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Grain analysts said the increase of three mln tonnes in 1986/87 Soviet grain imports is unlikely to affect the market Tuesday. They said the market already has discounted higher Soviet imports partly on news last month that the Soviet Union bought one mln tonnes of U.S. corn and on rumors that the Reagan administration is pushing for authority to sell the Soviets U.S. wheat under the Export Enhancement Program. In its supply-demand report the USDA raised its estimate for 1986/87 Soviet grain imports to 26 mln tonnes from 23 mln. That was business already done for all practical purposes said Drexel Burnham analyst Dale Gustafson reflecting similar statements made by other analysts. Reuter | MARKET DISCOUNTS HIGHER SOVIET GRAIN IMPORTS |
Investors Group Inc a unit of <Power Financial Corp> said filing a final prospectus for the previously announced new issue of one mln common shares of Investors Group and secondary offering by Power Financial of three mln Investors Group common received regulatory approval. The issue will be priced at 23.50 dlrs a share and 1650000 shares of the total issue will be offered outside Canada. The Canadian offering will be purchased by investment dealers <Dominion Securities Inc> and Gordon Capital Corp and the international offering will be acquired by Dominion Securities Gordon and S.G. Warburg Securities Investors said. Reuter | INVESTORS GROUP SHARE OFFERING APPROVED |
<Gull Air Inc> said it filed an anti-trust suit against Texas Air Corp charging the airline broke a marketing agreement and undertook predatory business practices aimed at shutting down Gull Air. Gull Air flying commerical routes in some 20 cities in the Northeast Florida and the Bahamas said it reached a feeder agreement with Texas Air Corp in March 1986. Under the five year marketing pact Gull said it coordinated its flights with Texas Air Continental Eastern and New York Air to facilitate connections and increase its business. But when Texas Air acquired People Express Inc and its units including Bar Harbor Air Line and Provincetown-Boston Airline the privately-held Gull became a competitor to the Texas Air units the company said. The company said Texas Air then broke the five year agreement previously reached with Gull causing it to lose millions of dollars. A company spokesman said Gull has not yet set a monetary value on the amount on the damages it is seeking in the suit. Reuter | GULL AIR FILES TEXAS AIR <TXN> ANTI-TRUST SUIT |
President Reagan signed an order allowing sales of U.S. nuclear fuel to the European Atomic Energy Community (EURATOM) to continue for a further year even though they do not comply with a 1978 U.S. law. Under the law which is designed to combat the spread of nuclear weapons foreign importers of U.S. nuclear fuel must get American consent to any reprocessing. The United States and EURATOM have had a series of 11 rounds of talks from 1978 to 1986 to renegotiate its nuclear cooperation agreements signed more than 20 years ago to conform with the 1978 law. Since 1978 the U.S.-EURATOM nuclear coooperation accords have been extended by a series of presidential waiver orders. State Department officials said negotiations had made more progress in the last two years after the United States had offered a longterm reprocessing consent arrangement rather than requiring EURATOM to have U.S. consent for each fuel delivery. In notifying Congress of todays order extending U.S.-EURATOM nuclear cooperation Reagan said: A disruption of nuclear cooperation would not only eliminate any chance of progress in our talks with EURATOM related to our agreements it would also cause serious problems in our relationships. He said further progress in talks with EURATOM was expected this year. Reuter | REAGAN EXTENDS U.S. COOPERATION WITH EURATOM |
Atco Ltd said its Atco Development unit agreed to sell the Canadian Utilities Center in Edmonton Alberta and the Canadian Western Center in Calgary. The sales together with the previously-announced sale of Atcos Australian operations will gross 114 mln dlrs and result in an after-tax gain of 31 mln dlrs which will be reflected in Atcos fiscal year results. Its fiscal year ends March 31 the company said. In addition the sales will produce 47 mln dlrs cash after debt reduction of 67 mln dlrs Atco said. Reuter | <ATCO LTD> SEES GAIN FROM SALE |
LINDNER TELLS SEC HE HAS HAD TALKS WITH TAFT ON SEEKING CONTROL OF COMPANY |
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The need to eliminate inefficiencies and redundancies was behind the decision to dismiss more than 200 employees at CBS News according to a memo from Laurence Tisch chief executive officer of CBS Inc. CBS made public the memo to employes in which Tisch sought to re-assure news employes that news divison will have the resources to serve the needs of the public in the future. Tisch said he accepted recommendations of the management of CBS News that 10 pct of the work force be trimmmed. It was not an assignment that anyone relished or that I enjoyed giving them he said. Reuter | CBS INC <CBS> CHIEF EXPLAINS NEWS STAFF CUTS |
A 3.6 billion dlr plan to rid the European Community (EC) of one mln tonnes of surplus butter is in doubt as Spain and Portugal refuse to drop their opposition to the scheme diplomats said. The plan proposed by the Communitys executive Commission aims to level most of the ECs huge and costly butter mountain by disposing of a total of 1.04 mln tonnes this year and next. But the officials said Spain and Portugal which joined the 12-nation bloc at the beginning of last year continued to oppose the scheme at a meeting of EC finance ministers here. They argued they should not have to pay for the disposal of surpluses created before they became EC members. The plan already approved by farm ministers despite opposition from Madrid and Lisbon had been sent to finance ministers for final approval. But the diplomats said the finance ministers instead referred it back to the Commission asking it to study possible ways to solve the row as soon as possible. They said Spain and Portugal indicated they may go to the European Court of Justice over the issue if the Commission did not come up with a satisfactory solution. The scheme has also run into criticism from the ECs financial watchdog the Court of Auditors. The Court has said the plan is unsound because the Commission wants member states to foot the bill until it starts reimbursing them in four annual instalments from 1989. Diplomats said Spain and Portugal backed the courts view and also complained that under complex financial agreements worked out when they joined the EC they would get less back later than if they were reimbursed now. Commission sources said it appeared the two countries were holding out in a bid to squeeze some form of compensation out of their partners but it was unclear how much longer they would continue to block the scheme. Reuter | FUTURE OF EC BUTTER DISPOSAL SCHEME IN DOUBT |
Bancroft Convertible Fund Inc said it filed a lawsuit in federal court in Newark N.J. seeking to block a hostile 30 dlr a share takeover offer by <Zico Investment Holdings Inc.> Bancroft said the suit also names Michael B. Javett principal officer of Zico and First Fidelity Bancorps <FFB> First Fidelity Bank unit the depositary for Zicos offer. Bancroft said the suit also names <Georgeson and Co Inc> Zicos information agent and <Luthie Intercontinentale Inc> a Panamanian corporation. Bancroft said its complaint alleges that Zicos tender offer materials include false and misleading information and that the offer violates the Investment Company Act of 1940. The company said its stockholders approved proposals that will insure that it remains independent. Reuter | BANCROFT <BCV> FILES SUIT AGAINST ZICO |
<Lavalin Bell Geomat> a company owned by Bell Canada Enterprises Inc and engineering company <Lavalin Inc> plans a bid to take over the federal governments map making service Lavalin said. The service has an annual budget of about 130 mln Canadian dlrs and includes the surveys and mapping and remote sensing branches of the Energy Mines and Resources department and the hydrographic services of the Fisheries and Oceans department Lavalin president Bernard Lamarre said. Lamarre said company officials have held preliminary talks with the government to discuss the possibility of taking over the service. Reuter | BELL CANADA (BCE), LAVALIN TO BID ON MAP SERVICE |
A confidential World Bank report on the Peruvian economy has said the governments strategy does not offer good prospects for medium and long-term growth and is likely to lead to an early renewal of inflationary pressure. The report published today by the economic monthly The Peru Report said the success of president Alan Garcias government in stimulating output last year to achieve a growth in gross domestic product of over eight pct represents gains in the short term at the expense of the long. Government officials had no immediate comment on the report which advised a reduction in the overall size of the public investment program and greater emphasis on the preservation of Perus export potential. The report said that although the government had succeeded in cutting inflation from 250 pct a year in the first half of 1985 to under 70 pct its stabilisation and reactivation program was encountering rising difficulties. An early renewal of inflationary pressures linked to monetary expansion exchange rate devaluation and an easing of price controls appears not improbable it added. The world bank report said the governments policies had reduced inflation and short-term increases in consumption at the apparent cost of price distortions overvaluation of the currency balance of payments disequilibrium reserve losses and sharply diminished creditworthiness. It said unless the government took action quickly to fix a competitive exchange rate and control the public sector deficit the higher the probability will be that the government will eventually have to resort to drastic curtailment of domestic demand and either sharp devaluation or still further controls on imports in order to stem inflation and support the balance of payments. It said the bank would place more emphasis on the preservation of perus export potential external links and overall economic efficiency. The governments incentive policies towards the mining and petroleum sectors among its main traditional exports suggested that it did not accord high priority to their economic viability it added. Reuter | WORLD BANK REPORT CRITICISES PERU ECONOMIC PLAN |
BSD Medical Corp said it received a patent from the U.S. Patent Office for its invasive/external electric field sensors. The company said the patent is its fourth in seven months. Reuter | BDS MEDICAL <BSDM> RECEIVES PATENT |
Financier Carl Lindner who holds a 16.2 pct stake in Taft Broadcasting Co told the Securities and Exchange Commission he has discussed with the company the possibility of seeking control of it. Lindner the Cincinnati Ohio investor who controls American Financial Corp said his talks with some of Tafts managers and directors have been aimed at achieving an increased ownership position in the company. Lindner said his increase in ownership would be made either by making an offer to acquire control of Taft or taking part in a group to acquire the company. Lindner who holds his Taft stake through American Financial and its subsidiaries said he is also considering buying more Taft stock on the open market or in private deals. He did not say whether the talks with Taft officials led to any agreements or understandings. But Lindner said he intends to review his investment in Taft and may be involved in further talks or take other steps regarding the future control and direction of Taft. Lindners investor group recently raised its Taft stake to 1489298 shares or 16.2 pct from 1439498 shares or 15.6 pct after buying 49800 shares for a total of 5.8 mln dlrs. Although he recently received clearance from the Federal Trade Commission to raise his stake in the company to 24.9 pct Lindner in previous SEC filings has always stressed that his interest in Taft was for investment only and not was not seeking to control the company. An investor group headed by members of the wealthy Bass family of Fort Worth Texas also holds about 24.9 pct of Tafts common stock. Reuter | LINDNER SAYS HE DISCUSSED CONTROL OF TAFT <TFB> |
New Zealands total foreign debt fell to 32.94 billion N.Z. Dlrs in the quarter end December 31 against 33.42 billion in the quarter end September 30 revised from 33.12 billion dlrs and 24.61 billion in the quarter end March 1985 the statistics department said. The department began releasing quarterly figures in June 1986. It said in a statement Government Corporation foreign debt in the December quarter fell to 5.86 billion against a 6.78 billion in the September quarter revised from 6.63 billion and 5.25 billion in March quarter 1985. Private sector foreign debt fell to 5.75 billion dlrs from 5.89 billion revised from 5.74 billion and 5.45 billion in March 1985. Government departments and Reserve Bank foreign debt rose to 21.32 billion against 20.75 billion and 13.92 billion. Contributing to the total fall of 0.48 billion dlrs were 2.11 billion in net realised and unrealised exchange gains a result of an appreciation of the New Zealand dollar against other currencies the department said. The U.S. Dollar remained the predominant borrowing currency for all three sectors in the economy at December 31. Reuter | N.Z. FOREIGN DEBT FALLS TO 32.94 BILLION DLRS |
An investor group that includes T. Boone Pickens III said it set a deadline of 1600 EST on March 11 for its offer to acquire Japan Fund Inc. The group which also includes <Sterling Grace Capital Management Inc LP> and <Anglo American Security Fund LP> said it was willing to deposit in escrow 100000 Japan Fund shares worth about two mln dlrs to insure its ability to obtain financing if Japan Fund approves its offer. The group said Japan Fund has not responded to its offer worth about 525 mln dlrs at current market prices. Reuter | INVESTORS SET DEADLINE FOR JAPAN FUND <JPN> |
A group of affiliated firms led by Warburg Pincus Capital Co L.P. a New York venture capital and investment partnership said it has acquired 1920527 shares of Symbion Inc or 25.5 pct of the total outstanding. In a filing with the Securities and Exchange Commission the Warburg Pincus group said it bought the stake for investment purposes. Although the group said it is considering buying more shares of Symbion it said it has no plans to seek control of the company. Reuter | INVESTOR FIRMS HAVE 25.5 PCT OF SYMBION <SYMB> |
Kindness N.V. a Bahamas-based firm owned by U.K. investor and Bahamas resident John Templeton said it has acquired 137900 shares of Hausereman Inc or 5.9 pct of the total outstanding common stock. In a filing with the Securities and Exchange Commission Templeton said he bought the shares for investment purposes only and has no intention of seeking control of the company. Reuter | OFFSHORE INVESTOR HAS 5.9 PCT OF HAUSERMAN<HASR> |
A group of affiliated investment firms led by Bermuda-based Fidelity International Ltd and Boston-based FMR Corp told the Securities and Exchange Commission it raised its stake in McGill Manufacturing Co Inc. The group said it raised its stake to 88580 shares or 6.2 pct of the total outstanding common stock after buying 14135 McGill common shares between Jan 19 and March 2 at prices ranging from 33.57 to 34.57 dlrs a share. Reuter | INVESTMENT FIRMS UP STAKE IN MCGILL MFTG <MGLL> |
U.S. INTERVENED TO BUY 50 MLN DLRS AGAINST YEN ON JANUARY 28, FED SAYS |
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CTS Corp said it increased its 1986 loss from continuing operations to 26.6 mln dlrs from the previously announced 23.8 mln dlrs loss. The 1986 figure was increased to include expenses involved with its settlement of a dispute with Dynamics Corp of America <DYA>. The settlement involved a takeover bid for CTS by Dynamics Corp which had offered to buy the shares of CTS that it did not already own. CTS made a profit of 7.9 mln dlrs from continuing operations in 1985. CTS said it charged an additional 2.8 mln dlrs in special expenses to its 1986 operations as a result of the Dynamics Corp settlement. The additional expenses include the obligation to reimburse Dynamics Corp subject to approval of CTS shareholders a total of 2.1 mln dlrs for Dynamics Corps expenses and other costs relating to CTS. Reuter | CTS <CTS> INCREASES 1986 LOSS |
U.S. authorities intervened in the foreign exchange market to support the dollar on one occasion during the period between the start of November 1986 and the end of January the Federal Reserve Bank of New York said in a report. The Feds quarterly review of foreign exchange operations said that the U.S. bought 50 mln dlrs through the sale of yen on January 28. This operation was coordinated with the Japanese monetary authorities and was funded equally by the Fed and the U.S. Treasury. The Feds intervention was on the morning after president Reagans State of the Union message and was in a manner consistent with the joint statement made by U.S. Treasury secretary James Baker and Japanese finance minister Kiichi Miyazawa after their January 21 consultations. At that meeting the two reaffirmed their willingness to cooperate on exchange rate issues. The Feds report did not say at what level the intervention occurred. But on January 28 the dollar closed at 151.50/60 yen after dipping as low as 150.40 yen earlier in the session. It had closed at 151.05/15 yen the previous day. The dollar had plumbed a post-World War II low of 149.98 yen on January 19 and reached a seven-year low of 1.7675 marks on January 28. It ended that day at 1.7820/30 marks. The Fed noted that after trading steadily throughout November and the first half of December the dollar moved sharply lower until the end of January. It closed the three-month review period down more than 11 pct against the mark and most other Continental currencies and seven pct lower against the yen and sterling. It had fallen four pct against the Canadian dollar. During the final days of January pressure on the dollar subsided. Reports of the U.S.-Japanese intervention operation and talk of an upcoming meeting of the major industrial countries encouraged expectations for broader cooperation on exchange rate and economic policy matters the Fed said. Moreover doubts had developed about the course of U.S. interest rates. The dollars swift fall had raised questions about whether the Fed would let short-term rates ease. Thus the dollar firmed to close the period at 1.8320 marks and 153.70 yen. According to the Feds trade-weighted index it had declined nine pct since the beginning of the period. The dollar had risen as high as 2.08 marks and 165 yen in early November. The Fed last intervened in the foreign exchange market on November 7 1985 when it bought a total of 102.2 mln dlrs worth of marks and yen. The Feds action followed the September 1985 Plaza agreement between the five major industrial nations under which they agreed to promote an orderly decline of the dollar. Reuter | U.S. INTERVENED TO AID DLR IN JANUARY, FED SAYS |
Louart Corp a Los Angeles investment firm said it raised its stake in Certron Corp to 237000 shares or 7.8 pct of the total outstanding common stock from 164000 shares or 5.4 pct. In a filing with the Securities and Exchange Commission Louart said it bought 73000 Certron shares between Sept 9 and March 6 at a total of 109315 dlrs a share. It said its dealings in Certron were for investment only but said it might increase its stake. It said it has no plans to seek control of the company. Reuter | INVESTMENT FIRM RAISES CERTRON <CRTN> STAKE |
Sono-Tek Corp said it reduced to 350000 from 400000 the number of shares it will sell in its initial public stock offering. The price of the offering remains unchanged at five dlrs per share it said. Reuter | SONO-TEK OFFERING CUT TO 350,000 SHARES |
Barnett Banks of Florida Inc proposed changing its name to Barnett Banks Inc the company said. The company said shareholders will vote on the proposal made in its 1987 proxy statement at the annual meeting on April 22. Reuter | BARNETT BANKS <BBF> PROPOSES NAME CHANGE |
Hogan Systems Inc said it acquired <Systems 4 Inc> of Durango Colo. for 1.7 mln dlrs. Hogan said Systems 4 provides integrated applications software and processing services to about 30 community banks. Systems 4 has revenues of 1.5 mln dlrs a year Hogan said. Reuter | HOGAN SYSTEMS <HOGN> IN ACQUISITION |
U.S. Trade Representative Clayton Yeutter declined to comment publicly on a rumor that Nebraska Gov. Kay Orr was considering appointing him to replace Democratic Sen. Edward Zorinsky who died last week. However Yeutter told senior staff this morning that he was not interested in replacing Zorinsky and wanted to continue serving as President Reagans chief trade negotiator an aide told Reuters. Orr reportedly is considering naming a Republican to replace Zorinsky. Nebraska Republican Reps. Doug Bereuter and Hal Daub were said to be among those being considered by Orr. Reuter | YEUTTER DECLINES COMMENT ON SENATE RUMOR |
AirCal said its February load factor averaged 53.4 pct down slightly from 54.2 pct a year earlier. The company said available seat miles at 357.1 mln were up 40.5 pct from a year ago while revenue passenger miles at 190.8 mln were up 38.5 pct. Year to date revenue passenger miles were 383.3 mln at the end of February up 33.4 pct from a year earlier while available seat miles at 750.5 mln were up 39.5 pct. The load factor for the first two months of the year was 51.1 pct down from 53.4 pct a year earlier. Reuter | AIRCAL <ACF> FEBRUARY LOAD FACTOR DOWN SLIGHTLY |
Texas Air Corps Continental Airlines unit said it will begin service to Mexico from Atlanta in May. Continental said it will add non-stop flights to Mexico City Puerto Vallarta Cancun Acapulco and Ixtapa. Reuter | TEXAS AIR <TEX> UNIT TO ADD MEXICO FLIGHTS |
The Soviet Union will likely honor its commitment with the United States to buy a minimum of four mln tonnes of corn this year an Agriculture Department official said. They have always honoured the agreement and theres no reason now to think they wont this year he told Reuters. They have an aggressive buying campaign from the European Community from Canada from the U.S. Theyre active buyers from all sources at this point the official said in explaining why the Department raised its Soviet grain imports estimate today by three mln tonnes to 26 mln tonnes. This is a dramatic shift from just a few months ago when analysts were saying the USSR might not buy any U.S. corn for the first time in 15 years. A drawdown of corn supplies in China and Argentina concern over Soviet winter crops and increasing competition for U.S. corn were all cited as possible factors in creating Moscows recent interest. Lower corn production prospects in some major supplying countries have stirred activity from big buyers such as Japan and the Soviets are also closely watching the situation the official said. The Soviets will try to out-capitalize the capitalists and buy corn before prices get too high the official said. As soon as they need corn theyll buy it he added. USDA has confirmed one mln tonnes of corn sold to the Soviet Union but both U.S. and Soviet analysts have said the purchases stand at 1.5 mln tonnes. The USDA official would not speculate on when the Soviets would enter the U.S. market again. There has definitely been an evolving mind set -- from the situation of slow grain buying a couple months ago to one of frenetic buying now the official said. However the situation in wheat is a different story he said. Greater world supplies of wheat heavier Soviet purchase commitments and less competitive U.S. wheat prices make Soviet purchases of U.S. wheat less likely he said. Speculation has continued for several days that the U.S. is considering making an export bonus wheat subsidy offer to the Soviets but U.S. officials have provided no confirmation. Reuter | USSR SEEN LIKELY TO HONOR CORN COMMITMENT |
T. Boone Pickens the Texas oilman and financier said he believes the heady days the oil service industry had in the early 1980s when over 4500 oil rigs were once reported operating will not return in his lifetime. Pickens told Reuters he expects the rig count to drop to below 600 before recovering. He added that oil prices will eventually rise to 35 dlrs then to 50 dlrs after 1990. Currently some 700 oil rigs are operating in the U.S. down sharply after oil prices slipped from 30 dlrs in late 1985 to around 10 dlrs in 1986. Prices are now around 18 dlrs. The highest number of working rigs was 4500 in December 1981. The rigs wont go back to work until the price of oil gets above 30 dlrs he said adding that while he expects to see 50 dlr a barrel oil he does not expect to see 2000 rigs operating in his lifetime. Pickens is 58. Pickens who is currently touring the country promoting his autobiography Boone said he does not believe the U.S. should impose an oil import fee in order to stimulate the domestic oil industry. Reuter | PICKENS SEES CONTINUED SLUMP IN WORKING RIGS |
The following proposed securities offerings were filed recently with the Securities and Exchange Commission: Angio-Medical Corp - Initial public offering of 1666667 units each consisting of one share of common stock and one redeemable warrant to buy one share of common stock through Kean Securities Co Inc. ABM Gold Corp - Initial public offering of six mln shares of Class A common stock at an estimated seven to nine dlrs each through PaineWebber Inc and Advest Inc. COMFED Mortgage Co Inc - Initial public offering of 2.7 mln shares of common stock at an estimated nine to 13 dlrs a share through PaineWebber Inc and Bear Stearns and Co Inc. MTech Corp <MTCH> - Offering of 75 mln dlrs of convertible subordinated debentures due March 15 2012 through a group led by Alex. Brown and Sons Inc. Reuter | PROPOSED OFFERINGS RECENTLY FILED WITH THE SEC |
The Arbitration Commission awarded the Australian workforce a flat 10 dlrs a week wage increase and allowed trade unions to begin bargaining for a second-tier increase of up to four pct Commission President Justice Barry Maddern said here. The decision is effective from the next pay period of individual employers he said in delivering the Commissions National Wage Case decision. Full-time adult ordinary time weekly earnings are 453.00 dlrs a week for males and 428.40 dlrs for all adults according to latest official statistics. The wage decision is the first under the previously announced two-tier system which replaced the concept of wage indexation. It is the first national wage rise since a partially-indexed increase of 2.3 pct was awarded by the Commission last July. The decision is a compromise between the Federal governments call at the Wage Case hearing for a 10 dlr weekly rise plus a three pct second-tier ceiling and the Australian Council of Trade Unions (ACTU) claim of 20 dlrs and up to four pct. Employer groups had sought no rise at all. The Commission is willing to convene another Wage Case in October to establish if another wage increase of up to 1.5 pct should be awarded Maddern said. He said the success of the new system depended on the commitment of all parties - employers unions and governments. He said the Commission had rejected employers calls for a freeze on overall labour cost increases. We do not think that such an outcome is feasible given the needs and expectations of wage and salary earners he said adding a freeze could have destroyed the possibility of a cooperative effort to lift Australias economic performance. The decision would ensure the effects of the depreciation of the Australian dollar and the adverse terms of trade would not be reflected in wage increases Maddern said. If necessary it would arbitrate second-tier claims at an implementation rate of no more than two pct from September this year and a further two pct from July 1988 he said. He said labour cost rises would be phased in over the life of the package adding that second-tier rises will be mainly achieved by a restructuring and efficiency principle covering elimination of restrictive work practices improved efficiency and productivity and reduction of demarcation disputes. Maddern said the Commission again ruled out claims for a cut in weekly working hours below 38 and allowed employers to be exempted from wage case decisions on the basis of severe or extreme economic adversity. The Commission said the poor economic outlook noted in its last decision had persisted and was perhaps now more serious. The prevailing uncertainty and lack of confidence in the economy which underlines the economic circumstances must be allayed to halt further decline and to turn the economy around. In this connection what happens to labour costs is of critical importance he said. REUTER | AUSTRALIAN WAGE RISE SET AT 10 DLRS A WEEK |
Finance Minister Kiichi Miyazawa said the Paris currency accord has contributed to the stability of exchange rates. Miyazawa told a press conference the agreement reached last month in Paris by six major industrial nations to cooperate in bringing about currency stability has prevented speculative concerns from being active in money centres. The decision in Paris is being understood by the market he said. The yen-dollar exchange rate has been moving in a narrow range since finance ministers of Britain Canada France Japan the U.S. And West Germany reached the accord. REUTER | MIYAZAWA SAYS PARIS ACCORD HELPING STABILISE RATES |
New Zealands total foreign debt will continue to decline as major energy projects are refinanced Finance Minister Roger Douglas said. Statistics Department figures show total debt fell to 32.94 billion N.Z. Dlrs in the December quarter from 33.42 billion in September although the governments share rose to 21.32 billion from 20.75 billion. Douglas said in a statement this was due to the boosting of reserves to refinance so-called Think Big projects. These reserves do not add to New Zealands total indebtedness.... They are money in the bank he said. As negotiations to refinance each Think Big project are completed existing loans will be replaced with debt currently held in reserves for this purpose Douglas added. This in turn will result in a drop in quasi-government and private debt he said. He said refinancing of projects allowed the government to borrow on more favourable terms and to manage Think Big debts more effectively. Both of these will reduce the cost of Think Big to the taxpayer over time he said. The refinancing also paves the way to deregulation of the oil industry. REUTER | NEW ZEALAND FOREIGN DEBT EXPECTED TO KEEP FALLING |
The Reserve Bank said at 1230 local time it was offering to buy short-dated government securities in the short-term money market. The banks action followed its purchase of short-dated government stock and six-day repurchase agreements earlier in the session. Money market traders said the move was aimed at easing cash market interest rates which had risen on demand for funds to meet PAYE tax and treasury note settlement commitments. REUTER | AUSTRALIAN RESERVE BANK IN BUYING INTERVENTION |
Business groups criticised the Arbitration Commissions national wage case decision announced earlier but the Australian Council of Trade Unions (ACTU) gave it qualified approval. As earlier reported the commission awarded a 10 dlr a week flat rise plus the opportunity for unions to bargain immediately for extra payments of up to four pct based on the new two-tier system which replaced wage indexation. The decision is economically irresponsible and industrially naive said Bryan Noakes director-general of the Confederation of Australian Industrys industrial council. | AUSTRALIAN BUSINESS CRITICISES NATIONAL WAGE RISE |
Police arrested two Polish citizens for trying to steal Japanese computer technology local media reports said today. The reports said the two had worked at a computer-related company in Tokyo and visited Japanese computer makers several times after coming to Japan on tourist visas last October. One report said they were computer specialists at a Polish technology institute and that the company they worked for was managed by a naturalised Japanese from Poland who was a graduate of the institute. Police officials declined to comment on the reports. REUTER | POLES SAID HELD IN JAPAN ON COMPUTER THEFT CHARGES |
The leaf disease corenes pora which has affected some rubber trees in Sri Lanka and Indonesia is likely to force a cut in supply and push up depressed prices a Malaysian rubber disease researcher said. Trees with leaves hit by the fungus disease cannot be saved and must be felled Chee Kheng Hoy Head of the Crop Protection and Microbiology Division in the Rubber Research Institute of Malaysia (RRIM) told Reuters. He was commenting on a Reuter report which said corenes pora had hit seven pct of Sri Lankas plantations and may cause output to drop below its 1987 target of 143000 tonnes. The report said the Sri Lankan Rubber Research Institute may ask estates to remove trees seriously affected by the disease and added that most estates affected belong to the State Plantations Corp and Janatha Estates Development Board. Chee said corenes pora is an old disease which only affects certain rubber clones in Sri Lanka and Indonesia and that further use of such clones must be discontinued. Clones not resistant to the disease are the Rubber Research Institute of Sri Lanka clone 103 Indonesias PPN 2058 2444 2447 and PR 265 and Malaysias RRIM 725 he said. Chee said corenes pora affected trees from the RRIM 725 clone planted in Malaysia several years ago but had been curbed after use of such clones were discontinued. Fungicide may be used to curb the disease which also affects leaves of 30 other species of plants but experience has proven that it is uneconomical and expensive he added. The disease is extremely difficult to control. If it is not curbed in the two affected countries their rubber output may drop and prices can rise he said. He added that the RRIM was aware of the disease outbreak in Sri Lanka and was monitoring the situation. REUTER | RUBBER LEAF DISEASE SEEN AFFECTING SUPPLY/PRICES |
Japans Finance Ministry auctioned 1000 billion yen worth of tankoku six month debt-financing paper to roll over previously issued tankoku maturing on March 19 a spokesman said. The last tankoku auction on February 12 produced a record low yield of 3.383 pct reflecting expectation of a half point cut in Japans discount rate he said. In the previous auction for 1000 billion yen four major Japanese securities houses took 92 pct of the issue amount in an attempt to meet strong demand from large institutional investors securities managers said. Securities managers said they expect the auction to go well again this time as securities houses will try to expand their inventories of tankoku on continuing good response from institutional investors. Contrary to a projected low yield on tankoku short-term interest rates have been resisting a fall on growing demand for funds ahead of the March 31 financial year-end they said. The Bank of Japan has been trying to dampen money market rates to make the latest discount rate cut effective but so far in vain dealers said. The auction results will be announced tomorrow. REUTER | JAPAN AUCTIONS 1,000 BILLION YEN SHORT-TERM PAPER |
The search continued for a cargo of poisonous chemical substances loaded on the Herald of Free Enterprise Ferry which capsized in Zeebrugge harbour Friday. A total of 72 drums of various toxic materials which were loaded on trucks in the ships hold have been recovered but Belgian authorities warned it was essential to recover a further 61 containers of a cyanide-based solution. A net has been thrown over the gaping loading doors at the front of the ship to prevent any more drums floating out. Salvage workers have moved cranes into place alongside the wreck of the 7951 ton roll-on roll-off ferry which now lies partly submerged on a sandbank outside the harbour. The ferrys owner is <European Ferries Plc> majority owned by Peninsular and Oriental Steam Navigation Co Plc <PORL.L>. The operation to right the vessel began yesterday after divers abandoned their search for more bodies. Experts said it could take months to refloat the ship and free the 80 bodies estimated to be trapped amid debris. The problem is that in these waters you can normally expect one working day out of four said Daan Kaakebeen of Dutch Salvage experts Smit Tak International of Rotterdam. He estimated the job itself would require 35 working days. Using reinforced cables salvage experts intend to raise the ship and set it down into a trench dug alongside. Salvage work could pinpoint the exact cause of the loss of the ferry one of three sister vessels plying cross-Channel routes from England to continental Europe. Suspicion at present is focused on the ferrys main vehicle loading doors set close to water level. In London Transport Secretary John Moore told parliament yesterday that the ship keeled over after water gushed in through the bow doors. He said a major government inquiry into the disaster will be held all similar ferries sailing from Britain will be inspected and owners will be asked to fit lights to give warning if bow doors are not properly closed. Experts carrying out tank and computer tests to determine how the accident occurred will focus attention on the ships doors its ballast system and crew procedures he added. Two other investigations into the disaster have also begun one Belgian and one by the ferrys owners. REUTER | SEARCH FOR BRITISH FERRY'S TOXIC CARGO CONTINUES |
There is little chance Soviet exports to the United States will rise in 1987 but Moscows current trade reforms should result in more trade in manufactured goods in future a Soviet economist said. Sergey Frolov chief economist at Amtorg Trading Corp an agent for Soviet trade organisations and industries told a U.S.-USSR business meeting the Soviet Union produces few items that western nations want. But reforms including upgrading the quality of goods and allowing joint ventures with foreign firms will encourage modest export gains in future. Frolov said the Soviet Union exported 500 mln dlrs worth of goods to the United States in 1986 and imported 1.5 billion dlrs worth. He gave no trade forecast for 1987. But he said that even if all obstacles were removed total trade between the two countries would remain between two and three billion dlrs a year. The post-detente embargoes have taught the USSR to limit its trading with the U.S. he said. REUTER | SOVIET ECONOMIST SEES FEW 1987 GAINS IN U.S. TRADE |
People throughout China can now open foreign exchange accounts at the Bank of China the official Shenzhen Economic Zone Daily said. Previously only residents of Guangdong and Fujian provinces could do this. The paper also said the minimum for opening a fixed deposit account had been cut to 50 yuan equivalent from 150 yuan. The minimum for a current account is 20 yuan equivalent. The paper said depositors could now withdraw all or part of their account subject to a branchs reserves instead of only a fixed amount as previously. The paper said deposits may now be opened in French francs as well as the already available U.S. Dollar Hong Kong dollar sterling yen and marks. Bank of China branches in Hainan island also accept deposits in Singapore dollars and those in Wenzhou Zhejiang province accept deposits in Dutch guilders the paper said. It gave no further details. REUTER | CHINA ALLOWS NATIONWIDE FOREIGN EXCHANGE SAVING |
The Singapore High Court has adjourned summary judgement for the second time on a <National Bank of Brunei Bhd> case for loan repayments from Khoo Teck Puat and 15 associated companies court sources said. The case will be heard again on May 4 when a summary judgement will decide if the civil case should proceed. Khoo owned most of the banks equity before it was closed in November by the Brunei government after some of its officials were charged with mismanagement. The bank now controlled by Brunei is seeking repayment of about 900 mln Singapore dlrs in loans guaranteed by Khoo. REUTER | SINGAPORE COURT ADJOURNS BRUNEI BANK JUDGEMENT |
Fujitsu Ltd <ITSU.T> may assemble computers in Oregon for sale in the United States under the Fujitsu brand name a company spokesman said. He said the rising value of the yen against the dollar has virtually erased the wage differential between the two countries and Fujitsu would like to make the medium-size multi-functional business computers in the United States. The Oregon plant owned by Fujitsu subsidiary <Fujitsu America Inc> now makes magnetic computer discs and will soon make printers. Fujitsu Ltd also has a licensing agreement to make Amdahl Corp <AMH> computers for sale in the U.S. REUTER | FUJITSU MAY ASSEMBLE ITS OWN COMPUTERS IN U.S. |
The Sichuan government has ordered that any work or meeting which interferes with the fight against drought must be cancelled or postponed to save time energy and manpower the Peoples Daily domestic edition said. Sichuan is one of six provinces threatened by drought. Wen Wei Po a Hong Kong daily said the drought the worst for more than 20 years is affecting nearly two mln hectares in 100 counties in Sichuan the countrys biggest agricultural producer. Sichuan has experienced temperatures three degrees Centigrade higher than normal and rainfall up to 70 pct less than normal since early February affecting wheat oil-bearing crops rice planting and dryland cash crops it said. The paper said 43000 hectares in Meixian county in Guangdong are seriously short of water. The Peoples Daily said Henan Shaanxi Gansu and Hebei are also suffering from drought. Henans grain output fell by 2.5 mln tonnes last year from the 1985 level because of drought which has been affecting the province since May. REUTER | SICHUAN BRACED TO FIGHT DROUGHT |
Japanese microchip makers are being strong-armed into compliance with a U.S.-Japan pact on semiconductors halting predatory pricing and opening Japans market to foreign chips industry analysts said. But doubts remain over whether the Ministry of International Trade and Industry (MITI) which is pressuring the firms can successfully battle market forces and whether the U.S. Industry is geared up to take advantage of any breathing space they said. U.S. Threats to scrap the agreement signed last September have pushed MITI to try harder to get recalcitrant Japanese chipmakers to abide by the pact the analysts said. MITI has been moving hot and heavy throughout the industry to get things done said Bache Securities (Japan) associate vice president Peter Wolffe. Last month MITI told chipmakers to cut production for the January to March period by 10 pct to help dry up inexpensive chips that have escaped from Japan to grey markets not subject to the pacts price controls. The ministry also asked electronics firms to provide distributors with certificates designating them as authorised exporters in an effort to close loopholes through which grey marketeers sneak chips out of Japan market analysts said. U.S. Trade negotiators here last week said the pact was in jeopardy because of continued dumping in non-American markets and little sign of increased foreign sales in Japan. But major Japanese firms appear to have agreed to the production cuts several analysts said. Last week NEC Corp said it would cut production in line with MITIs request. NEC has been the most aggressive in resisting MITIs demands said David Keller analyst at James Capel and Co. Once NEC cuts production it means they all have. Still pressures remain to keep production high. Japanese firms need high output to cut unit prices for U.S. Sales that the Commerce Department assigns them under the pact. The best way to lower cost is to produce more said Salomon Brothers Asia Ltd analyst Carole Ryavec. Preparations for a possible upturn in demand could also spur higher production next quarter Merrill Lynch analyst Matt Aizawa said. Grey marketeers may also be able to outfox any new restrictions some industry officials said. Its like tax avoidance schemes said Steve Donovan head of MMI Japan K.K. As soon as you close one route another opens. MITIs pressure has annoyed some makers who had earlier shrugged off MITI guidance. Its getting to be like communism said one. But analysts said output cuts could help by making it easier to increase prices as planned on April 1 and forcing firms to stop extending market share by selling at a loss. Theyre going to have to start running their businesses like businesses Baches Wolffe said. MITI has also been conducting a highly public campaign urging chip users to buy foreign-made chips but U.S. Industry officials said response has been mixed at best. There has been some change but its not across the board said one U.S. Spokesman. The companies have a varying degree of urgency. The ultimate impact of all these efforts by MITI on the troubled U.S. Industry remains in doubt analysts added. Pressure to cut production of 256 kilobit DRAM (dynamic random access memory) chips could merely speed the transition to one megabit chips where Japan now leads analysts said. Whether U.S. Firms are able to stage a comeback in memory chips or interested in doing so also remains unclear they said. Analysts are watching with interest the fate of a new U.S. Consortium which hopes to challenge Japan by developing the most advanced technology for microchip manufacturing. Even in the thorny area of access much depends on U.S. Commitment as well as on Japanese openness some said. The SIA (U.S. Semiconductor Industry Association) doesnt even have an office here a source close to the industry said. You could question just how committed they are. In addition some industry analysts question the effectiveness of a bilateral agreement that leaves out third country chipmakers such as those in South Korea. (South) Koreas gaining market share said one analyst. Theyre the real winners from the agreement. REUTER | ECONOMIC SPOTLIGHT - JAPAN PUSHES ITS CHIPMAKERS |
The Finance Ministry said its auction yesterday of 1000 billion yen of tankoku six-month debt financing paper produced a record low average yield of 3.246 pct on aggressive bidding from securities houses. The tankoku mature on September 21 1987. The previous record low was 3.383 pct at the last auction on February 12. One of four major Japanese securities house bought 39.5 pct of the total 1021.1 billion yen in bids accepted ministry sources said. Securities houses bid aggressively as big retail accounts such as tokkin special money trust and trust funds have been showing strong interest in tankoku on increasing demand for short-term fund management securities house managers said. The yield for tankoku issued on a discount basis is one point below the 4.26/12 pct interest rates for six-month certificates of deposit today. In the previous auction for 1000 billion yen the four majors took 92 pct of the issue to increase their tankoku inventory the managers said. Bids totalled 1975.8 billion yen. The average price was 98.36 to give a yield of 3.246 pct and lowest was 98.33 giving 3.314 pct the Ministry said. REUTER | JAPAN TANKOKU YIELDS HIT RECORD LOW AT AUCTION |
Sumita says little room for Bank of Japan to further ease credit policy |
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Bank of Japan governor Satoshi Sumita said there is little room left for the central bank to further ease its credit policy as interest rates levels are now approaching their lower limit. The government should instead seek ways of making the best use of its fiscal policy he told a press conference. His remarks were concerned with a comprehensive economic stimulative package the government plans to adopt in the coming days. At the recent talks among the six major industrialised nations in Paris Japan promised to work out a comprehensive economic package to boost domestic demand which in turn would help increase its imports and reduce its trade surplus. Sumita also said the economy will show a gradual upturn in the second half of the year if the yen remains stable. He said there is caution in the foreign exchange market against a further rise of the yen and mark and this explains the recent stability in the currency markets. Conflicting economic indicators from the U.S. Have also been dampening market activity he added. REUTER | SUMITA SAYS LITTLE ROOM FOR BANK TO EASE POLICY |
An Iranian military commander said Iraqi troops suffered 3000 casualties in a week-old offensive by Irans forces in the mountains of northeast Iraq. The Iranian news agency IRNA quoted the commander in the Kurdish border village of Haj Omran as saying nine Iraqi counter-attacks had been repulsed with heavy casualties. He said Iraq lost at least 3000 men killed or wounded and another 289 captured IRNA monitored by the British Broadcasting Corp said. Irans offensive into Iraqi Kurdistan is coupled with support for anti-Iraqi Kurdish rebel operations in the region. REUTER | IRAN CLAIMS 3,000 IRAQI CASUALTIES IN FIGHTING |
Prime Minister Bob Hawke is more popular than ever despite Australias economic problems according to opinion poll results released today. His popularity rating went up to 64 pct compared to 19 pct for opposition leader John Howard according to Morgan Gallup Poll results published by The Bulletin magazine. The poll of more than 1000 voters throughout Australia also showed support for Hawkes Labour Party running at 47 pct against 44 pct for the Liberal-National opposition. Labour support was unchanged from last month but the opposition fell one pct. REUTER | HAWKE POPULARITY RISES DESPITE ECONOMIC PROBLEMS |
Iranian Oil Minister Gholamreza Aqazadeh is in the United Arab Emirates (UAE) to discuss oil prices and the general market situation Iranian officials accompanying him said. He will meet UAE President Sheikh Zaid bin Sultan al-Nahayan and Oil Minister Mana Said al-Oteiba. Aqazadeh arrived last night after a brief stopover in Riyadh where he met Saudi Arabias Oil Minister Hisham Nazir. The official Saudi Press Agency quoted him as saying his talks at Riyadh with Nazir had been constructive and good. Aqazadeh said Organisation of Petroleum Exporting Countries (OPEC) members were agreed on holding production stable and he reiterated the importance of maintaining oil prices. OPEC members agreed in December to limit production to 15.8 mln barrels per day for the first half of this year and on a benchmark price of 18 dlrs a barrel from February 1. Aqazadeh also visted OPEC members Gabon Algeria and Libya. The Iranian news agency IRNA quoted him as saying before leaving Tripoli that OPEC should do everything possible to make oil prices permanently stable. REUTER | IRANIAN OIL MINISTER IN UAE TALKS |
Japanese crushers are likely to buy at least 200000 tonnes of Brazilian soybeans this year and another 100000 to 200000 if quality and shipping conditions are good against 128089 tonnes in 1986 trade sources said. A Japanese trading house recently bought about 31000 tonnes of soybeans for April 10/May 10 shipment they said. Because Brazilian soybean prices are now some 10 cents a bushel cheaper than U.S. Origin due to the bumper harvest it is highly likely that Japanese crushers will increase their buying volume one source said. Brazilian beans are available to Japan for shipment from May to July. REUTER | JAPAN MAY INCREASE ITS BRAZILIAN SOYBEAN PURCHASES |
<Metal Traders Australasia Ltd> said a newly-formed subsidiary the <Austmet Ltd> group has negotiated an exclusive long-term contract with Spains <Asturiana de Zinc> to market its zinc metal exports. Metal Traders said in a statement the contract would underpin the worldwide zinc copper and lead trading activities of Austmet a wholly-owned London-based company with a U.S. Unit in Stamford Connecticut. Austmet has recruited a group of base metal traders currently operating out of Britain and the U.S. Who have handled Asturianas business for the past five years it said. Asturiana has a three-year option to purchase 25 pct of the Austmet group to be priced on an independent valuation at the time of exercise Metal Traders said. Austmet will have an initial equity base of one mln stg a turnover of 200 mln Australian dlrs rising to 300 mln in the first year and credit lines of up to 30 mln U.S. Dlrs. Austmet should be generating profits from July 1 and a 1.5-2.5 mln dlr net is envisaged within two years it said. Metal Traders said Asturiana has the largest zinc smelting capacity in Europe -- nearly 200000 tonnes a year of 99.995 pct high-grade zinc at Aviles in northern Spain. Metal Traders a listed company was formerly <Pyrotech Resources N.L.> whose chief activity was the development and marketing of high-technology smelting processes invented in Australia notably the Siromelt Zinc Fuming Process. But in late 1986 control of the company changed and it expanded by acquisition into metal trading in Australia and Asia. It then changed its name. It also has the marketing contract for mineral sands produced by <TiO2 Corp N.L.> of which it holds 17.5 pct. In todays statement Metal Traders also said it is reviewing possible acquisition of a mineral producer. REUTER | AUSTRALIAN METAL TRADER LINKS TO ASTURIANA DE ZINC |
King Fahd said today Saudi Arabia wants oil price stability and he called on non-OPEC producers to avoid harmful competition with the 13 nation group. His plea in an interview with Reuters and the television news agency Visnews came ahead of a state visit he will make to Britain later this month. King Fahd was asked whether Saudi Arabia would be prepared to reduce its oil output below its OPEC quota of 4.133 mln barrels per day (bpd) to defend the 18 dlr benchmark price agreed to by OPEC last December. The King replied: Saudi Arabia doesnt decide prices by itself but certainly desires price stability. Non-OPEC countries must help us in a framework of common interest so that there is no type of competition which could prove harmful to everyone he said. Asked if he saw the 18 dlr per barrel benchmark as a first step towards higher world oil prices King Fahd said it was not for Saudi Arabia but for all OPEC countries to determine such issues. Iran and Algeria have already called for a higher benchmark. In recent weeks the 18 dlr level has come under pressure due partly to quota violations by some OPEC members. King Fahd said Saudi Arabia the worlds largest oil exporter was adhering to decisions made at OPECs December conference which set a 15.8 mln bpd output ceiling for the first half of 1987. A major non-OPEC producer Britain has so far resisted the groups pleas to curb its North Sea oil output. The King also urged the world community to help the Palestinians return to their homeland and called for a peaceful end to the Iran-Iraq war. The 6-1/2-year-old war could not be resolved on the battlefield he said. REUTER | SAUDI ARABIA'S KING FAHD WANTS STABLE OIL PRICES |
Shr 16.3p vs 12.2p Div 2.75p vs 2.25p making 3.8p vs 3.15p adjusted for Three-for-one capitalisation Pre-tax profit 54.9 mln stg vs 33.4 mln Turnover 1.70 billion vs 1.13 billion Tax 7.6 mln vs 2.6 mlnProfit attributable 51.9 mln vs 30.1 Mln Cost of Sales 1.49 billion vs 999.3 mln Gross profit 215.9 mln vs 136.2 mln Distribution costs 90.3 mln vs 57.2 mln Adminstrative expenses 65.9 mln vs 40.8 mln Other operating income 3.9 mln vs nil Interest payable 8.7 mln vs 4.8 mln Minority interests 1.0 mln vs 0.7 mln Extraordinary credit (sale of share in S and W Berisford Plc) 5.6 mln vs nil Operating profit includes - Poultry eggs and animal feed 21.7 mln vs 17.2 mln Food processing and distribution 15.4 mln vs 6.9 mln Furniture and timber distribution 8.4 mln vs 3.4 mln Fresh meat and bacon 8.0 mln vs 4.5 mln REUTER | HILLSDOWN HOLDINGS PLC <HLDN.L> 1986 YEAR |
<Nissan Motor Manufacturing (UK) Ltd> has reached agreement with <Lombard North Central Plc> of the U.K. To build plants and boost the local content in Nissans U.K. Produced cars to 60 pct in 1988 from 40 to 50 pct the Nissan Motor Co Ltd <NSAN.T> said. The agreement will allow the cars to be designated as domestically manufactured rather than imported vehicles Nissan said. The agreement was reached through negotiations with the British government and the European Community (EC) after they threatened to impose duties on imports. According to the 230 mln stg contract Lombard North Central an affiliate of National Westminster Bank Plc <NWBL.L> will build and lease plants for engine assembly body panel pressing and resin moulding by 1988. They will be near the existing Nissan plant in Sunderland in north-east England Nissan said. The Sunderland plant currently produces 24000 Bluebird cars annually for the British market. Nissan hopes to begin U.K. Exports to Europe in 1991 after building an engine machining plant which would boost output to 100000 units a year and local content to above 80 pct in accordance with EC requests the spokesman said. REUTER | NISSAN TO BOOST LOCAL CONTENT IN U.K. CARS |
Japanese crushers starting to buy U.S. Soybeans for April shipment have recently made purchases of some 48000 tonnes trade sources said. The sources said they could not estimate the total volume to be purchased for April shipping because Japans crushing program for April and June is unclear. They had predicted earlier that crushers April shipment U.S. Bean purchases would drop to 260000 to 270000 from the monthly average of 300000 to 330000 tonnes due to low soybean meal prices. REUTER | JAPAN CRUSHERS START APRIL U.S. SOYBEAN BUYING |
West German retail group Kaufhof AG <KFHG.F> is considering taking a stake in shipping and transport group Hapag-Lloyd AG <HPLG.F> but has yet to reach a final decision a spokesman said in response to queries. Press reports said Kaufhof wanted a stake of up to 12.5 pct in Hapag-Lloyd. The Kaufhof spokesman noted any decision on purchasing shares in the shipping group would have to be approved by the supervisory board which is due to hold a meeting tomorrow. Late last year the Gevaert group of Belgium and West Germanys VEBA AG <VEBG.F> said they had each acquired a 12.5 pct stake in Hapag-Lloyd from Deutsche Bank AG <DBKG.F> and Dresdner Bank AG <DRSD.F>. Industry sources estimate Deutsche and Dresdner Hapag-Lloyds majority shareholders held about 75 pct of Hapag-Lloyds share capital before selling portions of it to Gevaert and VEBA. The two banks have said they eventually wanted to reduce their stake in the shipping group to 15 pct each. REUTER | KAUFHOF CONSIDERING TAKING STAKE IN HAPAG-LLOYD |
Japans Agency of Natural Resources and Energy said it will begin experiments with Thailand at the end of March to start commercial production of rare metals in 1989 under a joint project. An agency official said it will set up a 500 mln yen pilot plant in Bangkok which will extract high quality rare metals such as titanium and niobium from sand left over from tin production processes in Thailand. The plant wilq use about a tonne of sand per day although it is unclear how much rare metal will be extracted the official said. REUTER | JAPAN AND THAILAND TO JOINTLY EXTRACT RARE METALS |
Hungary is to devalue the forint by an average of eight pct against Western currencies the official news agency MTI said. MTI did not say when the devaluation would become effective but it expected new rates to be announced later today. Hungary devalued the forint by a similar amount last September 23. Western bankers say the forint is more realistically valued than currencies of Hungarys COMECON allies. REUTER | HUNGARY TO DEVALUE FORINT AGAINST WESTERN UNITS |
Domestic group turnover 4.48 billion marks vs 4.29 billion. Turnover comprised - Coal a rounded 1.14 billion vs 1.22 billion Metal 851.0 mln vs 1.14 billion Transport 435.3 mln vs 534.4 mln Oil and chemicals 479.7 mln vs 831.7 mln Plant construction 625.7 mln vs 568.8 mln Miscellaneous 3.3 mln vs 2.2 mln Turnover from majority stake in C. Deilmann AG consolidated for first time 951.8 mln marks vs nil Domestic group fixed asset investment 392.6 mln marks vs 291.2 mln. Investment total includes 76.3 mln marks in investment at C. Deilmann AG. REUTER | PREUSSAG AG <PRSG.F> YEAR 1986 |
Hillsdown Holdings Plc <HLDN.L> said early results for 1987 were encouraging and the combination of its investment and acquisition strategies enabled it to look forward confidently for an excellent result for the year. The company was commenting on 1986 results which showed pre-tax profit rising to 54.9 mln stg from 33.4 mln previously on turnover that lifted to 1.70 billion from 1.13 billion. The figures initially boosted the share price to 286p from 281p last night but they then eased back to 283p by 0830 GMT. Hillsdown said capital expenditure rose in 1986 to 60 mln stg from 31.5 mln and would continue at this high level in 1987. The placing of 82.5 mln shares last year raised 160.7 mln stg and enabled shareholders funds to more than double to 352 mln at year-end. Net borrowings were 20 pct of shareholders funds and the group had listed investments of 47.1 mln. The company said it had bought a total of 40 companies during the year for a total price of some 180 mln stg. Although these had made minor contribution to profits the real benefits would come in 1988 and beyond. REUTER | HILLSDOWN SAYS EARLY 1987 RESULTS ENCOURAGING |
Iraq said today its forces had crushed an Iranian attack on a strategic mountain peak in a rugged and snow-clad area of Iraqi Kurdistan. The official Iraqi news agency INA said the attack was repelled yesterday by the Fifth Army Corps 96th Brigade on Karda Ku peak overlooking the northern post of Haj Omran and 340 kms north of Baghdad. INA said hundreds of Iranians were killed and large quantities of armour and weapons were left behind. It did not give Iraqi casualties. The Iranian news agency IRNA said yesterday that Iraqi troops had suffered 3000 casualties in Irans week-old offensive in northeast Iraq. Iran attacked across snow-capped peaks of northeastern Iraq last week in an area which saw heavy fighting in mid-1983. The thrust followed fierce battles near Basra Iraqs second city on the southern front of the 6-1/2-year-old conflict after an Iranian cross-border offensive launched on January 9. The political department head at Iraqs Defence Ministry Abdul Jabbar Muhsen said on Monday fighting was continuing in the north but that Iran had exaggerated battle reports. He said Tehran had done this to make up for failure in the south and to encourage anti-Baghdad Kurdish rebels to support its troops. Tehran has supported anti-Baghdad Kurdish guerrillas in operations against government positions and installations in northern Iraq. REUTER | IRAQ SAYS IT CRUSHED IRANIAN ATTACK IN NORTH |
U.K. One billion stg tranche of 8-3/4 pct Treasury bonds due 1997 exhausted - dealers |
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Nippon Oil Co Ltd <NPOL.T> predicted parent company net profit of about nine billion yen in the year ending March 31 down 10.4 pct from a year earlier president Yasuoki Takeuchi told a press conference. Current profit for the year was estimated at 17 to 18 billion yen down 20 to 24 pct from a year earlier he said. Takeuchi said sales are expected to fall 40 pct to 1700 billion yen for the fifth consecutive year-on-year drop. This years fall was due to lower selling prices for end-users which more than offset the yens appreciation. The company will retain six yen dividend for 1986/87. REUTER | NIPPON OIL SEES SHARPLY LOWER SALES AND PROFITS |
The joint committee of Taiwans soybean importers will tender March 12 for a 27000 tonne cargo of U.S. Soybeans for March 20 to April 5 delivery a committee spokesman told Reuters. Taiwans soybean imports in calendar 1987 are provisionally set at 1.81 mln tonnes compared with a revised 1.74 mln tonnes imported last year. The 1.74 mln tonne figure was revised from 1.76 mln tonnes. Taiwan imports all its soybeans from the United States. REUTER | TAIWAN TO TENDER FOR 27,000 TONNES U.S. SOYBEANS |
Shr 5.95p vs 4.41p Div 2.25p vs 2.0p Pre-tax profit 11.6 mln vs 9.1 mln Tax 4.2 mln vs 3.6 mln Turnover 256.3 mln vs 185.3 mln Note - company said it was unlikely second-half profits will show same rate of increase as first. But it had great confidence in prospects for future growth. REUTER | BEJAM GROUP PLC <BJAM.L> 27 WEEKS TO JANUARY 3 |
Nippon Steel Corp <NSTC.T> and <Inland Steel Co> of the U.S. Are negotiating to set up a joint steel venture in Indiana a Nippon Steel spokesman said declining to give more details. Several local newspapers reported the joint venture would be capitalised at 150 mln dlrs owned 60 pct by Inland and 40 pct by Nippon Steel and have annual production capacity of one mln tonnes of steel to supply car makers. REUTER | NIPPON STEEL, INLAND DISCUSSING U.S. JOINT VENTURE |
A one billion stg tranche of 8-3/4 pct Treasury Loan stock due 1997 was exhausted in very early trading on the U.K. Government bond market only minutes after becoming available for trading dealers said. The Bank of England said the issue announced on Monday and available for official dealings from this morning was no longer operating as a tap. The striking price was a partly paid 41 stg pct at which price bids were allotted 53.8 pct. Dealers noted that strong demand had been detected for the bonds yesterday afternoon and interest was further stimulated by sterlings surge at the opening this morning. The issue was announced on Monday when it was widely seen as a move by the authorities to brake market optimism for a further U.K. Interest rate reduction following the half-point cut in clearing bank base lending rates to 10.5 pct earlier in the day. Dealers said that the Banks strategy succeeded in stemming pressure for a further rate reduction only briefly as the market yesterday recovered all the ground it lost on Monday immediately after the announcement. Demand for the issue was lively from U.K. And overseas sources with particular interest seen from Japan. The bonds were issued at a price of 96-16/32 stg pct partly paid as to 40 stg pct on application although the Government broker this morning sold them at a premium of one stg pct over the partly paid issue price. The issue has been designated the B tranche of the bonds since 1.3 billion stg of 8-3/4 pct Treasury Loan stock due 1997 is already in issue. Dealers noted that the Bank of England last week issued one billion stg of nine pct Exchequer bonds due 2002 in an effort to dampen enthusiasm for an interest rate reduction caused by sterlings uptrend on foreign exchange markets. Last weeks issue was sold out on its first day of dealings but with nothing resembling the determined demand seen this morning for the new tranche of bonds dealers said. After stifling pressure for a rate cut last week the authorities finally sanctioned a base rate reduction on Monday following it up with the announcement of the one billion stg bond issue. Sterling was briefly depressed by the rate cut but this morning opened very strongly again starting on a trade-weighted basis at 72.6 against yesterdays final 72.1 and later edging up to 72.7. U.K. Money market rates declined again this morning by up to 1/8 point strongly reinforcing yesterdays speculation that clearing bank base lending rates could drop into single figures after the budget next Tuesday money market dealers said. U.K. Government bond dealers noted that under the influence of stronger sterling and the further fall in money market rates prices this morning had opened as much as 3/4 point higher at the longer end of the market. REUTER | U.K. ONE BILLION STG BOND TRANCHE EXHAUSTED |
Sumitomo Corporation is launching 200 mln Swiss francs of convertible notes due September 30 1992 with a coupon indication of 5/8 pct lead manager Swiss Bank Corp said. The issue carries a put option after three years at 103 pct. Terms will be fixed on March 19 and payment date is March 30. REUTER | SUMITOMO LAUNCHES 200 MLN SWISS FRANC CONVERTIBLE |
The yens rise against the dollar is expected to boost Japans unemployment rate to an average 3.3 pct in the 1987/88 fiscal year beginning April 1 from Januarys record three pct the private Nomura Research Institute said. The official 1987/88 estimate is 2.9 pct. The research arm of Nomura Securities Co forecast unemployment would exceed two mln by mid-fiscal 1987 against an estimated 1.75 mln for the current year. Nomura urged the government to take pump-priming measures to help redress trade imbalances and boost employment. Employment in manufacturing during fiscal 1987/88 was predicted to fall 550000 from the current year due to higher job losses in the steel shipbuilding and heavy electrical machinery sectors Nomura said. Employment in the non-manufacturing sector will continue to increase the institute said without giving figures. REUTER | JAPAN'S JOBLESS SEEN RISING TO 3.3 PCT IN 1987/88 |
Cargo handling remains halted at Bangladeshs Chittagong port since nearly 7000 workers walked out on Monday following a pay dispute the Port Workers Association said today. Fourteen ships are stranded at the port. Port officials said they would meet Association leaders today to try to resolve the dispute. REUTER | WORK AT CHITTAGONG PORT HALTED BY STRIKE |
Cons banking gp net profit 496.7 mln schillings vs 354.5 mln Cons banking gp balance sheet total at year-end 453.4 Billion schillings vs 425.4 billion Parent bank net profit 370.6 mln vs 253.0 mln Parent bank balance sheet total 372.5 billion vs 348.2 Billion Parent bank dividend 12 pct vs 10 pct Parent bank div payout 363.0 mln schillings vs 247.5 mln REUTER | CREDITANSTALT-BANKVEREIN <CABV.V> YEAR 1986 |
Norsk Hydro A/S <NHY.O> is issuing 50 mln stg bonds due April 15 1993 carrying a 9-7/8 pct coupon and priced at 101-5/8 said Hambros Bank Ltd as lead manager. Norsk Hydro is 51 pct owned by the Kingdom of Norway. The bonds which are available in denominations of 1000 and 10000 stg will be listed on the London Stock Exchange. Payment date is April 15. Fees consist of a 1-1/4 pct selling concession and 5/8 pct combined management and underwriting. REUITER | NORSK HYDRO ISSUES 50 MLN STG BONDS |
Ultramar 1986 net loss 62.1 mln stg vs 71.6 mln profit |
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Tesco Plc <TSCO.L> said that <County Ltd> had yesterday bought on its behalf 2.06 mln shares or around 4.2 pct in <Hillards Plc> for between 302p and 310p a share. Tesco yesterday launched a 151.4 mln stg bid for the north of England supermarket chain which Hillards promptly rejected. Hillards shares were last quoted at 324p compared with last nights close of 313p. REUTER | TESCO ASSOCIATE BUYS 4.2 PCT OF HILLARDS |
The Tokyo Metropolitan Government said it would float a 100 mln dlr 10-year bond with a 7.5 pct coupon in New York its first Yankee bond issue in 21 years. The bond will be priced at 99.515 to yield 7.585 pct. The issue will be immediately swapped into Swiss francs putting actual interest rates at around four pct a Tokyo government spokeswoman said. The lead manager is First Boston Corp and the co-leaders are Goldman Sachs and Co and Merrill Lynch Capital Markets she said. The funds will be used for sewerage and reclamation work. REUTER | TOKYO TO ISSUE 100 MLN DLR BOND IN NEW YORK |
<Daewoo Industrial Co Ltd> of South Korea will sign a 45 mln U.S. Dlr loan tomorrow through its Hong Kong unit lead manager Banque Nationale de Paris said. The three-year loan which will carry interest at 1/2 percentage point over London interbank offered rate will be borrowed under the name of <Daewoo Industrial Co (H.K.) Ltd>. The loan will be used mainly to finance repayment of the the companys other borrowings. The other lead managers are Arab Banking Corp Bank of Tokyo Ltd and KEB (Asia) Finance Ltd. There are 24 managers and five participants. REUTER | DAEWOO UNIT RAISES 45 MLN DLR LOAN |
Shr 8.1p loss vs 26.3p earnings Div 3.25p making 5.25p vs 10.5p Net loss 62.1 mln stg vs 71.6 mln profit Operating profit before tax 73.6 mln vs 273.8 mln Turnover 1.47 billion vs 1.74 billion Cost of sales 1.22 billion vs 1.39 billion Gross profit 241.8 mln vs 357.6 mln Distribution costs and administrative expenses 152.2 mln vs 123.1 mln Share of profits in associates 17.1 mln vs 68.2 mln Other operating income 15.8 mln vs 16.9 mln Financing charges 48.9 mln vs 45.8 mln Tax 63.9 mln vs 169.7 mln Exceptional items 4.9 mln debit vs 5.5 mln debit Net results of discontinued operations 15.6 mln debit vs 20.9 mln debit Loss on ordinary activities before minority interest 10.8 Mln vs 77.7 mln profit Minority interest 11.3 mln vs 6.1 mln Extraordinary debits 40.0 mln vs nil REUTER | ULTRAMAR PLC <UMAR.L> 1986 YEAR |
GKN 1986 pretax profit 132.4 mln stg vs 132.7 mln |
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The Bank of England said it forecast a liquidity shortage of around 300 mln stg in the market today. Among the main factors the Bank said bills maturing in official hands and the treasury bill take-up would drain 483 mln stg from the system while below target bankers balances and a rise in the note circulation would take out 50 mln and 100 mln stg respectively. Partially offsetting these exchequer transactions would add around 355 mln stg the Bank added. REUTER | U.K. MONEY MARKET SHORTAGE FORECAST AT 300 MLN STG |
The Belgian National Bank bought foreign currencies against francs on the open market in the week ended March 9 a Bank spokesman said. In line with central bank policy he declined to give any details of the amount bought. The foreign currency purchased was used by the Treasury to repay foreign debt and did not affect the Banks foreign exchange reserves. They slipped 394 mln francs to 37.33 billion mostly due to sales of dollars for Special Drawing Rights the spokesman said. REUTER | BELGIAN CENTRAL BANK BUYS CURRENCY TO REPAY DEBT |
Japanese car makers will curb their exports to the European Community (EC) following an unofficial directive from the Ministry of International Trade and Industry (MITI) automobile industry sources said. Some sources said exports to the EC this year are likely to be at most unchanged from last years 1.10 mln units and may even fall due to an anticipated slackening of EC economic growth and increasing trade friction. Last week MITI vice minister for international affairs Makoto Kuroda said the ministry had asked car makers to exercise prudence in exporting to Europe. Japanese car makers boosted exports to the EC in January to build up depleted vehicle inventories industry sources said. Japans vehicle exports to Europe in January rose 38 pct from a year earlier to 174133 units. In December exports fell 70.4 pct year-on-year as makers curbed shipments to meet an earlier directive from MITI to limit 1986 exports they said. REUTER | JAPAN }O CURB VEHICLE EXPORTS TO EC |
Lending by the World Bank and its soft loan arm the International Development Agency (IDA) to China is expected to almost double to about two billion dlrs by 1989/90 from the levels of 1984 to 1986 foreign bankers told Reuters. They said approved lending in 1986/87 (July-June) is expected to total 1.4 billion dlrs of which 550 mln will come from the IDA and 850 mln from the World Bank. World Bank figures show approved lending to China by the two bodies amounted to 1.137 billion in 1985/86 1.102 billion in 1984/85 and 1.04 billion in 1983/84. The bankers said that 1.2 billion dlrs had been disbursed by the end of 1986 and Chinas disbursement record compares very favourably with that of other countries. They said Japan has so far been the main source of bilateral concessional assistance for China followed by West Germany Canada Italy Australia and Britain. But China will probably find that such funds will not increase except for those from Japan and the World Bank given other claims particularly from sub-Saharan African countries which cannot raise commercial credits they added. REUTER | WORLD BANK LOANS TO CHINA SEEN DOUBLING |
Shr 28.5p vs 26.6p. Final div 8p making 13p vs 12p. Pre-tax profit 132.4 mln stg vs 132.7 mln. Net profit befire minorities 81.0 mln vs 74.4 mln. Sales 2.06 billion stg vs 2.20 billion. Extraordinary debit 36.5 mln vs 20.4 mln. Trading surplus after depreciation 145.7 mln stg vs 158.1 Mln Investment and interest income 5.4 mln vs 3.8 mln Interest payable 42.5 mln vs 43.9 mln Profits from related companies less losses 23.8 mln vs 14.7 mln Tax 51.4 mln vs 58.3 mln Profit attributable to outside shareholders interests 12.6 Mln vs 11.2 mln Note - Extraordinary debit included charge for restructuring auto parts distribution in France and loss of 10 mln stg on sale of steel stock business. Trading surplus comprised - Automotive components and products 101 mln stg vs 105 mln Industrial services and supplies 30 mln vs 21 mln Wholesale and industrial distribution 11 mln vs 22 mln Steels and forgings four mln vs 10 mln By region Britain contributed 34 mln stg vs 47 mln Continental Europe 77 mln vs 56 mln U.S.A. 28 mln vs 51 mln Rest of world seven mln vs four mln REUTER | GKN PLC <GKNL.L> 1986 YEAR |
Genetech Inc <GENE.O> is issuing a 100 mln dlr convertible bond due March 30 2002 with an indicated coupon of five to 5-1/2 pct and an issue price of par Credit Suisse First Boston (CSFB) said as lead manager. Genentechs stock closed at 58-5/8 on the New York Stock Exchange last night. CSFB said final terms to be set around March 12 anticipate a conversion premium of 20 to 25 pct. The securities will be available in bearer or registered form in denominations of 5000 dlrs each. The deal is callable immediately at 106 for the first three years declining by one pct per year each year thereafter. However if the stock price rises to more than 130 pct of the conversion level the issue will be callable immediately CSFB said. PaineWebber is co-lead manager. Fees consist of a 1-1/2 pct selling concession and a one pct combined management and underwriting fee. REUTER | GENENTECH SETS 100 MLN DLRS OF CONVERTIBLE BONDS |
Chinas foreign debt reached 27 billion dlrs by the end of 1986 but despite an over-exposure to short-term credits and yen borrowing China remains very creditworthy with an improved 1987 export outlook foreign bankers and Chinese officials told Reuters. Foreign bankers said Chinas total debt rose sharply from an estimated 20 billion dlrs at end-1985 to cover increased import commitments but the debt/equity ratio remains low between eight and 10 pct. China remains a cautious and popular borrower they said. Zhang Haoruo vice minister of Foreign Economic Relations and Trade said last Friday that China signed foreign loan agreements for 6.94 billion dlrs last year 96.6 pct up on 1985 with actual loans amounting to 4.83 billion up 93 pct. Officials said China would borrow 25 to 30 billion dlrs in the 1986-90 five year plan period but foreign bankers said they estimate foreign loans at 30 to 40 billion. A Western banker said Chinas portfolio contains too much short-term debt and too much of it is denominated in yen as a result of aggressive lending by Japanese banks and attractive low interest rates in the Japanese market. The strong yen appreciation has cost China dearly and is likely to make it reduce new yen borrowings the banker said. A Chinese trade official estimated the yen component of the countrys total debt at about 30 pct. The Peking representative of a Japanese securities house said the rapid yen rise had caught China and his firm unawares. Interest rates in Japan are at a historical low but China which will remain an active borrower this year is likely to go elsewhere for capital to get a better currency spread he said. The Western banker said the excess of short-term loans is in part a result of Chinas inexperience in the foreign capital markets which it entered only in the early 1980s. Officials do not think of China but of their own department or firm. Some loans that were entered into did not have the full backing of the Peoples Republic of China he said. The dilemma for China in foreign borrowing as in other areas is to balance central control with giving reasonable autonomy to firms. It is searching for the mechanisms to exercise indirect controls he said. The banker said officials have stressed repeatedly over the past six weeks that Chinas foreign borrowing will not be affected by a drive against bourgeois liberalism a phrase meaning Western political ideas following the dismissal of Communist Party chief Hu Yaobang on January 16. A U.S. Banker said there is no evidence that Chinas foreign exchange reserves have fallen below the officially stated figure of 10 billion dlrs. The Bank of China is both a buyer and a seller in the market which would know quickly if it was buying heavily in advance of an announcement the reserves were down he said. The banker said such buying has not been going on. Things are normal. Trade deficits such as China had last year and in 1985 are normal for a country at its stage of development. Customs figures show China had a trade deficit of 11.9 billion dlrs in 1986 down from 14 billion in 1985. A Ministry of Foreign Economic Relations and Trade official said this years outlook for exports which account for more than 75 pct of foreign exchange earnings is much healthier than a year ago. The renminbi has matched the U.S. Dollar fall he said. It was quoted at 3.72 today little changed from 3.7 a year ago. The official said China has taken measures to improve its export performance including incentive offers to exporters and the establishment of export production bases. We expect higher prices for our oil exports this year he added. Official estimates put Chinas 1986 export losses from the drop in world oil prices at three billion dlrs. A Western diplomat said Chinas foreign debt needs careful management but its debt service ratio remains very low at six to eight pct. We base our assessment not on Chinas foreign exchange reserves but on its export performance just as you assess a company on its performance not its bank account he said. He said China performed very well in the export field last year and remains a very creditworthy country which will have few difficulties in increasing its borrowing. REUTER | ECONOMIC SPOTLIGHT - CHINA'S FOREIGN DEBT UP |
U.S. Commercial banks are expected to receive Finance Ministry approval in late April to operate securities subsidiaries in Japan U.S. Bank officials said. A senior official at one of four prospective banks said the ministry told his bank it would give approval as long as the parent firm holds no more than 50 pct of the capital. We expect the ministry to give us permission by the end of April he said. <J.P. Morgan and Co> Bankers Trust New York Corp <BT.N> Manufacturers Hanover Corp <MHC.N> and Chemical New York Corp <FNBF.N> have asked for securities business licenses. Ministry officials declined to say when they would give formal approval but said they were working on the issue. Approval would pave the way for U.S. Commercial banks to underwrite and trade equities in Japan under their own names. Citicorp <CCI.N> and Chase Manhattan Corp <CMB.N> have already entered the Japanese securities market by acquiring U.K. Securities houses already operating in Japan. Citicorp took over <Vickers de Costa Ltd> and Chase bought <Laurie Milbank and Co>. Bankers did not know if all the banks would get licenses but said J.P. Morgan probably would as it was first to ask. REUTER | U.S. BANKS TO GET APPROVAL FOR SECURITIES BUSINESS |
Ultramar Plc <UMAR.L> said that while its fourth 1986 quarter had improved from the operational point of view several special charges adversely affected results. Overall the year had not been a good one with upstream operations dramatically hit by the fall in crude oil prices and downstream operations also affected in the first half by large losses on inventories. But margins improved in the second half and in particular refining and marketing in Eastern Canada showed a good recovery. The company was commenting on results that showed a net loss for the year of 62.1 mln stg after a 71.6 mln profit in 1985. The fourth quarter charges included a 20.8 mln stg provision on a retroactive price agreement recently initialled by Pertamina and Japanese buyers of the companys liquid natural gas and 4.7 mln for the early months of its ownership of Gulf Canadas marketing assets. Ultramar said it had also included the estimated cost of a further reorganisation programme which was partly offset by a withdrawal of surplus funds from U.S. Pension schemes and a 13.5 mln stg provision for the estimated cost of selling its U.S. Flag shipping operation. The immediate outlook for crude oil prices was uncertain although it was unlikely there would be any sizeable increase in the near term. However Ultramar said it was optimistic prices would strengthen over the longer term. Its substantial reserves of crude oil and natural gas put it in a good position to benefit from any price recovery. In the meantime Ultramars objectives were to improve profitability by selling or restructuring weak operations while strengthening core businesses and developing a sound operational and financial base. Proven probable and possible reserves at end-1986 totalled about 700 mln barrels net on an oil-equivalent basis. Ultramar shares firmed on the announcement to 187p from 181p at last nights close. REUTER | ULTRAMAR SAYS FOURTH QUARTER SHOWED IMPROVEMENTS |
The <Queensland Press Ltd> (QPL) board said it unanimously recommended the one billion dlr takeover bid by <Cruden Investments Pty Ltd> a family company of News Corp Ltd <NCPA.S> chief executive Rupert Murdoch. The 23 dlrs a share cash-only offer is nearly double the market price before News announced its now-completed bid for The Herald and Weekly Times Ltd <HWTA.S> in early December and no other offer is likely it said in a statement. Independent adviser <Wardley Australia Ltd> had also concluded the offer was fair and reasonable it added. QPL is already owned 48.3 pct by HWT. REUTER | QUEENSLAND PRESS BOARD RECOMMENDS MURDOCH OFFER |
The European Community (EC) Commission declined to give an official reaction to reports that a group of european operators plan to offer one mln tonnes of sugar into intervention in protest at Commission export policies. However a spokesman for the Commission confirmed the offers had been made to intervention agencies in various member states and said it would now take up to three weeks for the agencies concerned to complete all necessary documentation. The spokesman said that under current regulations the EC would have to accept all the offers if there were no technical problems. The spokesman said the Commission would only have to reimburse the member state for the cost of buying-in the sugar after the product was sold out of intervention stores at a later date. He said that at present there was virtually no sugar held in intervention stores. Last year 45000 tonnes were sold into intervention and during the 1984-85 campaign 108000 tonnes. REUTER | EC COMMISSION DECLINES COMMENT ON SUGAR OFFER |
A tight money market has pushed interest rates on three to six month time deposits to between 15 and 18 pct from 13 to 15 pct a month ago bankers said. March is usually a tight month for the money market because of tax payments and banks need to attract funds for their year-end accounts on March 31. This year the situation has been made worse by Decembers rush to buy dollars by companies and businessmen who feared imposition of exchange controls. Much of that outflow has yet to be converted back into rupiah. A lot of small money has come back in but the big money is holding out until after April one U.S. Banker said. The tight money policy of Bank Indonesia the central bank is helping to keep rates high. Short-term lending rates now average 25 pct a year with no prospect they will be lowered soon the bankers said. Central Bank governor Arifin Siregar said earlier this week that Indonesia could look forward to better economic prospects in 1987/88 but added the speculators who led a run on the rupiah late last year could again pose problems. Indonesia holds general elections on April 23 the first in five years and most businessmen expect no new government economic packages or incentives before then. Some people are nervous about what the government will do after the election one banker said. They normally try to do things before the IGGI (Inter-Governmental Group on Indonesia) meeting (in June) to prove they are doing something about the economy to show they deserve a couple of billion dollars. The IGGI which groups 14 industrialised donor countries and four agencies gave Indonesia 2.5 billion dlrs in soft loans and grants last year. REUTER | INDONESIAN BANKS RAISE INTEREST RATES |
News International <NWSL.L> Plc is issuing 100 mln dlrs of senior unsubordinated notes due April 10 1990 carrying a coupon of 7-1/2 pct and priced at par said Credit Suisse First Boston as lead manager. The notes which are non-callable are available in denomnations of 1000 and 5000 dlrs. Payment date is April 10. They are guaranteed by News Corp Ltd. Fees consist of a 7/8 pct selling concession and 1/2 pct combined management and underwriting. REUTER | NEWS INTERNATIONAL ISSUES 100 MLN DLRS IN BONDS |
The Bank of Nova Scotia Nassau branch is issuing a 50 mln New Zealand dlr eurobond due April 14 1989 carrying a 18-1/4 pct coupon and priced at 101 pct lead manager Morgan Stanley International said. The issue which will take the form of deposit notes will be co-lead by Dominion Securities and Wood Gundy Inc. The bond is available in denominations of 1000 and 10000 dlrs and payment date is April 14. Fees comprise 3/4 pct selling concession and 1/2 pct for management and underwriting. REUTER | BANK OF NOVA SCOTIA ISSUES NEW ZEALAND DLR BOND |
<Polly Peck International Plc> said it has agreed to place 10 mln new ordinary shares at 203p each with a group of institutional investors. Polly Peck said it proposes to use the 20.3 mln stg raised by the share placing to further the development and expansion of its European marketing base and to hasten the development of its agricultural sourcing network in the Southern Hemisphere. The company added that this investment will assist the groups agricultural division in realising its aim of catering for an increasingly diverse range of worldwide markets on a round the year basis. REUTER | POLLY PECK <PPKL.L> RAISES 20.3 MLN STG |
Highveld Steel and Vanadium Corp Ltd said it expects 1987 earnings will be lower than last years previously reported 85 cts a share. But profits will be at a satisfactory level the company said in the annual report without giving a specific estimate. Highveld said it expects appreciation of the rand will be offset to some extent by increasing U.S. Dollar prices for its exports as the year progresses. Highveld said measures taken last year by the European Economic Community and the United States prohibiting all South African steel products presents a challenge to management to place the steel in other areas. The company said overall world vanadium consumption in 1987 is expected to be similar to last year although Chinas role is still an unknown factor in the total supply-demand situation. World vanadium production capacity is still believed to be adequate to cater for any foreseeable demand it added. REUTER | HIGHVELD (HGVJ.J) SEES LOWER 1987 EARNINGS |
The South Korean government will float 150 billion won in exchange equalisation bonds this month Ministry of Finance officials said. The Bank of Korea will issue the bonds to be launched with an annual interest rate of 11 pct a bank official said. The float the first of its kind is a response to the nations increasing current account surplus and is designed to limit the growth in M-2 money supply to 18 pct he said. South Koreas M-2 supply in February totalled 33992 billion won 18.89 pct up on the year-earlier figure. REUTER | SOUTH KOREA TO ISSUE EXCHANGE EQUALISATION BONDS |
Saudi Arabia bought 5000 tonnes of refined bleached deodorised palm olein at its import tender yesterday for April 16/25 shipment at 353 dlrs per tonne cost and freight Jeddah traders said. REUTER | SAUDI ARABIA BUYS 5,000 TONNES RBD PALM OLEIN |
Investors in Industry International BV is issuing a 500 mln franc bond with warrants guaranteed by Investors in Industry Plc lead manager Credit Commercial de France said. Listing will be in London. The issue has a coupon of 9-1/8 pct matures on April 7 1994 and is priced at 101 pct. Fees total 1-7/8 pct with 1-1/4 for selling and 5/8 for management and underwriting. There is a call at par from the end of the third year. Each 10000-franc bond has one 275 franc warrant giving the right in the first three years to exchange the host bond for a similar non-callable 9-1/8 pct 1994 bond or in years four-seven to buy a 9-1/8 pct 1994 non-callable bond. REUTER | INVESTORS IN INDUSTRY ISSUES FRENCH FRANC BOND |
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