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TAIWAN BUYS 340,000 TONNES OF U.S. MAIZE
| The joint committee of Taiwan's maize
importers awarded contracts to five U.S. Companies for seven
shipments totalling 340,000 tonnes of maize for delivery
between September 1 and December 20, a committee official said.
United Grain Corp of Oregon won two contracts for the
supply of 110,000 tonnes, priced between 92.44 and 96.00 dlrs
per tonne, for September 1-15 and November 5-20 delivery.
Cargill Inc of Minnesota also took two shipments totalling
110,000 tonnes, priced between 93.45 and 94.65 dlrs per tonne,
for October 1-15 and December 5-20 delivery.
ADM Export Co of Minnesota received a 54,000 tonne cargo,
at 93.75 dlrs per tonne, for November 1-15 delivery.
Cigra Inc of Chicago won a contract to supply 33,000
tonnes, at 96.89 dlrs per tonne, for November 25-December 10
delivery.
Elders Grain Inc of Kansas took a 33,000 tonne shipment, at
96.06 dlrs per tonne, for December 1-15 delivery.
All shipments are c and f Taiwan.
| Other |
VIDEO DISPLAY <VIDE> TO SELL CABLE TV UNIT
| Video Display Corfp said it has reached
a tentiative agreement to sell its existing cable television
business for undisclosed terms and expects to report a gain on
the transaction. The buyer was not named.
The company said it will redeploy its service assets into
manufacturing and distribution.
It said the operations being sold accounted for about five
pct of revenues for the year ended February 28 and lost money.
| Commodities and Trade |
U.K. MONEY MARKET DEFICIT FORECAST AT 700 MLN STG
| The Bank of England said it forecast a
shortage of around 700 mln stg in the money market today.
Among the main factors affecting liquidity, bills maturing
in official hands will drain some 501 mln stg while a rise in
note circulation and bankers' balances below target will take
out around 285 mln stg and 45 mln stg respectively.
Partly offsetting these outflows, exchequer transactions
will add some 120 mln stg to the system today.
| Commodities and Trade |
JAPAN ALUMINIUM OUTPUT FALLS IN FEBRUARY
| Japanese aluminium output fell to 5,298
tonnes in February from 7,472 in January and 14,280 a year
earlier, preliminary International Trade and Industry Ministry
figures show.
Output fell sharply from a year ago as most aluminium firms
stopped smelting in the past year due to cheap imports,
industry sources said.
Sales and end-month stocks in tonnes were:
Feb 87 Jan 87 Feb 86
Sales 36,557 38,678 75,687
Stocks 53,248 56,620 127,083
| Commodities and Trade |
Bank of France buying dollars for yen - banking sources
|
Bank of France buying dollars for yen - banking sources
| Market and Economy |
JAPAN ALUMINIUM IMPORTS RISE IN FEBRUARY
| Japanese primary aluminium imports rose
to 98,170 tonnes in February from 91,157 in January and 94,926
a year earlier, the Japan Aluminium Federation said.
This brought total imports in 1986/87, ending March 31, to
1.09 mln tonnes against 1.25 mln a year earlier.
The February total included 19,102 tonnes from the U.S.
Against 16,577 in January and 9,933 a year ago, 24,391 from
Australia against 19,585 and 21,208, and 12,611 from Indonesia
against 5,891 and 16,601.
| Financial Reports |
MITSUBISHI MOTORS AUSTRALIA MAKES 19 MLN DLR LOSS
| <Mitsubishi Motors Australia Ltd>
(MMAL) reported a 19.64 mln dlr net loss in calendar 1986 from
a 5.80 mln dlr profit in 1985 on turnover of 837.79 mln dlrs
from 942.89 mln.
MMAL, 99 pct-owned by Mitsubishi Motors Corp <MIMT.T> and
Mitsubishi Corp <MITT.T>, said a tight market meant it had
failed to recover 19 mln dlrs in costs sustained because of a
weak Australian dollar.
The company said its Magna car dominated its market segment
with sales of 30,500 units against 26,900 in 1985. Total sales
were 64,100, down 15,900.
In addition, export of components to Japan increased with
15 mln dlrs invested in 1986 to expand output of aluminium
cylinder heads to 26,000 per month from 6,000, MMAL said.
Imported passenger car, light commercial and heavy vehicle
sales suffered while local-manufacturing profitability was
eroded by sales substantially below production capacity, it
said.
Australian car sales fell to 530,000 in 1985 from 696,000
in 1985, although MMAL said it lifted its market penetration to
12.1 pct from 11.5 pct.
No dividend was recommended.
| Corporate News |
INTEK DIVERSIFIED CORP <IDCC> 4TH QTR NET
| Shr three cts vs three cts
Net 98,20000 vs 91,898
Revs 2,843,520 vs 2,372,457
Year
Shr 13 cts vs 21 cts
Net 401,179 vs 681,374
Revs 10.5 mln vs 9,699,535
| Corporate News |
INDIA BUYS 20,000 TONNES OF RAPESEED OIL
| The Indian State Trading Corporation
(STC) bought a 20,000 tonne cargo of optional origin rapeseed
oil at its vegetable oil import tender yesterday, traders said.
The oil was for June 20/July 20 shipment at 321 dlrs per tonne
cif.
Traders said the STC attempted to buy eight cargoes of
processed palm oil but its price ideas were too low for
exporters. It also failed to secure soyoil for the same reason,
they said.
| Corporate News |
THAI TIN EXPORTS FALL IN FEBRUARY
| Thailand exported 1,120 tonnes of tin
metal in February, down from 1,816 tonnes the previous month
and 2,140 tonnes a year ago, the Mineral Resources Department
said.
It said major buyers last month were Britain, Japan, the
Netherlands, West Germany and the U.S.
| Commodities and Trade |
BOTSWANA BANS ZIMBABWE MEAT PRODUCTS, AGENCY SAYS
| Botswana has stopped importing almost
all meat products from Zimbabwe after reports of a suspected
outbreak of foot and mouth disease in the neighbouring country.
Botswana's official news agency, BOPA, announcing the ban
last night, quoted Agriculture Minister Daniel Kwelagobe as
saying only sterilised and canned animal products would be
allowed into the country, with immediate effect.
He said Zimbabwean veterinary officials had notified him
that they suspected foot and mouth disease had broken out at
Insiza, 100 km northeast of Bulawayo, capital of the mainly
cattle-ranching southwestern province of Matabeleland.
Zimbabwean officials were not immediately available for
comment.
The ban will affect products such as uncanned meat, milk,
ham, butter and bacon, BOPA reported.
Botswana exports much of its high-grade beef to the
European Community and augments its local supplies with meat
imports from Zimbabwe.
| Corporate News |
ALCAN AUSTRALIA BIDS FOR ALCAN NEW ZEALAND
| Alcan Australia Ltd <AL.S> said it will
make a 39.3 mln N.Z. Dlr cash bid for all the issued shares of
<Alcan New Zealand Ltd> at 1.80 N.Z. Dlrs each with a
four-for-three share alternative.
Both are 70 pct owned by Canada's Alcan Aluminium Ltd <AL>
which will take the share swap option, Alcan Australia deputy
chairman Jeremy Davis said in a statement. The remainder of
Alcan New Zealand's totalled issued 21.84 mln shares are
broadly held while Alcan Australia's are primarily held by
institutions. Alcan NZ last traded at 1.55 NZ dlrs, while Alcan
Australia today ended four cents down at 1.15 dlrs.
Davis said the offer, which is subject to approval by the
New Zealand Overseas Investment Commission, was a response to
the integration of the two countries' markets under the
Australia-New Zealand Closer Economic Relations treaty.
Alcan New Zealand shareholders who accept the offer would
also receive the final dividend of 10 cents a share normally
payable on May 27.
Alcan Australia would invite New Zealand representation to
its board and would apply to list its shares on the New Zealand
Stock exchange, Davis said.
| Corporate News |
Bundesbank bought dollars against yen in Frankfurt - dealers
|
Bundesbank bought dollars against yen in Frankfurt - dealers
| Corporate News |
ESSILOR INTERNATIONAL <ESSI.PA> YEAR ENDED DEC 31
| Provisional consolidated net attributable profit 242.1 mln
francs vs 240.1 mln.
Investments 318 mln vs 317 mln.
Dividend on ordinary shares 45 francs vs 42 francs.
Dividend on priority shares 51 francs vs 48 francs.
| Other |
SOUTH AFRICAN MAIZE ESTIMATE CALLED CONSERVATIVE
| The South African government's
maize production estimate of 7.8 mln tonnes for the current
year is "rather too conservative," leading grain and produce
merchants Kahn and Kahn Pty Ltd said.
The company, in a detailed report, estimated the harvest as
high as 8.3 mln tonnes and said if this forecast is met the
ostensible surplus for export will be approximately 2.25 mln
tonnes.
"This paradoxically is creating a problem for the Maize
Board," Kahn and Kahn said.
It said the maize export price currently is depressed and
the board is "probably confronted with the necessity to maintain
or slightly increase the internal price of maize again...To
offset the ostensible loss which must be faced" on exporting
surplus amounts.
| Corporate News |
ITALIAN 1987 GDP GROWTH FORECAST AT THREE PCT
| Italy's gross domestic product (GDP) will
grow three pct in real terms this year and 2.7 pct in 1988,
said economic information company Data Resources Europe Inc
(DRI).
Michel Girardin, DRI Europe's senior economist, said at a
conference that Italian GDP growth this year "will be mainly
driven by consumption and especially investment."
Girardin said the driving force behind GDP growth next year
will shift from domestic demand to exports as a result of
expected depreciation of the lira against the major currencies.
Italy's budget ministry said yesterday that GDP rose 2.7
pct in real terms in 1986.
DRI forecast that inflation, which was an average 6.3 pct
in 1986, will be under five pct this year and that interest
rates should drop two pct.
Girardin said the lira is expected to appreciate 14 pct
against the dollar this year following last year's 22 pct
appreciation. An expected German mark appreciation against the
dollar means that the lira should lose about six pct of its
value relative to the German currency, he said.
DRI estimates that foreign demand for Italian products
should grow by a 3.2 pct this year following last year's 6.2
pct increase.
| Other |
TRADE SURPLUS WILL POSE ADDED PRESSURES FOR JAPAN
| Japan today announced another mammoth
monthly trade surplus that economists said would be sure to
intensify already mounting pressure on the country for action.
"The world has every reason to be furious with Japan for not
moving more quickly," Jardine Fleming (Securities) Ltd economist
Eric Rasmussen said.
The Finance Ministry said today that the trade surplus
soared to 8.14 billion dlrs in February from 5.7 billion in
January and 4.77 billion a year ago.
The current account surplus, which includes trade in
services as well as goods, climbed to 7.38 billion dlrs last
month from 4.95 billion in January and 3.89 billion a year ago.
After being adjusted for seasonal fluctuations, the figures
look a bit better, but not much. On that basis, the trade
surplus declined slightly in February to 9.16 billion dlrs from
a record 9.58 billion in January.
"In the medium term we expect this modest improvement to
continue but the pace of progress may be too slow to ward off
further protectionism or further yen strength," said William
Stirling, economist at Merrill Lynch Japan Inc.
A strong yen would make Japanese goods more expensive on
world markets while making imports into the country cheaper.
"On a seasonally adjusted basis, we appear to be making some
progress on getting exports down," Jardine's Rasmussen said.
But imports do not seem to be picking up much because the
Japanese economy remains sluggish, he said.
Finance Ministry officials blamed last month's slower
import growth on a decline in oil imports as refiners worked
off stocks they had built up in January.
The officials took comfort from a decline in the volume of
exports last month, after an unexpected year-on-year increase
in January.
This means the effects of the two-year rise of the yen
against the U.S. Dollar are finally beginning to have an impact
on exports, they said.
But economists warned that may not be soon enough for
Japan's trading partners.
| Financial Reports |
THYSSEN SEES GOOD 1987 PROFIT DESPITE STEEL LOSSES
| Thyssen AG <THYH.F> said
it expects to post a good profit in 1987 despite anticipated
losses in its mass steel-making operations this year.
Managing board chairman Dieter Spethmann told the annual
meeting the group was satisfied with profit developments in the
first half of the 1986/87 financial year to September 30.
The group's other three divisions -- specialty steel,
capital goods and trading -- had made a profit so far in
1986/87, he added.
Spethmann said income from associate companies had also
been good in early 1986/87.
In 1985/86 Thyssen's world group profit fell to 370.1 mln
marks from 472.4 mln in 1984/85, reflecting costs linked to its
steel operations. The company's dividend was an unchanged five
marks.
A Thyssen spokesman told Reuters that planned job cuts at
subsidiary Thyssen Stahl AG would be higher than announced
earlier. Total job losses by 1989 were now expected to total up
to 7,800 against original projections of 5,900. Thyssen Stahl
employs some 40,000 people.
| Corporate News |
ECONOMIC SPOTLIGHT - DUTCH EXCHANGE RATE POLICY
| Recent slackness on Dutch capital
markets has led some bankers to question the Central Bank's
policy of pegging the guilder firmly to the West German mark
and to ask for more flexiblility in exchange rate policy.
While agreeing with the Bank's commitment to defend the
guilder strongly, some bankers want the Bank to make more use
of the range within which the guilder and the mark can
fluctuate against each other in the European Monetary System
(EMS).
Roelof Nelissen, chairman of Amsterdam-Rotterdam Bank NV
(Amro) said the Central Bank's policy was overcautious.
"I would like to suggest that the Bank use more freely the
range given to the guilder in the EMS," Nelissen said at the
presentation of Amro's 1986 annual report last week.
Within the EMS, the mark is allowed to fluctuate against
the guilder between 110.1675 and 115.235 guilders per 100.
The Central Bank maintains a stricter policy and tries to
keep the mark below the 113.00 guilders per 100. It regards a
stable exchange rate as its main target, using interest rate
policies to influence the exchange rate.
The preference of exchange rate goals above interest rate
aims goes almost undisputed in the Netherlands.
Critics say the Bank keeps the reins unnecessarily short.
Rabobank Nederland said in its latest economic bulletin: "By
maintaining the 113.00 limit, the Central Bank raises the
expectation it will always intervene above that level. If it
suddenly needs more flexibility it will find it very hard to
obtain."
Amro's Nelissen said relatively small changes in interest
rates and exchange rates could cause substantial flows of
securities business and sharp fluctuations on the Dutch capital
market. Large interest rate changes were often needed to bring
about small changes in the guilder/mark exchange rate, he
added.
Unlike Amro, Algemene Bank Nederland NV (ABN) says this is
a price the Dutch have to pay. It fully agrees with the Central
Bank's policy, director-general Julien Geertsema told Reuters,
noting a 1983 decision not to revalue the guilder fully with
the mark in the EMS hurt confidence in the Dutch currency.
"It is a pity we need such a wide interest rate difference
between West Germany to maintain the exchange rate," he added.
Interest rate differentials between West Germany and the
Netherlands are the main factors that trigger capital flows
between the two countries, as the economic performance of the
two does not differ much, economists said.
Data on 1986 capital flows between West Germany and the
Netherlands have not yet been released, but in 1985 they
accounted for only 10 pct of total trade flows between the two
countries, put at 110 billion guilders for 1986 by the
Dutch-German Chamber of Commerce earlier this month.
Economists say capital flows are more sensitive to interest
and exchange rates.
West Germany is the Netherlands' largest single trading
partner, taking 28 pct of Dutch exports and providing 26 pct of
imports in the last quarter of 1986, Central Bureau of
Statistics figures show.
At the moment, the rates for three month euromark deposits
trade around 4.0 pct while the same deposits in guilders have a
rate of around 5-7/16 pct.
Amro bank argues that the Dutch real interest rate will
even rise further because of expectations of deflation here in
1987, contrasting with slight inflation in West Germany.
In the Netherlands, the cost of living is expected to
decrease by 1.5 pct at a GNP growth rate of two pct, the Dutch
Central Planning Agency said in its 1987 forecast last month.
German GNP is seen rising by two to 2.5 pct, but with inflation
between zero and 1.0 pct, according to most German forecasts.
But despite this upward push on real Dutch rates, money
dealers do not expect the Central Bank to cut official rates
independently without prior moves by the Bundesbank.
Following the West German interest rate cuts on January 22,
the Dutch Central Bank did not lower its rates but set a 0.5
pct lower tariff for special advances and abandoned its credit
surcharge. Most traders were surprised by this move as they had
expected the Bank to follow suit unconditionally, they said.
The Bank said it lowered the rate with the largest impact
on the money market as far as the exchange rate permitted.
While not entirely unsympathetic to critics of its
policies, the Central Bank keeps its grip firm and the range
narrow.
"The European Monetary System is not only a relationship
between the guilder and the mark. Many times widening of the
margin between the two would implicate we have to buy or sell
large amounts of a third currency," Central Bank vice-director
Jan-Hendrik Du Marchie Sarvaas said.
"If we allowed the guilder to become a little cheaper, the
markets would start to believe it was weak. We don't want that.
We want to make clear that the guilder is just as strong as the
mark," he said.
| Financial Reports |
WORLD BANK CHIEF URGES MORE JAPANESE INVESTMENT
| World Bank President Barber Conable
called on Japan to boost investment in developing nations, for
its own sake as well as that of the world economy.
"Japan has the means to make a major contribution to
development in the Third World," he told about 500 Japanese
businessmen and academics. "I would be pleased with additional
support."
With 25 pct of the world's total banking assets, Japan
could do more to help assist indebted Third World countries
develop roads, bridges and other infrastructure, he said.
Conable said additional commercial bank investment would
also be to Japan's advantage.
It would profit from rechannelling its huge trade surplus
into Third World economies -- notably those in South America,
China and India -- that are likely to expand faster than those
in the developed world, he said.
Japan is now the second largest shareholder in the Bank's
concessionary lending affiliate, the International Development
Association (IDA). It has also agreed recently to expand its
contribution to another affiliate, the International Bank for
Reconstruction and Development (IBRD), Conable noted.
Conable said the World Bank was expanding its structural
adjustment loans, designed to encourage developing countries to
open their economies more to free competition and trade.
"Adjustment loans could rise to 30 pct (of total World Bank
loans) in the near future, though maybe not this year," Conable
told Reuters after his speech.
Such loans currently account for slightly over 20 pct.
| Corporate News |
HENKEL SELLS HAMBURG OIL AND FATS SUBSIDIARY
| Applied chemicals group Henkel KGaA
<HNKG.F> said it is selling its Hamburg vegetable oil and fats
subsidiary Noblee und Thoerl GmbH to Oelmuehle Hamburg AG.
A company spokesman declined to give the purchase price.
Noblee, a supplier of specialised refined oils and fats to the
food processing industry, had turnover of 161 mln marks last
year.
A Henkel statement said the divestment was part of the
company's strategy of concentrating on its core businesses. For
Oelmuehle, the acquisition of Noblee means access to new
markets, the statement added.
| Corporate News |
<ELDERS RESOURCES LTD> FIRST HALF ENDED DEC 31
| Net shr 7.6 cents vs 3.0
Int div 3.0 cents vs nil
Net 16.93 mln vs 5.47 mln
Sales 160.14 mln vs 2.35 mln.
Other income 6.29 mln vs 10.05 mln
Shrs 223.16 mln vs 183.68 mln.
NOTE - Two-for-seven non-renounceable rights issue of 8.0
pct five-year subordinated convertible redeemable unsecured
notes at 2.50 dlrs each. Each note is convertible into one
share. Div pay May 1. Div and issue reg April 16.
Net is after tax 7.04 mln dlrs vs 3.82 mln, interest 2.52
mln vs 1.14 mln, depreciation 2.43 mln vs 123,000 and
minorities 3.41 mln vs 2.91 mln but before net extraordinary
loss 821,000 vs nil.
Company is owned 46.99 pct by Elders IXL Ltd <ELXA.S>.
| Financial Reports |
U.S. SINGLE-FAMILY HOME SALES FELL 6.8 PCT IN JAN AFTER REVISED 12.1 PCT DEC GAIN
|
U.S. SINGLE-FAMILY HOME SALES FELL 6.8 PCT IN JAN AFTER REVISED 12.1 PCT DEC GAIN
| Corporate News |
NAKASONE TO VISIT WASHINGTON IN LATE APRIL
| Prime Minister Yasuhiro Nakasone will
make an official week-long visit to the United States from
April 29 and hold talks in Washington with President Reagan,
Chief Cabinet Secretary Masaharu Gotoda told reporters.
Government sources said Nakasone would try to resolve
growing bilateral trade friction and discuss the June Venice
summit of Western industrial democracies.
Foreign Minister Tadashi Kuranari will accompany Nakasone,
ministry officials said.
U.S. Industry sources in Washington said the White House
Economic Policy Council was recommending trade sanctions
against Japan for violating the two countries' agreement on
semiconductor trade.
Under the pact, Japan pledged to stop dumping microchips in
the U.S. And Asia and open its domestic market to U.S.
Semiconductors.
| Financial Reports |
BANK OF SPAIN SUSPENDS ASSISTANCE
| The Bank of Spain suspended its daily
money market assistance obliging borrowers to take funds from
the second window, where on Wednesday rates were raised to 16
pct compared with 14 pct for normal overnight funds.
Money market sources said in view of high borrower demand
the suspension was likely to remain in effect until April 3,
the start of the next 10-day accounting period for reserve
requirements. The suspension comes after the Bank yesterday
gave 1,145 billion pesetas assistance, a record high for this
year.
It said 90 billion pesetas was provided at the second
window.
| Financial Reports |
NAKASONE HARD-PRESSED TO SOOTHE U.S ANGER ON TRADE
| Prime Minister Yasuhiro Nakasone will
visit Washington next month in a bid to defuse mounting U.S.
Anger over Japanese trade policies, but Western diplomats said
they believed his chances of success were slim.
Boxed in by powerful political pressure groups and
widespread opposition to his tax reform plans, Nakasone will be
hard-pressed to come up with anything new to tell U.S.
President Ronald Reagan and key U.S. Congressmen, they said.
News of the week-long visit starting April 29 coincided
with news that Japan recorded a 8.14 billion dlr trade surplus
last month, more than 70 pct higher than a year earlier.
It also came one day after the Reagan Administration's
Economic Policy Council decided to take retaliatory action
against Japan for its alleged failure to live up to a joint
trade agreement on computer microchips.
Nakasone wants to go armed with two separate packages - one
designed to pep up Japan's sagging economy and imports in the
short-term, the other to redirect the country in the medium
term away from its over-dependence on exports for growth.
But government officials said political infighting could
rob both packages of much of their punch and might even prevent
one from seeing the light of day.
Nakasone has insisted that the government would not draw up
a package of short-term economic measures until after its
1987/88 budget passed parliament because he feared that would
amount to a tacit admission that the budget was inadequate.
But his hopes for quick passage of the budget in time for
his trip have been shattered by a parliamentary boycott by
opposition parties protesting over the sales tax plan.
Faced with the possibility that he might have to go to the
U.S. Virtually empty-handed, Nakasone today ordered his ruling
Liberal Democratic Party (LDP) to come up with its own
measures.
He can then tell Reagan the LDP package will form the basis
of the government's plans, without losing face in parliament
over the budget, political analysts said.
Officials working on the government's short-term economic
package said it would probably include interest rate cuts on
loans by government corporations, deregulation, measures to
pass on some of the benefits of the strong yen to consumers in
the form of lower prices, and accelerated public investment.
They said a record portion of state investment planned for
the entire 1987/88 fiscal year will take place in the first
half, probably over 80 pct.
Diplomats said that was unlikely to be enough to satisfy
Reagan, who is under pressure from the Democrat-controlled U.S.
Congress to take greater action to cut the huge American trade
deficit.
To complement the short-term measures, Nakasone is also
likely to present Reagan with details of Japan's longer-term
economic plans.
A high-ranking advisory body headed by former Bank of Japan
governor Haruo Maekawa is expected to come up with a final
report outlining concrete steps to redirect the economy days
before Nakasone is scheduled to leave for Washington.
Its recommendations are designed as a follow-up to
Maekawa's report last year on economic restructuring and are
likely to cover such potentially politically explosive areas as
agricultural reform and land policy, officials said.
While wanting to make the report as explicit and detailed
as possible, they said the political realities might force them
to water down some of the committee's recommendations.
A subcommittee is considering what the Japanese economy
might look like in the medium to longer term after it undergoes
massive restructuring, officials said. The subcommittee
projects that the current account surplus will fall to less
than two pct of Japan's total output, or gross national
product, around 1993 or 1995. Last year the surplus, which
measures trade in goods and services, amounted to over four pct
of gnp.
The subcommittee also projects annual economic growth for
Japan of nearly four pct over that period and a very gradual
appreciation of the yen, to about 130 to the dollar by around
1993, from 150 now.
| Corporate News |
U.K. MONEY MARKET GIVEN 265 MLN STG ASSISTANCE
| The Bank of England said it provided the
money market with 265 mln stg in assistance this morning.
This compares with the bank's estimate of the shortage in
the system of 750 mln stg, earlier revised up from 700 mln.
The central bank purchased bank bills outright comprising
119 mln stg in band one at 9-7/8 pct, 144 mln stg in band two
at 9-13/16 pct and two mln stg in band three at 9-3/4 pct.
| Commodities and Trade |
BANK OF JAPAN INTERVENES TO STEM DOLLAR FALL
| The Bank of Japan intervened in the
market to keep the dollar above 149 yen but the unit was under
strong selling pressure by an investment trust, dealers said.
The central bank stepped into the market when the dollar
fell towards 149.00 yen, but a trust bank aggressively sold
dollars to hedge currency risks, and the Bank intervened again
at 149.00, they said.
The trust bank apparently changed its earlier view that the
dollar would rise and started selling relatively large amounts
of dollars, pushing the unit down to 148.80 at one point,
brokers said.
One dealer estimated that the Bank bought 400 mln to 500
mln dlrs as it tried to keep the U.S. Currency above 149 yen.
| Financial Reports |
BANK OF FRANCE AGAIN BUYING DOLLARS, SOURCES SAY
| The Bank of France intervened in the
Paris foreign exchange market this morning for the third
successive day, banking sources said.
Like yesterday, it bought dollars and sold yen in small
amounts, they said.
One dealer said it was seen in the market twice in early
dealing, buying five mln dlrs each time.
Other dealers also reported small-scale intervention to
stabilise the dollar after aggressive selling overnight in
Tokyo, where the Bank of Japan also intervened again.
The dollar steadied at around 6.0650/0700 francs after
easing in early trading to 6.0615/35 from an opening 6.0700/50.
It closed yesterday at 6.0800/30.
One major french bank said it bought 10 mln dlrs for the
central bank, selling yen, within a trading range of 148.20/30
yen to the dollar, compared with yesterday's 149.28 rate at
which intervention was carried out here.
The yen later firmed to around 147.90/148.00.
| Corporate News |
BUNDESBANK BOUGHT DOLLARS AGAINST YEN, DEALERS SAY
| The Bundesbank entered the open
market in the late morning to buy dollars against yen in
concert with the Bank of France, dealers said.
The Bundesbank came into the market when the dollar was
around 148.10 yen just after it had fallen below 148 to touch
147.80 at 1027 GMT. The move had little effect, with the dollar
still testing 148 yen ahead of the official fixing.
Dealers said the intervention was for fairly small amounts,
in contrast to the Bundesbank's activity on Wednesday when
dealers reported it bought about 100 mln dlrs.
The Bundesbank had no comment.
| Financial Reports |
U.S. HOME SALES FELL 6.8 PCT IN JANUARY
| Sales of new single-family homes in
the United States fell 6.8 pct in January from December to a
seasonally adjusted annual rate of 716,000 units, the Commerce
Department said.
The department revised downward December's sales to a 12.1
pct rise to 768,000 units from the previously reported 12.7 pct
increase.
The January decline in sales was the largest since last
October when sales fell 9.3 pct.
Before seasonal adjustment, the number of homes actually
sold in January was 53,000, up from 49,000 in December but down
from 59,000 in January, 1986.
The January fall brought home sales to a level 1.6 pct
below January, 1986, when they were a seasonally adjusted
728,000 units.
The average price was a record 127,100 dlrs, surpassing the
previous record 119,100 price set in December.
The median price of a home in January reached 100,700 dlrs
-- the first time the price has exceeded 100,000 dlrs. That
compared with a median price of 94,600 dlrs in December and
94,000 dlrs in January a year ago.
New homes available on the market in January totaled a
seasonally adjusted 362,000 units, unchanged from December and
equal to a 6.3 months' supply.
The supply in December was 5.9 months.
| Corporate News |
BRIERLEY BIDS 4.35 DOLLARS/SHARE FOR PROGRESSIVE
| <Brierley Investments Ltd> (BIL)
launched a full takeover bid for the supermarket group
<Progressive Enterprises Ltd> at 4.35 dlrs a share.
BIL said in a statement the offer is conditional on minimum
acceptances totalling 30 mln shares, just under 25 pct of the
120.4 mln Progressive shares on issue.
Progressive is currently involved in a proposed merger with
<Rainbow Corp Ltd>. Rainbow earlier this week raised its stake
in Progressive to 52 pct. BIL opposes the Rainbow merger and
analysts say BIL needs a 25 pct stake in Progressive to prevent
it occurring.
The merger involves shareholders in Progressive and Rainbow
both receiving shares in a new company <Astral Pacific Corp
Ltd> on a one-for-one exchange basis.
The BIL bid is higher than the 4.20 dlrs BIL said it would
offer when it first announced on Monday it would make a full
bid for Progressive, and it follows much public debate between
BIL and Rainbow.
BIL Chief Executive Paul Collins said last week that he
opposes the Rainbow/Progressive merger because BIL sees
Progressive shares as being worth twice as much as Rainbow's.
BIL has not disclosed how many Progressive shares it holds.
Rainbow has said the merger is soundly based. Chairman
Allan Hawkins said last week that BIL's actions were aimed only
at dirsrupting the merger and were not in the interests of
Progressive shareholders.
Both Rainbow's and Progressive's boards have approved the
merger proposal. It has also been approved by the Commerce
Commission, but BIL's bid is still subject to the Commission's
scrutiny.
Progressive shares ended at 4.35 dlrs, Rainbow at 3.42 and
BIL at 4.17 at the close of New Zealand Stock Exchange trading
today.
| Corporate News |
S. African Feb trade surplus 1.62 billion rand vs Jan surplus 906.2 mln - official
|
S. African Feb trade surplus 1.62 billion rand vs Jan surplus 906.2 mln - official
| Commodities and Trade |
JAPAN SETS ASIDE YEN FUNDS TO PREVENT DLR FALL
| The 50-day provisional 1987/88 budget,
adopted today by the government, allows the Finance Ministry to
issue up to 14,600 billion yen worth of foreign exchange fund
financing bills, government sources said.
Foreign exchange dealers said the yen funds would be used
to buy dollars, to prevent a further dollar fall.
The government sources said the amount, covering the first
50 days of the year starting April 1, accounts for more than 90
pct of the 16,000 billion yen in bills incorporated in the full
budget.
| Financial Reports |
SUGAR MARKET SEES GOOD RECENT OFFTAKE
| Reports the Soviet Union has lately
extended its recent buying programme by taking five to eight
raws cargoes from the free market at around 30/40 points under
New York May futures highlight recent worldwide demand for
sugar for a variety of destinations, traders said.
The Soviet buying follows recent whites buying by India,
Turkey and Libya, as well as possible raws offtake by China.
Some 300,000 to 400,000 tonnes could have changed hands in
current activity, which is encouraging for a sugar trade which
previously saw little worthwhile end-buyer enquiry, they added.
Dealers said a large proportion of the sales to the Soviet
Union in the past few days involved Japanese operators selling
Thai origin sugar.
Prices for nearby shipment Thai sugars have tightened
considerably recently due to good Far Eastern demand, possibly
for sales to the Soviet Union or to pre-empt any large block
enquiries by China, they said.
Thai prices for March/May 15 shipments have hardened to
around 13/14 points under May New York from larger discounts
previously, they added.
Traders said the Soviet Union might be looking to buy more
sugar in the near term, possibly towards an overall requirement
this year of around two mln tonnes. It is probable that some
1.8 mln tonnes have already been taken up, they said.
Turkey was reported this week to have bought around 100,000
tonnes of whites while India had further whites purchases of
two to three cargoes for Mar/Apr at near 227 dlrs a tonne cost
and freight and could be seeking more. Libya was also a buyer
this week, taking two cargoes of whites which, for an
undisclosed shipment period, were reported priced around
229/230 dlrs a tonne cost and freight, they added.
Futures prices reacted upwards to the news of end-buyer
physicals offtake, although much of the enquiry emerged
recently when prices took an interim technical dip, traders
said.
Pakistan is lined up shortly to buy 100,000 tonnes of
whites although traders said the tender, originally scheduled
for tomorrow, might not take place until a week later.
Egypt will be seeking 20,000 tonnes of May arrival white
sugar next week, while Greece has called an internal EC tender
for 40,000 tonnes of whites to be held in early April, for
arrival in four equal parts in May, June, July and August.
| Financial Reports |
BANK OF FRANCE BUYS DOLLARS AT PARIS FIXING - DEALERS
|
BANK OF FRANCE BUYS DOLLARS AT PARIS FIXING - DEALERS
| Financial Reports |
swiss national bank says bought dollars against yen
|
swiss national bank says bought dollars against yen
| Financial Reports |
UNION MINIERE TAKES STAKE IN PANCONTINENTAL
| <Union Miniere SA> said in a statement
that it has acquired an eight pct interest in Pancontinental
Mining Ltd <PANA.S> for a sum equivalent to 1.2 billion Belgian
francs.
Pancontinental operates gold and coal mines in Australia
and natural gas and oil fields in Canada.
Union Miniere said the location of its interest within the
Pancontinental group will be decided later. It did not
elaborate.
Union Miniere is a wholly owned subsidiary of Societe
Generale de Belgique <BELB.BR>.
| Corporate News |
S. AFRICAN TRADE SURPLUS RISES SHARPLY IN FEBRUARY
| South Africa's trade surplus rose
to 1.62 billion rand in February after falling to 906.2 mln in
January, Customs and Excise figures show.
This compares with a year earlier surplus of 958.9 mln
rand.
Exports rose slightly to 3.36 billion rand in February from
3.31 billion in January but imports fell to 1.74 billion from
2.41 billion.
This brought total exports for the first two months of 1987
to 6.67 billion rand and imports to 4.15 billion for a total
surplus of 2.52 billion rand against 1.71 billion a year
earlier.
| Financial Reports |
EC EXTENDS PARTS OF FREE FOOD FOR POOR SCHEME
| A scheme to distribute surplus food
free to the poor in the European Community (EC), which was due
to expire next Tuesday, will be partially extended for a
further month, an EC Commission spokesman said.
He added the executive Commission has not yet decided
whether the scheme should become a permanent feature of the
EC's struggle to find a use for its massive stocks of farm
produce.
Almost 60,000 tonnes of cereals, sugar, beef, butter and
other food have been authorised for distribution under an
operation sanctioned by EC farm ministers on January 20 in
which charities act as executive Commission agents.
The original idea was to help the needy survive this year's
unusually cold European winter.
The spokesman said the Commission was extending the scheme
fully in Greece, which has recently been hit by unseasonal
snowstorms, for the month of April.
Other EC countries would be authorised to use stocks of
food for which they have already applied under the scheme up to
April 30. The spokesman said this would enable distribution of
flour, semolina, sugar and olive oil at a relatively high rate
next month.
He said the Commission, which has powers to continue most
aspects of the scheme without consulting ministers further,
will be considering soon whether it should be made permanent.
Cost, which has already reached around 65 mln European
currency units, would be a major consideration.
End-January stocks included 1.28 mln tonnes of butter,
520,000 tonnes of beef and over 10 mln tonnes of cereals.
| Financial Reports |
INDIA STEPS UP COUNTERTRADE DEALS TO CUT TRADE GAP
| India is searching for non-communist
countertrade partners to help it cut its trade deficit and
conserve foreign exchange.
Wheat, tobacco, tea, coffee, jute, engineering and
electronic goods, as well as minerals including iron ore, are
all on offer in return for crude oil, petroleum products,
chemicals, steel and machinery, trade sources told Reuters.
Most of the impetus behind countertrade, which began in
1984, comes from two state trading firms -- the State Trading
Corp (STC) and the Minerals and Metals Trading Corp (MMTC).
"The two state trading corporations are free to use their
buying power in respect to bulk commodities to promote Indian
exports," a commerce ministry spokeswoman said, adding that
private firms are excluded from countertrading.
One trade source said India has targetted countries that
depend on an Indian domestic market recently opened to foreign
imports.
However, countertrade deals still make up only a small part
of India's total trading and are likely to account for less
than eight pct of the estimated 18.53 billion dlrs in trade
during the nine months ended December, the sources said.
Countertrade accounted for just five pct of India's 25.65
billion dlrs in trade during fiscal 1985/86 ended March,
against almost nothing in 1984/85, official figures show.
However, the figures exclude exchanges with the Eastern
Bloc paid in non-convertible Indian rupees, the sources said.
Total trade with the Soviet Union, involving swaps of
agricultural produce and textiles for Soviet arms and crude
oil, is estimated at 3.04 billion dlrs in fiscal 1986/87,
against three billion in 1985/86.
Indian countertrade, which is being promoted mainly to help
narrow the country's large trade deficit, is still
insignificant compared with agreements reached by Indonesia,
Venezuela and Brazil, the trade sources said.
The trade deficit, which hit an estimated record 6.96
billion dlrs in 1985/86, is expected to decline to 5.6 billion
in the current fiscal year.
But the push to include non-communist countries in
countertrade is also due to other factors, including the slow
growth of foreign reserves, a tight debt repayment schedule,
shrinking aid and trade protectionism, businessmen said.
One source said India is showing more dynamism in promoting
countertrade deals than in the past, when the deals were made
discreetly because they break GATT rules. As a member of the
General Agreement on Tariffs and Trade (GATT), India cannot
officially support bartering.
The MMTC's recent countertrade deals include iron ore
exports to Yugoslavia for steel structures and rails.
"MMTC's recent global tenders now include a clause that
preference will be given to parties who accept payment in kind
for goods and services sold to India," a trade official said,
adding that the policy remains flexible.
"We also take into account other factors such as prices at
which the goods and services are offered to India," the trade
official said.
Early this year the commerce ministry quietly told foreign
companies interested in selling aircraft, ships, drilling rigs
and railway equipment to India that they stood a better chance
if they bought Indian goods or services in return, the trade
sources said.
Illustrating the point, the official said a South Korean
firm recently agreed to sell a drilling platform worth 40 mln
dlrs to the state-run Oil and Natural Gas Commission.
| Corporate News |
JAPAN FEBRUARY CURRENT ACCOUNT, TRADE SURPLUS JUMP
| Japan's current account surplus rose to
7.38 billion dlrs in February from 3.89 billion a year ago and
from 4.95 billion in January, the Finance Ministry said.
The trade surplus rose to 8.14 billion dlrs in February
from 4.77 billion a year earlier and 5.70 billion in January.
The long-term capital account deficit widened to 11.40
billion dlrs from 8.06 billion a year ago, but it narrowed from
12.32 billion in January, the Ministry said.
Japan's February exports rose to 16.74 billion dlrs from
14.89 billion in February 1986 and from 14.65 billion in
January, the Ministry said. Imports fell to 8.61 billion from
10.12 billion a year earlier and 8.94 billion in January.
The invisible trade deficit fell to 617 mln dlrs in
February from 693 mln a year earlier, but was up from a 527 mln
deficit in January.
Figures do not tally exactly because of rounding.
Transfer payments narrowed to a 140 mln dlr deficit last
month from a 185 mln deficit a year earlier and a 225 mln
deficit in January.
The basic balance of payments deficit in February fell to
4.02 billion dlrs from 4.17 billion in February 1986 and 7.37
billion in January. Short-term capital account payments swung
to a 1.28 billion dlr deficit in February from a 1.60 billion
surplus a year earlier and a 1.44 billion dlr surplus in
January.
Errors and omissions were 2.65 billion dlrs in surplus,
compared with a 1.27 billion surplus a year earlier and a 1.10
billion deficit in January. The overall balance of payments
deficit rose to 2.65 billion dlrs from 1.30 billion a year
earlier but was down from 7.04 billion in January.
| Other |
JAPAN CONSUMER PRICES UNCHANGED IN FEBRUARY
| Japan's consumer price index (base 1985)
was unchanged at 99.7 in February from a month earlier, the
government's Management and Coodination Agency said.
The index showed a 0.4 pct drop in January.
The February index was down one pct from a year earlier for
the third consecutive year-on-year drop.
In January, the index fell 1.1 pct from a year earlier, the
first drop of over one pct since a 1.3 pct drop in September
1958.
| Commodities and Trade |
COSTCO WHOLESALE CORP <COST> 2ND QTR FEB 16 NET
| Oper shr five cts vs six cts
Oper net 1,100,000 vs 1,463,000
Revs 177.8 mln vs 331.5 mln
Avg shrs 21.9 mn vs 25.7 mln
First half
Oper shr six cts vs five cts
Oper net 1,121,000 vs 1.090,000
Revs 315.3 mln vs 567.4 mln
Avg shrs 20.6 mln vs 25.6 mln
NOTE: Operating net excludes gains of 659,000 dlrs, or
three cts a share, vs 599 dlrs, or two cts a share, in quarter
and 676,000 dlrs, or three cts a share, vs 599,000 dlrs, or two
cts a share, in year from tax loss carryforward.
| Corporate News |
SWISS NATIONAL BANK SAYS IT BOUGHT DOLLARS
| The Swiss National Bank bought dollars
against yen today, a spokesman for the bank said.
He declined to say how many dollars the bank bought or when
precisely it intervened.
Swiss foreign exchange dealers described the National
Bank's purchases as modest, perhaps amounting to no more than
20 or 30 mln dlrs.
The Bank of France, which was reported buying dollars
against the yen in Paris, had made inquiries with Swiss banks
as well, and the Bundesbank had also intervened. Bank of Japan
dollar purchases today were perhaps 1.2 to 1.5 billion dlrs.
Dealers said this tended to confirm the market's impression
that major industrial countries had agreed at the Paris meeting
on an effective floor for the dollar of 148 yen, and the market
seemed ready to test it.
Commercial clients were also selling dollars against the
yen as the end of the Japanese fiscal year on March 31 drew
closer. Today's dealings in spot currencies are booked for
March 31.
One dealer said he had the feeling Japanese companies had
been asked by the Bank of Japan not to sell dollars at this
point, but some, while sticking to the letter of that request,
were offering dollars forward today, rather than lose out if
the dollar fell further.
The run on the dollar against the yen came in a market
thinned by the absence of many dealers for a Forex Club meeting
in Hamburg.
Trading was, in fact, rather light against currencies other
than the yen, the dollar holding little changed through the
day.
The market now expected the U.S. Federal Reserve to
intervene in support of the dollar. "But they will probably do
it only half-heartedly, so I don't think it will matter too
much on rates," one dealer said.
| Financial Reports |
U.S. FEBRUARY CONSUMER PRICES ROSE 0.4 PCT AFTER 0.7 PCT RISE IN JANUARY
|
U.S. FEBRUARY CONSUMER PRICES ROSE 0.4 PCT AFTER 0.7 PCT RISE IN JANUARY
| Financial Reports |
U.S. CONSUMER PRICES ROSE 0.4 PCT IN FEBRUARY
| U.S. consumer prices, as measured by
the Consumer Price Index for all urban consumers (CPI-U), rose
a seasonally adjusted 0.4 pct in February after a 0.7 pct
January gain, the Labor Department said.
The CPI for urban wage earners and clerical workers (CPI-W)
rose to 329.0 in February, the department said.
Prices for petroleum-based energy rose sharply for a second
consecutive month during February but by less than in January,
the department said.
Energy prices rose 1.9 pct last month after a 3.0 pct rise
in January, accounting for one-third of the overall CPI rise.
For the 12 months ended in February, the CPI rose an
unadjusted 2.1 pct.
Transportation prices rose 0.5 pct in February after a 1.5
pct increase in January. Smaller price rises for motor fuels
and declines in new car prices and finance charges were
responsible for the moderation.
Gasoline prices rose 4.2 pct last month after increasing
6.6 pct in January, but were still 18 pct below levels of a
year ago, the department said.
Housing prices rose 0.4 pct in February after a 0.5 pct
January increase, largely due to a rise in fuel oil prices.
Fuel oil prices were up 4.4 pct in February after
increasing 9.8 pct in January, but were still 15 pct below
price levels of February 1986.
Food prices rose 0.2 pct last month after a 0.5 pct January
increase. Grocery store food prices were up 0.4 pct, the same
as in January, but meat, poultry, fish and eggs cost less for a
third consecutive month, the department said.
Medical care rose 0.3 pct in February to a level 7.1 pct
above one year ago, because of higher costs for prescription
and non-prescription drugs and medical supplies, the department
said.
The index for apparel and upkeep rose 0.7 pct in February
after a 0.4 pct increase in January. The department said the
introduction of higher priced spring merchandise, particularly
men's clothing, was responsible for the advance.
Prices for other goods and services rose 0.7 pct in
February following a 1.1 pct increase in January. Tobacco
prices, up 0.9 pct after a 2.0 pct January increase, accounted
for 30 pct of the index rise, the department said.
| Financial Reports |
MACMILLAN BLOEDEL <MMB> STOCK SPLIT APPROVED
| MacMillan Bloedel
Ltd said shareholders authorized a previously announced
three-for-one stock split, applicable to holders of record
April nine.
The company said its stock will begin trading on a split
basis on April 3, subject to regulatory approvals.
| Corporate News |
STORMY WEATHER TO DISRUPT NORTH SEA SHIPPING
| Very stormy weather is
likely in the North Sea through Saturday, disrupting shipping
in the region, private forecaster Accu-Weather Inc said.
Rain will accompany the strong winds that are expected over
the North Sea today into tonight. Saturday will also be very
windy and cooler with frequent showers.
Winds today will be southwest at 30 to 60 mph, but will
become west to northwest tonight and Saturday at 25 to 50 mph.
Waves will build to 20 to 30 feet today and tonight and
continue Saturday. Wind and waves will not diminish until late
in the weekend.
| Commodities and Trade |
COMMUNITY BANK <CBSI> TO MAKE ACQUISITION
| Community Bank System Inc said it
has entered into a definitive agreement to acquire Nichols
Community Bank for 2,800,000 dlrs in common stock.
It said subject to approval by Nichols shareholders and
regulatory authorities, the transaction is expected to be
completed later this year.
| Financial Reports |
NATIOONAL MEDICAL ENTERPRISES INC 3RD QTR OPER SHR 46 CTS VS 51 CTS
|
NATIOONAL MEDICAL ENTERPRISES INC 3RD QTR OPER SHR 46 CTS VS 51 CTS
| Corporate News |
LIBERIAN SHIP GROUNDED IN SUEZ CANAL REFLOATED
| A Liberian motor bulk carrier, the
72,203 dw tonnes Nikitas Roussos, which was grounded in the
Suez canal yesterday, has been refloated and is now proceeding
through the the canal, Lloyds Shipping Intelligence said.
| Financial Reports |
NATIONAL MEDICAL ENTERPRISES INC <NME> 3RD QTR
| Periods ended Feb 28
Oper shr 46 cts vs 51 cts
Oper shr diluted 43 cts vs 50 cts
Oper net 34.2 mln vs 39.8 mln
Revs 823.3 mln vs 794.3 mln
Avg shrs 74.9 mln vs 78.7 mln
Nine mths
Oper shr 1.29 dlrs vs 1.46 dlrs
Oper shr diluted 1.20 dlrs vs 1.43 dlrs
Oper net 99.4 mln vs 114.5 mln
Revs 2.50 billion vs 2.22 billion
Avg shrs 77.0 mln vs 78.3 mln
NOTE: Year ago nine months operating net excludes loss of
2.0 mln dlrs, or two cts a share, from discontinued operations
| Financial Reports |
ABIDJAN PORT ACTIVITY RISES
| The tonnage of goods passing through
Ivory Coast's main port of Abidjan rose 2.3 pct last year,
according to the Ivorian Chamber of Commerce.
Its monthly report said 9.47 mln tonnes of goods passed
through the port last year compared with 9.26 mln the year
before. Exports fell to 3.75 mln from 3.89 mln tonnes while
imports rose to 5.72 mln from 5.37 mln.
| Corporate News |
PAPANDREOU SAYS GREEKS READY FOR AGGRESSORS
| Greek Prime Minister Andreas Papandreou
said today that the Greek armed froces were ready to tackle any
aggressors following the sailing of a Turkish research vessel
and warships towards disputed waters in the Aegean Sea.
Papandreou told an emergency cabinet meeting in Athens "the
military readiness of our country is able now to give a very
hard lesson if our neighbours (Turkey) were to carry out
military actions."
He said the activities of the research vessel could be
aimed at partitioning the Aegean.
"The air force, navy and army are in a state of alert,"
General Guven Ergenc, Secretary General of the Turkish General
Staff, told a news conference.
He said the Turkish research ship Sismik 1, escorted by an
unspecified number of warships, would sail into disputed waters
in the Aegean Sea tomorrow morning.
Ergenc told Reuters later that all leave had been cancelled
for members of the armed forces in the Aegean coast area.
The Turkish government said yesterday it had licensed the
state-owned Turkish Petroleum Corp to explore for oil in
international waters around three Greek islands off Turkey.
Greece and Turkey have long-standing disputes over areas
of the Aegean and the presence of Turkish troops in Cyprus.
The latest row erupted when the Greek government said last
month that it was taking control of a Canadian-led consortium
which was already producing oil off the Greek island of Thassos
and would drill in the same area after the takeover.
Ergenc told the news conference the alert followed a
government decision that Turkey should protect its interests
"because of measures Greece has been taking in the Aegean in
violation of international agreements."
Asked how Turkey would react if Greece attacked any of the
vessels, he said "If there is an attack, it is clear what has to
be done. An attack on a warship is a cause for war." But he
added "We are not in a state of war. The measures taken by the
military are directed towards protecting our rights."
Greece said yesterday it would defend its national rights
in the Aegean and urged Turkey to accept reference of the
dispute to the International Court of Justice in The Hague.
Turkish Foreign Ministry spokesman Yalim Eralp told
reporters today this was unacceptable because of preconditions
Athens had attached.
In Athens, Greek Prime Minister Papandreou said that if the
Turkish vessel Sismik 1 began research operations "we will
hinder it, of course not with words, as it cannot be stopped
with words."
Greek newspapers said the armed forces were on alert and
navy ships had gone to the Aegean. But government spokesman
Yannis Roubatis did not confirm the move, saying only "The Greek
fleet is not at its naval base."
Papandreou said that a map issued in Turkey showed 95 pct
of the areas proposed for research were on the Greek
continental shelf.
Papandreou told the U.S. And NATO that if they had a part
in orchestrating the present crisis in order to force Greece to
negotiate with Turkey, the Greek government would not accept
it.
Papandreou has maintained in the past that he will not
negotiate with Ankara until Turkey recognises Greek rights in
the Aegean and withdraws its troops from Cyprus.
He said that in the case of war with Turkey it would not be
possible for Greece to discuss the future of American military
bases here. Asked by reporters if he would close the U.S. Bases
in Greece in the event of war, Papandreou replied "Obviously,
and perhaps even before the war."
| Corporate News |
Top discount rate at U.K. Bill tender rises to 9.3456 pct
|
Top discount rate at U.K. Bill tender rises to 9.3456 pct
| Corporate News |
PORSCHE EXPECTS IMPROVEMENT IN U.S. SALES
| Sports carmaker Dr. Ing. H.C.F.
Porsche AG <PSHG.F> said it expects to post a satisfactory
profit in 1986/87, with domestic volume sales seen lower but
U.S. Sales anticipated higher.
Managing board chairman Peter Schutz said domestic sales
were expected to fall to 9,000 in the year ending July 31 from
11,340 in 1985/86. U.S. Sales should rise to more than 30,000
from 28,670 last year.
Schutz made no specific profit or sales forecasts. Last
month the company said it expected net profit to fall below 70
mln marks this year from 75.3 mln marks in 1985/86.
For sales, Porsche expects its overall world volume this
year to be above 50,000. Sales last year stood at 53,254,
Schutz said. His expectations of a satisfactory profit were
based on a combination of price rises and cost-cutting, he
added.
The expected drop in West German sales this year would be
the result of the so-called "grey market" for Porsche cars, he
said. When the dollar was strong against the mark, many
Porsches had been bought locally in West Germany for illegal
export to the U.S.
Porsche has previously said domestic sales in the 1986/87
first half fell to 3,267 from 5,387 in the same 1985/86 period.
The fact that U.S. Sales will account for a larger
percentage of overall sales this year than before does not pose
problems for profit, the Porsche board said.
In the last 12 months it has raised U.S. Prices by around
20 pct without suffering any decline in sales. At the same time
Porsche has hedged its dollar-denominated business for the
1986/87 business year, finance director Heinz Branitzki.
Branitzki put Porsche's hedging costs in 1985/86 at 28 mln
marks.
In a speech to the annual meeting, Schutz said third-party
orders placed with Porsche's engineering research centre in
Weissach were rising and should top 100 mln marks this year for
the first time.
Porsche's net profit dropped sharply to 75.3 mln marks in
1985/86 from 120.4 mln marks in 1984/85.
| Other |
DIXONS GROUP PLC BUYS 2,455,000 CYCLOPS SHARES, NOW OWNS 83 PCT
|
DIXONS GROUP PLC BUYS 2,455,000 CYCLOPS SHARES, NOW OWNS 83 PCT
| Other |
WORLD MARKET PRICE FOR UPLAND COTTON - USDA
| The U.S. Agriculture Department
announced the prevailing world market price, adjusted to U.S.
quality and location, for Strict Low Middling, 1-1/16 inch
upland cotton at 52.69 cts per lb, to be in effect through
midnight March 5.
The adjusted world price is at average U.S. producing
locations (near Lubbock, Texas) and will be further adjusted
for other qualities and locations. The price will be used in
determining First Handler Cotton Certificate payment rates.
Based on data for the week ended February 26, the adjusted
world price for upland cotton is determined as follows, in cts
per lb --
Northern European Price 66.32
Adjustments --
Average U.S. spot mkt location 10.42
SLM 1-1/16 inch cotton 1.80
Average U.S. location 0.53
Sum of adjustments 12.75
Adjusted world price 53.57
| Corporate News |
BELGIAN UNEMPLOYMENT FALLS IN FEBRUARY
| Belgian unemployment, based on the
number of jobless drawing unemployment benefit, fell to 12.1
pct of the working population at the end of February from 12.6
pct at the end of January, the National Statistics Office said.
The rate compares with 12.4 pct at the end of February
1986.
The total number of jobless stood at 508,392, compared with
530,587 at the end of January and 521,219 at the end of
February 1986, the Statistics Office said.
| Commodities and Trade |
TEKTRONIX INC 3RD QTR SHR 48 CTWS VS 39 CTS
|
TEKTRONIX INC 3RD QTR SHR 48 CTWS VS 39 CTS
| Financial Reports |
AMERICAN MEDICAL INTERNATIONAL INC <AMI> PAYOUT
| Qtly div 18 cts vs 18 cts in prior qtr
Payable May one
Record April 15
| Other |
COCOA BUFFER STOCK COMPROMISE GAINING ACCEPTANCE
| A final compromise proposal on cocoa
buffer stock rules presented by International Cocoa
Organization, ICCO, council chairman Denis Bra Kanon is swiftly
gaining acceptance by consumer and producer members, delegates
said.
"We are close, nearer than ever to accepting it, but we
still have some work to do," producer spokesman Mama Mohammed of
Ghana told Reuters after a producers' meeting.
European Community, EC, delegates said EC consumers
accepted the package in a morning meeting and predicted "no
problems" in getting full consumer acceptance.
Delegates on both sides are keen to come to some agreement
today, the last day of the fortnight-long council meeting, they
said.
The compromise requires that buffer stock purchases from
non-ICCO member countries cannot exceed 15 pct of total buffer
stock purchases, delegates said. The non-member cocoa issue has
been among the most contentious in the rules negotiations.
The 15 pct figure, up five percentage points from earlier
proposals, represents a concession to consumers, delegates
said. They have demanded a larger allowance for non-member
cocoa in the buffer stock than producers have wanted.
Another problem area, delegates said, was the question of
price differentials for different origins of cocoa bought into
the buffer stock, by which the buffer stock manager could
fairly compare relative prices of different cocoas offered to
him.
The compromise narrowed the range of differentials between
the origins from what previous proposals had detailed -- a move
some delegates described as "just fiddling."
But the adjustments may prove significant enough to appease
some countries that were not satisfied with the original
proposed differentials assigned to them, delegates said.
The compromise also stated buffer stock purchases on any
day would be limited to 40 pct each in nearby, intermediate or
forward positions, delegates said.
If the compromise is accepted by the council, most
consumers and producers want buffer stock rules to take effect
next week, or as soon as practically possible.
The full council is scheduled to meet around 1500 GMT to
discuss the compromise, and could agree on it then if all
parties are satisfied, they said. Consumers are due to meet
before the council.
| Financial Reports |
DIXONS BOOSTS CYCLOPS <CYL> OWNERSHIP TO 83 PCT
| <Dixons Group Plc> said it bought
about 2,445,000 Cyclops Corp common shares, boosting its
holdings of the company's stock to about 83 pct of those now
outstanding and 79 pct on a fully diluted basis.
Dixons said the stock was purchased in a single block
transaction at 95 dlrs per share.
The company said it expects to proceed with a merger and
has advised Cyclops it intends to increas the per-share amount
to be paid in the merger to 95 dlrs, form 90.25 dlrs, for each
of the about 880,000 remaining Cyclops shares outstanding on a
fully diluted basis.
| Financial Reports |
INDIA STEPS UP COUNTERTRADE DEALS
| India is searching for non-communist
countertrade partners to help it cut its trade deficit and
conserve foreign exchange.
Wheat, tobacco, tea, coffee, jute, engineering and
electronic goods, as well as minerals including iron ore, are
all on offer in return for crude oil, petroleum products,
chemicals, steel and machinery, trade sources told Reuters.
Most of the impetus behind countertrade, which began in
1984, comes from two state trading firms -- the State Trading
Corp (STC) and the Minerals and Metals Trading Corp (MMTC).
"The two state trading corporations are free to use their
buying power in respect to bulk commodities to promote Indian
exports," a commerce ministry spokeswoman said, adding that
private firms are excluded from countertrading.
One trade source said India has targetted countries that
depend on an Indian domestic market recently opened to foreign
imports. But countertrade deals still make up only a small part
of India's total trading and are likely to account for less
than eight pct of the estimated 18.53 billion dlrs in trade
during the nine months ended December, the sources said.
Countertrade accounted for just five pct of India's 25.65
billion dlrs in trade during fiscal 1985/86 ended March,
against almost nothing in 1984/85, official figures show.
However, the figures exclude exchanges with the Eastern
Bloc paid in non-convertible Indian rupees, the sources said.
Total trade with the Soviet Union, involving swaps of
agricultural produce and textiles for Soviet arms and crude
oil, is estimated at 3.04 billion dlrs in fiscal 1986/87.
| Commodities and Trade |
TEKTRONIX INC <TEK> 3RD QTR NET
| Qtr ends March 7
Shr 48 cts vs 39 cts
Net 18.7 mln vs 15.6 mln
Revs 415.4 mln vs 384.5 mln
Nine mths
Shr 1.31 dlrs vs 78 cts
Net 50.7 mln vs 31.8 mln
Revs 1.04 billion vs 1.01 billion
NOTE: per share for yr and qtr prior restated to reflect
two-for-one stock split in Jan 1987.
| Financial Reports |
WESTINGHOUSE SAYS IT EXPECTS AT LEAST 10 PCT EARNINGS/SHR GROWTH THROUGH 89
|
WESTINGHOUSE SAYS IT EXPECTS AT LEAST 10 PCT EARNINGS/SHR GROWTH THROUGH 89
| Financial Reports |
METROPOLITAN FINANCIAL<MPC> TO ACQUIRE COMPANY
| Metropolitan Financial Corp said it
signed an agreement to acquire the stock of closely held
Rothschild Financial Corp, St. Paul, Minn.
Details of the purchase were withheld.
It said Rothschild in 1986 originated 500 mln dlrs of
mortgage loans, and its loan servicing portfolio stands at 1.4
billion dlrs. Officials of both companies estimated their
combined efforts could produce originations of 800 mln dlrs and
a loan servicing portfolio "well over 2.0 billion dlrs by
yearend."
| Financial Reports |
U.K. MONEY MARKET GIVEN FURTHER 663 MLN STG HELP
| The Bank of England said it gave the
money market a further 663 mln stg assistance in the afternoon
session. This takes the Bank's total assistance so far today to
928 mln stg and compares with its forecast shortage which it
earlier revised up to 850 mln stg from 750 mln.
The central bank purchased bills in band one at 9-7/8 pct
comprising 267 mln stg bank bills, four mln stg local authority
bills and one mln stg treasury bills. It also bought 378 mln
stg bank bills and 13 mln stg of treasury bills in band two at
9-13/16 pct.
| Corporate News |
AUSTRIA DOES NOT INTERVENE TO SUPPORT DOLLAR
| The Austrian National Bank did not
intervene on the foreign exchange markets today to support the
dollar, deputy banking department chief Herbert Danzinger told
Reuters.
He denied a suggestion by a dealer at one Vienna bank that
the National Bank had sold marks to support the U.S. Currency.
Senior dealers at Creditanstalt and Girozentrale, Austria's
two largest banks, said they would have been aware of any
National Bank intervention. Any dollar purchases by the Bank
today were for purely day-to-day purposes, they said.
| Financial Reports |
HANSON TRUST <HAN> U.S. ARM SELLS CHEMICAL UNIT
| Hanson Trust Plc <HAN> said its U.S.
subsidiary, Hanson Industries, sold PCR Inc, a specialty
chemicals unit, for 6.25 mln dlrs in cash to <Chemical Partners
Inc>.
Hanson Industries said it acquired PCR Inc in 1986 as part
of its purchase of <SCM Corp>.
PCR Inc posted an operating loss in 1986 of 381,000 dlrs on
sales of 13.2 mln dlrs, the company said.
| Financial Reports |
ELDERS EXTENDS OFFER FOR CARLING O'KEEFE <CKB>
| <Elders IXL Ltd>, of Australia, said
wholly owned IXL Holdings Canada Inc extended its previously
announced offer to acquire all outstanding shares of Carling
O'Keefe Ltd to midnight April 23, 1987, from March 25.
The 18-dlr-a-share offer is being extended for Elders to
obtain Canadian federal government approval for the acquisition
of control of Carling. Elders said its application to
Investment Canada is still being processed under normal review
procedures.
Up to March 26, 19,962,000 shares or 92 pct of Carling's
stock has been deposited under the offer, Elders said.
Elders also said it arranged for a credit facility of up to
390 mln dlrs, shared equally between two Canadian banks, which
would be available to acquire shares under the offer.
| Corporate News |
STANDARD BRED PACERS <STBD> YR LOSS
| Shr loss 35 cts vs loss seven cts
Net loss 718,269 vs loss 145,216
Revs 1,394,080 vs 2,608,083
NOTE: full name of company is standard bred pacers and
trotters Inc.
| Corporate News |
MULTIVEST <MVST> ENDS MERGER TALKS,SETS PURCHASE
| Multivest Corp said it has ended talks
on <Oryx Capital Corp>'s possible acqusition of Multivest and
is starting an offer of 1.51 dlrs a share for all the
oustanding shares of <T.B.C. Industries Inc>.
Multivest said its T.B.C. tender offer is scheduled to
expire April 30.
| Corporate News |
MOBILE COMMUNICATIONS CORP <MCCAA> YR NET
| Shr 77 cts vs 37 cts
Net 13.5 mln vs 4.8 mln
Revs 70.8 mln vs 60.8 mln
Avg shrs 17.5 mln vs 12.9 mln
NOTE: 1986 net includes gain of 18 mln dlrs from sale in
Dec 1986 of a 50 pct interest in its cellular telephone
operations to BellSouth Corp.
Net income also reflects non-recurring charges of 8,400,000
dlrs recorded in the fourth qtr 1986, primarily reflecting
revaluation of assets.
Full name of company is mobile communications corp of
america.
| Financial Reports |
TOKHEIM CORP <TOK> 1ST QTR FEB 28 NET
| Shr 23 cts vs 12 cts
Net 1,535,000 vs 783,000
Rev 40.0 mln vs 28.7 mln
| Financial Reports |
SPARTECH<SPTN> SETS REVERSE SPLIT,DEBENTURE SALE
| Spartech Corp said it plans a one for
five reverse stock split and has filed a registration statement
with the Securities and Exchange Commission covering a planned
25 mln dlr offering of convertible subordinated debentures due
1999.
Spartech said the debenture offering will be underwritten
by Kidder Peabody and Co.
The company said the split will be effective on stock of
record April eight.
| Financial Reports |
RESTAURANT ASSOCIATES <RA.A> SETS 1ST QTR GAIN
| Restaurant Associates Industries Inc
said it expects to record a pretax gain of 3.3 mln dlrs in the
first quarter from the sale and lease of real estate.
The company said it received a 2.5 mln dlrs partial payment
in connection with the sale of property in Manhattan and an
additional one mln dlrs for early termination of the lease for
its headquarters, which was relocated in February.
The outstanding balance of about 8.5 mln dlrs on the sale
of the property will be paid at closing scheduled for Sept 28,
1987, it said.
In the first quarter ended March 31, 1986, Restaurant
Associates reported net income of 313,000 dlrs or seven cts a
share on sales of 40.8 mln dlrs.
| Other |
HUDSON'S BAY TO SELL WHOLESALE UNIT
| <Hudson's Bay Co> said it signed a
letter of intent to sell its Hudson's Bay Wholesale unit to a
private investment group. Terms were not disclosed.
The company said Normal Paul, a member of the private
investment group, will head Hudson's Bay Wholesale management.
The unit's existing management group, headed by Ron
McArthur, will also participate in ownership, the company said
without elaborating.
The wholesale unit is a major distributor of tobacco,
confectionary and other products through 34 wholesale and 28
vending branches in Canada. 1986 sales were 798 mln dlrs.
Hudson's Bay said the sale of its wholesaling unit is part
of a program to concentrate financial and management resources
on its core business of department stores and real estate.
| Commodities and Trade |
HENLEY GROUP INC <HENG> 4TH QTR LOSS
| Shr loss 3.41 dlrs
Net loss 354 mln vs loss 53 mln
Revs 825 mln vs 830 mln
Avg shrs 103.8 mln
Year
Shr loss 5.33 dlrs
Net loss 426 mlnm vs loss 66 mln
Revs 3.17 billion vs 1.83 billion
Avg shrs 80 mln
NOTE: The company had no shares outstanding in 1985. On
March 16, it had 109,244,315 shares oustanding.
Losses include pre-tax restructuring charges of 286 mln
dlrs in both 1986 periods vs 47 mln dlrs in both 1985 periods
1986 year loss also includes charge of about 100 mln dlrs
for amortization of good will
| Commodities and Trade |
BAYBANKS INC <BBNK> RAISES QTLY DIVIDEND
| Qtly div 36 cts vs 33 cts prior
Pay May one
Record April 14
| Financial Reports |
PHARMACIA AB <PHAB ST> 1986 YEAR
| Sales 3.65 billion crowns vs 3.40
billion.
Profit after financial items 821.2 mln crowns vs 740.2
mln.
The 1986 results include a once-off writedown of 520 mln
crowns for intangible assets, mainly the know-how paid for in
the takeover of a number of high-tech companies by the group,
Pharmacia said.
Earnings per share after real tax including the writedown:
1.94 crowns vs 12.05 crowns.
Earnings per share after real tax (not including the
writedown): 12.38 crowns vs 12.05
Earnings per American Depository Receipt (ADR) according to
U.S. Accounting principles after real tax including the
writedown): 1.96 crowns vs 9.49 crowns.
Earnings per ADR according to U.S. Accounting principles
after real tax (without the writedown): 9.8 crowns vs 9.49.
One ADR represents 0.75 pct of one B Free share in
Pharmacia.
The board proposed a dividend of 1.55 crowns vs 1.25.
| Financial Reports |
TOKHEIM <TOK> SEES IMPROVING SALES IN 1987
| Tokheim Corp, manufacturer of
electronic petroleum marketing systems, said it expects
shipments of Tokheim Convenience Systems (TCS), its new family
of dispensers, to improve its sales trend throughout 1987.
Tokheim said shipments of TCS will begin in the second
quarter.
Earlier, the company reported first quarter, ended February
28, earnings of 1.5 mln dlrs, or 23 cts a share, up from
783,000 dlrs, or 12 cts a share, in last year's first quarter.
Sales rose as well, it said, to 40.0 mln dlrs, from 28.7 mln
dlrs in the prior first quarter.
| Corporate News |
SAFETY-KLEEN <SK> TO BUY MCKESSON <MCK> UNIT
| Safety-Kleen Corp said it agreed in
principle to acquire McKesson Envirosystems Co, a subsidiary of
McKesson Corp.
It said McKesson Envirosystems' current annual gross
revenues are about 14 mln dlrs.
The company collects flammable solvents from its industrial
customers for a fee, after which it analyzes and processes the
solvents before they are burned.
| Corporate News |
CCC ACCEPTS BIDS ON BONUS WHEAT TO ALGERIA-USDA
| The Commodity Credit Corporation,
CCC, has accepted bids for export bonuses on 36,000 tonnes of
durum wheat to Algeria, the U.S. Agriculture Department said.
The department said the bonuses awarded averaged 40.42 dlrs
per tonne and will be paid to exporters in the form of
commodities from CCC inventories.
The bonuses were made to Cam USA, Inc, the department said.
The wheat is for shipment May 1-10, 1987.
An additional 264,000 tonnes of durum wheat are still
avaiable to Algeria under the Export Enhancement program
initiative announced on March 16.
| Corporate News |
WESTINGHOUSE <WX> SEES HIGHER EARNINGS GROWTH
| Westinghouse Electric Corp said
earnings per share growth will exceed sales growth and will be
in the double digit range through 1989.
In 1986, the company earned 4.42 dlrs a share on revenues
of 10.7 billion dlrs.
Speaking at a meeting for securities analysts, Douglas
Danforth, Westinghouse's chairman, said the company's sales
growth target is about 8.5 pct a year for 1988 and 1989, "given
an economic environment that remains on a moderate growth
course." He also said the company will make acquisitions, but
he did not specify particular targets.
Paul E. Lego, senior executive vice president told the
analysts "our plans do not call for a multibillion dlr
acquisition, even though our balance sheet can handle one.
Despite this disclaimer, if we identify a major acquisition
that has significnt value-creating for Westinghouse...we will
consider it." He said the company would consider an acquisition
candidate that is in an area compatable with Westinghouse's
primiary businesses.
Danforth said the corportation was focused in several key
areas including defense electronics, financial services,
broadcasting, electrical products and services for construction
and industrial and utility markets.
Danforth added that he expects Westinghouse's sales to grow
faster than the markets the corportation serves and "surely
faster than GNP."
He said earnings per share growth is expected to
consistently exceed the Standard and Poor's 500 index and
return on equity will remain in the 18 to 21 pct range.
Leo W. Yochum, senior executive vice president for finance,
told the analysts "we will consider buying back stock" but
there are no current plans for such a buyback.
Yochum said that at the company's current level of earnings
it could comfortably maintain higher debt levels and that
Westinghouse will use its debt capacity to improve shareholder
value.
Last year, Westinghouse established a 790 mln dlrs
restructuring reserve to be used for plant consolodation,
assett writedowns and other items. Yochum said, the company
spent 306 mln dlrs of that reserve in 1986 and will spend 344
mln dlrs of the reserves in 1987. The balance will be used in
1988. He also said, capital expenditures should be about 400
mln dlrs in 1987.
| Commodities and Trade |
CLEARWATER FINE FOODS ACQUIRES CHANNEL FOODS
| Clearwater Fine Foods Inc, a Canadian
company minority owned by Hillsdown Holdings PLC of London, has
acquired Channel Foods Ltd, a Cornwall, England producer of
chilled smoke fish and pate products, Hillsdown said.
Privately held Clearwater was sold for three mln stg, the
company said.
| Commodities and Trade |
GALACTIC RESOURCES LTD <GALCF> YEAR LOSS
| Shr loss 1.30 dlrs
Net loss 25.6 mln
Revs 20.5 mln
Note: Prior results not given.
Shr and net include change in accounting policy, resulting
in loss of 22.8 mln dlrs or 1.16 dlrs share.
Results in U.S. funds
| Corporate News |
COCOA CONSUMERS ACCEPT COMPROMISE BUFFER PLAN
| Consumer members of the International
Cocoa Organization, ICCO, accepted a final buffer stock rules
compromise, "on the condition that producers also agree,"
consumer spokesman Peter Baron said.
The full council was meeting at 1530 GMT to discuss the
compromise, which was put together yesterday by ICCO chairman
Denis Bra Kanon.
Consumer delegates said they were optimistic the council
could reach agreement on the rules fairly quickly.
| Corporate News |
NATO HOLDS EMERGENCY MEETING ON AEGEAN CRISIS
| NATO ambassadors met in emergency
session today to discuss tension between members Greece and
Turkey over a disputed area of the Aegean Sea on the Western
Alliance's southern flank, Greek diplomatic sources said.
They said no information had yet emerged from the meeting,
called after statements from both countries that they were
prepared to back rival oil exploration teams with warships.
General Guven Ergenc, Secretary General of the Turkish
General Staff, said today the Turkish research ship Sismik 1,
escorted by an unspecified number of warships, would sail into
disputed waters in the Aegean Sea tomorrow morning.
Greek Prime Minister Andreas Papandreou said "The military
readiness of our country is able now to give a very hard lesson
if our neighbours (Turkey) were to carry out military actions."
The row erupted when the Greek government said last month
that it was taking control of a Canadian-led consortium which
was already producing oil off the Greek island of Thassos and
would drill in the same area after the takeover.
| Financial Reports |
HANSON TRUST TO SELL U.S. CHEMICALS UNIT
| Hanson Trust Plc <HNSN.L> said its U.S.
Subsidiary, Hanson Industries Inc, is to sell PCR Inc, a
speciality chemicals unit, for 6.25 mln dlrs cash to <Chemical
Partners Inc>.
PCR had sales of 13.2 mln dlrs in fiscal 1986 and an
operating loss of 381,000 dlrs.
| Financial Reports |
INVESTOR PAUL BILZERIAN HAS 7.2 PCT PAY 'N PAK STAKE, MAY SEEK CONTROL
|
INVESTOR PAUL BILZERIAN HAS 7.2 PCT PAY 'N PAK STAKE, MAY SEEK CONTROL
| Financial Reports |
UK MAY REVOKE JAPANESE FINANCIAL LICENSES
| The British government may revoke the
licences of selected Japanese banks and securities companies
operating in London's financial City when they come up for
renewal next summer if progress is not made towards opening up
Japan's markets to foreign competition, government sources
said.
"We can't say "yes, we are going to do it (revoke licences)"
but this is definitely being considered," an official said.
His comments came after the government was formally urged
today by a cross-section of influential MPs to take joint
retaliatory action with the United States against Japan.
Britain has grown increasingly impatient with Japanese
trade practices. "There's a sense of urgency here now, but the
emphasis is on securing - not undermining - our interests in
Japan," another government official told Reuters.
Prime Minister Margaret Thatcher said on Thursday that
Britain would not hesitate to use new powers contained in the
Financial Services Act 1986 and the Banking Bill to retaliate
against countries that do not offer reciprocal market access.
She clearly had Japan in mind, government sources said.
The U.K. Last year showed a trade defict with Japan of 3.7
billion stg, official figures show.
A parliamentary motion, signed by 98 MPs, today urged the
U.K. Government to "coordinate action with the President of the
United States, and through the Department of Trade and
Industry, to suspend all further applications from Japanese
communications companies for equipment approval by the British
Approvals Board for Telecommunications, and all further
applications from Japanese financial institutions for licences"
until authorities in Japan stopped imposing what the MPs called
"restrictive conditions" on the bid by (Cable and Wireless PLC)
(cawl.L) and its U.S. And Japanese partners for a stake in
Japan's international telecommunications market.
The motion for retaliatory steps came from a cross-section
of MPs, reflecting the strength of feeling inside Parliament.
Parliamentarians said their action would increase pressure on
the Conservative government to take firm action.
Officials said another option now being considered by the
U.K. Is to refuse issuing new banking licences to Japanese
institutions. That could be done under the government's
proposed Banking Bill now moving through parliament.
58 Japanese financial institutions are authorised to deal
in London, of which 29 are banks. In Tokyo, 14 London-based
firms are authorised to do financial business, officials said.
The new financial services and banking acts offer Britain
an alternative for retaliation which would be otherwise denied
under legally-binding international trade agreements.
"The Financial Services Act gives (Trade and Industry
Secretary Paul) Channon power to stop firms from engaging in
investment, banking and insurance," one official said.
"This point has been made to the Japanese at official level
a number times," the official added.
Britain and France are now working together to urge that
the European Community take collective action against Japan,
but by working within EC treaties, another official said.
British Trade Minister Alan Clark said this week in a radio
interview that the European Community should build barriers
against Japanese imports through certification procedures
similar to those facing European exporters in Japan.
"There comes a point where you cannot resist any longer," he
said, adding "(such barriers) can't be put in place overnight."
Clark said the issue of reciprocity regarding visible trade
"strikes at the basis of whether British industry is to have a
fair access to an extremely large market (Japan) which is
itself in a very dominant position (in) certain aspects of our
own domestic market ... It is really a question of fairness."
The situation is only likely to worsen following news that
Japan's trade surplus with the rest of the world rose by more
than 70 pct in February, year-on-year, to 8.14 billion dlrs
from 5.7 billion in January, political sources said.
But Clark said in his interview that the issues of visible
trade and access to financial markets should be kept separate.
Should Britain decide to act against Japanese financial
institutions, it would most likely focus on the smaller, rather
than larger ones, to minimise any risks to its role as a global
business centre, government sources said. Japan's four largest
securities houses are members of the London Stock Exchange.
In Washington, White House officials said President Reagan
was ready to impose retaliatory trade action against Japan for
breaking its semiconductor agreement with the United States.
There was no immediate indication when Reagan might act on
the recommendations of his Economic Policy Council to curb
Japanese exports to the United States but officials said the
move could come today or early next week.
Trade sources said the actions being weighed by Reagan
included tariffs on a wide variety of Japanese exports which
use semiconductors.
| Commodities and Trade |
LSB INDUSTRIES <LSB> AGREES TO ACQUIRE BANK
| LSB Industries Inc said it agreed
to acquire Northwest Federal Savings and Loan Association for
1,500,000 dlrs.
As part of the agreement, LSB said it also would transfer
assets valued of not less than 30 mln dlrs to Northwest
Federal, which is located in Woodward, Okla.
| Financial Reports |
UNIVERSAL HOLDING CORP <UHCO> 4TH QTR NET
| Shr NA
Net profit 2,000 vs profit 195,000
Revs 2,623,000 vs 2,577,000
Year
Shr NA
Net loss 425,000 vs profit 278,000
Revs 15.4 mln vs 8,637,000
| Financial Reports |
BILZERIAN MAY SEEK CONTROL OF PAY 'N PAK <PNP>
| Investor Paul Bilzerian disclosed he
holds a 7.2 pct stake in Pay 'N Pak Stores Inc common stock and
is considering seeking control of the retail building material
firm.
Bilzerian said he and a Tampa, Fla., investment firm he
controls called Bicoastal Financial Corp "may acquire additional
shares, or they may seek to acquire one or more positions on
(Pay 'N Pak's) Board of directors or to acquire a controlling
interest in the (company's) shares, by tender offer or
otherwise." The statement was made in a filing with the
Securities and Exchange Commission.
Bilzerian said his course of action would depend on the
company's prospects, market conditions and other factors.
Bilzerian said he and Bicoastal made net purchases of
515,600 shares on the New York Stock Exchange Jan 26-March 25.
His 7.2 pct stake makes up a total of 722,000 shares.
| Financial Reports |
FED EXPECTED TO ADD RESERVES, ECONOMISTS SAY
| The Federal Reserve is expected to
enter the U.S. government securities market to add reserves
today, economists said.
They said the Fed would probably supply temporary reserves
indirectly by arranging one to two billion dlrs of customer
repurchase agreements.
After averaging 6.21 pct yesterday, federal funds were
opened at 6-1/8 pct and remained at that level.
| Commodities and Trade |
ALLEGHENY INT'L <AG> SELLS THREE OVERSEAS UNITS
| Allegheny International Inc
said it sold three overseas subsidiaries to Reil Corp Ltd, a
North Sydney, Australia, investment group.
Terms were not disclosed.
The units sold were Sunbeam Corp Ltd Australia, Sunbeam New
Zealand Ltd and Victa (U.K.) Ltd. The units make and distribute
various products, including lawn mowers, small appliances and
sheep shearing equipment. They employ a total of about 1,750.
| Financial Reports |
PHARMACIA FORECASTS HIGHER 1987 EARNINGS
| Pharmacia AB <PHAB ST> forecast
earnings after financial items of one billion crowns in 1987 vs
821.2 mln last year on condition that exchange rates remained
at their present parities.
Sales would in such circumstances go up to six billion
crowns from 3.65 billion in 1986, it said.
A weakening Dollar was mainly responsible for a five pct
negative impact on sales during 1986 which the company blamed
on currency movements.
Last year's results were also badly hit by a once-off
writedown of 520 mln crowns for intangible assets.
The company said mainly this represented the premium the
group had paid for the know-how of various high-tech firms it
had taken over.
The accounts also showed a financial deficit of 1.87
billion crowns vs a deficit of 133 mln which was covered partly
by drawing down company liquidity to 738 mln vs one billion and
partly by increasing borrowing to 2.23 billion vs 621 mln.
Pharmacia said the financial deficit was caused by it
having used more funds than generated by group operations,
mainly because of the 1.36 billion it paid in cash for shares
in LKB-Produkter AB and the assets of Intermedics-Intraocular
Inc.
| Industrial and Sector News |
GALACTIC <GALCF> ADOPTS CONSERVATIVE ACCOUNTING
| Galactic Resources
Ltd, earlier reporting a 1986 loss of 25.6 mln U.S. dlrs, said
it adopted a more conservative accounting policy, similar to
other gold producers' accounting for exploration costs.
As a result, the company retroactively charged all past
exploration and related administration costs incurred on its
properties against expenses in 1986, 1985 and 1984.
Under the new policy, all future exploration and related
administration costs will be written off to expenses rather
than capitalized as an intangible asset, it said.
Galactic said the accounting change resulted in a 22.8 mln
U.S. dlr charge against 1986 earnings. It did not immediately
disclose the affect of the change on prior years' results.
The new accounting policy is not expected to adversely
affect working capital position, future cash flows or the
company's ability to conduct ongoing business operations, it
said.
Galactic said the charge includes 9.9 mln U.S. dlrs of
costs concerning its Summitville Mine leach pad and 8.9 mln
U.S. dlrs in waste removal costs, dyke construction and other
mine developments.
Galactic said under the prior accounting policy, the
Summitville mine expenses would have been amortized over the
life of the mine and charged against future earnings.
The change will also result in lower depreciation and
amortization charges against income of about 52 U.S. dlrs an
ounce of gold produced in future periods, based on total
estimated reserves of 617,000 ounces.
Galactic said March leaching production at Summitville is
expected to exceed 2,500 ounces, raising gold equivalent
production since the June 5, 1986 start of leaching to 65,000
ounces.
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