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Shr 16 cts vs 16 cts prior qtr Pay May 15 Record April 17 Reuter | DI GIORGIO CORP <DIG> QTLY DIVIDEND |
A high-level meeting last week which included the Secretary of Agriculture and other senior USDA officials along with leaders of the major soybean lobbying groups failed to reach any decision on what should be done about the soybean loan level participants at the meeting told Reuters. We didnt feel a lot was accomplished last week but we were delighted to meet with the Secretary and he didnt close the door on anything a member of the soybean delegation said. At issue is the current soybean loan and the fact that at the present level of 4.77 dlrs (without Gramm-Rudman reductions) it encourages foreign soybean production by making soybeans more profitable to grow than corn. But while recognizing that soybeans are priced too high in relation with corn soybean groups have pledged their support to maintaining current price supports for soybean growers. Leaders of the American Soybean Association and the National Soybean Processors Association offered specific loan options to USDA Secretary Lyng in last weeks meeting but participants would not reveal what those options were. There were no surprises in our package one participant said. Bandied about for several weeks has been the idea of offering producers soybean loans partially in cash and in certificates. The most prevailing scheme would be to pay a 4.77 loan with 77 cts worth of soybean-specific certificates which would not have to be paid back and the remaining four dlrs in cash. This would have the effect of lowering the world price maintaining domestic support levels and reducing the governments soybean inventory. A marketing loan for soybeans was not discussed at last weeks meeting participants said. One member of the soybean delegation said that the meeting was a listening session for USDA and that the proposals will now be studied further by the Department. USDA officials however would not commit to any time frame. Participants in the meeting do not look for changes in the soybean loan to be announced in the near future. USDA is very sensitive about saying anything that could influence the market so the Secretary was very non-committal a participant said. Reuter | SOYBEAN GROUPS MEET WITH LYNG TO DISCUSS LOAN |
Delegates from across Latin America and the Caribbean opened a five-day meeting here today aimed at mapping a regional strategy for this years meeting of the United Nations Conference on Trade and Development (UNCTAD). Representatives from 26 nations are participating in the talks here which well-placed sources said would focus on Latin Americas staggering foreign debt and efforts to pull the region out of its worst economic nosedive in more than half a century. UNCTADs annual meeting is scheduled for July in Geneva. In april developing countries belonging to the so-called group of 77 will attempt to hammer out a common position for the UNCTAD conference at a preparatory session in Havana Cuba. Reuter | LATIN NATIONS SET STRATEGY FOR UNCTAD MEETING |
Royale Airlines Inc said its load factor for February was 42.9 pct up from 42.6 pct the same period last year. Royale said it recorded 4180000 revenue passenger miles compared to 5681000 the same period the year before. Royale said it cut its available capacity 26 pct in response to regional weaknesses which resulted in a slightly higher load factor this past month. Reuter | ROYALE AIRLINES <RYAL> REPORTS LOAD FACTOR UP |
Consul Restaurant Corp chief financial officer Robert Lamp told analysts a previously announced conversion offer will reduce its debt-to-equity ratio to 55 pct from 380 pct assuming full acceptance of the offer. As of November 30 the company had about 26 mln dlrs of total debt outstanding. Earlier Consul said it would exchange 174912 shares of convertible preferred stock for 17.5 mln dlrs of outstanding 13 pct debentures. Lamp said that excess debt due to its withdrawal from the Texas marketplace has been the key factor to blocking further progress. The Mexican restaurant franchisee reported a net loss of 415493 dlrs for the six months ended November 30 1986. Acceptance of exchange offer by 90 pct of the debenture holders will enable Consul to decrease its outstanding indebtedness and report profitably beginning in the first quarter of 1988 Lamp told analysts. Reuter | CONSUL <CNSL> SEES IMPROVED LIQUIDITY |
A supply shortage of number two oil in New York for prompt delivery boosted the April heating oil contract on U.S. energy futures traders said. Crude oil futures followed but gasoline futures lagged. April heating oil ended 1.24 cts higher to 51.65 cts a gallon while April crude settled 28 cts higher at 18.64 dlrs. The rally was led by spot month heating oil contract which seemed to move higher because of tigtened prompt deliveries in New York Harbor said James Ritterbusch vice president at Paine Webber Inc in Chicago. April gasoline was 0.28 cent higher at 53.15 cts a gallon. Ritterbusch said the market also found support from a report in the Middle East Economics Survey that said that OPEC oil output was down to about 14 mln barrels per day in the second week of March. There was not a lot of interest to sell the market because of belief in OPEC said Richard Redoglia a broker with Merrill Lynch Futures Inc. Redoglia and Ritterbusch said April heating oil could continue to rally above 53 cts a gallon while crude futures could test 19 dlrs a barrel before profit-taking stunts the move higher. Reuter | U.S. HEATING OIL FUTURES UP SHARPLY IN APRIL |
Shr 19 cts vs 19 cts prior period Pay April 15 Record March 31 Note: Full name Transamerica Income Shares Inc. Reuter | TRANSAMERICA INCOME <TAI> MONTHLY DIVIDEND |
McDermott International Inc said the purchase of a 5.4 pct block of its stock was an apparent violation of the laws of Panama its country of incorporation. The company said a detailed disclosure of an acquisition offer must be made to the Panamanian National Securities Commission or to the targets board before acquiring more than five pct stake. It said transfers of securities in violation of these Panamanian regulations are invalid. The company was not immediately available to say who had acquired the 5.4 pct block of stock. Reuter | MCDERMOTT <MDR> SAYS STAKE VIOLATES LAW |
High Voltage Engineering Corp said it adopted an employee stock ownership plan. All domestic non-union employees who have completed one thousand hours of service in the 12 months ended December 31 are eligible to participate in the plan. On March 12 the plan purchased 259186 common shares at 14.50 dlrs per share. In connection with the purchase the plan borrowed 3.8 mln dlrs under a loan that is guaranteed by High Voltage. In addition High Voltage contributed 814 shares to the plan. Reuter | HIGH VOLTAGE <HVE> ADOPTS STOCK OWNERSHIP PLAN |
Corporate raider Carl Icahn acknowledged that he is one of the targets of an investigation by the Securities and Exchange Commission into possible violations of securities laws. Icahn who heads and controls Trans World Airlines Inc <TWA> made the acknowledgement in a filing TWA was required to make with the SEC disclosing its 14.8 pct stake in USAir Group. The SEC issued a formal order launching the private investigation on Nov 12 1986 Icahn said in the SEC filing. The order empowers SEC investigators to try to find out whether any persons including Icahn violated securities laws and related rules Icahn said. Specifically the probe is examining the acquisition and subsequent sale of more than five pct of the stock of certain unspecified companies he said. Federal law requires individuals or groups of individuals who have made shareholder agreements to disclose stakes in companies of at least five pct within 10 days. Icahn has acknowledged that he has been subpoenaed in connection with SEC probes but this is the first time he has disclosed that he is among those being investigated. By making the disclosure in a filing with the SEC which is obviously already aware of its own probe Icahn was also alerting current and potential shareholders of TWA. It is not uncommon for companies which are aware that they or their officers are the targets of government probes to acknowledge the existence of the otherwise secret investigations to fulfill their legal disclosure requirements to their shareholders. Icahn said the SEC is looking into whether he and others whom he did not name violated securities laws by acquiring and selling more than five pct of a companys stock. SEC investigations into those kinds of possible securities law violations have been spawned by the agencys widening probe into the Wall Street insider trading scandal according to published reports. Making late filings of 13D forms which disclose the amount of stock over five pct an investor has in a company or making no filing at all could indicate a scheme to warehouse shares of stock. In a warehousing scheme a group of investors acting in concert would each amass stock in the company without disclosing that they have an agreement among them. By failing to disclose that they are acting together the market is unware of the amount of stock of a company that is controlled by a group acting in concert. Last year the SEC charged members of the wealthy Belzberg family of Canada with taking part in a warehousing scheme while it was accumulating stock in Ashland Oil Inc. Reuter | ICAHN SAYS HE IS TARGET OF SEC INVESTIGATION |
SmithKline Beckman Corp said it is pursuing a three-point stragey that will achieve a 10 pct annual increase in operating earnings throughout the remainder of the decade. In 1986 SmithKline earned 521.1 mln dlrs or 6.78 dlrs per share on revenues of 3.6 billion dlrs. The company said in its annual report that its nonpharmaceutical business will play a major role in meeting its earnings growth target and will in fact grow faster than its pharmaceutical business. SmithKline whose major product is the antiulcer medication Tagamet said in the report that it intends to improve earnings from existing products expand its product portfolio and optimize its financial resources. To bolster its position in the antiulcer market in which Tagamet has met stiff competition SmithKline said its strategy to develop an over-the-counter version of Tagamet is bolstered by two joint ventures one with <Wellcome PLC> and one pending venture in Japan. SmithKline also said its Allergan Inc eye and skin care products division can be a one billion dlr organization in the next five years that can grow at more than seven to 10 pct annually. Nondilutive acquisitions are a real possibility Gavin Herbert president of the eye and skin care product group said in the report. In 1986 Allergan had worldwide sales of 433 mln dlrs. It said its Smith Kline and French Laboratories pharmaceuticals unit with 1986 sales of 1.9 billion dlrs will file for Food and Drug Administration marketing approval for a number of cardiovascular agents including tissue plasminogen activator over the next two years. It also said SK and Fs U.S. sales force will be 20 pct larger in 1987 with more than 1000 sales personnel. Smith Kline also said its small clinical laboratory testing unit with 1986 sales of 373 mln dlrs performs 24 mln tests a year and sees increases in employee drug testing as well as in testing for the AIDS antibody. Smith Kline said that depending on its share price and the cost of money it may buy back more shares. In the last three years it has bought back about 25 pct of its shares. SmithKline begins the year with a new management team including its new chief operating officer George Ebright. Reuter | SMITHKLINE <SKB> AIMS FOR 10 PCT EARNINGS RAISE |
Ashland Oil Inc said it expects to report a loss from operations in the second quarter. The company also said it expects to report a 10 mln dlrs net gain in the quarter from excess pension funds used to pay down debt. However it is difficult to determine now whether this gain will be sufficient to offset the expected operating loss the company said in a statement. A company spokesman would not elaborate. The companys Ashland Petroleum Co unit operated at a loss in January and February since it was unable to raise product prices enough to recover higher crude oil costs Ashland said. Although Ashland Petroleum and SuperAmerica a retail marketing operation are having a difficult quarter the companys Valvoline Ashland Chemical and coal businesses are expected to report good results for the quarter ended March 31. In the year-ago quarter Ashland had income from operations of 93.8 mln dlrs before corporate and interest expenses taxes equity income and other items. Net income in the quarter was 39.4 mln dlrs or 1.12 dlrs a share on sales of 1.78 billion dlrs. Reuter | ASHLAND OIL <ASH> SEES 2ND QTR OPER LOSS |
Ameritrust Corp said it sold two mln shares of its common stock to an investment group named Clevebaco Ltd Partnership. The partnership is controlled by Alfred Lerner and a subsidiary of the Progressive Corp <PROG> is the limited partner according to the company. Ameritrust said it was advised that the Clevebaco group has filed an application with bank regulatory authorities seeking permission to acquire up to an additional three mln shares of Ameritrust common stock. The company said the group indicated to it that it had no hostile takeover intent toward Ameritrust and that the purchase was for investment purposes. Reuter | AMERITRUST <AMTR> SELLS TWO MLN SHARES |
Vulcan Packaging Inc said it received regulatory approval for a normal course issuer bid allowing the company to acquire for cancellation up to five pct of outstanding common shares on the Toronto Stock Exchange between April 24 1987 and April 23 1988. Reuter | VULCAN PACKAGING <VIPLF> SETS ISSUER BID |
BANKAMERICA CHAIRMAN SAYS BANK IS TURNING AROUND, HEADING TO PROFITABILITY |
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Shr 30 cts vs 53 cts Net 868000 vs 728000 Revs 7300000 vs 6500000 Avg shrs 3000000 vs 750000 Reuter | <GENERAL LEASEHOLDS LTD> YEAR NET |
Farm subsidies and protectionist moves threaten healthy trade on both sides of the Atlantic Michael Jopling British minister of Agriculture Fisheries and Food warned. It would not be sensible to provoke another dispute between Europe and the United States Jopling said in remarks prepared for an evening speech. But some things are clear and they apply on both sides of the Atlantic. We cannot continue to pile up stocks while world demand shrinks he said. Governments must not operate farm policies as if they were purely domestic affairs with no impact on others. They also have to recognize that they cannot in the long run develop a healthy and stable farm sector on the basis of protectionism and excessive subisdies. And above all Europe and the United States have too many common interests to make it worthwhile to engage in trade wars and competitive export subsidies which end by benefitting no one. He added It is crucial that the United States and the European Community remain friends. Jopling who is a member of the EC agriculture committee was in Indiana to visit several farms prior to talks with U.S. officials in Washington later this week. Jopling also criticized a recent proposal still under consideration by the EC for a tax on vegetable and fish oils. He said his government would oppose such a move because We do not think it is correct that a shortage of funds to support (EC) farmers should be alleviated by raising money at the consumers expense. Reuter | BRITISH FARM MINISTER ATTACKS SUBSIDIES |
New England Power Co said it will redeem all 250000 shares of its Preferred Stock cumulative 100 dlr par value 13.48 pct series in two stages. First on July 1 it will redeem 225000 shares at 110.86 dlrs per share. Then on September 1 it will redeem the remaining 25000 shares pursuant to the sinking fund provisions at 100.75 dlrs plus accrued and unpaid dividends of 2.25 dlrs per share it said. Reuter | NEW ENGLAND POWER TO REDEEM PREFERRED SHARES |
BankAmerica Corp Chairman A.W. Clausen said the bank holding company is turning around and is back on the road to profitability. In a speech to the San Francisco Chamber of Commerce Clausen said he was absolutely convinced BankAmerica would return to its position of preeminence. Fundamental to achieving that goal is to continue to reduce costs dramatically to get our arms around our loan loss problems and begin to reduce charge-offs and to enhance our revenue generation Clausen said. Clausen said he doubts BankAmerica would be in a position this year to make any acquisitions or experience any growth. He said BankAmerica will continue to reduce staff and operations noting that expense growth in 1986 increased only one pct over 1985 expenses. Clausen also said it will continue to phase out its overseas retail banking and concentrate on wholesale banking with emphasis on a premium list of multinational corporations. Reuter | BANKAMERICA <BAC> CHAIR SAYS BANK TURNING AROUND |
Qtly div 66 cts vs 66 cts Pay May one Record April 15 Reuter | ROCHESTER TELEPHONE CORP <RTC> SETS DIVIDEND |
Qtly div 10 cts vs 10 cts Pay April 30 Record April 10 Reuter | AUGAT INC <AUG> SETS QUARTERLY DIVIDEND |
Qtly div 26 cts vs 26 cts prior Pay April 30 Record April 10 Reuter | PHH GROUP <PHH> REGULAR QTLY DIVIDEND |
Shr loss nine cts vs profit 14 cts Net loss 773000 vs profit 1618000 Revs 16.3 mln vs 26.7 mln Six mths Shr loss 56 cts vs profit 27 cts Net loss 4763000 vs profit 3398000 Revs 29.3 mln vs 49.9 mln Reuter | TELCO SYSTEMS INC <TELC> 2ND QTR MARCH ONE LOSS |
A U.S. Commerce Department spokesman said the agency would have no comment on Schlumberger Ltds announcement that it had terminated an agreement in principle to sell its Fairchild Semiconductor Corp unit to Fujitsu Ltd. Sclumberger had said that controversy surrounding the venture made it unlikely the sale could be completed any time soon. The sale was opposed by Commerce and the U.S. Defense Department in part on national security grounds. Commerce chief spokesman B.J. Cooper said the department had had no contact with Schlumberger about the deal. A Defense Department spokesman said the agency was unaware of Schlumbergers announcement and would have no immediate reaction. Officials last week told Reuters that Commerce Secretary Malcolm Baldrige and Defense Secretary Caspar Weinberger had joined forces to fight the planned sale because it could have left the U.S. military overly dependent on foreign sources for vital equipment used in high-technology weapons. Administration opposition to the deal also stemmed from ongoing trade tensions between the United States and Japan officials said. Reuter | U.S. DECLINES COMMENT ON SCHLUMBERGER<SLB> MOVE |
Shr profit one cts vs loss two cts Net 74000 vs loss 122000 Revs 1.7 mln dlrs vs 1.4 mln Nine months Shr profit five cts vs loss 10 cts Net profit 299000 vs loss 624000 Revs 5.1 mln vs 3.7 mln NOTE:3rd qtr ended January 31. 1987 3rd qtr and nine months includes 36000 dlrs and 129000 dlrs gains respectively from tax loss carryforward. Reuter | PRECISION TARGET MARKETING INC <PTMI> 3RD QTR |
In what may easily be the largest initial public offering in U.S. history Consolidated Rail Corp estimated that the sale of its 59 mln government-owned shares could earn the freight railroad as much as 1.7 billion dlrs. In an amended registration statement filed with the Securities and Exchange Commission Conrail said its public offering could come as early as next week and estimated its shares will sell for between 26 and 29 dlrs each slightly higher than Conrails initial prospectus had anticipated. A sale in this price range would net between 1.53 billion dlrs and 1.7 billion dlrs for Conrails 58.8 mln shares with 52 million sold in North American and the remainder for sale in an international offering. The previous largest initial U.S. public offering occurred last May when the Henley Group Inc. a diverse collection of 38 companies spun off by Allied-Signal Corp raised 1.19 billion dlrs. In its initial prospecus filed with the SEC Conrail had estimated its government-owned shares would fetch only 22 to 26 dlrs a share or a maximum of 1.52 billion dlrs. We cannot comment on any question said a spokesman for Goldman Sachs and Co. one of the co-managers of the selling syndicate. The SEC is being extremely cautious he said. Conrail was created by the government in the mid-1970s from the bankrupt Penn Central Railroad and six other bankrupt or failing Northeast railroads. After several years of large losses the railroad company turned its first profit in 1981. Last year Conrail earned 431 mln dlrs on revenues of 3.14 billion dlrs down slightly from its 1985 profit of 442 mln dlrs on revenues of 3.21 billion dlrs. Conrail operated its last passenger service in 1982. Legislation passed by Congress last year calling for the public sale of Conrail set two billion dlrs as a target to be raised. Reuter | CONRAIL PUBLIC OFFERING TO BE LARGEST IN U.S. |
Royal Bank of Canadas <RY> small Brazilian commercial bank subsidiary Banco Royal do Canada (Brasil) S.A. sees opportunities for its own growth with an expected substantial increase in Brazilian exports to Canada Banco Royal president Michael Brennan said. They (Brazilian exporters) are very interested in the Canadian market because its an untapped market Brennan told reporters after a speech to the Brazil/Canada Chamber of Commerce. Brennan said Brazil is currently exporting products like paper machinery and ships to Canada. He said he hopes to see medium-term financing facilities for Brazilian companies reinstated shortly following an agreement reached in January with international financial authorities. Brennan estimated Brazilian exports to Canada totalled roughly 800 mln Canadian dlrs in 1985 while imports from Canada reached about 700 mln dlrs. Brennan said he expects Banco Royal profit to increase this year from the three mln U.S. dlrs reported for fiscal 1986 ended September 30 but said he could not predict by how much because of the countrys uncertain financial climate. Brennan said he expects his banks growth to come from increased exports to Canada. Banco Royal is the only Canadian-owned commercial bank in Brazil although <Bank of Montreal> has a Brazilian investment bank subsidiary he said. Brennan said he expected Brazil to be able to reach an equitable agreement with foreign banks on restructuring its 68 billion U.S. dlr foreign debt because the Brazilian economy is essentially healthy. He said he believed Brazil might be in a position to resume debt repayments within a year. Brennan said he could not comment on the impact of Brazils interest payment moratorium on the Royal Bank of Canada. Reuter | ROYAL BANK/CANADA BRAZIL UNIT SEES GROWTH |
Wang Laboratories Inc expects the office automation industry to grow at 10 to 15 pct a year over the next two years according to Chairman An Wang. However Wang who was in Dallas to open the companys new showroom would not predict what the company would earn in its third fiscal quarter which ends March 31. Wang earned 21 cts a share or 21.4 mln dlrs in the same quarter last year. The company has said it expects to break even in the quarter. Reuter | WANG (WANB) SEES GROWTH IN OFFICE AUTOMATION |
Qtly div eight cts vs eight cts Pay June one Record May 15 Reuter | AFFILIATED PUBLICATIONS INC <AFP> SETS DIVIDEND |
BankAmerica Corp Chairman A.W. Clausen said the bank holding company plans to go foward with its one-billion-dlr debt offering but declined to specify when. Speaking to the San Francisco Chamber of Commerce Clausen said that during the coming months at the appropriate time we will be placing or underwriting for equities. We do need to improve our capital. We are in registration. For the moment we filed a one-billion-dlr shelf registration for approval by the SEC which we believe will be approved very shortly he said. On January 26 BankAmerica filed a shelf offering for up to one billion dlrs of preferred stock and subordinated capital notes. The offering was seen by the banking industry as one of the major deterrents to First Interstate Bancorps <I> take over bid which it withdrew on February 9. Since then banking analysts have speculated BankAmerica may do well to defer action on the offering while it continues to attempt to improve its financial situation. Clausen said despite improvement in the past quarter BankAmerica must do more to improve its capital ratios. Reuter | BANKAMERICA <BAC> SAYS IT WILL MAKE DEBT OFFER |
Shr 10 cts vs nine cts Net 217000 vs 192000 Revs 3325000 vs 2506000 Year Shr 31 cts vs 43 cts Net 660000 vs 932000 Revs 12.2 mln vs 10.7 mln Reuter | ASTRO-MED INC <ALOT> 4TH QTR NET |
Central Pennsylvania Savings Association said it made a 30 pct investment in <Pinnacle Mortgage Investment Co>. Terms were not disclosed. Pinnacle incorporated in 1985 generates about 60 mln dlrs in closed mortgage loans annually. Central Pennsylvania also said its directors recently approved a letter of intent to acquire Hamilton-Reliance Savings Association of Norristown Pa. Reuter | CENTRAL PENNSYLVANIA <CPSA> BUYS STAKE IN FIRM |
BankAmerica Corp chairman A.W. Clausen said he believes Brazil will successfully restructure its foreign debt sometime this year but in the meantime that countrys creditors could suffer somwehat over the short term. He also said Brazils decision to suspend foreign debt payments is most likely a move aimed at strengthening its negotiating position. I believe it was a posturing move on the part of the country Clausen said. Clausen made his comments during an address at a Chamber of Commerce luncheon here. Last month Brazil which has about 110 billion dlrs of foreign debt suspended payment on some 68 billion dlrs owned to private banks while it worked out its economic problems. BankAmerica has some 2.74 billion dlrs in loans outstanding to Brazil. Clausen also said he did not think any financial institutions would be done in by Brazils suspension of debt payments and he added I do not believe the International Monetary Fund will come to a roaring halt. Reuter | BANKAMERICA <BAC> CHIEF SEES BRAZIL SOLUTION |
Harbour workers returned to work this morning after a strike in support of pay claims closed New Zealands 15 ports for 24 hours yesterday. But the Harbour Workers Union told reporters the pay dispute is not settled and the unions national executive will meet here tomorrow to decide its next moves. Obviously we will be considering further industrial action Union secretary Ross Wilson said in a radio interview. The union rejects employers offers of a 7.5 pct pay rise over 15 months. It wants 7.0 pct over 12 months. Reuter | N.Z. PORTS REOPEN, BUT FURTHER CLOSURES POSSIBLE |
Zimmer Corp said it reached an agreement with its banks to boost its credit line by 4.3 mln dlrs. It currently has 7660000 dlrs in outstanding debt. Under the terms of the accord the banks will receive a security interest of nearly all the companys assets excluding inventory. The pact also calls for repayment of the debt over 12 months and the application of cash proceeds from the sale of its Black Fin Yacht Corp unit. It said the credit agreement and sale of Black Fin is expected to relieve its liquidity problems. Reuter | ZIMMER <ZIM> BOOSTS CREDIT LINE BY 4.3 MLN DLRS |
Explosive Fabricators Inc said its common stock began trading on NASDAQ over-the-counter market March 16 with the quotation symbol BOOM. Reuter | EXPLOSIVE FABRICATORS <BOOM> MAKES NASDAQ LIST |
Atcor Inc said the magnitude of any earnings recovery in fiscal 1987 depends on the direction of steel pricing and how fast the companys severe operating problems in its consumer segment are resolved. Atcors consumer segment represents about 25 pct of its sales. In a letter to shareholders the company said that that part of its business continues to be unprofitable. Atcor said it does not expect performance improvements in the first quarter to be sustained throughout the year due to increasing raw material costs. Reuter | ATCOR <ATCO> SAYS OUTLOOK DEPENDS ON STEEL |
Shr 14 cts vs four cts Net 1474000 vs 286000 Revs 15.5 mln vs 1.4 mln Avg shrs 10.6 mln vs 7.5 mln Nine mths Shr 38 cts vs eight cts Net 3387000 vs 588000 Revs 33.4 mln vs 2.9 mln Avg shrs 8.8 mln vs 7.5 mln Reuter | ZZZZ BEST CO INC <ZBST> 3RD QTR NET |
Pacific Lighting Corp said it is considering the sale of its land development line of business and will be initiating discussions with potential buyers. The book value of the companys investment in land development operations is 224 mln dlrs. The Pacific Lighting Real Estate Group earned 24.2 mln dlrs and employed 800 people during 1986 the company said. Alternatives to the sale being considered include a master limited partnership and an initial public offering of the equity in the land development companies it said. Proceeds from the sale would likely be invested in Pacific Lightings new specialty retailing line of business and its oil and gas operations the company said. The investment banking firm Morgan Stanley has been retained to advise Pacific Lighting on the disposition of the land development operations. Completion of a transaction it one is made is expected by the end of the year the company said. Reuter | PACIFIC LIGHTING <PLT> CONSIDERS UNIT SALE |
MLX Corp said a subsidiary has tentatively agreed to acquire a sintered friction materials business in Milan Italy from a unit of Abex Corp for undisclosed terms. The deal will close after obtaining Italian government approvals expected in late April. The business which will operated under the name S.K. Wellman will become a member of MLXs specialty friction materials group. The business is a manufacturer of high-energy friction materials for heavy-duty transmissions and clutches. Reuter | MLX <MLXX> UNIT AGREES TO BY ABEX UNIT |
Qtr ended Dec 31 Oper shr loss two cts vs loss 92 cts Oper net loss 28045 vs loss 1040700 Sales 4943584 vs 5613400 Nine mths Oper shr profit 11 cts vs loss 93 cts Oper net profit 124434 vs loss 1054000 Sales 22.6 mln vs 26.3 mln (Mouduline International Inc) Note: oper data does not include 1986 gains from tax benefit carryforwards of 30000 dlrs or three cts per shr in qtr and 110000 dlrs or ten cts per shr in nine mths. Reuter | MODULINE INTERNATIONAL <MDLN> 3RD QTR OPER LOSS |
Qtly div 12.5 cts vs six cts Pay March 31 Record March 24 Note: Co also declares 12.5 ct qtly div on special shares issued in December 1986 with same pay and record dates. Reuter | <FINANCIAL TRUSTCO CAPITAL LTD> HIKES PAYOUT |
USP Real Estate Investment Trust said it will post a first-quarter gain of 2258216 dlrs on the sale of the Spanish Villa Apartments in Savannah Ga. which was completed last week. Reuter | USP REAL ESTATE <USPTS> HAS GAIN ON SALE |
Oper shr primary 28 cts vs 17 cts Oper shr diluted 24 cts vs 17 cts Oper net 1826000 vs 1104000 Revs 205.4 mln vs 171.1 mln Avg shrs primary 6512462 vs 6510462 Avg shrs diluted 10.3 mln vs 10.3 mln Year Oper shr primary 83 cts vs 76 cts Oper shr diluted 77 cts vs 74 cts Oper net 5393000 vs 4955000 Revs 719.9 mln vs 633.5 mln Avg shrs primary 6511591 vs 6508379 Avg shrs diluted 10.3 mln vs 9122722 Note: Revs includes investment income 2323000 dlrs vs 2239 dlrs for qtr and 10.1 mln dlrs vs 6612000 dlrs for 12 mths. 1986 revs also include unrealized loss on equity securities of 59000 dlrs for qtr and 1155000 dlrs for 12 mths. Oper net excludes extraordinary gain of 875000 dlrs vs 284000 dlrs for qtr and 1053000 dlrs vs 462000 dlrs for 12 mths. Reuter | BINDLEY WESTERN INDUSTRIES INC<BIND>4TH QTR NET |
<Techniclone International> said it has entered a joint venture with Seeds of Tomorrow to apply its electrogene process to developing new or improved plant varieties. The process which has a patent pending was developed originally for use in human cancer. The joint venture will address genetic transformation of cotton and tomatoes. The company said it is also negotiating such ventures with several other plant companies. Reuter | TECHNICLONE INTERNATIONAL SETS JOINT VENTURE |
Centel Corp said it sees 1987 first quarter results below those of 1986 due to regulatory limits on telephone earnings and 15 cts to 20 cts a share dilution from 1986 acquisitions. In the annual report Chairman Robert Reuss told shareholders telephone profits will continued to be limited by ceilings imposed by regulators as well as deregulation and structural changes within the industry that have slowed growth in the investment base for setting rates. As such its first quarter 1987 results will be below last years first quarter of 1.11 dlrs a share he said. Several of the companys telephone units may be faced with a reduction in the rates of return authorized by their regulators Reuss said. This could result in some rate reductions and refunds to customers. Reuss said he is encouraged by the prospects for progress in Centels business communications cable television and cellular telephone units. Centel is asking shareholders at the annual meeting to approve the tripling to 120 mln in authorized shares. Reuter | CENTEL <CNT> SEES LOWER FIRST QTR PROFITS |
The Federal National Mortgage Association said it will not purchase home-equity loans as part of its mortgage-purchase and swap activities in the secondary market. We dont believe that our provision of liquidity is needed in this segment of the market David Maxwell Fannie Maes chairman said. Reuter | FNMA <FNM> WILL NOT BUY HOME-EQUITY LOANS |
Morgan Stanley Mortgage Trust a unit of the Morgan Stanley Group is offering 313.87 mln dlrs of collateralized mortgage obligations (CMOs) in seven classes. These consist of 79 mln dlrs of adjustable rate class J-1 bonds to be fully paid by November 20 2013 priced at 99.80 pct to yield 7.49 pct. The notes will bear an interest rate of seven pct for one year from April 20 1987 rising to 7.50 pct until April 1989 and an eight pct rate thereafter. Morgan also will offer 89.60 mln dlrs of floating rate class J-2 bonds to be fully paid by 2013 priced at par to yield three-month Libor plus 0.45 pct. There is an 11 pct cap. Also among the issues are 24.417 mln dlrs of class J-three bonds to be fully paid by May 2015 and priced at par to yield 8.26 pct and 11.491 mln dlrs of floating rate class J-four bonds to be fully paid by the same date and priced at par to yield three-month Libor plus 0.50 pct. The cap is 12 pct. The class J-five bonds totalling 49.987 mln dlrs will be fully paid by August 2017 and priced at par to yield 8.57 pct. The 17.25 mln dlrs of floating rate class J-six bonds of the same maturity are priced at par at a rate of three-month Libor plus 0.65 pct with a 13 pct cap. The 42.125 mln dlrs of 8.75 pct class J-seven bonds due August 2018 are priced at 99.25 pct to yield 8.85 pct. Interest on all classes of bonds will be payable quarterly. Morgan Stanley is sole manager of the offering which will be rated AAA by Standard and Poors Corp. Reuter | MORGAN STANLEY <MS> ISSUES MORTGAGE BONDS |
Qtr ended Jan 31 Shr one ct vs nine cts Net 29000 vs 349000 Revs 7892000 vs 4721000 Note: nine mth data unavailable . Reuter | WINGS WEST AIRLINES <WING> 3RD QTR NET |
Trans World Airlines Inc which disclosed that it does not intend to seek control of USAir Group at this time said it still believes a combination of the two airlines would have benefits to both. In a filing with the Securities and Exchange Commission TWA which is controlled by Carl Icahn said it continues to closely watch the developments of USAir which has an agreement to acquire Piedmont Aviation Inc <PIE>. TWA said it spent 178.2 mln dlrs to acquire its 4043200 USAir shares which amount to 14.8 pct of its total outstanding common stock. TWA said it would not buy more USAir Group stock at least for the moment. But it said it still believes a TWA-USAir combination would create certain synergies that would be mutually beneficial to both carriers. TWA stressed that it reserved the right to revive its takeover attempt and said it may continue to explore the feasibility and strategies of gaining control of USAir. Further purchases of USAir stock would require the approval of the Department of Transportation TWA said. Because of Department of Transportation rules TWA also said it put its USAir stock into a voting trust with Fleet National Bank as the voting trustee. The voting trust agreement requires the bank to vote in favor of any acquisition agreement between TWA and USAir and to opposed any other merger of USAir. Reuter | TWA <TWA> SEES BENEFITS IN USAIR <U> MERGER |
Adobe Resources Corp and High Plains Oil Corp said they reached an agreement in principle under which High Plains will be merged into a unit of Adobe. Under terms of the agreement the companies said each share of High Plains common stock not owned by Adobe or held in the High Plains treasury will be exchanged for 1.12 shares of newly issued Adobe common. The exchange they said will be made on the effective date of the merger which must be approved by both companies boards and High Plains shareholders. Reuter | ADOBE <ADB>, HIGH PLAINS <HPOC> TO MERGE |
The European Community (EC) delivered warnings to both Japan and the United States over trade frictions which have hit relations between the Community and its main trading partners. EC foreign ministers meeting here issued a statement deploring Japans continued trade imbalance and appealed for greater effort by the country to open its markets. Ministers also issued a statement saying they were disturbed by moves in the U.S. to limit imports of textiles and warned that the Community would react to any such moves. EC External Trade Commissioner Willy De Clercq has already written to his U.S. counterpart special U.S. Trade Representative Clayton Yeutter outlining the ECs concerns. The ministers said they were very disturbed by the U.S. moves adding the adoption of such measures would not fail to have a negative effect on the process of multilateral negotiations just started as well as on bilateral relations. Any unilateral U.S. moves would leave the EC no option but to react according to the laws of the world trade body the General Agreement on Tariffs and Trade (GATT) they said. In a separate statement on Japan the EC ministers said they deplore the continued aggravation of the imbalance in trade ... (and) expect Japan to open up its market more. The statement added that the EC continued to insist that the Japanese government must boost imports and stimulate demand. Ministers also called on the European Commission to prepare a report on U.S.-Japanese trade for July this year to enable them to take action where necessary. One diplomat said the call for a report showed ministers were determined not to let the Japanese question drop. It wil be back on the table again and again the diplomat said. De Clercq told journalists There is a certain nervousness a growing impatience within the Community on trade relations with Japan. But diplomats said the Community is keen to continue talking with Tokyo to try and solve the problem rather than embark on a costly and damaging trade war. Reuter | EC WARNS U.S. AND JAPAN ON TRADE TENSIONS |
National Medical Care Systems INc said it has named Arthur Axelrod its Chairman and Robert Kim its president. Axelrod who had been president replaces U.T. Thompson III who resigned March 1. Kim had been a board director and director of operations for the companys primary operating subsidiary National Health Care Systems of California Inc. Reuter | NATIONAL HEALTH CARE <NHCS> NAMES NEW OFFICIALS |
CEASARS WORLD FILES SUIT AGAINST MARTIN SOSNOFF AND MTS ACQUISITION ON TENDER OFFER |
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TransAmerica Natural Gas Corp said it is seeking two billion dlrs in punitive and actual damages in a lawsuit it filed today against Coastal Corp its chairman and certain Coastal affiliates. TransAmerica a privately held company that has been in bankruptcy since 1983 said its suit alleges that Coastal and its chairman Oscar S. Wyatt Jr unlawfully interfered with agreements it previously reached with its creditors causing the company significant damage. TransAmerica also said its suit filed in state district court in Harris County Texas seeks injunctions against Wyatt and Coastal to enjoin them from interfering with its contractual agreements with its creditors. The company alleged that beginning in mid-1986 Coastal and its chairman took various steps to acquire its gas and other assets. Coastal has used TransAmericas bankruptcy proceedings to engineer a hostile takeover attempt the company charged. In its suit TransAmerican alleged that Coastal and Wyatt are notorious corporate raiders who have been restrained in the past from taking over other corporations in their attempt to create a stranglehold position from which they could control and raise gas prices... It is obvious that Coastals efforts to improperly take over TransAmerican is a thinly veiled attempt to control a larger share of the Texas gas market to the detriment of end users and consumers the company alleged. Coastal could not be reached for comment. Company name is Transamerican. Reuter | COASTAL <CGP> HIT WITH TWO BILLION DLR LAWSUIT |
Caesars World Inc said it filed a lawsuit against Martin T. Sosnoff and MTS Acquisition Corp regarding its March 9 unsolicited tender offer for Caesars World stock. The company said it filed in the Federal Court in the Central District of California charging the tender offer which its board rejected violated federal securities laws and federal margin regulations. The suit charges the offering materials are materially false and misleading and misstate and conceal material information required to be disclosed to shareholders. The suit also charges the offer is illusory and designed to manipulate the market in Caesars World stock to enable Sosnoff to sell the Caesars World stock he already owns for a substantial profit. The complaint seeks among other things to enjoin the tender offer and to require MTS and Sosnoff to correct false and misleading statements in the offer. Caesars World is expected to seek a friendly suitor restructure operations or buy back Sosnoffs holdings in an attempt to fight off the bid. Sosnoff holds about 13.6 pct of the companys stock. Reuter | CAESARS WORLD <CAW> FILES SUIT AGAINST SOSNOFF |
Harris Associates L.P. a Chicago investment advisor said it raised its stake in Centerre Bancorporation to 508062 shares or 6.6 pct of the total outstanding from 427061 shares or 5.5 pct. In a filing with the Securities and Exchange Commission Harris said it bought 81001 Centerre common shares between Jan 2 and March 4 at prices ranging from 36.00 to 39.75 dlrs a share. It said its dealings in the companys stock are on behalf of its clients. Reuter | HARRIS UPS CENTERRE BANCORP <CTBC> STAKE |
Shr profit one ct vs loss 14 cts Net profit 279000 vs loss 1896000 Sales 199.6 mln vs 142.4 mln Reuter | PAY'N-SAVE <PAYN> 1ST QTR JAN 31 NET |
Latin America urgently needs more money if it is to grow its way out of its deepening debt crisis but fresh ideas about how to stimulate new lending quickly seem to be in short supply. Bankers officials and academics at a conference organized by the Massachusetts Institute of Technology stressed the importance of proper economic policies and increased private investment. But they offered no glimpse of a grand design to banish the specter of a widespread repudiation of the regions 380 billion dlr debt. Such a solution is still not in sight said Nobel Prize-winning economist Franco Modigliani. The conference was held against the background of the recent suspension of interest payments by Brazil and Ecuador but it was Argentine finance secretary Mario Brodersohn who spelled out most clearly the social and economic strains caused by the need to service billions of dlrs of debt. Brodersohn who is negotiating currently with foreign banks for a 2.15 billion dlr loan for 1987 says Argentina will have to grow at a four pct annual rate between now and 1992 simply to restore per capita income to the level of 1975. He said the investment needed to fuel this growth can come partly from structural economic reforms at home but this alone will not be enough. We have to reduce the transfer of resources Brodersohn said adding that mounting economic strains in Latin America make this a matter of urgency. Brodersohn and other Latin officials however did not spell out how this should be achieved. The creditors strategy spelled out by U.S. Treasury Secretary James Baker in October 1985 is to spur additional lending by private banks and multilateral development banks in return for economic reforms. But there was a widespread recognition at the conference that the Baker Plan has fallen well short of expectations. Miguel Urrutia a senior official of the Inter-American Development Bank for instance said IADB lending had actually declined in 1986 and had started slowly in 1987. Mexico is due to sign a 7.7 billion dlr loan on Friday that will be the first major facility under the Baker Plan which called for net new bank lending between 1986 and 1988 a target that Morris Goldstein of the International Monetary Fund said is now optimistic. Deputy Assistant Secretary of State for Inter-American Affairs Paul Taylor acknowledged that the Baker Plan has not yet succeeded as well as we hoped. But if the debtors at the conference were hoping to hear an official commitment to try a new tack they must have been disappoiunted. Ted Truman director of the International Finance Diviision at the Federal Reserve Board said banks were short-sighted in not lending promptly and in the amounts called for by Baker. He said some streamlining of the lending process may be needed but added I see no alterantive to the present course of responsible cooperation. A major theme at the conference however was that the world economy might not continue to cooperate while the debtors and creditors muddle along. If export markets dry up because of recession or protectionism speakers warned Latin America will be even more hard-pressed to service its debts. Rimmer de Vries chief international economist at Morgan Guaranty Trust Co said he was very concerned that world economic growth of three to 3-1/2 pct cannot be sustained and that West Germany and Japan wowuld not take up the slack in the world economy that will arise as the U.S. narrows its trade deficit. Theres a deflationary force coming down the mountain and I dont know whos going to be rolled over de Vries said. He called for a new lending initiative with a wide menu of options as alternatives to pure new money. Can we not manage this lending a bit more imaginatively? he asked the conference. But new ideas take time to devise and implement and Brazils suspension of interest payments shows that the aptience of debtors might be wearing thin. Persio Arida a former director of the Brazizlian central bank who was a key architect of that countrys Cruzado plan to curb inflation said there is an incentive problem throughout Latin America. Reuter | DEBT PROGNOSIS AGREED, BUT NO CURE IN SIGHT |
The following proposed securities offerings were filed recently with the Securities and Exchange Commission: Mead Corp <MEA> - Shelf offering of up to 150 mln dlrs of debt securities including debentures and notes. Philadelphia Electric Co <PE> - Shelf offering of up to 250 mln dlrs of first and refunding mortgage bonds. Hechinger <HECHA> - Offering of 100 mln dlrs of convertible subordinated debentures due 2012 through Morgan Stanley and Co Inc. UAL Inc <UAL> - Shelf offering of up to 200 mln dlrs of debentures due March 31 1997 and 2564102 shares of common stock. Reuter | PROPOSED OFFERINGS RECENTLY FILED WITH THE SEC |
The European Communitys (EC) executive Commission defended attacks on major elements of its ambitious program to rid the EC of its controversial farm surpluses after strong attacks from northern states. Britain and West Germany backed by the Netherlands and Denmark opposed a proposed tax on edible oils and fats which has already sparked strong protest from exporters to the EC led by the U.S. and from EC consumer groups diplomats said. But EC Agriculture Commissioner Frans Andriessen told journalists he had warned ministers that failure to agree the tax proposed last month as part of the Commissions annual farm price package would leave a large hole in the groups budget. He added that he hoped states had not yet made their mind up for good. I hope the debate is still open if not there will be a formidable hole in the budget he said. The shortfall could reach two billion dollars in 1988 and would be only slightly less this year he said. Foreign ministers were taking a first look at the tax ahead of farm ministers in a move described by diplomats as unprecedented and welcomed by Andriessen as a sign ministers recognised the importance of reforming the ECs farm policy. The proposed tax is designed to provide the EC with extra cash to finance community oilseed crops at their current levels and to brake a dramatic decrease in olive oil consumption by making it more competitive with other oils. Andriessen noted the EC has over two mln olive oil producers mostly small farmers who could be helped by the tax. What we are suggesting is reasonable it should be better understood not just outside the community but at home he said. Britain normally a keen advocate of radical changes in the ECs costly farm subsidies system warned the proposal to impose the tax on both domestic and imported oils and fats could seriously damage the ECs trade relations with other countries. Britain also warned that the tax could hit developing countries already receiving aid from the EC they said. The Commission also defended proposals to dismantle Monetary Compensatory Amounts (MCA) -- a system of cross border subsidies and taxes to level out foreign exchange fluctuations for farm exports -- against harsh West German criticism. In a letter this weekend from Chancellor Helmut Kohl to EC executive Commission President Jacques Delors Kohl made clear such a dismantling would mainly hit West German farmers. Diplomats said West Germany again repeated its criticism at the talks here but Andriessen told journalists that Germany had been alone in its opposition. The question was a key aspect of the Commissions farm price proposals he added. Ministers also agreed a 3.5 billion dlrs scheme to rid the EC of its butter mountain despite Spanish and Portuguese opposition. The scheme will pay for the disposal of one mln tonnes of unwanted butter by selling it at knock-down prices turning it into animal feed or exporting it at subsidised prices. National capitals are due to be reimbursed later out of savings from another plan to curb milk production. Diplomats said Spain and Portugal have been angered by the scheme which they feel forces them to pay for massive surpluses built up before they joined the community last year but the two countries did not block todays vote. Reuter | EC COMMISSION DEFENDS FARM PROGRAM |
Aero Services International Inc said it signed an agreement with Dibo Attar who controls about 39 pct of its common stock under which three nominees to Aeros board have been selected by Attar. In addition to Attar the nominees are Stephen L. Peistner chairman and chief executive officer of <McCrory Corp> and James N.C. Moffat III vice president and secretary of <Eastover Corp>. Reuter | AERO SERVICES <AEROE> IN PACT FOR NOMINATIONS |
Los Angeles Securities Group said it has concluded negotiations with Ronald Vannuki under which he will become its chief executive officer and buy about 710000 shares of its common stock. The company said Vannuki will buy about 210000 shares from current shareholders and about 500000 shares from the company over three years. Vannuki 46 has been Vice President for Kayne Anderson and Co Inc a Los Angeles-based securities broker-dealer. Reuter | LOS ANGELES SECURITIES <LSGA> SETS MANAGMENT |
Australia Feb current account deficit 750 mln dlrs vs Jan 1.23 billion - official |
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Australias current deficit narrowed to 750 mln dlrs in February from 1.23 billion (revised from 1.29 billion) in January the Statistics Bureau said. This compared with an 897 mln dlr shortfall a year earlier. February merchandise trade recorded a 42 mln dlr surplus against a 246 mln shortfall (revised from 287 mln) in January and a 162 mln deficit in February 1986. The current account deficit fell at the lower end of the range of forecasts of 700 mln to one billion dlrs made by market economists yesterday. February FOB exports rose to 2.82 billion dlrs from 2.74 billion (revised from 2.72 billion) in January and 2.54 billion a year earlier while FOB imports fell to 2.77 billion from 2.99 billion (revised from 3.01 billion) against 2.70 billion a year earlier the Bureau said. It said a four pct decline in rural exports despite an 11 pct rise in wheat exports was more than offset by a seven pct rise in non-rural exports notably minerals and fuels. On the import side the main decreases were falls of 17 pct in machinery and transport equipment and 21 pct in fuels the Bureau said. The net services deficit narrowed to 146 mln dlrs from 253 mln (revised from 268 mln) in January and 192 mln a year earlier the Bureau said. This made a sharply lower deficit of 104 mln dlrs on the balance of goods and services against deficits of 499 mln in January and 354 mln a year earlier. Deficit on net income and unrequited transfers was 646 mln dlrs against 736 mln in January and 543 mln a year earlier. Official capital transactions in February showed a surplus of 786 mln dlrs against a 2.56 billion surplus in January and a 505 mln surplus a year earlier. Non-official capital and balancing item showed a 36 mln dlr deficit against a 1.33 billion deficit in January and a 392 mln surplus in February 1986 the Bureau said. The cumulative current account deficit for the first eight months of fiscal 1986/87 ending June 30 widened to 9.37 billion dlrs from 9.32 billion a year earlier. The cumulative trade deficit narrowed to 2.09 billion dlrs from 2.21 billion and the services deficit to 2.25 billion from 2.75 billion but the transfers deficit widened to 5.03 billion from 4.36 billion. The cumulative official capital surplus narrowed to 2.90 billion dlrs from 3.86 billion. REUTER | AUSTRALIAN CURRENT ACCOUNT DEFICIT NARROWS IN FEB |
Finance Minister Kiichi Miyazawa said he had no intention of modifying at the moment a proposed bill introducing a sales tax. Parliamentary deliberation must be conducted fully before we see whether to revise it or not Miyazawa told reporters. He also said he had not heard anything about Deputy Premier Shin Kanemaru suggesting modification of the tax. The Japanese press has reported that Kanemaru proposed yesterday a freeze or a modification of the value-added tax as he saw growing public opposition. Debate on the sales tax has been stalled by a sporadic opposition boycott over their objections to the tax. Miyazawa said he did not expect the bill to be altered even after Parliament completes its deliberations. He also said the Government is undecided on the scale of a proposed provisional budget for fiscal 1987 beginning on April 1. The minister declined to comment on wide-spread press speculation that the stop-gap budget would total more than 1000 billion yen. The Government is working on a provisional budget as the chances of passing a full one by April 1 are virtually nil as a result of the halt in parliamentary business officials said. The Government wants to include as many economic stimuli as possible in the provisional budget to boost domestic demand increase imports and reduce its trade surplus they said. REUTER | MIYAZAWA SAYS NO INTENTION TO ALTER SALES TAX BILL |
Australias official reserve assets fell to the equivalent of 8.50 billion U.S. Dlrs in February from 9.15 billion in January compared with 9.06 billion a year earlier the Reserve Bank said. In Australian dollar terms reserves fell by 1.24 billion dlrs to 12.60 billion after falling 1.71 billion to 13.85 billion in January and rising 792 mln to 12.92 billion in February 1986. The bank said that excluding valuation effects it estimated reserves fell 853 mln dlrs after falling 2.34 billion in January and rising 323 mln a year earlier. The individual value of reserve assets in Australian dollars at end-February with end-January and year-earlier respectively in brackets were. Gold 4.71 billion (4.90 billion and 3.83 billion) SDRs 503 mln (524 mln and 468 mln) IMF reserve position 354 mln (365 mln and 312 mln) U.S. Dollars 3.25 billion (both 3.99 billion) other foreign exchange 3.78 billion (4.07 billion and 4.32 billion). REUTER | AUSTRALIAN RESERVES FALL IN FEBRUARY |
Japan February wholesale prices fall 0.1 pct (0.6 pct January drop) - official |
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Japans overall wholesale price index (base 1980) fell 0.1 pct in February from a month earlier to 86.4 for the second consecutive month-on-month fall the Bank of Japan said. Wholesale prices fell 0.6 pct in January from December. The index fell 9.1 pct from a year earlier for the 21st straight year-on-year drop the central bank said. The reduced month-on-month drop mainly stemmed from the recovery in world crude oil prices it said. On a customs-cleared basis crude oil prices rose to around 17 dlrs a barrel in February from about 15 dlrs in January. The average value of the yen against the dollar rose 0.8 pct to 153.50 in February from 154.67 in January and was up 16.8 pct from 184.55 a year earlier the bank said. The export price index in February fell 0.7 pct from a month earlier reflecting price cuts in export products like cars and precision instruments due to severe foreign competition. The index was down 7.1 pct from a year earlier. The import price index rose 1.1 pct from a month earlier to 57.4 for the sixth successive month-on-month gain mainly due to the continued strength of world crude oil prices. But the index was down 29 pct from a year earlier. The domestic price index fell 0.1 pct to 91.9 in February its 24th straight monthly drop mainly reflecting falls in prices of home appliances such as colour televisions due to severe sales competition at home. Lower edible oil prices added to the decline. The index was down 6.7 pct from a year earlier. The domestic index marked its largest year-on-year drop of 7.1 pct in January since the central bank started compiling such statistics in 1960 under its current system. Wholesale prices are likely to turn upward in March as higher world crude oil and raw material prices are expected the bank said. REUTER | JAPAN WHOLESALE PRICES FALL 0.1 PCT IN FEBRUARY |
Mitsubishi Bank Ltds Hong Kong branch is planning a 40 mln New Zealand dlr certificate of deposit CD issue banking sources said. The three-year CDs are denominated in 100000 dlr units and will carry interest at 37.5 basis points below the three-month New Zealand bank bill rate. Payment date is expected to be around April 1. ANZ Securities Asia Ltd is lead manager for the issue. REUTER | MITSUBISHI BANK <MITB.T> PLANS 40 MLN N.Z. DLR CD |
West German President Richard von Weizsaecker said both debtor and creditor nations share responsibility for the Third Worlds foreign debt crisis. Weizsaecker in a speech on the first day of an official visit to Argentina said: Debtor and creditor countries have created this situation jointly. They also share responsibility for finding lasting solutions. Local officials have payed great importance to Weizsaeckers visit because they consider him a key backer of more flexible repayment terms for Argentinas 51 billion dlr foreign debt Latin Americas third largest. Weizsaecker speaking at a reception held for him by President Raul Alfonsin at Buenos Aires City Council hall also said no one could overlook the enormity of the obstacle posed by the foreign debt to countries like Argentina. Democracy in Latin America must not be endangered because of misery or new injustices he said. Argentine officials said they might halt debt payments last month if creditor banks did not agree to a new 2.15 billion dlr loan. An Argentine mission is now in the U.S. For talks with 11 banks seeking to win an easing of repayment terms and secure the loan. Weizsaecker said Argentina has had difficulties with the European Community over trade barriers and subsidies for grain exports. We are making efforts to eliminate them with the help of balanced interest from all parties he said. Argentina has said the barriers and subsidies cut unfairly into the countrys traditional markets for its grain exports. Weizsaecker arrived for a four-day visit opening a Latin American tour which includes Bolivia and Guatemala. He held brief talks on Sunday with Brazilian President Jose Sarney during a stopover in Brasilia. REUTER | CREDITORS/DEBTORS SHARE RESPONSIBILITY-WEIZSAECKER |
European Community (EC) foreign ministers have agreed on an aid package of loans and grants totalling more than 1.6 billion European Currency Units (Ecu) for states in the southern and eastern Mediterranean region. The five-year accord increases aid to the states Tunisia Israel Jordan Lebanon Morocco Algeria Egypt and Syria by about 60 pct from the previous pact Belgian Foreign Minister Leo Tindemans told a news conference. The ECs executive Commission had proposed a package of more than 1.7 billion Ecus about 70 pct more than the last aid deal but West Germany and Britain called for the rise to be kept to 30 pct. The package includes 615 mln Ecus in cash grants from the EC while just over one billion Ecus will be made available in loans from the European Investment Bank the ECs long-term investment arm. Details of how the money is to be distributed will be worked out by EC officials. Syria while still officially included on the list will not receive any money unless EC ministers specifically agree to it. The EC last year imposed sanctions against Syria because of its alleged role in the attempted bombing of an Israeli airliner. REUTER | EC AGREES ON AID PACKAGE FOR MEDITERRANEAN STATES |
Strikes against a government freeze on wages spread to most regions of Yugoslavia last week the official news agency Tanjug said last night. It said thousands of workers were involved and officials feared more strikes were on the way. At least 60 strikes have taken place around Yugoslavia in the past two weeks but most of those previously reported were in the northern republic of Croatia. Prime Minister Branko Mikulic imposed the wage freeze last month in an effort to curb rampant inflation now running at an annual rate of almost 100 pct. The government froze wages at their level in the fourth quarter of 1986 and said any future rises must be linked to productivity. The measure met widespread disapproval. Even some senior executives of major industrial enterprises have criticised the freeze in interviews with Tanjug. The agency said strikes took place last week in the southern republic of Montenegro and the predominantly ethnic Albanian province of Kosovo. In the central republic of Bosnia and Hercegovina 1700 workers struck while many teachers in Belgrade refused to take their paychecks. Earlier Yugoslav journalists who asked to remain anonymous told Reuters they had been barred from strike-hit factories. They said they had been told they could not enter without permits whereas before the strikes no permits had been necessary to visit factories. REUTER | STRIKES AGAINST WAGE FREEZE SPREAD IN YUGOSLAVIA |
Finlands Conservatives emerged with major general election gains after a swing away from the left. Conservative Party leader Ilkka Suominen told reporters they cant keep us out of government now after the Party gained nine Parliamentary seats in elections held on Sunday and Monday taking its total to 53 seats. With 99 pct of votes counted Prime Minister Kalevi Sorsas Social Democratic Party had lost just one seat despite a 2.5 pct drop in support. The Social Democrats held 57 seats in the last 200-seat parliament the Conservatives 44 and the Centre Party 37. It may take weeks for the political complexion of the new government to take shape as major parties negotiate to see which grouping can form a majority. But the result is expected to be a change from the outgoing centre-left coalition. Political commentators said the results will have far-reaching implications as they showed a significant swing from the left which has dominated post-war Finnish politics. Despite the Conservative revival commentators said there would be no immediate change in foreign policy which is moulded by Finlands sensitive position in the shadow of the neighbouring Soviet Union. The environmentalist Greens doubled their seats in parliament to four although opinion polls had forecast they would win 10. The Communists split for the first time into pro-Moscow Stalinists and Eurocommunists. The Eurocommunists retained their 17 seats while the Stalinists expelled from the official Communist Party in 1986 lost six of their 10 seats. REUTER | CONSERVATIVES MAKE MAJOR GAINS IN FINNISH POLLS |
Congressional investigators tentatively plan to grant immunity to former presidential National Security Advisor John Poindexter who they say may help track missing money from Iran arms sales. Congressional sources told Reuters the House of Representatives and Senate committees probing the arms scandal are expected to back a preliminary accord reached last Friday by their legal advisors to grant Poindexter immunity from prosecution in return for his testimony. He would be the first leading figure in the affair to be granted immunity. Poindexter resigned from his White House post in November when it was divulged that up to 30 mln dlrs in arms sales profits might have been diverted to Nicaraguan contra rebels. Congressional investigators and a presidential review commission have not tracked beyond secret Swiss and Cayman Island bank accounts mlns of dlrs said to have been diverted. The sources said Poindexter could help trace the money which is one of the big riddles of the scandal. Obviously we think he is a very important witness said a House source. Poindexter has refused to testify before Congress citing his constitutional rights against self-incrimination. REUTER | POINDEXTER MAY GET IMMUNITY TO HELP TRACK FUNDS |
The <Oil and Natural Gas Commission> of India has signed for a 26.5 mln U.S. Dlr Italian buyers credit co-lead manager Bankers Trust Co said. It said the 12-year facility guaranteed by the Indian government carries interest at a fixed rate of 7.40 pct. Repayment starts in 1989 and is in 20 semi-annual instalments. Italys export credit agency Mediocredito Centrale provides an undisclosed interest subsidy to the lenders. The other lead managers are State Bank of India and Grindlays Bank Plc. Managers are Irving Trust Co Toyo Trust and Banking Co Ltd and Standard Chartered Bank. REUTER | INDIAN OIL/GAS COMMISSION GETS 26.5 MLN DLR CREDIT |
Toyota Motor Corp <TOYO.T> of Japan is expected to get approval from a Philippine government agency to produce cars and other items here government sources said. This follows the companys proposal to invest about 400 mln pesos and generate about 100 mln dlrs in export earnings over five years. The sources said Toyota is likely to be brought into the government-backed Progressive Car Manufacturing Program (PCMP) which since the 1970s has controlled the number of car makers. The PCMP is administered by the Board of Investments (BOI) which screens investments by foreigners and locals. The sources said Toyota had also applied to produce wiring harness hardboard and ferro-silicone for local and export markets. It has not yet said what kind of cars it will make. The sources did not say when BOI would announce its decision on the Toyota application. In 1984 Toyota severed its ties with <Delta Motor Corp> its local partner for more than 20 years because the latter was suffering financial difficulties. The state-owned Philippine National Bank later foreclosed on Deltas assets and the sources said Toyota is now negotiating to buy these. The government sources also said Toyota was in the final stages of negotiations with a new local partner. Toyota would be the third participant in the PCMP joining <Pilipinas Nissan Inc> and <Philippine Automotive Manufacturing Corp> formerly Canlubang Automotive Resources Corp. Two U.S. Car firms General Motors Corp <GM.N> and Ford Motor Co <F.N> withdrew from the local car market shortly after the country was hit by a financial crisis in 1983. REUTER | TOYOTA SEEN GETTING MANILA APPROVAL FOR CAR OUTPUT |
Underlying dollar sentiment is bearish and operators may push the currency to a new low unless Japan takes steps to stimulate its economy as pledged in the Paris accord foreign exchange analysts polled by Reuters said here. The dollar is expected to try its psychological barrier of 150.00 yen and to fall even below that level a senior dealer at one leading bank said. The dollar has eased this week but remains stable at around 151.50 yen. Six major industrial countries agreed at a meeting in Paris in February to foster currency stability. Some dealers said the dollar may decline in the long term but a drastic fall is unlikely because of U.S. Fears of renewed inflation and fears of reduced Japanese purchases of U.S. Treasury securities needed to finance the U.S. Deficit. Dealers generally doubted whether any economic package Japan could adopt soon would be effective enough to reduce its trade surplus significantly and said such measures would probably invite further U.S. Steps to weaken the dollar. Under the Paris accord Tokyo promised a package of measures after the fiscal 1987 budget was passed to boost domestic demand increase imports and cut its trade surplus. But debate on the budget has been delayed by an opposition boycott of Parliamentary business over the proposed imposition of a five pct sales tax and the government has only a slim chance of producing a meaningful economic package in the near future the dealers said. If no such steps are taken protectionist sentiment in the U.S. Congress will grow putting greater downward pressure on the dollar they said. The factors affecting the U.S. Currency have not changed since before the Paris accord they added. Underlying sentiment for the dollar remains bearish due to a still-sluggish U.S. Economic outlook the international debt crisis triggered by Brazils unilateral suspension of interest payments on its foreign debts and the reduced clout of the Reagan administration as a result of the Iran/Contra arms scandal said a senior dealer at a leading trust bank. There is a possibility that the dollar may decline to around 140.00 yen by the end of this year said Chemical Bank Tokyo branch vice president Yukuo Takahashi. But operators find it hard to push the dollar either way for fear of possible concerted central bank intervention. Dealers said there were widespread rumours that the U.S. Federal Reserve telephoned some banks in New York to ask for quotes last Wednesday and even intervened to sell the dollar when it rose to 1.87 marks. The Bank of England also apparently sold sterling in London when it neared 1.60 dlrs on Wednesday they said. But other dealers said they doubted the efficacy of central bank intervention saying it may stimulate the dollars decline because many dealers are likely to await such dollar buying intervention as a chance to sell dollars. However First National Bank of Chicago Tokyo Branch assistant manager Hiroshi Mochizuki said The dollar will not show drastic movement at least to the end of March. Other dealers said the U.S. Seems unwilling to see any strong dollar swing until Japanese companies close their books for the fiscal year ending on March 31 because a weak dollar would give Japanese institutional investors paper losses on their foreign holdings which could make them lose interest in purchases of U.S. Treasury securities. U.S. Monetary officials may refrain from making any comments this month to avoid influencing rates they said. REUTER | DOLLAR SEEN FALLING UNLESS JAPAN SPURS ECONOMY |
The Australian dollar rose more than 40 points and money market interest rates retreated on the better than expected improvement in the February current account deficit but economists and dealers were cautious about identifying it as the start of a downward trend. The current account deficit narrowed to 750 mln dlrs in February from 1.23 billion in January. It hit 13.82 billion dlrs in 1985/86 to end-June. The currency jumped to 0.6858/63 U.S. Dlrs and traded as high as 0.6875 before retreating to around 0.6864/69. Its got 69 cents written all over it one dealer said. Foreign exchange dealers said some buyers had gone long on the dollar expecting a lower figure and sold it down about 30 points to 0.6820 U.S. Dlrs before the release. The 750 mln dlr deficit was at the lower end of forecasts and analysts said the market would welcome any figure below one billion dlrs for March. Banque National de Paris <BNPP.A> senior dealer Peter Nicolls cautioned that in the long term the currency and interest rates were too high for import substitution and export industries. Nicolls said he expected the dollar to go as high as 0.6875 and perhaps to 69 cents tomorrow. <Lloyds Bank NZA Ltd> chief economist Will Buttrose said the 42 mln dlr trade surplus was encouraging as were imports at 2.77 billion dlrs down from 2.99 billion in January. But he warned that the outlook for rural and iron and coal exports remained poor. We should remember we are paying something like seven to eight billion dollars simply to service our foreign debt and that is not going to go away in the near term Buttrose said. Buttrose said he expected a March deficit of around 900 mln dlrs and added Any figure under a billion dollars will be acceptable (to the markets). ANZ Banking Group Ltd <ANZA.S> senior economist Ian Little said the big question was whether the improvement in exports could be sustained. February FOB exports rose to 2.82 billion dlrs from a revised 2.74 billion in January. Interest rates responded quickly to the deficit news with 90-day bank bill yields falling to 16.42-16.45 pct from early highs of 16.50 and yields yesterday as high as 16.65. Longer term yields fell with 10-year bonds at 13.66/68 pct from 13.74 before the release and highs of 13.87 yesterday. The stock market was easier at midsession but brokers said the current account data had little impact on trading. REUTER | MARKET WELCOMES LOWER AUSTRALIAN PAYMENTS DEFICIT |
Hongkong and Shanghai Banking Corp <HKBH.HK> is close to a deal on the sale of a commercial building in Hong Kongs Mongkok business district a bank spokesman said. He said the 21-storey Wayfoong Plaza was likely to be sold for about 280 mln H.K. Dlrs but declined to identify the buyer. The spokesman gave no further details. REUTER | HONGKONG BANK SAYS CLOSE TO DEAL ON PROPERTY SALE |
China will set quotas later this month to cut the amount of farmland converted to non-agricultural uses the China Daily said. The quotas will restrict the conversion of farmland to farmers housing or construction by state departments and collective institutions and enterprises. The newspaper quoted Wang Xianjin general director of the State Land Administration as saying the 1987 quota would be below the 320000 hectares lost in 1985. Land loss and population growth have cut cultivated land per person to one-tenth of a hectare half the amount of the early 1950s. REUTER | CHINA IMPOSES QUOTAS TO CUT LOSS OF FARMLAND |
Thailands M-1 money supply rose 9.8 pct to an estimated 117.3 billion baht in January after increasing 6.6 pct in December the Bank of Thailand said. It said year-on-year M-1 grew 23.1 pct in January after an 18.5 pct increase in December. The central bank said M-2 rose 1.7 pct to an estimated 686.5 billion baht in January after a 2.4 pct increase in December while year-on-year it expanded 13.3 pct after a 12.6 pct rise in December. REUTER | THAI M-1 MONEY SUPPLY RISES IN JANUARY |
The Economic Planning Agency will announce gross national product (GNP) figures for the October/December quarter today at 1700 hrs local time (0800 gmt) Agency officials told Reuters. In the July/September quarter GNP rose 0.6 pct from the previous three months. REUTER | JAPAN TO RELEASE GNP FIGURES LATER TODAY |
U.S.-backed Contra rebels tried to blow up an electricity pylon supplying a Managua industrial zone in what Western diplomats say was the rebels first sabotage attack in the Nicaraguan capital. An Interior Ministry statement said power supplies were not affected by the blast which slightly damaged the tower. No injuries were reported. Residents near the site of the blast told reporters the rebels also scattered leaflets in the area encouraging rebellion against the Sandinista government. REUTER | CONTRAS CARRY OUT FIRST RAID IN NICARAGUAN CAPITAL |
Taiwans balance of payments surplus widened to a record 16.62 billion U.S. Dlrs in calendar 1986 from 9.35 billion in 1985 the central bank said. A bank official attributed the increase mainly to Taiwans growing trade surplus which increased to a record 16.8 billion U.S. Dlrs in 1986 from 11.2 billion in 1985. He said the deficit on invisible trade narrowed to 740 mln U.S. Dlrs from 1.97 billion. Invisible earnings rose to 6.77 billion from 5.09 billion while invisible spending climbed to 7.51 billion from 7.06 billion he said. REUTER | TAIWAN 1986 BALANCE OF PAYMENTS SURPLUS IS RECORD |
The European Community (EC) yesterday warned Japan and the United States its main trading partners that friction over trade issues is affecting the ECs relations with both countries. EC foreign ministers issued a statement deploring Japans continued trade imbalance and appealed for the country to make a greater effort to open up its markets. They also said they were disturbed by a draft bill before the U.S. Congress that would impose permanent quotas on textile imports and were prepared to react. The U.S. Administration has already distanced itself from the bill. EC External Trade Commissioner Willy De Clercq has written to his U.S. Counterpart Trade Representative Clayton Yeutter outlining the ECs concerns. The statement said ministers were very disturbed by U.S. Moves towards protectionism. The adoption of such measures would not fail to have a negative effect on the process of multilateral negotiations just started as well as on bilateral relations it said. Any unilateral U.S. Moves would leave the EC no option but to react according to the laws of the General Agreement on Tariffs and Trade it said. In a separate statement on Japan the EC ministers said they deplore the continued aggravation of the imbalance in trade (and) expect Japan to open up its market more. The statement said the EC would continue to insist that Japan boost imports and stimulate domestic demand. Ministers also called on the EC Commission to prepare a report on U.S.-Japanese trade for July this year to enable them to take appropriate action where necessary. One diplomat said the call for a report showed ministers were determined not to let the Japanese question drop. It will be back on the table again and again the diplomat said. De Clercq talking to journalists during the meeting said There is a certain nervousness a growing impatience within the Community concerning trade relations with Japan. The EC is not satisfied with Japans inability to cut its trade surplus and the Commission has adopted a tough approach on imports of goods such as Japanese photocopiers where it has imposed 20 pct anti-dumping duties. But diplomats said the EC is keen to negotiate with Tokyo to solve the problem rather than embark on a costly and damaging trade war and the ministers called for more cooperation with Japan in industry and research. REUTER | EC WARNS U.S. AND JAPAN ON TRADE TENSIONS |
Buoyed by low fuel prices and favourable currency factors Cathay Pacific Airways Ltds <CAPH.HK> 1986 profits are expected to surpass the airlines forecast of one billion H.K. Dlrs stock analysts said. Analysts said they expect the airline to show net earnings of between 1.1 billion and 1.25 billion dlrs when it reports results tomorrow for its first year as a public company. Cathay 51 pct owned by Swire Pacific Ltd <SWPC.HK> made its earnings forecast in the prospectus for its flotation in May last year. Cathay is expected to pay a 13-cent final dividend making a total of 19 cents for the year as forecast in the prospectus analysts polled by Reuters said. They said the airlines performance improved in the second half of the year after it reported interim profits of 503 mln dlrs. The weakness of the local currency pegged at 7.80 to one U.S. Dollar and low fuel prices moved further in the companys favour from the assumptions made in the prospectus at the time of the flotation James Capel (Far East) Ltd said. James Capel estimates average fuel prices for the airline industry in 1986 at 63 U.S. Cents per gallon 27 pct below the 1985 level. It said a one pct movement in fuel prices would affect Cathays net profits by 10 mln dlrs and forecast profits of 1.25 billion dlrs. Analysts said the companys estimates of fuel price and currency movements set out in its prospectus were conservative. This is reflected in their interim results which showed that profit margin has increased said Frederick Tsang of Mansion House Securities (F.E.) Ltd. Cathays six-month turnover rose 19.8 pct from year-earlier levels but profits rose 69 pct. The rise in oil prices in late 1986 had little impact on the companys fuel oil bill last year as aviation fuel prices usually lag behind crude price movements by several months analysts said. By last September the yen had risen some 54 pct against the Hong Kong dollar from the end of 1985 the mark 43 pct and sterling 12 pct. Overall the weakness of the Hong Kong dollar against Cathays major trading currencies helped push passenger yields in the first half up 7.2 pct said James Capel. This should continue through the second half to enable passenger yields to end the year up 7.6 pct. A strong performance from the 2.9 billion dlrs in cash under management also improved profits James Capel said. A general improvement in air traffic last year contributed to Cathays revenue increase but the companys load factor declined because of increased competition and an expansion of its fleet and services. James Capel estimated Cathays passenger-kilometres flown last year rose six pct from 1985 and freight-kilometres flown climbed 17 pct though the airlines load factor probably fell to 68.8 pct from 70 pct. Cathay added new planes and was forced to fly some routes last year because of the threat of competition from Dragon Air said Tsang. This affected its load factor. Fear of possible competition from fledgling carrier <Hong Kong Dragon Airways Ltd> may have contributed to Cathays decision to resume service to New Zealand last year analysts said. REUTER | CATHAY PACIFIC 1986 PROFIT SEEN ABOVE TARGET |
The Renison Goldfields Consolidated Ltd <RGFJ.S> (RGC) Mt Lyell copper mine in Tasmania will stay open for an extra five years following a new aid package from the state government RGC said in a statement. The mine had been scheduled to close in 1989 after the 40 series stopes were mined but will now stay open until the deeper 50 and 60 series have played out probably in 1994. The Australian dollars fall since 1985 also improved the local dollar copper price making the company profitable and justifying the mining of deeper reserves at a copper grade of about 1.95 pct against about 1.60 pct now the firm said. Ore output will be cut but the higher grades will keep contained-copper output at current levels of about 24000 tonnes a year it said. Capital expenditure of about 18 mln dlrs will be required over the life of the new plan RGC said. The latest aid package is the third since 1977 for RGC a major employer in Queenstown on the thinly populated west coast of Tasmania. The mine was kept open in 1985 after Tasmania gave RGC 10 mln dlrs in aid. The new package includes an eight mln dlr advance to RGC at the long-term bond rate power concessions and deferred royalties and payroll taxes. REUTER | RENISON GOLDFIELDS EXTENDS LYELL COPPER MINE LIFE |
<Independent Newspapers Ltd> (INL) said it bought two more community newspapers in Houston Texas through a subsidiary there for an undisclosed sum. INL said in a statement <Houston Community Newspapers Inc> bought the South West Advocate and the South Bend Advocate with combined circulation of 74000 copies and associated assets from <The Advocate Communications Corp Inc>. INL publishes Wellingtons morning and evening newspapers as well as New Zealand provincial dailies and newspapers in Rhode Island. Just under 40 pct of INL is owned by <News Ltd> an Australian subsidiary of News Corp Ltd <NCPA.S>. Production and administration of the two publications would be transferred to the companys existing centre in Houston. INL said the acquisition took effect on March 1. INL chairman Alan Burnet said the purchase would enable the subsidiary to offer advertisers a combined distribution of nine community newspapers to 340000 homes in the greater Houston area. Trading conditions in the area are particularly difficult because the citys economy depends to a large extent on the fortunes of the petroleum industry but the situation should improve in the medium to long term and the investment will prove to be sound he said. REUTER | NEW ZEALAND PRESS GROUP BUYS MORE TEXAS NEWSPAPERS |
India is preparing to launch its first intercontinental-range rocket which it insists is part of a purely peaceful space program. But a space department official who did not wish to be identified said the Augmented Space Launch Vehicle (ASLV) with the range of an intercontinental rocket and able to carry a 150-kg satellite could be converted into a weapon after modifications. Space Commission Chairman Udipi Ramachandra Rao said the ASLV will be launched between March 20 and April 5 depending on weather and other factors. This launch will pave the way for the most important stage by the end of 1989 when we test the Polar Space Launch Vehicle (PSLV) Rao told Reuters. The space department official said the PSLV would be able to launch 1000-kg satellites into polar orbit. Rao said a successful ASLV launch could speed up the space program slightly but was not likely to solve the problem of a backup satellite for Indias Insat 1B. Insat 1B handles telephone communications controls 182 of the countrys 187 television stations and provides meteorological data for farmers. It is a great worry that we do not have a second satellite to back up Insat 1B in case it fails. Even with Insat 1Cs launch by Ariane in the first quarter of 1988 we will still be in trouble because the life of Insat 1B ends in 1989 Rao said. He said India plans to send up Insat 1D as soon as possible as a backup for Insat 1C but will have to wait for a place on a NASA or Ariane launch vehicle. We cant use Soviet vehicles because the satellites are made in the United States he said. REUTER | INDIA PREPARES TO LAUNCH INTERCONTINENTAL ROCKET |
U.S. Agriculture Secretary Richard Lyng warned the European Community yesterday it will face serious retaliation if it enacts a new tax on products such as U.S. Soybean oil. Speaking at a news conference before a scheduled speech Lyng said he did not think the tax which is still in the discussion stage would be approved. He said the U.S. Would take serious retaliatory action because if implemented the tax would have a considerable impact on U.S. Farmers. REUTER | U.S. AGRICULTURE SECRETARY WARNS EC ON SOY OIL TAX |
The Kobe Rubber Exchange said it will extend its trading hours from May 1 to enable more operators to use the exchange. Subject to Ministry of International Trade and Industry approval the Exchange will add a sixth session starting at 1700 local time and will close the account for trading at the new session the following day before the opening call starts at 0930 local time an Exchange official said. Trading on the Singapore rubber market a major producer price indicator for Japanese end-users is usually active after the end of the current final session here. The introduction of the new session will enable participants to trade overnight after taking account of Singapore rubber prices because brokers and members who are designated by the Kobe Exchange are allowed to add the volume traded overnight to the new final session before the opening session starts next day the official said. But because the Kobe Exchange uses the auction system which sets a fixed price at each session the price of contracts traded overnight should be a fixed price settled at the sixth session he added. Industry sources said they expected the Ministry to approve the plan because it has encouraged the Japanese futures industry to expand and internationalise. The Tokyo Commodity Exchange for Industry TOCOM which also trades rubber futures in Japan said it has no plans to introduce an extra session. TOCOM also has five rubber trading sessions a day. Four sessions start 15 minutes later than Kobe Exchange sessions but both Exchanges final sessions start at the same time. REUTER | KOBE RUBBER EXCHANGE TO EXTEND TRADING HOURS |
Coastal Corp said a federal bankruptcy court will hear its request today for a restraining order to stop a two billion dlr lawsuit against it by <TransAmerican Natural Gas Corp>. TransAmerican which entered Chapter 11 bankruptcy proceedings in 1983 to reorganise its debts filed the lawsuit to block Coastal from taking control. Coastal spokesman Jim Bailey confirmed the company which is an unsecured creditor of TransAmerican would present its own reorganisation plan to the bankruptcy court. Under the plan Coastal would buy the natural gas reserves and pipeline system owned by TransAmerican in Texas for an undisclosed amount. TransAmerican lawyer John Nabors said the company values its total assets including an unused oil refinery at about one billion dlrs. The company the second-largest natural gas producer in Texas said it has gas reserves of 1.2 trillion cubic feet and over 1000 miles of pipeline and gas gathering lines. About 80 pct of TransAmericans gas is available for spot market sales in Texas during peak demand it said. Nabors said the TransAmerican reorganisation would repay its 770 mln dlr debt with profits from natural gas sales. The lawsuit seeks one billion dlrs in actual damages and one billion in punitive damages from Coastal. Coastal has been trying to break into the Texas gas market since 1979 when it was forced to sell <Lo-Vaca Gas Gathering Co> to settle over 1.6 billion dlrs in lawsuits by Texas customers facing abrupt curtailment of supply. Coastal a natural gas producer and pipeline company earned 71.6 mln dlrs on sales of 6.7 billion in 1986 about half the its 1985 profits due to slumping energy prices. REUTER | COASTAL <CGP> SEEKS TO HALT BILLION DLR LAWSUIT |
Indias state owned <National Thermal Power Corp Ltd> signed a 169.1 mln mark Italian buyers credit Bankers Trust Co a joint lead manager said. The 15-1/2 year facility with a six year grace period carries fixed interest of 6.48 pct. It is guaranteed by the Indian government with an interest subsidy provided by Italys export credit agency Mediocredito Centrale. The lead managers are the State Bank of India Grindlays Bank Plc and MecFint (Jersey) Ltd. Managers are Dresdner (South East Asia) Ltd Mitsui Trust and Banking Co Ltd and the UCO Bank. Co-manager is DB Asia Finance (HK) Ltd. REUTER | INDIAN THERMAL POWER FIRM GETS 169 MLN MARK CREDIT |
TOKYO STOCK MARKET AVERAGE RISES 99.36 TO RECORD CLOSING HIGH OF 21,514.73 |
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A government study has concluded the U.S. Will be dependent on oil from the middle east into the next century and must take steps to reduce its vulnerability the New York Times said. The newspaper said the inter-agency government study found a serious oil-dependency problem due to steadily falling domestic production and rising demand for imported oil. The study concluded that by 1995 the U.S. Will be relying on foreign countries for 50 pct of its oil more than the peak of 48 pct reached in 1977 and far above the 33 pct rate during the 1973-74 Arab oil embargo. The U.S. Now imports about 38 pct of its oil needs up from 27 pct a year ago the New York Times said. It said recommendations sent to the White House by Energy Secretary John Harrington include financial incentives to raise domestic oil production by one mln barrels a day from the current 8.4 mln barrels. The newspaper said the administration has placed increased emphasis on stockpiling oil reserves. It said the view now held is that the Strategic Petroleum Reserve to be tapped in times of shortages should be increased by 100000 barrels a day rather than 35000 as called for in the 1988 budget. The newspaper said Harrington may propose restoring the depletion allowance to major producers. The administration also plans to renew its efforts to ...Repeal the windfall profits tax remove bars to drilling on the outer continental shelf and repeal the law that limits the use of natural gas in industrial and utility boilers it added. The New York Times quoted Senator Don Nickles of Oklahoma as saying the study greatly underestimated potential U.S. Demand for imported oil in the next decade and overestimated the amount of domestic oil which would be produced. REUTER | STUDY PREDICTS U.S. DEPENDENCE ON FOREIGN OIL |
JAPAN M-2 PLUS CD MONEY SUPPLY ROSE 8.8 PCT IN YEAR TO FEBRUARY (JAN 8.6) - OFFICIAL |
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Japans broadly defined money supply average of M-2 plus certificate of deposits (CDs) rose a preliminary 8.8 pct in February from a year earlier compared with an 8.6 pct rise in January the Bank of Japan said. The seasonally adjusted February average of M-2 plus CDs supply rose 0.8 pct from January it said. Unadjusted M-2 plus CDs stood at an average 336000 billion yen in February compared with 337100 billion yen in January. REUTER | JAPAN FEBRUARY MONEY SUPPLY RISES 8.8 PCT |
The Malaysian government said it is issuing 1.6 billion ringgit worth of loan stock on the domestic money market a treasury statement said. The issue the first such offering this year will comprise 250 mln ringgit of eight-year stock at 6.6 pct 700 mln of 10-year stock at 6.8 pct and 650 mln of 21-year stock at 7.6 pct all prices at par it said. The issue is open with immediate effect and will close when fully subscribed the statement said. Proceeds will be used to finance development. REUTER | MALAYSIA PLANS 1.6 BILLION RINGGIT LOAN ISSUE |
Chinas grain imports will rise in 1987 because of a serious drought and increasing demand but will be not be as large as in the past Chinese officials and Japanese traders told Reuters. They said foreign exchange constraints and national policy would not allow a return to large-scale imports which peaked at 16.15 mln tonnes in 1982. An agricultural official of the Shanghai government put maximum imports at about 10 mln tonnes this year against 7.73 mln in 1986 and 5.97 mln in 1985. Officials said grain imports rose in 1986 because of a poor harvest and rising domestic demand but remained below exports which rose to 9.42 mln tonnes from 9.33 mln in 1985. China is short of foreign exchange the Shanghai official said. We cannot rely on imports even at current low world prices. Only if there is a major disaster will we become a major importer. A Japanese trader in Peking said Chinese grain imports would rise and exports fall this year because of the drought low world prices and rising domestic demand for human and animal consumption. At current prices China loses yuan on every tonne of grain it exports though it earns foreign exchange which it badly needs the trader said. The Peoples Daily said last Saturday a serious drought is affecting 13.3 mln hectares of arable land which will reduce the summer grain harvest from last years level. The paper added that leaders in some areas were not paying enough attention to agriculture especially grain making it difficult to achieve the 1987 grain output target of 405 mln tonnes against 391 mln in 1986. All areas must spare no effort to raise the autumn harvest area especially of corn sweet potatoes paddy rice and high-yield cash crops it said. It added factory production might have to be reduced to provide electricity for agriculture if it was needed to fight the drought. Since January the press has devoted much attention to grain stressing that growth in output is vital to Chinas economic and political stability and that prices paid to farmers are too low. Officials in east China have repeatedly said stable grain production is a key state policy and outlined the measures being taken in their areas to encourage output. The Shanghai official said that in one suburb 10 pct of the pre-tax profits of factories are used to subsidise agriculture. He said rural industries in other suburbs also set aside money for grain and pay the salaries of some of the 70000 workers available to help farmers. Chu Jinfeng an official of Fengbing county outside Shanghai said factory workers get 60 yuan a month and three years unpaid leave to grow grain and can keep the profits. Pan Huashan an official of the agricultural department of Zhejiang Province said rural industry also subsidises grain output in his province. In addition we are setting up grain production bases raising the level of science and technology on the farms and improving the supply of raw materials roads and other infrastructure he said. The Shanghai official said rural residents who work in industry or commerce usually keep their land to farm in their spare time or let other family members farm it. In some cases they lease the land to grain farmers. The China Daily said last month that grain output should reach between 425 and 450 mln tonnes by 1990 and between 480 and 500 mln by 2000. It said growing grain should be made profitable. The advantages the state promises grain growers actually yield tangible profits for them and are not siphoned off by intermediate agencies because of bureaucracy or corruption. Only this will boost enthusiasm it said. REUTER | CHINA TO IMPORT MORE GRAIN IN 1987 |
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