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Soviet Planning chief Nikolai Talyzin told the Supreme Soviet (parliament) industrial output is planned to rise by 4.5 pct in 1988 up from a planned 4.4 pct in 1987. In the first nine months of this year industrial output rose by 3.6 pct. Talyzin said national income the nearest Soviet equivalent to gross national product is planned to rise by 4.3 pct against a planned 4.1 pct this year. He said grain production is planned at 235 mln tonnes in 1988 compared with a planned 232 mln this year. The Soviet Union produced 210 mln tonnes of grain in 1986 and the Soviet press has said heavy rain has affected the harvest this year. Talyzin said the 1988 Soviet plan stressed the engineering industry which Kremlin leader Mikhail Gorbachev has described as a sector where rapid modernisation is essential if the Soviet Union is to compete effectively on world markets. Certain difficulties have arisen this year in the machine-building industry. The economy is not receiving a considerable amount of the equipment that it requires said Talyzin who heads the state planning committee Gosplan. Soviet data show the machine-building industry which makes machine tools instruments and other engineering goods increased output by 3.3 pct in the first nine months of this year against the same period of 1986. This is well below the 7.3 pct rise planned for the industry for all of 1988. Talyzin said the ruling Politburo concluded at a recent meeting that an improvement in economic performance depended to a large extent on conserving resources better. Large-scale measures are planned to save resources he said. Finance Minister Boris Gustev told the Supreme Soviet defence spending in 1988 would total 20.2 billion roubles the same as announced last year. Talyzin said the Kremlin also had decided to increase spending next year on medical services education pensions and social insurance schemes He said state expenditures in these fields would reach 171 billion roubles in 1988 or 3.5 billion roubles more than had originally been envisaged in the 1986-1990 Five-Year Plan. REUTER | SOVIET UNION SETS 4.5 PCT INDUSTRIAL OUTPUT GROWTH |
BELL ATLANTIC CORP 3RD QTR SHR 1.62 DLRS VS 1.49 DLRS |
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J.P. MORGAN AND CO INC 3RD QTR SHR 1.18 DLRS VS 1.15 DLRS |
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The Commodity Futures Trading Commission (CFTC) said the Kansas City Board of Trades (KCBT) one-minute audit trail system was adequate and accurate. But in its second rule enforcement review of an exchanges audit trail system CFTC said KCBT needed to provide a more accurate indication of the percent of trades that meet the one-minute timing standard. CFTC also recommended the exchange develop a computerized program to compare time and sales prints to the record of trades in its trade register. Reuter | KANSAS CITY EXCHANGE'S AUDIT TRAIL ADEQUATE |
IDC SERVICES AGREES TO BE ACQUIRED FOR 16 DLRS A SHARE BY APOLLO PARTNERS GROUP |
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Cooper Companies Inc filed with the Securities and Exchange Commission for a proposed offering of up to 300 mln dlrs of senior extendible notes set to mature on January 1 1993. Drexel Burnham Lambert Inc will act as an underwriter for the proposed offering Cooper said. Proceeds from the offering will be used to repay debt for general corporate purposes and to support future growth. Reuter | COOPER <COO> FILES FOR 300 MLN DLR NOTE OFFERING |
Restaurant Associates Industries Inc said the management group led by chairman Martin Brody and president Max Pine through October 16 had received 1796727 Class A and 1766091 Class B shares in response to its tender offer for all shares at 18 dlrs each giving thema majority of each class of shares. The company said the tender has been extended until November 6. Reuter | MANAGEMENT GROUP HAS RESTAURANT <RA> MAJORITY |
Shr 13 cts vs 22 cts Net 5452000 vs 9789000 Sales 155.7 mln vs 135.1 mln NOTE: Prior year net includes gain 6556000 dlrs from sale of shares of Seagate Technology Corp <SGAT.O>. Reuter | XIDEX CORP <XIDX.O> 1ST QTR SEPT 30 NET |
shr 1.99 dlrs vs 2.05 dlrs diluted shr 1.80 dlrs vs 1.75 dlrs net 50.0 mln vs 48.5 mln nine months shr 5.37 dlrs vs 5.69 dlrs diluted shr 4.87 dlrs vs 4.76 dlrs net 134.6 mln vs 129.6 mln Reuter | CALFED INC <CAL> 3RD QTR NET |
TANDY CORP 1ST QTR SHR 71 CTS VS 49 CTS |
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Chicago Mercantile Exchange floor traders and commission house representatives are guesstimating todays hog slaughter at about 305000 to 320000 head versus 291000 a week ago and 282000 a year ago. Cattle slaughter is guesstimated at about 128000 to 132000 head versus 128000 week ago and 130000 a year ago. Reuter | HOG AND CATTLE SLAUGHTER GUESSTIMATES |
Gencorps RKO General said it has asked the Federal Communication scommission to reverse an administrative law judges decision to revoke all 14 of the companys broadcast licenses. RKO General said the decision was based on allegations of misconduct that are either in error or have no bearing on our fitness as a broadcaster. It said the decision did not challenge the quality of our broadcasting. Yet if the decision is allowed to stank it will destroy our right to broadcast. Reuter | GENCORP <GY> SEEKS RETENTION OF LICENSES |
Shr 1.16 dlrs vs 1.09 dlrs Net 128.1 mln vs 118.3 mln Avg Shrs 108.8 mln vs 105.7 mln Nine Months Shr 40 cts vs 3.12 dlrs Net 53.2 mln vs 335.1 mln Avg Shrs 108.0 mln vs 105.2 mln Note: Prior-period data have been restated to include on a pooling-of-interest basis the August 31 1987 acquisition of Rainier Bancorporation. Reuter | SECURITY PACIFIC CORP <SPC> 3RD QTR NET |
Shr 1.77 dlrs vs 60 cts Net 58.2 mln vs 19.4 mln Revs 377.4 mln vs 188.0 mln Nine mths Shr 3.10 dlrs vs 1.51 dlrs Net 100.3 mln vs 50.6 mln Revs 1.11 billion vs 639.7 mln NOTE: 3rd qtr 1987 net includes about 3000000 dlrs after-tax extraordinary gain on retirement of debt. Reuter | PHELPS DODGE CORP <PD> 3RD QTR NET |
Shr 70 cts vs 54 cts Net 16.7 mln vs 12.5 mln Revs 343.6 mln vs 323.1 mln Avg shrs 23.9 mln vs 24.8 mln Nine mths Shr 1.98 dlrs vs 1.23 dlrs Net 46.9 mln vs 27.8 mln Revs 960.5 mln vs 893.2 mln Avg shrs 24.2 mln vs 24.9 mln NOTE: 1986 figures reflect the adjustment for 3-for-2 split in May 1987. Net for nine mths 1987 includes a cumulative effect of a change in accounting for gain on pension assets reversion of 10.1 mln or 42 cts a shr. Reuter | CRANE CO <CR> 3RD QTR NET |
American Telephone and Telegraph Co said it plans to build a new computer that incorrates a unified version of its UNIX System IV operating system and Sun Microsystems Incs recently annouced SPARC micropocessor. The SPARC chip is based on reduced instruction-set computing or RISC technology. ATT said the version of UNIX used by the new computer will incorporate po;ular features of the Berkeley 4.2 system a dirative of the UNIX system used widely in scientific and engineering markets as well as features of SunOs a variant of the Berkely system sold by Sun. ATT said it would take 18 months to two years to develop new computers based on the Sun microchip and the merged version of the UNIX operating system. Vittorio Cassoni president of ATTs newly-formed Data Systems Group said the company will not offer the new machines until the merged version of UNIX is completed. Its the software that will determine the availability of products based on SPARC he said. Eventually ATTs entire line of 3B mini computers will be converted to the SPARC architecture Cassoni said. The investment of all current users will be protected meaning that they will be able to maintain the software used on the current 3B line he said. Cassoni also said ATTs sales of computers declined in the first nine months of the year compared with the first nine months of last year. The lower sales were primarily the result of ATTs transition to a new line of computers he said. However demand for the new products is way way above expectation he stated. Reuter | ATT <T> PLANS COMPUTER USING SUN <SUNW.O> CHIP |
AMERICAN CYANAMID CO 3RD QTR OPER SHR 59 CTS UP 22 PCT |
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TELEX CORP TO INVESTIGATE ALTERNATIVES TO TLX PARTNERS BID, MAY SEEK OTHER PURCHASERS |
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Shr 42 cts vs 21 cts Net 19.1 mln vs 9528000 Sales 101.2 mln vs 65.6 mln Avg shrs 46.0 mln vs 46.0 mln Nine mths Shr 1.08 dlrs vs 69 cts Net 49.1 mln vs 32.7 mln Sales 280.0 mln vs 201.0 mln Avg shrs 45.6 mln vs 47.4 mln NOTE: Share adjusted for February 1987 two-for-one split. Reuter | LOTUS DEVELOPMENT CORP <LOTS.O> 3RD QTR NET |
WANG LABORATORIES INC 1ST QTR SHR PROFIT 14 CTS VS LOSS 19 CTS |
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Iran said U.S. Naval forces attacked two of its oil platforms in the southern Gulf on Monday afternoon the Iranian news agency IRNA reported. IRNA received in Nicosia said an informed source at the Iranian oil ministry identified the two platforms as Resalat and Reshadat about 60 miles from Irans Lavan island oil storage site. Regional shipping sources earlier said three Iranian offshore oil sites at Sassan Rostam and Rakhsh had been attacked at 7.00 A.M. (0300 GMT) on Monday by unidentified aircraft. In Washington U.S. Defence Secretary Caspar Weinberger said four U.S. Destroyers attacked and destroyed an Iranian oil platform about 120 miles east of Bahrain. REUTER | IRAN SAYS U.S. NAVAL FORCES ATTACKED TWO PLATFORMS |
CHICAGO MERC'S AND P 500 STOCK INDEX FUTURES OPEN MORE THAN 20 POINTS LOWER |
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WALL STREET STOCKS OPEN BROADLY LOWER |
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BROCKWAY INC 3RD QTR SHR 98 CTS VS 70 CTS |
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Oper shr loss 82 cts vs profit 12 cts Oper net loss 4134000 vs profit 544000 Avg shrs 5030000 vs 3927000 Nine mths Oper shr loss 80 cts vs profit 32 cts Oper net loss 3615000 vs profit 1457000 Avg shrs 4557000 vs 3927000 NOTE: 1986 net excludes tax loss carryforwards of 105000 dlrs in quarter and 195000 dlrs in nine mths. 1986 quarter net includes 212000 dlr tax credit. 1987 net both periods includes 3700000 dlr addition to loan loss reserves due mostly to one out-of-state real estate transaction. Reuter | SOUTHWEST BANCORP <SWB> 3RD QTR LOSS |
Shr 95 cts vs 36 cts Net 9100000 vs 3300000 Revs 143.7 mln vs 132.4 mln Avg shrs 9884000 vs 9780000 Nine mths Shr 2.77 dlrs vs 1.49 dlrs Net 26600000 vs 19000000 Revs 401.8 mln vs 385.2 mln Avg shrs 9871000 vs 12565000 NOTE: 1986 earnings include a loss from discontinued operations of 1000000 dlrs or 10 cts a share in the quarter and a gain of 2500000 dlrs or 19 cts a share for the nine months Reuter | GATX CORP <GMT> 3RD QTR NET |
Rising service payments on Kenyas three billion dlr external debt will absorb nearly all the 1.1 billion dlrs of foreign aid likely over the next four years President Daniel arap Moi said. While we expect to receive 18.3 billion Kenyan shillings in the form of external loans for our development programs in the next four years we will be repaying more than 13.5 billion... By way of external debt servicing... Moi told a conference of American businessmen in Nairobi. The president added that if developing countries continue to experience foreign exchange outflows on this scale many will be unable to sustain a level of imports necessary to ensure economic growth. He called on the international community to ensure a real transfer of resources from the industrialised to the developing countries. Moi said Kenya had so far met all obligations regarding its foreign debt which his government has never tried to reschedule. REUTER | KENYA DEBT SERVICING TO ABSORB MOST AID - MOI |
LOTUS DEVELOPMENT CORP 3RD QTR SHR 42 CTS VS 21 CTS |
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Shr 38 cts vs 29 cts Net 21.3 mln vs 15.8 mln Revs 102.6 mln vs 66.8 mln Reuter | MICROSOFT CORP <MSFT.O> 1ST QTR NET |
GENCORP SAID IT ASKED THE FCC TO REVERSE REVOCATION OF ITS BROADCAST LICENSES |
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Shr 65 cts vs 10 cts Net 55960000 vs 8785000 Revs 588.2 mln vs 596.1 mln Avg shrs 85710000 vs 87987000 Nine mths Shr 1.24 dlrs vs 44 cts Net 106738000 vs 39055000 Revs 1.98 billion vs 2.24 billion Avg shrs 86320000 vs 88007000 NOTE: 1986 data restated for adoption of new accounting standard relating to pensions 1987 nine month earnings include 331 mln dlr after-tax writeoff in the 4th Qtr of 1985 of a portion of the assets of the companys Midland nuclear project Reuter | CMS ENERGY CORP <CMS> 3RD QTR NET |
Shamrock Capital LP said it has completed the sale of Cental Soya Co Inc to Ferruzzi Agricola Finanziaria the holding company for the Ferruzzi group of Ravenna Italy. Shamrock Capital is a limited partnership led by Shamrock Holdings Inc the Roy E. Disney family company. Under the agreement announced last month Ferruzzi acquired all the equity and assumed subordinated term debt of about 195 mln dlrs in a transaction valued at about 370 mln dlrs. Reuter | SHAMROCK COMPLETES CENTRAL SOYA SALE TO FERRUZZI |
Qtr ends Sept 25 Shr 75 cts vs 64 cts Net 2794000 vs 2363000 Revs 157.8 mln vs 138.4 mln NOTE: 1986 qtr figures exclude effect of 1986 tax reform act which retroactively reduced earnings from 64 cts to 56 cts per shr. Reuter | CURTICE BURNS FOODS INC <CBI> 1ST QTR NET |
PHELPS DODGE CORP 3RD QTR NET 58.2 MLN DLRS VS 19.4 MLN DLRS |
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CMS ENERGY CORP 3RD QTR SHR 65 CTS VS 10 CTS |
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Autolatina Volkswagen AG <VOWG.F> and Ford Motor Cos <F> Latin American joint venture was expected to make losses of 500 mln marks from Brazilian operations in 1987 VW spokesman Ortwin Witzel said. He could not comment on a report in the Frankfurter Rundschau daily that Ford might pull out of the venture set up in 1986 to incorporate VWs and Fords Brazilian and Argentine operations. Ford holds 49 pct of Autolatina. Witzel blamed Autolatinas losses on Brazils government price restrictions but said the losses were in line with expectations. VWs Brazil unit lost 258 mln marks in 1986. Reuter | VW SAYS AUTOLATINA TO LOSE 500 MLN MARKS IN 1987 |
U.S. warships attacked and destroyed an Iranian oil platform on Monday in retaliation for Fridays Iranian attack damaging a U.S.-flagged ship U.S. Defense Secretary Caspar Weinberger said. When asked how much was left of the oil platform Weinberger said Nothing. There was no Iranian reaction he said. ... We consider this matter is now closed. Weinberger said four U.S. destroyers attacked the platform about 120 miles east of Bahrain in the central Gulf with fire at 0700 EDT Weinberger said. We chose a platform used by the Iranians to interfere with and be a source of potential attack on convoys... Weinberger said at a Pentagon briefing. We know it has been used indeed to not only launch small boat attacks on shipping but to fire on U.S. helicopters... Its removal will contribute significantly to the safety of U.S. forces in the future Weinberger said of the U.S. Navys operation to escort oil tankers through the Gulf. We do not seek further confrontation with Iran but we will be prepared to meet any escalation of military actions by Iran with stronger countermeasures Weinberger said. He said the 20 to 30 Iranian personnel on the oil platform were given a 20-minute warning to abandon the platform. As far as we know they did abandon the site he said. Weinberger was asked why the United States had chosen to attack an oil platform rather than Iranian Silkworm missile platforms blamed by Washington for Fridays attack. Reuter | U.S. NAVAL FORCES ATTACK IRANIAN OIL PLATFORM |
Shr profit 10 cts vs profit eight cts Net profit 477853 vs profit 348384 Sales 17.7 mln vs 17.3 mln Nine mths Shr loss 35 cts vs profit 45 cts Net loss 1639216 vs profit 2305700 Sales 56.2 mln vs 57.1 mln Avg shrs 4698501 vs 5075717 NOTE: Earnings in the 2nd Qtr of 1987 were reduced by 3262000 dlrs or 69 cts a share from a charge reflecting elimination or transfer of certain product lines and operations at the companys Racine Wis. foundry Reuter | LINDBERG CO <LIND.O> 3RD QTR NET |
Ogden Corp said its Ogden Martin System of Berks Inc subsidiary has signed a contract with Berks County Pa. to build own and operate a resource recovery plant designed to process 365000 tons per year of municipal solid waste. Ogden said 66 of the 75 municipalities in the county have signed letters of intent to be served by the facility. It said initial financing will include 75 mln dlrs in tax exempt resources recovery revenue bonds to be issued by the Berks County Industrial Development Authority the company said. Another 75 mln dlrs Pennsylvania State Bond Allocation is pending Ogden said. The company will contribute about 21.1 mln dlrs in equity. It said total cost is about 105 mln dlrs plus escalation for the plant which will produce about 30 megawatts of electricity. Reuter | OGDEN <OG> SETS BERKS COUNTY WASTE FACILITY |
Shamrock Capital LP said it has completed the sale of Cental Soya Co Inc to Ferruzzi Agricola Finanziaria the holding company for the Ferruzzi group of Ravenna Italy. Shamrock Capital is a limited partnership led by Shamrock Holdings Inc the Roy E. Disney family company. Under the agreement announced last month Ferruzzi acquired all the equity and assumed subordinated term debt of about 195 mln dlrs in a trction valued at about 370 mln dlrs. Reuter | SHAMROCK COMPLETES CENTRAL SOYA SALE TO FERRUZZI |
MICROSOFT CORP 1ST QTR SHR 38 CTS VS 29 CTS |
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CURTICE BURNS FOODS INC 1ST QTR SHR 75 CTS VS 64 CTS |
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WEINBERGER SAYS U.S. FORCES ATTACKED IRANIAN OIL PLATFORM |
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Cable and Wireless Plc <CAWL.L> said its subsidiary <Hong Kong Telephone Co Ltd> would cease to be a listed company following the restructure of the companys Hong Kong units. Earlier today the company announced that Hong Kong Telephone and Cable and Wireless Hong Kong in which the territorys government has a 20 pct stake would become subsidiaries of a newly formed holding company Hong Kong Telecommunications. In exchange for the Cable and Wireless Hong Kong capital Hong Kong Telecommunications will issue 4.18 billion new shares to Cable and Wireless Plcs Cable and Wireless (Far East) Ltd. That subsidiary now holds the groups 80 pct stake in Cable and Wireless Hong Kong and about 22 pct of H.K. Telephone. It will issue an additional 1.05 billion shares to the goverment. That will leave the Cable and Wireless group with an 80 pct stake in Hong Kong Telecommunications the government 11 pct and nine pct in public hands. But that will be reduced early next year after a placement of 11 pct of the issued shares of Hong Kong Telecommunications by both Cable and Wireless and the government. Reuter | CABLE AND WIRELESS RESTRUCTURES H.K. UNITS |
Texaco Inc said it has been asked by a committee of shareholders about the possibility of the company paying a preferred stock dividend to shareholders. The company said the inquiry from the Equity Security Holders Committee outlines the committees ideas on how such a dividend might be paid. Texaco said it would explore the committees outline as well as other options that would support shareholders interests and assets. Reuter | TEXACO <TX> HOLDERS SEEK PREFERRED DIVIDEND |
Bank of France added money market liquidity at 7-3/4 pct - dealers |
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GAF Corp said the management group led by chairman Samuel J. Heyman intends to reconsider its proposal to acquire GAF. On September 8 the group offered 64.00 dlrs in cash and 2.50 dlrs principal amount of 15 pct junior subordinated debentures due 2007 for each GAF share. Heyman owns about 2700000 of GAFs 33.5 mln shares outstanding. In a letter to the committee of independent directors formed to consider the offer Heyman said it will have to modify the terms of the offer if it is to continue the bid due to rising interest rates and financial market conditions. Heyman said In the considerable time that has elapsed since our original proposal was submitted the credit and financial markets have experienced extraordinary and almost unprecedented deterioration. As of the present time the average interest rate on the financing which we proposed to raise in connection with the acquisition has increased since the original proposal by approximately 150 basis points. He said the group intends to promptly review all available options including the revision of its offer to reflect current market conditions. Reuter | GAF <GAF> GROUP RECONSIDERS BUYOUT BID |
SECURITY PACIFIC CORP 3RD QTR SHR 1.16 DLRS VS 1.09 DLRS |
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CALFED INC 3RD QTR SHR 1.99 DLRS VS 2.05 DLRS |
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Tandem Computers Inc said it has introduced an 84-gigabyte write-once read-many-times optical disk library subsystem called the 5200 Optical Storage Facility for use with Tandem NonStop computer systems VLX TXP NonStop II EXT25 and EXT10. The company said the facility contains two read/write disk drives a formatter and an automatic changer for up to 32 disk cartridges each holding 2.62 gigabytes of data. It said the 52oo provides an average access time of 250 milliseconds for data on an optical disk cartridge already mouinted and 17 seconds when a cartridge must be changed. Tandem said deliveries will start this quarter. It said the 5200 is priced at 155000 dlrs. It said the software initial license fee is 5300 dlrs and the monthly license fee is 100 dlrs with the NonStop VLX TXP NonStop II and EXT25 systems and the fees are 2650 dlrs and 50 dlrs respectively with the EXT10 system. Reuter | TANDEM <TDM> HAS OPTICAL DISK SUBSYSTEM |
South Koreas national news agency Yonhap said this years current account surplus will near 10 billion dlrs amid signs of continuing high world demand for the countrys cheap cars and electronic goods. Bank of Korea officials would neither confirm nor deny the Yonhap forecast saying only that the bank would issue its own figures later in the week. Yonhap said the January-September surplus in the current account which covers trade in goods and services totalled 7.03 billion dlrs. This already exceeds the seven billion dlr ceiling for the whole of 1987 that the government set in June during talks with the International Monetary Fund aimed at averting a too rapid revaluation of the won against the dollar. The agency said the September surplus was 1.4 billion dlrs up from 468.1 mln in August and 899 mln a year earlier. Exports in October could be relatively modest due to many public holidays but by the end of this year the surplus will be well over nine billion dollars close to ten Yonhap said. The sharp rise in the September surplus came from a resumption of export deliveries delayed by strikes the previous month. More than 3300 companies including car manufacturers electronic and electric firms were hit by labour unrest between July and September. The South Korean government originally targeted a five billion dlr current account surplus this year but had to raise this to seven billion to reflect a startling first-half export boom. If confirmed the soaring 1987 current account surplus seemed certain to trigger tougher pressure from the United States which recorded a 7.4 billion dlr trade deficit with Seoul last year government economists said. The U.S. Government trying to stem protectionist pressure at home has called on South Korea to open more markets to American goods and revalue the won faster. The won was fixed at 804.90 against the dollar on Monday representing a 7.01 pct gain so far this year. REUTER | S.KOREA CURRENT A/C SURPLUS SEEN NEAR 10 BLN DLRS |
Shr 30 cts vs 17 cts Shr diluted 30 cts vs 17 cts Net 3454000 vs 1546000 Sales 84.0 mln vs 59.2 mln Avg shrs 11.6 mln vs 8917000 Avg shrs diluted 11.7 mln vs 11.2 mln Nine mths Shr 91 cts vs 72 cts Shr diluted 90 cts vs 65 cts Net 10.5 mln vs 5959000 Sales 236.7 mln vs 168.9 mln Avg shrs 11.5 mln vs 8227000 Avg shrs diluted 11.6 mln vs 11.2 mln Reuter | PLY GEM INDUSTRIES INC <PGI> 3RD QTR NET |
Unidentified jets attacked three Iranian oil rigs in the southern Gulf early on Monday setting at least one of them ablaze regional shipping sources said. Earlier today in Washington U.S. Television networks had reported that American forces launched a retaliatory strike against Iran late Sunday attacking two Iranian offshore oil drilling platforms and setting them ablaze. The shipping sources said Irans Sassan Rostam and Rakhsh offshore oilfields were attacked at 0700 local (0300 GMT) by a wave of jet fighter bombers. Smoke was seen spiralling up from the Rostam field soon after. At least one of the other two targets was also believed to be ablaze the sources said. The Sassan and Rostam fields have been targets for Iraqi air strikes in the past but Baghdad had not reported any southern Gulf missions prior to news of the latest attack. Shipping and military sources in the region have said Iran used its southern Gulf rigs as bases to launch helicopter and later speedboat attacks on neutral ships in the waterway. U.S. Officials had been meeting on a response since Friday when an attack on a Kuwaiti port severely damaged a U.S.-flagged ship. President Reagan said on Sunday he had already made a decision on the U.S. Response to Fridays Iran attack but would not say what the decision was. REUTER | AIRCRAFT ATTACK IRANIAN OIL RIGS IN SOUTHERN GULF |
Leading Belgian shares 15 pct down in hectic early trading - dealers |
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Deutsche Bank AG joint chief executive Friedrich Wilhelm Christians said he believed the Louvre accord on currency stability was still intact. Christians told a news conference he met U.S. Treasury Secretary James Baker in the last two weeks after short term German interest rates had risen twice. I am sure that with 1.7720 marks the dollar is still within the Louvre agreement. I do not see that the accord has been terminated Christians said. He was responding to questions about comments by Baker who said the Louvre accord was still operative but criticised rises in West German interest rates. REUTER | DEUTSCHE BANK CHIEF SAYS LOUVRE PACT STILL INTACT |
GAF CORP SAID MANAGEMENT GROUP TO RECONSIDER ACQUISITION PROPOSAL |
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Shr 13 cts vs 12 cts Net 1612000 vs 1571000 Revs 28.8 mln vs 25.0 mln Avg shrs 12.8 mln vs 13.3 mln Reuter | EMULEX CORP <EMLX.O> 1ST QTR SEPT 27 NET |
Shr 18 cts vs 13 cts Net 5436000 vs 3888000 Sales 43.9 mln vs 31.5 mln Avg shrs 30145000 vs 28976000 Nine mths Shr 51 cts vs 38 cts Net 15320000 vs 11098000 Sales 123.6 mln vs 91.2 mln Avg shrs 30157000 vs 29046000 NOTE: Earnings adjusted for three-for-two stock split paid June 20 1986 Reuter | LYPHOMED INC <LMED.O> 3RD QTR NET |
Privately-held NeoRx Corp said it has entered into an exclusive agreement with Genentech Inc for the development of an injectable diagnostic to image blood clots. It said it Genentech will be responsible for marketing and NeoRx will receive royalties based on sales. The product will use a proprietary NeoRx method of attaching the radioisotope technetium-99m to Genentechs blood clot dissolving drug tissue plasminogen activator or Activase. Reuter | GENENTECH <GENE.O> IN IMAGING DRUG VENTURE |
Unidentified jets raided three Iranian oil rigs in the southern Gulf on Monday setting at least one of them ablaze regional shipping sources said. Reuter | AIRCRAFT ATTACK IRANIAN OIL RIGS IN SOUTHERN GULF |
Quantech Electronics Corp said its common stock will continue to be quoted on the NASDAQ system due to an exception from National Association of Securities Dealers capital and surplus requirements which it failed to meet as of August 31. The company said it believes it can meet conditions imposed by the NASD for the exception but there can be no assurance that it will do so. Reuter | QUANTECH <QANT.O> GETS NASDAQ EXCEPTION |
SHIPPING SOURCES SAY UNIDENTIFIED JETS RAID IRANIAN OIL PLATFORMS IN SOUTHERN GULF |
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Unidentified jets raid Iranian oil platforms in southern Gulf - shipping sources |
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Saudi Arabia is likely to remain the key supplier of liquefied petroleum gas (LPG) to Japan for at least the next five years oil industry sources said. Japan while diversifying its supply sources of propane and butane for stable supplies will continue to bank on Saudi Arabian LPG the sources said. They said Saudis supply capabilities of LPG an associate of crude oil is guaranteed by its crude output capacity. Saudi is a reliable supplier in that sense said one trader. Japan imports about 50 pct of its LPG from Saudi Arabia. No single nation could substitute for Saudi Arabia as an LPG supply source to Japan the sources said. Saudi Arabia has committed itself to Japanese LPG buyers which has quelled fears that LPG supplies from the Mideast Gulf could easily be disrupted in the wake of heightened hostilities in that area said another trader. Saudi Arabia cut LPG shipments to Japan and elsewhere by 20 pct in September after a fire put a major gas plant at Al-Juaimah out of operation. October shipments were back to contractual volumes as Saudi was able to boost exports from other ports. Attacks on Gulf shipping by Iran and Iraq centered on crude rather than products carriers which has lulled fears of LPG supply disruptions traders said. They said an Iranian blockade of the Strait of Hormuz was unlikely because it would block Irans oil shipments. Industry sources said Japans LPG imports will not greatly rise or fall as its domestic demand growth is estimated at a moderate 2.1 pct a year from 1986 through 1991. Japanese term buyers of Saudi LPG are expected to lift slightly lower volumes from January 1987 when imports from Indonesia are slated to increase the sources said. The customers are unlikely to slash Saudi term purchases in large scale when Japan increases annual imports of Indonesian LPG to 1.95 mln tonnes in early 1989 from 319000 tonnes in the year ended March 1987 the sources said. But when demand is sluggish in summer they will phase down term purchases of Saudi LPG and secure lower-priced cargoes on the spot market they said. Japan imports some 12 mln tonnes of LPG a year of which 5.3 mln tonnes are supplied by Saudi Arabia 3.3 mln under term contracts and two mln through spot purchases. Some 80 pct of Japans LPG imports are from the Middle East. Saudi Arabias state owned oil company Petromin has made some concessions on term prices to Japanese customers in the recent round of contract renewal talks and it is likely the Japanese will accept the offer the sources said. The Japanese term customers however have so far been unsuccessful in establishing a transparent price formula to replace the existing unilateral monthly price notice. Japanese buyers pay Saudi Arabia a price notified by Petromin each month. Most recently the FOB price was set at 87 pct of the 17.52 dlrs per barrel government selling price (GSP) of Arabian Light. Buyers reserve the right to phase down or out liftings should the monthly price be set at over 95 pct of Arabian Lights GSP. Petromin has offered to lower this rate to 90 pct from the 95 pct for contracts with Japanese customers from next January the trade sources said. Petromin also suggested that a sellers option of supplying up to 20 pct more than the contractural volume be subject to seller-buyer agreement. Under the present contract Petromin can automatically cut supplies up to 10 pct of the contractual volume. If you want to import LPG from Saudi Arabia on a profitable basis you have to set the price factor at 80 to 85 pct said an official at a major importer. Freight costs are higher for cargoes coming from the Gulf than Southeast Asia due to a longer haul and war risk insurance payments. Japanese customers will visit Saudi Arabia this month to finalise their separate contract talks now focusing on contractual period and volume which could be very similar to current levels the sources said. When we talk business we would seek profitability and sometimes forget vulnerability of high dependence on a single supplier said one. REUTER | SAUDI TO REMAIN AS KEY LPG SUPPLIER TO JAPAN |
<Bechtel Corp> said it has formed a joint venture with Control Resource Industries Inc called Bechtel-Control Asbestos Management Inc to perform large-scale asbestos abatement projects. Reuter | BECHTEL, CONTROL RESOURCE <CRIX.O> IN VENTURE |
Shr loss nine cts vs loss 12 cts Net loss 649000 vs loss 850000 Revs 5059000 vs 4084000 Avg shrs 7041000 vs 6900000 NOTE: Current year net includes charge 152000 dlrs from amortization of previously capitalized software costs. Capitalized product development costs 276000 dlrs vs 640000 dlrs. Reuter | INTELLICORP <INAI.O> 1ST QTR SEPT 30 LOSS |
Shr 36 cts vs 36 cts Shr diluted 34 cts vs 31 cts Net 1679000 vs 1418000 Sales 147.2 mln vs 121.5 mln Avg shrs 4608000 vs 3963000 Avg shrs diluted 5585000 vs 5463000 Nine mths Shr 1.04 dlrs vs 86 cts Shr diluted 93 cts vs 77 cts Net 4387000 vs 3393000 Sales 420.3 mln vs 338.7 mln Avg shrs 4233000 vs 3948000 Avg shrs diluted 5564000 vs 5468000 Reuter | OWENS AND MINOR INC <OBOD.O> 3RD QTR NET |
Shr 52 cts vs 43 cts Net 17.7 mln vs 14.2 mln Sales 413.1 mln vs 361.6 mln Avg shrs 34.3 mln vs 30.3 mln Nine mths Oper shr 1.58 dlrs vs 66 cts Oper net 53.9 mln vs 26.7 mln Sales 1.22 billion vs 1.08 billion Avg shrs 33.5 mln vs 35.2 mln NOTE: 1986 nine mths net includes 20.6 mln dlr provision for restructuring but excludes 85.0 mln dlr gain on sale of discontinued glass business and 1330000 dlr gain from discontinued operations. Quarter orders 350.2 mln dlrs vs 296.7 mln dlrs. Backlog 507.6 mln dlrs vs 444.4 mln dlrs. Reuter | TRINOVA CORP <TNV> 3RD QTR NET |
The thriving market in Luxembourg franc bond issues has been temporarily stalled by the Belgian government crisis which has put the franc under pressure and forced up interest rates banking sources said. On Monday King Baudouin accepted the resignation of Belgian Prime Minister Wilfried Martens coalition and asked him to try to form a new government. Because of the crisis Banque Generale du Luxembourg SA (BGL) has delayed a public issue for one billion Luxembourg francs originally scheduled for the end of last week BGL director Robert Sharfe said. He said the issue would probably go ahead later this week. It is likely there will be an upward adjustment in interest rates on Luxembourg franc bond private placements banking sources said. However no new placements are scheduled for another 10 days. The latest issue last Friday for Swedish Export Credit Corp (SEK) carried a coupon of 7-1/2 pct whereas in previous issues the interest was set lower at 7-3/8 pct. Interest rates on the Luxembourg franc which is in parity with the Belgian franc are strongly affected by Belgian rates. On Friday Belgium increased the rate on three-month Treasury certificates by 0.5 pct to 7.15 pct as the Belgian franc came under pressure. Private placements in Luxembourg francs have become increasingly popular particularly with Scandivanian borrowers because they carry a relatively low interest rate. Private investors also have flocked to buy Luxembourg franc bond issues because the franc was seen as a fairly strong currency. REUTER | LUX FRANC BOND MARKET STALLED BY BELGIAN CRISIS |
U.S. television networks said on Monday that U.S. forces launched a retaliatory strike against Iran late Sunday apparently attacking two Iranian offshore oil drilling platforms. NBC News said it understood six Iranians had been pulled from the sea. It said cautiously that U.S. forces attacked late Sunday and that two Iranian oil platforms east of Bahrain were ablaze as a result but CBS News and other networks said flatly that U.S. forces attacked the Iranian oil platforms. U.S. officials had been meeting on a response since Friday when an attack on a Kuwaiti port severely damaged a U.S.-flagged ship. President Reagan said on Sunday he had already made a decision on the U.S. response to Fridays Iran attack but would not say what the decision was. Defense Secretary Caspar Weinberger said on Saturday the attack on a U.S.-flagged ship in Kuwaiti waters on Friday was almost certainly by an Iran Silkworm missile. Reuter | NBC NEWS SAYS U.S. HAS RETALIATED AGAINST IRAN |
Thai traders plan to establish a company to regulate maize forward trading in what could be a first step towards a commodities futures exchange maize dealers said. Traders and Internal Trade Department officials agreed last week to commission a study on a structure to regulate maize forward trading and to set up a company Thailand Commodity Exchange Co Ltd with 30 businesses as shareholders who will act as brokers in the futures market. Chanthong Pattamapong a commodities trader asked to to draw up the study said if the maize futures market succeeds it may be extended to other commodities perhaps sugar and rubber. REUTER | THAI TRADERS PLAN MAIZE FUTURES MARKET |
U.S. TELELVISION NETWORKS SAY THE U.S. LAUNCHED A STRIKE AGAINST IRAN |
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TRINOVA CORP 3RD QTR SHR 52 CTS VS 43 CTS |
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Bundesbank buys 11.7 mln dlrs as dollar fixed lower at 1.7740 marks |
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The Reserve Bank of India said it was tightening its credit policy for commercial banks by raising their cash reserve ratio by 0.5 pct to 10 pct effective from October 24. The move announced last weekend is part of the banks policy for the second half of fiscal 1987/88 ending March and is aimed at curbing excess bank liquidity. The central bank also put selective controls on bank advances to the oilseeds vegetable oils and foodgrains trades. The policys main objective is to fully meet the credit requirements of agriculture industry and exports while preventing excessive monetary expansion bank Governor R.N. Malhotra told an earlier meeting of chief executives of banks. Malhotra said the rate of monetary expansion must be kept under control in the second half of the current financial year. Bank deposits rose 75.40 billion rupees in the first six months of fiscal 1987/88 against 66.92 billion in the same period last year according to the bank. Bankers said the banks move to raise the cash reserve ratio by 0.5 pct will mean impounding about five billion rupees from the banking system. Banks total deposits are estimated at around 1000 billion rupees. They said banks are under pressure because of low returns on commercial lending and investments in government securities. Already many banks are finding it difficult to maintain their statutory liquidity and cash reserve ratios and are resorting to heavy inter-bank borrowings said one banker. REUTER | INDIAN RESERVE BANK TIGHTENS CREDIT POLICY |
Malaysian police denied rumours of race riots in Kuala Lumpur after an armed man killed one person and injured two others in an attack on two petrol stations in a racially-sensitive area of the city. A police statement broadcast over official Radio Malaysia called on the public not to listen to the rumours and go about their normal business. Everything is under control. Its only a small matter and there is no cause for alarm a police spokesman told Reuters after confirming the shooting on Sunday night. However rumours that riots had broken out hit the stock market and shares on the Kuala Lumpur Stock Exchange fell across the board in heavy nervous selling when the market opened this morning brokers said. Police said they cordoned off the district of Chow Kit and set up road blocks from midnight after the man armed with a rifle killed one Malay and injured another Malay and a Chinese. He set fire to one of the petrol stations. REUTER | MALAYSIAN POLICE DENY RACE RIOT RUMOURS |
French bourse main session 7.25 pct down in early trading - dealers |
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Puma AG Rudolf Dassler Sport <PUMA.F> said it posted a 1987 first-half group loss of about 14 mln marks of which the largest portion was in the U.S. Managing board chairman Armin Dassler told the annual shareholders meeting parent company turnover was expected to fall to 650 mln marks over the whole year from 698.4 mln in 1986. No comparative figure for 1986 first half group loss was available. In the whole of 1986 Puma posted a group consolidated loss of 41.05 mln marks. Dassler said Puma hoped to improve performance in the U.S. This year where heavy losses were mainly responsible for the 1986 deficit. He said Puma expected to post a group loss in the second half of this year but the shortfall would be lower than in the first half. The same applied to expected parent company losses he added. Dassler said Puma had taken measures to improve future performance. Dassler said the measures included changing Pumas product range closing down some unprofitable factories in West Germany and France and introducing general cost-cutting. He said Puma hoped to break even in 1988 in the U.S. Its most important export market. Dassler said a personal payment he would make to shareholders instead of a 1986 dividend was a goodwill gesture which would not be repeated. Dassler said the payment to holders of Pumas 280000 non-voting preference shares would amount to about 1.2 mln marks or 4.50 marks per share. Armin Dassler and his brother Gerd hold all of Pumas 720000 ordinary voting shares. They offered the preference shares to the public in July last year. Dassler said shareholders would benefit if Puma improved performance next year. He did not elaborate. Dassler said he and his brother were planning to leave the managing board and join the supervisory board. He said he was leaving for health reasons and because he wanted to make way for a new chairman from outside the company. His successor has not been made known yet. Dassler said todays meeting was expected to approve Manfred Emcke as Pumas new supervisory board chairman replacing Vinzenz Grothgar. REUTER | PUMA FIRST-HALF LOSS ABOUT 14 MLN MARKS |
A U.S. Defense Department spokesman said he had no information on London oil and stock market rumors that the United States had launched a retaliatory strike against Iran for an attack on Friday that damaged a U.S. shi I dont have anything Major Randy Morger said. I have no information at all. President Reagan said on Sunday he had already made a decision on the U.S. response to Fridays Iran attack but would not say what the decision was. Defense Secretary Caspar Weinberger said on Saturday the attack on a U.S.-flagged ship in Kuwaiti waters on Friday was almost certainly by an Iran Silkworm missile. Some of the rumors in the London markets were that the United States had launched an offshore strike against Iranian missile installations. Reuter | PENTAGON HAS NO INFORMATION ON IRAN ATTACK RUMORS |
South Yemen is planning a major oil pipeline system to be completed in 18-months time to start exports at a initial rate of 100000 barrels per day (bpd) the Middle East Economic Survey (MEES) said. MEES said government approval for the export pipeline followed a visit to Aden by a high ranking delegation from the Soviet Union which will help South Yemen construct the line The engineering studies for the pipeline are nearly finished and construction is expected to start early next year the industry newsletter said. The pipeline will run about 170-200 kms (105-125 miles) from Shabwa oilfields to a coastal terminal at Bir Ali on the Gulf of Aden MEES said. MEES said the Soviet firm Technoexport which is developing oilfileds for South Yemen has substantially increased its initial reserve estimates and recommended a pipeline with an eventual 500000 bpd capacity. The discovery of commercial quaotities of oil was confirmed by Technoexport earlier this year in three structures in the Shabwa region in the Northwestern part of the country 200 kms east of North Yemens Alif oilfield. REUTER | SOUTH YEMEN PLANS OIL EXPORT PIPELINE - MEES |
Trafalgar House Plc <TRAF.L> said it has acquired the entire share capital of <Capital Homes Inc> of the U.S. For 20 mln dlrs in cash. Capital Homes builds single family homes in the Washington D.C. Area and is also active as a land developer both for its own use and for sale to other builders. In the financial year to end February 1987 Capital recorded pre-tax profits of 3.7 mln dlrs on a turnover of 58 mln dlrs from the sale of 421 homes. Capital has a land bank of some 2600 units and in the current year the company expects to sell 500 homes Trafalgar House said. REUTER | TRAFALGAR HOUSE BUYS U.S. BUILDER FOR 20 MLN DLRS |
Sprint II a special purpose corporation based in the Cayman Islands is issuing 35 mln dlrs of floating rate bonds due November 6 1992 and priced at 100.10 said Fuji International finance Ltd as lead manager. The bonds are backed by a pool of 48.7 mln dlrs of Japanese ex-warrant bonds. The bonds are priced to yield 20 basis points over the six month London Interbank Offered Rate. They are available in denominations of 100000 dlrs and are payable on November 6. There is a seven basis point management and underwriting fee an eight basis point selling concession and a two basis point praecipuum. REUTER | SPRINT II ISSUES 35 MLN DLR REPACKAGED FLOATER |
French main session bourse opening delayed 15 minutes by order volume - dealers |
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Kuwaits oil exports have not been affected by the seven-year Iran-Iraq war Kuwait Oil Tanker Company (KOTC) Chairman and Managing Director Abdul Fattah al-Bader told a Kuwaiti newspaper. Kuwait has exploited all available opportunities to continue exporting its oil without any reduction the Al-Anbaa newspaper quoted him as saying. He said KOTC made profits of more than two mln dinars (seven mln dlrs) in the fiscal year ending last June but predicted lower profits this year due to higher costs for chartering and operating vessels. REUTER | KUWAITI OIL EXPORTS SAID NOT AFFECTED BY GULF WAR |
Toyota Motor Corp <TOYO.T> and Volkswagen AG <VOWG.F> are considering raising the local procurement rate at their West German joint venture to at least 60 pct from an earlier planned 50 pct after one years output a Toyota spokesman said. The two carmakers agreed last June to start jointly producing a Toyota-designed light truck at VWs Hanover plant from early 1989 at a rate of 7000 to 8000 the first year rising to 15000 from 1990. They may equip the light truck with a Volkswagen-made engine to reach a local procurement rate of 60 pct he said. The two companies need to raise the value of locally procured parts to 60 pct to avoid tariffs when they export to other European markets industry sources said. REUTER | TOYOTA, VW CONSIDER UPPING JOINT PROCUREMENT RATE |
Karl Otto Poehl head of West Germanys central bank and Finance Minister Gerhard Stoltenberg are normally so much in agreement that some foreigners doubt the central banks independence. But a rare public row between the ebullient Poehl president of the Bundesbank and Stoltenberg over a controversial investment tax proposal has added to the woes of the countrys already nervous financial markets bankers said. Poehl told an investment symposium in Frankfurt last Thursday he feared the tax would raise borrowing costs and interest rates Stoltenberg quickly issued a statement rebutting Poehls criticism saying West Germany would remain an attractive place for foreign investors. The obvious lack of coordination between the Bundesbank and Finance Ministry does not instil confidence in foreign investors said one economist for a London broker who asked not to be identified. Bankers here expressed confidence the two top financial policy-makers would quickly patch up their relationship to steer the economy through a particularly difficult time. There are plenty of objective pressures which will result in things getting back to normal again after a period of ill feeling said Commerzbank AG chief economist Juergen Pfister. News on October 9 that the government was planning a 10 pct withholding tax wiped billions of marks off shares and bonds in a market already reeling from rising interest rates at home and abroad. Bankers said the Bundesbank was angered by the way the finance ministry announced the plan -- without consulting the Bundesbank adequately and allowing apparently conflicting details to dribble out into an unprepared and uncertain market. Both Poehl 57 and Stoltenberg 59 have been under extraordinary pressures lately. Poehl has had to switch to the hard line promoted by his deputy Helmut Schlesinger jacking up interest rates to fight inflationary fears and abandoning the pragmatic policies he had pursued so far this year to promote currency stability. In recent statements Poehl has sounded more like Schlesinger. For years the softly-spoken economist has been warning in speech after speech that excessive money supply growth would eventually lead to rising prices. Schlesinger now has a majority of support in the Bundesbank council and since late summer Poehl has had to represent his views bankers said. Poehl is in a minority in his own house said Commerzbanks Pfister. Poehl is in a dilemma. He must follow a policy that is not entirely his own said another economist. The dilemma is that if German interest rates rise too far they will attract funds into the country pushing up the mark and hurting West German exporters. The dollar has now shed some seven pfennigs since the Bundesbanks new tack became clear in early October. Since last Thursday United States Treasury Secretary James Baker has criticized the Bundesbank rate increases. Bankers said this could foreshadow a revival of the 1986 war of words between the U.S. And West Germany in which U.S. Officials talked down the dollar to force West Germany to stimulate its economy and thus suck in more U.S. Exports. One way West Germany agreed to do this was making a round of tax cuts worth 39 billion marks from 1990. But financing these tax cuts has proved more difficult for Stoltenberg than he had bargained for. The cool unflappable northerner who was regularly voted most popular government politician last year had to face resistance from local barons in the government coalition parties and from trade unions to his planned subsidy cuts. The withholding tax was intended to plug one gap by raising 4.3 billion marks. But it has caused an outcry among bankers who say it will push up borrowing costs. The extra amount this costs the government could wipe out the revenue the tax brings in. Meanwhile Stoltenberg is dealing with a local political row which has turned into the countrys worst political scandal. Stoltenberg had to leave monetary talks in Washington last month early to sort out a row in the northern state of Schleswig-Holstein where he heads the ruling CDU party. The states CDU premier Uwe Barschel had to resign after allegations of a dirty tricks election campaign led to heavy losses for the CDU in state elections. Barschel was found dead in a hotel bath in Geneva last weekend. Police say the death appears to have been suicide. Cooperation between Poehl and Stoltenberg is all the more remarkable as Poehl is in the opposition Social Democrats and was appointed by former chancellor Helmut Schmidt. When Poehls contract came up for renewal earlier this year Chancellor Helmut Kohls CDU-led coalition government gave Poehl another eight-year term. Werner Chrobok managing partner at Bethmann Bank said he hoped the two men would soon be of one opinion again. But when Poehl criticized Stoltenbergs tax plans he was not only voicing what many bankers felt but demonstrating the Bundesbanks independence of government Chrobok said. REUTER | GERMAN FINANCIAL POLICY MAKERS IN RARE DISSENSION |
Fletcher Challenge Ltd <FLTC.WE> (FCL) announced a striking price of 5.89 N.Z. Dlrs a share for shareholders who have elected to receive bonus shares under its dividend reinvestment plan. It said in a statement the price was determined by taking 90 pct of the weighted average prices of ordinary shares sold on the New Zealand Stock Exchange between October 12 and 19. FCL shares were quoted from Monday as ex-dividend and closed at 6.10 dlrs. REUTER | FLETCHER CHALLENGE SETS PRICE FOR BONUS SHARES |
Venezuelan Central Bank President Hernan Anzola has submitted his resignation and asked President Jaime Lusinchi to transfer him to a post in the oil industry two leading Venezuelan newspapers reported. The El Universal and El Nacional papers said Anzola would leave his position soon. Lusinchi already has decided on his successor the El Nacional reported. Central Bank officials were not available for comment. Banking sources said Anzola differed with the Finance Ministry over economic policy particularly over the direction of interest rates. He favoured raising the rates which are currently well below the annual inflation rate of 33.2 pct. But the sources said he ran into opposition from Finance Ministry and government officials who thought an interest increase would fuel inflation. REUTER | PAPERS SAY VENEZUELAN CENTRAL BANK CHIEF TO RESIGN |
Bundesbank adds money market liquidity at 3.70-3.80 pct -dealers |
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French Finance Minister Edouard Balladur issued a firm call for the continued faithful application of the Louvre accords on currency stability by all major industrial countries. Balladur responding to weekend remarks by U.S. Treasury Secretary James Baker that the U.S. Would take another look at the accords said I firmly desire a faithfull and firm adherence by all the major industrial countries to the Louvre accords -- in both their letter and spirit. On Sunday Baker said last weeks rise in short-term West German interest rates was not in keeping with the accords. The Louvre accords agreed in Paris last February called for stability among the major currencies after a prolonged dollar slide. The accords were reaffirmed by the Group of Seven Finance Ministers in Washington last month. But Baker said at the weekend that the West German rate rise was not in keeping with the spirit of what we agreed to. What Im really saying is that they should not expect us to simply sit back here and accept increased tightening on their part on the assumption that somehow we are going to follow them he added. REUTER | BALLADUR INSISTS ON MAINTENANCE OF LOUVRE ACCORDS |
<Hyundai Auto Canada Inc> a unit of South Koreas Hyundai Motor Co <HYUN.SE> is expected to award Chemical Asia Ltd a mandate later this week to arrange a 100 mln U.S. Dlr loan banking sources said. The nine-year loan will carry interest of 1/4 point over the London interbank offered rate. No other details were available. A Chemical spokesman declined comment. REUTER | HYUNDAI AUTO CANADA TO RAISE 100 MLN DLR LOAN |
King Baudouin is expected to accept the resignation of Belgian Prime Minister Wilfried Martenss centre-right coalition government after last-ditch talks failed to solve a language row state-run RTBF radio said. The King could ask Martens or another political leader to put together a new government or to form a caretaker administration with elections at the end of November or in early December. The King has so far withheld a decision on whether to accept the resignation last Thursday of Martenss coalition of Dutch and French speaking parties over the linguistic conflict. Martens has used the breathing space to try to put together a compromise solution but RTBF and the Belgian news agency Belga said leading ministers ended their talks early on Monday morning without agreement. The resignation of the government will no doubt be accepted by the King in the near future RTBF said. The King has no formal deadline for announcing his decision but has been widely expected to do so on Monday. Reuter | BELGIAN KING SEEN ACCEPTING GOVERNMENT RESIGNATION |
<Williams Holdings Plc> said it has mandated Barclays de Zoete Wedd Ltd to arrange a 100 mln stg multiple option facility on a committed basis. The facility will be fully underwritten and have a maturity of five years which can be extended by the borrower under an evergreen option. The facility will also include a tender panel for short term sterling acceptances or multi-currency cash advances. Drawings under the committed standby will be at a margin of 0.10 pct per annum and banks will receive an underwriting fee of 0.0625 pct. The facility will have a utilisation fee of 0.025 pct if more than 25 pct is drawn. Banks are being invited to join the facility at 10 mln stg for 0.05 pct and at five mln stg for 0.04 pct. There will be a renewal fee of 0.01 pct under the evergreen option. REUTER | WILLIAMS HOLDINGS SEEKS MULTIPLE FACILITY |
The main road between Kampala and the Kenya border Ugandas most important trade artery reopened to civilian traffic on Saturday after rebels who closed it on Friday disappeared back into the bush travellers said. The governments National Resistance Army (NRA) closed the road on Friday after the rebel Holy Spirit Movement of priestess Alice Lakwena reached a village on the road said. But by the time NRA reinforcements arrived the rebels had disappeared into thick forest. The road and a parallel railway line which closed last weekend carry 90 pct of Ugandas foreign trade to the Kenyan port of Mombasa. REUTER | MAIN UGANDA-KENYA ROAD REOPENS AS REBELS DISPERSE |
Iran warned the United States on Monday against exacerbating the Gulf crisis saying it would endanger American interests. Tehran Radio monitored by the British Broadcasting Corporation said a spokesman for Irans War Information Headquarters was responding to U.S. Officials remarks about taking military action against Iran. The radio also quoted an Iranian Foreign Ministry spokesman as saying Iran would respond decisively to any aggressive measure by the United States. The radio said the spokesman made the statement following the attack on a Kuwaiti ship under the U.S. Flag and comments by American officials on carrying out retaliatory action against Iran. The spokesman said Any U.S. Military aggression against Iran will certainly be the beginning of an extensive clash in the Persian Gulf and amidst this our principled policy is to confront any act which escalates tension. REUTER | IRAN WARNS U.S. AGAINST RAISING TENSION IN GULF |
Leading German shares open roughly eight pct lower on Frankfurt bourse - dealers |
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Norways current account showed a 9.9 billion crown deficit for the first seven months of 1987 against a 19.7 billion crown deficit for the same year-ago period the Central Bureau of Statistics said. North Sea oil and gas revenues rose 3.4 pct to 32.6 billion crowns in the January to July period compared with 31.5 billion in the first seven months of 1986. REUTER | NORWAY'S CURRENT ACCOUNT IN DEFICIT |
Paribas shares slump 12 pct to 363.30 francs on Paris bourse - dealers |
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The West German Finance Ministry declined to comment on weekend criticism by U.S. Treasury Secretary James Baker of recent West German interest rate increases. Baker said the U.S. Would re-examine the February Louvre Accord to stabilise currencies reached by leading industrial democracies. The rise in West Germany short term interest rates was not in the spirit of an agreement by these nations in Washington which reaffirmed the Louvre pact he said. A Finance Ministry spokesman asked for an official ministry reaction to Bakers remarks said he could make no comment. REUTER | BONN MINISTRY HAS NO COMMENT ON BAKER REMARKS |
<Raffles City Pte Ltd> said it signed a 10 year note issuance facility (NIF) on Monday to raise 500 mln Singapore dlrs. Proceeds of the issue would enable Raffles City to tap cheaper funds from the market to refinance its existing borrowings a press statement said. The NIF is lead managed by two major local banks the Development Bank Of Singapore Ltd and the Overseas Chinese Banking Corp. REUTER | SINGAPORE'S RAFFLES CITY SIGNS 500 MLN DLR NIF |