%/ hat's /ews Busincss and Fniince
till is s J al l 23 sj l /u+. 2 ,
P oQu Hi s a Nay pap 1 I a a .o a I 88Q 3i
Ig I
What's News
Business and Finance
T HE INFLATION RATE stayed
I high last month and government
economists said that could mean a
deeper recession, higher unemploy
ment and more problems than the ad
mimstration expected, Consumer
prices rose 1f4 m July, the same as in
June and equal to a l2 annual rate
before compounding Energy and
housing costs continued to soar
iStory on Foe. 31
* * *
A prime rate increase by banks to
a record 12' from 12% is consid
ered likely this week following the
Fed's action to tighten credit. The Fed
underscored its resolve to battle infla
tion by raising to 1V 4 % from 11” its
target interest rate on federal funds
IStory on P se 31
* *
Machlne4ool orders fell i4 i iii
July from the month before to $362 4
million but producers said that under
lying demand remains relatively
strong despite the downturn in the
general ecrniomy, July's figure was
13% higher than the year earlier total
Story on P e 31
* * *
Gasoline price controls may be
loosened further by the Energy De
partment to provide added incentives
for oil companies to expand and up
grade their refineries,
lSlory on P e Ii
* * *
Supplies of gasoilne appear suffi
cient around the U S for the final
days of August and the holiday week
end Demand is down, so most dealers
have ample supplies from August allo
cations
i 1ory on Po o 41
* * *
EPA officials waived requirements
for some 1981 model at omobiles that
would have sharply reduced carbon
monoxide emissions, AMC and finan
daily troubled Chrysler won the larg '
est concessions in the action.
IStory on P o 21
* * *
LouIslana Pacfflc is holding pre
liminaiy talks on the possible acquisi
tion of Flintkote for $392 million, or
$53 a share, in cash and preferred
stock. Flintkote has been fighting a
thkeover attempt by Genstar and has
agreed in principle to be acquired by
an investment group for $52 a share.
1St ry on PoSe 41
* * *
Bluebird agreed to sell its 4,8 mil
lion shares to Northern Foods of Brit
am for $14,875 each, or $72 million,
The transaction is subject to approval
of a definitive accord by directors and
holders of each company,
Istory O Po 50 Iii
Service Corp. said it will resist at
tempts by dissident shkreholders to
delay the funeral home company's an
nual meeting, scheduled for Thursday.
The holders have filed suit protesting
certain expenses of top executives,
(Story ni Poge (Si
* * *
Semiconductor companies, defying
expectations of a slowdown, are hay
ing a strong year Industry observers
predict 1979 sales will rise 25 7 to $6
billion,
(Sm y on Po e (a)
* * *
Gold's price, which hit a record
8314,75 an ounce Friday, could be sus
tamed by some long term factors, ac
cording to analysts, They cite evi
dence of reduced sales by the Soviet
Union, Demand continues high,
(Story on Poge ai
* * * ,
United Airlines joined TWA and
Am rw n A ritn c n cPPking highPr
discount fares for the New York West
Coast air travel market The two car
riers are the UAL unit's major corn
petitors in that market,
(Story on P ge )
* * *
N,V, Philips was permitted by the
West German Federal Cartel Office to
obtain a major stake in Grundig, West
Germany's biggest producer of elec
tronic entertainment equipment
(Story on Peg. (21
* * *
Esmark said that it purchased
137,000 shares, or 7 t Z, of Reliance Uni
versal, an industrial chemical coating
company, and that the stock was pur
chased to further its efforts in seeking
to buy Reliance,
(Story on Peg. (SI
* * *
Markets—
Stocks: Volume 32,730,000 shares, flow
Jones IndustrIals 880 20, off 0 18; transporta
lIon 268,60, off 1,75, utIbhies 109,44, off 0,17,
Bonds: Dow Jones 20 bonds 85 76, off 0 16,
Commodities; Dow Jones futures Index
414,60, off 1,04, spot Index 403, 5, up 1,42,
World- Wide
A STANDOFF CONTINUED between the
U S and Russia over a Soviet balleriaa.
With Pres dent Carter making the policy
decisions, U S authorities softened their
stance and said It wasn I absolutely neces
sary that Ludmilla Vlasova come off the
grounded Aeroflot Ilyushin airliner for
them to determine If she is being forced to
return to Moscow, The dancer's husband,
Bolshoi Ballet star Alexander Godunov, de-
fected to the 'U,S, Wednesday,
The Russian news agency Tam quoted
the ballerina as saying that the grounding
was “outrageous” and that American au
thoritles were “trying to detain me in the
U S despite my will,” Sixty seven other So-
viet citizens remained on the plane, which
has been grounded since Friday
Donald McHenry, U,S, deputy am
bassadar to the UN, said the U.S. has
the authority to board the plane and re
niove the ballerina but that American
officials were hoping for a more “dip
lomatic resolution
* * *
ISLAMIC TROOPS seized control of
Saqqez, iran, from Kunfish rebels,
The battle for the western Iranian town
near the Iraqi border ended after a garrison
of 700 government troops arrived and over
powered Kurdish fighters The four days of
fighting caused heavy damage to the city,
There was no estimate of casualties,
The autonomy minded Kurds' vowed
to fiqht aqatn elsewhere, Both sides
were said to he preparing for a major
battle for the Kurds' tnrnn ctronqhold of
Mahabad, about O aides narthaest of
Saqqe ,
In Tehran, three unidentified assailants
killed two of the Ayatollah Khomeini's sup-
porters and wounded a third, One of those
killed was a member of the Ayatollah's rev
olutionary council,
The Soviet Union has offered to cooperate
with Iran in the oil sector, the iranian news
agency reported, Meanwhile, the head of
National Iranian Oil Co conceded that Iran
would buy 547 million of kerosene and fuel
oil from the U,S.
* * *
Renewed artIllery duels broke out in
southern Lebanon, hours after the UN an
nounced a cease fire UN peacekeepers were
trying to salvage the shattered truce be'
tween Palestinian guerrillas and Lebanese
Christian forces aligned with Israel Four
Lebanese civilians were reported killed,
Robert Strauss, special Mideast negotia
tor for the U 5, said the Carter administra'
lion will stick to Its policy of refusing to ne-
gotiate with the Palestine Uberation Organi'
ration until it recognizes Israel's right to ex
1st, Strauss urged the involvement of
moderate Palestinians In any comprehen-
sive peace settlement
* * *
Vice President Mondale called for In-
creased Sino American cooperation at a
banquet in hIs honor In Peking. The Vice
President said an improved relationship be
tween the two countries ‘can emerge In the
1980s as one of the major bulwarks of peace
and justice in the world,” Mondaie is ex
pected to sign a new cultural agreement
durine his week'ionr visit,
* * *
Rapid transit workers from three unions
in Les Angeles struck after negotiators
failed to agree on a new contract About 1 2
million bus commuters are affected by the
strike, which began yesterday, In Cleveland,
train and bus workers continued a wildcat
strike that began Friday that affects 250,000
corrmuters
* * *
Former President Ford said he's under
intense pressure to seek the GOP presiden
tial nomination. But Ford said in an inter-
view in U,S, News & World Report that he's
doing better as a noncandidate than as a
contender, The tormer President said that
Ronald Reagan currently appears to have the
edge for the Republican bid and that he ox
pects Carter to get the Democratic nod in
1980
* * *
Textile executive Wlillarn Boorstein re
turned to the U S after escaping from his
captors at a plant outside San Salvador,
Boorstein, manager of an Apex Textile Co
factory in El Salvador, was taken hostage
Aug. 14 durIng labor negotiations,
* * *
Sand Is being used to keep the mammoth
Mexican oil spill away from the winier
home of the whooping crane, As debris from
the spill continues northward from Part Ar'
ansas, Texas, officials are using sand to fill
In the only natural passage to the back bays
where the rare cranes migrate, Meanwhile,
officials are keeping a close watch on a
storm in the Bay of Campeche that could
hamper their efforts
* * *
State police were called In to help secure
a Maryland prison near Jessup after two
more escape attempts were made. Neither
attempt was successful and prison officials
wouldn't say how many inmates were In-
volved Eight of the 30 prisoners Involved In
Wednesday's break'out remain at large,
* * * *
Armed inmates holding three guards has
tage at a Las Vegas prison Issued a list of
demands, Including warmer food, a full tIme
nurse, mare experienced guards and a radio
in each cell Prison officials saId they didn't
know how many of the 84 Inmates were par
ticipating in the uprising, which began Sat'
urday,
* * *
A sniper wouflded five tourists In Wai'
kiki, Honolulu, Police arrested a mental pa
tient who allegedly was Involved in a sniping
Incident six years ago Officials bald the
snIper fired a ,fl caIiber rifle from a sec'
and floor construction site In the heart of the
tourist area,
* * *
Died' Stan Kenton, 67, bandleader and an
innovative force in jazz for more than 35
years, at a Holl ood, Calif, hospital of a
stroke,
Rep ad ed ai ne Cs an af he a ynch a ncr Fu er renra u a nra I I ed ai a t per snaan
