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PHOENIX STEEL RECEIVES OFFER FOR CLAYMONT MILL | <Phoenix Steel Corp> said a group
of investors offered to buy its Clayton steel plate mill for
eight mln dlrs and the assumption of a bond obligation.
Phoenix did not disclose the indentity of the investors.
Phoenix was forced to close the Clayton mill last month.
The company said the offer represents a major step in
restructuring the company.
Reuter
|
NORTH AMERICAN PHILIPS <NPH> SELLS DEBENTURES | North American Philips Corp is raising
100 mln dlrs via an offering of debentures due 2017 yielding
8.809 pct, said sole manager Morgan Stanley and Co Inc.
The debentures have an 8-3/4 pct coupon and were priced at
99.375 to yield 125 basis points over the off-the-run 9-1/4 pct
Treasury bonds of 2016.
The issue is non-refundable for 10 years. A sinking fund
that starts in 1998 to retire five pct of the debentures
annually can be increased by 200 pct at the company's option.
Moody's rates the debentures A-2 and Standard and Poor's rates
them A-minus.
Reuter
|
KEANE INC <KEAN> 4TH QTR | Shr 17 cts vs 15 cts
Net 229,000 vs 201,000
revs 10.5 mln vs 9.9 mln
Year
Shr 21 cts vs 55 cts
Net 283,000 vs 766,000
Revs 40.4 mn vs 39.7 mln
NOTE:1985 shares adjusted to reflect the distribution of
one share of Class B common stock for every two shares of
common stock held of record as of July 1, 1986.
Reuter
|
SAVIN <SVB> NOTE CONVERSION ENDS | Savin Corp said the first period
for the exercise of the special conversion right for its zero
coupon convertible senior notes due February one, 1996, has
expired.
Savin said about 1,767,000 shares of its common stock will
be issued as a result of the conversion.
The share certificates issued through the conversion will
be distributed to noteholders beginning March six, Savin added.
Reuter
|
MERIDIAN DIAGNOSTICS <KITS> GETS FDA APPROVAL | Meridian Diagnostics Inc said it
received approval from the Food and Drug Administration to
market a test to detect a disease which drains fluids from the
bodies of AIDS victims.
The company said the test detects Cryptosporidium SP in
stool specimens. The disease can result in life threatening
loss of fluids, the company added.
Reuter
|
SENATE COMMITTEE POSTPONES BANK BILL VOTE | The Senate Banking Committee has
postponed until March 10 its meeting scheduled for tomorrow to
act on a bank regulation bill.
A committee aide said the postponement was requested by
Republican members who wanted more time to look over a revised
draft version of the bill which was just introduced.
That version of the bill would allow non-bank banks to
continue activities in operation as of March 5, but would
prohibit them from starting other financial services.
The previous draft bill would have banned non-bank bank
activities started after July 1, 1983.
Reuter
|
REAGAN TO VISIT ROME, BERLIN DURING SUMMIT TRIP | President Reagan will visit Rome and
West Berlin during a trip to Europe in June to attend the
Venice summit meeting of the major industrialized countries,
the White House said.
The announcement said Reagan and Nancy Reagan would be in
Rome from June 3 to 6 as the guests of President Francesco
Cossiga and would have an audience with Pope John Paul II on
June 6. After the June 8-10 summit, Reagan will travel to West
Berlin on June 12 to participate in the city's 750th
anniversary and will meet West German Chancellor Helmut Kohl in
Bonn before returning home the same day.
Reuter
|
VIACOM <VIA> MERGER EXPECTED IN 60 TO 90 DAYS | Sumner Redstone, president of National
Amusements, Inc, predicted he can win regulatory approvals to
wrap up the 3.4 billion dlr acquisition of Viacom International
Inc in 60 to 90 days.
Redstone, 63, catapulted himself into the big leagues of
entertainment early today when a group of Viacom managers and
their financial backers decided not to top National's bid.
"We've had counsel working for some time in every region
where Viacom has cable televison systems" Redstone told Reuters
in a telephone interview.
Redstone also said "Viacom is committed to working very
closely with us to obtain approvals." Viacom has been seeking
approvals for transfer of its broadcast licenses and cable
systems since September when its management group first
advanced a buyout plan.
But Redstone turned the situation into a spirited bidding
contest which was capped by the announcement this morning that
Viacom's independent directors on behalf of Viacom entered into
a defintive merger agreement with National.
National is a family business which operates a chain of
movie theaters. It is dwarfed by Viacom.
Redstone said he was weary after talks dragged on through
the night but also excited at the prospect of running a leading
electronic media company. He noted that the number of motion
picture admissions in the U.S. has shown no growth in 15 years.
Of nine satellite television channels operated by Viacom,
four are motion-picture oriented pay channels. Redstone said
exclusive contracts with pay television networks are the
emerging trend. "Up until recently you could see any motion
picture on any pay channel," Redstone said.
He noted Viacom has exclusive agreements with two studios
and plans to sign a deal with a third company next month.
Redstone said the management group's investment bankers
will be paid what is due for termination of its merger
agreement. Such fees could total about 30 mln dlrs. "That will
be a company expense," Redstone said.
He said BankAmerica <BAC> Corp has had numerous inquiries
from lenders who want to participate in a 2.25 billion dlr
financing for the deal. BankAmerica will provide 592 mln dlrs.
After the merger, Viacom will be a subsidiary of National
but 17 pct of the company will be in public hands.
Reuter
|
BRITISH AIDE CRITICIZES U.S.PROTECTIONISM | A senior British official said that
protectionist bills being considered by Congress could trigger
retaliation by the European Community (EEC) and threaten the
global trading system.
Paul Channon, secretary for trade and industry, said if
Congress passed legislation to curb textile imports, which
would hit EC shipments as well as shipments from major Asian
textile producers, "the community would have to retaliate."
His comments echoed those made yesterday by Belgian Trade
Minister Herman De Croo, who said if the bill passed, the
community would retaliate by imposing taxes on U.S. exports.
Channon made his remarks at a news conference after two
days of talks with Reagan Administration officials and members
of Congress.
De Croo was also in Washington for trade talks.
Channon said there was a greater protectionism sentiment in
Congress since his visit here last year as Congress and the
Administration tried to find ways to reduce the U.S. trade
deficit, which last year hit a record 169.8 billion dlrs.
Channon also called for greater EC-U.S. cooperation to
force Japan to open its markets to foreign goods.
Channon said Japan's trade surplus is causing everyone
problems - its surplus with the United States last year was
51.5 billion dlrs and with EC nations, 16.7 billion dlrs.
"The more united pressure there could be, the better," he
said.
Channon also called for increased U.S.-EC cooperation to
avoid trade disputes.
He said the two sides narrowly avoided a confrontation
earlier this year over lost grains sales when Spain and
Portugal joined the community and its liberal imports
regulations were tightened to conform to EC standards.
"But if both sides drew back from the brink that time," he
said, ""it does not mean that they would do so on another
occasion."
Channon added that "There is increasing reesentment in
Europe over the U.S. tactic of negotiating under the pressure
of unilaterally imposed deadlines."
He said other potential conflicts are already in sight -
alleged European government subsidies of Airbus aircraft and
taxes on fats and oils - and "the commuity and the United States
must therefore learn to manage their relations better."
He said another bill to let the United States retaliate
against a nation if that nation's market was not open to U.S.
goods would bypass the trade pact GATT (General Agreeeement on
Tariffs and Trade) as an arbiter of trade practices.
He said foreign trade law should be judged by GATT and not
by the United States, adding "if the (trade) law is to be
interpreted by the United States and not by the GATT, what is
to happen to the rest of us?"
reuter
|
OMNIBUS COMPUTER LOAN NOT CALLED | <Omnibus Computer Graphics Inc>, which
earlier said it is in default of certain provisions of its line
of credit, said its Canadian banker has indicated a willingness
to work with the company and has not called Omnibus' loan.
Omnibus earlier said negotiations are underway to provide
additional financing.
Reuter
|
YEUTTER SEEKS STRONGER TAIWAN, S.KOREA CURRENCIES | U.S. Trade Representative Clayton
Yeutter said he hoped the U.S. dollar would continue to decline
in relation to the currencies of Taiwan and South Korea as a
way to improve the U.S. trade picture.
Testifying before the House Appropriations subcommittee
which must approve his agency's 1988 budget, he said, "In my
judgment economic factors justify a continued decline."
Asked by a committee member if he expected a further
decline, and how much, Yeutter said the Taiwan and South Korean
currencies should be adjusted to reflect "positive factors" in
their economies.
Reuter
|
YUGO FEBRUARY CAR SALES BREAK RECORD | <Yugo America Inc>, a
unit of <Yugo NV>, said it sold 5,059 cars in February, the
first month in which sales topped 5,000.
Yugo said the February's sales were 21.2 pct higher than
sales in January and 191.4 pct above the 1,736 cars sold in the
same month last year.
Yugo said it has sold a total of 9,233 cars so far in 1987.
Reuter
|
SENATE PANEL APPROVES EXTENDING DAIRY COMMISSION | The Senate Agriculture Committee
approved a bill that would extend for one year the life of the
National Commission on Dairy Policy.
The dairy commission, mandated by the 1985 farm bill, is
set to expire at the end of the month. The bill would extend
the date by which the commission must submit its report on
dairy policy to March 31, 1988.
Congress charged the commission with examining the federal
price support program for milk and alternatives to the program.
Reuter
|
NL INDUSTRIES INC <NL> SET REGULAR PAYOUT | Qtly div five cts vs five cts prior
Pay March 31
Record March 16
Reuter
|
CHINA SUGAR OUTPUT SEEN LOWER -- USDA | China's 1986/87 sugar crop has been
revised to 5.26 mln tonnes (raw value), down four pct from the
previous forecast and five pct below the previous season, the
U.S. Agriculture Department said.
In its World Production and Trade Report, the department
attributed the decline to relatively poor profitability of
sugar, causing harvested area of cane and beets to decline
seven pct from 1985/86.
Beet sugar production for 1986/87 is now estimated at
837,000 tonnes, five pct less than earlier forecast and down
five pct from the previous season, while cane output is
projected at 4.423 mln tonnes, down four pct from previously
forecast and five pct below the previous season, it said.
Reuter
|
GENERAL HOST <GH> SEES YEAR LOSS | General Host Corp said it will
report a loss from continuing operations and a sharp decline in
net income for the year ended January 25, 1987, due to
substantial operating losses in its Frank's Nursery and Crafts
unit. For the year ended January 25, 1986, General reported net
income of 29.7 mln dlrs.
The company said it discovered problems in its unit's
computerized accounts payable system. It said results of its
other nursery and craft unit, Flower Time Inc, are not
affected. It said its accountants are investigating the
problem, which will delay release of its full-year results.
Reuter
|
UAW, AMC <AMO> SET NEW LABOR TALKS | The United Auto Workers and American
Motors Corp agreed to resume talks on a new labor contract for
the company's threatened Kenosha, Wisc. assembly plant despite
a breakdown in talks last weekend, UAW vice-president Marc
Stepp said.
Stepp told reporters that issues which caused the talks to
break off are being discussed between the two sides and that a
main table bargaining session has been scheduled Friday in
Milwaukee.
France's Regie Nationale des Usines Renault has a
controlling stake in American Motors.
Stepp said the union intends "to exert full efforts" to
reach an agreement that would keep the plant in operation past
1989, when AMC has said production will end unless the UAW
grants concessions on labor costs.
The UAW leader said the company and the union agreed in
principle in 1985 to pattern a future contract covering some
6,000 Kenosha workers after lower-cost UAW contracts covering
Mazda Motor Corp's new U.S. plant in Michigan and the New
United Motor plant in California operated by Toyota.
Stepp said there is such deep hostility between the company
and union locals in Milwaukee and Kenosha that communication
between them is very difficult.
But he said it is possible to reach agreement on a new
contract to save the jobs of UAW members at AMC's Wisconsin
operations despite the impasse.
AMC has said it will resume talks, but only for 24 hours to
ascertain whether the union was willing to agree to the
concessions it wants.
The Kenosha plant builds AMC's Renault cars and a line of
Chrysler Corp <C> vehicles under a contract assembly deal.
Reuter
|
VICTORY MARKETS INC FILES TO OFFER DEBENTURES | <Victory Markets Inc> said it
filed a registration statement with the Securities and Exchange
Commission relating to the proposed public offering of 60 mln
dlrs principal amounbt of subordinated debentures due 1999.
Proceeds will be used to repay outstanding indebtedness of
the company and to repay a portion of outstanding loans.
Victory Markets Inc owns and operates a chain of 88 retail
supermarkets and conducts a wholesale grocery business in
central and northern New York State.
Reuter
|
SYNTEX <SYN> SETS RAPID STREP THROAT TEST | Syntex Corp said its
diagnostics subsidiary has introduced a rapid, antibody-based
test to diagnose strep throat infections, called AccuPoint (T)
Group H Strep Test.
A Syntex spokesman said the test has received Food and Drug
Administration approval and is now available nationwide for use
in hospitals, doctors offices and laboratories.
The company said it is the first of ten diagnostic tests
being developed for Syntex by Murex Corp. Others include
detection of pregnancy, ovulation and sexually transmitted
diseases.
Reuter
|
MEDTRONIC INC <MDT> SETS PAYOUT | Qtly dividend 22 cts vs 22 cts
Pay April 30
Record April 10
Reuter
|
CAROLINA POWER <CPL> TO REDEEM PREFERRED STOCK | Carolina Power and Light Co said
it will redeem on April 22 all two mln shares of its 2.675 dlr
preferred stock, series A.
The company said it will pay 25.75 dlrs a share plus
accrued dividends of 15.6 cts.
The redemption, Carolina Power said, will substantially
reduce its operating costs.
Reuter
|
CENTRAL BANCSHARES <CBSS> UNIT UNVEILS SYSTEM | Central Bancshares of the South's
Central Bank of the South said it unveiled a realtime trading
floor providing the staff with instant access to U.S. financial
markets.
The company said the system, the first in Alabama, is in
its investment banking division. The company said the staff
receives immediate notification of prices changes, market data
and a summary of securities or bonds in inventory.
The trading floor consists of workstations intergrating
personal computer and mainframe capabilities, telephone and
intercom systems, and multiple information services.
The trading room format was created by Rich Inc, a
subsidiary of Reuters Inc <REUT>.
Reuter
|
QUANTUM <QTMCU> RECEIVES PATENT NOTIFICATION | Quantum Diagnostics Ltd said it
received notification from the U.S. patent office that a patent
would be issued on its analog image processor as of March
three.
Reuter
|
LOUISVILLE GAS AND ELECTRIC CO <LOU> DIVIDEND | Qtly dividend 65 cts vs 65 cts
Pay April 15
Record March 31
Reuter
|
DOME<DMP> DEBT PLAN LIKELY CIRCULATED NEXT WEEK | Dome Petroleum Ltd's plan to reschedule
debt of more than 6.1 billion Canadian dlrs will likely be
detailed to a group of 56 major creditors on Monday or Tuesday
next week, a company spokesman said.
Circulation of the complex plan to reschedule the company's
debt was delayed to incorporate late changes resulting from
discussions with Dome's lenders, spokesman David Annesley told
Reuters in response to an inquiry.
Annesley said Dome expects its debt will total between 6.3
billion and 6.5 billion dlrs by June 30, 1987, when it hopes to
implement the debt plan now under negotiation.
Annesley said Dome Petroleum would issue a statement
outlining the company's debt rescheduling proposal following
release of the plan to lenders.
Dome Petroleum previously said it hoped to submit the debt
plan by mid-February in order to win agreement in principle
from creditors prior to June 30.
The group of major lenders have agreed to defer a
substantial amount of debt payments until June 30 under an
interim agreement that links payments to secured lenders with
cash flow generated by assets backing the loans.
Annesley also said there was no change in the status of
legal actions initiated by six Swiss noteholders who are
seeking interest and principal payment on their unsecured debt.
Together, the noteholders are owed about 520,000 Swiss
francs, and their legal action places a total of 300 mln Swiss
franc denominated debt in default.
Annesley said the company's next scheduled appearance in a
Swiss court to defend against the actions is set for March 16.
Dome Petroleum's 1986 fourth quarter and year earnings will
likely be reported at the end of March, he also said.
Reuter
|
GEORGIA GULF <GGLF> FILES FOR SHARE OFFER | Georgia Gulf Corp said it filed with the
Securities and Exchange Commission for a secondary offering of
4.8 mln shares of common stock, which will be sold by General
Electric Co's <GE> General Electric Credit Corp unit and
Georgia-Pacific Corp <GP>.
The company said four mln of the shares will be sold in the
United States and 800,000 shares will be offered abroad.
Goldman, Sachs and Co is the sole manager of the
underwriting syndicate for the offering, it added.
Reuter
|
<OKUMA MACHINERY WORKS> BUILDS PLANT IN U.S | State Commerce Secretary Claude
Pope said Japan's Okuma Machinery Works LTD will build a
multi-million dollar manufacturing machinery plant here.
He said the plant will be the company's first in the U.S.
and will employ approximately 150 people.
He said start-up date is set for late this year.
Reuter
|
PAN AM WORLD AIRWAYS TO CUT MANAGEMENT COSTS BY ABOUT 180 MLN DLRS ANNUALLY
| |
POLLARD SENTENCED TO LIFE IN PRISON IN SPY CASE | Confessed spy Jonathan Pollard was
sentenced today to life in prison for passing thousands of
pages of top-secret U.S. military documents to Israel.
Pollard, a former Navy intelligence analyst, was sentenced
for his role in what prosecutors described as one of the most
serious breaches of security in U.S. history.
Pollard, a 32-year-old American Jew, claimed he was acting
out of concern for Israel's safety and the belief that U.S.
officials were withholding intelligence from Israel.
Reuter
|
DINGELL URGES SEC TO SEEK MORE DISCLOSURE | House Energy and Commerce committee
chairman John Dingell, D-Mich, said the Securities and Exchange
Commission should step up its enforcement of regulations which
require companies to disclose corporate fraud and waste.
Dingell made the comment at the start of a hearing on
alleged overcharges by TRW Inc on its defense contracts.
He said the SEC seemed to have stopped demanding such
disclosures, which are required by securities laws.
"In the wake of the foreign bribery cases in the 1970s, the
SEC instituted a vigorous program of self-policing, using
external auditors, investigators, and counsel. It should do so
again," Dingell said.
Reuter
|
CENTRAL BANCSHARES <CBSS> UNIT UNVEILS SYSTEM | Central Bancshares of the South's
Central Bank of the South said it unveiled a realtime trading
floor providing the staff with instant access to U.S. financial
markets.
The company said the system, the first in Alabama, is in
its investment banking division. The company said the staff
receives immediate notification of prices changes, market data
and a summary of securities or bonds in inventory.
The trading floor consists of workstations intergrating
personal computer and mainframe capabilities, telephone and
intercom systems, and multiple information services.
The trading room format was created by Rich Inc, a
subsidiary of Reuters Holdings Plc <RTRSY>.
Reuter
|
KAISER ALUMINUM <KLU> RAISES PRODUCT PRICES | Kaiser Aluminum and Chemical
Corp said it is increasing prices for a broad range of common
alloy coil, flat sheet and plate products.
The company said prices to distributors and direct
customers on shipments of new orders placed March 4 and after
will be increased by four to eight cts per lb.
Kaiser said the increases are due to increased demand and
the need to set prices relative to the cost of primary
aluminum.
Reuter
|
HUNTERDON <HUNT> SETS DENTAL VENTURE | Hunterdon Pharmaceuticals Inc
said it formed a joint venture with <Chesapeake Biological
Laboratories> and <E.B. Michaels Research Associates> to
develop C31G, a substance that may be useful in the treatment
or prevention of plaque.
The substance, tested in pre-clinical trials at the
University of Pennsylvania, also has other uses as an
anti-fungal or anti-bacterial agent, the company said.
It said Chesapeake Biological, a private company, owns 55
pct of the venture, E.B. Michaels 10 pct, while it holds the
remaining interest, and the patent for C31G.
Reuter
|
U.S./USSR TRADE IMBALANCE CITED AS PROBLEM | U.S. purchases of Soviet products must
increase before the Soviet Union will buy more U.S. goods, a
Soviet trade official told Reuters.
"American exports (to the Soviet Union) depend on Soviet
exports to the United States," said Albert Melknikov, deputy
trade representative of the Soviet Union to the United States.
"One should not forget that it is impossible only to buy
from the United States. We must be able to sell our products to
the United States as well," he said in an interview.
The Soviet trade deficit with the United States totalled
around two billion dlrs in 1985, Melnikov said.
Reuter
|
ROBERTSON UPS CAPITAL WIRE<CWCC> STAKE TO 12 PCT | New York investor Julian Robertson
and several investment partnerships he controls said they
raised their stake in Capital Wire and Cable Corp to 481,800
shares, or 12.2 pct of the total, from 430,200, or 10.9 pct.
In a filing with the Securities and Exchange Commission
Robertson and his Tiger, Jaguar, Puma and Tiger Management Co
entities said they bought 51,600 Capital Wire common shares
between Feb 3 and 17 at 13.25 dlrs a share.
Robertson said his group has spent a total of 5.9 mln dlrs
on its investment in the company so far.
Reuter
|
TWA <TWA> TANGLES PIEDMONT <PIE> SITUATION | Trans World Airlines Inc complicated
the bidding for Piedmont Aviation Inc by offering either to buy
Piedmont suitor USAir Group or, alternatively, to merge with
Piedmont and USAir.
Piedmont's board was meeting today, and Wall Street
speculated the board was discussing opposing bids from Norfolk
Southern Corp and USAir. The TWA offer was announced shortly
after the Piedmont board meeting was scheduled to begin.
TWA offered to buy USAir for 52 dlrs cash per share. It
also said it was the largest shareholder of USAir and
threatened to go directly to USAir shareholders with an offer
for 51 pct of the stock at a lower price.
TWA also said it believed its offer was a better deal for
USAir shareholders than an acquisition of Piedmont, but it said
it alternatively would discuss a three-way combination of the
airlines.
Market sources and analysts speculated that TWA chairman
Carl Icahn made the offer in order to put his own airline into
the takeover arena.
"We're just wondering if he's not just trying to get TWA
into play. There's speculation on the street he just wants to
move onto somthing else," said one arbitrager. "We think TWA
might just be putting up a trial balloon."
Analysts said the offer must be taken seriously by USAir,
but that the airline will probably reject it because the price
is relatively low compared to other airline deals.
They also said Icahn must prove his offer credible by
revealing financing arrangements. "They need to show their
commitment and their ability to finance. I think it's a
credible offer," said Timothy Pettee, a Bear Stearns analyst.
"I think it's certainly on the low end of relative values
of airline deals," said Pettee. Pettee estimated 58 dlrs would
be in a more reasonable range based on other airline mergers.
USAir stock soared after TWA made public its offer. A
spokesman for USAir declined comment, and said USAir had not
changed its offer for Piedmont. USAir offered of buy 50 pct of
that airline's stock for 71 dlrs cash per share and the balance
for 73 dlrs per share in USAir stock.
USAir closed up 5-3/8 at 49-1/8 on volume of 1.9 mln
shares.
Piedmont, which slipped 1/2 to close at 69-5/8, also
remained silent on the TWA action. Piedmont has an outstanding
65 dlr cash per share offer from Norfolk Southern Corp.
Norfolk Southern declined comment, but said it stuck with
its offer for Piedmont. Norfolk owns about 20 pct of Piedmont
and opened the bidding when it said it would propose a takeover
of Piedmont.
Some analysts said Icahn may be trying to acquire USAir to
make his own airline a more attractive takeover target.
"Icahn I think had wanted to sell his airline and there
were no takers. I think the strategy might have called for
making his investment more attractive. One way to accomplish
that specific objective is to go out and acquire other
airlines," said Andrew Kim of Eberstadt Fleming.
"I don't know whose going to buy them, but at least this
way it becomes a much more viable package," said Kim.
But Icahn's financing ability for such a transaction
remains in doubt, in part because of TWA's heavy debt load.
Wall street sources said TWA has some cash with which to do
the offer.
The sources said Icahn has not lined up outside financial
advisers and plans to make his own arrangements.
Icahn earlier this year abandoned plans to buy USX Corp <X>
and still retains 11 pct of that company's stock.
Some Wall street sources said the financier's USX plan was
impacted by the cloud hanging over his adviser, Drexel Burnham
Lambert Inc, because of Wall Street's insider trading scandal.
Industry sources also predicted USAir might reject the TWA
offer on price and financing concerns. "It's littered with
contingencies and it doesn't even have a financing
arrangement," said one executive at another major airline.
But the executive conceded a merged TWA-USAir would be a
strong contender with USAir's east coast route system and
planned west coast presence from PSA. USAir could feed the
intenrational flights of TWA, which has a midwest presence in
its St. Louis hub. Adding Piedmont, dominant in the southeast,
to the mix would develop an even stronger force.
The combined entity would also have TWA's pars reservation
system.
Such a merger would be complex and analysts said it would
result in an airline iwth an 18 pct market share.
Reuter
|
FOREST OIL CORP <FOIL> 4TH QTR | Shr loss 29 cts vs profit eight cts
Net loss 2.0 mln vs profit 568,000
year
Shr loss 1.37 dlrs vs profit 88 cts
Net loss 9.3 mln vs profit 6.0 mln
Reuter
|
USDA TRANSMITS FARM PROPOSALS TO CONGRESS | The Reagan administration officially
submitted to Congress its proposals to cut back U.S. farmers'
income deficiency payments, decouple planting decisions from
income support levels and accelerate reductions in loan rates,
Senate staff said.
The recommendations, first outlined last January in
President Reagan's fiscal 1988 budget blueprint, were
transmitted to both houses of Congress as legislative
proposals.
It was not clear which lawmakers might introduce the
measures.
The most controversial proposal in the package would make
10 pct annual reductions in target prices for major
commodities. A number of legislators have predicted the target
price proposal will not move in Congress.
The package also would offer the so-called 0/92 option to
producers of 1987-90 crops and raise the annual permissible
reduction in loan rates to 10 pct from 5 pct.
Under 0/92, a producer is guaranteed at least 92 pct of his
deficiency payment regardless of how much he plants.
Reuter
|
YEUTTER PLANS TRADE TRIP TO CHINA THIS SUMMER | U.S. Trade Representative Clayton
Yeutter said he plans a July trip to China to discuss trade
issues including China's admission to the General Agreements on
Tariffs and Trade.
Yeutter told a congressional hearing it was possible China
could be a member of GATT before the end of the year.
"They are making major moves to becoming a full scale member
of the world economy," he told the House Appropriations
subcommittee which oversees his agency's budget.
Depending on how the negotiations go on the terms of
China's GATT membership, Yeutter said he could put the final
touches on the U.S. part of the agreement during his trip.
The admission of China to GATT, which is the multinational
group of nations which negotiates international rules on trade,
would offer both potential export markets and potential
competition for U.S. industries, he said.
"That has a lot of potential as well as risks for U.S.
business," Yeutter said.
"I think China will develop into a fine market for us," he
added.
Reuter
|
PAN AM <PN> TO CUT AIRLINE MANAGEMENT COSTS | Pan Am Corp said its Pan American World
Airways unit will reduce management costs by 20 pct, or about
80 mln dlrs, through job cuts, salary freezes and other
measures.
Pan Am also said it has asked its labor unions to help
lower costs by an additional 180 mln dlrs.
The airline said it will eliminate 464 managment positions
and freeze all management salaries, a move that will save 30
mln dlrs a year.
An additional 50 mln dlrs of expenses under management's
control will also be cut, it said without offering details.
Pan Am said it is seeking a 20 pct pay cut from its unions.
Pan Am vice chairman Martin R. Shugrue said in a statement,
"Management is leading the way, but with 40 pct of our
operating expenses represented by labor costs, we must have the
cooperation of our labor unions if we are to make additional
improvements to our 1987 operating plan."
Shugrue asked Pan Am's unions to begin negotiations on the
pay cuts immediately.
Reuter
|
ALLIS-CHALMERS PROPOSES RESTRUCTURING, TO CONVERT SOME DEBT TO COMMON
| |
RIO COFFEE TRADE PREFERS NO PACT TO QUOTA CUT | The failure of talks to introduce
new coffee export quotas within the International Coffee
Agreement, ICA, was preferable to the alternative of Brazil
having a sharply reduced quota, as had been proposed, President
of the Rio de Janeiro Coffee Trade Association Carlos Calmon
said.
He told Reuters proposals to reduce Brazil's quota to 25
pct of the world share from 30 pct at present were unacceptable
as the country has large stocks and a good harvest is expected.
"Brazil has the capacity to export 20 mln bags this year,"
Calmon added.
Calmon said, assuming a 58 mln bag global ICA quota,
Brazil's share under the proposals would have been 14.5 mln
bags, of which soluble would have accounted for 2.0 mln,
leaving just 12.5 mln bags of green coffee for export.
"It's a pity the talks broke down, but for Brazil this was
better than such a quota reduction," he added.
In 1985 Brazil exported 19.6 mln bags of soluble and green
coffee, including about two mln bags to non-members. A severe
drought and marketing problems cut exports last year to under
10 mln bags.
Calmon estimated stocks as of January 1 at 18 mln bags, of
which 5.0 mln have already been sold for export. The harvest
this year should be around 30 mln bags, he added.
The latest Brazilian Coffee Institute estimate for last
year's harvest is 11.2 mln bags, although many traders believe
it was higher than this.
Reuter
|
ISRAEL TENDERS TONIGHT FOR CORN AND/OR SORGHUM | Israel will tender overnight for
33,000 long tons of U.S. sorghum and/or 22,000 long tons of
U.S. corn for April shipment, private export sources said.
Reuter
|
HALLMARK STORES SELLS SECURED BONDS | Hallmark Stores Inc is raising 137.13
mln dlrs through a three-tranche offering of secured bonds,
said lead underwriter Salomon Brothers Inc.
A 31.63 mln dlr issue of bonds due 2001 was given an 8-1/4
pct coupon and priced at par to yield 112 basis points over
comparable Treasury securities and a 40 mln dlr offering of
bonds due 2006 was given an 8-3/4 pct coupon and par pricing to
yield 115 basis points over Treasuries.
The final tranche totals 65.49 mln dlrs of bonds due 2011.
The securities were assigned an 8-7/8 pct coupon and par
pricing to yield 131 basis points over Treasuries.
The entire Hallmark offering is non-refundable for 10
years. The three tranches have average lives of 12.1, 17.8 and
22.7 years respectively, Salomon Brothers said.
Moody's Investors Service Inc rates the securities Aa-3 and
Standard and Poor's Corp rates them AA.
Reuter
|
U.S. CABINET COUNCIL SET TO MULL FARM ISSUES | The Reagan administration's
cabinet-level Economic Policy Council is scheduled to meet
Friday to discuss, among other issues, the status of
agricultural legislation, administration officials said.
The officials said discussion of a U.S. Agriculture
Department wheat export subsidy to the Soviet Union was not on
the agenda. Matters not on the agenda, however, can be brought
before the council, the officials said.
Grain trade officials have speculated that USDA would make
a wheat export enhancement offer to Moscow, but USDA officials
have said the matter is not under active consideration.
USDA today transmitted to Congress a package of legislative
proposals, including bills that would cut target prices and
speed up loan rate reductions.
Reuter
|
UNICORP AMERICAN CORP <UAC> 4TH QTR NET | Shr 13 cts vs 70 cts
Net 1,538,000 vs 8,614,000
Revs 16.4 mln vs 19.6 mln
12 mths
Shr 89 cts vs 2.43 dlrs
Net 10.3 mln vs 29.8 mln
Revs 56.2 mln vs 83.8 mln
Note: 1986 net is before preferred dividend payments and
includes after-tax gain from sale of real estate properties of
12.9 mln dlrs.
Reuter
|
BANNER <BNR> COMPLETES REXNORD SHARE PURCHASE | Banner Industries Inc said it completed
the previously announced purchase of Rexnord Inc <REX>. It said
it owns 96 pct of Rexnord's outstanding following the purchase
of all Rexnord's common validly tendered pursuant to its 26.25
dlr per share cash tender offer ended February 27.
Banner also said it received 310 mln dlrs pursuant to a
credit agreement with <Citicorp Industrial Credit Inc> and the
<Bank of Nova Scotia> and 260 mln dlrs from an offering made
through Drexel Burnham Lambert Inc.
The merger of Rexnord with a subsidiary of Banner will be
copmleted before mid-May, the company said.
Reuter
|
U.S. REAFFIRMS OPPOSITION TO EC OILS TAX PLAN | A meeting among government agencies
today reaffirmed the strong opposition of the United States to
a proposed new tax on vegetable oils and fats in the European
Community, U.S. trade officials said.
Representatives of the major government agencies agreed at
a trade policy review group meeting, which includes officials
of the deputy secretary rank, to continue diplomatic pressure
on EC member states.
"We (all agencies) are together on this," said one U.S.
trade official.
One source said the U.S. would continue to make clear to
member states and to the EC commission that if Brussels
proceeds with the vegetable oils tax "there will be a great
cost."
U.S. officials said no formal list of European products on
which the U.S. might retaliate, has yet been drawn up.
"I don't think we're at that point yet," said one trade
official, adding that the EC has only begun deliberations on
its farm price package.
Suzanne Early, assistant trade representative, told Reuters
the interagency meeting was to discuss U.S. strategy on the
vegetable oils issue. Asked about retaliation, she said
"sometimes its better not to be specific."
U.S. trade representative Clayton Yeutter Monday warned
another major transatlantic trade row will develop if the EC
proceeds with the vegetable oils tax.
Reuter
|
<CCL INDUSTRIES INC> 4TH QTR NET | Shr 15 cts vs 18 cts
Net 4,500,000 vs 5,300,000
Revs 156.7 mln vs 152.0 mln
YEAR
Shr 72 cts vs 1.11 dlrs
Net 21.7 mln vs 33.0 mln
Revs 695.4 mln vs 653.5 mln
Note: Shr profit relates to class B non-voting shares.
Reuter
|
IOWA BANK BECOMES 34TH TO FAIL THIS YEAR | The deposits of the failed First
State Bank of Rockford, Iowa, were assumed by First Security
Bank and Trust Co of Charles City, Iowa, the Federal Deposit
Insurance Corp (FDIC) said.
The FDIC said it acted after First State, with 15.1 mln
dlrs in assets, was closed today by Iowa Banking Superintendent
William Bernau. It was the 34th U.S. bank to fail this year,
and the 12th agricultural bank.
To facilitate the transaction, the FDIC said it would pay
the assuming bank 4.1 mln dlrs and retain assets of the failed
bank valued at 4.8 mln dlrs.
Reuter
|
EIA SAYS DISTILLATE STOCKS OFF 3.4 MLN BBLS, GASOLINE OFF 100,000, CRUDE UP 3.2 MLN
| |
CHRONAR <CRNR> CLOSES 20 MLN DLR PLACEMENT | Chronar Corp said it received a
total of 20 mln dlrs through the completion of a private
placement of its stock, long-term debt and associated warrants
with the Sheet Metal Workers' National Pension Fund and an
affiliate of <Harbert Corp>.
It also said the fund and Harbert Solar Inc, the affiliate,
now own about 16 pct of Chronar's common.
Chronar also said it expects to report a loss for the year
of about 4.5 mln dlrs on sales of about 12 mln dlrs compared
with a loss of 513,153 dlrs on revenues of 10 mln dlrs in 1985.
Reuter
|
(G.T.C. TRANSCONTINENTAL GROUP LTD) 1ST QTR NET | Shr 11 cts vs nine cts
Net 2.1 mln vs 1.6 mln
Revs 60.8 mln vs 32.9 mln
Avg shrs 19.7 mln vs 17.2 mln
Note: period ended January 31.
REUTER
Reuter
|
U.S. CAR SALES UP 6.7 PCT IN LATE FEBRUARY | Sales of new cars by the U.S. auto
industry rose 6.7 pct in late February from the weak levels of
a year ago, but industry giant General Motors Corp <GM> was an
exception with an eight pct drop.
The figures represented a slight recovery for the industry
from weak mid-February sales, but the eight domestic-based car
manufacturers still saw sales fall 9.1 pct for the full month
from last year.
GM, whose sales have been weakening for several months,
took only 48.1 pct of domestic car sales in the February 21-28
period compared with 55.7 pct a year ago, when sales for the
entire industry were depressed from the ending of major
marketing incentive campaigns.
At the same time, rival Ford Motor Co <F> said its car
sales in the period rose 29.3 pct and Chrysler Corp <C> was up
11.3 pct.
The industry leader's slide was even more marked for the
full month as GM took only 37 pct of all car sales in February,
including imports, compared with 43.5 pct a year ago.
Industry analysts said the 198,818 domestic-make cars sold
in the seven selling days of late February represented a
seasonally adjusted annualized rate of 7.0 mln units while the
556,953 sold in the month were at a 7.4 mln annual rate.
Last year, the industry sold a record 11.44 mln new cars,
including 8.2 mln domestic makes. But consumers have taken a
breather since then and car sales sales have been weaker in
1987 due to tax-induced heavy buying in December, a lack of
widespread sales incentives and intermitent bad weather,
analysts said.
GM sales vice-president C.N. "Bud" Moore said in a
statement that his company's sales "began their recovery from
the low point reached in January, and we expect the improvement
to continue in coming months."
Anne Knight, automotive analyst for Paine Webber and Co,
told Reuters that GM's sales were weak, but added: "I think
sales will get better in the spring."
"GM may make more production cuts in view of the weak
sales, but this may be a strike year so they might try to build
inventories," she said.
In a further effort to revive sales, GM said its
Oldsmobile, Pontiac and Buick divisions would offer many of
their new car lines through April 30 with discount loan
packages at rates ranging from 3.9 pct for 24-month contracts
to 9.9 pct for 60-month deals as an alternative to cash
rebates.
Among the smaller U.S.-based manufacturers, Japanese-owned
American Honda <HMC> said its late February car sales rose 96.2
pct from last year while Japanese-owned Nissan <NSANY> was up
35.9 pct.
German-owned Volkswagen of America fell 42.5 pct, American
Motors Corp <AMO> plunged 62.5 pct and Japan's Toyota <TOYOY>
sold 1,082 domestic makes compared with none a year ago before
it started domestic production.
Detroit's late February truck sales were generally positive
with GM up 10.9 pct, Ford up 48 pct, Chrysler gaining 46 pct
and AMC's jeep sales off 4.0 pct.
Imported cars sales, released monthly, were estimated at
219,300 in February, a 0.4 pct rise from last year and 28.3 pct
of the overall car market. That was lower than January's 31.4
pct share but above the 26.3 pct share a year ago.
Reuter
|
PIEDMONT AVIATION RECESSES MEETING WITHOUT TAKING ACTION ON MERGER PROPOSALS
| |
EIA SAYS DISTILLATE, GAS STOCKS OFF IN WEEK | Distillate fuel stocks held in
primary storage fell by 3.4 mln barrels in the week ended Feb
27 to 128.4 mln barrels, the Energy Information Administration
(EIA) said.
In its weekly petroleum status report, the Department of
Energy agency said gasoline stocks were off 100,000 barrels in
the week to 251.5 mln barrels and refinery crude oil stocks
were up 3.2 mln barrels to 333.0 mln.
The EIA said residual fuel stocks fell 2.2 mln barrels to
37.9 mln barrels and crude oil stocks in the Strategic
Petroleum Reserve (SPR) were up 700,000 barrels to 516.5 mln.
The total of all crude, refined product and SPR stocks were
unchanged at 1,575.1 mln barrels, it said.
Reuter
|
KEMP URGES REAGAN TO OPPOSE STOCK TAX | Rep. Jack Kemp, a New York
Republican, urged President Reagan to oppose any legislation to
impose a tax on stock transactions.
In a statement Kemp called the tax "a money grab to permit
Democrats to begin another government spending spree."
"I call upon President Reagan to signal immediately that he
will veto any tax increase on stock transfers," Kemp said. He
added that the tax would punish the 50 million stockholders.
House Speaker James Wright, a Texas Democrat, has asked
congressional tax analysts to look at a 0.25 to 0.5 pct tax on
stock trades along with other tax proposals to help reduce the
federal budget deficit.
Reuter
|
CANADA CENTRAL BANK HEAD SEES MODERATE GROWTH | Bank of Canada Governor John Crow said he
expects the Canadian economy will grow moderately in the coming
year, despite the near flat growth in the final quarter of
1986.
"We see moderate growth," Crow told a news conference
following presentation of the central bank's annual report in
the House of Commons today.
He said there were positive signs of growth in the economy,
particularly the drawdown of business inventories in the fourth
quarter. Yesterday, Statistics Canada reported gross domestic
product expanded a slight 0.2 pct in the quarter.
Crow reiterated the bank's previous statements that
inflation remains a major priority in setting monetary policy
and said only zero inflation would be acceptable. Canada's
inflation rate is currently hovering around the four pct mark.
The governor said Canada's banking system remains sound
despite recent concern about exposure by the country's banks in
debt plagued countries such as Brazil.
"It (the debt problem) is not a happy development but I
think it can be overplayed in terms of its impact," Crow told
reporters.
Reuter
|
IMPORT TAX LIFTED ON CAPITAL GOODS | Argentina's Idustry and Foreign
Trade Secretary announced the lifting until December 1989 of
import taxes on capital goods not produced in the country.
Roberto Lavagna in a news conference also said Argentina
would create a special programme for promoting industry and was
studying a system of temporary, automatic and generalised
admission of goods from neighbouring Brazil.
Lavagna said the measures were in line with an adjustment
in economic policy to stall a new upsurge in inflation. The
government last week froze prices and wages and devalued the
Austral six pct against the dollar.
Reuter
|
ALLIS-CHALMERS <AH> PROPOSES RESTRUCTURING | Allis-Chalmers Corp said it asked
lenders and other groups to approve a restructuring plan that
would cause a dilution of the company's existing common stock.
The company said it would sell all of its businesses other
than the American Air Filter business, make a public financing
of more than 100 mln dlrs and pay part of the currently
outstanding debt with the proceeds.
Under the plan, which was presented to institutional
lenders, the company's unions and the Pension Benefit Guaranty
Corp, "substantial amounts" of institutional debt would be
converted to common stock of the restructured company.
Allis-Chalmers said it will exchange existing preferred
stock for common. The exchange of the institutional debt and
preferred stock for common equity will cause a "resulting
dilution of the existing common stock," Allis-Chalmers said in
a statement.
Under the plan, holders of existing common would hold about
15 pct of the restructured common stock. Holders of existing
preferred would hold about 35 pct of the new common.
Allis-Chalmers said its only alternative to the plan is
bankruptcy. The restructuring must be approved by creditors,
common and preferred holders,and present and former employees.
Allis-Chalmers said a bankruptcy filing "appears to
represent the company's only alternative if agreement upon the
terms of the plan cannot be reached."
The spokesman said in response to an inquiry that he was
not aware of any extraordinary charge against earnings that
would result from the restructuring.
"It is too early to talk about a charge" because the plan
must still be approved by the lenders and unions, he said.
Also under the plan, payments to Allis-Chalmers' private
lenders would be deferred. Trade payables and obligations
incurred in the ordinary course of business will be met.
Payment of health benefits for active and retired employees
would be made "at substantially reduced levels."
Allis-Chalmers, once one of the leading farm equipment
companies, sold all of its farm equipment operations to Deutz
of West Germany for 107 mln dlrs, leaving the company with
businesses in lift trucks, air conditioning, fluids handling
and solid materials processing.
Last year, Allis-Chalmers sold the lift truck business to
AC Material Handling Co of Columbus, Ohio.
Under the restructuring plan, Allis-Chalmers will sell its
solid materials processing and fluids handling businesses.
Solid materials processing, which makes equipment to crush
stones for highway construction, accounted for 288 mln dlrs of
Allis-Chalmers's total 1985 revenues of 886 mln dlrs.
The company will also sell its fluids handling operations,
which makes pumps and valves. That business accounted for 196
mln dlrs of the company's 1985 revenues.
Allis-Chalmers in 1986 reported a net loss of 8.6 mln dlrs,
or 1.09 dlrs a share. In 1985, the company lost 168.4 mln dlrs,
or 12.27 dlrs a share.
The company's last profit was in 1980, when it earned 52.4
mln dlrs on sales of 2.1 billion dlrs.
Reuter
|
AMVESTORS FINANCIAL CORP <AVFC> 4TH QTR NET | Oper shr profit 11 cts vs loss 27 cts
Oper net profit 662,625 vs loss 774,002
Revs 43.9 mln vs 18.4 mln
Year
Oper shr profit 37 cts vs loss 37 cts
Oper net profit 1,487,796 vs loss 1,119,626
Revs 150.1 mln vs 51.7 mln
NOTE: 1986 4th qtr and yr oper net excludes 6,134 dlrs and
720,500 dlrs or 20 cts per share, respectively, for realized
investment gains.
1986 qtr and yr oper net also excludes 102,300 dlrs and
257,300 dlrs, respectively, for tax loss carryforwards.
1985 4th qtr and yr oper net excludes realized investment
gains of 449,920 dlrs or 15 cts per share and 897,949 dlrs or
30 cts per share, respectively.
1985 4th qtr oper net also excludes a loss of 42,820 dlrs
for carryforward.
Reuter
|
PIEDMONT <PIE> TAKES NO ACTION | Piedmont Aviation Inc said
its board meeting recessed today without taking action on
proposals to combine Piedmont with other corporations.
Piedmont has received opposing bids from Norfolk Southern
Corp and US Air Corp.
Earlier today, Trans World Airlines Inc offered to either
buy Piedmont suitor US Air or, alternatively, to merge with
Piedmont and U.S. Air.
IN a prepared statement, Piedmont said there would be no
further announcements concerning this situation today.
The company declined to say when the board would meet
again.
Reuter
|
YEUTTER CONCERNED ABOUT U.S. EXPORT PICTURE | U.S. Trade Representative Clayton
Yeutter said he expects imports to fall soon but he was
concerned about the lack of improvement in U.S. exports given
the dollar's decline in the last 18 months.
"I'm convinced we're about to see an improvement on the
import side. I'm more concerned about the export side," he told
a House Appropriations subcommittee.
Part of the blame goes on other countries which have not
generated the economic growth to increase demand for U.S. goods
and part to some U.S. companies which are not generating
competitive exports, he said.
Reuter
|
FORMER TRW<TRW> EMPLOYEE SAYS FIRM WAS UNETHICAL | A former TRW Inc controller told a
Congressional hearing that the company had acted unethically in
its defense contracts with the government.
"It is my contention that the company called TRW is not ever
vigilant and highly ethical as a defense contractor. TRW only
pretends to be an honest citizen when that scheme best fits
their financial interests," Larry Eagleye said in testimony at a
House Oversight subcommittee hearing.
Eagleye was a controller at TRW's compressor components
division in Cleveland.
Subcommittee chairman John Dingell, D-Mich, said he did not
understand why the Defense Department had taken no action
against TRW even though it admitted in the 1984 report that it
had substantially overcharged the government for military
aircraft parts.
"In 1984, TRW officials admitted to the Defense Department
Inspector General that they had evidence of two sets of books
and other problems in one of the company's divisions in
Cleveland and that there had been substantial overcharging of
the federal government on various military aircraft parts,"
Dingell said.
"For example, by falsifying its books and records, TRW
inflated the price of a military engine blade by two to three
times higher than the price of a virtually identical commercial
engine blade," Dingell said in a statement.
Eagleye and two other former employees filed a suit against
TRW last year charging the company with overcharging the
government. The Justice Department later joined the suit.
"While employed by TRW and while under investigation by TRW,
I disclosed to TRW's legal department and higher management,
many flagrant and obvious violations of law, company policy and
ethical conduct. None of this evidence was included in TRW's
(1984) report to the government," he said.
Reuter
|
PENTAGON DELAYS PLAN TO BUY EUROPEAN MISSILE | The U.S. Army has delayed plans to
buy a European anti-aircraft missile to help protect U.S.
ground forces from Soviet attack helicopters, Defense
Department officials said.
The Army has been considering buying some British Rapier
missiles or French and German Roland missiles as a stop-gap
partial replacement this year for the flawed U.S. Sgt. York
Division Air Defense (DIVAD) gun which was canceled in 1985.
Despite recent indications by the service that it intended
to buy the missiles soon, defense officials told Reuters a
final decision had been suspended because some Army officials
favored a more versatile gun-missile combination.
The gun-missile combination would open the competition wide
to U.S. firms.
"The missile option is on hold now and no decision has been
made," said one of the Pentagon official, who asked not to be
identified.
"There is some sentiment to take things more slowly and see
if we can avoid a stop-gap system until we can come up with an
integrated system of our own," said another official.
Army Lt. Col. Craig McNab said, however, that Ronald and
Rapier "are not out of the picture by a long shot."
There has been strong sentiment in the Army to reject a
missile only and to opt for a more versatile combination gun
and missile system mounted on a tracked vehicle.
Such a move would throw the competition wide open to U.S.
firms, including General Electric Co <GE>, Boeing Co <BA>, FMC
Corp <FMC> and Martin Marietta Corp <ML>.
But some Pentagon officials have expressed fears that an
"off-the-shelf" gun-missile combination could not be fielded
quickly enough.
Defense Secretary Caspar Weinberger canceled the Sgt. York
gun, made by Ford Motor Co <F> Aerospace and Communications
Corp, after the Pentagon had already spent 1.8 billion dlrs on
the system and then decided it could not shoot down attack
helicopters at the proper range.
The Army later expanded the division air defense concept,
announcing it would divide the system into five different
components for the 1990s at a cost of more than 10 billion
dlrs, including a missile and gun-system combination on a
tracked vehicle.
Reuter
|
TRW <TRW> RESPONDS TO CHARGES BY EX-EMPLOYEE | TRW Inc, responding to allegations by
an ex-employee that it was unethical in defense contract
dealings, said it had previously informed the government of the
billing problems.
"We heard nothing of substance as far as allegations by
former employees that were not related to findings that we had
reported to the government of misdeeds at our compressor
components group," a TRW spokesman said.
The spokesman said the company conducted an internal
investigation and presented the findings to the government
beginning in late 1984.
Reuter
|
INTERNATIONAL BORROWING REACHES RECORD IN 1986 | Record high borrowing of 376 billion dlrs
in 1986 on international capital markets was supported by a
large volume of debt refinancing and growing integration
between national and international markets, the OECD said.
The Organisation for Economic Cooperation and Development
(OECD) said in its latest Financial Market Trends report the 34
pct rise over 1985 volume was accompanied by major changes in
the relative importance of the instruments used in
international financing.
Straight bond offerings, equity related securities and
euro-commercial paper programmes as a share in total financing
rose to their highest level this decade. The markets for
floating-rate notes and for note issuance facilities declined.
The OECD said another striking feature of international
capital markets in 1986 was the unprecedented concentration of
lending to the OECD group of western industrialised countries,
which accounted for 90 pct of total borrowing.
Factors behind the heightened pace of activity included a
notable decline in interest rates which boosted borrowing
through the flotation of fixed-interest securities.
This in turn was stimulated by growing familiarity with new
techniques such as interest rate and currency swaps.
Stockmarket buoyancy supported the expansion of
equity-related bond issues and favoured the expansion of a
rapidly expanding market for euro-equities.
A slowdown in net demand for funds by sovereign borrowers
was more than offset by a large volume of refinancing
operations induced by improved market conditions and stronger
debt management policies. Growing integration with national
markets meant the arrival of a large number of new players on
international markets.
It added the development of a smoothly-functioning market
for short-term euro-notes made committee and non-underwritten
issuance facilities an increasingly popular alternative to
traditional forms of bank lending.
Turning to 1987, the OECD pointed to indications of a
possible slowdown of international markets' expansion and
possibly less easy borrowing terms in a number of market areas.
It said many market participants saw little scope for a
further decline in long-term rates and anticipate a slowdown in
the pace of fixed-rate activity in the months ahead.
It saw little reason for a turnaround in the decline in
demand of recent years, although it was likely more borrowers
would try to make use of cost-reducing opportunities provided
by the market for euro-commercial paper.
"It remains to be seen however to what extent the ECP market
will be ready to absorb a significant volume of paper from
lower-rated borrowers," the report said, adding that any major
advance in the euro-note market's absorptive capacity would
require a significantly broader investor base.
Reuter
|
NYMEX OUTGOING CHAIRMAN SEES MAJOR CHANGES | Trading in energy futures on the New
York Mercantile Exchange will change dramatically over the next
five to 10 years as the market matures, according to outgoing
chairman Michel Marks.
"Energy futures trading is going through a tremendous
period of transition that will last five to 10 years," Marks
said, adding that volume will soar, international participation
will increase, and activity of producing countries, major oil
companies, and speculators will grow.
Marks steps down as chairman after an nine-year tenure when
board elections are held March 17. He will continue as chairman
of a long-range planning committee at NYMEX.
"The priority of the next 10 years is operational
efficiency versus the last 10 years when it was new product
development," said Marks.
Marks said it is imperative for NYMEX, which is running out
of trading space, to process greater volumes expeditiously in
order to handle the growth in volumes and new contracts that
are already planned.
Marks said crude futures volume could more than double by
the end of the decade to 250,000 contracts daily and combined
products volume could soar to 100,000 contracts a day.
Much of the increased activity will come from the
international sector, according to Marks. "That's a huge growth
area," he said, adding that it will run the gamut from foreign
producer countries to foreign independent operators.
He said it would be difficult to develop a futures
contract based on an internationally traded crude although he
previously said the exchange is exploring that possibility.
"Trying to develop a futures contract in any other crude
besides West Texas Intermediate will be a tough task" he said.
Marks said it is more likely a futures contract based on
an international product rather than an international crude
will be developed since the products market is more diverse. He
said previously the exchange is studying the possibility of
developing a non-U.S. deliverable products contract.
Other sources of growth for U.S. energy futures are the
major oil companies, which already trade on the NYMEX, and
institutional funds such as investment houses, pension funds,
and insurance companies, Marks said.
"The commodities markets have become financial markets and
should pursue a partnership with financial intermediaries,"
Marks said.
He said speculators will increase their share of the energy
futures markets in the coming years from the current share of
about 30 pct. Hedgers, as a result, will lose some of their 70
pct share.
Reuter
|
NBI <NBI> INTRODUCES NEW PRODUCTS | NBI inc said it has reduced prices
of on its 5000 series publishing workstations by 30 pct and has
introduced a new electronic publishing workstation, a
mini-computer and an image scanner at the Corporate Electronic
PUblishing Systems Show.
All of NBI's 5000 Series are included in the new pricing
including the Integrated workstation formerly priced at 14,490
dlrs and the pro publisher formerly priced at 15,490 dlrs.
Reuter
|
PHILIPPINE, ARGENTINE DEBT TALKS CONTINUE | The Philippines and its bank advisory
committee completed a second day of talks on the country's
request to reschedule 9.4 billion dlrs of debts, bankers said.
They declined to disclose details of the negotiations, but
said it would be unrealistic to expect an outcome until next
week at the earliest.
Talks with Argentina over 2.15 billion dlrs of new loans
and a multi-year rescheduling also continued in New York, with
the Citibank-led advisory committee making a counter-proposal
to Argentina's original offer. Bankers remain hopeful that an
agreement can be reached by the middle of the month.
Reuter
|
HOUSE TRADE BILL DRAFTING POSTPONED | The House Ways and Means trade
subcommittee postponed until next week its opening session to
start drafting major changes to U.S. trade laws, a committee
aide said.
The subcommittee had not yet completed the preparatory work
to start writing the legislation, the aide said.
Reuter
|
<LUMONICS INC> YEAR LOSS | Oper shr loss 20 cts vs profit 66 cts
Oper net loss 1,995,000 vs profit 5,820,000
Revs 65.2 mln vs 53.0 mln
Avg shrs 9,891,000 vs 8,811,000
Note: 1986 loss excludes extraordinary loss of 2,413,000
dlrs or 25 cts shr including corporate reorganization,
discontinuing of U.S. operations and inventory writedown of
U.S. subsidiaries vs yr-ago loss of 3,140,000 dlrs or 36 cts
shr.
Reuter
|
HCC INDUSTRIES <HCCI> QUARTERLY DIVIDEND | Qtly div three cts vs three cts
Pay March 27
Record March 16
Reuter
|
REGAL <RGL>, BELL PETROLEUM IN REORGANIZATION | Regal International Inc said it proposed
to submit a plan of reorganization with the U.S. Bankruptcy
Court under which it will acquire Bell Petroleum Services INc's
by paying out all of its creditors and issue one share for each
shares of Bell's stock.
This proposal has been amended from a previously rejected
offer of .50 Regal share for each Bell share.
Regal said its will pursue the acquisition without the
support of Bell's management.
Bell Petroleum filed its Chapter 11 petition in November
1986 and has not, as yet, filed a plan of reorganization but
has only sought an order extending the exclusive order,
according to Regal.
Bell Petroleum President Ed Runyan said the company is
evaluating Regal's latest offer and evaluating other
alternatives.
Runyan said Bell is meeting tomorrow with another potential
suitor.
Reuter
|
SOUTHLAND <SLC> UNIT RAISES CRUDE PRICES | Southland Corp's Citgo Petrleum Corp
said it raised the contract price it will pay for all grades of
crude oil by one dlr a barrel, effective today.
The increase brings Citgo's posted price for West Texas
Intermediate to 17.00 dlrs a bbl. West Texas Sour is also now
priced at 17.00 dlrs/bbl, and Light Louisiana South is posted
at 17.35 dlrs/bbl.
On February 25 Citgo lowered its crude postings 50 cts to
1.50 dlrs per bbl, and cut WTI one dlr to 16.00.
Reuter
|
MAZDA MOTOR CORP REPORTS LOWER U.S. SALES | Mazda Motor Corp of Japan reported
car sales in the U.S. during February of 10,049, down from
19,448 during February last year.
The company said year to date car sales in the U.S. totaled
21,092, down from 38,441 a year earlier.
Truck sales in the U.S. totaled 8,558 in February, down
from 9,693 a year earlier. Year to date U.S. truck sales
totaled 16,917, compared to 18,341 a year ago.
Reuter
|
<WESTERN SECURITY BANK> 4TH QTR NET | Shr profit ten cts vs loss six cts
Net profit 43,000 vs loss 26,000
Year
Shr profit 46 cts vs profit 12 cts
Net profit 193,294 vs profit 51,029
Assets 44.4 mln vs 25.3 mln
Deposits 40.0 mln vs 21.4 mln
Loans 25.3 mln vs 15.2 mln
Reuter
|
RECENT U.S. OIL DEMAND UP 2.1 PCT FROM YEAR AGO | U.S. oil demand as measured by
products supplied rose 2.1 pct in the four weeks ended February
27 to 16.39 mln barrels per day (bpd) from 16.05 mln in the
same period a year ago, the Energy Information Administration
(EIA) said.
In its weekly petroleum status report, the Energy
Department agency said distillate demand was down 2.1 pct in
the period to 3.37 mln bpd from 3.44 mln a year earlier.
Gasoline demand averaged 6.60 mln bpd, up 2.4 pct from 6.44
mln last year, while residual fuel demand was 1.47 mln bpd, up
1.9 pct from 1.44 mln, the EIA said.
Domestic crude oil production was estimated at 8.38 mln
bpd, down 8.7 pct from 9.18 mln a year ago, and gross daily
crude imports (excluding those for the SPR) averaged 4.11 mln
bpd, up 36.9 pct from three mln, the EIA said.
Refinery crude runs in the four weeks were 12.21 mln bpd,
up 2.2 pct from 12 mln a year earlier, it said.
Year-to-date figures will not become available until March
26 when EIA's Petroleum Supply Monthly data for January 1987
becomes available, the agency said.
Reuter
|
SECURITIES GROUP FAVORS NEW BANK POWER FREEZE | The Securities Industry Association
endorsed legislation expected to come before the Senate Banking
Committee tomorrow imposing a moratorium on new powers for
commercial banks.
Robert Gerard, managing director of Morgan Stanley and Co,
told reporters his group, which mainly represents investment
banking firms, supported committee members who want the Federal
Reserve Board to postpone action on applications by three bank
holding companies seeking new powers.
"The Fed ought to hold those applications in abeyance
pending congressional review," Gerard said.
The legislation before the committee would recapitalize a
federal desposit insurance fund for savings and loan
associations and prohibit new nonbank banks.
Gerard said the securities association had no position on
nonbank banks.
The association wants Congress to undertake a comprehensive
study before changing the Glass-Steagall Act, which separates
commercial and investment banking activities, Gerard said.
Until the study is completed, the Fed should not act on the
applications by Citicorp, J.P. Morgan and Co. and Bankers Trust
New York Corp to underwrite and deal in securities, he said.
The study was likely to show substantial benefits from
continuing the separation of commercial and investment banking,
he said.
Gerard said the group believes a proposal by House Speaker
Jim Wright for a tax on securities was unjustified and would
hurt individual investors and beneficiaries of pension funds
that invest in securities.
"It may reduce the volume of activity, but the tax is a tax
on the saver and investor," Gerard said.
In addition, a U.S. tax would drive business from the
United States to other countries, he said.
Reuter
|
COFFEE PRICE DROP NOT AFFECTING COLOMBIA'S DEBT | the sharp fall in international coffee
prices will not affect colombia's external credit situation,
finance minister cesar gaviria told reuters.
"our foreign debt is high, but we can pay, and I hope the
foreign banking community will maintain its position toward us,"
he said.
He said the current decline on world coffee markets was not
totally unexpected and would have no immediate bearing on
colombia's financial state, which he described as sound.
Gaviria said the decline in coffee prices could mean a loss
of 1.5 billion dlrs in revenues for 1987.
The conservative party and the country's largest trade
union called this week for the debt to be rescheduled following
the price drop.
Colombia, the only major latin american country not to have
rescheduled its external public debt, has a total foreign debt
of 13.6 billion dlrs.
Reuter
|
GULF STATES <GSU> ASKS FOR REQUIREMENT REMOVAL | Gulf States Utilities Co said it
asked the Public Utility Commission of Texas to remove a
condition that it secure a line of credit before the emergency
rates can be put into effect in the Texas service area.
The commission granted it a 39.9 mln dlrs interim rate
increase February five, contingent upon Gulf States obtaining a
250 mln dlr line of credit.
A motion for rehearing will be considered at as commission
meeting on March 11, it said. Gulf States said it is concerned
the credit line requirement will give potential lenders an
advantage that would be damaging to the company.
Reuter
|
USDA WOULD SCRAP COTTON, RICE, BEAN PRICE FLOORS | The package of proposed farm policy
changes that the Reagan administration sent to Congress today
includes a provision that would eliminate minimum price support
levels for upland cotton, rice and soybeans.
The package, obtained by Reuters, also includes a
provision, outlined in advance by USDA officials, that would
increase the annual permissible cut in the basic price support
levels for all major crops to 10 pct from five pct.
Under current law, the basic support prices for upland
cotton, rice and soybeans between 1987 and 1990 cannot be cut
below 50 cents per lb, 6.50 dlrs per hundredweight and 4.50
dlrs per bushel, respectively.
USDA's intention to propose scrapping price floors for
cotton, rice and soybeans had not been disclosed previously.
Reuter
|
GATT SETS UP PANEL ON CANADIAN HERRING, SALMON | The ruling GATT Council today set up a
formal dispute panel to examine a U.S. complaint that a
Canadian law prohibiting export of unprocessed herring and
salmon was discriminatory.
David Wood, official spokesman of the General Agreement on
Tariffs and Trade (GATT), told a news briefing the decision was
taken after bilateral consultations failed to resolve the row.
U.S. Ambassador Michael Samuels charged during the Council
debate that Canada was trying to preserve domestic jobs by
insisting that herring and salmon be processed at home.
Robert White, Canada's deputy chief of delegation, replied
the law was in line with GATT rules, and was for conservations
reasons. But he agreed to setting up the dispute panel.
Reuter
|
EXCHANGE BANK <EXCG> SEES BANK INDUSTRY SHAKEOUT | Opportunities for medium-sized banks to
compete in the face of the increasing centralization of the
financial services industry may be dwindling, according to John
Rau, president of the Exchange National Bank of Chicago.
"We're going to see a continued shaking-out of the banking
industry," Rau told Reuters after a speech to securities
analysts and investment advisors.
Rau said Exchange National Bank has concentrated its
resources on financial services for medium-sized Chicago and
Midwest businesses, asset-based lending to middle-market
companies, and sales and trading of financial services.
"Most commercial banks depend on relatively low cost
consumer deposits for their income. We decided to move our
franchise into a less susceptible niche," Rau said.
"Nichemanship is a very difficult thing, especially in
urban areas where inevitably banking franchises are mass-market
oriented," Rau said. "The odds are against other banks doing
what we have done."
Exchange National Bank is the principal subsidiary of The
Exchange International Corp. With total assets of 1.9 billion
dlrs, it is Chicago's fifth largest bank. Net income totalled
10.2 mln dlrs or 1.10 dlrs a share in 1986, up from 7.7 mln
dlrs or one dlr a share in 1985.
Reuter
|
SOUTH AFRICAN FOREIGN RESERVES UP SHARPLY | South Africa's total gold and
foreign assets rose by 700 mln rand in February to 6.2 billion
rand after rising by almost one billion rand in January,
Reserve Bank Governor Gerhard de Kock said.
De Kock, interviewed on state-run television, gave no
breakdown of the reserves.
He also said that to curb inflation, salary increases would
have to be below the inflation rate. The state must set an
example by keeping wage increases below the inflation rate, he
said.
Consumer prices rose by 16.1 pct in the year to January.
Reuter
|
WTC INTERNATIONAL <WAF> SETS SOUTH AFRICA TRUST | WTC International N.V. said it
has sold its affiliates in South Africa to an independent
trust, created to continue the operations in that country.
The purchase price was about 8.4 mln dlrs, represented by a
ten-year interest-bearing note, payable annually at 11 pct, to
be paid by the trust out of proceeds from the South African
operations, the company said.
WTC said its board concluded in view of the social,
political and economic situatin in South Africa, it was best to
separate the company from its interests there.
Reuter
|
MOST BOLIVIAN CENTRAL BANK EMPLOYEES RESIGN | about 1,000 bolivian central bank
employees, more than 80 per cent of the workforce, accepted
management terms to quit today, a union leader said.
"none of the employees who have decided to resign from the
institution is prepared to work again in the bank, unless many
of the economic and social conditions improve," bank workers
leader mario galindas told reuters.
The centre-right government of president victor paz
estenssoro had approved a restructuring plan which envisaged at
least 600 redundancies, about half the bank's workforce, in
line with its policy of streamlining the state sector.
Galindas said the bank needed at least 800 employees to
keep up its present functions.
The bank agreed to pay a 5,000 dollar bonus to every
employee who resigned, as well as the legal redundancy terms of
three months salary plus one for every year worked.
Reuter
|
SURINAM GOVERNMENT TO DISCUSS ECONOMIC CRISIS | Surinam's military government opens a
four-day congress tomorrow to discuss the country's deepening
economic crisis, the official Surinam News Agency reported.
Acting Prime Minister Jules Wijdenbosch will open the
meeting which is being attended by government officials,
political leaders and heads of labor unions.
Surinam's economy has suffered a sharp downturn in recent
months as a result of guerrilla activities led by former
soldier Ronny Brunswijk, who is seeking to overthrow the
government of Commander Desi Bouterse.
The guerrillas have forced the shutdown of most of
Surinam's vital bauxite and aluminum industry, creating a
foreign exchange crisis and food shortages.
Reuter
|
IVORY COAST SAYS COFFEE PRICE FALL SHORT-LIVED | Ivory Coast today predicted that the
present coffee price crash recorded after the collapse of the
recent International Coffee Organisation (ICO) meeting in
London would not last long.
Commenting on Monday's failure by producer and consumer
nations to agree on new export quotas needed to tighten an
oversupplied coffee market, Ivorian Agriculture Minister Denis
Bra Kanon told reporters that traders would eventually be
obliged to restore their positions.
"I am convinced the market is going to reverse by April," he
told a news conference here at his return from the failed
London talks.
Robusta coffee beans for May delivery ended the day in
London down about 50 sterling at 1,265 sterling a tonne, the
lowest since 1982.
Bra Kanon estimated at at least 535 billion CFA francs
(1.76 billion dlrs) the overall loss in revenues earned by
Ivory Coast from all its commodities exports this year if the
slide on the world markets continues.
He disclosed that his country - the world's biggest cocoa
producer and the third largest for coffee -- would spearhead an
African initiative to reach a compromise formula by the end of
next month.
Ivory Coast has been chosen by the Abidjan-based
Inter-African Coffee Organisation (IACO) to speak on behalf of
the continent's 25 producer nations at the London talks.
"An initiative from IACO is likely very soon," he said
without elaborating.
"Following the London collapse, we have immediately embarked
on a concertation course to avoid breaking an already fragile
market," he said.
Questioned by journalists, the minister said President
Felix Houphouet-Boigny estimated for the moment that his
government would not be forced to reduce the price guaranteed
by the state to Ivorian coffee-growers for the current season.
Last year, the West African nation announced that the
coffee producer price would stay at 200 CFA francs (65 cents)
per kilo.
Bra Kanon said that his country would strive to diversify
its agricultural production to avoid beeing too dependent from
world market fluctuation.
A communique read over the state-run television tonight
said that during today's weekly cabinet meeting, the veteran
Ivorian leader reaffirmed "his faith in Ivory Coast's bright
(economic) future" despite the commodities price slide.
The Agriculture Minister also announced the government
decided to earmark a sum of 7.5 billion CFA francs (24.71 mln
dlrs) to support the country's small farmers.
Financially-strapped Ivory Coast, long regarded as one of
Africa's showpiece economies, is going through difficult times
following the sharp slump in the world price of cocoa and
coffee.
Ivory Coast's real gross domestic product is expected to
grow only one pct this year compared to five pct in 1986,
according to a recent Finance Ministry estimate.
Reuter
|
N.Z. CURRENT ACCOUNT DEFICIT NARROWS IN JANUARY | New Zealand's current account deficit
narrowed to 180 mln N.Z. Dlrs in January from 203 mln, revised
from 207 mln, in December and 305 mln in January 1986, in a
smoothed measurement, the Statistics Department said.
Unsmoothed figures show a deficit of 162 mln dlrs for
January against 107 mln, revised from 75 mln for December 1986
and 575 mln in January 1986.
The smoothed series -- adjusted to iron out random
fluctuations -- shows a widening surplus on merchandise trade
to 46 mln from a surplus of 33 mln, revised from 43 mln dlrs in
December and a 71 mln deficit in the a year ago period.
Exports were 905 mln dlrs against 929 mln, revised from 971
mln in December and 816 mln a year earlier, while imports fell
to 858 mln from 895 mln, revised from 928 mln in December and
888 mln in January 1986.
Unadjusted merchandise figures show a surplus of 53 mln
dlrs vs 141 mln, revised from 203 mln surplus in December 1986
and a 323 mln deficit a year earlier.
The deficit on invisibles on unsmoothed figures eased to
215 mln dlrs from 248 mln, revised from 277 mln in December and
252 mln in January 1986.
The smoothed deficit on invisibles fell to 226 mln from 237
mln, revised from 250 mln in December and 234 mln in the year
ago period.
REUTER
|
BUTTES GAS AND OIL <BGO.P> FILES BANKRUPTCY PLAN | Buttes Gas and Oil Co said it
filed a plan of reorganization in a U.S. Bankruptcy court
handling its Chapter 11 bankruptcy case.
The company said the plan wll provide for distribution of
cash, promissory notes and stock among 12 classes of creditors
and equity interests.
Reuter
|
CHARTS SIGNAL BULLISH BREAKOUT IN DEBT FUTURES | The rally Wednesday in U.S. interest
rate futures left the Treasury bond contract above the top of a
three month trading range which signals a bullish chart
breakout, financial analysts said.
In addition, sluggish U.S. economic data and little sign
that the economy will pick up its pace in the near future may
be enough to send bond futures to all-time highs, the analysts
said.
"The market is paying more attention to the weakened state
of the economy right now," said Refco analyst Mike Connery.
Connery said the four pct drop in January U.S. factory
orders reinforced sentiment that first quarter economic growth
will be slow.
Connery and other analysts noted that talk of a cut in the
Lombard rate after sluggish West German industrial production
figures also provided some support.
"The domestic economies of the major trading partners of
the U.S. may deteriorate to such an extent that they will be
forced to ease," thus paving the way for a more accomodative
U.S. credit policy, added John Michael, analyst at First
Options of Chicago.
Michael pointed out, however, that trimming the U.S. trade
deficit -- the ultimate aim of the recent meeting of major
industrial countries -- may not necessarily aid bond prices.
"The surplus (for exporters to the U.S.) is bullish for
bonds because they (exporters) have a lot of dollars. Rather
than translate those into their own currencies and suffer
exchange rate risk, they buy dollar-denominated instruments,"
Michael said.
Indeed, futures traders with cash bond connections said
some of the late strength in the bond market resulted from
buying by Japanese interests.
But the analysts said the heavy buying in futures occurred
after the June bond broke above stiff resistance at 101-2/32.
"The breakout is pretty important," said chartist Leslie
Keefe of Technical Data Corp of Boston. "Not only did bonds
close above recent highs but they were also above the sideways
pattern we've been in for the last three months."
Also positive on a technical basis was the fact that the
June bond contract held chart support early near 100-4/32, and
that the rally occurred on heavy volume, Keefe said.
Keefe said the next level of significant chart resistance
will be at 101-24/32 to 101-28/32. Furthermore, "we still have
the April (1986) highs to contend with," which in the nearby
contract is 105-15/32.
Michael said the breakout projects gains to 103 in June
T-bonds and "there is an outside chance to reach 106."
Keefe warned, however, that confirmation also is needed
from other technical indicators such as relative strength
indexes and short-term momentum indicators.
"Without them, sustained strength is in question," Keefe
said.
Reuter
|
N.Z. WRITES OFF MEAT PRICE STABILISATION DEBT | New Zealand agreed with the Meat
Producers Board to write off 1.03 billion N.Z. Dlrs of debt
incurred on behalf of farmers under the Meat Price
Stabilisation Scheme, Finance Minister Roger Douglas said.
Douglas and Agriculture Minister Colin Moyle said in a
joint statement the agreement concludes one of the major
refinancing arrangements announced in the July 1986 budget,
which removed subsidies from the farming sector.
The write-off applies to debt occurring prior to October
1985, when stabilisation payments for sheepmeat ceased under an
industry restructuring which allowed private marketing.
REUTER
|
PRESIDENT REAGAN SAYS ARMS FOR HOSTAGES WAS MISTAKE, ACCEPTS RESPONSIBILITY
| |
REAGAN ADMITS IRAN ARMS OPERATION A MISTAKE | President Reagan, fighting to regain
public confidence in the wake of the Iran arms scandal,
admitted tonight that the clandestine operation wound up as an
arms-for-hostages deal and, "It was a mistake."
"When it came to managing the NSC (National Security
Council) staff, let's face it, my style didn't match its
previous track record," Reagan said in a television address to
the American people.
"I have already begun correcting this," he added in his
prepared remarks.
Reagan's speech, widely regarded as critical to his hopes
of repairing his presidency, was his first detailed response to
last week's scorching Tower commission report on the secret
sale of arms to Iran and diversion of profits to U.S.-backed
contra rebels in Nicaragua.
Reagan said he had been silent on the scandal while he
waited for the truth to come out and admitted, "I've paid a
price for my silence in terms of your trust and confidence."
He said that a few months ago, he told the American people
he did not trade arms for hostages in the 18-month covert
operation.
"My heart and my best intentions still tell me that is true,
but the facts and the evidence tell me it is not," Reagan said.
"There are reasons why it happened, but no excuses. It was a
mistake," he said.
Reagan again said that the original Iran initiative was to
develop relations with those who might assume leadership in a
post-Khomeini government.
"It's clear from the Board's report however that I let my
personal concern for the hostages spill over into the
geo-political strategy of reaching out to Iran.
"I asked so many questions about the hostages' welfare that
I didn't ask enough about the specifics of the total Iran plan,"
he said.
The commission, headed by former Republican Sen. John
Tower, said Reagan's "intense compassion" for Americans being
held by pro-Iranian groups in Lebanon had resulted in an
unprofessional and unsatisfactory policy.
It portrayed 76-year old Reagan as a man who did not know
or care much about the wide-ranging, probably illegal
activities of his National Security Council (NSC) staff, which
hatched the operation.
Reagan said he endorsed all of the Tower commission's
recommendations about the running of the NSC, adding, "In fact,
I'm going beyond its recommendations, so as to put the house in
even better order."
He noted that he had appointed former Senate Republican
leader Howard Baker as his new chief of staff and said he hoped
Baker would help him forge a new partnership with Congress,
"especially on foreign and national security policies."
He said his new national security adviser, Frank Carlucci,
was rebuilding the national security staff "with proper
management discipline."
Reagan said that almost half the NSC professional staff now
consisted of new people.
He said that FBI Director William Webster, his new nominee
to head the CIA, "understands the meaning of 'rule of law'".
Reagan also announced that Tower had agreed to serve as a
member of his Foreign Intelligence Advisory Board, which acts
as a watchdog on the nation's covert activities.
But he said that he had issued a directive barring the NSC
staff itself from undertaking covert operations -- "No ifs,
ands, or buts."
Tonight's speech was a far cry from Reagan's initial strong
defense of his Iran policy.
In a televised speech last November 13, Reagan called
charges that he ransomed hostages and undercut the U.S. war on
terrorism "utterly false."
As recently as two months ago in his State of the Union
speech, Reagan said that "serious mistakes were made" but
defended the basic policy as one that had worthy goals.
By contrast, tonight's speech had an apologetic tone that
was a marked departure from Reagan's usual upbeat, confident
demeanor.
He said he took full responsibility for his own actions "and
for those of my administration."
"As angry as I may be about activities undertaken without my
knowledge, I am still accountable for those activities. As
disappointed as I may be in some who served me, I am still the
one who must answer to the American people for this behavior,"
Reagan said.
Reagan said the message that the nation should move on had
come from Republicans and Democrats in Congress, from allies
around the world -- "and if we're reading the signals right,
even from the Soviets."
His remark seemed to be a reference to a new Soviet
willingness to reach an agreement on eliminating medium-range
nuclear missiles in Europe.
Reuter
|
REAGAN SAYS IRAN POLICY RECORDS IMPROPERLY KEPT | President Reagan said improper
record keeping of meetings and decisions made on the Iran arms
initiative led to his failure to recollect whether he approved
arms shipments by Israel before or after the fact.
In a televised address to the American people Reagan said
he is still upset that no-one kept proper records -- a
complaint made by the Tower commission.
The arms shipment was made in August of 1985 by Israel.
"I did approve it; I just can't specifically say when,"
Reagan said.
Reagan added: "Rest assured, there's plenty of
record-keeping now going on at 1600 Pennsylvania Avenue (the
White House)."
The timing of Reagan's approval of the Israeli shipment is
important because it could determine whether the sale violated
various laws, including the Arms Export Control Act.
Reuter
|
REAGAN'S REMARKS HELP GOLD TO RECOVER IN HONG KONG | Gold rose by about 50 U.S. Cents an
ounce, following a statement by President Ronald Reagan that
the arms-for-hostages deal with Iran "was a mistake," dealers
said.
Bullion rose to 409.40/90 dlrs from an initial low of
408.90/409.40. This compares with the opening of 409.00/50 and
New York's close of 410.00/50.
Dealers noted mild short-covering in the metal after some
initial selling by local investors. Trading was fairly quiet
this morning partly owed to the slow U.S. Dollar activities,
they added.
However, Reagan's remarks had only a short-lived bullish
impact on the gold price, which is now stabilising at 409.10/60
dlrs, dealers said.
On the local market, the metal traded in a narrow range of
3,800 and 3,805 H.K. Dlrs a tael against yesterday's 3,778
close.
REUTER
|
TAIWAN ISSUES MORE CDS TO CURB MONEY SUPPLY GROWTH | The central bank has issued 7.08 billion
dlrs worth of certificates of deposit (CDs), bringing the value
of CD issues so far this year to 93.29 billion, a bank
spokesman told Reuters.
The new CDs, with maturities of six months, one year and
two years, carry interest rates ranging from 3.9 to 5.15 pct.
The issues are designed to help curb the growth of the M-1B
money supply which has expanded along with Taiwan's foreign
exchange reserves, the spokesman said. The reserves reached a
record high of more than 51 billion U.S. Dlrs Wednesday.
REUTER
|
IRAN REPORTS OFFENSIVE AS IRAQ THREATENS AIR RAIDS | Iranian troops are fighting on two
widely separated fronts in a new offensive in the mountains of
Kurdistan in northern Iraq, Tehran's IRNA news agency said.
Baghdad war communiques made no mention of fresh fighting
on northern or southern sectors, but a military spokesman
threatened a resumption of air raids on Iranian towns.
IRNA, monitored by the BBC in London, said Iran had seized
several strategic heights in the northern assault, which
started on Tuesday. It said at least 2,000 Iraqi troops had
been killed, wounded or captured. The offensive is in the Haj
Omran area of Kurdistan, scene of fierce fighting in 1983.
Tehran radio reported last night that Iranian forces were
in control of four mountain areas, bringing several Iraqi towns
with troop concentrations within artillery range.
In the south, IRNA said, Iranian forces captured several
Iraqi defence posts east of Iraq's second city, Basra, in a
drive north along the Shatt al-Arab waterway.
Today is the end of a two-week-long Iraqi moratorium on air
raids declared on condition that Iran stop attacking Iraqi
territory and shelling its towns.
Iraq's war spokesman said Iran had kept up its attacks and
had made "boasts of illusory victories."
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ITALIAN PRESIDENT FACES PROBLEMS CHOOSING LEADER | President Francesco Cossiga meets political
leaders to discuss how to form a new government following the
resignation of Prime Minister Bettino Craxi.
Craxi's Socialist Party has said it will not serve under
Foreign Minister Giulio Andreotti, who has been prime minister
five times previously and whom the majority Christian
Democratic Party has said it wants to take on the job again.
The Socialist Party, the second biggest in the outgoing
five-party coalition, said it would accept only Ciriaco De
Mita, Christian Democratic Party secretary, or the party's
president, Arnaldo Forlani, for the job of prime minister.
Political sources said talks are likely to be difficult and
could take several days due to rivalry between the two leading
parties. In Craxi's 3-1/2 years as prime minister, the
Christian Democrats have become increasingly irritated at being
denied the prime minister's job. The sources said early general
elections are likely unless agreement can be reached.
Cossiga is due to meet former presidents before holding
talks with party leaders, including the opposition Communists
and the junior coalition members -- Republicans, Liberals and
Social Democrats. After the consultations, Cossiga will name a
prime minister-designate who will try to form a government.
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