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German February trade surplus 10.4 billion marks (Jan surplus 7.2 billion) - official
|
German February trade surplus 10.4 billion marks (Jan surplus 7.2 billion) - official
| Commodities and Trade |
GERMAN CURRENT ACCOUNT SURPLUS WIDENS IN FEBRUARY
| West Germany's current account
surplus widened to a provisional 6.6 billion marks in February
from a slightly downwards revised 4.8 billion in January, a
spokeswoman for the Federal Statistics Office said.
The trade surplus in February widened to a provisional 10.4
billion marks from 7.2 billion in January, she added.
The Statistics Office had originally put the January
current account surplus at 4.9 billion marks.
The February trade surplus was well up on the 6.84 billion
mark surplus posted in the same month of 1986. But the current
account surplus was down slightly from the 6.85 billion surplus
recorded in February 1986.
A Statistics Office statement said the widening of the
February current account surplus compared with January was due
to seasonal factors. Neither the trade nor current account
figures are seasonally adjusted.
February imports, measured in terms of value, totalled
32.11 billion marks, a decline of 10 pct against February 1986
but a rise of 5.5 pct against January.
Exports in February, also in value terms, totalled 42.56
billion marks, 0.5 pct less than in February 1986 but up 13 pct
compared with January.
The Statistics Office said it was not yet able to calculate
the real change in exports and imports in February. But for
comparison purposes it noted that in January the average value
of imports had fallen 15 pct year-on-year while the average
value of exports had declined by only 4.4 pct.
Within the current account, the services account had 300
mln marks deficit, supplementary trade items a 200 mln mark
surplus while transfer payments posted a 3.7 billion mark
deficit.
Taking the first two months of 1987 together, imports in
value terms fell 14 pct to 62.6 billion marks compared with a
year earlier. The value of exports totalled 80.2 billion marks,
a decline of 7.4 pct against the same months of 1986.
The resulting trade surplus of 17.6 billion marks for
January/February compares with a cumulative surplus of 14.1
billion marks in the year-ago period.
The cumulative current account surplus for January and
February 1987 totalled 11.3 billion marks against 11.4 billion
marks a year earlier, the Statistics Office said.
Bank economists said the rise in the February trade surplus
reflected an improvement in the terms of trade as well as
seasonal factors. The Federal Statistics Office said earlier
this week that February import prices fell 0.7 pct against
January while export prices were unchanged.
"The rise in the nominal figures masks a lower export trend
that is not expected to change for several months at least,"
said an economist. He said the nominal trade surplus for 1987
as a whole is likely to fall only slightly from the record
112.2 billion marks in 1986 but other economists said the
surplus could fall to around 80 billion marks.
An economist at the Bank fuer Gemeinwirtschaft (BfG) in
Frankfurt said a two-month comparison of trade figures gave a
more accurate picture of West Germany's trade position.
He noted the 17.6 billion mark surplus for January and
February together was lower than the 21.6 billion mark surplus
posted in November and December.
"The trend is clearly lower," he said.
This economist, who declined to be named, said the February
rise was also partly explained by special factors in January,
when there had been a number of public holidays as well as
extremely cold weather, both of which hindered trade.
| Market and Economy |
KEATING REVISES DOWN AUSTRALIAN GROWTH FORECAST
| Treasurer Paul Keating forecast
economic growth at slightly under two pct in the financial year
ending June this year, down from the 2.25 pct forecast
contained in the 1986/87 budget delivered last August.
Australia's terms of trade also fell, by 18 pct, over the
past two years, he told Parliament. Terms of trade are the
difference between import and export price indexes.
Despite the figures, the budget forecast of about 1.75 pct
annual growth in employment would be met, Keating said.
Unemployment is currently at 8.2 pct of the workforce.
"This government is dragging Australia through a trading
holocaust the kind of which we have not seen since the Second
World War," Keating said.
"We are not pushing this place into a recession. We are not
only holding our gains on unemployment, we are bringing
unemployment down," he said, adding that the government had help
the country avoid recession.
| Market and Economy |
TAIWAN'S SAVINGS AT RECORD HIGH
| Taiwan has over one trillion Taiwan dlrs
in savings, official statistics show.
Figures released yesterday show all forms of savings by
individuals and public and private firms, including bank
deposits, certificates of deposits and bond's, are running at
about 37 pct of gross national product (GNP).
GNP rose by 14.35 pct in 1986 to 2.74 trillion dlrs.
Taiwan's strict foreign exchange controls and lack of
incentives to invest abroad mean its huge export earnings are
mainly deposited in bank savings accounts, earning below four
pct interest each year.
| Market and Economy |
SHORT-DATED SAUDI RIYAL RATES FIRM IN QUIET MARKET
| Short-dated Saudi riyal interest rates
firmed but other rates were steady in quiet trading, dealers
said.
"Day-to-day money is a bit tighter," one trader said.
Overnight rose two points to six pct, while most quotes for
tomorrow/next and spot/next were 1/2 point higher at around
six, 5-1/2 pct.
The periods were essentially steady at 5-7/8, 5/8 pct for
one month, 6-1/2, 3/8 pct for three, and 6-7/8, 11/16 for six
months.
The spot riyal stood at 3.7500/05 to the dollar after
3.7506/09 yesterday.
| Commodities and Trade |
JAPAN BEEF PRICE SUPPORT CUT WILL NOT RAISE DEMAND
| Japan's plan to cut beef intervention
prices for the fiscal year starting April 1 will not boost
demand because of strict supply controls and a complex
distribution system, Japanese and U.S. Industry sources said.
"Government beef policy protects farmers rather than meeting
consumers' demands and the cutback ... Is too marginal," a
Housewives Association of Japan official said.
Despite mounting U.S. Pressure on Japan to open farm
markets, beef is strictly controlled by the government, which
maintains a price stabilisation zone to protect farmers.
Under the plan, expected to be announced this month, the
standard or bottom price of castrated wagyu -- known as marbled
beef -- will be set at 1,370 yen per kilo for 1987/88 against
1,400 now, and the ceiling at 1,780 yen against 1,820.
The standard price of other beef, mainly produced from
dairy steers, is set at 1,020 yen against 1,090 and the ceiling
at 1,325 against 1,420.
Ministry officials said the semi-government Livestock
Industry Promotion Corp (LIPC) conducts buffer stock operations
to help keep wholesale beef prices within the intervention
price zone.
The LIPC is allowed to import most beef, with the amount
set by the government under a quota system. When wholesale
prices go above the ceiling, the LIPC releases its beef stocks,
both domestic and imported, and buys locally produced beef when
prices are below.
But the LIPC has often been criticised for releasing beef
stocks when the prices are higher than the ceiling.
Phillip Seng, Asian Director of the U.S. Meat Export
Federation, told Reuters the two pct cut in prices is a step
toward closing the gap with European Community prices, about
half those in Japan.
But Seng said the cut will not benefit consumers or U.S.
Meat exporters because of Japan's rigid and complicated
distribution system and strict supply control by the LIPC.
The Housewives Association official said retail beef prices
are high mainly because of distribution problems and high
production costs, as well as poor operations by the LIPC.
American meat packers see Japan as a promising market. F.C.
Beatty, of U.S. Packer John Morrell and Co, told the Japan
Times beef cuts, which sell for 1.20 to 3.00 dlrs a pound in
the U.S., Are sold at 15 to 30 dlrs in Japan.
But Seng said the cut will not benefit consumers or U.S.
Meat exporters because of Japan's rigid and complicated
distribution system and strict supply control by the LIPC.
The Housewives Association official said retail beef prices
are high mainly because of distribution problems and high
production costs, as well as poor operations by the LIPC.
American meat packers see Japan as a promising market. F.C.
Beatty, of U.S. Packer John Morrell and Co, told the Japan
Times beef cuts, which sell for 1.20 to 3.00 dlrs a pound in
the U.S., Are sold at 15 to 30 dlrs in Japan.
But industry sources said it is unclear how much demand
will pick up if retail beef prices drop following any sharp
reduction in intervention prices.
U.S. Agriculture Secretary Richard Lyng said this week he
will ask Japan to remove all beef import restrictions when he
visits here next month.
In 1984, Japan decided to increase its beef import quota by
9,000 tonnes a year until March 31, 1988.
In 1987/88, the quota will rise to 177,000 tonnes from
168,000 in 1986/87, ministry officials said, adding Japan wants
to keep self-sufficiency in beef at around 70 pct.
| Financial Reports |
FOREIGN FIRMS HOPE TO JOIN JAPAN TELECOM COMPANY
| One of two rival firms seeking to enter
Japan's international telecommunications market said it will
offer a stake in the company to 10 foreign firms.
President of <International Telecom Japan Inc> (ITJ), Nobuo
Ito, decline to specify what share the firms would take, but
told Reuters they would not participate in its management.
ITJ and <International Digital Communications Planning Inc>
(IDC), in which both Cable and Wireless Plc <CAWL.L> and
Pacific Telesis Group <PAC.N> own 20 pct stakes, are set to
merge into a new entity to compete against <Kokusai Denshin
Denwa Co Ltd> (KDD).
The Ministry of Posts and Telecommunications has urged the
two rival firms to merge so KDD would have only a single
competitor. The ministry has also rejected foreign management.
Japan's law limits foreign ownership of any new
international telecommunications entrant to 33 pct, so C and
W's and Pacific's stakes could be three pct in the merged firm,
sources said. Those seeking to join are General Electric Co
<GE.N>, Ford Motor Co <F.N>, <Citibank NA>, BankAmerica Corp
<BAC.NYSE>, <Shearson Lehman Bros Inc>, <Saloman Brothers>,
<Asia Boeing Computer Service>, Unisys Corp <UIS.N>, <Societe
Generale> and Deutsche Bank AG <DBKG.FRA>.
The merger plan has been criticised for excluding foreign
firms from a meaningful position in the market.
The U.K.'s Prime Minister Margaret Thatcher, U.S. Secretary
of State George Shultz, U.S. Commerce Secretary Malcolm
Baldrige and U.S. Trade Representative Clayton Yeutter have all
expressed such opposition.
Japanese Prime Minister Yasuhiro Nakasone will draft a
reply to the criticism following further discussion, a Posts
and Ministry official said.
| Commodities and Trade |
U.K. OILMEAL/VEG OIL PRODUCTION ROSE IN 1986
| The U.K. Produced 820,400 tonnes of
oilcake and meal and 431,000 tonnes of crude vegetable oil in
calendar 1986, Ministry of Agriculture figures show.
They compare with 785,800 tonnes of oilcake and meal and
407,400 tonnes of crude vegetable oil produced in 1985.
Total oilseeds crushed rose to 1.27 mln tonnes from 1.21
mln in 1985.
| Corporate News |
BURLINGTON COAT FACTORY WAREHOUSE CORP <BCF> NET
| Jan 31 end
Shr 1.40 dlrs vs 1.10 dlrs
Net 16.4 mln vs 12.9 mln
Revs 196.2 mln vs 157.5 mln
| Corporate News |
SIEMENS SEES SALES NEAR 52 BILLION MARKS THIS YEAR
| World group turnover of Siemens AG
<SIEG.F> should rise to 51 or 52 billion marks in the current
year to September 31 after a 19 pct upturn in the first five
months, management board chairman Karlheinz Kaske said.
Siemens reported world group turnover in 1985/86 of 47.02
billion marks.
Kaske told the annual shareholders meeting turnover rose to
21.2 billion marks in the first five months of 1986/87, about
19 pct above the same year-ago period. The rise was mainly due
to payment in January for a West German nuclear power station
which led to a jump in domestic sales of 36 pct.
In the first five 1986/87 months, turnover abroad showed a
three pct increase, Kaske said, without giving figures.
In the same period incoming orders rose five pct to 21.8
billion marks against the same 1985/86 period.
For the year as a whole incoming orders should rise between
one and two billion marks to around 51 or 52 billion.
Apart from payments for the nuclear power station, the
communications and telecommunications sectors in particular
should contribute to growth this year, Kaske said.
But it was not possible to make a profit forecast for
1986/87 because of uncertainty about the direction of the
dollar, Kaske said.
Siemens already reported that first quarter 1986/87 group
net profit fell marginally to 296 mln marks from 298 mln in the
same period in the previous year.
Turnover in the first five months rose particularly
strongly in the installations and automotive technology,
communications and telecommunications sectors, but components
and energy and automation showed a sharp decline.
Kaske said domestic orders rose to 10.2 billion marks in
the first five months of this year, or nine pct above their
level in the same 1985/86 period, boosted in particular by
orders for the fully owned Kraftwerk Union AG subsidiary.
Foreign orders grew one pct to 11.6 billion marks. An
increase in orders through newly acquired subsidiaries abroad
was balanced by the decline in the dollar.
While the installations and automotive technology sector
showed a sharp rise in orders, energy and automation and
communications orders were below the level achieved in the same
period of 1985/86.
Telecommunications orders remained at roughly the same
level.
Kaske said investments were expected to remain around six
billion marks in 1986/87 after a 50 pct increase the previous
year. Research and development were likely to rise 13 pct to
6.1 billion marks or around 12 pct of turnover.
| Corporate News |
KRUPP HAS SATISFACTORY 1986 RESULTS
| The Fried. Krupp GmbH
<KRPG.D> steel and engineering group said it had a satisfactory
1986 despite a provisional 12 pct fall in total group sales to
18.1 billion marks from 20.7 billion the previous year.
Third party turnover declined to 15.9 billion from 18.5
billion in 1985 while orders slipped to 15.5 billion marks from
16.9 billion, it said in a preliminary statement.
Despite these figures, which reflected the dollar's
weakness against the mark and oil and raw materials price
falls, it said 1986 was a satisfactory year.
The reason was the continued expansion of the machinery and
plant sector, which accounted for 42 pct of total sales.
Krupp added that some areas of the mechanical engineering
business achieved notable growth rates and acquisitions had
underpinned machinery and component activities.
An orders decline in the steel and, in particular, the
trading and services sectors, affected the group's total order
figures.
However, "all business sectors contributed to the positive
results achieved in 1986," Krupp added, without giving details.
Domestic orders decreased by five pct to 9.6 billion marks
from the previous year and foreign orders fell 14 pct to 5.9
billion, it said. Foreign business accounted for 38 pct of
orders against 40 pct in 1985.
Orders received by the machinery and plant sector, 11
member companies which comprise the core area of the group,
rose by four mln marks last year to 6.9 billion, Krupp said.
The group's orders in hand amounted to 9.1 billion marks at
end-December 1986 from 10.3 billion at the start of the year.
Orders received by the steel sector last year decreased by
three pct to 6.2 billion marks from 1985, it said.
The steel market weakened increasingly over the year,
mainly because of exchange rate movements, the deterioration in
foreign trade and a downturn in a number of customer
industries.
The difficult market for sections and flats of quality
steel depressed order tonnages by around seven pct, Krupp said.
But special steel boosted by strong demand for stainless
cold-rolled flats, grew by five pct in tonnage terms.
| Other |
NO PESSIMISM FOR GERMAN EXPORTERS, MINISTRY
| Firms need not be pessimistic about export
prospects even though foreign markets have become more
difficult because of the mark's strength the Economics Ministry
said.
The ministry's parliamentary state secretary Ludolf Georg
von Wartenberg, told a business conference German exports could
start rising again in real terms during 1987, reversing the
lower export trend which emerged in mid-1986.
But even if the turnaround did not occur, there would be no
need to worry about the economy as long as the weakness of
exports did not affect currently good domestic demand.
Von Wartenberg said consumer demand remained quite good but
noted there had been a cooling in the investment climate. "This
is certainly a reason for heightened watchfulness but not for
stimulative steps," he said.
The best way for Bonn to help its exporters is to work
actively to promote free world trade, he added.
Von Wartenberg said the economy still had good export
opportunities. Price alone was not the only factor in
international competitiveness, he said, adding German firms
have a reputation for high quality standards, prompt delivery
times and good service.
Von Wartenberg said the government was in a difficult
position on its trade figures. It faced international pressure
to reduce its trade surplus, but West Germans were worried
about the effect of the mark's strength on the country's
exporters.
Reports about the trade surplus, especially overseas,
tended to concentrate on nominal trade figures, which rose to a
record 112.2 billion marks in 1986, he said. But this rise was
due entirely to the lower value of imports caused by the
decline of both the dollar and oil prices. German exports have
in fact been falling in real terms for sometime, he said.
| Market and Economy |
MONETARY AUTHORITIES SAID TO LOSE CREDIBILITY
| The monetary authorities of the major
industrialised countries lost their credibility this week as
the dollar was sold off despite pleas from ministers and
widespread central bank intervention, dealers said.
The dollar's fall below 150 yen, which follows last month's
Paris currency stabilisation agreement by the U.S., Japan, West
Germany, Britain, France and Canada, is a dramatic reversal of
the success of the Group of Five (G-5) 1985 New York Plaza
meeting to weaken the dollar, they said.
The G-5 and the market agreed in 1985 that the dollar was
overvalued but this time the market and the authorities are on
different sides, dealers said.
Apparent confusion in the ranks of the G-5 nations has
encouraged the market to challenge the authorities despite
concerted intervention by the central banks of the United
States, Japan, Britain and West Germany, they said.
Pleas by Japanese Finance Minister Kiichi Miyazawa for
action to stabilise the dollar were matched over the weekend by
comments by U.S. Treasury Secretary James Baker that there was
no target zone for the dollar. The dollar was sold anyway.
Yesterday's comment by Baker that he stood by the Paris
accord did nothing to reverse sentiment, dealers said.
The intervention, backed by remarks by Fed Chairman Paul
Volcker and Japanese central bank governor Satoshi Sumita,
which a few months ago would have brought the dollar fall to a
halt, has done little but slow the rate of its decline, they
noted.
The situation has again raised the question of whether
intervention can succeed against the trend in today's huge
currency markets. Dealers said the market's cool response to
intervention reflected a basic oversupply of dollars.
"This means that the current dollar selling is not of a
sheer speculative nature but backed by real demand," said Koichi
Miyazaki, deputy general manager at Sanwa Bank.
Dealers said the dollar will remain weak despite the
intervention and it is only a matter of time before some
operators try to push it below 148 yen. The dollar closed in
Tokyo today at 149.40 against New York's 149.30/40. Its record
low was 148.40 in Tokyo last Tuesday.
Dealers said the dollar will gain only temporary support to
rise above 150 yen toward early April when the Group of Seven
industrial nations meets to discuss currencies again.
The market expects the seven nations (the Paris six plus
Italy) to try to agree on another way to stabilise currencies
apart from intervention, a chief dealer at a U.S. Bank said.
Dealers said they were unsure what other methods could be
used and they are sceptical anyway about how long the Paris
accord nations, particulary the U.S., Will remain willing to
prevent a further dollar fall given the continuing high U.S.
Trade deficit, especially with Japan.
Further pressure from a protectionist U.S. Congress for a
lower dollar is also limiting Washington's options, they said.
The market now thinks the central bank action is to slow
the dollar fall, not to push it back over 150 yen, said
Tadahiko Nashimoto, manager at Long Term Credit Bank of Japan.
Another bearish factor for the dollar is expected large
forward dollar sales from April to June for export bills
falling due for Japanese exporters from April to September.
The exporters had delayed in expectation of a further yen
depreciation, dealers said.
Yesterday's request to 30 trading houses by the Ministry of
International Trade and Industry to restrict dollar sales looks
ineffective in light of this real demand, they said.
The market is also anticipating active institutional dollar
sales to hedge currency risks on bond holdings from the new
business year starting April 1, dealers said.
"The market seems to have established a new dollar trading
range between 147 and 149 yen," one dealer said.
The dollar traded between 151 and 153 yen after the Paris
accord on February 22 and 150 yen was then considered the low
end for the dollar against the yen, he said.
Some dealers now believe that if the dollar falls below 148
yen, it will pick up renewed downward momentum and slide to
145.
| Financial Reports |
UK FEB TRADE DEFICIT 224 MLN STG VS DEFICIT 527 MLN IN JAN - OFFICIAL.
|
UK FEB TRADE DEFICIT 224 MLN STG VS DEFICIT 527 MLN IN JAN - OFFICIAL.
| Financial Reports |
U.K. FEB CUURENT ACCOUNT SURPLUS 376 MLN STG VS JAN SURPLUS 73 MLN - OFFICIAL.
|
U.K. FEB CUURENT ACCOUNT SURPLUS 376 MLN STG VS JAN SURPLUS 73 MLN - OFFICIAL.
| Corporate News |
MALAYSIAN CENTRAL BANK SEES HIGHER 1987 GROWTH
| Gross domestic product (GDP)
growth in 1987 is expected to grow by between 1.5 and two pct,
up from one pct in 1986, the central bank said.
The forecast compares with the one pct GDP growth forecast
made by the Treasury last October.
Bank Negara also said in its annual report that gross
national product (GNP) is expected to grow by 3.5 to four pct,
after declining 7.3 pct in 1986.
It said that a turnaround in investor confidence since last
November had been spurred by a moderate improvement in oil and
commodity prices and a rise in manufacturing exports.
Growth in 1987 is expected to come from the anticipated
rise in export earnings if the industrialised countries sustain
their average GNP growth at 2.5 to three pct, it added.
Bank Negara said its forecast assumes that crude oil will
average 15.50 dlrs a barrel, rubber at 210 cents a kilo, palm
oil at 850 ringgit a tonne, tin at 17 ringgit a kilo and a rise
of 12 pct in manufacturing exports.
It said Malaysia's international terms of trade will turn
around to rise by two pct in 1987 after declining 12 pct in
1986 and five pct in 1985.
"In 1987, income will be higher, private consumer spending
is likely to recover and expand... The budget will remain under
strict control... The resource gap in the government's finances
on current account will be bridged over the near term," Bank
Governor Jaafar Hussein said in the report.
The current account deficit is expected to narrow to 1.19
billion ringgit in 1986 or 1.8 pct of GNP from 1.79 billion or
2.5 pct of the GNP the previous year.
The bank forecasts the inflation rate will increase by 1.5
pct, after its 0.7 pct rise in 1986.
| Financial Reports |
COFFEE PRICE FALL SHORT TERM - DUTCH ROASTERS
| This morning's sharp decline in coffee
prices, following the breakdown late last night of negotiations
in London to reintroduce International Coffee Organization,
ICO, quotas, will be short-lived, Dutch roasters said.
"The fall is a technical and emotional reaction to the
failure to agree on reintroduction of ICO export quotas, but it
will not be long before reality reasserts itself and prices
rise again," a spokesman for one of the major Dutch roasters
said.
"The fact is that while there are ample supplies of coffee
available at present, there is a shortage of quality," he said.
"Average prices fell to around 110 cents a lb following the
news of the breakdown but we expect them to move back again to
around 120 cents within a few weeks," the roaster added.
Dutch Coffee Roasters' Association secretary Jan de Vries
said although the roasters were disappointed at the failure of
consumer and producer ICO representatives to agree on quota
reintroduction, it was equally important that quotas be
reallocated on a more equitable basis.
"There is no absolute need for quotas at this moment because
the market is well balanced and we must not lose this
opportunity to renegotiate the coffee agreement," he said.
"There is still a lot of work to be done on a number of
clauses of the International Coffee Agreement and we would not
welcome quota reintroduction until we have a complete
renegotiation," de Vries added.
With this in mind, and with Dutch roasters claiming to have
fairly good forward cover, the buying strategy for the
foreseeable future would probably be to buy coffee on a
hand-to-mouth basis and on a sliding scale when market prices
were below 120 cents a lb, roasters said.
| Market and Economy |
U.K. VISIBLE TRADE DEFICIT NARROWS IN FEBRUARY
| Britain's visible trade deficit narrowed
to a seasonally adjusted provisional 224 mln stg in February
from 527 mln in January, The Trade and Industry Department
said.
The current account balance of payments in February showed
a seasonally adjusted provisional surplus of 376 mln stg
compared with a surplus of 73 mln in January.
Invisibles in February were put provisionally at a 600 mln
surplus, the same as in January.
Seasonally adjusted, imports rose in February to 7.16
billion stg from 6.73 billion in January. Exports rose to a
record 6.93 billion last month from 6.20 billion in January.
Trade Department officials said the improvement in
Britain's current account contrasted with most private
forecasts and they attributed much of the strength to imports
rising less quickly in February than might otherwise have been
expected.
The Department said exceptionally cold weather in January
reduced exports that month and that there had been an element
of catching up in the February figures.
The seasonally adjusted volume index, base 1980, a guide to
underlying non-oil trade, showed exports rising to 131.0 from
114.6 in January and imports rising to 142.2 from 136.5.
The value of British oil exports in February rose to 751
mln stg from 723 mln in Jnauary while oil imports rose to 425
mln from 352 mln.
The Department said the upward trend in non-oil export
volume continues and the underlying level of non-oil import
volume seems to have stablised.
The Departnment said exports to the U.S. May be benefiting
from fluctuations in the mark and yen exchange rates.
| Other |
LUCAS SEES CONTINUED GROWTH IN SECOND HALF
| Lucas Industries Plc <LUCS.L> said its
underlying performance would continue to improve in the second
half but profits would be restrained by low activity in U.K.
Commercial vehicle and tractor markets as well as in North
American electronics.
The company earlier reported a two mln stg rise in pretax
profit to 40 mln in the six months to end-January. The figure
was some five mln below forecasts and Lucas shares dropped
sharply to 557.5p at 1130 GMT from last night's close of 590p.
It said it would continue with plans for all its activities
to be internationally competitive and profitable.
Costs of restructuring, reorganisation, employee training
and retraining, particularly in the UK automotive businesses,
together with high research and development spending would
affect profits in the short term.
But Lucas said it was exploiting growth opportunities in
automotive markets, especially in vehicle breaking and engine
management systems. Recent acquisitions in North America had
strengthened Lucas Aerospace and Lucas Industrial systems.
| Other |
IWC ups Soviet grain 1986/87 import estimate three mln tonnes to 29 mln - official
|
IWC ups Soviet grain 1986/87 import estimate three mln tonnes to 29 mln - official
| Market and Economy |
IWC lifts 1986/87 world wheat, coarse grain estimate one mln tonnes to record 1,377 mln
|
IWC lifts 1986/87 world wheat, coarse grain estimate one mln tonnes to record 1,377 mln
| Market and Economy |
TRADE SURPLUS CUT WOULD BENEFIT JAPAN - SUMITA
| Bank of Japan Governor Satoshi Sumita
said it is in Japan's national interest to make greater efforts
to reduce its trade surplus.
He told business executives the most important issues for
the world economy are the correction of international trade
imbalances and a solution to the world debt problem.
To this end, Japan and the U.S. Must make medium- and
long-term efforts to alter economic structures which have
expanded the trade gap between the two nations. World economic
growth and therefore an expansion of debtor countries' export
markets are needed to solve the debt issue, he added.
| Corporate News |
COMMISSION APPROVES RAINBOW/PROGRESSIVE MERGER
| The Commerce Commission has approved
a proposed merger between <Progressive Enterprises Ltd> and
<Rainbow Corp Ltd>, Rainbow said in a statement.
The merger involves the formation of a new company <Astral
Pacific Corp Ltd> which will acquire all shares in both
companies on a one-for-one share exchange basis.
Rainbow earlier this week lifted its stake in Progressive
to 52 pct from 44 pct. The statement said a new private
company, <Transcapital Corp Ltd>, fully owned by Rainbow
directors Craig Heatley, Gary Lane and Ken Wikeley, will
purchase this stake for an undisclosed cash sum.
The Commission has also approved Transcapital acquiring up
to 45 pct of Astral Pacific, Rainbow said.
<Brierley Investments Ltd>, which has been a frequent
critic of the merger, launched a full bid for Progressive at
4.20 N.Z. Dlrs a share last Monday.
| Corporate News |
GREENWOOD RESOURCES <GRRL> SELLS COMPANY STAKE
| Greenwood Resources Inc said it has sold
its 4,300,000 common share majority holding in <New London Oil
Ltd> of London to an affiliate of <Guinness Peat Group PLC> of
London and an affiliate of <Sidro SA> of Belgium for a total of
1,700,0000 dlrs in cash.
The company said it will apply the proceeds of the sale to
support its line of credit and as part of a proposed debt
restructuring with Colorado National Bancshares <COLC> and
Greenwood shareholders.
It said it will retain a seat on the New London board.
| Commodities and Trade |
U.K. MONEY MARKET FORECAST REVISED TO DEFICIT
| The Bank of England said it revised its
estimate of today's money market shortfall to around 350 mln
stg from a flat position.
| Financial Reports |
IWC LIFTS WORLD GRAIN OUTPUT ESTIMATE TO RECORD
| The International Wheat Council (IWC)
lifted its estimate for 1986/87 world wheat and coarse grain
production by one mln tonnes to a record 1,377 mln, compared
with 1,351 mln tonnes the previous season.
In its monthly market report, the IWC said it is leaving
unchanged its forecast of world wheat production for the coming
1987/88 season at between 520 and 530 mln tonnes against a
record 534 mln in 1986/87. The one mln tonne upward revision in
1986/87 wheat production reflects several minor adjustments.
The IWC raised the 1986/87 coarse grain trade figure two mln to
87 mln tonnes. It left wheat trade unchanged at 86 mln.
The IWC 1986/87 estimate for world trade in wheat and
coarse grain is thus estimated two mln tonnes higher at 173 mln
against 169 mln the previous season with the forecast three mln
rise in Soviet imports offset by small reductions elsewhere.
The IWC said the area harvested for wheat in 1987/88 is
likely to be down from last year as low world prices and
restrictive national policies measures begin to take effect.
At least four of the five major exporters expect to see a
drop in wheat sowings without offset in other countries. There
is still potential for even higher average wheat yields but the
IWC said there are increasing signs world output may level off.
Although it is still early to assess the coarse grain
outlook, the IWC said barley acreage is likely to fall in the
European Community but increase in Canada. U.S. Maize area is
expected lower but oat sowings could rise.
After damage to its maize crop last year, the Soviet Union
plans to expand this area by as much as 50 pct to over six mln
hectares in a year when many frost damaged wheat fields are
likely to be resown to this and other spring crops. Improved
weather and a further increase in the use of intensive
cultivation methods could therefore see a marked rise in Soviet
maize output in 1987, the IWC said.
Any reduction in world coarse grain output would be
bolstered by the large carryover stocks from 1986/87, the IWC
said.
It left its estimates of wheat and coarse grain stocks at
endof different marketing years unchanged at 178 and 210 mln
tonnes, respectively, against 160 and 167 mln a year earlier.
After record world durum wheat production of 218.8 mln
tonnes last season, the IWC said there are already signs of
another large crop this coming season with higher output
expected in the EC, Canada, the U.S. And North Africa.
| Corporate News |
BANK OF JAPAN BUYS SMALL QUANTITY DOLLARS -DEALERS
| The Bank of Japan was thought to have
bought a small amount of dollars at around 149.30/40 yen,
dealers said.
The dollar fluctuated marginally after the small-scale
intervention, believed to total several tens of mlns of dlrs,
they said. Large-scale buying by foreign banks or by a life
insurance company earlier pushed the dollar upwards, they said.
Trading was not very active and dealers were watching for
further central bank intervention to smooth out any sharp
movements, but underlying dollar sentiment is still bearish.
| Market and Economy |
U.K. TRADE FIGURES BUOY HOPES OF INTEREST RATE CUT
| The release of U.K. February trade data
showing that the current account surplus was a provisional 376
mln stg, up from a 73 mln surplus in January, has boosted hopes
of an early cut in interest rates, analysts said.
Market forecasts had been for a worse outcome, with
expectations of a deficit in visible trade averaging about 750
mln stg, against the official figure of 224 mln stg, sharply
narrower than January's 527 mln deficit.
"The figures are unreservedly good," Chase Manhattan
Securities economist Andrew Wroblewski said.
Sterling rebounded on the trade figures, reversing a weaker
morning trend, to stand at 72.1 pct of its trade weighted index
against a basket of currencies at midday, unchanged from
yesterday's close but 0.3 points above the 1100 GMT level.
The market had feared that a deteriorating non-oil trade
pattern would undermine international support for sterling,
which has been the motor behind the recent fall in U.K.
Interest rates. Money market sources said the market had begun
to doubt that a widely expected drop in bank base lending rates
to 9.5 pct from the present 10.0 pct was really on the cards.
But sentiment now looks to have turned about again.
There now looks to be no danger that the Chancellor of the
Exchequer Nigel Lawson's forecast of a 1987 current account
deficit of 2.5 billion stg will be exceeded, Wroblewski said.
Seasonally adjusted figures showed imports rose in February
to 7.16 billion stg from 6.73 billion in January.
Exports rose to a record 6.93 billion from 6.20 billion.
However, Chris Tinker, U.K. Analyst at brokers Phillips and
Drew said the faster rise in exports than imports would prove
partly aberrational in coming months. He forecast the
Chancellor's Budget tax cuts would increase consumer
expenditure on imported goods.
However, Warburg Securities economist Ian Harwood said his
firm was sharply revising its 1987 current account deficit
forecast in the light of the latest data, cutting one billion
stg off the expected full year total to about 1.75 billion stg.
He said news of strong growth in exports of non-oil goods
confirmed recent bullish surveys among members of the
Confederation of British Industry.
The growth in imports appears to be flattening, even if
January's bad weather had curbed consumer spending on overseas
goods and import-intensive stock building among manufacturers,
Harwood said.
U.K. Government bonds, or gilts, surged by more than 1/2
point on the better-than-expected news, as earlier worries
about the figures evaporated.
Sterling peaked at a high of 1.6075 dlrs, before settling
to a steady 1.6050 about 1300 GMT, nearly a cent higher than
the European low of 1.5960.
However, analysts noted that the turnabout in market
sentiment still looks highly vulnerable to political news.
Morning weakness in sterling and the gilt market was
largely attributed to a newspaper opinion poll showing that the
Conservative government's support was slipping.
LONDON, March 26 - The Bank of England said it provided 15
mln stg in assistance to the money market this morning, buying
bank bills in band two at 9-13/16 pct.
Earlier the Bank revised its money market liquidity
forecast from a flat position to a deficit of around 350 mln
stg.
| Market and Economy |
GERMAN NET CURRENCY RESERVES RISE
| West German net currency reserves
rose by 300 mln marks in the third week of March to 82.0
billion, following a fall of 5.4 billion marks in the previous
week, the Bundesbank said.
Non-currency reserves were unchanged at about 2.5 billion
marks, bringing net monetary reserves to 84.5 billion.
| Corporate News |
CURRENCY EXCHANGE LOSS PUSHES MALAYSIA'S DEBT UP
| An exchange loss of 7.6 billion
ringgit in 1986 pushed Malaysia's outstanding external debt up
to 50.99 billion ringgit, from 1985's 42.3 billion, the Central
Bank said in its annual report.
Bank Negara said although Malaysia's net borrowing dropped
in 1986, its external debt rose due to the 30 pct appreciation
of the basket of currencies against which the ringgit is
pegged.
The basket comprises principally the U.S. Dollar, yen,
mark, Swiss franc, French franc, sterling, guilder, Canadian
and Singapore dollars, it added.
Bank Negara said growth in external debt, which declined
progressively from a peak of 58 pct in 1982 to 13.6 pct in
1985, rose by 20.2 pct in 1986.
Malaysia's debt serving ratio of 17.6 pct of its exports in
1986 is within the prudency limit of 20 pct, Bank Negara
Governor Jaafar Hussein told reporters.
| Corporate News |
IWC SAYS EFFECT OF LOWER SUPPORT PRICES LIMITED
| Efforts by governments to control wheat
surpluses by cutting support prices have met with only partial
success, the International Wheat Council (IWC) says in its
latest monthly report.
Faster results could be achieved by a policy of reducing
both price and areas, as employed in the United States, the IWC
says in a survey of support prices in the five main wheat
exporters - Argentina, Australia, Canada, the EC and the U.S.
In some countries, for example Australia and Argentina,
which are highly dependent on wheat shipments for export
income, there may be problems in reducing production.
A policy of cutting wheat production could lead to
unemployment, with job prospects outside agriculture limited.
Alternative crops may offer inferior returns which could then
lead to lost export revenue and balance of payments problems.
The IWC outlines three courses of action open to
governments in wheat exporting countries.
They could continue to support prices in the hope that when
the world economy improves demand for wheat will rise and
surpluses wil be reduced or eliminated.
Alternatively, support could be limited to wheat which
could be easily sold, without needing to be stored for a long
period.
This option may prove to be the most politically
unattractive and would result in many producers abandoning
wheat production, the report said.
The third option would be for governments to distinguish
between the commercial and social aspects of agriculture,
possibly varying support prices according to farm size or
overall production.
The IWC review covers support prices in the major exporting
countries since 1982. At some time during that period all the
producers cut support prices in response to growing surpluses.
These changes did not always result in lower export
subsidies as on several occasions currency fluctuations more
than offset lower prices in the domestic currency.
For example between 1985/86 and 1986/87 the EC intervention
price for bread wheat fell from 209.30 to 179.44 European
currency units (Ecus). It dollar terms, the currency in which
most export transactions are denominated, the intervention
price however rose to 193 dlrs from 168. The high cost of
supporting farm prices has put a strain on national exchequers
and some governments are now searching for ways to cut
expenditure, the report says.
The proportion of world wheat output produced by the five
major exporters declined in the period covered by the survey
from 40 pct in 1982 to 35 pct in 1987. This was partly due to
increased production in China and India.
The period saw an upward trend in yields, although this was
countered in the Argentina, the U.S. And Australia by lower
acreages.
In Argentina a reduction in the sown area of about 20 per
cent was put down to low prices causing producers to switch to
other enterprises, particularly livestock while lower U.S.
Acreages are attributed to official incentives.
| Corporate News |
U.S. TREASURY'S BAKER OPPOSES TAX INCREASE
| U.S. Treasury Secretary James Baker
said that he opposes a Federal tax increase to help reduce the
budget deficit and favors spending cuts instead.
"I don't think it's (a tax increase) is a very good idea
and I'm quite confident that President Reagan doesn't think
it's a very good idea," Baker said in an interview on Cable
News Network's "Moneyline" television program.
He said U.S. taxpayers are taxed at a rate of 19 pct of GNP
which is traditionally where it has been, but the Federal
Government is spending at a rate of 24 pct of GNP. Baker said
spending cuts are clearly the best way to cut budget deficits.
Baker said he opposed a stock transactions tax proposed by
House Speaker Jim Wright, D-Tex, or other special taxes.
"The stock transfer tax would be a particularly unfortunate
approach to take," the Treasury Secretary said. He said the
United States has some of the most efficient capital markets in
the world and new taxes would impair efficiency.
On the international front, Baker said banks must do more
lending to developing countries. He was questioned about this
after the Standard and Poor's Corp downgrading today of the
debt of six major money center bank holding companies, largely
because of their heavy developing nation loan exposure.
Baker said that developing countries must adopt free market
economic policies such as in the United States. He said capital
flows will be required to support the needed reforms in the
economic systems of those countries.
The money must come either through equity or debt and Baker
said that developing nations' "investment regimes do not
support enough equity investment, so you've got to have some
debt there."
Commenting on the U.S. trade deficit, Baker said "I think
you're going to see a 15 to 20 billion dlr reduction this
year."
| Financial Reports |
TREASURY'S BAKER SAYS HE STANDS BY PARIS PACT
| Treasury Secretary James Baker said
he stood by the Paris agreement among leading industrial
nations to foster exchange rate stability around current
levels.
"I would refer you to the Paris agreement which was a
recognition the currencies were within ranges broadly
consistent with economic fundamentals," Baker told The Cable
News Network in an interview.
"We were quite satisfied with the agreement in Paris
otherwise we would not have been a party too it," he said.
Baker also noted the nations agreed in the accord to
"co-operate to foster greater exchange rate stability around
those levels."
He refused to comment directly on the current yen/dollar
rate but said flatly that foreign exchange markets recently
tended "to draw unwarranted inferences from what I say."
Baker was quoted on British Television over the weekend as
saying he has no target for the U.S. currency, a statement that
triggered this week's renewed decline of the dollar.
"I think the Paris agreement represents evidence that
international economic policy co-ordination is alive and well,"
Baker said.
The Treasury Secretary stressed however it was very
important for the main surplus countries to grow as fast as
they could consistent with low inflation to resolve trade
imbalances.
He added that Federal Reserve Board chairman Paul Volcker
has also "been very outspoken" in suggesting main trading
partners grow as fast as they can.
| Financial Reports |
GERMAN ANALYSTS SEE GOLD RISING IN 2ND HALF 1987
| The price of gold bullion is likely
to rise in the second half of the year on increased private
investor demand, West German analysts said.
Gold could rise as high as 500 dlrs per ounce later this
year, said Peter Witte, director of Westdeutsche Landesbank
Girozentrale's trading division, after a presentation by the
U.S. Mint to promote its gold and silver Eagle series coins.
"A lot will depend on oil prices and developments on stock
exchanges," Witte said, adding he saw gold positioned for
further rises once it breaks out above 450 dlrs.
Gold was fixed this morning in London at 411.30 dlrs.
Despite current strong interest in gold mine stocks, many
investors still want to buy physical gold, Witte said.
Interest in gold mine stocks may also wane if stock
exchange rallies under way in many countries start to waver.
Hermann Strohmeyer, vice president of Commerzbank AG's
foreign exchange trading and treasury department, said gold is
poised to rise to 460 to 470 dlrs an ounce in the second half
of this year.
The price is unlikely to fall much below 380 or 390 dlrs an
ounce, and probably will continue in a range between 380 and
430 dlrs in the first half of this year, he said.
| Financial Reports |
CORADIAN CORP <CDIN> 4TH QTR NET
| Shr profit three cts vs loss three cts
Net profit 363,000 vs loss 197,000
Revs 3,761,000 vs 2,666,000
Year
Shr profit one cent vs loss 37 cts
Net profit 129,000 vs loss 1,715,000
Revs 11.4 mln vs 10.9 mln
Avg shrs 10,694,081 vs 4,673,253
| Corporate News |
GULF ESCORTS STILL UNDER DISCUSSION - WEINBERGER
| No action has been taken yet
on the Reagan Adminstration's offer to escort Kuwaiti oil
tankers through the Gulf, but the issue is being discussed,
U.S. Secretary of Defence Caspar Weinberger said.
The offer was made to Kuwait in light of Iran's deployment
of Chinese-built missiles to cover the entrance to the Gulf.
Weinberger told reporters prior to a speech at Texas
Christian University that he did not think Iran and the United
States were moving towards a potential conflict, adding that
the Straits of Hormuz at the mouth of the Gulf were still "free
water."
| Financial Reports |
FIRST INTERSTATE <I> ESTIMATES LOSS ON BRAZIL
| First Interstate Bancorp Chairman
Joseph Pinola said the bank holding company would lose about 16
mln dlrs per year, after taxes, if it had to put its medium and
long-term debt on non-accrual status.
In an interview, he said that could result in about a 4.5
pct decline in annual earnings per share.
Pinola said First Interstate, like other banks, has not yet
decided to put the loans, which Brazil stopped paying interest
on last month, on non-accrual status.
"None of us really wants to injure negotiations that might
be going on," he said.
First Interstate reported to the Securities and Exchange
Commission last week that it has about 339 mln dlrs in
medium-to long-term loans to Brazil.
It said on December 31, 1986 its nonperformind Brazilian
outstanding debt totaled about 4.1 mln dlrs.
First Interstate also has about 168 mln dlrs in short-term
loans or trade lines to Brazil.
Pinola said he believes the solution to the Brazilian debt
crisis will be more political than economic, which he said he
finds, "very disquieting and discomforting."
| Other |
FRENCH UNEMPLOYMENT RISES TO SEASONALLY ADJUSTED 2.65 MLN IN FEBRUARY - OFFICIAL
|
FRENCH UNEMPLOYMENT RISES TO SEASONALLY ADJUSTED 2.65 MLN IN FEBRUARY - OFFICIAL
| Commodities and Trade |
MICKELBERRY CORP <MBC> 4TH QTR NET
| Shr profit 61 cts vs loss 45 cts
Net profit 3,568,000 vs loss 2,598,000
Revs 34.6 mln vs 31.6 mln
Avg shrs 5,861,000 vs 5,776,000
Year
Shr profit 56 cts vs loss 32 cts
Net profit 3,374,000 vs loss 1,759,000
Revs 132.0 mln vs 131.6 mln
NOTE: 1985 quarter net includes 665,000 dlr tax credit.
| Corporate News |
MICKELBERRY <MBC> COMPLETES SALE OF UNIT
| Mickelberry Corp said it has completed
the previously-announced sale of the 51 pct of its C and W
Group subsidiary that it had retained to N W Ayer Inc for
undisclosed terms.
Ayer bought the other 49 pct next year.
Mickelberry said it will report a gain on the transaction.
| Commodities and Trade |
F.W. WOOLWORTH CO 4TH QTR SHR 1.78 DLRS VS 1.64 DLRS
|
F.W. WOOLWORTH CO 4TH QTR SHR 1.78 DLRS VS 1.64 DLRS
| Corporate News |
FLUOROCARBON CO <FCBN> 4TH QTR JAN 31 NET
| Shr 26 cts vs 24 cts
Net 1,144,000 vs 1,063,000
Sales 23.2 mln vs 24.8 mln
Year
Shr 93 cts vs 1.40 dlrs
Net 4,046,000 vs 6,111,000
Sales 97.8 mln vs 104.0 mln
NOTE: Prior year net includes gain 286,000 dlrs from
discontinued operations in year and loss 375,000 in quarter and
gain 260,000 dlrs in year from disposal of discontinued.
| Corporate News |
FRENCH FEBRUARY UNEMPLOYMENT HITS RECORD 2.65 MLN
| French unemployment rose to a record
seasonally adjusted 2.65 mln in February from 2.61 mln in
January and 2.57 mln at the end of last year, the Labour
Ministry said.
The rise took the percentage of the workforce out of a job
to 11.0 pct last month from 10.9 pct in January and 10.7 pct at
the end of 1986.
In unadjusted terms unemployment fell by around 30,000 last
month to 2.70 mln.
| Corporate News |
PHILIPS ELECTRICAL SELLS STAKE IN UNIDARE
| <Philips Electrical (Ireland) Ltd> has
arranged the sale of the one mln ordinary shares it holds in
its subsidiary <Unidare Aluminium Ltd>, Unidare said.
The placing has been arranged through <Allied Irish
Investment Bank Plc> at an ex-dividend price of 371 Irish pence
per share.
| Financial Reports |
AMERICAN MEDICAL INTERNATIONAL INC 2ND QTR SHR PROFIT 32 CTS VS LOSS 95 CTS
|
AMERICAN MEDICAL INTERNATIONAL INC 2ND QTR SHR PROFIT 32 CTS VS LOSS 95 CTS
| Financial Reports |
BAKER SEES 15 TO 20 BILLION DLR DROP IN TRADE GAP
| Treasury Secretary James Baker said
he expected the U.S. Trade deficit to fall by 15 billion to 20
billion dlrs in 1987.
Commenting on the deficit during an interview on Cable News
Network, Baker said "I think you're going to see a 15 to 20
billion dlr reduction this year." The deficit was 170 billion
dlrs in 1986.
Baker noted that the benefits of a weaker currency take 12
to 18 months to affect the trade balance, and said it is now 18
months since the Plaza agreement to lower the dollar's value.
| Corporate News |
AMERICAN MEDICAL INTERNATIONAL INC <AMI> NET
| 2nd qtr
Shr profit 32 cts vs loss 95 cts
Net profit 28.0 mln vs loss 82.2 mln
Revs 950.2 mln vs 862.0 mln
1st half
Shr profit 65 cts vs loss 62 cts
Net profit 56.6 mln vs loss 53.5 mln
Revs 1.88 billion vs 1.67 billion
Avg shrs 92.2 mln vs 86.7 mln
NOTE: Period ended February 28.
Prior year net both periods includes pretax asset
writedowns of 114.6 mln dlrs and additions to reserves of 60.0
mln dlrs.
Prior year net includes tax credits of 53.7 mln dlrs in
quarter and 32.9 mln dlrs in half.
| Corporate News |
HEINZ INTERESTED IN BUYING GUINNESS BREWING
| H.J. Heinz <HNZ.N> chairman Tony O'Reilly
would be interested in buying Guinness PLC <GUIN.L>'s brewery
division if it were for sale, a spokesman said.
The spokesman, reacting to Irish and British press reports,
said "He continues to be interested were the group to offer the
brewery side of Guinness for sale. But he has not put together
a consortium, nor has he been buying shares."
He was quoted by the Irish magazine Business and Finance as
saying he would be interested if it came on the market and that
he had the support of two international banks if he decided
such a purchase might be worthwhile.
In the magazine article, he suggested that if brewing
profits were calculated to be in the region of 80 mln punts,
the asking price would not be higher than 800 mln punts.
"A multiple of ten times earnings would be the top whack for
the brewing division in the current Guinness situation," he
said.
"This would mean an expensive exercise, right on the edge,
but not impossible," he added.
The deal would mean buying the Dublin, London, Nigerian and
Malaysian breweries because "It could only be sold as an
integral unit if it was going to be sold at all," O'Reilly said.
| Financial Reports |
U.K. VISIBLE TRADE DEFICIT NARROWS IN FEBRUARY
| Britain's visible trade deficit narrowed
to a seasonally adjusted provisional 224 mln stg in February
from 527 mln in January, The Trade and Industry Department
said.
The current account balance of payments in February showed
a seasonally adjusted provisional surplus of 376 mln stg
compared with a surplus of 73 mln in January.
Invisibles in February were put provisionally at a 600 mln
surplus, the same as in January.
Seasonally adjusted, imports rose in February to 7.16
billion stg from 6.73 billion in January. Exports rose to a
record 6.93 billion last month from 6.20 billion in January.
Trade Department officials said the improvement in
Britain's current account contrasted with most private
forecasts and they attributed much of the strength to imports
rising less quickly in February than might otherwise have been
expected.
The Department said exceptionally cold weather in January
reduced exports that month and that there had been an element
of catching up in the February figures.
The seasonally adjusted volume index, base 1980, a guide to
underlying non-oil trade, showed exports rising to 131.0 from
114.6 in January and imports rising to 142.2 from 136.5.
The value of British oil exports in February rose to 751
mln stg from 723 mln in Jnauary while oil imports rose to 425
mln from 352 mln.
| Financial Reports |
FRENCH RESERVES FALL ON DEBT REPAYMENT
| French reserves fell in the week ended
March 19 following repayment of the bulk of the debt contracted
during January with the European Monetary Cooperation Fund, the
Bank of France said in its weekly statement.
The repayment of capital and interest on this loan, taken
out during the strong pressure on the franc which preceded the
European Monetary System (EMS) realignment and the subsequent
Group of Five meeting in Paris, took place on March 13.
It comprised the repayment of 11.25 billion francs' worth
of European Currency Units (ECUs), 9.72 billion francs' worth
of foreign currency and 1.72 billion francs' worth of special
drawing rights (SDRs), the Bank said.
As a result foreign currency reserves fell to 114.69
billion francs on March 19 from 120.82 billion on March 12,
while ECU reserves fell to 62.02 billion francs from 73.23
billion.
Gold reserves remained stable at 218.32 billion francs.
| Market and Economy |
FOOTE MINERAL CO IN LETTER OF INTENT TO MERGE INTO RIO TINTO-ZINC
|
FOOTE MINERAL CO IN LETTER OF INTENT TO MERGE INTO RIO TINTO-ZINC
| Corporate News |
German March cost of living 0.2 pct below year ago (Feb 0.5 pct below) - official
|
German March cost of living 0.2 pct below year ago (Feb 0.5 pct below) - official
| Corporate News |
<TRIZEC CORP LTD> 1ST QTR JAN 31 NET
| Shr 12 cts vs 10 cts
Net 19.6 mln vs 17.6 mln
Revs 276 mln vs 170.4 mln
Avg shrs 85.3 mln vs 84.8 mln
NOTE: Company owns 65 pct of <Bramalea Ltd>.
| Industrial and Sector News |
BOSTON EDISON CO <BSE> REGULAR DIVIDEND
| Qtly div 44.5 cts vs 44.5 cts in prior qtr
Payable May one
Record April 10
| Commodities and Trade |
GERMAN COST OF LIVING FALLS IN MARCH ON YEAR-AGO
| The cost of living in West Germany
was provisionally unchanged in March compared with February but
fell 0.2 pct against March 1986, the Federal Statistics Office
said.
In February the cost of living rose 0.1 pct from January
but fell 0.5 pct compared with February 1986.
The office said final figures for March will be released in
about 10 days.
| Financial Reports |
EQUATORIAL COMMUNICATIONS <EQUA> TO HAVE LOSSES
| Equatorial Communications
Co said it expects to report losses of about 57 mln dlrs for
the fourth quarter and 68 mln dlrs for the full year 1986 on
revenues of about 10 mln dlrs for the quarter and 52 mln dlrs
for the year.
Equatorial said the losses will include a charge of about
45 mln dlrs from costs associated with the restructuring of its
business, including adjustments to reflect the market value of
transponders owned and leased by Equatorial and other reserves
for inventory, receivables and excess facilities.
Equatorial said the fourth quarter operating results will
also include restructuring costs of about 5,500,000 dlrs, in
addition to the 45 mln dlr charge.
Equitorial also said that as of March One it is operating
in technical default under its lease of transponders on the
Galaxy III satellite due to its inabiliuty to maintain
agreed-upon financial ratios. It said it is in talks with the
lessors in an attempt to restructure lease obligations.
Further, Equitorial said it is in default of two other
oblitations in connection with the purchase or lease of
transponders as a result of cross-default provisions.
Equatorial said it has signed a memorandum of understanding
for Contel Corp <CTC> to purchase 10 mln dlrs of Equatorial
master earth stations, micro earth stations and associated
equipment and loan Equatorial six mln dlrs over a six-month
period for repayment starting in December 1988.
The company said Conteol, under the agreement, would assume
a portion of Equatorial's rights and obligations under the
Galaxy III transponder lease with <Burnham Leasing> on the
occurrence of certain events.
Equatorial said it would grant Contel an option to buy
about 3,600,000 common shares at 3.25 dlrs each.
Equatorial said its understandings with Contel are subject
to Equatorial's ability to restructure a significant portion of
its obligations and to obtain concessions from lenders and
lessors, in particular under its Galaxy III transponder lease.
It said it hopes to finalize a Contel agreement by April 15.
Equatorial in 1985 earned 1,807,000 dlrs after a 3,197,000
dlr gain from early debt retirement on revenues of 56.1 mln
dlrs. For the first nine months of 1986, the company lost
9,476,000 dlrs on revenues of 45.4 mln dlrs, compared with a
1,784,000 dlr profit after the early retirement gain on
revenues of 38.5 mln dlrs.
| Market and Economy |
FOOTE MINERAL <FTE> TO MERGE INTO RIO TINTO
| Foote Mineral Co said it has signed
a letter of intent to merge into <Rio Tinto-Zinc Corp PLC> for
cash.
The company said at the time of the acquisition, its assets
will include only lithium and ferrosilicon operations. Foote,
which is 83 pct owned by Newmont Mining Corp <NEM>, has signed
a letter of intent to sell its Cambridge operations and said it
is in talks on the sale of its manganese operations with
several companies. Foote said Newmont has informally indicated
it would vote in favor of the Rio Tinto proposal.
Foote said terms of the agreement, including price for the
proposed cash transaction, have not been released because they
are subject to a continuing due diligence investigation.
The company said a definitive merger agreement is expected
to be negotiated within six weeks and shareholders are expected
to vote on the deal at a meeting expected to be held in June or
July.
| Corporate News |
U.S. FIRST TIME JOBLESS CLAIMS ROSE IN WEEK
| New applications for unemployment
insurance benefits rose to a seasonally adjusted 341,000 in the
week ended March 14 from 340,000 in the prior week, the Labor
Department said.
The number of people actually receiving benefits under
regular state programs totaled 2,454,000 in the week ended
March 7, the latest period for which that figure was available.
That was up from 2,507,000 the previous week.
| Financial Reports |
HONG KONG FEBRUARY TRADE SWINGS INTO DEFICIT
| Hong Kong recorded a 3.51 billion
H.K. Dlr deficit in February after a 2.54 billion dlr surplus
in January as imports climbed and exports slid, the Census and
Statistics Department said.
The deficit compared with a deficit of 1.76 billion dlrs in
February 1986.
Imports rose to 24.12 billion dlrs, up 2.6 pct from
January's 23.52 billion dlrs and 42 pct above the 16.98 billion
dlrs recorded in February 1986.
Total exports for the month fell 20.9 pct to 20.61 billion
dlrs from 26.06 billion in January.
February exports were still 35.4 pct above the 15.22
billion dlrs recorded in the same month last year.
Re-exports, the territory's traditional entrepot trade,
outpaced domestically produced exports for the first time since
March 1985.
Re-exports fell 11.6 pct to 10.62 billion dlrs from 12.0
billion dlrs in January but were 54 pct above February 1986's
6.88 billion dlrs. Domestic exports slid 28.9 pct to 9.99
billion dlrs from January's 14.05 billion dlrs but were up 19.7
pct over the 8.35 billion dlrs recorded in February 1986.
| Financial Reports |
BEST PRODUCTS CO INC 4TH QTR SHR 1.44 DLRS VS 83 CTS
|
BEST PRODUCTS CO INC 4TH QTR SHR 1.44 DLRS VS 83 CTS
| Financial Reports |
BEST PRODUCTS CO <BES> 4TH QTR JAN 31 NET
| Shr profit 1.44 dlrs vs profit 83 cts
Net profit 39.0 mln vs profit 22.5 mln
Sales 816.1 mln vs 865.3 mln
Year
Shr loss 95 cts vs profit eight cts
Net loss 25.6 mln vs profit 2,223,000
Sales 2,142,118 vs 2,234,768
NOTE: Current year net both periods includes prtax
provisions for restructuring operations of 4,868,000 dlrs in
quarter and 38.1 mln dlrs in year.
Latest year net includes 1,825,000 dlr tax credit and
2,600,000 dlr posttax loss from debt extinguishment.
| Financial Reports |
TRANSAMERICA <TA> TO HAVE AUSTRALIAN SALE GAIN
| Transamerica Corp said it will have
an after-tax gain of about 10 mln U.S. dlrs on the sale of its
Occidental Life Insurance Co of Australia Ltd affiliate to
<Pratt and Co Financial Services Pty Ltd> of Melbourne for 105
mln Australian dlrs.
The sale was announced earlier today in Australia. Proceeds
will be used to enhance the growth of North American operations
of its Transamerica Occidental Life subsidiary, the company
said.
| Other |
BANK OF SPAIN PROVIDES YEAR RECORD ASSISTANCE FUNDS
| The Bank of Spain provided 1,145 billion
pesetas in assistance funds which bankers said reflected fears
of fresh increases in overnight rates.
The daily auction was the biggest of the year and comes
after the previous record set last June 6 of 1,240 billion
pesetas.
A spokesman for one of Spain top five banks said higher
overnight call money rates were expected in the short term in
view of disappointing money supply figures for February.
The M-4 money supply, measured as liquid assets in public
hands, rose 16.7 pct last month against 8.1 pct in January and
compared with this year's eight pct target. Money supply growth
was 11.4 pct last year.
The central bank on Tuesday raised overnight rates by a
quarter of a percentage point to 14 pct on demand for 746
billion pesetas. Rates stood at 12.1 pct at the start of the
year and have been increased to drain liquidity on rising
demand for funds. "The policy is proving counter-productive and
rates will have to come down in the long-term," the bank
spokesman said in reply to Reuters enquiries.
He said higher rates were fuelling an influx of short-term
speculative capital from abroad.
"At least 800 mln dlrs of current excess liquidity in the
system is convertible pesetas from West Germany and other
countries with much lower rates," he said.
| Corporate News |
ETHYL CORP <EY> UNITS COMPLETE ACQUISITON
| Ethyl Corp said its subsidiaries
completed the acquisiton of Nelson Research and Development Co
<NELR>.
The merger was approved following completion on Jan 27 of a
tender offer valued at approximately 55 mln dlrs, the company
said.
It added that Nelson, based in Irvine, Calif., will be
operated as a wholly-owned subsidiary of Ethyl.
Nelson designs and develops new drugs, Ethyl said.
| Financial Reports |
BRITISH POLITICIANS URGE JAPAN TRADE SANCTIONS
| One hundred members of Britain's ruling
Conservative Party have signed a motion calling for trade
sanctions against Japan to force Tokyo to open its domestic
market to British goods.
The government announced last week that Japan had a 5.9
billion dlr trade surplus with Britain in 1986.
The Department of Trade and Industry said the government
was drawing up contingency plans to force Japan into opening up
its domestic markets but a spokesman said such moves were very
much a last resort.
Ideas being considered included blocking Japanese companies
from trading in Britain and revoking licenses of Japanese
operations in the London financial district.
| Financial Reports |
U.K. TRADE FIGURES BUOY HOPES OF INTEREST RATE CUT
| The release of U.K. February trade data
showing that the current account surplus was a provisional 376
mln stg, up from a 73 mln surplus in January, has boosted hopes
of an early cut in interest rates, analysts said.
Market forecasts had been for a worse outcome, with
expectations of a deficit in visible trade averaging about 750
mln stg, against the official figure of 224 mln stg, sharply
narrower than January's 527 mln deficit.
"The figures are unreservedly good," Chase Manhattan
Securities economist Andrew Wroblewski said.
Sterling rebounded on the trade figures, reversing a weaker
morning trend, to stand at 72.1 pct of its trade weighted index
against a basket of currencies at midday, unchanged from
yesterday's close but 0.3 points above the 1100 GMT level.
The market had feared that a deteriorating non-oil trade
pattern would undermine international support for sterling,
which has been the motor behind the recent fall in U.K.
Interest rates. Money market sources said the market had begun
to doubt that a widely expected drop in bank base lending rates
to 9.5 pct from the present 10.0 pct was really on the cards.
But sentiment now looks to have turned about again.
There now looks to be no danger that the Chancellor of the
Exchequer Nigel Lawson's forecast of a 1987 current account
deficit of 2.5 billion stg will be exceeded, said Wroblewski.
Seasonally adjusted figures showed that imports rose in
February to 7.16 billion stg from 6.73 billion in January.
Exports rose to a record 6.93 billion from 6.20 billion.
However, Chris Tinker, U.K. Analyst at brokers Phillips and
Drew said that the faster rise in exports than imports would
prove partly aberrational in coming months. He forecast the
Chancellor's Budget tax cuts would increase consumer expediture
on imported goods.
However, Ian Harwood, economist at Warburg Securities, said
his firm was sharply revising its 1987 current account deficit
forecast in the light of the latest data, cutting one billion
stg off the expected full year total to about 1.75 billion stg.
He said news of strong growth in exports of non-oil goods
confirmed recent bullish surveys among members of the
Confederation of British Industry.
The growth in imports appears to be flattening, even if
January's bad weather had curbed consumer spending on overseas
goods and import-intensive stock building among manufactureres,
Harwood said.
U.K. Government bonds, or gilts, surged by more than 1/2
point on the better-than-expected news, as earlier worries
about the figures evaporated.
Sterling peaked at a high of 1.6075 dlrs, before settling
to a steady 1.6050 dlrs about 1300 GMT, nearly a cent higher
than the European low of 1.5960.
However, analysts noted that the turnabout in market
sentiment still looks highly vulnerable to political news.
Morning weakness in sterling and the gilt market was
largely attributed to a newspaper opinion poll showing that the
Conservative government's support was slipping.
The Marplan poll, published in "Today," showed Conservative
support had fallen to 36 pct, from 38 pct last month, while the
Alliance of Liberals and Social Democrats had rallied to 31
pct, from 21 pct, to run neck and neck with the Labour Party,
whose own support fell from 38 pct.
The poll was taken after the Budget, which was greeted
enthusiastically by financial markets but seems to have left
the voters indifferent, political observers said.
Another regular poll is due tomorrow, and eonomists warn
that today's improved sentiment could be dented if support for
Prime Minister Margaret Thatcher slips again.
This upsetting of the markets' political perceptions, which
are all but discounting a Conservative victory in the upcoming
general election, made them more sensitive to the trade data,
Harwood said. "The news did come as a very, very substantial
relief," he said.
However, on the interest rate front, economists caution
that Lawson might be wary of leaving sterling vulnerable by
encouraging another base rate fall. They noted Lawson had
already got an inflation-reducing cut in mortgage rates in
response to lower base rates, so domestic political reasons for
lower rates have been curtailed.
| Commodities and Trade |
S. KOREA MAY BUY U.S. OIL TO AID TRADE BALANCE
| South Korea is studying a plan to buy
more coal from the United States and to start importing Alaskan
crude oil to help reduce its huge trade surplus with the United
States, Energy Ministry officials said today.
They said the plan would dominate discussions at two-day
energy talks between officials of the two countries in
Washington from April 1.
Huh Sun-yong, who will attend the talks with three other
Seoul government officials, told Reuters that Seoul was
"positively considering buying a certain amount of Alaskan oil
beginning this year as part of our government's overall plan to
reduce a widening trade gap between the two countries."
Huh said however that South Korean refineries considered
the Alaskan oil economically uncompetitive.
| Financial Reports |
VIACOM INTERNATIONAL INC GETS ANOTHER NEW NATIONAL AMUSEMENTS BID
|
VIACOM INTERNATIONAL INC GETS ANOTHER NEW NATIONAL AMUSEMENTS BID
| Corporate News |
BP <BP> TO HOLD NEW YORK PRESS CONFERENCE
| British Petroleum Co PLC said it has
scheduled a New York press conference for 1300 EST/1800 gmt
today at which senior management will discuss the company's
proposed acquisition of the 45 pct of Standard Oil Co <SRD>
that it does not already own for 70 dlrs per share.
The offer is worth about 7.4 billion dlrs.
| Financial Reports |
U.S. TREASURY'S MULFORD REAFFIRMS G-6 PACT TO FOSTER CURRENCY STABILITY AROUND CURRENT LEVELS
|
U.S. TREASURY'S MULFORD REAFFIRMS G-6 PACT TO FOSTER CURRENCY STABILITY AROUND CURRENT LEVELS
| Financial Reports |
TREASURY'S MULFORD SAYS G-6 HAS NO CURRENCY TARGET ZONES, RANGES
|
TREASURY'S MULFORD SAYS G-6 HAS NO CURRENCY TARGET ZONES, RANGES
| Commodities and Trade |
GERMAN ANALYSTS SEE GOLD FIRMING LATER THIS YEAR
| The price of gold bullion is likely
to rise in the second half of the year on increased private
investor demand, West German analysts said.
Gold could rise as high as 500 dlrs per ounce later this
year, said Peter Witte, director of Westdeutsche Landesbank
Girozentrale's trading division, after a presentation by the
U.S. Mint to promote its gold and silver Eagle series coins.
"A lot will depend on oil prices and developments on stock
exchanges," Witte said, adding he saw gold positioned for
further rises once it breaks out above 450 dlrs.
Gold was fixed this morning in London at 411.30 dlrs.
Despite current strong interest in gold mine stocks, many
investors still want to buy physical gold, Witte said.
Interest in gold mine stocks may also wane if stock
exchange rallies under way in many countries start to waver.
Hermann Strohmeyer, vice president of Commerzbank AG's
foreign exchange trading and treasury department, said gold is
poised to rise to 460 to 470 dlrs an ounce in the second half
of this year.
The price is unlikely to fall much below 380 or 390 dlrs an
ounce, and probably will continue in a range between 380 and
430 dlrs in the first half of this year, he said.
| Other |
U.K. MONEY MARKET RECEIVES 226 MLN STG ASSISTANCE
| The Bank of England said it operated in
the money market this afternoon, buying 226 mln stg in bills.
In band one, the central bank bought 37 mln stg treasury
bills and 72 mln stg bank bills at 9-7/8 pct together with 117
mln stg band two bank bills at 9-13/16 pct.
This brings total money market help so far today to 241 mln
stg and compares with the Bank's revised estimate of a 350 mln
stg shortfall.
| Commodities and Trade |
BANK OF FRANCE LEAVES MONEY MARKET INTERVENTION RATE UNCHANGED AT 7-3/4 PCT - OFFICIAL
|
BANK OF FRANCE LEAVES MONEY MARKET INTERVENTION RATE UNCHANGED AT 7-3/4 PCT - OFFICIAL
| Corporate News |
MCO <MCO>, MAXXAM <MXM> HOLDERS APPROVE MERGER
| MCO Holdings Inc said its
shareholders and those of MAXXAM Group Inc have approved the
proposed merger of the two companies.
MCO said one MAXXAM shareholder has filed an objection to
the proposed settlement of shareholder actions related to the
merger in the Delaware Court of Chancery. A hearing on the
settlement proposal is scheduled for March 27... The merger is
subject to court approval of the settlement as well as to other
conditions.
| Financial Reports |
F.W. WOOLWORTH CO <Z> 4TH QTR JAN 31 NET
| Shr 1.78 dlrs vs 1.64 dlrs
Net 117 mln vs 106 mln
Sales 2.02 billion vs 1.85 billion
Avg shrs 65.6 mln vs 63.9 mln
Year
Shr 3.25 dlrs vs 2.75 dlrs
Net 214 mln vs 177 mln
Sales 6.50 billion vs 5.96 billion
Avg shrs 65.6 mln vs 63.9 mln
NOTE: Share data restated to reflect two for one stock
split in May 1986
| Commodities and Trade |
PRICE CO <PCLB> 2ND QTR MARCH 15 NET
| Shr 34 cts vs 29 cts
Net 16.7 mln vs 13.3 mln
Sales 678.7 mln vs 531.0 mln
Avg shrs 48.9 mln vs 45.8 mln
1st half
Shr 81 cts vs 69 cts
Net 39.5 mln vs 31.7 mln
Sales 1.71 billion vs 1.35 billion
Avg shrs 48.9 mln vs 45.8 mln
NOTE: Twelve and 28-week periods.
| Financial Reports |
CAROLIAN SYSTEMS SEES LOWER FISCAL 1987 PROFIT
| <Carolian Systems International Inc>
said it anticipates profit for fiscal 1987 ending June 30 will
be lower than fiscal 1986 earnings of 410,000 dlrs, despite an
expected revenue increase of 37 pct to more than 3.5 mln dlrs.
After an extraordinary expense associated with the
December, 1986 withdrawal of a planned common share offering,
"we expect to be modestly profitable for the year, but below the
410,000 dlrs earned in fiscal 1986," the company said.
Carolian previously reported fiscal six month profit of
12,933 dlrs, excluding an extraordinary loss of 17,210 dlrs,
compared to earnings of 69,829 dlrs in the prior year.
The company said it anticipated fiscal 1987 earnings to be
lower due to withdrawal of its share offering, computer
equipment shipment delays and costs associated with sales staff
expansion.
A strengthening Canadian dollar against U.S. currency will
also adversely affect revenues and earnings, since 85 pct of
revenues are generated by sales outside Canada, said Carolian,
a leading supplier of utility software for Hewlett-Packard
computer systems.
| Corporate News |
BANK OF FRANCE BUYS DOLLARS, SELLS YEN - DEALERS
|
BANK OF FRANCE BUYS DOLLARS, SELLS YEN - DEALERS
| Commodities and Trade |
U.S TREASURY'S MULFORD REAFFIRMS G-6 AGREEMENT
| Treasury Assistant Secretary David
Mulford reaffirmed U.S. backing for the Paris Agreement among
six industrial nations to cooperate closely to foster exchange
rate stability around current levels.
In testimony prepared for delivery before a Senate banking
subcommittee, Mulford said there was broad recognition in Paris
that "further substantial exchange rate shifts could damage
growth and adjustment prospects."
But he also said while there are clear understandings among
the countries regarding cooperation, "We have refrained from
establishing a system of target zones or ranges."
Mulford also said the six nations have not spelled out the
way in which they intend to deal with possible market
developments.
He said governments must retain flexibility in dealing with
exchange market pressures and efforts to establish rigid
exchange rate objectives "or to specify too precisely the goals
of intervention" would hurt official attempts to react to
market pressures, he said.
Accordingly, Mulford said setting specific currency
objectives and intervention to achieve those objectives would
be counterproductive.
Commenting on the trade deficit, Mulford reiterated the
Treasury position that the current account deficit will decline
from 148 billion dlrs last year to around 130 billion dlrs this
year, due to the exchange rate adjustments of the past 18
months.
But he added trade imbalances would also be corrected by
commitments from West Germany and Japan to stimulate their
economies and by U.S. efforts to cut the budget deficit and
enhance U.S. competitiveness.
He also said some newly industrialized countries should let
their currencies appreciate.
| Financial Reports |
FRENCH FREE MARKET CEREAL EXPORT BIDS DETAILED
| French operators have requested licences
to export 675,500 tonnes of maize, 245,000 tonnes of barley,
22,000 tonnes of soft bread wheat and 20,000 tonnes of feed
wheat at today's European Community tender, traders said.
Rebates requested ranged from 127.75 to 132.50 European
Currency Units a tonne for maize, 136.00 to 141.00 Ecus a tonne
for barley and 134.25 to 141.81 Ecus for bread wheat, while
rebates requested for feed wheat were 137.65 Ecus, they said.
| Financial Reports |
U.S. GOLD EAGLE SALES PROJECTED AT 3.1 MLN OUNCES
| American Eagle gold bullion coin
sales are projected at 3.1 mln troy ounces in their first year
on the market, well above the target of 2.2 mln, Donna Pope,
director of the U.S. Mint, told journalists.
World sales, which began on October 20, 1986, reached 2.193
mln ounces in less than six months of sales. This made it world
market leader with a share of 37 pct in 1986, Pope said.
Pope said that in volume terms, nearly half of all gold
Eagle sales were within North America, roughly 40 pct were in
Europe and about eight pct in Asia.
She said despite introduction of several new gold bullion
coins on the market recently, the Mint is aiming to preserve
the Eagle's strong market share with extensive publicity.
The Mint uses mainly newly mined U.S. Gold for the coins,
as long as this is available at market prices. The remaining
gold is taken either from U.S. Treasury stocks, or from the
open market, Pope said.
Gold analysts said the Eagle is facing competition here
from the Canadian Maple Leaf, and also to a lesser extent from
the South African Krugerrand. Some estimated the Maple Leaf's
West German market share at 60 pct.
The figures may be distorted, as many German investors buy
gold bullion in Switzerland or Luxembourg to escape the 14 pct
value-added tax imposed here. Including the tax, the one-ounce
coins traded today at 906 marks, they said.
Competition may also come from new gold coins, including
Belgium's ECU, which began sales today. Britain and Australia
also have plans to mint gold bullion coins, the analysts said.
| Commodities and Trade |
NEOAX <NOAX> TO SELL NOVATRONICS FOR 20 MLN DLRS
| Neoax Inc said it has
agreed to sell the assets and business of its Novatronics
Division to Veeco Instruments Inc <VEE> for 20 mln dlrs.
Neoax said it expects a gain of about nine mln dlrs on the
transaction which is expected to becomleted during the second
quarter, adding the gain will be sheltered by its tax loss
carryforwards.
Novatronics makes military-specification power supplies and
avionics components for various prime government defense
contractors. It had 1986 sales of 21 mln dlrs.
| Corporate News |
PONCE FEDERAL BANK FSB <PFBS> RAISES DIVIDEND
| Qtly div nine cts vs 7.5 cts in prior qtr
Payable April 15
Record March 31
| Financial Reports |
FOOTHILL GROUP <FGI> SEES BETTER FIRST QUARTER
| Don Gevirtz, chairman of The Foothill
Group Inc, told Reuters the company's first quarter results
will be up sharply over last year's eight cents a share.
"First quarter results will be dramatically better," he
said following a presentation to analysts. He cited a sharp
drop in non-earning assets, healthy asset growth and lower
expenses.
He declined to predict specific results for the first
quarter. In the 1986 first quarter, the commerical finance
company earned 606,000 dlrs, or eight cts per share.
Gevirtz also declined to predict full year results, but
said, "We expect an excellent year." In 1986 Foothill earned
3,239,000 dlrs, or 41 cts per share.
Analysts expect Foothill to record earnings of 65 cts to 85
cts a share in 1987.
During the presentation Gevirtz said Foothill has reduced
to less than five pct the company's level of non-performing
assets, which was as high as eight pct in previous years.
David Hilton, chief financial officer, said the company's
general and administrative expenses in 1987 will be reduced to
about 3.0 to 3.5 pct of average assets from 4.3 pct in 1986.
The company had average assets of 399.8 mln dlrs from
continuing operations and 29.8 mln dlrs from discontinued
operations in 1986, according to its annual report.
| Commodities and Trade |
BANK OF FRANCE BUYS DOLLARS, SELLS YEN - DEALERS
| The Bank of France intervened on the
market to buy dollars and sell yen to support the U.S.
Currency, dealers said.
A major French bank said it acted for the central bank in
buying between five and 15 mln dlrs against yen.
A dealer at another bank said his bank had been asked to
publicise the intervention, to send a clear signal to the
markets that central banks were acting in concert to maintain
the exchange rates agreed to be appropriate at last month's
meeting of the Group of Five and Canada in Paris.
The dollar was being quoted at 6.0950/70 francs in early
afternoon dealings after a fix of 6.09425 francs.
The major French bank said it sold yen at a rate of 149.28
against the dollar.
The U.S. Currency was subsequently being quoted at
149.25/35.
The Bank of Japan was reported in the market overnight to
bolster the credibility of the Paris accord following several
days of pressure against the dollar.
Pressure developed after U.S. Treasury Secretary James
Baker repeated earlier statements that the Reagan
administration had no targets for the dollar, apparently
undermining the assumption that the agreement in Paris had
fixed broad fluctuation ranges for major currencies.
Baker later said his remark had been misinterpreted.
| Commodities and Trade |
STANDARD <SRD> REFERRING BP <BP> BID TO GROUP
| Standard Oil Co said British
Petroleum Co Plc's proposed offer of 70 dlrs a share for the 45
pct of Standard's stock not held by BP is being referred to a
special committee of the company's board.
This committee, which is composed of the independent,
non-exective directors of the company, was formed in April 1986
for the purpose of monitoring the relationship between Standard
Oil and BP.
Standard said the group will consider BP's offer in due
course noting the committee has retained the First Boston Corp
and Cravath Swaine and Moore as advisers.
| Corporate News |
ANCHOR GLASS <AGLS> NOW SEES HIGHER 1ST QTR NET
| Anchor Glass Container Corp said
first quarter net income is now expected to exceed the 3.1 mln
dlrs earned before extraordinary items in the year earlier
quarter.
Previously, the company had said first quarter results
would likely be lower than for the 1986 period due to
production disruptions caused by the large number of production
line changes scheduled during the first quarter, its statement
pointed out.
While the disruptive effects of the production line changes
had occurred in line with expectations, Anchor Glass said,
first quarter operating results were helped by lower than
anticipated operating costs and improved margins on sales as a
result of a more favorable product mix.
The company said its income performance for the full year
remains very good.
It also said Anchor Hocking Corp <ARH> has converted the
entire principal balance of its Anchor Glass convertible
subordinated note to 576,694 Anchor Glass common shares.
Anchor Glass said the conversion decreased its total debt
and increased stockholders' equity by about 9.4 mln dlrs and
increased common shares outstanding to 13,902,716.
It said the conversion will also reduce its annualized net
interest expense by about 1.1 mln dlrs, or 600,000 dlrs after
taxes.
| Other |
MACNEAL-SCHWENDLER CORP <MNS> RAISES PAYOUT
| Qtly div five cts vs 2-1/2 cts prior
Pay June 10
Record May 29
NOTE: Prior payment adjusted for two-for-one stock split
declared recently.
| Commodities and Trade |
VIACOM INTERNATIONAL INC <VIA> SETS QUARTERLY
| Qtly div seven cts vs seven cts prior
Pay May Eight
Record April 17
| Corporate News |
BP OIL RAISES OPERATING PROFIT
| <BP Oil Ltd>, the U.K. Marketing and
refining arm of British Petroleum Co Plc <BP.L>, raised its
pretax operating profit on a replacement cost basis to 182 mln
stg in calendar 1986, compared with 66 mln stg in 1985.
Sales and operating revenue fell to 3.1 billion stg from
4.2 billion on a replacement cost basis. Historical cost
operating profit was 61 mln stg, up from 16 mln.
BP Oil said 1985 profits had been depressed by exceptional
items. Its profit figures were stated before interest charges.
Chief executive David Kendall said improved results
mirrored benefits of a restructuring program undertaken in
recent years.
However, he warned future financial pressure on the
industry will be severe.
"The U.K. Oil marketing and refining industry will need to
invest larger sums - probably around 500 mln stg a year - for a
good many years," he said in a statement.
| Industrial and Sector News |
U.K. MONEY MARKET GETS 25 MLN STG LATE HELP
| The Bank of England said it provided
about 25 mln stg in late help to the money market, bringing the
total assistance today to 266 mln stg.
This compares with the bank's revised estimate of a 350 mln
stg money market shortfall.
| Other |
PHLCORP <PHX> HAS BREAKEVEN RESULTS
| PHLCORP Inc said for November 14
through December 31, its first reporting period after emerging
from reorganization proceedings, it earned 86,000 dlrs on
revenues of 47 mln dlrs, excluding 2,300,000 dlrs in gains on
the sale of real estate and 800,000 dlrs in tax credits.
The company is the successor to Baldwin-United Corp.
| Corporate News |
FOOTE MINERAL TO MERGE INTO RIO TINTO
| Foote Mineral Co said it signed a
letter of intent to merge into Rio Tinto-Zinc Corp PLC for
cash.
Foote, 83 pct owned by Newmont Mining Corp, said Newmont
has informally indicated it would vote in favor of the Rio
Tinto proposal.
Foote said terms of the agreement, including price for the
proposed cash transaction, have not been released because they
are subject to a continuing due diligence investigation.
The company said a definitive merger agreement is expected
to be negotiated within six weeks and shareholders are expected
to vote on the deal at a meeting expected to be held in June or
July.
| Corporate News |
ALUMINIUM SCRAP RECOVERY AND USAGE TO RISE
| Aluminium scrap recovery and usage and
output of secondary metal will continue to rise, said Shearson
Lehman Brothers in a review of the secondary aluminium market
which details cost and demand factors.
Although primary smelting costs have declined generally in
recent years, the still substantial energy cost savings offered
by secondary smelters will continue to make re-melted material
increasingly attractive.
It takes around 15,000 kilowatt hours (kwh) of electricity
to produce one tonne of primary aluminium compared with around
550 kwh for one tonne of secondary metal, Shearson said.
On the demand side, developments in automobiles and
packaging bode well for secondary aluminium consumption.
Automobile production, although expected to fall this year,
is still on an upward trend and will continue to be so for the
foreseeable future and, in addition, use of aluminium castings
is gaining wider acceptance in the automobile industry,
particularly in the U.S.
In packaging, Shearson does not expect aluminium to
dominate the beverage can market in any of the other major
economies to the extent it does in the U.S., But says there is
evidence recycling is on the increase in other countries.
In addition to the cost savings involved, technology
advances now enable alloys of higher purity to be produced by
the secondary aluminium industry, Shearson said.
There is not likely to be a problem of availability as the
U.S. Has a huge scrap reservoir and this is also true of
several European countries, albeit on a smaller scale.
| Commodities and Trade |
CROSS AND TRECKER <CTCO> BUYS AUTOMATION UNIT
| Cross and Trecker said it
agreed to acquire the Alliance Automation Systems division of
Gleason Corp <GLE> for an undisclosed amount of cash.
It said the Gleason division manufactures automated
assembly and test systems used in the production of small to
medium size components for a number of industries, including
automotive, electronic and appliance.
Alliance Automation had 1986 sales of about 35 mln dlrs and
employs 200.
| Other |
SALANT CORP <SLT> 1ST QTR FEB 28 NET
| Oper shr profit seven cts vs loss 12 cts
Oper net profit 216,000 vs loss 401,000
Sales 21.4 mln vs 24.9 mln
NOTE: Current year net excludes 142,000 dlr tax credit.
Company operating in Chapter 11 bankruptcy.
| Commodities and Trade |
HEALTHMATE INC <HMTE> 4TH QTR LOSS
| Shr loss five cts vs loss six cts
Net loss 473,784 vs loss 489,257
Revs 268.8 mln vs 81.7 mln
Avg shrs 9,245,247 vs 8,035,326
Year
Shr loss 17 cts vs loss 20 cts
Net 1,512,534 vs loss 1,553,592
Revs 1,448,310 vs 515,225
Avg shrs 8,745,132 vs 7,619,863
| Financial Reports |
KEATING REVISES DOWN AUSTRALIAN GROWTH FORECAST
| Treasurer Paul Keating forecast
economic growth at slightly under two pct in the financial year
ending June this year, down from the 2.25 pct forecast
contained in the 1986/87 budget delivered last August.
Australia's terms of trade also fell, by 18 pct, over the
past two years, he told Parliament. Terms of trade are the
difference between import and export price indexes.
Despite the figures, the budget forecast of about 1.75 pct
annual growth in employment would be met, Keating said.
Unemployment is currently at 8.2 pct of the workforce.
"This government is dragging Australia through a trading
holocaust the kind of which we have not seen since the Second
World War," Keating said.
"We are not pushing this place into a recession. We are not
only holding our gains on unemployment, we are bringing
unemployment down," he said, adding that the government had help
the country avoid recession.
| Financial Reports |
26-FEB-1987
| 26-FEB-1987
| Financial Reports |