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Cocoa Council agrees new buffer stock rules - delegates
|
Cocoa Council agrees new buffer stock rules - delegates
| Financial Reports |
MARS STORE <MXXX> SEES QTR, YEAR LOSS AND CHARGE
| Mars Store Inc said it
expects to report a loss of about 800,000 dlrs for the fourth
quarter and about 1.1 mln dlrs for the fiscal year ended
January 31.
As a result of the loss, the company said it has decided to
discontinue the operations of its Big Value Outlets division,
which will result in a yet undisclosed one time charge against
earnings for the year.
The estimated 1.1 mln dlrs year loss or about 50 cts a
share, compares with earnings of 871,000 dlrs or 42 cts a share
recorded last year.
"The fourth quarter loss was affected by an abnormally high
inventory shrinkage, lower than planned sales and higher
markdowns related to increased promotional activity, all of
which reduced fourth quarter gross margins," the company said.
In order to concentrate on the company's core business, the
operation of discount and promotional department stores, Mars
said, it has decided to close the Big Value division.
| Corporate News |
HONEYWELL <HON> COMPLETES COMPUTER BUSINESS SALE
| Honeywell Inc said it has
completed the sale of 57.5 pct of its Honeywell Information
Systems <HIS> computer business to <Compagnie des Machines
Bull> of France and <NEC Corp> of Japan for 527 mln dlrs in
cash.
Honeywell said it will use much of the money to reduce
short-term debt incurred last December when the company
purchased the Sperry Aerospace Group.
Honeywell said the sale of HIS has created a new dedicated
computer company jointly owned by Bull, NEC and Honeywell.
The new privately held company, named Honeywell Bull, is
42.5 pct owned by Honeywell Inc, 42.5 pct by Bull and 15 pct by
NEC, the new company said.
Honeywell added that terms of the agreement with NEC and
Bull allow it to reduce its current 42.5 pct stake in the new
company to 19.9 pct at the end of 1988 by selling just over
half its shares to Bull. Book value at the time will determine
the move's pricing, Honeywell said.
Honeywell chairman and chief executive officer, Edson
Spencer, said the move is the last major step in Honeywell's
restructuring.
"As the leading worldwide supplier of of automation and
controls for buildings, industry, aerospace and defense,
Honeywell is now focusing its management, technical and
financial resources on high market share business," Spencer
said.
Honeywell said it expects to be Honeywell Bull's largest
customer, purchasing computers for its own internal data
processing, for integration into Honeywell buidling and
industrial automation systems and for resale to the U.S.
governement.
Honeywell said HIS's Federal Systems Division is now a
wholly owned unit of Honeywell Inc, and has been named
Honeywell Federal Systems Inc.
Honeywell said it accounted for HIS as a discontinued
operation in 1986, and will account for its future interest on
a cost basis, recording any dividends as received.
Honeywell Bull said it will continue to develop its product
line and build its business in integrated systems for
networking, database management and transaction processing.
The new company said its board will have nine members,
including the chairman and chief executive officer.
Bull will have four members, Honeywell two and NEC one, the
new company, which began worldwide operations today, said.
It added that Jacques Stern, Bull's chairman and chief
executive officer, will serve as Honeywell Bull's chairman of
the board, while Jerome Meyer, formerly executive vice
president of Honeywell Information Systems, was named president
and chief executive officer.
| Financial Reports |
DEALERS SAY FED INTERVENED BUYING DOLLARS IN U.S.
| U.S. dealers said the New York Federal
Reserve Bank has intervened in the foreign exchange market
today buying dollars against yen.
Fed officials do not comment on such intervention, but
dealers said it appeared that the Fed had intervened when the
dollar reached 147.50 yen in New York.
The dollar subsequently hovered at 147.55/65 yen.
Dealers said they were uncertain about the size of the
intervention, but some said it was only for a small amount.
They were also uncertain whether the Fed intervened on its own
account, or if it executed orders for the Bank of Japan.
| Other |
<INNOPAC INC> SIX MTHS FEBRUARY 28 NET
| Shr 22 cts vs 45 cts
Net 3,100,000 vs 5,100,000
Revs 103.4 mln vs 98.2 mln
| Financial Reports |
CORNERSTONE FINANICAL CORP <CSTN> SETS PAYOUT
| Qtrly div eight cts vs eight cts prior
Pay May 15
Record April 10
| Financial Reports |
PEGASUS GOLD <PGULF> STARTS MILLING IN MONTANA
| Pegasus Gold Inc said
milling operations have started at its Montana Tunnels open-pit
gold, silver, zinc and lead mine near Helena.
The start-up is three months ahead of schedule and six mln
dlrs under budget, the company said. Original capital cost of
the mine was 57.5 mln dlrs, but came in at 51.5 mln dlrs, the
company said.
After a start-up period, the mill is expected to produce
106,000 ounces of gold, 1,700,000 ounces of silver, 26,000 tons
of zinc and 5,700 tons of lead on an annual basis from
4,300,000 tons of ore, the company said.
| Financial Reports |
LOWER ASCS CORN PRICES TO AFFECT TEN STATES
| The Agriculture Department's
widening of Louisiana gulf differentials will affect county
posted prices for number two yellow corn in ten states, a USDA
official said.
All counties in Iowa will be affected, as will counties
which use the gulf to price corn in Illinois, Indiana,
Tennessee, Kentucky, Missouri, Mississippi, Arkansas, Alabama
and Louisiana, said Ron Burgess, Deputy Director of Commodity
Operations Division for the USDA.
USDA last night notified the grain industry that effective
immediately, all gulf differentials used to price interior corn
would be widened on a sliding scale basis of four to eight cts,
depending on what the differential is.
USDA's action was taken to lower excessively high posted
county prices for corn caused by high gulf prices.
"We've been following this Louisiana gulf situation for a
month, and we don't think it's going to get back in line in any
nearby time," Burgess said.
Burgess said USDA will probably narrow back the gulf
differentials when and if Gulf prices recede. "If we're off the
mark now because we're too high, wouldn't we be as much off the
mark if we're too low?" he said.
While forecasting more adjustments if Gulf prices fall,
Burgess said no other changes in USDA's price system are being
planned right now.
"We don't tinker. We don't make changes lightly, and we
don't make changes often," he said.
| Financial Reports |
GREECE BUYS 55,000 TONNES FRENCH MAIZE - TRADE
| Greece bought a total of 55,000 tonnes of
French maize when it tendered yesterday, initially for 30,000
tonnes of April delivery, trade sources said.
They said 25,000 tonnes, to be shipped from Bordeaux, were
sold at 1,603 francs per tonne fob, 15,000 tonnes from Rouen at
1,596 francs fob and 15,000 tonnes from Sete at 1,607 francs
fob.
| Corporate News |
CANADA REAL 4TH QTR GDP ROSE 1.1 PCT, AFTER 3RD QTR 1.1 PCT RISE - OFFICIAL
|
CANADA REAL 4TH QTR GDP ROSE 1.1 PCT, AFTER 3RD QTR 1.1 PCT RISE - OFFICIAL
| Financial Reports |
COCOA BUFFER STOCK RULES TO TAKE EFFECT IMMEDIATELY - DELEGATES
|
COCOA BUFFER STOCK RULES TO TAKE EFFECT IMMEDIATELY - DELEGATES
| Financial Reports |
DROUGHT CUTS CHINESE WHEAT CROP -- USDA REPORT
| Drought has resulted in a reduction
in China's estimated wheat crop this year to 87.0 mln tonnes,
2.0 mln below last year's harvest, the U.S. Agriculture
Department's officer in Peking said in a field report.
The report, dated March 25, said imports in the 1987/88
season are projected at 8.0 mln tonnes, 1.0 mln tonnes above
the the current season's estimate.
Imports from the United States are estimated at 1.5 mln
tonnes compared to only 150,000 tonnes estimated for the
1986/87 year, it said.
After travelling to major wheat producing areas and
obtaining more information on the planted area, the total
planted area was estimated down 290,000 hectares due to the dry
fall, it said.
The report said to compensate for the below normal
precipitation irrigation has increased as has the use of
fertilizer.
While there are pockets where irrigation is not possible,
most of the wheat crop has access to some water and therefore
has emerged from dormancy and is doing well, the report said.
It said scattered rain in many parts of China in the past
10 days has improved the situation but information on hail
damage in Anhui is incomplete.
| Financial Reports |
CISTRON BIOTECHNOLOGY <CIST> SETS DIVIDEND
| Cistron Biotechnology Inc said
it will pay a stock dividend declared prior to the initial
public offering of its common stock in August 1986 to
stockholders of record prior to the common offering.
Payment of the dividend was contingent on the closing bid
price of the common stock averaging two dlrs or more per shares
for the trading days within any consecutive ten day period
ending before February 29, 1988. The company said that the
contingency has been fulfilled.
Payment of the stock dividend increases Cistron's
outstanding common stock to 21,390,190 shares from 16,185,354
shares.
| Financial Reports |
WERNER ENTERPRISES INC <WERN> 4TH QTR, YR NET
| Qtr ends Feb 28
Shr 18 cts vs 10 cts
Net 2,051,000 vs 901,000
Revs 25.8 mln vs 19.2 mln
Avg shrs 10.7 mln vs 9,059,600
12 mths
Shr 87 cts vs 63 cts
Net 9,020,000 vs 5,680,000
Revs 94.4 mln vs 73.7 mln
Avg shrs 10.3 mln vs 9,059,600
| Financial Reports |
SUGAR QUOTA IMPORTS DETAILED -- USDA
| The U.S. Agriculture Department said
cumulative sugar imports from individual countries during the
1987 quota year, which began January 1, 1987 and ends December
31, 1987 were as follows, with quota allocations for the quota
year in short tons, raw value --
CUMULATIVE QUOTA 1987
IMPORTS ALLOCATIONS
ARGENTINA nil 39,130
AUSTRALIA nil 75,530
BARBADOS nil 7,500
BELIZE nil 10,010
BOLIVIA nil 7,500
BRAZIL nil 131,950
CANADA nil 18,876
QUOTA 1987
IMPORTS ALLOCATIONS
COLOMBIA 103 21,840
CONGO nil 7,599
COSTA RICA nil 17,583
IVORY COAST nil 7,500
DOM REP 5,848 160,160
ECUADOR nil 10,010
EL SALVADOR nil 26,019.8
FIJI nil 25,190
GABON nil 7,500
QUOTA 1987
IMPORTS ALLOCATIONS
GUATEMALA nil 43,680
GUYANA nil 10,920
HAITI nil 7,500
HONDURAS nil 15,917.2
INDIA nil 7,500
JAMAICA nil 10,010
MADAGASCAR nil 7,500
MALAWI nil 9,,100
QUOTA 1987
IMPORTS ALLOCATIONS
MAURITIUS nil 10,920
MEXICO 37 7,500
MOZAMBIQUE nil 11,830
PANAMA nil 26,390
PAPUA NEW GUINEA nil 7,500
PARAGUAY nil 7,500
PERU nil 37,310
PHILIPPINES nil 143,780
ST.CHRISTOPHER-
NEVIS nil 7,500
QUOTA 1987
IMPORTS ALLOCATIONS
SWAZILAND nil 14,560
TAIWAN nil 10,920
THAILAND nil 12,740
TRINIDAD-TOBAGO nil 7,500
URUGUAY nil 7,500
ZIMBABWE nil 10,920
| Financial Reports |
CANADA 4TH QTR CURRENT ACCOUNT DEFICIT 2.3 BILLION DLRS VS 3RD QTR 1.9 BILLION DEFICIT - OFFICIAL
|
CANADA 4TH QTR CURRENT ACCOUNT DEFICIT 2.3 BILLION DLRS VS 3RD QTR 1.9 BILLION DEFICIT - OFFICIAL
| Financial Reports |
<REVENUE PROPERTIES CO LTD> YEAR LOSS
| Shr loss eight cts vs loss 24 cts
Net loss 1,150,000 vs loss 3,450,000
Revs 55.7 mln vs 78.1 mln
| Commodities and Trade |
FED ADDS RESERVES VIA CUSTOMER REPURCHASES
| The Federal Reserve entered the U.S.
Government securities market to arrange one billion dlrs of
customer repurchase agreements, a Fed spokesman said.
Dealers said Federal funds were trading at 6-1/8 pct when
the Fed began its temporary and indirect supply of reserves to
the banking system.
| Other |
ICCO COUNCIL AGREES COCOA BUFFER STOCK RULES
| The International Cocoa Organization
(ICCO) Council reached agreement on rules to govern its buffer
stock, the device it uses to keep cocoa off the market to
stabilise prices, ICCO delegates said.
The date on which the new rules will take effect has not
been decided but delegates said they expected them to come into
force early next week, after which the buffer stock manager can
begin buying or selling cocoa.
Since prices are below the "may-buy" level of 1,655 Special
Drawing Rights a tonne set in the cocoa pact, the manager is
likely to buy cocoa sooon to support the market, they said.
Delegates and traders said they expected the manager,
Juergen Plambeck, to intervene in the market within three weeks
of the pact coming into force.
The rules permit him to buy and sell cocoa from origins or
the second hand market on an offer system, not by means of a
posted price as in the previous cocoa accord.
The cocoa will be priced according to a fixed set of
differentials, ranging from 137 stg for most expensive Ghana
cocoa to zero for Malaysian cocoa.
Purchases from non-members, such as Malaysia, will be
limited to 15 pct of the total stock and those on any one day
should be limited to 40 pct each in nearby, intermediate and
forward positions.
The council meeting, which is expected to conclude two
weeks of sessions involving various working groups and the
council itself, was continuing, the delegates said.
The current cocoa agreement came into force on January 20
during a previous meeting of the council which was unable to
agree on the rules to implement buffer stock operations.
| Corporate News |
COCOA BUFFER STOCK RULES EFFECTIVE IMMEDIATELY
| The cocoa buffer stock rules just
decided by the International Cocoa Organization, ICCO, council
will take effect immediately, delegates said.
That means the buffer stock manager is likely to begin
buying cocoa within two or three weeks, after organizing
communication systems and assessing the market, they said.
| Financial Reports |
SOUTHAM TO SELL 49 PCT INTEREST IN BRANDON SUN
| <Southam Inc> said it agreed to sell
its 49 pct interest in Sun Publishing Co Ltd, which publishes
The Brandon Sun, to majority shareholder publisher Lewis D.
Whitehead.
Terms were not disclosed.
Southam said the proposed sale resulted from an offer made
by Whitehead, whose family has had majority control of the
newspaper since 1905.
The Brandon Sun has daily circulation of 19,100.
| Corporate News |
GLAMIS GOLD <GLGVF> SETS COMMON STOCK SPLIT
| Glamis Gold Ltd
said it will ask shareholders at an April 1 extraordinary
general meeting to approve a one-and-one-half for one common
share split.
Record date for the split will be set in the near future,
the company said.
| Financial Reports |
NUCLEAR METALS <NUCM> HAS DELAY IN ORDERS
| Nuclear Metals Inc said a delay
in receiving certain new orders will result in negligible
earnings per share for its fiscal second quarter.
However, the company said it has been assured that the
orders will be placed beginning in its fiscal third quarter and
that it expects a strong rebound in earnings for the third and
fourth quarters.
| Corporate News |
FIRST SARASOTA HOLDERS APPROVE ACQUISITIONS
| First Sarasota Bancorp said
its shareholders approved the acquisition of its City
Commercial Bank subsidiary by First Union Corp's <FUNC> First
Union National Bank of Florida.
The purchase price of the outstanding shares is about 8.6
mln dlrs.
The transaction, subject to regulatory approval, is
expected to be completed during the second quarter of 1987.
After completing the City Commercial acquisition and four
other acquisitions having combined assets of 248 mln dlrs,
First Union will have assets of 28.6 billion dlrs.
| Corporate News |
JAMAICA BUYS U.S. PL-480 CORN, WHEAT AND RICE
| Jamaica bought U.S. corn, wheat and
rice at its tender earlier this week using PL-480 funds, a U.S.
Department of Agriculture official said.
The purchase consisted of the following cargoes -
- Cargill sold 1,503.5 tonnes of number two soft red winter
(SRW) wheat for May 5/30 shipment at 117.44 dlrs per tonne FOB
Gulf ports.
- Continental Grain 8,250 tonnes of number two northern
spring/dark northern spring (NS/DNS) wheat (14.5 pct protein)
for April 15/May 10 at 123.97 dlrs FOB Gulf, excluding
Brownsville.
- Nichemen 10,000 tonnes number two SRW wheat for June 12/July
7 at 103.43 dlrs FOB Gulf.
- Nichemen 10,000 tonnes number two NS/DNS wheat (14.0 pct
protein) for May 25/June 20 at 121.89 dlrs FOB Gulf.
- Cargill 10,000 tonnes number two SRW wheat for April 10/May
5 at 120.88 dlrs FOB Gulf.
- Cargill 8,469.5 tonnes number two SRW wheat for May 5/30 at
117.44 dlrs FOB Gulf.
- Louis Dreyfus 4,500 tonnes number three yellow corn (15.0
pct maximum moisture) for April 10/May 5 at 76.09 dlrs FOB
Gulf.
- Louis Dreyfus 5,300 tonnes same corn April 20/May 15 at
75.89 dlrs FOB Gulf.
- Louis Dreyfus 5,300 tonnes same corn May 10/June 5 at 75.49
dlrs FOB Gulf.
- Louis Dreyfus 5,300 tonnes same corn June 1/25 at 75.49 dlrs
FOB Gulf.
- Loius Dreyfus 3,700 tonnes number two yellow corn (14.5 pct
maximum moisture) for Apirl 10/May 5 at 76.29 dlrs FOB Gulf.
- Louis Dreyfus 3,700 tonnes same corn for May 10/June 5 at
75.68 dlrs FOB Gulf.
Exporters have not received final PL-480 approval on their
sale of a total of 9,500 tonnes of U.S. number five or better
long grain brown rice (10 pct maximum broken) for April 10/May
25 shipments.
But the USDA official said he saw no hold-up in obtaining
that approval.
| Financial Reports |
MCLEAN INDUSTRIES <MII> UNIT TRANSERS SERVICE
| McLean Industries Inc said its
shipping subsidiary, United States Lines Inc, reached an
agreement in principle to transfer its South American service
to American Transport Lines Inc, a subsidiary of <Crowley
Maritime Corp>.
Under the terms of the agreement, United States Lines will
lease five vessels to American Transport for 15 months with an
option to extend the period up to 10 years, the company said.
In return, U.S. Lines will receive a fixed payment and a
percentage of revenues for at least three years and possibly as
long as American Transport utilizes its vessels and conducts
trade in South America, the company said.
The companies will consummate the transactions as soon as
the required approvals are obtained, McLean said.
| Corporate News |
HUNGARIAN ECONOMY CONTINUES UNFAVOURABLE TREND
| Hungary's economy and hard currency
trade have failed so far this year to reverse a two-year
unfavourable trend, the official Hungarian news agency MTI
said.
Industrial production in January and February was only 1.3
pct up on the same 1986 period, MTI said, while hard currency
exports fell six pct as imports rose 10 pct.
Hungary's hard currency trade fell into a deficit of 539.4
mln dlrs last year from a surplus of 295.3 mln in 1985 and 1.2
billion in 1984.
MTI quoted a government spokesman saying last December's
wage freeze decree would expire on April 1 as envisaged.
Gross domestic product grew a sluggish one pct in 1986
after stagnating in 1985 and growing 2.6 pct in 1984.
| Financial Reports |
NOBLE AFFILIATES <NBL> FINDS NATURAL GAS
| Noble Affiliates Inc said it
found natural gas on Ship Shoal 80, located about 10 miles
offshore Louisiana in the Gulf of Mexico.
The discovery well, Samedan Oil Corp's OCS-G 5537 Well
Number One, was drilled in 25 feet of water to a total depth of
7,500 feet and found 38 feet of net gas pay in a 48-foot gross
sand interval, the company said.
The well tested gas at a rate of 6.2 mln cubic feet a day
through a 26/64-inch choke with 1,548 pounds flowing tubing
pressure. Gas sales should begin in the first quarter of 1988,
it said.
Samedan, a Noble unit, is operator and owns a 60 pct
working interest in the well. Other owners are a New England
Electric System <NES> unit, with a 25 pct stake, and
Southwestern Energy Production Co, with 15 pct.
| Financial Reports |
SOURCE VENTURE CAPITAL INC YEAR
| Shr profit nil vs loss nil
Net profit 68,895 vs loss 160,893
Revs 3.3 mln vs 104,801
| Financial Reports |
LSB <LSB> IN PACT TO ACQUIRE NORTHWEST FEDERAL
| LSB Industries Inc said it
entered into an agreement to acquire Northwest Federal Savings
and Loan Association of Woodward, Oklahoma.
Upon completion of the acquisition, LSB would pay about 1.5
mln dlrs to the shareholders of Northwest and transfer to
Northwest Federal certain assets having a net current appraised
value of not less than 30 mln dlrs.
At completion of this transaction, Northwest Federal would
be a subsidiary of LSB's non-consolidated wholly-owned
financial subsidiary.
The acquisition is subject to obtaining approvals, waivers
and forbearances from the Federal Home Loan Bank Board and
other government approvals.
| Corporate News |
<BRAMALEA LTD> YEAR NET
| Shr 73 cts vs 55 cts
Net 26.0 mln vs 17.1 mln
Revs 673.3 mln vs 394.5 mln
Avg shrs 29.3 mln vs 22.4 mln
| Corporate News |
REAGAN READY TO IMPOSE TRADE CURBS AGAINST JAPAN
| President Reagan was ready to impose
retaliatory trade action against Japan for breaking its
semiconductor agreement with the United States, White House
officials said.
There was no immediate indication when Reagan might act on
the recommendations of his Economic Policy Council to curb
Japanese exports to the United States, but officials said the
move could come today or early next week.
Trade sources said the actions being weighed by Reagan
include tariffs on a wide variety of Japanese exports which use
semiconductors.
The sources said the tariffs could be slapped on personal
computers, television receivers and laser-printers, with the
aim of penalizing Japan's major electronic firms, including NEC
Corp, Hitachi Ltd, Toshiba Corp and Fujitsu Ltd.
They said Reaan could also delay invoking sanctions for a
week or two, giving Japan a final opportunity to end the
dumping practice, but added that negotiators had already held
extensive talks with the Japanese to no avail.
| Financial Reports |
SOUTH AFRICA GDP UP 4.7 PCT IN 1986 LAST QUARTER
| The South African Reserve Bank,
confirming previous estimates, said real gross domestic product
in the 1986 fourth quarter grew at a seasonally adjusted annual
rate of 4.7 pct versus 4.6 pct in the third quarter and 1.3 pct
in the 1985 final quarter.
The bank, in its latest quarterly review, said the nominal
growth rate for the year did not quite reach one pct after a
1.5 pct contraction in 1985.
But it said when the strengthening of the terms of trade is
taken into account, the real GNP in 1986 advanced by 1.5 pct
compared with a decrease of 0.5 pct in 1985.
GDP is the total value of goods and services produced by an
economy but omits income from abroad. GNP includes such
payments or outflows.
The bank also said there were indications the country's
economic recovery was becoming more broadly based.
With the exception of commerce all major sectors of the
economy contributed to the fourth quarter rise in domestic
production.
The bank said major increases in foreign reserves were
recorded in January, February and the first half of March 1987.
Reserves rose by 1.70 billion rand during January and February.
Total reserves in 1986 declined by 189 mln rand to 5.70
billion rand and were equivalent to about 14.5 pct of the total
annual value of import payments.
The current account surplus amounted to 7.20 billion rand
in 1986 versus 5.90 mln the previous year.
The bank said continuing strength of the current account
has allowed foreign reserves to be "rebuilt to more comfortable
levels."
"This has strengthened the authorities' hands in lending
support to the exchange rate of the rand if such action were to
be called for," the bank said.
| Commodities and Trade |
SOUTHWESTERN PUBLIC SERVICE CO<SPS> 2ND QTR NET
| Shr 42 cts vs 42 cts
Net 19.1 mln vs 19.5 mln
Revs 184.9 mln vs 185.1 mln
12 mths
Shr 2.17 dlrs vs 2.53 dlrs
Net 97.0 mln vs 111.8 mln
Revs 793.3 mln vs 828.8 mln
Avg shrs 40.9 mln vs 40.5 mln
NOTE: Year-ago restated.
| Industrial and Sector News |
<L.B. NELSON CORP> 4TH QTR NET
| Shr loss two cts vs loss 1.38 dlrs
Net profit 34,000 vs loss 3,296,000
Revs 3,121,000 vs 1,546,000
Year
Shr profit 28 cts vs loss 1.61 dlrs
Net profit 1,088,000 vs loss 3,546,000
Revs 5,266,000 vs 4,169,000
Note: Current qtr per share figure adjusted to reflect
provision for preferred stock dividends.
| Corporate News |
SOUTHWESTERN BELL VOTES THREE-FOR-ONE STOCK SPLIT, 8.8 PCT DIVIDEND INCREASE
|
SOUTHWESTERN BELL VOTES THREE-FOR-ONE STOCK SPLIT, 8.8 PCT DIVIDEND INCREASE
| Financial Reports |
ANALYSTS PEG U.S. COTTON SEEDINGS 10.6 MLN ACRES
| U.S. cotton farmers are likely to
plant about 10.6 mln acres in the coming season, based on an
average of estimates offered by cotton market analysts gearing
up for the U.S. Agriculture Department's 1987 planting
intentions report next Tuesday.
The annual report gives cotton traders their first glimpse
of what U.S. production might be in the 1987/88 season, which
begins August 1.
Trade and commission house forecasts ranged from 10.2 to
10.9 mln acres.
On March 18 of last year, the USDA reported that cotton
farmers in 1986 intended to plant 9.71 mln acres.
Four months later, the USDA estimated that 9.67 mln acres
had been planted as of June 1. By January, its estimate of 1986
planted acreage nationwide was 10.06 mln.
Analysts said their forecasts for even greater acreage in
1987 were spurred in part by belief that this year's good
demand and firm prices will be repeated next year. Analysts
said those factors make cotton a profitable crop.
"With cotton more attractive price-wise, I think there is
going to be a switch in acreage from soybeans to cotton.
Soybeans are dirt cheap," said Lisbeth Keefe of Cargill
Investor Services, whose comments were echoed by other cotton
market specialists.
Changes in the U.S. cotton program also could lead to
increased acreage, analysts said.
They recalled that under the 1986 program, cotton farmers
who used part of their crop as collateral for government loans
were not responsible for the cost of storing that cotton in
government warehouses. But under the 1987 plan, the government
will not pick up the tab for storage.
Analysts said the change will discourage some farmers from
participating in the program, which could result in more
cotton. "The cotton program stipulates a mandatory set-aside of
25 pct of a farmer's base acreage," noted Judy Weissman of
Shearson Lehman Brothers. But farmers who elect not to
participate in the program are free to plant all the acreage
they have.
Some analysts said cotton farmers in the high-yielding
Western states would be most likely to steer clear of the
program. "Western acreage should be up at least 20 pct," said
one commission house analyst, whose estimate was based in part
on forecasts made by the National Cotton Council during its
annual meeting in late January.
But others disagreed. "I think some Western growers have
decided they should be in the program for security reasons.
There's a lot of comfort in knowing you'll be guaranteed the
government's loan price of 52.25 cents a lb. Anyone outside the
program is subject to the wiles of the market," said Walter
Brown, market analyst for a major California cotton producer.
Some cotton specialists said their expectations for
increased acreage might not be verified in Tuesday's planting
intentions report. "Anything the USDA is announcing now is
based on information they gathered before their cotton program
was announced (on March 20)," one analyst cautioned. She said
traders will get a better idea of next year's cotton output
when the USDA's planted acreage report is released on July 9.
Brown took that opinion a step further. "I don't think
planted acreage is important. What counts is the abandonment
rate," the difference between acreage planted and acreage
harvested.
Brown said the abandonment rate this year was "pretty high"
at 15.5 pct because of weather problems in key producing
states. "More normal would be about six pct," he said.
| Corporate News |
IMATRON INC <IMAT> 4TH QTR LOSS
| Shr loss 16 cts vs loss seven cts
Net loss 3,450,000 vs loss 1,508,000
Sales 56,000 vs 1,187,000
Avg shrs 22,568,000 vs 20,591,000
Year
Shr loss 38 cts vs loss 29 cts
Net loss 7,977,000 vs loss 6,005,000
Sales 3,699,000 vs 2,391,000
Avg shrs 21,111,000 vs 20,578,000
| Commodities and Trade |
NATO CALLS ON GREECE AND TURKEY TO AVOID FORCE
| Greece and Turkey's NATO allies today
called on both countries to avoid any action that could
aggravate an explosive situation in the Aegean and "avoid
recourse to force at all costs."
After an emergency meeting of NATO ambassadors, a statement
was issued saying "the present situation damages the interests
of Greece and Turkey, and of the Alliance as a whole."
Secretary-General Lord Carrington also offered himself as a
mediator in the dispute on the Western Alliance's southern
flank.
The meeting was called after reports that warships of both
countries were sailing towards a disputed oil exploration zone
of the Aegean.
The statement said the tensions in the area had reached a
serious level and called on both countries to begin immediate
discussions. "Any intensification would make things worse," it
added.
No attempt was made at the meeting to resolve the complex
dispute which was aimed at damage-limitation. Carrington said,
"I am of course anxious to help in any way I can, provided that
both Greece and Turkey, and the other allies, wish me to do so."
| Other |
PLAZA GROUP COMPLETES MERGER TRANSACTION
| <Plaza Group> said it completed a
transaction in which it merged its wholly owned subsidiary,
Flyfaire International Inc, into Shefra Inc, a public company,
in return for a controlling interest in Shefra.
With completion of the merger, Shefra changed its name to
Flyfaire International Inc.
Flyfaire, with annual sales of 100 mln dlrs, is engaged in
the wholesale vacation travel business.
| Financial Reports |
CONAGRA INC <CAG> REGULAR DIVIDEND SET
| Qtly div 14-1/2 cts vs 14-1/2 cts prior
Pay June One
Record April 24
| Financial Reports |
LLC <LLC>, AMALGAMATED REPORT SIX MONTHS NET
| Valhi Inc reported earnings of LLC Corp
and the Amalgamated Sugar Co for the six month period ended
December 31.
Effective March 10, Amalgamated merged into LLC, which
changed its name to Valhi. The following results reflect the
operations of the companies prior to the merger.
LLC Corp reported net income of 18.4 mln dlrs or 60 cts a
share on revenues of 55.6 mln dlrs compared to 23.2 mln dlrs or
75 cts a share on revenues of 79.3 mln dlrs a year ago.
This year's net includes an extraordinary loss of 201,000
dlrs and a gain of 4.7 mln dlrs. 1985's net included an
extraordinary gain of 6.3 mln dlrs, Valhi said.
Amalgamated reported net income of 10.65 dlrs per share or
69.7 mln dlrs on revenues of 371.3 mln dlrs compared to a net
loss of 700,000 dlrs or 10 cts a share on revenues of 254.7 mln
dlrs last year.
Valhi said effective December 31, it changed its fiscal
year-end from June 30 to December 31.
| Other |
GROS DENIES COURT ACTION AGAINST BRAZIL
| Central Bank president Francisco Gros
denied rumours that foreign creditors had filed court actions
against Brazil to seek payment of its 109-billion dlr debt.
"There is no court action against Brazil," Gros said in a
television interview.
Brazil last month suspended interest payments on its 68
billion dlr debt to commercial banks and yesterday suggested an
extension of short-term credit lines for 60 days until May 31.
Media reports said some banks rated as small among Brazil's
700 creditors had filed lawsuits against the decision to
suspend interest payments.
Gros said negotiations with the commercial creditors would
start within two weeks, when he and Finance Minister Dilson
Funaro attend council meetings of the International Monetary
Fund (IMF) in Washington.
"Brazil is facing the issue very carefully. We are seeking a
negotiation that will give the country space to grow, because
only with growth will we be able to meet our commitments," Gros
said.
| Financial Reports |
TALKING POINT/GOLD
| The price of gold bullion and share
prices of North American gold stocks are benefiting from
continued weakness in the U.S. dollar, analysts said.
"There's been a tug of war between the (currency)
speculators and the central banks over the U.S. dollar and it
looks like the game has gone to the speculators," said John Ing
at Maison Placements Canada Inc.
The dollar remained close to post-World War II lows today
against the Japanese yen despite buying by several central
banks, including the Federal Reserve, dealers said.
A drop in the dollar means uncertainty and gold is the
traditional hedge against uncertainty, Ing noted.
Another analyst, Richard Cohen at Brown Baldwin Nisker Ltd,
noted that "a lot of foreign investors are holding U.S. dollars.
If they see they are losing money, they move back into gold."
A dollar decline also has inflationary implications, Ing
said, adding that Maison Placements sees inflation rising to a
four pct annual rate from the current level of about three pct.
Ing predicts gold will peak at 510 dlrs this year from its
current level of about 416 dlrs per ounce. Cohen sees an
average price of 425 dlrs, and another analyst, Michael
Pickens, at Yorkton Securities, puts the average at 450 dlrs,
with a possible spike above 500 dlrs.
However, gold stocks in the U.S. and Canada have risen far
faster in recent months than the price of the metal itself,
causing concern among analysts that a correction lies somewhere
in the future. But for now, all analysts say there is no sign
the buying pressure is slowing down. "The stocks have run an
incredible way," Cohen said.
On U.S. markets today, ASA Ltd <ASA> rose 4-1/8 to 61-1/2,
Campbell Red Lake Mines <CRK> was up 1-3/8 and Newmont Gold
<NGC> increased 1-1/2 to 31-1/4.
The Toronto Stock Exchange gold index today was up 268
points at 8067.90. Hemlo Gold gained 1-1/4 at 26-3/4, LAC
Minerals was up 1-5/8 at 41, Placer Development rose 1-1/4 at
43-3/8 and Lacana Mining gained 1 at 18.
Ing pointed out that the TSE gold index has gained 51 pct
since December 31, 1986, while the price of bullion has
increased six pct. "Canadian golds have been the top performing
index this year," he noted.
In the U.S., there is "too much money chasing too few
stocks," Pickens said. And many investing institutions such as
pension funds and insurance companies still have excess cash,
he added.
Cohen also noted that today's silver price break through
six dlrs an ounce indicates small investors are entering the
precious metals market and he expects the ratio between gold
and silver prices to narrow.
| Financial Reports |
SOUTHWESTERN BELL<SBC> VOTES SPLIT, UPS PAYOUT
| Southwestern Bell Corp said its board
voted a three-for-one stock split and increased the dividend
8.8 pct to 1.60 dlrs a share.
On a post-split basis, the increased dividend will be 58
cts a share, payable May One to holders of record April 10.
Southwestern Bell said the stock split is
its first. It said shares will be mailed May 22, record May
Four.
| Financial Reports |
HONEYWELL BULL SEES REVENUE GROWTH
| Honeywell Bull Inc, owned by Honeywell
Inc <HON>, <Cie des Machines Bull> and <NEC Corp>, said it
expects its 1987 revenues to increase 15 to 20 pct over its
current level of about 1.9 billion dlrs.
Honeywell Bull president Jerome Meyer also told the press
conference the company was profitable, adding the company aimed
to improve profits over time.
Honeywell Inc earlier today received 527 mln dlrs in cash
for the sale of 57.5 pct of its computer business to Bull and
NEC. Honeywell will retain a 42.5 pct interest in Honeywell
Bull and Bull will own an equal amount.
NEC owns 15 pct of the company.
Meyer, who had been executive vice president of Honeywell
Information Systems, said Honeywell Bull would work closely
with NEC and Bull in both developing new products and marketing
computers to multi-national companies.
"We haven't been growing as fast as we'd like, but we are
going to turn that around," Meyer said. He said business was
soft in the U.S.
He said the company was reorganizing its distribution
programs and its staff, reassigning and laying off selected
employees. He also said the company was hiring new workers.
Honeywell Bull chairman Jacques Stern, who is also chairman
of Bull, said he believed the computer industry could be a fast
growing market for companies that provide the type of computers
customers want. "I don't believe in the slump of the market,"
he said.
The computer company would offer open systems so that
customers would not be tied to a specific vendor or
architecture, and it will also focus on tying computers
together through communications networks.
| Financial Reports |
HANSON <HAN> TO SELL BOND'S DELIVERY SERVICE
| Hanson Industries, the U.S. arm of
Hanson Trust PLC, said contracts have been exchanged in London
for the sale of Bond's Delivery Service to Rockwood Holdings
PLC for about 6.0 mln dlrs in cash.
Completion is subject to Rockwood shareholder approval.
In its most recent financial year, Bond's which was
purchased
by Hanson Trust Plc in its acquisition of Imperial Group PLC in
April 1986, made 960,000 dlrs pre-tax profit on sales of 13.6
mln dlrs.
Net tangible assets are 5.2 mln dlrs, Hanson said.
| Financial Reports |
U.S. PRICE DATA SUGGEST MODERATE INFLATION
| Latest consumer price data indicate
U.S. inflation will be moderate in 1987 even though it will be
above last year's pace, economists said.
"Inflation is not such a constructive factor as this time
last year, but it's not building up a large head of steam,"
said Allan Leslie of Discount Corp.
U.S. consumer prices, as measured by the consumer price
index for all urban consumers, rose a seasonally adjusted 0.4
pct in February after a 0.7 pct January gain. Energy prices,
which fired January's data with a three pct rise, advanced a
more moderate 1.9 pct last month.
The CPI came within the range of economists' expectations
and had little direct impact on U.S. financial markets.
Among the key components of the report, transportation
prices rose 0.5 pct in February after a 1.5 pct January gain
reflecting smaller price appreciation for motor fuels and
declines in new car prices and finance charges.
"There are no pronounced pressures at the retail level,"
said William Sullivan of Dean Witter Reynolds Inc.
Economists said the latest CPI supports existing
expectations for an inflation rate of 3.5 to four pct in 1987.
The CPI rose 1.1 pct from December 1985 to December 1986.
Without last year's energy price drop, it rose 3.8 pct.
Economists said that upward pressure on import prices as a
result of the dollar's drop as well as the volatile energy
component warrant attention in case gains in these areas become
factored into the wider economic picture.
"As long as those price rises do not become entrenched in
cost of living adjustments contained in labor contracts, thus
reducing international competitiveness, then the Federal
Reserve would probably be willing to tolerate four pct
inflation," said Larry Leuzzi of S.G. Warburg and Co Inc.
| Other |
WESTINGHOUSE INTERESTED IN MERGER OF RADIO UNIT
| Westinghouse Electric Corp <WX> said
it is still open to a merger of its radio operations with
General Electrics Co's <GE> NBC radio operations.
"We have left the door open and GE is reassessing the
merger and so are we," Westinghouse chairman Douglas Danforth
told Reuters at the conclusion of a meeting before analysts.
Danforth said he continues to see value in a merger between
Westinghouse's radio operation and those of NBC.
Discussions with NBC on the merger of the two companies'
radio units were suspended in December.
Danforth reaffirmed that Westinghouse is interested in
acquisitions, saying the company is leaning toward acquisitions
in the 300 mln to 500 mln dlr range. He said, however, that
larger acquisitions are possible if they are the right fit.
Danforth, who earlier today said he expects earnings growth
in the double-digit range through 1989, said he is comfortable
with analysts' predictions of 4.80 dlrs to 5.30 dlrs a share
this year. In 1986 the company earned 4.42 dlrs a share.
He said the company has targeted waste energy systems and
hazardous waste removal, as some of the emerging growth areas
for the company.
| Financial Reports |
COMPUTER NETWORK TECHNOLOGY <CMNT> 4TH QTR LOSS
| Shr loss eight cts vs loss eight cts
Net loss 655,457 vs loss 566,429
Rev 258,712 vs nil
Year
Shr loss 31 cts vs loss 26 cts
Net loss 2,725,882 vs loss 1,759,675
Rev 349,070 vs nil
NOTE: Company's full name is Computer Network Technology
Corp. 1985 revenues n.a. because 1986 was initial year of
product revenue.
| Financial Reports |
BIFFEX LOOKING TO JOIN NEW FUTURES EXCHANGE
| The Baltic International Freight Futures
Exchange (BIFFEX) said it agreed to pursue negotiations with
other futures markets on the Baltic Exchange with a view to
merging into a new futures exchange.
Legal advisers have already been instructed to implement
amalgamation of the London Potato Futures Association, the Soya
Bean Meal Futures Exchange and the London Meat Futures
Exchange.
The London Grain Futures Market has also discussed merging
with the other markets.
The aim of the merger is to seek Recognised Investment
Exchange status as required by the 1986 Financial Services Act.
| Commodities and Trade |
<CANADIAN SATELLITE COMMUNICATIONS> SIX MTHS NET
| Period ended February 28
Oper shr profit six cts vs loss 15 cts
Oper profit 474,000 vs loss 1,175,000
Revs 17,946,000 vs 9,271,000
Note: Current shr and net exclude tax gain of 513,000 dlrs
or five cts share
full name <Canadian Satellite Communications Inc>
| Financial Reports |
FRENCH MINISTERIAL MEETING HELD ON CGCT SALE
| Finance Minister Edouard Balladur,
Industry Minister Alain Madelin and Telecommunications Minister
Gerard Longuet met for more than an hour today to discuss the
imminent sale of the French telephone switching group <Cie
Generale de Constructions Telephoniques>, a spokesman for
Longuet said.
No decision was announced as a result of the meeting, and
the French government has given itself until the end of next
month to choose between the candidates.
The sale of CGCT, which controls 16 pct of France's
telephone market, has been priced at 500 mln francs, and three
international consortia are battling for the right to buy it.
West Germany's Siemens AG <SIEG.F> has teamed up with the
French group Jeumont-Schneider, in opposition to a bid from the
U.S. Group ATT <T.N> and the Dutch Philips Telecommunications
BV <PGLO.AS> in association with the French telecommunications
firm SAT <Societe Anonyme de Telecommunications>.
A third bid has been lodged by Sweden's AB LM Ericsson
<ERIC.ST>, allied with French defence electronics group Matra
<MATR.PA> and Bouygues SA <BOUY.PA>.
| Financial Reports |
DEAN FOODS CO <DF> 3RD QTR NET
| Shr 35 cts vs 40 cts
Net 9,246,000 vs 10,719,000
Sales 367.9 mln vs 315.1 mln
Nine mths
Shr 1.03 dlrs vs 1.13 dlrs
Net 27,490,000 vs 30,160,000
Sales 1.06 billion vs 915.3 mln
| Financial Reports |
DEAN FOODS CO <DF> RAISES DIVIDEND
| Qtly div 13-1/2 cts vs 11-1/2 cts prior
Pay June 15
Record May 22
| Financial Reports |
DOSKOCIL <DOSK> SHAREHOLDERS VOTE REVERSE SPLIT
| Doskocil Cos Inc said its
shareholders approved a one-for-10 reverse stock split, which
is expected to become effective by April 30.
The company said the reverse split will reduce the its
outstanding shares to about six mln from 60 mln.
| Financial Reports |
U.S. ENERGY COSTS ROSE IN FEBRUARY BY 1.9 PCT
| Consumer energy costs rose 1.9 pct
in February following a sharp rise last month, the Labor
Department said.
The February increase in the overall energy costs,
including petroleum, coal and natural gas, followed a 0.2 pct
drop in December and a 3.0 pct rise in January, it said.
Energy prices were 12.2 pct below year-ago levels.
The department's Consumer Price Index showed that the cost
of gasoline rose in February by 4.2 pct, after a 6.6 pct rise
in January.
Gasoline prices were nonetheless 18.0 pct below their
levels as of February 1986.
Also, the category including fuel oil, coal and bottled gas
rose in February by 3.8 pct, putting it 14.9 pct under the
year-ago figure.
The index also showed that natural gas and electricity were
unchanged last month, but down 3.5 pct from the February 1986
figure, the department said.
The index has been updated o reflect 1982-84 consumption
patterns; previously, the index was based on 1972-73 patterns.
| Corporate News |
COLD AIR A THREAT TO SOME U.S. HARD WHEAT AREAS
| A cold air mass working its way
south from Canada may pose a threat to developing hard red
winter wheat in Oklahoma, according to Eugene Krenzler, wheat
specialist for the Oklahoma Cooperative Extension.
"There is some threat. Some of the crop is far enough along
so that it's probably vulnerable," Krenzler said.
Accu Weather meteorologist Dale Mohler said cold air moving
from the north could put temperatures in the middle 20's
fahrenheit as early as tonight, depending on development of a
low pressure area over southeast Colorado which could stall the
system.
If impeded by the low-pressure area, the cold air could hit
Oklahoma and Texas as late as Monday morning. Temperatures
could stay in the mid-20's for up to eight hours, Mohler said.
Krenzler said less than 10 pct of the Oklahoma wheat crop
has advanced to boot stage. The closer to that stage the more
vulnerable the head of the wheat is to cold weather, he said.
"We can handle probably an hour or so down to 25 or 26
degrees (fahrenheit)," Krenzler said, "as long as we don't have
a lot of wind."
"If we do get six hours down below 25 degrees I'd say we
have a good chance of significant damage to the heads," he
said.
Krenzler said early planted stands in the north-central and
southwestern parts of the state are probably most vulnerable.
Crops in the panhandle of Oklahoma and Texas are less developed
and have some snow cover protection from the cold, he noted.
| Commodities and Trade |
SMALL QUANTITY OF UK WHEAT SOLD TO HOME MARKET
| A total of 2,435 tonnes of British
intervention feed wheat were sold at today's tender for the
home market out of requests for 3,435 tonnes, the Home Grown
Cereals Authority, HGCA, said.
Price details were not reported.
No bids were submitted for intervention barley.
| Corporate News |
EDUCATION SYSTEMS <ESPC> YEAR NET
| Shr 27 cts vs 34 cts
Net 174,390 vs 222,720
Revs 4,948,622 vs 4,516,042
Note: Current net includes non-recurring loss on
investments of 82,034.
Full name is Education Systems and Publications Corp.
| Financial Reports |
BORG-WARNER UP AMID RUMORS IRWIN JACOBS SOLD STOCK, ARBITRAGEURS SAY
|
BORG-WARNER UP AMID RUMORS IRWIN JACOBS SOLD STOCK, ARBITRAGEURS SAY
| Commodities and Trade |
CANADA DECEMBER GDP UP 1.2 PCT AFTER NOVEMBER'S 0.2 PCT FALL - OFFICIAL
|
CANADA DECEMBER GDP UP 1.2 PCT AFTER NOVEMBER'S 0.2 PCT FALL - OFFICIAL
| Corporate News |
HENLEY GROUP <HENG> UNIT WINS TAIWAN CONTRACT
| Henley Group Inc's M.W. Kellogg Co unit
said it was selected by <Chinese Petroleum Corp> to design,
engineer and build a ethylene plant at Chinese
Petroleum's Kaohsiung refinery in Taiwan.
Terms of the contract were not disclosed, but Kellogg said
the total cost of the plant will be 300 mln dlrs.
Kellogg said engineering of the plant, which will have a
capacity of 400,000 tonnes a year, is already underway and
construction will begin in 1988.
The plant will go into operation in 1990, Kellogg said.
| Corporate News |
MCLEAN'S <MII> U.S. LINES SETS SALE OF ASSETS
| McLean Industries Inc said its
two shipping subsidiaries -- UNITED States Lines Inc and United
States Lines (S.A.) Inc -- have agreed in principle to dispose
of substantially all their remaining operating shipping assets.
The units have been operating under protection of Chapter
11 of the U.S. Bankruptcy Code since last November.
McLean said U.S. Lines has a letter of intent with CSX
Corp's <CSX> Sea-Land Corp subsidiary to transfer assets of its
Transpacific/Hawaii/Guam Service to Sea-Land.
McLean said Sea-Land has tentatively agreed to pay 125 mln
dlrs for six vessels, certain port facilities, and various
other equipment used in U.S. Lines' Transpacific service and
theree Lancer class vessels and subsidy rights owned by the two
McLean subsidiaries.
As previously announced, U.S. Lines (S.A.) will transfer
its South American Service to <Crowley Maritime Corp>'s
American Transport Lines Inc subsidiary in return for a fixed
lease payment for the four Lancer class vessels and a
participation based on American Transport's South American
revenues.
McLean said the agreement also calls for Crowley to release
U.S. Lines (S.A.) for any damages and unpaid charter hire for
three vessels leased to U.S. Lines (S.A.) by Crowley which have
been returned to Crowley.
McLean said the minimum lease payments will be seven mln
dlrs and estimated revenue participation during the first four
years at about 16 mln dlrs. In addition, U.S. Lines (S.A.)
subsidiaries in Brazil and Argentina will be sold to American
Transport.
The company said both agreements in principle have been
approved by directors of the companies involved, but still need
court, regulatory and lender approval.
McLean said it is requesting the bankruptcy court to
schedule a hearing on its motion to approve the agreements,
adding that the court has granted the company's request to
extend for 90 days the period for the shipping companies to
file a proposed plan of reorganization.
It said the planned transactions will leave McLean with no
significant shipping assets except 12 New York class vessels,
which are not in operation and are expected to be sold.
McLean said its shipping units are returning the vessels
operating in foreign commerce to United States ports to permit
the planned transfer to purchasers.
The company said U.S. Lines will maintain its weekly
service from the U.S. West Coast to Hawaii and Guam until the
vessels are transferred and the transaction is completed.
| Corporate News |
COCOA BUFFER DIFFERENTIALS DETAILED
| The International Cocoa Organization
(ICCO) council agreed standard price differentials for
different origin cocoas to form part of the buffer stock buying
and selling procedure, consumer delegates said.
The buffer stock manager will accept offers for different
origin cocoas according to a sliding scale of price
differentials, under which Ghana cocoa will be pegged at a 137
stg premium to Malaysian.
Thus, if the buffer stock manager was buying cocoa based on
a Malaysian price of 1,200 stg a tonne, he would accept Ghana
offers up to 1,337 stg.
Differentials were fixed as follows,
Country Differential stg/tonne
Malaysia 0
Brazil 55
Ivory Coast 67
Cameroun 77
Nigeria 120
Togo 130
Ghana 137
Nigeria's differential is on "landed weight" terms. Shipping
weight terms will be accepted at a 15 stg discount to this
rate.
| Financial Reports |
MINSTAR INC SAID IT SOLD ALL 10 MLN OF ITS BORG-WARNER SHARES
|
MINSTAR INC SAID IT SOLD ALL 10 MLN OF ITS BORG-WARNER SHARES
| Market and Economy |
COCOA COUNCIL MEETING ENDS AFTER AGREEING RULES
| The International Cocoa Organization
(ICCO) council adjourned after agreeing buffer stock rules for
the 1986 International Cocoa Agreement, an ICCO spokesman said.
The buffer stock will begin operations immediately, he
said.
He confirmed delegate reports that the buffer stock manager
will trade cocoa by means of an offer system, and according to
fixed differentials for cocoa from different origins.
Purchases from non-members will be limited to 15 pct of the
total and buying or selling operations in any one day will be
restricted to a maximum of 40 pct each for nearby, intermediate
and forward positions, he said.
| Financial Reports |
MINSTAR INC SAID IT IS STILL INTERESTED IN ACQUIRING BORG-WARNER
|
MINSTAR INC SAID IT IS STILL INTERESTED IN ACQUIRING BORG-WARNER
| Corporate News |
U.S. URGES RESTRAINT IN AEGEAN
| The United States said it was doing
what it could to ease tension in the Aegean as Greek and
Turkish warships headed for a possible clash over oil drilling
rights on the sea's continental shelf.
State Department spokesman Charles Redman told reporters,
"We have urged both sides to exercise restraint and avoid any
actions which might exacerbate the situation."
"In the light of the most recent developments, we are
consulting with the parties and with other interested allies on
means to reduce tensions," he added.
Redman declined to elaborate on what Washington was doing,
but he said an emergency meeting of NATO ambassadors in
Brussels on the subject was only one path it was pursuing.
He also refused to say which side was to blame for the
renewed confrontation, saying Washington was still trying to
ascertain all the facts, as Prime minister Andreas Papanderou
said Greece was prepared to tackle any aggressor.
"The crucial point here is that these are two friends and
allies. We don't want to see tension rise and we are doing what
we can to see if we can help here," Redman said.
| Corporate News |
FIRST FEDERAL SAVINGS <FFKZ> YEAR NET
| Shr 78 cts vs one dlr
Net 1,413,000 vs 1,776,000
Assets 705.3 mln vs 597.3 mln
Deposits 495.6 mln vs 493.9 mln
Loans 260.0 mln vs 379.7 mln
Qtly div six cts vs six cts prior qtr
Pay April 1
Record March 6
NOTE: 1986 net includes charges from accounting changes,
from one-time expenses associated with a proxy contest and an
increase in loan reserves.
First Federal Savings and Loan Association of Kalamazoo is
full name of company.
| Financial Reports |
CARGILL U.K. STRIKE TALKS ADJOURN TO TUESDAY
| Talks between management and unions at
Cargill U.K. Ltd's oilseed processing plant at Seaforth
adjourned today without a solution to the three month old
strike, a company spokesman said.
Negotiations will resume next Tuesday, he said.
| Financial Reports |
CANADIAN MONEY SUPPLY M-1 FALLS 555 MLN DLRS IN WEEK, BANK OF CANADA SAID
|
CANADIAN MONEY SUPPLY M-1 FALLS 555 MLN DLRS IN WEEK, BANK OF CANADA SAID
| Financial Reports |
NEW LME ALUMINIUM CONTRACT WELCOMED BY TRADE
| The London Metal Exchange's, LME,
decision to introduce a dollar-denominated aluminium contract,
with the Port of Singapore listed as a delivery point, is a
positive move, physical traders and LME dealers said.
Earlier this week the LME declared that a 99.70 pct minimum
purity aluminium contract would commence trading on June 1,
1987, alongside its long-established sterling-based 99.50 pct
contract.
This is the LME's first dollar contract and non-European
delivery point, and the Board and Committee are looking at
Singapore as a delivery point for other contracts.
Trade sources said the LME's new contract will conform with
existing industry practice, where 99.70 standard re-melt
material, priced in dollars, is most commonly traded.
The location of a warehouse in Singapore is also a positive
move by the LME, given its ideal location for Australian and
Japanese traders, who would be able to place metal on to
warrant speedily and relatively inexpensively, they said.
Hedging during the LME ring sessions becomes much simpler
with a dollar contract. At present pre-market trading is almost
exclusively dollar-based, but currency conversions have to be
done during the sterling rings, they added.
LME ring dealers said the new contract would match more
closely trade requirements and possibly alleviate some of the
recent wide backwardations.
Very little physical business is now done in 99.50 pct
purity metal, nearly all of which is produced in Eastern Bloc
countries, such as Romania.
The Soviet Union also produces 99.50 pct, but has declined
as an exporter recently, they said.
Some dealers said the new 99.70 contract may suffer from
liquidity problems initially, as business may continue to
centre on the present good ordinary brand (gob) contract, where
there are many holders of large short positions on the LME.
But others said the new contract would soon attract trading
interest, given that much 99.70 metal has already been
attracted to the LME's warehouses by backwardations.
The LME also has a much more viable liquidity base for a
new contract, compared to the Comex market in New York, where
high grade aluminium futures are not particularly active, they
said.
Thus, it seems likely that the sterling contract will
eventually lose trading interest and volumes will decline. Like
standard zinc, which was superseded by a high grade contract,
gob aluminium will probably be replaced, although the process
in this case may take longer, they added.
Forming a new contract and establishing a Singapore
warehouse are constructive moves by the LME but backwardations,
which make physical trading difficult, would not totally
disappear as a result, the trade sources said.
These premiums for prompt metal have become a
semi-permanent feature over the last year, due to increased
business and volatility in traded options, and are presently
around 50 stg.
Increasingly large granting of option positions has been
taking place. When some of these are declared and exercised at
the end of the relevant month, physical tightness and squeezes
around these dates are commonplace, they said.
Listing Singapore as a delivery point allows Far Eastern
operators to deliver aluminium into a LME warehouse instead of
having to cover.
But tightness and backwardations are seen continuing, even
though the LME's new option contracts widen the gap between the
declaration and prompt dates.
These will be due on the first and third Wednesday of the
month, whereas at present most fall on the 20th and 25th.
Backwardations will remain while operators continue to
grant options where potential tonnage to be delivered exceeds
aluminium stock levels, an LME option trader said.
| Corporate News |
CANADIAN MONEY SUPPLY FALLS IN WEEK
| Canadian narrowly defined money supply
M-1 fell 555 mln dlrs to 32.42 billion dlrs in week ended March
18, Bank of Canada said.
M-1-A, which is M-1 plus daily interest chequable and
non-personal deposits, fell 559 mln dlrs to 74.86 billion dlrs
and M-2, which is M-1-A plus other notice and personal
fixed-term deposit fell 439 mln dlrs to 177.30 billion dlrs.
M-3, which is non-personal fixed term deposits and foreign
currency deposits of residents booked at chartered banks in
Canada, fell 696 mln dlrs to 215.74 billion dlrs. MORE
More
| Corporate News |
CORNING GLASS WORKS<GLW> BUYS FIBER-OPTIC STAKE
| Corning Glass Works said it
bought a 50 pct interest in Technology Dynamics Inc, a
Woodinville, Wash., company involved in research and
development of fiber-optic sensors.
The purchase price was not disclosed.
Privately held Technology Dynamics plans to introduce its
first line of fiber-optic sensors later this year, Corning
Glass said.
| Financial Reports |
FIRST NATIONAL CORP <FTNC> 4TH QTR
| Shr loss 29 cts vs loss 15 cts
Net loss 513,542 vs loss 263,708
Revs 38,000 vs nil
Year
Shr loss 24 cts vs loss 10 cts
Net loss 417,552 vs loss 142,010
Revs 171,000 vs nil
| Corporate News |
BEARD CO <BEC> YEAR LOSS
| Shr loss 57 cts vs profit 3.02 dlrs
Net loss 3,606,000 vs profit 8,294,000
Revs 15.3 mln vs 23.9 mln
Note: Net includes gains from sale of USPCI Inc <UPC> stock
of 1.5 mln vs 20.5 mln
Year-ago net includes loss from discontinued operations of
10.3 mln.
| Corporate News |
ESSEX COMMUNICATIONS CORP <ESSXA> YEAR LOSS
| Shr loss 47 cts vs loss 63 cts
Net loss 1,450,000 vs loss 1,930,000
Revs 14.7 mln vs 13.3 mln
Note: Year-ago resulted restated to exclude Michigan cable
systems sold in 1985.
| Financial Reports |
GRAIN SHIPS LOADING AT PORTLAND
| There were seven grain ships loading and
six ships were waiting to load at Portland, according to the
Portland Merchants Exchange.
| Corporate News |
DENNING MOBILE ROBOTICS INC <GARD> 4TH QTR LOSS
| Shr loss nine cts loss 12 cts
Net loss 585,866 vs loss 455,866
Avg shrs 6,841,638 vs 3,651,505
Year
Shr loss 34 cts vs loss 54 cts
Net loss 2,158,709 vs loss 1,931,397
Avg shrs 6,296,701 vs 3,586,914
Note: Company has no revs as it is in product development
stage. Shr and avg shrs data reflect 1-for-25 reverse split in
November 1986.
| Commodities and Trade |
SCOTT'S LIQUID GOLD INC YEAR OPER NET
| Oper shr two cts vs 10 cts
Oper net 162,300 vs 773,400
Revs 16.6 mln vs 16.5 mln
Avg shrs 8,282,480 vs 8,045,493
NOTE: Excludes gains of 138,000 dlrs or two cts/shr vs
733,000 dlrs or nine cts from benefit of tax loss
carryforwards.
| Financial Reports |
LABOR DEPT REPORTS U.S. REAL EARNINGS ROSE 0.6 PCT IN FEB AFTER BEING UNCHANGED IN JAN
|
LABOR DEPT REPORTS U.S. REAL EARNINGS ROSE 0.6 PCT IN FEB AFTER BEING UNCHANGED IN JAN
| Corporate News |
U.S. REAL EARNINGS ROSE 0.6 PCT IN FEBRUARY
| The average weekly earnings of U.S.
workers after adjustment for inflation and seasonal changes
rose 0.6 pct in February after being unchanged in January, the
Labor department said.
The department had earlier reported that real earnings fell
0.3 pct in January but revised the figure to show earnings
unchanged.
Between February this year and February, 1986, real
earnings rose 0.5 pct, the department said.
The rise in February real earnings resulted from a 0.5 pct
increase in average hourly earnings and a 0.6 pct increase in
average weekly hours. That was partly offset by a 0.4 pct rise
in the consumer price index, which measures inflation, the
department said.
Before seasonal adjustment, weekly earnings last month
averaged 307.59 dlrs, up from 305.13 dlrs in January and up
from 300.66 dlrs in February, 1986.
Reuter...
| Corporate News |
TAIWAN TO STUDY SUSPENDING FOREX CONTROLS
| Premier Yu Kuo-Hua ordered financial
officials to quicken the pace of relaxing foreign exchange
controls and study the possibility of suspending the controls,
a cabinet statement said.
The statement quoted Yu as telling Finance Ministy and
Central Bank officials the relaxation was needed to help reduce
Taiwan's surging foreign exchange reserves, which reached a
record 53 billion U.S. Dollars this month.
Finance Minister Robert Chien told reporters his ministry
and the Central Bank would work jointly on new measures to ease
the controls, but he did not give details.
Yu said the government could maintain the framework of the
foreign exchange controls while finding ways to ease them. The
controls would be used during emergency.
Taiwan's reserves have resulted largely from its trade
surplus, which hit 15.6 billion dlrs in 1986 and 10.6 billion
in 1985. About 95 pct of the surplus was from Taiwan's trade
with the United States, according to official figures.
But he said that while easing the controls would help
reduce the reserves, it would not do so substantially in a
short time.
Economists and bankers said the new decision resulted from
growing pressure from the United States, Taiwan's largest
trading partner, which buys almost half the island's exports.
Lu Ming-Jen, economic professor at Soochow University, told
Reuters: "The decision came a little bit late. But it was better
than never."
Ko Fei-Lo, Vice President at First Commercial Bank, said
the government should rapidly relax its foreign exchange
controls and open its market wider to help balance trade with
its trading partners, especially the United States.
"The liberalisation in both imports and foreign exchange
controls will not only help our trading partners, but also help
our own economic problems," he said.
He said the mounting foreign exchange reserveshelped boost
Taiwan's money supply by 48.22 pct in the year to end-February.
| Commodities and Trade |
JAPAN'S CHIP MAKERS ANGERED BY U.S. SANCTION PLANS
| Japanese computer chip makers reacted
angrily to news the United States plans to take retaliatory
action against them for allegedly failing to live up to an
agreement on trade in computer microchips.
Electronic Industries Association of Japan (EIAJ) Chairman
Shoichi Saba stated: "EIAJ believes that it is premature and
even irrational to attempt an assessment of the impact of the
agreement and our efforts to comply with it only six months
after concluding the agreement."
"We urge U.S. Governmental authorities to reconsider the
decision made, to evaluate fairly the results of Japanese
efforts in implementing the objectives of the agreement, and to
resist emotional biases," he said.
Yesterday, Washington announced plans to slap as much as
300 mln dlrs in tariffs on Japanese imports in retaliation for
what is sees as Japan's failure to comply with the terms of the
pact.
The agreement, struck late last year after months of heated
negotiations, called on Japan to stop selling cut-price chips
on world markets and to buy more American-made semiconductors.
To salvage the pact, Tokyo has instructed its chip makers
to slash production and has helped establish a multi-lateral
organisation designed to promote chip imports.
Saba said that Japanese chip companies have pledged three
mln dlrs over the next five years to the new organisation and
expressed regret that no American company has seen fit to join.
"This suggests that American semiconductor manufacturers may
not be really interested in participating in the Japanese
market," he said.
| Financial Reports |
OVERSEA-CHINESE BANKING CORP LTD <OCBM.SI> YEAR
| Shr 21 cts vs 20 cts
Fin Div 8.0 cts gross vs 9.0 cts
Group net 104.8 mln dlrs vs 100.9 mln
Note - Fin div pay June 6, record May 19.
| Corporate News |
UNITED OVERSEAS BANK LTD <UOBM.SI> YEAR
| Shr 26.9 cts vs 25.1 cts
Fin Div 8.0 pct gross vs 8.0 pct
Group net 106.1 mln dlrs vs 99.0 mln
Note - Fin div pay May 25, record April 18.
| Financial Reports |
STRAITS TRADING CO LTD <STCM.SI> YEAR
| Shr 8.7 cts vs 7.7 cts
Fin div 9.0 cts vs 9.0 cts
Group net 23.5 mln dlrs vs 20.8 mln
Turnover 212.7 mln dlrs vs 595.4 mln
Note - Fin div pay May 27, record May 23. REUTER
| Corporate News |
SINGAPORE LAND LTD <LNDH.SI> FIRST HALF FEB 28
| Shr 8.43 cts vs 9.61 cts
Int div nil vs nil
Group net 7.8 mln dlrs vs 8.9 mln
Turnover 30.6 mln dlrs vs 33.5 mln
Note - The company said group net profits for the year
ending this Aug 31 should amount to 13.5 mln dlrs.
| Corporate News |
IVORIAN CHOSEN COCOA COUNCIL EXECUTIVE DIRECTOR
| Edouard Kouame, Ivorian delegate to the
International Cocoa Organization (ICCO), was chosen Executive
Director of the ICCO, effective October 1, ICCO officials said.
Kouame will succeed Dr. Kobena Erbynn of Ghana in the post.
| Corporate News |
MALAYSIA EXPECTS RUBBER SHORTAGE IN APRIL/MAY
| Malaysia said it expects a natural
rubber shortage in April and May because of the effects of
current wintering on rubber trees.
The expected shortage and stronger demand for rubber goods,
especially condoms and surgical gloves by consumers, is likely
to push up prices, the Malaysian Rubber Exchange and Licensing
Board said in its latest monthly bulletin.
During the annual wintering period from February to April
rubber trees shed their leaves and latex output is very low.
| Corporate News |
ZIMBABWE CONFIRMS HOOF-AND-MOUTH DISEASE
| Zimbabwe has confirmed an outbreak of
the animal-borne hoof-and-mouth disease, which prompted
Botswana on Thursday to stop imports of almost all Zimbabwean
meat products.
Agriculture Ministry Permanent Secretary Robbie Mupawose
said it had been found at a ranch in southwestern Matabeleland
province and that all measures were being taken to contain it
from spreading. "The effect of this outbreak on Zimbabwe's beef
exports is being examined," he added in a statement.
Zimbabwe exports a wide range of meat products to
neighbouring states and some 8,000 tonnes of high-grade beef to
the European Community annually worth about 48 mln U.S. Dlrs.
| Financial Reports |
U.S. BANKER PREDICTS FURTHER DOLLAR FALL THIS YEAR
| A leading U.S. Banker said the dollar
was likely to fall another five to 10 pct this year and an
improvement in the huge American trade deficit would be only
temporary at current world exchange rate levels.
Kurt Viermetz, Worldwide Treasurer of <Morgan Guaranty
Trust Co>, told Arab currency traders meeting here that the
steady depreciation of the dollar had not gone far enough to
rein in U.S. Deficits on a lasting basis.
Speaking at the 14th annual congress of the Interarab
Cambist Association, Viermetz said an agreement reached last
month among major industrial nations to steady the dollar
around current levels left many questions unanswered.
"I cannot see any chance for a real turnaround (rise) in the
dollar," Viermetz said. "I believe there is room for a further
fall of five to 10 per cent in 1987."
The United States, West Germany, Japan, France, Great
Britain and Canada -- G-6 -- agreed in Paris in late February
to stabilise major currencies around current levels.
The accord came after months of transatlantic argument,
with Tokyo and Bonn claiming Washington's policy of talking the
dollar lower had made life impossible for West German and
Japanese exporters.
The Paris accord also brought a pause to the continued
slide of the dollar engineered by a meeting in New York in
September 1985 when industrial nations agreed to depress the
value of the currency to help redress global trade imbalances.
But Viermetz said Morgan Guaranty's economic models showed
that with no further change in exchange rates -- and continued
sluggish growth in West Germany and Japan -- the U.S. Trade
deficit would improve only temporarily.
He said the deficit might fall to 145 billion dlrs this
year from 165 billion in 1986 and further improve to 120
billion in 1988 but by 1990, it would be back around 160
billion dlrs.
"This is clearly unacceptable for the monetary authorities
and politicians in Washington," he said.
Viermetz said it was only natural that markets should
attempt to test the credibility of the Paris accord, struck
when the dollar was trading at about 1.83 marks and 152.50 yen.
Immediately before the historic 1985 New York agreement or
"Plaza Accord," the dollar had been trading at 2.84 marks and 240
yen.
Viermetz said he believed major nations in Paris wanted to
see the dollar hold within a "loose range" of 1.75 to 1.90 marks
and 145 to 155 yen, with any attempt to push the U.S. Currency
lower being countered by central bank intervention.
The dollar ended in New York yesterday at 147.15/25 yen --
its lowest level against the Japanese currency in roughly 40
years. It closed at 1.8160/70 marks.
Viermetz also said he did not see the U.S. Federal funds
rate falling below six pct for fear of provoking an
uncontrolled fall in the dollar.
But at the same time, worries about the international debt
crisis would mean there was little chance of a rise above 6-3/4
pct since this would increase loan costs to the third world.
The Middle East foreign exchange conference brings together
more than 200 traders and bank treasury chiefs from the Arab
world and Arab banks in European and U.S. Financial centres.
Formal discussions, which end today, have also centred on
the role of Arab banks in world financial markets, with bankers
urging them to adapt to a new global trend towards
securitisation of business.
Hikmat Nashashibi, President of the Arab Bankers
Association, said Arab banks have to shake off their old
mentality of commercial banking and concentrate more on
investment banking.
| Financial Reports |
OFFICIAL WANTS ARAB FUND TO HELP LEBANESE POUND
| Lebanese central bank Vice Governor
Meguerditch Bouldikian called for the establishment of an Arab
fund to assist the Lebanese pound, which has lost more than 80
pct of its value against the dollar since January 1986.
Bouldikian told an Arab exchange dealers conference the
bank would continue to take measures to defend the currency.
But he said Lebanon needed foreign support for its
war-battered economy now more than ever before. "We expect a
common effort between the central bank and Arab central banks
and monetary authorities to create an Arab fund to support and
preserve the value of the currency when needed," he said.
Twelve years of civil war have devastated productive
sectors of the Lebanese economy and created gaping trade and
budget deficits.
Bouldikian said recent government measures had succeeded in
reducing demand for imports and increasing exports. "These are
encouraging factors, but the war has not ended yet," he said.
"We believe that with a just political solution acceptable
to all sides, confidence will return and this will benefit the
Lebanese pound and Lebanon."
In the meantime, he said the central bank had four main
goals:
1) to use surplus liquidity to finance the budget deficit
2) to increase the role of commercial banks and non-bank
financing institutions in financing the deficit
3) to limit the transfer of Lebanese pounds into foreign
currency deposits
4) to protect the financial health of commercial banks.
| Financial Reports |
JAPAN JOINING INTERNATIONAL COCOA AGREEMENT
| Japan is in the process of joining the
International Cocoa Organisation (ICCO), which will bring the
number of members in the body to 36, ICCO officials said.
Japan is completing constitutional procedures necessary to
its accession to the ICCO and is expected to become an
importing member in three to four months, they said.
| Financial Reports |
TURKISH SHIP IN OIL ROW HEADS FOR AEGEAN
| A Turkish research ship, escorted by
warships and air force planes, left for the Aegean to press
Ankara's case in an escalating row with Greece over oil rights,
the semi-official Anatolian News Agency said.
The ship set off this morning from the Dardanelles port of
Canakkale with flags flying and watched by sightseers, the
agency said.
Prime Minister Turgut Ozal said last night the ship would
not go into international waters unless Greece did the same.
"We are waiting for the first move from them," he told
Turkish Radio in London.
| Financial Reports |
PAPANDREOU SHOWS "RESTRICTED OPTIMISM" OVER CRISIS
| Greek Prime Minister Andreas Papandreou
expressed "restricted optimism" about a crisis with Turkey over
disputed oil rights in the Aegean Sea.
Papandreou was speaking to reporters after briefing
opposition political leaders on the latest developments in the
row as a Turkish research ship escorted by warships and combat
aircraft headed for the Aegean.
He and other political leaders spoke of qualified optimism
following a statement by Turkish Premier Turgut Ozal last night
that the research vessel would not enter disputed waters as
previously annnounced unless Greek vessels did so.
The Prime Minister declined to answer reporters' questions
about an announcement last night that Greece had asked the
United States to suspend operations at one of the American
military bases here due to the crisis.
But Opposition leader Constantine Mitsotakis told reporters
he thought the suspension would be temporary until the crisis
is resolved. A U.S. Defence Department official in Washington
said the station was still functioning.
Communist Party leader Harilaos Florakis said here "the
climate is calmer today."
Greek newspapers reported that the Greek army, navy and air
force had been moved to strategic Greek islands in the Aegean
and to the land border with Turkey at the Evros River.
But there was no official word on military movements apart
from a comment by the government spokesman that the Greek navy
was no longer in port.
The United States, NATO and the United Nations all called
on Greece and Turkey to exercise restraint.
Greek U.N. Representative Mihalis Dounas said in a letter
to the secretary-general that the dispute was of a legal nature
and could be settled in the International Court in the Hague.
| Financial Reports |
CHINA POSTPONES PLAN TO SCRAP PARALLEL CURRENCY
| Chinese Vice-Premier Tian Jiyun said
plans to scrap the country's parallel currency, Foreign
Exchange Certificates (FECs), had been postponed due to
objections from foreign businessmen and others.
But Tian told a news conference the Chinese government
still considered FECs unsatisfactory.
Asked about the current state of plans to abolish the FECs,
Tian said: "We have decided to postpone the question. As to
whether it will be done in the future, it will be done
according to the evolution of the situation."
He said many people, including foreign businessmen, had
raised objections to the plan to abolish the certificates, and
added: "It is rather complicated."
The FECs were introduced in 1980 for use by foreigners in
China. But they now circulate widely among local residents and
there is a big black market in the currency, though it is
theoretically at par with the ordinary Chinese currency,
renminbi.
Tian said the government still considered that the FECs had
"many demerits and negative influences."
Bank of China President Wang Deyan told Reuters earlier
this month that he thought it unlikely that the certificates
would be scrapped this year.
Western diplomats and economists have said the Chinese
authorities are having trouble finding a suitable alternative.
Vice-Premier Yao Yilin announced at a similar press
conference last year that the FECs would be abolished, saying
the government had decided it was ideologically unacceptable to
have two currencies circulating in China at the same time.
| Financial Reports |
NAKASONE SOUNDS CONCILIATORY NOTE IN CHIP DISPUTE
| Prime Minister Yasuhiro Nakasone sounded
a conciliatory note in Japan's increasingly bitter row with the
United States over trade in computer microchips.
"Japan wants to resolve the issue through consultations by
explaining its stance thoroughly and correcting the points that
need to be corrected," he was quoted by Kyodo News Service as
saying.
While expressing regret over America's decision to impose
tariffs on imports of Japanese electrical goods, Nakasone said
Tokyo was willing to send a high-level official to Washington
to help settle the dispute.
Government officials said Japan would make a formal request
next week for emergency talks and that the two sides would
probably meet the week after, just days before the April 17
deadline set by Washington for the tariffs to take effect.
Tokyo is expected to propose a joint U.S./Japan
investigation of American claims that Japanese companies are
dumping cut-price chips in Asian markets.
Yesterday, Washington announced plans to put as much as 300
mln dlrs in tariffs on imports of certain Japanese electronic
goods in retaliation for what it sees as Tokyo's failure to
live up to their bilateral chip pact.
That agreement, hammered out late last year after months of
heated negotiations, called on Japan to stop selling cut-price
chips in world markets and to buy more American-made chips.
Nakasone's comments seemed distinctly more conciliatory
than those of his Trade and Industry Minister, Hajime Tamura,
who earlier today said Japan was ready to take "appropriate
measures" if Washington went ahead with the sanctions.
Ministry of International Trade and Industry (MITI)
officials later sought to downplay the significance of Tamura's
remark and said that his main message was that the two sides
need to talk urgently about the issue.
But they admitted that Japan was considering taking the
United States to GATT, the Geneva-based international
organization which polices world trade, if Washington imposed
the tariffs.
Any Japanese action would probably be taken under Article
23 of the General Agreement on Tariffs and Trade (GATT), they
said. If that article were invoked, GATT would set up a panel
to consider the legality of the U.S. Action.
But officials here said they hope that can be avoided. "It
may be wishful thinking but there is a possibility the United
States may lift its decision at an early date," Tamura said.
In announcing the U.S. Sanctions yesterday, President
Ronald Reagan said he was prepared to lift them once he had
evidence that Japan was no longer dumping chips in world
markets and had opened up its own market to imports.
Japanese government officials said they are confident they
can make the pact work.
They said that the export of cut-price Japanese chips
through unregulated distributors has all but dried up after
MITI instructed domestic makers to cut output.
While acknowledging that it is harder to increase Japanese
imports of American chips, MITI officials said that the
ministry is doing all it can to ensure that happens.
The Ministry recently called on Japan's major chip users,
some of whom are also leading producers, to step up their
purchases of foreign semiconductors.
A spokesman for one of the companies, Toshiba Corp <TSBA.T>
said his firm would do just that and could announce its plans
in the next week or so. He expects other Japanese companies to
do likewise.
| Corporate News |
ISLAMIC BANKS ESTABLISH 50 MLN DLR TRADE PORTFOLIO
| The Islamic Development Bank (IDB) and
20 Islamic Banks signed an agreement to establish a 50 mln dlr
trade portfolio to finance trade among Islamic countries, IDB
sources said.
They said IDB's share in the portfolio, which will only
finance exports and imports of the private sector, was limited
to up to 25 mln dlrs.
The sources said shares in the porfolio could be traded or
redeemed by the IDB, adding that this was a major step in
establishing an Islamic financial market.
| Commodities and Trade |