WhaVs 1/e s: Business and Finance W o d Wide
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What's News
Business and Finance
THE PRIME RATE was raised to a
I record 1V % rom 2% by Chase
Manhattan, Bank of Amenca and
other major banks. The boost was
seen as on'y a stepping stone to higher
rates as banks interest costs contrnue
to rise.
Story o Pane
* *
U S merchandise trade hgures for
last month showed that the deflcat
narrowed sharply to $1 11 billion, the
slimmest red ink total this year, des
pite soaring oil import costs June s
deficli was $1 9 billion
S ory on P e 2
* * *
GM and Ford made hütiaI eco
nomic proposals to the Auto Workers
ufflan that included higher wages and
pensions and more paid time off. Bath
sides indicated the pace of bargaining
may be heating up.
n P g 3
* * *
Chrysler is telling bankers it ex
pects to post a loss of $600 million to
$700 million this year and to be profit
able in 1981, when it unveils a new line
of compact cars. The estimates for
1979 wou d indicate a lass of as much
as $440 million in the second half.
P e 5
* * *
United Stee1workers President
Lloyd McBride predicted that the de
veIop ng recession will close same un
profitable steel facilities. But he said
that the union, as it p'ans its negotiat
ing strategy, views the recession as a
short term sauation,
5 Ory P e 4)
* * *
U S, Steel plans to raise prices on
carbon steeft p'ate products about 5,1%
and on carbon stee1 structurals about
4 , effecUve Oct. 1, it also rncreased
the price of railroad wheels and axles.
ry on )
* * *
Wheefing P1ttsburgh signed agree
ments to obtain $150 million in federal
loan guarantees As expected, the
steelmaker drew nmediate criticism
from Reth hem Ste i nd cn t frni
CF&I Steel
(5 ory n P e ‘
* * *
Building contracts awarded hi July
fell 1% to $14 72 billion, the F. W,
Dodge division of McGraw Hill said. It
cited “a recession added to the prob
ems of inflation and high interest
rates Ofhce building construction
continued strong, but industrial con
struction fell sharply
Story o E
* * *
Unemployment Insurance beneñts
have become so generous that many
recipients ‘ack hnanc a incentive to
get a job, said the General Accounting
Off ce A report by the GAO urges
Congress to require recipients to pay
taxes on the benefits
)S ory o i
* * *
The Rock Island railroad was hit
by a wa'kout of L700 workers Govern
rnent and private experts fear a long
strike will stagger the nation s aver
burdened grain transport system and
deal a heavy blow to the troub ed line.
tStory o i 6
* * *
LouIs ai aPadllIc agreed to ac
quire Flintkate for $392 mililon rn cash
and preferred stock. Flrntkote, which
has been fighting a takeover bid by
Genstar said talks on its sale to New
York nivestors have ended
Sto v o i 6
* * *
Capital spending plans are rela
tively robust, the Conference Board
rndicated, afthough the economy is
weakernng. The board said that appro
pnatians in the second quarter totaled
$2L4 b Ihon, down 5% from the first
period but up 42% from last year.
S ory o 3
* , *
Mutual funds would be allowed
greater freedom to adverUse their
shares to investors under rule changes
that will be considered by the SEC.
Sthr ' n P , 9
* * *
Gold and silver futures prices hit
highs as traders shrugged off such po
tentlaHy bearish news as the increase
in the prime rate. Sliver broke the
psychologkally important $1O*an
ounce barrier for the first time,
( rv Pi 24
* * *
Markets
Stocks: Va uine 29,43O OOO shares. Dow
James industrials 884M, off O 77; transporta
ftan 269 3L off 0.73; uUllt es 108 69 oil O.17
Bonds Dow Jones 20 bonds 8M7 off O.O4
Commadftles: Dow Jones futures index
412.60, off L76; spot thdex 403.21, off O €.
World Wide
ANDTHER IRA BOMB exploded n Brus
se1s amid mounting outrage.
The bombing In Belgium, which injured
more than a dozen peopk, came as a British
army band prepared to perform for tourists,
It followed the assassination of Lord Mount
batten and three others on a yacht and the
killing of 18 BritIsh soldiers on Monday the
bloodiest day in Northern Ireland in 10
years.
The bombings prompted fresh calls for a
new offensive agarnst terrorism and tighter
security arrangements, OfflcIaIs are worrn
ned about their ability to control reprisals
by paramIIita y Protestant groups. An Irish
government spokesman Said a visit by Pope
John Paul on Sept 29 will go ahead as
planned, but security wdl be increased,
The IRA bombtng b1 under scorc
the pahtical stalemate rn Ulster and
rrnses new que f ions about the Bn1&
anny s abthly to control the lerran.sts
* * *
CHINA'S PREMIER ACCEPTED “with
delig) t” an invitation to the U S
Vice President Mondale, concluding two
days of talks with Chinese leaders, said Hua
Guofeng had also expressed hope that Presi
dent Carter would visit China next year He
said steps taken during his nip, rnduding
accorth on cultural exchange and hydroe ec
mc power cooperation, have 1a d the bas s
of our relationslup for the 1980s .”
Monda'e said the U S. and China agree
on a wide range of gIoba and regional
prob1ems ' He renerated that the U.S. won't
d seuss normalized relations with Vietnam,
a foe of China, un ess Hanoi ends the occu
patlon a! Cambodia and the expulsion of ref
ugees But he denied that improved Sino
U S relations are “thrected against any
one.'
The US n ‘t seeknu7 a milUar rela
ftonslup with Chznu. Mondale said, and
tr 'ngthenrnq tu' s shouldn 't he seen as a
thrcat b i the Some! Unwn
* * *
Kurdish rebels In han should be crushed,
not negotiated w th, Ayatollah Khamerni told
a new religmus trouble shooter he appointed
for the region MeanwhI'e, Ithamenu 's Is-
lamic court chief in Kurdistan sent 20 more
people to the Firing squad in Saqqez, where
a three day uprising in support of Kurdish
autonomy was put down Sunday,
* * *
Bo1sho ballerina LudmIIJa Vlasova was
embraced by her mother at a Moscow air
port and then told InteMewe her 73 i hour
delay In New York was macthess” The So
v et news agency Tass, referring to her hus-
band'& defeet on for the first time, said he
disappeared under circumstances which
aren t yet c ear ' V1asova s plane was held
until U.S. afficials determined she was re
turning to Moscow freely
* * *
Ronald Reagan's closest aide for 13 years
quit the former Caitforma governors presi
denUal campaign In a dispute aver po1it ca!
strategy. Lyn Nofzlger a staunch canserva
tive, reportedly opposed moves to make
Reagan appear more moderate. Reagan Is
the frontrunner n the race for the Repubji
can presidential nomnation
* * *
Heating oil stockpile goa's for the winter
will be reexamined, Energy Secretary Dun-
can promised Northeastern governors on his
second day in the Job The governors had
complarned that U.S. rules are creating
shortages Administration energy pofley will
be a major issue in the early pres denflal
pnmanes In New Hampshire and Massachu
setts
* * *
More curbs on nontaxic pollution 0! U S
waters were canceled by the EPA. The
agency s actions carried out congresswnal
changes in the C ean Water Act and affect
conventional” poI1utant , indudrng sus
pended solids, oil and grease and certain
bactena. The EPA esumated the saving to
industry at up to $200 million.
* * *
Japan will hold gene I e ecLtaus Oct. 7,
Prime Mini5ter Masayoshi Ohh 'a an
nounced H s Liberal Democratic Party will
seek a stronger posItion in the Diet's tower
house, where ft has had difficulty passing
1eg s atton, A substantial victory would
boost Ohira's career, rncreaslng his chances
of continuing as party president
* * *
Teachers' strikes continued In school dis
tricts n eight states, In Ok'ahoma City,
where a walkout by 1,000 teache was n Its
fifth day, the school superintendent refused
to resume barga nlng, citIng a state aw that
makes teacher strikes illegal Addftlonal
wa'kouts are possible next week In Detroit
and Indlanapohs,
* * *
Hurrkane David bore down an Barbados,
with winds of 75 m p h o greater extending
I miles In all directians, Bndgetown, the
CarWbean s and 's capilaL resembled a
ghost town as residents and tornists heeded
warnings to exercise “maximum precau-
Uon ” Forecastei said David cotild be the
worst threat to the Windward !s ands In 88
years ,
* * *
Freedom for four Pue o Ricans mpr s
oned for terrorist attacks n the 95Os was
recommended by the JusUce Department s
pardon attorney. Secreta y of State Vance s
reported to favor cammufing the r sen-
tences, too, on humanfta an and loreign
policy grounds Cuba's Fidel Castro has
promIsed to re ease four Jailed Americans n
returu.
* * *
Tbe discovery of a pa Jde called the
g uon that ha ds together the centers of at
ams like g ue was announced by phys dsts
at a conference in Batavia, ilL Any pracU
cal application Is at least 50 yea away, the
scientists cautioned. But they compared the
dIscovei with the deve opment of quantum
me hardcs, which paved the way for Iranst-
tar rad os, telev s ons and X ray machines
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