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The Reserve Bank said it would offer for tender 200 mln dlrs of 13-week treasury notes next week. The Bank added it would take up 300 mln dlrs of 13-week notes at the average yield. The bank will not offer any 26-week notes for tender next week. REUTER | AUSTRALIAN TREASURY NOTE TENDER 200 MLN DLRS |
Libyan forces are still bombing the key Ouadi Doum airstrip in northern Chad captured by Chadian troops on March 22 French Defence Minister Andre Giraud said. The bombing was still going on even though Libyan troops had been driven out of most of northern Chad Giraud told Radio France Internationale in an interview monitored by the British Broadcasting Corporation. He added Chad had not asked France to help drive the Libyans out of the north. Chad said yesterday its troops had captured the Libyan outpost of Gouro some 150 km south of the disputed Aouzou strip in the far north of the central African country. REUTER | LIBYA STILL BOMBING CHAD AIRSTRIP SAY FRENCH |
Agriculture Minister Mutsuki Kato said he will meet U.S. Agriculture Secretary Richard Lyng here on April 17 and 20 to discuss bilateral farm trade issues. Lyng will visit Tokyo from April 16 to 27. Kato told reporters after a cabinet meeting all topics ofconcern to the U.S. Will be discussed such as trade in beef and oranges and import controls on farm products. He said Shintaro Abe the ruling Liberal Democratic Partys executive council chairman would propose some unspecified measures in response to demands to ease import controls on U.S. Farm products. Kato declined to give any details. REUTER | JAPAN/U.S. AGRICULTURE TALKS SET FOR APRIL 17, 20 |
Lucas Industries Incs convertible eurobond has been increased to 83 mln dlrs from the initial 75 mln dlrs due to strong demand for the deal lead manager J. Henry Schroder Wagg and Co Ltd said. The coupon has been set at 5-1/4 pct. The conversion price is fixed at 640 pence per share representing a premium of 11-1/2 pct over yesterdays mid-price close of 574 pence. The seven year put option was priced at 118 pct to give the investor a yield to the put of 7.31 pct. The foreign exchange rate was fixed at 1.6030 U.S. Dlrs to one stg. The borrower is a unit of Lucas Industries Plc <LUCS.L>. REUTER | LUCAS INDUSTRIES CONVERTIBLE BOND INCREASED, FIXED |
British Petroleum Co Plc <BP.L> said it is proposing a capitalisation share issue of two new ordinary shares for each ordinary share held at the close of business on April 15. The move is subject to the approval of shareholders at an extraordinary general meeting to be held on April 30 it said in a statement. The new shares will not participate in the proposed final dividend for 1986 expected to be paid on May 7. REUTER | BP PLANS CAPITALISATION SHARE ISSUE |
Swedens National Debt Office said it was issuing a four billion crown seven-year domestic government bond with a coupon of 10.75 pct. It invited bids by April 6 and payment date for the loan is April 10. The issue like all Swedish domestic paper is closed to non-residents. REUTER | SWEDEN ISSUES SEVEN-YEAR DOMESTIC BOND |
The Duth Central bank said it accepted bids totalling 4.086 billion guilders at tender for the new twelve-day special advances at an unchanged 5.3 pct. Bids up to 30 mln guilders were met in full amounts above at 40 pct. The new advances covering the period April 3 to 15 replace the current 4.2 billion guilder nine-day facility at 5.3 pct which expires today. Money market dealers said the total amount allocated was in line with expectations and would be sufficient to cover the money market shortage for the duration of the facility. REUTER | NEW DUTCH ADVANCES TOTAL 4.1 BILLION GUILDERS |
Toyo Trust and Banking Co Ltd is issuing a 100 mln dlr convertible eurobond due March 31 2002 paying an indicated two pct and priced at par lead manager Toyo Trust International said. The issue is callable after three years at 104 pct declining by 1/2 pct per annum to par thereafter. It is not callable unless the share price exceeds the conversion price by 150 pct. The selling concession is 1-1/2 pct while management and underwriting each pay 1/2 pct. Final terms will be fixed on April 10. The payment date is April 30 and there will be a short first coupon period. The issue will be listed in Luxembourg. REUTER | TOYO TRUST ISSUES 100 MLN DLR CONVERTIBLE BOND |
West German unemployment unadjusted for seasonal factors fell to 2.41 mln in March from 2.49 mln in February the Federal Labour Office said. The total represents 9.6 pct of the workforce compared with 10.0 pct in February. The seasonally adjusted jobless total rose however in March to 2.23 mln from 2.18 mln in February it added. In March last year the unadjusted unemployment total stood at 2.45 mln and represented 9.8 pct of the workforce. Seasonally adjusted unemployment was 2.29 mln. The Federal Labour Office said the number of workers on short time rose by 80629 to 462802 and the number of vacancies increased by 15263 to 180047. Labour Office President Heinrich Franke announcing the figures said the hesitant decline in the unadjusted jobless total reflected continuing bad weather slack activity in the capital goods sector and structural changes in the coal and steel industry. In a separate statement the Federal Statistics Office said the rise in the overall number of people in employment had slowed in February. The Office said that according to estimates for February 25.7 mln people were in work a rise of around 240000 or 0.9 pct compared with the same month in 1986. It noted that in January the year-on-year rise was 250000 or 1.0 pct and the number in work stood at 25.78 mln. The decline in February compared with January reflected seasonal factors it added. REUTER | GERMAN MARCH UNADJUSTED JOBLESS FALLS |
British Prime Minister Margaret Thatcher has improved her standing with voters according to the first opinion poll published since her return from the Soviet Union. Thatcher is seeking re-election for a third term and the newspaper said there would now be pressure on her to go for a June or even a May election to capitalise on her Soviet trip. The survey by the Harris Research Centre for todays London Daily News said more than half of the 767 voters polled by telephone believed she had improved the prospects of arms reductions and peace while 22 pct said they were more likely to vote for her now than before her visit. The poll was bad news for Labour opposition leader Neil Kinnock. It showed that his popularity had slumped following his trip to Washington last week to explain his anti-nuclear policies. Thirty five pct of those polled said their opinion of him had gone down since the trip and only 13 pct were more in favour of him. In contrast 46 pct said they were more impressed with Thatcher after her trip to the Soviet Union. Only 14 pct rated her less highly. REUTER | THATCHER PROSPECTS BOOSTED BY USSR TRIP, POLL SAYS |
The Bank of England said it has forecast a shortage of around 700 mln stg in the system today. Among the main factors maturing assistance and take-up of treasury bills will drain 546 mln stg bills for repurchase by the market 76 mln a rise in note circulation 310 mln and bankers balances below target 105 mln. The outflow will be partly offset by 340 mln stg exchequer transactions. REUTER | U.K. MONEY MARKET DEFICIT FORECAST AT 700 MLN STG |
The Palm Oil Registration and Licensing Authority (PORLA) reports trade in crude palm oil (cpo) on April 2 as follows in ringgit per tonne delivered unless stated. April 752.50 south and central 751 north average 752.50 down 6.50. May 750 south down 11. Refined palm oil traded in bulk US dlrs per tonne fob. RBD palm oil May 320. RBD palm olein April 336 May 337.50 June 337. RBD palm stearin May 275. The cpo market was lower in light trading with April traded between 747.50 and 755 ringgit per tonne. The refined palm oil market was slightly easier and April delivery of RBD palm olein to Singapore traded at 856.50 ringgit per tonne. REUTER | PORLA CRUDE PALM OIL TRADE REPORT FOR APRIL 2 |
Shearson Lehman Brothers Inc will no longer be working as financial advisers for financier Khoo Teck Puat Shearson said in a statement. Acting as Khoos advisers Shearson formulated a repayment proposal to the National Bank of Brunei Bhd (NBB). Brunei authorities closed the bank last November alleging 90 pct of its loans of 1.3 billion Brunei dlrs had been extended without documentation or guarantee to firms controlled by Khoos family and friends. Sources close to Khoo said creditor banks and the NBB are still studying the proposal submitted in February. REUTER | SHEARSON LEHMAN NO LONGER ADVISING KHOO |
The Central Bank issued 5.65 billion dlrs worth of certificates of deposit (CDs) boosting CD issues so far this year to 147.58 billion a bank spokesman told Reuters. The new CDs with maturities of six months one year and two years carry interest rates ranging from 4.07 pct to 5.12 pct he said. The issues are intended to help curb the growth of the M-1b money supply which has grown as a result of increasing foreign exchange reserves. The reserves hit a record 53 billion U.S. Dlrs last month. REUTER | TAIWAN ISSUES MORE CERTIFICATES OF DEPOSIT |
<Toyo Umpanki Co Ltd> said it is considering setting up a European unit to produce forklifts in view of the yens rise and Japans self-imposed restriction on forklift exports to the European Community (EC). Belgium Britain and France are candidates for the plant. The company is negotiating with unspecified European makers and a decision is expected in August a spokesman said. Toyo currently exports 40 pct of its annual production of 14000 to 15000 units. Some 40 pct of exports go to the EC. Overall Japanese forklift exports in calendar 1986 fell to 14005 from 15991 a year earlier. REUTER | TOYO UMPANKI MAY MAKE FORKLIFTS IN EUROPE |
Fear of social instability and inflation has forced China to curtail a major economic reform -- overhauling a pricing system in which prices bear no relation to production costs. Despite pledges last year that price changes were needed to get the economy on the right track Peking has repeatedly said no major change will happen this year. The backtracking has occurred during a conservative backlash following the resignation in January of reformist Communist Party leader Hu Yaobang western diplomats and Chinese sources say. Price changes in the last two years have aroused great public discontent especially in the cities one western diplomat said. Chinese were used to stable prices for 30 years from 1949 when the communists took over. On a recent visit to two major cities the refrain from all the officials was the need to preserve social stability. A Chinese journalist said the reformers under-estimated the potential public resistance to price increases. A major review of all economic reforms is under way the biggest since the reforms began in 1979 because many things are not going well -- a large budget deficit too rapid price increases and no major improvement in productivity of state firms the Chinese journalist said. This view was reflected by the official Peoples Daily in a major article this week. The daily said price increases had been taking place too quickly in recent years. In future price changes should be only in small steps it said adding that wage increases and lax monetary policies had resulted in too much money chasing too few goods. The Chinese journalist said the review was in part due to political factors. Economics and politics are inseparable in China. But the western media are wrong to classify the leadership into reformers and conservatives. All the leaders agree on the main direction -- economic reform and the open-door he said. But there are differences of opinion on the pace of reform and on specific policies. No one is advocating a return to how things were before 1979. Those who say prices should reflect production costs believe the issue is vital to Chinas economy. Sugar is an example. An official newspaper said earlier this year that over 40 pct of the countrys sugar mills were losing money or had closed because the price of sugar had not changed for 20 years while the production costs have risen sharply over the same period. The western diplomat said Chinese leaders did not fear a backlash against rising prices would result in rioting in the streets which they had the means to control. The bottom line is how such protests would be used by those in the power struggle (inside the Communist Party) he said. Said a foreign lawyer referring to the crisis sparked by student demonstrations which led to Hus replacement The leadership here is a self-perpetuating oligarchy. There is no way that it is going to give up power. The Chinese journalist added that China appears to have reached a crossroads. There is no clear proposal as to what to do next he said. Premier Zhao (Ziyang) has instructed his think-tanks to come up with how to continue the reforms in 1988. But for the time being at least the path leading to price reforms is out of favour. REUTER | CHINA CURTAILS KEY REFORM GOAL OF REALISTIC PRICES |
MIM Holdings Ltd <MIMA.S> said it has issued 23.33 mln shares to Preussag AG <PRSG.F> to complete the previously announced purchase of 20 pct of <Norddeutsche Affinerie AG> from Preussag. Terms of the acquisition of 10 pct of Norddeutsche Affinerie from Degussa AG <DGSG.F> are currently being resolved MIM said in a statement. Norddeutsche Affinerie will then be owned 40 pct by Metallgesellschaft AG <METG.F> and 30 pct each by MIM and Degussa but MIM said it and Metallgesellschaft are proposing a further arrangement to give them 35 pct each. REUTER | MIM COMPLETES PART OF NORDDEUTSCHE AFFINERIE BUY |
Denmarks seasonally adjusted unemployment rate fell to 7.8 pct of the workforce in February from 7.9 pct in January against 7.9 pct in February 1986 the National Statistics Office said. The total number of unemployed in February was 213200 against 215700 in January and 216600 in February 1986. REUTER | DANISH UNEMPLOYMENT FALLS TO 7.8 PCT IN FEBRUARY |
Meals and feed on a cif Rotterdam basis opened quietly this morning with mixed to slighlty firmer seller indications compared with yesterdays midday levels market sources said. Early buying interest was low despite a weaker dollar against European currencies they added. No trades were reported so far. US soymeal indicated between unchanged and one dlr a tonne lower compared with yesterday. Brazilian soymeal pellets were offered between one dlr lower and one higher while Argentines indicated up to two dlrs a tonne higher than yesterday. Cornglutenfeed pellets were indicated between unchanged and one dlr lower while citruspulp pellets were offered at slightly firmer levels compared with yesterday midday. Seller indications for sunmeal pellets were between one dlr higher and 0.50 dlrs lower than yesterday while linseed expellers were up to two dlrs above yesterdays midday levels. REUTER | EUROPEAN SOY/FEED MARKET OPENS QUIETLY |
Pakistans decision to suspend tea import licences will hurt Kenyan tea exports in the short term while exporters seek new markets sources close to Nairobi broking houses and exporters said. Broking house officials in the Sri Lankan capital Colombo yesterday told Reuters Pakistan had suspended the licences in order to link tea imports to Pakistani exports. The latest available figures show that Kenyan exports to Pakistan mainly tea were worth 75 mln dlrs in 1985 while imports from Pakistan amounted to only 4.8 mln dlrs. Kenya provides over 50 pct of Pakistans tea imports. The Nairobi sources said the Pakistani decision did not come as a surprise as Pakistan had been complaining of the trade imbalance for some time. We are very disappointed that Pakistan took such action ... (it) will certainly hurt Kenyas tea industry in the short term as Pakistan is Kenyas second largest market a source at one broking house told Reuters. One tea broker said Pakistans move had already affected Kenyas tea trade and was largely responsible for an average fall of two shillings a kilo at the export auction in Mombasa last Monday. The trend is likely to continue until other countries replace Pakistan which usually buys all qualities of our tea he added. Kenya has for a long time relied on Britain Pakistan Egypt and to a lesser extent the United States as major markets for its tea the sources added. Small-scale exporters who export mainly to Pakistan would be worst hit by the Pakistani move as it would take them longer to find new outlets they said. REUTER | PAKISTANI DECISION WILL HURT KENYAN TEA EXPORTS |
An big expansion in bilateral trade is expected as a result of Swedish Prime Minister Ingvar Carlssons visit to China a official of Chinas Foreign Economic Relations and Trade Ministry official said. He told the China Daily that petroleum coal cotton non-ferrous metals and electric engines could help balance the trade running at over three-to-one in Swedens favour. Total trade reached 290 mln dlrs last year up 32 pct on 1985 according to Chinese statistics. Swedish sources said major paper mill projects and an aviation agreement would be discussed during Carlssons one week visit. REUTER | SWEDISH PRIME MINISTER'S CHINA VISIT BOOSTS TRADE |
The United States is stepping up its bid to win a share of a multi-billion dollar project to build Japans next jet fighter the FSX as the countrys Defence Agency nears a decision agency sources said. General Dynamics Corp <GD.N> and McDonnell Douglas Corp <MD.N> of the U.S. Have separately suggested joint development of the FSX with Japanese firms. Officials said the Agency was still studying the project but agency sources said the assessment was in the final stages. The officials said the agency had received a briefing on a development proposal from General Dynamics to modify its F-16 jet. The firms team arrived here on March 30. They declined to elaborate on the briefing. A team from McDonnell is arriving next Monday with a similar proposal based on its F/A-18 Hornet the Agency said. A Pentagon team of about 10 experts will follow up with a one-week visit starting on April 11 to discuss the projected plane with the Agency the officials said. Five major Japanese makers will also present briefings this month they said. A spokesman for the group including Mitsubishi Heavy Industries <MITH.T> and Kawasaki Heavy Industries <KAWH.T> declined to disclose details. The agency has been studying three possibilities: development of a new fighter-bomber by Japanese makers with or without foreign participation modifying F-4EJ Phantoms the Agency now uses or purchase of a foreign aircraft. The contract will be worth an estimated 1000 billion yen for 100 FSXs. The agency plans to decide by June and seek initial research funds in the 1988 budget press reports said. REUTER | U.S. FIRMS BID TO BUILD JAPAN'S NEXT FIGHTER |
The joint committee of Taiwan soybean importers awarded a contract to Cigra Inc of Chicago to supply a 54000 tonne cargo of U.S. Soybeans a committee spokesman told Reuters. The cargo priced at 213.87 U.S. Dlrs per tonne c and f Taiwan is for delivery between April 20 and May 5. REUTER | TAIWAN BUYS 54,000 TONNES OF U.S. SOYBEANS |
South Koreas M-2 money supply fell two pct to 33463.4 billion won in March from 34030.3 billion in February provisional Bank of Korea figures show. It rose a revised 0.5 pct in February and was up 14.7 pct from a year earlier. M-1 money supply fell 8.7 pct to 7767.8 billion won in March against a revised rise of 4.3 pct in February. It has increased 8.3 pct since March last year. Bank officials said the March falls were due mainly to various measures by the bank to absorb excess money. REUTER | SOUTH KOREAN MONEY SUPPLY FALLS IN MARCH |
<Skandia International Holding AB> the overseas offshoot of Swedish insurance group Forsakrings AB Skandia <SKDS.ST> said it was buying a 29.9 pct share in the London-quoted property and financial services company <Nevi Baltic Plc>. No financial details were given. Nevi Baltic with a 1986 turnover of 20 mln stg and total assets of 70 mln stg is controlled by Norwegian finance company <Nevi AS> which will retain a 30.1 pct stake in the British unit Skandia said in a statement. The deal is subject to formal approval from the Swedish central bank the statement added. REUTER | SKANDIA INTERNATIONAL BUYS STAKE IN NEVI BALTIC |
Raw sugar futures had a quiet opening call of 38 lots with prices holding steady from last night with gains of 20 to 80 cents a tonne dealers said. Aug was trading at 157.60 dlrs from 157.40 asked yesterday. The modest rise continued the recent rally from an oversold situation but dealers noted there was little fresh physicals news to stimulate activity. Whites tenders are scheduled for next Wednesday by Syria for 36000 tonnes and Greece for 40000 tonnes while Pakistan is due to tender on April 11 for 100000 tonnes whites they said. This week has seen whites buying by India and Egypt. REUTER | LONDON SUGAR OPENS STEADY BUT QUIET |
Tug crews are preventing the movement of foreign-flag container vessels in and out of the ports of Sydney Melbourne and Fremantle shipping sources said. They said maritime unions imposed bans on late Wednesday for reasons that are obscure but seem to be linked with claims for a pay rise above the 10 dlrs a week awarded by the Arbitration Commission nationally to all workers recently. Only about 10 vessels are being delayed but the bans will affect container terminal movements and will disrupt liner schedules they said. The dispute goes to the Commission on Monday they said. REUTER | AUSTRALIAN TUG CREWS DELAY FOREIGN CONTAINER SHIPS |
U.K. Domestic wheat markets dropped about one stg per tonne early this morning following overnight news that the EC is releasing a further 300000 tonnes of wheat from British intervention stores for the home market over a three month period. April deliveries of denaturable wheat were offered in East Anglia at 124 stg and May at 125 stg per tonne both one stg down on yesterdays traded rates. The market is expecting U.K. Wheat futures to show a similar loss at todays opening. REUTER | U.K. WHEAT MARKET EASES ON INTERVENTION RELEASE |
Cocoa futures fell to session lows by midmorning posting losses from last night of six to two stg a tonne in 1987 deliveries dealers said. Weekend profittaking by jobbers and general book-squaring featured the fall which was aided by steady sterling versus the dollar and lack of offtake in the physicals market. Dealers said the market was switch and straddle-bound in that any pressure on one particular month was certain to be reflected in adjacent deliveries. The undertone however remained cautious as operators await an eventual start to ICCO buffer stock buying dealers said. The market was originally forecast to open with average five stg gains from last night following New Yorks firmer close yesterday dealers said. But this was largely counter-balanced by currency factors. Near July traded at its session low of 1327 stg after one hour versus 1333 bid last night and an early high of 1335. Volume midmorning was 730 lots including 350 lots crossed and 108 switches. There was no sign of any origin activity. REUTER | LONDON COCOA TRADES AT LOWS BY MIDMORNING |
Japan should increase foreign access to its farm products market while encouraging further development of domestic agriculture a government report said. The white paper on agriculture for the year ended March 31 said active participation in writing world farm trade rules at the next round of General Agreement on Tariffs and Trade (GATT) talks will help prepare Japan to improve access. Agriculture Ministry sources said the paper marked an easing in Japans tough position on agricultural imports which stressed the need for strict controls on some products to maintain self-sufficiency in food. Japan now produces only 30 pct of its annual grain needs down from 61 pct some 20 years ago official figures show. The paper said Japanese agriculture has been slow to improve productivity and demand/supply imbalances. The relative shortage of farmland in Japan is mainly responsible for higher domestic prices it said. The strong yen has meant lower input material prices but has also resulted in higher agricultural imports which has worsened working conditions among part-time farmers the paper said. This could make it difficult to improve the industrys structure the paper said. To solve these problems and to reduce farm product prices to more reasonable levels Japan should try to restructure the the agricultural sector to improve productivity and make it self-supporting it said. REUTER | JAPAN STUDY URGES FOREIGN ACCESS TO FARM MARKETS |
South Korea will press institutional investors to sell shares they are holding and oblige them to buy monetary stabilisation bonds if they want to make further stock investments a finance ministry spokesman said. He said Finance Minister Chung In-yong Bank of Korea Governor Park Sung-sang and officials of the Securities Supervisory Board agreed that the stock market was over-heated and decided to take measures to cool it down. Ministry officials said the recent market boom was fuelled mainly by ample liquidity and excessive demand from institutions and speculative investors. The spokesman said industrial firms with bank loans worth 50 billion won or more should either issue convertible bonds or offer new shares in order to raise funds to help repay their loans. Securities houses will not be allowed to hold shares worth more than 40 pct of their paid-in capital and investment trust firms 50 pct the spokesman said. But he did not give a deadline for compliance. Other insitutitions should also reduce the volume of their share-holdings he added. The composite index a weighted average of 355 listed firms closed at 398.72 yesterday. It started 1987 at 264.82. The spokesman said industrial firms with bank loans worth 50 billion won or more should either issue convertible bonds or offer new shares in order to raise funds to help repay their loans. Securities houses will not be allowed to hold shares worth more than 40 pct of their paid-in capital and investment trust firms 50 pct the spokesman said. But he did not give a deadline for compliance. Other insitutitions should also reduce the volume of their share-holdings he added. The composite index a weighted average of 355 listed firms closed at 398.72 yesterday. It started 1987 at 264.82. REUTER | S. KOREA ATTEMPTS TO COOL OVER-HEATED STOCK MARKET |
Suzuki Motor Co Ltd <SZMT> said it is recalling about 63000 of its compact 1300-cc SA-413 cars. The cars produced between May 1984 and January 1987 need modifications because insufficient space between the fuel tube and the cooling fan switching coupler could cause them to catch fire under ordinary driving conditions the spokesman said. Some 53100 of the cars affected were sold abroad. REUTER | SUZUKI RECALLS 63,000 CARS |
Bass Plc <BASS.L> and <Horizon Travel Plc> said terms have been agreed for an offer worth around 94.8 mln stg for Horizon by Bass. The offer values each Horizon share at some 0.213 of a Bass ordinary share or 190p. This is based on a price of 892p the Bass share quotation at 1630 gmt on April 2. Horizon said its board and financial advisers consider the offer to be fair and reasonable and the board will unanimously recommend acceptance to its shareholders. Horizon shares jumped 23p to 188 after the announcement while Bass shares dipped 13p to 879. Bass has for some time regarded overseas holidays as an area for expansion and in pursuit of this objective acquired a 25.6 pct holding in Horizon in 1985 when it set up the jointly owned hotel company. Both Bass and Horizon said that Basss resources will enable Horizons businesses to expand strongly this year. On March 30 Bass said it had agreed to sell its Pontins U.K. Holiday camps to a newly formed private company Pontins Ltd for some 57.5 mln stg. REUTER | HORIZ0N AGREES TO 94.8 MLN STG BID FROM BASS |
Grain handling at Rotterdam ports main grain terminal was at a standstill today as members of the largest Dutch transport union FNV staged a lightning strike for the third day running. Pieter van der Vorm managing director of Graan Elevator Mij (GEM) which handles 95 pct of grain passing through the port said their main Europoort terminal was out of action because of a strike by technical staff. The actions in support of union demands in negotiations over a new labour agreement began on Wednesday when grain handlers stopped work. Van der Vorm said that if strikes continued on todays scale for some time vessels coming to unload grain in Rotterdam would face delays but this was not happening yet. Wednesdays actions left GEMs facilities 40 pct operational and there were only limited strikes yesterday. Talks between unions and employers yesterday and today produced no result but FNV spokesman Bert Duim said the union was prepared to put their key demand for a 36 hour working week at the bottom of the agenda. Van der Vorm said however the unions demands on a range of issues were far in excess of the managements final offer. REUTER | ROTTERDAM'S MAIN GRAIN TERMINAL CLOSED BY STRIKE |
<Citibank NA> and <Tokyo Sogo Bank Ltd> the largest mutual loan and savings bank in the Tokyo area have signed an agreement to cooperate on retail banking a Tokyo Sogo spokesman said. Citibank a subsidiary of Citicorp <CCI> plans to start retail banking in Japan and is expected to provide Tokyo Sogo with help in this area he told Reuters. The two banks will exchange customer information and cooperate on credit card and foreign exchange business he said. REUTER | CITIBANK AND TOKYO SOGO SIGN RETAIL BANKING ACCORD |
South Korea will pay about 20 pct more for ethylene imported from Japan in the second quarter of the year because increased plastic production in both countries has boosted demand and tightened supplies chemical industry sources said. South Korea has agreed to pay Japanese trading houses just over 400 dlrs C and F per tonne up from an average of 350 dlrs in the first quarter and throughout 1986 they said. South Korean demand for imported ethylene this month has risen to 17000 tonnes from 10000 last month and the country may face difficulties covering the extra volume they said. <Korea Petrochemical Industries Corp> a producer of high density polyethylene (HDPE) and polypropylene will more than double its ethylene requirements to 9000 tonnes a month from 4000 when it completes a plant expansion at the end of this month the sources said. <Honan Ethylene Corps> import requirements have risen to 8000 tonnes a month from 6000 tonnes last year to meet strong demand from <Honan Petrochemical Co> which makes HDPE and ethylene glycol and <Hangyang Chemical> which produces low-density polyethylene and vinyl chloride monomer they said. But Japans ethylene plants are already operating at almost full capacity of 4.5 mln tonnes a year just to fulfill domestic demand the sources said. And even if Japan had the additional ethylene there is a logistical problem of finding extra appropriate-sized vessels to ship it to Korea said one trading house source. Japanese trading companies are looking to alternative sources to supply South Koreas needs including Saudi Arabia Qatar and Mexico they said. But long-haul voyages are expensive as the product has to be shipped at a temperature of minus 103 degrees centigrade to keep it in a liquid form they said. Japan has no plans to invest further in the ethylene industry in order to cope with the additional demand despite rising prices trading house sources said. South Korea has two projects in hand which will increase its ethylene production capacity by 500000 tonnes a year by the end of 1989 so the strong demand surge for imports is only a medium-term trend they said. REUTER | SOUTH KOREA TO PAY MORE FOR JAPANESE ETHYLENE |
Swiss inflation is likely to rise in 1987 and 1988 because of inflationary tendencies in the domestic economy the Centre for Economic Research of the Federal Institute of Technology said in its spring review. It forecast a rise in consumer prices of two pct in 1988 compared with 1.3 pct in 1987. Low import prices in 1986 helped to keep annual inflation down to 0.8 pct. The centre said that in general the outlook for the Swiss economy in 1987 and 1988 remained favourable despite the more difficult international economic climate facing export industry. The centre repeated its previous forecast that growth in Swiss domestic product would slow to 2.2 pct in 1987 from 2.5 pct in 1986. It revised its forecast for 1988 GDP growth to 1.7 pct from 1.6 pct in its last autumn review. Domestic demand will continue to replace exports as the motor of economic growth. Private consumption will grow by three pct in 1987 and two pct in 1988 against 3.75 pct in 1986. Growth in goods exports will slow to 1.75 pct in 1987 from 2.1 pct in 1986 but pick up slightly to 2.5 pct in 1988. All three figures are well below the Swiss average for recent years. In 1985 for example exports increased by 9.1 pct. The centre said the strength of the Swiss franc which has firmed sharply in recent months would continue to put pressure on Swiss exporters. It forecast that imports of goods would grow by a more modest 4.5 pct in 1987 and 3.25 pct in 1988 than in 1986 when import prices fell substantially and imports rose by 8.2 pct. Industrial production will grow by 1.6 pct in 1987 and 1.2 pct in 1988 compared with 4.2 pct in 1986. REUTER | SWISS 1988 INFLATION SEEN AT TWO PCT - INSTITUTE |
Raw sugar futures firmed to session highs by midmorning securing gains from last nights basically steady close of 1.00 to 1.80 dlrs a tonne in a 166 lot volume. Shortcovering against an oversold situation continued to play a part in the extended rally with unsettled dollar rates versus sterling providing additional support. Recent and prospective whites buying in the world market was supportive but the raws section lacked feature dealers said. India and Egypt bought white sugar this week while next week sees tenders by Pakistan Greece and Syria they said. May was at 154 dlrs from 152.80 asked last night. All London Daily prices rose two dlrs a tonne on tone. The Raws price was set at 150 dlrs Fob and 173 dlrs (107.50 stg) Cif. The Whites price was at 192 dlrs from 190 yesterday. REUTER | LONDON SUGAR TRADES AT SESSION HIGHS BY MIDMORNING |
President Reagans reduced strength in Congress has been demonstrated by the U.S. Senates decision to approve a highway spending bill despite his attempts to veto it political analysts said. Hes very weakened said William Schneider of the private American Enterprise public policy group after the Senate voted 67-33 yesterday to ignore Reagans veto of the road bill. Schneider contrasted Reagans failure with his previous ability to win clear majorities on major issues. Sustaining his veto required him to win just one-third of the votes in either house of Congress. It was the third consecutive fight over a presidential veto on which Congress had defied Reagan whose clout with the legislature has been greatly diminished by the arms-for-Iran scandal and the capture of a majority in the Senate by the opposition Democratic party in the November 1986 election. Congress overrode Reagans veto of a popular water projects bill in January and last autumn Congress rejected his veto of economic sanctions against South Africa. But this time the president laid his full authority on the line even making a rare journey to Capitol Hill to plead for support in person. With both the House and Senate in Democratic hands analysts say Reagan is swiftly becoming a lame duck facing difficulties in enacting his own legislative agenda especially given the furore over the Iran arms deal. The situation contrasts with Reagans first six years in office when a Republican-controlled Senate and the backing of conservative Democrats in the House enabled Reagan to win passage of most of his legislative priorities. Reagans ability to veto legislation he dislikes had been his strongest weapon in dealing with Congress but his defeat on the highway bill was expected to reduce the credibility of his veto power. Senator John Chafee a Rhode Island Republican told the New York Times earlier this week that if Reagan lost there will be no brake on -- if you suggest a presidential veto you will be laughed away. Yesterdays defeat came two days after the House of Representatives overwhelming rejection of a presidential veto on the highways bill by 350 votes to 73. White House strategists had presented the veto fight as a test of Reagans strength as he attempted to recover from the scandal over secret arms sales to Iran. Senate Republican leader Robert Dole of Kansas pleaded with fellow party members to back Reagan because this may determine the strength of the presidency for the next 21 months. The defeat showed the problems facing any president in his final years in office. Reagans term expires in January 1989. A majority of Republicans in the House of Representatives and 13 in the Senate apparently decided their own political concerns have become more important than the presidents. President Reagan he aint going to be running in 1988 but I am Congressman Arthur Ravenel a South Carolina Republican said on Tuesday of his decision to back a bill that means money and jobs for his home district in new highway construction. The defeat interrupted a good streak for Reagan who won applause for his selection in February of former Senate majority leader Howard Baker to replace Donald Regan as White House chief of staff and was believed by most political analysts to have benefitted from a televised speech and a news conference on the Iran affair last month. A steady drop in Reagans job approval ratings appeared to level off in recent weeks. The president slumped from about 65 pct last autumn to about 42 pct after the Tower Commission report in February said he had failed to exercise proper control over the dealings with Iran. His approval rating hovers at 50 pct. Reagan said he was deeply disappointed by the Senate defeat but my efforts to control spending are not diminished. Democratic leader Robert Byrd said this isnt going to make or break the president. REUTER | REAGAN'S STRENGTH IN U.S. CONGRESS APPEARS SAPPED |
The Belgian National Bank cut interest rates on one two and three-month treasury certificates to 7.30 pct from 7.40 pct effective immediately the bank said in a telex message. The Bank last adjusted its short-term treasury certificate rates on March 23 when it also reduced rates for all three periods by 0.10 points. A National Bank spokesman said the latest adjustment would bring the rates closer in line with currently prevailing interbank interest rates. The spokesman said it was too early to predict whether the move would herald a reduction in discount rate which currently stands at eight pct when the Bank holds its regular weekly meeting at which the rate is discussed next Wednesday. The discount rate generally moves in tandem with the three-month treasury certificate rate. However there is no formal link and the discount rate was not adjusted following the March 23 changes. REUTER | BELGIUM CUTS TREASURY CERTIFICATE RATES |
A Swedish Finance Ministry committee forecast that British Petroleum Plc <BP.L> may have to close its refinery in Gothenburg because of an anticipated worsening of the Swedish petroleum industrys competitiveness. It said in a report that the future of the Swedish refining business was bleak due to the steady drop in domestic oil consumption since the mid-1970s a possible tightening of rules on sulphur content and competition from Norways Mongstad facility of <Den Norske Stats Olieselskab> (Statoil) <STAT.OL> when its expansion is completed in the 1990s. The committee said the BP refinery which lacks a de-sulphurisation plant was likely to be closed or sold unless costly investments were made to enhance the facilitys capacity to refine a broader range of products. But the committee noted that capacity utilisation had in recent years been above that of the European refining industry on average. The BP plant in which Swedens state-owned <OK Petroleum AB> has a 22 pct started up in 1967 and has an annual capacity of 4.7 mln tonnes. There was nobody at British Petroleum immediately available for comment. | CLOSURE OF BP SWEDEN REFINERY FORECAST |
A top Japanese official has insisted that the country was living up to its microchip pact with the US. It cannot be thought nor should it be thought we are trying to dominate semiconductors Ministry of International Trade and Industry (MITI) vice minister Makoto Kuroda said in a newspaper interview. Kuroda who will head a Japanese team going to Washington next week for emergency talks on semiconductors told the Tokyo Shimbun that he would try his best to convince the United States of Japans case. Washington last week announced an imposition of tariffs on Japanese electronic products in retaliation for what it sees as Tokyos failure to abide by the pact. Under the agreement Japan would stop selling cut-price chips in world markets and try to buy more American chips. Kuroda told the newspaper that Tokyo has already taken measures to back up the pact including production cutbacks. While Japanese users are trying to increase chip imports Tokyo cannot guarantee the United States a specified share of what in Japan is a free market he said. REUTER | JAPAN DENIES CHIP MARKET DOMINATION CHARGES |
Investors on the Brussels bourse who flocked to participate in the flotation of shares in glassmaker <Glaverbel SA> may be rather more cautious when the offer of three million new shares in Belgian sugar refiner <La Raffinerie Tirlemontoise SA> takes place next month analysts said. This is mainly because Raffinerie Tirlemontoise is in the relatively static sugar market they added. The Glaverbel issue of 755000 shares at 1850 francs each was more than 100 times oversubscribed and analysts said this showed that there will be no lack of liquidity for the sugar refiners offer. He declined to say at what price the new shares will be offered when they are floated between May 5 and 15 saying Belgiums Banking Commission has yet to approve arrangements. However analysts said local press speculation that the price would be between 1500 and 1800 francs appeared not too far from the mark. Although the bourse saw some selling recently because of international factors the key Belgian cash market index closed yesterday at 4436.05 against 3582.17 a year ago a rise which has been fuelled in part by increasing international interest. REUTER | BELGIAN BOURSE PREPARES FOR SECOND BIG FLOTATION |
The recent fall in world sugar prices due to increased producer pricing sales and evidence of export availability has encouraged renewed buying interest from China and the Soviet Union London trade house E.D.And F. Man said. Further purchases are expected by the Peoples Republic of China at the lower end of the recent price range which should limit the downside movement it said in its latest monthly market report. And it is believed that the Soviet Union will need to return to the market to take a further 250000/350000 tonnes for May/June shipment Man added. The Soviets purchased five cargoes of raws for April/May shipment towards the end of last month which brings its total purchases to around 1.65 mln tonnes Man said. Production estimates for the Thai crop now exceed 2.3 mln tonnes and the final outturn appears set to reach around 2.5 mln tonnes. However this upturn in the Thai crop is being countered by a reduction in Chinas production forecast to 5.3 mln tonnes from 5.5 mln estimated earlier. Market participation by Cuba suggests that its crop could be close to last years 7.3 mln tonnes. But even with similar production Man expects Cuban exports to be significantly down. Cuba was reported to be carrying 1.3 mln tonnes of stocks in September 1985 of which some 440000 tonnes were used to boost its 1985/86 exports to about 6.9 mln. But as it will not be able to draw on surplus stocks this year Man estimates Cubas export availabilty will be reduced to 6.4 to 6.5 mln tonnes. However Cuba is only one of a large number of exporters with reduced availability Man said. Since 1980 the total free market export supply has fallen to 18 mln from about 22 mln tonnes. But at the same time free market demand has also fallen by almost the same amount which has left exporters chasing falling import requirements. A fairly tight balance now appears to have emerged. But the difficult task of keeping production advances at bay still remains as at least one more season of production deficit is needed to eliminate some of the remaining surplus stocks still overhanging the market Man said. The increasing cases of record production as a result of record yields and better husbandry have forced sugar producers to strive for greater efficiency. As this increase in efficiency reduces the marginal cost of production sugar exporters may become more responsive to prices and in particular to upward price movements Man said. Commenting on the current row between the EC Commission and sugar producers Man said despite the recent improvement in the level of restitutions they are still insufficient to fully compensate producers when exporting on the world market. Unless there are further improvements at least some sugar is expected to remain in intervention it added. REUTER | RECENT SUGAR FALL SPARKS SOVIET, CHINESE BUYING |
AEG AG <AEGG.F> said it will cooperate with Californian-based INTEL Corp <INTC> on the development of automation systems. The cooperation will centre on a new real-time operation system with 32-bit microprocessors for the solution of automation problems in production and processing technology as well as energy supply AEG said at the Hanover trade fair. AEG will restructure its hardware division from July 1 calling it <MODCOMP GmbH>. It is expected to have sales of 200 mln marks in 1987 and will include AEGs 100 pct takeover of <Modular Computer Systems Inc> and <ATM Computer GmbH>. REUTER | AEG TO WORK WITH INTEL ON AUTOMATION DEVELOPMENT |
The Bundesbank did not intervene as the dollar was fixed lower at 1.8162 marks after 1.8270 yesterday dealers said. The dollar firmed slightly from its opening 1.8135/45 marks in very quiet pre-weekend trading and dealers said they expected business to remain thin this afternoon. Trading is at an absolute nil nobody wants to get involved ahead of next weeks meetings one dealer with a U.S. Bank said referring to the Group of Seven industrial nations and the International Monetary Fund meetings in Washington. Dealers saw the dollar staying at current levels but possibly rising above 1.83 marks on any supporting remarks emerging from the meetings. But the dollars medium-term direction is soft one dealer said. The dollar could well come under renewed pressure after the international forums as attention returned to the U.S. And the U.K.s trade dispute with Japan dealers said. Cross currency trading was also subdued though sterlings rise above 1.60 dlrs helped it to firm against the mark. It was fixed higher at 2.924 marks after yesterdays 2.910. The pound was seen staying between 2.90 and 2.93 marks for the next days dealers said. Eurodollar deposit rates were steady from this morning with six month funds unchanged at midpoint 6-11/16 pct. Six month euromarks stayed at midpoint 3-7/8 pct. The Swiss franc firmed to 119.86 marks per 100 at the fix from 119.71 yesterday and the yen rose to 1.244 marks per 100 from 1.243. The French franc was little changed at 30.050 marks per 100 after 30.055 yesterday. REUTER | NO INTERVENTION, DOLLAR FIXED AT 1.8162 MARKS |
The General Electric Co Plc <GECL.L> said its Electrical Projects division had won an initial 2.5 mln stg order to supply robots to the Soviet motor industry. Eighteen paint-spraying robots will be installed at the Gaz truck and car plant in Gorky GEC said in a statement. If the factory standardised on the GEC product further orders for up to 80 more robots could be expected it added. Division engineering director Alan Davies said he expects further agreements soon with the Soviet machine tool and chemical equipment industries. These would cover the part manufacture of 100 to 200 GEC robots per year in the USSR. REUTER | GEC WINS ROBOTS ORDER FROM USSR |
Keppel Corp Ltd <KPLM.SI> said it has decided to increase its convertible bond issue to 75 mln U.S. Dlrs from 60 mln following overwhelming response since its launch on March 24. This clearly reflects the confidence investors have in the Keppel group. The bond will improve the groups debt structure significantly Keppel chairman Sim Kee Boon said. When the bonds are converted Keppels debt and interest expense will be further reduced and place the group in a much better financial position to expand and diversify its activities Sim said. The 10-year bonds issued at par will carry a four pct annual interest and will be convertible at 3.12 Singapore dlrs per one-dlr share in Keppel. The issue is lead-managed by <Morgan Grenfell and Co Ltd> with <Daiwa Singapore Co Ltd> and <Morgan Grenfell (Asia) Ltd> and is syndicated among leading domestic and international banks and securities houses. Last month Keppel reported a group net profit of 5.1 mln Singapore dlrs for the year ended December 31 1986 against a loss of 129.6 mln dlrs in 1985. REUTER | KEPPEL RAISES BOND ISSUE TO 75 MLN DLRS |
Shr 8.4 rupees vs seven Pretax profit 650.7 mln vs 555.6 mln Net profit 390.7 mln vs 325.6 mln Sales 8.24 billion vs 7.07 billion Div 34 pct vs 30 pct Tax 260 mln vs 230 mln Dividend payable on June 3 The company is 51 pct subsidiary of Unilever Plc.The full name of the company is HINDUSTAN LEVER LTD <HINU.BO>. REUTER | HINDUSTAN LEVER PROFITS RISE FOR 1986 |
Central bank governor Jose Fernandez said the 10.3 billion dlr debt restructuring package he and Finance Secretary Jaime Ongpin negotiated with the Philippines commercial creditors was better than Mexicos. I think we got a better deal. It was really an enormous drop a reduction in rates and that to me is the critical element he told Reuters. He was reacting to comments by local economists who said Manilas debt accord was no better than Mexicos which had won a 20-year repayment including a seven-year grace last year at 13/16 points over London interbank offered rates (Libor). The Philippines clinched a repayment of 17 years including a grace period of 7-1/2 years on 10.3 billion dlrs of its total debt of 27.8 billion. But Fernandez said what was more significant was that Manila came down from 1-7/8 on the new money and 1-5/8 on the restructured debt to 7/8 points. Mexico on the other hand dropped to 13/16 from 14/16. They got a 1/16 reduction. We got almost a one percentage point reduction he said. Asked why some features of the debt agreement such as the token prepayments of principal were not made public immediately he said These are very long documents and in a press statement you can only cover the key points. But these will be made available to you. Ongpin confirmed on Tuesday that a Reuter report from New York that Manila will pay its commercial creditors 111 mln dlrs over 1987-1989 was accurate. He omitted the token prepayments in previous announcements but said there was nothing secret about them. REUTER | PHILIPPINES SAYS DEBT PACT "BETTER THAN MEXICO'S' |
The Bank of England said it has revised its estimate of todays shortfall to 750 mln stg from 700 mln. REUTER | U.K. MONEY MARKET DEFICIT REVISED UPWARD |
The Indian State Trading Corporation (STC) bought 20000 tonnes of optional origin soybean oil and 6000 tonnes of rbd palm olein at its import tender yesterday traders said. Pakistan however rejected offers at its tender for 12000 tonnes of rbd palm oil but is expected to reenter the market next week they said. The STC soyoil purchase was for May 20/Jun 20 shipment at 319 dlrs per tonne cif and the palm olein for Apr 25/May 25 shipment at 355 dlrs per tonne. REUTER | INDIA BUYS VEGETABLE OILS, PAKISTAN TO RETENDER |
Dutch soymeal imports fell to 75500 tonnes in January from 97070 in December and 120228 in January 1986 Central Bureau of Statistics figures show. The U.S. Was the largest supplier in January with 38760 tonnes down from 46899 in December and 63111 in January 1986. Brazil supplied 1263 tonnes in January down from 7411 in December and 27088 in January 1986. Dutch imports of Argentine soymeal in January were 34663 tonnes down from 41365 tonnes in December but above the 13375 tonnes in the year ago month. Total Dutch exports of soymeal in January were 128015 tonnes down from 133559 tonnes in December and 155050 exported in January 1986. European Community countries were the main destinations for Dutch soymeal exports with 102355 tonnes compared with 124026 in December and 116080 in January 1986. Among third country destinations the Soviet Union was the largest costumer in January taking 11985 tonnes compared with nil in December and 26074 tonnes in January 1986. REUTER | DUTCH SOYMEAL IMPORTS FALL IN JANUARY |
Spain has revised some of its main economic targets for 1987 after studying the performance of the economy in the first quarter the economy ministry said in its monthly bulletin. Internal demand is now forecast to rise four pct against a previous target of 3.5 pct. Mariano Rubio governor of the Bank of Spain the central bank yesterday said internal demand was currently growing at an annual rate of six pct and it had to be brought down to four pct if the government were to meet its five pct inflation target this year. Inflation was 8.3 pct in 1986. The forecast for private consumption growth remains unchanged at three pct although public consumption is revised upwards to 2.5 pct from 2.0 pct. Growth in domestic demand will fuel imports expected to increase by 8.6 pct against an originally estimated 7.1 pct. Export growth has been revised downwards to 3.7 pct from 5.2 pct due to the pesetas continuing strength against the dollar and slack external demand. Slow growth of exports and a tight rein on state spending has lowered estimated GDP growth to three pct in 1987 from an earlier forecast 3.5 pct. GDP grew by three pct last year. The economy ministry is holding its inflation forecast to five pct in spite of minister Carlos Solchagas doubts last week on whether this target could be maintained if wage settlements continue to rise above the governments recommended five pct ceiling. Unions and employers dispute the average wage increases agreed so far this year. Trade unions calculate wage settlements have produced average rises of 7.3 pct against 5.5 pct estimated by the employers federation CEOE. REUTER | SPAIN REVISES ECONOMIC TARGETS FOR 1987 |
The Bank of England said it has operated in the money market this morning purchasing 170 mln stg bank bills. This compares with the Banks revised estimate of a 750 mln stg shortfall. In band two the Bank bought 72 mln stg at 9-13/16 pct in band three 52 mln at 9-3/4 pct and in band four 46 mln at 9-11/16 pct. REUTER | U.K. MONEY MARKET RECEIVES 170 MLN STG HELP |
French sugar producer Beghin-Say is not currently planning to withdraw the sugar it has placed into intervention despite the exceptionally high rebate awarded at this weeks European Community (EC) sugar tender Beghin-Say President Jean-Marc Vernes told Reuters. The maximum rebate of 46.864 Ecus per 100 kilos on Wednesday was the largest ever granted according to traders. Vernes said he was satisfied the European Commission has started to move in the right direction but said his company had no plans to change its decision to put sugar into intervention. But Vernes said he hoped that in the next few weeks a final agreement would be reached with the commission which would allow operators to withdraw the sugar from intervention. European operators offered 854000 tonnes of sugar into intervention to protest about export rebates which they say are too low. Over 785000 tonnes of this sugar was accepted by the commission on Wednesday according to commission sources. Under EC regulations however operators have another four to five weeks to withdraw the sugar from intervention before payment is made for it. A total of 706470 tonnes of French sugar and 79000 tonnes of West German sugar has been accepted into intervention trade sources said here. This amount represents about a third of annual EC exports to non-EC countries. Beghin-Say declined to specify the amount of sugar it had offered into intervention but said it was below 500000 tonnes. Producers say they have been losing 2.5 to 3.0 Ecus on every 100 kilos exported due to the failure of rebates to fully bridge the gap between EC and world prices. Wednesdays rebate was 0.87 Ecus short of what producers say is needed to get an equivalent price to that for sales into intervention traders said. Vernes said operators hope to get a rebate which equates to the full intervention price and said Wednesdays tender was a step in the right direction. Sugar producers here said the volume of sugar authorised for export since the begining of the current campaign had been inadequate and that more should be exported now to compensate. Trade sources said new regulations governing export rebates which are due to be adopted shortly may smooth the path for the commission to award larger export rebates in future. One source at a leading French sugar house said it seemed the commission had understood the protest action and was now moving towards adapting the situation accordingly thereby allowing the operators to withdraw their sugar from intervention once they got satisfaction. REUTER | BEGHIN-SAY NOT PLANNING TO WITHDRAW SUGAR |
West German Finance Minister Gerhard Stoltenberg said the currency agreement reached in Paris in February had been successful and would be continued. Stoltenberg told journalists before he attends next weeks International Monetary Fund meeting in Washington that: The ... Strategy to stabilise currencies around current levels has proven its worth and will also determine future developments. Stoltenberg declined to comment specifically on what he would consider to be an undervalued dollar but said a dollar around 1.80 marks created problems for West Germanys exports. Stoltenberg said studies by international organisations had made it clear that especially in the U.S. And in Japan major efforts remained necessary to support adjustments in foreign trade balances via necessary corrections to economic policy. No-one would benefit if after years of over-valuation the U.S. Dollar fell into the other extreme that is strong under-valuation he said. Stoltenberg said West Germany had a keen interest in a swift agreement between the U.S. And Japan concerning the current trade dispute over semi-conductors. Asked whether he believed the markets would test the Paris currency accord Stoltenberg did not comment specifically but noted that much of what had been discussed in Paris had not been published. The Paris declaration did not state the levels at which central banks of the major industrialised countries would intervene. Stoltenberg said that everything had been carefully considered. He said he had nothing further to add. Stoltenberg also appeared to suggest that West Germany was now no longer under any pressure from the U.S. Government to stimulate its economy. He declined to respond specifically to a question on this subject but said You must attach particular importance to the consensus which was reached in Paris. The minister nevertheless added that he would make clear during his trip to Washington that West Germanys nominal trade figures gave a false impression about actual trade flows. Stoltenberg noted that in 1986 Bonns exports fell by a nominal two pct while its nominal imports fell by 10.7 pct. West Germanys imports dropped largely because of foreign currency developments and the cheaper price of oil and led to a record trade surplus last year. However Stoltenberg said that in real terms West Germanys exports by volume had increased by 1.5 pct while real imports had risen by a much stronger 6.2 pct. In this way West Germany had made its contribution to economic stability Stoltenberg added. Stoltenberg noted the government expected imports to rise by a real four to five pct in 1987 with exports stagnating. He said it was too early to revise official forecasts for West Germanys economic growth this year. The government has forecast an unchanged 2.5 pct rise in Gross National Product. The Kiel Institute a leading research body is still expecting growth of three pct but some other research institutes have revised forecasts down to below two pct. Stoltenberg said the wide range of predictions showed how many imponderables had to be taken into account and said no drastic changes in official forecasts were needed. REUTER | STOLTENBERG SAYS PARIS ACCORD POLICY TO CONTINUE |
Finance Minister Kiichi Miyazawa said he recently talked with U.S. Treasury James Baker over the telephone but declined to say what was discussed. Miyazawa told reporters he talks with the U.S. Treasury Secretary from time to time on economic issues. The Yomiuri Shimbun daily newspaper reported Baker called Miyazawa early this week to warn him next weeks Group of Seven talks would not be a success unless Japan expands domestic demand. The newspaper quoted ruling Liberal Democratic Party (LDP) sources. Miyazawa told reporters the LDP will come up with a draft economic package to stimulate the economy before he leaves next week for Washington. The Finance Minister leaves on April 7 to attend the IMF and World bank meetings. Miyazawa did not say what would be in the LDP package. REUTER | MIYAZAWA, BAKER TALKED RECENTLY OVER TELEPHONE |
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The Soviet Union conducted an underground nuclear test aimed at perfecting military techology the official news agency Tass reported. Tass said the test was carried out at 0120 gmt at the Semipalatinsk testing ground in Kazakhstan Soviet Central Asia. It was the third Soviet underground blast since Moscow halted an 18-month nuclear test moratorium last February saying Washingtons refusal to join the ban had forced it to resume testing. Moscow began its unilateral nuclear test moratorium in August 1985 calling on the United States to agree to a total ban on testing as the first step to nuclear disarmament. Last December it announced that it would end the freeze after the first U.S. Test this year. Washington had continued testing saying the blasts were necessary to maintain its nuclear deterrent and that problems remained concerning the monitoring of a test freeze. The United States staged one test on February 3 and another on February 11. Moscow responded with a blast on February 26 and a second on March 12. Soviet officials and the state media blamed the resumption of testing on the U.S. Decision not to join the freeze. Reuter | MOSCOW STAGES NUCLEAR TEST |
The Finance Ministry has asked Japanese commercial banks to moderate their dollar sales bank dealers said. They said the Ministry had telephoned city and long-term banks earlier this week to make the request. One dealer said this was the first time the Ministry had made such a request to commercial banks. Finance Ministry officials were unavailable for immediate comment. Dealers said the Ministry has already asked institutional investors to reduce their sales of the dollar. REUTER | JAPAN ASKS BANKS TO CUT DOLLAR SALES - DEALERS |
The following deliveries are scheduled for April 6 against Chicago Baord of Trade Futures - Silver - 392 lots at Chicago Illinois. Kilo Gold - 21 lots. 16 at Chicago Illinois 5 at New York New York. Reuter | CBT METALS/FINANCIALS DELIVERY LOCATIONS |
<Pioneer Sugar Mills Ltd> said it considered the proposed 2.20 dlrs a share cash takeover offer announced by CSR Ltd <CSRA.S> on March 31 to be too low in view of the group*hK!UiIe and prospects. CSRs bid for the 68.26 pct of Pioneers 99.80 mln issued shares it does not already hold values the entire grop_j9culd make an alternative share offer but has not yet announced terms. Pioneer recommended in a statement that shareholders retain their stock pending the boards response once it receives full details of the CSR offer. REUTER | PIONEER SUGAR SAYS CSR TAKEOVER OFFER TOO LOW |
The composite index plunged by 15.24 points the biggest daily drop in seven years on news of government measures to cool down the heated stock market dealers said. The composite index closed at 383.48 with declines leading advances by 328 to 23. Todays fall was the biggest since the coutry started using the index in 1980. Volume shrank to 47.6 billion won from yesterdays 93.3 billion after the finance ministry said it would limit share-holdings of institutional investors. Dealers said the market was depressed throughout the day on widespread heavy selling. New buying immediately stopped after the government announced it would increase share supply by obliging financial institutions to sell off their holdings but the market is expected to recover before long one dealer said. Samsung Electronics fell 1500 won to 38600 Samsung Semiconductor 1000 to 24890 Hanyang Chemical 600 to 11700 Hyundai Motor 100 to 2577 and Kia Motor 70 to 1730. Against the trend construction shares rose slightly rose on rumours of imminent government support for the industry. REUTER | S. KOREAN SHARES PLUNGE ON GOVERNMENT MEASURES |
West Germanys chemical industry fears mounting risks will hurt earnings but hopes 1987 turnover will stabilize around 1986s 140 billion marks Josef Strenger a board member of the industry association VCI said. Strenger management board chairman of Bayer AG <BAYG.F> told a news conference at the Hanover trade fair the main dangers were stagnation in world trade the lower dollar as well as crude oil and commodity prices. Prospects of higher operating costs were also seen harming earnings he said. Turnover took a considerable downturn at the start of 1987 after falling 5.9 pct in 1986. The chemical industry which relies heavily on exports was badly hit by mark appreciation in 1986 and lower turnover was mainly due to foreign exchange losses Strenger said. Exports fell 6.4 pct to 72 billion marks in 1986 and competition from U.S. And British firms increased. Savings from lower oil and commodity prices were eaten up by price competition and increased costs. Strenger said 1986 operating profits of German chemical firms were slightly worse than the year before but the improved financial and balance sheet structure after three good years neutralized the negative impact. Strenger said the industry would try to increase production in the U.S. To make up for lost export possibilities out of West Germany. The lower dollar was the main reason for an 8.3 pct fall in exports to North America an 11.4 pct drop to Latin America and 22.6 pct plunge to the Middle East. Exports to Western Europe eased 3.5 pct and Far East exports due to an economic revival in Japan dropped 5.2 pct. Strenger noted that the industry had lost public confidence following several cases of chemical pollution of the Rhine late last year. REUTER | GERMAN CHEMICAL INDUSTRY SEES LOWER PROFITS |
Central bank governor Jose Fernandez said the 10.3 billion dlr debt restructuring package he and Finance Secretary Jaime Ongpin negotiated with the Philippines commercial creditors was better than Mexicos. I think we got a better deal. It was really an enormous drop a reduction in rates and that to me is the critical element he told Reuters. He was reacting to comments by local economists who said Manilas debt accord was no better than Mexicos which had won a 20-year repayment including a seven-year grace last year at 13/16 points over London interbank offered rates (Libor). The Philippines clinched a repayment of 17 years including a grace period of 7-1/2 years on 10.3 billion dlrs of its total debt of 27.8 billion. But Fernandez said what was more significant was that Manila came down from 1-7/8 on the new money and 1-5/8 on the restructured debt to 7/8 points. Mexico on the other hand dropped to 13/16 from 14/16. They got a 1/16 reduction. We got almost a one percentage point reduction he said. Asked why some features of the debt agreement such as the token prepayments of principal were not made public immediately he said These are very long documents and in a press statement you can only cover the key points. But these will be made available to you. Ongpin confirmed on Tuesday that a Reuter report from New York that Manila will pay its commercial creditors 111 mln dlrs over 1987-1989 was accurate. He omitted the token prepayments in previous announcements but said there was nothing secret about them. REUTER | PHILIPPINES SAYS DEBT PACT "BETTER THAN MEXICO'S' |
West German net currency reserves rose by 200 mln marks in the fourth week of March to 82.2 billion following a rise of 300 mln marks in the previous week the Bundesbank said. Non-currency reserves were unchanged at about 2.5 billion marks bringing net monetary reserves to 84.7 billion. REUTER | GERMAN NET CURRENCY RESERVES RISE |
U.K. Physical wheat values recovered from initial losses of one to two stg per tonne caused by overnight news of the release of an additional 300000 tonnes of intervention feed wheat for U.K. Weekly home market tenders. Consumer buyers were attracted by the cheaper offers traders said and by early afternoon the market had recovered to one stg down to unchanged. U.K. Wheat futures also rallied to end the morning unchanged to 0.05 stg easier. In East Anglia April deliveries of feed wheat traded at 123 and May at 124 but were subsequently bid one stg a tonne The market for denaturable wheat in Liverpool held comparatively steady with sellers holding back due to uncertain conditions. April deliveries made 127.50 and June 129.50 stg per tonne basis Liverpool. The fob market for wheat started easier but here again selling pressure lifted around midday. Apr/Jun shipments traded fob east coast at 123 stg per tonne. This compared with 124 paid for April yesterday and 125 for May/June. REUTER | LONDON GRAINS SEES WHEAT RECOVER FROM LOWS |
Norwegian oil companies Norsk Hydro A/S <NHY.OL> and Saga Petroleum A/S <SAGO.OL> said they have applied for offshore exploration drilling licenses in Gabon on Africas west coast. Saga Petroleum said it has applied for a 35 pct share and operatorship on one block adding Finnish oil company Neste <NEOY.HE>(25 pct) Spains Hispanoil (25 pct) and the World Banks International Finance Corporation (IFS) (15 pct) have joined Saga to fill remaining shares in the application. Saga spokesman Roy Halvorsen told Reuters he expected Gabonese officials would reply to the application by Easter. Halvorsen said this is the first time Saga has applied to operate on OPEC-member Gabons continental shelf adding that Italian oil company Agip is heading a group of applicants in a separate bid for the same license. Norsk Hydro has also applied for an undisclosed share in a single exploration license in which U.S. Oil company Tenneco has already been assigned operatorship company spokesman Bjoern Tretvoll said. REUTER | NORSK HYDRO, SAGA SEEK DRILLING RIGHTS IN GABON |
A top Japanese official has insisted that the country was living up to its microchip pact with the US. It cannot be thought nor should it be thought we are trying to dominate semiconductors Ministry of International Trade and Industry (MITI) vice minister Makoto Kuroda said in a newspaper interview. Kuroda who will head a Japanese team going to Washington next week for emergency talks on semiconductors told the Tokyo Shimbun that he would try his best to convince the United States of Japans case. Washington last week announced an imposition of tariffs on Japanese electronic products in retaliation for what it sees as Tokyos failure to abide by the pact. Under the agreement Japan would stop selling cut-price chips in world markets and try to buy more American chips. Kuroda told the newspaper that Tokyo has already taken measures to back up the pact including production cutbacks. While Japanese users are trying to increase chip imports Tokyo cannot guarantee the United States a specified share of what in Japan is a free market he said. REUTER | JAPAN DENIES CHIP MARKET DOMINATION CHARGES |
TOP DISCOUNT RATE AT UK BILL TENDER RISES TO 9.5261 PCT |
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The departure of James Bakers closest aide Deputy Treasury Secretary Richard Darman will not change the course of Washingtons domestic and international economic policies U.S. officials said. Darman who has worked alongside Baker for six years was widely credited with helping him mastermind initiatives on currency management and international economic cooperation. U.S. Officials said Darman also played a key role in shepherding President Reagans sweeping tax reform plan through the U.S. Congress. But they flatly dismissed suggestions that his departure to the investment banking firm of Shearson Lehman Brothers signaled the Baker team was breaking up or that the Treasury Secretary himself might leave soon. It really does not mean that he took the opportunity as it came up one official said. Another commented Baker will miss him but hes not going to stand in his way. There has been widespread speculation since last autumn that Darman sought a Wall Street job. Officials said Darman felt the passage of tax reform late last year marked an appropriate moment to bow out. Baker acknowledged Darman would be sorely missed. Dick Darman has contributed mightily to the success of this administration over the past six years and his departure represents a substantial loss he said. U.S. Officials admitted Darmans absence would be an undoubted blow to Baker who has relied on him for policy advice both at the White House and in Reagans second term at the Treasury. One aide once described Darman as indispensable to Baker. Baker is widely thought to want a more stable currency system and Darman is generally credited by officials of other nations as Bakers leading theorist on this issue favouring target zones to limit currency fluctuations. Earlier this year monetary sources said the U.S. Treasury unsuccessfully sounded out allies on a target zone system. But a U.S. Official disputed the assessment that with Darman gone Baker would abandon international initiatives. Bakers work as head of Reagans Economic Policy Council spearheading trade policy and his skills in negotiating with the Democrat-controlled Congress will go on as before. Darmans strength was not as an economist but as a political strategist and thats Bakers strength too the official said. There were already indications that Baker who throughout his time in government has relied on a closely-knit circle of advisers has moved swiftly to find a successor. One possibility is that Baker might turn to George Gould who holds the number three Treasury position of Under-Secretary. Gould another close confidante has known Baker for years. Before joining the Treasury in November 1985 Gould was a partner at the Wall Steet firm of Wertheim and Co and formerly headed Donaldson Lufkin and Jenrette Securities Corp. The Darman announcement came on the eve of the semi-annual meetings of the International Monetary Fund and the World Bank where many policies Darman helped shape will be debated. He helped Baker devise the September 1985 Plaza Agreement when the United States Japan West Germany France and Britain curbed the dollars strength. The pact was a major turning point in U.S. Policy ending a period of disdain for economic cooperation and intervention in currency markets. Darman also worked on some other Baker initiatives like the Tokyo Summit agreement to intensify coordination of economic policies among the leading industrial countries and the recent Paris Agreement to stabilise currencies and stimulate global growth. These policies are collectively aimed at redressing the huge gap between Japan and West Germanys trade surpluses and the United States massive trade deficit. That policy goal still remains a prime objective of the Reagan Administration and will not change with Darmans departure. REUTER | U.S. TREASURY POLICIES SAID UNCHANGED BY DEPARTURE |
 U.S. SHAREHOLDER MEETINGS - APRIL 3 Burlington Northern Inc Wedgestone Realty Investors Reuter  | |
 U.S. DIVIDEND MEETINGS - APRIL 3 Flowers Indus Providence Energy Sterling Drug Reuter  | |
 U.S. STOCKS EX-DIVIDEND - APRIL 3 NYSE STOCKS... czm 2-for-1 stock split eye 10 cts gcn 15 cts gcn pr a 16-1/2 cts ihs 09 cts nbd 30 cts psn 2-for-1 stock split AMEX... wbp 10 cts Reuter  | |
The top accepted rate of discount at the weekly U.K. Treasury bill tender rose to 9.5261 pct from 9.3456 pct last week. Applications at the lowest accepted price of 97.625 stg were allotted around 81 pct of the amount applied for and applications above that price were allotted in full the Bank of England said. A total of 100 mln stg of Treasury bills was offered for sale this week. Last week the average rate of discount was 9.3157 pct. REUTER | TOP DISCOUNT RATE AT UK BILL TENDER 9.5261 PCT |
South Africas Electricity Supply Commission (Escom) which last year launched a massive restructuring programme after the ending of foreign loans to the country in 1985 said it met its budget targets in 1986 without foreign finance. The electricity company which supplies about 90 pct of South Africas power said in its annual report that it failed to attract any foreign loans in 1986 but it was confident of meeting its funding requirements this year despite available finance from abroad remaining restricted. The utility which once was South Africas largest borrower of foreign funds said prearranged import financing facilities are expected to provide foreign funds of only about 300 mln rand this year. A further 550 mln rand will be borrowed from a blocked account administered by the South African government for the eventual repayment of about 13 billion rand in short-term loans. These are currently frozen by an effective moratorium on repayments. The blocked account is part of a debt accord recently reached with South Africas foreign creditor banks. South Africa declared a moratorium on repayments of about 14 billion dlrs of its original 24 billion dlr total foreign debt in September 1985 after foreign bankers abruptly cut off credit lines to the country because of concern over its deteriorating political and economic climate. Pretoria last week announced that it had reached a three-year rescheduling agreement with the major international creditors that will effectively extend a moratorium on most repayments of the short-term portion of the debt until mid-1990. Escom said it plans to meet the bulk of its funding requirements this year by raising 2.2 billion rand in the South African financial markets against a total of 1.75 billion rand raised last year. The borrowing programme for 1987 is well within the capacity of the (domestic) financial markets without pressure being placed on interest rates the corporation said. Last year we embarked on the most dramatic restructuring programme ever attempted by a major South African business and we have largely achieved what we set out to do Escom chairman John Maree told a news conference. MORE | ESCOM SAYS TARGETS MET WITHOUT FOREIGN FINANCE |
The Bank of England said it has revised its estimate of todays shortfall to 800 mln stg from 750 mln before taking account of 170 mln stg morning assistance. REUTER | U.K. MONEY MARKET DEFICIT FURTHER REVISED UPWARD |
Total Dutch imports of cocoa beans rose to 17978 tonnes in January from 13961 in January 1986 while exports fell to 1852 tonnes from 3111 the Central Bureau of Statistics said. Cocoa butter imports rose slightly to 1699 tonnes from 1507 while exports fell slightly to 6211 from 6293 tonnes. Imports of cocoa powder fell to 316 tonnes from 469 and exports to 5944 from 6106 tonnes. Reuter | DUTCH COCOA BEAN IMPORTS RISE IN JANUARY |
Dutch green coffee imports fell to 10430 tonnes in January from 13506 tonnes in January 1986 and exports fell to 366 tonnes from 615 the Central Bureau of Statistics said. Imports of Colombian coffee were 2169 tonnes (3025 in January 1986) Brazilian 483 (3715) Indonesian 455 (145) Guatemalan 196 (126) Cameroun 464 (560) and Ivory Coast 353 (839). Reuter | DUTCH GREEN COFFEE IMPORTS FALL IN JANUARY |
European Community finance ministers and central bankers meet in Belgium this weekend to discuss strengthening Europes joint currency float amid continuing worries about turbulence on foreign exchanges. Belgian Finance Minister Mark Eyskens who will host the informal talks told Reuters the ministers and central bank chiefs would discuss the situation on currency markets in the light of the February agreement among leading industrialised countries to stabilise exchange rates around present levels. In an interview Eyskens said he felt the Paris accord between the United States Japan West Germany France Britain and Canada had proved itself more or less workable. But doubts over its effectiveness and durability have been growing since fears of a trade war between the United States and Japan over computer microchips pushed the dollar to a record low against the surging yen early this week. The talks at the Belgian resort of Knokke are being held to coordinate the ECs positions on monetary issues and Third World debt ahead of the Spring meetings of the International Monetary Fund and World Bank in Washington next week. The EC gathering begins tonight with a dinner but the main discussions will take place tomorrow. Continued international currency turbulence could undermine plans for reinforcing the European Monetary System the joint float holding eight EC currencies within narrow fluctuation bands which will feature high on the weekend agenda. Eyskens has repeatedly said that Europe needs a period of calm on world currency markets and in particular a more stable dollar before it can set about strengthening the EMS to make it more resilient against exchange rate swings. The EMS has been taking a battering over the last year as the falling dollar has sent funds surging into the dominant EMS currency the West German mark forcing ministers to undertake two major realignments of parities within nine months. In the interview Eyskens made clear he was hoping for a wide-ranging discussion on the future of the eight-year-old EMS on the basis of proposals for bolstering it drawn up by the ECs Monetary Committee and the Committee of Central Bank Governors. The committees were asked to come up with the proposals after the last reshuffle of EMS exchange rates in January. Eyskens repeated calls for the European Currency Unit the fledgling EC currency at the core of the system to take over the marks dominant role in the EMS - a proposal that has met with a cool response in West Germany. He said EC Commission President Jacques Delors would report to the meeting on problems raised by plans to liberalise capital movements fully within the 12-nation bloc by 1992 such as the need for harmonising taxes and banking controls. Eyskens said liberalisation of capital movements without strengthening the EMS would be an element of destabilisation in the Community. He said the crucial issue in the debate was whether member states were willing to push further towards the ECs goal of monetary integration on the basis of an EMS that included management of exchange rates by some kind of common institution instead of by national central banks as at present. Plans for the creation of such an institution foreseen by the EMSs founding fathers have been thwarted by the reluctance of some countries notably West Germany to gove up their sovereignty in the monetary field. EMS development has also been held up by Britains refusal so far to join the systems core exchange rate mechanism. REUTER | EC MINISTERS WILL DISCUSS STRENGTHENING EMS FLOAT |
Japan Air Lines ordered checks on its fleet of Boeing Co. <BA> 747-SR jumbo jets after a major defect was found in one of them last month an airline spokesman said. Inspectors running a routine check found that one of three diagonal braces attaching an engine to the wing had snapped due to metal fatigue he said. He described the defect as major but said it was the first time such a fault had been found in the JAL fleet. He said the part was sent to Boeing for examination but nothing had been heard from them yet. A Boeing spokesman was not immediately available for comment. JALs entire fleet of eleven 747-SRs had been inspected but no similar defect was found the airline spokesman said. Reuter | JAL SAYS MAJOR DEFECT FOUND IN BOEING PLANE |
CANADA MARCH FOREIGN RESERVES RISE 1.23 BILLION U.S. DLRS - OFFICIAL |
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The U.S. civilian unemployment rate fell to 6.6 pct in March from 6.7 pct in February the Labor Department said. The number of non-farm payroll jobs rose 164000 last month after rising a revised 236000 in February. That was down from the previously reported 337000 rise in February. The March unemployment rate was the lowest since March 1980. It had remained unchanged at 6.7 pct for three straight months before the March decline. The rise in non-farm payrolls was the smallest since a decline last June of 75000 the department said. Last months unemployment rate was down from the 7.2 pct level in March 1986. Growth in jobs continued in March but was slower than in recent months with the gains concentrated in service industries. The number of goods-producing jobs fell 68000 in March while service-producing jobs rose 232000 to bring the total jobs in the departments survey of businesses to 102.03 mln in March. Business and health services showed the largest gains in jobs while manufacturing employment fell by 25000. The average work week fell to 34.8 hours in March from 35.0 hours in February the department said. Manufacturing hours fell to 40.9 per week from 41.2 hours in February but overtime hours increased to 3.7 from 3.6. The departments survey of households showed the number of unemployed stood at 7.85 mln out of a work force of 119.2 mln. The number of persons working part time for economic reasons fell in March to 5.46 mln from 5.78 mln in February. The loss of factory jobs brought the March total to 19.19 mln jobs and was concentrated in automobile electrical and electronic manufacturing. Construction employment also lowered the number of jobs in the goods-producing sector falling by 45000 after seasonal adjustment the department said. Mining employment was little changed in March and has not experienced any substantial erosion since the rapid job losses in oil and gas drilling in the first two-thirds of 1986. Other service industries that increased jobs last month were finance insurance and real estate. Reuter | U.S. MARCH JOBLESS RATE FELL TO 6.6 PCT |
The Bank of England said it has operated in the money market this afternoon buying back bills totalling 347 mln stg. This brings the total help so far today to 517 mln stg and compares with the Banks revised estimate of an 800 mln stg shortfall. The central bank purchased in band one 20 mln stg at 9-7/8 pct in band two 254 mln at 9-13/16 pct in band three 66 mln at 9-3/4 pct and in band four seven mln stg at 9-11/16 pct. REUTER | U.K. MONEY MARKET GETS 347 MLN STG AFTERNOON HELP |
Times Mirror Co said its Newspaper Publishing groups advertising revenues increased 12.8 pct to 121.2 mln dlrs in the four weeks ended March one from 107.5 mln dlrs a year earlier. For the nine weeks January one through March one advertising revenues were 245.7 mln dlrs up 10.7 pct from the 222.1 mln dlrs in the January one through March 2 1986 period. Reuter | TIMES MIRROR <TMC> FEBRUARY AD REVENUES ROSE |
Unions are planning a week of state-wide strikes in New South Wales starting midnight next Tuesday to protest against a state move to cut workers compensation. NSW Labour Council secretary John MacBean who is also an executive member of the Australian Council of Trade Unions (ACTU) said the council has authorised the strikes and other industrial action. The NSW government has introduced in the state parliament a new Workers Compensation Act which would cut by up to one third the cash benefits paid to injured workers. MacBean said almost every business sector would be hit and the unions would extend their action for two or three more weeks if the state government went ahead with its plan. Reuter | AUSTRALIAN UNIONS PLAN NEW SOUTH WALES STRIKES |
Altex Industries Inc said it has agreed in principle to buy 82 pct of two privately-held affiliated computer retail companies for an undisclosed amount. Altex said the Denver-based companies had revenues of over seven mln dlrs last year. They are Integrated Management Data Systems Inc which sells accounting software systems to the oil and gas industry and Integrated Management Systems Micro Distribution Division Inc which distributes micro-computer products. Altex said it expects to close the transaction which is subject to financing in July. Reuter | ALTEX <AII> SETS ACQUISITION OF COMPUTER FIRMS |
Tug crews are preventing the movement of foreign-flag container vessels in and out of the ports of Sydney Melbourne and Fremantle shipping sources said. They said maritime unions imposed bans on late Wednesday for reasons that are obscure but seem to be linked with claims for a pay rise above the 10 dlrs a week awarded by the Arbitration Commission nationally to all workers recently. Only about 10 vessels are being delayed but the bans will affect container terminal movements and will disrupt liner schedules they said. The dispute goes to the Commission on Monday they said. Reuter | AUSTRALIA TUG CREWS BAR FOREIGN CONTAINER SHIPS |
Qtly div eight cts vs eight cts in prior qtr Payable April 30 Record April 15 Company said its board intends to declare cash dividends quarterly and plans to pay a five pct stock dividend annually following the close of each fiscal year. The initial five pct stock dividend was paid December 22 to holders of record November 30. Reuter | STANLINE INC <STAN> REGULAR DIVIDEND |
After years of refusal Moscow has agreed to discuss the problems of Afghanistan and Kampuchea in its talks with Peking on normalising relations Chinese Vice-Foreign Minister Qian Qichen said. He told a news conference: Recently the Soviet Union expressed agreement to discuss this question. China has long referred to three obstacles to better relations -- Soviet troops in Afghanistan Moscows support for Vietnamese troops in Kampuchea and Soviet troop concentrations along the Chinese border. Reuter | CHINA REPORTS BREAKTHROUGH IN TALKS WITH USSR |
The finance ministry has proposed a change in rules affecting ownership of commercial banks by non-banking financial groups a ministry statement said. The proposals aim to block loopholes open to financial groups with banking subsidiaries. According to current rules these groups are not bound by the same regulations prevailing in the traditional banking sector. The finance ministry proposals follow a recent bid by the Proventus financial group to create a new holding company that would control the third-largest commercial bank Gotabanken and Wermlandsbanken a small regional bank. The proposal suggests that a holding company with a banking unit must be subject to the same rules which currently apply to the commercial banking operations the finance ministry said in a statement. It added that July 1 this year was the proposed date of implementation for the measures which will almost certainly be rubber-stamped by parliament. REUTER | SWEDEN MAKES PROPOSAL FOR BANKING CHANGE |
Santa Fe Southern Pacific Corp may have more difficulty combining its two railroads than fending off a possible takeover by Henley Group <HENG> which has accumulated almost a five pct stake in the real estate and railroad conglomerate analysts said. Takeover speculation has surrounded Santa Fe since Henley disclosed its stake in the company earlier this week but analysts and a Santa Fe official were skeptical a takeover is its intention. Analysts also said the company has strong defenses that would easily deter any suitor - one of those being its problems combining its two railroad properties which hang in regulatory limbo. Richard Fischer of Merrill Lynch and Co Inc said that Santa Fe at December 31 had 580 mln dlrs in cash and cash equivalents while its long-term debt to capital was just over 25 pct. This gives them plenty of borrowing power he said which could be used against an unwanted suitor. Henley Groups Chairman Michael Dingman has said he wants to take major positions in undervalued natural resource companies. He also told Reuters in an interview he is seeking an acquisition of from two billion to eight billion dlrs. Santa Fe officials dont appear concerned that Henley might launch a takeover. I would not characterize the atmosphere around here as one of concern one Santa Fe executive said about Henley. I think its wrong to assume Dingman has formed a firm strategy with Santa Fe said Mark Hassenberg who covers Henley for DLJ Securities. Analysts say the potential of Santa Fes land assets are likely to be realized slowly. They add that Santa Fes efforts to merge its two railroads remain in regulatory limbo sidetracking many of its strategic plans for the foreseeable future. These realities they said support the Henley Groups statement that its Santa Fe stake is only an investment. The more pressing problem facing Santa Fe is overcoming difficulties in merging its two railroads the Atchison Topeka and Santa Fe Railway Co and Southern Pacific Transportation Co. The merger would create the nations second-longest railroad. Last July the Interstate Commerce Commission (ICC) denied the merger on anticompetitive grounds. The company since has granted trackage-sharing rights to four western railroads to meet the ICCs concerns and persuade it to reopen the hearings in its three-year-old struggle to merge the lines. My guess is the commission will decide in three to six weeks whether to reopen hearings Fischer said. I believe theyve made an effort to satisfy the ICCs objections he said. But in doing so they havent pleased everyone. Before they had Burlington Northern on their side now Burlington is opposed to the way trackage rights are set up. If the hearings are reopened analysts predicted it will take six to nine months for everyone to have their say and up to another year for the ICC to decide. Santa Fe is in the midst of a 50-mln-share stock buyback program begun in 1984. It has bought back 33.7 mln shares as of February 1 when it had 154.7 mln shares outstanding a spokesman said. Among the shares repurchased were two stakes owned by Norfolk Southern one of 3.4 mln shares bought in 1986 and another of 1.7 mln shares in 1985 one analyst said. James Voytko at Paine Webber believes Santa Fe could fight off the Henley Group with its cash and credit. Citing the share buybacks from Norfolk Southern he said one of Santa Fes options if threatened could be to buy the Henley stake. It is indeed possible that Dingman sees this as a low-risk opportunistic investment Voytko said. People who follow Santa Fe have given me values of 45 dlrs to 50 dlrs a share said DLJ Securities Hassenberg. But Im certain that in Dingmans mind the company is worth more than that in breakup value. Reuter | TALKING POINT/SANTA FE SOUTHERN <SFX> |
Finance Minister Gerhard Stoltenberg said he will advise Brazil to take up discussions with its commercial bank creditors when he is in Washington for the International Monetary Fund (IMF) meeting next week. He told a news conference ahead of the IMF talks that discussions about developing country debt problems would play an important role on the agenda in Washington. Stoltenberg noted that Brazil had agreed in January to work together with the banks but said this pledge had not yet been fulfilled. After Brazil imposed a moratorium on interest payments on 68 billion dlrs worth of debt in February Brazilian Finance Minister Dilson Funaro sought to involve foreign governments in rescheduling talks with banks. But British Chancellor of the Exchequer Nigel Lawson rebuffed Funaros bid and said commercial bank loans were a matter for banks and not governments. West German bankers also said then that Brazil should seek an understanding with the IMF. Stoltenberg said in Bonn today that he had already told Funaro that the unilateral moratorium was a mistake. Stoltenberg said that despite progress in some areas the debt problems of a whole range of countries had recently become more difficult. He said flows from commercial banks had decreased markedly and that the refusal of some highly indebted countries to fulfil their commitments to private creditors or with the IMF was one reason for this. He also said that when debtor countries came up with good confidence-inspiring policies commercial banks should react with more flexibility in interest structures maturities and rescheduling. Many debtor countries had realised that it was not possible to mobilise capital flows and especially direct investments without such policies Stoltenberg said. REUTER | STOLTENBERG CALLS FOR NEW BRAZIL TALKS WITH BANKS |
Canadian foreign reserve holdings rose 1.23 billion U.S. dlrs in March to 7.77 billion dlrs the Finance Department said. The department said the change from February included a decrease of 258.1 mln dlrs from the repayment at maturity of a 1982 Swiss Franc 400 mln issue. Also included was also a 112.8 mln dlr decline from a net redemption of Canada bills. The par value of bills outstanding was 800.7 mln dlrs at March 31. This months reserves were 4.49 billion dlrs above March 1986s total of 3.28 billion dlrs. Reserve holdings in U.S. dlrs at end of March versus end of February were as follows. - U.S. dlrs 5.98 billion vs 4.47 billion - other foreign currencies 37.1 mln vs 319.9 mln - gold 874.0 mln vs 864.1 mln - special drawing rights 191.8 mln vs 188.6 mln - IMF Reserves 689.7 mln vs 705.7 mln. Reuter | CANADIAN FOREIGN RESERVES SURGE IN MONTH |
Japan should increase foreign access to its farm products market while encouraging further development of domestic agriculture a government report said. The white paper on agriculture for the year ended March 31 said active participation in writing world farm trade rules at the next round of General Agreement on Tariffs and Trade (GATT) talks will help prepare Japan to improve access. Agriculture Ministry sources said the paper marked an easing in Japans tough position on agricultural imports which stressed the need for strict controls on some products to maintain self-sufficiency in food. Japan now produces only 30 pct of its annual grain needs down from 61 pct some 20 years ago official figures show. The paper said Japanese agriculture has been slow to improve productivity and demand/supply imbalances. The relative shortage of farmland in Japan is mainly responsible for higher domestic prices it said. The strong yen has meant lower input material prices but has also resulted in higher agricultural imports which has worsened working conditions among part-time farmers the paper said. This could make it difficult to improve the industrys structure the paper said. To solve these problems and to reduce farm product prices to more reasonable levels Japan should try to restructure the the agricultural sector to improve productivity and make it self-supporting it said. Reuter | JAPAN STUDY URGES FOREIGN ACCESS TO FARM MARKETS |
Hilton Hotels Corp said its first quarter net income rose 37 pct paced by strength in both hotels and gaming. Based on preliminary results the company said net income rose to about 24 mln dlrs or 96 cts a share from 17.4 mln dlrs or 70 cts a share in 1986s initial three months. Reuter | HILTON <HLT> 1ST QTR EARNINGS UP ABOUT 37 PCT |
California Micro Devices Corp said it received an additional 3.2 mln dlr contract from General Dynamics Corp <GD> to supply electronic components contained in the guidance control for Defense Electronics Systems. Reuter | CALIFORNIA MICRO <CAMD> GETS ADDITIONAL CONTRACT |
British Prime Minister Margaret Thatcher has improved her standing with voters according to the first opinion poll published since her return from the Soviet Union. Thatcher is seeking re-election for a third term and the newspaper said there would now be pressure on her to go for a June or even a May election to capitalise on her Soviet trip. The survey by the Harris Research Centre for todays London Daily News said more than half of the 767 voters polled by telephone believed she had improved the prospects of arms reductions and peace while 22 pct said they were more likely to vote for her now than before her visit. Reuter | THATCHER PROSPECTS BOOSTED BY USSR TRIP, POLL SAYS |
<Pioneer Sugar Mills Ltd> said it considered the proposed 2.20 dlrs a share cash takeover offer announced by CSR Ltd <CSRA.S> on March 31 to be too low in view of the group*hK!UiIe and prospects. Pioneer recommended in a statement that shareholders retain their stock pending the boards response once it receives full details of the CSR offer. REUTER | PIONEER SUGAR SAYS CSR TAKEOVER OFFER TOO LOW |
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