reuters-21578-json

[ { "title": "BEVERLY HILLS COP II TOPS 100 MLN AT BOX OFFICE", "body": "Gulf and Western Inc's <GW> Paramount\nPictures Corp division said its movie \"Beverly Hills Cop II\"\nhas topped the 100 mln dlr mark at the box office on the 29th\nday of its North American release.\n Paramount said the the movie has become the fastest movie\nto hit the 100 mln dlr mark with an \"R\" rating, which means\nthat anyone under 17 must be accompanied by their parents.\n Reuter\n\u0003", "date": "18-JUN-1987 18:46:13.14", "places": [ "usa" ], "id": "19001" }, { "title": "TRANSAMERICA CORP <TA> QUARTERLY DIVIDEND", "body": "Qtly div 44 cts vs 44 cts\n Pay July 31\n Record July 3\n Reuter\n\u0003", "date": "18-JUN-1987 18:46:33.73", "places": [ "usa" ], "id": "19002" }, { "title": "U.S. HOUSE CALLS HIGHER JAPAN DEFENSE SPENDING", "body": "The House today supported a call for\nJapan to boost its defense spending to help share the burden of\nprotecting Western interests in sensitive areas around the\nworld, including in the Gulf.\n House member approved a measure that would require\nSecretary of State George Shultz to enter into talks with Japan\non increasing Japanese defense spending to at least 3 pct of\nits gross national product.\n The measure, passed during consideration of the 1988-89\nState Department funding bill would not require an increase,\nbut legislators called on Japan to spend more on defense. The\nSenate must approve the measure before it becomes law.\n \"We don't have to bash the Japanese. We have to show them\nhow to share the burden of the defense of the free world,\" said\nRep. Robert Dornan, a California Republican.\n The amendment calls on Shultz to enter into talks with\nJapan with the aim of reaching agreement on one of two\nalternatives: either Japan can spend 3 pct of its GNP on\ndefense by itself or give the equivalent amount of money to the\nUnited States as a kind of security fee.\n Reuter\n\u0003", "date": "18-JUN-1987 18:48:35.56", "places": [ "usa", "japan" ], "id": "19003" }, { "title": " OECD SEES 1.5 PCT WEST GERMAN REAL GNP GROWTH IN 1987\n", "date": "18-JUN-1987 18:55:48.68", "topics": [ "gnp" ], "organisations": [ "oecd" ], "id": "19004" }, { "title": "AUSTRALIA SET TO GROW, BUT UNEMPLOYMENT MAY RISE", "body": "Australia's economy should manage modest\ngrowth over the next two years after a sharp slowdown but\nunemployment could still edge upwards, the Organisation for\nEconomic Cooperation and Development (OECD) said.\n The organisation's latest half-yearly report says Gross\nDomestic Product will grow by 2.5 pct this year and by 2.75 pct\nin 1988 compared with only 1.4 pct in 1986. The growth will be\nhelped by higher stockbuilding and stronger domestic demand\nfollowing tax cuts and higher real wages, it added.\n The report forecasts a decline in inflation, with consumer\nprices increasing by 8.5 pct this year and 6.25 pct in 1988.\n The current account deficit shows signs of easing slightly\nand could narrow to 12 billion dlrs by the end of 1988.\n While predicting slightly stronger growth than last year,\nhowever, the report revises downwards the OECD's earlier growth\nforecast for 1987 of 3.75 pct.\n The OECD predicts a similar combination of modest economic\ngrowth and rising unemployment for New Zealand, which is\nstruggling to recover from a major economic crisis.\n The country's GDP, which contracted by 0.6 pct last year,\nshould again show growth over the next two years, rising by\n0.25 pct this year and a more substantial 2.75 pct in 1988.\n Reuter\n\u0003", "date": "18-JUN-1987 18:56:07.09", "topics": [ "gnp", "cpi", "bop" ], "organisations": [ "oecd" ], "places": [ "france", "australia" ], "id": "19005" }, { "title": "SQUIBB <SQB> SAID NOT INTERESTED IN BUYING CETUS", "body": "Robert Fildes, president and chief\nexecutive of Cetus Corp <CTUS.O>, told Reuters that Squibb Corp\nis not interested in buying Cetus.\n Earlier the companies said Squibb would buy from Cetus a\nfive pct equity postion in Cetus for about 40 mln dlrs.\n \"This is not an attempt by Squibb to become a major\nmajority holder in Cetus,\" Fildes told Reuters in an interview.\n\"Squibb has not approached us with any indication that they\nwant to acquire us and we wouldn't be interested in that kind\nof arrangement,\" said Fildes.\n Squibb could not be reached to comment on the late comments\nby Fildes.\n Squibb is Cetus' first pharmaceutical partner and the only\none to own an equity position in Cetus. Eastman Kodak Co <EK>\nand W.R. Grace <WR> both have joint ventures with Cetus, but\nneither owns an equity position in the company, said Fildes.\n Cetus has a venture with Kodak to develp diagnostic\nproducts and with Grace to develop agricultural products.\n Earlier, Squibb and Cetus announced in a joint statement \nan agreement in principle to form a joint venture to develop\nnew biotechnology products in several fields.\n \n As part of the deal Squibb will license several of Cetus'\nanticancer agents, including interleukin-2, in development.\nSquibb will sell the drugs only in Japan and other markets but\nnot in North American and Western Europe.\n \"We wouldn't have done this deal had it not been understood\nthat Cetus wants to build its own fully integrated business in\nNorth America and Europe,\" said Fildes.\n He said Squibb was the good partner because Squibb has a\nmajor joint venture in Japan and has sales capabilities of its\nown in that market.\n \n Fildes said Cetus has shunned licensing arrangements with\npharmaceutical companies because it wanted to build its own\nbusiness. Many large corporations have invested in small\nbiotech firms.\n But Squibb's investment in Cetus is the first it has made\nin biotechnology. Fildes said that was attractive to Cetus\nbecause it wanted a partner that didn't have a relationship\nwith a large number of other biotechnology companies.\"\n \n Fildes said his strategy was to have partners in non drug\nareas like diagnostics and agriculture, but to \"keep the\nbiggest developments in anticancer drugs to ourselves.\"\n Fildes said the partnership with Squibb would be used to\nbroaden the company's reach in such big money making areas\nas the cardiovascular, anti-infective and the anti-inflammatory\nmarkets.\n Squibb is also investming 75 mln dlrs in Cetus' research\nover the next five years.\n \n \"Squibb is putting up over 75 mln dlrs in research and\ndevelopment to make it happen, while the equity position part\nof the package is simply to demonstrate the seriousness of this\npartnership,\" said Fildes.\n Reuter\n\u0003", "date": "18-JUN-1987 19:03:26.58", "topics": [ "acq" ], "places": [ "usa" ], "id": "19006" }, { "title": "NBC SAYS IT WILL IMPLEMENT CONTRACT JUNE 29", "body": "The National Broadcasting Co, a unit of\nGeneral Electric Co <GE>, said it intends to implement on June\n29 a labor contract rejected by union represenatives.\n A spokesman for the National Association of Broadcast\nEmployees and Technicians, represening 2,800 workers, said its\nnegotiating committee adopted a formal resolution today stating\nit will inform NBC it will strike upon implementation.\n \"The union will have to decide what action it thinks is\nappropriate,\" said Day Krolik, NBC's vice president for labor\nrelations. A union spokesman said NBC has until the day of\nimplemetation to peacefully negotiate a contract.\n Reuter\n\u0003", "date": "18-JUN-1987 19:44:15.31", "places": [ "usa" ], "id": "19007" }, { "title": "FORMER SHEARSON <SHE> OFFICIAL PLEADS GUILTY", "body": "Mark Stahl, 45, who was a former senior\nvice president of Shearson Lehman Brothers, until his\nsuspension on April 16, today admitted in U.S. District court\nhere, embezzling almost 19 mln dlrs from his firm over the past\nyear.\n He entered a guilty plea before United States District\nCourt Judge Vincent Broderick to four specific charges totaling\n1,031,000 dlrs on wire fraud.\n Stahl, who was a senior vice president for finance, told\nthe judge that the total embezzlement amounted to \"a little\nless than\" 19 mln dlrs.\n \n Through an attorney, Stahl agreed to make restitution to\nShearson Lehman of all the embezzled funds if possible. However\nhis guilty pleas today to the four counts will cover all\ncriminal liability of the embezzlement that occurred between\nApril 1986 to last April.\n Judge Broderick scheduled sentencing for December nine.\n Stahl faces a maximum sentence of 20 years in jail and one\nmln dlrs in fines, or both.\n Reuter\n\u0003", "date": "18-JUN-1987 19:50:03.10", "places": [ "usa" ], "id": "19008" }, { "title": "TRI-STAR PICTURES INC <TRSP.O> 1ST QTR MAY 31", "body": "Shr four cts vs four cts\n Net 1,180,000 vs 902,000\n Revs 146.9 mln vs 37.0 mln\n Avg shrs 33 mln vs 23.9 mln\n NOTE: Company changed its fiscal year from December 31 to\nthe last day of February, thus results of operations for the\nyear-ago period have been restated to reflect this change.\n Current first quarter includes results of operations of\nLoews Theatre Management Corp which Tri-Star acquired December\n31.\n Reuter\n\u0003", "date": "18-JUN-1987 19:53:55.04", "topics": [ "earn" ], "places": [ "usa" ], "id": "19009" }, { "title": "CANADA BUDGET DEFICIT DECLINE TO SLOW IN LATE 1980S -\nOFFICIAL \n Reuter\n", "date": "18-JUN-1987 20:07:05.93", "id": "19010" }, { "title": "CANADA LIFTS CORPORATE TAX REVENUES BY FIVE BILLION DLRS\nOVER FIVE YEARS - OFFICIAL\n", "date": "18-JUN-1987 20:07:10.18", "id": "19011" }, { "title": "WILSON CUTS PERSONAL TAX RATES, LIMITS CAPITAL GAINS\nEXEMPTIONS\n Reuter\n", "date": "18-JUN-1987 20:07:45.08", "id": "19012" }, { "title": "CANADA LIFTS FINANCIAL INSTITUTION AVERAGE TAX RATE TO\n21.3 PCT FROM 14.5 PCT - OFFICIAL\n", "date": "18-JUN-1987 20:08:00.01", "id": "19013" }, { "title": "CANADA TO INCREASE CORPORATE TAX REVENUES", "body": "Canada will increase corporate tax\nrevenues by about five billion dlrs over the next five years by\nbroadening the tax base and allowing fewer exemptions, finance\nminister Michael Wilson said.\n As Wilson previously promised, he said corporations will\nbear an increased tax burden, despite new measures to lower\noverall tax rates.\n Increased corporate revenues will result from broadening\nthe tax base and eliminating special tax exemptions.\n \"The jobs of many Canadians depend on a corporate income\ntax system that is competitive with other countries,\nparticularly the United States,\" Wilson said in a prepared\nspeech to the House of Commons.\n \"And it (tax reform) will ensure that profitable\ncorporations carry a bigger share of the total tax burden,\" he\nadded.\n Federal tax revenue from corporations will increase by 470\nmln dlrs in the fiscal year ending March 31, 1988, 410 mln dlrs\nin fiscal 1989 and 1.19 billion dlrs in fiscal 1990, according\nto documents tabled with Wilson's speech.\n Reuter\n\u0003", "date": "18-JUN-1987 20:12:23.11", "places": [ "canada" ], "id": "19014" }, { "title": "CANADA FINANCIAL TAX RATE INCREASED", "body": "The average tax rate for Canadian\nfinancial insitutions will increase to 21.3 pct from 14.5 pct\nunder the new tax reform package, the federal finance\ndepartment said.\n The amount of financial institutions' income that is taxed\nwill also increase to 74.0 pct from 48.7 pct, it said in\ndocuments tabled with finance minister Michael Wilson's\nprepared speech to the House of Commons.\n Under Wilson's plan, the federal government will collect\n1.36 billion dlrs more over the next five years from financial\ninsitutions, including banks, trust mortgage and life insurance\ncompanies, according to finance department documents.\n Financial institutions \"are going to complain, but we\nbelieve the changes are appropriate and affordable,\" said one\nfinance department official who asked not to be identified.\n Ottawa will collect more revenue from financial\ninstitutions by reducing the amount of reserves they can deduct\nfrom taxes, which \"will broaden the tax base for this low tax\npaying sector,\" the finance department said.\n Among the changes, chartered banks will no longer be able\nto use a five-year averaging formula to calculate loan losses\nthat may be deducted for tax purposes.\n Effective June 17, 1987, banks will deduct bad or doubtful\nloans during the year they are incurred.\n The finance department said the impact of the new\nprovisions will be cushioned over a period of five years.\n The changes are needed to ensure that all financial\ncompanies are taxed fairly under deregulation of the financial\nservices industry.\n \"It would be inconsistent for the tax system to continue\nto provide different reserves for tax purposes for institutions\ncompeting in the same marketplace,\" the finance department\nsaid.\n Reuter\n\u0003", "date": "18-JUN-1987 20:15:24.21", "places": [ "canada" ], "id": "19015" }, { "title": "OTTAWA WIDENS SALES TAX, STUDIES REPLACEMENT", "body": "Canada will broaden a federal sales tax\nlevied on manufacturers before scrapping the system in favor of\na broad based, multi-staged sales tax, finance minister Michael\nWilson said.\n As expected, Wilson did not include a new sales tax system\nas part of his wide-ranging tax reforms tabled in the House of\nCommons today.\n Instead, the federal government will make interim changes\nto the existing sales tax to make it more fair for low and\nmiddle income Canadians.\n \"The present (sales) tax is fundamentally flawed. It is a\nhidden, arbitrary and capricious tax,\" Wilson told the House of\nCommons.\n The existing federal sales tax system hurts the Canadian\neconomy by putting more tax on Canadian produced goods than\nimported goods and adding a hidden tax on Canadian exports that\nmakes them less competitive, Wilson said.\n Interim changes effective January 1, 1988 will include:\n -- applying the federal sales tax to marketing companies\nrelated to manufacturers\n -- levying the tax at the wholesale level instead of the\nmanufacturer for a selected range of products\n -- applying a 10 pct sales tax to telecommunication\nservices, except for residential telephone lines\n -- quicker collection of federal sales taxes.\n To offset these changes for low income Canadians,\nrefundable tax credits will be increased to 70 dlrs from 50\ndlrs for adults and to 35 dlrs from 25 dlrs for children, the\nfinance department said.\n Ottawa is considering three alternative forms for a new\nsales tax, including a goods and services tax, a value added\ntax and a national sales tax that would combine existing\nfederal and provincial levies into one system, Wilson told the\nHouse of Commons.\n He said the federal government will explore the\npossibility of one national sales tax with Canada's 10\nprovincial governments. All provinces except Albeta now levy a\nprovincial sales of tax of varying amounts.\n Wilson said one joint system would be simpler for\ntaxpayers and maximize economic benefits of tax reform.\n If Ottawa and the provinces can't agree on a national\nsales tax system, Wilson said the federal government will\nconsider either a goods and services tax or a value-added tax.\n A goods and services tax would apply at one rate to\nvirtually all goods and services in Canada and would include\nfurther increases in refundable tax credits for low and middle\nincome Canadians, the finance department said in documents\naccompanying Wilson's speech.\n A federal value-added tax, similar to European tax\nsystems, would also be broad based but would allow more\nflexibility to exempt selected goods and services, the\ndepartment said. The finance deparment said the main drawback\nof a value added tax is that it would be more complex and\ncostly to implement than the other two proposals.\n Reuter\n\u0003", "date": "18-JUN-1987 20:20:39.69", "places": [ "canada" ], "id": "19016" }, { "title": "FALL IN CANADIAN BUDGET DEFICIT TO SLOW", "body": "Finance Minister Michael Wilson said tax\nreform will not affect his determination to reign in\nexpenditures, but his forecasts show a slowing of the decline\nin the budget deficit in the late 1980s.\n \"Responsible tax reform must be fiscally responsible,\"\nWilson said in a speech prepared for the House of Commons.\n Wilson estimated the deficit will fall to 29.3 billion dlrs\nin the year ending March 31, 1988, the same level as he\nforecast in the February budget.\n And in the year ended this past March, the deficit was\nexpected to have been one billion dlrs lower than the 32\nbillion dlr shortfall originally forecast, Wilson said.\n Wilson said in the current 1988 fiscal year\nhigher-than-anticipated spending, particularly in farm income\nsupport programs, will be offset by higher-than-anticipated\nrevenues.\n But finance department documents show the pace of deficit\nreduction was expected to slow temporarily in fiscal 1989 and\n1990 as a result of lower oil and grain prices and the\ntransition to the reformed taxation system.\n The deficit is expected to total 28.9 billion dlrs in\nfiscal 1989 and 28.6 billion dlrs in 1989 and then fall to 26.1\nbillion dlrs in 1991.\n Wilson was optimistic about the outlook for the Canadian\neconomy, forcasting gross domestic product would expand 2.8 pct\nthis year and 3.0 pct in 1988. In 1986 the economy grew by an\nactual 3.1 pct.\n Inflation, meanwhile, is expected to stabilize at around\nthe current four pct level over the next two years.\n Reuter\n\u0003", "date": "18-JUN-1987 20:28:39.01", "topics": [ "gnp" ], "places": [ "canada" ], "id": "19017" }, { "title": "CANADA'S WILSON SETS NEW PREFERRED SHARE TAX", "body": "Finance Minister Michael Wilson tabled a\nways and means motion to immediately impose a special tax on\npreferred share dividends to eliminate a significant loss of\ncorporate tax revenue.\n Under the motion, which is used to introduce most financial\ntax changes, dividends on all preferred shares issued after\nJune 18 will be taxable.\n The issuing corporation will be able to choose between two\nforms of tax, one that imposes a 25 pct tax on dividends with a\nsubsequent additional 10 pct tax paid by the shareholder, and\none that imposes a flat 40 pct tax on dividends.\n \"Measures to reduce the tax advantages of after-tax\nfinancing arrangements using preferred shares are a critical\nstep in achieving the broadened corporate tax base required to\nfund personal income tax reductions,\" Wilson explained.\n The minister said many profitable corporations, using\nvarious deductions built up over the years, pay no taxes,\nalthough they are in a position to pay dividends out of their\nprofits.\n Reuter\n\u0003", "date": "18-JUN-1987 20:33:47.78", "places": [ "canada" ], "id": "19018" }, { "title": "CANADA SETS WIDE-RANGING PERSONAL TAX CHANGES", "body": "Finance Minister Michael Wilson unveiled\na wide-ranging reform of the personal tax system that includes\nlimiting the capital gains exemption and a sharp cut in the\ndividend tax credit.\n With most changes effective at the first of next year,\nWilson also announced he was cutting the number of tax brackets\nfrom 10 to three.\n He said the changes will cut personal tax revenues by two\nbillion dlrs in 1988 and by more than 11 billion dlrs over the\nnext five years.\n \"Most Canadians will pay lower taxes because of two\nfar-reaching changes. A new structure of federal income tax\nrates and the conversion of exemptions and deductions to tax\ncredits,\" Wilson told the House of Commons.\n The new tax brackets will be 17 pct on the first 27,500\ndlrs of taxable income, 26 pct on the next 27,500 dlrs and 29\npct on taxable income in excess of 55,000 dlrs. The maximum tax\nrate is 34 pct under the current system.\n In a major reversal of his own initiative, Wilson said the\ncontroversial 500,000 dlrs capital gains exemption will be\nreduced to 100,000 dlrs over an investors' lifetime.\n Wilson introduced the exemption shortly after taking office\nin 1984 as a a way of stimulating investment, but it was\nsharply criticized by the opposition as over-generous to\nwealthy investors.\n The 500,000 dlr lifetime exemption will be kept on the\nsale of farm land and for small businesess, however.\n Also, the taxable portion of a capital gain will increase\nfrom 50 pct currently to 66-2/3 pct in 1988 and 75 pct in 1990.\n The dividend tax credit will be reduced from 33-1/3 pct to\n25 pct and the deduction for up to 1,000 dlrs of interest and\ndividend income will be eliminated in 1988.\n Wilson said tax treatment for registered retirement savings\nplan contributions will be maintained but the phase in of the\nincrease in the maximum limit to 15,500 dlrs will be delayed \nfour years to 1994.\n Reuter\n\u0003", "date": "18-JUN-1987 20:35:36.77", "places": [ "canada" ], "id": "19019" }, { "title": "ANZ BANKING GROUP SAYS IT WILL CUT PRIME RATE TO 16.00\nPCT FROM 16.50 ON JUNE 22\n", "date": "18-JUN-1987 20:48:32.87", "topics": [ "interest" ], "id": "19020" }, { "title": "Japan still asking institutions to limit speculative dlr\ndeals - Miyazawa\n", "date": "18-JUN-1987 21:07:33.30", "topics": [ "money-fx", "dlr" ], "id": "19021" }, { "title": "ANZ BANKING GROUP CUTS PRIME RATE TO 16.00 PCT", "body": "The Australia and New Zealand Banking\nGroup Ltd <ANZA.S> said it will cut its prime rate to 16.00 pct\nfrom 16.50, effective June 22.\n The cut takes the ANZ's prime to the lower end of the range\nof prime rates being offered by Australian trading banks. The\nhighest rate is 17.50 pct.\n The cut follows announcements of cuts yesterday by\n<Citibank Ltd> to 16.00 pct from 16.5, effective today, and\n<Commonwealth Bank of Australia> to 15.75 pct from 16.25,\neffective June 24.\n REUTER\n\u0003", "date": "18-JUN-1987 21:09:30.49", "topics": [ "interest" ], "places": [ "australia" ], "id": "19022" }, { "title": "JAPAN STILL WANTS SPECULATIVE DLR DEALS LIMITED", "body": "The Finance Ministry is still asking\nfinancial institutions to limit speculative dollar dealings,\nFinance Minister Kiichi Miyazawa told reporters.\n He was responding to rumours in the New York currency\nmarket overnight that the Ministry was reducing its pressure on\ninstitutions to refrain from excessively speculative dollar\ndealings.\n REUTER\n\u0003", "date": "18-JUN-1987 21:15:11.47", "topics": [ "money-fx", "dlr" ], "places": [ "japan" ], "id": "19023" }, { "title": "GANDHI PARTY BADLY DEFEATED IN INDIA STATE POLL", "body": "Prime Minister Rajiv Gandhi's Congress\n(I) party was swept from power in the northern state of Haryana\nby an opposition landslide.\n The loss was a major personal setback for Gandhi whose\nvote-winning ability was on trial after political scandals in\nDelhi and a string of electoral losses since he took command of\nthe party in 1984.\n With 53 results in for Haryana's 90-seat assembly, Congress\nhad won only two seats against 63 previously. Before the poll,\nCongress politicians in Delhi said privately that a loss in\nHaryana could open a party leadership debate.\n REUTER\n\u0003", "date": "18-JUN-1987 21:32:28.55", "places": [ "india" ], "id": "19024" }, { "title": "SOUTH KOREA THREATENS EMERGENCY MEASURES", "body": "The government will take emergency\nmeasures if the present wave of violent protest demonstrations\ncontinues, state radio said.\n The radio, which did not specify the measures, said the\ndecision was taken today at a meeting of top ministers and\nsecurity officials attended by Prime Minister Lee Han-key. It\nsaid a special statement would be made shortly.\n Thousands of demonstrators took to the streets of Seoul and\nother cities yesterday, battling riot police and demanding the\nresignation of President Chun Doo Hwan. It was the ninth\nsuccessive day of violent protests.\n REUTER\n\u0003", "date": "18-JUN-1987 21:34:55.99", "places": [ "south-korea" ], "id": "19025" }, { "title": "COURT ORDERS INT'L MEDICAL INSURER TO SHOW CAUSE", "body": "A Circuit Court judge ordered\nthe company that insured the solvency of International Medical\nCentres Inc to show cause why it should not honour its contract\nwith International, according to Florida's Department of\nInsurance, which had filed a petition on the matter.\n As previously reported, International, the largest health\nmaintenance organisation in Florida was declared insolvent on\nMay 14. Federal regulators had also told the company its\nMedicare contract would be terminated on July 31 because of the\ncompany's financial and management problems.\n Michelle McLawhorn, Florida Department spokeswoman, said\nInternational's insurer, State Mutual Life Assurance Co of\nAmerica, had made clear it would fight activation of the policy\nbecause International did not provide it with accurate\nfinancial records. State Mutual could not be reached for\ncomment.\n McLawhorn said it was not yet known how many creditors\nInternational had or how big its debt was. The court gave State\nMutual 20 days to show why it should not be obliged to pay\nclaims against the solvency policy.\n REUTER\n\u0003", "date": "18-JUN-1987 21:56:40.46", "places": [ "usa" ], "id": "19026" }, { "title": "BRAZIL RULING PARTY TO DECIDE ON PRESIDENTIAL TERM", "body": "The ruling Brazilian Democratic\nMovement Party (PMDB) will hold a national convention on July\n18 and 19 to discuss the length of the Presidential term, a\nPMDB spokesman said.\n Although the country's constitution allows for a six-year\nterm, Sarney said he would remain only five years after he came\nto power in 1984.\n The Constituent Assembly is drawing up a new constitution\nand severe economic problems have increased the pressure on it\nto call early elections. A faction of the PMDB favours a poll\nin November next year.\n REUTER\n\u0003", "date": "18-JUN-1987 22:26:37.58", "places": [ "brazil" ], "id": "19027" }, { "title": "FED DATA SUGGEST NO CHANGE IN MONETARY POLICY", "body": "New U.S. Banking data suggest the\nFederal Reserve is guiding monetary policy along a steady path\nand is not signalling any imminent change of course, economists\nsaid.\n But they also said that if money supply growth remains\nweak, as this week's unexpected eight billion dlr M-1 decline\nsuggests it may, this could influence the Fed to loosen its\ncredit reins and move toward a more accommodative monetary\npolicy.\n A Reuter survey of 17 money market economists produced a\nforecast of a 600 mln dlr M-1 decline for the week ended June\n8, with estimates ranging from a gain of one billion dlrs to a\ndecline of four billion. Instead, M-1 fell eight billion dlrs\nto 745.7 billion dlrs at a seasonally adjusted annual rate.\n Coming on the heels of a 4.3 billion decrease in M-1 for\nthe week ended June 1, this means the nation's money supply has\nfallen more than 12 billion dlrs in the past two weeks,\neconomists said.\n \"M-1 has hit an air pocket of weakness,\" said Bill Sullivan\nof Dean Witter Reynolds Inc.\n While M-1 may have lost its significance as an indicator of\neconomic growth, Sullivan said Fed officials might be concerned\nthe latest drop in M-1 means another month of sluggish growth\nin the broader monetary aggregates, M-2 and M-3, which are seen\nas better gauges of economic growth.\n Latest monthly M-2 and M-3 data showed that as of May, both\nmeasures were growing at rates below the bottom of the Fed's\n5-1/2 to 8-1/2 pct target ranges.\n If money growth does not accelerate, Fed officials,\nconcerned that this indicates economic growth is flagging,\ncould turn toward easier monetary policy, economists said.\n \"Does this mean that the Fed abandons its current open\nmarket position? No,\" Sullivan said. \"But does this mean the end\nof tightening for the time being? Definitely yes.\"\n Economists said average adjusted discount window borrowings\nof 385 mln dlrs for the latest two-week bank statement period\nwere lower than they had expected. Most believed the Fed had\ntargetted a two-week borrowings average of around 500 mln dlrs.\n But they said that if it had not been for a large one-day\nnet miss in the Fed's reserve projections, the higher\nborrowings target would probably have been reached.\n A drop in May U.S. Housing starts and continued weakness in\nauto sales show key sectors of the U.S. Economy are lagging,\nwhile a recent modest 0.3 pct gain in May producer prices has\nhelped dispel inflation fears, Slifer said.\n \"If this continues, we can entertain the notion of Fed\neasing at some point,\" he said.\n Other economists said the Fed would probably pay little\nattention to weak money supply growth. \"It has been a number of\nyears since M-1 has given good signs of what's going on in the\neconomy,\" one said. \"I don't think M-1 shows that the economy is\nfalling apart and the Fed should ease.\"\n Economists agreed a stable dollar will continue to be a\nprerequisite for any move by the Fed toward easier monetary\npolicy.\n They said the Fed is reluctant to lower short-term rates\nfor fear this would spur expectations of a weaker dollar and\nhigher inflation which would push up long-term yields and choke\noff econmomic growth.\n But Sullivan said the dollar has been steady since late\nApril. \"The Fed has to determine if this represents a\nfundamental change for the dollar. If it does, then this gives\nthem more room to ease,\" he said.\n REUTER\n\u0003", "date": "18-JUN-1987 22:33:01.85", "topics": [ "money-supply", "money-fx", "dlr" ], "places": [ "usa" ], "id": "19028" }, { "title": "NATIONAL SEMICONDUCTOR CORP <NSM> FOURTH QUARTER", "body": "Shr profit six cents vs loss 10\n Net profit 8.1 mln dlrs vs loss 7.1 mln\n Sales 511.9 mln vs 397.8 mln\n Avg shrs 97.0 mln vs 90.5 mln\n YEAR\n Shr loss 38 cents vs loss 1.10 dlrs\n Net loss 24.6 mln dlrs vs loss 91.5 mln\n Sales 1.87 billion vs 1.48 billion\n Avg shrs 91.7 mln vs 89.8 mln\n NOTE - Current year figure includes previously announced 15\nmln dlr restructuring charge.\n Figures include extraordinary credit from tax benefit of\n4.2 mln dlrs in quarter vs 2.3 mln a year earlier and 4.2 mln\nfor year vs 5.6 mln year earlier.\n The 1986 year net reflects 51.2 mln dlr gain from\ncumulative effect of accounting change.\n REUTER\n\u0003", "date": "18-JUN-1987 22:34:58.79", "topics": [ "earn" ], "places": [ "usa" ], "id": "19029" }, { "title": "NATIONAL SEMICONDUCTOR <NSM> SEES IMPROVED YEAR", "body": "National SemiConductor Corp,\nwhich earlier reported a profitable fiscal fourth quarter after\na year ago loss, said it expects improved financial performance\nduring its new fiscal year.\n The company reported a profit of 8.1 mln dlrs in the\nquarter ended May 31, after a loss of 7.1 mln dlrs in the year\nago period.\n The company said orders for its core businesses have\nimproved, adding \"Our strong balance sheet and the improved\nbusiness environment should enable us to improve our financial\nperformance during our new fiscal year.\"\n The company said that during the fourth quarter both its\nsemiconductor group and its information systems group had\nhigher sales and improved operating performance than in the\nprior quarter and the year-earlier quarter.\n REUTER\n\u0003", "date": "18-JUN-1987 23:12:09.91", "places": [ "usa" ], "id": "19030" }, { "title": "OKLAHOMA THRIFT PLACED UNDER RECEIVERSHIP", "body": "The Federal Home Loan Bank Board\n(FHLBB) today placed <Investors Federal Bank> of El Reno,\nOklahoma under receivership and transferred its 97.8 mln dlrs\nin assets to the <Investors Savings and Loan Association>.\n An FHLBB statement said the thrift was insolvent and \"had\nsubstantially dissipated its assets,\" mainly by participating in\nlarge commercial real estate developments. It said it violated\nfederal laws and regulations on loan documentation, loans to\ndirectors and conflict of interest. The sucessor organisation\nis a federal savings and loan to be managed under contract by\nSunwood Management Corp of Parker, Colorado.\n REUTER\n\u0003", "date": "18-JUN-1987 23:19:19.77", "places": [ "usa" ], "id": "19031" }, { "title": "MITSUBISHI ELECTRIC TO ASSEMBLE PC'S IN U.S.", "body": "Mitsubishi Electric Corp <MIET.T> plans to\nassemble personal computers in the U.S. To counteract the\nimposition of a 100 pct import tax in April and a drop in\nprofits due to the yen's appreciation against the dollar, a\ncompany spokesman told Reuters.\n It will assemble 16-bit MP-286 and 32-bit MP-386 desk-top\ncomputers at its wholly-owned computer and computer-related\nequipment sales unit <Mitsubishi Electronics America Inc> in\nTorrance, California at a rate if 10,000 a month, he said. This\nwill include 2,000 TO 3,000 to be sold in the U.S. Under the\nMitsubishi name, he said without giving more details.\n REUTER\n\u0003", "date": "18-JUN-1987 23:26:43.72", "places": [ "japan", "usa" ], "id": "19032" }, { "title": "SHULTZ WARNS ASEAN OF LOOMING TRADE PROBLEM", "body": "U.S. Secretary of State George Shultz\nwarned members of the Association of Southeast Asian Nations\n(ASEAN) they could no longer rely on increased exports to the\nU.S. For growth.\n \"Given the importance of exports, particularly export\nmanufactures, to all of your countries, you are going to have\nto work hard to diversify your markets,\" he said.\n \"While you may be able to maintain your current market share\nin the U.S., You clearly will not be able to look to the U.S.\nTo take major increases in your exports,\" he added.\n Shultz told the foreign ministers of Brunei, Indonesia,\nMalaysia, the Philippines, Singapore and Thailand the U.S.\nWould cut its huge foreign trade deficit more rapidly than many\nnow believed.\n He said ASEAN's looming trade problems would not\nnecessarily stem from protectionist legislation now being\ncontemplated by Congress, \"but simply because of the adjustments\nthe U.S. Economy will have to make in order to service our\nlarge and growing external debt.\"\n Shultz said the U.S. Deficit had resulted not from falling\nexports but from higher imports that had fuelled world growth.\n REUTER\n\u0003", "date": "18-JUN-1987 23:30:02.35", "topics": [ "trade" ], "places": [ "usa", "singapore", "brunei", "indonesia", "malaysia", "philippines", "thailand" ], "id": "19033" }, { "title": "AUSTRALIA'S OPPOSITION FACES SETBACK ON TAX PLAN", "body": "The conservative opposition, already\nfighting an uphill election battle, now faces controversy in\nits own ranks over a possible error in its major tax cutting\nprogram, economists said.\n Professor Michael Porter, architect of the tax plan,\ndeclined to refute Treasurer Paul Keating's charge that the\nopposition miscalculated tax and expenditure cuts by several\nbillion dollars. Economists said the opposition, trailing\nbehind Labour in opinion polls, would find its chances further\ndiminished if its tax policy was a miscalculation.\n The tax plan, unveiled by opposition leader John Howard\nlast week, is the cornerstone of the Liberal Party's economic\nstrategy to oust the Labour Party in the July 11 poll.\n Keating has said the Howard tax plan would sharply increase\nthe budget deficit to more than nine billion dlrs and severely\ndamage Australia's economy, already overburdened with balance\nof payments and foreign debt problems.\n In his mini-budget on May 13, Keating said the budget\ndeficit for the year ending June 1988 would be between two and\nthree billion dlrs.\n Porter, a key member of the opposition economic think tank,\nsaid he played a leading role in formulating the tax plan but\nnot Howard's proposed expenditure savings, which Keating\nclaimed were distorted through double counting.\n Some opposition members said there appeared to be errors,\nbut a Liberal Party spokesman refused comment, saying the\npackage was being reexamined.\n \"The whole thing is so deceitful,\" Prime Minister Bob Hawke\nsaid in a radio interview. \"Howard has made a mess of it. If\nthey can't govern themselves, how can they expect to govern the\ncountry?\"\n Hawke, who is seeking a third term, said the opposition had\nmade the election one of the easiest for him.\n \"I've never felt more physically and mentally relaxed\n(during an election). We've no problems at all,\" he said.\n The latest public opinion poll, published in the Melbourne\nSun newspaper, showed Labour was leading the opposition by 12\npoints, indicating a 66-seat majority for Hawke in parliament.\n The Election Commission announced last night that 613\ncandidates would contest the 148-seat House of Representatives,\nwhile 255 candidates would fight for the 76 Senate seats.\n REUTER\n\u0003", "date": "18-JUN-1987 23:52:30.35", "places": [ "australia" ], "id": "19034" }, { "title": "FUJITSU, FUJIAN PROVINCE FORM JOINT VENTURE", "body": "Fujitsu Ltd <ITSU.T> said it signed a\njoint venture agreement with the Post and Telecommunication\nAdministration Bureau of Fujian Province (PTABF), China to\ndevelop and sell software for the Fujitsu-designed digital\ntelephone switching machine FETEX-150.\n It said in a statement the joint company, <Fujian Fujitsu\nCommunications Software Ltd> located in Fuzhou city, was\ncapitalised at about 10 mln yuan and was owned 51 pct by PTABF\nand 49 pct by Fujitsu.\n It would create about 20 local jobs and has a target of\nannual software sales of 330 mln yen in 1992, Fujitsu said.\n REUTER\n\u0003", "date": "18-JUN-1987 23:58:21.89", "places": [ "japan" ], "id": "19035" }, { "title": "MITSUI, ALLIANCE IN FUND MANAGEMENT TIE-UP", "body": "<Mitsui Investment Management Co Ltd>\n(MIMCL) and <Alliance Capital Management International Inc>\n(ACMII) will sign an agreement late this month to cooperate in\ninternational fund management, a ACMII spokesman said.\n MIMCL, 55-pct controlled by affiliated companies of Mitsui\nBank Ltd <MIBT.T>, will reconsign some of its foreign\nsecurities investment orders to ACMII, he told Reuters.\n ACMII, the London-based 100 pct-owned subsidiary of\n<Alliance Capital Management Corp> of New York, will reconsign\nsome of its foreign orders to MIMCL and instruct MIMCL in\ninternational fund management techniques, the spokesman said.\n Both firms were among 56 investment advisory companies\ngranted Japanese government approval for discretionary fund\nmanagement on June 10, the Mitsui spokesman said.\n Alliance Capital Management Corp is the world's biggest\nfirm devoted exclusively to fund management and has 35 billion\ndlrs in funds, he said.\n Mitsui Investment Co Ltd, established two years ago,\ncontrols about 800 mln dlrs, 80 pct of which is invested in\nJapanese equities.\n REUTER\n\u0003", "date": "18-JUN-1987 23:59:08.26", "places": [ "japan" ], "id": "19036" }, { "title": "INDONESIA RAISES STAKE IN ALUMINIUM PLANT", "body": "Indonesia has increased its share in a\n434-billion-yen aluminium smelter joint venture with Japan from\n25 to 37 pct, Asahan Project Authority director A.R. Suhud\nsaid.\n The Japanese Export-Import Bank said Indonesia had raised\nits share of (P.T. Indonesia Asahan Aluminium) company,\ncapitalised in 1975 at 91 billion, by swapping 32 billion yen\nin government loans to the company for an equity stake.\n The Japanese shareholders, the Overseas Economic\nCooperation Fund and 12 companies, are to invest another 24\nbillion yen raising capitalisation to 147 billion yen.\n Asahan reported total losses of 97.6 billion rupiah between\n1982 and 1985. Suhud said much of the company's 320 billion yen\ndebt had been caused by falling tin prices and the appreciation\nof the yen against the U.S. Dollar. Aluminium is sold in\ndollars.\n Prices improved from 1,150 dlrs a tonne six months ago to\nabout 1,450 dlrs today. The plant is supposed to break even if\nprices stay at 1,500 dlrs a tonne.\n Sahud said the plant, with a capacity of 220,000 tonnes a\nyear, would probably lose money again in 1987. The plant,\nsituated in North Sumatra, produces mostly for Japan.\n REUTER\n\u0003", "date": "19-JUN-1987 00:05:03.32", "topics": [ "alum" ], "places": [ "indonesia" ], "id": "19037" }, { "title": "PHILIPPINE STOCKS SOAR TO NEW HIGHS, RECORD VOLUME", "body": "Investors on Philippine stock markets\nhave shrugged off growing communist activity in the cities to\npush share prices to all-time highs on record turnover, brokers\nsaid.\n Regularly heavy trading of more than one billion shares a\nday has sent the Manila exchange's composite index soaring to\n775.9 from 577.2 points in just over three weeks.\n Brokers described recent trading as \"frantic\" and \"hectic\" as\ntrading records were smashed day after day.\n A total 2.6 billion shares worth 259.4 million pesos\nchanged hands on the main Manila and the less important Makati\nexchanges yesterday, with much of the activity among centavo\npriced stocks, brokers said. The turnover was more than double\nthe record of 1.1 billion shares worth 118.1 million pesos set\non Wednesday.\n Brokers said rising gold prices caused mining shares to\nshoot up three weeks ago, and other sectors followed. Share\nprices continued their rise even when the gold price fell back\nto 450 dlrs an ounce, due to rising confidence in President\nCorazon Aquino's handling of the economy, they said.\n Brokers said Aquino's handling of the 18-year-old communist\ninsurgency and the maintenance of relatively low interest rates\nalso contributed to the rise.\n Blue chip stocks, such as those of San Miguel Corp and\nPhilippine Long Distance Telephone Co (PLDT), have risen 25 pct\nin three weeks, and the trend is upward in the medium term\nalthough a temporary correction is overdue, they said.\n Since the surge began on May 26, Manila's Mining index has\nrisen to 5,700.4 points from 4,042.4, its commercial and\nindustrial index has shot up to 881.0 from 694.9 points, and\nthe oils indicator has increased to 4.1 from 2.9 points.\n Market activity has been rising in spurts since Ferdinand\nMarcos was replaced by Aquino 16 months ago.\n One broker said he thought the Philippine stock market \"may\nat last have come of age.\"\n Wilson Sy, president of Prudential Securities, a local\nstockbroking firm with Hong Kong affiliations, told Reuters,\n\"Barring any unforeseen political events you can bet on the\nPhilippine market. It has shrugged off the communist inroads\ninto Manila.\"\n Assassins have killed 52 policemen, soldiers and security\nguards in the capital this year.\n Communist hitmen known as sparrows have claimed they killed\n22 of them.\n Sy said Philippine stocks were undervalued in world terms\nwith price-earnings ratios often half those in Hong Kong and\none-sixth those in Japan. He said PLDT, which is also U.S.\nListed, has a price-earnings ratio of about nine.\n Sy predicted Manila's composite index would rise beyond\n1,000 points from its current 775.9 mark by year-end.\n Other brokers were more cautious, saying Aquino had to\nimprove peace and order before investors could treat the\nPhilippines as they would Hong Kong or Tokyo.\n One broker said he believed about 30 pct of the money going\ninto stocks was now foreign, much of it from fund managers and\ntheir agents based in Hong Kong and New York.\n Manila Stock Exchange chairman Robert Coyuito told Reuters,\n\"If the peace and order situation really improved the market\ncould move beyond a price-earnings ratio of 20 times.\"\n \"But all depends on how Congress performs and the local\nelections go,\" he said.\n A new two-chamber legislature was elected last month and is\ndue to sit on July 27. Local elections are scheduled for\nNovember.\n PLDT shares closed at 630 pesos a share yesterday, 30 pesos\nabove Wednesday's record close. PLDT share prices have risen\nabout nine-fold in 18 months.\n San Miguel shares closed at 190 pesos, also a historic\nhigh, brokers said.\n REUTER\n\u0003", "date": "19-JUN-1987 00:12:36.11", "places": [ "philippines" ], "id": "19038" }, { "title": "CANADIAN TAX REFORM CALLED AN IMPORTANT STEP", "body": "Canada's sweeping tax reform package,\nannounced today, is an important step towards a fairer system,\nbut is not as bold a revamp of the tax structure as some had\nexpected, economists and business leaders said.\n \"It's the biggest step towards tax reform we've taken in a\ngreat many years,\" Merrill Lynch Canada Inc chief economist\nMichael Manford told Reuters.\n \"But the system is the same old system with a lot of\nimportant changes, as opposed to a brand new system,\" he added.\n(See spotlight index page on ECRA)\n Manford said changes introduced by Finance Minister Michael\nWilson did not go far enough in simplifying the federal tax\nsystem. They represent evolutionary rather than revolutionary\nreform.\n \"Overall, I thought that it was a more timid step than we\nwere led to believe,\" he said.\n Wilson's move to increase money collected from corporations\nwhile cutting individual taxes \"is probably an acceptable shift,\"\nsaid Bill James, president of Falconbridge Ltd, an\ninternational mining company.\n Wilson spread corporate tax increases fairly evenly across\nthe corporate sector, James said. \"So it's not going to hit\nanyone too hard and we will remain competitive.\"\n Wilson said in his speech to the House of Commons that\nCanada's tax system needed to be changed to compete with\nsweeping reforms in the United States last year.\n \"The critical thing on the corporate side is that Wilson\nmoved most of the taxes much closer to the U.S. System,\" Manford\nsaid.\n The federal government increased taxes paid by corporations\nby about five billion dlrs over the next five years, but\nlowered personal taxes by 11 billion dlrs in the same period.\n Despite collecting more corporate taxes, Wilson was able to\nlower the tax rate on individual companies by removing many\nspecial tax exemptions and broadening the tax base.\n Wilson's plan also reduced the capital cost allowance, used\nby companies to write off major investments, which some\nbusiness spokesmen said will hurt business in the long run.\n \"That will affect some investment decisions negatively,\" said\nLaurent Thiebeault, Canadian Manufacturers Association\npresident.\n Tax analysts said for some industries it will take several\ndays to assess the impact of the capital cost allowance\nreductions that will be made over a number of years.\n As anticipated, Canada's opposition parties signalled they\nintend to fight the new tax measures as they are introduced in\nParliament over the next few months.\n \"It's not tax reform, it's a tax grab,\" said Liberal leader\nJohn Turner.\n Turner labelled changes to the federal sales tax \"a money\nmachine for the minister of finance.\"\n Wilson broadened the federal sales tax to include\nadditional products and also promised to introduce a\nbroad-based, multi-staged sales tax.\n \"It's not at all a fair package and Canadians are going to\nsee that very quickly,\" New Democratic Party leader Ed Broadbent\nsaid.\n However, economist Manford said Wilson acted wisely to\nprotect lower income Canadians by providing tax credits that\nwill cut 850,000 people from the tax rolls.\n REUTER\n\u0003", "date": "19-JUN-1987 01:04:05.45", "places": [ "canada" ], "id": "19039" }, { "title": "TAIWAN DOLLAR AND RESERVES SEEN RISING MORE SLOWLY", "body": "Recent government moves to curb capital\ninflow have temporarily helped to slow the rise of Taiwan's\nforeign exchange reserves and to stabilise the local dollar\nagainst the U.S. Currency, officials and bankers said.\n Central bank governor Chang Chi-Cheng told reporters the\nreserves rose only about 500 mln U.S. Dlrs in the past two\nweeks and the local dollar appreciated more slowly against the\nU.S. Dollar.\n Chang said, \"The pace of increase in our reserves is much\nslower now than before and our currency is getting more stable.\"\nHe said the reserves, mainly the result of the trade surplus\nwith the U.S., Rose at the rate of two to three billion U.S.\nDlrs a month between January and May.\n The