text
stringlengths 0
9.69k
| target
stringlengths 0
137
|
|---|---|
Colombias coffee export registrations remain open and there are no plans to close them since a new marketing policy means an unlimited amount can be registered Gilberto Arango president of the private exporters association said. The philosophy of the new policy is not to close registrations. Nobody so far said may would be closed he told Reuters. On March 13 Colombia opened registrations for April and May for an unlimited amount. Without giving breakdowns Arango said private exporters had registered 1322804 bags this calendar year up to April 6 or roughly 440000 bags per month slightly lower than the average in recent years. He estimated the amount of bags registered by the national coffee growers federation at about the same meaning a total of about 900000 bags registered and sold per month by Colombia. The only change that could happen is because of the volume we would be told that from such a date registrations would be for June shipment etc Arango said. Reuter | COLOMBIA COFFEE REGISTRATIONS REMAIN OPEN |
<Alberta Energy Co Ltd> said it filed a preliminary prospectus for an issue of convertible debentures which may total 100 mln dlrs depending on market conditions. It said it had not yet determined the interest rate conversion terms maturity date or size of the issue. Reuter | ALBERTA ENERGY PLANS DEBENTURE ISSUE |
Shr 32 cts vs 34 cts Net 902178 vs 662647 Deposits 174.7 mln vs 134.4 mln NOTE: Per share amounts adjusted to reflect 10-for-one stock split effective Sept 16 1986. Reuter | GATEWAY BANCORP INC <GBAN> 1ST QTR NET |
Selas Corp of America said it signed a letter of intent for a three mln dlr sale and leaseback of its corporate offices and plants. The sale is subject to a number of conditions including approval by the board and the unidentified buyer. Reuter | SELAS CORP OF AMERICA <SLS> SETS SALE/LEASEBACK |
William Rodman a 43-year-old New York investor was indicted for allegedly plotting to manipulate the price of three over-the-counter stocks to drive up their prices and create interest in the companies. Rodman was also charged with securities and wire fraud stemming from the alleged manipulation of the stocks of Memory Metals Inc <MRMT> Memory Protection Devices Inc <MPDI> and <Intravision Inc> beginning in January 1984. The indictment charged that Rodman and other unnamed co-conspirators bought and sold the stocks through 100 accounts in at least 35 broker-dealer firms. Reuter | INVESTOR CHARGES WITH STOCK MANUPULATION |
Brazilian Finance Minister Dilson Funaro who suspended interest payments to creditor banks two months ago said creditors had to trust him when he said Brazil would achieve a trade surplus large enough to continue servicing its debt. Speaking to reporters at the Brazilian Embassy Funaro said he would not seek approval of Brazils economic program outside his country but added At the same time we show credibility you (the banks) are going to have to trust us. Asked if creditor banks would accept Brazils refinancing needs based on a new economic program not endorsed by the International Monetary Fund Funaro said What other options do they have?...They have to try to see our program. Funaro who is in Washington to attend the Interim Committee and Development Committee meetings of the World Bank and IMF said he unveiled his refinancing proposals to the major creditor banks in New York yesterday. According to Funaro the creditor banks agreed on the need to find a solution to the crisis. He did not elaborate. Funaro said the commercial banks agreed on Brazils need for economic growth and added that creditors were aware that Brazil cannot continue to export the 24 billion dlrs in net capital that it transferred over the past three years. He also said that he told bankers about Brazils needs to ensure a seven pct average growth and eight billion to 11 billion dlr trade surplus until 1991. Administration officials familiar with the negotiations said Brazils new economic measures did not make much sense based on current conditions in that country and added that they saw long and difficult negotiations ahead. Lewis Preston chairman of J.P. Morgan and Co. Inc. told Reuters he remains hopeful that Brazil and its foreign bank creditors will reach a debt rescheduling agreement before the end of the year. But Preston who did not attend the meeting between Funaro and creditor banks yesterday added the onus is still on Brazil to put its economic house in order first. They havent even come up with a plan yet Preston said after Morgans annual meeting in New York today. Funaro however said most creditor banks had representatives in Brazil who were well aware of Brazils new economic measures designed to curb a surge in inflation and spending and a sharp drop in exports. Funaro called Brazils program very responsible and very strong adding that it is very different from other years there has been a tremendous change. Based on Brazils current economic situation - suspension of interest payments on 67 billion dlrs owed to banks 200 pct inflation and the need of four billion dlrs in new loans every year until 1991 - he said he was faced with two options. REUTER... | FUNARO SAYS BRAZIL'S CREDITORS MUST TRUST HIM |
American Brands Incs 545 mln dlrs acquisition of National Distillers and Chemical Corps liquor business is expected to be one of a series of acquisitions by the tobacco company analysts said. They were very frustrated with their inability to get Chesebrough. They said they were looking for an acquisition. It doesnt surprise me that they came up with another one said Allan Kaplan of Merrill Lynch and Co. American Brands failed late last year in its 2.9 billion dlrs bid for Chesebrough-Ponds Inc when Unilever N.V. agreed to buy the company. But since then Wall Street has been speculating that American Brands would find another candidate to help reduce its earnings exposure to tobacco. This is just typical said George Thompson of Prudential-Bache securities. Theres going to be more to come here. American Brands had to make an acquisition because tobacco is still a significant part of earnings. Their position is a little less favorable than Philip Morris and RJ Reynolds he said. cash flow from its low growth tobacco but the tobacco business does require great amounts of capital expenditures. It can therefore use its funds to make acquisitions. Analysts said the National Distillers spirits company which makes Gilbeys gin and vodka Old Grandad and Old Crow whiskey is not quite the type of acquisition they envisioned. The distilled spirits business has been in a steady gradual decline for sometime as has the tobacco business said Thompson. REUTER... | MORE AMERICAN BRANDS <AMB> ACQUISITIONS SEEN |
Bundesbank board member Claus Koehler called on central banks of major industrialised nations to cooperate closely on exchange and interest rate policies. In a lecture at the University of Surrey pre-released here Koehler said that the only alternative to cooperation was protectionism and control on capital movements. Central banks have sufficient experience of exchange market transactions to steer exchange rates where they want to have them he said. He added that West German growth forecasts would have to be revised downward because of the recent dollar drop to 1.80 marks from above two marks at the start of 1987. Koehler said that transactions on foreign exchange markets had parted company with transactions in goods services and investments. It was the scale of speculative transactions that determined market trends. Speculative inflows could cause monetary aggregates to grow. To reverse such a rise in the money stock interest rates would have to be lowered to allow funds to drain off. In other words the monetary policy measures required are different from -- and sometimes diametrically opposed to -- those needed when the money stock is increasing as a result of mounting economic activity Koehler said. The dollar fall was one means of reducing the massive U.S. Current account deficit. But attempts to keep the depreciation going by talking the dollar down posed problems. The sharp drop of the dollar had led to an immediate steep rise in the cost of U.S. Imports and a sharp fall in the cost of European imports. But the volume effect of falling imports to the U.S. And rising imports to Europe would take time to make itself felt compared with the price effect. Hence the depreciation of the dollar may well be going further than would be necessary to adjust the current account over the medium term Koehler said. A reduction in the U.S. Current account deficit would occur only if the growth rate of GNP was higher than domestic demand. In Japan and West Germany by contrast domestic demand should rise faster than GNP. In Germany this did indeed happen in 1986 Koehler said. If a further appreciation of the dollar was to be prevented the U.S. Current account deficit could be offset by an inflow of foreign funds into the U.S.. But only if there was an appropriate interest rate differential would Europe and Japan look for financial investment in the U.S. When selecting monetary policy instruments a central bank had to pay greater heed than in the past to the impact its measures might have on expectations and consequent decisions. Koehler said the Bundesbank was changing money market rates by operating on the open market rather than adjusting leading interest rates because of the signal this gives to the market and its substantial impact on exchange rates. It was not only important to achieve the domestic goals of price stability economic growth and full employment but also to tackle international problems like the exchange rate problem the debt problem and the current account problem. A strategy had to be designed that helped the safeguarding of non-inflationary economic growth in an international monetary system largely free of disruptions Koehler said. Given the system of floating exchange rates it was necessary for central banks to agree to intervene. It sufficed to tell the market where central banks saw exchange rates over the next few years and intervention points should not be set because they were only testing points for the market he said. In order to keep the international monetary system free of disruptions central banks should not only intervene jointly but also cooperate on interest rate policies Koehler said. REUTER | BUNDESBANK CALLS FOR CENTRAL BANK COOPERATION |
Australias seasonally adjusted unemployment rate rose to 8.4 pct of the estimated workforce in March from 8.2 pct in February and 7.9 pct a year earlier the Statistics Bureau said. The number of jobless rose to 650700 from 631900 in February and 593200 a year earlier the Bureau said. Unadjusted the number of unemployed rose to 702600 from 699600 in February but the rate eased to 9.0 pct from 9.1 reflecting a slight increase in the estimated workforce. In March 1986 640400 persons or 8.5 pct of the workforce were out of work. REUTER | AUSTRALIAN UNEMPLOYMENT RISES IN MARCH |
CSR Ltd <CSRA.S> said its sale of <Delhi Petroleum Pty Ltd> will not affect the other oil and gas interests it manages or operates. CSR sold Delhi which holds an average 25 pct in the Santos Ltd <STOS.S>-led Cooper-Eromanga Basin onshore gas and liquids joint ventures to an Exxon Corp <XON> unit for 985 mln dlrs on April 1. In a statement to clarify the position CSR said it will retain its Roma Gas unit the associated Roma-Brisbane gas pipeline and the Bula oilfield on Seram Indonesia plus exploration interests in Queensland and Hainan Island China. REUTER | CSR SAYS IT IS RETAINING NON-DELHI GAS-OIL STAKES |
The Agriculture Ministry declined comment on a local newspaper report that Japan had agreed to hold talks on its closed rice market in the new GATT round. We have no idea about the report and cannot comment a spokesman told Reuters. Nihon Keizai Shinbun quoting unnamed government sources said Japan would tell U.S. Agriculture Secretary Richard Lyng and U.S. Trade Representative Clayton Yeutter of its intentions. The two are due to visit Japan later this month for farm talks. The U.S. Has been pressing Japan to discuss the rice issue at the new round of General Agreement on Tariffs and Trade talks. But Japan has said GATT is not the right forum. Imports of rice to Japan are banned under the Foodstuff Control Act. Nihon Keizai said Japans plan resulted from worries about mounting trade tension with the U.S. At the GATT talks Japan will try to persuade the U.S. That its rice policy is justified it said. The 93-nation world trade body began the Uruguay trade round last September. It will take four years to negotiate. REUTER | JAPAN MINISTRY HAS NO COMMENT ON RICE TALKS REPORT |
<Showa Denko Ltd> said it is exporting aluminium billet casting equipment and technology to countries that have recently begun aluminium smelting. A company official said it won a 500 mln yen order to deliver 10 sets of casting equipment to Venezuelas Venalum by end-1987. He said it received an order for one set from Aluminium Bahrain B.S.C. Last year and expects further orders from the Bahrain smelter. Showa Denko withdrew from smelting last year but expects to increase its sales of equipment and technology he said. REUTER | SHOWA DENKO EXPORTS ALUMINIUM CASTING EQUIPMENT |
New Zealands ruling Labour Party government has just completed its three-year economic reform which threw thousands of people out of work yet its popularity has risen as the September deadline for the election draws closer a recent poll shows. An Eyewitness/Heylen Poll conducted for Television New Zealands Eyewitness news broadcast on April 2 showed Labour had the support of 50 pct of voters compared with the opposition National Partys 46 pct. The figures had been reversed in a poll a month earlier. The poll showed 40 pct of the canvassed voters thought the economy would improve over the next year up 12 points on last months result. The increase came in a week when the government turned seven departments into nine profit-oriented corporations run by businessmen who promptly sacked some 4000 employees including half the countrys 1700 coal miners. The latest survey confounded those who proclaimed Labours days were numbered because of perceived insensitivity to its traditional backers the workers political analysts said. The poll indicates people are swinging behind the party and the arguments of Finance Minister Roger Douglas who has presided over the deregulation of the economy and the construction of one based on market forces without subsidies or currency controls the analysts said. The economic reforms by a party increasingly regarded in New Zealand as more akin to the West European-style Social Democrats than working class socialists have rattled the National Party which is now regretting it was not as innovative in the decade it ruled until Prime Minister Robert Muldoon was ousted in 1983 one analyst said. The National Party was further shaken the analyst said when the Press a Christchurch daily said on April 2 the party was on the verge of flying apart with the prospect of a coup attempt against leader Jim Bolger by Muldoon. Bolger said the article was an April Fools joke. Labours reforms have brought unexpectedly strong tax revenues a lower budget deficit and less state borrowing an improvement in the balance of payments a reduction in foreign debt and improved productivity economists said. Inflation should peak at 19.5 pct in the quarter ended March 31 and fall to about eight pct within a year they said. Labours reforms have hit every sector but the most dramatic was the corporatisation of seven government departments on April 1 which critics argue is the first stage step towards the sale of state assets the analysts said. The move stops short of privatisation as the state will retain ownership but the new corporations are expected to be financially self-supporting and pay dividends. Arguments have already broken out over money. One utility Electricorp said its assets are worth less than 3.8 billion dlrs yet the Treasury wants 8.5 billion for them. No agreement has been reached on the value of assets of the former forest service the analysts added. Chairman Alan Gibbs said in a speech the forest service had been losing 100 mln dlrs annually yet due to economies it now employed less than 30 pct of its previous workforce and the new corporation would pay the state a dividend of at least 20 mln dlrs in its first year. Uncertainties have also arisen over the government as the only shareholder retaining the right to order the new corporations to undertake certain projects although the full cost must be met by the state the analysts said. Deputy prime minister Geoffrey Palmer said managers would be held accountable for performance with the government paying for projects undertaken for social or environmental reasons. This policy has already caused problems the analysts added. For example Electricorp has refused to spend several hundred million dlrs to build a hydro project at Luggate further up the Clutha river from the Clyde high dam now under construction in Central Otago. Prime Minister David Lange said this week that Labour MPs had decided last year that Luggate be built and it was important that the government honour its promises. But it is also a matter of importance that we do not see many more jobs lost because of economic distortion than we would save by having that promise honoured to the last he added. REUTER | N.Z. GOVERNMENT POPULARITY RISES AHEAD OF ELECTION |
Hospital Corp of America said it received a letter today from an investor group offering to buy the company for 47 dlrs a share. Based on 82 mln outstanding shares the offer is worth about 3.85 billion dlrs. But the company said that it would take more than five billion dlrs to consummate the merger and retire certain company debt. It said it does not believe the offer is in the best interest of shareholders but added that it is referring the matter to its board for discussions and would respond in due course. Hospital Corp of America said the letter was sent by Charles Miller and Richard Ragsdale two former officers of <Republic Health Corp> and Richard Scott a partner in a Dallas law firm. The investors letter stated that based on discussions with several major financial institutions they were confident financing for the transaction could be arranged Hospital Corp of America said. But it said the letter did not indicate that the investors had made arrangements to obtain financing. It said no further significant details were outlined in the letter. Hospital Corp of America a manager and owner of hospitals earned 174.6 mln dlrs or 2.08 dlrs a share on revenues of 4.93 billion dlrs in 1986. Reuter | HOSPITAL CORP OF AMERICA <HCA> GETS MERGER BID |
<Goodman Fielder Ltd> an Australian food products and supermarket firm is planning a 100 mln U.S. Dlr multi-option note issuance facility lead manager BT Asia Ltd said. Under the three-year evergreen facility which can be extended annually notes will be issued by its subsidiaries <Goodman Fielder New Zealand Ltd> and <Goodman Fielder Industries Ltd> and guaranteed by the parent company. The facility is underwritten up to 75 mln dlrs at a maximum of 17.5 basis points over the London interbank offered rate. The underwriting fee is 10 basis points BT Asia said. The facility will allow the issuers to opt for notes not exceeding 50 mln Australian dlrs and 50 mln New Zealand dlrs on a non-underwritten basis but the outstanding total is limited to 100 mln U.S. Dlrs BT Asia said. The notes in denominations of 100000 U.S. Or Australian or New Zealand dlrs will have maturities of one to 12 months. The borrower has a further option to issue also on a non-underwritten basis medium term notes with maturities of one to three years it added. The management fee was not disclosed and syndication is expected to close tomorrow. REUTER | GOODMAN FIELDER PLANS 100 MLN DLR NOTE FACILITY |
Japans little-known Ministry of Posts and Telecommunications (MPT) has emerged as an international force to be reckoned with political analysts said. MPT thrust into the spotlight by trade rows with the U.S. And Britain is in a position of strength due to its control of a lucrative industry and its ties with important politicians they said. The ministry is standing athwart the regulatory control of a key industrial sector telecommunications and information said one diplomatic source. They are a potent political force the diplomatic source said. But MPT is finding domestic political prowess does not always help when it comes to trade friction diplomacy analysts said. The ministry was a minor ministry and its people were not so internationalized said Waseda University professor Mitsuru Uchida. Suddenly theyre standing at the centre of the world community and in that sense theyre at a loss (as to) how to face the situation. Most recently the ministry has been embroiled in a row with London over efforts by Britains Cable and Wireless Plc to keep a major stake in one of two consortia trying to compete in Japans lucrative overseas telephone business. The ministry has favoured the merger of the two rival groups arguing the market cannot support more than one competitor to Kokusai Denshin Denwa Co Ltd which now monopolizes the business. It has also opposed a major management role in the planned merger for any non-Japanese overseas telecommunications firm on the grounds that no such international precedent exists. The ministrys stance has outraged both London which has threatened to retaliate and Washington which says the merger plan is evidence of Japans failure to honour pledges to open its telecommunications market. Washington is also angry over other ministry moves which it says have limited access for U.S. Firms to Japans car telephone and satellite communications market. Much of MPTs new prominence stems from the growth of the sector it regulates. What has been happening is an important shift in the economy which makes the ministry a very important place said James Abegglen head of the consulting firm Asia Advisory Service Inc. A decision to open the telecommunications industry to competition under a new set of laws passed in 1985 has boosted rather than lessened MPTs authority analysts said. With the legal framework eased they became the de facto legal framework said Bache Securities (Japan) analyst Darrell Whitten. Close links with the powerful political faction of the ruling Liberal Democratic Party (LDP) nurtured by former Prime Minister Kakuei Tanaka are another key to MPTs influence the analysts said. Other factions ignored MPT (in the 1970s) but the Tanaka faction was forward looking and ... Recognized the importance of MPT Uchida said. Many former bureaucrats became members of the influential political group he added. The ministry also has power in the financial sector due to the more than 100000 billion yen worth of deposits in the Postal Savings System analysts said. MPT has helped block Finance Ministry plans to deregulate interest rates on small deposits a key element in financial liberalisation since the change would remove the Postal Savings Systems ability to offer slightly higher rates than banks they said. Diplomatic sources frustrated with what they see as MPTs obstructionist and protectionist posture have characterized the ministry as feudal. Critics charge MPT with protecting its own turf limiting competition and sheltering the former monopolies under its wing. Providing consumers with the best service at the lowest price takes a back seat to such considerations they said. But many of the ministrys actions are not unlike those of its bureaucratic counterparts in much of the Western world including Britain several analysts said. The United States is really the odd man out Abegglen said. For a government to take the view that it wants to keep order in utilities markets is not an unusual and/or unreasonable view he said. REUTER | ECONOMIC SPOTLIGHT - TELECOM IS KEY JAPAN MINISTRY |
Members of prime minister Yasuhiro Nakasones ruling Liberal Democratic Party (LDP) have shunned his support in their campaigns for upcoming local elections. His presence will do more harm than good an LDP candidate in Tokyo told Reuters. The candidate is one of several conservatives who have rebelled and joined the public outcry against Nakasones proposal for a five pct sales tax. Political analysts said Nakasone might have to step down before the Venice summit of industrial democracies on June 8-10 if the LDP lost too many major local seats. Nakasones popularity has dropped sharply since he led his party to its greatest-ever election victory last July and analysts said the proposed tax was one reason for the decline. Over 2500 local seats will be filled during two rounds of polling. The first round is on Sunday the second on April 26. Political analysts said a seat to watch would be the governorship of Fukuoka southern Japan. The LDP and two centre parties are challenging the incumbent governor Hachiji Okuda who is supported by the opposition socialist and communist parties. The proposed tax is a key campaign issue. The LDP and the centrist parties should have about 1350000 votes against 700000 for Okuda. But Okuda is the incumbent and has the sales tax weapon said Rei Shiratori professor of political science at Dokkyo University. Nakasone will serve out his term to the end of October if the LDP wins in Fukuoka he said. Analysts believe the opposition is likely to win the governorship of the northern island of Hokkaido. But Kenzo Uchida professor of political science at Hosei University said Nakasone can afford to get fairly tough if the LDP loses only in Hokkaido. The opposition parties are campaigning to scrap the sales tax proposal. The tax is one of the main pillars of Nakasones plan to overhaul the tax system which has remained unchanged for 36 years. It is also a key element in plans to boost Japanese domestic demand and cut back on exports. Without the tax revenue the government would have less to spend on stimulating the economy. REUTER | MEMBERS OF JAPAN'S RULING PARTY SHUN NAKASONE |
Keen demand for gold stocks and quality industrials pushed the Australian share market to all-time highs in active trading brokers said. A higher close on Wall Street a strong local dollar and easier domestic interest rates boosted sentiment in the industrial sector while demand for gold stocks continued despite a slightly softer bullion price. Brokers said Western Mining featured in trading gaining 30 cents to 9.00 dlrs after announcing a five-for-eight bonus issue. By the close of trading the all ordinaries index had risen 12.5 points above yesterdays close to a record 1771.6. The all industrials index gained 20.8 points to 2639.3 and the all resources 6.2 to 1110.2. The gold index passed yesterdays record close by 73.6 points to reach 3156.2. National turnover was a high 206.7 mln shares worth 376.3 mln dlrs with rises outnumbering falls five to three. Turnover was boosted by a large number of special sales including one for 5.0 mln Kalimantan Gold at 65 cents 5.95 mln Minora Resources at 23 cents 3.57 mln Barrier Reef at 65 and about 13 specials in Elders IXL totalling more than 2.0 mln shares brokers said. Elders rose 14 to 5.64 as more than 6.0 mln traded following news it will float Courage hotels. Elsewhere in the industrials sector investors concentrated on banking and insurance stocks and those in the food and alcohol and tobacco sectors. ANZ gained 12 cents to 3.70 dlrs Westpac and National Australia four each to 5.06 and 5.64 and FAI 10 to 10.60 after reaching a high of 10.90. Goodman Fielder advanced 10 to 4.60 Southern Farmers 20 to 8.40 and Arnotts 10 to 4.70. Amatil gained 10 to 10.70 and Rothmans 20 to 7.20. Others to gain included Bell Group up 15 to 10.85 IEL 16 higher at 5.36 and Wormald up 20 at 3.65. Coles Myer rose 20 to 7.00 after reports it plans to expand overseas. REUTER^M | AUSTRALIAN SHARE MARKET CLOSES AT ALL-TIME HIGHS |
Following is the text of a statement by the Group of Seven -- the U.S. Japan West Germany France Britain Italy and Canada -- issued after a Washington meeting yesterday. 1. The finance ministers and central bank governors of seven major industrial countries met today. They continued the process of multilateral surveillance of their economies pursuant to the arrangements for strengthened economic policy coordination agreed at the 1986 Tokyo summit of their heads of state or government. The managing director of the International Monetary Fund also participated in the meeting. 2. The ministers and governors reaffirmed the commitment to the cooperative approach agreed at the recent Paris meeting and noted the progress achieved in implementing the undertakings embodied in the Louvre Agreement. They agreed however that further actions will be essential to resist rising protectionist pressures sustain global economic expansion and reduce trade imbalances. In this connection they welcomed the proposals just announced by the governing Liberal Democratic Party in Japan for extraordinary and urgent measures to stimulate Japans economy through early implementation of a large supplementary budget exceeding those of previous years as well as unprecedented front-end loading of public works expenditures. The government of Japan reaffirmed its intention to further open up its domestic markets to foreign goods and services. 3. The ministers and governors reaffirmed the view that around current levels their currencies are within ranges broadly consistent with economic fundamentals and the basic policy intentions outlined at the Louvre meeting. In that connection they welcomed the strong implementation of the Louvre Agreement. They concluded that present and prospective progress in implementing the policy undertakings at the Louvre and in this statement provided a basis for continuing close cooperation to foster the stability of exchange rates. REUTER | G-7 ISSUES STATEMENT AFTER MEETING |
Honda Motor Corp <HMC.T> will sell cars equipped with four-wheel steering in Japan from tomorrow and will export the cars to the U.S. And Europe later this year company officials said. They told a press conference shipments to the U.S. Will begin around July and to Europe around October. Four-wheel steering will be available on the Prelude saloon at an added cost of 80000 yen they said. Honda expects to sell 48000 Prelude saloons in Japan and to ship 80000 to the U.S. 10000 to Canada and 20000 to Europe by year-end. REUTER | HONDA TO SELL FOUR-WHEEL STEERING CARS |
British Airways Plc <BAB.L> is issuing a 100 mln stg eurobond due May 6 1997 paying 9-1/2 pct and priced at 101-1/2 lead manager Union Bank of Switzerland said. The non-callable bond is available in denominations of 1000 and 10000 stg and will be listed in London. The selling concession is 1-1/4 pct while management and underwriting combined pays 3/4 pct. Payment date is May 6. REUTER | BRITISH AIRWAYS ISSUES 100 MLN STG EUROBOND |
The Bank of France said it has invited offers of first category paper today for a money market intervention tender. Money market operators were divided over whether the Bank of France will use to occasion to cut its intervention rate which has stood at 7-3/4 pct since March 9. Some thought a price cut unlikely while others said there was room for a further 1/4 point cut by the bank. REUTER | BANK OF FRANCE TO HOLD MONEY MARKET TENDER TODAY |
RIO TINTO-ZINC CORP PLC 1986 PRETAX PROFIT 601.7 mln stg vs 614.4 mln |
|
Year to December 31 1986 SHR 78.91p vs 83.05p DIV 16.5p making 23.5p vs 22p PRETAX PROFIT 601.7 mln stg vs 614.4 mln NET ATTRIBUTABLE PROFIT 245 mln stg vs 257 mln TURNOVER 3.34 billion stg vs 3.09 billion Note - Accounts have been restated Full name of company is Rio Tinto-Zinc Corp Plc <RTZL.L> Group operating profit 529.4 mln stg vs 470.7 mln Operating costs 2.81 billion stg 2.63 billion Share of profit less losses of related companies 104.4 mln stg vs 165.0 mln Interest receivable/other income 41.5 mln stg vs 47.4 mln Interest payable 73.6 mln stg vs 68.7 mln Tax 274.8 mln stg vs 277.1 mln Leaving 326.9 mln stg vs 337.3 mln RTZ investment in Australian associate CRA has been equity accounted for 1986 and 1985 figures restated on the same basis after the reduction of RTZs interest to 49 pct in October 1986. REUTER | RIO TINTO-ZINC NET ATTRIBUTABLE PROFIT LOWER |
The value of turnover on the Australian Stock Exchange (ASX) soared to a record 17.11 billion dlrs in the first three months of 1987 from 7.50 billion in the corresponding months of 1986 the ASX said. Its statement did not give the previous peak. First quarter volume also rose sharply to 9.95 billion shares from 4.31 billion a year earlier it said. The record volume reflected increased investment in Australian companies by local and overseas institutions and the popularity of gold mining and other resource sector shares the ASX said. In the nine months ended March 31 turnover value climbed to 38.52 billion dlrs from 20.72 billion a year earlier the ASX said. Volume in the nine month period rose to 24.07 billion shares against 13.15 billion a year earlier it added. REUTER | AUSTRALIAN SHARE VOLUME HITS FIRST QUARTER RECORD |
China is likely to succeed in joining GATT despite policies that contradict free trade because western countries support its entry western diplomats said. China applied to join the General Agreement on Tariffs and Trade (GATT) in July 1986. The organisation formed in 1948 to integrate the worlds free market economies now regulates 80 pct of world trade. The GATT secretariat is expected to submit a list of detailed questions to China next month at the start of long and complex entry negotiations the diplomats said. One diplomat said Chinas prospects are good with its application supported by the United States Japan and the European Community for political and economic reasons. The fear is that if China was refused entry it would draw back the bamboo curtain and go back to the way it was he said. Another said the Soviet Union was waiting in the wings. If GATT accepted China it would be hard not to accept the Soviet Union he said. Chinas agreement will be seen as a model for the Soviet Union. GATT is not a political body. But serious problems have to be tackled during the talks including Chinas pricing system and trade subsidies. GATT is based on free trade and aims to lower tariffs and promote trade with prices alone dictating who buys what. One diplomat said it was very hard in China to establish the real cost of goods because many prices are set by the state and often contain subsidies. Even when you go in person to a factory or a company to try to find out the real cost of something officials do not give you a clear answer. The political meaning is evident. They do not want to answer he said. Chinas position as set out in a memorandum to GATT in February is that it is gradually reforming its price system to bring prices in line with real production costs and replace administrative controls with market ones. Another diplomat said countries with centralised economies such as Hungary and Yugoslavia had joined GATT. However China would not apply for membership on similar terms but rather as a less developed country entitled to preferential treatment. He added that the economies of Hungary and Yugoslavia are small while Chinas is huge and its weight would be felt. It (China) is the worlds number two producer of coal for instance the diplomat said. It could have a very large impact on world trade. Another sticking point is the subsidies China pays its companies to export so it can earn foreign exchange to pay for vitally needed technology equipment and raw materials. A Japanese trader said China lost money on every tonne of grain it exported because it had to make up the difference between a low world price and a high domestic price. A western diplomat said an official of a foreign trade bureau of a major inland Chinese city told him export subsidies might be as high as 100 pct for some products. When I asked what the subsidy figure was for the whole country he referred me to the Ministry of Finance adding with a grin that they would not tell me he said. He said officials were unwilling to give figures because of the sensitivity of the subject. Unless something is done to change this China will find many countries in GATT putting restrictions on imports from China the diplomat added. In a major speech on the economy late last month Planning Minister Song Ping made an indirect reference to this problem. While trying to expand exports to earn more foreign exchange we must improve economic accounting practices and reduce the cost of exports he said. One diplomat said Chinas freedom to change its foreign trade and pricing system to bring them more in line with GATT principles could conflict with domestic pressures. China has said there will be no major price reforms this year following widespread discontent in 1985 and 1986 from a public used to stable prices since the Communist takeover in 1949. So the question is how fast and how thoroughly can China reform its economy? the diplomat said. How can it balance the requirements of GATT membership with domestic political needs? But he added the advantages of Chinas entry would in the end outweigh these problems. Chinas entry would force it to modernise and become more a part of the world economy he said. Just as China would get increased access to foreign markets so it would have to give more access to its domestic market to foreign countries. REUTER | CHINA LIKELY TO JOIN GATT, DIPLOMATS SAY |
Burmah Oil 1986 pre-tax profit 105.9 mln stg vs 79.6 mln. |
|
Remarks by two leading central bankers sparked renewed speculation in financial markets that a cut in the West German three pct discount rate may be under discussion currency dealers said. Bundesbank board member Claus Koehler said in a speech that monetary growth resulting from speculative capital inflows required cuts in interest rates. Separately West Berlin state central bank president Dieter Hiss told journalists that the discount rate could fall below its lowest ever point of 2.75 pct. He made clear that he was not making a forecast on interest rates however. Currency dealers here and in the Far East said the dollar gained slight background support from the speculation. But German dealers noted that the Bundesbank kept the 3.80 pct rate unchanged at which it offered liquidity to the money market this week dashing some expectations that it may either offer lower fixed rate money or offer a reduced minimum rate and let the strength of banks demands set the allocation rate. It allocated 6.1 billion marks in new liquidity much less than the 14.9 billion leaving the market as a prior pact expired. This further weakened sentiment the Bundesbank could move to a more accommodative monetary stance dealers said. Koehler said in a speech in Surrey England speculative capital inflows may cause monetary growth regardless of whether central banks intervened or exchange rates fell. In other words the monetary policy measures required are different from -- and sometimes diametrically opposed to -- those needed when the money stock is increasing as a result of mounting economic activity. Though Koehler was known to be the most liberal of the generally monetarist Bundesbank board his comments marked the first time cuts in rates had been concretely suggested as a counterpoint to overly strong monetary growth dealers said. REUTER^M | GERMAN BANKERS' REMARKS REVIVE TALK OF RATE CUT |
XYVision Inc is issuing a 25 mln dlr convertible eurobond due May 5 2002 paying an indicated coupon of between 5-3/4 and six pct and priced at par lead manager Credit Suisse First Boston Ltd said. The issue is callable after 30 days at 106 pct declining by one pct per annum to par thereafter. It is not callable for three years unless the conversion price exceeds the stock price by 130 pct. The selling concession is 1-1/2 pct while management and underwriting each pay 1/2 pct. Final terms will be set on or before April 15. The issue is available in bearer and registered form in denominations of 5000 dlrs. It will be listed in Luxembourg while the payment date is May 5. REUTER | XYVISION ISSUES CONVERTIBLE EUROBOND |
The Soviet trade deficit with the West almost quadrupled last year reaching 2.72 billion roubles compared with 713 mln in 1985 official figures showed. Statistics published by the monthly journal Foreign Trade showed Soviet trade turnover for 1986 fell to 130.9 billion roubles from 142.1 billion the previous year a drop of 7.8 pct. Moscows trade surplus with East Bloc countries continued to grow in 1986. Western analysts attributed the deficit rise with the West to the world oil price slump which hit Moscows main export and cut hard currency earnings needed for purchases in the West. REUTER | SOVIET TRADE DEFICIT WITH WEST SOARS IN 1986 |
Year 1986 Shr 33.54p vs 34.2p. Final div 9.5p making 14p vs 12.75p. Pre-tax profit 105.9 mln stg vs 79.6 mln. Net profit before minorities 56 mln vs 52.1 mln. Turnover net of duties 1.32 billion stg vs 1.46 billion. Minorities 800000 stg vs same. Extraordinary debit 20.4 mln vs 28.2 mln. NOTE: Companys full name is The Burmah Oil Co Plc <BURM.L> REUTER^M | BURMAH OIL PROFIT CLIMBS TO 105.9 MLN STG |
Pests and disease which destroyed 1.1 mln tonnes of wheat in China in 1986 are threatening crops on 11.64 mln hectares this year the China Daily said. About 14.54 mln hectares of wheat were affected in 1986. The paper said abnormal weather conditions had encouraged the spread of wheat midges in 2.47 mln hectares in Shanxi Henan Sichuan Anhui Hebei and Jiangsu. In Henan Shandong and Hebei wheat aphids are affecting 4.67 mln hectares wheat red mite 2.8 mln hectares and wheat powdery mildew 1.7 mln hectares. REUTER | CHINA'S WHEAT CROP THREATENED BY PESTS, DISEASE |
Rio Tinto-Zinc Corp Plc <RTZL.L> RTZ said the predicted rise in industrial production in the U.S. And Europe should boost its 1987 performance. Consumption of some base metals and their dlr prices are showing signs of improvement although iron ore markets have weakened. The oil price in U.S. Dlrs is above the 1986 average and if sustained should improve energy earnings. The company was commenting in a statement on its 1986 results which on a restated basis showed net attributable profits lower at 245 mln stg after 257 mln the previous year. Pretax profits also dipped to 601.7 mln stg after 614.4 mln. RTZ said the excellent performance of its expanding range of industrial businesses in 1986 was offset by the collapse in oil prices. Industrial businesses contributed 202 mln stg to net profit a 40 pct increase from 144 mln in 1985 and 60 pct of the total. Trading performance improved at wholly-owned subsidiaries RTZ Borax Ltd RTZ Cement Ltd RTZ Chemicals Ltd and RTZ Pillar Ltd. First time contributions from recent investment and acquisitions mainly in speciality chemicals and minerals also aided performance. Metals activities contributed 83 mln stg to net profit. | RTZ SEES RISING U.S. OUTPUT AIDING 1987 RESULTS |
State-owned Korea Electric Power Corp (KEPCO) has signed contracts with three U.S. Firms to supply equipment and services for its tenth and eleventh nuclear power plants a KEPCO spokesman said. Combustion Engineering Inc <CSP> will supply pressurised light-water reactors General Electric Co <GE> will provide turbines and <Sargent and Lundy Engineers> will supply engineering and design services he said. Work on the two plants at Yongkwang in the southwest of the country is due to start around June 1988 and be completed in 1995 and 1996. The firms will receive a total of 430 mln dlrs or 11.5 pct of the construction cost of 3.74 billion dlrs. The three suppliers were chosen from 13 bidders after tenders closed in April 1986. South Korea operates six atomic stations is building another three and has plans for about 20 by the year 2000. REUTER | SOUTH KOREA SIGNS CONTRACTS FOR TWO NUCLEAR PLANTS |
Group shr 35.99 yen vs 38.28 Net 21.01 billion vs 21.08 billion Current 47.73 billion vs 48.06 billion Operating 55.04 billion vs 54.99 billion Sales 792.71 billion vs 864.28 billion NOTE - Company forecast for current year is group shr 37.70 yen net 22 billion current 52 billion and sales 800 billion. REUTER | BRIDGESTONE CORP <BRIT.T> YEAR TO DECEMBER 31 |
The state-owned Peoples Construction Bank of China is making its first foreign borrowing 300 mln dlrs to finance a large ethylene plant in Shanghai the Peoples Daily said. The newspapers overseas edition said the plant will produce 300000 tonnes of ethylene a year. It said the bank last year started foreign exchange services for the first time on an experimental basis in Shenzhen Zhuhai and Xiamen but it gave no more details. REUTER | CHINESE BANK TO MAKE FIRST FOREIGN BORROWING |
<Equiticorp Hongkong Ltd> is planning a 30 mln U.S. Dlr transferrable loan facility to raise working capital lead managers <Manufacturers Hanover Asia Ltd> and <Manufacturers Hanover Ltd> said. The two year loan with bullet repayment carries interest at 5/8 of a percentage point over the London interbank offered rate. It will be guaranteed by parent company <Equiticorp Holdings Ltd> of New Zealand the managers said. Syndication is proceeding and managers and participants are being invited to participate at four levels with management fees ranging from 15 to 30 basis points it said. REUTER | EQUITICORP H.K. UNIT TO RAISE 30 MLN U.S. DLRS |
The maximum export rebate granted at yesterdays EC sugar tender marked no change in policy over producer complaints that they are not obtaining the EC intervention price in exporting sugar outside the Community EC Commission sources said. The maximum rebate was 46.496 Ecus per 100 kilos for 118350 tonnes of sugar down from 46.864 Ecus the previous week but the change is explained by world market conditions. Producers claim the rebate was short of the level needed to obtain a price equivalent to the intervention price by over one Ecu per 100 kilos and was 0.87 Ecu short the previous week the sources said. They said this was despite the fact that the Commission had to accept 785000 tonnes of sugar into intervention from operators protesting that rebates are too low. Operators have now until early May to withdraw this sugar. But they have not given any sign of planned withdrawals unless the Commission reviews its export policy they said. REUTER | EC SUGAR TENDER SEEN MARKING NO CHANGE IN POLICY |
CIBC Australia Ltd is issuing a zero coupon eurobond with a total redemption amount of 125 mln Australian dlrs due May 15 1992 priced at 54 pct sole lead manager CIBC Ltd said. The issue is available in denominations of 1000 and 10000 Australian dlrs and is guaranteed Canadian Imperial Bank of Commerce. The selling concession is 3/4 pct while management and underwriting combined pays 5/8 pct. The payment date is May 15. REUTER | CIBC UNIT ISSUES AUSTRALIAN DLR ZERO COUPON BOND |
The current year has opened well with trading prospects remaining favourable Burmah Oil Co Plc <BURM.L> said in a statement with its 1986 results. The company plans to maintain a steady rate of investment in its marketing operations and to obtain improved profit margins on its liquified natural gas LNG project. Burmah has the financial capacity to continue making acquisitions within its business sectors it added. The rationalisation programme including sale of the Bahamas oil terminal and all peripheral activities is now complete. Pre-tax profit for 1986 rose to 105.9 mln stg from 79.6 mln. REUTER^M | BURMAH OIL PROSPECTS REMAIN FAVOURABLE |
Year 1986 Consolidated net profit 67 mln Swiss francs vs 42 mln. Dividend 100 francs per registered share vs 80 francs and 10 francs per participation certificate vs eight. Consolidated turnover 4.55 billion francs vs 4.54 billion. Parent company net profit 38.2 mln francs vs 26.4 mln. Parent company turnover 2.20 billion francs vs 2.29 billion. Note - Companys full name is Gebrueder Sulzer AG <SULZ.Z> REUTER | GEBRUEDER SULZER 1986 PROFIT UP ALMOST 60 PCT |
Mitsubishi Corp <MITT.T> said it will issue a 50 billion yen unsecured seven-year convertible bond and a 30 billion yen unsecured nine-year convertible bond on the domestic capital market through public placement with Nikko Securities Co Ltd as lead manager. Coupon and conversion price for both par-priced bonds will be set at a board meeting to be held later this month and payment is due on May 14 Mitsubishi said in a statement. The seven-year bond matures on September 30 1994 and the nine-year bond on September 30 1996. Mitsubishis share price fell 30 yen to 1200 on the Tokyo Stock Exchange today. REUTER | MITSUBISHI TO ISSUE TWO CONVERTIBLE BONDS |
The British Civil Aviation Authority (CAA) has granted licenses for two airlines <Brymon Airways> and <Eurocity Express> to fly three lucrative European routes from the 20 mln stg London docklands airport. Brymon plans to offer five flights a day from the London City Airport to Paris and three to Amsterdam and Brussels. Eurocity will also operate flights to Duesseldorf and Rotterdam. The airport is due to open in October and is only a 20-minute taxi ride from the capitals financial district the City compared to an hour to get from the City to the nearest existing airport Heathrow. REUTER | NEW LONDON AIRPORT WILL OFFER FLIGHTS TO EUROPE |
The leaders of two of Japans top business groups said in separate statements the Group of Seven (G-7) accord reached in Washington yesterday is of deep concern to Japan because it shows the major industrial nations regard the yens current level as appropriate. Eishiro Saito chairman of the Federation of Economic Organizations (Keidanren) said the yens present rate is well above adequate levels. He did not elaborate. Takashi Ishihara chairman of the Japan Committee for Economic Development said the accord will not prevent the yen from rising further. We do not understand why the G-7 approved present rates as the yen has risen excessively since the Paris accord Ishihara said. G-7 members Britain Canada France Italy Japan the U.S. And West Germany said in a statement they consider their currencies are now within ranges broadly consistent with economic fundamentals. Saito called on each G-7 member nation to prepare to intervene in the market strongly enough to ensure exchange rates are stabilised at appropriate levels. REUTER | JAPAN BUSINESS LEADERS SAY G-7 ACCORD IS WORRYING |
<Kowloon Electricity Supply Co Ltd> a joint venture of China Light and Power Co Ltd <CLPH.HK> and Exxon Corp <XON> has renewed and increased an existing commercial paper program arranger <Schroders Asia Ltd> said. The fully underwritten program which expires this month has been extended to December 1990 and increased to 540 mln H.K. Dlrs from the original 500 mln dlrs it said. The underwriting fee is 1/8 of a percentage point over the Hong Kong interbank offered rate. Commercial paper in tenures of one to three months will be issued in denominations of one mln dlrs it said. The program offers a U.S. Dlr option whereby commercial paper in denominations of 100000 U.S. Dlrs will be issued subject to the same underwriting margin. Joining Schroders as underwriters are Barclays Bank Plc Citicorp International Ltd Paribas Asia Ltd Sanwa International Finance Ltd and Sumitomo Finance (Asia) Ltd. The six underwriters will be joined by 11 other financial institutions in the tender panel. REUTER | CHINA LIGHT UNIT RENEWS COMMERCIAL PAPER FACILITY |
Sankei Building Co Ltd is issuing a 60 mln dlr equity warrant eurobond 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 Sumitomo Bank Ltd and is available in denominations of 5000 dlrs. The selling concession is 1-1/2 pct while management and underwriting combined pays 3/4 pct. The payment date is May 7 and listing will be in Luxembourg. Final terms will be fixed on April 15. The warrants are exercisable from May 21 1987 until April 23 1992. REUTER | SANKEI BUILDING ISSUES EQUITY WARRANT EUROBOND |
The Chicago Board of Trade (CBOT) will list yen bond futures contracts once the U.S. Commodity Futures Trading Commission gives its approval which could come within six months CBOT chairman Karsten Mahlmann said. Mahlmann earlier told a press conference he would visit Kyoji Kitamura director-general of the Finance Ministrys Securities Bureau to express the CBOTs concern that Japanese financial institutions and individuals are not permitted to trade on the CBOT. Mahlmann is on a two-week tour of Hong Kong Tokyo and Sydney. Mahlmann urged Japan to boost Tokyos status as a world financial center by promoting the internationalisation of its financial industry. The Finance Ministry is expected to allow local banks securities houses and insurance companies to use overseas markets from this month bond market sources said but officials would only say the issue was under study. Initially the ministry is likely to bar corporate and individual investors due to their relative inexperience and to limit trading to instruments like currency stock indexes time deposits and government debt futures the sources said. Mahlmann told reporters the CBOT will start evening trading to coincide with Far East morning activity on April 30. But he added night sessions would not preclude the CBOT from forming links with Far Eastern exchanges although nothing had been decided. Asked what type of financial futures would be appropriate he cited products concerning debt and equity. The CBOT evening session will run from 6:00 to 9:00 P.M. Chicago time (2300 to 0200 GMT) which is 8:00 to 11:00 A.M. In Tokyo and trading will be limited to four contracts -- U.S. Treasury note and bond futures and options he said. Yen bond dealers said a proposed link between CBOT and the London International Financial Futures Exchange (LIFFE) combined with yen bond futures listings on both would multiply volume if trade was encouraged by Tokyo-based orders. Healthy liquidity growth in cash yen bond markets overseas is a prerequisite for expanded futures trading traders said. LIFFE plans to list yen bond futures should go ahead from September possibly coinciding with the CBOT traders said. The CBOT applied for permission to offer a long-term Japanese government bond futures contract on March 17 and the authorities must rule on the request within a year. REUTER | CBOT SEES YEN BOND FUTURES LISTING IN SIX MONTHS |
<Pergamon Holdings Ltd> and its associate companies said that they had sold 30 mln ordinary shares in the British Printing and Communication Corp Plc <BPCL.L> and 10.5 mln in <Hollis Plc> together with other securities. No total price was given but the company said the proceeds of the sales would be used to fund Pergamons expansion programme and worldwide acquisition stategy. The company said that following these sales Pergamons ordinary shareholdings in both BPCC and Hollis remained above 51 pct. It said it had no intention of further reducing its holdings in either company. REUTER | PERGAMON HOLDINGS REDUCES BPCC AND HOLLIS STAKES |
British Foreign Secretary Sir Geoffrey Howe and U.S. Secretary of State George Shultz plan to discuss the growing crisis in trade relations with Japan in talks in Washington government officials said. Howe views the apparent deadlock in British attempts to secure a greater share in Japanese domestic markets very seriously said an official travelling with him. Britain has threatened to impose retaliatory restrictions on Japanese finance houses in London if Japan does not open up its markets. The U.S. Has already imposed higher tariffs on computer microchips imported from Japan. Michael Howard the British minister for consumer and corporate affairs repeated the threat of sanctions before leaving Tokyo yesterday at the end of a four-day visit during which he failed to secure major concessions from the Japanese. Howes main mission in Washington was to brief Shultz on Prime Minister Margaret Thatchers visit to the Soviet Union last week. Shultz is due to fly to Moscow next week. REUTER | BRITAIN, U.S. TO DISCUSS JAPAN TRADE RELATIONS |
Year 1986 Net profit 635.5 mln guilders vs 603.4 mln. Revenues 17.35 billion guilders vs 17.27 billion. Net profit per nominal 2.50 guilder share 5.79 guilders vs 5.67 corrected for capital increase. (1985 uncorrected figure 5.73). Dividend 2.50 guilders vs 2.38 corrected. (2.40 uncorrected.) Note - Full name is Nationale Nederlanden NV <NTNN.AS> REUTER | NATIONALE NEDERLANDEN PROFITS, SALES STEADY |
<Bond Corp International Ltd> said it has sold a residential block at Hong Kongs mid-levels to a joint venture between Sun Hung Kai Properties Ltd <SHKP.HK> and <New Town (N.T.) Properties Ltd> for 138 mln H.K. Dlrs. Bond International a subsidiary of the Australia based Bond Corp Holdings Ltd <BONA.S> will receive net profits of about 16 mln dlrs from the deal. The firm bought the building which has total floor spaces of 110580 sq ft and is now fully let as part of a parcel of properties which it acquired from Hongkong Land Co Ltd <HKLD.HK> for 1.43 billion dlrs late last year. REUTER | BOND INTERNATIONAL SELLS H.K. RESIDENTIAL BUILDING |
The statement issued today by the Group of Seven (G-7) industrialised nations has put Japan under greater international pressure to stimulate its economy or face a further rise in the yen private economists and analysts said. They said the communique reflected increased foreign frustration with Japans burgeoning trade surplus and its tight-fisted fiscal policies in the past. Unless Japan implements economic measures included in the statement foreign protectionist sentiment would grow and the yen would come under renewed upward pressure they said. The G-7 -- grouping the U.S. Japan West Germany Britain France Italy and Canada -- said in the statement they welcomed proposals announced by Japans ruling Liberal Democratic Party (LDP) for extraordinary and urgent measures to stimulate its economy and that Japan reaffirmed its intention to further open its domestic markets. Its rather unusual that only Japan was mentioned in the communique and promised something said Takeshi Saito general manager of Fuji Bank Ltds research division. This showed how strongly other nations want Japan to take concrete and effective steps to redress its trade surplus he said. The statement referred to some details of Japans proposed economic measures such as early implementation of a large supplementary budget exceeding those of previous years and unprecedented front-end loading of public works expenditures. It did not mention any figure for the projected supplementary budget but LDP officials have said it will amount to more than 5000 billion yen for fiscal 1987 which compares with 2000 billion provided for the previous year. It signalled a clear shift away from the conservative fiscal policies of the past said Kazuaki Harada senior managing director of Sanwa Research Institute. For the last five years the government has stuck to a tight-fisted fiscal policy in its attempt to stop issuing deficit financing bonds by 1990. But mounting foreign pressure for Japan to boost its economy hurt by the yens extended rise hurried the government to hammer out a draft economic package and bring it to the latest G-7 meeting. Harada said Japan should not view expansion of its economy as the result of pressure but as an opportunity to lead world economic growth. The Japanese economy has the potential to take a leadership role and we should recognize it Harada said. If Japan fails to meet such international expectations it will invite some retaliatory moves especially from the U.S. Which may result in a further rise of the yen analysts said. The G-7 communique represented a test for Japans commitment to domestically-generated economic growth and to a more balanced world trade structure they said. REUTER | G-7 COMMITMENT TESTS JAPAN'S WILL TO BOOST ECONOMY |
Ta Chung Hua Rubber Factory of Shanghai will raise a 30 to 35 mln U.S. Dlr loan to expand and modernise its plant arranger CCIC Finance Ltd said. The loan to be lead managed by the Bank of China is expected to mature in eight to nine years but terms have not been finalized. The money will be used to import manufacturing equipment including technology transfer for the production of truck radial tyres. Part of the output will be exported. The expansion program is expected to cost a total 54 mln dlrs. The shortfall will be financed domestically. REUTER | SHANGHAI TYREb FACTORY TO RAISE 30 MLN U.S. DLRS |
Saudi riyal interest rates rose as Bahrain-based banks scrambled to cover short positions dealers said. Several Bahrain banks had been lending in the fixed periods and borrowing in the short dates but today they found the day-to-day money in short supply dealers said. Everybodys stuck in the spot-next one trader said. Spot-next rose to as high as 6-1/4 six pct from 5-1/4 five pct yesterday and the borrowing interest spilled over into the periods with one month rising to around 6-3/16 5-15/16 pct from 5-15/16 7/8 pct yesterday. Three months edged up to around 6-9/16 5/16 pct from 6-7/16 1/4 pct while six months was quoted a touch firmer by some banks at seven 6-3/4 pct. Commercial banks quoted the spot riyal at 3.7500/04 to the dollar after 3.7507/09 yesterday. REUTER | SAUDI RATES RISE AS BAHRAIN BANKS CAUGHT SHORT |
Belgium plans to issue Swiss franc warrants to buy gold with Credit Suisse as lead manager market sources said. No confirmation or further details were immediately available. REUTER | BELGIUM TO ISSUE GOLD WARRANTS, SOURCES SAY |
Tabuchi Electric Co is launching 30 mln Swiss francs of five-year straight notes with a 4-3/4 pct coupon and par issue price lead mananger Swiss Bank Corp said. Payment is due April 22. REUTER | TABUCHI ELECTRIC ISSUES 30 MLN SWISS FRANC NOTES |
The Philippine Long Distance Telephone Co <PLDT.MN> is planning a two-for-one stock split and a 20 pct stock dividend later this year to reduce excess market buoyancy Vice-President Sennen Lazo told Reuters. Lazo said the stock split would reduce the par value of the companys common stock from 10 to five pesos. He said the stock split would apply to holders of about 18 mln common shares of stock on the record date of September 15 1987. The exercise should make our stock more marketable Lazo said. Now it is beyond the reach of many small investors. PLDT common stock surged from a low of 37 pesos in February 1986 to 367.50 at close of trading yesterday on the Manila Stock Exchange. Lazo said the 20 pct stock dividend payable on October 15 would also apply to stockholders on record as of September 15. PLDT reported 1986 net income of 1.89 billion pesos up 68 pct from 778.9 mln pesos in 1985 on operating revenues of six billion pesos up from 4.7 billion pesos in 1985. At end December 1986 the company had 417100 stockholders. A PLDT spokesman said the companys profits are likely to be substantial since the government raised its franchise tax to three pct from two and to impose a 35 pct corporate income tax from which it was previously exempt. The government has not so far ordered the implementation of the tax decision. PLDT is the largest of 58 telephone companies in the Philippines. On December 31 1986 the company had 856014 telephones in operation representing 94 pct of all instruments in the country. In Manila item Philippine Telephone firm plans stock split please read in page 3 first para the companys profits are likely to be substantially cut (inserting dropped word). This replaces the companys profits are likely to be substantial | PHILIPPINE TELEPHONE FIRM PLANS STOCK SPLIT |
The coupon on the Bank of Tokyo Ltds 100 mln Swiss franc convertible has been cut to 7/8 pct from the indicated 1-1/4 pct lead manager Swiss Bank Corp said. The conversion price has been set at 1590 yen the same as todays close. The exchange rate has been set at 96.84 yen to the franc. Payment is due April 30. The conversion period is from May 20 1987 until September 20 1992. REUTER | COUPON CUT ON BANK OF TOKYO SWISS FRANC ISSUE |
London-based trader Cargill (U.K.) Ltd confirmed it sold one cargo of white sugar to India for shipment April 15/May 15 at yesterdays tender. Price details were not immediately available but some traders suggested business had been done around 220 dlrs a tonne cif. India tendered for one or two cargoes of white sugar. There was no specific requirement on shipping period. REUTER | CARGILL CONFIRMS WHITE SUGAR SALE TO INDIA |
Malaysia has asked Japan for a 42 billion yen 25-year loan to finance the construction of gas pipelines from eastern Trengganu to southern Johor the Overseas Economic Cooperation Fund (OECF) said. OECFs chief representative Takashi Matsuya told reporters the Japanese Government is appraising the loan. Another OECF official told Reuters Japan is likely to approve the loan because it is technically and economically viable. If approved the loan would carry a coupon rate of four pct a grace period of seven years Matsuya said. It would be disbursed over three years he added. The pipeline contruction is the second phase of the Peninsular Gas Utilisation Project by Petronas Malaysias national oil company. The first phase was the supply of gas to households in and around the eastern oil town of Kertih. REUTER | MALAYSIA SEEKS 42 BILLION YEN PIPELINE LOAN |
Credit Commercial de France <CCFP.PA> reported a parent company net profit up 34.8 pct to 140.1 mln francs from 103.9 mln francs a few weeks before its denationalisation around the end of this month. Official sources said the bank Frances sixth largest in terms of its deposits and seventh in terms of its assets planned a share split to increase the number of shares on offer ahead of the sale of 40 pct of its ordinary share capital to the public of 10 pct to staff and 20 pct abroad. Previously one of Frances biggest private banks it was nationalised by the Socialists in 1982. The sources said it was too early to give details of the planned split or of the share price but cited April 27 as a likely date for the flotation launch. So far 30 pct of the groups capital currently at 10.33 mln shares of 100 francs nominal has been offered for sale to large private investors to constitute a solid core of eight to ten shareholders before the flotation. The private tender offer closes on April 16 while a 12 mln franc advertising campaign for the flotation begins on Sunday. The privatisation will be a way of attracting extra clients CCF deputy director-general Rene de la Serre told Reuters. Market sources put the total value of CCFs privatisation at between four and five billion francs. De la Serre said the bank was likely to attract at least the same number of investors as <Sogenal> another recently privatised bank in which 850000 people bought shares. The governments sweeping privatisation programme has also included the sale of Saint-Gobain <SGEP.PA> and Cie Financiere de Paribas <PARI.PA>. The sale of <Banque du Batiment et des Travaux Publics> and <Banque Industrielle et Mobiliere Privee> should be completed this month while third largest French bank Societe Generale <SGEN.PA> will be privatised later this year. REUTER | CCF REPORTS 34.8 PCT PROFIT BOOST, SHARE SPLIT SEEN |
The European Investment Bank (EIB) is issuing a 40 billion yen eurobond due May 6 1994 paying 4-5/8 pct and priced at 101-1/2 lead Nomura 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 1-1/8 pct while management and underwriting combined pays 1/2 pct. The payment date is May 6. There is a mandatory purchase fund operating in years one and two except for the first month after the payment date whereby the EIB can purchase up to five pct of the issue each year if it is trading below par. REUTER | EIB ISSUES 40 BILLION YEN EUROBOND |
The International Development Association (IDA) is lending 18.6 mln dlrs to Sri Lanka for agricultural research and development the World Bank said in a statement. The loan is part of a 26.5 mln dlr project to improve production of commodities mainly rice and raise farmer incomes. Other financing for the project will come from Sri Lanka (7.1 mln dlrs) and West Germany (800000 dlrs). The IDA credit is interest-free and for 50 years. It includes a 10-year grace period but has annual charges of 0.5 pct on the undisbursed balance and 0.75 pct on the disbursed balance the Bank statement said. The project envisages the creation of a Council of Agricultural Research to formulate a national agricultural strategy and introduce a contract research programme to finance research activities the Bank said. The Washington-based IDA is the World Banks affiliate for concessionary lending. REUTER | IDA GIVES 18.6 MLN DLR LOAN TO SRI LANKA |
Johnson Matthey today issued the following Platinum group base prices (unfabricated) all U.S. Dlrs per troy ounce. Previous prices in parentheses. PLATINUM - 562 (567) PALLADIUM - 130 (130) IRIDIUM - 400 (400) RHODIUM 1230 (1230) RUTHENIUM - 80 (80) | JOHNSON MATTHEY'S PLATINUM GROUP PRICES |
Lex Service Plc <LEXL.L> said it had acquired <Sears Motor Group Ltd> the retail motor distribution arm of Sears Plc < SEHL.L> and an 11.9 mln stg loan note payable by Sears Motor for 33.4 mln stg. The purchase will be through 1.4 mln stg in cash and the issue to Sears Plc of 8.0 mln new Lex ordinary shares. The company said in a statement that immediately following the acquisition of the motor group its car and commercial vehicle contract hire fleet of some 3000 vehicles was sold to <Lex Vehicle Leasing Ltd> for 14.3 mln stg in cash a sum equal to the net book value of the vehicles transferred. Lex Vehicle is owned equally by Lex Services and <Lombard North Central Plc>. Lex said the shares involved in the transaction were today being placed for Sears Plc with institutions at 400p. These shares will not qualify for the final Lex dividend on 10 April. Lex said in a statement that its acquisition of Sears Motor Group represents a major development for its automotive activities. The enlarged retailing operations of the Lex Automotive group now have a turnover of 530 mln stg. Lexs existing automotive interests include Volvo Concessionaires the sole importer of Volvo cars and parts into the U.K. Lex said the turnover for Sears Motor Group in the year to 31 December 1986 was 242 mln stg and that at the date of the acquisition the group had about 50 mln stg in external borrowings. Lex shares fell on the announcement to trade around 409p from a 419p close yesterday. REUTER | LEX SERVICE BUYS SEARS MOTOR GROUP |
The Philippines will import 250000 bags of cement worth 375000 dlrs from Indonesia by the end of the month to meet growing demand from the construction sector Trade and Industry Secretary Jose Concepcion said. He told reporters that local cement manufacturers had stepped up production but were falling short of demand. The only solution is to import he added. Concepcion said average monthly requirements of cement in 1986 were 6.7 mln bags while supply hovered around 9.3 mln bags but this year demand had grown to 10.4 mln bags per month. Trade and Industry sources said construction sector representatives estimated an additional 70000 bags would be required daily to meet demand. Cement is officially priced at 48.50 pesos per bag but construction industry sources said it was selling at black market rates of up to 65 pesos a bag in some areas. The sources said falling interest rates as well as a government budget of four billion pesos in 1987 for low-cost housing had fuelled a construction boom. REUTER | PHILIPPINES TO IMPORT CEMENT FROM INDONESIA |
The Japan Development Bank is issuing a 150 mln dlr eurobond due May 20 1994 paying eight pct and priced at 101-1/8 pct lead manager Bank of Tokyo International Ltd said. The non-callable bond is guaranteed by Japan and is available in denominations of 5000 dlrs. The selling concession is 1-1/4 pct while management and underwriting combined pays 5/8 pct. The payment date is May 20. Listing will be in London. REUTER | JAPAN DEVELOPMENT BANK ISSUES 150 MLN DLR EUROBOND |
Officials from Indonesia Malaysia Singapore and perhaps Thailand will meet here tomorrow to discuss increased regional cooperation on rubber marketing and ways to raise rubber prices industry sources said. The officials will discuss linking rubber markets in the four countries to improve price transparency the sources said. This is the first time Indonesia is attending such a meeting they said but representatives from Thailand may not be able to attend because of their tight schedule. Malaysia Indonesia and Thailand account for 90 pct of world rubber exports and Singapore is a major regional rubber trading centre. The Malaysian Rubber Futures market freighting and contracts for rubber are among other issues expected to be discussed. Last month rubber importing and exporting countries adopted a new International Natural Rubber Agreement in Geneva. The new pact is more responsive to market trends than its predecessor the sources said and earlier provisions allowing the buffer stock to borrow from banks have been eliminated. REUTER | MAJOR RUBBER PRODUCERS TO MEET IN SINGAPORE |
MEPC Plc <MEPC.L> said that its offer for <Oldham Estates Ltd> would remain open until further notice. On February 26 MEPC made an agreed bid for Oldham based on a formula reflecting its asset value at 30 September 1986. A year earlier Oldhams net asset value was put at 531.4 mln stg. As of 1 April the valuation used under the formula had still to be agreed so Oldham had yet to give a firm recommendation to its shareholders regarding the value of the the offer. REUTER | MEPC EXTENDS OFFER FOR OLDHAM |
Toronto Dominion Bank Nassau Branch has increased its eurobond offering to 50 mln Australian <dlrs from 40 mln lead manager Hambros Bank Ltd said. All other terms remain the same. REUTER | TORONTO DOMINION AUSTRALIA DOLLAR BOND INCREASED |
Year to December 31 1986. Shr 18.35p vs 14.95p Div 3.75p vs 2.9p making 4.75p vs 3.75p Pretax profit 66.5 mln stg vs 46.9 mln Tax 14.6 mln stg vs 4.5 mln Net profit 51.9 mln stg vs 42.4 mln Turnover 1.44 billion stg vs 1.58 billion Note - Full name of company is George Wimpey Plc <WMPY.L>. Operating profit before exceptional items 88.9 mln stg vs 80.5 mln Exceptional debits 3.0 mln stg vs 11.6 mln Operating profit 85.9 mln stg vs 68.9 mln Share of profits less losses of associated companies 1.4 mln stg vs 2.4 mln loss Interest - net payable 20.8 mln stg vs 19.6 mln Attributable minority profits debits 0.2 mln stg vs 0.3 mln Extraordinary items debit 3.4 mln stg vs 4.3 mln credit Net borrowings 195.1 mln stg vs 193.5 mln REUTER | GEORGE WIMPEY PROFITS UP 42 PCT TO 66.5 MLN STG |
CANADA FEBRUARY TRADE SURPLUS 1.25 BILLION DLRS AFTER JANUARY 623 MLN DLRS SURPLUS |
|
Net profit 327.1 mln guilders vs 307.5. Total revenue 7.97 billion guilders vs 8.7 billion. Net profit per five guilder nominal share 9.33 guilder vs 9.25 (corrected for capital increase). Final dividend 1.30 guilders and 2.4 pct stock vs 1.30 guilders and 2.2 pct in stock. Interim dividend already paid was 1.30 guilders. Note : full name of company is AEGON NV <AEGN.AS> REUTER | AEGON 1986 NET PROFIT RISES 6.4 PCT |
Canada had a trade surplus of 1.25 billion dlrs in February compared with an upward revised 623 mln dlrs surplus in January Statistics Canada said. The January surplus originally was reported at 533 mln dlrs. The February surplus last year was 189 mln dlrs. February exports seasonally adjusted were 10.44 billion dlrs against 9.85 billion in January and 10.05 billion in February 1986. February imports were 9.19 billion dlrs against 9.23 billion in January and 9.86 billion in February 1986. Reuter | CANADA FEBRUARY TRADE SURPLUS 1.2 BILLION DLRS |
The Bank of Japan bought a modest amount of dollars at around 145.10 yen just after the market here opened dealers said. Just before the opening the dollar dropped swiftly as speculators concluded the Group of Seven (G-7) comminuique issued in Washington contained nothing basically new they said. It fell about a half yen to around 145. The G-7 reaffirmed that their currencies around current levels reflect economic fundamentals. One dealer said the Bank of Japan probably intervened in Australia before the opening here but could not confirm this. REUTER | BANK OF JAPAN BUYS DOLLARS IN TOKYO, DEALERS SAY |
Japanese Finance Minister Kiichi Miyazawa said the strengthening of the yen against the dollar that has occurred since the Paris Agreement was within the range agreed on in the Louvre discussions. I would say that what has happened (to the yen) in the past several weeks was not outside the range we agreed to in the discussions in Paris Miyazawa told a press conference following the Group of Seven meeting here. He added that the current discussions were a reaffirmation of that agreement indicating that the solidarity that occurred in Paris was still in place. reuter | MIYAZAWA SAYS YEN STILL INSIDE PARIS RANGE |
Brazils three most powerful state governors have joined forces to seek the removal of Finance Minister Dilson Funaro. The governors of Sao Paulo Rio de Janeiro and Minas Gerais told a news conference they want changes in the cabinet and in the shaping of economic policy with Funaro singled out for criticism by Sao Paulo governor Orestes Quercia. They made their call while Funaro is in Washington holding talks with creditors on rescheduling Brazils 111 billion dlr foreign debt. reuter^M | THREE BRAZILIAN GOVERNORS SEEK REMOVAL OF FUNARO |
Three people were killed and two others injured when a huge explosion believed to be a bomb went off in a suburb of Botswanas capital Gaborone. Witnesses told Reuters the blast near the headquarters of the Botswana Defence Force occurred at about 2 A.M. (1200 GMT) and flattened several houses. Minutes after the explosion Botswana soldiers sealed off the scene which is near where South African troops last May launched a military attack against alleged guerrilla targets. Reuter | THREE KILLED IN BOTSWANA BLAST |
The coupon on the 100 mln dlr 15-year convertible eurobond for the Bank of Tokyo Ltd has been cut to 1-3/4 pct from the two pct initially indicated lead manager Bank of Tokyo International Ltd said. The foreign exchange rate has been set at 146.40 yen to the dollar but details of the conversion price were not immediately available. REUTER | COUPON CUT ON BANK OF TOKYO DOLLAR CONVERTIBLE |
The Bank of England said it operated in the money market this morning buying 103 mln stg bank bills. The central bank bought in band one 60 mln stg at 9-7/8 in band two eight mln at 9-13/16 in band three 26 mln at 9-3/4 and in band four nine mln stg at 9-11/16 pct. This compares with the banks forecast of a 400 mln stg shortfall today. REUTER | U.K. MONEY MARKET GETS 103 MLN STG HELP |
Japan which has been accused of dumping everything from steel to computer microchips on world markets is now under attack for alleged cut-throat selling of a product of a different sort -- banking services. At meetings here this week Bank of England officials pressed their Japanese counterparts to change regulations that foreign bankers say give their Japanese rivals an unfair advantage in world financial markets. The technical banking talks coincided with but were separate from discussions between Japanese officials and British corporate affairs minister Michael Howard who left Tokyo yesterday for South Korea. At the crux of the talks was the way regulators in various countries measure bank capital and how much capital banks must put up to back up their loans. It is generally agreed that shareholders equity forms the bulwark of bank capital but there is disagreement about what else should be included. Some foreign bankers contend that their Japanese rivals can undercut them on loans and other banking services because Tokyos capital regulations are easier to meet. The Japanese banks have an unfair advantage Paul Hofer head of the Foreign Bankers Association of Japan told Reuters. Sumitomo Bank Ltd chief economist Masahiko Koido said They see us as very aggressive. We say we are just trying to catch up with them. Earlier this year the United States and Britain agreed to adopt common regulations requiring banks to put up capital equivalent to at least six pct of total assets. The two countries urged others to follow suit notably Japan. But Japanese Finance Ministry officials held out little hope that would happen soon as they just introduced new regulations governing capital ratios last May. Under those regulations banks have until 1990 to attain a capital ratio of four pct. But in tacit recognition of overseas pressure the ministry set a six pct target for Japanese banks with overseas branches. But foreign bankers say the rub was that it allowed Japans banks to count 70 pct of the value of their massive holdings of Japanese shares - their so-called hidden reserves - as capital. Without the shares big Japanese banks would only have capital ratios of around three pct. With them their ratios are well above six pct especially after the recent record-breaking climb of Tokyo share prices. Western diplomats argue that the shares are valued far too high by the ministry. Japanese banks would never be able to realize anywhere near that amount if they were forced to sell the shares to raise funds in an emergency they say. Finance Ministry officials defended their stance by saying that studies of the stock market over the last 30 years show that prices have rarely fallen below the 70 pct value level. But the U.S. Federal Reserve seems to think otherwise. Japanese officials say the Fed has effectively held up applications for bank licenses by Japanese financial institutions by asking them for a very detailed accounting of their hidden reserves. The officials say Japan recently raised the issue with the Fed through its embassy in Washington and is hoping for talks on the subject. REUTER | JAPAN CRITICISED FOR "DUMPING" OF BANK SERVICES |
The Netherlands largest insurer Nationale Nederlanden NV <NTTN.AS> (NatNed) said it expected at least unchanged results in 1987 after reporting 1986 net profits up 5.3 pct to 635.5 mln guilders from 603.4 mln in 1985 Revenues increased by 0.5 pct to 17.35 billion guilders after 17.27 billion the previous year and the dividend was raised to 2.50 guilders per share from 2.38 guilders in 1985 corrected on a capital increase. The company said guilder revenue and profit were pressured by falls in exchange rates particularly in the US and Australian dollar and sterling. Without these currency fluctuations net profit would have been 30.7 mln guilders higher and revenue 1.97 billion higher NatNed said. The international share in turnover was 50 pct in 1986 compared with 52 pct in 1985. The companys life insurance result fell to 365.7 mln guilders after 428.4 mln in 1985 due to currency influences tighter interest margins and increased investment. Claim payouts fell to 9.9 mln guilders after 66.6 mln the previous year. The companys total assets reached 69.87 billion guilders in 1986 against 67 billion the year before. Assets per share equalled 65.68 guilders against 65.53. Without these currency fluctuations net profit would have been 30.7 mln guilders higher and revenue 1.97 billion higher NatNed said. The international share in turnover was 50 pct in 1986 compared with 52 pct in 1985. The companys life insurance result fell to 365.7 mln guilders aft INTERRUPTED | NATNED FORECASTS 1987 RESULTS IN LINE WITH 1986 |
British Foreign Secretary Sir Geoffrey Howe and U.S. Secretary of State George Shultz plan to discuss the growing crisis in trade relations with Japan in talks in Washington government officials said. Howe views the apparent deadlock in British attempts to secure a greater share in Japanese domestic markets very seriously said an official travelling with him. Britain has threatened to impose retaliatory restrictions on Japanese finance houses in London if Japan does not open up its markets. The U.S. Has already imposed higher tariffs on computer microchips imported from Japan. Michael Howard the British minister for consumer and corporate affairs repeated the threat of sanctions before leaving Tokyo yesterday at the end of a four-day visit during which he failed to secure major concessions from the Japanese. Howes main mission in Washington was to brief Shultz on Prime Minister Margaret Thatchers visit to the Soviet Union last week. Shultz is due to fly to Moscow next week. REUTER | BRITAIN, U.S. TO DISCUSS JAPAN TRADE RELATIONS |
Shares of Continental Gummi-Werke AG <CONG.F> opened eight marks stronger in an otherwise mixed Frankfurt market and dealers attributed the trend to favourable press reports about a new tyre system the company is developing. The shares later eased to 344.50. A spokesman for the West German Automobile Association ADAC said the ADAC magazine in a recent edition described advantages of the new tyre. REUTER | CONTI SHARES OPEN HIGHER ON GOOD NEW TYRE REVIEWS |
 BANK OF FRANCE RETURN - APR 9 Week end Apr 2 (in mln francs) Gold reserves 218316 (unch) Convertible Currency Reserves 119518 (116728) Ecus 62008 (62020) Special Operations (advances to Exchanges stabilisation fund) nil (nil) Special Drawing Rights 6866 (unch) Notes In Circulation 209260 (207517) Foreign Liabilities 3101 (3082)  | |
European currency markets reacted quietly to the G-7 communique with comments from bankers and dealers ranging from disappointment that it was not more concrete to surprise that the markets should have expected so much. The dollar opened lower against virtually all currencies and traded in a narrow range after the communique which reaffirmed support for the Paris accord on currency stabilisation but contained no moves to strengthen it. Dealers in Frankfurt and Zurich saw the dollar remaining broadly entrenched in its current trading range. The dollar is likely to stay within a range of 1.80 to 1.84 marks said Gisela Steinhaeuser senior dealer at Chase Bank AG. She said there was some resistance to further climbs. However she said the dollar could break out of the range with major surprises such as a worse-than-expected U.S. Merchandise trade deficit due next Tuesday. Theodor Stadelmann dealer with Bank Julius Baer and Co Ltd in Zurich said he expects the dollar to hold steady against the mark and Swiss franc but to weaken further against the yen possibly to 140 yen. A Milan banker shared Stadelmanns view saying he expects a dollar-yen range of 140-150 in the short term. London traders said the G-7 communique failed to curb underlying bearishness toward the dollar but this negative sentiment was not yet strong enough to tempt interbank operators to test the downside. Concern that finance ministers and officials still in Washington could issue more concrete statements in favour of currency stabilisation kept players sidelined along with worries about provoking fresh central bank intervention in the near term the traders said. Most Paris dealers expressed disappointment at the communique saying nothing has changed to reverse the dollars downward trend. Traders in several centres said the market would look for fresh opportunities to test the willingness of central banks to defend current ranges which the communique said were broadly consistent with economic fundamentals and the basic policy intentions outlined at the Louvre meeting. Dave Jouhin senior dealer at Midland Bank in London said Theyre going to put somebodys resolve to the test soon. The U.S. February trade data may provide the trigger dealers said. However some dealers said London-based operators would be unlikely to open major positions next week ahead of the long Easter weekend. They saw near-term technical support at 1.825 marks and 145 yen and resistance about 1.83 marks and 146 yen. Chase Banks Steinhaeuser and other Frankfurt dealers said the G-7 communique guaranteed a relatively calm and stable market for the foreseeable future compared with the extreme volatility seen in the first few months of this year. One dealer at a German bank said the wording of the communique made clear the leading nations did not want a further dollar drop and this was supporting the dollar. The German dealer saw the dollar gradually appreciating to 1.87 marks broadly seen as its upper limit within the Louvre accords supposed currency target range. A Swiss bank economist said he believed the markets were ready for a period of mainly sideways movement. But Milan dealers were sceptical about the communique contributing to greater stability. Nothing has changed substantially to give the dollar a big boost said one dealer while another Italian banker said he expects the dollar to trade between 1.77 and 1.87 German marks in the next three months. A Swiss monetary source who asked not to be named said the communique had been in line with realistic expectations and should not have produced disappointment. The problem is that the changes needed in fiscal and trade policies to redress current imbalances are of a different timescale than currency markets operate on the source told Reuters This is a political process which takes time. Alois Schwietert chief economist at Swiss Bank Corp in Basle also questioned the tone of disappointment evident on currency markets today. Did people really expect a patent remedy? he asked. Bank economists in Paris noted yesterdays meeting was only the first in a series and said the market would watch carefully in the next few weeks for any changes in positions. A senior economist with Banque Indosuez said the focus was now on trade and growth rather than interest rates. Any move by Japan and West Germany to boost their economic growth could lead to a quick change in the U.S. Position. Dealers in all centres agreed that markets would be wary in pushing the dollar too far too quickly in the coming months while central banks appear resolved to use their muscle to support the Paris accord. REUTER | EUROPEAN MARKETS REACT QUIETLY TO G-7 COMMUNIQUE |
The Soviet Union displayed spying equipment it said had been placed by American agents in five different Soviet buildings in the United States. A Foreign Ministry spokesman told a news conference the equipment demonstrated the widespread illegal activities against Soviet people and missions in the United States by American special services. Diagrams and photographs displayed at the news conference showed devices allegedly found in the Soviet embassy in Washington the consulate in San Francisco and in other locations. REUTER | SOVIET UNION ACCUSES U.S. OF SPYING |
Remarks by central bankers raised some hopes the Bundesbank will cut rates on securities repurchase pacts but operators remained divided on the likelihood of a move in the near term money market dealers said. Comments by Bundesbank board member Claus Koehler yesterday that rate cuts were needed to curb money supply growth from speculative capital inflows and by West Berlin state central bank president Dieter Hiss that there was no natural lower limit to the discount rate had however no immediate impact. Call money declined to 3.65/75 pct from 3.75/85 pct but the drop was tied to extra liquidity in the market dealers said. Dealers said the Bundesbanks latest liquidity allotment this week dashed some hopes of lower rates. The Bundesbank allotted only 6.1 billion marks yesterday in new liquidity in a repurchase pact at an unchanged rate of 3.80 pct thus subtracting some 8.8 billion marks from the market as an outgoing 14.9 billion pact expired. But some dealers said the smaller volume awarded by the pact was in line with present liquid money market conditions and did not exlude a cut in the repurchase pact rate soon to 3.70 pct if money market rates continue at present levels. The next opportunity for the Bundesbank to lower rates on repurchase pacts will be in a tender expected next Tuesday. Bundesbank officials have already said they favour more discreet rate adjustments through repurchase pacts rather than the more public adjustment of leading rates. The Bundesbank may either set a fixed allocation rate and allow banks to tender for the volume as has been the case since it lowered its discount rate January 22 or else it may allow banks to tender for the rate and set the volume itself. Dealers expect volume of the tender to be lower than the 15.2 billion marks flowing out to offset other incoming funds. Some seven billion marks is expected to flow in next week. This should then flow back into the market as it is deposited with banks. Banks were well supplied with liquidity holding 61.5 billion marks in reserves at the Bundesbank on Tuesday. Holdings of average daily reserves over the first seven days of April stood at 59.6 billion marks still above the estimated 51 billion required for all of April. REUTER | GERMAN MONEY MARKET SPLIT ON LOWER RATE PROSPECTS |
Swedish drug firm AB Astra <ASTS.ST> shares rose 48 crowns to 690 in the first two hours of trading on the Stockholm Bourse amid hopes its research into anti-viral drugs may have promising results in the treatment of Acquired Immune Deficiency Syndrome (AIDS). Stockbrokers said the shares which climbed amid heavy institutional buying also rose in reaction to an optimistic assessment of future products in the firms annual report which was released this week. Brokers Enskilda Fondkommission said in a report this month that Astra was a world leader in anti-viral drugs. Although Enskilda said Astra had not made any breakthrough in developing a specific drug to treat the Acquired Immune Deficiency Syndrome it noted that investors were only now discovering that the firms approach in the area was promising. It is clear that Astra has a tradition in anti-viral research which should prove valuable in fighting this disease the report by Enskilda the investment banking unit of Skandinaviska Enskilda Banken <SEBS.ST> said. Company officials could not be reached for comment on the causes of todays share rise. REUTER | SWEDISH DRUG FIRM ASTRA RISE ON AIDS HOPES |
Thailand is to negotiate tomorrow with selected trade houses for renewal of long term raw sugar sales contracts to cover the next five years at a rate of 60000 tonnes annually traders said. They also reported vague talk Algeria may be seeking 50000 tonnes of raws tomorrow but details are unclear. REUTER | THAILAND TO RENEW LONG TERM SUGAR CONTRACTS -TRADE |
The European Community launched an investigation into allegations of dumping by Japanese semiconductor makers in a move which diplomats said could mark an intensification of world trade strains. Tokyo already faces a deadline of April 17 from Washington for the imposition of 300 mln dlrs worth of tariffs on chips it imports into the U.S. The EC Executive Commission said today the European Electrical Component Manufacturers Association complained that Japanese firms were selling high capacity EPROM type (erasable programmable read only memory) chips at unfairly low prices. Japan last year took 78 pct of the 170 mln dlr EC EPROM market up from 60 pct in 1984. The EC firms said they had been forced to offer their products at a discount of up to 30 pct in order to compete with the Japanese. The Commission said it believed the Association had given sufficient elements of proof for dumping to warrant an investigation which could lead it to impose duties if it found the complaints were justified. The Commission claims last years accord between the U.S. And Japan on microchip pricing gives U.S. Firms privileged access to the Japanese market. REUTER | EC LAUNCHES ANTI-DUMPING PROBE ON JAPANESE CHIPS |
The Swiss Federal Government will launch a new series of three month money market certificates totalling around 150 mln Swiss francs the National Bank said. Subscriptions close April 14 and payment date is April 16. The last series of three month paper issued in March raised 147.3 mln francs at an issue price of 99.142 pct giving an average annual yield of 3.501 pct. REUTER | SWISS TO LAUNCH NEW SERIES OF MONEY MARKET PAPER |
European currency markets reacted quietly to the G-7 communique with comments from bankers and dealers ranging from disappointment that it was not more concrete to surprise that the markets should have expected so much. The dollar opened lower against virtually all currencies and traded in a narrow range after the communique which reaffirmed support for the Paris accord on currency stabilisation but contained no moves to strengthen it. Frankfurt and Zurich dealers saw the dollar staying broadly entrenched in its current trading range. REUTER | EUROPEAN MARKETS REACT QUIETLY TO G-7 COMMUNIQUE |
Finance ministers from seven major industrialized nations agreed on the need to stabilize currencies at current levels but said more action was needed to reduce trade imbalances and sustain economic growth. In a communique issued after a four-hour meeting at the U.S. Treasury that ended last night the ministers said the value of the dollar and other currencies was basically correct now and they welcomed new measures planned by the Japanese to boost their economy. West German Finance Minister Gerhard Stoltenberg called it a good meeting and in brief remarks exchanged with reporters other ministers seemed pleased with its outcome. Shortly after the communique was issued and just as foreign exchange trading opened in Tokyo the Bank of Japan intervened again to prevent the yen rising too quickly. The communique said The ministers and governors reaffirmed the commitment to the cooperative approach agreed at the recent Paris meeting. They agreed however that further actions will be essential to resist rising protectionist pressures sustain global economic expansion and reduce trade imbalances. It welcomed the plans set this week by the Japans ruling Liberal Democratic Party to stimulate its economy with what the communique termed extraordinary and urgent measures including an unprecedented front-end loading of public works expenditures. The meeting of the so-called Group of Seven brought together ministers and central bank governors of the seven major industrial democracies the United States Japan West Germany France Britain Italy and Canada. The communique said the ministers reaffirmed the commitment on cooperation reached in a meeting on February 22 in Paris when they had agreed to stabilize foreign exchange rates at the then-current levels. In the weeks that followed the dollar continued to fall against the Japanese yen despite massive dollar purchases by the Bank of Japan and other central banks and is now trading at around postwar lows. Japan has come under growing criticism from both the United States and European countries for its only modest efforts to open its markets to outside competition and to reduce its exports. The communique said Japan affirmed its intention to open domestic markets to foreign goods and services but did not elaborate. It said the officials reaffirmed the view that around current levels their currencies are within ranges broadly consistent with economic fundamentals and the basic policy intentions outlined at the Louvre meeting. Reuter | FINANCE MINISTERS AGREE ON NEED FOR STABILITY |
Dutch insurer AEGON NV <AEGN.AS> reported a 6.4 pct increase in 1986 net profits to 327.1 mln guilders and said it expected a moderate increase in profits for 1987. Total revenue was eight pct lower in 1986 at 7.97 billion guilders vs 8.7 billion guilders in 1985. The company said its revenues were down due to lower foreign exchange rates and a change in accounting practice. It added that revenues would have risen by about seven pct had those changes not occurred. Revenue from Dutch operations rose five pct in 1986 mainly due to its life insurance business. Health insurance revenues in the Netherlands also rose despite a notable shift to insurances with lower premiums and higher personal risks. Damage insurances made losses mainly due to car damage insurances. AEGON did not specify the loss. In the United States revenue in guilders from health and life insurance was lower. AEGON said this was due to a change in accounting for U.S. Annuities. AEGON said annuities are subject to such strong personal investment influences that it should be accounted differently from the more traditional insurances. This change in accounting practice and another change to account for profits made on fixed interest investments resulted in an incidental rise in net profits of 31 mln guilders. AEGON said incidental negative influences on net profits were slightly higher being the lower dollar rate high initial costs for new products and the cost of new headquarters in The Hague. In 1986 a large number of new insurance products emerged in the Netherlands and the U.S. AEGON said. Large initial costs for these products have depressed net profits somewhat. Monumental Corp a U.S. Insurer which merged with AEGON in May 1986 saw its profits almost completely eroded by these costs and made only a small contribution to the groups profits. AEGON said it has written-off 657 mln guilders in goodwill for Monumental Corp. AEGONs net equity was 2.71 billion guilders in December 1986 against 3.46 billion the year before. REUTER | AEGON EXPECTS MODERATE RISE IN 1987 PROFITS |
Following is the text of a statement by the Group of Seven -- the U.S. Japan West Germany France Britain Italy and Canada -- issued after a Washington meeting yesterday. 1. The finance ministers and central bank governors of seven major industrial countries met today. They continued the process of multilateral surveillance of their economies pursuant to the arrangements for strengthened economic policy coordination agreed at the 1986 Tokyo summit of their heads of state or government. The managing director of the International Monetary Fund also participated in the meeting. 2. The ministers and governors reaffirmed the commitment to the cooperative approach agreed at the recent Paris meeting and noted the progress achieved in implementing the undertakings embodied in the Louvre Agreement. They agreed however that further actions will be essential to resist rising protectionist pressures sustain global economic expansion and reduce trade imbalances. In this connection they welcomed the proposals just announced by the governing Liberal Democratic Party in Japan for extraordinary and urgent measures to stimulate Japans economy through early implementation of a large supplementary budget exceeding those of previous years as well as unprecedented front-end loading of public works expenditures. The government of Japan reaffirmed its intention to further open up its domestic markets to foreign goods and services. 3. The ministers and governors reaffirmed the view that around current levels their currencies are within ranges broadly consistent with economic fundamentals and the basic policy intentions outlined at the Louvre meeting. In that connection they welcomed the strong implementation of the Louvre Agreement. They concluded that present and prospective progress in implementing the policy undertakings at the Louvre and in this statement provided a basis for continuing close cooperation to foster the stability of exchange rates. REUTER | G-7 ISSUES STATEMENT AFTER MEETING |
Japanese Finance Minister Kiichi Miyazawa said the Group of Seven (G-7) countries reaffirmed their Paris accord on stabilising currencies to convince the market of their resolve. At a news conference after todays G-7 meeting Miyazawa said the ministers and central bank governors did not believe a totally new statement was needed. The speculative selling did not reflect economic fundamentals and since the fundamentals had not changed only a reaffirmation of the goals of the Paris accord was needed he said. He also noted that this test of the G-7 nations resolve had concentrated on the yen while other currencies especially the mark had remained stable. Miyazawa said any change in economic conditions since the Paris accord was not worth being called fundamental. As I said at a time of Louvre (agreement) the expression of current level is rather vague idea he said. The yens movement in the past several weeks is within the range agreed in Paris in Febraury he said. It was better to give a vague expression than pin-pointing a level which could have an adverse impact on the market Miyazawa said. Asked why only Japan was committed to fresh measures in the statement he said Japan was exceptional among the seven because the yen appreciated against the dollar while other major currencies largely have been stable. He also said Japans ruling Liberal Democratic Party has justed adoped a package to reflate the economy while other nations are not supposed to produce new measures in a short period since the Paris agreement. Miyazawa also said the U.S. sanctions against Japanese semiconductor products was not discussed through the G-7 meeting and did not affect the currency talks. The seven nations discussed the debt problems of developing countries and ways to proceed in line with the debt initiative outlined by U.S. Treasury Secretary James Baker 18 months ago. REUTER | G-7 WANTS TO SHOW MARKETS ITS RESOLVE - MIYAZAWA |
The yen is likely to start another uneven rise against the dollar and other major currencies because the Group of Seven communique contained nothing new currency and bond analysts here said. Is that it? I was expecting something more than that said one trader at a major Wall Street securities company. Marc Cohen of Republic National Bank of New York said: The market now has the impetus to drive the dollar lower again. The dollar hovered between 145.50 and 147 yen in the days just before the talks. Dealers restrained their underlying bearishness and squared positions ahead of Wednesdays meeting of the finance ministers and central bankers of the top seven industrialized nations in Washington. After more than four hours of talks the G-7 issued a communique which merely reaffirmed the recent Paris agreements view that prevailing currency levels were broadly consistent with economic fundamentals and that exchange rate stability should be fostered around these levels. The dollar sank to 144.75 yen in early Tokyo trading. They said that the dollar/yen rate was broadly in line with fundamentals when it was 154. Now they are saying its in line when its at 146. Will this still be so at 138 or 130? asked Republics Cohen. Japanese Finance Minister Kiichi Miyazawa fuelled speculation about the amount of fluctuation the authorities are prepared to tolerate by saying that the current yen level is still inside the range agreed on in Paris in late February. Official statements in recent weeks had indicated that the key psychological level of 150 yen was at the lower end of the authorities permissible range. Dealers and analysts warned that the dollars decline would probably be uneven. They anticipated a concerted effort to prop up the dollar and restrain the yen via a mixture of open market intervention and public comments. Shortly after the Tokyo market opened today the Bank of Japan was detected by local dealers buying moderate amounts of dollars. The dollar rebounded to about 145.20 yen. The sources said the market may also be wary of agressively selling dollars for yen before Tuesdays February U.S. Trade data. The figures are expected to show a deficit of 13 billion dlrs from a provisional 14.8 billion in January. | YEN SEEN RISING AFTER G-7 COMMUNIQUE |
The leaders of two of Japans top business groups said in separate statements the Group of Seven (G-7) accord reached in Washington yesterday is of deep concern to Japan because it shows the major industrial nations regard the yens current level as appropriate. Eishiro Saito chairman of the Federation of Economic Organizations (Keidanren) said the yens present rate is well above adequate levels. He did not elaborate. Takashi Ishihara chairman of the Japan Committee for Economic Development said the accord will not prevent the yen from rising further. We do not understand why the G-7 approved present rates as the yen has risen excessively since the Paris accord Ishihara said. G-7 members Britain Canada France Italy Japan the U.S. And West Germany said in a statement they consider their currencies are now within ranges broadly consistent with economic fundamentals. Saito called on each G-7 member nation to prepare to intervene in the market strongly enough to ensure exchange rates are stabilised at appropriate levels. REUTER | JAPAN BUSINESS LEADERS SAY G-7 ACCORD IS WORRYING |
The statement issued today by the Group of Seven (G-7) industrialised nations has put Japan under greater international pressure to stimulate its economy or face a further rise in the yen private economists and analysts said. They said the communique reflected increased foreign frustration with Japans burgeoning trade surplus and its tight-fisted fiscal policies in the past. Unless Japan implements economic measures included in the statement foreign protectionist sentiment would grow and the yen would come under renewed upward pressure they said. The G-7 -- grouping the U.S. Japan West Germany Britain France Italy and Canada -- said in the statement they welcomed proposals announced by Japans ruling Liberal Democratic Party (LDP) for extraordinary and urgent measures to stimulate its economy and that Japan reaffirmed its intention to further open its domestic markets. Its rather unusual that only Japan was mentioned in the communique and promised something said Takeshi Saito general manager of Fuji Bank Ltds research division. This showed how strongly other nations want Japan to take concrete and effective steps to redress its trade surplus he said. The statement referred to some details of Japans proposed economic measures such as early implementation of a large supplementary budget exceeding those of previous years and unprecedented front-end loading of public works expenditures. It did not mention any figure for the projected supplementary budget but LDP officials have said it will amount to more than 5000 billion yen for fiscal 1987 which compares with 2000 billion provided for the previous year. It signalled a clear shift away from the conservative fiscal policies of the past said Kazuaki Harada senior managing director of Sanwa Research Institute. For the last five years the government has stuck to a tight-fisted fiscal policy in its attempt to stop issuing deficit financing bonds by 1990. But mounting foreign pressure for Japan to boost its economy hurt by the yens extended rise hurried the government to hammer out a draft economic package and bring it to the latest G-7 meeting. Harada said Japan should not view expansion of its economy as the result of pressure but as an opportunity to lead world economic growth. The Japanese economy has the potential to take a leadership role and we should recognize it Harada said. If Japan fails to meet such international expectations it will invite some retaliatory moves especially from the U.S. Which may result in a further rise of the yen analysts said. The G-7 communique represented a test for Japans commitment to domestically-generated economic growth and to a more balanced world trade structure they said. REUTER | G-7 COMMITMENT TESTS JAPAN'S WILL TO BOOST ECONOMY |
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.