reuters-21578-json

[ { "title": "IF DOLLAR FOLLOWS WALL STREET JAPANESE WILL DIVEST", "body": "If the dollar goes the way of Wall Street,\nJapanese will finally move out of dollar investments in a\nserious way, Japan investment managers say.\n The Japanese, the dominant foreign investors in U.S. Dollar\nsecurities, have already sold U.S. Equities.\n But \"if the dollar falls steeply, which did not happen\nyesterday, Japanese investors will definitely try to withdraw\nsignificant funds from U.S. Shares,\" said Akira Kawakami, deputy\nmanager of Nomura Investment Trust and Management Co Ltd's\ninternational investment department.\n An unstable, lower dollar would also affect Japanese\ninvestment in U.S. Bonds. \"Japan-U.S. Interest rate\ndifferentials, which currently look wide enough, mean nothing\nin the absence of dollar stability,\" said Kawakami.\n U.S. Bonds could benefit due to a gloomy economic picture\nfollowing the estimated huge losses in stocks by major U.S.\nInstitutional and individual investors, he said. The effect\nshould be to rule out any U.S. Interest rate rise.\n But most Japanese investors in U.S. Bonds are still wiating\nto see if the dollar really is stable, he said. The dollar was\nholding firm at above 142 yen on Tuesday morning.\n \"Although Japanese investors sold huge amounts of stocks in\nNew York yesterday, most are still looking for chances to\nlighten their U.S. Stock inventories,\" Hiromitsu Sunada, manager\nof Meiji Mutual Life Insurance Co's international investment\ndepartment said.\n Their sales helped send Wall Street stocks down 508 points\nto 1,738, the market's biggest percentage drop since 1914.\n \"Investment in U.S. Stocks and bonds is difficult,\nconsidering the dangers,\" said Katsuhiko Okiyama, deputy general\nmanager and chief adviser of Yamaichi Securities Co Ltd's fixed\nincome securities marketing group.\n Japanese investment at home could start to pick up once\nmarkets have stopped reacting to Wall Street, the managers\nsaid. The Tokyo yen bond market is likely to stabilise in one\nor two weeks, which is what investors have been waiting for.\nThe bottom for yen bonds should be around a 6.3 pct yield for\nthe 5.1 pct 89th bond, they said.\n \"The basic background which has supported the stocks and\nbonds markets has not changed,\" said Norio Okutsu, assistant\ngeneral manager of Nikko Securities' bond department. \"But new\noutflows of funds to the U.S. Will be decreasing.\" However,\nthis was already evident three months ago, he said.\n REUTER\n\u0003", "date": "19-OCT-1987 23:49:31.45", "topics": [ "money-fx" ], "places": [ "japan", "usa" ], "id": "20001" }, { "title": "NEC TO SUPPLY CHIP TECHNOLOGY TO FRANCE", "body": "NEC Corp <NIPN.T> will supply <Matra-Harris\nSemiconducteurs SA(A)> (MHS) of France with manufacturing\ntechnology for 16-bit microchips used in microcomputers, an NEC\nspokesman said.\n MHS, a joint venture between France's MATRA <MATR.PA> and\nHarris Corp <HRS> of the U.S., Will manufacture and market\nglobally a microcomputer based on NEC's Micron PD 78312 and\nMicron PD78310 chips.\n MHS will pay NEC an undisclosed sum for the technology.\n REUTER\n\u0003", "date": "19-OCT-1987 23:58:39.11", "places": [ "japan", "france" ], "id": "20002" }, { "title": "JAPAN TAKES WAIT-AND-SEE STANCE ON STOCKS-OFFICIAL", "body": "The Finance Ministry will take a\nwait-and-see stance on Tokyo Stock Exchange movement, although\nit is gravely concerned about the sharp fall in stock prices, a\nsenior Ministry official said.\n The official, who declined to be identified, told reporters\nthe 7.3 pct drop in Tokyo stock prices this morning was caused\nprimarily by psychological factors following the 22.5 pct fall\nin New York stock prices overnight.\n He said the Ministry is in close contact with the Tokyo\nStock Exchange, but has no plans yet to take any specific\nmeasures regarding the fall.\n REUTER\n\u0003", "date": "19-OCT-1987 23:59:09.79", "places": [ "japan" ], "id": "20003" }, { "title": "MEXICAN STOCKMARKET HEAD SEES NO CRISIS AFTER FALL", "body": "The outlook for Mexico's economy and\nstockmarket remains optimistic despite the market's worst-ever\nfall of 52,671.56 points on Monday, the president of the\nMexican stock exchange, Manuel Somoza, said.\n He said the 16.51 pct drop in the exchange's index\nreflected a \"totally emotional\" reaction to Monday's fall on the\nNew York stock exchange and was not a reflection of a new\ncrisis for the Mexican economy or the stockmarket.\"\n He was speaking at a news conference here on Monday.\n \"We think that after the psycological effect the market will\ntend to stabilize itself,\" Somoza said.\n Somoza said he based his optimism on the relatively bright\noutlook of the Mexican economy due to increased income from oil\nand non-petroleum exports, record high foreign reserves and\ngovernment efforts to promote a modernization of the industrial\nsector.\n \"The U.S. Economy is not the same as the Mexican,\" he said.\nHe did not say when he thought the market would stabilize.\n He said traders had originally expected the market to level\nout on Monday after last week's profit taking pulled the index\ndown 44,207 points. \n News of the \"enormous problems\" in New York, which reached\nMexico City before the local market opened, caused a flurry of\nselling on the Mexican exchange, Somoza said.\n The stockmarket had risen 629 pct over the year by the end\nof September.\n Somoza said Monday's light volume of 15.3 mln shares\ncompared to an average of 53 mln was an indication the day's\ndrop was not a sign of a major collapse.\n He also denied rumours that the day's loss was the result\nof government and brokerage house manipulation.\n REUTER\n\u0003", "date": "20-OCT-1987 00:08:10.16", "places": [ "mexico" ], "id": "20004" }, { "title": "ASIAN COCOA PRODUCERS EXPAND DESPITE CRITICS", "body": "Asian cocoa producers are expanding\noutput despite depressed world prices and they dismiss\nsuggestions in the London market that their cocoa is inferior.\n \"Leading cocoa producers are trying to protect their market\nfrom our product,\" said a spokesman for Indonesia's directorate\ngeneral of plantations. \"We're happy about our long-term future.\"\n Malaysian growers said they would try to expand sales in\nAsia and the United States if Malaysian cocoa was not suitable\nfor European tastes.\n They were responding to comments by London traders that\nlarge tonnages of unwanted cocoa beans from Malaysia, Indonesia\nand Papua New Guinea (PNG) were helping to depress cocoa\nprices.\n London traders said the Asian cocoa was considered\nunsuitable for western palates because of an acrid odour and a\nhigh level of free fatty acids.\n Ng Siew Kee, the chairman of Malaysia's Cocoa Growers'\nCouncil, said Malaysia should expand its sales to Asia and the\nUnited States if it did not produce a type suitable for Western\nEurope.\n A spokesman for the PNG Cocoa Industry Board said the\nLondon market was mistaken if it linked PNG cocoa with\nhigh-acid Malaysian and Indonesian beans.\n \"When the market is declining, buyers seize on anything to\ntalk down prices,\" the spokesman said.\n He said that PNG could sell whatever cocoa it produces.\n PNG exported 33,000 tonnes of cocoa in the 1986/87 cocoa\nyear ending September 30, of which nearly 50 pct was exported\nto West Germany, 16 pct to the U.S. And the rest to the\nNetherlands and Britain.\n The Indonesia spokesman, an Agriculture Ministry official\nwho wished not to be identified, said Indonesia had no problem\nwith quality and would continue to expand sales. He described\ncriticism of the quality of Indonesian beans as \"trade politics\"\nand said Jakarta's traditional links with Dutch buyers meant it\ndid not have any difficulty with exports.\n Indonesia and Malaysia, Asia's two biggest commodity\nproducers, are expanding cocoa output and are both outside the\nInternational Cocoa Organization (ICCO).\n Officials have said Malaysian production is expected to\ntotal 150,000 to 155,000 tonnes in calendar 1987.\n This is up from 131,000 tonnes in 1986, partly because of\nthe end of a three-year drought in Sabah, the country's largest\ncocoa growing area.\n Production of Indonesian cocoa beans tripled to 31,600\ntonnes in calendar 1986 from 10,284 tonnes in 1980. Output is\nprojected to rise to 50,000 tonnes in 1988 from 38,000 tonnes\nthis year as young trees mature.\n Both Malaysia and Indonesia are low cost producers and\ntraders said they could last out low prices longer than West\nAfrican countries.\n According to one Kuala Lumpur trader, world prices would\nhave to fall another 1,000 ringgit per tonne (about 250 stg) to\nmake cocoa production in Malaysia uneconomic.\n Some traders believe the main quality problem is with\nharvesting and fermentation techniques.\n One trader said Malaysian cocoa is virtually\nindistinguishable from West African output if treated in the\nsame way but this is not possible on the larger Malaysian\nestates.\n REUTER\n\u0003", "date": "20-OCT-1987 00:15:04.00", "topics": [ "cocoa" ], "places": [ "indonesia", "uk", "malaysia", "usa", "papua-new-guinea", "west-germany", "netherlands" ], "id": "20005" }, { "title": "Tokyo stock index down 2,210.19 points to 23,536.37 in early afternoon\n", "date": "20-OCT-1987 00:20:44.23", "id": "20006" }, { "title": "JAPANESE PREMIER SAYS HE WATCHING STOCK SITUATION", "body": "Japanese Prime Minister Yasuhiro Nakasone\nwas quoted by Kyodo News Service as saying he was watching the\nstock market situation.\n \"We must watch things a little longer. New York is down 22\npct, London 10 pct, while compared to this Japan is seven pct\ndown,\" Kyodo quoted him as telling reporters.\n Asked if he agreed with analysts who called the stock\nsell-off \"Black Monday,\" Nakasone said: \"Compared with times past,\neconomics have changed completely.\" He rejected a comparison\nbetween the present situation and the stock market collapse of\n1929 and the recession which followed.\n REUTER\n\u0003", "date": "20-OCT-1987 00:30:35.73", "places": [ "japan" ], "id": "20007" }, { "title": "MALAYSIA ADVISED TO RAISE CRUDE OIL OUTPUT IN 1988", "body": "Malaysia's national oil company,\nPetronas, has advised the government to raise crude oil output\nto 540,000 barrels a day (bpd) in 1988 from a current 500,000\nbpd, a senior company official said.\n \"We have the capacity to produce the amount,\" Rastam Hadi,\nPetronas's Vice-President for Upstream Sector said.\n The government will announce its decision on Friday when it\nunveils the country's budget. Malaysia raised output this month\nto current levels from 420,000 bpd after reviewing the world\noil market. In May, Malaysia cut output to 420,000 bpd from\n459,000 in response to a call by OPEC to boost prices.\n REUTER\n\u0003", "date": "20-OCT-1987 00:48:57.47", "topics": [ "crude" ], "organisations": [ "opec" ], "places": [ "malaysia" ], "id": "20008" }, { "title": "Sumita welcomes U.S.-West German joint confirmation of Louvre accord\n", "date": "20-OCT-1987 02:15:10.98", "topics": [ "money-fx" ], "places": [ "usa", "west-germany" ], "id": "20009" }, { "title": "Tokyo stock index slumps 14.9 pct to close at 21,910.08\n", "date": "20-OCT-1987 02:18:33.93", "id": "20010" }, { "title": "Sumita says world stockmarkets excessively concerned about economic future\n", "date": "20-OCT-1987 02:20:31.11", "id": "20011" }, { "title": "SUMITA WELCOMES U.S.-JAPAN AGREEMENT ON LOUVRE", "body": "Bank of Japan governor Satoshi Sumita said\nhe welcomed Monday's U.S. And West German joint confirmation of\ntheir commitment to the Louvre accord.\n Sumita said in a statement that world stockmarkets were\nexcessively concerned about the economic future.\n The Bank of Japan will continue to adhere to a system of\npolicy coordination based upon the Louvre accord of February,\nhe said. The accord called for stability in foreign exchange\nrates. Exchange rates generally are regaining stability and the\neconomies of industrialised nations are heading for a steady\nrecovery, he said.\n REUTER\n\u0003", "date": "20-OCT-1987 02:29:24.58", "topics": [ "money-fx" ], "places": [ "japan", "usa", "west-germany" ], "id": "20012" }, { "title": "NEW ZEALAND WILL CONTINUE FIRM MONETARY POLICY", "body": "The Reserve Bank of New Zealand said\nthere was no evidence to suggest the fall in share prices had\naffected financial stability and it would maintain its firm\nmonetary policy.\n Governor Spencer Russell said in a statement the central\nbank did not accept arguments that the battle against inflation\nshould now take a low second priority after the sharemarket's\nplunge.\n Russell said the bank had two statutory responsibilities --\nto implement the government's monetary policy to bring down\ninflation, and to ensure the financial sector's stability.\n \"Unless the bank is directed otherwise, the firm monetary\npolicy will continue because it is very much in the national\ninterest that it do so,\" he said.\n \"And there is yet no evidence available to the bank to\nsuggest that the fall in share prices has affected the\nstability of the financial sector.\"\n The Barclays share index fell a record 504.75 points to\n2,925,26 on Tuesday, a decline of 14.7 pct.\n REUTER\n\u0003", "date": "20-OCT-1987 02:31:05.43", "topics": [ "money-fx" ], "places": [ "new-zealand" ], "id": "20013" }, { "title": "Tokyo Stock Exchange has no plan to suspend trading on Wednesday-president\n", "date": "20-OCT-1987 02:51:54.24", "id": "20014" }, { "title": "Tokyo Stock Exchange to ease margin requirements, exchange president says\n", "date": "20-OCT-1987 02:52:04.37", "id": "20015" }, { "title": "Japan September M-2 plus CD money supply rises 11.1 pct year on year (Aug 11.0)\n", "date": "20-OCT-1987 03:02:08.52", "topics": [ "money-supply" ], "places": [ "japan" ], "id": "20016" }, { "title": "BAKER HEADS HOME AFTER CUTTING SHORT EUROPE TRIP - SWEDISH FINANCE MINISTRY\n", "date": "20-OCT-1987 03:12:36.51", "id": "20017" }, { "title": "TANZANIA SELLS MAIZE TO MALAWI, MOZAMBIQUE, ZAIRE", "body": "Tanzania has arranged to sell\n53,000 tonnes of maize to Malawi, Mozambique and Zaire, radio\nTanzania said.\n The radio said the grain would be delivered soon, but gave\nno details about the value of the sales.\n Tanzania is expecting a record maize harvest of 2.3 mln\ntonnes in the 1987/88 financial year ending June, up from a\nbumper crop of 2.1 mln in 1986/87.\n REUTER\n\u0003", "date": "20-OCT-1987 03:14:08.12", "topics": [ "grain", "corn" ], "places": [ "tanzania", "malawi", "mozambique", "zaire" ], "id": "20018" }, { "title": "TANZANIAN COTTON THREATENED BY LACK OF STORAGE", "body": "About 60,000 tonnes of harvested\nraw cotton may be spoiled by rain in Tanzania's northern\nShinyanga region because it is stored in the open or in crude\nvillage sheds, radio Tanzania reported.\n The cotton, worth one billion shillings, cannot be moved to\nginneries in the region because most mill warehouses are full.\nMany mills are not working because of a lack of spare parts, it\nadded.\n Agriculture Ministry officials have forecast a 1987/88\ncotton harvest of about 200,000 tonnes, down from 215,000 in\n1986/87.\n REUTER\n\u0003", "date": "20-OCT-1987 03:14:33.15", "topics": [ "cotton" ], "places": [ "tanzania" ], "id": "20019" }, { "title": "TOKYO STOCK EXCHANGE WILL NOT SUSPEND TRADING", "body": "Tokyo Stock Exchange president Michio\nTakeuchi said the exchange has no immediate plans to suspend\ntrading to cool off panic stock selling.\n However, he said Tokyo may consider such a measure if the\nLondon and New York exchanges are closed overnight.\n \"I don't think it will happen,\" he added.\n He also told reporters the exchange will relax margin\nrequirements effective on Wednesday to encourage stock buying.\n Takeuchi said the sharp fall in stock prices was mostly due\nto psychological factors.\n \"We need to keep close watch on market movement but we\nexpect the market will stabilise soon,\" he said, adding that\nindividual investors should remain calm. \"It is advisable to\nwait for an autonomous recovery of the market,\" he said.\n The margin requirement in cash will be reduced to 50 pct\nfrom 70 pct while the margin collateral requirement in equity\nwill rise to 70 pct from 60 pct, effective on Wednesday, he\nsaid.\n Takeuchi also said the exchange has no specific plan to\ntake coordinated action with the New York and London exchanges\nto help stabilise stock prices.\n The drop on Wall Street was caused by various factors but\nwas primarily the result of a correction of overvalued share\nprices, he said. The current stock price plunge cannot compare\nwith the Great Depression as the economic environment is very\ndifferent, he added.\n The exchange has not changed plans to introduce stock\nfutures trading next year despite press reports that the Wall\nStreet fall was linked with futures trading, he said.\n REUTER\n\u0003", "date": "20-OCT-1987 03:17:41.87", "places": [ "japan" ], "id": "20020" }, { "title": "AQUINO SAYS MANILA WATCHING INTEREST RATES CLOSELY", "body": "President Corazon Aquino said the\nPhilippines was closely monitoring interest rates in the wake\nof Monday's record drop on Wall Street and steep declines in\nManila and other Asian stock markets.\n \"We will monitor these developments closely and will\ncontinue to hope that they do not precipitate large declines in\neconomic activity around the world,\" Aquino told a meeting of 13\nmajor Philippine business groups.\n \"The Philippines, as a trading country in the world economy,\ndepends on the continued health and growth of both the world\neconomy and the world trading system,\" she said.\n The Manila Stock Exchange composite index plunged 105.49\npoints or 11.79 pct by the midday close to 789.54, depressed by\nthe record 508 point fall of the Dow Jones industrial average\non Monday.\n \"The Philippines, in addition, as a large borrower nation,\nis affected by developments in interest rate levels around the\nworld and will carefully monitor the impact of these\ndevelopments on interest rates, on gold and on commodity\nprices,\" Aquino said.\n \"We welcome the statements from world leaders that urge calm\nin the present difficult situation,\" she added.\n REUTER\n\u0003", "date": "20-OCT-1987 03:26:57.39", "topics": [ "interest" ], "places": [ "philippines" ], "id": "20021" }, { "title": "NISSAN STARTS TO MARKET REMODELLED 4WD VEHICLES", "body": "Nissan Motor Co Ltd <NSAN.T> said it has\nstarted to market a remodelled version of its four wheel drive\n(4WD) Safari vehicle in Japan.\n Nissan said in a statement it hopes to sell 250 vehicles a\nmonth in Japan.\n It also plans soon to start exporting 3,400 vehicles a\nmonth to the Australian, Middle East and Asian markets under\nthe name Patrol, a spokesman said.\n It will sell the vehicle in Europe sometime in the future,\nwith shipments from <Motor Iberica S.A.>, its Spanish unit. The\nvolume for Europe will be set later.\n REUTER\n\u0003", "date": "20-OCT-1987 03:36:58.94", "places": [ "japan" ], "id": "20022" }, { "title": "JAPAN TO SCRUTINISE LIFE INSURERS' CAPITAL GAINS", "body": "The Finance Ministry plans to examine how\nlife insurance companies realised capital gains through\ntransactions undertaken in June, just before the yen bond\nmarket began to fall sharply, a senior Ministry official said.\n The move is aimed at cooling fierce competition in the\nfield and will pave the way for a Ministry system to check that\ninsurers do not inflate investment returns on the accounts to\nattract investors, he said.\n Some insurers transfer part of their unrealised gains from\ngeneral accounts to the variable life accounts, violating their\ninternal regulations, industry sources said.\n The eight major local life-insurers which offer variable\nlife policies here realised an average return of 21.01 pct on\nsuch policies in the year ended September.\n The Ministry will scrutinise the policies of 17 local and\nforeign life insurers which offer the variable life schemes.\n Japan has 23 major local life insurers, none of which is\nlisted on the stock market.\n REUTER\n\u0003", "date": "20-OCT-1987 03:38:14.97", "places": [ "japan" ], "id": "20023" }, { "title": "FTSE 100 share index opens 186.0 down at 1,866.3 - London Stock Exchange\n", "date": "20-OCT-1987 04:03:13.28", "id": "20024" }, { "title": "JAPAN MONEY GROWTH TO STAY AT 11-12 PCT - OFFICIAL", "body": "Growth in Japan's M-2 plus certificates of\ndeposit (CD) money supply in the October to December period is\nnot expected to accelerate, but will remain at high levels\nbetween 11 and 12 pct, a senior Bank of Japan official said.\n The central bank will keep a watch on high growth in\nliquidity because this is a factor that may cause rises in\nprices of goods, he said.\n The September growth of 11.1 pct year on year announced\nearlier today should not be taken as implying that the money\nsupply has started to expand very rapidly, he said. In August\nthe rate of increase was 11.0 pct.\n REUTER\n\u0003", "date": "20-OCT-1987 04:10:11.01", "topics": [ "money-supply" ], "places": [ "japan" ], "id": "20025" }, { "title": "W.GERMAN CAR OUTPUT, EXPORTS RISES IN SEPTEMBER", "body": "West German car and van production rose\nin September to 407,600 from 386,000 in September 1986, while\nexports climbed to 226,300 from 218,200, the German Automobile\nIndustry Association VDA said.\n The association added that incoming domestic orders in\nSeptember were above, and foreign orders roughly equal, to\nthose in September last year.\n Car and van production rose in the first nine months of the\nyear to 3.25 mln from 3.19 mln. But exports fell to 1.80 mln\nfrom 1.85 mln\n Output of light trucks fell in September to 13,200 from\n14,700, while heavy truck production was unchanged at 10,100.\n Over the nine month period, light truck production fell to\n109,300 from 129,200, while heavy truck production dipped to\n83,800 from 84,700.\n Exports of light trucks fell in September to 7,800 from\n9,000 and to 66,600 from 84,300 in the first nine months.\n Exports of heavy trucks rose to 5,500 in September from\n4,600 in September last year and to 47,800 from 45,300 in the\nfirst nine months.\n REUTER\n\u0003", "date": "20-OCT-1987 04:11:39.73", "places": [ "west-germany" ], "id": "20026" }, { "title": "DOUGLAS SAYS N.Z. NOT ISOLATED FROM WORLD MARKETS", "body": "Finance Minister Roger Douglas said\nthe fall in share prices on local and world markets\ndemonstrated that New Zealand could not be isolated from global\ntrends.\n \"We can't expect to isolate ourselves from developments\naround the world,\" Douglas told reporters.\n \"I think above all what today's problems illustrate is that\nthe sort of policies that we have been putting in place the\nlast three years are absolutely essential so that New Zealand's\neconomic performance improves, relative to the rest of the\nworld.\"\n The New Zealand share market fell 14.7 pct on Tuesday in a\nrecord one-day fall.\n Douglas told a news conference, at which the government\nannounced plans to sell its 89 pct stake in <New Zealand Steel\nLtd>, that the sharemarket fall would not affect plans to sell\nparts of state-owned corporations such as <Air New Zealand>,\n<DFC New Zealand Ltd> and <Petroleum Corp of New Zealand Ltd>.\nAsked if the government considered acting to close the\nsharemarket for a period, Douglas said: \"No. I'm not sure it\nwould have been my job to do so.\"\n REUTER\n\u0003", "date": "20-OCT-1987 04:19:37.24", "places": [ "new-zealand" ], "id": "20027" }, { "title": "WILL WORLD RECESSION FOLLOW STOCK MARKET PLUNGE?", "body": "Some economists fear a world recession if\nstock exchanges continue to plunge. Others are more sanguine.\n The pessimists say the stocks shakeout is destroying\npersonal assets and dampening consumption.\n \"The real economic effects can be significant -- the\ndestruction of wealth and a deflationary impact on the economy,\"\nsaid an economist at a U.S. Securities house.\n But other economists said such fears were overblown.\n \"Because of lower appreciation of corporate or personal\nassets, that much negative impact could be observed (in the\nU.S.),\" said Keikichi Honda, general manager of economic\nresearch at the Bank of Tokyo Ltd.\n \"But the appreciation of stock prices has not been playing\nsuch a major role in the entire U.S. Gross national product\n(GNP),\" Honda said.\n The pessimists noted that the record fall on Wall Street on\nMonday was sparked by fears the U.S. Economy is heading for a\nrecession or serious slowdown much earlier than expected.\n But the optimists said a dampening effect on consumption\ndue to stock market losses was less likely in Japan.\n \"In Japan the weight of stocks in individuals' total assets\nis less than in the U.S., And the total weight of individuals'\nholdings in the stock market is less, so there will be less\ndamage than in the U.S.,\" said an economist at one of Japan's\nmajor brokerage houses.\n \"Japan is taking strong measures to stimulate domestic\ndemand, so while there could be some impact from the reduction\nof assets value, it would not be a major impact,\" said the Bank\nof Tokyo's Honda.\n Optimists also pointed to incipient declines in U.S.\nInterest rates as a positive sign for the U.S. Economy.\n \"U.S. Interest rates are coming down so there is a feeling\nthat interest rates have hit their ceiling, and the U.S.\nEconomy is strong, so there should be no direct impact from the\ncollapse of share prices,\" said Toshiaki Kakimoto, Sumitomo Bank\nLtd chief economist.\n Some economists suggested that should markets continue to\nslump, the major industrial nations may have to discuss\npossible joint lowering of official discount rates.\n \"Until last week, a discussion of lower rates was\nunthinkable, now it's not,\" said the Japanese brokerage house\neconomist.\n \"There has been a move from the purely rational to the\nemotional -- it's a central bankers' nightmare,\" said the\nforeign economist. \"It will require strong global leadership by\npoliticians to snuff out,\" he said.\n However, \"previously, the stocks correction was due to fears\nof higher interest rates, a possible resurgence of inflation\nand the depreciation of the dollar,\" said Nobuyuki Ueda, senior\neconomist at the Long-Term Credit Bank Ltd.\n \"Now some people have an uneasy feeling about the outlook of\nthe U.S. Economy,\" Ueda said.\n \"If the stock market is a leading indicator of the future\nmovement of the economy, this decline will have very\nsignificant implications for the U.S. Economy,\" he said.\n \"If the low levels hold, those who were keeping consumption\nhigh because of unrealised gains could curb consumption,\" said\nSalomon Brothers (Asia) Ltd economist Ron Napier. \"If the paper\ngains aren't there, people won't spend.\"\n A U.S. Recession could then trigger similar declines in\nother economies, some economists said.\n \"I don't know if a possible recession in the U.S. Would\ntrigger a world recession because other nations, such as Japan,\nare showing good economic performance,\" LTCB's Ueda said. \"But we\ncan't rule out the possibility because the U.S. Is still\nplaying a very dominant role in the world economy.\"\n REUTER\n\u0003", "date": "20-OCT-1987 04:21:55.55", "places": [ "japan", "usa" ], "id": "20028" }, { "title": "JAPAN TRIES TO STEM STOCKS DIVE", "body": "Government and monetary authorities today\nstaged a concerted effort to calm spreading panic on Japanese\nstock exchanges but market analysts said there were limits to\ntheir ability to succeed.\n \"The ability of the Big Four (Japanese securities houses)\nand the Finance Ministry is limited,\" said Barclays de Zoete\nWedd economist Peter Morgan.\n Finance Ministry officials asked the big four securities\ncompanies this afternoon to help calm panic selling on the\nTokyo Stock Exchange, ministry officials said.\n Prime Minister Yasuhiro Nakasone was quoted by Kyodo News\nService as saying he was watching the stock market situation.\n But he rejected comparisons with the 1929 stock market\ncollapse and subsequent recession.\n Finance Minister Kiichi Miyazawa said the Tokyo stock\nmarket should not be gravely affected by downturns in New York\nand London because there are clear signs of a Japanese economic\nrecovery and exchange rate stability.\n Bank of Japan Governor Satoshi Sumita also tried to calm\nthe panic, saying in a statement that world stock markets were\nexcessively concerned about the economic future.\n Traditionally, the four big houses -- Nomura Securities Co\nLtd, Yamaichi Securities Co Ltd, Daiwa Securities Co Ltd, and\nNikko Securities Co Ltd -- have influenced the market because\nof their sheer size and overwhelming market share.\n This strength has in the past made it possible for the\nbrokerages to calm down markets under guidance from the Finance\nMinistry, analysts said.\n But the analysts questioned whether the brokerages, which\nhave already suffered heavy losses from falling bond markets\nover the past year, would have the strength this time to turn\nthings around.\n \"The question is, are the Japanese brokerages strong enough\nto force investors to buy,\" said Johsen Takahashi, research\ndirector at the Mitsubishi Research Institute.\n \"If we consider that they have suffered serious losses in\nthe bond markets and in their U.S. Investments, it is debatable\nwhether they they could support buying,\" he said.\n \"We can support things to some extent, but we can't\ncompletely suppress selling,\" said one Japanese broker.\n Some analysts said the high percentage of shares cross-held\nby financial institutions and other corporations could have a\nstabilising effect on the market.\n Some 80 pct of shares are held by corporate shareholders,\nsaid Keikichi Honda, general manager of the Bank of Tokyo Ltd's\neconomic research division. \"This is a tightly woven textile. In\nits own way it is stronger than Wall Street.\"\n But other analysts expressed doubt about this argument.\n \"If a high percent of shares is cross held, everything\nhappens at the edges and the relative moves can be larger,\" said\nKleinwort Benson Ltd financial analyst Simon Smithson. \"Selling\nwill drive prices down an enormous distance because of no\nliquidity.\"\n \"You don't need big volume to get big declines in the market\n-- you just need a huge imbalance between sellers and buyers,\"\nsaid Barclay's Morgan.\n Shares held by what are termed \"stable shareholders,\" or\nbanks and other companies with which a firm does business,\nmight also find their way onto the market if the outlook gets\nbad enough, some analsyst said.\n \"Closely held shares could become unclosely held,\" said\nMorgan. But he said such a prospect is unlikely right now\nbecause companies, with their improved earnings prospects, do\nnot need to sell shares for cash flow reasons.\n REUTER\n\u0003", "date": "20-OCT-1987 04:25:26.49", "places": [ "japan" ], "id": "20029" }, { "title": "WORLD COULD COPE WITH HORMUZ CLOSURE, SUBROTO SAYS", "body": "Oil prices would skyrocket for a time if\nconflict in the Gulf closed the Strait of Hormuz, but oil\nsupplies could be adjusted to take care of world demand,\nIndonesian Energy Minister Subroto said.\n He made no explicit reference to the latest U.S. Military\naction in the Gulf.\n But in an address to a conference of the Indonesian\nPetroleum Association, he said, \"If worst comes to worst and say\nthe flow of oil through the Straits of Hormuz is completely\nshut off, I believe the world oil supply, given time to adjust,\ncan take care of the situation.\"\n \"But this is not to say that prices, at least for a short\nduration, will not skyrocket as speculators take advantage of\nthe situation,\" he declared.\n Tensions in the Gulf, however, usually had a relatively\nshort-term impact on prices, he added.\n Assessing future price trends, he said, \"Short-term spot\nprices will probably still fluctuate, but they will most likely\nhover around the official Opec price basket of 18 dlrs per\nbarrel.\n \"The upward deviations, however, are likely to be greater\nthan the downward ones.\"\n \"The balance between supply and demand in the short term\nwill still be delicate,\" he added. \"Non-Opec production may still\ngo up, competing with Opec for the expected additional increase\nin world demand.\"\n Subroto, a member of Opec's three-man quota committee which\nhas been touring cartel members, said speculation may play\nhavoc with spot prices, but Opec was trying to stabilize the\nsituation by urging cooperation by non-Opec producers.\n In the medium term, non-Opec production would reach a\nplateau in the early 1990s, leaving Opec much stronger, he\nsaid.\n REUTER\n\u0003", "date": "20-OCT-1987 04:30:24.90", "topics": [ "crude", "ship" ], "organisations": [ "opec" ], "places": [ "indonesia" ], "id": "20030" }, { "title": "BANGLADESH TENDERS FOR TWO MLN BARRELS PETROLEUM", "body": "Bangladesh Petroleum Corp said it floated\nan international tender for imports of two mln barrels of Jet\nKero, Superior Kero and High Speed Diesel for shipment during\nJanuary-June 1988.\n It said the offer for the petroleum products would be open\nuntil 0600 gmt on November 19.\n REUTER\n\u0003", "date": "20-OCT-1987 04:34:41.19", "topics": [ "jet" ], "places": [ "bangladesh" ], "id": "20031" }, { "title": " Poehl says German and international interest rate rises are cause for concern\n", "date": "20-OCT-1987 04:48:51.01", "topics": [ "interest" ], "id": "20032" }, { "title": " Bundesbank has no interest in higher capital market rates - Poehl\n", "date": "20-OCT-1987 04:49:48.44", "id": "20033" }, { "title": "IRANIAN TANKER REPORTS SIGHTING MINE IN GULF", "body": "An Iranian shuttle tanker reported\nspotting a floating mine in the central Gulf on Tuesday about\n50 miles west of Lavan Island, regional shipping sources said.\n The Khark III, owned by the National Iranian Tanker Co,\ngave the position of the mine as 27 degrees 14 minutes north,\n52.06 east.\n There was no indication of measures being taken against the\nmine, which is in Iranian territorial waters.\n REUTER\n\u0003", "date": "20-OCT-1987 04:53:02.87", "topics": [ "ship" ], "places": [ "bahrain", "iran" ], "id": "20034" }, { "title": "FABER OPEN FOR OFFERS ON MORGAN GRENFELL STAKE", "body": "Willis Faber Plc <WIFL.L> chairman and\nchief executive David Palmer said the company would consider\nany bid for its 20.8 pct shareholding in Morgan Grenfell Group\nPlc <MGFL.L> but had not yet received any offers.\n \"We will entertain any approaches,\" he told Reuters in reply\nto questions, following U.K. Press speculation.\n In an earlier statement, Faber said that if an offer were\nto be received for its stake in the merchant banking group, \"it\nwould be considered on its merits.\"\n REUTER\n\u0003", "date": "20-OCT-1987 04:54:40.64", "topics": [ "acq" ], "places": [ "uk" ], "id": "20035" }, { "title": " Inflationary fears are unjustified and exaggerated, Poehl says\n", "date": "20-OCT-1987 04:58:56.26", "id": "20036" }, { "title": "CORBY DISTILLERIES TO EXPAND IN CANADA", "body": "<Corby Distilleries Ltd>, 52 pct owned by\nAllied Lyons Plc <ALLD.L> subsidiary <Hiram Walker-Goodman &\nWorts> is to buy the spirits business of <McGuinness Distillers\nLtd> of Toronto for 45 mln Canadian dlrs.\n McGuinness is a producer and marketer of spirits and also\nhas exclusive agencies for some imported wines and spirits.\n The sale is subject to the approval of the Bureau of\nCompetition Policy. Michael Jackaman, president and chief\nexecutive officer of Hiram Walker and Allied Vintners, said,\n\"The acquisition is an excellent one both commercially and\nfinancially.\"\n REUTER\n\u0003", "date": "20-OCT-1987 04:59:07.79", "topics": [ "acq" ], "places": [ "uk", "canada" ], "id": "20037" }, { "title": "POEHL SAYS RATE RISES ARE CAUSE FOR CONCERN", "body": "Rises in West German and international\ninterest rates are a cause for concern and the Bundesbank has\nno interest in higher capital market rates, Bundesbank\nPresident Karl Otto Poehl said.\n \"We consider the interest rate increase that has occurred\nhere and internationally to be a problem and cause for concern,\"\nPoehl told an investment conference.\n \"I would like to stress that the Bundesbank has no interest\nin higher capital market rates,\" he said.\n Shortly after Poehl spoke, the Bundesbank announced a\ntender for a securities repurchase pact at a fixed rate of 3.80\npct.\n Previous tenders over the last month by interest rate have\nseen the allocation rate on these facilities rise to 3.85 pct\nat last week's pact from 3.60 on the last fixed-rate tender in\nlate September.\n The Bundesbank's reduction of the key allocation rate to\n3.80 from 3.85 pct was heralded Monday by repeated injections\nof money market liquidity at between 3.70 and 3.80 pct.\n These moves to cap interest rates followed a meeting\nbetween Poehl, Finance Minister Gerhard Stoltenberg and U.S.\nTreasury Secretary James Baker Monday in Frankfurt.\n Officials said afterwards the three men had reaffirmed\ntheir commitment to the Louvre accord on currency stability.\n Over the weekend, criticism by Baker of the tightening in\nWest German monetary policy had prompted a sharp fall of the\ndollar on speculation that Louvre cooperation had ended.\n But the dollar rallied on news of Monday's meeting in\nnervous trading to trade above 1.79 marks Tuesday.\n Poehl said that the recent rise in interest rates was not\ndue to central bank policy, but to markets' expectations, and\ncurrency developments.\n Commenting on the inflationary expectations, Poehl said \"You\nhave to get to the root of the problem, you have to pursue a\npolicy which reveals that there are no grounds for such fears.\"\n The inflationary fears were unjustified and exaggerated, he\nsaid.\n Poehl rebuffed recent U.S. Criticism of West Germany,\nsaying the Bundesbank had made a substantial contribution to\ninternational cooperation in interest and monetary policy.\n The Bundesbank has tolerated an overshooting of its money\nsupply target, arousing criticism from other quarters, he said.\n \"Today we still have lower interest rates than at the end of\n1986... Quite the contrary of other countries, where interest\nrates have risen substantially more,\" Poehl said.\n This had to be taken into account when considering recent\nrises in repurchase pact allocation rates, which were due to\nrising international money market rates that had spilled over\ninto the German market, he said.\n Poehl expressed surprise that financial markets had so far\nignored improvements in the U.S. Deficits.\n \"The adjustment process in the U.S. Trade balance is\ndefinitely underway,\" he said, noting that this was not so\nnoticeable in absolute figures.\n The spectacular improvement in the budget deficit had also\nattracted little attention, he said.\n REUTER\n\u0003", "date": "20-OCT-1987 04:59:48.03", "topics": [ "interest" ], "places": [ "west-germany" ], "id": "20038" }, { "title": "LAWSON SAYS BP SHARE OFFER GOING AHEAD", "body": "U.K. Chancellor of the Exchequer Nigel\nLawson said the Government was going ahead with this month's\nflotation of British Petroleum Co Plc <BP.L> shares despite the\ncollapse on international stock markets.\n \"We are going ahead because the whole issue has been\nunderwritten - we had it underwritten because there is always a\nrisk of this sort of thing happening,\" Lawson said in a BBC\nradio interview.\n Lawson's remarks came as renewed selling on the London\nstock market took BP shares down a further 33p to 283, well\nbelow the 330p price set for the around seven billion stg\nissue.\n Lawson said the U.K. Economy is fundamentally sound and\nadded that stock markets had reflected that recently.\n \"I profoundly believe in the market system as the best way\nfor securing economic prosperity (but) that does not mean to\nsay the markets are infallible.\"\n \"My advice to small investors...Is to remain calm. There is\nabsolutely no reason not to do so,\" Lawson said.\n REUTER\n\u0003", "date": "20-OCT-1987 05:00:49.66", "topics": [ "acq" ], "places": [ "uk" ], "id": "20039" }, { "title": " Bundesbank sets 35-day securities repurchase tender at fixed rpt fixed 3.80 pct\n", "date": "20-OCT-1987 05:01:49.86", "id": "20040" }, { "title": "Paris share price indicator opens 2.31 pct down - official\n", "date": "20-OCT-1987 05:03:42.33", "id": "20041" }, { "title": "LAWSON CALLS DEGREE OF SHARE FALL ABSURD", "body": "U.K. Chancellor of the Exchequer Nigel\nLawson said the severity of the current rout on world stock\nmarkets was an absurd over-reaction sparked on Wall Street by a\nspreading lack of confidence in the U.S. Economy.\n Lawson said in a BBC radio interview, \"This began on Wall\nStreet. It has a lot to do with the American stock market (and)\na lack of confidence in the U.S. - and some careless talk by\nthose who should have known better.\"\n In a further wave of selling this morning in London, the\nFTSE 100 index had lost a further 233.2 points only 50 minutes\nafter the official 0800 GMT opening to stand at 1,819.1.\n Lawson said a correction on world stock markets was to have\nbeen expected after the bull markets of recent years. \"What was\nnot expected was the severity of the downturn, which quite\nfrankly is rather absurd.\"\n He said he saw no fundamental signs why the U.S. Economy\nshould go into recession, adding, \"Indeed the possibility of\nhigher (U.S.) interest rates would certainly in my judgment not\nlead the American economy into a recession.\"\n \"The only way in which the American economy would go into\nrecession was if it actually talks itself into recession,\" he\nsaid.\n REUTER\n\u0003", "date": "20-OCT-1987 05:05:18.65", "places": [ "uk", "usa" ], "id": "20042" }, { "title": "BANK OF JAPAN SEES STEADY ECONOMIC RECOVERY", "body": "The Japanese economy is firmly on the\nrecovery path, supported by robust domestic demand, the Bank of\nJapan said in a regular monthly report.\n The report said industrial production is strengthening as\nmanufacturing companies have almost completed adjustments of\ntheir plant and equipment investment while non-manufacturing\nfirms have continued to be positive in their capital spending.\n Strong domestic demand, such as consumer spending and\nhousing investment, will more than offset declining exports,\nthe central bank report said. It also noted the continued rise\nin domestic wholesale prices and money supply.\n REUTER\n\u0003", "date": "20-OCT-1987 05:06:25.13", "places": [ "japan" ], "id": "20043" }, { "title": "London's FTSE 100 share index falls below 1,800 - Stock Exchange\n", "date": "20-OCT-1987 05:07:16.01", "id": "20044" }, { "title": "PHILIPPINES APPLAUDS DEFEAT OF U.S. LABELLING BILL", "body": "The Philippine coconut industry has\ngreeted with relief the defeat in the U.S. Senate of a bill\nrequiring some edible oils to be labelled as saturated fats.\n The bill, which was defeated by the Senate Agriculture\nCommittee on Monday, could have cost about 60 mln dlrs a year\nin lost exports, the Philippine Coconut Authority (PCA) said.\n \"Naturally, we welcomed the defeat but there is a chance the\nbill will be resurrected and attached as a rider to another\nSenate bill,\" a spokesman for the United Coconut Association of\nthe Philippines (UCAP).\n PCA chairman Jose Romero noted the vote was close, with\neight senators voting for it, 10 against and one abstaining.\n The UCAP spokesman said the American Soybean Association\n(ASA) had spent about 25 mln dlrs lobbying for the bill.\n He said the ASA also had obscured the health issue during\nthe debate.\n \"Coconut oil is high in saturated fats, but unlike saturated\nanimal fats, they do not enter the blood and lymph systems\nleaving fatty deposits connected to heart disease,\" he said.\n U.S. Soybean and cottonseed producers had argued that\nsaturated fats cause heart disease and that the labels would\ndiscourage consumption by health conscious consumers in favour\nof domestic unsaturated alternatives.\n Opponents of the bill said the proposal discriminated\nagainst imports and would damage the Philippines, Malaysia and\nIndonesia.\n The Philippines earned 488 mln dlrs from coconut products\nin 1986, up from 477 mln in 1985, UCAP figures show.\n Exports to the United States for edible and non-edible use\naccount for about half of that total, PCA's Romero said.\n REUTER\n\u0003", "date": "20-OCT-1987 05:08:54.04", "topics": [ "coconut" ], "places": [ "philippines", "usa" ], "id": "20045" }, { "title": "THAI STOCKS PLUNGE IN REACTION TO WORLDWIDE TREND", "body": "Thai stock prices plunged on Tuesday as\nnervous investors unloaded shares on reports of steep declines\non major world stock markets.\n Brokers said the Securities Exchange of Thailand Index fell\na record 36.64 points, or nearly eight pct, to close at 422.37.\n \"It's impossible to halt the slide in this situation. The\nmarket just doesn't behave logically,\" said Sirivat\nVoravetvuthikun, executive vice president of Asian Securities\nTrading Co Ltd.\n But Sirivat said he did not believe the fall would mark the\nend of the SET's 16 month bull run, which has accelerated\nduring the last two months. He expected Thai stocks to\nfluctuate widely in the next few weeks.\n The slide on Tuesday followed a 13.85 point decline of the\n97-stock index on Monday when it closed at 459.01.\n Brokers said they were flooded with sell orders when the\nmarket opened this morning and a SET announcement urging\ninvestors not to panic was ignored.\n The index reached a record 472.86 last Friday, up 57.7 pct\nfrom end-June and 128.2 pct higher than last December.\n SET officials said 77 issues were traded on Tuesday, of\nwhich all but two declined. Of the losers, 68 plummeted the\ndaily maximum 10 pct allowed by the exchange. Prices on the\nspecial foreign column also fell sharply.\n SET vice president Suthichai Chitvanich told reporters the\n10 pct floor serves as a restraint, making it unnecessary to\nsuspend trading should the panic continue.\n The Thai exchange has lately been gaining on its own\nstrength with most buying coming from local investors.\n Investors should not be unduly influenced by foreign market\nreports, he added.\n Suthichai said sound local fundamentals, including low\ninterest rates and promising economic growth, favoured\ninvestment in the stock market.\n The SET also announced it would release third quarter\ncorporate earnings earlier than expected as part of efforts to\nshore up public confidence.\n REUTER\n\u0003", "date": "20-OCT-1987 05:17:40.79", "places": [ "thailand" ], "id": "20046" }, { "title": "Milan bourse opening delayed one hour to 1200 GMT - official\n", "date": "20-OCT-1987 05:28:05.60", "id": "20047" }, { "title": "TOKYO STOCK PLUNGE COULD FORCE EASIER MONEY POLICY", "body": "Plunging Tokyo stock prices will prevent\nthe Bank of Japan from raising its discount rate and could even\nforce it to ease monetary policy if the collapse continues,\ngovernment and private economists said.\n A rise in interest rates now would only serve to spark\nfurther selling of shares that could ultimately have a major\ndeflationary impact on the real economy, they said.\n Although Bank of Japan officials have consistently\nmaintained that they had no plans to raise the 2.5 pct discount\nrate, many in the markets have thought otherwise. \n Fears of a rise in the discount rate were