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FEDERAL REALTY ISSUES 75 MLN DLR CONVERTIBLE BOND

Federal Realty Investment Trust is issuing a 75 mln dlr convertible eurobond due April 30, 2002 paying an indicated coupon of 5-1/4 to 5-1/2 pct and priced at par, lead manager Salomon Brothers International said. The issue has a put option after seven years which will be priced to give the investor a yield in line with current seven year U.S. Treasury bond. Final terms will be fixed on April 9. The selling concession is 1-1/2 pct while management and underwriting each pay 1/2 pct. The issue is available in denominations of 1,000 and 10,000 dlrs. REUTER 

QUEBEC ISSUES 30 BILLION YEN EUROBOND

The Province of Quebec is issuing a 30 billion yen eurobond due May 7, 1997 paying five pct and priced at 102-1/2 pct, lead manager Bank of Tokyo International Ltd said. The non-callable bond is available in denominations of one mln yen and will be listed in Luxembourg. The selling concession is 1-1/4 pct, while management and underwriting combined pays 3/4 pct. The payment date is May 7. REUTER 

ISUZU PLANS NO INTERIM DIVIDEND

Isuzu Motor Ltd <ISUM.T> will pay no dividend for the first half year ending April 30, 1987, as the company is expected to mark a 12 billion yen parent company current loss in the first half due to slow exports caused by the yen's appreciation, a company spokesman said. The company has paid no dividend since the year ended October 31, 1983, when it paid five yen. It had a 4.44 billion yen current profit in the first half of 1985/86. REUTER 

JAPANESE OFFICIAL TAKES DATA TO MICROCHIP TALKS

Ministry of International Trade and Industry (MITI) Vice Minister Makoto Kuroda leaves for Washington today with data he hopes will refute U.S. Charges Japan has violated a pact on microchip trade. A three-man Japanese trade team is already in Washington laying the groundwork for talks between Kuroda and Deputy U.S. Trade Representative Michael Smith aimed at persuading the U.S. Not to impose tariffs on certain Japanese products. But Kuroda said he is taking no new proposals. "I have nothing in my briefcase except an explanation of the current situation," Kuroda told the daily newspaper Asahi Shimbun. Kuroda said the U.S. Decision was based on incorrect data and an exaggerated sense of MITI's power to control market forces. "The U.S. Has excessive expectations. To stabilise supply-demand relations which have been disrupted by excess inventories since 1985 will take some time," he said. Kuroda also laid part of the blame for low U.S. Chip sales in Japan on a lack of effort by American firms here. He said if he fails in talks tomorrow and Friday to forestall sanctions, he will seek further talks with U.S. Trade Representative Clayton Yeutter. U.S. Officials said this week's talks are unlikely to delay imposition of tariffs. REUTER 

FRENCH GOVERNMENT WINS CONFIDENCE VOTE

The French government won, as expected, a vote of parliamentary confidence sought by Prime Minister Jacques Chirac on his general policies. Votes from Chirac's Gaullist RPR party and its junior partner in the ruling coalition, the centre-right UDF, gave Chirac's cabinet a slim majority in the National Assembly. A total of 294 deputies in the 577-member assembly voted to support Chirac, with 282 voting against. One member was absent. The Socialists, Communists and the extreme-right National Front voted against the prime minister's call. REUTER 

NORWAY TO TIGHTEN RULES FOR REGISTERING LOANS

Norway will from June require finance institutions and insurance companies to report lending volume to the central bank once a month rather than quarterly in a bid to tighten domestic lending, Finance Ministry officials said. Norwegian Bank Association President Trond Reinertsen told Reuters the new rule would make it more difficult for banks to transfer funds to financial and insurance companies for lending. Banks have in the past used the two month lapse in loan registration to transfer money for lending to finance and insurance groups to avoid penalty reserve requirements for lending in excess of government set ceilings. The new rule brings loan reporting requirements for insurance and finance companies in line with those already applied to commercial banks, Ministry officials said. Borrowers have increasingly sought loans from finance and insurance companies after the central bank last year clamped down on what it called excessive bank lending. Bank lending dropped by five billion crowns in January from 260 billion crowns the previous month in response to the stricter penalty reserve requirements, Oslo bankers said. They said recent central bank cuts in the overnight rate it charges banks might offset new pressure on interest rates. REUTER 

BELL GROUP CONFIRMS STANDARD CHARTERED STAKE

The Bell Group Ltd <BLLA.S> said it now holds 14.9 pct of the issued capital of Standard Chartered Plc <STCH.L> after acquiring further shares. The one-sentence statement from Bell's headquarters confirmed what its brokers Warburg Securities told Reuters in London yesterday. Bell previously held 10 pct of Standard. Bell chairman Robert Holmes a Court, who is also a director of Standard, was not available for comment on his company's intentions in boosting its holding and other company officials contacted here by Reuters declined to comment. REUTER 

S. AFRICA MINES BODY SEES MAY DAY WORK STOPPAGE

Negotiations between mining companies and the National Union of Mineworkers are foundering and mines could face a May Day work stoppage, the Chamber of Mines said. It said the union had called off talks on a specific issue, the introduction of a Labour Day on May 1. The union refused a request to give advance notification of the names of workers who would be working on May 1 rather than taking the option of a paid holiday, the Chamber said. It said mining companies wanted advance notice in order to plan their operations. "The union is adamant only employees who wish to work on Labour Day should notify management," the Chamber said. "This raises the prospect that the mines will once again face stay-away action on May 1 and that the employees who do not work will once again forfeit pay." It said the union accepted all the proposals except giving advance notification for May 1. It said miners had been offered a full paid holiday on May 1 or a premium of six pct of their basic monthly pay for working that day. REUTER 

NIPPON STEEL DENIES CHINA SEEKING JAPANESE PLANTS

Nippon Steel Corp <NSTC.T> denied local newspaper reports that China has been seeking to buy steel plants from Japanese firms which plan to suspend output under the recently announced rationalisation program. The Mainichi Shimbun quoted Nippon Steel as saying that China's State Planning Commission and some Chinese firms have asked Japanese makers to sell them steel works and rolling mills to expand steelmaking cheaply. It named no sources. A Nippon Steel spokesman told Reuters that China has made no such official request, and the company was not considering such sales at the moment. But Mainichi quoted Nippon Steel officials as saying if prices are reasonable, they would export their used mills to China. The paper said China's crude steel output totalled 52 mln tonnes in calendar 1986 and that it plans to increase to 80 mln by 1996. Japan's steel industry rationalisation plan is aimed at cutting production capacity sharply over the next few years. REUTER 

FRENCH FEBRUARY CAR OUTPUT UP 27.2 PCT

February car production totalled 269,745 this year, up 27.2 pct on a year-on-year basis, the Automobile Constructors' Association (CSCA) said. This brought total car output in the first two months of the year to 504,266, a 14.1 pct year-on-year rise, it said. REUTER 

JARDINE MATHESON REPLACES "B" SHARE BY BONUS ISSUE

Jardine Matheson Holdings Ltd <JARD.HK> said it will withdraw the previously announced four-for-one bonus issue of "B" shares and replace it by a two-for-five bonus issue of ordinary shares. A statement said the firm expects to pay total dividends for 1987 of not less than 40 cents a share on the expanded capital. Jardine Matheson decided to withdraw its issue because of a joint announcement earlier today by Ronald Li, chairman of the Stock Exchange of Hong Kong, and Securities Commissioner Ray Astin, that the listings of new "B" shares would be barred. The official announcement said this will include the proposal by Jardine Matheson. But the Jardine statement quoted chairman Simon Keswick as saying: "We continue to believe that the issuing of "B" shares would benefit shareholders, and regret that they will not be given the opportunity to vote on the matter at this stage." Keswick said the "B" share issue will benefit Jardine Matheson's shareholders by giving the firm flexibility to issue ordinary shares for expansion in future without diluting existing shareholders' voting rights. However, he added: "We certainly welcome (the Secretary for Monetary Affairs) David Nendick's referral of this very important matter to the Standing Committee on Company Law Reform and are hopeful that the process will lead to the development of general principles which can be embraced by all constituents of the Hong Kong market." REUTER 

JAPAN GIVEN LITTLE HOPE OF AVOIDING U.S. SANCTIONS

A top U.S. Official said Japan has little chance of persuading the U.S. to drop threatened trade sanctions, despite the efforts of a Japanese team that left for Washington today. Michael Armacost, Under Secretary of State for Political Affairs, was asked at a press conference whether Japan's moves to boost its domestic economy and open its markets could persuade the U.S. Not to impose tariffs on Japanese imports said, and replied: "...It is probably too early for the figures to demonstrate that the situation has turned around and to permit the result you have described." Armacost said the U.S. Hopes Japan will take steps to lift its domestic economy and reduce dependence on exports, remove barriers to imports and settle outstanding trade issues. "There are obvious problems at the moment in the trade area, but we do not wish those problems to divert attention from important areas of cooperation that continue to exist on security and political issues," he said. "The question is whether through cooperative actions between our governments we can reduce the (trade) imbalance or whether Congress takes action to reduce it through protectionist legislation," he said. REUTER 

BANK OF JAPAN INTERVENES SOON AFTER TOKYO OPENING

The Bank of Japan bought a small amount of dollars shortly after the opening at around 145.30 yen, dealers said. The central bank intervened as a medium-sized trading house sold dollars, putting pressure on the U.S. Currency, they said. The dollar was also supported by a major electrical consumer goods company, which was a speculative dollar buyer at around 145.25 yen, they added. The dollar opened at 145.33 yen against 145.60/70 in New York and 145.25 at the close here yesterday. REUTER 

MOSCOW INDIGNANT AT REAGAN STATEMENT

Soviet Deputy Foreign Minister Vladimir Petrovsky said today Moscow felt "indignation and regret" at what he called "truly hostile statements about the Soviet Union" made by President Reagan. Reagan told reporters yesterday he was ordering a high-level review of security at the U.S. Embassy in Moscow following a sex-and-spy scandal there and said Soviet diplomats would not be allowed to use a new embassy in Washington until the U.S. Moscow mission was made secure. Petrovsky told reporters it was not accidental that Washington had chosen this time, only a week before a scheduled Moscow visit by U.S. Secretary of State George Shultz, to make accusations against the Soviet Union. Objective conditions existed for improving Soviet-U.S. Relations. "But it seems that someone in Washington fails to appreciate this process and tries to poison the atmosphere," he said. Reuter 

BATTLES FLARE NEAR SOUTHERN BEIRUT CAMPS

Fighting broke out between Palestinian guerrillas and Shi'ite Moslem Amal militiamen near camps in south lebanon as Syria prepared to extend its military presence at Beirut's settlements. Security sources in the southern port of Sidon said the clashes erupted in villages to the southeast between Amal and guerrillas loyal to Palestinian leader Yasser Arafat. Syria stepped in yesterday to halt battles at two Beirut refugee camps but Amal said it would only lift its siege after Arafat withdrew his men from the villages near Sidon. Reuter 

SOUTH AFRICAN OUTLOOK SEEN BRIGHTER, LIBERTY LIFE

South Africa's economic recovery has broadened as favourable terms of a three-year foreign debt rescheduling accord have given confidence to local business, Liberty Life Association of Africa Ltd said. The major life assurance company said in its first quarter review that economic activity improved in 1986 with car and retail sales clearly rising, adding that South Africa's economic future had "brightened considerably." Liberty said pre-conditions existed for further growth in 1987 despite longer term structural problems. Short-term interest rates were unlikely to rise markedly in the near future and unemployment levels were stabilising, the company said. But the report cautioned that South Africa's economy still faced high inflation and "extremely fragile" consumer and business confidence which could be upset by political events. It also predicted the rand was likely to remain basically a weak currency despite its nine pct rise in the first quarter to 49.55 U.S. Cts. REUTER 

MALAYSIAN FUND TO BE LAUNCHED IN U.S. IN MAY

The first Malaysian investment fund for foreign investors will be launched in the United States market next month to raise between 60 to 69 mln dlrs, <Arab Malaysian Merchant Bank Bhd> (AMBB) said. The fund, called <Malaysian Fund Inc>, will be jointly sponsored by the merchant bank and the International Fund Corporation of the World Bank, said AMBB in a statement. The two institutions, together with Merrill Lynch Capital Markets <MER> and Morgan Stanley Inc <MS>, are underwriters for the fund, it added. AMBB said its wholly-owned subsidiary <Arab Malaysian Consultant> will be the fund's Malaysian investment adviser while <Morgan Stanley Asset Management Inc> will manage it. It added that 80 pct of the money raised will be used to invest in shares of Malaysian companies on the Kuala Lumpur Stock Exchange and the remaining in unlisted shares. AMBB said the fund will expose the Malaysian market to US and Japanese investors and help develop the local capital market. REUTER 

INDONESIAN INFLATION RATE 8.8 PCT IN 1986/87

Inflation was by 8.8 pct in Indonesia during fiscal 1986/87 to March 31, compared to 5.66 pct the previous year, Information Minister Harmoko said after a cabinet session to discuss the economic situation. REUTER 

U.K. MONEY MARKET GIVEN 53 MLN STG ASSISTANCE

The Bank of England said it provided the money market with 53 mln stg assistance in the morning session. This compares with the bank's estimate of a shortage in the system of around 300 mln stg which it earlier revised up from 250 mln. The central bank made outright purchases of bank bills comprising 46 mln stg in band three at 9-3/4 pct and seven mln stg in band four at 9-11/16 pct. REUTER 

COUPON CUT ON KEIHANSHIN REAL ESTATE WARRANT BOND

The coupon on the 25 mln dlr equity warrant eurobond for Keihanshin Real Estate Co Ltd has been set at 2-1/8 pct compared with the 2-1/4 pct indication, lead manager Daiwa Europe Ltd said. The exercise price has been set at 810 yen per share which represents a premium of 2.53 pct over today's closing price of 790 yen. The exchange rate was set 146.30 yen to the dollar. The five-year deal is priced at par and guaranteed by the Sumitomo Bank Ltd. REUTER 

SAN MIGUEL DEAL HIT BY MORE LAWSUITS

A bid by San Miguel Corp (SMC) <SANM.MN> to buy back 38.1 mln sequestered shares from United Coconut Planters Bank (UCPB) has been hit by two new lawsuits, sources in the Philippine food and brewery company said. A Manila court yesterday issued an injunction barring UCPB from selling the shares, which represent 31 pct of SMC's outstanding capital stock of 121 mln shares, until hearings on April 21 on a petition filed by Eduardo Cojuangco, a former chairman of both SMC and UCPB. Cojuangco said the Coconut Industry Investment Fund (CIIF) and 1.4 mln farmers were the rightful owners of the shares. Cojuangco said the shares were held in trust by UCPB and represented a blue chip investment. His petition said UCPB's plans to sell the shares to SMC were "a serious breach of fiduciary duties." The SMC sources said the proposed share sale could also be held up by a second derivative suit filed before the Securities and Exchange Commission (SEC) by Eduardo de los Angeles, a government nominee on the company's board. De los Angeles, who represents SMC's minority stockholders, asked the SEC to block the transaction, approved last week by the company's board. On April 2 the board sanctioned the repurchase of the sequestered shares for 4.79 billion pesos at 126 pesos per share. De los Angeles told the SEC the company's retained earnings of 1.33 billion pesos would be wiped out by the purchase of the shares and would prevent the declaration of dividends. De los Angeles said the share purchase would also violate an SMC agreement with its creditors to maintain a 2.2-to-1 debt to equity ratio. He quoted SMC's chief financial director Ramon del Rosario as telling the board that the transaction would boost the ratio to 2.5-to-1. In petitioning the SEC, de los Angeles amended an earlier suit two weeks ago in which he charged SMC Chairman Andres Soriano III and nine other directors of violating their duties. De los Angeles' earlier complaint related to SMC assuming last December a 26.5 mln dlr loan contracted by SMC's Hong Kong subsidiary <Neptunia Corp> for a down payment on the shares. The loan assumption was again ratified by last week's board meeting. An arbitration panel set up by President Corazon Aquino to resolve the ownership issue is expected to submit its report by April 15. "The amended suit filed by Eduardo de los Angeles is part of a continuing attempt by certain elements, in complete disregard of the facts and with questionable motives, to delay an early disposition of the sequestered shares," San Miguel Corp said in a statement. "Coming as it does, when San Miguel Corp and UCPB have reached agreement on the price of the shares and the method of payment, this suit is in direct contravention of the government's expressed desire to reach an amicable settlement of the controversy by April 15," the statement added. A San Miguel spokesman said he had no comment on Cojuangco's court petition, adding: "Any statement coming from us might be interpreted as adversarial." Meanwhile, Ramon Diaz, the head of a government panel which sequestered the shares last year, said Soriano was not eligible to buy the major portion of the shares because he was a United States citizen. The sequestered shares are split into 24 mln "A" shares, which can only be owned by Filipinos, and 14 mln "B" shares which are available to foreign buyers. SMC sources said Soriano personally was not among prospective buyers. They said the shares would be purchased by the <A.Soriano> group of companies, SMC, Neptunia and unnamed institutional investors. Soriano was named as one of the buyers in a bid in March 1986 for 33 mln shares controlled by UCPB. The sale was aborted when Diaz's Presidential Commission on Good Government sequestered the shares on suspicion they were owned by Cojuangco, a close associate of former President Ferdinand Marcos. Cojuangco lives in self-imposed exile in the U.S.. The shares grew to 38.1 mln after a 15 pct stock dividend announced last June. "We have no objection to Soriano buying the "B" shares," Diaz told Reuters. "But everything is on hold now." The SMC spokesman said he did not know if the controversy would be resolved before the company's annual stockholders' meeting, scheduled for May 14. San Miguel Corp reported sales revenue of 12.2 billion pesos in 1986, 11 pct above its 10.9 billion peso sales in 1985. It said unaudited net profit was in the neighbourhood of 700 mln pesos, an increase of about 50 pct over 1985. REUTER 

RAIN BOOSTS CENTRAL QUEENSLAND SUGAR CANE CROP

Good rains of one to four inches in the past 10 days have boosted moisture-stressed sugar cane crops in the Mackay-Burdekin region of Queensland's central coast, an Australian Sugar Producers' Association spokesman said. As previously reported, the region has been undergoing a severe dry spell, partly relieved by scattered rainfall, since December, following the virtual failure of the summer wet season. Mills in the area have been reporting that their crops are beginning to look healthy and greener and are putting on growth since the rains began, the spokesman said from Brisbane. Although the Mackay-Burdekin crop outlook is much better than it was, there will be some cane losses, the spokesman said. But is too early to say what they will be and more rain is needed to restore sub-soil moisture. Elsewhere, in far north Queensland, the Bundaberg region and southern Queensland, the cane is in excellent condition and some mills are forecasting record crops, he said. Initial 1987 crop estimates will probably be compiled towards the end of May, he said. The cane crush normally runs from June to December. REUTER 

FRENCH TRADERS FORECAST EC SUGAR TENDER

The European Community (EC) is expected to award export licences at today's weekly tender for above 60,000 and possibly up to 100,000 tonnes of white sugar after last week's award for 102,350 tonnes, traders here said. They expected a maximum rebate of between 46.40 and 46.50 Ecus per 100 kilos, compared to last week's 46.864. Earlier, traders in London said the outcome of the tender was very hard to predict after last week's substantial award and the placing of 785,000 tonnes of sugar into intervention. They said they believed the tonnage would be around 60,000 but declined to give a rebate figure. REUTER 

PHILADELPHIA SEES CURRENCY OPTIONS TRADE IN ASIA

The Philadelphia Stock Exchange will soon open offices in Hong Kong and Tokyo to help boost Far Eastern participation in foreign currency options before it starts evening trading in four or five months time, exchange president Nicholas Giordano told reporters. Japanese institutions are already major players in foreign currency options traded in Philadelphia, using subsidiaries or agents to trade during the current daytime session. REUTER 

THYSSEN UNIT TO COOPERATE WITH CANADIAN FIRM

Thyssen AG <THYH.F> unit Thyssen Guss AG, a metals group, said it had agreed to cooperate with Canadian firm <Cercast Inc> to manufacture fine casting products. Both companies would merge plants in the West German towns of Soest and Moers under a new company in which the two groups would have equal shares in a capital of three mln marks. A spokeswoman for Thyssen Industrie AG, which holds 100 pct of Thyssen Guss, said the joint-venture should produce turnover of an annual 40 mln marks. Thyssen Industrie is held 90 pct by Thyssen AG. REUTER 

ITALY'S LA FONDIARIA TO REPORT HIGHER 1986 PROFITS

Italian insurer La Fondiaria Spa <LFDI.MI> said it expects to report consolidated group profit in 1986 significantly higher than the 60 billion lire reported in 1985. The company said in a statement that parent company net profit last year will rise from the 72 billion lire reported in 1985. Consolidated group premiums totaled 1,700 billion lire in 1986 compared with 1,490 billion the previous year. Iniziativa Meta <INZI.MI>, the financial services unit of Montedison Spa <MONI.MI>, controls the largest single stake in Florence-based Fondiaria with 49.9 pct. REUTER 

NATIONAL BANK MORTGAGE ISSUES CANADIAN DLR BOND

National Bank Mortgage Corp is issuing a 100 mln Canadian dlr eurobond due May 18, 1992 with a nine pct coupon and priced at 101-3/4 pct, McLeod Young Weir International Ltd said as lead manager. The non-callable bonds will be guaranteed by the National Bank of Canada. They will be issued in denominations of 1,000 and 10,000 dlrs and listed in Luxembourg. Gross fees of 1-7/8 pct comprise 1-1/4 pct for selling and 5/8 pct for management and underwriting combined. Pay date is May 18. There will be two co-leads. REUTER 

NICKEL PRICES UNLIKELY TO RISE MUCH - SHEARSON

Nickel prices are unlikely to rise significantly from current levels unless further steps are taken to reduce production, Shearson Lehman Brothers said in its quarterly nickel market report. The market had recovered slightly to around 1.72 dlrs a lb yesterday from its four year low of 1.55 dlrs in early January, due to the absence of Soviet nickel cathode deliveries, but Shearson sees Soviet shipments soon returning to last year's buoyant levels, which should ease current tightness. Output reductions by producers will take effect later this year but are likely to be offset by increases elsewhere. Shearson said the nickel market will be virtually in balance during 1987, with total non-Socialist world demand at 556,000 tonnes, compared with an estimated 544,000 tonnes in 1986, production at 505,000 tonnes (504,000) and imports from Socialist countries at 47,000 tonnes (50,000). It forecast prices will edge higher during the year from a first quarter average of 1.67 dlrs a lb up to 1.77 dlrs in the last quarter. The year's average will be around 1.72 dlrs a lb compared with 1.76 dlrs in 1986, using London Metal Exchange cash metal prices in dollar terms and assuming an average 1987 sterling exchange rate of 1.55 dlrs. REUTER 

HONG KONG PROVIDES NEW GUARANTEE FOR MTRC DEBTS

The government will provide new guarantees for up to three billion H.K. Dlrs in financing instruments to be issued by the government owned <Mass Transport Railway Corp>, bringing the total to 9.1 billion dlrs, Financial Secretary Piers Jacobs said. He told the Legislative Council the instruments would replace existing longer term government guaranteed export credit debt obligations. A total of 1.5 billion dlrs in government guaranteed export credit debt obligations are due to mature in two years. REUTER 

HIGHER 1986 PROFIT FOR DUTCH CHEMICAL FIRM DSM

The fully state-owned Dutch chemical firm NV DSM <DSMN.AS> said its 1986 net profit rose to 412 mln guilders from 402 mln in 1985, while turnover fell to 17.7 billion guilders in 1986 from 24.1 billion in 1985. The company said 1986 dividend, which will be paid to the Dutch state in its capacity of the firm's sole shareholder, would be raised to 98 mln guilders from 70 mln guilders in 1985. In an initial comment on its 1986 results, DSM said the drop in 1986 turnover had been caused mainly by losses in the company's fertilizer division. REUTER 

POEHL WARNS AGAINST FURTHER DOLLAR FALL

Bundesbank President Karl Otto Poehl said a weaker dollar would be risky and a further appreciation of the mark would damage prospects for sustained West German economic growth. In a speech to the Institute of Contempory German Affairs here, Poehl said "It would be an extremely risky policy to aim for a further substantial decline in the value of the dollar to correct the trade deficit." He said the United States could face a vicious circle of depreciation, inflation and more depreciation if it took that route. Poehl noted West Germany had already taken steps to meet U.S. Demands for greater stimulation of its domestic economy, accelerating tax cuts, cutting interest rates and tolerating above-target money supply growth. He said he would have been happy to have brought forward five billion marks of tax cuts now planned for January 1988 to the beginning of this year, but he said the government faced political constraints getting such measures through the upper house of the West German parliament. But there were also limits to the impact West Germany could accept on exports from a rising mark, he said. Poehl said West Germany relied on exports for about one-third of its gross national product, so a substantial erosion of export markets could not be offset by increasing demand at home. "A further appreciation of the mark could even be an obstacle to further growth," he said. Poehl said the Bundesbank had tolerated rapid money supply growth last year because the country enjoyed low inflation and because external factors, including low oil prices and favourable terms of trade, had given some extra leeway. But Poehl said West Germany now faced a difficult dilemma over monetary policy. The underlying rate of inflation was now two pct, not the reported negative inflation rates last year, and West Germany was affected more than before by exchange rate developments. "For the time being, we will have to focus our policy more on the external side, and we can live with a more expansionary money supply. But we must be very careful," he said. He said he shared some of the U.S. Concern about Japan's trade surpluses, which affected European countries as well as the United States. Poehl welcomed the so-called Louvre accord of monetary officials of major industrialized countries, saying the importance of the February 22 agreement to stabilize exchange rates had been underestimated. All partners had agreed that the dollar was at about the right level, and that further changes would damage growth, he said. "This was a remarkable change in attitude, especially on the part of our American colleagues," he said. But he said there was still a danger that the correction of the dollar's value could overshoot. REUTER 

CINCINNATI BELL <CSN> STARTS AUXTON <AUXT> BID

Cincinnati Bell Inc said it has started its previously-announced 15.75 dlr per share tender offer for all shares of Auxton Computer Enterprises Inc. In a newspaper advertisement, the company said the tender and withdrawal rights will expire May Five unless extended. The offer, which has been approved by the Auxton board and is to be followed by a merger at the same price, is conditioned on receipt of a majority of Auxton's voting stock on a fully diluted basis. Reuter 

CALIFORNIA BIOTECH <CBIO> SEES 1ST QTR LOSS

California Biotechnology Inc said it expects to report a loss of 1,300,000 dlrs to 1,600,000 dlrs for the first quarter due to increased investment in research and manufacturing and a scaleup of production. The company said research spending is running 50 to 60 pct above a year ago as it tries to commercialize its products as quickly as possible, and increased expenditures are expected to continue for several more quarters. It said operating results will fluctuate quarter to quarter, depending on the timing of significant payments from commercial partners. In the first three months of 1986, the company lost 150,000 dlrs. The company changed its fiscal year in 1986 to a calendar year from a year ending November 30. For the first quarter of last year, ended February 28, California Biotech earned 114,000 dlrs. Reuter 

PALL CORP <PLL> SETS QUARTERLY DIVIDEND

Qtly div 8-1/2 cts vs 8-1/2 cts prior Pay May One Record April 20 Reuter 

JAPAN DIVISION OF LABOUR WITH ASIA URGED

Japan should promote division of labour with its Asian neighbours, especially the newly industrialized countries, to help achieve more balanced world economic growth, the Bank of Japan said in a report. Instead of trying to produce everything by itself, Japan should open up its market further to imports, transfer manufacturing facilities abroad and increase technology transfer with those nations, the bank said in its monthly report. Japan should not see industrializing Asian nations as mere competitors in its overseas and domestic markets but as countries that can contribute to the region's prosperity. The bank said trade relations between Japan and the Asian neighbouring countries have so far been vertical, meaning that Japan imports primary goods from those countries and exports manufactured goods to them. But this has resulted in an increase in their trade deficits with Japan while some newly industrialized Asian nations have accumulated trade surpluses with countries like the United States. REUTER 

BOTSWANA APPEALS FOR DROUGHT AID

President Quett Masire appealed for international aid to combat the effects of a drought ravaging land-locked Botswana for the sixth consecutive year. Speaking on state radio, Masire said the drought had decimated herds of cattle and wiped out crops throughout the mainly desert country, which would be forced to rely on South Africa for most of its food supplies in the coming year. Masire said the government would also be forced to continue a drought relief program until at least the end of 1988 to provide emergency water supplies and supplementary food to vulnerable sections of the population. "It is against this background that we appeal to the international community for assistance," Masire said. He thanked foreign governments for previous assistance, but added, "The needs of the people in rural areas are greater now, not less. We must prevent the human suffering caused by malnutrition." REUTER 

U.K. GOVT TO INJECT 283 MLN STG INTO ROLLS ROYCE

The U.K. Government will inject 283 mln stg gross into <Rolls Royce Plc> when the company is floated at the end of this month, the pathfinder prospectus for the sale said. The government will offer all 635 mln existing shares, as well as an unspecified number of shares created through the capital injection, for sale to the public, the prospectus said. The sale price will be announced on April 28 and the offer will close on May 7. Trading is expected to begin on May 19. The offer will be made in the U.K. Only and there will be no offering of shares overseas, it said. No allocation will be made of more than 10 pct of the shares in the company, and the government will hold on to a "golden share" to secure that the aero-engine manufacturer remains under U.K. Control, the prospectus said. Chairman Sir Francis Tombs said in the prospectus special arrangements were being made for U.K. Employees and pensioners of the company to buy shares on a preferential basis. Secretary of State for Trade and Industry Paul Channon said the capital injection of 283 mln stg would ensure the company had a sound a balance sheet when it returned to the private sector after 1971. REUTER 

CALIFORNIA MOVES AGAINST KMG MAIN HURDMAN

California regulators said they were seeking disciplinary action against the accounting firm KMG Main Hurdman as the result of a 1985 audit of Technical Equities Corp., an investment firm that filed for bankruptcy last year. A spokeswoman for the California Board of Accountancy, which certifies public accountants and firms in the state, said a six-page complaint was filed against the New York-based accounting firm. "We basically charged that the Technical Equities audit was not conducted in accordance with generally accepted auditing standards," Della Bousquet, executive officer for the board, told Reuters in a telephone interview. She said a hearing would probably be held before an administrative law judge within three months. Penalties could range from censure to revocation of KMG Main Hurdman's license to do business in California. KMG Main Hurdman merged last week with Peat Marwick Mitchell of New York to become the world's largest accounting firm. The San Francisco office of the firm declined to comment on the board's allegations. Bousquet said the company, among other things, was accused of not properly investigating financial transactions and of issuing a favorable opinion in August 1985 that relied on misrepresentations of Technical Equities management. She said the accounting firm, although it knew Technical Equities had severe cash flow and liquidity problems, was accused of not performing a proper audit of it. The complaint named four individuals, including two partners and two audit managers. Technical Equities, based in San Jose, filed for protection under Chapter 11 of the bankruptcy laws in February 1986, listing debts of 69.7 mln dlrs to 1,068 investors. Many of the investors were prominent sports and broadcasting figures. Reuter 

IRAN MOUNTS FRESH ATTACKS ON IRAQ NEAR BASRA

Iranian forces mounted fresh attacks on the Gulf war southern front today but Iraq said all were repulsed with heavy loss of life. The Iranian news agency IRNA said Iranian troops inflicted severe losses on Iraqi troops and military equipment on the second day of a new offensive east of Iraq's city of Basra. "A number of tanks and personnel carriers were seized intact which were used against the enemy in the operational theatre," IRNA said. The Iraqi news agency INA said Iraqi forces beat back the latest Iranian thrusts. Baghdad said earlier that the Iranians had gained "footholds" on Iraqi territory after launching the offensive on three fronts near Basra. IRNA said yesterday the Iranians overran the headquarters of two Iraqi brigades west of Fish Canal, a defensive line about 10 km from Basra. Reuter 

OECD URGES GERMANY TO STEP UP AID

West Germany should take steps to increase its official development assistance, the Organisation for Economic Cooperation and Development (OECD) said. A report by the organisation's Development Assistance Committee (DAC) said German aid levels had shown only a moderate increase in real terms in recent years, adding that there was a risk that growth over the next few years might slow further. German aid, estimated at around four billion dlrs in 1986, represents 0.46 pct of the country's GNP. This is above the DAC's average of 0.36 pct, but might decline if corrective measures were not taken, the report said. REUTER 

UNILEVER SEEKS BUYER FOR STAUFFER CHEMICAL

Unilever Plc and NV <UN.AS> has issued a prospectus through investment bankers Goldman Sachs and Co seeking a buyer for <Stauffer Chemical Co> of the U.S., Which it acquired with the recent takeover of <Chesebrough-Pond's Inc>, a Unilever spokesman said. He noted Unilever has been indicating plans to dispose of Stauffer, plus some smaller assets of Chesebrough, since the bid was made in December. The Stauffer sale prospectus has been sent in recent weeks to a number of companies expressing interest. The Unilever spokesman declined to say how much the group expected to receive for Stauffer. Chesebrough's footwear and tennis racket businesses are also likely to be disposed of, he added. Immediately available financial information on Stauffer, which is wholly-owned, was limited, he added. Nine month sales to September 1986 were about 1.2 billion dlrs. Unilever aquired Chesebrough for 3.2 billion dlrs in order to benefit from its well-known toiletry brands and food products. Reuter 

ASEAN SHOWS MIXED PERFORMANCE IN 1986

A sharp oil price decline and sharp fluctuations of exchange and interest rates in 1986 produced a mixed economic performance by the Association of Southeast Asian Nations (ASEAN), a United Nations study said. The annual report of the U.N. Economic and Social Commission for Asia and the Pacific (ESCAP) said the international economic environment reversed the fortunes of the trade-oriented economies of the six ASEAN member countries. It said the already low 1985 growth rates of ASEAN's oil exporting countries -- Brunei, Malaysia and Indonesia -- dropped further after the oil price fall. Three oil importers -- Singapore, the Philippines and Thailand -- improved their performance mainly by restructuring their economies. But the report said the oil price fall reduced export earnings, worsening economic prospects for the exporters. The exporters' non-oil commodity prices did not show major improvement and protectionist pressures from industrial countries restricted export of manufactured products, it said. The GDPs of Indonesia, which was 1.9 pct in 1985, and Malaysia, which fell a real one pct, barely grew in 1986. The two countries, buffeted by unfavourable external factors in the past few years, were forced to curb aggregate domestic consumption demands last year to avoid severe balance of payments pressures and to resort to extensive commercial borrowings. The U.N. Body said the economic outlooks of Singapore, Thailand and the Philippines improved steadily in 1986 as the year advanced. It said the most favourable factor benefiting the three was the realignment of key currencies, especially the appreciation of the yen, which has resulted in the increased competitiveness of their exports against those from Japan. The report said the downward spiral plaguing the Philippine economy since 1983 was reversed into an estimated 0.9 pct GDP growth in 1986 with agriculture and public utilities becoming growth sectors. It said the resumption of the Philippines' sustained growth rests largely on a satisfactory solution of its debt problem. ESCAP said the yen appreciation, together with economic restructuring measures, played a big role in helping Singapore recover faster than expected from its 1.8 pct GDP decline in 1985. It said the Singapore GDP achieved a growth of over one pct last year after registering positive growth from the second quarter. The Singapore economic revival was hampered by its own adjustment measures especially its two-year wage freeze enforced last April, a glut of its property market and depressed conditions in its ASEAN neighbours which hurt Singapore because they take about a quarter of its total exports. The report said Thailand benefited from the changing world economic environment far more than any of its ASEAN neighbours. The Thai performance stemmed from the expansion o its non-traditional export items last year to cover more manufactured products and its greater exploration of unsaturated export markets such as Asia, the Middle East and the European Community. REUTER 

CONRAC CORP SAID IT HAS ENTERED TALKS ON ITS ACQUISITION WITH SEVERAL PARTIES

BRITAIN, JAPAN CLASH OVER STOCK MARKET ACCESS

Britain and Japan clashed today over U.K. Demands for greater access to the Tokyo Stock Exchange (TSE) as trade tensions between the two countries mounted. British consumer affairs minister Michael Howard told reporters he was dissatisfied with the exchange's response to Britain's non-negotiable timetable for increased British membership and warned of possible reprisals in the future. He described his meeting with Tokyo stock exchange (TSE) head Michio Takeuchi, in which he demanded greater exchange access, as "very frank indeed." In a separate press conference, TSE President Michio Takeuchi said the exchange has done its utmost to liberalise its membership and called on Britain to make some concessions. According to Takeuchi, Howard wants three British firms to be named members of the Tokyo stock exchange by the end of this year. Neither Takeuchi nor Howard would name the companies. "Next May is the earliest possible date for opening our membership and I want the British government to understand this," Takeuchi said. Membership cannot be increased before space on the trading floor is expanded in May 1988, he said. Howard told reporters that was not good enough and said that Britain would use its powers to ban Japanese financial institutions from London if it was not satisfied with Tokyo. Japan has until the next meeting of senior officials from the two countries in May or June to come up with a postive response to the British timetable or face retaliation, he said. "The timetable was constructed in a way that made it a very reasonable request and I expect it to be met," he said. Asked about the exchange's argument that it has no floor space to expand membership, Howard replied, "We find it very difficult in our country to understand why the considerable ingenuity and resourcefulness of the Japanese (in world markets) is unable to overcome problems of that kind." While here, Howard said he also expressed frustration with the huge trade imbalance with Japan and with Tokyo's handling of demands by Britain's Cable and Wireless for a greater role in Japan's telecommunications business. According to Japanese newspaper reports, at least some of that message may have penetrated. According to several reports, the Post and Telecommunications Ministry is considering a Cable and Wireless proposal for a telephone cable between Japan and the U.S. Ministry officials were unavailable for comment. REUTER 

CANADIAN AIRLINES TO PURCHASE SIX BOEING 767 AIRCRAFT

ALLIED SIGNAL <ALD> FIBERS UNIT SETS RESEARCH

Hauser Chemical Research Inc said it has been contracted by Allied Signal Inc's Allied Fibers division for research consulting on further development of improved adhesion of polyolefin fiber through photografting. Hauser said it previously completed the successful first phase of this research effort. Reuter 

VARIAN <VAR> GETS <TOSHIBA CORP> CONTRACT

Varian Associates Inc said it has received a three-year contract worth over 30 mln dlrs from Toshiba Corp to supply anode X-ray generating tubes for Toshiba's line of computerized tomography scanners. Reuter 

<ASIX SYSTEMS> GETS MORE FINANCING

ASIX Systems, a developer of test systems for ASIC devices, said it has received 4,800,000 dlrs in a second round of equity financing. The company said investors include first round participants Paragon Partners, Citicorp <CCI>, Vista Ventures, Rust Ventures and Orien Ventures, plus new investors North Carolina Bank Venture Co LP, RepublicBankCorp <RPT> and ECI Ventures. It said it has now raised total capitalization of 8,600,000 dlrs. Reuter 

CONRAC <CAX> IN MERGER TALKS WITH SEVERAL

Conrac Corp sait has started negotiations with several interested parties on its possible acquisition. It said there can be no assurance that any transaction will result from the talks. It gave no further details. Mark IV Industries Inc <IV> started tendering for all Conrac shares at 25 dlrs each on March 24 and owned 9.9 pct of Conrac before starting the bid. Conrac is a producer and marketer of computer-related information display and communications equipment which also produces special purpose architectural and industrial products. It owns Code-A-Phone Corp, a producer of telephone answering machines. For 1986, the company reported profits of 7.8 mln dlrs, or 1.16 dlrs a share, on sales of 153.9 mln dlrs. It has nearly 6.8 mln shares outstanding. Reuter 

TOP FRENCH BANKER SEES CHINA FOREIGN DEBT VERY LOW

China's foreign debt is very low given its export capability, the size of its economy and its growth potential and the country is politically stable, Jean-Maxime Leveque, chairman of Credit Lyonnais, told reporters. Leveque, who has met the heads of most of China's banks including the president of its central bank during a visit here, said the Chinese authorities are very attentive to its foreign debt and have the matter under control. Official figures show China's foreign debt at a post-1949 record 16 billion dlrs at end-1986. Asked if he had advised China to borrow more francs and U.S. Dollars and less yen, Leveque said he had not offered any advice, but added: "The yen and the dollar are not stable, but the ECU is stable." Asked if his bank has lost any confidence in China after the resignation of Communist Party chief Hu Yaobang in January, he said: "We have total confidence in the political stability in China. The policies of the open door and economic development outlined in 1979 will not change, although there may be fluctuations in speed." REUTER 

JAPAN'S LDP URGES MORE IMPORTS OF 12 FARM ITEMS

The ruling Liberal Democratic Party (LDP) has proposed expanding imports of 12 farm products named in a U.S. Complaint against Japan to the General Agreement on Tariffs and Trade last year, an LDP official said. The products include fruit juices, purees and pulp, some tomato products, peanuts, prepared beef products and beans. The proposal will be used as the basis for a more detailed LDP economic package to cut the trade surplus with the U.S. The party is expected to formalise the package before April 19, when LDP General Council Chairman Shintaro Abe visits Washington. Reuter 

AUSTRALIAN UNIONS LAUNCH NEW SOUTH WALES STRIKES

Australian trade unions said they have launched week-long strikes and other industrial action in New South Wales, NSW, to protest against new laws that would reduce injury compensation payments. Union sources said talks with the state government broke down last night, but the two sides are scheduled to meet later today in an attempt to find a compromise. Rail freight and shipping cargo movements in the country's most populous state were the first to be affected, and union officials said almost every business sector will be hit unless there is a quick settlement. The state government recently introduced a new workers' compensation act which would cut the cash benefits to injured workers by up to a third. The act is now awaiting parliamentary ratification. NSW state premier Barrie Unsworth has said workers' compensation has risen steeply in recent years and the proposed cuts would save hundreds of mlns of dollars a year. Union officials said industrial action could spread to other states as the federal government also plans to make sharp cuts in workers' compensation. Reuter 

TANZANIA RAISES PRICES TO KEEP BUDGET DEFICIT DOWN

The Tanzanian government raised the price of beer, soft drinks and cigarettes by 20 pct and telephone and telex calls by 10 pct in an attempt to keep its budget deficit for this financial year roughly on target. The deficit for the financial year ending on June 30 was initially forecast at 3,350 mln shillings and the new measures will raise some 700 mln shillings in extra revenue, a statement from the Ministry of Finance, Economic Affairs and Planning said. According to the statement, the price increases, which take immediate effect, were needed because the government had lost tax revenue through lower than expected industrial production. Water and power problems and a shortage of spare parts had reduced the output of Tanzanian factories, it said. The ministry also announced a new 30 pct tax on goods imported by non-resident businessmen and said the government would take steps against importers who have been evading duty in collusion with corrupt customs officials. REUTER 

COMPUTER RESEARCH INC <CORE> 2ND QTR FEB 28 NET

Shr 14 cts vs nine cts Net 217,572 vs 153,454 Revs 2,530,273 vs 2,558,924 1st half Shr 19 cts vs 11 cts Net 299,838 vs 174,739 Revs 4,865,249 vs 4,495,021 Reuter 

NMR CENTERS <NMRC> STARTS BUILDING IMAGE CENTER

NMR Centers Inc said it has started building five mln dlr multi-modality Ocean Medical Imaging Center in Toms River, N.J., and completion is scheduled for November. It said the center should generate more than five mln dlrs in annual revenues when fully operational. NMR said it is providing about 3,500,000 dlrs in equipment and working capital and will manage the center, while Center State Health Services Corp is financing construction of the 1,600,000 dlr building. Reuter 

NO SPECIAL CHECKS AT GERMAN BANKS BECAUSE OF VW

Banking supervisory authorities are not carrying out any special checks at banks in the wake of the currency fraud scandal at Volkswagen AG <VOWG.F>, a spokesman for the Hesse regional state central bank, LZB, said. But inspectors are paying particular attention to foreign exchange matters in their routine checks at banks, he said in answer to enquiries. There is no evidence rules were broken. The LZB spokesman was commenting on press reports that banks had "parked" open currency positions for short periods with VW to circumvent regulations limiting the size of open currency positions that can be carried by banks overnight. The press allegations emerged after VW said it may have lost 480 mln marks as a result of a possible currency fraud. LZBs are regional branches of the Bundesbank. Their inspectors also act for the Federal Banking Supervisory Office in West Berlin, which regulates banking in West Germany. Following the 1974 Herstatt bank crash on currency speculation, West Germany limited a bank's total open positions overnight to 30 pct of shareholders' equity and reserves. German press reports have said some banks circumvented this rule by selling excess positions to VW, then repurchasing them. The banking regulations only cover banks. Company foreign exchange activities are not subject to the banking regulators. The LZB spokesman said there were no concrete signs that the regulations had been broken, and it would be irresponsible to instigate a special check just on the basis of the reports. The LZBs receive monthly balance sheet statistics from banks in their areas, which they check, and they also routinely inspect all banks in greater detail over longer periods. But LZB officials said it would be hard for inspectors to detect a breach of these rules as they do not check companies and therefore would not see both sides of any parking deal. "If the managements of the banks have not spotted them, it will be even harder for our inspectors," said one official. It would be up to the public prosecutors to order special checks on suspicion of breaches of these regulations, they said. Prosecutors in Brunswick are already investigating the VW currency scandal, and have ordered the arrest of VW's former chief foreign exchange dealer. Breaches of the Banking Law in this way can be punished by a 100,000 mark fine for the dealers involved, and in extreme cases by removal of the managers if their active involvement is proved. REUTER 

AUSTRALIAN FOREIGN SHIP BAN ENDS

Tug crews in New South Wales (NSW), Victoria and Western Australia yesterday lifted their ban on foreign-flag ships carrying containers but NSW ports are still being disrupted by a separate dispute, shipping sources said. The ban, imposed a week ago over a pay claim, had prevented the movement in or out of port of nearly 20 vessels, they said. The pay dispute went before a hearing of the Arbitration Commission today. Meanwhile, disruption began today to cargo handling in the ports of Sydney, Newcastle and Port Kembla, they said. The industrial action at the NSW ports is part of the week of action called by the NSW Trades and Labour Council to protest changes to the state's workers' compensation laws. Reuter 

RUBBERMAID INC 1ST QTR SHR 28 CTS VS 22 CTS

INDEPENDENT CHAIRMAN FOR DUTCH CARGO DISPUTE

The two sides in the Rotterdam port general cargo dispute have agreed to appoint an independent chairman, Han Lammers, to preside over future meetings, employers' spokesman Gerard Zeebregts said. Lammers, Queen's Commissioner for the province of Flevoland, will not act as a mediator but will draw up an agenda and procedures for meetings between the employers and unions on a work-practice agreement and proposed redundancies. Two months of strikes in the sector began on January 19 in protest at employers' proposals for 350 redundancies from the 4,000-strong workforce this year. The strikes were called off by the main port union FNV on March 13 following an Amsterdam court's interim injunction against the redundancies on procedural grounds. The court is due to make a final ruling on May 7 but Zeebregts said he expected the judgment to go against the employers and they were therefore very likely to restart the complicated legal redundancy procedures in the near future. Meanwhile, the dispute over a new work-practice agreement in the port's grain sector continued, with 30 maintenance workers on strike, although loading was not affected, a spokesman for Graan Elevator Mij, the largest employer in the sector, said. The employers have written to the union asking it to reconsider its position and a meeting of union members has been called for tomorrow. Reuter 

ELECTRO RENT CORP <ELRC> 3RD QTR FEB 28 NET

Shr 20 cts vs 32 cts Net 1,358,000 vs 2,476,000 Revs 27.1 mln vs 26.2 mln Avg shrs 6,852,000 vs 7,764,000 Nine mths Shr 68 cts vs 1.05 dlrs Net 4,957,000 vs 8,129,000 Revs 82.6 mln vs 78.8 mln Avg shrs 7,316,000 vs 7,754,000 Reuter 

BOEING <BA> UNIT CHOOSES UNDUCTED FAN ENGINE

Boeing Co's Boeing Commerical Airplane Co said it selected an unducted fan engine for continued development as the baseline engine for the advanced technology 7J7 airliner due to enter service in 1992. Boeing said it reached the decision following a three-month study of <International Aero Engine's> SuperFan concept and the General Electric <GE> UDF engine. Boeing said the UDF engine would up with a nine pct advantage in fuel savings over the SuperFan on a typical 500-nautical-mile trip. Boeing said it wil proceed with detail design of the 7J7 and could launch the program in 1987 depending on the market response. It will seat about 150 passengers, the company said. Reuter 

RUBBERMAID INC <RBD> 1ST QTR NET

Shr 28 cts vs 22 cts Net 20.6 mln vs 16.1 mln Sales 238.0 mln vs 188.8 mln Reuter 

WTC INTERNATIONAL INC <WAF> 4TH QTR FEB 28 NET

Shr profit 13 cts vs loss 33 cts Net profit 1,149,000 vs loss 2,833,000 Rev 51.8 mln vs 47.8 mln Year Shr profit 24 cts vs loss 18 cts Net profit 2,050,000 vs loss 1,551,000 Rev 200.6 mln vs 180.1 mln Reuter 

U.K. MONEY MARKET GIVEN FURTHER 166 MLN STG HELP

The Bank of England said it provided the market with further help totalling 166 mln stg during the afternoon. In band one, it bought 31 mln stg of treasury bills and three mln stg of bank bills at 9-7/8 pct, while in band two it bought 69 mln stg of bank bills at 9-13/16 pct. In addition, it bought 63 mln stg of band three bank bills at 9-3/4 pct. This brings the total assistance by the Bank so far today to 219 mln stg against a liquidity shortage it has estimated at around 300 mln stg. REUTER 

MEAD CORP 1ST QTR OPER SHR 1.09 DLRS VS 67 CTS

CANADIAN AIRLINES TO PURCHASE SIX BOEING<BA>JETS

Canadian Airlines International said it agreed to purchase six Boeing Co 767-300ER (extended range) aircraft, and options on eight more, for 1.6 billion Canadian dlrs, including spare parts and training. Delivery will begin in April 1988 and run through April 1989, the company said. The airline said it plans to finance the new aircraft by means of oeprating leases. Canadian Airlines was recently formed through the merger of Canadian Pacific Airlines and Pacific Western Airlines. Reuter 

RUBBERMAID <RBD> SEES CONTINUED IMPROVEMENT

Rubbermaid Inc said its incoming order rates continue strong and it expects to continue recording favorable year to year comparisons in each remaining quarter of 1987. Today the company reported first quarter earnings of 20.6 mln dlrs on sales of 238.0 mln dlrs, up from earnings of 16.1 mln dlrs on sales of 188.8 mln dlrs. Reuter 

CAYUGA SAVINGS BANK <CAYB> 1ST QTR NET

Shr 55 cts vs 41 cts Net 494,000 vs 204,000 Avg shrs 896,655 vs 494,155 Reuter 

JOHNSTOWN SAVINGS BANK FSB <JSBK> 1ST QTR NET

Shr 33 cts vs not given Net 642,484 vs 362,883 NOTE: Company went public in October 1986. Net includes pretax loan loss provisions of 90,000 dlrs vs 56,250 dlrs and gain on sale of securities of 113,432 dlrs vs 88,946 dlrs. Reuter 

HOME SAVINGS AND LOAN ASSOCIATION INC <HSLD>

2nd qtr March 31 Shr 57 cts vs not given Net 790,874 vs 628,020 1st half Shr 1.15 dlrs vs not given Net 1,588,985 vs 1,073,163 NOTE: Company recently went public. Reuter 

GEODYNAMICS CORP <GDYN> 3RD QTR FEB 27 NET

Shr 21 cts vs 20 cts Net 596,000 vs 594,000 Revs 8,693,000 vs 8,164,000 Nine mths Shr 61 cts vs 58 cts Net 1,784,000 vs 1,653,000 Revs 26.3 mln vs 23.0 mln Reuter 

<NORTH STAR URANIUM INC> CHANGES NAME

North Star Uranium Inc said it has changed its name to West Coast Traders Inc to reflect its business, the bulk importing of olive oil. The company said it plans to start distributing its Italia Olive Oil brand, now sold on the West Coast, nationally. North Star Uranium had been inactive until it acquired West Coast Traders in June 1986. Reuter 

GREAT LAKES CHEMICAL <GLK> TO BUILD NEW PLANT

Great Lakes Chemical Corp said it will build a new plant in El Dorado, Ark., to produce several fluorine-based specialty chemicals. It said total cost of the project, which would employ up to 50 workers, is estimated in excess of 20 mln dlrs. Reuter 

SWEDISH UNEMPLOYMENT STEADY IN MARCH

Swedish unemployment was steady at 2.2 pct of the workforce in March compared with the previous month, the Central Bureau of Statistics said. In March 1986, the figure stood at 2.4 pct. REUTER 

COMPAQ <CPQ> EXPECTS HIGHER FIRST QUARTER NET

Compaq Computer Corp said it expects sales and earnings for the first quarter of 1987 to be higher than analysts expectations due to strong demand for its products. Rod Canion, president and chief executive officer of Compaq, said he expects sales of over 200 mln dlrs for the period ending March 31, above analysts' estimates of 165-185 mln dlrs. He added that earnings per share would exceed analysts estimates of as high as 42 cts a share. Compaq reported earnings of 8.3 mln dlrs, or 30 cts a share, and sales of 144 mln dlrs for the first quarter 1986. The company said demand for its DESKPRO 386, PORTABLE III and the new COMPAQ DESKPRO 286 will contribute to the sales increase. "The initial demand for the recently introduced COMPAQ PORTABLE III and the new models of the COMPAQ DESKPRO 286 exceeds that of any other Compaq personal computers," Canion said. "We saw continued demand for our personal computers across the quarter, with March (1987) being a particularly strong month. Reuter 

CHRISTIAN DEMOCRAT MINISTERS RESIGN

Italy's majority Christian Democrats have handed in their resignation from the five-party government in which they are senior partners, Deputy Prime Minister Arnaldo Forlani said. Forlani, president of the party, said he had handed a letter of resignation by the Christian Democrats, who make up more than half the 30 member cabinet, to the office of Prime Minister Bettino Craxi. Political sources said the withdrawal of the Christian Democrats meant the coalition -- which also includes Republicans, Social Democrats and Liberals as well as the Socialists -- had collapsed. Reuter 

M/A-COM <MAI> ENDS CHIEF OPERATING OFFICER POST

M/A-Com Inc said it has eliminated the post of cheif operating officer, which had been held by president Thomas F. Burke until his recent election as chief executive officer. The company said in a reorganization, it has named senior vice president-corporate marketing James F. Bunker to the new post of executive vice president and chief strategic officer, giving him responsibility for corporate marketing, component field sales, strategic planning, new business development and the company's corporate technology center. The company said Richard H. Hale, president of the components division, has been named executive vice president-Components Group, giving him additional responsibility for the semiconductor division and advanced semiconductor operations. It said Harold C. Wells has been named executive vice president-Systems Group, giving him responsibility for the government systems division, Omni West subsystems division, subsystems operations in Burlington, Mass., microwave power devices operations in Hauppauge, N.Y., and the M/A-Com MAC operation in Chelmsford, Mass. Wells had been co-president of the subsystems division. Reuter 

I.U. INTERNATIONAL <IU> TO SELL INSURANCE UNITS

I.U. International Co said it reached a preliminary agreement to sell the Hawaiian Insurance Cos to Hawaiian Electric Industries Inc. <HE>. Terms of the transaction were not disclosed, the company said. The transaction is subject to the execution of definitive agreements, certain governmental approvals and approvals by the boards of directors involved, I.U. International said. Hawaiian Electric said the planned purchase was part of its strategy to increase the company's investment in selected service industries in Hawaii, including financial services. Reuter 

COLOROCS <CLRX> EXTENDS WARRANT EXERCISE PERIOD

Colorocs Corp said it has extended the expiration of the exercise period for its Class A warrants to May Eight from April 16. Each warrant allows the holder to buy a common share for 3.75 dlrs. Reuter 

MASON BEST FORMS ENERGY HOLDING COMPANY

<Mason Best Co> said it has formed <Meridian Energy Corp>, a privately-owned holding company structured to acquire operating companies ans assets in the oil and gas industry. Mason Best, a Texas-based merchant banking firm, said it is sponsor and largest shareholder of Meridian. The new company's chairman and chief executive officer is Ralph E. Bailey, who retired as vice-chairman of Du Pont Co <DD> and chairman of its Conoco Inc subsidiary on March 31. Meridian is headquartered in Dallas with an administrative office in Stamford, Conn. Reuter 

CXR TELCOM CORP <CXRL> 3RD QTR MARCH 31 NET

Shr nil vs nil Net 215,000 vs 16,000 Revs 2,800,000 vs 1,100,000 Nine mths Shr one ct vs nil Net 620,000 vs 231,000 Revs 8,100,000 vs 2,100,000 Reuter 

PROXMIRE OUTLINES INSIDER TRADING LEGISLATION

Senate Banking Committee Chairman William Proxmire (D-Wis) said he planned to introduce legislation shortly to require greater public disclosure of corporate takeovers and fairer treatment for all shareholders. Speaking to the National Association of Manufacturers, Proxmire said recent insider trading stock scandals increased the chance that Congress will act to curb abuses. "We are proposing legislation that would provide for more disclosure, would be fairer to all shareholders, and would insure that takeovers are properly financed," he said. Among the provisions, the bill would reduce the threshold for notifying the Securities and Exchange Commission that a investor or group has acquired a percentage of stock in a company to three pct from the current five pct threshold within 10 days, Proxmire said. In addition, there would be a pre-notificaton requirement that an investor intended to aquire three pct that would have to filed with the SEC. Proxmire said the pre-notification requirement was meant to prevent arbitragers from having a jump on the general public in knowing about coming takeover attempts. Proxmire said he would call for extending the period that a tender offer must be kept open under the Williams Act to 60 business days from the current 20 business days. His bill would provide for private suits if the acquiring company violated the time period on the tender offer. To correct abuses in the financing of takeovers, Proxmire said the legislation would aim at insuring current margin requirments are properly enforced. The Federal Reserve Board has a 50 pct margin requirement for purchasing stock, but Proxmire said it is not generally enforced in hostile takeovers. Rather, the groups or individuals leading a takeover declare that they can raise the capital for a takeover without actually putting any of their own money, Proxmire said. He said his bill would allow private suits for damages for failure to meet the Federal Reserve's 50 pct margin requirements. The bill also would require more disclose when several investors form an alliance in a hostile takeover. "When Pickens and Icahn get together we want people to know about it," Proxmire said. Proxmire said he favored the approach used in Britain towards two-tiered tender offers that insures that all shareholders recieve equal treatment. He said he expected amendments to the bill also would cover defensive mechanisms such as green mail and poison pills. Proxmire said he intended to introduce his bill later this month and predicted the Senate committee would act this spring. He said he was hopeful Congress could pass a bill this year. Reuter 

HELEN OF TROY CORP <HELE> 4TH QTR FEB 28 NET

Shr 17 cts vs 13 cts Net 598,000 vs 392,000 Sales 10.2 mln vs 7,474,000 Avg shrs 3,432,000 vs 3,045,000 Year Oper shr profit 1.05 dlrs vs loss 47 cts Oper net profit 3,498,000 vs loss 1,427,000 Sales 52.2 mln vs 40.8 mln Avg shrs 3,320,000 vs 3,060,000 NOTE: Latest year net excludes 782,000 dlr tax credit. Reuter 

BANKERS TRUST <BT> PUTS BRAZIL ON NON-ACCRUAL

Bankers Trust New York Corp said it has placed its approximately 540 mln dlrs of medium- and long-term loans to Brazil on non-accrual status and that first-quarter net income will be reduced by about seven mln dlrs as a result. Brazil suspended interest payments on its 68 billion dlrs of medium- and long-term debt on February 22. U.S. banking regulations do not require banks to stop accruing interest on loans until payments are 90 days overdue, but Bankers Trust said it acted now because of "the high potential of a continued suspension that would result in reaching the 90-day limit in the second quarter of 1987." Assuming no cash payments at current interest rates are received for the rest of 1987, Bankers Trust estimated that full-year net income would be reduced by about 30 mln dlrs. Bankers Trust said it assumes that debt negotiations between Brazil and its commercial bank lenders will lead to the resumption of interest payments. The negotiations resume in New York on Friday when central bank governor Francisco Gros is expected to ask banks for a 90-day rollover of some 9.5 billion dlrs of term debt that matures on April 15. Reuter 

<FIRST MERCANTILE CURRENCY FUND INC> 1ST QTR NET

Shr profit 63 cts vs 22 cts Net 775,868 vs 276,446 Revs 2,255,742 vs 706,130 Reuter 

UK INTERVENTION BD SAYS EC SOLD 118,350 TONNES WHITE SUGAR AT REBATE 46.496 ECUS.

STOLTENBERG SEES MOVES TO STRENGTHEN PARIS ACCORD

West German Finance Minister Gerhard Stoltenberg said today's meetings of major industrial countries would look at ways of strengthening the Paris accord on stabilizing foreign exchange rates. Stoltenberg told journalists he saw no fundamental weakness of the February 22 agreement of the Group of Five countries and Canada to keep exchange rates near the then-current levels. But he declined to say what measures would be discussed ahead of a communique of the Group of Seven ministers later today. Stoltenberg and Bundesbank President Karl Otto Poehl said the importance of the Paris agreement, also known as the Louvre accord, had been underestimated. Stoltenberg said there is greater agreement now among major countries than six months ago, at the time of the annual meeting of the International Monetary Fund and World Bank, marked by sharp discord between the United States and its major trading partners. "There is no fundamental weakness of the Paris accord," he said. "We will be looking at ways of strengthening it, but I do not want to discuss that here. Stoltenberg said the Louvre agreement was working despite a "slight firming" of the yen against the dollar. And Poehl noted that the dollar/mark parity was unchanged since February 22 without the Bundesbank having had to sell marks to support the dollar. "The Louvre agreement has been honored by the market," he said. Poehl said West Germany had lived up to its side of the bargain in Paris by preparing the way for tax cuts to be accelerated as a way of stimulating growth. Poehl said, however, that Japan had not yet fulfilled its pledges for economic stimulation. "And we will have to see if the United States is able to do what they promised in Paris on reducing the budget deficit -- and get it through Congress," he added. Stoltenberg reiterated West German concern about a further fall in the dollar, noting that the mark was up 85 pct against the dollar and nearly 20 pct on a trade-weighted basis. "You cannot expect that to go unnoticed in an economy. And it is not just a German problem, it is a European problem," he said. REUTER 

U.K. INTERVENTION BOARD DETAILS EC SUGAR SALES

A total 118,350 tonnes of current series white sugar received export rebates of a maximum 46.496 European Currency Units (Ecus) per 100 kilos at today's European Community (EC) tender, the U.K. Intervention Board said. Out of this, traders in the U.K. Received 37,800 tonnes, in France 34,500, in West Germany 20,000, in Belgium 18,500, in Spain 5,800 and in Denmark 1,750 tonnes, it added. Earlier today, London traders had declined to give a projected view on the level of subsidy although some said total tonnage awards would be around 60,000 tonnes. Paris traders foresaw between 60,000 and 100,000 tonnes being authorised for export at a 46.40/46.50 Ecu subsidy. Cumulative sales authorisations for the current season (1986/87) now stand at 2,194,970 tonnes (43 weeks). Last week saw 102,350 tonnes whites authorised for export under licences to end-Sep at the higest ever rebate of 46.864 European Currency Units (Ecus) per 100 kilos. REUTER 

FORD EXTENDS INCENTIVE PROGRAM ON LIGHT TRUCKS TO APRIL 30 FROM APRIL SIX

NORANDA TO SELL 150 MLN DLRS IN DEBENTURES

<Noranda Inc> said it will sell 150 mln dlrs of adjustable convertible subordinated debentures to a group of investment dealers led by Gordon Capital Corp. The debentures will be convertible into Noranda common shares until April 29, 2007 at 35 dlrs per share. Interest rate will be five pct subject to upward adjustment based on dividends paid on common shares, Noranda said. Reuter 

BACHE SECURITIES CANADA BUYS TORONTO EXCHANGE SEAT FOR 301,000 DLRS

MAFINA BOND WITH WARRANTS SET AT 250 MLN SFR

The issue amount of Mafina BV's seven year two pct Swiss franc bond with equity warrants has been set at 250 mln Swiss francs, lead manager Credit Suisse said. REUTER 

MEAD <MEA> EXPECTS IMPROVED EARNINGS THIS YEAR

Mead Corp said the outlook for its major paper markets looks strong for the second quarter and augurs well for its earnings in 1987. "The generally strong outlook bodes well for significantly improved earnings this year," Burnell Roberts, chairman and chief executive officer said. Earlier, the company reported first quarter earnings of 34.2 mln dlrs, or 1.09 dlrs a share, versus 20.3 mln dlrs, or 65 cts a share, in last year's first quarter. In 1986 the company reported earnings from continuing operations of 109.3 mln dlrs, or 3.50 dlrs a share. Mead said its first quarter benefitted from stronger market conditions and improved operations. "The combination of capital improvement programs and more employee involvement has been paying off throughout our paper operations," Roberts said. He added that Mead's pulp and paperboard businesses are operating well as prices have improved and strong demand has placed most products in a sold-out position through the middle of the year. Mead said sales of its unbleached coated paperboard was particularly strong, up 13 pct versus the first quarter 1986. Reuter 

ENDOTRONICS SEEKS TO ESTABLISH 2ND QTR RESERVE

Endotronics Inc said because of its decisions to discontinue development of health care products, reorganize under Chapter 11 and establish adequate allowances for uncollectible receivables, it expects to establish reserves totaling about 11 mln dlrs in the March 31 second quarter. The company said it plans to seek buyers for health care technologies including proprietary rights to a Hepatitis B Vaccine and technologies related to LAK cell cancer immunotherapy. Reuter 

AMERTEK INC <ATEKF> 1ST QTR NET

Shr profit 20 cts vs loss three cts Net profit 849,299 vs loss 82,512 Revs 7,929,138 vs 3,849,224 Reuter 

COMSTOCK GROUP <CSTK> SELLS PREFERRED STOCK

Comstock Group Inc said it has signed a letter of intent to sell about 20 mln dlrs of convertible preferred stock to <Spie Batignolles SA> of Paris' Spie Group Inc U.S. subsidiary. Details were not disclosed. Reuter 

QVC NETWORK <QVCN> CLARIFIES AGREEMENT

QVC Network Inc said its agreement in principle with Safeguard Scientifics Inc <SFE> allows Safeguard to name the majority of QVC's directors only if a seven mln dlr indebtedness to Safeguard is in default. Yesterday, QVC said announced it entered into the agreement in principle with Safegaurd under which QVC would receive 13 mln dlrs in financing, including seven mln dlrs of QVC notes to be purchase by Safeguard and a six-mln-dlr revolving credit facility to be provided by a local bank. QVC said as long as the seven mln dlr indebtedness to Safeguard remains outstanding, Safeguard will be able to name three of QVC's nine directors. Safeguard's ability to name a majority of QVC's directors will be triggered only if the seven mln dlr indebtedness to Safeguard is in default, the company said. Reuter 

ALEX BROWN INC <ABSB> 1ST QTR MARCH 27 NET

Shr primary 78 cts vs 68 cts Shr diluted 75 cts vs 68 cts Qtrly div six cts vs five cts Net 7,929,000 vs 6,569,000 Revs 78.7 mln vs 61.9 mln NOTE: Pay date for the qtrly div is April 28 for shareholders of record April 20. Reuter 

EQUITABLE RESOURCES <EQT> FILES UNIT OFFERING

Equitable Resources Inc said it filed with the Securities and Exchange Commission a registration statement covering a 75 mln dlr issue of units. Each unit will consist of a 1,000 dlr face amount 25-year debenture with up to 21 five-year warrants to purchase the company's common stock. Each warrant will equal one share. The debentures will be non-refundable for 10 years. Proceeds will be used to repay short-term loans incurred to finance part of Equitable's 1986 capital expenditure program and the redemption of 9-5/8 pct and 10-1/2 pct first mortgage bonds of 1995. First Boston will manage the issue. Reuter 

TOWN AND COUNTRY JEWELRY MANUFACTURING <TCJC>

4thh qtr Feb 28 Shr 46 cts vs 22 cts Net 2,139,034 vs 854,182 Sales 30.8 mln vs 20.6 mln Avg shrs 5,280,854 vs 4,559,646 Year Shr 1.34 dlrs vs 1.15 dlrs Net 5,935,117 vs 4,156,171 Sales 107.2 mln vs 71.6 mln Avg shrs 5,281,387 vs 3,616,183 NOTE: Town and Country Jewelry Manufacturing Corp. Reuter