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Inco Ltd said it did not expect its earlier reported removal from the Dow Jones industrial index to make a major impact on the companys stock. We dont think that individuals or institutions buy our shares because we were one of the Dow Jones industrials spokesman Ken Cherney said in reply to a query. Inco closed 1-3/8 lower at 19-3/8 in second most active trading on the Toronto Stock Exchange. The Wall Street Journal which selects the index said Inco was dropped to make the index more representative of the market. Inco the non-Communist worlds largest nickel producer was a member of the index since 1928. Replacing Inco and Owens-Illinois Inc will be Coca-Cola Co and Boeing Co effective tomorrow. Nickel analyst Ilmar Martens at Walwyn Stodgell Cochran Murray Ltd said Incos removal from the index would likely spark short-term selling pressure on the stock. Some investors who have Inco may suddenly say well because its not now a Dow stock we should eliminate that investment said Martens although he added the move was unlikely to have a serious long-term impact on Inco stock. Inco has struggled in recent years against sharply lower nickel prices. Its net earnings fell to 200000 U.S. dlrs in 1986 from 52.2 mln dlrs the previous year. Reuter | INCO SEES NO MAJOR IMPACT FROM DOW REMOVAL |
Mason Benson former president and chief operating officer of Empire of Carolina Inc a toy maker today was sentenced in Manhattan federal court to a year and one day in jail for his involvement in a kickback scheme. Benson pleaded guilty to charges of conspiracy tax evasion filing false corporate tax returns and defrauding the companys shareholders. He was also fined 5000 dlrs. Benson was charged with demanding kickbacks from sales representatives who were asked to turn over a portion of their commisisons as a condition for doing business with Empire. Reuter | FORMER EMPIRE OF CAROLINA <EMP> EXEC SENTENCED |
In a discovery that could complicate the search for an AIDS vaccine a team of U.S. Army doctors said they have uncovered a potentially-fatal interaction between the AIDS virus and a virus used to protect against smallpox. Physicians at the Walter Reed Army Institute of Research said a 19-year-old man who apparently had been exposed to the AIDS virus developed a pox-like disease and died after receiving the smallpox vaccine. The military now tests recruits for AIDS before vaccinating them. The findings reported in The New England Journal of Medicine are significant because scientists have begun working on an AIDS vaccine that relies on the smallpox vaccine. Our case report raises provocative questions concerning the ultimate safety of such vaccines said the group led by Dr. Robert Redfield. The report also throws into question the belief held by some scientists that the smallpox vaccine which exposes people to a milder protective form of the disease known as cowpox could be further modified to protect people against a host of other diseases. Reuter | DOCTORS FIND LINK BETWEEN AIDS, SMALLPOX VIRUS |
Doctors at the Centers for Disease Control in Atlanta said they have new evidence that birth control pills can help provide long-term protection from cancer of the ovary even if the pills are only taken for a few months. The study reported in the New England Journal of Medicine also found that all the various types of oral contraceptives on the market were equally effective in lowering the rate of ovarian cancer. The researchers estimated that the use of birth control pills in this country probably prevented about 1700 cases of ovarian cancer in 1982. As more and more women who have taken oral contraceptives move into the age groups that are at highest risk for epithelial ovarian cancer we may witness a declining incidence of this serious disease they said. Specifically the team led by Dr. Howard Ory found that oral contraceptive use even for a few months reduces the risk of epithelial ovarian cancer by 40 percent for women 20 to 54 years of age. The effect probably takes from five to ten years to become apparent but it persists long after the use of oral contraceptives ends. Moreover protection exists regardless of the formulation of oral contraceptive used they said. Reuter | BIRTH CONTROL PILLS HELP PREVENT CANCER - STUDY |
U.S. economic data this week could be the key in determining whether U.S. interest rate futures break out of a 3-1/2 month trading range financial analysts said. Although market expectations are for February U.S. retail sales Thursday and industrial production Friday to show healthy gains figures within or slightly below expectations would be positive for the market the analysts said. You have to be impressed with the resiliency of bonds right now said Smith Barney Harris Upham analyst Craig Sloane. Treasury bond futures came under pressure today which traders linked to a persistently firm federal funds rate and a rise in oil prices. However when sufficient selling interest to break below chart support in the June contract failed to materialize participants who had sold bond futures early quickly covered short positions they said. Everyone is expecting strong numbers and if they come in as expected it wont be that bad for the market Sloane said. Sloane said the consensus estimate for the non-auto sector of retail sales is for a rise of 0.6 to 0.7 pct. Dean Witter analyst Karen Gibbs said a retail sales figure below market forecasts would give a boost to debt futures and she put the range for the non-auto sector of retail sales at up 0.8 to 1.2 pct. Industrial production and the producer price index Friday both are expected to show increases of about 0.5 pct she added. Retail sales will tell us whether or not we will be able to fill the gap Gibbs said referring to a chart gap in June bonds between 100-26/32 and 101-3/32 created Friday. June bonds closed at 100-4/32 today. Also key to debt futures direction in addition to the federal funds rate is the direction of crude oil prices said Carroll McEntee and McGinley Futures analyst Brian Singer. A higher fed funds rate and firm oil prices precluded the market from breaking out of the trading range the last time the market approached the top of the range Singer said. In order for bonds to break above the top of the range which is just below 102 in the June contract the crude oil rally needs to run its course and pull back a little bit Singer said. Fed funds are already easing back down toward the six pct level. The recent surge in oil prices has also been a concern to Manufacturers Hanover Futures analyst Jim Rozich but the rally may be nearing a top around 18.50 dlrs per barrel he said. Rozich said he is looking for the June bond contract to ease to 99-6/32 and find support. Im not quite ready to jump on the bullish bandwagon yet. The jury is still out this week Rozich said. Reuter | U.S. ECONOMIC DATA KEY TO DEBT FUTURES OUTLOOK |
The Reagan administration responding to last years United Nations special session on Africa today outlined a U.S. action program for sub-Saharan Africa focusing heavily on economic reform and self-help. A White House statement announced establishment of a long-term U.S. goal for all U.S. economic programs and policies in sub-Saharan Africa: to end hunger in the region through economic growth policy reform and private sector development. The statement said the program of action was recommended by a White House task force set up last September. In a series of recommendations the task force called for new efforts to address Africas heavy debt burden and said U.S. food aid should stress production incentives to reinforce African nations economic reform and productivity. It also said better African access to world markets should be promoted to reward good performance and enable African nations to earn their way toward economic growth. The U.S. private sector should be mobilized to provide private voluntary and corporate involvement of a humanitarian It said donor countries should negotiate through the existing International Monetary Fund/World Bank coordination process framework agreements with each sub-Saharan African country to establish long-term structural adjustment and reform programs. The task force called for a separate budget account for U.S. bilateral aid in order to focus better on rewarding economic performance and increasing the flexibility of U.S. assistance programs for incentive economic reforms and private sector development. Reuter | U.S. "ACTION PROGRAM" FOR SUB-SAHARAN AFRICA |
In a novel type of financing Texas Instruments Inc marketed a three-part 225 mln dlr issue of convertible money market preferred stock through Shearson Lehman Brothers Inc as sole manager. Shearson which originated the new convertible concept said each of the three tranches totaled 75 mln dlrs. In the first a 2.85 pct dividend was set on the stock with a strike price of 190 dlrs that represented a 15 pct premium over the common stock price when terms were set. Also included were 4.36 pct dividend preferred with a 220 dlr strike price and 33 pct premium and 4.49 pct dividend preferred with a 235 dlr strike price and 42 pct premium. Texas Instruments common closed at 167.25 dlrs up 2-1/8. Ronald Gallatin managing director at Shearson said that demand for the offering was unbelievable especially for the first tranche. He said that Shearson originated the concept of auction money market preferred stock three years ago. The conversion feature of this issue is the new wrinkle. Commenting on the first tranche Gallatin noted that the original pricing talk called for a dividend in the four to 4.20 pct area. This was gradually cut to 2.85 pct because of intense demand saving the issuer money in financing costs. The Shearson official said that virtually all buyers of the first tranche received less than they wanted. He said the latter two tranches were less strongly oversubscribed. Like non-convertible money market preferred stock the new version allows investors to redeem their holdings every seven weeks. Investors then can maintain their holdings sell them or offer to hold on to the securities if the auction dividend is at least at a level they specify in advance. Gallatin said the securities were sold to a broad range of investors including major insurance companies banks money managers and pension funds. Reuter | UNUSUAL TEXAS INSTRUMENTS <TXN> PREFERRED PRICED |
Canadian Foreign Secretary Joe Clark winding up a two-day visit to Washington said he expected the Reagan administration to take some action on reducing acid rain. My impression is there will be some movement by the United States administration on acid rain (but) how much movement I cant judge or predict he told reporters. The meetings with American officials are part of a routine U.S.-Canada consultation but are also expected to lay the groundwork for a summit in Ottawa next month between President Reagan and Prime Minister Brian Mulroney. Clark today held discussions with Treasury Secretary James Baker and Democratic Sens. Patrick Moynihan of New York Christopher Dodd of Connecticut Lloyd Bentsen of Texas and George Mitchell of Maine. Yesterday he held talks with Vice President George Bush Secretary of State George Shultz and Commerce Secretary Malcolm Baldrige. Among its priorities Canada is seeking evidence that Reagan is prepared to live up to a commitment made last year to implement in the United States a five-year 5 billion U.S. dlr program to test cleaner ways of burning coal. This issue was discussed at length with Baker and several of the senators including Mitchell who urged Canada to keep the heat on the Reagan administration to force action Canadian officials said. Also taken up with most of the senators and Baker were trade issues including the need for the United States and Canada to establish a better mechanism for settling trade disputes between the two countries who are each others major trading partner Canadian officials said. Reuter | CLARK SAYS HE EXPECTS U.S. ACTION ON ACID RAIN |
Ford Motor COr said that profit-sharing checks were distributed to employees in its U.S. facilities. About 371 mln dlrs was distributed to 160253 emplyees. The average payment per employee was more than 2100 dlrs compared with 1200 in 1985. Reuter | FORD MOTOR <F> DISTRIBUTES PROFIT SHARING |
jamaica has put a cap on its 3.5 billion dlr foreign debt and will reduce its obligations by 300 mln dlrs this year prime minister edward seaga said today. Speaking at a news conference seaga said jamaica has reached its maximum stock of debt and will not undertake any more borrowing until it is justified by economic growth. this year well be reducing the stock of debt by 300 million dollars he said. He told reporters his government aims to reduce jamaicas ratio of debt payments to foreign exchange earnings from the current 50 pct to 25 pct within three years. Debt payments this year are expected to total 287 mln dollars seaga said. yesterday jamaica agreed with creditor banks to reschedule over the next 12 years some 181 miln dlrs due in 1987-89. The accord includes a grace period on principal payments for eight and a half years and a reduction of interest rates from 2.5 to 1.125 pct above libor. Last week jamaica obtained a 10-year rescheduling of 100 pct of principal and 85 pct of interest on 125 mln dollars of debt to the paris club nations the debt would have fallen due over the next two years. Reuter | JAMAICA PUTS CAP ON BORROWING |
A team of California researchers said that they have developed a better faster test for detecting sickle cell anemia in unborn children than existing procedures. The test developed by Cetus Corp <CTUS> researchers requires only a small amount of genetic material from a fetus and produces a diagnosis within a day unlike other tests that require several days and can only be done in a few specialized centers they said. Sickle cell anemia is a painful inherited blood disease that causes the normally-flexible red blood cells to stiffen into a sickle-like shape. It is primarily found in blacks. The researchers said in The New England Journal of Medicine that their procedure promises to be a rapid sensitive and reliable method for the prenatal diagnosis of sickle cell disease. In addition they said the technique might also be adapted to detect other types of genetic disease. Reuter | FASTER TEST FOR SICKLE CELL ANEMIA DEVELOPED |
Oper shr loss two cts vs profit three cts Oper net profit 273000 dlrs vs profit 1710000 YEAR - period ended October 31 1986 Oper shr loss 23 cts vs profit 14 cts Oper net loss 4397000 vs profit 7527000 Assets 2.67 billion vs 3.25 billion Note: 1987 1st qtr net excludes extraordinary loss of 2.2 mln dlrs or six cts shr. 1986 yr net excludes extraordinary loss of 66 mln dlrs or 1.94 dlrs shr involving 22.1 mln dlrs of costs from sale of bank assets to Hongkong Bank of Canada eight mln dlrs for contingent liabilities in respect of litigation and potential tax reassessment by U.S. govt and 35.9 mln dlrs of deferred tax debits. Most bank assets sold to HongKong Bank of Canada a unit of <Hong Kong and Shanghai Banking Corp> in Nov 1986. Shr after preferred divs. Reuter | BANK OF BRITISH COLUMBIA 1ST QTR JAN 31 NET |
Albert Hakim an arms merchant is the first top-ranked player in the Iran arms scandal who may be enticed into testifying by the promise of immunity investigators said. The House Select committee probing the Iran arms scandal has voted to grant limited immunity from criminal prosecution to Hakim in return for his testimony. Hakim 51 was said deeply involved from the start in the attempt to trade arms to Iran for help in freeing American hostages in Lebanon and the diversion of funds and arms to rebels in Nicaragua. Reuter | RAN SCANDAL PARTICIPANT TO GET IMMUNITY OFFER |
Shr 25 cts vs 36 cts Net 1.4 mln vs 1.4 mln Revs 56.9 mln vs 35.1 mln Year Shr 86 cts vs 75 cts Net 4.7 mln vs 3.0 mln REvs 201.4 mln vs 140.0 mln NOTE:1985 4th qtr includes 99000 loss from carryforward. Shares restated to give effect to 1.4 to one stock split in the form a 40 pct class A dividend in August 1985. Reuter | RESTAURANT ASSOCIATES INC <RA> 4TH QTR JAN 3 |
Shr loss 1.02 dlrs vs 1.01 dlr Net loss 18.1 mln vs 11.4 mln Revs 96.0 mln vs 90.3 mln Year Shr loss 2.65 dlrs vs loss 3.06 dlrs Net loss 39.3 mln vs 34.6 mln Revs 386.0 mln vs 373.0 mln NOTE:1986 4th qtr year loss includes 14.4 mln dlrs 4.6 mln dlrs respectively from discontinued. 1985 4th qtr and year include loss of 13.1 mln 1.9 mln dlr respectively. Reuter | MICHIGAN GENERAL CORP <MGL> 4TH QTR |
USX Corp said proved reserves of oil and natural gas liquids fell 28 pct to 802.8 mln barrels at the end of 1986 from 1.12 billion barrels at year-end 1985. The figures in USXs just-released 1986 annual report indicate much of the drop resulted from the exclusion of 293.7 mln barrels of Libyan reserves after the U.S. government last June directed U.S. oil companies to end Libyan operations. USX which owns Marathon Oil Co and Texas Oil and Gas Corp had 60 pct of its 1986 sales of 14.94 billion dlrs from its oil and gas operations. About 24 pct of total sales came from USXs USS steel unit and 16 pct from diversified businesses which include oilfield services raw materials minerals chemicals and real estate. According to the report domestic liquids reserves fell slightly to 628.5 mln barrels from 628.9 mln and foreign reserves fell to 174.3 mln from 486.4 mln barrels. The large drop in foreign reserves was in the Middle East and Africa where they fell to about 9.3 mln barrels from 316.7 mln reflecting the exclusion of Libya. Total natural gas reserves fell to 4.82 trillion cubic feet at year-end 1986 from 5.18 trillion at the end of 1985. Again most of the drop came from the Middle East and Africa where reserves fell to zero from 71.9 billion cubic feet excluding Libyan reserves. U.S. natural gas reserves fell to 3.44 trillion cubic feet from 3.65 trillion and foreign reserves fell to 1.38 trillion from 1.53 trillion. In other areas USX said total capital spending fell to 962 mln dlrs in 1986 from 1.78 billion dlrs in 1985. The 1986 audited figure is eight mln dlrs higher than the unaudited figure the company reported on Jan 27. USX also said it expects to record a gain of 150 mln dlrs in 1988 representing 50 pct of previously existing investment tax credits allowable under the new tax law. The loss of the other half of the credits was reflected in the fourth quarter. In a discussion of steel results USX said plants that were shut down last month and some previously idled plants may be permanently closed. USX took a fourth quarter charge of 1.03 billion dlrs to restructure its steel operations. The charge included the indefinite idling last month of four plants in Utah Pennsylvania and Texas. Other plants or parts of plants in Pennsylvania Indiana Alabama Ohio and Chicago had been previously idled. These operations are not permanently shut down. Improved market conditions for the products from these plants may make it feasible to reopen some of them USX said in the report. On the other hand a lack of any future market improvement may necessitate their permanent closing it added. Reuter | USX <X> PROVED OIL, GAS RESERVES FALL IN 1986 |
Phillips Petroleum Co Chairman C. J. Pete Silas said his companys stock ranked fourth on the most active list of stocks traded today rose partly because of steps it took to pare its debt. Silas told Reuters in an interview today part of this strength results from the rise in oil prices and also because some of the analysts have been happy with the steps weve taken in 1986 to pare our debt. Phillips stocks rose 1/4 to 14 dlrs a share following recommendations by some oil analysts a company source said. Phillips debt stood at 5.9 billion dlrs in December 1986 down from a 1985 high of 8.6 billion dlrs analysts said. At 14 dlrs a share Phillips is priced closer to the actual price of oil he added. Silas said if the analysts are right that oil prices will rise to 20 dlrs or higher then it seems to make sense to buy Phillips. He is however more cautious about the strength in crude prices expecting the price to fluctuate between 16-18 dlrs a barrel for the year. Oil industry analysts said one reason for the stocks popularity of the stock is that it traded at a strong discount to its appraised value and was attractively priced for small investors. Charles Andrew an analyst who follows Phillips for John S. Herold Inc of Greenwich Conn said that the appraised value of the company based on available data is 34.25 dlrs. The stock is trading at about 1/3 its appraised value. The company has tremendous leverage and if it can get its act together and if oil prices are steady to higher there is good room for improvement he said. But he added if oil prices turn lower there will be a lot of pressure on Phillips. Phillips shares fell as low as eight dlrs a share over the last 52 weeks with a 1987 low of 11-3/4 dlrs in 1987. Analysts say that the appraised value of the company could be revised due to asset sales of their oil and gas reserves. Silas told Reuters that the asset sales which amount to about two billion dlrs for 1986 were completed and that none were planned. Reuter | PHILLIPS<P> SAYS STOCK UP ON STEPS TO PARE DEBT |
Michigan General Corp said it began an exchange offer for its 110 mln dlrs outstanding principal amount of 10-3/4 pct senior subordinated debentures due December 1 1998. Pursuant to the exchange offer each 1000 dlr principal amount will receive 500 dlr principal amount of senior subordinated notes due March 1 1992 200 dlr principal amount of non-interest bearing convertible senior subordainted notes due March 1 1997 and 12 shares of delayed convertible preferred stock liquidation preference 25 dlrs per share. The offer will expire April nine. Michigan General said the exchange offer is crucial to is attempt to restructure and reduce its risk from Chapter 11. The principal purpose of the offer is to reduce its debt service on the 10-3/4 pct debetures increase stockholders equity and induce its lender to continue to fund. Assuming a 90 pct acceptance of the offer Michigans annual cash interest requirements will be reduced by about 10.6 mln dlrs it said. Completion is subject to the tender of at least 90 pct of the debentures and its lender to waive it from default under its loan agreements. Reuter | MICHIGAN GENERAL <MGL> BEGINS EXCHANGE OFFER |
Bank of British Columbia said it revised its estimate of shareholder distributions from last Novembers sale of most of the banks assets to HongKong Bank of Canada to between 65 cts and 1.15 dlrs a share from 55 cts to 1.20 dlrs a share. The bank said the estimate could rise to between 1.30 dlrs and 1.80 dlrs a share if the full pension surplus is obtained. It said it did not know when distributions would be made. It earlier reported that operating profit for first quarter ended January 31 fell to 273000 dlrs from 1.7 mln dlrs the previous year. For full-year 1986 ended October 31 the bank posted an operating loss of 4.4 mln dlrs against year-earlier profit of 7.5 mln dlrs. The bank also posted a 66 mln dlr extraordinary loss in fiscal 1986. Bank of British Columbia sold most of its assets last November to HongKong Bank Canada a unit of <HongKong and Shanghai Banking Corp> of Hong Kong for 63.5 mln dlrs. It said efforts to wind up the banks affairs were proceeding as quickly as possible. The bank said it expected to report positive earnings in future periods barring unforeseen circumstances. Loan losses which the bank previously said figured in its move to sell off most of its assets rose to 105.7 mln dlrs in fiscal 1986 from year-earlier 36.1 mln dlrs. The bank said 31.1 mln dlrs of the 1986 total represented downward adjustments to its portfolio of syndicated sovereign risk loans as required under the sale to HongKong Bank. Since November 27 the bank has confined activities to the winding up of affairs Bank of British Columbia said. Reuter | BANK OF B.C. REVISES SHARE PAYOUT ESTIMATE |
The House voted to block 40 mln dlrs in military aid to the Nicaraguan rebels until President Reagan accounts for past assistance including money diverted from the U.S. sale of arms to Iran. The vote was seen as a temporary defeat for Reagan who has made aid to the contras a key initiative. Congressional Democratic leaders have conceded that despite todays vote they can not muster a two-thirds majority to override a certain Reagan veto. But they have said it is likely they can win a battle expected this fall over 105 mln dlrs iin new aid Reagan is requesting. Reuter | HOUSE VOTES TO BLOCK CONTRA AID FOR SIX MONTHS |
Shr 17 cts vs 16 cts Net 1019000 vs 985000 Revs 7997000 vs 7492000 YEAR Shr 1.18 dlrs vs 64 cts Net 6959000 vs 3778000 Revs 36.5 mln vs 29.8 mln Reuter | <KIENA GOLD MINES LTD> 4TH QTR NET |
Argentine meat exports during Jan/Feb 1987 totalled 39714 tonnes against 36594 tonnes shipped in the same 1986 period National Meat board said. Shipments in tonnes with comparative figures for the 1986 period in brackets included: beef 26945 (20096) horse meat 3257 (4211) and beef offal 7660 (10502). Argentines meat exports totalled 20243 tonnes in February 1987 against 19217 tonnes shipped in the same 1986 month. Shipments in tonnes with comparative figures for February 1986 in brackets included: beef 13272 (11464) horse meat 1543 (2083) and beef offal 4476 (4672) the board added. Main destinations for refrigerated beef (bone in equivalent) were as follows in tonnes with comparative figures for 1986 in brackets - EC 5500 (7900) Brazil 5200 (unavailable) Israel 3700 (3000) Peru 2500 (800) Singapore 500 (300) Switzerland 500 (400) Canary Islands 500 (300) Malta 500 (700) Aruba/Curazao 200 (300) Chile 100 (600). Main destinations for canned meat and cooked beef (bone in equivalent) in tonnes with comparative figures for Jan/Feb 1986 in brackets were - United States 11200 (13400) EC 4700 (5100). Reuter | ARGENTINE MEAT EXPORTS HIGHER IN JAN/FEB 1987 |
<Kiena Gold Mines Ltd> said it planned a two-for-one common stock split pending shareholder approval on April 7. It said approval would require 66-2/3 pct of votes cast. Kiena said 57 pct-owner Campbell Red Lake Mines Ltd <CRK> was expected to vote in favor of the split. Reuter | KIENA PLANS TWO-FOR-ONE STOCK SPLIT |
vanzetti Systems INc said its shareholders approved increasing the number of authorized shares to five mln from three mln. Shareholders also approved increasing the number of shares reserved for options to employees to 300000 from 150000 Reuter | VANZETTI <VANZ> INCREASE OF SHARES APPROVED |
Qtly div four cts vs four cts prior Pay April 15 Record March 20 Reuter | ROWE FURNITURE CORP <ROWE> SETS QTLY DIVIDEND |
House trade lawmakers took their first votes on measures designed to toughen U.S. trade laws but held over until tomorrow the most difficult votes on controversial plans to protect American industries. Meeting in closed session the House Ways and Means Trade Subcommittee failed to resolve one of the most sensitive issues in the bill--whether they will force major foreign trading partners to severely cut their trade surpluses with the United States. The subcommittee is considering a toned-down version of Democratic-sponsored trade legislation that aims to open foreign markets but which drops last years effort to force President Reagan to retaliate with quotas or tariffs. Congressional aides who asked not to be identified said the lawmakers intend to wrap up their proposals tomorrow and will consider a proposal to mandate retaliation without setting specific trade penalties. The legislation faces another hurdle in the full Ways and Means Committee next week before the full House votes on it. Rep. Richard Gephardt a Missouri Democrat who is seeking his partys 1988 presidential nomination said he may offer an amendment to call for reductions in the trade surpluses of those countries with barriers to imports of U.S. goods. This would be a moderated version of his earlier plan to force a mandatory ten per cent annual cut in the trade surplus with the United States by Japan South Korea Taiwan West Germany and other countries with the largest trade imbalances. My criteria for a good amendment sets a standard for getting the trade deficit down he told reporters. The trade law changes are to become part of a major congressional and administration effort to turn around the record U.S. trade deficit of 169 billion dlrs last year by opening up foreign markets and making U.S. products more competitive. House Speaker James Wright a Texas Democrat said again today he expects the full House will approve the trade bill by May and that Reagan will accept the final congressional bill. I expect whatever is reported (by the Ways and Means Committee) will pass. We will have a good bill and an effective bill he told reporters. The comprehensive trade bill will include work by other committees to ease export controls on high technology to aid U.S. workers displaced by foreign competition to stimulate research and development to remove foreign trade barriers and to improve education and worker training. The lawmakers agreed that for the first time a U.S. industry could charge foreign producers with unfair competition if they deny basic worker rights such as collective bargaining safety rules and payment of a minimum wage appropriate to the countrys economic development. They transferred to U.S. Trade Representative Clayton Yeutter the powers now held by Reagan to decide whether to retaliate against foreign violations of fair trade rules and whether an injured industry deserves import relief. They agreed to make it easier for a company to get temporary relief from import competition but agreed the industry should provide a plan to become competitive. The administration has not announced its support but Yeutter said yesterday I am cautiously optimistic that the Democratic-led House will come up with an acceptable bill. Reuter | U.S. HOUSE PANEL TAKES FIRST TRADE BILL VOTES |
Soviet first deputy prime minister Vsevolod Murakhovsky said at the end of a brief visit here his country wanted to boost joint business with France but that a reduction of Frances trade deficit with the Soviet Union depended on the French. Murakhovsky who is also chairman of the State Agro-Industrial Committee (GOSAGROPROM) told a news conference he had discussed a variety of possible deals with French companies Rhone-Poulenc Pechiney and Imec. Declining to put figures on possible contracts he said he had discussed plant protection and the processing of highly sulphuric gas with Rhone-Poulenc packaging technology for agricultural products with Pechiney and fruit and vegetable juice processing with Imec. An official for Pechiney said an agreement of intent on packaging could be signed soon but could not give any other details. The other two companies were not immediately available for comment. Asked whether he foresaw a reduction this year of Frances trade shortfall at 7.6 billion francs in the first 11 months of 1986 against 5.1 billion for the whole of 1985 Murakhovsky told Reuters: It all depends on France. At a meeting in Paris last January French and Soviet foreign trade ministers said they were committed to increased efforts to reduce the deficit. Estimates at the time showed a French 190 mln franc surplus for December 1986. Murakhovsky said the Soviet Union was prepared to talk with anybody with interesting proposals offering latest technology and assuring a mutual advantage. He said the Soviet Union had many tasks ahead of it and would deal rapidly with proposals it considered interesting. He encouraged companies to take advantage of new laws guaranteeing the interests of foreign partners in joint ventures. But he said no agreements had yet been finalised under the new joint venture laws. He said concrete deals had not yet been finalised as a result of a one billion dollar accord signed in Moscow last month with French businessman Jean-Baptiste Doumeng. He said Doumengs Interagra company was preparing proposals for further examination by the Soviet Union. Doumeng last month said the agreement was to exchange one billion dollars worth of goods. Murakhovsky said the agreement was one of intent and designed primarily to renew and increase the Soviet Unions food production capacity. Reuter | SOVIET MINISTER SAYS TRADE BOOST UP TO FRENCH |
venezuela will supply ecuador with an as yet undetermined amount of crude oil to help it meet export commitments seriously affected by last weeks earthquake energy and mines minister arturo hernandez grisanti said. He gave few details about the deal but said a crude oil loan agreement will be made between state oil companies petroleos de venezuela (pdvsa) and ecuadors cepe. Ecuador was forced to suspend oil exports for an expected four months after an earthquake damaged a pipeline. Oil accounts for 60 per cent of its export income. Hernandez was speaking to reporters at miraflores palace on the results of talks with ecuadors deputy energy minister fernando santos alvite who arrived here last night. the volume lent to ecuador would be discounted from its opec quota and would not affect venezuelas he said. we would from august on produce our own quota and sell the additional amounts that ecuador would be repaying us he said. He did not elaborate on the quota arrangements but did say ecuador would notify opec by telex that venezuela would be lending it a certain amount over so many days. Venezuelas opec output quota is currently 1.495 million barrels a day and ecuadors has been set at 210000 bpd. Reuter | VENEZUELA TO LEND OIL TO ECUADOR FOR EXPORT |
Shr profit 17 cts vs profit 14 cts Net profit 1.3 mln vs profit 901000 Revs 36.9 mln vs 36.2 mln Six months Shr profit 18 cts vs loss 11 cts Net profit 1.4 mln vs loss 716000 Revs 63.6 mln vs 57.7 mln NOTE:1986 six months includes increase in provision for doubtful accounts to 1.5 mln dlrs. 1986 shares give effect to issuance of 1.5 mln shares in exchange for outstanding Series 1 preferred shares. Reuter | EAGLE CLOTHES INC <EGL> 2nD QTR JAN 31 |
Iraq said it had repelled an Iranian attack on positions held by its fourth army corps east of the southern Iraqi town of Amarah on the Baghdad-Basra highway. A Baghdad war communique said an Iranian infantry brigade backed by tanks launched the overnight attack and fierce fighting raged for more than six hours before Iranian troops fled the battlefield leaving 220 men killed and many wounded. No major battles have been reported fought by the fourth army corps for more than a year in the area mainly swamplands of the Hawizah marshes running eastward to the southern port city of Basra. Reuter | IRAQ SAYS IRAN ATTACK REPULSED ON SOUTHERN FRONT |
Britain today called on Japan to increase foreign imports or risk the rise of protectionism and the harm it would bring to it and other trading nations. British Trade and Industry Secretary Paul Channon said Japan must heed a report issued by a Japanese government advisory body in December calling for faster domestic demand to help cut its trade surplus and restructure its economy. I recognise that the strong yen has brought problems to Japans domestic economy he told a group of Japanese businessmen in London. But these short term difficulties should not be allowed to deflect Japan from the fundamental reforms necessary he said. It is not just a domestic issue for Japan. If import propensity does not expand very soon there is a real risk from protectionist lobbies particularly in the U.S. With whom Japan has so massive a surplus he said. They may well succeed in securing action by governments which would be highly injurious to trading nations like Japan and the U.K. Channon said there had been substantial growth in the volume of trade between Japan and Britain amounting to 6.2 billion sterling (9.8 billion dlrs) last year. But he added: Regrettably too much of it was in one direction with the Japanese selling us 3.7 billion sterling (5.8 billion dlrs) more than we sold them. Reuter | BRITAIN CALLS ON JAPAN TO INCREASE IMPORTS |
TAFT BROADCASTING REJECTS 145 DLR PER SHARE BUYOUT OFFER FROM THETA CORP |
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Taft Braodacasting Co said its board of directors unanimously decided not to accept the pending proposal of Theta Corp an investor group led by Dudley Taft. The decision was based on among other things the advise of its financial advisors goldman sachs and co that the offer of 145 dlrs per share was inadequate. Taft said the board concluded that the offer failed to recognize fully the future propsects of the company and directed management to explore alternatives including possible financial restructuring. Reuter | TAFT <TFB> REJECTS 145 DLR/SHR OFFER |
Ecuador stricken by a severe earthquake will honour its 8.16 billion dlr foreign debt but only after ensuring the survival of the country after the tremor which claimed at least 300 lives and caused 4000 persons to disappear. The governments position ... is to permit us to honour the (debt) commitments but without sacrificing the country because first we have to survive and later we can comply information minister Marco Lara told reuters. He said the nation would later announce definitive measures on the foreign debt in the aftermath of the earthquake which the government said will cause nearly a billion dlrs in economic losses. Reuter | ECUADOR DEBT TO BE HONOURED AFTER QUAKE SURVIVAL |
A British minister said that a proposed European Community tax on vegetable oils and fats would raise the price of fish and chips and he pledged the government would fight against it. Lord Belstead a junior agriculture minister told the House of Lords the tax would raise the price of raw materials used in many processed foods by about 100 pct. He said revenue should not be raised by taxing the consumer and called the proposal repugnant. Reuter | BRITISH MINISTER CRITICISES PROPOSED EC OILS TAX |
Australias seasonally-adjusted unemployment rate eased to 8.2 pct of the estimated workforce in February from 8.3 pct in January compared with 7.9 pct a year earlier the Statistics Bureau said. The number of unemployed declined to 632100 from 638300 in January against 594500 in February 1986 it said. But unadjusted the number of jobless rose to 699800 or 9.1 pct of the workforce from 671400 or 8.9 pct in January and 658500 or 8.7 pct a year earlier. REUTER | AUSTRALIAN UNEMPLOYMENT EASES IN FEBRUARY |
Ecuador stricken by a severe earthquake is seeking through negotiations with private foreign banks to postpone all payments due to them for the rest of the year Finance Minister Domingo Cordovez said. He said in a statement The idea with the foreign banks is to obtain from them the best terms to give the Ecuadorean economy a complete relief in the period of deferral of payments on the foreign debt during the present year. The statement referred only to payments due to private foreign banks a senior government finance official told Reuters. These creditors hold two-thirds of Ecuadors foreign debt which totals 8.16 billion dlrs. It did not refer to debts maturing to foreign governments and multilateral lending agencies accounting for the remainder of Ecuadors foreign debt the official said. He said Ecuador owed the private foreign banks between 450 and 500 mln dlrs in interest payments for the rest of 1987 and about 66 mln in principal payments maturing this year. Cordovez said Ecuador would seek new loans from multilateral organisations. A World Bank mission was due here soon to evaluate emergency loans government officials said. Ecuador has also appealed for emergency aid from about 40 foreign governments. Government officials have calculated losses to the 1987 budget from last Thursdays earthquake at 926 mln dlrs. In 1986 Ecuadors total service on the foreign debt was about 996 mln dlrs to all creditors. The quake ruptured Ecuadors main oil pipeline suspending crude exports for five months until the line is repaired. Oil accounts for up to two-thirds of its total exports and up to 60 pct of total revenues. Before the tremor Ecuador suspended interest payments on January 31 to private foreign banks. Officials said they stopped interest payments due to a cash-flow squeeze stemming from a slide in world oil prices which cut 1986 exports by about 25 pct to 2.18 billion dlrs. Ecuadorean finance officials have been in telephone contact every day this week with some of the banks who sit on its 14-bank advisory committee the senior government finance official said. The committee represents the countrys 400 or so private foreign bank creditors. Cordovez also said in the statement The banks should perceive that it is impossible at this moment to comply with what was forseen. Cordovez added Ecuador must make a new proposal in line with the reality since the earthquake by seeking better options of deferment and of softening the negotiation conditions. Interest payments fall due at least monthly to private foreign banks. Ecuadors initial proposal earlier this year was to make only one semi-annual or one annual interest payment this year. Under this proposal it sought to defer interest payments until June at the earliest foreign bankers and government officials here said. Ecuadorean officials held their last formal meeting with the advisory committee in New York in January but the negotiations were suspended on January 16 due to the 12-hour kidnapping of President Leon Febres Cordero by air force paratroopers. The Red Cross says that least 300 people died and at least 4000 are missing due to the earthquake. REUTER | ECUADOR SEEKS HALT TO PAYMENTS TO BANKS IN 1987 |
U.S. Treasury Secretary James Baker declined comment on the February 22 Paris accord between the six major industrial nations under which they agreed to foster exchange rate stability. Asked by reporters after a speech before the National Fitness Foundation banquet what if any currency intervention levels had been set in Paris Baker replied: We never talk about intervention. Baker also declined to comment on his views about the foreign exchange markets reaction to the accord. REUTER | TREASURY SECRETARY BAKER DECLINES COMMENT ON G-6 |
Ecuador will ask OPEC to raise its oil export quota by 100000 barrels per day to 310000 to compensate for lost output due to last weeks earthquake deputy Energy Minister Fernando Santos Alvite said. Santos Alvite who arrived in Caracas last night to discuss an aid plan for Ecuador did not say when the Organisation of Petroleum Exporting Countries (OPEC) would be approached. The additional output would be related to plans now under discussion for Venezuela and Mexico to lend Ecuador crude while it repairs a pipeline damaged by the quake. Earlier Venezuelan Energy and Mines Minister Aturo Hernandez Grisanti said his country would supply an unspecified part of Ecuadors export commitments. But Santos Alvite told reporters he hoped a first cargo of 300000 barrels could leave Maracaibo this weekend to supply refineries near Guayaquil. He added Ecuador also wanted to make up for 50000 bpd it shipped to Caribbean destinations. Mexico might supply Ecuadors South Korean market. Ecuador may be unable to export oil for up to five months due to extensive damage to a 25 mile stretch of pipeline linking jungle oilfields to the Pacific port of Balao. REUTER | ECUADOR TO ASK OPEC TO RAISE EXPORT QUOTA |
The yield on 46000 hectares (ha) of rapeseed in central China will be cut by up to 70 pct by hailstorms and tornadoes that swept across nearly 100000 ha of crops on March 6 the New China News Agency said today. The storm which lashed the Huai and Yangtze rivers and eastern Anhui province left two people dead and 800 others injured. Some 800 houses were flattened and 19 boats sunk it said. The Anhui provincial government has sent emergency relief to the 19 counties affected the news agency said. REUTER | CHINA'S RAPESEED CROP DAMAGED BY STORMS |
China has closed the second round of bidding by foreign firms for offshore oil exploration rights the China Daily has reported. It quoted a spokesman for the China National Offshore Oil Corp (CNOOC) as saying China signed eight contracts with 15 foreign firms for blocks in the Pearl River mouth and south Yellow Sea covering a total area of 44913 sq km. Second round bidding began at the end of 1984 and only one well has so far produced results -- Lufeng 13-1-1 250 km south-east of Shenzhen with an output of 6770 barrels a day. The well was drilled by a group of Japanese companies. The spokesman added CNOOC was ready to enter into contracts for offshore blocks before third round bidding began. He did not say when this would be but added the contracts would not be bound by restrictions imposed during the second round. China has signed 36 oil contracts and agreements with 37 companies from 10 countries since 1979 when offshore exploration was open to foreigners. Eleven contracts were terminated after no oil was discovered. Foreign firms have invested 2.1 billion dlrs on offshore China since 1979. REUTER | CHINA CLOSES SECOND ROUND OF OFFSHORE OIL BIDS |
Japan has relaxed its limit on the establishment of securities company outlets in order to service a growing number of individual investors the Finance Ministry said. Japanese securities companies can now set up as many as 21 new outlets in the two years before March 31 1989 against the previous maximum of 13. The rules apply to outlets in department stores supermarkets and other locations convenient for individuals. Foreign securities firms are not affected by the ruling it said. REUTER | JAPAN RELAXES RULES ON SECURITIES COMPANY OUTLETS |
American Motors Corp <AMO> management has ordered a hiring freeze in view of Chrysler Corps <C> 1.5 billion dlr takeover bid a spokesman for AMC said. Analysts said the merger is virtually certain to go ahead. American Motors directors met for five hours Wednesday to review the takeover proposal. The board ... Expects to be meeting periodically over the next several weeks on the Chrysler proposal AMC said in its first formal statement since it acknowledged the Chrysler proposal on Monday. Chrysler the number three U.S. Automaker has said the merger is motivated principally by its desire to acquire AMCs profitable Jeep business and dealers as well as a new modern car assembly plant in Bramalea Ontario. That means a guaranteed future for much of AMC but it leaves in question the fate of many of its 19000-plus employees according to industry analysts. AMCs Toledo Ohio Jeep plant has 1850 hourly workers on indefinite layoff while its Kenosha Wisconsin car plant has another 2250 on layoff. REUTER | AMC IMPOSES HIRING FREEZE DUE TO TAKEOVER BID |
Rothmans International plc <ROT.L> aims to set up a joint venture with Jinan cigarette factory in Shandong China to produce high quality cigarettes some for export Chinese newspapers said. The China Daily said the factory has produced high-quality General brand cigarettes using advanced machinery and technical assistance worth 2.5 mln dlrs donated by Rothmans under a co-operation agreement signed in 1985. The Economic Daily newspaper said the high quality General will help Chinas cigarettes enter the international market. The two papers gave no more details. REUTER | ROTHMANS CLOSE TO JOINT VENTURE IN CHINA |
The net inflow of foreign investment into Australia jumped to 7.3 billion dlrs in the fourth quarter of 1986 from 4.32 billion in the third quarter and 4.55 billion a year earlier the Statistics Bureau said. The Bureau attributed the increase to a turnaround of 2.08 billion dlrs in official sector transactions and a 1.09 billion turnaround in direct investment. The turnaround in official transactions to a 1.52 billion inflow from a 555 mln outflow in the third quarter against a 520 mln inflow a year earlier was largely on account of government foreign currency borrowings it said. Direct investment recorded a turnaround to a 1.04 billion dlr inflow in the fourth quarter from a 57 mln withdrawal in the third quarter against a 546 mln inflow in the fourth quarter of 1985 the Bureau said. It said the major part of the turnaround reflected an injection of funds estimated at around 700 mln dlrs associated with the previously reported restructuring of the Australian operations of General Motors Corp <GM>. GM used the funds to pay out or take over certain Australian liabilities of its local unit <General Motors-Holdens Ltd> it said. However net borrowings remained the major part of total inflow accounting for 6.16 billion dlrs in the fourth quarter against 3.88 billion in the third quarter and 4.03 billion a year earlier the Bureau said. Net official borrowings comprised 1.52 billion dlrs against a net outflow of 548 mln in the third quarter and a 516 mln inflow a year earlier. Total private and semi-public authority net borrowings rose to 4.64 billion dlrs from 4.42 billion in the third quarter and 3.51 billion a year earlier. REUTER | FOREIGN INVESTMENT IN AUSTRALIA JUMPS IN LAST QTR |
The Soviet Union carried out a nuclear test early today the official Tass news agency reported. According to the report monitored by the British Broadcasting Corporation the explosion was at 0200 gmt. A blast on February 26 ended a 19-month unilateral test moratorium declared by the Soviet Union. Moscow blamed the end of the freeze on U.S. Refusal to join a total test ban. Tass said the latest explosion with a power of up to 20 kilotonnes had the aim of improving military equipment. REUTER | MOSCOW CARRIES OUT NUCLEAR TEST |
Taiwans maize import commitments are expected to rise to 970000 tonnes in the first four months of 1987 from 870000 tonnes a year earlier a spokesman for the Joint Committee of Maize Importers told Reuters. He said more than 75 pct of the imports come from the U.S. And the rest from South Africa. The maize import target for calendar 1987 is set at well over 3.4 mln tonnes compared with an actual 3.07 mln in 1985 he added. REUTER | TAIWAN'S FIRST QUARTER MAIZE IMPORTS SEEN RISING |
Taiwan said it would soon relax import controls on some 400 foreign items including stationery and books in a further effort to allow trading partners especially the U.S. Greater access to its markets. Taiwan announced the easing of import curbs on some 600 farm and industrial products last month a Council for Economic Planning and Development spokesman told Reuters. He said the new move was intended to balance trade between Taiwan and its trading partners. The islands trade surplus reached a record 15.6 billion U.S. Dlrs last year up from 10.62 billion in 1985. In January Taiwan cut import tariffs on some 1700 foreign products and allowed imports of U.S. Wine beer and cigarettes. We hope the measures will help reduce our trade surplus this year especially with that of the U.S. the spokesman said. Washington is pressing Taiwan to open its markets wider as a way of cutting its trade deficit with the island which rose to 2.35 billion U.S. Dlrs in the first two months of 1987 from 1.87 billion in the year-earlier period. REUTER | TAIWAN FURTHER RELAXES FOREIGN GOODS IMPORT CURBS |
International efforts to redirect Japans export-driven economy toward domestic consumption face heavy going if the countrys largest defence contractor and worlds biggest shipbuilder is anything to go by. Mitsubishi Heavy Industries Ltd <MITH.T> (MHI) which began making ships and iron goods for Japans military rulers 130 years ago is responding to the strong yen by redoubling its efforts to maintain its share of export markets. If we sell the best quality and the cheapest products everyone will buy them MHI president Yotaro Iida said. Although two of MHIs main businesses shipbuilding and power plant construction have been hit hard by the yens 40 pct rise against the dollar the company has no plans to abandon them Iida told Reuters in an interview. Its other big activity aircraft component manufacture has performed so well that MHI now accounts for half of the money Tokyo spends on defence procurement each year. We have made the utmost efforts among the worlds manufacturers to improve productivity he said. You may be surprised if you come to see our plants. The outside is old but the inside is ultra-modern with robots and computers. Securities analysts at major securities houses agreed that MHI has pared costs more quickly than its competitors. The company has slashed its workforce to 47000 from 86000 in 1976. Despite its cost-cutting MHI expects profits to drop 40 pct to 30 billion yen in the current fiscal year ending March 31 from 1985/86s record 50.14 billion. And that includes gains from the sale of MHIs stake in Mitsubishi Motors Corp <MIMT.T> for 49 billion yen. Iida is optimistic about the future however. He said a resurgence of demand from the Middle East following the recent recovery in oil prices coupled with persistent demand for power plants in developing countries will help MHI restore its exports-to-sales ratio to the past decades average of 30 pct. MHIs exports-to-sales ratio fell to 25.9 pct in the half-year ended last September from 35 to 36 pct five years ago. China is the most promising market although MHI also considers other non-oil-producing developing countries as major customers. Our customers are all seen as being in trouble due to a lack of foreign currency Iida said. But he added that he felt MHI could sell to those markets with Japanese government financial support. It can also finance the plants itself and recover its investment through product sales a strategy Iida said could prove popular in the future. In shipping MHI is fighting back against low-priced South Korean competition by building more technologically advanced carriers to carry liquefied natural gas and other products difficult to transport. Shipbuilders Association officials told Reuters MHI is the worlds largest shipbuilder in terms of orders and capacity. Domestically MHI is involved in 12 national projects including development of nuclear fusion reactors and launch vehicles for man-made satellites. It has been the biggest contractor for the Japan Defence Agencys F-15 and F-14 jet fighters and missiles although all of these have been built under licence from U.S. Firms. MHI is now heading up five Japanese companies seeking to develop the countrys own fighter plane to replace the currently used F-1 support fighters in the late 1990s. Military experts said Washington is putting strong pressure on Tokyo to buy a U.S. Plane either the McDonnell Douglas Corp F-18 or General Dynamics Corp F-16 to reduce Japans huge trade surplus with the U.S. It might be a good idea to jointly produce planes with U.S. Makers as Japan is supported by the U.S. Defence umbrella Iida said. MHI also plans to cooperate with the U.S. In its Strategic Defence Initiative space defence program by participating in the project when it moves from the research stage he said. The U.S. Has been seeking Japans technological support. In fiscal 1985/86 aircraft accounted for 17.1 pct of MHIs sales shipbuilding 17 pct and power plants 27.9 pct. Iida said the ideal ratio is power plants 30 pct aircraft and special vehicles 25 pct and shipbuilding 15 pct. As for the remaining 30 pct Iida said he wanted to shift the domestic focus away from heavy machinery sold to manufacturers and towards household goods but he declined to specify which products. By the end of this year you may find our brand name on your daily products although this does not mean we will run away from our mainstream business he said. REUTER | ECONOMIC SPOTLIGHT - MITSUBISHI HEAVY FIGHTS BACK |
Japans corporate bankruptcies in February fell 10.8 pct from January to 1071 cases and total debts dropped 49.4 pct to 149.40 billion yen the Tokyo Commerce and Industry Research Co said. February bankruptcies fell 14.9 pct from a year earlier the 26th straight monthly decline and debts fell 54.3 pct. The lower number of bankruptcies in February reflected a relaxation of money market conditions and reduced bill settlements due to fewer operating days it said. Bankruptcies caused by the strength of the yen against the dollar totalled 69 or 6.4 pct of those in February with debts of 25.52 billion yen the research firm said. This compared with 64 with debts of 125.59 billion yen in January it said. Currency-linked bankruptcies since November 1985 when the dollars depreciation against the yen began to affect Japanese export-linked firms totalled 772 with cumulative debts of 660.53 billion yen it said. The value of the yen against the dollar rose to an average 153.49 yen per dollar in February from 184.62 a year earlier. Bankruptcies usually decline in the first quarter of the year due to fewer operating days and for seasonal reasons. Bankruptcies are expected to increase in the quarter starting April 1 due to expectations of slow consumer spending low wage increases for the 1987/88 fiscal year which starts in April and slow capital spending by manufacturers the company said. Bankrupcties among export-linked subcontractors will rise due to a recent shift by major manufacturers to overseas production it added. REUTER | JAPANESE BANKRUPTCIES DECLINE IN FEBRUARY |
Cargo handling resumed at Bangladeshs Chittagong port today after 7000 workers ended their three day walk-out triggered by a pay dispute port officials said. Loading and unloading of 14 ships stranded by the strike started this morning and will be completed as quickly as possible they said. The strikers returned to work after an agreement was reached last night between port authorities and the Port Workers Association they said without giving details. REUTER | BANGLADESH PORT WORKERS END STRIKE |
The Bank of England does not favour the introduction of rules to shield companies from hostile takeover attempts its governor Robin Leigh-Pemberton said. Instead merchant banks advising bidding companies must show restraint and responsibility to avoid the excesses that have marred recent takeovers he told the Yorkshire and Humberside Regional Confederation of British Industries annual dinner. Leigh-Pemberton also called on companies to improve ties with institutional investors suggesting representatives of those institutions be granted seats on the boards of directors of companies they invest in. Boards cannot expect protection from unwelcome predators for that is but a short step from saying that they should be protected from their own shareholders -- who are after all the proprietors of the company Leigh-Pemberton said. He added takeovers and mergers had an important role to play in furthering economies of scale integration and more efficient market penetration. The degree of success or failure (of a takeover) has not in my experience depended on whether or not the takeover was contested he said. Leigh-Pemberton noted there had been excesses in takeover activity in the recent past. The aim is to pressurise a companys management into action dedicated solely to a favourable impact on the share price in the short-term partly or even primarily at the expense of the future he said. Such bids often depend for their success on creating a highly-charged and artificial situation in the share market and give rise to temptations on both sides of the battle to engage in aggressive even manipulative tactics that are immensely damaging to the interest of the shareholders he said. In a clear reference recent events he said those in the City who act for companies or individuals .. Must I suggest be ready to accept a full measure of responsibility -- even if it entails opprobrium -- for the transactions that may result. They should exercise the most careful judgment at the outset with respect to the clients for whom they act and the activities contenplated. Those who sow wind cannot expect the whirlwind to visit elsewhere he added. REUTER | LEIGH-PEMBERTON OPPOSES TAKEOVER PROTECTION RULES |
Tokyo stock index rises 157.20 to third straight record close of 21,470.20 |
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<Tonen Sekiyukagaku KK> and <Exxon Chemical Co> a petrochemical division of Exxon Corp <XON> said they agreed to accelerate a study to set up an equally-owned joint venture to make waterwhite resin in Japan. Details of the venture to be based on Exxon Chemical technology will be set later the companies said. Waterwhite resins are widely used in adhesive applications for baby nappies medical tapes and other bonding agents. Tonen is a wholly-owned subsidiary of Toa Nenryo Kogyo KK <TNEN.T> which is owned 25 pct by Exxon Corp. REUTER | TONEN SEKIYU AND EXXON UNIT STUDYING RESIN PROJECT |
Commerce Secretary Malcolm Baldrige has asked the White House to consider blocking the planned Japanese acquisition of a major U.S. Computer and semiconductor maker U.S. Officials said yesterday. The officials told reporters Baldrige had serious concerns on national security grounds about the sale of Schlumberger Ltd <SLB> unit <Fairchild Semiconductor Inc> to Fujitsu Ltd <ITSU.T>. The officials said the sale could leave the United States overly dependent on a foreign company for equipment used in advanced missiles aircraft electronics and intelligence gathering. The U.S. Officials added the sale would also worsen the strained relations between the two countries stemming from the huge Japanese trade surplus. The White House Economic Policy Council would consider the sale in the coming weeks they said. Defence Secretary Caspar Weinbergers position was not known but in the past he has opposed the transfer of high technology to foreign governments or companies. Computers made by U.S. Manufacturers are widely used in the world but Tokyo told U.S. Negotiators recently it prefers local manufacturers and would not buy U.S. Supercomputers. REUTER | JAPANESE PURCHASE OF U.S. HIGH-TECH FIRM OPPOSED |
South Korea plans to import about 387000 tonnes of cotton this year compared to 225000 tonnes in 1986 trade ministry officials said. More than three quarters of the total some 290000 tonnes will come from the United States. That will be a 93.7 pct increase on 1986 when U.S. Imports totalled 150000 tonnes an official said. He said the U.S. Increase is due partly to the competitiveness of American cotton and partly to efforts by Seoul to reduce its trade surplus with Washington. South Korea is the second largest importer of U.S. Cotton after Japan. REUTER | S.KOREA TO BUY MORE COTTON, ESPECIALLY U.S. COTTON |
The Australian Wheat Boards (AWB) 1986/87 export program is well advanced with over 10 mln tonnes already sold AWB general manager Ron Paice said. We are certainly within reach of our 15 mln tonne export target for the year he said in a statement. He did not detail the commitments already made but an AWB spokesman said they include sales to Egypt China Iran the Soviet Union and Iraq. In the 1985/86 wheat year ended September 30 the AWB exported a record 15.96 mln tonnes. Paice also said the 1986/87 Australian wheat harvest has ended after a long cool summer with 15.14 mln tonnes delivered to the AWB. The season produced another good crop with only 0.2 pct of receivals being downgraded to feed quality he said. However it is likely that some weather-damaged grain was still being held on farms and further milling and feed wheat may be delivered following the recent announcement of the final Guaranteed Minimum Price for 1986/87 he said. Paice did not give a crop estimate but the AWBs February Wheat Australia publication put the crop at 16.7 mln tonnes. But the AWB spokesman said it is likely this estimate could turn out to be too high based on the receivals level and the final crop figure would probably be nearer to 16.2 mln tonnes. The official estimate is not yet available. In the 1985/86 season the AWB received 15.08 mln tonnes of the 16.13 mln tonne crop. Another 422000 tonnes was retained on-farm and 620000 sold under the permit system introduced in 1984/85 to allow farmers to sell feed wheat to the grain trade outside the AWBs receival system according to Bureau of Agricultural Economics data. REUTER | AWB SAYS AUSTRALIAN WHEAT SALES OVER 10 MLN TONNES |
North Broken Hill Holdings Ltd <NBHA.ME> (NBH) said it will offer one <Norgold Ltd> share for every five NBH shares in the float of its newly created gold offshoot. The 20 cent par-value shares will be offered at 22 cents to shareholders registered April 3 NBH said in a statement. Norgolds issued capital will be 240.5 mln shares of which 63 pct will be held by NBH after 89 mln are issued to shareholders to raise 19.6 mln dlrs it said. Norgold will take control of a portfolio of precious metal exploration and pre-development interests held by NBH. The major gold deposit to be acquired by Norgold is 100 pct of the Bottle Creek deposit west of Leonora in Western Australia NBH said. Production of gold from the project at an annual rate of 35000 ounces is scheduled to begin early in 1988. Norgold will also have a 10 pct stake in the Coronation Hill gold/platinum project in the Northern Territory and 43 pct of the Poona copper/gold project in South Australia. Other gold exploration interests to be acquired by Norgold are in Western Australia Queensland New South Wales and Tasmania NBH said. REUTER | NORTH BH SETS ONE-FOR-FIVE OFFER FOR NORGOLD FLOAT |
The Tokyo Stock Exchange said in a statement it is considering reducing brokerage fees on yen convertible bonds. The cut would be in response to a planned increase in securities transaction tax to 26 yen per 10000 yen from 4.5 as part of the governments proposed tax reform bills securities house managers said. Under the current system investors must also pay 0.6 pct of face value as brokerage fee to securities houses for transactions involving principal over 30 mln yen. The exchanges draft revision sets brokerage fee percentage rates in inverse proportion to the size of amounts transacted market sources said. Details of rates on transactions under 30 mln yen have yet to be worked out an exchange spokesman said. The news had little immediate impact on the convertible bond market because participants are unsure when the new rates will be introduced and because the timing of parliamentary approval of the tax reform bills is uncertain due to opposition to them securities dealers said. REUTER | CONVERTIBLE YEN BOND BROKERAGE FEE MAY BE CUT |
The overseas production in yen terms of Japanese firms should rise 26 pct in 1987/88 ending March after a four pct fall in 1986/87 a Ministry of International Trade and Industry survey said. It attributed the rise to companies moving production overseas to avoid losses due to the strong yen. The survey covered 122 major firms in 17 sectors. The survey called for bold moves to stimulate domestic demand to achieve the governments goal of 3.5 pct gross national product growth in 1987/88. A package of economic measures to boost the economy is expected next month. The survey said Japanese car output in the United States and Canada would jump to two mln vehicles in fiscal 1990 from 617000 in 1986 and worldwide electronic appliance output would rise 31.7 pct. Domestic unemployment is likely to reach four pct or about 2.5 mln jobless in fiscal 1990 from three pct now if current trends continue. Recruitment in the car industry is expected to fall by 35 pct in 1987/88 and by 40 pct in the electronics sector. The steel industry plans to cut its 150000 workforce by 27 pct by the end of 1990/91 and the shipbuilding coal and non-ferrous metal industries all plan big cuts in 1987/88. REUTER | JAPAN'S OVERSEAS OUTPUT FORECAST TO RISE 26 PCT |
Striking seamen said they would offer their collective resignation rather than end their 13-day-old national strike on managements terms. The seamen said they were spurred to their decision after marines occupied the ship Docemarte in Santos harbour Tuesday night. They said seamen on the vessel were being forced to work under duress. President Jose Sarneys government despatched troops to Brazils ports and oil installations on Tuesday. Seamen in Santos Brazils main port are in defiant mood. One of their leaders Orlando dos Santos told Reuters that most of the 1100 seamen in the port offered their resignations on Wednesday. The national strike headquarters in Rio de Janeiro said seamen were offering to resign in all the countrys main ports. The strike by 40000 seamen comes as Brazil faces a serious debt crisis brought on by a sharp deterioration in its trade balance. The country needs all the foreign exchange it can get and shipowners have been quick to denounce seamen for the harm the strike is doing to exports. An advertisement placed in the newspapers by the Shipowners Association read The seamens strike is illegal irrational and unpatriotic. The seamen respond that they cannot live on their present salaries. According to officical pay lists available in the unions office the basic pay for ordinary seamen is 1977 cruzados a month while various allowances can bring their total pay up to 4000 cruzados a month. At the other end of the scale captains earn 7993 cruzados a month basic pay which is brought up to 15229 cruzados with allowances. Brazils seamen are the second worst paid in the world after Ghanas dos Santos said. He said the seamen had not received a pay increase since February 1986 and prices have doubled since then with the collapse of the governments Cruzado Plan price freeze. Talks in Rio de Janeiro Wednesday involving Labour Minister Almir Pazzionotto seamen and employers failed to resolve the dispute. The seamen are demanding pay raises of about 200 pct but have been offered less than half that. REUTER | STRIKING BRAZIL SEAMEN THREATEN MASS RESIGNATION |
German net currency reserves rise 400 mln marks to 87.0 billion - Bundesbank |
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Indonesias coffee production in 1986/87 ending September 30 may fall slightly from last years level of 360000 tonnes Dharyono Kertosastro chairman of the Association of Indonesian Coffee Exporters told Reuters. He said shade trees had been damaged by pests and this may have affected the crop though it remains to be seen how seriously. Indonesias main crop is harvested next month. He gave no figure for expected output except to say it would probably be down a little from 1985/86. He said stocks were about normal at 90000 tonnes. Kertosastro predicted that exports were unlikely to rise much from last years level of 320000 tonnes. I expect exports will be a bit more maybe 330000 tonnes but not above that he said. Exports in 1985/86 were valued at 944 mln U.S. Dlrs but the value could fall by 30 pct this year because of low prices he added. Dharyono said production was behind a five year plan target of 420000 tonnes for the current year but Indonesia is trying to boost output through introduction of higher yielding seeds better training for farmers and increased use of fertilizers. REUTER | INDONESIAN COFFEE PRODUCTION MAY FALL THIS YEAR |
<Renouf Corp Ltd> said it sold its 10.83 pct stake in <NZI Corp Ltd> to <Brierley Investments Ltd> (BIL) for 207.7 mln N.Z. Dlrs. Renouf managing director Mike Cashin said in a statement it had been Renoufs intention to build up a long-term strategic position in NZI. But it became clear to us that it was in the best interests of both NZI and ourselves for Brierley Investments to acquire our holding he said. He said Renouf built up its NZI holding over the past six months. The sale comprised 74.9 mln shares at 2.725 N.Z. Dlrs a share and 2095 warrants at 1709 dlrs each. The warrants are attached to a 150 mln Swiss franc note issue. Each bond of 5000 francs carries a detachable warrant entitling the bearer to 2486 NZI shares. In its 1986 annual report BIL reported that it held a 19 pct stake in NZI. NZI has 673.4 mln ordinary shares on issue. Total capital including shares attached to warrants is 678.8 mln shares. Cashin said the sale will result in a significant profit and places Renouf in a good position to consolidate on recent transactions and pursue other opportunities. NZI shares were at 2.18 N.Z. Dlrs BIL at 4.08 and Renouf at 6.15 at the close of trading. BIL executives were unavailable for comment. REUTER | RENOUF SELLS 10.83 PCT NZI STAKE TO BRIERLEY |
Group loss after financial income and expenses 1.08 Billion vs loss 71 mln crowns Sales - 12.38 billion crowns vs 6.16 billion. No proposed dividend vs 10 crowns. Note - The company this year consolidated wholesale and investment conglomerate Ahlsell AB. REUTER | BOLIDEN AB <BLDS ST> 1986 RESULTS |
Britain will from next autumn mint and market a new bullion coin called the Britannia containing one ounce of 24 carat gold together with bullion coins of smaller denominations a Treasury official said. The new investment coin to be sold worldwide will fluctuate in price according to the international price of gold. The smaller coins will be in denominations of a half ounce a quarter ounce and a tenth of an ounce. REUTER | BRITAIN TO MINT NEW "BRITANNIA" GOLD COIN |
Saudi Arabias 11 commercial banks are reporting a further decline in profits for 1986 as increasing provisions have to be set aside to cover the burden of non- performing loans. Bankers in the Saudi capital said the need to build reserves for bad and doubtful debts may start to decline a little this year. But the kingdoms still sluggish economy and legal problems hampering traditional lending operations mean earnings will remain vulnerable. One senior bank credit officer said The work is largely done in terms of identifying bad loans and making provisions but banks are still going to face difficulties earning money. The sudden decline of Saudi Arabias corporate sector in 1983 - culminating in a number of debt reschedulings - has taken a heavy toll of bank profits with first results now appearing for 1986 showing a fourth successive year of broad decline. The cumulative net 1985 earnings of the kingdoms banks had sunk to 827.9 mln riyals from 2.66 billion in 1982 before world oil prices tumbled. Of the kingdoms nine joint-venture banks which operate on the Gregorian calendar year four have already reported and revealed a further profits decline - or net loss - for 1986 at the expense of increased provisions. The newest and smallest of the joint ventures <United Saudi Commercial Bank> (USCB) reported a 1986 net loss of 15.9 mln riyals marginally less than 1985s shortfall of 17.0 mln. Profits before provisions were sharply higher in part reflecting an 18 pct staff cut last year. But the bank nearly trebled the amount set aside against bad and doubtful loans to 60 mln riyals from 22 mln in 1985. Other results released so far show <Saudi American Bank> (SAMBA) reporting a 53.8 pct fall in 1986 net profit to 80.7 mln riyals while <Al Bank Al Saudi Al Fransi> known as Saudi French slid 14 pct to 94.9 mln riyals. Both Saudi American owned 40 pct by Citicorps <CCI.N> Citibank NA and Saudi French 40 pct owned by Banque Indosuez increased provisions sharply. <Arab National Bank>s net profit fell 17.8 pct to 152.1 mln riyals and provisions were more than doubled to 86.6 mln riyals. Bankers said there are first signs that the number of non- performing loans has stopped growing as the decline in the Saudi economy bottoms out. Few are willing to predict a sharp upturn in economic activity but one banker said The top 50 pct of the Saudi banks are now at or close to international levels on provisions. From 1982 to 1985 the kingdoms largest bank <National Commercial Bank> (NCB) stashed away 1.7 billion riyals in provisions or 8.9 pct of its total loans and advances to the private sector bankers calculated. Between 1982 and 1985 <Riyad Bank> NCBs rival as the second biggest of the two all-Saudi shareholding banks had covered 12.8 pct of its loans and advances. Both banks operate on an Islamic year that does not coincide with the other nine. Although the Saudi Arabian Monetary Agency (SAMA) has been tightening supervision there is still no standardised rule for declaring loans as non-performing. Bankers say this makes comparison of profit figures difficult because some banks still book non-accruing interest as revenue while others follow more conservative practices in force in major world financial centres. Bankers generally said NCB Riyad Bank and the joint-ventures SAMBA Saudi French and Arab National Bank rank as the strongest earners. Other banks such as <Saudi British Bank> 40 pct owned by the <British Bank of the Middle East> are disadvantaged by a relatively low deposit base. Saudi British slashed 1985 profit 91 pct to just 9.1 mln riyals and 1986 accounts due soon are expected to show another low figure. But the bank has traditionally been one of the most conservative in making provisions. Bankers said SAMA has proved it is not prepared to see a Saudi bank go under and not only supported <Saudi Cairo Bank> after its troubled 1985 accounts came to light but also made available cheap deposits to <Saudi Investment Bank> and USCB. The banks can on-lend these to generate profit but generally banks are awash with liquidity since they are unwilling to risk incurring fresh non-performing loans. And while banks in more liberal financial markets can attempt to diversify away from traditional lending conservatism in Saudi banking has made it difficult to generate fee income from new investment banking products. One banker said Operating earnings in the Kingdom are not good. Reflecting the caution in new lending the amount of advances is showing a declining trend while the days when banks had ample funds in interest-free current accounts to invest are disappearing as Saudi customers seek a better return on their money. In 1979 the ratio of interest-bearing accounts to current accounts was 27 to 73 pct. Today only about 40 pct of customer funds are held on current account. REUTER | SAUDI BANKS FACE FURTHER LEAN PERIOD |
The Bank of Japan will sell tomorrow 200 billion yen of financing bills under a 50-day repurchase agreement maturing on May 2 to help absorb a projected money market surplus due largely to distribution of local allocation tax ahead of the March 31 fiscal year-end money traders said. The yield on the bills for sales to banks and securities houses from money houses will be 3.9496 pct against the 3.9375 pct discount rate for two-month commercial bills and the 4.46/37 pct yield today on two-month certificates of deposit. The operation will put outstanding bill supply at about 1500 billion yen. REUTER | JAPAN TO SELL 200 BILLION YEN IN BILLS, TRADERS |
Guinness Plc <GUIN.L> the brewing group has challenged a 5.2 mln stg payment to a U.S. Lawyer who says he organised its controversial takeover of Scotch whisky maker <The Distillers Co Plc>. But attorneys for lawyer Thomas Ward a member of the Guinness board told a court yesterday in the Channel Island of Jersey that Ward saw the payment as his reward for services in last years 2.7 billion stg takeover. Britains Department of Trade and Industry is investigating the takeover. Guinness says its former chairman Ernest Saunders and Ward breached their fiduciary duty in authorising the payment to Ward via a Jersey-based company Marketing and Acquisitions Consultants and has gone to the Jersey court to recover it. MAC said in defence documents that Ward was the main negotiator in the battle for Distillers against rival bidder Argyll <AYLL.L> Group Plc. The bid would not have been successful but for the ... Services of Mr Ward MAC attorneys said in the documents submitted in court. The payment was in all the circumstances reasonable proper and fully earned. REUTER | GUINNESS CHALLENGES 5.2 MLN STG PAYMENT TO LAWYER |
Britains ruling Conservatives have moved into a six-point lead over the main opposition Labour Party a Marplan poll published in todays Guardian newspaper reports. The Conservatives are shown with a 38 pct share of the vote against 32 pct for Labour and 27 pct for the centrist Social-Democratic/Liberal Alliance. Prime Minister Margaret Thatcher has until June 1988 to call a general election but most political analysts expect her to go to the country some time this year. REUTER | NEW U.K. POLL SAYS TORIES HAVE SIX-POINT LEAD |
Indonesian coffee exporters are preparing for a period of depressed prices while urging their government to lobby for a resolution of the deadlocked issue of export quotas the chairman of the Association of Indonesian Coffee Exporters (AICE) told Reuters. Dharyono Kertosastro said in an interview that Indonesia the worlds third largest producer is trimming costs and improving its marketing while seeking a compromise on quotas. But as long as Brazil sticks to its hardline position we can never bridge the gap Dharyono said. Indonesia was one of a group of eight producing countries along with Costa Rica the Dominican Republic Ecuador Honduras India Papua New Guinea and Peru which proposed a new quota system at last months failed International Coffee Organistion (ICO) talks in London. Brazil which would have had its quota reduced under the Group of Eight scheme blocked the proposal. AICE officials are now hoping Colombia can use its contacts with Brazil to suggest a compromise. Edward Muda an AICE official who attended the ICO negotiations said Latin American members of the Group of Eight were in contact with Colombia the worlds second largest producer but gave no details. Colombia has shown interest because they will gain from a compromise. Without one they will suffer if the present market stays like it is Muda said. He said Indonesia was in contact with consumers such as the U.S. Japan the Netherlands West Germany and Canada ahead of an ICO executive board meeting scheduled for April 1. Dharyono said the AICE will send delegations to the U.S. And Japan to brief Indonesian embassy officials there and press them to present Indonesias case more firmly. He urged the Indonesian government to do more to help the countrys coffee traders through the ICO negotiations. Muda said the Group of Eight had some common ground with the big consumers because they agreed on the need for basing quotas on what he termed realistic criteria. The breakaway group believes the old quota system which gives Brazil a 30 pct share of the quota exports does not reflect up-to-date supply and demand trends. Brazil has stuck rigidly to its insistence that the old system be applied. Export quotas were suspended in February 1986 when market prices surged because of the failure of the Brazilian crop. Although prices have long since come down to a point where export controls could be reintroduced producers and consumers at the 75-member ICO have not been able to agree on new guidelines. Brazil and the U.S. The largest consumer are both refusing to alter their positions. Dharyono said if new quotas are not agreed he believed Indonesia was well placed to survive low prices. Indonesian farmers are trimming production costs and the AICE is improving its marketing system Dharyono said. Indonesias coffee output in 1986/87 ending September 30 is expected to stagnate or fall slightly from last years level of 360000 tonnes he said. He said stocks at 90000 tonnes were about average for the time of year. REUTER | INDONESIA PRESSING FOR COMPROMISE OVER COFFEE |
The convertible eurobond issue announced yesterday for Genentech Inc <GENE.O> has been increased to a total of 150 mln dlrs from 100 mln Credit Suisse First Boston Ltd (CSFB) said as lead manager. The coupon has been set at five pct and conversion price at 74 dlrs per share which represents a 23.85 pct premium over Genentechs stock closing level of 59.75 on the New York Stock Exchange last night. Payment date has been brought forward to March 27 from March 30 and the bonds will mature on March 27 2002. REUTER | GENENTECH CONVERTIBLE BOND UPPED TO 150 MLN DLRS |
Hydro Quebec is issuing a 125 mln Canadian dlr bond due April 21 1997 paying nine pct and priced at 100-3/4 pct lead manager Merrill Lynch International said. The bond is available in denominations of 1000 and 5000 dlrs and will be listed in Luxembourg. Fees comprise 1-1/4 pct selling concession and 3/8 pct each for management and underwriting. Pay date is April 21. REUTER | HYDRO QUEBEC ISSUES CANADIAN DLR BOND |
Japanese corporate earnings will rise 8.9 pct in fiscal 1987/88 for the first year-on-year increase in three years partly because of the yens stable exchange rate the Nomura research institute said. Sales of all industries are predicted to rise 1.9 pct in the year which starts April 1 the research arm of Nomura Securities Co said in a statement. Recurrent profits were estimated to fall 20 pct in the current fiscal year with sales forecast to drop 14 pct. The forecast assumes an average rate of 148.5 yen to the dollar in 1987/88 compared with 160 yen in the current year. Corporate efforts to cope with the yens appreciation such as cutting production costs are expected to bear fruit next fiscal year the institute said. The economy should also benefit from pump-priming expected from the government and a halt in rising prices of manufactured goods it said. Recurrent profits of manufacturing industries are projected to rise 29.6 pct next fiscal year against an estimated 40.1 pct fall in the current year. Non-manufacturing sector profits will decline 4.5 pct in 1987/88 against an estimated 2.2 pct rise in the current year it said. REUTER | JAPANESE CORPORATE EARNINGS RECOVERY PREDICTED |
Swedish mining and metals group Boliden AB <BLDS ST> forecast a return to profitability during 1987 after recording a 1.08 billion crown 1986 loss burdened by a massive write-off. The company which consolidated the Swedish wholesale and investment conglomerate <Ahlsell AB> this year said the result included restructuring costs and write-offs of 802 mln crowns. These costs have arisen as a results of a change of direction for the group. They are mainly one-off but they have burdened the annual accounts the company said in a statement. Boliden said the companys liquid assets were 1.36 billion crowns at year-end which together with an investment portfolio of 1.60 billion made it one of the most liquid Swedish companies. As a result of the 1986 losses the board proposed cancelling dividend for the year although it predicted a return to profitability during 1987 the statement added. Swedish tyres process equipment and components firm <Trelleborg AB> has taken a majority stake in Boliden since the beginning of this year. Trelleborg then said it had no plans for consolidating Boliden. REUTER | BOLIDEN SAYS RESULTS BURDENED BY LOSS WRITEOFF |
The joint committee of Taiwans soybean importers awarded a contract to Richco Grain Ltd of New York to supply a 27000-tonne cargo of U.S. Soybeans a committee spokesman told Reuters. The shipment priced at 210.34 U.S. Dlrs per tonne c and f Taiwan is set for delivery between March 20 and April 5 he said. Taiwans soybeans imports in calendar 1987 are targetted at 1.81 mln tonnes against an actual 1.74 mln tonnes imported in 1986 he said. All the imports come from the U.S. He added. REUTER | TAIWAN BUYS 27,000 TONNES OF U.S. SOYBEANS |
Chinas wheat imports in January were 218000 tonnes down from 393000 in January 1986 the China Daily Business Weekly said quoting customs figures. It said imports of sugar were 25165 tonnes down from 54000 but exports of rice rose to 71144 tonnes from 20000. It gave no more details. REUTER | CHINA JANUARY WHEAT/SUGAR IMPORTS BELOW YEAR AGO |
The French 1986 current account balance of payments surplus has been revised slightly upwards to 25.8 billion francs from the 25.4 billion franc figure announced last month the Finance Ministry said. This compares with a 1.5 billion deficit in 1985 and while it is the first surplus since 1979 is substantially lower than the 50 billion surplus forecast by the previous socialist government before they lost office in March last year. Net long-term capital outflows rose sharply to 70.5 billion francs last year from 8.8 billion in 1985 largely due to a major program of foreign debt repayment the ministry said. In the fourth quarter alone the unadjusted surplus rose to 14.1 billion francs from 6.6 billion the previous quarter but the adjusted surplus fell to 7.4 billion from 9.1 billion. Fourth quarter medium and long-term foreign debt repayments exceeded new credits by 11 billion francs. REUTER | FRENCH 1986 CURRENT ACCOUNT SURPLUS REVISED |
Salomon Brothers international inc said it has raised the size of its Collateralised Mortgage Obligation TRUST 23 to 350 mln dlrs from the 228 mln dlrs announced yesterday. All other terms of the issue remain the same Salomon said. REUTER | SALOMON RAISES SIZE OF CMO TO 350 MLN DLRS |
Malaysias Central Bank Bank Negara said the economic outlook for 1987 is good in view of a marked improvement in commodity and oil prices in the later months of last year. It said in its latest quarterly review that real gross domestic product averaged an annual growth of 1.1 pct over the first nine months of last year compared with a decline of 0.1 pct in the corresponding period in 1985. Growth was generated mainly by the manufacturing sector it added. REUTER | MALAYSIA OPTIMISTIC OVER ECONOMIC OUTLOOK FOR 1987 |
Rowntree Mackintosh Plc <RWNT.L> announced it made a pretax profit of 84 mln stg in the 53 weeks ending January 3 1987 compared with 79.3 mln stg in the previous year. Turnover was up to 1.29 billion stg from 1.2 billion. A final dividend of 9.2p was proposed after a final 8.2p last year. Earnings per share rose to 35p from 34.8p. The results were broadly in line with market expectations leaving shares at 499p in early trading up one pence from yesterdays close but slightly off pre-announcement opening levels. Profit on ordinary activities after tax was 66.2 mln stg up from the previous years 60.7 mln. The U.K. Remained Rowntrees largest centre for trading profits accounting for 47.9 mln stg up from 45.3 mln in 1985. Profit from its second largest geographical area North America slipped to 34.7 mln stg from 37.2 mln. North American profits were affected by the fall of the value of the dollar. Operations in continental Europe made 7.8 mln stg in trading profit up from 3.4 mln with 4.0 mln stg made in Australasia up from 2.3 mln and 11.3 mln stg from the rest of the world against 13.1 mln in the previous year. Extraordinary items amounted to a 11.3 mln debit after a 16.5 mln debit previously. A company spokesman said this represented additional provisions for the cost of rationalisation plans announced in earlier years. Rowntree expects North American operations will this year ahead of company expectations be of the same order as those from the U.K. And the rest of Europe combined the statement said. A spokesman said no specific figures had been forecast. Acquisitions will continue to be sought worldwide including further moves in the speciality retailing business which Rowntree first entered in 1983 the statement said. Rising profit from Europe this year was forecast by chairman Kenneth Dixon in a statement. He added the performance of seven businesses bought last year was encouraging. The U.K. Confectionery side gained market share and increased trading margins. The Sun-Pat British grocery concern increased profit and Rowntrees small health food business Holgates raised earnings 10-fold the statement said. Offsetting factors included currency movements which cost the company nearly 5.0 mln stg. Sales tax hurt Canadian profits on confectionery operations and the company faced strong competition in the U.K. Snack and Mid East export markets. REUTER | ROWNTREE REPORTS PRETAX PROFIT AT 84 MLN STG |
New Zealands budget deficit in the 10 months to January widened to 4.37 billion N.Z. Dlrs from 3.41 billion in the 10 months to January 1986 government figures show. Revenue rose to 12.92 billion dlrs from 10.82 billion while spending climbed to 17.28 billion from 14.24 billion. Taking into account expenditure on major energy project debt totalling 2.28 billion as against nothing in the earlier period total net expenditure was 19.57 billion dlrs. Finance Minister Roger Douglas said in a statement the deficit was on course for the year-end forecast. Douglas said Net expenditure to this point in the year was about as we would have expected it to be while revenue was slightly ahead of forecast. He said Revenue before provisional tax flows is looking encouraging at this stage in the year. But he said considerable uncertainty remains about the year-end revenue result because of difficulty predicting the size of March tax collections. REUTER | N.Z. BUDGET DEFICIT WIDENS IN 10 MONTHS TO JANUARY |
Frances Oilseed and Bean Cooperatives Federation FFCOP said it expected French rapeseed sowings for the 1987 harvest to rise by between 54.6 pct and 67.5 pct to between 600000 and 650000 hectares from 388000 planted last year. Its latest estimates also suggested a 66.7 pct rise in soybean sowings to 80000 ha from 48000 last year. Sunflower sowings were expected to increase by between 8.6 pct and 14.6 pct from 829000 ha. Pea sowings are estimated likely to rise 27.7 pct to 350000 ha against 274000 while field bean sowings are forecast unchanged at 40000. REUTER | RISE SEEN IN FRENCH RAPESEED, SOYBEAN SOWINGS |
Chinas trade deficit in January fell to 310 mln dlrs from 460 mln in January 1986 the China Daily Business Weekly said. Quoting customs figures the paper said exports fell to 1.75 billion dlrs from 1.84 billion and imports fell to 2.06 billion from 2.3 billion. REUTER | CHINA TRADE DEFICIT FALLS IN JANUARY |
Net 190.9 mln Swiss francs vs 150.4 mln Turnover 5.24 billion vs 5.38 billion Dividend 160 per bearer vs 155 francs 32 francs per registered vs 31 francs 16 francs per participation certificate vs 15.50 francs Cash flow 294.3 mln vs 242.6 mln Note - Confirms forecast of results issued in January. Operating profit 337.6 mln vs 265 mln Depreciation 103.4 mln up 12.2 pct Capital spending 84.6 mln down 15.7 pct. REUTER | JACOBS SUCHARD AG <JACZ.Z> 1986 YEAR |
Swedens Telefon AB L.M. Ericsson <ERIC ST> said one of its units won a contract worth 7.5 mln dlrs from the West German PTT taking the value of orders signed with the Bundespost in the past few days to 47.5 mln dlrs. The latest order for Ericsson Information Systems is for 2000 Alfaskop computer terminals to be supplied over the coming two years the company said in a statement. On Tuesday the Ericsson subsidiary announced a 40 mln dlr contract from the Bundespost to deliver personal computers and related equipment. REUTER | ERICSSON WINS SECOND BUNDESPOST ORDER |
British Telecom third quarter pre-tax profit 506 mln stg vs 452 mln |
|
The Bank of England said it had invited the discount houses to make an early round of bill offers to help offset a large liquidity shortage in the money market. It estimated the shortage at around 1.55 billion stg one adverse factor being the unwinding of a sale and repurchase agreement with the market having to buy back bills worth 542 mln stg from the Bank. Bills maturing in official hands and the treasury bill take-up would drain 957 mln stg wile exchequer transactions and a note circulation rise would take out 15 mln and 25 mln respectively. Above target bankers balances would add 10 mln. REUTER | BANK OF ENGLAND OFFERS EARLY HELP IN MONEY MARKET |
Shr 5.1p vs 4.2p making 15.3p vs 12.7p for nine months. Pre-tax profit 506 mln stg vs 452 mln making 1.51 billion stg vs 1.35 billion. Net profit before minorities 320 mln vs 268 mln making 960 mln vs 807 mln. Note - Companys full name is British Telecommunications Plc <BTY.L>. Third quarter turnover 2.40 billion stg vs 2.11 billion making 7.01 billion vs 6.16 billion for nine months. Operating profit 578 mln vs 520 mln making 1.72 billion vs 1.56 billion. Net interest payable 72 mln vs 68 mln making 208 mln vs 203 mln. Tax 186 mln vs 184 mln making 552 mln vs 547 mln. Minorities nil vs nil making two mln vs nil. REUTER | BRITISH TELECOM 3RD QTR ENDED DEC 31 |
The Bank of England said it had bought bills worth 1.059 billion stg from the market for resale on March 31 at rates of interest between 10-7/16 pct and 10-17/32 pct. Earlier the Bank said it estimated the liquidity shortage in the market today at around 1.55 billion stg. REUTER | U.K. MONEY MARKET GIVEN EARLY ASSISTANCE |
Denmarks seasonally adjusted unemployment rate rose to 7.9 pct of the workforce in January from 7.8 pct in December unchanged from January 1986 the National Statistics Office said. The total of unemployed in January was 216200 against 212200 in December and 216600 in January 1986. REUTER | DANISH UNEMPLOYMENT RISES TO 7.9 PCT IN JANUARY |
Shr 35.0p vs 34.8p Div final div 9.2p vs 8.2p Pretax profit 84.0 mln stg vs 79.3 mln Net after tax 66.2 mln vs 60.7 mln Turnover 1290.4 mln vs 1205.2 mln Trading profit 105.7 mln stg vs 101.3 mln consisting - U.K 47.9 mln vs 45.3 Europe 7.8 mln vs 3.4 mln North America 34.7 mln vs 37.2 mln Australasia 4.0 mln vs 2.3 mln Rest of world 11.3 mln vs 13.1 mln REUTER | ROWNTREE MACKINTOSH PLC<RWNT.L> YEAR TO END JANUARY |
Taiwans new controls on currency inflows implemented today are a desperate bid to stem a flood of speculative money prompted by the local currency surge against the U.S. Dollar local and foreign bankers said. The central bank now has to clear remittances exceeding one mln U.S. Dlrs earned from exports shipping and insurance and bank lending plus remittances of more than 10000 dlrs from any other source. Petitioners have to show their remittances relate to genuine commercial transactions. Meanwhile traders are no longer required to report all outward payments concerning invisible trade including freight insurance and royalties to the central bank. But bankers said they believed the new controls would be ineffective since businessmen could split up remittances into smaller units or simply remit money through Taiwans flourishing currency black market. The bankers said the controls announced on March 6 are a panic reaction to U.S. Pressure which has intensified over the past week for a faster appreciation of the Taiwan dollar to slow the growth of Taiwans exports to the U.S. The government has denied local press reports Washington is pressing for an exchange rate of up to 28 dlrs. The Taiwan dollar opened four cents up today at 34.70. I dont think the central bank has a final target said an executive with a U.S. Bank. Other bankers and economists said they are wary of making any firm predictions about how far the Taiwan dollar will rise. Taiwans trade surplus with the U.S. Hit 13.6 billion U.S. Dlrs last year against 10.2 billion in 1985. The surplus widened in the first two months of the year to 2.35 billion dlrs from 1.87 billion in the same period last year. Economists estimate up to five billion dlrs in speculative money flowed into Taiwan in 1986. This inflow helped boost foreign exchange reserves to more than 51 billion dlrs from just under 25 billion this time last year and provided further upward pressure on the currency. The Taiwan dollar has appreciated by almost 15 pct against the U.S. Currency since September 1985 further encouraging speculators. Central bank governor Chang Chi-cheng said last week Washingtons pressure plus rising foreign exchange reserves meant a further strengthening in the currency is inevitable. Many local bankers argue the only effective solution to the currency problem is to drop foreign exchange controls and allow the local dollar to find its own level. Lifting exchange controls is the final answer but the central bank is not prepared to do it. It simply does not want to take the risk said one local banker. He said he believed the new restrictions are a temporary measure designed to buy time as the central bank grapples with the exchange rate problem. The restrictions are a bureaucratic imposition and skirt around the real issue he said. Taiwan needs a fundamental restructuring of foreign exchange controls said an executive with a western bank. The controls will create more paperwork but the extra bank charges will not outweigh the profits of speculation said the manager of a European bank. Economists criticised the controls saying they could antagonise Washington which is pushing for further economic liberalisation in Taiwan. Instead of liberalising outflows the government has restricted inflows said Kate Newman an economist with Vickers da Costa. A local banker who declined to be named said Its basically ridiculous. Its a backward movement and goes against the governments liberalisation programme. Taiwan last year eased some of its financial regulations to enable Taiwan nationals to invest in foreign government bonds treasury bills and certificates of deposit and to allow individuals to take 5000 U.S. Dlrs in cash out of the country each year. REUTER | TAIWAN CLAMPS NEW CONTROLS ON CURRENCY INFLOWS |
Shr net basis 27.47p vs 22.15p Div 6.5p vs 5.4p making 10.1p vs 8.4p Pretax profit 46.1 mln stg vs 35.6 mln Net after tax 30 mln vs 23.3 mln Extraordinary items debit 3.8 mln vs debit 2.3 mln Interest payable 2.7 mln vs 4.0 mln Net borrowings 7.6 mln vs 16.1 mln Turnover 478.9 mln vs 464.1 mln REUTER | GLYNWED INTERNATIONAL PLC <GLYN.L> 1986 YEAR |
Toyota Motor Credit Corp is issuing a 23 billion yen eurobond due April 10 1992 paying 4-1/2 pct and priced at 101-1/2 pct lead manager Nomura International Ltd said. The bond is available in denominations of one mln yen and will be listed in Luxembourg. Payment is April 10. Fees comprise 1-1/4 pct selling concession and 5/8 pct for management and underwriting combined. REUTER | TOYOTA MOTOR CREDIT ISSUES 23 BILLION YEN BOND |
Dutch sugar traders deny involvement in a plan to offer more than 850000 tonnes of sugar to intervention in protest at EC export policy and prices traders told Reuters. Although some 2500 tonnes of sugar have been offered to intervention in the Netherlands Dutch producers and traders said this sugar was actually Belgian and was being offered by the Belgian industry. We sympathise with the actions of the French West German and Belgian traders and producers but we are not party to it a spokesman said. EC Commission sources said yesterday French traders planned to sell 775000 tonnes into intervention stocks West German traders 75000 tonnes and Dutch traders 2500. Dutch trade sources gave the same figure for France but estimated up to 110000 tonnes offered by German traders and producers. The Dutch spokesman added The weekly export tender policy and prices are squeezing the European sugar industry and this is the only way in which they can really register their protest. These are desperate actions but we believe that most of this offered sugar will be withdrawn within the three-week breathing space allowed. REUTER | DUTCH SUGAR TRADE DENY INVOLVEMENT IN OFFER |
Glynwed International Plc <GLYN.L> in a statement accompanying their results that present indications are that 1987 has started well and it is confident that the year will be one of further progress. The company added that results in the U.S. Were poor and the deterioration in the South African economy left its Falkirk Industries unit with a loss of one mln stg. But it said there was a continuing improvement in its core businesses. The extraordinary items debit of 3.8 mln stg arose on the closure and disposal of various businesses. REUTER | GLYNWED SEES FURTHER PROGRESS IN 1987 |
British Telecommunications Plc <BTY.L> expects to announce satisfactory results for its 1986/87 financial year ending March chairman Sir George Jefferson said in a third quarter statement. Full year results will be published in June. In the 1985/86 financial year pre-tax profit rose to 1.81 billion stg from 1.48 billion in the previous period. Jefferson said good progress was made in the latest nine months while most customers were able to maintain their normal level of calls during the recent strike by company engineers. The statement said a positive cash flow of 381 mln stg for the first nine months will diminish in the final quarter due to corporation tax and dividend payments. Earlier the company reported third quarter pre-tax profit for the period ended December 31 of 506 mln stg compared with 452 mln a year earlier. Nine month pre-tax was 1.51 billion stg against 1.35 billion. British Telecom shares were last quoted at 246-1/2p level with late yesterday in the wake of results which were in line with market expectations dealers said. REUTER | BRITISH TELECOM SEES SATISFACTORY 1986/87 RESULTS |
India yesterday bought two cargoes of white sugar from London traders for April/May shipment and granted the trade houses the option to sell an additional two cargoes at the same price for May/June shipment the firms involved said. E D and F Man and Woodhouse Drake and Carey both said they sold single cargoes at 237.35 dlrs a tonne cif for April/May and were granted options to sell an extra cargo each at the same price for May/June at the Indian buying tender for three to four cargoes of whites held yesterday. The tender had called for a single cargo of prompt and two to three cargoes of April/May. REUTER | INDIA BUYS WHITE SUGAR FROM LONDON TRADERS |
Shr 7.67p vs 5.34p Div 1.5p vs 1.08p Pretax profit 30.12 mln stg vs 12.40 mln Net interest payable 2.55 mln vs 200 stg Net after tax 19.58 vs 7.44 mln Turnover excluding VAT 257.66 mln vs 74.09 mln Note - The company said it intends to issue a second interim statement for the six months to July 1987 and to pay a related dividend in early 1988. REUTER | <NEXT PLC> <NEXL.L> FIVE MONTHS TO END JANUARY |
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