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Agriculture Ministry officials said they are not considering cuts in import duties on chocolate to help ease friction with the United States over agricultural trade. Japan has already lowered the duties sharply and we must consider domestic market conditions an official said. Duties on chocolate were cut to 20 pct from 31.9 pct in April 1983. Washington has been demanding a cut to seven pct equivalent to its own duties ministry sources said. Japanese chocolate imports rose to 8285 tonnes in calendar 1986 from 5908 in 1985 official statistics show. However the ministry sources added it is possible the government may make further cuts in response to strong U.S. And European demand. Due to concern about the farm trade row with the U.S. Top-level government officials may press the ministry to cut the duties one said. But he said it would be difficult for Japan to resolve its overall trade row with Washington and reduce its trade surplus which reached 58.6 billion dlrs in 1986. Agricultural trade issues between Japan and the U.S. Include Japanese import restrictions on 12 farm products. REUTER | JAPAN DENIES PLANS TO CUT DUTIES ON CHOCOLATE |
Indias state-owned Oil India Ltd (OIL) said it received a 3.5 billion yen credit under an agreement signed with Dai Ichi Kangyo Bank of Tokyo last week. A statement from OIL said the 10-year loan carries a rate of interest 0.5 pct below Japanese long term prime. The loan to finance imports of plant machinery and raw materials will be repaid in nine equal instalments from the seventh year. The credit is the first foreign commercial loan raised by OIL. It was arranged under a bilateral treaty to avoid double taxation it said. REUTER | INDIAN OIL FIRM GETS 3.5 BILLION YEN CREDIT |
German February industrial output rises 3.2 pct (January fall 3.4 pct) - official |
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An international protocol to severely limit the use of industrial chemicals which are believed to damage the earths protective ozone layer could be signed this year officials and scientists here said. By the end of this year we should have an international protocol in place we can all be proud of U.S. Environmental protection agency officer Bill Long told reporters. The chemicals are chiefly chlorofluorocarbons (CFCs) which are used in refrigeration and making foam plastics solvents and aerosols. The earths upper ozone layer absorbs most of the harmful ultraviolet rays from the sun. The officials and scientists were meeting in Tokyo ahead of an international conference on the problem later this month in either Vienna or Geneva Long said. Robert Watson a program manager for atmospheric problems at the U.S. National Aeronautics and Space Administration said a protocol should demand an initial freeze on the use of CFCs by industry. This should be followed by a gradual reduction in CFC volume until no CFC gases are released into the air he said. The U.S. Has already banned use of use CFCs in aerosols and Japan has asked for voluntary restraint but both still use CFCs in industrial processes. REUTER | INTERNATIONAL PACT ON OZONE DAMAGE LIKELY IN 1987 |
The Asian Development Bank (ADB) will open an office in Jakarta later this year to speed up work on Indonesian projects bank Vice-President S. Stanley Katz said. We have very large projects in Indonesia and we would like to accelerate their implementation Katz told Reuters. Indonesia is the largest recipient of ADB lending. It received 118 loans worth 3.7 billion dlrs for 112 projects between 1968 and 1986 19.0 pct of the ADBs total lending. Ordinary capital resources (OCR) lending to Indonesia was 3.6 billion dlrs 27.1 pct of OCR loans at end-December 1986. Jakarta has also received loans worth 162 mln dlrs from the banks Asian Development Fund. ADB sources said Indonesias cumulative disbursements at end-1986 amounted to only 1.1 billion dlrs or 30 pct of loans received. Project implementation is very slow in Indonesia and we are not very satisfied with the pace. We hope the new office might help Gunther Schulz ADB Vice-President in charge of projects said. Planned projects were further slowed down in 1986 because of the countrys budgetary problems he added. Indonesias revenue from oil exports was cut in half last year. Decision making is quite slow complicated and very centralised Schulz told Reuters. Indonesian President Suharto set up a high-level team in July last year to speed up projects using ADB funds. ADB sources said bank staff have been stationed intermittently in Jakarta in response to government requests. The Jakarta office will be the third ADB office outside its Manila headquarters. The bank has a resident office in Dhaka and a South Pacific regional office in Vanuatu. REUTER | ASIAN DEVELOPMENT BANK TO OPEN INDONESIA OFFICE |
Money market rates rates showed a harder edge after news U.K. Chancellor of the Exchequer Nigel Lawson has set a target for the pound against the mark and dollar to be maintained by a mixture of interest rates and intervention in the foreign exchange markets. Dealers said the market was surprised by the Chancellors disclosure of sterling target rates around 2.90 marks and 1.60 dlrs and nervous over the implications for domestic interest rates further reducing the propects for a near term cut in U.K. Bank base rates. The key three months interbank sterling rate gained 1/16 point at 10 9-7/8 pct. The pound opened three basis points lower at 71.3 in trade weighted terms at around 1.59 dlrs and 2.91 marks. REUTER | U.K. MONEY RATES HARDEN ON LAWSON CURRENCY TARGETS |
West German industrial production seasonally adjusted rose a provisional 3.2 pct in February after a downwards revised decline of 3.4 pct in January the Economics Ministry said. The ministry had originally estimated that industrial production fell 3.0 pct in January. The February figure is likely to be revised upwards by just under one percentage point next month when the March figure is released a ministry statement said. The industrial production index base 1980 stood at a provisional 104.1 in February against 100.9 in January and 104.5 in December. The ministry had previously put the January and December indices at 101.6 and 104.7 respectively. In February 1986 the output index had stood at 103.7 producing a year-on-year rise for February 1987 of 0.4 pct. The February rise in production was aided by a sharp 19 pct increase in construction output compared with January when production in many industrial sectors was depressed by unusually severe winter weather. Manufacturing industry registered a 3-1/2 pct rise in production in February compared with January. But energy sector output fell nine pct and mining production declined seven pct. The ministry which considers two-monthly comparisons to be a better guide to trends said output in January and February together fell around two pct against November and December. The ministry said construction output fell 13-1/2 pct in January/February against November/December due to the cold January weather. Output in the energy sector rose four pct and mining output 10 pct. Manufacturing industrys production fell 1-1/2 pct in January/February compared with November/December. Within this sector the output of both basic products and of food tobacco and alcohol fell 1-1/2 pct. Production of capital goods fell 2-1/2 pct while output of consumer goods was unchanged. Compared with the same months of 1986 industrial production in January and February 1987 fell 1-1/2 pct the ministry said. Manufacturing industry output fell one pct with output of basic products down three pct capital goods down one pct and food tobacco and alcohol production 1-1/2 pct lower. Makers of consumer goods posted a 1-1/2 pct year-on-year rise in the two-month period. In other industrial sectors mining production fell four pct and construction output 4-1/2 pct. The energy sector saw a slight 1/2 pct rise the ministry added. REUTER | GERMAN INDUSTRIAL OUTPUT RISES 3.2 PCT IN FEBRUARY |
Reckitt and Colman plc pretax profits 1986 yr 145.11 mln stg vs 123.39 mln |
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A Japanese businessman announced plans for a new telecommunications firm in which Britains Cable and Wireless Plc would be a core company. However the plan unveiled by senior Federation of Economic Organizations official Fumio Watanabe does not specify what stake Cable and Wireless would have. The share holdings of the core companies should be equal Watanabe said in a statement. The actual percentage of shareholdings should be agreed by the core companies. He said the eight core companies will provide directors for the firm. The new company shall immediately set to work on the feasibility study of constructing a new cable for itself Watanabe said. Watanabe has acted as mediator between two rival groups one of which included C and W seeking to compete against <Kokusai Denshin Denwa Co Ltd> which now monopolizes Japans overseas telephone business. The Post and Telecommunications Ministry has said it wants only one competitor to KDD and has backed Watanabes efforts. A British source who declined to be identified further said the proposals could open the door to further talks between C and W <CAWL.L> and the other firms involved. C and W had earlier rejected a reported proposal which would have given it a five pct share in the new telecommunications firm compared to the less than three pct stake Watanabe originally proposed. C and W has a 20 pct stake in one of the two firms Watanabe has proposed should merge. The British source said the decision not to specify the exact shareholdings of the core companies could leave the door open for further discussion. Its probably a sensible approach on their part the British source told reuters. C and W has also been pushing hard for permission to lay a new cable between Japan and the U.S. The proposed merger has sparked an international row with British government sources threatening retaliatory action against Japan for what they see as discriminatory practices against foreign firms. The sources said last Friday that one option for Britain would be to revoke licenses of Japanese banks and securities companies operating in London. The U.S. Has also attacked the original merger plans saying that both rival consortia should be licensed. Asked about participation by other U.S. And European firms Watanabe said They will not be core companies but if they wish they could participate. Under the Japanese law total foreign participation would be limited to one-third. It might be wise for C and W to join the new firm which has the support of many influential backers and work within this for the realization of their ideas Watanabe told reporters. The other core firms are Mitsubishi Corp <MITT.T> Mitsui and Co <MITS.T> Sumitomo Corp <SUMT.T> Matsushita Electric Industrial Co <MC.T> Toyota Motor Corp <TOYO.T> C Itoh and Co <CITT.T> and <Pacific Telesis International Inc>. Watanabe said that his latest proposal represented his final effort. If it fails to satisfy the British government it will be up to the Japanese government to explain its position he said. REUTER | C AND W OFFERED ROLE IN NEW JAPAN TELECOM COMPANY |
The Bank of France is to inject liquidity against first category paper at a tender this afternoon a Bank spokesman said. Money market sources were divided as to whether they thought the Bank of France would use the occasion to cut its intervention rate which has stood at 7 3/4 pct since it was cut from eight pct on March 9. Some thought a rate cut unlikely given foreign exchange turbulence and the U.S. Prime rate rise to 7 3/4 pct while others still counted on a 1/4 point cut by the Bank of France. REUTER | BANK OF FRANCE TO BUY FIRST CATEGORY PAPER TODAY |
FIRS 87/88 EC BEET SUGAR ESTIMATE UNCHANGED 12.63 MLN TONNES WHITE EQUIVALENT |
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Hertz Realty Corp is issuing a 75 mln Canadian dlr bond due April 30 1993 paying nine pct and priced at 100-3/4 pct syndicate sources said. The non-callable bond is guaranteed by Hertz Corp. It is available in denominations of 1000 and 10000 Canadian dlrs and will be listed in Luxembourg. The selling concession is 1-1/4 pct while management and underwriting combined pays 5/8 pct. The payment date is April 30. REUTER | HERTZ REALTY ISSUES 75 MLN CANADIAN DLR EUROBOND |
The Bank of England said it forecast a shortage of around 800 mln stg in the money market today. Among the main factors affecting liquidity bills for repurchase by the market will drain some 664 mln stg while bills maturing in official hands and the take-up of treasury bills will take out around 508 mln stg and a rise in note circulation some 45 mln stg. Partly offsetting these outflows exchequer transactions and bankers balances above target will add some 380 mln stg and 35 mln stg to the system respectively. REUTER | U.K. MONEY MARKET DEFICIT FORECAST AT 800 MLN STG |
Soviet deputy prime minister Alexei Antonov begins two days of economic talks in Bonn that will include discussions on Soviet-West German joint ventures. Antonov and West German Economics Minister Martin Bangemann are heading their respective delegations to the joint commission on economic scientific and technical cooperation. The main point of the round will be Soviet economic reforms new forms of economic cooperation joint ventures and cooperation in construction government spokesman Friedhelm Ost said. REUTER | SOVIET MINISTER IN GERMAN JOINT VENTURE TALKS |
The 2500 tonnes of sugar offered to intervention in the Netherlands has been refused by the intervention board because of wrong packaging a spokeswoman for the Ministry of Agriculture said. She said the sugar could be offered again to intervention. EC producers have threatened to sell over 800000 tonnes of sugar to intervention stocks as a protest against EC export licensing policies. Last month Dutch traders said the sugar on offer in the Netherlands was Belgian but the ministry could not confirm this. REUTER | SUGAR OFFERED TO DUTCH INTERVENTION REFUSED |
Taiwan said its foreign reserves suffered about 3.4 billion U.S. Dlrs in exchange rate losses from July 1986 to February 1987 as a result of the rise of the Taiwan dollar against the U.S. Currency. Yu Chien-ming head of the government statistics department told parliament yesterday he expected the losses to increase as the Taiwan dollar continues to strengthen. The Taiwan dollar which opened at 34.24 to the U.S. Dollar today has risen about 16 pct against the U.S. Unit since September 1985. Some bankers expect it to rise to 33 by June and to 32 by the end of this year. Taiwans foreign exchange reserves now total 53 billion dlrs. At end-February they were 52.1 billion dlrs the worlds third largest after West Germany and Japan. Yu said the interest earned from the reserves totalled about 1.68 billion U.S. Dlrs from July 1986 to February 1987. The reserves are managed by the central bank and deposited at about 170 leading banks in the U.S. Japan Britain Canada and Singapore. About 75 pct of the reserves are in the form of cash mostly in U.S. Dollars. The rest are in government treasury bills certificates of deposit and bonds. REUTER | RISING TAIWAN DOLLAR CAUSES FOREIGN RESERVES LOSS |
The agreement between the U.S. And the European Community (EC) on special imports of maize and sorghum provides an equal chance for all non-EC countries to supply the Spanish market an EC Commission spokeswoman said. She denied that any unpublished clause of the agreement guaranteed the bulk of the maize export business would go to the U.S. As one EC official told Reuters yesterday. Under the agreement the EC will import two mln tonnes of maize and 300000 tonnes of sorghum a year into Spain at specially reduced levy rates for the next four years. The Commission has yet to decide whether the maize will come in through direct purchases by the Spanish intervention board or by a tender system. REUTER | EC DENIES MAIZE EXPORTS RESERVED FOR U.S. |
Interest rates on the London money market were slightly firmer on news U.K. Chancellor of the Exchequer Nigel Lawson had stated target rates for sterling against the dollar and mark dealers said. They said this had come as a surprise and expected the targets 2.90 marks and 1.60 dlrs to be promptly tested in the foreign exchange markets. Sterling opened 0.3 points lower in trade weighted terms at 71.3. Dealers noted the chancellor said he would achieve his goals on sterling by a combination of intervention in currency markets and interest rates. Operators feel the foreign exchanges are likely to test sterling on the downside and that this seems to make a fall in U.K. Base lending rates even less likely in the near term dealers said. The feeling remains in the market however that fundamental factors have not really changed and that a rise in U.K. Interest rates is not very likely. The market is expected to continue at around these levels reflecting the current 10 pct base rate level for some time. The key three months interbank rate was 1/16 point firmer at 10 9-7/8 pct. | U.K. MONEY RATES FIRM ON LAWSON STERLING TARGETS |
The Danish Banks Association announced a plan to help depositors in the small Sixth of July Bank (6. Juli Banken A/S) which ceased payments on March 23 after the Government Bank Inspectorate said provisions were too low. The Association said in a statement that its 80 members would give full cover for private deposits up to 50000 Danish crowns with 80 pct cover for deposits between 50000 and 100000 crowns and for special pension savings accounts up to 500000 crowns. Non-pension deposits over 100000 crowns and business customers are not covered by the plan the statement added. REUTER | DANISH PLAN TO HELP CRISIS-HIT BANK DEPOSITORS |
Australia is risking wheat export sales by not providing enough specific quality grades to meet buyer requirements the Australian Wheat Board (AWB) said. Many AWB customers are becoming increasingly quality conscious demanding strict adherence to contractual quality specifications the board said in a submission to the Royal Commission into Grain Storage Handling and Transport. Many of the specifications are more specific than the current categories used in Australia it said. The commission is trying to identify ways of saving costs and boosting efficiency of the grain handling system. Australia must rely on quality to retain its wheat market share because its competitors are supplying cheaper but lower-quality grades the AWB submission said. It stressed the need to segregate wheat categories at every stage from receival to shipping. Better industrial relations at grain terminals more uniform transport systems across the states and extensive stock control were vital to improved marketing it said. The submission also said Australias federal system impeded the AWBs role of coordinating and managing the marketing of wheat. The AWB called for an end to physical and legislative constraints at state borders that prevent the efficient transport of grains to other states for shipment. It is essential that wheat moves by the most economic mode to the nearest efficient port irrespective of the state in which the wheat is grown or stored it said. For example wheat grown in northern New South Wales (NSW) might move more efficiently to Brisbane in Queensland than to Sydney or Newcastle in New South Wales it said. Similarly southern NSW wheat might better be shipped to Portland or Geelong in Victoria. Legislation giving state rail authorities a monopoly over grain shipments was one notable impediment it said. The AWB said the current approach of state-based bulk handling authorities is not essential although it said it favoured the authorities maintaining at least their current level of control of storage and transport as long as quality was maintained. An appendix on port loading costs showed it cost between 26500 and 34700 U.S. Dlrs to load a 50000-tonne vessel at various Australian ports compared with 21200 dlrs at Houston and 16300 at Port Cartier Quebec for a 60000-tonner. REUTER | AWB CALLS FOR TIGHTER WHEAT QUALITY CONTROLS |
Bayer world group 1986 pre-tax profit 3.30 billion marks (3.15 billion) - official |
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The Finance Ministry has asked trust banks to moderate their dollar selling trust banking sources said. A Ministry official told Reuters earlier this week the Ministry had recently surveyed foreign exchange transactions by institutional investors but he declined to say whether this was aimed at moderating the dollar sales. Dealers said institutional investors were reluctant to sell dollars aggressively today partly because of the Ministry monitoring. One senior trust bank source said that while sympathizing with the Ministry position the trust banks had to conduct their foreign exchange operations according to the dictates of the market. A Bank of Japan official said the central bank approved of the survey as long it was not used too forcefully. But another official denied local press reports that the central bank itself had asked investors to moderate their dollar sales. We are not legally authorized to do that he said. A Bank of Japan official also said the central bank will renew its call on financial institutions to moderate excessive loans for the purpose of land and securities investment as such investments threaten to cause inflation. Bank of Japan Governor Satoshi Sumita had previously expressed concern about excessive investment in land and securities resulting partly from eased credit conditions. REUTER | JAPAN MINISTRY ASKS TRUST BANKS TO CUT DLR SALES |
The maximum rebate granted at yesterdays European Community (EC) sugar tender marked no change in policy towards producers complaints that they are losing money on exports outside the EC EC commission sources said. They said this was despite the fact that the commission accepted over 785000 tonnes of sugar into intervention yesterday from traders protesting that rebates are being set too low. The maximum rebate at yesterdays tender was 46.864 Ecus per 100 kilos up from 45.678 Ecus the previous week. London traders said yesterday the rebate was the largest ever granted. The commission sources said today the increase was entirely explained by world market conditions. The amount by which the rebate fell short of what producers claim is needed to obtain an equivalent price to that for sales into intervention remained at 0.87 Ecus per 100 kilos they said. Operators offered a total of 854000 tonnes of sugar into intervention last month to protest at rebates which they said were too low. The sources said about 706470 tonnes of French sugar and 79000 tonnes of German sugar had been accepted the remainder being rejected as of too low quality. The sources noted the operators could withdraw their offers in the five week period between the acceptance of the sugar and payment for it. They said they saw no sign of planned withdrawals as yet adding that they would expect operators to wait another week or two to review commission policy before making up their minds. The sources said the commission felt entitled to offer rebates at slightly below the level theoretically justifiable in the light of its 1987/88 farm price package proposal to reduce guaranteed prices for sugar by two pct from the start of the new season in July. REUTER | EC SUGAR TENDER SAID TO MARK NO CHANGE IN POLICY |
Kenyas late coffee crop is flowering well but the main coffee areas were generally dry and hot in the week ended Wednesday trade sources said. Machakos Embu Meru and Kirinyaga in eastern Kenya and Nyeri and Thika in central have been dry in the past week. The farmers expect rain this week. If it does not fall output of the late (October-November-December) crop will decline sharply one source said. He said that since most growers did not irrigate their crop they could do nothing but wait for rain the main factor which determines Kenyan coffee production. Two months ago the International Coffee Organization issued a forecast of Kenyan exportable coffee production in the 1986/87 (Oct-Sept) season at 1.82 mln bags. REUTER | KENYAN COFFEE NEEDS RAIN, TRADERS SAY |
Two days of talks between management and unions to try to end the 3-1/2 month labour dispute at Cargill U.K. Ltds oilseed crushing plant at Seaforth ended yesterday without resolving the situation a company spokesman said. Fresh talks are expected to be held early next week but the actual date has not yet been fixed he added. Oilseed processing at the mill has been at a standstill since December 19 and the company has declared force majeure for deliveries of soymeal and soyoil ahead to May. REUTER | CARGILL U.K. STRIKE TALKS BREAK OFF WITHOUT RESULT |
Prices rose at the fortnightly export auction here on March 25 for sales of 1907.1 tonnes of coffee from the 1986/87 and 1985/86 crops out of a total offering of 1940.7 tonnes the Coffee Board said. Withdrawals amounted to 33.6 tonnes. The type and grade quantity sold average prices in rupees per 50 kilos exclusive of sales tax with previous prices at the March 11 auction in brackets - 1986/87 crop Plantation A 592.2 1284.50 (1223.50) Plantation B 74.1 1095.50 (1122.00) Plantation C 208.2 1019.00 (1017.50) Arabica Cherry AB 33.3 976.50 (NA) Arabica Cherry PB 22.5 949.00 (NA) Arabica Cherry C 58.2 889.50 (NA) Robusta Cherry AB 90.9 1256.00 (NA) Robusta Cherry PB 43.8 1039.50 (NA) Robusta PMT AB 49.2 1255.50 (NA) Robusta PMT PB 13.5 1200.00 (NA) REP Bulk A 93.9 1057.50 (908.50) REP Bulk B 256.5 1079.00 (930.00) Robusta Cherry Bulk 40.2 1082.50 (NA) Robusta Cherry C 9.0 997.00 (NA) Robusta Cherry BBB 9.6 700.00 (NA) 1985/86 crop Arabica Cherry AB 123.3 961.00 (951.50) Arabica Cherry BBB 160.8 635.50 (613.50) Robusta Cherry BBB 4.2 735.00 (704.50) Monsooned coffee Monsooned Robusta AA 23.7 1265.50 (NA) REUTER | PRICES RISE AT BANGALORE COFFEE AUCTION |
Hong Kong Land Co Ltd <HKLD.HK> said it might look for overseas investments and that could lead it to consider re-registering in Bermuda. Asked if Hong Kong Land had any plans for investment overseas a spokesman said Not at the moment. Its a long-term concept. The London newspaper Daily Telegraph yesterday quoted Simon Keswick chairman of Hong Kong Lands parent company Jardine Matheson Holdings Ltd <JARD.HK> as saying the company was at a crossroads because the last of its non-property assets will soon be spun off. Hongkong Lands residential properties have also been sold leaving the firm largely with commercial property in the main business district of the British colony. If we cant find any opportunities we might have to look abroad Keswick was quoted by the newspaper as saying. A re-registration in Bermuda would be largely to shelter overseas income from Hong Kong taxes analysts said. Jardine Matheson reincorporated in Bermuda in 1984 in a move that raised fears over the colonys political future and stunned the local stock market. That response was not repeated when <Dairy Farm International Holdings Ltd> then a Hongkong Land subsidiary and <Mandarin Oriental International Ltd> soon to be spun off from Land announced plans for similar re-registrations. Jardine Strategic Holdings Ltd <JSH.HK> another Jardine subsdidiary is also registered in Bermuda. REUTER | HONGKONG LAND MAY SEEK RE-INCORPORATION IN BERMUDA |
The U.K. Exported 517600 tonnes of wheat and 315800 tonnes of barley in the first 25 days of March the Home Grown Cereals Authority (HGCA) said quoting provisional Customs and Excise figures. This brought combined wheat and barley exports since the season started on July 1 to 7.60 mln tonnes substantially up on the 4.02 mln exported in the same 1985/86 period. This seasons total comprises 3.94 mln tonnes of wheat and 3.66 mln barley compared with 1.63 mln and 2.39 mln respectively a year ago. REUTER | U.K. GRAIN EXPORTS CONTINUE TO RISE SHARPLY |
Indias credit policy package for fiscal 1987/88 (April-March) will help ease inflationary pressures and control the growth of overall liqudity the Reserve Bank of India (RBI) said in a statement. The package announced earlier this week will raise commercial bank statutory liquidity ratios to 37.5 pct from 37 pct effective April 25 and will increase cash reserve ratios on foreign currency (non-resident) accounts to 9.5 pct from three pct effective May 23 it said. Excess liquidity pushed wholesale and consumer retail prices higher in 1986/87 on previous year levels RBI governor R. N. Malhotra said in a statement. Malhotra said Indias M-3 money supply grew 209.24 billion rupees in the fiscal year to March 13 compared to a growth of 155.38 billion in the same period the year before. Commercial bank aggregate deposits rose to 164.10 billion in the same period against 120.66 billion in the corresponding months of fiscal 1986/87 he said. The Finance Ministry in a report issued in February predicted Indias fiscal 1986/87 wholesale price-linked inflation rate at about 6.5 pct against 3.8 pct in 1985/86. REUTER | INDIA'S CREDIT POLICY AIMS TO CONTROL LIQUIDITY |
BANK OF FRANCE SELLS 8.45 BILLION FRANCS OF TREASURY TAP STOCKS - OFFICIAL |
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China opened its fifth securities market yesterday in Tianjin but share issues and share trading are no longer on the agenda of economic reform official newspapers and Western diplomats said. One Western diplomat said share issues are on the backburner because they are ideologically too sensitive. The Peoples Daily said last month that trading shares is not compatible with socialist materialist civilisation. The newly opened market traded bonds in four state-owned firms and buyers outnumbered sellers the China Daily said. Chinas first securities market since 1949 opened last August in Shenyang followed by markets in Shanghai in September and in Peking and Harbin this year. They trade mostly bonds. Bonds are all right. There is no risk to the holder and there is no question of his having any ownership stake in the firm the diplomat said. The Peoples Daily article said joint stock companies might not be the way to reform large and medium-size state firms nor the model for reforming Chinas ownership system. Share issues would make the workers owning them think only of the economic advantage of their own firms rather than the nation as a whole the Peoples Daily said. As late as December officials were pushing the idea of share issues as a way to channel excess cash in the economy into production reduce the states investment burden and motivate share-owning employees to work harder. In November Liu Hongru deputy governor of the Peoples Bank of China told a delegation from the New York Stock Exchange that a long-term funds market should be built up with stocks and bonds issuance as the main form. Stocks and bonds should be issued through banks trust and investment companies ... The transfer of securities should be conducted through financial institutions ... The opening up of secondary markets should be studied after trials and experiments Liu said. The subject of share issues and trading was widely covered in the official press last year usually in a positive way. One of the most far-reaching proposals came from a Peking university professor. He said all but essential state firms should become joint stock holding companies with the state holding a controlling share that could be as low as 33 pct. The professor argued this would separate government administrators from managers of the firms a key goal of Chinas reforms. He said his plan would make the companies independent units under a board of directors. The diplomat said the dropping of share issues may be the result of conservative backlash since the January resignation of reformist Communist Party chief Hu Yaobang. He said share issues raise sensitive questions: What happens if the value falls? People are not used to this and may be dissatisfied. What happens if a person gets very rich through share ownership? The government does not want disparity in income. One Chinese journalist said conditions are not ripe for widespread share issues. In China the success or failure of a firm does not entirely lie within its own hands. There are many external factors beyond its control he said. To make share purchasing attractive you need a secondary market and perhaps speculators he said. But speculation is not acceptable in China. Asked if there are political reasons for putting aside share issues he said that in China economics and politics cannot be separated. There is a very major review of the economic reforms going on. There are political factors involved the journalist said. If the economy runs well this year the political pressure will be less. Comments by officials of the new Tianjin market echoed his caution. The China Daily quoted one official as saying China does not intend to develop stock exchanges equivalent to those in the West while it has a socialist economic system. Given the special circumstances of our country we must approach the new phenomenon in a contemplative and comprehensive way so as to guide trading onto a healthy track he said. REUTER | CHINA TAKES SHARE TRADING OFF REFORM AGENDA |
Chemicals group Bayer AG <BAYG.F> said it expects to post another good result in 1987 after raising pre-tax profit to a new record high in 1986. The company said that this was despite the marks further strengthening against the dollar and other currencies and despite an increase in competitive pressure. The further progress of our business will depend largely on the extent to which threats to free trade materialise and on the developments of exchange rates raw material and energy costs. Bayer said world group pre-tax profit rose to 3.30 billion marks in 1986 exceeding the previous years record of 3.15 billion. Parent company pre-tax profit increased to 1.72 billion from 1.62 billion. The company gave no net profit figures or any indication of the likely 1986 dividend. Bayer paid a 10-mark dividend on 1985 results up one mark from a year earlier. Bayer said that world group operating profit declined slightly in 1986 against 1985 but non-operating results showed a further improvement. Bayer said that the decline in world group turnover to 40.75 billion marks from 45.93 billion in 1985 reflected mainly the sharp fall in the dollar against the mark. Lower prices on the raw material side had also brought pressure on selling prices it added. In volume terms however 1986 sales rose slightly against 1985 the company said without giving details. The western Europe North America and Far East regions developed well in local currency but here too the translation of local currency sales into marks distorted the picture especially in the case of North America it said. Bayer said parent company volume sales were also higher in 1986 although turnover fell 4.3 pct to 16.77 billion marks. Capacity use was high at the parent company in 1986 resulting in a decline in marginal unit costs. This combined with savings in raw material and energy costs helped offset falling prices and cost increases in other areas. The rise in pre-tax parent company profit was due to lower extraordinary expenses and higher net interest income. Plastics organic chemicals polyurethanes and coating raw materials all developed well it said. Turning to the 1986 fourth quarter Bayer said that world group turnover fell to 9.67 billion marks in the last three months of 1986 from 10.43 billion in the same 1985 period. Parent company turnover in the fourth quarter fell 7.1 pct to 3.69 billion marks with domestic turnover 4.1 pct lower and foreign turnover 8.6 pct lower. Exports accounted for 65.3 pct of turnover in the quarter against 66.4 pct in the same quarter of 1985. REUTER | BAYER CONFIDENT OF POSTING GOOD 1987 RESULTS |
UK reserves rise underlying 1.785 billion dlrs in March - official |
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The new Singapore government securities market will start trading in late April or early May after President Wee Kim Wee signs the Development Loan Bill approved by parliament last week bankers said. But the new market is unlikely to attract many overseas investors particularly as non-residents will be subject to a withholding tax on interest earned Loh Hoon Sun general manager of <Overseas Union Bank Ltd> said. Overseas Union Bank Ltd is one of the five primary dealers approved to underwrite the auctions and ensure liquidity. The Monetary Authority of Singapore (MAS) which approved the five underwriters aims to issue seven billion dlrs of treasury bills notes and bond issues in the first year. A MAS spokesman said a steering committee has yet to determine details but most of the new government securities will have a maturity of up to five years and 10-year paper may be issued if demand emerges. Bonds and treasury bills will be issued in denominations of 1000 dlrs and treasury bills in a minimum denomination of 10000 dlrs. Bankers said these rates will put the securities within reach of almost everyone and will create a more active market. Allocations will be made first for non-competitive bids from primary dealers prepared to accept average yields on up to 500000 dlrs worth of notes and bonds and an unlimited volume of treasury bills. The remainder will be awarded to competitive bidders offering the lowest yields. The new market should stimulate the local economy. Funds will come from savings and fixed deposit accounts but just how much will depend on the bond yields Loh told Reuters. Loh said bank interest rates currently stand at 3.0 to 3.5 pct for fixed deposits and the prime rate is 5.5 pct and these rates are expected to remain fairly steady this year. An act of parliament passed last week granted the Singapore authorities permission to raise 35 billion dlrs in the new market over the next four years. Trading will be computerised and scripless. REUTER | NEW SINGAPORE FINANCIAL MARKET SET TO OPEN |
Britains gold and currency reserves showed an underlying rise of 1.785 billion dlrs in March after a 287 mln dlr rise in January the Treasury said. This was considerably above market expectations for a 650 mln dlr rise. The underlying trend which is a guide to Bank of England operations to support the pound on foreign exchanges is net of borrowings and repayments. The Treasury declined comment on the figures. Last month it said the Bank of England took the opportunity of strong demand to rebuild reserves after losses last autumn. Actual reserves rose by 1.89 billion dlrs after rising 305 mln in February to 22.26 billion. Total reserves were revalued to 27.04 billion dlrs but would have totalled 24.15 billion under the previous valuation the Treasury said. Gold reserves were revalued by 895 mln dlrs while SDRs ECU and convertible currency holdings were revalued by 1.995 billion. Accruals of borrowings under the exchange cover scheme were 361 mln dlrs last month after 36 mln in February. Repayments were 240 mln dlrs after the previous 16 mln. Capital repayments totalled 14 mln dlrs after Februarys two mln dlrs repayment. REUTER | U.K. RESERVES SHOW LARGE UNDERLYING RISE IN MARCH |
Zambias marketed maize production will probably fall to less than 630000 tonnes in 1986/87 (May-Apr) from 918000 last year because of poor rainfall in major producing areas Agriculture Minister Kingsley Chinkuli said. He told Parliament that in the southern provinces the harvest would be over 50 pct down on the level in the previous marketing year. The nation would be lucky to produce over seven mln bags (630000 tonnes) of maize this year he stated. Chinkuli added that Zambia was setting up an irrigation fund with Canadian aid to lessen the effects of poor rainfall. REUTER | ZAMBIA EXPECTS SHARPLY REDUCED MAIZE CROP |
The Finance Ministry has asked commercial banks to moderate their dollar sales JiJi News Agency reported quoting financial sources. Finance Ministry officials were unavailable for comment. The report also could not be confirmed by several bank dealers. Earlier Japanese trust banking sources said the Ministry had asked them to moderate their dollar sales. A Ministry official said earlier this week the ministry had recently surveyed currency transactions by investors but declined to say whether this aimed at reducing their dollar sales. REUTER | JAPAN ASKS BANKS TO MODERATE DOLLAR SALES - JIJI |
Bank of Zambia general manager Michael Mwape has accused the International Monetary Fund of ignoring social conditions when drawing up its economic reform programmes for African countries. Mwape said in a speech to businessmen in the southern town of Livingstone yesterday that the IMFs approach had caused social and political unrest across the continent. There was widespread rioting and looting in Zambia last December after the government abolished subsidies on refined maize meal in line with IMF recommendations. Mwape said told businessmen The question which should be asked and answered when designing programmes is who is going to bear the brunt of adjustment ... And what cushion is available to minimise the burden ? Zambia has had five IMF adjustment programmes since 1976 the last of which was cancelled in February last year he said. In spite of these the economy has shown signs of stress with no significant improvement in a number of areas he added. Zambia has just completed a new round of IMF talks on its foreign exchange system and has obtained enough commercial loans to pay off its IMF arrears for 1985 and 1986 paving the way for a new stand-by credit. Zambian politicians have frequently criticised the fund however and diplomats say President Kenneth Kaunda faces consistent opposition inside the ruling partys central committee over dealings with the IMF. REUTER | ZAMBIAN CENTRAL BANKER CRITICISES IMF POLICIES |
Zimbabwes Grain Marketing Board has banned the packing of oilseeds in locally-made polypropylene bags and will supply jute bags instead board officials said. It said the quality of oilseeds such as soybeans groundnuts and sunflower seed packed in polypropylene bags deteriorated after two weeks. Zimbabwe began producing 10 mln polypropylene grain bags this year to replace jute bags imported mainly from Bangladesh. REUTER | ZIMBABWE BANS POLYPROPYLENE BAGS FOR OILSEEDS |
Japanese press reports said Prime Minister Yasuhiro Nakasone has said he may compromise on his controversial sales tax plan bowing to widespread opposition even within his own party. The reports said he told a meeting of supporters of his ruling Liberal Democratic Party today the proposed five pct tax should be amended if there was anything wrong with it. Officials were not immediately available for comment. Until now Nakasone had vowed to press on with the tax as part of his plan to reform Japans 36-year-old tax system. But most Japanese newspapers and news agencies quoted him as saying today he would not foist the tax on the Japanese people if they hated it. Opposition parties and some industry groups say the tax breaks Nakasone general election campaign promises last July and would discourage consumer spending needed to meet government pledges to try to stimulate economic growth. Pressure for the tax to be amended or shelved is likely to increase soon before a first round of local elections due on April 12 political analysts said. Resistance has spread from opposition parties and affected industries to the LDP. Some 36 of Japans 47 provincial governments have called for the plan to be scrapped or handled carefully government officials said. Some leading LDP candidates for the local polls have not asked Nakasone to make a campaign speech for them as they fear his presence would weaken their position in the elections. REUTER | NAKASONE SAID WILLING TO REVISE SALES TAX PLAN |
Guinness Plc <GUIN.L> said that as part of a new strategy for the company it will be selling its retail interests to concentrate resources on developing its international beverage businesses. Among the firms to be sold are Martins and Gordon Drummond pharmacies the 7-Eleven convenience stores speciality U.S. Food importer Richter Brothers and the health products company Natures Best/DSL. Guinness said in a statement that the companys strength was in its well known beer and spirits brands. Several had good brand development potential including Gleneagles Champneys Cranks Hediard and and Guinness publications. Guinness shares were trading at 323p after the announcement after closing yesterday at 317p. REUTER | GUINNESS TO SELL RETAIL INTERESTS |
About 8000 black miners returned to work after a week-long industrial action at South Africas largest gold mine mine owner Anglo American Corp of South Africa Ltd <ANGL.J> said. A spokesman for the mining house said the action started on Wednesday last week when thousands of miners staged a go-slow at One underground shaft of the Free State Geduld division of Free State Consolidated Gold Mines Ltd <FSCN.J>. The action later escalated into an underground sit-in at the mine over the weekend prompting management to close the affected shaft because of what the company described as the creation of unsafe working conditions. Anglo American spokesman John Kingsley-Jones said the company held talks with the National Union of Mineworkers (NUM) South Africas biggest trade union which claims a membership of 360000 black workers but failed to establish the cause of worker dissatisfaction. He acknowledged that the mine suffered a loss of production but declined to give estimates. Free State Consolidated last year produced 104 tonnes of gold from 28 underground shafts. The NUM was not immediately available for comment on the action. But a spokesman for the union earlier told the South African Press Association that miners had been locked out of the mine at the weekend after staging a strike in protest against being ordered to carry bags containing explosives as well as food for white miners. REUTER | INDUSTRIAL ACTION ENDS AT SOUTH AFRICAN MINE |
<San Miguel Corp> SMC and <United Coconut Planters Bank> UCPB have reached a compromise on a disputed block of 38.1 mln shares of SMC the head of a government panel that controls the sequestered shares said. Ramon Diaz Chairman of the Presidential Commission on Good Government (PCGG) told Reuters SMC had offered a price of 126 pesos per share for the block held in trust by the UCPB. It looks good Diaz said. But he added several issues including the identity of the ultimate buyers of the shares had to be resolved before the PCGG gave its approval to the sale. The PCGGs sequestration last year of 33 mln shares aborted SMCs bid to buy them back from 14 trading companies in the UCPB group. The commission said it suspected the shares were actually controlled by Eduardo Cojuangco an associate of former President Ferdinand Marcos. Cojuango who headed the boards of both SMC and UCPB when he fled last year after Marcos was toppled personally owned 24 mln shares in SMC. His holdings are also under sequestration. The shares that SMC now proposes to buy from the UCPB are owned by 1.4 mln coconut farmers Diaz said. Naturally we do not want them to go back into the hands of Marcos cronies. PCGG sources said a compromise would end a row over a down payment of 500 mln pesos made by SMCs Hong Kong subsidiary Neptunia Corp Ltd in a bid to buy back the shares last year. The UCPB had said the 500 mln peso payment would be forfeited because SMC Chairman Andres Soriano III had failed to fulfil his commitment to buy back the shares at an originally negotiated price of 3.3 billion pesos. PCGG sources said SMC the Philippines largest food and beverage manufacturer has agreed to sell 14 mln B class shares from the 38.1 mln shares to Australian brewer Alan Bond at a price of 150 pesos per share. The PCGG sources said of the proposed 4.79 billion peso transaction 1.6 billion pesos would be offset against the 500 mln peso down payment the 500 mln pesos worth of preferred shares in UCPB held by SMC 210 mln pesos in uncollected dividends on the UCPB shares and 400 mln pesos advanced to UCPB-controlled trading companies. The UCPB rejected an original offer of 100 pesos per share made by SMC for 33 mln shares which grew to 38 mln after a 15 pct stock dividend declared in June last year. A spokesman for SMC said the companys 15-member board met today to discuss the proposed compromise. The spokesman declined comment on the outcome of the board meeting saying the dispute was under arbitration. President Corazon Aquino last month asked SMC and UCPB to set up a three-man arbitration panel to resolve the ownership issue. The panel is due to submit its report by April 15. Eduardo de Los Angeles a government nominee in the SMC board filed a formal complaint before the Securities and Exchange Commission last week accusing Soriano and eight other directors of violating fiduciary duty. De Los Angeles was said to have opposed a decision by SMCs board last December to assume the 500 mln peso Neptunia loan. REUTER | COMPROMISE CITED ON SAN MIGUEL SHARES |
The Bank of France said it sold a total 8.45 billion francs worth of treasury tap stocks through its latest monthly tender at which it offered a choice of one floating rate and two fixed rate tranches. It sold 3.6 billion francs worth of the treasurys 8.50 pct June 1997 tap at an average price of 96.86 pct giving an average yield of 8.78 pct up from 8.72 pct at its last tender of the same tap a month ago. It also sold 3.15 billion worth of 8.50 pct November 2002 stock at an average price of 97.24 pct and average yield of 8.83 pct against 8.98 pct when it was last sold on January 8. The bank sold 1.7 billion francs of floating rate 1999 tap stock at an average price of 97.06 pct giving an average spread of 0.39 percentage points above the 13-week treasury bill reference rate little changed from the 0.40 point spread at the last offering a month ago. Total demand at todays auction was 28.7 billion francs including 5.1 billion for the 8.50 pct 2002 tranche 13.95 billion for the 8.50 pct 1997 tranche and 9.65 billion for the 1999 floating rate tranche. REUTER | BANK OF FRANCE SELLS 8.45 BILLION FRANC TAP STOCKS |
Tokyo Optical Co Ltd is issuing a 40 mln dlr equity warrant eurobond due April 27 1992 paying an indicated coupon of 2-1/4 pct and priced at par lead manager Daiwa Europe Ltd said. The issue is guaranteed by Mitsui Bank Ltd and final terms will be set on April 9. The issue is available in denominations of 5000 dlrs and will be listed in Luxembourg. The selling concession is 1-1/2 pct while management and underwriting combined pays 3/4 pct. The warrants are exercisable from May 19 1987 until April 9 1992. The payment date is April 27. REUTER | TOKYO OPTICAL ISSUES EQUITY WARRANT EUROBOND |
Keihanshin Real Estate Co Ltd is issuing a 25 mln dlr equity warrant eurobond due April 27 1992 paying an indicated coupon of 2-1/4 pct and priced at par lead manager Daiwa Europe Ltd said. The issue is guaranteed by Sumitomo Bank Ltd and final terms will be set on April 8. The issue is available in denominations of 5000 dlrs and will be listed in Luxembourg. The selling concession is 1-1/2 pct while management and underwriting combined pays 3/4 pct. The warrants are exercisable from May 18 1987 until April 13 1992. The payment date is April 27. REUTER | KEIHANSHIN REAL ESTATE ISSUES EQUITY WARRANT BOND |
Chancellor of the Exchequer Nigel Lawsons remarks yesterday suggesting there are precise exchange rate targets for the pound undermined sterling dashing hopes for an early cut in U.K. Base rates analysts said. But the markets reaction testing exchange rate levels indicated by Lawson was probably overdone and the longer term outlook for sterling remained bullish they agreed. In an apparent break with the previous policy of secrecy Lawson told a National Economic Development Council meeting he was comfortable with sterling exchange rates around current levels specifying rates of around 1.90 marks and 1.60 dlrs. Lawson added the U.K. Government intended to keep sterling at about present levels using currency intervention and interest rates to achieve this. The February 22 Paris agreement of the Group of Five and Canada to stabilise exchange rates is widely believed to include target ranges but all participants to the meeting had so far refused to specify these. Markets were quick to react to the statement chopping about one U.S. Cent and over one pfennig off the pound to match the levels mentioned by Lawson. But most analysts polled said they did not believe Lawsons statement signalled a change in U.K. Policy. Keith Skeoch chief economist at stockbrokers James Capel and Co said the remarks have been blown out of proportion. Lawson is paying now for a little bit of a slip of the tongue. Barclays de Zoete Wedd economist Mark Brett said there is nothing great and fantastic in the Chancellors statement. He said he did not believe the rates indicated by the Chancellor were precise targets but merely represented central rates around which sterling would be allowed to fluctuate perhaps by as much as 10 pct. It would be insane to pinpoint an exchange rate ahead of an election ... I dont believe Lawson is mad enough to tie himself to a fixed rate Brett said. Currency markets were keen for official statements to clarify the scope of the Paris accord and reactivate currency trading. This mood easily led to over-reaction analysts said. Making similar statements when the market is high strung and ready to bounce is perhaps a mistake one senior dealer with a U.S. Bank said. Capels Skeoch said it gives the foreign exchange markets something to shoot at. It is obvious that the government as a member of the Group of Six has agreed exchange rate bands. But they are not cut in stone they can change with time Skeoch said. Brett said we think the 2.90 marks level is a central rate. Give or take 10 pfennigs and all is fine. Not all analysts played down the significance of the remarks however. Chris Dunn economist at Royal Bank of Canada said the remarks may signal a decisive move to insulate sterling from the fortunes of the dollar. Although about two-thirds of Britains trade is conducted with European countries sterling has traditionally shadowed the dollar rather than the mark analysts noted. Britain must decide whether it wants to follow the U.S. Or throw in its lot with Europe Dunn said. It suggests that while the U.K. Is not actually applying to join the European Monetary System it is seeking protection by shadowing it ... The Bundesbank has made it clear that it wants the U.K. To clarify its position relative to the mark he said. Analysts said sterlings dip on currency markets following Lawsons remarks made an early half-point cut in U.K. Base rates from current 10 pct levels unlikely in the short term. Over the next three weeks a cut is out unless we get some extremely good economic indicators Capels Skeoch said. Base rates have been cut twice by one-half point in March the last after the March 17 budget presentation and analysts had been expecting another half point cut shortly afterwards. REUTER | LAWSON REMARKS DASH HOPES OF EARLY U.K. RATE CUT |
NV HOOGOVENS 1986 NET PROFIT 154.6 MLN GUILDERS VS 278.8 MLN -- OFFICIAL |
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Ranks Hovis McDougall Plc <RHML.L> said it was making an increased and final offer for the Avana Group Plc <AVNA.L>. The company already holds about 22.9 pct or 7.1 mln Avana ordinary shares. It said in a statement the terms of the offer will be 13 new Rank Hovis shares for every five Avana ordinary shares valuing each Avana share at 829p. Avana shareholders will be entitled to receive and retain the net interim dividend of 5.25p per Avana share for the year ending 28 March 1987. Accepting Avana shareholders will also be entitled to receive Ranks Hoviss forecast net interim dividend of 2.65p for the financial year ending 5 September 1987. Ranks Hovis said that full acceptance of the increased offer would result in the issue of a maximum of 72.3 mln new Ranks Hovis shares or about 20 pct of the enlarged issued ordinary share capital of the company. The latest offer will lapse on 17 April. Ordinary shareholders in Avana who accept the increased offer will have the opportunity to elect for cash for all or part of their holdings on the basis of 800p cash for each Avana share. Ranks Hovis said the cash required for the cash alternative would be met by one of several methods. For the first 10 mln Avana shares received opting for the cash alternative Ranks Hovis would make a cash payment from its own resources. For cash alternatives of more than 10 mln Avana shares Morgan Grenfell as agent for participants will make a separate offer to purchase at 300p per share net of expenses up to 46.3 mln Ranks Hovis new shares to which such shareholders will be entitled under the increased offer. This is equivalent to 780p per Avana ordinary. In addition Ranks Hovis will make a further cash payment of 20p per Avana ordinary. Avana shares traded at 800p after the announcement 32p up from last nights close of 768p. REUTER | RANK MAKES INCREASED AVANA OFFER FINAL |
Deutsche Lufthansa AG <LHAG.F> said it has ordered two Airbus A-310-300s from the Airbus Industrie <ainp.Pa> consortium. The planes will be delivered at the end of 1988 or beginning of 1989 a company statement said. There was no Lufthansa spokesman immediately available to comment on the purchase price or give details about the engines that will power the planes. One of the new A-310s will be used by Lufthansa itself and the other by its <Condor Flugdienst GmbH> charter travel subsidiary the statement said. The orders bring Lufthansas purchases of Airbus A-300s and A-310s to a total of 34. REUTER | LUFTHANSA ORDERS TWO AIRBUS 310S |
Lucas Industries Plc <LUCS.L> said its Lucas Industries Inc unit is issuing a 75 mln dlr convertible eurobond due April 28 2002 paying an indicated coupon of 5-1/4 to 5-1/2 pct and priced at par. The issue is callable at 106 pct declining by one pct per annum to par thereafter but is not callable until 1994 unless the share price reaches 130 pct of the conversion price. There is a put option after seven years which will be priced to give the investor a yield to the put of 7-1/4 to 7-3/4 pct. The issue is guaranteed as to interest and the put premium by Lucas Industries Plc. The issue is being lead managed by J. Henry Schroder Wagg Ltd which has already formed a group of 19 co-managers. The selling concession is 1-1/2 pct while management and underwriting each pay 1/2 pct. The issue is available in denominations of 1000 dlrs while the payment is April 27. Lucas said it intended to use the proceeds of the issue for general corporate purposes. REUTER | LUCAS INDUSTRIES ISSUING CONVERTIBLE EUROBOND |
The Hong Kong Stock Exchange is considering new rules governing different classes of shares following a spate of new B share issues by leading local firms exchange chairman Ronald Li said. He told reporters the rules will allow settlement of A share transactions with cheaper B shares at a ratio equivalent to their par values. But A shares cannot be used to settle transactions of B shares. Jardine Matheson Holdings Ltd <JARD.HK> Cheung Kong (Holdings) Ltd <CKGH.HK> and Hutchison Whampoa Ltd <HWHH.HK> have all announced proposals for issuing B shares. These would have substantially reduced par values but would have voting rights equal to the existing shares or A shares. Li said the exchange does not want to restrict the issue of B shares but it is concerned about huge discrepancies between market prices of existing A and B stocks. The exchange said yesterday it will not accept further proposals by listed firms to issue such new shares. Li said that if the exchange did not take action numerous other companies would make similar issues. <Evergo Industrial Enterprise Ltd> now suspended from trading has already made such a proposal he added. Li said the exchange will consult legal advisers in Britain for the proposals from Cheung Kong Hutchison and Jardine Matheson. If the rules of settlement cannot be implemented the three firms must present alternative methods to guarantee reasonable price differentials between the A and B shares. Both Jardine and Hutchison declined comment. But local newspapers quoted Cheung Kongs director Albert Chow as saying the firm will withdraw its issue if the new rule is approved. Analysts have said the B shares are designed largely to protect the interests of majority shareholders. There is little liquidity in them and they trade at big discounts. Stock brokers noted the A shares of Swire Pacific Ltd <SWPC.HK> closed at 22 H.K. Dlrs today while the B shares ended at 3.95 dlrs. The stocks have a par value of 60 and 12 cents respectively or a one-to-five ratio. At those levels that represents an A share premium of about 11.4 pct over the B shares. Li said the exchange has not considered any measures against existing B stocks. Other existing B stocks are all issued by units of Wharf (Holdings) Ltd <KOWL.HK> including <Hong Kong Realty and Trust Co Ltd> <Lane Crawford Holdings Ltd> and <Realty Development Corp Ltd>. REUTER | H.K. STOCK EXCHANGE MULLS NEW RULE FOR "B" SHARES |
The Bank of England said it had provided the money market with 345 mln stg help in the morning session. This compares with its forecast of a shortage of around 800 mln stg in the system today. The central bank made outright purchases of bank bills comprising 58 mln stg in band one at 9-7/8 pct 227 mln stg in band two at 9-13/16 pct 56 mln stg in band three at 9-3/4 pct and four mln stg in band four at 9-11/16 pct. Dealers noted that this was the first time bills in band four which have a maturity of between two and three months have been dealt in the market since mid-February. REUTER | U.K. MONEY MARKET GIVEN 345 MLN STG ASSISTANCE |
Cable and Wireless Plc <CAWL.L> said new proposals unveiled by Japan for it to become a core member of a merged telecommunications firm to compete for telecommunications contracts did not remove the groups objections. The suggestions by Federation of Economic Organisations official Fumio Watanabe was a formal announcement of proposals made earlier this week and reported in the Japanese press. Cable has a 20 pct stake in one of the two groups trying to compete against Japans <Kokusai Denshin Denwa Co Ltd> which monopolises Japans overseas telephone business. But a Cable spokesman said it still believed a merger of the two consortia would be impracticable. They are like oil and water he said. The Japanese authorities want only one competitor and have proposed that the two consortia band together. The issue has been taken up by the British government as a test case on the openness of Japanese markets. Watanabes latest proposals said that the eight core companies of the new group should have equal share holdings but added that they could work out the precise percentages amongst themselves. The reports earlier this week said that Cable would be offered a five pct stake up from an originally proposed three pct. Despite the apparent differences in stakes offered the Cable spokesman said the two offers appeared to be essentially the same. Cable shares at 1100 GMT were quoted nine pence firmer at 374p. REUTER | CABLE UNIMPRESSED BY NEW JAPANESE TELECOMS OFFER |
Bundesbank leaves credit policies unchanged |
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The Bundesbank left credit policies unchanged after todays regular meeting of its council a spokesman said in answer to enquiries. The West German discount rate remains at 3.0 pct and the Lombard emergency financing rate at 5.0 pct. REUTER | BUNDESBANK LEAVES CREDIT POLICIES UNCHANGED |
Japan is doing all it can to solve its trade problems with the United States but the two nations will remain at odds as long as the trade account is lopsided in Japans favour a senior official said. So long as there is an external imbalance there will be trade friction and ...Harsh words between the two governments the Foreign Ministry official told reporters. Last year Japan racked up a 51.5 billion dlr surplus with the United States and economists said they do not see it falling significantly any time soon. Washington announced plans last week to slap up to 300 mln dlrs in tariffs on Japanese electronic goods raising the spectre of a trade war between the two countries. We take the current situation very seriously said the official who declined to be identified. The basic stance of the Japanese government is to tackle the issues with all available resources. The United States has accused Japan of reneging on an agreement that called on it to stop selling cut-price computer microchips in world markets and to try to import more American semiconductors. Tokyo has denied the charges. The Foreign Ministry official refused to rule out Japanese retaliation if America went ahead with its threatened tariffs in the middle of this month. But he said that any response would be in accordance with international law and Japans international obligations. He added that both Japan and the United States must take account of the impact of their dispute on their own and the world economy. REUTER | JAPAN/U.S. WILL BE AT ODDS WHILE TRADE LOPSIDED |
France has sold between 50000 to 100000 tonnes of wheat flour to China the Director General of Frances Cereal Intervention Board (ONIC) Bernard Vieux said. He gave no further details of the sale but added French millers were worried about the unfair competition facing French flour due the lack of end-of-season storage premiums for wheat. ONIC raised its estimate of 1986/87 flour exports to 1.70 mln tonnes compared 1.65 mln forecast in March and the 1.87 mln exported in 1985/86. REUTER | FRANCE SOLD WHEAT FLOUR TO CHINA - ONIC |
Malaysias telecommunication authority has entered into a deal with a British firm to instal a 100 mln dlrs fibre optic submarine cable to link Peninsula Malaysia with eastern Sabah and Sarawak states the national news agency Bernama reported. <Syarikat Telekom Malaysia Bhd> (STM) signed an agreement to set up a joint venture company with Britains Cable and Wireless PLC <CAWL.L> to instal maintain and operate the 1500 kms-long cable by 1989 it said. STM Chairman Mohamed Rashdan Baba and Cable and Wireless Chairman and Chief Executive Eric Sharp signed the agreement. The joint venture company will be 51 pct owned by STM and 49 pct by Cable and Wireless the news agency said. It gave no details on equity or when the project will be started. Mohamed Rashdan said the cable link will carry domestic and international telecommunication traffic and added that STM planned to ask other telecommunication administrations in Southeast Asia to use the cable. Sharp said the cable could make Malaysia a major telecommunications centre in the region. STM which used to be the governments telecommunication department previously was privatised in January 1987. REUTER | CABLE AND WIRELESS IN MALAYSIA CABLE DEAL |
U.K. Defence secretary George Younger is expected to announce the governments decision on the sale of state-owned arms manufacturer <Royal Ordnance> today parliamentary sources said. The government originally intended to float the munitions and explosives concern on the stock market but last July said a private sale was a more appropriate way to dispose of the firm. The bidders for the company were British Aerospace Plc <BAEL.L> and engineering group GKN Plc <GKN.L>. Royal Ordnance sold its Leeds tank factory last summer to Vickers Plc <VICK.L>. Defence electronics manufacturer Ferranti Plc <FNTI.L> and shipping and property group Trafalgar House Plc <THSL.L> both pulled out of the bidding shortly before last months deadline. Royal Ordnance made pre-tax profits of 26 mln stg on sales of 487 mln stg in calendar 1985 its first full year of commercial operation. The company has assets of around 240 mln stg and employs 17000 at 15 sites in Britain. Other state-held companies earmarked for privatisation this year include engine maker <Rolls Royce Plc> and the <British Airports Authorities Plc>. REUTER | DECISION EXPECTED ON U.K ROYAL ORDNANCE SALE |
Japans leading economic organisations urged the Government to prepare drastic pump-priming measures even at the cost of shelving Prime Minister Yasuhiro Nakasones planned tax reforms officials involved said. Officials of the Federation of Economic Organisations (Keidanren) said in a meeting with government officials the Government should issue construction bonds as an emergency measure to prop up the economy. Keidanren suggested that proceeds from sales of stocks in the newly-privatised Nippon Telegraph and Telephone Corp should also be used to stimulate the economy. Keidanren Chairman Eishiro Saito said the dollars fall below 150 yen would create huge unemployment and bankruptcies that could shake the foundation of the Japanese economy. The Keidanren meeting coincided with a written request for drastic reflationary measures sent to the Government by the Japan Chamber of Commerce and Industry. Both organisations called for stepped-up Bank of Japan intervention to stabilise exchange rates. Chamber head Noboru Gotoh told a press conference the awaited economic package should be powerful enough to push up Japans Gross National Product (GNP) by about two pct. Gotoh said the Government could cope with the present critical economic condition even if it put off its plan to stop the issue of deficit-covering bonds by fiscal 1990. The plan to reduce the fiscal budget is a pillar of Nakasones fiscal reconstruction program. REUTER | JAPANESE GROUPS URGE DRASTIC ECONOMIC PACKAGE |
Syria will hold a buying tender on April 8 for 36000 tonnes of white sugar for shipment in June July and August at a rate of 12000 tonnes a month traders said. REUTER | SYRIA SEEKING WHITE SUGAR ON APRIL 8 - TRADE |
<Koninklijke Nederlandsche Hoogovens en Staalfabrieken NV> said it expected a clear loss for 1987. The company reported its 1986 profits were 44 pct lower at 154.6 mln guilders than in the year before. Turnover was 18 pct lower than in 1985. The main reason fo the fall in turnover was the lower rate of the dollar the company said. The lower costs for raw materials and energy resulting from the lower dollar could not compensate the fall in revenues. Costs 5.61 billion guilders vs 6.66 billion Depreciation 457 mln vs 493 mln Operating profit 375 mln vs 598 mln Financial charges 155.1 mln vs 169.4 mln Extraordinary loss 12 rpt 12 mln vs 138 mln Crude steel production five mln tonnes vs 5.3 mln Aluminium production 96000 tonnes vs same. REUTER | HOOGOVENS EXPECTS CLEAR LOSS IN 1987 |
The cost of living was unchanged in March compared with February but stood 0.2 pct lower than in the same month in 1986 the Federal Statistics Office said. This confirms provisional figures released at the end of last month. In February the cost of living in West Germany rose 0.1 pct from January to stand 0.5 pct lower than in February 1986. REUTER | GERMAN MARCH COST OF LIVING DATA CONFIRMED |
The onset of cooler weather in Brazil during the southern hemisphere winter is expected to have a stabilising effect on a weak coffee market West German trade sources said. The annual fear of frost in Brazil will probably grip the market sometime this month until June or early July one trader said. The trade believes the International Coffee Organization (ICO) is unlikely to tackle the re-introduction of quotas before its September meeting and until then the market will not see any unexpected sharp moves in either direction. REUTER | SEASONAL STABILISATION SEEN FOR COFFEE PRICES |
West German industrial production seasonally adjusted rose a provisional 3.2 pct in February after a downwards revised decline of 3.4 pct in January the Economics Ministry said. The ministry had originally estimated that industrial production fell 3.0 pct in January. The February figure is likely to be revised upwards by just under one percentage point next month when the March figure is released a ministry statement said. The industrial production index base 1980 stood at a provisional 104.1 in February against 100.9 in January and 104.5 in December. The ministry had previously put the January and December indices at 101.6 and 104.7 respectively. In February 1986 the output index had stood at 103.7 producing a year-on-year rise for February 1987 of 0.4 pct. The February rise in production was aided by a sharp 19 pct increase in construction output compared with January when production in many industrial sectors was depressed by unusually severe winter weather. Manufacturing industry registered a 3-1/2 pct rise in production in February compared with January. But energy sector output fell nine pct and mining production declined seven pct. The ministry which considers two-monthly comparisons to be a better guide to trends said output in January and February together fell around two pct against November and December. The ministry said construction output fell 13-1/2 pct in January/February against November/December due to the cold January weather. Output in the energy sector rose four pct and mining output 10 pct. Manufacturing industrys production fell 1-1/2 pct in January/February compared with November/December. Within this sector the output of both basic products and of food tobacco and alcohol fell 1-1/2 pct. Production of capital goods fell 2-1/2 pct while output of consumer goods was unchanged. Reuter | GERMAN INDUSTRIAL OUTPUT RISES 3.2 PCT IN FEBRUARY |
Hertz Realty Corp is issuing a 75 mln Canadian dlr bond due April 30 1993 paying nine pct and priced at 100-3/4 pct syndicate sources said. The non-callable bond is guaranteed by Hertz Corp. It is available in denominations of 1000 and 10000 Canadian dlrs and will be listed in Luxembourg. The selling concession is 1-1/4 pct while management and underwriting combined pays 5/8 pct. The payment date is April 30. REUTER | HERTZ REALTY ISSUES 75 MLN CANADIAN DLR EUROBOND |
Toshiba Corp <TSBA.T> said it regrets its plan to enter the U.K. Business facsimile and telephone market may be caught up in a diplomatic row over the position of Cable and Wireless Plcs <CAWL.L> in the Japanese market. Britain is considering how to retaliate against Japans attempt to prevent Cable and Wireless from taking a major position in a Japanese international telecommunications venture. As a matter of timing it is regrettable that this has been linked with the question of market access in Japan a Toshiba spokesman told Reuters. <Toshiba Information Systems (U.K.) Ltd> a Toshiba subsidiary said yesterday it planned to enter the U.K. Market under the Toshiba own brand name and had applied for government approval to do so. Toshiba has supplied equipment to U.K. Manufacturers for sale under their brand names since last year. The Toshiba spokesman said the sale of such equipment was not comparable to Cable and Wireless efforts to take a stake in the new Japanese telecommunications firm. They are matters of a different category he said. REUTER | TOSHIBA REGRETS LINK WITH U.K. ACCESS ISSUE |
Westpac Banking Corp in New Zealand said it will increase its indicator lending rate by 1.5 percentage points to 22.5 pct from April 7. Westpac said in a statement the increase reflects high costs of funding. The bank said nervousness in the wholesale deposit market is creating uncertainty about the immediate outlook for interest rates. Liquidity is expected to remain tight over the next month and this will put upward pressure on interest rates. Base lending indicator rates of the other three trading banks range between 21.0 pct and 21.5 pct. REUTER | WESTPAC IN N.Z. RAISES INDICATOR LENDING RATE |
The Bank of Japan intervened just after the Tokyo market opened buying dollars at around 147.65 yen dealers said. They were unsure of the amount of the central banks purchasing but it seemed to prevent the dollar from weakening against the yen amid bearish sentiment for the U.S. Currency they said. The dollar opened at 147.65 yen against 147.20/30 in New York and 146.90 at the close here yesterday. REUTER | BANK OF JAPAN INTERVENES JUST AFTER TOKYO OPENING |
The Bundesbank left credit policies unchanged after todays regular meeting of its council a spokesman said in answer to enquiries. The West German discount rate remains at 3.0 pct and the Lombard emergency financing rate at 5.0 pct. REUTER | BUNDESBANK LEAVES CREDIT POLICIES UNCHANGED |
Japan is sending a three-man team to Washington to try to halt threatened trade sanctions that officials warn could spark a wave of anti-U.S. Sentiment here. The team will lay the groundwork for high-level emergency talks next week aimed at defusing an increasingly bitter row over trade in computer microchips officials said. The sanctions are against the free trade system Ministry of International Trade and Industry (MITI) director general Noboru Hatakeyama told reporters adding: If these measures are taken the atmosphere in Japan against the United States would become not so good as before. Other officials were more blunt. The U.S. Action will have a significant impact on the growing anti-U.S. Feeling (here) another MITI official said. A senior Foreign Ministry official who declined to be identified told Reuters the U.S. Threats have undercut those in the government who argue for conciliation. There is a very strong argument in Japan that since the United States is imposing tariffs unilaterally why should we bother doing anything he said. Anything we do we will be bashed. The senior official sounded pessimistic about the likelihood of Prime Minister Yasuhiro Nakasone defusing U.S. Anger over Japanese trade practices when he visits Washington on April 29. I dont think trade friction will be solved all of a sudden (by the visit) he said. Nakasone is widely expected to present a package of measures to President Reagan to help contain U.S. Frustration over Japans large trade surplus. But the senior official played down those expectations. REUTER | JAPAN WARNS OF ANTI-U.S. SENTIMENT IN TRADE ROW |
Japan is doing all it can to solve its trade problems with the United States but the two nations will remain at odds as long as the trade account is lopsided in Japans favour a senior official said. So long as there is an external imbalance there will be trade friction and ...Harsh words between the two governments the Foreign Ministry official told reporters. Last year Japan racked up a 51.5 billion dlr surplus with the United States and economists said they do not see it falling significantly any time soon. Washington announced plans last week to slap up to 300 mln dlrs in tariffs on Japanese electronic goods raising the spectre of a trade war between the two countries. We take the current situation very seriously said the official who declined to be identified. The basic stance of the Japanese government is to tackle the issues with all available resources. The United States has accused Japan of reneging on an agreement that called on it to stop selling cut-price computer microchips in world markets and to try to import more American semiconductors. Tokyo has denied the charges. The Foreign Ministry official refused to rule out Japanese retaliation if America went ahead with its threatened tariffs in the middle of this month. But he said that any response would be in accordance with international law and Japans international obligations. He added that both Japan and the United States must take account of the impact of their dispute on their own and the world economy. REUTER | JAPAN/U.S. WILL BE AT ODDS WHILE TRADE LOPSIDED |
UK MOVES DATE FORWARD ON FINANCIAL RECIPROCITY PROVISIONS TO PRESS JAPAN, GOVERNMENT SOURCES SAY |
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FRENCH MED/LONG TERM DEBT 398.2 BILLION FRANCS END 1986 (419.6 BILLIOn end SEPT) - OFFICIAL |
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und Frankfurter Bank (BHF) is raising 30 mln Australian dollars through a five-year bullet eurobond with a 14-1/4 pct coupon and priced at 101-1/4 sole manager BHF said. The bond for BHF Finance Jersey Ltd pays annual interest on April 28 and investors pay for the bond on the same day. It will mature on that day in 1992. The bond is guaranteed by the parent. Listing is in Luxembourg. Denominations are 1000 and 10000 dlrs. Yield at issue is 13.89 pct. No fees were stated. REUTER | BHF UNIT ISSUES 30 MLN AUSTRALIAN DLR EUROBOND |
French medium and long-term debt fell to 398.2 billion francs at end-1986 from 419.6 billion at end-September and 464.7 billion at end-1985 the Finance Ministry said. The 66.5 billion franc reduction over the full year mainly reflected a 44.8 billion difference between debt redemption and new foreign borrowings it said. The 21.4 billion franc reduction in the fourth quarter mainly reflected an 11.4 billion franc difference between redemptions and new borrowing the ministry added. The balance reflected revisions to the previous figures and the impact of the currency fluctuations on the French franc value of foreign currency denominated borrowings it said. Expressed in dollar terms medium and long-term debt fell to 62.7 billion dlrs at end-1986 from 63.4 billion at end-September. The ministry said although the dollars depreciation favoured a reduction in foreign debt this was largely offset by the appreciation of other currencies in which 63 pct of French medium and long term debts were denominated at end-1986. While the dollar remained the main borrowing currency accounting for 37 pct of medium and long-term debt the mark accounted for 11.5 pct the European Currency Unit 10.8 pct the yen 9.4 pct the Eurofranc 8.7 pct the Swiss franc 7.3 pct the Guilder 4.6 pct sterling 3.7 pct and seven pct others. Taking into account external lending net foreign debt fell to 81.5 billion francs at end-1986 from 106.7 billion at end-September and 153.7 billion at end-1985. External lending comprising export credits of more than one year maturity and public sector foreign loans were estimated at about 316.7 billion francs at end-1986 against 312.9 mln at end-September. Total foreign medium and long-term debt included seven billion francs of direct state debt at end 1986 reduced from 15.6 billion three months earlier the ministry said. REUTER | FRENCH DEBT FELL TO 398.2 BILLION FRANCS END-1986 |
Britain will arm itself earlier than hitherto planned with statutory powers to retaliate if decided necessary against Japanese banking and insurance companies on grounds that similar U.K. Based financial institutions do not enjoy the same market access in Japan government sources said. The provisions being brought forward under the new Financial Services Act are reciprocity clauses 183 to 186. The powers will allow Britain to revoke or deny licences to Japanese banking and insurance businesses but will not affect licensed dealers in securities the sources said. The news follows a cabinet meeting during which U.K./Japanese trade problems were discussed. The government decided on the steps at its cabinet meeting this morning and aims to maintain pressure to ensure that U.K. Firms be allowed the same access to Japanese markets as Japanese banking and insurance firms enjoy in Londons financial areas government sources said. One source said we want reciprocity in those fields. And what we are saying is that if not then we can pull the plug and stop you from having an unfair and uncompetitive advantage. The provisions being brought forward under the Financial Services Act will take effect after Easter or in around 21 days the sources said. MORE | UK MOVES DATE FORWARD ON FINANCIAL RECIPROCITY |
Turnover on the Amsterdam Bourse rose 38 pct in March to 25.8 billion guilders from 18.7 billion in February compared with 27.6 billion in March last year the Bourse said in its monthly review. Sentiment improved last month after a weak performance in January and lacklustre trading in February helped by good corporate results and falling interest rates the Bourse said. However sentiment was dampened by reports of declining exports a drop in trade with West Germany a slower world economic growth rate and trade tensions. Share turnover was up 5.1 billion guilders last month at 14.4 billion from 9.3 billion in February. Bond turnover rose to 11.4 billion guilders in March from 9.4 billion in February. On the second tier parallel market March turnover rose 62 pct to 267 mln guilders from 165 mln in February. REUTER | AMSTERDAM BOURSE TURNOVER UP SHARPLY IN MARCH |
Weekly figures published by the Bank of France showed its gross foreign assets rose by about two billion francs last week when it was reported by banks to have intervened on the foreign exchange markets to support the dollar against the yen. The figures showed its gold foreign currency and other external assets rose to 415.1 billion francs from 413 billion mainly reflecting a rise to 116.7 billion from 114.7 billion in foreign exchange holdings. REUTER | BANK OF FRANCE FOREIGN ASSETS RISE LATEST WEEK |
Hokkaido Takushoku Bank Ltd is launching 100 mln Swiss francs of convertible notes due September 30 1992 indicated at 1-1/4 pct and par lead manager Swiss Bank Corp said. Pricing and conversion terms will be fixed on April 19 and payment date is April 30. Interest is payable half-yearly. Early redemption is possible from March 31 1990 at 104 pct declining by one point per half-year thereafter and for tax reasons from 1988 at 102 pct declining by 1/2 point annually thereafter. REUTER | HOKKAIDO TAKUSHOKU BANK ISSUES 100 MLN SFR NOTES |
Nitto Boseki Co Ltd of Tokyo is launching a 60 mln Swiss franc 4-7/8 pct bond due April 27 1995 at 100-1/4 pct lead manager Union Bank of Switzerland said. Subscriptions close April 8 and payment date is April 27. REUTER | NITTO BOSEKI LAUNCHES 60 MLN SFR 4-7/8 PCT BOND |
BankAmerica Corp following moves by other major banks said it has raised its prime rate to 7.75 pct from 7.50 pct effective today. Reuter | BANKAMERICA <BACP> RAISES PRIME RATE TO 7.75 PCT |
The London Metal Exchange LME issued turnovers for March 1987 with figures for corresponding period 1986 in brackets. All in tonnes except Silver which in troy ounces. Copper higher grade nil (2526425) Standard cathodes nil (6325) Grade A 2429200 (nil) Standard Copper 17050 (nil) Lead 443850 (538750) Zinc High grade 598550 (304825) Silver large 10350000 (17400000) Small nil (2000) Aluminium 1693375 (1301850) Nickel 62004 (65040). Cumulative figures for January-March were as follows - Copper higher grade nil (7703625) Standard cathodes nil (24700) Grade A 6455525 (nil) Standard Copper 62075 (nil) Lead 1567000 (1979750) Zinc High grade 1746675 (1356400) Silver large 41770000 (65620000) Small nil (8000) Aluminium 4984650 (4974950) Nickel 199944 (179328). Reuter | LME DETAILS MARCH 1987 TURNOVER |
News Corp Ltd of Australia said it has started its previously announced tender offer for all shares of Harper and Row Publishers Inc at 65 dlrs per share. In a newspaper advertisement the company said the offer is conditioned on received of at least 51 pct of Harper and Rows shares. The offering and withdrawal rights expire April 29 unless extended. A merger at the tender price is to follow the offer which has been approved by the Harper and Row board. Harper and Row has granted NEw Corp an option to buy up to 800000 new shares or a 15.4 pct interest at 65 dlrs each. News Corp said if the merger agreement were terminated under certain circumstances News would be entitled to a 16 mln dlr cash payment. Last month Theodore Cross offered to acquire Harper and Row for 34 dlrs per share but was soon outbid by Harcourt Brace Jovanovich Inc which offered 50 dlrs per share. Late in the month Harper and Row said its board had received expressions of interest from a number of domestic and foreign companies. Reuter | NEWS CORP <NWS> STARTS HARPER/ROW <HPR> BID |
Banque Francaise du Commerce Exterieur (BFCE) is issuing a 17 billion yen eurobond due May 11 1992 with a 4-3/8 pct coupon and priced at 102-3/8 pct lead manager Nippon Credit International Ltd said. The bonds guaranteed by the Republic of France carry a put and call option at par on the interest payment date in 1990. Listing will be in Luxembourg and the bonds will be issued in denominations of one mln yen. Payment date is May 11. Gross fees of 1-7/8 pct comprise 5/8 pct for management and underwriting combined and 1-1/4 pct for selling. REUTER | BFCE ISSUES 17 BILLION YEN EUROBOND |
International Technology corp said it expects to report a loss for the fourth quarter ended March 31 of about 20 cts per share compared with a year-earlier profit of 11 cts. The company blamed the expected loss on regulatory and permitting issues that limited the full utilization of hazardous waste treatment cites in Califoirnia continued startup delays for major remediation projects the writeoff of an investment in a subsidiary and a settlement with the California Attorney Generals Office and Department of Health Services. The company said the settlement relates to regulatory violations alleged by the U.S. Environmental Protection Agengy and the California Health Services department at the companys Vine Hill and Panoche treatment facilities in Northern California. It said under the agreement it will pay the state 2100000 dlrs in civil penalties over a two-year period and pay 500000 dlrs over five years to local medical facilities as part of a community awareness and emergency response program developed by local communities. The expenses will be charged against fourth quarter results it said. The company said it has agreed as well to make compliance and public safety capital expenditures of about 600000 dlrs. It said it has now received an operating permit for a new 250000 cubic yard landfill cell at its Imperial County Calif. from the Health Services department. The company said the Panoche facility remains closed but is expected to reopen for liquid and sludge receipts in the near future. But it said receipts of solid material which had accounted for the majority of the revenue at the site could be restricted until 1988 pending resolution of capacity issues in the Panoche site permit. Reuter | INTERNATIONAL TECHNOLOGY <ITX> SEES 4TH QTR LOSS |
Westdeutsche Landesbank Girozentrale <WELG.F> said its wholly-owned Luxembourg subsidiary WestLB International SA posted a decline in 1986 net profit to 12.6 mln marks from 48.5 mln a year earlier. WestLB International will pay a 12.5 mln mark dividend to WestLB down from 47.7 mln a year earlier. The dividend was lower than in 1985 because the record profit of the previous year could not be repeated due to changed market conditions it said. Increased funds were also allocated for provisions. Business in the first three months of 1987 developed positively it added. WestLB International set aside 115.3 mln marks for international credit risks in 1986 up from 97.4 mln marks in 1985 bringing the total amount of provisions shown in the balance sheet to 580.3 mln marks. Operating profit fell to 122 mln marks in 1986 from 150 mln in 1985. Balance sheet total fell to 9.7 billion marks from 10.8 billion reflecting the lower dollar and the fact that credit business redemptions were not fully offset by new lending. The statement said WestLB Internationals business with private customers showed a pleasing expansion last year. This development was aided by cooperation between the bank and the savings banks in the West German state of North Rhine-Westphalia where parent bank WestLB is based. Deposits by non-banks rose more than 40 pct to a total of 1.1 billion. WestLB International said it plans to expand its range of services for private clients. REUTER | WESTLB LUXEMBOURG REPORTS LOWER 1986 NET PROFIT |
Some 40 miners were trapped underground today by a fire in a copper mine in the Gaspe area of eastern Quebec officials said. There were no reports of any deaths. A mine official said that the fire broke out last night and about 25 of the miners made it to safety. He said telephone contact had been established with the trapped miners but they could not be brought to the surface until the fire was extinguished. The cause of the fire was not known. Reuter | 40 MINERS TRAPPED BY FIRE IN GASPE COPPER MINE |
Coffee producers belonging to the Other Milds group will meet May 4 in Guatemala to discuss the possibility of restoring export quotas producer delegates told reporters after the closing session of the International Coffee Organization ICO executive board meeting. The Other Milds group comprising Costa Rica Dominican Republic Ecuador El Salvador Guatemala Honduras India Mexico Nicaragua Papua New Guinea and Peru might consult with Brazil and Colombia on this meeting but it was not certain whether these two countries would attend they said. The ICO board meeting ended without moves to restart negotiations on quotas which broke down last month producer delegates said. Producers are expected to hold other consultations in the coming months on how to proceed with quota negotiations but no date for a full producer meeting has been mentioned they said. The board completed reports on stock verification and the next regular board session will be in Indonesia June 1-5 delegates said. Reuter | OTHER MILDS COFFEE PRODUCERS TO MEET MAY 4 |
Nippon Signal Co Ltds 50 mln Swiss franc five-year notes issue with warrants has been priced at 1-1/4 pct compared with the originally indicated 1-3/8 pct lead manager Morgan Stanley SA said. Each 50000-franc bond carries 81 warrants entitling the holder to buy 100 Nippon Signal shares for 594 yen each. The shares last traded at 579 yen. The Swiss franc/yen exchange rate was fixed at 97.27. REUTER | NIPPON SIGNAL SWISS FRANC NOTES SET AT 1-1/4 PCT |
Aloha Inc said its leveraged buyout by AQ Corp which acquired 91 pct of Aloha common and 82 pct of Aloha preferred in a tender offer that concluded December 26 has been completed for 28.50 dlrs per common or preferred share. AQ is controlled by Aloha chairman Hung Wo Ching vice chairman Sheridan C.F. Ing and president A. Maurice Myers. Reuter | <ALOHA INC> BUYOUT COMPLETED |
IBM INTRODUCES FOUR NEW PERSONAL COMPUTERS COMPATIBLE WITH EXISTING PC'S |
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The Bank of England said it had given the money market a further 152 mln stg assistance in the afternoon session. This takes the Banks total help so far today to 497 mln stg and compares with its forecast of a shortage in the system of around 700 mln stg which it earlier revised down from 800 mln. The central bank made outright purchases of bank bills comprising 34 mln stg in band one at 9-7/8 pct 39 mln stg in band two at 9-13/16 pct 51 mln stg in band three at 9-3/4 pct and 28 mln stg in band four at 9-11/16 pct. REUTER | U.K. MONEY MARKET GIVEN FURTHER 152 MLN STG HELP |
BANK OF FRANCE LEAVES INTERVENTION RATE UNCHANGED AT 7-3/4 PCT - OFFICIAL |
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International Business Machines Corp said it introduced four new personal computers including a top of the line unit based on the powerful Intel Corp <INTC> 80386 chip. The company said the new PCs are compatible with most existing IBM PC applications. The new computers which mark the first major overhaul of the IBM PC line since the company entered the business in 1981 include a PC based on the Intel Corp <INTC> 80386 microprocessor making it the most powerful IBM PC to date. Also included is an Intel 8086 based system which IBM said is up to two and a half times as fast as its IBM PC XT model. IBM also introduced two new versions of its PC AT system. These use an Intel 80286 chip running at 50 pct faster than the existing IBM PC AT. The new line of PCs which IBM calls the Personal System/2 uses 3.5 inch diskettes instead of the conventional 5.25 inch diskettes. The company said the smaller diskettes store from two to four times more data than larger diskette which typically handle 360 kilobytes of data. IBM said the new PC ATs and the 80386-based PC use a new IBM-designed 32-bit data bus. This carries data internally within the PC. The company said the new bus offers processing power up to two to three-and-a-half times the existing IBM PC AT. IBM said the new PCs can run a new operating system called IBM DOS Version 3.3 which is now available. The company also said it will offer a second operating system called IBM Operating System/2 developed jointly with Microsoft Corp <MSFT>. This will be available in stages beginning in the first quarter of 1988. IBM said Operating System/2 will for the first time give IBM PC users the ability to access multiple applications and very large programs and amounts of data. IBM said said its Personal System/2 Model 30 which is an Intel 8-megahertz (MHz) 8086-based system is now available at a list price of 1695 dlrs each with two diskette drives and for 2295 dlrs with one diskette and one 20-megabyte fixed disk drive. The unit weighs 17 pounds. It said an 8087 math coprocessor that runs at the same eight MHz rate as the 8086 is available. The company said the Personal System/2 Model 50 an Intel 10 MHz 80286-based desktop system is now available at a cost of 3595 dlrs. IBM said said its Personal System/2 Model 60 which is also an Intel 10 MHz 80286-based system is a floor-standing system available in two configurations. This system which is scheduled for availability in the second quarter lists at 5295 dlrs with a 44MB fixed disk drive and 6295 dlrs on the 70MB fixed disk drive. The company said the Personal System/2 80 is the most powerful member of the new family of PCs using an Intel 80386-based mocroprocessor. The floor-standing machine will be available in three configurations. IBM said one Model 80 configuration scheduled for July availability at a cost of 6995 dlrs runs at 16 MHz contains 1MB of memory and features a 44MB fixed disk drive. A second configuration also scheduled for July at 8495 dlrs each runs at 16 MHz and has 2MB of memory and a 70MB fixed disk drive. The company said the third Model 80 is scheduled for the fourth quarter and features IBM-designed one-megabit memory technology. Expected to cost 10995 dlrs it runs at 20 MHz and features 2MB of memory and a 115 MB fixed disk drive. IBM said its Personal System/2 incorporates enhanced integrated graphics functions including significantly improved text expanded colors up to 256 out of a palette of more than 256000 and sharper business graphics. The company said the Models 50 60 and 80 Video Graphics Array supports 640 x 480 x 16 colors in graphics mode and 720 x 400 x 16 colors in text mode. It will also support the new 320 x 200 x 256 color mode. With the addition of the new advanced graphics feature IBM said 1024 x 768 addressability also can be obtained. Reuter | IBM <IBM> INTRODUCES NEW PERSONAL COMPUTERS |
A partisan battle over President Reagans veto of an 88-billion dlr highway bill resumes in the Senate today after an apparent victory for the White House was left in doubt when a key Democrat switched his vote The Senate yesterday had voted to sustain Reagans veto by a narrow margin but Democrats moved to reconsider the vote. Terry Sanford of North Carolina the only Democrat to support Reagan later said he had decided to vote to override when the bill is reconsidered. If no other votes switch the Senate would override the veto on reconsideration Senate Republican leader Robert Dole of Kansas said. He said Reagan and Administration officials would continue to lobby for votes to sustain the veto. As of right now the vote would be 67 to 33 (in favor of the bill) and the veto would be overriden Dole said. After several hours of delay Senate leaders were unable to agree on a time for a second vote and the Senate recessed until this morning with the issue unresolved. Sanford denied he had been pressured to change his vote but told the Senate I have talked to and have been talked to by a number of senators. I have thought a little more deeply about this vote. The first Senate vote put Reagan on the verge of a political triumph he had sought to show he is rebounding strongly from the Iran arms scandal. | SENATE VOTE ON REAGAN'S VETO REMAINS IN DOUBT |
About 10000 workers have gone on strike in eastern Yugoslavia during the past few days demanding higher wages the official Tanjug news agency said. It said about 20 strikes broke out in the Yugoslav republic of Montenegro triggered by falling incomes and minimum wages. More than 600 workers in the Visokogradnja construction firm at Titograd left their jobs because they had not been paid for three months Tanjug said. Yugoslavia has been hit by a wave of strikes after the government introduced a pay freeze in February to try to stem wage rises and almost 100 pct inflation. Tanjug said the majority of the strikes in Montenegro were in loss making companies whose weaknesses would have led to unrest even if a wages freeze had not been implemented. Reuter | THOUSANDS STAGE STRIKES IN EASTERN YUGOSLAVIA |
Ireland is raising 300 mln marks through a 10-year eurobond with a 6-1/2 pct coupon priced at 100-1/2 lead manager Commerzbank AG said. The bond with a yield at issue of 6.43 pct will pay annual interest on April 29. Listing is in Frankfurt the bank said. Investors will pay for the bond on April 29 and the bond matures on the same day in 1997. The bond will be issued in denominations of 1000 and 10000 marks. Fees total 2-1/2 pct with 1-1/2 points for selling and 1/2 each for management and underwriting. REUTER | IRELAND ISSUES 300 MLN MARK EUROBOND |
French operators have requested licences to export 422000 tonnes of free market maize 212000 tonnes of barley and 20000 tonnes of feed wheat at todays EC tender trade sources said. For the maize rebates requested range between 129.25 and 138.74 European currency units per tonne for the barley between 138.94 and 145 Ecus and for feed wheat 141.75 Ecus. Reuter | FRENCH FREE MARKET CEREAL EXPORT BIDS DETAILED |
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