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Major Japanese automakers are gearing up to equip sporty models with four-wheel steering a feature that could become standard on high-grade cars in the future automotive industry sources said. Two companies are ready to market such cars soon they said. Honda Motor Co Ltd will sell its Prelude with four-wheel steering from this Friday and Mazda Motor Corp officials say a model with the new steering will be out by mid-year. Mazda aims to ship the cars overseas before year-end but the decision will depend on initial consumer reaction. Nissan Motor Co Ltd has offered a less sophisticated four-wheel steering system on its Skyline since August 1985. Toyota Motor Corp has exhibited its developments in the field at a recent motor show and Mitsubishi Motors Corp said it will use the system in the near future. Though major U.S. And European automakers have also researched and tested the four-wheel system they say they are waiting to see consumer response to the Japanese cars and for further improvements in safety and costs. Four-wheel steering allows drivers to easily manoeuvre into parking spaces and gives more control on sharp turns. Mazda officials believe the new steering will improve safety. At extremes four-wheel steering gives a driver more control said one official. On slippery surfaces or at high speeds the system reduces unnecessary movement of the vehicle. While acknowledging the added vehicle stability a Honda engineer said: This invention is not intended to improve safety but is aimed at allowing everyone to drive easily. Mazdas electronic steering system tells the back wheels to turn in the opposite direction from the front wheels at slow speeds but in the same direction at high speeds. Hondas system which is mechanical is similar but the direction of the rear wheels is determined by the angle of the front wheels. With Nissans system the rear wheels move only parallel to the front. Automakers say professional drivers who have tested the four-wheel steering say it greatly improves handling. An official with one U.S. Vehicle manufacturer said four-wheel steering is a technical improvement but it is uncertain whether it will translate into higher sales or profits. All automakers are interested in something new he said. If it becomes a predominant factor everyone will want to follow. The official said four-wheel steering is partly a gimmick to sell cars. Its a benefit of a secondary nature compared with devices for fuel economy or emission control. General Motors Corp has developed a four-wheel steering system but is unlikely to market it within the next five years Y. Hojoh engineer with the Japan branch of General Motors Overseas Corp said. GM must consider the costs to the consumer he added. The industry sources said the additional cost of the system in Japan would probably make little difference to the consumer as it would be added to already high-priced models. REUTER | JAPANESE AUTOMAKERS TURN TO FOUR-WHEEL STEERING |
Japans Agriculture Ministry angered by U.S. Demands that Japan open its farm products market will tell U.S. Officials at talks later this month that liberalisation would harm existing U.S. Farm exports to Japan a senior ministry official said. Imports from the U.S. Would drop due to active sales drives by other suppliers the official who declined to be named said. Japan is the largest customer for U.S. Farm products and it is not reasonable for the U.S. To demand Japan liberalise its farm import market he said. Agriculture Minister Mutsuki Kato has said if the U.S. Insists Japan open its protected rice market it will also open its wheat market where volume and origin are regulated to protect local farmers. Australia and Canada could then increase their wheat exports as they are more competitive than the U.S. He said. End-users would also buy other origins grain traders said. U.S. Agriculture Secretary Richard Lyng who is due to visit Japan for talks between April 16-27 has said he will ask Japan to offer a share of its rice market to U.S. Suppliers and remove quotas on U.S. Beef and citrus imports. Other countries are already cutting into the U.S. Market share here. Australia the largest beef supplier to Japan has been trying to boost exports prior to the expiry of a four-year beef accord next March 31. Imports of U.S. Corn have fallen due to increased sales from China and South America while Japanese soybean imports from Brazil are expected to rise sharply this year although the U.S. Will remain the largest supplier. U.S. Feedgrain sales will also drop if Japan opens up its beef imports since Japan depends almost entirely on feedgrain imports mainly from the U.S. Japanese officials said. An indication of the U.S. Position came last December when Under Secretary of Agriculture Daniel Amstutz said Japan has the potential to provide one of the largest boosts to U.S. Agricultural exports with the beef market alone representing some one billion dlrs in new business. The U.S. Has also asked the General Agreement on Tariffs and Trade to investigate the legality of Japanese import controls on 12 other farm products including fruit juices purees and pulp tomato juice ketchup and sauce peanuts prepared beef products and miscellaneous beans. To help calm heated trade relations with the U.S. Japans top business group Keidanren has urged the government to remove residual import restrictions on agricultural products. But Agriculture Minister Kato has ruled out any emotional reaction and the senior ministry official said the farm issue should not become a scapegoat for trade pressure in the industrial sector. Japan is the largest buyer of U.S. Farm products and these issues should not be discussed on the same table the official said. REUTER | JAPAN MINISTRY SAYS OPEN FARM TRADE WOULD HIT U.S. |
Amatil Ltd <AMAA.S> said it proposes to make a two-for-five bonus issue out of its revaluation reserve to shareholders registered May 26. Shareholders will be asked to approve the issue and an increase in authorised capital to 175 mln shares from 125 mln at a general meeting on May 1 it said in a statement. The new shares will rank for dividends declared after October 31. Amatil in which B.A.T. Industries Plc <BTI.L> holds a 41 pct stake said it does not expect to maintain its latest annual dividend rate of 29 cents a share on the enlarged capital. REUTER | AMATIL PROPOSES TWO-FOR-FIVE BONUS SHARE ISSUE |
Shr 27.7p vs 20.7p Div 6.0p vs 5.5p making 10.0p vs 9.25p Turnover 1.34 billion stg vs 1.29 billion Pretax profit 48.0 mln vs 32.4 mln Tax 14.4 mln vs 6.9 mln Company name is Bowater Industries Plc <BWTR.L> Trading profit 63.4 mln vs 45.1 mln Trading profit includes - Packaging and associated products 23.2 mln vs 14.2 mln Merchanting and services 18.4 mln vs 9.6 mln Tissue and timber products 9.0 mln vs 5.8 mln Interest debit 15.4 mln vs 12.7 mln Minority interests 7.0 mln debit vs 6.2 mln debit Extraordinary items 15.4 mln credit vs 11.9 mln debit REUTER | BOWATER 1986 PRETAX PROFITS RISE 15.6 MLN STG |
The Bank of England said it forecast a shortage of around 250 mln stg in the money market today. Among the main factors affecting liquidity bills maturing in official hands and the take-up of treasury bills will drain some 505 mln stg while bills for repurchase by the market will remove around 194 mln. In addition a rise in note circulation and bankers balances below target will each drain around 110 mln stg. Partly offsetting these outflows exchequer transactions will add some 690 mln stg to the system today. REUTER | U.K. MONEY MARKET DEFICIT FORECAST AT 250 MLN STG |
South Koreas trade surplus is growing too fast and the government has started taking steps to slow it down Deputy Prime Minister Kim Mahn-je said. He told a press conference the government planned to increase investment speed up the opening of the local market to foreign imports and gradually adjust its currency to hold the surplus at a proper level. But he said the government would not allow the won to appreciate too much in a short period of time. South Korea has been under pressure from Washington to revalue the won. The U.S. Wants South Korea to cut its trade surplus with the U.S. Which rose to 7.4 billion dlrs in 1986 from 4.3 billion dlrs in 1985. Kim who is also economic planning minister said prospects were bright for the South Korean economy but the government would try to hold the current account surplus to around five billion dlrs a year for the next five years. Our government projections of eight pct GNP growth five billion dlrs of (current account) surplus and 12 pct growth in exports all seemed to be reasonable early this year. But now the surplus is growing faster than we expected he said. Trade ministry officials said South Koreas exports rose 35 pct to 9.34 billion dlrs in the first three months of this year while imports rose only 8.5 pct to 8.2 billion dlrs. Kim said the swing of South Koreas current account to a surplus of 4.65 billion dlrs in 1986 from an 890 mln dlr deficit in 1985 was very significant. The surplus enabled the country to reduce its foreign debt last year for the first time. South Koreas foreign debt which fell to 44.5 billion dlrs in 1986 from 46.8 billion in 1985 is still among the largest in Asia. This huge amount of our foreign debt has been one of the major constraints on our development... Last year was a major turning point for the Korean economy Kim said. Kim said his government plannned to reduce the ratio of foreign debt to the countrys GNP to about 20 pct in 1991 from about 50 pct in 1986. The government however does not want to accelerate reducing the debt by making an excessive trade surplus he said. Kim said a sudden rise in the surplus would cause inflation and lead to trade friction with Seouls major trading partners particularly the United States. We need a surplus because we have to reduce our debt but we are taking measures to hold the size of the surplus at a proper level Kim said. REUTER | SOUTH KOREA MOVES TO SLOW GROWTH OF TRADE SURPLUS |
Finlands national oil company Neste Oy <NEOY.HE> said in a statement it had agreed with Canadian firms to study the feasibility of building a plant in Edmonton Canada to produce a replacement for lead in petrol. The prospective plant would cost an estimated 270 mln Canadian dlrs and would produce methyl tertiary butyl ether (MTBE) from raw materials available locally it said. The partners in the study are Neste Oy Celanese Canada Inc Hoechst Celanese Corporation and Trade Mountain Pipe Line Company Ltd of Vancouver B.C. The Edmonton site was suitable because of the raw materials availability the proximity to pipeline transportation and the important capital and operating advantages gained by locating on an existing Celanese Canada site the statement said. The partners would look into the feasibility of a plant producing 500000 tonnes per annum of MTBE an octane enhancer that can replace tetra ethyl lead. Most of the MTBE would be targeted for the United States where lead levels in gasoline are being lowered because of health concerns the statement added. Canadian lead limits are currently 11 times as high as the U.S. Limit but lead is scheduled for virtual elimination in Canada by 1993 which should create a Canadian demand for MTBE it said. Finlands Neste Oy whose turnover last year was over five billion dlrs has extensive experience with MTBE. It has a major investment in an MTBE plant in Saudi Arabia. The Edmonton Alberta plant would be scheduled to go on stream in late 1989 the statement said. REUTER | FINNS AND CANADIANS TO STUDY MTBE PRODUCTION PLANT |
Talks between employers and unions in the West German engineering industry over pay and working hours broke down without result late last night an official from the IG-Metall union said. IG-Metall Western Europes largest union is reviving its campaign for a 35-hour working week and is demanding a five pct pay increase. Strikes for a 35-hour week in 1984 brought West Germanys automobile industry virtually to a standstill. The result of the 1984 campaign was a compromise reduction in working hours to 38.5 from 40. The talks which broke down yesterday were in the key North Wuerttemberg/North Baden area which generally sets the trend for the rest of the country. IG-Metall official Ernst Eisenmann speaking last night blamed the failure of the negotiations on the employers. He said they had been uncompromising on the question of the shorter week. Hans-Peter Stihl negotiating for the employers said any plan to reduce working hours gradually to 35 hours was unacceptable. The employers have not made an official offer on cutting the working week but sources involved in the negotiations say that they are working on the basis of a possible half-hour reduction from next year and a pay increase of 2.7 pct in 1987 and of 1.5 pct in 1988. The Union will propose that the negotiations be officially declared a failure and then a process of arbitration is likely. IG-Metall has said that cutting the working week will create jobs in West Germany where more than two mln people are unemployed. IG-Metall itself has about 2.5 mln members. IG-Metall has already been staging a series of warning strikes to press home demands for the 35-hour week. Yesterday 23000 engineering workers struck at 90 plants for one to two hours according to an IG-Metall statement. Among the strikers were 4000 at a Daimler-Benz AG <DAIG.F> plant in Bremen and 3100 at Ford Motor Cos <F> Ford-Werke AG plant in Saarlouis. REUTER | GERMAN ENGINEERING WAGE-ROUND TALKS BREAK DOWN |
<Whim Creek Consolidated NL> said the consortium it is leading will pay 76.55 mln dlrs for the acquisition of CRA Ltds <CRAA.S> <Forrest Gold Pty Ltd> unit reported yesterday. CRA and Whim Creek did not disclose the price yesterday. Whim Creek will hold 44 pct of the consortium while <Austwhim Resources NL> will hold 27 pct and <Croesus Mining NL> 29 pct it said in a statement. As reported Forrest Gold owns two mines in Western Australia producing a combined 37000 ounces of gold a year. It also owns an undeveloped gold project. REUTER | CRA SOLD FORREST GOLD FOR 76 MLN DLRS - WHIM CREEK |
Malaysia is launching a 100 mln Swiss franc 5-3/4 pct 10-year notes issue priced at 100.2 pct lead manager Swiss Bank Corp said. Payment date is expected to be April 22. Early redemption is not allowed. Swiss Bank Corp said this is the first time Malaysia has tapped the Swiss capital market since it issued a bond here in July 1985. REUTER | MALAYSIA SETS 100 MLN SWISS FRANC NOTES ISSUE |
The number of workers employed in the West German industrial sector stagnated in the last quarter of 1986 as a 50000 increase in overall employment benefited only the services branch the DIW economic institute said. A DIW report added the general downturn in the economy since last Autumn had had a negative effect on the willingness of firms to take on workers. It referred to a marked downturn in the number of workers taken on in the capital goods sector. New orders for manufacturing industry goods have mostly fallen or stagnated in recent months but data for February finally showed a reversal of the trend with a 1.9 pct rise. REUTER | GERMAN INDUSTRIAL EMPLOYMENT SEEN STAGNATING |
Federal Realty Investment Trust is issuing a 75 mln dlr convertible eurobond due April 30 2002 paying an indicated coupon of 5-1/4 to 5-1/2 pct and priced at par lead manager Salomon Brothers International said. The issue has a put option after seven years which will be priced to give the investor a yield in line with current seven year U.S. Treasury bond. Final terms will be fixed on April 9. The selling concession is 1-1/2 pct while management and underwriting each pay 1/2 pct. The issue is available in denominations of 1000 and 10000 dlrs. REUTER | FEDERAL REALTY ISSUES 75 MLN DLR CONVERTIBLE BOND |
The South Korean stock market seems to be consolidating following government measures to cool its rapid rise this year domestic and foreign analysts said. The composite index hit a record 405.13 early last week nearly 50 pct up from the New Year when it stood at 264.82 but plunged to a 383.48 close on April 3 the day after the government intervened. Under the measures industrial firms with bank loans worth 50 billion won or more must either offer new shares or issue convertible bonds to repay the loans. Securities houses will have to sell shares they are holding if the volume exceeds 40 pct of their paid-in capital. The ceiling for investment trust firms was fixed at 50 pct. South Korean firms have traditionally preferred obtaining low interest bank loans -- the current rate is 10 pct -- to issuing bonds at a higher rate or floating share issues with the attendant dividend pressures and launch expenses. The Seoul Stock Exchange with 355 listed stocks grew explosively in the first three months of the year building on an already impressive 68.9 pct gain in 1986. Analysts now expect the market to pause temporarily and then resume its upward movement despite the indirect government regulation. They said the continuous growth of the nations gross national product (GNP) and trade surplus improved exports and good performances by industrial firms all fuelled the boom. The trade surplus widened to 460 mln dlrs in March from 110 mln in February while government economists expect GNP to grow nine pct this year. Analysts said the deep slump in the real estate market also increased liquidity in the stock market. Many investors are still confident the market will not lose its strength. It seems likely to pause for a while and then rebound again said Park Sin-bom a director of Lucky Securities Co. There are more positive factors than negative. The market is still buoyed by ample liquidity thanks to the economys strong performance. The stock market began to recover during Saturdays half-day session with the index closing at 397.24 in active trading on Monday but closed lower on Tuesday at 390.24 on turnover of 76 billion won. I would say the market is flat for the time being.... It is very prone to profit-taking after the sharp gains in the first three months and the various government measures a foreign analyst said. But the market will head up again after a rest because the fundamentals are expected to rise and investors will be as bullish as ever at the slightest sign of a market recovery. He added that the newly launched 30 mln dlr Korea Europe Fund would have an impact on the South Korean stock market despite its small volume compared with the 5.72 trillion won of listed capital on the Seoul exchange. Local dealers recommend blue chips and financial shares as these stand to benefit most from continuing trade friction between the United States and Japan and the rumoured restructuring of local finance houses. Dealers also cite the shares of domestically oriented firms which are less vulnerable to the effects of the gradual appreciation of the won. REUTER | SEOUL STOCK MARKET CONSOLIDATES ON STATE MEASURES |
Malaysia has decided to postone development of a five billion dlr hydroelectric power project in Sarawak East Malaysia until the economy improves deputy Minister of Energy Telecoms and Post Zainal Abidin Zin said. He told reporters a shortage of funds forced the government to shelve the project which involved building several dams and a 20000 megawatt capacity undersea cable. Malaysia originally planned to export electricity generated by the project to Singapore Brunei and Indonesia by 2000 if the project could be started before 1996 Zainal said. REUTER | MALAYSIA SHELVES HUGE HYDROELECTRIC PROJECT |
The Province of Quebec is issuing a 30 billion yen eurobond due May 7 1997 paying five pct and priced at 102-1/2 pct lead manager Bank of Tokyo International Ltd said. The non-callable bond is available in denominations of one mln yen and will be listed in Luxembourg. The selling concession is 1-1/4 pct while management and underwriting combined pays 3/4 pct. The payment date is May 7. REUTER | QUEBEC ISSUES 30 BILLION YEN EUROBOND |
Bowater Industries Plc <BWTR.L> 1986 pretax profits of 48.0 mln stg exceeded market expectations of around 40 mln and pushed the companys shares up sharply to a high of 491p from 468p last night dealers said. The shares later eased back to 481p. Bowater reported a 32.4 mln stg profit in 1985. The company said in a statement accompanying the results that the underlying trend showed improvement and it intended to expand further by developing existing businesses and seeking new opportunities. It added that it had appointed David Lyon currently managing director of Redland Plc <RDLD.L> as its new chief executive. Analysts noted that Bowaters profits of 18.9 mln stg from 13.2 mln previously had been given a boost by pension benefits of 4.5 mln stg. Profit from Australia and the Far East showed the greatest percentage rise jumping 55.0 pct to 15.5 mln from 10.0 mln while the profit from U.K. Operations rose 30.7 pct to 24.7 mln and Europe 42.9 pct to 11.0 mln. REUTER | BOWATER INDUSTRIES PROFIT EXCEED EXPECTATIONS |
Citibank A/S <CCI.N> the Norwegian subsidiary of the U.S.-based bank said it made a net loss of just over six mln crowns in 1986 -- although foreign bankers said they expect it to show 1987 profits after two lean years. Citibanks Oslo treasury head Bjoern Sejerstad told Reuters Citibank one of seven foreign bank subsidiaries operating in Norway lost money because of restructuring for investment banking away from commercial banking and an economic slump in Norway following last years plunge in oil prices. Foreign banks have been allowed to operate susbidiaries in Norway since 1985. Foreign banking analysts in Oslo said access to Norways second-hand securities and equities markets to be approved later this spring and lower primary reserve requirements would make profit this year. Citibank lost 490000 crowns in Norway in 1985 but Sejerstad said a profit was likely this year because of planned liberalisation and better economic performance helped by a steadier oil price of around 18 dlrs a barrel. Earlier this year Chase Manhattan Banks <CMB.N> subsidiary decided to stop foreign exchange trading after heavy losses and focus instead on fee-based merchant banking. REUTER | CITIBANK NORWAY UNIT LOSES SIX MLN CROWNS IN 1986 |
The economic package unveiled yesterday by the ruling Liberal Democratic Party (LDP) marks the start of a major shift away from the policies of the past private economists and government officials said. A big step forward has been taken said Industrial Bank of Japan Ltd senior economist Susumu Taketomi. The package seen as a response to mounting overseas pressure to boost the sagging Japanese economy calls for a supplementary budget of more than 5000 billion yen later this year plus increased imports. Although the measures must still gain the approval of the Finance Ministry economists said the government will find it too difficult to alter the measures significantly once they have gained domestic and overseas backing. At last the LDP and the Ministry of Finance are turning a corner said Sumitomo Bank Ltds chief economist Masahiko Koido. For the past five years the government has adhered to a tight fiscal policy in its drive to stop issuing deficit financing bonds in 1990. To meet that goal spending departments are required to submit annual budgets for current expenditure 10 pct below the previous year and investment five pct below. Masayoshi Ito chairman of the LDPs policy affairs council said yesterday the government must stick to its 1990 fiscal reform target but should review the ceiling it places on public works spending. Even some Finance Ministry officials privately acknowledge that policy changes might be needed including easing the governments iron grip on spending. Economists said the government could meet its 1990 target and also increase spending by using money it got from the sale of Nippon Telegraph and Telephone Corp shares and by taking advantage of lower than expected interest rates on its debt. Officially the Finance Ministry is adhering to its tight stance but some signs of change have appeared. We do not have any intention of abandoning our objective to restore fiscal balance a Finance Ministry spokesman said. He said so far the ministry had tried to achieve two goals simultaneously. These were reforming the governments fiscal position and stimulating domestic demand. But the Finance Ministry spokesman added In looking at the current situation of the economy and the relationship between Japan and the United States we feel we have to place more emphasis on stimulating demand. Economists predict battles within the government over the coming months as the Finance Ministry fights to ensure the cracks in its policy do not lead to a complete breakdown of fiscal discipline. The Ministry is afraid that once there is a small hole in the dike it will lead to a flood Industrial Banks Taketomi said. But Taketomi said the ministry provided it has a device in place to check excess spending for political reasons is likely to give the go-ahead to a shift in policy. This seems to mark the first step toward a more active fiscal policy in response to requests from the international community he said. Sumitomos Koido said if the government quickly implements the LDPs 5000 billion yen package economic growth in the 1987/88 year ending next March 31 could be around three pct His current forecast of 2.2 pct growth assumes a supplementary budget of around 1000 billion yen. REUTER | JAPANESE ECONOMIC PACKAGE SEEN AS MAJOR CHANGE |
A sharp fall in the dollar price of zinc and the depreciation of the U.S. Currency created unfavourable economic conditions for Vieille Montagne SA <VMNB.BR> in 1986. It said in a statement that the two factors led to a squeeze on refining margins and an 18.24 pct fall in sales and services income despite an unchanged level of activity. Vieille Montagne which is actively pursuing a restructuring program reported a 198 mln franc net loss after 187 mln francs in provisions for the closure of an electrolysis plant compared with a 250 mln franc net profit in 1985. REUTER | VIEILLE MONTAGNE SAYS 1986 CONDITIONS UNFAVOURABLE |
1986 Year Net loss after exceptional charges 198 mln francs vs profit 250 mln Exceptional provisions for closure of Viviez electrolysis Plant 187 mln francs vs exceptional gain 22 mln Sales and services 16.51 billion francs vs 20.20 billion Proposed net dividend on ordinary shares nil vs 110 francs Companys full name is Vieille Montagne SA <VMNB.BR>. REUTER | VIEILLE MONTAGNE REPORTS LOSS, DIVIDEND NIL |
European Community (EC) members of the International Tin Council except Britain have said they are prepared to back an extension of the International Tin Agreement an EC spokesman said. He said at a meeting of EC states representatives here yesterday Britain undertook to communicate its own decision to its partners today. It said it was not ready yesterday to take a stand but did not say why. He added nine other EC states backed an extension. Spain and Portugal which are not members of the International Tin Council raised no objections to a common EC stance in favour. REUTER | EC MAINLY FOR TIN EXTENSION, NO U.K. STAND TAKEN |
The five-nation <International Aero Engine> (IAE) consortium has decided not to go ahead with the proposed launch of its Superfan engine a spokesman for consortium member <Rolls-Royce Plc> said. He said a group board meeting had concluded that a launch would have been premature given the risks involved in trying to meet an availability date of Spring 1992 required by airlines. However he added that the project had not been cancelled and could be offered later on. The engine was originally proposed for fitting on the <Airbus Industrie> A340. IAEs members are Rolls United Technologies Corps <UTX.N> Pratt and Whitney Fiat SpA <FIAT.MI> <Japanese Aero Engines Corp> and <MTU> of West Germany. Airbus said this week it would switch to the Franco-U.S. CFM-56-S3 alternative because of doubts whether the Superfan would be ready on time. Rolls which has been state-owned since 1971 launches its pathfinder prospectus giving preliminary details of its public flotation later today. Analysts said that the timing of the postponement of Superfan -- an 30000 pound thrust upgrade of the consortiums V2500 engine fitted to the A320 -- was embarrassing but should not be considered a serious blow. If anything it indicated the financial prudence of the group one added. The Rolls spokesman added that the decision did not affect the V2500 programme itself. Equally there was the possibility that the consortium would go ahead with the Superfan later on. Rolls RB211 engine was not available for fitting to early versions of the Boeing Co <BA.N> 747 but had since captured about 25 pct of the market he noted. REUTER | IAE CALLS OFF SUPERFAN ENGINE PROJECT |
Japan and Britain have signed a memorandum on exchange of securities market information to protect investors and promote the integrity of securities markets Finance Ministry officials said. As interaction between Japanese and U.K. Securities markets grows it is desirable for both countries to exchange supervisory and investigatory information to assist each other in securing compliance with their statutes rules and requirements the memorandum said. The ministrys securities bureau has a similar arrangement with the U.S. Securities and Exchange Commission. REUTER | JAPAN, BRITAIN TO EXCHANGE SECURITIES MARKET INFO |
Deputy prime minister Kim Mahn-je said South Korea is studying various measures to reform what he described as its underdeveloped bank and financial sector. Kim who is also economic planning minister told a news conference the countrys banks and finance houses had not developed to keep pace with their industrial counterparts. He said two major factors had hampered the development of the financial sector -- high inflation and heavy government intervention in bank decision-making. He said in the past the government had pressed banks to give soft loans to industry to boost economic growth. Kim said the government would now give top priority to interest rate liberalisation. This could be achieved within several years though not within one year. He said liberalisation was possible because South Koreas current account had turned from a deficit to a surplus which had brought in foreign funds and increased domestic savings. The current account recorded a surplus of 4.65 billion dlrs in 1986 after a deficit of 890 mln dlrs in 1985. But Kim said the government needed to reorganise much of the financial sector. Kim said mergers of some financial companies and the upgrading of others to merchant banks or full banks were being considered by the financial development committee of the finance ministry. He did not elaborate but said he expected no drastic measures to be announced this year. On liberalisation of the countrys stock market Kim said despite Seouls determination to open it up free investments there by foreigners would not be allowed in the near future because the market was currently over-heated. He said this was due to ample liquidity created partly by the countrys current account surplus. Kim said the market was extremely vulnerable to a sudden influx of foreign funds because it was still very small in terms of size and numbers of shareholders. Opening up the capital market must wait until the vulnerability to such an influx is removed he said. He said only about one mln South Koreans out of a population of 40 mln invest in the Seoul market. REUTER | SOUTH KOREA STUDIES RESTRUCTURING FINANCIAL SECTOR |
A top U.S. Official said Japan has little chance of convincing the U.S. To drop threatened trade sanctions despite the efforts of a Japanese team that left for Washington today. Michael Armacost Under Secretary of State for Political Affairs was asked at a press conference whether Japans moves to boost its domestic economy and open its markets could persuade the U.S. Not to impose tariffs on Japanese imports said and replied: ...It is probably too early for the figures to demonstrate that the situation has turned around and to permit the result you have described. Armacost said the U.S. Hopes Japan will take steps to lift its domestic economy and reduce dependence on exports remove barriers to imports and settle outstanding trade issues. There are obvious problems at the moment in the trade area but we do not wish those problems to divert attention from important areas of cooperation that continue to exist on security and political issues he said. The question is whether through cooperative actions between our governments we can reduce the (trade) imbalance or whether Congress takes action to reduce it through protectionist legislation he said. REUTER | JAPAN GIVEN LITTLE HOPE OF AVOIDING U.S. SANCTIONS |
Thai zinc ingot exports fell to 882 tonnes in March from 1764 in February and 3008 in March 1986 the Mineral Resources Department said. A spokesman for Padaeng Industry Co Ltd the countrys sole exporter attributed the decline to the companys lower stocks which averaged 5000 tonnes in the first quarter against 16000 tonnes in late 1985 when it began exporting. The department said major buyers included China Japan the Philippines South Korea Singapore and Taiwan. Thailand exported 4842 tonnes of zinc ingots during the first quarter down from 14937 a year ago. REUTER | THAI ZINC EXPORTS FALL IN MARCH |
The ministries of Finance and Justice said they have presented parliament with a new law to make insider trading in shares a criminal offence. A year ago the Amsterdam Bourse announced its own rules effective from January 1 1987 aimed at preventing unfair use of inside information in the trading shares listed on the exchange but said back-up legislation was essential. The proposed law calls for up to two years imprisonment fines of up to 100000 guilders for an individual and one million guilders for a company and repayment to the state of profits made from insider dealing. The proposed fines are higher than any currently in force in Dutch law a joint statement from the two ministries said. The draft law sets no limit to the illegal profits to be repaid. The amount would be determined by a court. A Finance Ministry spokesman said the time-frame for the introduction of the new legislation depended entirely on its reception in Parliament. In the meantime the Bourses Share Trading Association monitors business closely frequently suspending or even rescinding dealings in a stock when price movements suggest that foreknowledge of a pending announcement is being exploited. REUTER | DUTCH PROPOSE STRICT INSIDER TRADING LAW |
Dansk Naturgas A/S is issuing a 10 billion yen eurobond due May 13 1993 paying 4-5/8 pct and priced at 101-5/8 pct lead manager IBJ International Ltd said. The non-callable bond is available in denominations of one mln yen and will be listed in Luxembourg. The selling concession is 1-1/4 pct while management and underwriting combined pays 5/8 pct. The issue is guaranteed by Denmark. The payment date is May 13. REUTER | DANSK NATURGAS ISSUES 10 BILLION YEN EUROBOND |
The outcome of todays European Community (EC) white sugar tender is extremely difficult to predict after last weeks substantial award of 102350 tonnes at the highest ever rebate of 46.864 European currency units (Ecus) per 100 kilos traders said. Some said they believed the tonnage would probably be smaller at around 60000 tonnes but declined to give a view on the likely restitution. Last week the European Commission accepted 785000 tonnes of sugar into intervention by operators protesting about low rebates. This might be a determining factor in todays result they added. REUTER | EC SUGAR TENDER HARD TO PREDICT - LONDON TRADE |
North Yemen has called a buying tender for Saturday for the purchase of 30000 tonnes of white sugar for arrival in June traders said. REUTER | NORTH YEMEN CALLS SUGAR BUYING TENDER - TRADE |
The Japanese Finance Ministry said it plans to hold formal financial talks with France on April 17 in Tokyo the second such meeting after a first session in May last year. The agenda has not yet been decided. The Japanese side will be headed by Toyoo Gyohten Vice Finance Minister for International Affairs while the French delegation will include Daniel Lebegue Director General of the Treasury. REUTER | JAPAN TO HOLD FORMAL FINANCIAL TALKS WITH FRANCE |
Anheuser-Busch Companies Inc <BUD.N> has joined several other foreign bidders for sequestered shares of the Philippines largest food and beverage maker San Miguel Corp <SANM.MN> the head of a government panel which controls the shares told Reuters. Ramon Diaz Secretary of the Presidential Commission on Good Government (PCGG) said Anheuser-Busch had told the government it was interested in buying 14 mln B shares of San Miguel. He did not disclose the offered price. Diaz said Australian brewer Alan Bonds Bond Corp Holdings Ltd had offered 150 pesos per share for the B shares. Diaz said New York investment bank Allen and Co Inc had earlier said it was interested in buying all 38.1 mln sequestered shares. He told Reuters last month Elders IXL Ltd <ELXA.S> the Melbourne-based brewing company had also bid for the B shares. The Hong Kong Economic Journal last month quoted a spokesman of Australian stock broker Jacksons Ltd as saying that <Barwon Farmlands Ltd> an Australian firm owned 30 pct by <Ariadne Australia Ltd> was planning a Filipino branch in order to buy the entire block of 38.1 mln shares. Anheuser-Busch last year made a 150 mln dlr bid to buy <San Miguel Brewery Ltd> a Hong Kong listed company which is 69.65 pct owned by <Neptunia Corp Ltd> a San Miguel Corp subsidiary. The talks broke down last June after the two sides said they could not agree on the terms of the sale. REUTER | ANHEUSER-BUSCH JOINS BID FOR SAN MIGUEL |
The Peoples Construction Bank of China is launching its first international borrowing by mandating four foreign banks for a 150 mln U.S. Dlr loan one of the lead managers Banque Indosuez said. The other three lead managers are Bank of Tokyo Citicorp International Ltd and the Industrial Bank of Japan Ltd. The 10 year loan has a 4-1/2 year grace period. Interest is set at 1/8 percentage point over London interbank offered rate for the first eight years rising to 1/4 pct for the remaining two years. There is a 3/16 pct management fee and an unspecified but very small commitment fee. Syndication of the loan is expected to start soon and it should be signed in Shanghai next month. The Construction Bank which is one of four specialist banks in China focuses on infrastructure and heavy industrial projects. The funds raised will partly finance two ethylene factories near Shanghai. Construction of the plants which are a major item in the current five year plan will begin soon. The plants will cost more than 300 mln dlrs. The remainder of the funds will come from export credits and domestic borrowings. REUTER | CHINA CONSTRUCTION BANK MANDATES 150 MLN DLR LOAN |
Australian markets are booming as foreign fund managers redirect capital away from the United States and other traditional markets analysts said. High short-term interest rates a bullish stock market and an increasingly stable currency reflect a massive inflow of fresh funds in the last two months largely from Japanese and U.S. Investors analysts polled by Reuters said. Fund managers want quality markets to park their cash in and have settled on Australia Britain and Canada as they diversify from volatile U.S. Dollar instruments they said. A one percentage point fall in key 10-year bonds rates in the past month record share prices and a 10-month high for the currency of 0.71 U.S. Dlrs all illustrated the inflow. Official figures on the latest inflow of investment capital are not available but brokers said they received almost daily inquiries from Japan and the United States. These people have got trillions of dollars sloshing about and they dont know what to do with it. Some of that is ending up here with the attraction of high interest rates and reasonable currency stability National Australia Bank Ltd economist Brian Hamley said. There is a flight to quality Hamley said. Australia may not be in the best (economic) position but there arent too many other countries where youd want to put your money. The stronger Australian dollar was also attracting investors taking advantage of an appreciating currency against the volatility of the U.S. Unit analysts said. Were looking a more favoured market than perhaps the U.S. Where some people would be concerned about the value of the U.S. Dollar Lloyds Bank NZA Ltd chief economist Will Buttrose said. Why not put the money in Australia where entry is cheap and the currency looks stable? But turning that capital into more permanent productive investment depends on government economic policy he said. It will only disappear if people lose confidence in the direction in the economy Buttrose said adding that offshore investors would carefully watch the governments promised tough economic statement on May 14. While happy to invest in bonds and other vehicles yielding interest unobtainable elsewhere fund managers could just as easily reverse the flow -- particularly the Japanese who were badly hurt in the past by rapid falls in the Australian dollar and hefty jumps in bond rates analysts said. It will remain very edgy money. If something was not to be delivered if the statement wasnt considered tough enough one might see a substantial outflow Buttrose said. Offshore investors are eager to see Australia take tough economic decisions to curb its 100 billion dlr foreign debt and stubborn current account deficit analysts said. They are giving us the benefit of the doubt and I think they would like to leave the money here Buttrose said. Reserve Bank policy has also reflected the increased interest in investment in Australia and the need to shield Japanese investors from rapid currency fluctuations. Reserve Governor Bob Johnston last week acknowledged an element of targeting the rate against the yen in currency policy when he said authorities could not take their eyes off the yen because of the crucial role of Japanese investors. Analysts said they believed the Reserve Bank had worked successfully in recent months to keep the Australian dollar within the range of 100 to 103 yen. Apart from its recovery against a weak U.S. Dollar the Australian dollar has also risen almost three pct on a trade-weighted basis in the last three weeks. Offshore buying has also played a role in the booming Australian share market. It has followed Wall Street and other markets but is also setting its own trend in response to the weight of both domestic and offshore funds pouring into equities particularly in the gold sector. The key all ordinaries index rose to a record 1758.3 today nearly 20 pct above its level at the end of 1986 while the gold index has nearly doubled to a record 3081.0 in the same period. The property sector is also sought after with Japanese companies that have invested heavily in the United States in recent years turning their attention to undervalued real estate particularly in the tourism field. Analysts pointed to the recent sale of Sydneys five-star Regent Hotel to Japanese interests for more than 145 mln dlrs as indicative of the type of property being sought. They think they find good value real estate here which with long term and fixed capital investment is the kind of investment Australia needs Buttrose added. REUTER | ECONOMIC SPOTLIGHT - AUSTRALIAN MARKETS BOOMING |
Kuwaits oil-reliant and debt-ridden economy has started to pull out of a nosedive but oil prices will determine the pace of recovery bankers and economists say. Crucial will be the ability of the 13-member OPEC to hold oil prices around a new benchmark of 18 dlrs a barrel in the northern hemisphere summer when demand usually slackens. Bankers estimate the economy measured in terms of gross domestic product (gdp) shrank 19 pct in real terms last year after contracting 8.1 pct the year before. This was after taking into account inflation in consumer prices of 1.5 pct in 1985 slowing to 1.0 pct in 1986. Factors depressing economic activity include the 6-1/2-year-old Iran-Iraq war on Kuwaits doorstep which threatens the emirates vital oil export lifeline through the Gulf and has sapped business confidence. But sentiment received a much-needed boost in September when after a series of piecemeal steps to combat a debt crisis caused by the 1982 crash of local stock market a comprehensive new debt settlement program was introduced. The share crash result of a speculative spree in forward trading left 95 billion dlrs of post-dated cheques in default. The cheques were also used as collateral for consumer spending thus generating an informal credit system. Much of the debt has been watered down but big sums are still owed by individuals and companies. There was some 4.4 billion dinars (about 15.7 billion dlrs) in outstanding bank credit at the end of 1986 of which one-quarter to one-third was estimated by bankers to rank as bad or doubtful debt. But the government has repeatedly said it will not allow any banks to go under. The new debt settlement scheme entails a rescheduling of problem credit over 10 to 15 years depending on whether debtors have regular cash flows or not. Banks shareholders and depositors will have their rights guaranteed by the government -- an edict of vital significance in a country of only 1.7 mln people where the financial sector is the biggest after oil. Kuwait is better placed than any other OPEC country to ride out the oil glut bankers and economists say. Kuwait has an OPEC quota of 948000 barrels per day (bpd) compared with production capacity of 4.0 mln bpd mentioned last year by Oil Minister Sheikh Ali al-Khalifa al-Sabah. But strategic diversification into downstream operations in Europe several years ago and a hefty refining investment at home gives it guaranteed markets abroad and enables it to sell over one-half of its output as high-grade refined oil products. Oil industry sources say Kuwait is able to get an average 2.00 dlrs a barrel more by selling oil in the form of processed product such as gas oil kerosene and naphtha rather than as crude. Bankers say the rebound in oil prices is the major reason for cautious optimism. Other reasons are low domestic inflation a bottoming out of the fall in imports in recent years and signs government spending on productive sectors will remain steady. External accounts are in good shape with an estimated 1.8 billion dinar current account surplus in 1986 16 pct below that for 1985 but still an achievement in the recession-hit Gulf. Kuwaits petrodollar reserves in mid-1986 were put officially at over 80 billion dlrs earning investment income of the equivalent of about 3.65 billion dlrs a year. But for the first time since the end of the oil boom these reserves may not be enough to prevent a real budget deficit for the 1986/87 fiscal year ending June 30 bankers say. In a budget portrayed by bankers as mildly contractionary revenues for 1986/87 were cut 38.6 pct and spending 11 pct doubling the nominal deficit to 1.33 billion dinars. This left out income from state reserves usually excluded in official budget accounting which are forecast by bankers at up to 1.0 billion dinars in 1986/87 resulting in some shortfall. Bankers say it is too early to venture a forecast for economic growth this year or next. It depends on oil prices one said. This summer is important. Cabinet Affairs Minister Rashid al-Rashid said last Sunday the cabinet has ratified recommendations to rationalise state spending in favour of productive sectors and reactivate the economy. He gave no details but bankers say these are expected to be spelled out in the 1987/88 budget possibly in June. REUTER | ECONOMIC SPOTLIGHT - KUWAITI ECONOMY |
Malaysia is unlikely to meet its targeted output of five mln tonnes of oil palm in calendar 1987 oil palm growers told Reuters. Output in 1987 is expected to reach around 4.5 mln tonnes unchanged from 1986 because of drought low use of fertiliser and overstressed palms they said. The growers were asked for their reaction to an Oil World newsletter report that Malaysias oil palm output is likely to drop sharply this year. Palm oil now sells at around 700 ringgit a tonne or about 115 ringgit less than soybean oil but Malaysia must sell more palm oil to prevent a stock buildup that could damage the industry a leading grower told Reuters. The countrys palm oil stocks now total some 500000 tonnes against about 800000 last March the growers said. The growers expect palm oil prices to ease later this year due to pressure from South American and U.S. Soybean output. The current South American oilseed harvest mainly soybean is likely to be around 25.7 mln tonnes against the previous 21.7 mln tonne crop they said. In addition new U.S. Soybean plantings are also expected to enter the market around November when Malaysian palm oil output peaks. They said new planting of palms is also likely to slow with some 50000 hectares expected to be planted with new trees against 100000 in 1986 although the effects of this reduction will not be felt for about another three years. REUTER | MALAYSIA MAY NOT MEET 1987 OIL PALM TARGET |
Elders IXL Ltd <ELXA.S> plans to float off the around 5000 public houses belonging to its U.K. Subsidiary Courage Ltd to raise about one billion stg Elders strategy executive director Stuart Kelso said. The scheme subject of speculation in a Scottish newspaper yesterday was fairly well advanced but not certain to go ahead. There could be road blocks he added. The earliest flotation date would be June though the sale will probably be later. Elders would retain a one-third interest in the property interests under the current plan. No immediate use has been earmarked for the funds raised. Kelso said float plans currently include an offering of debentures to institutional investors and issues of ordinary shares and convertible stock for sale to the public. Elders bought Courage from Hanson Trust Plc <HNSN.L> last year for 1.4 mln stg. The deal followed Elders unsuccessful efforts to expand into the U.K. Drinks industry by acquiring Allied-Lyons Plc <ALLD.L>. Hanson acquired Courage when it took over Imperial Group Plc early last year. The Elders plan to raise funds from Courage is a variant of the its earlier scheme to sell off 50 pct stakes in the Allied-Lyons pubs to their publicans market sources added. REUTER | ELDERS PLANS TO FLOAT OFF COURAGE PUBS |
Freeport McMoran Inc <FTX.N> a New York listed New Orleans-based natural resource oil and gas company is planning to build and run a surface sulphur mine in the central Philippines a company statement said. It said Freeport officials were in the Philippines to discuss contractual arrangements with joint venture partner <International Consultex (Philippines) Inc>. The statement quoted Robert Foster president of Freeport Sulphur Co as saying the company was optimistic about the proposed mine at Pamplona in Negros Oriental province as well as the countrys investment climate. The sulphur project will involve initial capital expenditures of between 50 and 100 mln dlrs depending upon the processing technology and the capacity of the project Foster said. We anticipate that the project may employ as many as 1000 workers in Negros Oriental. Freeport-McMorans senior vice-president Rene Latiolais said the company was also interested in gold and other precious metals and geo-thermal energy development in the Philippines. The statement said Freeport which anticipates 1987 sales of 1.5 billion dlrs is a major producer of sulphur phosphate and nitrogen fertilisers uranium oxide and geo-thermal energy. REUTER | FREEPORT TO START SULPHUR MINE IN PHILIPPINES |
A Bank of Japan spokesman declined to comment on a press report that the central bank had decided to conduct closer scrutiny of the operations of financial institutions in the bond market. The JIJI Press news agency had quoted Bank of Japan sources as telling Japanese reporters the bank was deeply concerned over potential risk in yen bond trading because the market had risen too fast. However JIJI quoted the sources as saying the central bank would not take such actions as guiding interest rates higher. JIJI quoted the sources as saying that current bond market yields are similar to short-term interest rates due to excessive speculative operations. This was attributable to heavy redemptions of government bonds and unclear prospects for the dollar which has sent many foreign bond market participants to the domestic market the sources were quoted as saying. REUTER | BANK OF JAPAN HAS NO COMMENT ON YEN BOND REPORT |
Mafina BV of Voorburg a subsidiary of Petrofina SA <PETB.BR> is issuing a minimum 200 mln franc seven year bond with warrants paying two pct lead manager Credit Suisse said. The issue is guaranteed by the Belgian parent. The warrant exercise period is from May 1 1987 until May 20 1991. Each 5000 franc note carries nine warrannts each of which entitles the holder to buy one share in the company at 10800 Belgian francs each. Payment is due April 30. REUTER | MAFINA ISSUES 200 MLN SFR BOND WITH WARRANTS |
Hokuriku Electric Industry is issuing a 35 mln dlr equity warrant bond due May 7 1992 paying an indicated coupon of 2-1/8 pct and priced at par lead manager Nomura International Ltd said. The issue is guaranteed by Hokuriku Bank Ltd. The selling concession is 1-1/2 pct while management and underwriting combined pays 3/4 pct. Final terms are due April 16. The payment date is May 7 and the issue is available in denominations of 5000 dlrs. Listing will be in Luxembourg. REUTER | HOKURIKU ELECTRIC ISSUES 35 MLN DLR WARRANT BOND |
Saitama Bank Ltd is issuing 100 mln Swiss francs of convertible notes due September 30 1992 paying an indicated 1-1/4 pct lead manager Credit Suisse said. Terms will be set on April 15 with payment due May 6. The conversion period is from May 20 1987 until September 18 1992. REUTER | SAITAMA BANK ISSUES 100 MLN SFR CONVERTIBLE |
JARDINE MATHESON SAID IT SETS TWO-FOR-FIVE BONUS ISSUE REPLACING "B" SHARES |
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Diversified building materials group Monier Ltd <MNRA.S> said talks are taking place which may lead to Britains Redland Plc <RDLD.L> making an offer for the Monier shares it does not already hold chairman Bill Locke said. Redland already holds about 49 pct of Moniers 156.28 mln issued shares he said in a brief notice to the Australian Stock Exchange. Locke said shareholders would be advised as soon as the discussions progressed and recommended that they keep their shares. Monier shares were trading at a 1987 high of 3.10 dlrs today up from the previous peak of 2.80 at yesterdays close and well above the 1987 low of 2.18 dlrs. Monier is the largest concrete roof tile manufacturer in Australia the U.S. And New Zealand and the worlds largest marketer of fly ash according to its annual report for 1985/86 ended June 30. It recently reported first-half 1986/87 net fell to 15.02 mln dlrs from 17.09 mln a year earlier due to the Australian housing downturn although foreign earnings rose. REUTER | MONIER SAYS BRITAIN'S REDLAND MAY BID FOR IT |
Federal Realty Investment Trust is issuing a 75 mln dlr convertible eurobond due April 30 2002 paying an indicated coupon of 5-1/4 to 5-1/2 pct and priced at par lead manager Salomon Brothers International said. The issue has a put option after seven years which will be priced to give the investor a yield in line with current seven year U.S. Treasury bond. Final terms will be fixed on April 9. The selling concession is 1-1/2 pct while management and underwriting each pay 1/2 pct. The issue is available in denominations of 1000 and 10000 dlrs. REUTER | FEDERAL REALTY ISSUES 75 MLN DLR CONVERTIBLE BOND |
The Province of Quebec is issuing a 30 billion yen eurobond due May 7 1997 paying five pct and priced at 102-1/2 pct lead manager Bank of Tokyo International Ltd said. The non-callable bond is available in denominations of one mln yen and will be listed in Luxembourg. The selling concession is 1-1/4 pct while management and underwriting combined pays 3/4 pct. The payment date is May 7. REUTER | QUEBEC ISSUES 30 BILLION YEN EUROBOND |
Isuzu Motor Ltd <ISUM.T> will pay no dividend for the first half year ending April 30 1987 as the company is expected to mark a 12 billion yen parent company current loss in the first half due to slow exports caused by the yens appreciation a company spokesman said. The company has paid no dividend since the year ended October 31 1983 when it paid five yen. It had a 4.44 billion yen current profit in the first half of 1985/86. REUTER | ISUZU PLANS NO INTERIM DIVIDEND |
Ministry of International Trade and Industry (MITI) Vice Minister Makoto Kuroda leaves for Washington today with data he hopes will refute U.S. Charges Japan has violated a pact on microchip trade. A three-man Japanese trade team is already in Washington laying the groundwork for talks between Kuroda and Deputy U.S. Trade Representative Michael Smith aimed at persuading the U.S. Not to impose tariffs on certain Japanese products. But Kuroda said he is taking no new proposals. I have nothing in my briefcase except an explanation of the current situation Kuroda told the daily newspaper Asahi Shimbun. Kuroda said the U.S. Decision was based on incorrect data and an exaggerated sense of MITIs power to control market forces. The U.S. Has excessive expectations. To stabilise supply-demand relations which have been disrupted by excess inventories since 1985 will take some time he said. Kuroda also laid part of the blame for low U.S. Chip sales in Japan on a lack of effort by American firms here. He said if he fails in talks tomorrow and Friday to forestall sanctions he will seek further talks with U.S. Trade Representative Clayton Yeutter. U.S. Officials said this weeks talks are unlikely to delay imposition of tariffs. REUTER | JAPANESE OFFICIAL TAKES DATA TO MICROCHIP TALKS |
The French government won as expected a vote of parliamentary confidence sought by Prime Minister Jacques Chirac on his general policies. Votes from Chiracs Gaullist RPR party and its junior partner in the ruling coalition the centre-right UDF gave Chiracs cabinet a slim majority in the National Assembly. A total of 294 deputies in the 577-member assembly voted to support Chirac with 282 voting against. One member was absent. The Socialists Communists and the extreme-right National Front voted against the prime ministers call. REUTER | FRENCH GOVERNMENT WINS CONFIDENCE VOTE |
Norway will from June require finance institutions and insurance companies to report lending volume to the central bank once a month rather than quarterly in a bid to tighten domestic lending Finance Ministry officials said. Norwegian Bank Association President Trond Reinertsen told Reuters the new rule would make it more difficult for banks to transfer funds to financial and insurance companies for lending. Banks have in the past used the two month lapse in loan registration to transfer money for lending to finance and insurance groups to avoid penalty reserve requirements for lending in excess of government set ceilings. The new rule brings loan reporting requirements for insurance and finance companies in line with those already applied to commercial banks Ministry officials said. Borrowers have increasingly sought loans from finance and insurance companies after the central bank last year clamped down on what it called excessive bank lending. Bank lending dropped by five billion crowns in January from 260 billion crowns the previous month in response to the stricter penalty reserve requirements Oslo bankers said. They said recent central bank cuts in the overnight rate it charges banks might offset new pressure on interest rates. REUTER | NORWAY TO TIGHTEN RULES FOR REGISTERING LOANS |
The Bell Group Ltd <BLLA.S> said it now holds 14.9 pct of the issued capital of Standard Chartered Plc <STCH.L> after acquiring further shares. The one-sentence statement from Bells headquarters confirmed what its brokers Warburg Securities told Reuters in London yesterday. Bell previously held 10 pct of Standard. Bell chairman Robert Holmes a Court who is also a director of Standard was not available for comment on his companys intentions in boosting its holding and other company officials contacted here by Reuters declined to comment. REUTER | BELL GROUP CONFIRMS STANDARD CHARTERED STAKE |
Negotiations between mining companies and the National Union of Mineworkers are foundering and mines could face a May Day work stoppage the Chamber of Mines said. It said the union had called off talks on a specific issue the introduction of a Labour Day on May 1. The union refused a request to give advance notification of the names of workers who would be working on May 1 rather than taking the option of a paid holiday the Chamber said. It said mining companies wanted advance notice in order to plan their operations. The union is adamant only employees who wish to work on Labour Day should notify management the Chamber said. This raises the prospect that the mines will once again face stay-away action on May 1 and that the employees who do not work will once again forfeit pay. It said the union accepted all the proposals except giving advance notification for May 1. It said miners had been offered a full paid holiday on May 1 or a premium of six pct of their basic monthly pay for working that day. REUTER | S. AFRICA MINES BODY SEES MAY DAY WORK STOPPAGE |
Nippon Steel Corp <NSTC.T> denied local newspaper reports that China has been seeking to buy steel plants from Japanese firms which plan to suspend output under the recently announced rationalisation program. The Mainichi Shimbun quoted Nippon Steel as saying that Chinas State Planning Commission and some Chinese firms have asked Japanese makers to sell them steel works and rolling mills to expand steelmaking cheaply. It named no sources. A Nippon Steel spokesman told Reuters that China has made no such official request and the company was not considering such sales at the moment. But Mainichi quoted Nippon Steel officials as saying if prices are reasonable they would export their used mills to China. The paper said Chinas crude steel output totalled 52 mln tonnes in calendar 1986 and that it plans to increase to 80 mln by 1996. Japans steel industry rationalisation plan is aimed at cutting production capacity sharply over the next few years. REUTER | NIPPON STEEL DENIES CHINA SEEKING JAPANESE PLANTS |
February car production totalled 269745 this year up 27.2 pct on a year-on-year basis the Automobile Constructors Association (CSCA) said. This brought total car output in the first two months of the year to 504266 a 14.1 pct year-on-year rise it said. REUTER | FRENCH FEBRUARY CAR OUTPUT UP 27.2 PCT |
Jardine Matheson Holdings Ltd <JARD.HK> said it will withdraw the previously announced four-for-one bonus issue of B shares and replace it by a two-for-five bonus issue of ordinary shares. A statement said the firm expects to pay total dividends for 1987 of not less than 40 cents a share on the expanded capital. Jardine Matheson decided to withdraw its issue because of a joint announcement earlier today by Ronald Li chairman of the Stock Exchange of Hong Kong and Securities Commissioner Ray Astin that the listings of new B shares would be barred. The official announcement said this will include the proposal by Jardine Matheson. But the Jardine statement quoted chairman Simon Keswick as saying: We continue to believe that the issuing of B shares would benefit shareholders and regret that they will not be given the opportunity to vote on the matter at this stage. Keswick said the B share issue will benefit Jardine Mathesons shareholders by giving the firm flexibility to issue ordinary shares for expansion in future without diluting existing shareholders voting rights. However he added: We certainly welcome (the Secretary for Monetary Affairs) David Nendicks referral of this very important matter to the Standing Committee on Company Law Reform and are hopeful that the process will lead to the development of general principles which can be embraced by all constituents of the Hong Kong market. REUTER | JARDINE MATHESON REPLACES "B" SHARE BY BONUS ISSUE |
A top U.S. Official said Japan has little chance of persuading the U.S. to drop threatened trade sanctions despite the efforts of a Japanese team that left for Washington today. Michael Armacost Under Secretary of State for Political Affairs was asked at a press conference whether Japans moves to boost its domestic economy and open its markets could persuade the U.S. Not to impose tariffs on Japanese imports said and replied: ...It is probably too early for the figures to demonstrate that the situation has turned around and to permit the result you have described. Armacost said the U.S. Hopes Japan will take steps to lift its domestic economy and reduce dependence on exports remove barriers to imports and settle outstanding trade issues. There are obvious problems at the moment in the trade area but we do not wish those problems to divert attention from important areas of cooperation that continue to exist on security and political issues he said. The question is whether through cooperative actions between our governments we can reduce the (trade) imbalance or whether Congress takes action to reduce it through protectionist legislation he said. REUTER | JAPAN GIVEN LITTLE HOPE OF AVOIDING U.S. SANCTIONS |
The Bank of Japan bought a small amount of dollars shortly after the opening at around 145.30 yen dealers said. The central bank intervened as a medium-sized trading house sold dollars putting pressure on the U.S. Currency they said. The dollar was also supported by a major electrical consumer goods company which was a speculative dollar buyer at around 145.25 yen they added. The dollar opened at 145.33 yen against 145.60/70 in New York and 145.25 at the close here yesterday. REUTER | BANK OF JAPAN INTERVENES SOON AFTER TOKYO OPENING |
Soviet Deputy Foreign Minister Vladimir Petrovsky said today Moscow felt indignation and regret at what he called truly hostile statements about the Soviet Union made by President Reagan. Reagan told reporters yesterday he was ordering a high-level review of security at the U.S. Embassy in Moscow following a sex-and-spy scandal there and said Soviet diplomats would not be allowed to use a new embassy in Washington until the U.S. Moscow mission was made secure. Petrovsky told reporters it was not accidental that Washington had chosen this time only a week before a scheduled Moscow visit by U.S. Secretary of State George Shultz to make accusations against the Soviet Union. Objective conditions existed for improving Soviet-U.S. Relations. But it seems that someone in Washington fails to appreciate this process and tries to poison the atmosphere he said. Reuter | MOSCOW INDIGNANT AT REAGAN STATEMENT |
Fighting broke out between Palestinian guerrillas and Shiite Moslem Amal militiamen near camps in south lebanon as Syria prepared to extend its military presence at Beiruts settlements. Security sources in the southern port of Sidon said the clashes erupted in villages to the southeast between Amal and guerrillas loyal to Palestinian leader Yasser Arafat. Syria stepped in yesterday to halt battles at two Beirut refugee camps but Amal said it would only lift its siege after Arafat withdrew his men from the villages near Sidon. Reuter | BATTLES FLARE NEAR SOUTHERN BEIRUT CAMPS |
South Africas economic recovery has broadened as favourable terms of a three-year foreign debt rescheduling accord have given confidence to local business Liberty Life Association of Africa Ltd said. The major life assurance company said in its first quarter review that economic activity improved in 1986 with car and retail sales clearly rising adding that South Africas economic future had brightened considerably. Liberty said pre-conditions existed for further growth in 1987 despite longer term structural problems. Short-term interest rates were unlikely to rise markedly in the near future and unemployment levels were stabilising the company said. But the report cautioned that South Africas economy still faced high inflation and extremely fragile consumer and business confidence which could be upset by political events. It also predicted the rand was likely to remain basically a weak currency despite its nine pct rise in the first quarter to 49.55 U.S. Cts. REUTER | SOUTH AFRICAN OUTLOOK SEEN BRIGHTER, LIBERTY LIFE |
The first Malaysian investment fund for foreign investors will be launched in the United States market next month to raise between 60 to 69 mln dlrs <Arab Malaysian Merchant Bank Bhd> (AMBB) said. The fund called <Malaysian Fund Inc> will be jointly sponsored by the merchant bank and the International Fund Corporation of the World Bank said AMBB in a statement. The two institutions together with Merrill Lynch Capital Markets <MER> and Morgan Stanley Inc <MS> are underwriters for the fund it added. AMBB said its wholly-owned subsidiary <Arab Malaysian Consultant> will be the funds Malaysian investment adviser while <Morgan Stanley Asset Management Inc> will manage it. It added that 80 pct of the money raised will be used to invest in shares of Malaysian companies on the Kuala Lumpur Stock Exchange and the remaining in unlisted shares. AMBB said the fund will expose the Malaysian market to US and Japanese investors and help develop the local capital market. REUTER | MALAYSIAN FUND TO BE LAUNCHED IN U.S. IN MAY |
Inflation was by 8.8 pct in Indonesia during fiscal 1986/87 to March 31 compared to 5.66 pct the previous year Information Minister Harmoko said after a cabinet session to discuss the economic situation. REUTER | INDONESIAN INFLATION RATE 8.8 PCT IN 1986/87 |
The Bank of England said it provided the money market with 53 mln stg assistance in the morning session. This compares with the banks estimate of a shortage in the system of around 300 mln stg which it earlier revised up from 250 mln. The central bank made outright purchases of bank bills comprising 46 mln stg in band three at 9-3/4 pct and seven mln stg in band four at 9-11/16 pct. REUTER | U.K. MONEY MARKET GIVEN 53 MLN STG ASSISTANCE |
The coupon on the 25 mln dlr equity warrant eurobond for Keihanshin Real Estate Co Ltd has been set at 2-1/8 pct compared with the 2-1/4 pct indication lead manager Daiwa Europe Ltd said. The exercise price has been set at 810 yen per share which represents a premium of 2.53 pct over todays closing price of 790 yen. The exchange rate was set 146.30 yen to the dollar. The five-year deal is priced at par and guaranteed by the Sumitomo Bank Ltd. REUTER | COUPON CUT ON KEIHANSHIN REAL ESTATE WARRANT BOND |
A bid by San Miguel Corp (SMC) <SANM.MN> to buy back 38.1 mln sequestered shares from United Coconut Planters Bank (UCPB) has been hit by two new lawsuits sources in the Philippine food and brewery company said. A Manila court yesterday issued an injunction barring UCPB from selling the shares which represent 31 pct of SMCs outstanding capital stock of 121 mln shares until hearings on April 21 on a petition filed by Eduardo Cojuangco a former chairman of both SMC and UCPB. Cojuangco said the Coconut Industry Investment Fund (CIIF) and 1.4 mln farmers were the rightful owners of the shares. Cojuangco said the shares were held in trust by UCPB and represented a blue chip investment. His petition said UCPBs plans to sell the shares to SMC were a serious breach of fiduciary duties. The SMC sources said the proposed share sale could also be held up by a second derivative suit filed before the Securities and Exchange Commission (SEC) by Eduardo de los Angeles a government nominee on the companys board. De los Angeles who represents SMCs minority stockholders asked the SEC to block the transaction approved last week by the companys board. On April 2 the board sanctioned the repurchase of the sequestered shares for 4.79 billion pesos at 126 pesos per share. De los Angeles told the SEC the companys retained earnings of 1.33 billion pesos would be wiped out by the purchase of the shares and would prevent the declaration of dividends. De los Angeles said the share purchase would also violate an SMC agreement with its creditors to maintain a 2.2-to-1 debt to equity ratio. He quoted SMCs chief financial director Ramon del Rosario as telling the board that the transaction would boost the ratio to 2.5-to-1. In petitioning the SEC de los Angeles amended an earlier suit two weeks ago in which he charged SMC Chairman Andres Soriano III and nine other directors of violating their duties. De los Angeles earlier complaint related to SMC assuming last December a 26.5 mln dlr loan contracted by SMCs Hong Kong subsidiary <Neptunia Corp> for a down payment on the shares. The loan assumption was again ratified by last weeks board meeting. An arbitration panel set up by President Corazon Aquino to resolve the ownership issue is expected to submit its report by April 15. The amended suit filed by Eduardo de los Angeles is part of a continuing attempt by certain elements in complete disregard of the facts and with questionable motives to delay an early disposition of the sequestered shares San Miguel Corp said in a statement. Coming as it does when San Miguel Corp and UCPB have reached agreement on the price of the shares and the method of payment this suit is in direct contravention of the governments expressed desire to reach an amicable settlement of the controversy by April 15 the statement added. A San Miguel spokesman said he had no comment on Cojuangcos court petition adding: Any statement coming from us might be interpreted as adversarial. Meanwhile Ramon Diaz the head of a government panel which sequestered the shares last year said Soriano was not eligible to buy the major portion of the shares because he was a United States citizen. The sequestered shares are split into 24 mln A shares which can only be owned by Filipinos and 14 mln B shares which are available to foreign buyers. SMC sources said Soriano personally was not among prospective buyers. They said the shares would be purchased by the <A.Soriano> group of companies SMC Neptunia and unnamed institutional investors. Soriano was named as one of the buyers in a bid in March 1986 for 33 mln shares controlled by UCPB. The sale was aborted when Diazs Presidential Commission on Good Government sequestered the shares on suspicion they were owned by Cojuangco a close associate of former President Ferdinand Marcos. Cojuangco lives in self-imposed exile in the U.S.. The shares grew to 38.1 mln after a 15 pct stock dividend announced last June. We have no objection to Soriano buying the B shares Diaz told Reuters. But everything is on hold now. The SMC spokesman said he did not know if the controversy would be resolved before the companys annual stockholders meeting scheduled for May 14. San Miguel Corp reported sales revenue of 12.2 billion pesos in 1986 11 pct above its 10.9 billion peso sales in 1985. It said unaudited net profit was in the neighbourhood of 700 mln pesos an increase of about 50 pct over 1985. REUTER | SAN MIGUEL DEAL HIT BY MORE LAWSUITS |
Good rains of one to four inches in the past 10 days have boosted moisture-stressed sugar cane crops in the Mackay-Burdekin region of Queenslands central coast an Australian Sugar Producers Association spokesman said. As previously reported the region has been undergoing a severe dry spell partly relieved by scattered rainfall since December following the virtual failure of the summer wet season. Mills in the area have been reporting that their crops are beginning to look healthy and greener and are putting on growth since the rains began the spokesman said from Brisbane. Although the Mackay-Burdekin crop outlook is much better than it was there will be some cane losses the spokesman said. But is too early to say what they will be and more rain is needed to restore sub-soil moisture. Elsewhere in far north Queensland the Bundaberg region and southern Queensland the cane is in excellent condition and some mills are forecasting record crops he said. Initial 1987 crop estimates will probably be compiled towards the end of May he said. The cane crush normally runs from June to December. REUTER | RAIN BOOSTS CENTRAL QUEENSLAND SUGAR CANE CROP |
The European Community (EC) is expected to award export licences at todays weekly tender for above 60000 and possibly up to 100000 tonnes of white sugar after last weeks award for 102350 tonnes traders here said. They expected a maximum rebate of between 46.40 and 46.50 Ecus per 100 kilos compared to last weeks 46.864. Earlier traders in London said the outcome of the tender was very hard to predict after last weeks substantial award and the placing of 785000 tonnes of sugar into intervention. They said they believed the tonnage would be around 60000 but declined to give a rebate figure. REUTER | FRENCH TRADERS FORECAST EC SUGAR TENDER |
The Philadelphia Stock Exchange will soon open offices in Hong Kong and Tokyo to help boost Far Eastern participation in foreign currency options before it starts evening trading in four or five months time exchange president Nicholas Giordano told reporters. Japanese institutions are already major players in foreign currency options traded in Philadelphia using subsidiaries or agents to trade during the current daytime session. REUTER | PHILADELPHIA SEES CURRENCY OPTIONS TRADE IN ASIA |
Thyssen AG <THYH.F> unit Thyssen Guss AG a metals group said it had agreed to cooperate with Canadian firm <Cercast Inc> to manufacture fine casting products. Both companies would merge plants in the West German towns of Soest and Moers under a new company in which the two groups would have equal shares in a capital of three mln marks. A spokeswoman for Thyssen Industrie AG which holds 100 pct of Thyssen Guss said the joint-venture should produce turnover of an annual 40 mln marks. Thyssen Industrie is held 90 pct by Thyssen AG. REUTER | THYSSEN UNIT TO COOPERATE WITH CANADIAN FIRM |
Italian insurer La Fondiaria Spa <LFDI.MI> said it expects to report consolidated group profit in 1986 significantly higher than the 60 billion lire reported in 1985. The company said in a statement that parent company net profit last year will rise from the 72 billion lire reported in 1985. Consolidated group premiums totaled 1700 billion lire in 1986 compared with 1490 billion the previous year. Iniziativa Meta <INZI.MI> the financial services unit of Montedison Spa <MONI.MI> controls the largest single stake in Florence-based Fondiaria with 49.9 pct. REUTER | ITALY'S LA FONDIARIA TO REPORT HIGHER 1986 PROFITS |
National Bank Mortgage Corp is issuing a 100 mln Canadian dlr eurobond due May 18 1992 with a nine pct coupon and priced at 101-3/4 pct McLeod Young Weir International Ltd said as lead manager. The non-callable bonds will be guaranteed by the National Bank of Canada. They will be issued in denominations of 1000 and 10000 dlrs and listed in Luxembourg. Gross fees of 1-7/8 pct comprise 1-1/4 pct for selling and 5/8 pct for management and underwriting combined. Pay date is May 18. There will be two co-leads. REUTER | NATIONAL BANK MORTGAGE ISSUES CANADIAN DLR BOND |
Nickel prices are unlikely to rise significantly from current levels unless further steps are taken to reduce production Shearson Lehman Brothers said in its quarterly nickel market report. The market had recovered slightly to around 1.72 dlrs a lb yesterday from its four year low of 1.55 dlrs in early January due to the absence of Soviet nickel cathode deliveries but Shearson sees Soviet shipments soon returning to last years buoyant levels which should ease current tightness. Output reductions by producers will take effect later this year but are likely to be offset by increases elsewhere. Shearson said the nickel market will be virtually in balance during 1987 with total non-Socialist world demand at 556000 tonnes compared with an estimated 544000 tonnes in 1986 production at 505000 tonnes (504000) and imports from Socialist countries at 47000 tonnes (50000). It forecast prices will edge higher during the year from a first quarter average of 1.67 dlrs a lb up to 1.77 dlrs in the last quarter. The years average will be around 1.72 dlrs a lb compared with 1.76 dlrs in 1986 using London Metal Exchange cash metal prices in dollar terms and assuming an average 1987 sterling exchange rate of 1.55 dlrs. REUTER | NICKEL PRICES UNLIKELY TO RISE MUCH - SHEARSON |
The government will provide new guarantees for up to three billion H.K. Dlrs in financing instruments to be issued by the government owned <Mass Transport Railway Corp> bringing the total to 9.1 billion dlrs Financial Secretary Piers Jacobs said. He told the Legislative Council the instruments would replace existing longer term government guaranteed export credit debt obligations. A total of 1.5 billion dlrs in government guaranteed export credit debt obligations are due to mature in two years. REUTER | HONG KONG PROVIDES NEW GUARANTEE FOR MTRC DEBTS |
The fully state-owned Dutch chemical firm NV DSM <DSMN.AS> said its 1986 net profit rose to 412 mln guilders from 402 mln in 1985 while turnover fell to 17.7 billion guilders in 1986 from 24.1 billion in 1985. The company said 1986 dividend which will be paid to the Dutch state in its capacity of the firms sole shareholder would be raised to 98 mln guilders from 70 mln guilders in 1985. In an initial comment on its 1986 results DSM said the drop in 1986 turnover had been caused mainly by losses in the companys fertilizer division. REUTER | HIGHER 1986 PROFIT FOR DUTCH CHEMICAL FIRM DSM |
Bundesbank President Karl Otto Poehl said a weaker dollar would be risky and a further appreciation of the mark would damage prospects for sustained West German economic growth. In a speech to the Institute of Contempory German Affairs here Poehl said It would be an extremely risky policy to aim for a further substantial decline in the value of the dollar to correct the trade deficit. He said the United States could face a vicious circle of depreciation inflation and more depreciation if it took that route. Poehl noted West Germany had already taken steps to meet U.S. Demands for greater stimulation of its domestic economy accelerating tax cuts cutting interest rates and tolerating above-target money supply growth. He said he would have been happy to have brought forward five billion marks of tax cuts now planned for January 1988 to the beginning of this year but he said the government faced political constraints getting such measures through the upper house of the West German parliament. But there were also limits to the impact West Germany could accept on exports from a rising mark he said. Poehl said West Germany relied on exports for about one-third of its gross national product so a substantial erosion of export markets could not be offset by increasing demand at home. A further appreciation of the mark could even be an obstacle to further growth he said. Poehl said the Bundesbank had tolerated rapid money supply growth last year because the country enjoyed low inflation and because external factors including low oil prices and favourable terms of trade had given some extra leeway. But Poehl said West Germany now faced a difficult dilemma over monetary policy. The underlying rate of inflation was now two pct not the reported negative inflation rates last year and West Germany was affected more than before by exchange rate developments. For the time being we will have to focus our policy more on the external side and we can live with a more expansionary money supply. But we must be very careful he said. He said he shared some of the U.S. Concern about Japans trade surpluses which affected European countries as well as the United States. Poehl welcomed the so-called Louvre accord of monetary officials of major industrialized countries saying the importance of the February 22 agreement to stabilize exchange rates had been underestimated. All partners had agreed that the dollar was at about the right level and that further changes would damage growth he said. This was a remarkable change in attitude especially on the part of our American colleagues he said. But he said there was still a danger that the correction of the dollars value could overshoot. REUTER | POEHL WARNS AGAINST FURTHER DOLLAR FALL |
Cincinnati Bell Inc said it has started its previously-announced 15.75 dlr per share tender offer for all shares of Auxton Computer Enterprises Inc. In a newspaper advertisement the company said the tender and withdrawal rights will expire May Five unless extended. The offer which has been approved by the Auxton board and is to be followed by a merger at the same price is conditioned on receipt of a majority of Auxtons voting stock on a fully diluted basis. Reuter | CINCINNATI BELL <CSN> STARTS AUXTON <AUXT> BID |
California Biotechnology Inc said it expects to report a loss of 1300000 dlrs to 1600000 dlrs for the first quarter due to increased investment in research and manufacturing and a scaleup of production. The company said research spending is running 50 to 60 pct above a year ago as it tries to commercialize its products as quickly as possible and increased expenditures are expected to continue for several more quarters. It said operating results will fluctuate quarter to quarter depending on the timing of significant payments from commercial partners. In the first three months of 1986 the company lost 150000 dlrs. The company changed its fiscal year in 1986 to a calendar year from a year ending November 30. For the first quarter of last year ended February 28 California Biotech earned 114000 dlrs. Reuter | CALIFORNIA BIOTECH <CBIO> SEES 1ST QTR LOSS |
Qtly div 8-1/2 cts vs 8-1/2 cts prior Pay May One Record April 20 Reuter | PALL CORP <PLL> SETS QUARTERLY DIVIDEND |
Japan should promote division of labour with its Asian neighbours especially the newly industrialized countries to help achieve more balanced world economic growth the Bank of Japan said in a report. Instead of trying to produce everything by itself Japan should open up its market further to imports transfer manufacturing facilities abroad and increase technology transfer with those nations the bank said in its monthly report. Japan should not see industrializing Asian nations as mere competitors in its overseas and domestic markets but as countries that can contribute to the regions prosperity. The bank said trade relations between Japan and the Asian neighbouring countries have so far been vertical meaning that Japan imports primary goods from those countries and exports manufactured goods to them. But this has resulted in an increase in their trade deficits with Japan while some newly industrialized Asian nations have accumulated trade surpluses with countries like the United States. REUTER | JAPAN DIVISION OF LABOUR WITH ASIA URGED |
President Quett Masire appealed for international aid to combat the effects of a drought ravaging land-locked Botswana for the sixth consecutive year. Speaking on state radio Masire said the drought had decimated herds of cattle and wiped out crops throughout the mainly desert country which would be forced to rely on South Africa for most of its food supplies in the coming year. Masire said the government would also be forced to continue a drought relief program until at least the end of 1988 to provide emergency water supplies and supplementary food to vulnerable sections of the population. It is against this background that we appeal to the international community for assistance Masire said. He thanked foreign governments for previous assistance but added The needs of the people in rural areas are greater now not less. We must prevent the human suffering caused by malnutrition. REUTER | BOTSWANA APPEALS FOR DROUGHT AID |
The U.K. Government will inject 283 mln stg gross into <Rolls Royce Plc> when the company is floated at the end of this month the pathfinder prospectus for the sale said. The government will offer all 635 mln existing shares as well as an unspecified number of shares created through the capital injection for sale to the public the prospectus said. The sale price will be announced on April 28 and the offer will close on May 7. Trading is expected to begin on May 19. The offer will be made in the U.K. Only and there will be no offering of shares overseas it said. No allocation will be made of more than 10 pct of the shares in the company and the government will hold on to a golden share to secure that the aero-engine manufacturer remains under U.K. Control the prospectus said. Chairman Sir Francis Tombs said in the prospectus special arrangements were being made for U.K. Employees and pensioners of the company to buy shares on a preferential basis. Secretary of State for Trade and Industry Paul Channon said the capital injection of 283 mln stg would ensure the company had a sound a balance sheet when it returned to the private sector after 1971. REUTER | U.K. GOVT TO INJECT 283 MLN STG INTO ROLLS ROYCE |
California regulators said they were seeking disciplinary action against the accounting firm KMG Main Hurdman as the result of a 1985 audit of Technical Equities Corp. an investment firm that filed for bankruptcy last year. A spokeswoman for the California Board of Accountancy which certifies public accountants and firms in the state said a six-page complaint was filed against the New York-based accounting firm. We basically charged that the Technical Equities audit was not conducted in accordance with generally accepted auditing standards Della Bousquet executive officer for the board told Reuters in a telephone interview. She said a hearing would probably be held before an administrative law judge within three months. Penalties could range from censure to revocation of KMG Main Hurdmans license to do business in California. KMG Main Hurdman merged last week with Peat Marwick Mitchell of New York to become the worlds largest accounting firm. The San Francisco office of the firm declined to comment on the boards allegations. Bousquet said the company among other things was accused of not properly investigating financial transactions and of issuing a favorable opinion in August 1985 that relied on misrepresentations of Technical Equities management. She said the accounting firm although it knew Technical Equities had severe cash flow and liquidity problems was accused of not performing a proper audit of it. The complaint named four individuals including two partners and two audit managers. Technical Equities based in San Jose filed for protection under Chapter 11 of the bankruptcy laws in February 1986 listing debts of 69.7 mln dlrs to 1068 investors. Many of the investors were prominent sports and broadcasting figures. Reuter | CALIFORNIA MOVES AGAINST KMG MAIN HURDMAN |
Iranian forces mounted fresh attacks on the Gulf war southern front today but Iraq said all were repulsed with heavy loss of life. The Iranian news agency IRNA said Iranian troops inflicted severe losses on Iraqi troops and military equipment on the second day of a new offensive east of Iraqs city of Basra. A number of tanks and personnel carriers were seized intact which were used against the enemy in the operational theatre IRNA said. The Iraqi news agency INA said Iraqi forces beat back the latest Iranian thrusts. Baghdad said earlier that the Iranians had gained footholds on Iraqi territory after launching the offensive on three fronts near Basra. IRNA said yesterday the Iranians overran the headquarters of two Iraqi brigades west of Fish Canal a defensive line about 10 km from Basra. Reuter | IRAN MOUNTS FRESH ATTACKS ON IRAQ NEAR BASRA |
West Germany should take steps to increase its official development assistance the Organisation for Economic Cooperation and Development (OECD) said. A report by the organisations Development Assistance Committee (DAC) said German aid levels had shown only a moderate increase in real terms in recent years adding that there was a risk that growth over the next few years might slow further. German aid estimated at around four billion dlrs in 1986 represents 0.46 pct of the countrys GNP. This is above the DACs average of 0.36 pct but might decline if corrective measures were not taken the report said. REUTER | OECD URGES GERMANY TO STEP UP AID |
Unilever Plc and NV <UN.AS> has issued a prospectus through investment bankers Goldman Sachs and Co seeking a buyer for <Stauffer Chemical Co> of the U.S. Which it acquired with the recent takeover of <Chesebrough-Ponds Inc> a Unilever spokesman said. He noted Unilever has been indicating plans to dispose of Stauffer plus some smaller assets of Chesebrough since the bid was made in December. The Stauffer sale prospectus has been sent in recent weeks to a number of companies expressing interest. The Unilever spokesman declined to say how much the group expected to receive for Stauffer. Chesebroughs footwear and tennis racket businesses are also likely to be disposed of he added. Immediately available financial information on Stauffer which is wholly-owned was limited he added. Nine month sales to September 1986 were about 1.2 billion dlrs. Unilever aquired Chesebrough for 3.2 billion dlrs in order to benefit from its well-known toiletry brands and food products. Reuter | UNILEVER SEEKS BUYER FOR STAUFFER CHEMICAL |
A sharp oil price decline and sharp fluctuations of exchange and interest rates in 1986 produced a mixed economic performance by the Association of Southeast Asian Nations (ASEAN) a United Nations study said. The annual report of the U.N. Economic and Social Commission for Asia and the Pacific (ESCAP) said the international economic environment reversed the fortunes of the trade-oriented economies of the six ASEAN member countries. It said the already low 1985 growth rates of ASEANs oil exporting countries -- Brunei Malaysia and Indonesia -- dropped further after the oil price fall. Three oil importers -- Singapore the Philippines and Thailand -- improved their performance mainly by restructuring their economies. But the report said the oil price fall reduced export earnings worsening economic prospects for the exporters. The exporters non-oil commodity prices did not show major improvement and protectionist pressures from industrial countries restricted export of manufactured products it said. The GDPs of Indonesia which was 1.9 pct in 1985 and Malaysia which fell a real one pct barely grew in 1986. The two countries buffeted by unfavourable external factors in the past few years were forced to curb aggregate domestic consumption demands last year to avoid severe balance of payments pressures and to resort to extensive commercial borrowings. The U.N. Body said the economic outlooks of Singapore Thailand and the Philippines improved steadily in 1986 as the year advanced. It said the most favourable factor benefiting the three was the realignment of key currencies especially the appreciation of the yen which has resulted in the increased competitiveness of their exports against those from Japan. The report said the downward spiral plaguing the Philippine economy since 1983 was reversed into an estimated 0.9 pct GDP growth in 1986 with agriculture and public utilities becoming growth sectors. It said the resumption of the Philippines sustained growth rests largely on a satisfactory solution of its debt problem. ESCAP said the yen appreciation together with economic restructuring measures played a big role in helping Singapore recover faster than expected from its 1.8 pct GDP decline in 1985. It said the Singapore GDP achieved a growth of over one pct last year after registering positive growth from the second quarter. The Singapore economic revival was hampered by its own adjustment measures especially its two-year wage freeze enforced last April a glut of its property market and depressed conditions in its ASEAN neighbours which hurt Singapore because they take about a quarter of its total exports. The report said Thailand benefited from the changing world economic environment far more than any of its ASEAN neighbours. The Thai performance stemmed from the expansion o its non-traditional export items last year to cover more manufactured products and its greater exploration of unsaturated export markets such as Asia the Middle East and the European Community. REUTER | ASEAN SHOWS MIXED PERFORMANCE IN 1986 |
CONRAC CORP SAID IT HAS ENTERED TALKS ON ITS ACQUISITION WITH SEVERAL PARTIES |
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Britain and Japan clashed today over U.K. Demands for greater access to the Tokyo Stock Exchange (TSE) as trade tensions between the two countries mounted. British consumer affairs minister Michael Howard told reporters he was dissatisfied with the exchanges response to Britains non-negotiable timetable for increased British membership and warned of possible reprisals in the future. He described his meeting with Tokyo stock exchange (TSE) head Michio Takeuchi in which he demanded greater exchange access as very frank indeed. In a separate press conference TSE President Michio Takeuchi said the exchange has done its utmost to liberalise its membership and called on Britain to make some concessions. According to Takeuchi Howard wants three British firms to be named members of the Tokyo stock exchange by the end of this year. Neither Takeuchi nor Howard would name the companies. Next May is the earliest possible date for opening our membership and I want the British government to understand this Takeuchi said. Membership cannot be increased before space on the trading floor is expanded in May 1988 he said. Howard told reporters that was not good enough and said that Britain would use its powers to ban Japanese financial institutions from London if it was not satisfied with Tokyo. Japan has until the next meeting of senior officials from the two countries in May or June to come up with a postive response to the British timetable or face retaliation he said. The timetable was constructed in a way that made it a very reasonable request and I expect it to be met he said. Asked about the exchanges argument that it has no floor space to expand membership Howard replied We find it very difficult in our country to understand why the considerable ingenuity and resourcefulness of the Japanese (in world markets) is unable to overcome problems of that kind. While here Howard said he also expressed frustration with the huge trade imbalance with Japan and with Tokyos handling of demands by Britains Cable and Wireless for a greater role in Japans telecommunications business. According to Japanese newspaper reports at least some of that message may have penetrated. According to several reports the Post and Telecommunications Ministry is considering a Cable and Wireless proposal for a telephone cable between Japan and the U.S. Ministry officials were unavailable for comment. REUTER | BRITAIN, JAPAN CLASH OVER STOCK MARKET ACCESS |
CANADIAN AIRLINES TO PURCHASE SIX BOEING 767 AIRCRAFT |
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Hauser Chemical Research Inc said it has been contracted by Allied Signal Incs Allied Fibers division for research consulting on further development of improved adhesion of polyolefin fiber through photografting. Hauser said it previously completed the successful first phase of this research effort. Reuter | ALLIED SIGNAL <ALD> FIBERS UNIT SETS RESEARCH |
Varian Associates Inc said it has received a three-year contract worth over 30 mln dlrs from Toshiba Corp to supply anode X-ray generating tubes for Toshibas line of computerized tomography scanners. Reuter | VARIAN <VAR> GETS <TOSHIBA CORP> CONTRACT |
ASIX Systems a developer of test systems for ASIC devices said it has received 4800000 dlrs in a second round of equity financing. The company said investors include first round participants Paragon Partners Citicorp <CCI> Vista Ventures Rust Ventures and Orien Ventures plus new investors North Carolina Bank Venture Co LP RepublicBankCorp <RPT> and ECI Ventures. It said it has now raised total capitalization of 8600000 dlrs. Reuter | <ASIX SYSTEMS> GETS MORE FINANCING |
Conrac Corp sait has started negotiations with several interested parties on its possible acquisition. It said there can be no assurance that any transaction will result from the talks. It gave no further details. Mark IV Industries Inc <IV> started tendering for all Conrac shares at 25 dlrs each on March 24 and owned 9.9 pct of Conrac before starting the bid. Conrac is a producer and marketer of computer-related information display and communications equipment which also produces special purpose architectural and industrial products. It owns Code-A-Phone Corp a producer of telephone answering machines. For 1986 the company reported profits of 7.8 mln dlrs or 1.16 dlrs a share on sales of 153.9 mln dlrs. It has nearly 6.8 mln shares outstanding. Reuter | CONRAC <CAX> IN MERGER TALKS WITH SEVERAL |
Chinas foreign debt is very low given its export capability the size of its economy and its growth potential and the country is politically stable Jean-Maxime Leveque chairman of Credit Lyonnais told reporters. Leveque who has met the heads of most of Chinas banks including the president of its central bank during a visit here said the Chinese authorities are very attentive to its foreign debt and have the matter under control. Official figures show Chinas foreign debt at a post-1949 record 16 billion dlrs at end-1986. Asked if he had advised China to borrow more francs and U.S. Dollars and less yen Leveque said he had not offered any advice but added: The yen and the dollar are not stable but the ECU is stable. Asked if his bank has lost any confidence in China after the resignation of Communist Party chief Hu Yaobang in January he said: We have total confidence in the political stability in China. The policies of the open door and economic development outlined in 1979 will not change although there may be fluctuations in speed. REUTER | TOP FRENCH BANKER SEES CHINA FOREIGN DEBT VERY LOW |
The ruling Liberal Democratic Party (LDP) has proposed expanding imports of 12 farm products named in a U.S. Complaint against Japan to the General Agreement on Tariffs and Trade last year an LDP official said. The products include fruit juices purees and pulp some tomato products peanuts prepared beef products and beans. The proposal will be used as the basis for a more detailed LDP economic package to cut the trade surplus with the U.S. The party is expected to formalise the package before April 19 when LDP General Council Chairman Shintaro Abe visits Washington. Reuter | JAPAN'S LDP URGES MORE IMPORTS OF 12 FARM ITEMS |
Australian trade unions said they have launched week-long strikes and other industrial action in New South Wales NSW to protest against new laws that would reduce injury compensation payments. Union sources said talks with the state government broke down last night but the two sides are scheduled to meet later today in an attempt to find a compromise. Rail freight and shipping cargo movements in the countrys most populous state were the first to be affected and union officials said almost every business sector will be hit unless there is a quick settlement. The state government recently introduced a new workers compensation act which would cut the cash benefits to injured workers by up to a third. The act is now awaiting parliamentary ratification. NSW state premier Barrie Unsworth has said workers compensation has risen steeply in recent years and the proposed cuts would save hundreds of mlns of dollars a year. Union officials said industrial action could spread to other states as the federal government also plans to make sharp cuts in workers compensation. Reuter | AUSTRALIAN UNIONS LAUNCH NEW SOUTH WALES STRIKES |
The Tanzanian government raised the price of beer soft drinks and cigarettes by 20 pct and telephone and telex calls by 10 pct in an attempt to keep its budget deficit for this financial year roughly on target. The deficit for the financial year ending on June 30 was initially forecast at 3350 mln shillings and the new measures will raise some 700 mln shillings in extra revenue a statement from the Ministry of Finance Economic Affairs and Planning said. According to the statement the price increases which take immediate effect were needed because the government had lost tax revenue through lower than expected industrial production. Water and power problems and a shortage of spare parts had reduced the output of Tanzanian factories it said. The ministry also announced a new 30 pct tax on goods imported by non-resident businessmen and said the government would take steps against importers who have been evading duty in collusion with corrupt customs officials. REUTER | TANZANIA RAISES PRICES TO KEEP BUDGET DEFICIT DOWN |
Shr 14 cts vs nine cts Net 217572 vs 153454 Revs 2530273 vs 2558924 1st half Shr 19 cts vs 11 cts Net 299838 vs 174739 Revs 4865249 vs 4495021 Reuter | COMPUTER RESEARCH INC <CORE> 2ND QTR FEB 28 NET |
NMR Centers Inc said it has started building five mln dlr multi-modality Ocean Medical Imaging Center in Toms River N.J. and completion is scheduled for November. It said the center should generate more than five mln dlrs in annual revenues when fully operational. NMR said it is providing about 3500000 dlrs in equipment and working capital and will manage the center while Center State Health Services Corp is financing construction of the 1600000 dlr building. Reuter | NMR CENTERS <NMRC> STARTS BUILDING IMAGE CENTER |
Banking supervisory authorities are not carrying out any special checks at banks in the wake of the currency fraud scandal at Volkswagen AG <VOWG.F> a spokesman for the Hesse regional state central bank LZB said. But inspectors are paying particular attention to foreign exchange matters in their routine checks at banks he said in answer to enquiries. There is no evidence rules were broken. The LZB spokesman was commenting on press reports that banks had parked open currency positions for short periods with VW to circumvent regulations limiting the size of open currency positions that can be carried by banks overnight. The press allegations emerged after VW said it may have lost 480 mln marks as a result of a possible currency fraud. LZBs are regional branches of the Bundesbank. Their inspectors also act for the Federal Banking Supervisory Office in West Berlin which regulates banking in West Germany. Following the 1974 Herstatt bank crash on currency speculation West Germany limited a banks total open positions overnight to 30 pct of shareholders equity and reserves. German press reports have said some banks circumvented this rule by selling excess positions to VW then repurchasing them. The banking regulations only cover banks. Company foreign exchange activities are not subject to the banking regulators. The LZB spokesman said there were no concrete signs that the regulations had been broken and it would be irresponsible to instigate a special check just on the basis of the reports. The LZBs receive monthly balance sheet statistics from banks in their areas which they check and they also routinely inspect all banks in greater detail over longer periods. But LZB officials said it would be hard for inspectors to detect a breach of these rules as they do not check companies and therefore would not see both sides of any parking deal. If the managements of the banks have not spotted them it will be even harder for our inspectors said one official. It would be up to the public prosecutors to order special checks on suspicion of breaches of these regulations they said. Prosecutors in Brunswick are already investigating the VW currency scandal and have ordered the arrest of VWs former chief foreign exchange dealer. Breaches of the Banking Law in this way can be punished by a 100000 mark fine for the dealers involved and in extreme cases by removal of the managers if their active involvement is proved. REUTER | NO SPECIAL CHECKS AT GERMAN BANKS BECAUSE OF VW |
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