrected as
early as the next Diet (parliament) meets. The current session
finishes on May 27.
The newspaper Tokyo Shimbun expressed another stream of
opinion, stating that Nakasone might well get another year to
deal with the unfinished and unpopular business of tax reform.
The government has to find a way of generating revenue to
support an expected glut of elderly Japanese.
And the only means of drumming up the money is to levy an
indirect tax, said Watanabe, a former Minister of International
Trade and Industry.
The next prime minister will have to grapple with an
indirect tax, and "whoever is the next prime minister won't be
in the job very long," Watanabe said.
Watanabe said he doubted the next prime minister would be
any of the three so-called "New Leaders," LDP secretary general
Noboru Takeshita, LDP executive council chairman Shintaro Abe,
and Finance Minister Kiichi Miyazawa. Each of them controls a
powerful LDP faction. "It will be somebody else," he said.
Political science professor Rei Shiratori of Dokkyo
University gave one of the darkest readings on Nakasone's
political future.
"Soon after the Venice summit, there will be a move to
change the government by the New Leaders," Shiratori said.
"He can't fight on," he said.
He said Nakasone had a special emotional attachment to the
sales tax plan as the last and most important item in Japan's
purge of policies inherited from the U.S. Occupation.
Shiratori said an indirect tax will have to be levied, but
"to introduce such a tax, they'll have to change the prime
minister."
Nevertheless, Shiratori said he believes Nakasone could
hang on until as late as September.
REUTER
|
JAPAN DOES NOT INTEND TO EASE CREDIT - OFFICIALS | The Bank of Japan does not intend to ease
credit policy further, bank officials told Reuters.
They were responding to rumours in the Japanese bond market
that the central bank was planning to cut its 2.5 pct discount
rate soon, possibly before Prime Minister Yasuhiro Nakasone
leaves for Washington on April 29.
Bank of Japan governor Satoshi Sumita will be in Osaka,
western Japan on April 27 and 28 for the annual meeting of the
Asian Development Bank, making a rate cut announcement early
next week a virtual impossibility, they said. April 29 is a
holiday here.
REUTER
|
JAPAN HAS NO PLANS FOR NEW MEASURES TO AID DLR | Finance Minister Kiichi Miyazawa said
Japan has no plans to take new emergency measures to support
the dollar, other than foreign exchange intervention.
He also told reporters that many major nations yesterday
intervened heavily to support the dollar against the yen.
Yesterday's intervention was large in terms of the
countries involved and the amounts expended, he said.
With the continued fall of the dollar against the yen,
speculation had arisen in currency markets here that Japan
might take new measures to support the U.S. Currency, such as
curbing capital outflows.
Miyazawa said that yesterday's news of a 4.3 pct rise in
U.S. Gnp in the first quarter had been expected. Although the
growth looks robust on the surface, the figures in reality are
not that good, he said.
He said the ruling Liberal Democratic Party (LDP) is
expected to come up with a final set of recommendations of ways
to stimulate the Japanese economy before Prime Minister
Yasuhiro Nakasone leaves for Washington next week.
Commenting on yesterday's report on economic restructuring
by a high-level advisory panel to Nakasone, Miyazawa said it
was important to put the panel's recommendations into effect.
REUTER
|
JAPAN DOCK STRIKE TO CONTINUE OVER WEEKEND | A strike by Japanese dockworkers will
continue over the weekend as no breakthrough is in sight, a
Japan Harbour Transportation Association spokesman said.
The association has not yet agreed on a schedule for
preliminary negotiations with the National Council of Harbour
Workers Unions, because the council insisted on talks with
shippers as well as dock management, he said.
The strike, which began on Tuesday, halted container
movements to points inside Japan from the ports of Tokyo,
Yokohama, Nagoya, Osaka, Kobe, Kitakyushu, Shimizu, Yokkaichi
and Hakata.
Reuter
|
TAIWAN WINS REVISED TEXTILE ACCORD FROM U.S. | Taiwan and the U.S. Have revised and
extended their textile export agreement after negotiations in
Washington this week, a spokesman for the Taiwan Textile
Federation said.
Charles Chen told Reuters the original three year accord
has been extended by one year to the end of 1989. The U.S. Has
agreed to raise the limit on annual growth of Taiwan's textile
and apparel exports to one pct from 0.5 pct for calendar 1989,
he said. "The new accord is more fair and gives breathing space
to our textile makers (so they can) diversify their exports to
other nations," he added.
Chen said the revised agreement puts Taiwan on similar
textile exporting terms to Hong Kong and South Korea. But
despite the changes, Taiwanese firms have lost orders to rivals
in Hong Kong and South Korea because of the strong Taiwan
dollar, he said. The Taiwan currency has risen 17 pct against
the U.S. Dollar since September 1985 while the Korean won rose
by some six pct and the Hong Kong dollar was stable.
Taiwan's textile exports to the U.S. Amounted to 2.8
billion U.S. Dlrs last year out of total exports to the U.S. Of
7.8 billion. Textile exports are expected to remain the same
this year, Chen said.
REUTER
|
JAPAN RULING PARTY PREPARES FINAL ECONOMIC PACKAGE | Japan's ruling Liberal Democratic Party
(LDP) drew up a final plan to expand domestic demand and boost
imports in time for Prime Minister Yasuhiro Nakasone's visit to
Washington next week, LDP officials said.
The plan calls for additional fiscal measures worth more
than 5,000 billion yen, a large-scale supplementary budget for
the current fiscal year started April 1, and concentration of
more than 80 pct of the annual public works budget in the first
half of the year, they said.
Nakasone will explain the measures to U.S. Officials during
his visit to Washington starting April 29.
The LDP plan will be the basis for a government package of
pump-priming measures expected to be unveiled in late May.
The LDP said Japan should do more to reduce its trade
surplus. Its plan is expected to help increase economic growth
led by domestic demand, officials said.
The government was also urged to review the ceiling on
budgetary requests for investment purposes in 1988/89. The
government has imposed a five pct cut in investment outlays in
the past five years in line with Nakasone's avowed policy of
fiscal reforms.
The plan called on Japan to promote government purchases of
foreign goods and private sector imports of manufactured goods
by improving import financing, and to make clear official
procurement procedures for foreign supercomputers.
The LDP also said Japan should contribute further to
society at large through measures such as doubling its official
development assistance to 7.6 billion dlrs in five years or so
instead of seven years as the government had originally
promised.
The government was urged to work out a program to recycle
funds from Japan's trade surpluses to debt-ridden countries.
The officials said the funds to be recycled would include
those from the private sector and others provided through the
government Export-Import Bank of Japan and Japan's Overseas
Economic Cooperation Fund.
The plan also calls for the government to take steps to
help the development of African and other less developed
nations.
The LDP called for adequate and flexible management of
monetary policy, such as a cut in interest rates on deposits
with the Finance Ministry's Trust Fund, and a tax cut to
promote plant and equipment investment.
REUTER
|
FRIEDMAN INDUSTRIES <FRD> MERGER NOT APPROVED | Friedman Industries Inc said
shareholders at a special meeting held for a vote on its
proposed merger into companies controlled by Venezuelan
businessman John Castellvi failed to provide a high enough
affirmative vote for approval.
It said about 75 pct of the shares entitled to vote at the
meeting were voted in favor, but an 80 pct vote was needed.
The company said a significant number of shares held in
street name were not voted. As a result, it said it adjourned
the meeting until April 28 and, if the merger is approved,
closing is expected late next week.
Reuter
|
BANKERS CONFIRM JAPAN LONG-TERM PRIME UNCHANGED | Long-term bank sources confirmed their
banks have decided to leave the current 5.2 pct long-term prime
rate unchanged.
The current rate has been in effect since March 28.
The bankers said the rate was unchanged because the falling
dollar and the bond market rally made it difficult to clarify
the current level of yen interest rates.
There had earlier this week been expectations of a 0.2
point cut from today in response to the fall in the secondary
market yield in five-year long-term bank debentures, but
bankers said last night the rate would be unchanged.
REUTER
|
DEALERS SEE MODERATE DUTCH CENTRAL BANK YEN SALES | The Dutch central bank has intervened
in the currency markets today, in apparent concerted action
with other central banks, foreign exchange dealers said.
They detected selling of the yen for dollars, which some
estimated would run to a moderate 200 mln guilders, comparable
to token Dutch intervention reported last week.
Other dealers, however, said they believed today's moderate
intervention had been in guilders against dollar.
The dealers agreed the intervention was minimal and more a
political gesture than a market moving force.
REUTER
|
SHELL CANADA <SHC.TO> SEES BETTER YEAR | Shell Canada Ltd said
performance in all business segments in the first quarter
showed improvement over last year and it expects "significantly
enhanced performance" in 1987.
Shell Canada reported first quarter earnings of 103 mln
dlrs, or 90 cts per share, up from 40 mln dlrs, or 32 cts per
share.
Oil products earnings were 38 mln dlrs, up 19 mln dlrs from
last year, when margins were impaired by lower oil prices.
Shell Canada said chemical earnings were 17 mln dlrs in the
quarter, compared with a loss of five mln dlrs in 1986. The
styrene business saw significant improvement, stemming from an
increase in international demand.
Resources earnings increased by six mln dlrs to 46 mln
dlrs. Lower prices for all commodities were offset by the
removal of the Petroleum and Gas Revenue Tax, the impact of
lower royalty rates and higher volumes.
Gross production of crude oil and natural gas liquids
increased seven pct from the first quarter of last year to
11,200 cubic meters a day, Shell said.
Shell Canada also said natural gas sales volumes of 19.6
mln cubic meters a day was up five pct from last year.
Sulphur sales of 4,143 tonnes a day were up 70 pct.
The company also recorded benefits of 10 mln dlrs from the
acquisition of Shell Explorer Ltd. Interest expense for the
quarter was lower than in the previous year, due to the early
retirement of a 200 mln U.S. dlr debenture and the impact of a
stronger Canadian dollar on U.S. dollar-denominated debt.
Reuter
|
VALERO PARTNERS <VLP> WINS TAKE OR PAY CASE | Valero Natural Gas Partners
LP, 49 pct owned by Valero Energy Corp <VLO>, said a jury in
Sutton County, Texas, district court has found that it had no
liability for 21 mln dlrs in take-or-pay claims that had been
alleged by Lively Exploration Co.
Take-or-pay claims involve allegations that natural gas
supply contracts require volume of natural gas to be paid for
even if not taken. As a result of declining markets, most
pipelines, like Valero, do not have customers for all the gas
that could be delivered by producers, such as Lively.
Valero said it used as its primary defense the Texas
Railroad Commission's rules that require intrastate pipelines
to take ratably from their producers and in times of surplus
take gas in accordance with priority categories set by the
commission.
Reuter
|
SERVICE RESOURCES <SRC> OFFERS SORG <SRG> STAKE | Service Resources Corp said its Chas.
P. Young Co subsidiary, which has offered to acquire Sorg Inc
in a friendly merger at 22 dlrs per share, is willing to
explore the possibility that members of the Sorg family and
other Sorg shareholders could continue to hold an equity
position in the combined company.
The company also said it has received a commitment for up
to 66 mln dlrs in financing from Security Pacific Corp <SPC>
for the merger, the repayment of Sorg's bank debt and working
capital of the combined company.
Reuter
|
HUDSON'S BAY <HBC.TO> SELLS ROXY <CNR.TO> STAKE | Hudson's Bay Co said it agreed to sell
its entire 54.5 pct interest in Canadian Roxy Petroleum Ltd, a
total of about 7.5 mln shares, to Westcoast Transmission Co Ltd
<WTC> for 11 dlrs a share.
Hudson's Bay said proceeds of about 82 mln dlrs will be
used to reduce corporate debt. It said the sale was part of a
program of concentrating on its core business of department
stores and real estate.
The sale is subject to regulatory approvals.
Reuter
|
U.S., JAPAN TRADE TIES REMAIN HOSTILE | The visit this week by a special
Japanese envoy has done little to defuse Japan's trade
frictions with the United States, U.S. and congressional
leaders say.
White House and congressional leaders took a wait-and-see
stance, after a series of meetings with former Japanese Foreign
Minister Shintaro Abe, who was here paving the way for the
April 29-May 2 visit of Prime Minister Yasuhiro Nakasone.
They are withholding judgment until Nakasone's visit, with
one senator saying Japan had promised to stimulate its economy
and open its markets to foreign goods in the past, but it was
time now for action.
The U.S. trade deficit last year was a record 169.8 billion
dlrs, with more than one-third of it in trade with Japan.
Congress is ready to approve tough trade legislation to try
to turn around the deficit, which has cost millions of U.S.
jobs and closed thousands of factories.
Much of the anger has been directed at Japan.
U.S.-Japan trade friction was further fueled by President
Reagan's April 17 decision to impose 100 pct tariffs on 300 mln
dlrs worth of Japanese goods in retaliation for unfair
practices in semiconductor trade.
Reagan said he imposed the tariffs on personal computers,
television sets and hand tools because Japan failed to keep an
agreement to end dumping semiconductors in world markets at
less than cost and to open its home market to U.S. products.
Abe had asked Reagan to end the tariffs quickly, but U.S.
officials said the curbs would not be dropped until Japan had
shown it was honoring the pact, which could take several
months.
White House spokesman Marlin Fitzwater, asked if Nakasone's
visit might help to defuse trade tensions, said "whether
progress can be made depends on how you want to measure it."
He added, "I would expect progress to be made. If you want
to measure that in terms of lifting the sanctions, that's more
doubtful."
Congressmen were equally skeptical.
Abe met Senate and Democratic leaders active in trade
legislation, telling them of Japan's plan to spur domestic
spending by 34 billion dlrs and open its markets to a wide
range of goods, including supercomputers and farm products.
Sen. John Danforth, a Missouri Republican, said after the
meeting, "We have heard promises in the past, but the question
now is whether there will be real action."
Abe also met House leaders pressing for a tough trade bill,
including Congressman Richard Gephardt, a Missouri Democrat.
Gephardt is sponsoring legislation to penalize nations with
large deficits and which are guilty of unfair trade practices.
Gephardt's legislation would hit Japan, as well as Taiwan,
South Korea, and West Germany. The bill is expected to pass the
House next week - coinciding with Nakasone's visit - but its
fate in the more moderate Senate is uncertain. A bipartisan
group of senators, however, told Nakasone in a letter released
as Abe was holding Senate meetings, that fresh Japanese-U.S.
trade strife would erupt if Japan's markets were not soon
opened to American goods.
The signers included Democratic leader Robert Byrd of West
Virginia, Republican leader Robert Dole of Kansas and others
ranging from moderate to hardline on trade issues.
They said in the letter there was growing U.S. sentiment
that Japan was fighting opening its markets and "evidence to the
contrary is necessary to combat this perception, or it is
likley that additional efforts will be attempted to close off
the American market to Japanese goods.
Reuter
|
CHINA TEXTILE EXPORTS RECORD HIGH IN 1ST QUARTER | China's textile exports in the first
quarter reached a record 2.2 billion dlrs, an increase of 49
pct on the year-earlier period, the People's Daily said.
Its overseas edition gave no country breakdown. The U.S. Is
one of China's largest markets for textiles.
U.S. Commerce Secretary Malcolm Baldrige told a press
conference that Chinese textile and apparel exports to the U.S.
In 1986 rose 65 pct in value from the 1985 level, a rate of
growth that "is not sustainable nor equitable to our other major
foreign suppliers." China is now the United States' largest
textile supplier, he said.
Baldrige declined to say what would be an acceptable growth
rate for Chinese textile exports. Negotiations on the next
China-U.S. Textile agreement are due to begin in May, he said.
"There clearly has to be a limit," he said. "Our economy can
only absorb so much textiles. It is in both of our interests to
reach a satisfactory conclusion. Without an agreement, we would
have a chaotic situation."
Reuter
|
SWISS GROWTH SEEN SLOWING THIS YEAR AND NEXT | The growth of the Swiss
economy will likely slow to 2.2 pct this year and 1.9 pct in
1988 after reaching 2.8 pct last year, according to a study by
a group at Basle University's Institute of Applied Economics.
It blamed the expected slowdown partly on a disappointing
outlook for exports caused by the weaker dollar. Exports would
likely grow by 2.8 pct this year and by 3.0 pct in 1988, after
3.0 pct in 1986, the group predicted.
Final domestic demand will also fall back, to a likely 3.0
pct this year and 2.3 pct next, after 4.1 pct in 1986. However,
the domestic picture will likely be mixed.
The study said investment in plant and equipment would
continue to be the main motor for the growth in domestic
demand, although it was unlikely to grow as fast as last year's
7.4 pct, rising this year by 4.5 pct and by 2.8 pct in 1988.
While the growth in private consumption is expected to fall
back to 2.5 pct this year and 2.1 pct in 1988 from last year's
3.1 pct, public consumption spending will likely grow by 1.9
pct in 1987 and 2.0 pct next year, after 1.5 pct in 1986.
Consumer prices were seen rising by 1.7 pct this year and
2.4 pct in 1988, after just 0.8 pct in 1986. Unemployment
should fall back to 0.7 pct from last year's 0.8 pct.
REUTER
|
CHRYSLER <C> SETS NEW AMC <AMO> TARGET DATE | Chrysler Corp said it and Regie
Nationale des Usines Renault <RENA.PA> agreed to set May 5 as
the new target date when Chrysler aimed at reaching a
definitive agreement for Chrysler for acquire American Motors
Corp.
AMC is 46.1 pct owned by Renault.
The two companies originally had targeted April 23 as
completion date for reaching a definitive agreement.
Chrysler, which signed a letter of intent on March 9 to
acquire AMC, said "considerable progress has been made, but a
number of issues remain to be resolved."
Reuter
|
MOODY'S RATES ADB'S SENIOR SAMURAI BONDS AAA | Moody's Investors Service Inc said it
assigned a top-flight Aaa rating to African Development Bank's
15 billion yen senior Samurai bond due 2002 issued in Tokyo.
The rating reflects the support provided by the callable
capital of non-borrowing member countries, which include the
U.S., Japan, Canada, West Germany and several other European
nations.
Moody's said that African Development Bank's sound lending,
borrowing and liquidity policies also support the top rating
grade.
Reuter
|
SWISS SAY THEY INTERVENED WITH BUNDESBANK AND FED | The Swiss National Bank bought dollars
and sold yen in concerted action along with the Bundesbank and
the U.S. Federal Reserve Board, a bank spokesman told Reuters.
"We intervened in dollar-yen with the Bundesbank and the
Fed," he said. He declined to specify the extent of the
intervention, which took place at around 1200 GMT, after
reports by Frankfurt dealers the Bundesbank was in the market.
The intervention failed to prevent the dollar dipping to
1.4548 Swiss francs at around 1320 GMT, close to its all-time
low of 1.4510 francs set on September 26, 1978. It then
steadied to 1.4560/75 francs.
REUTER
|
U.K. MONEY MARKET GIVEN FURTHER 518 MLN STG HELP | The Bank of England said it provided the
money market with further assistance worth 518 mln stg this
afternoon.
It bought 349 mln stg of band one bank bills at 9-7/8 pct
and 169 mln stg of band two bank bills at 9-13/16 pct.
This brings its total assistance on the day to 543 mln stg
compared with a liquidity shortage it has estimated at around
850 mln stg.
REUTER
|
HOG AND CATTLE SLAUGHTER GUESSTIMATES | Chicago Mercantile Exchange floor
traders and commission house representatives are guesstimating
today's hog slaughter at about 280,000 to 287,000 head versus
257,000 week ago and 311,000 a year ago.
Saturday's hog slaughter is guesstimated at about 40,000 to
55,000 head.
Cattle slaughter is guesstimated at about 121,000 to
126,000 head versus 128,000 week ago and 136,000 a year ago.
Saturday's cattle slaughter is guesstimated at about 19,000
to 35,000 head.
Reuter
|
U.S. PERSONAL INCOME ROSE 0.2 PCT IN MARCH | U.S. personal income rose 0.2 pct,
or 5.4 billion dlrs, in March to a seasonally adjusted annual
rate of 3,603.9 billion dlrs, the Commerce Department said.
The increase followed an upwardly revised 1.3 pct rise in
February. Earlier, the department said income rose 0.9 pct in
February.
Personal consumption expenditures rose 0.3 pct, or 8.9
billion dlrs, to 2,882.6 billion dlrs in March after rising a
revised 2.4 pct in February instead of the previously reported
1.7 pct rise, the department said.
Last month's income gain matched a 0.2 pct rise in November
and was the lowest since June when income was unchanged. The
spending rise was the weakest since January's 2.0 pct decline.
The department said the slowdown in income was mainly due
to a drop in subsidies to farmers. Excluding that factor,
personal income rose 0.4 pct in March and 0.7 pct in February.
Wages and salaries rose 7.4 billion dlrs last month after
gaining 16.6 billion dlrs in February, while manufacturing
payrolls declined 1.3 billion dlrs after rising 2.5 billion
dlrs in February.
Reuter
|
EC TO OFFER ARGENTINA GRAIN SALE COMPENSATION | The European Community is to offer
Argentina compensation for its loss of maize and sorghum
exports to Spain following Spain's accession to the EC, EC
sources said.
They said the offer will be made next week in Geneva,
headquarters of the General Agreement on Tariffs and Trade
(GATT), and will also involve products other than cereals. They
gave no further details.
Argentine exports of sorghum to Spain fell to zero last
year from 300,000 tonnes in 1985, while maize sales fell to
15,000 tonnes from 994,000, official EC statistics show.
The sources noted that an agreement between the EC and the
U.S. guarantees special access to the Spanish market for two
mln tonnes of non-EC maize and 300,000 tonnes of sorghum each
year for the next four years.
But they said various details of this accord will tend to
inhibit imports from Argentina.
These include a provision for reduction of the amounts if
Spain imports cereals substitutes, and the EC's plan to import
the special maize and sorghum on a regular monthly basis.
Argentina tends to have exportable quantities only three or
four times a year.
Reuter
|
CONSOLIDATED GAS <CNG>HIGH BIDDER ON GULF TRACTS | Consolidated Natural Gas Co said its
CNG Producing Co subsidiary, bidding alone or with partners,
was the apparent high bidder on six of seven tracts it south at
Wednesday's sale of federal oil and gas leases in the Gulf of
Mexico.
The company said it share of the six bids totaled 6.2 mln
dlrs. Its 100 pct interest bids were on three offshore tracts
-- West Cameron 209, 302 and 303. Consolidated has a 50 pct
interest in the bid for Eugene Island 375 and Ship Shoal 128
and 129.
The remaining interest in 139 is held by Sun Energy
Partners <SLP>, which is 96.3 pct owned by Sun Co Inc <SUN>.
<Union Texas Petroleum Corp>, which is 49.7 pct owned by
Allied-Signal Inc <ALD>, is Consolidated's partner on the other
two tracts.
Reuter
|
GM, ISUZU IN U.K. TRUCK JOINT VENTURE | General Motors Corp's <GM> Bedford
Trucks subsidiary has signed a memorandum of understanding with
its affiliate Isuzu Motors Ltd <ISUM.T> to negotiate a van
manufacturing joint venture in the U.K.
The proposals would involve doubling output at the loss
making plant at Luton in southern England to around 40,000 vans
a year by 1990.
Bedford, faced with reduced demand for heavy trucks in the
last few years, stopped most of its heavy truck production at
the end of 1986. GM would have a 60 pct stake in the venture
and Izuzu 40 pct
GM holds a 38.6 pct stake in Isuzu.
Bedford already has a link with Izuzu under which it
assembles some smaller Japanese vehicles in Britain.
A Bedford spokesman said financial details of the deal had
not yet been finalised although it was anticipated that the
venture would start without debt.
Currently the Luton van plant was estimated to be losing
some 500,000 stg a week, he added.
Bedford's other truck plant, which manufactures military
vehicles and trucks in kit form for export, was not involved in
the venture.
Analysts said the deal was another attempt by U.K. Truck
manufacturers to restructure operations and cope with heavy
losses and low demand that have hit the market over the past
few years.
In February, state-owned Rover Group Plc <BLLL.L> formed a
joint venture with <Van Doorne's Bedrijswagenfabriek Daf BV>
for truck manufacture, with Daf owning 60 pct.
Last year, Ford Motor Co's <F.N> U.K. Subsidiary formed a
joint venture with Fiat SpA's <FIAT.MI> 's <Iveco BV> for the
supply and marketing of small commercial vehicles in Britain.
Reuter
|
BETHLEHEM STEEL CORP <BS> INCREASES PRICES | Bethlehem Steel Corp said it was
raising the prices by 30 dlrs per ton on section extras on
certain wide planned structural shapes.
The increase will affect seven wide planned section groups
and will increase the price to 500 dlrs per ton from 470 dlrs
per ton, effective May 3, the company said.
Reuter
|
EXXON <XON> NET DROPS ON LOWER OIL, GAS PRICES | Exxon Corp reported a 37 pct drop in
first quarter profits to 1.07 billion dlrs citing lower oil and
gas prices.
The company said profits in the lastest quarter included a
26 mln drl restructuring gain from divestment of certain gold
operations overseas, while last year's first quarter profit of
1.71 billion dlrs included the initial charge of 235 mln dlrs
for its 1986 corporate reorganization.
First quarter revenues were down 13 pct to 19.44 billion
dlrs.
One time items aside, Exxon said, its first quarter results
were stronger than 1986's final quarter which included several
large asset sales and positive inventory adjustments.
It said earnings per share declined 36 pct reflecting the
company's continued purchases of its own common for the
treasury. During the first quarter, 5,085,000 shares were
acquired at a cost of 416 mln dlrs compared with 3,132,000 in
1986's fourth quarter.
Commenting on the first quarter, Exxon said crude oil
prices strengthened moderately within the quarter and were
higher than a year ago at the end of the quarter.
However, average crude prices for the quarter were below
the year ago period, leading to lower earnings for exploration
and production operations, Exxon said.
Also contributing to reduced earnings were lower natural
gas prices, primarily overseas, representing contract
adjustments representing contract adjustments tied to falling
product prices in 1986, the company said.
During the first quarter, the company said, intense
competition in both domestic and international markets served
to depress margins for refined products.
Exxon said the lower product margins resulted in
significantly reduced earnings for refining and marketing
operations, contrasting sharply with the unusually strong
margins prevailing in the first qtr of 1986.
It said savings from efforts to control costs and improve
efficiency helped soften the negative impact of lower oil and
natural gas prices.
Exxon said earnings from chemicals and power generation
activities showed consideratble improvement, remaining strong
throughout the period.
Reuter
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DANISH SUGAR BEET PLANTING BEHIND SCHEDULE | Sugar beet planting in Denmark is
about two weeks behind normal due to a severe winter and a wet
spring, a spokesman for the country's largest sugar beet
concern, De Danske Sukkerfabrikker A/S, said.
The weather has improved recently but very little beet has
been drilled so far.
"If good weather conditions continue, I think we will be
sowing next week or the following week," the spokesman said.
Reuter
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FED SPOKESMAN SAYS NO NEWS CONFERENCE PLANNED | The Federal Reserve Board has no
news conference or announcement planned for today, a Fed
spokesman said, dispelling market rumors that a statement was
pending.
"No such event is scheduled or planned," said spokesman Bob
Moore.
Rumors of a pending Fed announcement or news conference
circulated in financial markets, following a government report
that consumer prices advanced by 0.4 pct in March, suggesting a
rapid rise of inflation.
Reuter
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TEXAS COMMERCE <TCB> HOLDERS APPROVE MERGER | Texas Commerce Bancshares Inc said its
shareholders approved the merger of the bank with Chemical New
York Corp <CHL>, moving a step closer towards creating the
nation's fourth largest bank.
The company said each holder will receive 31.19 dlrs a
share in cash and securities, somewhat less than the 35 dlrs to
36 dlrs a share estimated when the deal was announced on
December 15, 1986. The deal is now worth 1.16 billion dlrs.
The merger is still subject to approval by Chemical's
shareholders, who will vote on the deal at the company's annual
meeting on April 28.
The company said 98.7 pct of the shareholders voting on the
merger cast an affirmative vote.
Chairman and chief executive officer Ben Love said all
regulatory hurdles to the merger have been cleared, including
last week's final approval of the transaction by the U.S.
comptroller of the currency. Pending approval of Chemical's
shareholders, the merger should be closed by May one, he added.
The bank said the combined company will have assets of
about 80 billion dlrs.
Reuter
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PHILLIPS <P> CITES LOWER OIL PRICES IN DECLINE | Phillips Petroleum Co cited
lower oil and gas prices in its first quarter loss of 32 mln
dlrs or 16 cts a shares compared with net income of 96 mln dlrs
or 39 cts a share in the year-ago period.
It also said there was a decline in crude oil production
due to its recently completed asset sales program.
Phillips also said it expects crude prices will continue to
be soft in the second and third quarters, but will improve
toward the end of the year.
Phillips also said that foreign currency transaction losses
in the first quarter were 10 mln dlrs compared with a gain of
46 mln dlrs in the fourth quarter of 1986 and a loss of one mln
dlrs in the first quarter of 1986.
Reuter
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