Skip to main content

Full text of "Financial Times , 1994, UK, English"

See other formats


■"'•■I u . 



y"'i u-., 


v.( 


, . '‘til... 

■*<!>; ,j. 'h 

v -1 

1 'I'!..,. '''■'I 


I'-.il " ! ««- 

i . 




•.i; 


■i’,. 


u In. 


1 '!■, 


■X 


» S'* 

^ i* 




» . r.r t- 


5* 

-‘4 St- 

C 7 . 3$ 

5^, igjf 
'*& & 




power. cftke CAP 

* **«• « 



ilgyti Bentsen . ' 

The€haUeri^:pfy... 

spreading prosperity 

#' Sr £T“ : ‘ : :' 


* ^ -i. 


Biftts&Gaa 


F^-r- ^>rv;„«rnis 
k? . ^V-T>>£>^ r > .. . . 

'/:■■ : Fieryfuturepr Europe’s 

. v : * : 13 th largest company 

' 5} ^v : **bM3 

ssX' *. ■■£*/. 


Richard Eyre 


Defending the theatre 

Rr kk. ^ page ^ X ' v 


FINANCIAL TIMES 



ir-.'Ope.s •fiufines-j Ke'.VopOLer 



EMS: Grid 


September 30, 1994 



o<j i% 


6% 


The chart shows the member currencies of the 
exchange rate mechanism measured against toe 
weakest currency in the system. Most of the curren- 
cies con fluctuate within 15 per cent of agreed central 
rates against the other members of the mechanism. 
The exceptions are the D-Mark and the guilder which 
move in a narroto 2.25 per cent band. 

Serbs block convoys: B os ni an Serbs reneged on 
a pledge to unbloc* seven UN relief convoys. 

Den o# thieves: Congo police traced a crime 
wave in Brazzaville to a gang already in pnson. A 
corrupt guard let gang members sbpoatofj^, 
commit armed robberies and return to their cells. 

Racing: Carnegie, owned by Dubai’s Sheikh 
Mohammed, won the Prix de l’Arc de Tnomphe in 
Paris. 


Afltt! 

Batata 

Maun 

BJgn 

CJP w* 

Caeht* 

Denote 

EflJ* 

Earn 

firtnd 

Franca 

Gemany 


sao? g*« asa w* 

taljso tWOKong HKS 1 B 
BROS rtunoarv Ft*® l*roxo 


Luflun totond 

ca.ia mi 
czkso ism 
OKiie wy 
££500 Jasao 
Bfir33 Jodv 
FMU Kuwfl 


00516 Neft 
RsSO l*O0M 
3*6.90 Nawy 
L3000 Omjn 
WOO PsHsen 


utcgo (War ofnaro 
Wilis SJtaaHa SF»1 
MOMS Sta0apc*SS43O 
H 425 S*wsfc RpKSLSD 
N8B90 S. Africa R1ZO0 
NKr17J» Spain Pte225 
CR150 Sweeten SKnS 
Swftz SRS30 


Jtn.se «*PP"« P* 60 Syria stsooo 
fhg Mart 33W00 Tunisia 0*1.500 

™ =■ “K is- as 


MONDAY OCTOBER 3 1994 


Chrysler plans to 
reduce number of 
parts suppliers 

Chrysler plans to cut the number of main vehicle 
component suppliers it uses from 1,200 at present to 
only about 150. The US carmaker is also expected to 
approve a rise in spending to some $22.5bn for 1995 
-99 compared with S20bn planned for 1994-98. 

Page SO 

Steel plan faces collapse: The European 
Co mmis s i on's plan to cut steel output fo re s certain 
fa ilure , German steelmakers say, because Europe's 
current recovery will make it impossible to reach 
agreement. Page 2 

Dresdner Bank and Banque Nationale de Paris 
plan to make joint acquisitions in Europe, fhrther 
strengthening the partnership they set up last year. 
They also plan to merge Spanish operations early 
next year. Page 21 

Anti-Yeltsin protesters fly the red flag 

About 7,000 communist 
sympathisers paraded 
with red flags in Moscow, 
chanting "Boris Yeltsin 
is a murderer". They 
were commemorating . 
those killed a year ago 
when the Russian presi- 
dent's tanks crashed an 
attack on the White 
House. Led by mourners 
carrying photographs of 
slain relatives, the pro- 
testers included a motley collection of communists, 
neo-fascists, priests and army officers. 

Woofworth chief quits: Woolworth chief 
executive William Lavin has quit the US retailer 
over differences with the board. His departure 
comes less than five months after he was stripped 
of the chairmanshi p Page 21 

London Stock Exchange is considering 
amending its rules on short selling - selling securi- 
ties one does not already own in the hope of buying 
them back more cheaply - to limit market manipu- 
lation. Page 21 

French yard wins order: French shipyard 
Chan tiers de 1‘Atlantique, owned by Anglo-French 
group CSC Alstham, landed a provisional order to 
two luxury liners from Royal Caribbean Cruises of 
Miami in a deal which could be worth $G0Qm . 

Police fire on demonstrators. Indian police 
killed four people and wounded at least 10 when 
they fired on Uttar Pradesh separatists. Hie protest- 
ers were at Muzaffemagar, heading for a rally in 
r w Delhi about 60 miles away. 

Pakistan bomb blast kills six: Six people were 
killed and 20 wounded when a bomb exploded in a 
bus about 94 miles from Islamabad. 

Vietnam exchange: Communist Vietnam's first 
stock exchange is expected to be operational by 
early 1995, the country’s official news agency said. 

It will begin with small-scale trading in bonds 
issued by government, local authorities, commer- 
cial banks and state companies. 

Inching towards equal pay: British women 
earn only 79 per cent as much as men, the Equal 
Opportunities Commission says. The figure has 
risen eight percentage points since equal pay laws 
were passed in 1975. 

Meclar victorious: Vladimir Meriar, twice 
Slovakia's prime minister, won a commanding vic- 
tory in weekend elections, opening the prospect of 
an alliance between socialists and extreme national- 
ists in the next government Page 20 

Academia overseas: Work has started in 
Thailand on the first British university to be built 
outside the UK. Funded by Thai financiers, it will 
be staffed by British academics and will award 
degrees validated by UK universities. Page 7 

European Monetary System: Rankings on the 
EMS grid scarcely changed last week and there was 
little movement on the European crosses in spite of 
turmoil on world financial markets. With the Ger- 
man elections looming, the D-Mark weakened, 
bringing it down below the Irish punt. The Dutch 
guilder slipped back slightly and French franc 
strengthened fractionally. Currencies, Page 87 


US and Japan both claim victory in trade dispute 


By Michiyo Nakamoto in Tokyo, 

Nancy Dunne m Washington and 
Richard Waters in New York 

The US and Japan both claimed victory 
yesterday after reaching a partial settle- 
ment of their long-running trade dis- 
pute. The deal averts the immediate 
threat of a trade war between the 
world’s two largest economies. 

The agreement on opening Japan's 
markets to US goods and services is also 
expected to influence currency markets, 
which had strengthened the yen on fears 
that the two countries would be unable 


to resolve the conflict. The last-minute 
negotiations resulted in agreement on 
opening the Japanese glass, insurance 
and government procurement markets - 
the first results of 14 months of tough 
talks under the framework pact 
However, the two sides were unable to 
reach a deal to lower barriers in Japan’s 
vehicle and auto parts market Foreign 
producers capture just 2.6 per cent of 
total sales in Japan, compared with 47 
per cent in the US. Japanese vehicle and 
auto parts exports account for 60 per 
cent of the US's $60bn annual trade defi- 
cit with Japan. 


The US will start an investigation into 
Japan’s replacement car parts market 
under Section 301 of US trade law, which 
could lead to sanctions against Japan in 
12 to 18 months. The inquiry is being 
carried out under Section 301 rather 
than the more aggressive Super 301, 
under which Japan might be labelled an 

unfair trader. 

Mr Mickey Kan tor, the US trade repre- 
sentative, said Japan's car mar ket 
remained discriminatory but noted that 
Japan's willingness to reach deals in 
other areas had been a factor in with- 
holding a Super 301 designation. 


In spite of the US move. Mr Ryu taro 
Hashimoto, Japan’s trade minister, said 
Tokyo was open to further discussion 
with the US on this issue. 

However, the two sides were likely to 
benefit from a cooling-off period before 
resuming discussions, he said. “In the 
area of auto and auto parts it is very 
regrettable that despite vigorous efforts 
in sincere discussions since July last 
year, the US government has decided to 
initiate a Section 301 investigation of the 
auto replacement parts." 

The apparent success of the latest 
round of negotiations will provide the 


Japanese government of prime minister 
Murayama with a welcome respite from 
one potentially explosive issue. 

Meanwhile, with the immediate dan- 
ger of sanctions behind them, officials 
were able to congratulate themselves on 
having averted another sharp jump in 
the yen’s value, which could have under- 
mined the country’s anaemic recovery. 

US companies in industries where the 
two sides agreed on market- 

continued on Page 20 
Details, Page 4 
Editorial Comment. Page 19 


IMF split 
over plan to 
boost world 
reserves 

Fund chief at odds with 
G7 nations over SDR issue 


Rom Peter Norman, 

Economics Editor, in Madrid 

Industrial countries’ plans to 
boost the world's monetary 
reserves by $23.5bn hung in the 
balance yesterday after develop- 
ing country members of the 
International Monetary Fund 
denounced them as insufficient. 

Differences over proposals for a 
selective issue of the IMF’s own 
reserve asset - known as the spe- 
cial drawing right - plunged the 
IMF’s policymaking Interim Com- 
mittee into what one official 
described as a “flaming row” yes- 
terday. 

At issue was a UK-US plan, 
adopted by the Group of Seven 
leading industrial nations, to 
allocate SDRl6bn ($23.5bn) to 
IMF members through a complex 
formula intended to favour poor 
developing nations and former 
communist countries such as 
Russia. 

Mr Philippe Maystadt, the Bet 
gian finance minister and 
Interim Committee chairman, 
was last night trying to arrange a 
compromise, although it was 
unclear if he could succeed. 

Some officials said the IMF 
itself could be thrown into crisis 
by tbp seemingly arcane dispute 
because Mr Michel Camdessus, 
the IMF manag in g director, had 
opposed the wishes of the indus- 
trial countries, which have a 
clear majority of votes on the 
fund's board. 

The officials said Mr Cam- 


dessus had alienated Mr Lloyd 
Bentsen, the OS treasury secre- 
tary and representative of the 
fund’s biggest shareholder, 
through his constant campaign- 
ing for a larger general SDR 
increase for all members of the 
IMF. Mr Camdessus’s views had 
the backing of the Fund’s devel- 
oping country members. 

He has argued for a general 
issue of SDR36bn to all Fund 
members which has been vigor- 
ously opposed by Germany, the 
US and Br itain 

They maintain that there is no 
global need for new liquidity of 

this kind 


MADRID CONFERENCE PAGE 5 
■ Full reports and analysis 
Lloyd Bentsen .Page 19 

Yesterday’s meetings began 
hopefully enough. The discus- 
sions in the Interim Committee 
followed the unanimous agree- 
ment of the G7 on Saturday, 
although it later emerged that 
France had accepted the UK-US 

pfon only grudgin gl y. 

The SDR issue - the first such 
injection of liquidity into the 
world’s monetary system since 
1981 - was specially structured to 
benefit 37 countries, including 
Russia, that had joined the fund 
in recent years and had no SDRs 
in their reserves. It was also 

Continued on Page 20 



Businessmen's wives help sweep a street in Bombay as part of a cleanliness drive to prevent the spread of plague News Digest, Page 3 neuter 

Object detected near Estonia wreck 


By Christopher Brown-Humes 
in Stockholm 

Finnish investigators said last 
night they had detected a large 
object lying close to the sunken 
Baltic ferry Estonia, heightening 
speculation that the vessel cap- 
sized because of the loss of an 
outer bow door. 

Mr Jouko Nourteva, a Finnish 
marine geologist, said the object 
was lying 10 to 20 metres from 
the bow, but it was not clear if it 
was part of the roll-on roll-off 
ship. 

Swedish officials have said the 
Estonia's outer bow door may 
have been ripped off in heavy 
seas last Wednesday, causing 
water to surge into the car deck 
and capsize the ferry within min- 
utes. Only about 140 of the ves- 
sel’s 1,050 passengers survived. 

Hoe Estonia, operated by the 
Swedish -Estonian company 
Estline, was sailing from the 
Estonian capital, Tallinn, to 
Stockholm when she sank in 
stormy seas. Mr Nourteva, who 


located the wreck on Friday 
using sophisticated sonar equip- 
ment, said: “The observation of a 
large object is certain because it 
was seen on all four sonar pic- 
tures that were taken." 

As memorial services were 
held at churches throughout 
Sweden. Finland and Estonia yes- 
terday, a Finnish search vessel 
carrying robot-mounted cameras 
yesterday filmed the Estonia 
wreck to try to assess why the 
vessel sank and the difficulty of 
recovering the 800 bodies 
believed to be inside. 

Investigators said the pictures 
from the search vessel were of 


“very good quality”, but added 
they would not be commenting 
on them until they had analysed 
them more closely. The ferry is 
lying in around 80m of water, 40k 
off the Finnish island of Ut5. 

Sweden, Denmark, Finland and 
Norway have all ordered urgent 
safety checks on roll-on roll-off 
ferries sailing in their waters 
amid reports of problems with 
the bow doors of other ships. 

Sweden’s Stena Line, the 
world’s leading ferry operator, 
has withdrawn one of its Irish 
Sea ferries from service because 
of problems with the bow-door 
locking mechanism. It said one of 


the locking pins of the 14-year-old 
Stena Felicity had sheared off, 
although there had been no 
water penetration. Officers on 
the Felicity unloaded cars and 
lorries through the stern doors of 
the 23,000-ton vessel. Stena said 
the problem was caused by an 
electrical fault. 

A fault was discovered on the 
vessel last month after the port- 
side outer door was found to be 
jammed shut, which used to oper- 
ate in the Baltic Sea. 


Ferry evacuation rales 
questioned. Page 2 


BSkyB faces early decision on 
flotation in US and Britain 


By Raymond Snoddy in London 

British Sky Broadcasting will 
have to decide this week if it is to 
go ahead with a flotation before 
Christmas on the London and 
New York stock exchanges. 

Shareholders of the satellite 
television venture have been hi 
talks for the past month trying to 
hamm er out an agreement on a 
flotation that would value the 
company at more than £4bn. 

Immediate agreement would 
allow a share issue to go ahead 
between now and Christmas - 
the season when most new satel- 
lite dishes and subscriptions are 
sold. 

If this opportunity is missed 
conditions for a flotation might 
not be as favourable again until 
the autumn of next year. 

Unanimous agreement is 
almost certainly needed between 
the main shareholders - Mr 
Rupert Murdoch’s News Corpora- 
tion: Chargeurs, the french 
transport and media group: Pear- 


son. the media group that owns 
the Financial Times: and Gran- 
ada, the UK media, leisure and 
computer services company. 

A flotation would be difficult to 
organise without the agreement 
of all the main shareholders 
because all four have preemp- 
tion rights to buy if any of the 
others want to sell- 

in addition, there are complex 
tax issues involved in replacing 
debt with equity. Mr Murdoch, 
advised by Goldman Sachs, is 
keen to float, primarily in order 
to reduce debt and release capital 
to invest in his Asian satellite 
venture. Star TV. There may also 
be a political dimension. In the 
UK, a future Labour government 
could present News C-orp with 
the choice of selling its national 
newspapers or reducing its 50 per 
cent stake in BSkyB. The latest 
date for the next general election 
in Britain is 1997. 

Granada has frequently said it 
would sell its 13.5 per cent stake 
under the right conditions. 


CONTENTS 


Pearson, advised by Lazard 
Brothers, has suggested it might 
be interested in increasing its 
stake in BSkyB, which lifted its 
operating profits in the year to 
June from £54. Im to £176.8m. 
However, it is also not thought to 
be averse to a flotation. 

The main obstacle to a flota- 
tion appears to be Chargeurs, 
which does not have a pressing 
need for funds and believes the 
value of the satellite company 
will rise. It may decide to hold on 
•to its stake. 

One possibility under consider- 
ation is to sell shares directly to 
the public, including BSkyB sub- 
scribers, as wen as institutions. 

At the end of June. BSkyB had 
3.45m subscribers, 74 per cent 
receiving the television channels 
on dishes with most of the rest 
attached to cable networks. At 
the weekend - BSkyB added five 
new services to its Sky Multi- 
channels package and Increased 
all subscription charges by £3 a 
month. 


W enHo ng l Meote ■ 


.2-6 


UK News 

a 


so 

Oids ton WMfc 42 


16 


20 

Weakrtnad— — - 

24 


timnraa 


CaXfaSMXd 

42 

Managed Funds 

33-37 

Leader Page 

19 

rnneiilw 


Morey i*** 

37 


— re 

IIK/W 

vygatn 



GUnner 

19 

JteM* 


Share WomsUon 

33-42 

thmmH , 

13 

TTa Makets 

25 

Worid Start Mutate- 

-3-12 

Uvfa 

15 

BregpQ MsietS — 

26 



MS 

17 

WoW Bend Markets 

26 



ftrin-nTwri 

« 

E$uny Martas. — 

30 



An GiXte 

17 

FT Wodd Aduaies — 3 

Bui&a Stfvtos _ ^ 

,31-34 


^ the* niMANriAL TIMES LIMITED 1994 No 32,487 Week No40^ 


LONDON - PARIS - FRANKFURT - NEW YORK - TOKYO 



a r-;:. 


r-ry. r-' 

Vi-. : •. ... V. . .* —£Z .~ r ■* 




V/Jr" ’ . 



arppic scope for raorr. P4rtk\ulariy 
• --•>ben yea eomicter we’re advisers to 
'mor^ - wc’dbc' =fUuds total{iiig^£245m. Interested 

Talk to us'. 




lug data tor iho monitoring or targets, ana uie ior mu iiHiiuiiug ui waaie ji.iLAoa.uB. i»»-nu b i 




FINANCIAL. TIMES MONDAY OCTOBER 3 1994 


NEWS: EUROPE 


Brussels steel plan 
expected to collapse 


By Michael Undemann in 
Bonn, Emma Tucker in 
Brussels and Andrew Baxter 
in London 

The European Commission’s 
plan to cut steel output is as 
good as dead, according to Ger- 
man steelmakers who say it 
will be impossible to reach 
agreement now that economic 
recovery is picking up across 
Europe. 

German steel companies 
have indicated they are pre- 
pared to let the plan collapse 
and wait fbr the next recession 
before trying once more to 
agree on capacity cuts. 

They are also happy to 
forego the aid package prom- 
ised by the European Commis- 
sion if the capacity cuts are 
agreed in full This includes 
finance for redundancies, pro- 
tection from cheaper eastern 
European imports and a quar- 
terly system for monitoring 
steel output 

Any threat to the capacity 
cuts plan would be a big set- 
back for Brussels, which has 
spent nearly two years cajoling 
steelmakers across Europe to 
cut capacity as Europe dragged 
itself through its worst post- 
war recession. 

The latest development how- 
ever, vindicates the fears of 
some steel industry observers 
and private sector producers 
that a short-term rise in 
demand might be used as an 
excuse to postpone cuts 
designed to correct chronic 
overcapacity. 

Last week at an EU ministe- 
rial meeting Mr Gunther 
Rexrodt, German economics 

German 
seeks new 
EU cartel 
authority 

By Judy Dempsey in Berlin 

European anti-trust decisions 
should be made by an Indepen- 
dent authority Instead of the 
European Commission in order 
to reduce political interference, 
the head of the German cartel 
office has told the Financial 
Times. 

Mr Dieter Wolf said he hopes 
Germany will place such a pro- 
posal on the agenda of the 
Intergovernmental Meeting 
scheduled for 1996. 

Mr Wolf, a staunch advocate 
of reducing political influence 
in mergers and anti-trust deci- 
sions. said the current deci- 
sion-making structures in 
Brussels were not transparent 
enough and were often suscep- 
tible to “political lobbies". 

“I am not b laming the Com- 
missioners for this. But it is a 
consequence of the structure of 
decision-making. Every com- 
missioner has different tasks to 
fulfiL But he is also a politi- 
cian. His understanding of the 
task is also a political one,” 
said Mr Wolf. 

What concerns the cartel 
office, which has often been 


THE FINANCIAL TIMES 
Published bj The Financial Times 
(Europe) GmhH. Nibcluujienplatz 3, 
603 IS Frankfurt am Main. Germany. 
Telephone ++49 O'* 156 850. Fm ++44 
69 $464481. Teles 416193. Represented 
in Frankfurt by J. Waller Brand. Wil- 
helm J. Bribed. Colin A. Kerman] us 
GcachAftsTuhrcr and in London by 
David C.M. Bdl and Alan C. Miller. 
Primer DVM Druck-Venricb und Mar- 
keting GmbH. Admiral- Rosendahl- 
Slrassc 3a. 63263 Neu-lsenbuig (owned 
by Hum yet International). ISSN: ISSN 
0174-7363. Responsible Editor Richard 
Lambert, do The Financial Times Lim- 
ited. Number One Southwark Bridge. 
London SEf 9HL. UK. Shareholders of 
the Financial Times (Europe) GmbH 
are: The Financial Tunes I Europe I Ltd, 
London and F.T. I Germany Advertis- 
ing) Ltd. London. Shareholder of the 
above mentioned two companies is: The 
Financial Tunc, Limned, Number One 
Southwark Bridge. London SE1 4HL. 
The Company is incorporated under the 
lam of England and Woks. Chairman: 
D.C.M. BdL 

FRANCE: Publishing Director: D. 
Good. 168 Rue de Rivoli. F-75044 Paris 
Cedes 01. Telephone (01) 4297-0621. 
Fox (OH 4297-0629. Printer S.A. Nord 
Eclair. 15/21 Rue de Cute. F-59IOO 
Roubaix Codex I. Editor Richard Lam- 
bert. ISSN: ISSN 1 14S-2753. Commis- 
sion Paritaiic No 67SCUID. 

DENMARK: Financial Times (Scandin- 
avia) Ltd. VimraelskaCicd 42A. 
DK-llbl Cofx-ntugenK. Telephone 33 
13 44 41. Fax 33 93 53 35. 


minister, strongly criticised 
the steel industry for asking 
the commission to devise a res- 
cue plan when times were 
hard, but abandoning it as 
soon as prices picked up. 

“It is not good practice fbr 
the industry to enjoy support 
when things are bad and then 
to not reduce capacity when 
things get better ” be said. 


‘The plan is as 
good as dead - 
you can forget 
about further 
capacity cuts. 
We need more 
capacity’ 


He spoke shortly after Mr 
Martin Bangs mann. industry 
commissioner, announced that 
unless the EU’s steel sector 

had produced the minimum 

level of cuts in capacity by 
November 8. the commission 
would withdraw its support 
So far industry has only 
achieved 11m tonnes of capac- 
ity cuts and is unlikely to meet 
the 19m minimum required 
under the plan by the begin- 
ning of November. 

“The same thing happened 
in 1985 fbr the first big steel 
crisis.” said a senior commis- 
sion official. “Reductions in 
capacity then were below what 
was necessary, and this led to 
the second steel crisis in 1991.” 

But in Germany, one indus- 
try source said: “The plan is as 



a* 


if- 

.L<; . 





/T 




wr 


% As* 


i 


Wolf: campaigning against political interference 


criticised for not taking a more 
robust attitude towards merg- 
ers within Germany, especially 
in the retailing and media sec- 
tors, is that there are too many 
interest groups in Brussels lob- 
bying behind the scenes on 
anti-trust decisions. “It is 
sometimes unclear why some 
merger decisions are made," he 
said, adding that “Brussels 
wants to keep the monopoly of 
granting exemptions from 
[individual] cartel prohibi- 
tions". 

“Merger decisions contain 
sharp interventions from the 
state into the market. Take the 
case of capital allocation,” he 
said. “If there is a proposal for 
a merger between a French 
and a German company it is 
clear [the decision] has direct 
repercussions on where the 
investments will take place. It 
involves getting influence on 


the flow of capital Maybe this 
is very attractive and seductive 
for politics. But that is why it 
makes it all the more neces- 
sary for an independent body 
to decide on the basis of law.” 

Mr Wolf, however, denied 
suggestions that the indepen- 
dent body would be modelled 
on Germany’s own cartel 
office, which he claimed was 
“completely independent from 
political interference”. Instead, 
as a first step he proposed that 
it be controlled by the Euro- 
pean Court in Luxembourg, 
bat added that “the need and 
possibility for it to overrule a 
decision for reasons of public 
interest would have to exist”. 

Mr Wolf conceded that Ger- 
many had not yet received any 
substantial backing for its pro- 
posals but added that France is 
becoming increasingly 
attracted to the idea. 


Ferry evacuation rules questioned 

The Estonia disaster may lead to a review of emergency procedures, writes Hugh Carnegy 


good as dead - you can forget 
about further capacity cuts. 
Take hot-rolling capacity - 
we’re working flat out. We 
need more capacity.” 

The German Steel Federation 
said last week that output this 
year was expected to be 10 per 
cent higher than last year and 
that prices were beginning to 
improve. It said the German 
steel industry had shed 140.000 
jobs over the last five years, 
costing producers about 
DM4bn (.El.Gbn), and that it 
had made all the capacity cuts 
which could be expected, 
including last year's closure by 
Krupp Hoesch of its Rheinhau- 
sen plant. Instead the Germans 
have pointed the finger at sub- 
sidised state-owned Italian and 
Spanish steelmakers for not 
doing their part. 

German steelmakers may 
also argue that capacity cuts 
make little sense given that 
the future of Elko Stahl, the 
ailing steel plant in eastern 
Germany, is still uncertain. 

Cockerill Sambre, the Bel- 
gian steel group, and the Bre- 
men-based Hegemann group 
are leading the race for a stake 
in Eko Stahl and both have 
indicated they would invest in 
a hot-rolling mill which would 
probably produce about 2m 
tonnes annually. 

Last month British Steel said 
European demand for strip 
mill products had risen signifi- 
cantly over recent months, and 
was expected to continue to 
strengthen. But there was also 
a shortage of steel due partly 
to temporary closures of some 
European blast furnaces for 
refining. 


T he catastrophic failure 
of lifeboats and life rafts 
to save passengers in 
last week's Baltic ferry disaster 
is set to bring demands for a 
review of emergency proce- 
dures on passenger vessels as 
well as the review promised by 
the International Maritime 
Organisation of the design of 
roll-on, roll-off ships. 

One of the most distressing 
sights from the rescue opera- 
tion of the Estonia, which cap- 
sized and sank with the loss of 
more than 900 lives, was of doz- 
ens of life rafts discovered 
either empty, or In many cases 
swamped by icy water and con- 
taining the bodies of people 
who drowned or died of expo- 
sure despite managing to clam- 
ber aboard the rubber boats. 
Only a handful of the Estonia’s 
large lifeboats were even 
launched 

“I can agree that the equip- 
ment was not doing its job 
since so many died, but it is up 
to the rule makers and design- 
ers to look into this,” Mr Sten 
Forsberg, technical director of 
Nordstrom and Timlin, the 
Swedish co-operator of the 
Estonia, said at the weekend. 
“I am quite sure that the after- 
math of this tremendous trag- 
edy will result in stricter regu- 
lations for life-saving 
equipment” 

The chilling evidence from 
the Estonia suggests that in a 
case where a ship lists sud- 
denly and heavily, the ordered 
evacuation of passengers in 
lifeboats and life rafts can 
quickly become virtually 
impossible - especially in 
storm conditions and with 
panic surging through a 
stricken ship. A spokeswoman 



The Swedish flag is draped in black for yesterday's day of mourning for the ferry disaster nuur 


for the Viking Line, a Finnish- 
based operator in the Baltic 
which used to run the Estonia, 
said in the best conditions pre- 
paring and lamraWwg lifeboats 
takes 15 to 20 minutes. “But in 
conditions like those faced by 
the Estonia, the system can 
quickly break down,” she said. 

Ship operators say lifeboats 
cannot be launched if a ship is 
listing more than 15 degrees. 
But in heavy seas, a lesser fist 


may make launching impossi- 
ble. As both lifeboats and 
man; life rafts are designed to 
be loaded with passengers 
before being lowered into the 
water, this means that even in 
conditions much less severe 
than those faced by the 
Estonia, evacuating passengers 
by lifeboat fails. 

The Estonia carried rubber 
life rafts packed in plastic con- 
tainers. The rafts were 


designed to pop up to the sur- 
face and self-inflate once sub- 
merged below a depth of four 
metres - which they did. But 
most clearly were easily 
swamped by the high seas, as 
water washed in through the 
door in their weatherproof cov- 
ers. One survivor said the raft 
he clambered on to was upside 
down. 

The Swedish newspaper, 
Dagens Industri. on Saturday 


quoted Mr Jens Peter Bie, an 
executive at the Danish com- 
pany Viking Life-Saving Equip- 
meat, which supplied life rafts 
to the Estonia, as saying the 
rafts on the ship were 14 yearn 
old. He said newer, self-inflat- 
ing and self-righting rafts were 
available, but ship owners 
were deterred from buying 
them by costs 30-40 per cent 
greater than standard raffs. 

Mr Harri Kulovara. 
operations chief for the Finn- 
ish-run Silja Line, said: “I 
believe the rubber life rafts can 
be more effective than the tra- 
ditional lifeboats - they are 
much easier to launch and use. 
But they must be launched 
properly." 

Questions have also been 
raised since the Estonia disas- 
ter about the way ferry opera- 
tors brief passengers on emer- 
gency procedures. The 
requirement under IMO regula- 
tions falls well short of the 
obligatory safety demonstra- 
tions made on airlines. 

No lifeboat drill Is required 
on the 12-14 hour overnight 
sailings that are the common 
duration on Baltic routes and 
none are offered by the 
operators. 

Swedish and Finnish opera- 
tors say their crews are regu- 
larly drilled to cope with emer- 
gencies. They make public 
announcements to stress to 
passengers the importance of 
reading the emergency proce- 
dure notices and run videos on 
passenger TV services. 

However, as the Estonia 
catastrophe showed, even the 
best prepared crews and pas- 
sengers can be quickly over- 
come when a ship begins to list 
and sink. 


Tragedy overshadows PM’s demise 

John Lloyd talks to the politician whose policy success was clouded by secret deals 

A fter last week's tragic Ocober 1992. he and Mr Slim have been pressing hard on Nowhere else in the post- country vulnerable to pop 
events in Estonia, the Kallas, chairman of the Esto- the people oat of work to get Soviet mosaic has such a self- lism, appeared to largely d 
fall of Mr Mart Laar, man central bank, sold nearly other jobs. We won’t increase confident cadre of reformers count that: “It would be vc 


A fter last week's tragic 
events in Estonia, the 
fall of Mr Mart Laar, 
prime minister of the country 
fbr two years, has been side- 
lined. The sinking of the ferry 
Estonia revealed a country 
still uncertain of its capacities 
to absorb the technical, organ- 
isational and moral conse- 
quences of the disaster: but 
tiie forced resignation of Mr 
Laar has so far shown a politi- 
cal nation determined to 
observe a constitutional order 
still in its infancy. 

Estonia is by some way the 
most successful of the former 
Soviet states in sloughing off a 
forced Soviet! sation, and Hr 
Laar, in what was by post- 
communlst standards a long 
premiership, was the central 
figure in the success. Dr Wer- 
ner Unger, the former German 
ambassador to the European 
Commission, in Tallinn last 
week to advise on the coun- 
try’s efforts to accede to the 
European Union, ran through 
a checklist of achievements: 
“A pluralistic democracy, a 
market economy, liberalised 
trade, 60 per cent of enter- 
prises privatised, GDP grow- 
ing, unemployment [1.8 per 
cent] much lower than western 
Europe, no budget deficit, pub- 
lic debt 5 per cent of GDP, 
exports growing, imports 
growing more rapidly because 
of the purchase of investment 
goods and an influx of foreign 
investment. Wonderful." 

Why on earth should a 
prime minister go after all of 
that? Because he was seen to 
conceal vital matters from par- 
liament a grave matter in a 
plain-speaking state. Soon 
after his accession to office in 


Ocober 1992. be and Mr Slim 
Kan as, chairman of the Esto- 
nian central bank, sold nearly 
Rbs2 bn which had been 
dumped in the bank jnst 
before the country adopted its 
own kroon currency - to 
Chechnya, the rebel Russian 
republic. It was done secretly, 
by intermediaries who were 
close to the prime minister, 
and It came to light only this 
year; it was underscored by 
the revelation of another 
secret Laar deal: to buy small 
arms from Israel for Estonia's 
new armed forces. 

The case against is that Mr 
Laar concealed the deal, and 
may have allowed Intermedi- 
aries to benefit (there has been 
no public charge that he bene- 
fited himself) and thus dam- 
aged a still fragile democratic 
system. His defence, vigor- 
ously put in an interview, is 
that “there was no time for 
discussion; Kallas and I were 
the monetary committee 
charged with all matters 
affecting the introduction of 
the new currency; and frankly, 
the money helped us enor- 
mously in making the 
budget" 

■ The tbree-to-one vote 
against him in the parliament 
last week be interprets as a 
signal that the parties in coali- 
tion with his Pro Patria group, 
unable to sustain the hard 
pounding attendant on severe 
observance of a tight money 
programme, were seeking 
ways ont. The social demo- 
crats, whose defection sealed 
his fate, left because they 
could not get a rise in the low 
unemployment benefit. For the 
neo-liberal Mr Laar, issues like 
these are fundamental. “We 


have been pressing hard on 
the people out of work to get 
other jobs. We won't increase 
the benefit except to those 
who take training for new 
jobs. And yon see the result: 
low unemployment" 

The two institutions which 
have done most to ingrain the 
market culture into Estonia - 
the Laar cabinet and the cen- 
tral bank - remain very 
largely confident that they 
have shorn up capitalism 
against any future ruin. 


Nowhere else in the post- 
Soviet mosaic has such a self- 
confident cadre of reformers 
emerged. Mr Enn Telman n, the 
deputy chairman of the bank, 
says that “the legislation of 
the country [which forbids the 
central hank to lend money to 
the budget] will not allow irre- 
sponsibility. It is possible that 
politicians can change this but 
I don’t fear it" 

Hie prime minister, who had 
in parliament warned tbat 
Estonia was still a fragile 



Mart Laar forced to resign last week as Estonia’s prime minister 


country vulnerable to popn- 
lism, appeared to hugely dis- 
count that: “It would be very 
hard. There has been such a 
change of character in the peo- 
ple. The old communist nonun • 
datura has no base." 

Mr Laar's optimism is bol- 
stered by the fact that his 
partner in the concealed rou- 
ble deal, central bank chair- 
man Kailas, has emerged as 
the candidate of the right for 
prime minister, and Is sup- 
ported by some of those who 
passed the vote of censure on 
the prime minister. 

The opposition parties are 
very much divided: the only 
candidate talked of is Mr Hit 
Vahi, briefly prime minister 
before Mr Laar, who, says the 
latter, left him a legacy of 
high inflation and an 
untackled structural crisis. 
“For the first months 1 had an 
appointment book which was 
fall from morning to night 
with meetings with directors, 
who wanted the cheap credit 
they had always got 1 told 
each of them "you cannot get 
it*." 

Choosing a new prime minis- 
ter is the task of Mr Lennart 
Men, the president - a role 
with limited powers which, Mr 
Laar (no ally) says he con- 
stantly tried to exceed. Mr 
Men, consumed last week with 
the dolorous task of giving 
public representation to his 
country's loss, will this week 
resume the talks with faction 
leaders from which a candi- 
date should come. His own 
preference is for a centrist fig- 
ure: Mr Kallas is not that. 
Estonia may be in for a change 
of course: but it will not be 
fundamental. 


Walesa makes his peace with Solidarity union 


By Christopher Bob inski in Warsaw 

President Lech Walesa made peace 
with the Solidarity trade union 
movement and attacked Poland's 
centre-left coalition government at 
the weekend for slowing down 
reform, in the opening salvoes of 
what promises to be a long cam- 
paign to win him a second term In 
elections due In November 1995. 

“The left wing’s paw has grown 
too large,” he told sceptical dele- 


gates at Solidarity's annual con- 
gress. Mr Walesa led the movement 
to victory over the communists five 
years ago but the union last year 
refused to invite him, for failing to 
support the movement's shop floor 
aims and being “too soft” on the 
former communists, the Left Demo- 
cratic Alliance (SLD). The SLD has 
been in government with the PSL 
farmers’ party since the autumn of 
1993. 

“Old methods of government are 


returning, Poland faces the threat of 
stagnation." Mr Walesa said as he 
appealed to the union to agree to 
become part of a federation of Soli- 
darity-based parties to win parlia- 
mentary elections in 1997 and next 
year's presidential ballot. 

Soon after the president's speech 
Mr Waldemar Pawlak, the prime 
minister, went on television to say 
that Poland's Mass Privatisation 
Scbeme (MPP), covering 460 state 
sector enterprises, would be going 


ahead ahead. Mr Pawlak has 
recently come under attack from 
opposition politicians and the media 
for delaying the scheme, under 
which the Polish people are to be 
given shares in specially established 
investment funds. 

The funds, which will stay in exis- 
tence for 10 years, are in turn to be 
handed equity in the 460 companies. 

The scheme has acquired a signifi- 
cance far outweighing its actual 
impact on privatising Poland's 5,000 


or so state sector enterprises as both 
the World Bank and the IMF have 
made disbursement of loans, helping 
to finance Poland's recent London 
Club commercial bank debt reduc- 
tion deal conditional on the MPP 
moving ahead. 

Mr Pawlak, however, dismissed 
opposition warnings that Poland’s 
standing with these institutions 
would plummet and the debt agree- 
ments collapse as a result of the 
delay since July. Instead Mr Pawlak 


explained he was worried that for- 
eign fund managers were being 
given too great a role in the 
MPP. 

He also expressed his view that 
the enterprises which were to be pri- 
vatised through the scheme bad 
been undervalued. 

Once these doubts had been 
removed the plan would go ahead. 
Mr Pawlak said. 

A cabinet meeting is to examine 
the programme tommorrow. 


iv!:< : 


v * 

« ' : * 


1 v\' I 


'} fill . 

■‘!\ 


lM \ 

Ml \ 


DON’T JUST 
UPGRADE YOUR 
SEAT, UPGRADE 
YOUR AIRLINE. 


F1RS T CLASS COMFORT FOR A BUSINF.SS CLASS FARE. 

Airline I Business Class I Business j Flights fr.mi i .niJ.iii, Pan-, 


Amcfujii f 

Air France T 

British Airways ; 

CONTINENTAL > 

Delta J 

l.utthansa J 

United j 

'HIM* • —nr,, j, nn, ,.r ... , 

•■•Dii*iiiHm mth i •miiiwnijl 


Business Class 
Sleeper Scat 

NO 

Business 
Class Pitch 

4(1* 

NO 

«S* 

NO 

4lt" 

YES 

55" 

NO 

41" 

NO 

NO 

-III" 

4ft" 


(r.inklurt .lild M.idriJ ti* 
Now \nrl., Hiiuh(,,ii and Denier 
and >>ii tu I tc» U.V cities. 


in* i ml jppli tu Mfurtm 
•N— 111. «hsh IhIiih 14 


Wftx 

\iiim m 


A 




i 




einise 


'■ * - ’ ‘ ■■ \V.!» 


. \ 

i! . 


' i 

‘ ’ f • ^ 

6 ^ 


FINANCIAL TIMES MONDAY OCTOBER 3 1994 


NEWS: INTERNATIONAL 


INJERNATTONAL NEWS DIGEST 

Delhi plague 
fears recede 

Schools in Delhi, dosed last week because of the plague which 
tomorrow amid claims by health 
officials that the disease is being brought under control. But 
Palnsten, meanwhile, has banned entry of foreign watirmflit 
travelling from India because it fears spread of the plague. 

The P aki s tani s said all travel between India and Pakistan 
had been suspended except for returning Pakistani nationals, 
who will be subject to quarantine. Pakistan put 28 foreign 
nationals to quarantine at the border village of Wagha at the 
weekend, along with 320 returning Pakistanis. Officials said 
they would install telephone lines for the stranded travellers, 
who included 12 Malaysians and nationals from Iran, Morocco, 
Canada, Bahrain, Germany, Britain, Australia, South Africa, 
the US and Japan. 

Delhi authorities decided to reopen schools because, they 
said, medical reports indicated a very high proportion of 
patients suspected of plague were in fact suffering from other 
illnesses. The number of suspected cases to India rose by 1,600 
at the weekend to just over 4,050. according to the govern- 
ment's National Institute of Communicable Diseases. The offi- 
cial death toll is just over 50. Stefan Wagstyl, New Delhi 

Tension high in Indian state 

Political tensions in the Indian state of Uttar Pradesh were 
running high last night, after police shot dead four demonstra- 
tors and injured 10. The demonstrators were on their way to 
New Delhi for a rally in support of demands for a separate 
state for the northern hills of Uttar Pradesh, where many feel 
alienated from the plainsmen who dominate the state. The 
dash was at Mtizzafamagar, 200km from Delhi The Delhi rally 
of 50,000 people also turned violent when students, who have 
led the statehood campaign, protested against the presence of 
national politicians on the speakers’ platform. 

Demands for a hill state have been revived after a dpricin n 
by the Uttar Pradesh administration, led by lower caste par- 
ties, to implement laws reserving up to 50 per cent of govern- 
ment jobs and college places for lower caste Urndns. The hill 
districts, where upper caste Hindus dominate, erupted with 
protests. The conflict has thrown the state administration into 
disarray and has embarrassed the Congress CD party of Mr P V 
Narasimha Rao, the prime minister. Stefan Wagstyl, New Delhi 

Turkey in threat to Greece 

Turkey has threatened Greece with war if Athens extends its 
territorial waters in the Aegean into Turkish territory, foreign 
minister Mr Mumtaz Soysa! said yesterday. Mr Soysal said he 
issued the warning to his Greek counterpart, Mr Karolos 
Papoulias, while both were at the UN General Assembly last 
week. The Greek foreign minister told me that [Greece] had 
the right to extend its waters to 12 miles. I said that would 
lead to very serious consequences. We let it be known that we 
didn't want war but would go to war in such a situation." Mr 
Soysal has gained a reputation for being tough on Turkey’s 
traditional rival, Greece, since becoming foreign minister in 
July. Though Nato allies, Turkey and Greece came to the 
brink of war in 1987 in a row over miner al rights in the 
Aegean. Reuter, Ankara 

Vietnam exchange to open 

Vietnam’s first securities exchange is expected to open early 
next year, the official Vietnam News Agency reported at the 
weekend Quoting the central State Bank, it said the exchange 
would start “on a very small scale**, with trading in bonds 
issued by the government, focal authorities, commercial banks 
and state companies.. Trading in shares of privatised state 
companies, only a handful of which have so far issued stock to 
shareholders, win follow later. The report confirmed that the 
State Bank and Finance Ministry's joint committee on setting 
up the exchange intended to go ahead despite the slow pace of 
privatisation. Vietnam, which currently has no secondary 
markets, sees the stock exchange as a vital part of market-ori- 
ented reforms launched in the late 1980s. Reuter, Hanoi 

Calls to clip Crimea’s wings 

Crimea's ongoing political struggle has prompted growing 
calls in Kiev for Ukraine to revoke the peninsula's status as an 
autonomous republic. If the crisis continues, Kiev must take 
direct control over Crimea, urged Mr Vladimir Mukhin, the 
Ukrainian parliament's defence commission chairman. He was 
backed by Ukraine's national security adviser, although Mr 
Volodymir Horbulin urged time to let Crimeans resolve the 
problem without “tough measures”. Crimea's parliament voted 
on Thursday to strip President Yuri Meshkov of most powers. 
When this happened last month Mr Meshkov suspended par- 
liament but relented after two days. The struggle stems from 
disagreements over economic policy, cabinet appointments 
and speed of reintegration with Russia. Ukraine's government 
has taken advantage of the internal struggle to exert more 
control over the region. Matthew Kaminski, Kiev 

Radical right leader deposed 

Mr Franz Schbnhuber, co-founder and leader of Germany’s 
extreme right-wing Republicans, was deposed at the weekend 
by a unanimous decision of his national executive. This fol- 
lows a series of election defeats and secret negotiations 
between Mr Schdnhuber and his erstwhile arch rival, Mr 
Gerhard Frey, leader of the equally extreme Deutsche Volksu- 
nion (DVU). The 71 -year -old Republicans’ leader is the only 
nationally known figure in the party, and he immediately 
announced his determination to fight the move, which he said 
was illegal and contrary to party rules. Quentin Peel, Bonn 


Russian 

currency 

concerns 

deepen 

By John Lloyd in Moscow 

The fall in the rouble is “very 
dangerous'’ to the Russian 
government and could push 
reform off course because the 
government would lose the 
fragile confidence it created in 
the country earlier this year, 
according to the senior official 
concerned with the Russian 
budget. 

Mr Sergei Alexashenko, the 
deputy finance minister, said, 
however, that his government 
was still prepared to take 
“unpopular” measures in 
order to attract international 
financial support for a reform 
programme. 

In an interview with the FT, 
Mr Alexashenko said that 
there was very little the gov- 
ernment could do to stem the 
flight from the rouble to the 
dollar. Mr Alexashenko said 
that the central bank had 
Spent more than S2bn t£1.2bn) 
defending the rouble in the 
past two to three months and 
on his calculation had only 
$4bn-$L5bn left - “and after 
that, what, clearly, there is 
nothing”. 

The rouble has lost more 
than 16 per cent of its value 
against the dollar in the past 
week and at close of trading 
on Friday stood at Rbs2,633 to 
the dollar. 

The deputy minister said 
that “there will be a drastic 
rise in the Inflationary expec- 
tations of the people, and of 
course an increase in inflation 
itself - and in the medium 
term an increase in govern- 
ment expenditure. But the psy- 
chological result will be the 
mistrust of government policy 
and a continued outflow of 
funds from the rouble to hard 
currencies.” 

Mr Alexashenko - a young 
economist who was formerly 
in the “expert group” created 
by Professor Yevgeny Yasin, 
now a presidential adviser - 
has emerged as a key player in 
the battle to keep the govern- 
ment’s tight money strategy 
on course and to argue with 
the international financial 
institutions for increased sup- 
port Brought into the govern- 
ment less titan a year ago. he 
says that “the government of 
(prime minister Victor) Cher- 
nomyrdin is much tougher 
than (former prime minister 
Yegor) Gaidar's. This prime 
minister says No to every- 
thing." 

Speaking in a break between 
hectic talks on the 1995 budget 
- already delayed in its prom- 
ised delivery to the parliament 
~ he said the assumptions for 
that budget would also be 
thrown into confusion by a 
continuing plunge in the value 
of the rouble. “We were 
assuming a certain dynamic in 
the exchange rate, we did not 
expect such a devaluation. 

“If this continues we will 
have to change the budget's 
parameters - and cut down on 
expenditure. The process will 
be very hard." 

The International Monetary 
Fund, now at its annual con- 
clave in Madrid, should “make 
dear its view one way or the 
other," said Mr Ale x as he nk o . 
“For two years we had a lot of 
promises but little aid 
delivered. 

“Now 1 believe the govern- 
ment is ready to take even 
unpopular decisions - but Fm 
not sure that either the IMF or 
the Group of Seven are ready 
to say what measures they will 
support,” he said. 


“I liUe to think of it 
as my European rial 
in Manhattan.” 


From the moment you enter its marhle-and-gilt lobby, tbe Pierre 
calls to mind the quiet splendor the world's great hotels ate acclaimed for. 

Our staff is poised to greet you, and serve you, in over 60 languages. 
At a moment 9 notice, our master chefs can cater a last-minute partners’ 
meeting in one of our luxurious suites, and our concierge can obtain 
“sold-out” opera tickets— often for tbe same evening. In fact, they will 
attend to your needs with such grace and warmth, you'll feel that 
Fifth Avenue and 6lst Street is not merely our address, but your own. 
Telephone your travel counselor or call us at 071-936-5019- 



K FanSuMM-lKu' Htmu. 


nw I'm. *1 


.iivLui, 


Slovakia faces a shift to 
extremes of government 


By Vincent Boland 
in Bratislava 

If Mr Vladimir Meciar becomes 
prime minium- after the week- 
end's general elections it will 
shift Slovak politics away from 
the centre ground occupied by 
the outgoing government and 
towards the extremes of both 
left and right. 

The most likely new coali- 
tion will be between HZDS. the 
socialist Union of Slovak Work- 
ers (ZRS) and the extreme 
nationalists of the Slovak 
National Party (FNS), which 
between them could have 82 of 
the 150 seats in parliament. 
This presents Mr Medar with a 
formidable hpnd of cards. 

While Mr Medar 1 s appoint- 
ment as prime minister is not 
yet guaranteed, observers in 
Bratislava said yesterday there 
were no other likely candidate 
among senior HZDS officials. 
Mr Medar's outsize personality 
dominates the party. 

If he is appointed, it leaves 
the way clear for him to carry 
out his campaign promises to 
undo voucher privatisation, 
curb the growing influence of 
Slovakia’s ethnic Hungarian 
minority, and seek to oust 
President Michal Eovac, the 
man who helped force him out 
of office as prime minister six 
months ago. 

The outgoing government of 
Mr Jozef Moravcik made hesi- 
tant progress towards restart- 
ing voucher privatisation in 
Slovakia, and began a process 
of rapprochement with Hun- 
gary over the issue of Slovak- 
ia's 560 l 00Qetrong ethnic-Hun- 
garian minority, which is 
seeking greater autonomy over 
educational and cultural 
affairs. 

HZDS is deeply suspicious of 
voucher privatisation because 



Back in driving seat? Ex-prime minister Vla dimir Meciar 
yesterday after his party had polled a third of the votes 


it allows control of state assets 
to pass to what Mr ' Meciar 
terms “anonymous persons”. 
His potential coalition partners 
are of a like mind, the ZRS 
fearing huge job losses as com- 
panies restructure under new 
ownership, and the SNS want- 
ing complete state control over 
the economy as in the commu- 
nist era. 

Mr Meciar might have diffi- 
culty to reversing the voucher 
programme, though he is 
expected to try. Nearly lm 


Slovaks have bought vouchers 
which they can exchange for 
shares in a range of state com- 
panies the outgoing govern- 
ment has earmarked for inclu- 
sion in the programme. 

“He can certainly interrupt 
it, but he may not be able to 
stop it" one observer said. “It 
will be difficult to buy hark all 
those vouchers.” 

Both HZDS and SNS are 
fiercely opposed to greater 
autonomy for ethnic Hungar- 
ians, who make up more than 


10 per cent of Slovakia’s popu- 
lation, regarding it as tanta- 
mount to secession. Relations 
with Hungary have been cool 
since independence, and prog- 
ress on drafting a comprehen- 
sive agreement between the 
two countries, begun under Mr 
Moravcik and tentatively 
scheduled for be ready next 
February, could now be in 
jeopardy. 

Mr Meciar’s greatest problem 
may yet lie in his relations 
with Mr Kovac. Mr Kovac 
orchestrated the campaign that 
ousted Mr Meciar in March, 
alleging widespread corruption 
in privatisation. In the last 
hours of his a dminis tration Mr 
Medar approved more than 40 
deals to sell state assets to 
their managers. The bitterness 
in relations between tbe two 
men. once allies in HZDS. will 
make co-operation extremely 
difficult 

It is still possible that the 
ZRS, with 13 seats, will decline 
to go into coalition with HZDS. 
It seems unlikely that the par- 
ty's leader, Mr Jan Luptak. 
would join a coalition with Mr 
Meciar because of his opposi- 
tion to widescale privatisation, 
but he may yet agree to sup- 
port such a government 
informally. 

In that case Mr Moravcik 
could also count on the sup- 
port of the ethnic-Hungarian 
parties, which will have 18 
seats. A coalition of the DU. 
the FDL and the Christian 
Democrats with the support of 
the ZRS and the Hungarians 
would give Mr Moravcik 82 
seats but a more unwieldy 
coalition than Mr Meciar could 
put together. 

Whatever the make-up of the 
next government this election 
has failed to bring Slovakia 
much-needed stability. 


Biology 
weapons 
talks to 
go ahead 

By France s Williams in Geneva 

Negotiations on measures to 
strengthen the 1972 treaty 
which outlaws biological weap- 
ons will start next January, 
treaty members decided at the 
weekend. 

After two weeks of difficult 
talks in Geneva, some 80 gov- 
ernments agreed to establish 
an ad hoc group to draft pro- 
posals on verification, anti- 
cheating measures and other 
compliance issues. 

However, industrialised and 
developing countries could not 
agree on how quickly to 
advance. The industrialised 
countries want the group, open 
to all 131 treaty members, to 
push on with a draft protocol 
for approval at the next treaty 
review conference. In 1996. But 
some developing countries 
want to proceed more cau- 
tiously. 

They have succeeded In qual- 
ifying the group's mandate in 
ways that would allow it to 
produce non-binding recom- 
mendations or to delay comple- 
tion of its work beyond 1996. 
Thus the stage is set for ardu- 
ous negotiations when the 
group convenes in January. 

Unlike related accords, the 
nuclear non-proliferation 
treaty and the chemical weap- 
ons convention, the biological 
weapons convention has no 
provisions against cheating. 

Third World countries are 
worried by the threat which 
tougher measures to enforce 
compliance could pose to tech- 
nology transfer and develop- 
ment of their own biotechnol- 
ogy industries. They also fear 
intrusive inspections of mili- 
tary facilities. 







business school, 

we encourage you to 

read the fine 

P* 

We're proud of it IMD's fine print lists the 116 leading companies who take an active part in the institute - our 
Partners and Business Associates. The osmosis that results from this unique partnership between industry and 
IMD puts us at the forefront of international executive development. Collaboration with some of the most 
successful companies in the world ensures that IMD's programs and research are solidly grounded in today's market 
while preparing executives for the future. 


PARTNER COMPANIES 

Andersen Consulting 
Asea Brawn Boveri 
Astra AB 
AT&T 

Bank Leu Ltd 
Baxter International Inc 
British Gas Pic 

British Petroleum Company Pic 
British Telecommunications Pic 
Caterpillar Inc 
Ciba-Geigy Ltd 
Citicorp 
Credit Suisse 

Deloitte Touche Tohmatsu International 
Dentsu Inc 

Digital Equipment Corporation 

Du Pont de Nemours International SA 

Exxon Corporation 

Hoffmann- La Roche Ltd 

HolderbankAG 

IBM Europe 

LEGO Group 

Minrt International 

National Westminster Bank Pic 

Nestfo SA 

Philips International BV 
Sony Europe 
Sulzer Brothers Ltd 
Swissair Ltd 
Swiss Bank Corporation 
Swiss Volksbank 
Tetra Laval Group 
Union Bank of Switzerland 


BUSINESS ASSOCIATES 

BUSINESS ASSOCIATES 

BUSINESS ASSOCIATES 

Acer Inc 

Gist-Brocades 

Parker Hannifin Corporation 

Alcan Aluminium Ltd 

Grace Europe Inc 

Philip Morris 

Barlow Raid Ltd 

Heineken NV 

Price Waterhouse 

N.V. Bekaert SA 

Hewlett-Packard SA 

Prombudbank 

BICCPIc 

Hifti AG 

Proudfoot Pic 

BobstSA 

The Hindu ja Group of Companies 

Publicitas Holding SA 

Boehringer Mannheim International 

Hoogovens Groep BV 

Rabobank Nederland 

Booz Allen & Hamilton Inc 

Huhtamaki Oy 

Raychsm Corporation 

British Steel Pic 

ICIHc 

Rieter Holding AG 

The Buhler Group 

Incentive AB 

Rothmans Int'l Tobacco (UK) Ltd 

CAPSA 

Iskra-Holding, D.D. 

Saga Petroleum A/S 

C6at Ltd 

KNPBTNV 

Saudi Basic Industries Corp- (SABIC) 

Compagnie de Si Gobain 

KoneOy 

Scandinavian Airlines System (SAS) 

Daimler-Benz AG 

KvaemerAS 

Shell Int'l Penoleum Company Ltd 

Dow Europe 

Lafarge Coppde 

Singapore Airlines Limited 

DSMNV 

Mecrastor Corporation 

Skandia 

Egon Zehnder Inti Management Cons. 

Metallgesellschaft AG 

Skandinaviska Enskilda Banker 

Enso-Gutzeit 0y 

NCC - Nordic Construction Company AB 

ABSKF 

Telefonaktiebolaget LM Ericsson 

Nokia Corporation 

Statoil 

Ernst & Young 

Nordic Competence Circles 

The Sl Paul Companies 

Eskom 

Nordvest Forum A/S 

Swedish Trade Council 

RatSpA 

Nomfc Hydro as 

Telecom Eirearm 

FirmenichSA 

Northumbrian Water Group 

Televerket - The Norwegian Telecom 

Gemini Consulting 

Norwegian Institute of Int'l Trade 

Telia AB 

General Motors Corporation 

Orkla as 

Thames Water Pic 



Transnet Ltd 



Va (met Corporation 

II you want to find out more about dial a business school 

Vattenfall 

Volkswagen AG 

working in partnership with industry can oiler you, please call 

AB Volvo 

41 03 4? nr lax . 41 21/516 07 15 to re-most our introductory usckatie. 

Williamson Magor & Co. Ltd 


1 

Zurich Insurance Company 



LAOIIMMC • IWITZKILAHB 


IMD -INTERNATIONAL INSTITUTE FOR MANAGEMENT DEVELOPMENT 
Chemut de Rellerive 23, P.O. Box 915, CH-1001 LAUSANNE, Switzerland 


— — 


lug data tor the monitoring 01 targets, ana on* lor uiu nauuuug m mu i/tunoBm*. | M «vnu 6 «> b 









4 


FINANCIAL TIMES MONDAY OCTOBER 3 1994 



NEWS: WORLD TRADE 


WORLD TRADE NEWS DIGEST 

EU hopes for 
Uruguay Round 

European Commission officials last night predicted that the 
EU would be able to ratify the Uruguay Round accord before 
the end of the year, ahead of the official deadline. The news 
will be welcomed by governments worried that the EU would 
not meet its side of the bUlion-doUar trade agreement on time. 
It will also send a positive signal to the US. whose own 
ratification procedures are ham pered by uncertainty. 

An announcement by the European Court of Justice that it 
would give its opinion on who has the power to negotiate in 
certain trade areas on November 15 ended a dispute between 
the Council of Ministers and the Commission over the legal 
basis for ratification. Officials, who were not expecting the 
judgment so early, said this allowed enough time to ratify 
before January 1. It has also emerged that the Council of 
Ministers has agreed to send the necessary paperwork to the 
European parliament to allow it to be consulted ahead of the 
deadline. “Both reasons make it all the more likely that we 
will come out in time," said the Commission. 

The Commission asked the court for advice after member 
states argued that it did not have the authority to negotiate in 
areas such as services and intellectual property rights where 
no trans-EU legislation exists. Fears that the court would not 
produce a verdict early enough prompted the German presi- 
dency of the EU to work out a code of conduct under which 
the Commission would for most purposes be able to conduct 
trade negotiations, leaving member states to have their say in 
a few special circumstances. Emma Tucker, Brussels 

More Japanese car exports 

Japan and the European Co mmiss ion have revised upwards 
their forecasts for exports of Japanese cars to the EU by 9,000 
cars, a rise of 1.3 per cent against the 1993 agreement 

The increase formed part of an agreement in July 1991 
allowing for a transitional period during which time Japan 
will monitor exports to the E(J and the five member states 
that previously restricted imports. It reflects the unexpectedly 
higher number of vehicle registrations this year. The Commis- 
sion and the Japanese government now predict that demand 
this year will increase this year by 4.4 per cent The forecast of 
exports to the five member states that previously restricted 
imports are France, 78,500; Italy, 47.000: Portugal 39.500: Spain, 
35500; UK 184500. Emma Tucker, Brussels 

Contracts 

Samsung Aerospace Industries and 31 other South Korean 
companies have formed a consortium to make commercial 
aircraft with China. A 100-seat pilot aircraft will be manufac- 
tured by 1998 at a cost of $15bn, to be shared between the 
Chinese side and the South Korean consortium. Members of 
the consortium include Korean Air, Daewoo Heavy Industries, 
and Hyundai Corp's Hyundai Technology Development Reu- 
ter, Beijing 

■ Bombardier, the Canadian aerospace and transport equip- 
ment group, and SNC-Lavalin. Canada's biggest engineering 
group, will provide a C$961m (8717m> 30km, 25«tation light 
transit system for Kuala Lumpur, for completion in 1998. 
Bombardier-SNC will build 70 vehicles and be responsible for 
system controls and rails. Renong of Malaysia will build the 
glideway and stations. Bombardler-SNC’s share of the total 
contract is almost CSfiOQm. The transport system will be based 
on Vancouver's Skytrain. Robert Gibbens, Montreal 

■ Philippine food and beverage giant San Miguel plans to 
build an aluminium ran plant and is negotiating with Japan's 
Yamamura Glass to take part in the project. The plant, which 
SMC hopes to start building next January in General Trias. 
Cavite province, will have a capacity of 420m cans a year and 
is expected to be on stream by 1996. About 50 per cent of 
committed capacity would be exported to Hong Kong, China, 
Vietnam and Japan. Reuter, Manila 

■ Siemens of Germany and Ansaldo SpA have won aeon tract 
to supply electrical equipment for 30 high-speed locomotives in 
Italy. The contract, awarded by the Italian state railway, is 
worth a total of DM220m (S 1425m) with Siemens’ part worth 
some DM50m. AFX, Erlangen 

■ Japanese trading company Kanematsu has contracted to 
export 200,000 tonnes of Australian coal to China. The coal will 
be shipped next month for use by a thermal power plant In 
southern Guangdong province. Roller, Beijing 

■ China's steelmakers, facing rising stockpiles and falling 
prices at home, plan to export more. However, exports in the 
first eight months of this year totalled only 930,000m, against a 
target of 2m for the year. Domestic steelmakers reduced out- 
put because of rising stockpiles. Reuter, Beijing. 


US persistence pays off at 


By Nancy Dtsme 
in Washington 

After a 20-hour negotiating 
marathon, US trade officials 
were too weary to celebrate 
their success in reaching “sig- 
nificant trade agreements" 
with Japan in the areas of tele- 
communications. medical tech- 
nology. insurance and fiat 
glass. 

“You wouldn't want me to 
fall under the table right 
before your eyes," said a 
hoarse Mr Mickey Kan tor, the 
US trade representative, as he 
prepared to go home. 

But first he pulled a 
dog-eared sheet of paper from 
his shut pocket and read his 
“instructions" from his deputy. 
Ms Charlene Barshefsky. 
Three things we are going to 
get." he read. “Annual prog- 
ress in [exports] value and 
[market] share. Significant 
increase in access and sales, 
using recent trends to evaluate 
the extent of the process 
made." 

This was the formula agreed 
for the results-oriented trade 
pacts the US has been demand- 
ing for the past 15 months. For 


months Japanese officials 
called it “managed trade” and 
skilfully organised worldwide 
sentiment against it. The Euro- 
peans, whom Mr Kan tor had 
hoped to count as allies, stood 
aside- In the end, the deals con- 
tained no “numerical targets" 
or fixed market shares. In fact, 
Ms Barshefsky said, US gov- 
ernment and industry wanted 
no more than rising “trend 
lines”. They did not want spe- 
cific targets setting ceilings on 
foreign market share as in the 
case of semiconductors. 

The successful Japanese pub- 
lic relations offensive embold- 
ened the bureaucracy and 
delayed agreement, said one 
former US official But fears of 
unrest on the currency mar- 
kets. the return to power of 
old-line Japanese officials and 
concern about damage to the 
overall US-Japan alliance ulti- 
mately prevailed. 

The US got by no means 
everything it wanted, but the 
gains were solid enough to 
cede to Japan a victory of sorts 
on vehicles. Efforts to get com- 
mitments from Japan’s private 
sector for increased purchases 
of car parts were set aside Mr 


Kantor, however, will bring a 
trade action against Japan's 
regulatory barriers to sales of 
foreign car replacement parts. 

The action will come under 
Section 301 of US trade law, 
rather than the much-loathed 
“Super 301", which “may have 
been the wrong signal at the 
wrong time", said Mr Kantor. 
There is little difference 
between the provisions - both 
require a year of negotiations 
to end specified trade barriers, 
with the threat of threaten 

sanrHnng if all else fails — blit 

a simple 301 is considered less 
offensive. 

According to US officials, the 
final throes of the talks were 
gruelling, repetitious and 
marked by some embarrassing 
incidents of recriminations by 
a senior Japanese official 
towards his juniors. Although 
it was held in Washington, the 
dozen US negotiators involved 
were greatly outnumbered by 
the Japanese delegation. 
Eighty were lodged at the Wil- 
lard hotel alone. 

The achievement should go a 
long way towards boosting Mr 
Kantor. who has lately has 
been criticised for moving too 


slowly to get the Uruguay 
Round pact through Congress. 

“Kantor has proven once 
again to be the guy who gets 
results," said Mr Clyde Pres- 
towitz, one of the administra- 
tion’s outside advisers on 
Japan. “I don’t know how 
much this will effect the trade 
deficit but It wfll make a signif- 
icant difference for companies 
in these sectors." 

Mr Kantor sought to gain 
some credit for President Bill 
Clinton, who he said had been 
“clear, precise and unwaver- 
ing" in his instructions. Then 
he talked of the “enormous 
common agenda" shared by 
the US and Japan - implemen- 
tation of the Uruguay Round, 
moving the Asian Pacific 
regional trade group toward 
more open trade, political and 
strategic issues. 

“It Involves co-operating 
together to create global 
growth to raise standards of 
living, not only in our own 
countries but around the 
world." This package of five 
trade deals takes both conn- 
tries “a giant step" toward 
those goals, he said. 

Editorial Comment, Page 19 


trade talks 



US trade representative Mickey Kantor announces the trade 
agreements with Japan over the weekend ap 


IMPASSE ON CAR DEAL 

The failure to reach an accord on further 
opening Japanese markets to US vehicles and 
parts soured what was otherwise a highly posi- 
tive response by US companies to the outcome 
of the talks, Richard Waters writes from New 
York. 

Ford, the US's second-biggest motor manufac- 
turer, said that failure in such a significant area 
of trade “raises questions about Japan's serious- 
ness" In opening its markets. It added that it 
would press the administration to monitor how 


3 RANKLES IN US 

Japanese companies operate in future in both 
the Japanese and US car markets, and called for 
a presidential commission to "recommend fur- 
ther action”, Like other US manufacture rs, Ford 
Haims that some structural aspects of the Japa- 
nese car market act as hidden barriers to 
importers. 

For instance, the fact that Japanese manufac- 
turers have financial stakes in many dealers 
makes it difficult for foreign manufacturers to 
find dealers to take on their products. Ford said. 


JAPANESE TAKE PACTS 

Japan’s business community had resigned Itself 
to some market opening agreement before the 
partial accord covering US-Japanese trade 
issues was announced, Michiyo Nakamoto 
writes from Tokyo. Even the car industry, 
which could be adversely affected by the US 
decision to initiate a Section 301 investigation 
of the replacement parts industry, took the 
latest US verdict in its stride. 

“Once the business environment improves it 
will be possible to prove that the Japanese 


IN THEIR STRIDE 

market is not closed,” one industry official 
commented. 

In the glass industry there was relief that the 
talks did not result in sanctions, as well as a 
general sense that their claims about the open- 
ness of the market had been vindicated. 

The main concern for Japanese business has 
not been so much the impact of likely sanc- 
tions, which has never been considered signifi- 
cant, as the adverse effect another rupture with 
the US could have on currency rates. 


US-Japan: trade differences 


Purchase of US auto parts 
(Si oom) 

150 



Government procurement 

Ratio of foreign products in total government procurement for aB sectors 




Medcal equipment 

Ratio of foreign products In total government procurement In 1990 



Where the agreements came 

Nancy Dunne on the US-Japan pacts reached at the weekend 


T he US and Japan struck 
a series of market-open- 
ing trade agreements at 
the weekend, averting a threat- 
ened trade war between the 
world's two largest economies. 

The US a dmini stration, 
which had been pressing Japan 
to open key markets, hailed 
the accords - covering tele- 
communications, medical 
equipment, insurance and 
glass - as landmark deals to 
result in billions of dollars of 
new sales of US goods and ser- 
vices. Agreement was reached 
in the following sectors: 

T el ©communications 
Two pacts were agreed. One 
covers the sale of telecommu- 
nications products and services 
to Japanese government agen- 
cies (a $2bn-a-year market) and 
the other, sales to Nippon Tele- 
graph and Telephone, which is 
65 per cent government-owned, 
a market worth $9bn (£5.6bn) a 
year. 

The pacts are similar. Japan 
agrees to provide early. 


detailed information of pro- 
curements; to allow foreign 
suppliers input on purchase 
plans before tenders are finali- 
sed; to use international stan- 
dards when available; to 
reduce the number of sole- 
source contracts, which tend to 
go only to Japanese companies; 
and to institute a modern 
“overall best-value" bid evalua- 
tion system. 

The US promises Its own 
industries to closely monitor 
the NTT pact and consult with 
Japan, as needed. 

Medical equipment 

For the $25bna-year medical 
equipment government pro- 
curement maritet. the pact pro- 
vides for the use of open and 
transparent procedures and 
decisions based on “overall 
greatest value” of bids. This 
means highly sophisticated 
medical technology made by 
foreign companies will not be 
automatically excluded 
because of their initial price. 

Japanese hospitals will have 


to publish annual information 
on the top 10 medical technol- 
ogy products it plans to buy 
that year. The pact also has a 
comprehensive complaint 
mechanism for dealing with 

“ unfair " bids. 


Vehicles and parts 

The US sets aside many of its 
demands and brings a unilat- 
eral trade action against the 
regulatory regime for car 
replacement parts. This will 
become lucrative as foreign 
sales gain market share in 
Japan. The licensing process 
blocking imports is “so obvious 
and pernicious that it cries out 
for relief, Mr Kantor said. 


Insurance 

Japan promises more transpar- 
ency in its regulatory system, 
import procedural protection, 
specific liberalisation measures 
and strengthening of anti-trust 
policy. It also agreed to intro- 
duce the broker system to 
diversify and promote competi- 


tion. 

Japan has the world's second 
largest insurance market, with 
approximately $320bn in pre- 
mium income annually; foreign 
companies take only a 3 per 
cent share of this. The govern- 
ment agreed to implement a 
three-stage deregulation plan 
to expand sales opportunities 
for foreign companies. 

Hat glass 

A H5bn-a-year market, dom- 
inated by three big producers 
with separate, tightly con- 
trolled distribution arrange- 
ments. Japan's glass window 
market is the second largest in 
the world, and the US has less 
than I per cent of it - com- 
pared with global shares 
exceeding 25 per cent in 
Europe ami Latin America. US 
and Japan have agreed to "a 
set of principles” and will seek 
to flesh out the agreement in 
the next 30 days. Failing that, 
the US will then bring a unilat- 
eral trade action against 
Japan's flat glass market 


WHARTON 

| Attend the January 29th 
session of the 
Wharton Advanced 
Management Program. 



LIKE NO OTHER ADVANCED 
MANAGEMENT PROGRAM IN THE WORLD. 


Gatt ruling on vehicle taxes goes against EU 


By Frances Wiliams in Geneva and 
Nancy Dunne in Washington 

A dispute settlement panel of the 
General Agreement on Tariffs and 
Trade has ruled in favour of the US 
on most of the EU complaints brought 
against US laws regulating vehicle 
fuel economy and luxury taxes. 

The decision is also a setback for 
US opponents, of the new Uruguay 
Round deal, who have argued that the 
“faceless bureaucrats" in Geneva will 
force the US to change environmental 
and consumer laws. 

The panel ruled in the ElTs favour 
on one issue - that accounting rules, 
established under the US Corporate 
Average Fuel Economy law (Cafe) 
were Inconsistent with Gatt. 

Mr Mickey Kantor. the US trade 


Malaysia, China, Korea, Singapore 
and Thailand are asking lawyers to 
look Into a decision by the European 
Commission to impose duties on tele- 
visions sold In the European market, 
writes Emma Tucker in Brussels 
The decision was announced at the 
weekend alter a year-long investiga- 
tion Into allegations that these coun- 
tries were “dumping” their goods In 


representative, said he would not ask 
Congress to change the rules, as they 
“do not have any actual economic 
impact on EU auto manufacturers and 
therefore no trade damage results". In 
a written statement. US officials said 
Gatt had found for the first time that 
conservation measures “could excuse 
a country's law that was otherwise 


Europe, or selling them at prices 
below those in their home markets. 
The commission argues there win be 


The investigation was triggered by 
complaints from six European pro- 
ducers: Thomson of France, Dutch 
electronics group Philips, Grftndig, 


inconsistent with the Gatt”. 

Gatt set up an independent disputes 
panel In May 1993 to examine the 
ElTs allegation that US car taxes dis- 
criminate against European exports. 
The EU claimed European car makers 
were paying a disproportionate share 
of the three taxes - two of which 
penalise high fuel consumption, while 


and Nokia of Germany, Bang & Oluf- 
sen of Denmark, and Italy's Seleco. 

Its findings showed the market 
share of the five countries under 


of the met that the market was grow- 
ing, the EU industry's share had 
dropped from 36 to 28 per cent 


the third is a luxury tax on cars cost- 
ing over 830,000 (£19,000). 

Brussels had said the total revenue 
of the three taxes levied in 1991 was 
8558m, of which 8494m fell on Euro- 
pean cars. European manufacturers 
paid 100 per cent of penalties under 
the Cafe law, 80 per cent of the "gas- 
guzzler" tax, and 80 per cent of the 


luxury tax. European cars had just 4 
per cent of the US car market 

The EU argued that Cafe payments 
in discriminated against European 
luxury car makers, as they were 
based on the saJes-weighted average 
fuel consumption of all models pro- 
duced. Thus US producers who make 
cars in a range of sizes, and Japanese 
makers or mostly small, fuel-efficient 
cars, do not incur penalties. 

The Cafe limits for company cars 
set an average fleet s tandar d of 275 
miles per gallon (85 litres per 100km) 
and vehicles with a worse mileage are 
taxed. The "gas-guzzler" tax penalises 
other passenger cars that achieve less 
than 225 mpg. Friends of the Earth in 
Washington, an environmental group, 
says the Cafe law has led to savings of 
over 25m barrels of oil a day. 


no “dramatic” increase in prices from 

the duties, which range from as little investigation had increased from 95 
as 3.1 per cent to 295 per cent per cent in 1989 to 19.6 per cent in 

1992. Over the same period, in spite 


Because demand for this program 
has been so strong, we are pleased to announce 
an additional session - January 29 - March 3, 1995. 

Five-Week Length 

You need to pne|we for the challenges of today and tomorrow - In 
a reasonable amount ol time. At Wharton, the five weeks are 
Intense. In a world In which competition is constant you can't 
aitord to be away any longer. 

Small Class Size 

The class is limited to -H) senior executives from around the world, 
enabling ns to he highly selective. Classroom discussion Is rich 
and varied, drawing on the experiences of all participants. 

Personal Development 

Your success increasingly depends on your ability to lead diverse 
teams. Wharton's program enables you to understand your 
strengths and weaknesses. Pre-course work. Individual coaching 
and learn exercises help you to maximize your leadership abilities. 

Broad Curriculum 

The Wharton AMP focuses on your role as a leader and the skills 
you need to develop global competitive strategies. Only Wharton 
teams a world-class business faculty with faculty from the arts and 
sciences tu help you broaden your framework for problem solving 
and decision making. 

For more information on this unique Advanced Management Program, 
contact us at (215) 898-1776, ext. 1319. 

Wharton AMP Dates: 

January 29 - March 3, 199S • June 4 - July 7. 1995 
September 17 - October 20. 1995 

Wharton 

The Wharton School 

of the University of Pennsylvania 

Wharton Executive education 

2S5 South 38th Street - Philadelphia. PA 19104-6359 
l-SW-SSSHEC rxL 1319 • 12151 SS8-I776 erf. 1319 ■ FAX Attn: Dept 1319 (215) 38543H 


US and UK show best 
drugs markets growth 


Israel expects boom in 
investment as ban ends 


By Daniel Green 

The UK and US have 
consolidated their positions as 
the fastest-growing pharmaceu- 
ticals markets among large 
developed countries during the 
first seven months of 1994 ac- 
cording to figures published 
today by IMS International, the 
specialist market research 
company. 

The huge north American 
market grew by 7 per cent to 
$29.9bn in prescription drug 
sales compared with the first 
seven months of 1993. This 
compares with average growth 
of 5 per cent for the whole of 
last year, suggesting that 
efforts by insurers and employ- 
ers to cut their healthcare bills 
were having little effect on the 

drugs stde. 

The second biggest market is 
Japan, which imposed wide- 
spread price cuts in April this 
year. Sales to July grew just 1 
per cent to S12.2bn in constant 


currency terms, compared with 
an average 6 per cent growth 
during 1993. 

In the UK, one of the smaller 
markets, sales g rew 8 per cent; 
to S3.1bn, a small fall from 
1993’s average of 11 per cent, 
possibly as a result of price 
cuts imposed by the govern- 
ment at the end of last year. 

France, which has for many 
years had low drug prices but 
high per capita consumption, 
saw an above-average rise in 
sales in July. Sales for the first 
seven months grew l per cent 
to $6bn, compared with zero 
growth in the six months to 
June. This was nevertheless a 
sharp Fall on 1993’s average of 
6 per cent growth, reflecting 
France's determination to 
maintain low prices in the face 
Of its high consumption rates. 

Italy, which reformed its 
health policies at the start of 
the year, is now the only coun- 
try in the top eight not to show 
at some growth, the IMS report 


said. Italy’s drugs bill fell 2 per 
cent in 1993 and 7 per cent hi 
the seven months to July. The 
increased decline was the 
result of government reforms 
in January this year which cut 
subsidies on many drugs. 

Germany's drugs budget 
reforms were enacted in 1993, 
leading to a fall of 9 per cent in 
spending in that year. The first 
seven months of 1994 showed a 
6 per cent rise, perhaps 
because doctors and patients 
were learning to exploit the 
loophole that hospital drugs 
were exempt from last year’s, 
controls. 

By therapeutic area, central 
nervous system drugs, includ- 
ing anti-depressants, extended 
their lead as the most popular 
category in the US. This may 
be because of continuing pub- 
licity surrounding £11 LiUy's 
best-selling drug, the anti-de- 
pressant Prozac, which has 
been more popular than expec- 
ted this year. 


By David Horovitz 
in Jerusalem 

Israel is expecting a rise in 
foreign investment following 
this weekend’s announcement 
by Saudi Arabia and the other 
five members of the Gulf 
Co-operation Council that they 
will no longer boycott compa- 
nies that trade with Israel. 

The GCC decision to end the 
so-called “secondary” and “ter- 
tiary" boycotts on interna- 
tional companies that trade 
directly and indirectly with 
Israel was announced after 
talks between the Mr Warren 
Christopher. US secretary of 
state, and GCC foreign minis- 
ters in New York. The GCC 
states also promised to support 
any move in the Arab Leag ue 
to cancel the co ntinuing direct 
boycott of trade with Israel by 
much of the Arab world. 

Israel's finance minister, Mr 
Avraham Shochat, predicted a 
significant boost for the Israeli 


economy, with multinational 
companies reassessing their 
positions. Some analysts 
claimed that national economy 
could expect a 1 to 2 per cent 
boost in annual growth. Others 
calculated that the cumulative 
damage to the Israeli economy 
of the Arab boycott over the 
decades amounted to between 
S20bn and $40bn. 

The GCC decision was imme- 
diately attacked by the Syrian. 
Lebanese. Iranian and Libyan 
governments, with Syria's for- 
eign minister. Mr Farouq 
a-Shara, arguing that the move 
was “not timely". The boycott 
is administered from offices in 
Damascus. 

The Syrian criticism under- 
mined the political significance 
of the move. Mr Christopher 
had been trying for months to 
win Syrian hacking for an end 
to the boycott, saying this 
would create a more positive 
atmosphere In Israel, enabling 
Mr Yitzhak Rabin, prime min . 


ister, to win more support 
among the Israeli electorate for 
peace moves with Syrian 
Involving territorial compro- 
mise on the Golan Heights. 

The Israeli media high- 
lighted GCC commitments 
soon to allow direct mail to 
and from Israel, the entry of 
tourists and businessmen with 
Israeli stamps in their pass- 
ports, and the use of their air 
space by foreign aircraft flying 
to and from IsraeL 
• Tunisia yesterday took the 
first step towards normalising 
relations with Israel by open- 
ing an interest section in Tel 
Aviv and allowing Israel to 
open a similar office in Tunis. 
Initially, the representation 
will be bandied by Belgian dip- 
lomats. But Mr Feres and his 
Tunisian counterpart, Mr 
Habib Ben-Yahia, agreed at a 
meeting in New York that 
Israeli and Tunisian diplomats 
would be appointed within a 
Few months. 


( 



FINANCIAL TIMES MONDAY OCTOBER 3 1994 


5 






i . •- 


; i. 










★ 

NEWS: IMF/WORLD BANK IN MADRID 


Ministers to probe savings and investment 


By Peter Norman, Economics 
Editor, tn Madrid 



Finance minis- 
tries of the 
world's big 
industrial 
countries 
'KsSwa* decided yester- 
day to investi- 
gate the outlook for world 
savings and investment, in the 
hope that this might shed light 
on current, high, real 
long-term interest rates. 

The Group of Ten countries 
adopted a proposal by Mr Ken- 
neth Clarke, the UK chancel- 
lor, to launch such a study. Mr 
Theo Waigel, German finance 
minis ter, said that the Euro- 
pean Union’s council of eco- 
nomics and finance ministers 
(Ecofln) would also investigate 
how different tax regimes 
affected savings and capital 
investment In the course of 
Germany’s current six-mouth 
presidency of the EU. 

The linked questions of hi gh 
long-term interest rates And 
savings and investment were 
raised in Saturday's meeting of 
finance minis ters and central 
bank governors from the 
Group of Seven countries (the 


US, Japan, Germany, France. 
Britain, Italy and Canada). The 
debate was taken further in a 
meeting yesterday of the GlO 
(the G7 plus Belgium, the 
Netherlands, Sweden and Swit- 
zerland and so 11 countries in 
fact) and the policy-making 
interim committee of the 


International Monetary Fund. 

Mr Clarke told the commit- 
tee that savings and invest- 
ments were running perhaps 
two to four percentage points 
lower than in the 1960s and 
early 1970s, when they both 
accounted for about a quarter 
of world gross domestic prod- 


uct. Also, real Interest rates 
were at historically high levels, 
up by one to two percentage 
points against the average for 
most of the period since 1946. 

The chancellor said the 
industrialised countries needed 
a consensus on what to do, 
because very large new fnvest- 



Bimdesbank head Hans Tietmeyer and minister Theo Waigel pause for the football scores 


ment opportunities, in prospect 
In Asia and Latin America, 
would increase claims on 
savings. More such claims 
might soon emerge in former 
communist countries and 
South Africa. 

Mr Clarke said steps must be 
taken to reduce the financial 
demands of governments on 
markets by reducing fiscal defi- 
cits. 

This theme was taken up 
vigorously by Mr Waigel. The 
German minister pointed out 
that total government debt in 
the industrialised countries of 
the Organisation for Economic 
Cooperation and Development 
(OECD), now averaged 70 per 
cent of GDP and was 25 per- 
centage points higher than at 
the start of the 1980s. 

Mr Waigel said a determined 
medium-term consolidation of 
industrial country budgets was 
the “central pre-requisite” for 
reducing global imbalances 
between savings and invest- 
ment and hence reducing high 
real interest rates. He said Ger- 
many was showing the way 
and would probably bring Its 
annual deficit/GDP ratio below 
3 per cent this year and thus 
sooner than expected. 


Yesterday, Mr Clarke under- 
lined that free international 
capital flows and the global 
capital market were a boon to 
the world economy. He 
rejected the idea of re-imposing 
capital controls or re-creating 
formal exchange rate links 
between leading currencies. 

UK officials said the GlO 
study would be taken forward 
by the ministers' deputies and 
would also involve the IMF 
and the Basle-based Bank for 
International Settlements. 
They hoped for an interim 
report by the IMF meeting in 
Washington next spring. 

At the G7 meeting on Satur- 
day. mini sters decided to 
involve the central bank gover- 
nors more closely in their dis- 
cussions. so as to increase the 
governors' understanding of 
the impact of financial markets 
on their economies. 

Commenting on long-term 
interest rates after the G7 
meeting, Mr Eddie George, 
Bank of England governor, 
said he and many of his col- 
leagues thought that bond 
markets were exaggerating the 
dangers of inflation. 

Observer, Page 19; Economic 
Notebook, Page 25 


Latin America ‘in need 


Infrastructure attracts 


of institutional reform’ 


more private finance 


By John Gapper in Madrid 

Reform of financial 
institutions, and encourage- 
ment of private savings in 
Latin American countries, is 
needed to reduce the volatility 
of capital flows into and out of 
the region, a group of leading 
bankers said yesterday. 

The Group of 30, a Wash- 
ington-based group of execu- 
tive of b anks and investment 
banks, said that capital 
flows into Latin American 
countries were more volatile 
than those related to the bank 
loans they had largely 
replaced. 

The group said the rise in US 
short-term interest rates this 
year had sown this volatility in 
debt instruments with $105bn 
(£6.6bn) in new bond issues 
during the first nine months of 
this year, compared with 
$2 Jbn in 1993. 


The study also found that 
foreign portfolio investment in 
Latin America has substituted 
for domestic savings. 

The group recommended 
these reforms in Latin Amer- 
ica, to reduce the degree or 
substitution, making local cap- 
ital markets more liquid and 
better able to withstand fluctu- 
ations in external flows: 

• Central banks should be 
independent and should pursue 
domestic price stability. The 
study says such stability - 
towards which considerable 
progress has been made - 
underpins the growth of 
mature local capital markets. 

• There should be reform in 
the financ ial sector, including 
hi gher accounting anti disclo- 
sure standards. Countries 
should try to develop pension, 
insurance and mutual funds, 
and develop longer-maturity 
bonds and derivatives. The 


study called for Latin Ameri- 
can banks' capital require- 
ments to be higher than the 
Tninirnnm laid down in the 1988 
Basle accord, because of the 
relatively high risk of their 
loan portfolios. 

• Domestic loans and invest- 
ment rates should be raised 
from current low levels. Pri- 
vate sector incentives such as 
changes in taxation and 
requirements to invest in pen- 
sion funds should be consid- 
ered. 

• Industrial countries should 
continue to support economic 
reform by ensuring access to 
their markets by Latin Ameri- 
can goods and services, and by 
ratifying the Uruguay round of 
global trade liberalisation. 

Latin American capital flaws: 
Living with Volatility; Group of 
30.1990 M Street NW. Washing- 
ton DC 20036, USA : $20. 


By Nancy Dunne 
in Washington 

Private financiers are moving 
into infrastructure develop- 
ment, in volumes well above 
expectations of just a few 
years ago, despite the risks of 
investing in emerging econo- 
mies. This is according to a 
report released by the Interna- 
tional Finance Corporation, 
the World Bank’s private sec- 
tor arm. 

The EFC is playing a leading 
role in managing private sec- 
tor infrastructure develop- 
ment Since its first infrastruc- 
ture financing in 1966, the 
corporation bas undertaken 88 
infrastructure transactions 
worth $l5bn (£9.5bn) in 20 
countries. 

The “renaissance” in private 
sector financing can be traced 
to several developments. In 
many countries, both the gov- 


ernments and consumers are 
disappointed by the poor per- 
formance of public projects. 
Other governments, with tight 
budgets, are turning to their 
private sectors. 

Developments in financial 
markets bave created a wider 
pool of financiers and more 
financing techniques. Techno- 
logical changes in telecommu- 
nications, power and transport 
systems have reduced unit 
costs and eased private sector 
entry. 

In 1988-1992, governments 
in 15 developing countries pri- 
vatised more than $20bn of 
infrastructure-related assets. 

“Companies have supplied 
finance, and the ability to take 
risks and to implement pro- 
jects efficiently, while govern- 
ments have contributed a will- 
ingness to privatise, to 
experiment with new more 
competitive regulatory envi- 


ronments. and to encourage 
n on-guaranteed financing.” 
the report says. 

The rise in private financing 
and management of power 
plants, roads and other infra- 
structure can ultimately 
deliver better results than pro- 
jects managed by govern- 
ments, the report said, noting 
that, while it is still too early 
to judge operational perfor- 
mance, signed contracts sug- 
gest that efficiency gains are 
being achieved. 

The IFC says companies are 
also learning to manage envi- 
ronmental risks. Project man- 
agers are bringing in foreign 
companies to apply the lessons 
of environmental management 
learned in their own countries. 
“Private ownership that 
encourages better cost recov- 
ery is also having an impact 
on energy conservation by cus- 
tomers,” it said. 


MADRID CONFERENCES DIGEST 

Surprise Russian 
move on debts 

Russia surprised and shocked the G7 countries at the weekend 
by appearing to demand sweeping readjustment of its foreign 
debt position. Officials said Mr Alexander Shokhin, Russian 
deputy prime minister, asked for treatment of Russia's debt 
that would be equivalent to the 1950s London agreement 
settling Germany's debt burdens after the second world war. 

Although details were not clear, Mr Shokhin reportedly 
sought an answer within seven days. Mr Kenneth Clarke, UK 
chancellor, said afterwards the G7 had not been able to make a 
considered response to the Russian demands. Instead, G7 
finance ministers had asked Mr Shokhin to put his proposals 
on paper. Resolving Russia's debt problems would need much 
more detailed work by the Paris Club of western creditor 
nations, he said. Peter Norman 

Japanese to head institute 

Mr Toyoo Gyohten, chairman of the Bank of Tokyo, yesterday 
became the first Japanese to head a major global finance body 
when he was elected chairman of the Institute of International 
Finance (HF), the Washington-based association of over ISO 
institutions, including all leading commercial banks. A former 
vice-minister of finance, Mr Gyohten said it was important for 
the HF to act as a policy forum which would analyse, issues 
concerning emerging markets. He was elected in succession to 
Mr Antonione Jeancourt-Galignani. former chairman of 
Banque Indosuez.'at the IFF annual meeting in Madrid, held 
in advance of today’s formal gathering of the IMF and World 
Bank. Tom Bums 

SA ‘relaxed’ on credit rating 

Mr Chris Liebenberg, South Africa's finance minister, told 
international bankers yesterday he was “relaxed" about the 
forthcoming rating of the republic's creditworthiness by the 
US investor service agencies Moody's and Standard and Poors 
and by Nippon of Japan. “On fundamentals we should be an A 
but T understand there should be uncertainties until we have 
proven that we can deliver our policies.” he said. “If we come 
out with a BB I'll be relaxed. Any rating is beLter than having 
□one at all as we had before,” said Mr Llebeuberg. who 
succeeded Mr Derek Keys as finance minister two weeks ago. 
Tom Bums 

Complaint filed on Nepal dam 

A first complaint bas been filed to the World Bank's newly 
established panel set up to investigate complaints from people 
adversely affected by Bank projects. A group of non-govem- 
ment organisations from Nepal has charged that the Arun in 
hydroelectric dam project is in violation of the Bank's policies 
and procedures. They said the high cost of the project could 
result in cuts in health and social services programmes, while 
construction of a 122 km road to the dam site would have 
adverse environmental effects. Peter Norman 

Loan planned for Algeria 

The World Bank is preparing a loan of between $100m and 
$200m for Algeria to help it with an ambitious structural 
reform programme. Mr Caio Koch-Weser, World Bank presi- 
dent for the Middle East and North Africa, said he hoped to 
put the proposed “emergency rehabilitation loan” before the 
Bank board before the end of this year. In addition, the Bank 
was providing an emergency $50m loan in the wake of an 
earthquake disaster. Peter Norman 




"Sentimentality I* not lomethine you expect inafinan- 

dal controller. Yet whenever I see our corporate loeo. 
I feel It's welcoming me into the family. If* based on an 
old Creek sculpture and perhaps that makes it special to 



me. We Greeks really value that good old family feeling. 
At other multinationals I worked for. headquarters 
seemed very distant. As If all they were interested in 
were my balance sheets. At Atao Nobel I feel 1 belong. 


M . . . nnp _ r lhe wor | d - s leading companies in selected areas of chemicals, coatings, health care products and fibers. 
Akzo Nobeu i on acl , ve i n 50 countries around the world, make up the Akzo Nobel workforce. For more Information, write or 

Morerhan73j000peopte.a 6800 SB A mhem. the Netherlands. Telephone [31) 85 66 22 66. 



The rules a re clearly defi ned but give a lot of freedom, fm 
encouraged to have my say and not Just about money 
matters. Being involved beyond the call of duty - for me 
that's a crucial element In creating the right chemistry.” 


u 






tag data tor the monitoring 01 targets, ana un? lor mu unumiug ui iwlmhu'is- 







6 


FINANCIAL TIMES MONDAY OCTOBER 3 1994 


★ 

NEWS: INTERNATIONAL 


Comeback kid shows no fight 

Jurek Martin examines a battered President Bill Clinton 



Haiti militar y chief Gen C£dras leaves a weekend meeting 


F ranklin Roosevelt cre- 
ated it. Ronald Reagan 
perfected it and it is 
now on every US president's 
Saturday morning schedule. 

It is a short radio report to 
the nation, from the White 
House or wherever the presi- 
dent is, lasting no more than 
about five minutes. An hour 
later, a representative of the 
opposition party of the day 
gets equal time to respond. 

There was more reason than 
usual to time in to President 
Bill Clinton's talk last Satur- 
day. Last week, the Republican 
party's “scorched earth" policy 
eviscerated in Congress what 
had remained of his domestic 
legislative agenda. 

On Friday afternoon, cam- 
paign finance reform h ad gone 
the way of healthcare reform. 
Approval of the Gatt trade 
treaty was put on hold - by a 
Democrat at that. Senator 
Ernest HoDings of South Caro- 
lina. Bills covering cleansing of 
contamination by toxic waste, 
western land preservation, 
housing, and telecommunica- 
tions were all dead or dying. 

Even popular proposals, such 
as reform of lobbying and edu- 
cation, needed respirators. 

As the week ended. Demo- 
crats, like Senator George 
Mitchell, the majority leader in 
the Senate, were openly apo- 
plectic about Republican 
obstructionism. The opposi- 


tion. the senator charged, was 
determined to bring Congress 
fUrther into disrepute “so they 
can inherit the rubble". 

Yet. on Saturday morning, 
the Democratic president did 
not even allow the word 
“Republican" to pass his lips. 
He did try to parade his 
achievements, and bemoaned 
what had been lost, but the 
culprits were always unnamed 
“lobbyists" or Senate “filibus- 
ters", which, as every Con- 
gress-watcher knows full well, 
have virtually all been orches- 
trated by the Republican party. 

Almost as an indication of 
Republican contempt for the 
president, the party’s response, 
by Senator Judd Gregg of New 
Hampshire, hardly referred to 
Mr Clinton's remarks. Instead, 
it assaulted his policies on 
Haiti, which the president had 
not even mentioned. 

Mr Clinton's reluctance to 
come out fi ghting may reflect 
immediate political concerns, 
not least the fate this week of 
the bills to reform lobbying 
and education. However, by 
that token, he might even be 
persuaded to hold back until 
the Senate has reconvened at 
the end of November to con- 
sider the Gatt agreement - and 
that will not be until after the 
mid-term congressional elec- 
tions on November 8. 

Survey after survey of US 
opinion shows the elections as 


likely to be potentially disas- 
trous for Air Clinton and the 
Democrats, who now represent 
the political establishment in 
the widely loathed capital. 

Both the New York Times 
and the Washington Post yes- 
terday carried extensive analy- 
ses, pointing to the likelihood 
of Republican control of the 
Senate, possibly of the House 
of Representatives and even of 
most state governorships. 

S ome Democrats in rock- 
solid seats are now fight- 
ing for their lives, includ- 
ing Senator Edward Kennedy 
In Massachusetts. Many have 
chosen to respond by shifting 
themselves to the maximum 
distance horn their president. 
A mid-western fundraising trip 
by Mr Clinton a week ago was 
poorly attended and its finan- 
cial gain was disappointing: 

In fairness, the electoral sea- 
son will not really begin until 
Congress adjourns, probably at 
the end of this week. Incum- 
bents have been kept in Wash- 
ington by the heavy congres- 
sional schedule, though some, 
like Mr Tom Foley, Speaker of 
the House, were forced back 
home at the weekend by polls 
indicating the depth of their 
difficulties. 

But, even if the public per- 
ception is that Mr Clinton is a 
drag on Democratic candi- 
dates, a deferential silence 


from him in the five weeks 
before November 8 might be 
yet more devastating. It would 
risk leaving the Impression 
that he is prepared to face two 
more years of Washington 
“gridlock", which is the certain 
result of large Republican 
gains. 

As R W Apple noted in the 
New York Times yesterday, 
this impasse with Capitol Hill 
could be turned to the presi- 
dent's advantage in 1996, as it 
was did in 1948 when President 
Harry Truman ran for re-elec- 
tion in the last months of the 
“do nothing" Republican Con- 
gress returned two years 
before. But a more common 
view among Democrats, espe- 
cially those up for re-election 
now, is that it would be folly to 
let the Republicans “get away 
with it" now. 

Mr Clinton, self-styled 
“comeback kid" of the 1992 
race, can still he a formidable 
campaigner when his heart is 
in it But on Saturday, in front 
of a clear target and a 
ready-made forum, there was 
no hint of fighting spirit 

His wife, Hillary, who also 
has much to lament with the 
loss of healthcare reform, was 
at least back in political har- 
ness campaigning for her 
brother, Hugh Rodham, a Sen- 
ate candidate in Florida. But 
the nation still waits on its 
president 


About 300 soldiers from seven 
Caribbean countries will be 
deployed in Haiti today - the 
first non-US troops to arrive 
since the military Intervention 
began a fortnight ago, reports 
Canute James, in Kingston, 
awj agencies. 

The new troops, part of a 
multinational farce which is to 
assist imposing order in Haiti, 
have been tr aining in Puerto 
Bico for three wetics. 

They will be assigned to the 
docks in Port-au-Prince, 
Haiti's capital, relieving US 
personnel. 

The port area has been the 
scene of bloody clashes 


between factions supporting 

the Haitian militar y ani| those 

backing the exiled President 
Jean-Bertrand Aristide. 

The Caribbean troops will 
operate autonomously. Their 
deployment follows visits to 
Haiti last week by army chiefs 
from countries in the region. 
They concluded that the situa- 
tion in Haiti is stable enough 
for the Caribbean detachments 
to go in. 

Meanwhile, US troops are to 
stop violence between Ha Rians 
when they safely can, but a 
senior US official said yester- 
day that this did not mark a 
broadening of US policy. 


Cuba opens new 
markets for 


sales by 

By Pascal Fletcher in Havana 

"Pardon our inexperience. 
Tomorrow, we will do it bet- 
ter”. The sign in one Havana 
marketplace summed up the 
first day of Cuba's latest eco- 
nomic reform experiment. 

Nearly 150 farm markets, a 
novelty in the state-controlled 
economy, opened their doors in 
the Caribbean Island at the 
weekend as state farms and co- 
operatives, including military 
units, began to sell surplus 
meat, fruit and vegetables 
directly to the public. 

But small peasant formers 
were conspicuous by their 
absence, a sign that they may 
be initially wary about 
whether the move will really 
benefit them. 

Shoppers gathered early at 
the 15 markets opened in 
Havana, but the avalanche of 
demand predicted by many 
observers did not immediately 
materialise. 

Farms operated by the 
armed forces appeared to be 
setting the pace at the new 
markets, in terms of both 
prices and produce offered. 
Cuba's armed forces, battle- 
hardened in overseas wars in 
Angola and Ethiopia, are now 


farmers 

being increasingly used to 
combat the island's internal 
economic crisis. They have 
been helping to grow food for 
the papulation since last year. 

Mr Manuel Vila Sosa, inter- 
nal trade minister, had prom- 
ised that the farm markets 
would operate on a free market 
basis. Producers, after fulfilling 
contracted quotas to supply 
the state, could set their own 
prices for the general public, 
reflecting supply and demand. 
Sales income would be taxed. 

Undercutting and eliminat- 
ing the black market in Cuba 
is a main objective of the new 
farm markets. Food shortages 
are one of the most sensitive 
symptoms of the four-year eco- 
nomic recession gripping the 
country. 

The crisis followed the col- 
lapse of Cuba's preferential 
trade ties with what used to be 
the Soviet bloc, on economic 
belly-blow worsened by the 
recent tightening by the US of 
its trade embargo on Cuba. 

The government, which for 
years has paid rock-bottom 
prices to farmers, is hoping the 
price incentives offered by the 
new markets will help to 
reverse the current fall in food 
production. 


Core Business Cost Ratio 

(nonconsolidated basis) 


Average for Japan's 
Next lowest of 11 city banks 
Japan's city banks 

Bank of Tokyo ! \ *\ 



39.9% 49.2% 59.8% 


The Bank of Tokyo has the lowest ratio of general 
and administrative expenses to profit of core business, 
a key measure of banking efficiency in Japan. 


Financial Highlights 

The Bank of Tokyo, Ltd. and Subsidiaries 


Percent Thousands of 
MMoMotYto Change US Dollars 



1994 

1993 

1994/1993 1994 

For the Y fear Ended March 31: 

Net Interest Income 

Income before Income 

Taxes, Minority Interest. 
Amortization of GoodwiD 

* 303.776 

V 315^59 

13.7}% 

S 2J44997 

and Equity 

98,627 

79,633 

23J 

956,160 

Net Income 

50,629 

37,846 

33.8 

490,831 

As of March 31: 

Total Assets 

¥28,045,753 

¥29,067,346 

M 

$271,892,906 

Loans and Bifis Discounted 

13,554332 

14,317,494 

(5.31 

131/404,091 

Securities 

3557^76 

3,994,056 

(09) 

38.365,258 

Deposits 

13,051,808 

13333,195 

(5.61 

126.532J16 

Debentures 

5,043,199 

5304470 

(3.1) 

48,891.899 

Total Shareholders' Equity 

1.048,389 

1,007,889 

4 JO 

10.163,736 


WMv. 1 •• ■ ■; ' 



. • <• ’ «■ # 

: = ; \ • v ' r ? 

■**:•*' ..•«• •• i t '/r. '$£&**■* 

:\\v : - v . -• 



# V. ■ • ‘<*-1 V* 

Ml figures are for the fiscal year 


BIS Capital Adequacy Ratio 


{consoridated basis) 


Bank of Tokyo 



Next highest of 
Japan's city banks 



» i 

> 


Average for Japan's 
11 dty banks 



10.37% 9.94% 9.65% 


The Bank of Tokyo possesses die highest BIS capital 
adequacy ratio among Japan's 1 1 city banks. 


Return on Equity 

inonconsoSdated basis) 


Bank of Tokyo 

gjggK Next highest of 

SPk Japan's dty banks Average for Japan's 

p— N 11 dty banks 

5.5% 2.7% 2.2% 


The Bank of Tokyo's profitability, as measured by return on 
equity, is substantially higher than its nearest competitor. 


® BANK OF TOKYO 

Head Office : 3-2, Nihombashi Hongokucho 1-chome, Chuo-ku. Tokyo 103, Japan Telephone +81- 3 - 3245 - 11 1 1 
London Office : Finsbury Circus House, 12-1 5 Finsbury Circus, London EC2M 7BT, U.K. Telephone +44 - 71 - 628 - 8111 


INTERNATIONAL PRESS REVIEW ! 

Candidate with 
a Real chance 
of being elected 


LATIN AMERICA 


The presidential election today 
in Brazil and the likely victory 
of Mr Fernando Henrique Car- 
doso, a sociology professor 
turned inflation-conquering 
finance minister, are prompt- 
ing optimism throughout Latin 
America about prospects for 
growth, if the region's biggest 
economy remains stable. 

But for thousands of Brazil- 
ian twins, the issue is more 
straightforward: will they get 
the vote? The twins were dis- 
enfranchised when election 
authorities, noting that such 
details as dates of birth and 
parents' names were identical, 
suspected they were fraudulent 
attempts to create votes for 
“non-existent" people, a com- 
mon practice in parts of Brazil. 

Last-minute appeals by des- 
perate siblings appear to have 
persuaded the authorities to let 
the twins vote. But as SBT, 
Brazil’s second TV station, 
reported on Saturday night, 
the change of policy has not 
yet been officially sent to the 
provinces. 

Boris Kasoy, the station's 
anchor, whose catch phrase 
“it’s a disgrace" is used nightly 
to criticise the government, 
described the episode as plain 
“stupid". 

Despite such late hitches, 
campaigning has been peaceful 
and debate, at times, serious. 
The main newspapers agreed 
that Brazil's democracy has 
matured since the vicious 1989 
presidential campaign won by 
Mr Fernando Callor, who later 
resigned amid corruption 
charges. 

“In 1989 polarisation, radical- 
ism and passions predomi- 
nated. In 1994 we have reached 
polling day with less turbu- 
lence," according to an edito- 
rial in FoUut de S&o Paulo, Bra- 
zil's biggest selling daily. 

The media, which have sup- 
ported Mr Cardoso throughout 
the campaign, also agreed that 
his expected victory showed 
the country wanted stability 
rather than change. As finance 
minister, he planned the coun- 
try’s new currency, the Real, 
which led to a fall in monthly 
inflation from 50 per cent to 
less than 2 per cent 

Voters seem attracted by 
that record of success rather 
than by the rhetoric of Mr Luiz 
In&cio Lula da Silva, the left 
winger who promised to tackle 
social problems and build a 
“fairer" BraziL 

Ms Maria Tereza Souza Mon- 
te iro, a polling specialist inter- 
viewed by Veja news magazine, 
said; “The majority voting for 
[Mr Cardoso] are acting out of 
caution to prevent things 
changing unpredictably. What 
has struck me is that the elec- 
tor. trying to be more rational, 
has this time refused to dream, 
which was always an insepara- 
ble part of our election cam- 
paigns." 

Mr Cardoso is well known 
throughout Latin America, 
where his work as a left-of-cen- 
tre sociologist is still studied. 

His victory will be welcomed 
by the continent because be is 
likely to accelerate Brazil's 
Integration with its neigh- 
bours. For example, he is 


strongly committed to Merco- 
sur, the customs union with 
Argentina. Paraguay and Uru- 
guay, which comes into force 
on January 1. 

The weekend press in Bue- 
nos Aires was unanimous in its 
assessment that the inflation- 
battling Plan Real had wooed 
the Brazilian people and was 
certain to catapult Mr Cardoso 
to power. Newspapers pointed 
out the added importance of 
Brazilian elections for Argen- 
tina. given the close economic 
ties being forged between the 
two countries within the cus- 
toms union. 

In a piece entitled “Brazilian 
elections: An event viewed 
through a magnifying glass in 
Argentina", La Nacitm said it 
was now commonly held that 
“with Mercosur, everything 
that occurs in one country’ has 
infinite importance in the 
other." 

It was also genuinely 
accepted, said La Nation, that 
Argentina was rooting for a 
Cardoso victory so that Brazil 
could be “once and for all con- 
verted to a market economy". 

Mr Cardoso, it said, had bor- 
rowed heavily from Argen- 
tina's inflation policy under 
economy minister Domingo 
CavaDo. “Here, they joke that 
the Plan Real is the Plan 
Cavallo written In Portuguese 
[Brazil’s language]." The tab- 
loid Clartn warned that win- 
ning the elections was the easy 
part Mr Cardoso had to push 
crucial budgetary reforms 
through congress, it said, or 
“Brazil would once again 
become ungovernable". 

In a separate article, Clarfn 
contrasted the personalities of 
the presidential frontrunners 
as a symbol of Brazil's yawn- 
ing social division. As a child, 
the academic Cardoso “adored 
the classics" and studied with 
a private tutor, while factory 
worker Lula “ate bread for the 
first time when he was seven". 

Left-wing Pdgina 12 ran a 
similar piece contrasting the 
lives of the bronzed Ipanema 
beach set with life in a Rio 
slum, Roclnha. It found much 
support for the Plan Real in 
both. “The inhabitants of the 
biggest shanty town in Latin 
America were also seduced fay 
the new money." In this, it 
said, lay the secret of Mr Car- 
doso's likely success. 

In Chile, where Mr Cardoso 
lived for a spell during Brazil’s 
1964-1985 period of military 
rule, El Mercuric, the country’s 
leading daily, reported Mr Car- 
doso's increasing lead in opin- 
ion polls while the main TV 
c ha nn e ls concentrated on the 
pre-election atmosphere. 

La Epoca newspaper went 
into greater detail and pointed 
out that the two main candi- 
dates, Mr Cardoso and Mr da 
Silva, had the backing of 
organised political parties. As 
such, they differed from “out- 
sider" politicians such as Mr 
Alberto Fujimori, who was 
elected president of Peru in . 
1990, or Brazil's Mr Collor, who 
won the presidency in the pre- 
vious year without the help erf 
the main political parties. 

Angus Foster in Stic Paulo, 
David Pilling in Buenos Aires, 
and Imogen Mark hi Santiago 





far 

a nii er „ 


\ || u 



FINANCIAL TIMES MONDAY OCTOBER 3 1994 


NEWS: UK 


Blair launches ‘crusade for change’ 


By Kevin Brown and 
PhSp Stephens in Blackpool 

Tension over Labour’s tax 
plans for the middle classes 
yesterday undermined Mr 
Tony Blair's efforts to secure a 
trouble free conference debut 
as opposition party leader. 

As party officials cleared the 
way for compromises on min? , 
mum wages, women's rights 
and Northern Ireland, Mr Blair 
sought to set the tone for the 
conference in a statement 
promising a “crusade for 
change." 

His comments came as Mr 
Gordon Brown, the opposition 


chancellor, outlined a compre- 
hensive series of measures 
being considered as part of 
Labour’s industrial regenera- 
tion p lan. 

Mr Brown will also use the 
opening of today’s debate on 
the economy to underline the 
party leadership's commitment 
to modernise the welfare state. 

He will signal Labour's plans 
to integrate the tax and benefit 
system for pensioners and to 
use the benefit system to 
remove work disincentives for 
the unemployed. 

In a series of interviews, Mr 
Brown played down remarks 
by Mr John Prescott, the dep- 


uty leader, which, appeared to 
signal support for higher taxes 
for the better off. 

He said Mr Prescott’s view 
was in line with Mr Blair, who 
pledged In his statement that 
"people who generate ideas, 
jobs and wealth have no thing 
to fear from a Labour govern- 
ment." However, Mr Prescott 
said on an independent televi- 
sion's programme that Labour 
had given no promises to any 
groups of voters on taxation. 

“What is considered super 
rich or middle income or low 
income is a matter of the tax 
bands. We will make no deci- 
sion about that until the appro- 


priate time,” he said. 

Mr Blair’s efforts to modern- 
ise the party were repeatedly 
attacked at pre-conference 
fringe meetings by leftwing 
activists accusing him of seek- 
ing to compete with the Con- 
servatives in running a market 
economy. 

However, the leadership was 
more embarrassed by disclo- 
sures that delegates represent- 
ing many big unions will be 
told how to vote by union lead- 
ers, undermining the abolition 
of the union block vote at last 
year's conference. 

Senior party officials were 
confident that a threatened 


row over the party's commit- 
ment to a minimum wage had 
been defused by a compromise 
resolution referring the issue 
to a commission due to report 
next year. 

The resolution confirms 
Labour’s existing commitment 
to a legally enforceable 
national minimum wage 
pegged to half the level of male 
median earnings, but meets Mr 
Blair's concern that the party 
should avoid specifying a fig- 
ure. 

The ruling national execu- 
tive committee sought to lay 
the groundwork for a trouble 
free week by defusing other 


potential disputes before the 
conference starts. 

The NEC said that rules on 
all-women shortlists for parlia- 
mentary seats would be 
enforced with “flexibility.” and 
announced a shift of emphasis 
on Northern Ireland towards 
neutrality between the nation- 
alist and unionist traditions. 

Senior officials said the lead- 
ership was determined to leave 
behind the debate between 
modernisers and tradionaltsts 
which has characterised the 
last two years. To reinforce the 
point, the conference backdrop 
proclaims a fresh slogan: New 
Labour, New Britain. 


National 
Grid sale 
faces tax 
setback 

By Michael Smith 

Regional electricity companies 
could be liable to a tax bill of 
more than £lbn from their 
planned flotation of the 
National Grid after a potential 
setback in talks with the 
Inland Revenue, the tax 
authority. 

The authority has told them 
it is unable to comment on a 
scheme by which they hope to 
avoid incurring capital gains 
tax liability as a result of 
demerging the National Grid, 
which transmits electricity in 
England and Wales, from their 
companies. 

Although the regional elec- 
tricity companies (Rees) are 
seeking guidance from finan- 
cial and legal advisers, execu- 
tives fear that the Revenue's 
non-committal approach wigans 
they may be forced to proceed 
with the flotation with the tax 
issue unresolved. At worst it 
could signal the end of their 
plans to avoid capital gains 
tax. 

Pressure is growing on the 
government to extract as large 
a benefit as possible for tax- 
payers and consumers from 
the National Grid flotation. It 
has been widely criticised for 
undervaluing the Rees when it 
privatised them four years ago. 

The National Grid flotation 
is bound to increase the criti- 
cism as the company was val- 
ued at just over Elba in 1990 
but is now estimated to be 
worth at least £4bn. 

Theoretically the govern- 
ment could use its golden 
share in each of the Rees to 
extract windfall payments 
after the flotation, but its free 
market principles means It is 
highly unlikely to do so. It 
would prefer the Rees to cut 
power bills voluntarily. The 
imposition of capital gains tax 
would be another way of reduc- 
ing criticism. 

The Inland Revenue's 
remarks, in a letter to the 
Rees, follow several months of 
talks. 

The Rees' proposal, through 
which the National Grid would 
be demerged through an issue 
of shares in the transmission 
company to existing Rec share- 
holders, is the second to be 
made to the inlan d Revenue. 
The first was rejected outright 


A carrot and 
stick policy 


By PHUp Stephens 

Mr Gordon Brown calls it the 
“New Economics”. It is not 
new. But for the opposition 
Labour party the approach cer- 
tainly is different 

Last week saw the shadow 
chancellor join Mr Tony Blair 
in ditching the party’s tradi- 
tional assumption that hi g9w 
spending and taxes would 
solve the economy’s problems. 

Neither man will produce 
detailed tax tables this far 
ahead of a general election. 
But apart from the “undeserv- 
ing rich” (no one is quite sure 
who they are, though the 
bosses of the newly privatised 
utilities seem one obvious 
choice), Mr Brown's message is 
that the nation’s taxpayers can 
sleep soundly. 

Convinced that the break 
with the past has been made, 
Mr Brown wants to move on to 
a more positive agenda - 
explaining what Labour would 
do rather than what it will not. 

The thread running through 
his efforts to present a credible 
strategy at the next general 
election is the diagnosis that 
underinvestment Is the key to 
the UK’s economic weakness. 

In an interview with the FT 
on the eve of today's confer- 
ence debate on the economy. 
Mr Brown offered Labour’s 
answer; a framework for the 
economy in which the produc- 
tive base would be rebuilt by a 
government working with, 
rather than against, the pri- 
vate sector. 

The idea that Britain has too 
long lived for the short-term is 
hardly novel. Politicians and 
economists have spent much of 
the past 30 years telling us of 


the dangers of preferring 
today's consumption to tomor- 
row's investment. 

Nor is there anything new 
about the idea that the nation's 
education system is no match 
for that of the Japanese or the 
Germans; or that British com- 
panies often prefer hefty divi- 
dend payments to long-term 
expansion programmes. 

What has changed is 
Labour's prescription. State 
direction and ownership, like 
high spending and punitive 
taxes, Mr Brown insists, are no 
longer part of Labour’s agenda. 

The message he wants the 
voters - and business — to take 
came in the first sentence of 
the interview: “I think the key 
thing is for people to under- 
stand that Labour is setting 
aside the old conflicts between 
the public and private sectors. 
We see a partnership that is 
essential to the regeneration 
for the economy.” 

The Tories have failed 
because they have presided 
over an ever-shrinking produc- 
tive base. For the same reason 
Labour could not solve the 
problems by pumping up 
demand. It would hit the same 
capacity constraints. The sup- 
ply-side rules in Mr Brown’s 
“New Economics”. 

The shadow chancellor is not 
offering a blueprint for the 
promised transformation. The 
de tails of proposals to expand 
tr aining , change the culture of 
short-termism in the City and 
raise the level of industrial 
investment must await the 
deliberations of party's Eco- 
nomic Commission. 

But he outlines the main ele- 
ments of what amount to a 
series of carrots and sticks to 



Aotitoy Aatamod 

Gordon Brown: ‘Labour is setting aside the old conflicts between the public and private sectors' 


influence industry. “We are 
looking at the merits of an 
employer rebate/levy scheme 
to encourage training. We are 
I finking at how we can regear 
industrial and regional incen- 
tives so that they have a far 
bigger component for invest- 
ment in skills. We are looking 
at the idea of individual train- 
ing accounts and at major 
reform of National Insurance 
In terms of the benefits people 
could expect for the same con- 
tributions." 

There is more: a university 
for industry, the 1990s equiva- 


lent of the Open University, to 
encourage the development of 
skills; and the possibility of tax 
incentives to encourage pen- 
sion funds and companies to 
enter into voluntary long-term 
investment arrangements 
which would ease the pressure 
to maximise dividends. 

Labour would tighten compe- 
tition policy by introducing 
public interest criteria for 
mergers and takeovers. It 
might form a development 
hank to help small companies. 

It is easy to spot the sticks 
and carrots. Employers would 


have to pay the tr aining levy. 
Rebates would depend on their 
performance in improving 
skills. The system would 
“encourage people to do what 
they would otherwise consider 
doing themselves. It stops the 
good firms being undermined 
by the bad so there is a case 
for intervention”. 

Alongside this is the carrot 
provided by a plan to use the 
National Insurance system to 
provide individuals with train- 
ing credits - credits which 
could be drawn while in work 
as well as between jobs. 


First British university abroad to open in Thailand 


By John Authors 

Work has begun in Thailand 
on the first British university 
to be built outside the UK. It 
win be staffed by British aca- 
demics and award degrees vali- 
dated by parent universities in 
the UK 

Ministers hope that the proj- 
ect, led by the Department of 
Trade and Industry’s education 
and training group, will be the 
first of several British universi- 
ties throughout the Pacific rim 
and the Middle East, following 


the model of international 
American universities. 

Baroness Perry, leader of the 
group which was set up a year 
ago in an attempt to boost UK 
educational exports, said the 
project was needed to co-ordi- 
nate exports by British univer- 
sities and to reverse inroads 
made in the market by higher 
education institutions from 
Germany, the US and Austra- 
lia. 

All funding for the univer- 
sity is coming from Thai finan- 
ciers. It will be a private insti- 


tution with local people paying 
for tuition. 

Mr Richard Needham, trade 
minis ter, said there was scope 
for similar initiatives else- 
where in the Pacific rim. as 
several nations, including 
Korea and Taiwan, have a 
shortage of university places 
compared with the numbers 
who graduate from secondary 
schooL 

The DTI group also aims to 
expand British higher educa- 
tion into Latin America, where 
it has so Ear made few inroads. 


“A British degree has inter- 
national currency, and Thai 
people will be more than will- 
ing to pay for it." said Lady 
Perry. 

The university in Thailand 
aims to accept its first students 
in October 1996 and eventually 
will cater for around 10,000. 

Two campus sites have been 
designated. One will specialise 
in finance and economics and 
the other will concentrate on 
engineering and technology, 
reflecting the current needs of 
the local economy. 


The project hopes to win 
final approval from the Thai 
government next July once 
details on the appointment of 
administrators and lecturers 
have been settled. 

Several British universities 
are already active in the 
Pacific rim, although this is 
the most ambitious project to 
date. For example Warwick 
University has separate manu- 
facturing departments In Hong 
Kong and Kuala Lumpur and 
plans to offer accounting and 
finance courses from Shanghai. 


Britain in brief 


; u.vrrv 

w.V» '. ! w'v ' *. 

Sinn Fein 
leader in 
Washington 

Mr Gerry Adams, president of 
Sinn Fein, the IRA’s political 
wing, is due to arrive in Wash- 
ington from Philadephia 
today, but with the prospect of 
only limited access to US 
administration officials. 

He is likely io meet Ms 
Nancy Soderberg, of the 
national security council staff, 
at a social event tonight, 
according to the White House 
and British embassy. It was 
not dear if be would meet Mr 
Anthony Lake, the national 
security adviser, at that or 
another function. 

Ms Dee Dee Myers, White 
House press secretary, made it 
clear last week that Mr Adams 
would not visit the White 
House itself, which should rule 
out any “drop in” meeting, 
however brief, with President 
Bill Clinton or vice president 
A1 Gore. He is to expected to 
meet lower-ranking officials at 
the state department 

Also on Mr Adams’s Wash- 
ington schedule are speeches 
hosted by the Council on For- 
eign Relations and the 
National Press Club before he 
flies to California midweek. 

His exposure on US national 
media In the past week has 
been much more limited than 
in February, the occasion of 
his first visit. 

Coalfield boosted by 
power deal 

National Power, the UK's larg- 
est electricity generator, has 
signed a contract to buy Welsh 
coal for 10 years in what is 
thought to be the UK's longest- 
lasting coal contract 

National Power has agreed 
conditionally to buy from next 
year 1.5m tonnes of coal a year 
for 10 years from Ryan Group. 
Ryan is one of at least seven 
companies to have submitted 
tenders for the South Wales 
coal region and the deal is con- 
ditional on the company win- 
ning its bid. 

The move is a fillip for the 
industry as it enters the final 
stages of privatisation- The 
government is expected to 
decide this month which com- 
panies are to take over British 
Coal’s assets later this year. 


Peat Marwick plans 
to float audit arm 

Britain’s second biggest 
accountancy partnership said 
yesterday it would publish foil 
financial results if its clients 
backed a plan to incorporate 
its audit practice. 

KPMG Peat Marwick con- 
firmed that it is to consult 
with clients, investors, and 
regulators with a view to 
creating a limited company to 
audit its public limited com- 
pany clients. 

Other options, including the 
incorporation of the whole 
business, were dismissed . at a 
board meeting last week. The 
firm audits one fifth of all the 
UK’s listed companies. 


If Incorporation goes ahead 
it would be the fust such ven- 
ture in a leading accounting 
firm. Publication of results 
would also be a first except 
for a brief attempt in 1979 by 
Arthur Andersen, which was 
not repeated. 


Investors urged to 
check advisers 

Investors seeking independent 
financial advice should check 
that their adviser is still 
authorised, the new financial 
services industry regulator 
warned yesterday. 

At least 13 firms have had 
their authorisation revoked for 
failing to meet the midnight 
Friday deadline for applica- 
tions to join the Personal 
Investment Authority, which is 
replacing Fimbra as the main 
regulator for independent 
finan cial advisers. 


Shell turns the tide 
on its sea of paper 

Shell UK will today more to 
save motorists from drowning 
in a sea of paper every time 
they buy fuel by announdog a 
scheme to replace trading 
stamps and tokens with 
“smart cards”. 

Shell Smart will be the first 
nationwide scheme to use such 
cards and it hopes to distrib- 
ute up to 3J>m throughout the 
UK 

Customers will be able to 
c laim a point for every £6 they 
spend on fuel which can be 
exchanged for gifts, donations 
to charity and air miles. 


OFT to speak on 
underwriting fees 

The Office of Fair Trading has 
decided to publish a controver- 
sial report ou fixed underwrit- 
ing commissions which leading 
City investment banks and 
institutional investors have 
been lobbying bard to shelve. 

The report, commissioned by 
the OFT and conducted by Pro- 
fessor Paul Marsh of the Lon- 
don Business SchooL concludes 
that securities firms and fund 
managers earn excessive prof- 
its on their standing fee for 
underwriting equity offerings. 
The report says that the two 
per cent fixed fee is too high 
for the risks undertaken. 

It is understood the OETs 
inquiry is backed by the Trea- 
sury, which has been con- 
cerned that the cost of r aising 
capital in London is too high 
and will erode the city's com- 
petitiveness. 


Double blow for 
Post Office sell-off 

Government plans to privatise 
the Post Office have been dealt 
a double blow by Ulster Union- 
ist MPs and Conservative con- 
stituency chairmen. 

With the cabinet set shortly 
to decide whether to proceed 
with the sale of 51 per cent of 
the Royal Mail, the nine Ulster 
Unionist MPs at Westminster 
have sent a formal submission 
to Mr Michael Heseltine. the 
trade and industry secretary, 
saying they oppose the move. 

A poll of Tory constituency 
chairmen has indicated that 
even these party loyalists 
favour keeping the Post Office 
in the pnblic sector - with 
greater commercial freedom. 


EAST 

EUROPEAN 

MARKETS 


Reliable, comprehensive and objective 
- East European Markets, the twice 
monthly newsletter covering the 
rapidly changing emerging markets 
of Central and Eastern Europe 
including Russia and the rest of the 
former Soviet Union. 

I [i focuses on news items of importance lo 
business: investment, banking, business 
trends, industry, technology and new 
legislation, with coverage which is often 

| exclusive. 

Reports and Analyses 

• Statistical Information - in an easy-to-read 
formal providing extensive statistical 
data. 

• Economy - clear analysis of the latest 
economic data. 

■ Legislation - vital information, and edited 
translations. 

• Bpfthinal analysis - covering investments, 
infrastructure and reform. 

• Energy - developments. 

•The last two weeks. 

• The Changing Union and Moscow 
Bulletin - special unique coverage on the 
former Soviet Union. 

To receive a FREE 
sample copy contaci: 

Simi BansaL 

financial Times Newsletters, 
Marketing Department, Third Floor. 
Number One Southwark Bridge, 
London SEI9HL, England. 

Tel: (+44 711873 3795 
Fax: (+44 71) 873 3935 

TUr irfuemauw* pwwle 'itl hf held ty awJ way U- ' 
writ, .ifet *kflqwlity«irtps*is fwMli* l* 

FT Buxines Ejuerprues Li 
R-banU Office; Number One Scwhwrt Bridge. 
Hindoo SHI ML England. Regwumd No. 480896. 
VAT Rcg'smrwo Na CB US 5371 21. 




Now, all 1993 issues of the Ncue Zurcher Zcitung - Switzerland's globally respected daily - are available on one CD-ROM. 

Within seconds, the full-text search feature by keyword, title, author, section or issue retrieves articles and displays them OUfrilf T -jCtf 


a 


on your screen. In the convenient A4 format and with no changes versus the printed edition whatsoever. For details, 
contact: Ncue Zurcher Zeiiung. CD-ROM. Falkenstrasse 11, 8021 Zurich. Tel. +41 (01) 258 13 22, Fax +41 (01 ) 258 13 28. 


ON CD-ROM 








s 


FENANCIAL TIMES MONDAY OCTOBER 3 1994 


CRACKDOWN ON CRIMINAL TRADING 


Inside out: the Stock Exchange goes on crusade 

^ ... i si.. crat iw.iv with 


A crusade is being launched by Mr 
Michael Lawrence, the London Stock 
Exchange's chief executive, to make the 
market safer for investors who do not 
have inside information. He is fairing a 
series of measures to ensure that anyone 
buying and selling shares through a Lon- 
don securities house will not be severely 
disadvantaged if he or she has access only 
to published information. 

“The lack of certainty in the market 
[which makes it difficult for an investor to 
make a rational Investment decision] dam- 


ages our reputation." he said. “I want us 
to do all we can to ensure that the market 
is orderly.” 

Part of the way to achieve that, he 
believes, is for the exchange to be doubly 
vigilant in its attempt to detect and inves- 
tigate possible insider traders, or those 
who male* illegal profits from trading in 
shares when in possession of confidential 
price-sensitive information. But Mr Law- 
rence arimttflri: "There is a limit to what 
we can do. We Investigate, but it's up to 
the Department of Trade and Industry to 


Robert Peston goes on campaign with the squad 
that aims to make sure all deals are above board 


decide whether to prosecute". In the 14 
years since insider trading became illegal 
in the UK, there have been just 23 success- 
ful prosecutions and only two in the past 
two years. Part of the reason for this 
record is widely believed to lie in the crim- 
inal, as opposed to civil, nature of the 
misdemeanour. The burden of proving 


beyond any reasonable dbubt, as is 
required in a criminal case, that someone 
possessed inside information when rivaling 

- and then proving that the motive for the 
transaction was to profit from that infor- 
mation and that there was no other motive 

- has frequently proved impossible. 

Only the government can decide 


whether to introduce a new civil law, with 
a lower burden of proof, to cover insider 
trading. But although the exchange cannot 
r-hang p. the law. It is. not imm 'i’u j from the 
effects of the current one. Mr Lawrence 
said: "My concern is that the exchange 
itself is brought Into disrepute if there is 
not enough p unishmen t.'’ All he can do for 
now is to improve the exchange's own 
detection and investigation procedures, so 
as to expose as many insider traders as 
possible. "We do not want to have an 
image of London as a place where insiders 


can trade easily and get away with it." he 

To provide an insight into the 
exchange's role in the battle against 
insider trading, the articles below include 
a genuine insider-trading case - heavily 
disguised with the names and dates 
chanced because the investigation is still 
“live" - and a detailed account of the 
operations of the exchange's Surveillance 
Group, responsible for detecting and inves- 
tigating any criminal activity linked to 
shore trading. 


Surveillance knights ride into battle 
to secure fair fight for all investors 




1.1 On February 6 1934, Olde 
Humbugs, the manufacturer of 
traditional Eoglish confection- 
ery, put out a statement that it 
was in talks with International 
Chocolate Bars (ICB). the 
Swiss-based foods multina- 
tional, which were likely to 
lead to a merger of the two 
companies. 

1.2 Following the announce- 
ment, Olde Humbug's share 
price jumped 40p to 37Qp. At 
the beginning of the year, the 
price had been 220p. 

1.3 The Surveillance Group 
initiated a review of trading in 
Olde Humbug’s shares as it 
had been seen that there 
were a series of large transac- 
tions ahead of the announce- 
ment 

A substantial number of 
trades had come from Scottish- 
based individuals and had 
taken place through an Edin- 
burgh stockbroking firm, 
McNose and Partners. These 
transactions, most of them pur- 
chases, seemed anomalous, 
since McNose had rarely in the 
past dealt in Olde Humbugs 
shares. 

1.4 The biggest purchases, 
worth £10m in aggregate, were 
carried out by McNose for two 
clients. Banque Internationale 
de Bruxelles, a Brussels-based 
bank, and Mr Peter Punter, a 
well-known and successful pri- 
vate investor. 

The investigation 

2.Z The department 
approached the Takeover 
Panel for information, given in 
strictest confidence, about how 
long talks had been in progress 
between ICB and Olde Hum- 
bugs. The two companies were 
also asked to supply timetables 
of the events leading up to the 
announcement and who had 
been aware of the negotiations. 

2.2 Both companies agreed that 
the first significant event took 
place on November 14 1993 
when the chairmen of the two 
companies. Mr Ronald Chattie 
(Olde Humbugs) and Mr Dieter 
Aufgang (ICB) met to explore 
the issue of a possible merger. 

2.3 On March 1, Chattie and 
Aufgang were interviewed sep- 
arately at the exchange. Both 
were taped. During the inter- 
views. the names of those iden- 


tified at that date as having 
dealt prior to the merger 
announcement were given to 
them, but none was known to 
either. They agreed to carry 
out checks with their person- 
nel records and suppliers. 

2.4 The department carried out 
a more extensive review of 
transactions in both compa- 
nies' shares. On March 3 it 
established that Mr Ewan Side, 
an Olde Humbug executive, 
had dealt in his company’s 
shares as follows: 

• November 15 1993. bought 

5,000 shares at 216p; 

• January 18 1994, bought 

5,000 shares at 222p; 

• February 10 1994, sold 10,000 
shares at 280p. 

2J5 Although not a member of 
the Olde Humbugs board, he 
was aware of the merger talks 
because of bis role as corporate 
strategist. 

2.6 On March 10 two exchange 
investigators met Chattie and 
Ron Desktop, his finance direc- 
tor. at Olde Humbug’s offices 
in Leicester. The purpose of 
the meeting was to find out the 
nature of Side's involvement in 
the talks with ICB. 

Chattie said Side as corpo- 
rate strategist was kept closely 
informed of the talks with ICB 


How a real - but 
very' heavily 
disguised - series 
of deals is being 
investigated 

and was present at several of 
the negotiating meetings. He 
recalled that in early Detimber 
he warned Side not to buy any 
shares. Side had not been 
brought onside (made an 
insider) in any other transac- 
tion as this was the first time 
the company had been In 
merger discussions. Chattie 
said he did not feel uncomfort- 
able- about discussing the busi- 
ness with him. 

Chattie had also checked the 
company’s records against the 
names of Olde Humbugs share 
purchasers mentioned at the 
original meeting in the 
exchange. He bad found that 
Bernard Arrowroot of Gumme 
Group was a supplier to 
Arthur Crystal of Sugar Prod- 
ucts which in turn was a sup- 
plier to Olde Humbugs. Arrow- 


root bad purchased 10.000 Olde 
Humbug shares in January. 

Chattie said that he knew 
that Side and Crystal were 
friends and had been shooting 
together in December. 

2.6 Owing to the senior posi- 
tion of Side within the com- 
pany and the information sup- 
plied by Chattie, it was felt 
necessary to interview Side at 
the earliest opportunity. It was 
therefore decided to Interview 
him the next morning. 

2.7 On March 11 at 09.05, two 
exchange investigators met 
Side at Olde Humbug's offices. 
They explained the purpose of 
wanting to speak to him and 
that he might wish to consider 
speaking to Ms solicitor before 
continuing. Side left at 9.16, 
returned at 9.25 and informed 
them that his solicitor would 
be attending any interview. 

At 10.11 Side returned and 
introduced his solicitor, who 
said he had advised his client 
to co-operate fully. At 10.15 the 
interview, which was taped, 
commenced. Following intro- 
ductions, Side was cautioned. 
The first tape ended at 10.45. 
The second tape commenced at 
10.46 and concluded at 1L01. 

Side confirmed that he had 
dealt in Okie Humbug's shares 


as identified by the surveil- 
lance department He denied 
being told of the bid approach 
prior to his purchase of 5,000 
shares on November 15. The 
reason given for the purchase 
was that Crystal, an old friend, 
had recently joined Sugar 
Products and he hoped that 
they would be able to work 
together in developing and 
expanding commercial links 
between the two companies. 

Side admitted that the pur- 
chase on IS January of 5,000 
shares at 1414 was prompted 
by his being told by Chattie 
that a deal with ICB was likely. 
He said he did not know if the 
information was public. 

He denied rKscnssing the bid 
talks with anyone outside the 
company. He confirmed he had 
been shooting with Crystal in 
December. The names of other 
people who had dealt were pat 
to him. He said Punter had 
been in the same shooting 
party as Crystal and himself, 
although they had not previ- 
ously been acquainted and 
they talked little during the 
weekend. 

Side said the deals were tiny 
in comparison to his portfolio 
of £3m invested in the stock- 
market At the end of the inter- 
view, he was handed a notice 
explaining how he could get 
access to the tapes. His solici- 
tors were supplied with a copy 
of the times on April 10. 

2.8 In the light of Side's admis- 
sion that he had bought 
because of the information he 
had obtained from Chattie, it 
was decided to attempt to 
establish the conduit of any 
other information to the suspi- 
cious dealers in Scotland and 
also in particular to Punter 
and Banque Internationale de 
Bruxelles. 

The department then wrote 
to the Belgian bank asking for 
whom it had bought the Olde 
Humbugs shares. The bank 
supplied the name of a 
Liechtenstein-based stiftung or 
trust A letter was sent to the 
trust requesting details of its 
beneficiary. 

2.9 An apparent link from Olde 
Humbug to Punter was Crys- 
tal. who agreed to be met at a 
hotel in Glasgow on April 5. He 
was interviewed there at 415. 
He confirmed he knew Side 


both socially and through busi- 
ness. He said he was not told 
that Olde Humbug was consid- 
ering merging with ICB. Crys- 
tal freely admitted that he rec- 
ommends ICB's shares as he 
thinks it is a good business, 
but he was adamant he had 
not heard about any merger 
activity. He confirmed that 
Arrowroot of Gumme was one 
of his more important suppli- 
ers. 

He was also asked if he had' 
heard of Punter. He said he 
knew him and dealt with him 
on business matters. He 
described him as someone who 


would buy and sell anything. 
He knows that Punter is very 
active on the stockmarket as 
every time he goes to Punter’s 
office he is always on the tele- 
phone to his broker. Punter is 
well aware of Crystal’s rela- 
tionship with Olde Humbug 
and frequently asks how the 
company is doing. Crystal has 
recommended Olde Humbug's 
shares to Punter. 

2.10 On April 15, Chattie tele- 
phoned the department to say 
that be had become convinced 
that Side had breached his 
trust During this conversation 
it was established that Side 


had resigned following advice 
from his lawyer. 

Conclusion 

3.1 There is evidence of insider 
dealing by Side and consider- 
ation should be given to refer- 
ring this matter to the DTI. 
The large transactions by the 
various connected dealers in 
Scotland and those of the 
Liechtenstein trust may also 
be of interest. Punter has been 
interviewed by this department 
on previous occasions. No 
attempt has been made to 
Interview him this time. 


A click of the mouse is all it takes to track the share raiders 


The stockmarket's Big Brother, 
watcher of every share deal 
carried out in London for signs 
of criminal activity, lives in a 
seedy suite of rooms on the 
fourth floor of the Stock 
Exchange's dirty grey tower in 
the City. 

If it were not for the pres- 
ence of some spanking new 
computer hardware, it could be 
the set of the 70s cop show The 
Sweeney, all plywood chairs 
and threadbare synthetic mul- 
ticoloured carpeting. 

These are the offices of the 
19 members of the Surveillance 
Group, whose role is to identify 
possible insider deals, market 
manipulation or other c riminal 
activity involving share trad- 
ing and also to carry out inves- 
tigations. which can last up to 
three months. 

The task of identifying possi- 
ble insider deals has always 
been mind-boggling because of 
the vast number of share price 
movements or transactions 
which have to be examined 
every day for possible breaches 
of trading rules as well crimi- 
nal activity. On a typical day, 
the exchange scrutinises 
between 1,000 and 1,200 such 
trading “events”. 

Inevitably, many of the clev- 
erest Insider dealers are not 
caught. But the Integrated 
Monitoring and Surveillance 
System (Imas), a computerised 
tool the exchange has been 
using since the end of last 
year, has made it harder for 
insiders to hide. 

According to unpublished 
figures, the exchange's surveil- 
lance group opened 101 cases 
for investigation In the first 
seven months of the year, of 
which 75 were into alleged 
insider trading. That compares 
with. 100 investigations In the 
whole of last year including 57 
Insider probes. However. In the 
nine months to date. 18 insider 
trading case files have been 
passed to other agencies such 
as the Department of Trade 


and Industry, the Securities 
and Futures Authority and the 
Takeover Panel for further 
investigation - compared with 
15 In the whole of 1993. 

The DTI. which has the 
power to launch its own 
insider dealing investigations 
under the Financial Services 
Act and also decides whether 
to prosecute, has received 10 
referrals from the exchange so 
far this year. It received seven 
in the whole of last year. 

The rise in the surveillance 
group's investigation tally 
reflects improvements in the 
detection rate, not in the inci- 
dence of the offence, the 
exchange believes. The surveil- 
lance group, headed by Mr 
Mike Feltham, was hampered 
for many years by slow and 
cumbersome methods for 
obtaining basic share trading 
information from a variety of 
sources within the exchange. It 
could frequently take a fort- 
night to collate and analyse all 
the relevant data. 

One effect of Imas has been 
to improve the quality of the 
analysis of trading informa- 
tion, since the raw data and 
the trends can all be seen on 
the same screen. At the click of 
a mouse, it provides: 

• The time of all transactions 
in any UK shares: 

• The name of the broker or 
marketmaker who carried out 
the deals: 

• The coded names of the cli- 
ents who placed the orders; 

• A great variety of graphical 
information which allows trad- 
ing patterns to be identified. 

Its more important benefit is 
that it has compressed the pro- 
cess of identifying sinister 
trading patterns and who is 
behind them from weeks to 
hours. “The element of sur- 
prise is vital in obtaining a 
confession from an insider 
trader”, said one former mem- 
ber of the department. That 
requires the suspect to be 
interviewed soon after the 


Market watching 


The Surveillance Group's caseload 
■i 1993 f12 months) ■ 9 months to 30.9.94 


- \ Cncstpopitty; 
tnOQCOap 

Of which: 


Insider deal fog prosecutions 

NUMBER NOT 0ULTY 
.OF TRIALS GUILTY 


IraWer cases •’ i *. 


•’ (rittatad br part • > : - 

tosfcJerrefenateto ^ 

. o8wr stjeocSea 




1980 

1981 
1983 

1983 

1984 

1985 


1987 

1988 

1989 

1990 
'1991 

1993 
*1993 

1994 


■ 

' 1 
1 

'l 

.7 

3 

.5 . 
2 
' 7 


alleged offence took place. The 
more time that elapses before 
this interview, the greater the 
risk that he or she will be 
tipped off that a probe has 
commenced and will concoct 
an apparently legitimate rea- 
son for trading. 

A recent example of the 
speed with which the group 
can now complete its probes 
was the case of alleged insider 
trading Involving Lord Archer. 
After the media group. MAT, 
made a takeover bid for Anglia 
Television hi mid January this 
year, the group carried out - 
as a matter of routine - an 
analysis of Anglia share deals 
in the preceding weeks. 

Within three days it had 
compiled a case file on the 
best-selling novelist's orders to 
purchase 50,000 Anglia shares. 
It passed the file to the DTL 
which investigated the affair 
for five months before deciding 
not to prosecute him. 

The surveillance group typi- 
cally measures its performance 
by reference to its counterpart 
at tbe New York Stock 


Exchange, whose international 
reputation in fighting insider 
trading is probably stronger. 
But Imas is in one important 
respect superior. The NYSE 
does not have any electronic 
access to information on inves- 
tors who place share orders. Its 
computers show only the secu- 
rities firms which have carried 
out the deals on investors' 
behalf. So the NYSE has to 
telephone the firms to get any 
investor details, which brings 
with it the risk that the firm 
will tip off the probe target. 

The group in London cannot 
Obtain from Imas the wamwa of 
Investors behind deals. But 
each Investor is given a code 
by every broking firm which is 
a member of the exchange, and 
Imas supplies these coded 
names. This allows the group 
to establish trading patterns 
and possible links between 
transactions without having to 
make any telephone calls. 

Tbe Imas information is not 
comprehensive, however. The 
group can match fun names to 
codes for only a limited num- 


ber of investors, since there 
are milli ons of different codes. 
It wQl frequently have to ring 
a broker in the end to establish 
who placed a share order. 

Another significant omission 
from Imas - and indeed from 
any electronic information 
source in the exchange - is 
details of the enormous equity 
exposures taken on by securi- 
ties houses and their clients in 
the over-the-counter deriva- 
tives market These OTC posi- 
tions can on occasion be the 
dominant influence on a com- 
pany’s share price. But at the 
moment only the Securities 
and Futures Authority collects 
detailed Information on these 
deals - which it passes to the 
group in response to requests. 

Given the importance of 
price movements in generating 
probes - 67 of the investiga- 
tions in the first seven months 
of the year were to an extent 
initiated by price “jumps" - 
lack of access to derivatives 
market information is quite a 

hnnriicap . 

As well as being a database 


and analytical tool, imas is an 
early warning system. It pro- 
duces “alerts" every time there 
is an unusual price jump, or a 
substantial transaction, or 
unorthodox pricing by market 
makers - the wholesalers of 
shares - or an apparent breach 
of the exchange's rules on the 
reporting of transactions. 

These alerts are Initially 
scrutinised by the market 
supervision department, which 
is responsible for making sure . 
that trading rules are followed 
by exchange members and that • 
dealing remains "orderly" or' 
not excessively volatile. But 
when it detects possible crimi- 
nal activity, the surveillance 
team takes over. 

The 19-strong team Is split 
roughly down the middle 
between the intelligence gath- 
erers, who operate Imas and 
collect information from other 
sources, and investigators who 
conduct interviews of suspects 
and witnesses. 

The intuition and experience 
of the intelligence gatherers, 
led by Mr Alan Wilson, plays 
an important role in deciding 
which transactions should be 
passed to the investigators for 
further scrutiny. 

For example, substantial pur- 
chases of an FT-SE company’s 
shares prior to a price-sensitive 
announcement would probably 
not be considered sinister if 
they had been carried out 
through a big securities house, 
such as Warburg Securities, . 
since Warburg is carrying out 
substantial deals continually. 

However the group would 
almost certainly conduct fur- 
ther enquiries if a minor Scot- 
tish broker, whose typical 
deals are small, were shown by 
Imas as a substantial pur- 
chaser of that company’s 
shares. 

There is a split between 
those team members who 
think that its most valuable 
tool is human intuition and 
those who place more of their 


faith in computerised analysis. 
This battle may take a decisive 
turn in the coming months 
with the integration of new 
computer software into imas . 

A prototype system, based 
on advanced artificial intelli- 
gence programmes developed 
for the exchange by University 
College. London, has been able 
to identify links between differ- 
ent share traders which were 
hitherto impossible to estab- 
lish. The model has for exam- 
ple uncovered possible concert 
parties consisting of op to 15 
different clients of a series of 
securities firms, by noticing 
that groups of the 15 almost 
always trade in the same secu- 
rities at the same time, even if 
all 15 rarely trade together. 

But establishing who traded 
in any particular case is only- 
half of what the group does. 
Before passing a dossier to the 
exchange, it needs to gather 
evidence of why investors car- 
ried out particular transac- 
tions. Even if trades In a com- 
pany's shares ahead of an 
announcement turned out to 
be by the company chairman's 
mother, that would still not be 
deemed sufficient evidence to 
pass to the DTL In most cases, 
the group's investigators 
would interview the woman to 
ask her why she traded. 

In around 70 per cent of the 
cases where the beneficiary of 
a suspicious transaction is 
identified, he or she will be 
interviewed. “It is the 
exchange's job to fry to estab- 
lish whether information was 
passed and how it was passed”, 
said a former official. 

Again this is very different 
from the NYSE, which never 
talks to any outsiders. It passes 
only trading data to the Securi- 
ties and Exchange Commis- 
sion, which then takes respon- 
sibility for ail further 
investigation including Inter- 
views. 

The exchange’s investigators 
behave very much like police- 


men. They are trained in inter- 
viewing techniques and bow to 
obtain testimony admissible in 
court. Frequently they will 
caution interviewees, using the 
standard form of words 
employed by the police. 

Unlike the police, however, 
they very rarely meet an 
overtly hostile response from 
interviewees. The investigators 
opening gambit of “1 am from 
the Stock Exchange and I have 
come to ask you about some 
share deals you carried out” is 
frequently met with at least a 
partial confession, according to 
past and present officials. 

However, evidence is far 
more difficult to obtain once 
any transaction is routed 
through offshore financial 
centres. Switzerland is now co- 
operating to an extent with UK 
insider dealing investigations 
and providing some details of 
the beneficiaries of share 
trades carried out by Swiss 
banks. 

But it remains almost impos- 
sible to establish the identity 
of anyone trading though a 
nominee company in toe 
Ca yman Islands or the British 
Virgin Islands. 

Some brokers and fund man- 
agers question why the 
exchange should invest so 
much time and money investi- 
gating insider trading, given 
that obtaining a successful 
prosecution appears so diffi- 
cult One fluid manager said: 
“The exchange is pretty good 
at investigating, but to what 
end? Sometimes I think some- 
one should do a cost benefit 
analysis on their surveillance 
unit. Is it really worth the 
cost?" 

The exchange's reply is that 
deterrence is not Just about 
putting people in prison or fin- 
ing them heavily. One official 
said: "You would be surprised 
how often executives mysteri- 
ously resign from their compa- 
nies after the surveillanw 
group has conducted a probe. 


t 









* t u 





**&*??' FINANCIAL times MONDAY OCTOBER 3 1994 

\\ 


Environmental issues: 
code of practice 
published: Page Ilf 


FINANCIAL TIMES SURVEY 


BUILDING SERVICES 


Air conditioning: 
attitudes are 
changing: Page IV 


Monday October 3 1994 




Consumers have been reluctant to pay the price for 
efficient service systems. But there are indications 
that the tide may be turning. David Lawson reports 

Green conundrum 
for the experts 


Two groups of experts sitting 
down today at opposite ends of 
the UK will be trying to solve 
the same conundrum. 

U so much store needs to be 
placed on cutting costs and 
saving the environment why is 
there so little interest in more 
efficient, “greener” buildings? 

In Brighton, more than 50 
construction professionals at 
the annual Chartered Institu- 
tion of Building Services Engi- 
neers' annual conference will 
be exploring why low-energy 
buildings are so rare. Mean- 
while, in Lancashire builders 
will be meeting for an update 
on the fortunes of the National 
Home Energy Rating Scheme. 

One common factor is almost 
bound to emerge. Consumers 
are reluctant to pay the price 
for future savings. Efficient 
systems fbr handling he ating , 
lighting, ventilation and the 
myriad other functions that 
keep commercial buildings 
ticking over cost more. 

Occupiers dislike service 
charges but refuse to accept 
the higher rents or construc- 
tion costs necessary to cut 
them. Homebuyers are little 
different, opting for cheaper 
houses rather than those with 
better insulation and materi- 
als. 

But the tide may be turning. 
The government is committed 
to a 20 per cent reduction in 
carbon dioxide emissions by 
the year 2005. Buildings in the 
UK produce half the carbon 
dioxide pollution, and will be 
regulated more rigorously 
when new construction regula- 
tions come into force next 
April. 

VAT charges on fuel will 
make homebuyers more sensi- 


tive to r unning costs. But com- 
mercial users are already 
aware of an energy bill which 
has soared past £20bn a year 
for UK buildings and thnpatpng 
to go farther if the expected 
carbon tax emerges later t.his 
decade. 

Other worries are also 
crowding in. Modem buildings 
have begun to demonstrate 
frightening side-effects. Elec- 
tronics adopted to save costs 
appear to require expensive 
servicing. Staff fall sick for no 
apparent reason, and even 
passers-by can be struck down 
by invisible bugs. 

Security takes on a new 
dimension. It must combat not 
only bomb threats in the City 
of London but burglars hungry 
for desk-top computers. Even 
hospitals now have to consider 
elaborate alarms to protect 
new-born babies. Fire safety is 
another problem in sealed 
office blocks and shopping 
mans 

Overlaying all this is a drive 
to cut costs as businesses drag 
themselves out of recession. 
While energy-saving is the 
main driving force, ibis combi- 
nation. of factors has brought 
the whole range of building 
services into prominence. 

This is a leading industry 
worth more than £8.9bn in 
1992: 20 per cent of the total 
construction contractors' out- 
put, according to the Building 
Services Research and Infor- 
mation Association. Mechani- 
cal and electrical engineering 
alone was estimated at almost 
£7.5bn last year. 

Many occupiers facing the 
task of trimming spending 
would be surprised to discover 
the number of activities qui- 


etly going on in the back- 
ground to keep their building 
working. An average 10,000 sq 
ft office block costs more than 
£60,000 a year to m aintain , 
according to the annual Office 
Service Charge Analysis 
(Oscar) of property consultants 
Jones Lang Wootton (JLW). 
The cost includes energy, secu- 
rity, heating, air conditioning 
maintenance, management, 
cleaning, repairs, wages, lifts, 
insurance and water. 

it does not include buildings 
insurance and applies only to 
common parts covered by land- 
lords. Tenants pay extra for 
their own cleaning, lighting 
and other services. 

The lion's share goes on 
energy (£L20 a sq ft) and heat- 
ing/air conditioning (£L05), one 
reason why a fierce debate now 
rages over the energy bilL A 
non-air-conditioned block costs 
30 per cent less to run than a 
block with air conditioning 
(£4.16 a sq ft instead of £6.03p). 
according to JLW. 

Much of the debate in 
Brighton will centre on why 
air conditioning has become 
almost universal over the past 
decade. Engineers blame this 
on developers, who pass the 
buck to estate agents, who in 
turn insist this is what occupi- 
ers demand. 

The same chain of blame 
applies to electrical services. 
Designers vastly overestimated 
the needs of modem technol- 
ogy during the 1980s. produc- 
ing over-expensive b uilding s 
equipped with air systems 
capable of extracting vast 
amounts of heat from electron- 
ics and heavyweight electrical 
systems to power them. 

Many occupiers are paying a 



The ‘instde-ouf Lloyd's Buiding in the City of London gives a good fctead of wtnt normafly Bes beneath the skin of most buldings. Working inside the machine: Page 4 Pki.-jfD: frawv Huirptvna 


premium for ventilation 
systems that run below capaci- 
ty - and therefo re inefficiently 
- plus extra charges to electric- 
ity suppliers for not using up 
their contracted loads. 

Service engineers say this is 
partly because of their lack of 
status. “We should be brought 
in earlier to advise on what is 
really required in buildings," 
says Mr David Lush, a consul- 
tant with Ove Arup and former 
president of the Chartered 
Institution of Building Services 
Engineers (Cl BSE). 

Air conditioning is now 
under scrutiny, however. Man- 
ufacturers insis t that it is still 
necessary in town centres, 
where noise and dirt preclude 
opening windows. They are 


producing systems which are 
both “greener" and more effi- 
cient. Chlorofluoro carbons will 
soon disappear and blanket use 
of full-blown variable air vol- 
ume (VAV) systems is giving 
way to partial air conditioning. 

The manufacturers have one 
eye over their shoulder on the 
government. Air conditioning 
only escaped rigorous controls 
in next year’s reforms of build- 
ing regulations because minis- 
ters were persuaded the con- 
trols would be unworkable. 

It had been suggested that 
builders justify every system 
with evidence from occupiers 
that such technology was 
essential. They argued that 
buildings were usually con- 
structed long before anyone 


knew who would occupy them. 

But the pressure for reform 
remains intense. The govern- 
ment expects a more practica- 
ble solution and the British 
Property Federation and 
CIBSE are trying to create 
either an energy scoring sys- 
tem or an environmental 
“shopping list" that can be 
applied to commercial build- 
ings. 

Other pressures are coming 
from Brussels, where the Euro- 
pean Union is pouring out a 
stream of directives. “The 
problem is that we are not 
being consulted,” says Mr Ken- 
neth Dale, president of 
REHVA, the Federation of 
European Heating and Air 
Conditioning Associations. One 


rule demanding that every 
electrical item had to be 
checked every year had to be 
revoked after service engineers 
showed the crippling cost of 
such a task. 

Little hard evidence has 
emerged that changes are tak- 
ing place on the ground 
- mainly because so few build- 
ings have gone up during the 
recession. But some promising 
signs are looming on the hori- 
zon. 

Shell-and-core techniques are 
creeping in. where developers 
wait for a tenant before put- 
ting in all the services. This 
gives engineers a better chance 
of influencing decisions. 

Developers have always 
claimed that occupiers demand 


to see finished buildings - even 
if that means expensive 
replacement of unsuitable ser- 
vices later. But Coca-Cola has 
made an early claim on an 
unfinished 80,000 sq ft block in 
Hammersmith because it saved 
having to throw out the devel- 
opers’ fittings and gave better 
control over the end product, 
said Mr Stephen Watkins, the 
company’s property services 
manager. 

This technique, common in 
other parts of the world, will 
become more common, says Mr 
Chris Hiatt of JLW. particu- 
larly as computer advances 
allow agents to take potential 
occupiers around “virtual real- 
ity” buildings rather than 
Continued on Page 11 



hi?-. ■; 


aide. 


ALL THE SERVICES 
YOU REQUIRE 
UNDER ONE ROOF 

Haden Building Services has an integrated approach to 
services for buildings. Specialist divisions, Haden Young, 
Haden Maintenance and Haden Facilities Management 
actively ensure that projects are completed safely, on time 
and within budget - then continue to operate efficiently 
and in good health, for the rest of their life. 

Boasting an enviable record of Health and Safety in 
construction, Haden has an attitude to safety that is fully 
in line with the new CONDAM Regulations. Time and 
money is saved by careful pre-planning and an extensive 
use of 3-D modelling of congested areas to ensure that 
the building process is folly co-ordinated. Running costs 
are controlled by Haden's complete involvement from 
construction through to operation maintenance and 
facilities management - with a keen eye for detail! 

Finally and importandy, Haden provides buildings with 
a healthy working environment, paying particular 
attention to the air quality, comfort and energy 
efficiency of the dynamic building services. Whilst at the 
same time, carefoUy considering the external impact of 
projects on the local and global environment. 

Mi 

Bringing Buildings to Life 

HADEN BUILDING SERVICES LIMITED 
100 High Sara Southgate N14 6ES 

Telephone 081 882 6121 Fax 081 882 7005 

HADEN YOUNG • HADEN MAINTENANCE ■ HADEN FACILITIES MANAGEMENT 

BICCGroup 




mg data lor the monitoring oi targets, ana oie lor uiu uHiiumig i*i 






10 


FINANCIAL TIMES MON DA V OCTOBER 3 >994 


BUILDING SERVICES II 


nergy saving has taken 
on a significance akin to 
I the hunt for the holy 
grail This has less to do with 
the semi-religious frenzy over 
global warming, however, than 
the grinding weight of eco- 
nomic recession. 

During the cost-cutting 
induced by falling profits, 
occupiers began to realise bow 
much they were paying to heat 
the surrounding neighbour- 
hood. 

Despite multiple oil-price 
shocks, many were still living 
in the era of cheap fuel. Luck- 
ily. energy-saving has proved a 
lot more attainable than the 
mythical grail. 

The campaign to curb air 
conditioning, dealt with else- 
where in this survey, has made 
headlines. Yet supporters 
claim that it accounts for less 
than 4 per cent of the energy 
consumed in commercial build- 
ings and produces less than l 
per cent of the UK output of 
carbon dioxide. 

Choice of air conditioning 
also applies mainly to new con- 
struction. But the bulk of the 
problem lies with existing 
buildings, whichever way they 
are serviced. These are being 
tackled with a less glamorous, 
but more productive, campaig n 
of uprating the management of 
energy systems. 

Energy-saving schemes are 
not new. The Vickers tank 
plant In Newcastle, for 
instance, was worked over 


ENERGY SAVING 


Awareness is spreading 


more than 10 years ago by 
Ryder Nicklin, architects and 
engineers. Draught-proofing. 
Integrated energy controls and 
low-energy lighting cost £6m 
but cut bills by 90 per cent to 
£70,000 a year. 

This kind of awareness of 
energy costs is spreading out 
of the manufacturing sector, 
says Ken Ordish, managing 
director of ESS Projects. 

Groups such as NatWest 
Bank and Bass Breweries have 
commissioned energy “audits" 
of buildings ranging Cram high 
street branches to administra- 
tion blocks, pubs and hotels. 

Other factors than the blitz 
on costs may be helping this 
change. 

The Building Research 
Establishment (BRE) has cre- 
ated an Environmental Assess- 
ment Method (Breeam) for test- 
ing the “greenness" of 
buildings, which groups such 
as the BBC and London Trans- 
port have promised to use. 

Just as important, however. 
Is the work the BRE's Energy 
Conservation Support Unit 
(Brecsu) is doing to get such 
issues discussed at board level 

Occupiers often have the 
in-house specialists who know 
the problems, but they do not 


have the communication skills 
- or status - to get the mes- 
sage across, says Brecsu. It has 
persuaded 1,500 top companies 
to commit themselves to “re- 
education'*. 

Decisions on energy-saving 
are filtering down from the 
top, says Mr Ordish. Now his 
part of the industry has to 
solve problems that arose 
because service engineers were 
not consulted in the past “It is 
often a case of making existing 
controls work properly,” he 
says. 

“If the people who run build- 
ings were consulted earlier by 
and electrical engi- 
neers in the planning of build- 
ings this would not happen.” 

Privatisation is also having a 
big impact. Schools and hospi- 
tals find that the freedom of 
opting out of state control also 
brings the burdens of paying 
big bills. 

Two trusts set up in the Not- 
tingham. area. Healthcare and 
Community, discovered an 
energy bill of close to £im on 
28 premises ranging from large 
hospitals to small day centres 
spread across the city. They 
also farad a responsibility to 
match the government's 
request to industry for 15 per 


cent energy cuts over the next 
five years. 

Phil Wlnstanley, the energy 
manager, will be plugging one 
gap by early involvement with 
premises now being built. 
Existing premises will be 
drawn together into a central 
bunding service network under 
which conditions can be 
remotely monitored by desk- 
top computer or the service 
engineers' portable lap-tops. 

One problem is that two 
kinds of control equipment are 
in use - Andover Infinity on 
larger sites and SatchweU on 
others. 

I his is being tackled by 
more systematic specifi- 
cation in future, but that 
leaves the task of stit ching two 
existing systems together. 

ESS has installed building 
energy management systems 
(Bems) which should soon be 
able to integrate control 
through a CdC data engine. It 
should also be able to cope if 
other brands of control equip- 
ment are required in future. 

Tight budgets mean the cost 
of inkaUation must be covered 
by energy savings, and this has 
already started happening. 

The last energy bill came to 


IF YOU 
LIKE SAVING 
MONEY 



HERE’S A BREATH OF FRESH AIR 

Good news for the frugal minded. Mitsubishi Electric has introduced 
the Lossnay range of total-heat-exchange Ventilators. 

It's a system that's specifically designed not only to save thermal 
energy, but also money too. 

Cooling and heating running costs can be reduced drastically. 
sometimes by as much as 50%. 

This is made possible because the system recovers total heat - 
from both the temperature and humidity of stale air. Then by adding fresh air brought in from out- 
doors, it maintains a consistent temperature and humidity in the room. 

The Lossnay is an economical and efficient addition to your conventional air concfitioning system. 

So don't delay, contact us now and give your cooling and heating costs a breath of fresh air. 



A 


MITSUBISHI 

ELECTRIC 


ENVIRONMENTAL CONTROL SYSTEMS 

Mitsubishi Beetric Air Conditioning Division, Travellers Lane, Hatfield. Herts ALIO 8XB. Tel: (0707) 278850. Fax: (0707) 278674. 


WSP Grouo Die 


as 

As a public company and one of the leading multi-disciplined Consulting Engineers 
with offices throughout the United Kingdom and Europe. 

WSP Group pic provides expertise in all aspects 
of the built and natural environment. 


Environmental Engineering 
I Air Conditioning - Heating - Ventilation 
■ Information Technology 
■ Health & Safety 
■ Facilities Management 
■ Lighting - Power - Power Generation 


■ Structural and Gvil Engineering 
■ Security 
■ Public Health 

■ Environmental - Geogechnica] - Contamination 
■ Transportation - Traffic & Highways 
■ Fire Engineering 

A CREATOR OF THE BUILT ENVIRONMENT" 


just over film, which Mr Win- 
stanley estimates as aa IS per 
cent cut on two years ago. This 
should fall further as ESS 
works its way through the 
remaining buildings. 

Each has been prioritised 
through an initial monitoring 
exercise which gave ESS a win- 
dow into the trusts' systems 
from its base 25 miles away. 

Consumption profiles were 
built up from physical factors 
and energy use. Payback peri- 
ods were decided in co-opera- 
tion with the finance depart- 
ments on a cost ratio basis. 

Struggling with poorly speci- 
fied or obsolete technology is a 
common factor. Chesterfield's 
Salleigate Health Centre had 
to keep the heating on perma- 
nently because parts were 
impossible to find, running up 
bills of more than £15,000 a 
year. But new technology can 
now cope with this sort of 
problem. 

Fitting Bems saved the cen- 
tre the equivalent of more than 
£2,700 in the first 10 months, 
says ESS. 

The system is intelligent 


enough to adjust water heating 
to different levels according to 
requirements for each part of 
the building. It even calculates 
when to turn on so the temper- 
ature is correct at opening 
time. 

Besides a local display board, 
the controls can be adjusted 
over the phone by the health 
authority’s district energy 

manag er 

This helped cut costs by 18 
per cent last year, when the 
older system would have 
reacted to the unusually colder 
weather by pushing the bill 10 
per cent higher. 

Monitoring is a crucial part 
of energy management which 
is often overlooked, says Mr 
Ordish. “Settings may be ideal 
when a building is first occu- 
pied but uses - and users - can 
change.” 

Many occupiers will have to 
r ememb er t hat energy saving 
is a continuing task involving 
regular audits to ensure that 
the systems are working cor- 
rectly. 

Those currently driven by 
concern for the environment 
may forget this as fashions 
change. Then the cycle will 
come again as recession - or a 
fuel tax - finds them rediscov- 
ering the need for cost-cutting. 



David Lawson ESS supplied an energy m ana gement system to Nottingham City Hospital 


ven the most m undane 
workplace is cocooned 
nowadays in a network 
of wire; data links, several 
kinds of computer cable, tele- 
phone cords and - hiding in 
this web - electrical power 
leads. 

“Any change of hardware 
rem result in a change to the 
cabling,” says Stephen Hill of 
Oscar Faber Information and 
Communications. “And of 
course noone knows which are 
the original ones, so new cable 
is simply piled into the trunk- 
ing." 

Moving desks can be just as 
chaotic, as the confusion over 
what goes where is com- 
pounded by the fact that noth- 
ing seems to mntdh. A PC can- 
not use a mainframe terminal 
wire any more than it can a 
power lead -as service engi- 
neers sometimes find to their 
cost 

This is no isolated problem. 
Offices “chum” constantly, 
moving half their work posi- 
tions within the first year of 
occupying a building and up to 
30 per cent annually after that, 
says Mr HilL More than half 
require recabling, costing up 
to £400 per person. 

One solution has emerged 


COST-EFFECTIVENESS 

Towards more 
flexibility 


over the past five years, how- 
ever. Structured wiring 
schemes (SWS) involve highly 
specified cabling which can 
accommodate a wide variety of 
users. Conversion equipment 
and special junction boxes 
mean that people and their 
computers can be moved 
around easily and simply. The 
cabling works for any kind of 
hardware, so that, too. can be 
moved or changed. This cuts 
the- cost of chums to £20 per 
person, says Mr HilL The extra 
cost of SWS pays for itself in 
two or three years. 

But what about a mechanical 
digger waiting to wreak havoc 
in the road outside? Simple, he 
says. Lay in a second, standby, 
connection. “The cost is negli- 
gible if provided at an early 
stage.” 

One of the main complaints 


Consulting Engineers 


Registered office: IS New Bridge Street, London EC4V 6AU. Tel: 071-353 9355 Fax: 071-583 2789 


A green 
conundrum 
for the 
experts 

Continued from Page 1 
waiting for a finished one. 

The most significant pres- 
sures for change over the next 
few years may come from occu- 
piers themselves rather than 
conferences and regulations. 
Soaring energy bills, concern 
over the impact of “sick” build- 


ings on productivity and poten- 
tial legal responsibility for 
legionnaires’ disease bugs in 
water systems are ail making 
tenants more aware of the ser- 
vices hidden in their buildings. 

Developers such as Norwich 
Union have taken up the chal- 
lenge, offering to produce 
blocks which are both greener 
and cheaper to run. If occupi- 
ers take up the challenge, engi- 
neers will welcome it with 
open arms. In the meantime, 
they face a long campaign to 
adjust the vast bulk of existing 
services either upwards to 
meet modem demands for effi- 
ciency, or downwards from, the 
inflated ideas of the 1980s. 


of engineers is that such 
systems have to be retrofitted 
because they are not involved 
early enoug h in p lanning ser- 
vices. Developers argue that so 
much is determined by plan- 
ners and tightly constrained 
finance that it is pointless call- 
ing on engineers until the 
detailed services are required. 

his is compounded by the 
strangely British way of 
completing buildings 
before anyone knows the spe- 
cific needs of occupiers. Devel- 
opers and agents argue that 
tenants will not take premises 
until they see everything in 
place. Occupiers then merrily 
tear out thousands of pounds’ 
worth of fittings to replace 
with their preferred options 
- or make the best of services 
such as cabling and air condi- 
tioning that are patently 
unsuitable. 

Some progress has been 
made towards the US tech- 
nique of taking buildings only 
to “shell and core” stage. This 
means that the frame and clad- 
ding are finished but only the 
main services are installed in 
the core. Occupiers then spec- 
ify what they require on the 
lettable floor areas. 

The reason is more to do 
with a Tail-off in speculative 
development than any change 
of heart by developers, how- 
ever. Pre-lets are now the 
norm, so they are dealing with 
an occupier who will specify 
the services needed. 

The spin-off is more “appro- 
priate" buildings, says Kevin 


Cooke, divisional director of 
cost consultants AYH Partner- 
ship. 

“We can now get past the 
agents and their demands for 
excessive specifications.” he 
says. Power-loading is his par- 
ticular bugbear. Reducing the 
specification on one 400,000 sq 
ft scheme in London from 25 to 
15 watts per sq metre cut capi- 
tal spending by £400,000 and 
maintenance-running costs by 
£80,000 a year. 

Another message getting 
through to occupiers at this 
early stage is that buildings 
should not be judged solely on 
initial construction prices. Life- 
cycle costing, which takes into 
consideration the running and 
maintenance bills for plant and 
equipment has been preached 
by engineers and surveyors for 
years. Now they can make a 
case directly. 

Developers remain uncon- 
vinced. “We see the looks on 
people's faces when presented 
with bare concrete and pipes,” 
says one. “They want some- 
thing nice to look at before 
putting their hand in their 
pocket - even though they 
know it could all come out 
later." 

But while buildings remain 
hard to let, developers find 
they have to pay this double 
cost of fitting and refitting 
themselves, so the prospect of 
more shell-and-core schemes 
-and “appropriate” servicing 
-has brightened. Institutional 
funders are also being won 
over, as the core services can 
be matched to their standards 
even if letting areas are tai- 
lored for individual users. 

Whether this survives a mar- 
ket recovery remains to be 
seen. But both funds and occu- 
piers are adjusting to the idea 
that they should be demanding 
buildings flexible enough for 
tomorrow’s tenants - whoever 
they might be. 

David Lawson 


OFFICES 


SC HO 015 


HOTELS 


HOSPITALS 


CHURCHES 


CONSULTING 


ENGINEERS 


RYBKA B A T T 


a 


Vince") I kiu«e. 

VinCvni oqxajij 

1-xrkr, svvlP ?r-« 

d?i S'l I 
ln&ni,V;0. , l 831 S688 


"Low-energy building design 
strategies which reduce running 
costs and achieve excellent, healthy working 
conditions — now and for the next millennium" 



ASSET 



WORLD LEADERS IN 
OFF-PEAK AIR CONDITIONING 



Buildings need air conditioning to maintain a 
comfortable working environment; and whether 

building for owner occupation or speculative 

development an air conditioning system 
incorporating a CALM AC Ice Storage System will 
proveto be a real asset 

• Smaller refrigeration plant means lower capital 
cost and less hamful refrigerant to reduce Ozone 
Depletion Potential. 

• CALMAC uses water (which is a natural phase 
change material) in order to store a great deal of 
energy for later use. 

• Lower power input to building reduces maximum 
demand charges and Global Warming Potential. 

• System allows 'demand side management’ so 
that maximum advantage can be taken of Power 
Tariff. 

• CALMAC’s modular, factory engineered product 
is reliable - energy efficient - performance 
guaranteed. 

• Lower power costs and less maintenance mean 
savings year after year after year. 

Sole UK. Distributors 
ICE STORAGE SYSTEMS LIMITED 
28 The Uplands, Loughton, Essex IG 10 1 NH 
Tel: (0181 ) 508 7766 Fax; (0181 ) 508 3115 


1 

















FINANCIAL TIMES 


MONDAY OCTOBER 3 1994 


11 


BUILDING SERVICES III 


Tim Burt reviews research and innovation 

Beware the back burner 


When more than 1,200 opera 
lovers rose to applaud the first 
night of Figaro at the new 
Glyndebourne Opera House, 
few or than paused to consider 
the .triumph of engineering 
behind the scenes. 

The £33m East Sussex audi- 
torium, however, would not 
have been ready to stage last 
May's inaugural production 
had it not been for the use of 
innovative building services 
technology. 

That expertise, drawn 
together by consultant engi- 
neers Ove Arup, depended in 
large part on products devel- 
oped overseas. The cast list of 
the building’s main equipment 
suppliers was dominated by 
international stars such as 
FrOIing, Weishaupt, Trane. 
Grundfbs and Krantz. 

Critics of the UK building 
services industry argue that 
contractors favour such prod- 
ucts because they represent 
thousands of hours of research 
and development - an area 
which has been comparatively 
neglected in the past in 
Britain. 

“Research and innovation on 
building services is taken 
much more seriously in Scan- 
dinavia and North America,” 
says Dr Leslie Ha wkins , direc- 
tor of occupational health at 
Surrey University's Robens 
Institute. 

“We have Just as many sites 
affected by sick building prob- 
lems, but we don't seem will- 
ing to commit the research 
funding needed to examine it” 

His concern is echoed at the 
Building Research Establish- 
ment (BRE), the research 
agency funded partly by the 
government. 

Mr Stephen Willis, head of 
the new technologies and con- 
trols section in the BRE’s envi- 
ronmental systems division, 
warns that innovation m the 
UK still lags behind overseas 
competitors and is often 
regarded as conservative. 

That fault may be due to the 
tendency among British archi- 
tects to first design a building 
and only consult building ser- 
vice engineers afterwards to 
make the plans work. 

With little room to manoeu- 
vre, the engineers sometimes 
have no option but to fall back 
on expensive and costly 
systems for air conditioning 
and other ^services. 

Moves to introduce suppos- 
edly innovative ideas, such as 



bmovation: De Montfort University's new school of engineering and manufacture makes use of natural ventilation 


manually-opened windows for 
natural ventilation, sometimes 
also run into hostility from 
owner-occupiers who regard 
such ideas as imprest! gious 
and old-fashioned. 

In some cases, there has also 
been a reluctance by the con- 
struction industry to embrace 
schemes which could threaten 
their lucrative maintenance 
contracts. 

The government, according 
to Mr Willis, has recently 
urged companies to change 
their attitude by taking part in 
collaborative research funded 
jointly by industry and the 
Department of the Environ- 
ment 

Pressure to increase research 


By implication, industry 
could do more to 
support development of 
new technology * 

funding mnnntad following the 
1992 Rio Convention on Cli- 
mate Change, in which Britain 
acknowledged the need to 
reduce greenhouse gas emis- 
sions from commercial build- 
ings. 

As part of that commitment 
the BRE has launched a Elm 
energy-related environmental 
issues programme, which 
includes 20 research projects 
on subjects ranging from 
avoiding air conditioning to 
guidance on refrigeration 
systems and the application of 
neural networks. 


DALE AND GOLDFINGER 

DALE AND WHO? 

The Building Services Consulting Engineers 
with 40 years of experience in design and 
project management at home and abroad 
London and Cirencester 

Bingham House, 1 Dyer Street, 
Cirencester, Gios.GL7 2PP 
Tel. 01285 658341 Fax 01285 659029 




BRIAN WAR WICKER PARTNERSHIP PLC 

| INNOVATIVE BUILDING SERVICES ENGINEERS 

LONDON • PARIS • NEW YORK • CAIRO • DUBAI 

THE MILL, COLCHESTER, ESSEX C07 7RS 
ENGLAND (Tel) 0206 230009 (Fax) 0206 231315 


Working for a better 
environment by design 


HOARE LEA 

& PARTNERS 

rOKSl 1 LTtXB tMilMjltH 



IEa ill 



BIRMINGHAM 

reoci-MUSf 
I -HEW* 

no.-«»-w3w 


"ohuni ‘ r-ABIHFF BMNBU8CH BL£OFHAN 
ieSSmSmw ■ ■ ~ rfj, wShMM* nL-adMii* 


Its work is being matched by 
the Building Services Research 
and Information Association 
(BSRIA), which represents 
almost 800 contractors, manu- 
facturers and consulting engi- 
neers. 

Although it has 21 research 
projects under way, Ms Anne 
King , the association’s market- 
ing director, admits: “We do 
not compare favourably with 
overseas competitors on R&D. 
Britain spends less than Ger- 
many and Japan on research, 
even though go v ernment back- 
ing has not been cut” 

By implication, indus- 
try- which funds 23 per cent 
of BSRIA ’s £2m research fund- 
ing - could do more to support 
development of new technol- 
ogy. But in a sluggish commer- 
cial property market, construc- 
tion companies are anxious to 
keeping building service costs 
to a minimum and have been 
slow to change. 

There are. of course, build- 
ings which show that innova- 
tion works. Mr Stephen Willis, 
at the BRE, cites the De Mont- 
fort University’s new school of 
engineering and manufa cture 
as an example. 

Part gothic, part art deco -it 
makes use of natural ventila- 
tion and large areas of glass to 
maximise light and heat. 

Mr W illis c laims that simil ar 
schemes are relatively rare 
because of a lack of training 
initiatives among the building 
service engineers who advise 
on plans for new or refur- 
bished b uilding s 

“I don’t see a great deal of 
evidence of professional train- 
ing. Without that, one ends up 
reinforcing the conservatism in 
British building services." 

Dr Hawkins at Surrey Uni- 
versity agrees. He blames most 
of the problems on air condi- 
tioning systems, one of the 
main contributors to sick 
building syndrome. 

“We seem to be extremely 
bad at getting air conditioning 
to work properly. I’ve come 
across a lot of companies with 
excellent facilities which are 
allowed to deteriorate through 
poor maintenance.” 

Claims that a lack of profes- 
sional training is largely to 
blame are rejected by the Char- 
tered Institution of Building 
Service Engineers. 

There has been a shift to 
cnnHrmal professional training 
since the mid-1980s, according 
to Ms Jennifer Hand, spokes- 
woman for the institution. 

“Our 15,500 members are 
required to keep abreast of 
new developments and we 
have increased the emphasis 
on updating skills for profes- 
sional building service engi- 
neers,” she says. 

Citing changes in the train- 
ing framework, Ms Hand 
points to the scheme run by 
Ove Arup. Under its training 
programme, some 300 gradu- 
ates are guided by senior 
supervisors through courses 
ranging from acoustics to 
structural engineering. 

“It's a throwback to the 
apprenticeship system and we 
now create a gateway for grad- 
uates to pursue the right 
career as part of a professional 
review process, " says Mr Roger 
Chantrelle. training and devel- 







Structural Engineering 
Building Services Engineering 
Environmental Engineering 
Fire Safety Design 
Acoustics 


Ngw inland Ravenw Heaflquaitarc. Noungham 


Energy’ efficiency through integrated 
engineering design 


£ 




mvAntpC- « 
t.i hiznw.SiMf 

[jubjiiii ir/i’rtfitr 

«*.*«•*- ujrj «*'. Wi 

i/iiffb/tr JiW 

*1 or r.V ;-■*-**■ 


ARUP 








■y 


opment manager at Ove Arup. 

The scheme, however, is 
thought to be the exception 
rather than the rule in an 
industry under pressure to cut 
costs and trim back on 
research and development 
spending. 

“There is still not enough 
money being put into preven- 
tion of sick b uilding syndrome 
through R&D,” says Dr Hawk- 
ins. 

Industry, it seems, has yet to 
be persuaded. Under govern- 
ment pressure, it has paid 
more attention to research and 
new innovation. But remedial 
maintenance of existing 
systems is thought to be a 
more lucrative pursuit than 
mafolffog new and innovative 
products. 

In an industry still climbing 
painfully out of recession, 
research and development runs 
the risk of being consigned to 
the back burner. 


cartoon sums up some of 
the thinking behind 
recent moves on the 
environment in the building 
services industry. It depicts a 
bright, pristine planet earth 
with two figures. One, called 
The First Client, is drawn with 
a god-like flowing white beard 
and gown. He Instructs a 
small, confused individual 
called The First Engineer. 
“Okay, now put in the ser- 
vices”. 

The next image is of the 
same planet almost completely 
covered in smoking pipes and 
tubing, oxygen tanks and 
numerous different gadgets. 
The client says to an 
exhausted engineer. “Fine. 
Tine. But where do the lifts 
go?" If only there had been 
more communication - if only 
the engineer had been in on 
the act of creation at the begin- 
ning - his efforts to supply the 
end product with the services 
it needed would not have been 
quite so damaging. The car- 
toon is used on the cover of a 
report which aims to do some- 
thing about this state of 
affairs. 

The Building Services 
Research and Information 
Association published an envi- 
ronmental code of practice ear- 
lier this year. The code, spon- 
sored by a range of clients and 
funded by the Department of 
the Environment as well as by 
industry, aims to cover the pro- 
cess of building from inception 

to dismantling . 

Although most people in the 
building services industry 
accept that their chances of 
improving the environmental 
impact of buddings would be 
enhanced if they were brought 
in at the inception of any proj- 
ect, the code aims to provide 
advice and recommendations 
for the “real world”, says its 
author, Sandy Halliday, princi- 
pal engineer and environment 
section leader at BSRIA. This 
world consists of engineers 
being called in once a building 
is built, or for refurbishment 
once it is already past its 
prime, or for demolition. 


ENVIRONMENTAL ISSUES 

Code of practice 
published 


The code, the result of three 
years' work, will be distributed 
to architects, project manag- 
ers, quantity surveyors and 
designers as well as the associ- 
ation's 800 or so b uilding ser- 
vice members. It was spon- 
sored by a range of clients, 
from PowerGen and a county 
council to housing project 
groups. “We realised quite 
early on that it was pointless 
trying to do this in isolation; 
that everybody involved in 
building had to realise what 
was going on," says Halliday. 

Lack of awareness and lack 
of communication have been at 
the root of the problem for 
some time, she says. “Tradi- 
tionally engineers have been 
given a box and told to heat it 


- how to improve the environ- 
mental impact of waste dis- 
posal for example -but it also 
paints the work of a building 
services engineer on a wider 
environmental canvas. It ques- 
tions whether a building is 
actually necessary. 

“This sounds radical for a 
building services engineer.” 
says Ms Halliday. “but not 
enough of us actually ask 
whether we need a building in 
the first place” 

The report warns of the 
effect that a badly-designed 
building can have on the local 
environment. Demolition of 
unsightly buildings is a 
“wasteful use of capital 
resources", it says. It criticises 
the move away from the use of 


Many have already taken on board some 
of the issues dealt with by the code 


to such and such a tempera- 
ture and cool it afterwards. 
The work has been thought of 
in terms of providing equip- 
ment rather than a living envi- 
ronment There has been no 
concern about what the effect 
on the local environment is 
going to be. let alone the global 
one." 

The association felt that the 
accepted attitude had to 
change. It soon found tbat 
members were willing to listen. 
More members of the associa- 
tion supported the £140,000 
environment project than had 
supported any other in 
BSRIA 's 19-year history. 

The report focuses on the life 
cycle costs of a building rather 
than the first cost of construc- 
tion. It deals with the basics 


sunshine, natural light and air 
in buildings. “There has been 
an increasing tendency to 
replace these natural systems 
with energy-consuming build- 
ing services which are fre- 
quently more prolific, less 
functional and less efficient.” 

Many in the industry have 
already taken on board some of 
the issues dealt with by the 
association’s code. The Jus- 
tham Dunsdon partnership, for 
example, has been working on 
a feasibility study for National 
Westminster bank. The engi- 
neering consultancy proposes 
to use a system of air condi- 
tioning or “comfort cooling” 
which aims to save the bank 
£750,000 a year in energy costs. 
Most of this saving would be 
achieved by employing a sys- 


tem of refrigeration which uses 
the outside environment. 

Keith Dunsdon. principal 
partner at the company, 
believes the industry is only 
now beginning to wake up to 
the benefits of environmental 
technology and developments. 
“We were perhaps too happy in 
years gone by to use systems 
which had worked quite well 
in one building for ail build- 
ings. Now we are being encour- 
aged to be more innovative as 
well as practical in our energy 
efficiency, for example." 

This change was brought 
about by a number of factors 
but particularly the recession, 
he says, with “people expecting 
twice as much for their 
money". Both he and BSRIA 
are clear that long-term envi- 
ronmental benefits go hand In 
hand with cost savings in win- 
ning projects. 

Mr Dunsdon adds that the 
job is easier with educated cli- 
ents who understand the 
advantages of constructing 
environmentally-friendly build- 
ings. “Sometimes people are 
worried about new ideas. 
We've been lucky in working 
with clients that understand." 

A follow-up project will chart 
the economic and environmen- 
tal Implications of the code by 
analysing the effectiveness of 
case studies in the public and 
private sector later this year. 

Sandy Halliday says: “We 
didn't want to end it there; to 
say: ‘A code has been drawn 
up - that's it'. We had to make 
a judgment about how effective 
the recommendations were in 
actually cutting harmful emis- 
sions, improving the environ- 
ment and saving money. That's 
the next step.” 

Much of the work in terras of 
attitude has already been done, 
she says. “At the most basic 
level engineers recognise that 
good sense about the environ- 
ment makes good business 
sense. If you can save money 
by turning lights off, and at 
the same time save a lot more, 
then you do so.” 

Jane Martinson 





How LIGHTING can affect both sides of your 
Profit & Loss Account 

Lighting may be low priority to most business people, but the Profit & Loss Account 
speaks the universal language of money. 

There's a free, non-technical handbook explaining how lighting can significantly 
affect both sides of your P & L. 

It will surprise you. It may shock you. 

Simply send back the coupon, or call 0181-686 1966orfax 0181-686 1967 

- 

You don’t need a stamp, if posting inside the UK. Send to: j 

| Philips Lighting Limited, FREEPOST, The Philips Centre, 420/430 London Read, CROYDON. CJ19 van « tv ^ w 


I Name 
| Position 
I Organisation 

I Address 

I 

l 


Tel No 


Fax No 


The better the light, 
the better the life. 



PHILIPS 



— — • arsr? 

' ir,- 


5 


lug data tor the monitoring oi targets, anu om tur me iitutuuug ui waste imuwisu.b- 











12 


FINANCIAL, TIMES MONDAY OCTOBER 3 1994 


★ 

BUILDING SERVICES IV 


Attitudes to air conditioning are changing, says David Lawson 

Is it time to switch to comfort cooling? 



TosHba manufactures air conditioning units at Ua factory In Plymouth Greener bubfing: a modal of the Norwich Union's project hi Croydon 


T wenty years ago you 
would have been hard 
pressed to find a new 
building with full air condi- 
tioning in the UK. Such tech- 
nology seemed pointless in a 
temperate climate. Today, it is 
difficult to find one that is not 
festooned with “comfort cool- 
ing". 

The term has been imported 
from the US - and there lies 
part of the reason for t his sea 
change. It is what Tim Battle, 
an engineer trying to torn 
back the tide of technology, 
calls an invasion by the Coca- 
Cola society, in other words, 
adoption of all things Ameri- 
can glitzy and futuristic in the 
constant striving to be modem. 

This has infuriated conserva- 
tionists, who argue that such 
energy-hungry systems, with 
their chlorofluorocarbons and 
potential health risks, are an 
unnecessary luxury. 

Some of the very engineers 
who have to design and build 
the systems are often sympa- 
thetic. "Modem technology is 
very seductive," says David 
Lush, a consultant with Ove 
Amp and past president of the 
Chartered Institution of Build- 
ing Services Engineers. 

Disapproving noises are also 
coming from the government, 
which tried earlier this year to 
put draconian restrictions on 
air conditioning in the next 
round of building regulation 
reforms. “There is a general 
disappointment that they 


failed,” says Kenneth Dales, 
president of REHVA, the Euro- 
pean Heating and Air Condi- 
tioning Associations. 

The industry won a reprieve 
by arguing that blanket restric- 
tions were wrong. But minis- 
ters have made it plain they 
expect designers to come up 
with measures that ensure 
fewer systems are installed, 
and that those that get 
through are more efficient 

Equipment manufacturers 
feel the problem has been over- 
stated. In real terms, air condi- 
tioning accounts for less than l 
per oent of the UK’s output of 
carbon dioxide and less than 4 
per cent of energy consumed 
by the commercial building 
sector, according to York Inter- 
national. the world’s largest 
producer. Advances in technol- 
ogy are making the figures 
look even better, while CFCs 
wifi also have disappeared by 
1995, it says. 

But it is harder to argue 
away the conclusion that air 
conditioning has been over- 
used. Growth of new technol- 
ogy has placed greater 
demands on cooling systems 
from computers crammed into 
even the most mundane work- 


place. As the noise and dirt of 
city centres kept windows 
closed, air conditioning soon 
became a standard fitting for 
most city-centre buildings. It 
then spread to business parks 
and suburbs where the need 
for such systems is less clear. 

A combination of recession 
and fears about global 
warming may be about to cre- 
ate another sea change, how- 
ever. Engineers have always 
blamed developers for over- 
specifying buildings. They, in 
turn, accuse estate agents, who 
p-iafm occupiers will not take 
anything l ey? thaw fiiii variable 


air volume (VAV) systems. 

But one of the country’s larg- 
est developers is about to test 
this in a 140,000 sq ft block 
planned for central Croydon. 
“Our findings show that occu- 
piers are willing to pay a little 
more for a greener building 
which cuts energy bills by 30 
per cent" says Bob Del afield, 
project manager for Norwich 
Union. 

This desire to cut r unning 
costs - tinged with fear that 
some kind of carbon tax win 
emerge later this decade to 
make things even worse - is 
still at the experimental stage. 


Building will not start until a 
t enan t decides that energy-sav- 
ing is vital and signs up lor the 
space. 

Norwich Union is also hedg- 
ing Its bets. This is not one of 
those “landmark" develop- 
ments which turns up every 
few years, boasting complete 
lack of air conditioning in 
favour of natural ventilation. 
“Those are plainly not feasible 
on anything other than a 
greenfield site where you have 
freedom to manipulate impor- 
tant factors like orientation to 
the sun," says Graham Love, 
head of project consultancy at 


Jones Lang Wootton. 

The Croydon scheme is 
likely to offer “appropriate” 
cooling such as displacement 
air techniques, which cut run- 
ning costs to about half the 
level of full VAV. But the 
designs are still flexible 
enough for future occupiers to 
fit the sort of systems they 
desire. The building will be 
“capable" of using low-energy 
methods, says Bill Dickson of 
architects Sheppard Robson. 
Occupiers will have to decide 
whether to use that capability. 

Success will be judged by the 
business world not in environ- 


mental terms but a swift let- 
ting. That could lead to further 
schemes taking off. 

Mr Dickson has three others 
on the drawing board, while 
Tim Battle, a veteran low-en- 
ergy campaigner with engi- 
neers Rybka Smith Ginsler and 
Battle, is also hoping to spread 
his efforts beyond this develop- 
ment He is advising the Pru- 
dential on plans for 250.000 sq 
it of offices on the site of For- 
bury House. Reading, an obso- 
lete Sixties building. This 
could involve energy-saving 
construction such as minimis- 
ing solar gain, as well as 
“appropriate" air conditioning. 

It is also significant that 
both are city-centre sites, says 
Mr Battle, destroying the myth 
that such developments are 
restricted to green fields. 

Norwich Union may also try 
these new ideas on a proposed 
office block in City Square, 
Leeds, although chilled ceil- 
ings could be more appropriate 
for this site. 

No amount of success is 
likely to see central London, 
the powerhouse of office build- 
ing. swept up in such changes, 
however. Rents are much 
lower in places such as Croy- 


don and Leeds, so running 
costs play a bigger role and are 
more Important to tenants. "If 
we took this to the City or 
West End. it is much less likely 
to be accepted,” says Mr De Jaf- 
ield. 

But success in Croydon 
would be a significant break 
with the stultifying “institu- 
tional standard” blamed for 
blanket provision of full air 
conditioning in so many office 
buildings. Letting agents will 
take immediate interest and 
give way to engineers' pleas 
for systems which suit individ- 
ual needs. 

“We are teetering on the 
edge of change,” says Mr Dick- 
son. "Developers know they 
must provide cheaper build- 
ings. Employers realise that 
essential staff will not be 
retained by flashy gimmicks 
and gold-plated taps.” That 
means a combination of econ- 
omy and comfort -all within 
increasingly stringent regula- 
tions. 

Air conditioning is not going 
to disappear, despite the 
wishes of dedicated conserva- 
tionists. But it will be brought 
under control Perhaps this is a 
good time to change the name 
to comfort-cooling after all, if 
only to get away from the idea 
that buildings either have air 
conditioning or don't. Far more 
effort will now go into appro- 
priate systems selected from a 
wide spectrum of services 
honed to greater efficiency. 


David Lawson on the systems needed to run a commercial building 

Working and living inside the machine 


L e Corbusier described the house as a 
machine for living in. but the meta- 
phor becomes a literal truth when 
applied to commercial b uilding s. They con- 
tain a network of systems as complex and 
interdependent as any production line. 

Most are well hidden, particularly in 
sleek modem buildings. But you only have 
to glimpse the “inside out" profile of the 
Lloyd's Building in the City of London to 
see some of what normally lies under the 
skin. Even this jumble of pipes and ducts 
only tells part of the story. 

A better guide comes every year in the 
landlord's service bill Electricity, security, 
heating, cleaning, water and lifts suddenly 
become highly visible. A company which 
took great pains to knock £1 a sq it off its 
rent on a building finds that the heating 
and air-conditioning maintenance alone 
has more than outweighed that saving. 

In fact, the average service charge for 
air-conditioned buildings is running at 
more than £6 a sq ft, according to the 
annual analysis just produced by property 
consultants Jones Lang Wootton. Nor- 
mally ventilated ones cost about £2 a sq ft 
less. That may represent only a fraction of 
overall costs, particularly in high, rent and 
salary areas such as south-east England. 
But it represents an area for savings to 
occupiers who have struggled through 


recession and still face tough competition. 

One cause for concern is the feet that 
charges have risen between 6.8 and 7.4 per 
cent in the past year, according to JLW. 
Increases look even more sho cking over 10 
years: since 1983 charges have soared 
almost 80 per cent for air-conditioned 
buildings and nearly 100 per cent for oth- 
ers. But much of this can be attributed to 
more arduous demands from occupiers. 
Ignorance is fading as businesses employ 
more experts and grow to understand the 
impact of services on output Manufactur- 
ers have always known that productivity 
varies with comfort Today's office facto- 
ries are no different. 

One of the biggest advances in building 
services over the past 20 years has been in 
the air that occupiers breathe. “S tandar ds 
have doubled”, says John Miller, technical 
services manager for JLW. New city-centre 
blocks are sealed from the pollution and 
noise outside. Each now has a carefully 
balanced interior environment where the 


temperature and air quality is in the 
hands of 8 machine 

A constant battle goes on between sup- 
pliers of different kinds of systems. Chilled 
ceilings, for instance, are currently touted 
as a cheaper alternative to the variable air 
volume (VAV) methods which became 
almost standard in the property boom. 

There are always fashions," says Ken- 
neth Dale, president of REHVA, the Euro- 
pean Heating & Air Conditioning Associ- 
ations. He po ints out that- phillpd ceilings 
were being used more than 40 years ago 
and are common in continental Europe. 

But the biggest battle is over whether to 
use any kind of air conditioning at all - an 
issue which is dealt with in more detail 
elsewhere in this survey. Energy-guzzling 
systems appear to be doomed as govern- 
ments seek to control carbon dioxide emis- 
sions, and most technical advances are 
now taking place in making artificial ven- 
tilation more efficient and healthy . 

The other big change in service systems 


over the past 20 years has been in the 
technology. Office b uilding s in particular 
have been dragged into the electronic age. 
Almost every building today is laced with 
miles of cabling carrying power and infor- 
mation to desktop computers, printers, 
faxes, photocopiers and modems. 

T his h q$ fundamentally changed con- 
struction methods. New buildings 
have deep floor voids to accommo- 
date the cabling and hollow ceilings for 
the heavy-duty ducting necessary to draw 
off heat from the electronics. Older build- 
ings are probed to find existing gaps for 
the services - or written off as obsolete. 

There was also a physical change as 
information storage moved from the filing 
cabinet to the computer disc,” says Gra- 
ham Love, head of project consultancy at 
JLW. In simplistic terms, that meant a 
move from concentrating on how much 
weight each square foot of floor will sup- 
port to how much power it can provide. 


This aspect has developed into another 
battia Older buildings were under-pow- 
ered: new ones are over-powered. “Ten 
years ago they could handle around 5 
watts per sqare metre but this soared to as 
much as 40W in the boom,” says JLW 
development management partner Paul 
Boden. 

But today’s normal user requires only 
L5W-20W, and these blocks look embar- 
rassingly overblown at a time when ener- 
gy-saving is a priority. The British Council 
for Offices has brought out guidelines far 
below this peak. 

The industry clearly went too far- an 
accusation commonly heard from building 
service engineers who feel they are rarely 
brought into the construction process 
early enough to point out such errors. 

Over-powered buildings exist because 
agents said this was what the occupiers 
demanded. “But they were forecasting 
straight-line growth in power demands 
without taking into account that the tech- 


nology would become more efficient," says 
Peter Marks who as head of property man- 
agement services at JLW now has the task 
of explaining big bills to occupiers. 

Other “advances” in building services 
are less controversial New technology has 
been harnessed to management, making 
control of various systems more efficient 
Even the most modest warehouse can be 
fitted at a reasonable cost with computers 
which automate control of ventilation, 
temperature, access and safety. 

The drive for energy efficiency started in 
the early Seventies with oil price increases 
but has continued to make ground 
through advances in areas such as boiler 
technology. Fire engineering has moved 
forward to cope with new demands such 
as enclosed shopping centres, the chim- 
ney-like properties of office atriums, and a 
host of new health and safety regulations 
- particularly from the European Commis- 
sion. 

The closest many occupiers get to per- 
ception of the machine around them is 
when they stray into the building manag- 
er's screen-clad hideaway after getting out 
of the lift on tiie wrong floor. But if the lift 
itself breaks down, they realise how 
dependent they are on this technology. 

Making it work is a science. Malting it 
pay appears to be an art. 


While you’re racking your brains to 
find ways of cutting small expenses 
and your financial director is doing 
his best to spend even less, 



we could be proving how our Building Services 
protect your investment, keep your premises 
operating at maximum efficiency, and slash your 
energy costs and emissions. Making everyone 
happy, not only the financial director but your 
tenants as well. 


Landis & Gyr Building Control is a wortd leader in monitoring and control 
ot technical installations in buildings. By partnering with customers, we 
deliver services, systems and devices tor energy efficiency and building 
performance. We support our customers to achieve their business 
objectives by better serving the needs of endusers for economy, comfort 
safety and security. 

Landis & Gyr Building Control Carp. (HQ), Grafenauweg 10, CH-6301 Zuq 
Phone +41 -42 24 56 48. Fax +4 1 -42 24 56 1 8. 


iUMDIS&GYBl 


>« 


FINANCIAL TIMES 


MONDAY OCTOBER 3 1994 


MANAGEMENT 


T he chief executive in 
charge of the most prof- 
itable parts of Europe's 
13th largest company 
has recently been exiled 
to a simple comer desk in a noisy, 
computer-crammed, open plan office 
in Solihull near Birmingham. His 
coffee comes in a flimsy plastic cup 
but only when he takes the time to 
go to the dispenser. When sitting at 
his desk his every word can be over- 
heard by nearby workers. 

Visitors seeing his plight could 
easily mistake him for the classic 
victim of a boardroom coup, sent 
packing from his serene riverside 
suite in London to a provincial out- 
post 

But Harry Moulson, managing 
director of TransCo, the pipeline 
and gas storage company at the 
heart of British Gas, is merely mak- 
ing a statement about cultural 
change at a company in the midst 
of a restructuring and re-orientation 
exercise of a scale and complexity 
rarely attempted. 

Three years ago British Gas was a 
stable, some would say stuffy, 
monopoly utility steeped in a public 
service ethos. 

Today, after a series of govern- 
ment reviews and bruising battles 
with its regulator and would-be 
rivals, the chill winds of market 
competition are increasingly being 
felt In particular, British Gas faces 
upheaval in its main domestic busi- 
ness and the prospect of a sharp 
drop in market share once competi- 
tion is phased in, beginning in 1996. 

The scale of the management 
challenge is formidable - “unlike 
anything ever attempted by a big 
multinational oil company," accord- 
ing to one industry observer close 
to the company. On top of a radical 
corporate restructuring - in which 
it will shed its integrated status, 
along with 25,000 jobs, a full third of 
its staff - the company is trying to 
secure a premier position in the rap- 
idly evolving but intensely competi- 
tive international gas industry. 

As Richard Giordano, its new 
American chairman and Cedric 
Brown, chief executive, emphasised 
last Thursday, however, a new 
structure and strategy are worth 
little unless there is a wholesale 
change in corporate culture. 

For most of its history British Gas 
has been a deeply inward-looking, 
strongly hierarchical organisation, 
with as many as "13 management 
and supervisory levels between, the 
chief executive and the guy who 
dug holes in the streets”, according 
to Moulson, whose unit includes 
£19bn worth of gas pipeline and 
storage assets. 

The hierarchical structure was 
built around semi-autonomous "gas 
generals”, who ruled the 12 regions 
into which the UK business was 
divided. Many of the generals' lofty 
comer offices and private dining 
rooms at the old regional headquar- 
ters now stand vacant, their occu- 
pants having fallen victim to the 
decision last March to disband the 
regional structure in favour of five 
national business units. 

But have the bureaucratic, anti- 
competitive attitudes ascribed to 
the “old guard" withered with their 
passing? 

Many of British Gas’s competitors 
remain sceptical At least that is the 
message conveyed in their public 
statements aimed at the politicians 
who have yet to decide whether to 
put forward the legislation needed 
to turn the government's commit- 
ment to competition into a reality. 


Robert Corzine 

examines the 
dawning of a 
new age at 
British Gas as it 
faces upheaval 
in its main 
domestic 
business and 
the prospect of 
a sharp drop in 
market share 
once 

competition is 
phased in, 
in 1996 




; I... v. 














HEW i. tilt PIPELINE..? 


Fuel for a more 
fiery future 


Others who deal closely with the 
company, including Clare Spottis- 
woode, director general of Ofgas, 
the company's regulator, insist that 
there has been a cultural change, at 
least at the highest levels. 

She notes that senior executives 
in charge of the various business 
units often assume conflicting posi- 
tions in negotiations with Ofgas, 
with, for example, the trading side 
of British Gas lining up against 
TransCo executives. 

Spottiswoode, who believes cul- 
tural change at British Gas is a 
prerequisite to the effective intro- 
duction of competition in the 
domestic gas market, wonders, how- 
ever, whether the competitive spirit 
is being embraced further down the 
ranks. 

Senior British Gas executives 
share her concern. One recently 
commented that “middle ranking 
managers are scared to death” of 
the changes taking place. That is 
not surprising, given the fact that 
all employees are having to re-apply 
for their jobs as part of the restruct- 
uring. 

But leading the rank-and-file to 
the new competitive world also flies 
in the face of the company's his- 
tory. 

“Employee empowerment” is 
hard to sell to a workforce which 
“has spent the last 30 years in a 


co mman d and control environ- 
ment," admi ts Mmilsnn. 

That style of management can be 
traced to Sir Denis Rooke, the 
strong-willed chairman who served 
from 1976 until he stepped down in 
favour of Bob Evans in 1989. 

His tenure was marked by sub- 
stantial technical anti engineering 
achievements, not least of which 
was the $lbn (£67Qm) conversion of 
19m households from manufa ctured 
coal gas to natural gas. At the time 
be described the programme as 
“perhaps the greatest peacetime 
operation in this nation’s history”. 
Sir Denis also helped to dispel pub- 
lic doubts about the reliability and 
safety of gas as a fuel by emphasis- 
ing a “belt and braces” approach to 
business. 


S uch an attitude befits a 
company in which serious 
failures can literally blow 
up in management’s face. 
But it also fostered a 
bureaucratic mentality and an aver- 
sion to risk-taking. 

“To avoid risks, you put in lots of 
traps," says Moulson. He cites as an 
example the long paper trail that 
until recently accompanied even 
the most routine requests to author- 
ise work on gas connections to com- 
mercial and industrial customers. 
“There were 28 handover points for 


the request, which took an average 
of 27 days to process.” 

That process has since been cut 
to six handover points within five 
days. But other examples of the 
“belt and braces" approach persist 
A case in point is the Central Area 
Transmission System gas terminal 
on Teeside, where the first new con- 
nection to the high-pressure 
national gas transmission system in 
10 years is to be built In the initial 
talks with the terminals operators 
British Gas said it wanted to station 
a 10-person team in a separate 
b uildin g on the site to oversee the 
connector. When questioned as to 
why it needed such extensive facili- 
ties, British Gas simply said that 
was the way it had always been 
done. 

Steady persuasion by its partners 
eventually resulted in the company 
acknowledging that the job could be 
done by one person sharing an 
nfFirp in the existing administration 
building. Breaking down such 
entrenched attitudes is a priority 
for the heads of the business units. 

Moulson’s decision to give up the 
private office and dining room may 
be a largely symbolic gesture, but it 
sends a message that the old barri- 
ers to communication between 
senior executives and their staff 
have come down. 

"British Gas executives have tra- 


market share and from shortcom- 
ings in a technical system which 
have now largely been overcome. 

They also claim that the new 
commercial culture at Solihull has 
eradicated the doubts and suspi- 
cions of all but a handful of the 
independents. They concede, how- 
ever, that many independents are 
less sure that the anti-competitive 
attitudes have changed at the dis- 
trict level. 

The transition from a cosy 
monopoly to the competitive mar- 
ket may be even more wrenching 
for the 8,000 or so staff employed by 
Public Gas Supply, the Staines- 
based business unit which will have 
to compete head-on with the inde- 
pendent gas marketing companies 
when the domestic market of 18m 
households is liberalised later this 
decade. 


M ike Alexander, the 
PGS chief execu- 
tive, is also cutting 
out many layers of 
management. But 
unlike his counterpart at TransCo. 
whose workforce will remain rela- 
tively stable. Alexander will have to 
slash personnel numbers in order to 
come anywhere near to being com- 
petitive with the independents. 

The need to cultivate a more com- 
mercial approach among PGS staff 
is if anything more urgent, given 
the fierce competition expected 
from would-be rivals. 

In addition PGS, whose main 
function is to handle routine cus- 
tomer accounts and complaints 
about their bills, is unlikely to find 
stability at the end of the restruct- 
uring exercise. 

Anne Hemmingway. head of the 
Southampton-based Southern divi- 
sion, says employees often tell her 
what a relief it will be when the 
current round of uncertainty over 
jobs and structural changes is 
behind them. 

Her answer, she says, is always 
the same. “What makes you think 
its going to to settle down?” 

Senior PGS executives concede 
that instilling commercial attitudes 
in people who freely admit that 
they joined British Gas for a quiet, 
orderly office life and job security 
will not be easy. 

“Our task is to get people buzz- 
ing,” says Hemmingway. That 
“buzz" is evident among the first 
supervisors in Southampton chosen 
to undergo a course that will help 
them to “allay the fears and stop 
the panic" among their more junior 
colleagues. 

In recent weeks they have spent 
most of their time in a room plas- 
tered with posters extolling the vir- 
tues of customer care and employee 
empowerment. They acknowledge 
that it may be a problem to per- 
suade many junior staff to take 
responsibility for even simple tasks, 
let alone convincing them to take 
advantage of customer contacts as a 
possible “selling opportunity”. 

They also agree that many of 
their middle-ranking management 
colleagues may not make the transi- 
tion from supervisory roles to one 
in which the emphasis is on “coach- 
ing, counselling and assessing". 

It will be some months before 
executives know if the change in 
attitudes which such wards imply 
will take hold. There is little doubt, 
however, that British Gas has at 
least begun the “complete and radi- 
cal transformation" of the culture 
which Cedric Brown last week iden- 
tified as a key to future success. 


ditionally not been very good at lis- 
tening." notes Moulson. “They were 
much better at telling. ” 

TransCo is well on its way to 
reducing the 13 management levels 
to just five or six. But not all of 
Moulson ’s attempts to break down 
internal barriers have succeeded. 
Many manual workers react to talk 
of “empowerment” with suspicion, 
even though Moulson tries to reas- 
sure them that it means nothing 
more than “having a go and trying 
different things”. 

Many senior managers can also 
be uncomfortable with the more 
open style. “All too often you ask 
someone what he thinks of an issue 
and the response is: T can give yon 
a paper on that’," bemoans Moul- 
son. 

The emphasis on “openness” 
extends to TransCo’s dealings with 
its customers, which include the 
trading divisions of British Gas as 
well as the 30 or so independent gas 
marketers. Last year many of the 
independents accused TransCo of 
deliberately hindering their 
operations in the industrial and 
co mmer cial gas markets now open 
to competition. They believed it was 
part of a campaign to block wider 
competition. 

TransCo executives say those 
problems resulted from the speed at 
which the competitors captured 


Mother knows how to manage best 


I have just been sent some 
research by a pair of US doc- 
tors. both called Rick, and 
both world experts on how to 
cope with difficult people at work. 
As I read through the tactics they 
recommend for procrastinators, bul- 
lies and whiners, I felt an odd sense 
of d6ja vu. 

The account reminded me of 
another book, one which belongs 
not on the management shelves but 
with the books on yoga and child- 
birth. It is a slim volume called Get- 
ting on with Your Children- All the 
management techniques are in it, 
and all are applicable to difficult 
workmates and to easy ones too. 
There are sections on the destruc- 
tive power of criticism, the impor- 
tance of praise, the need to listen, 
and on learning from mistakes. Its 
account of how to make your chil- 
dren independent and responsible 
could be transcribed word for word 
into one of those new books on 
empowerment. 

Admittedly, the analogy is not 
perfect it is not usually appropriate 


to coddle your workmates, nor can 
you confine your colleagues to their 
cots when they become too tire- 
some. Equally yon cannot fire your 
children; or expect them to increase 
your family's revenues. 

Still there are enough parallels to 
suggest that the best managers may 
not be those pinstriped men who 
have had years in the boardroom 
and teen on all the right manage- 
ment courses. They may be mothers 
who have successf ully broug ht up 
large numbers of trying children. 
Anyone who can deal with a manip- 
ulative three-year-old or a two -year- 
old throwing temper tantrums will 
find even the worst varieties of 
wayward behaviour in the office a 
piece of cake. 


For over three decades management 
experts have been preaching ways 
of making meetings more efficient 
Yet so far their advice has not made 
a jot of difference: the average man- 
ager still spends 40 per cent of every 


LUCY 

K E L LA WAY 


day in mppHug s, and stEQ complains 
that most of that is a frustrating 
waste of time. 

Fresh from the US comes a radi- 
cal solution - the "open space” 
meeting. This turns all the old 
advice on its head: instead of stick- 
ing to an agenda, the agenda is dis- 
pensed with altogether. Instead of 
keeping the session short, these 
meetings last at least a day, and 
possibly three. Far from paring 
numbers to the minimum, everyone 
is invited - 700 people would not be 
considered too many at an open 
space gathering. During the meet- 
ing anyone can pin up their ideas 
on a board and those who agree can 


sign up to them. The session may 
then be subdivided into “work- 
shops" so that the ideas can be 
thrashed out in more detail Accord- 
ing to W ikima Consulting, which is 
attempting to import the idea into 
the UK, these meetings encourage 
“unparalleled creativity, motivation 
and commitment”. Apparently they 
allow companies to be rebuilt and 
conflicts to be resolved. 

There are some peculiar manage- 
ment practices about, but this one 
takes the biscuit The Presbyterian 
Church in the US and the World 
Bank are great fans of the open 
space meeting. But then one organi- 
sation has faith, and the other is in 


such a bureaucratic muddle (a for- 
mer employee said in the FT last 
week that board members were 
mushrooms - kept in the dark and 
fed on garbage) that any change is 
likely to be an improvement 


Some time ago I wrote about 
employees’ evenings, strange occa- 
sions at which workers gather with 
their bosses for a question and 
answer session over a drink and a 
few peanuts. Here is an even odder 
concept the customers’ evening. If 
you bank with Lloyds, you may 
have already received an invitation 
to visit the local branch after hours, 
for a glass of wine and the opportu- 
nity to tell them how you feel about 
the new open-plan branch layout 
1 can't think of anything I would 
like less than to spend a precious 
evening visiting my bank to discuss 
whether the lighting is too bright or 
too rtim. Fortunately I am a cus- 
tomer of First Direct so the ques- 
tion of lighting and comportment of 


branch staff does not arise. 

Yet it seems I am in a minority 
with my stand-offish attitude. So far 
Lloyds has held over 1,000 of such 
evenings, making these branch 
booze ups one of the most popular 
nights out across the country. 

The bank says that perfectly nor- 
mal people turn up: all ages, classes 
and colours are represented, not 
just the people who write to news- 
papers in block capitals or in green 
ink. 

Surely all these people cannot be 
motivated by the free drink, nor by 
the desire to see the other side of 
the cashier’s glass screen. It seems 
our banks have a special hold over 
us. Because they have the knack of 
making our lives difficult by mess- 
ing up our affairs and overcharging 
us, only to be unbelievably slow to 
rectify matters, they turn the most 
laid back person into a first rate 
moaner. There is a pleasure to be 
had in complaining to the right per- 
son. so perhaps an invitation to 
make a night of it is not to be 
scoffed at 




/ ^ 



PIONEERS AND 
PROPHETS 

Frederick 

Winslow 

Taylor 

Engineer, inventor, consultant 
and tennis champion, Taylor 
gave bis name to what was 
probably the first true 
international management 
movement 

Many of the Philadelphia 
Quaker’s ideas on productivity 
and the organisation of work 
have been discredited since his 
death in 1917. Bnt the influence 
of Taylorism can stiff be felt In 
modern management theories, 
not least the currently 
fashionable business process 
re-engineering. 

Taylor was obsessed by 
efficiency and measurement and 
set out to prove scientifically 
that a machinist, for example, 
could produce a specific 
quantity of output in a given 
time. At Midvale Steel Works - 
where he became chief engineer 
in the 1880s - the jobs of 
foremen were redefined and a 
set of clear procedures 
established for certain jobs. Stop 
watches were distributed to the 
foremen as Taylor attempted to 
break down the work into its 
component parts (an essential 
feature of latter day BPR). 

In Principles of Scientific 
Management U9U) - a book 
based largely on his experiences 
at Midvale and later at 
Bethlehem Steel and the most 
quoted source of his ideas - 
Taylor argued that scientific 
methods should replace the old 
role of thumb ways in which 
workers operated; that workers 
should be scientifically selected 
to be “first class" at a particular 
task; and that work should be 
equally divided between 
workers and management. 

Taylor was also one of the 
first to develop the idea of 
payment by results, introducing 
. differential piece rates and 
achieving significant cost 
reductions in the process. As 
John Mapes, senior lecturer in 
Operations Management at 
Cranfiekt School of 
Management, points out, 
however, this part of the legacy 
is less appreciated today. 

“Taylor put the emphasis on . 
output rather than quality.” 

• Taylor’s “top down" thinking 
and tendency to think of 
employees mainly as pairs of . 
hands are also out of favour. He 
was never flavour of the month, 
with the trade unions, one of 
whose US leaders claimed that 
“no tyrant or slave-driver in the 
ecstasy of his most delirious 
dream ever sought to place upon 
abject slaves a condition more 
repugnant”. Lyndafi Urwick - 
an army officer who read 
Principles in the first world war 
trenches and was Inspired to 
found a movement for scientific 
management - remarked that 
the strength of the union 
movement prevented Taylorism 
from being folly implemented in 
Britain. 

Historians like Peter Drucker 
maintain Taylor started out 
with well-intentioned social 
rather than engineering or 
profit motives, and improving 
workers’ living standards was 
(me of his central aims. 

Taylor’s talents were 
undeniable. He was a prolific 
inventor, taking out over 100 
patents for ideas. He won the US 
tennis doubles championship in 
1881 and succeeded in getting 
the rules of baseball changed by 
proving that over-arm bowling 
' was more effective than 
under-arm. 

This is the first of a new series. 

Tim Dickson 



“So you’re flying KLM 
on the London to 
Amsterdam stretch.” 

“Exactly,” 


The cnenllil loot for the irrixuf in veil or 

Market-Eye 


London stock exchange 



KUv^TRETCH to more room and extra comfort 
ON EUROPEAN BUSINESS CLASS TO AMSTERDAM. 

'it-. I*\,r anJ JciaiU nil him- «» H*> KL\f. Flyins . jf% x 

Pm.hm.in HnMiu'M fimt iwranuni- riii" 081 750 9000. The Reliable Airline KLM 


Finance East Europe reports twice-monthly 

oo investment, finance and banking in the 
emerging market economies of Central and 
Eastern Europe and the European republics of 
the former Soviet Union. 

To receive a FREE sample copy contact: 

Sirai Bonsai. Financial Times Newsletters. Marketing Department. 
Third How. Number One Southwark Bridge. London SE1 9HL, England. 
Tel: (+4471)873 3795 Fax: t+44 711 873 3935 

11* In umbo nxpmrtk .in bthddtn Bt raln-rim vVrtqwti} wrown 

ttradbf IrMfifFMN 


Argus Fundamentals 

"Understand what is driving oil prices’ ■ 

Petroleum Argus 

CALL fer K FREE TRIAL to ’.his Monthly publication -44 71 ) 359 5792 


Signal 


O 1 30+ software applications o 
O RT DATA FROM SIO A DAY O 
O Signal SOFTWARE GUIDE O 
Call London '•?' 44 - (0) 71 231 35SG 
for your guide and Slgnel price list 


FINANCIAL TIMES 
HnfaM 

FTRNiMEreHiirMtULhgKiaofOinrr -mberCor BoJrt UnVnIEI 9HL Erchal 

Ac in —i iil S* WWi VaT fa jnrjttai Np.Gfl 27IU7I -I. 



ECU Futures pic 
29 Cbutam Ptm 
Mvavh 

London SWIX ML 
Tot +71 245 0099 
Fine +71 238 8599 


I 


Ijiy dam tor the monitoring oi targets, ana me lur we uunumig ui whm « b 







14 


FINANCIAL TIMES MONDAY" OCTOBER 3 1994 


BUSINESS TRAVEL 


Heathrow check-in 

Kei bakto 
check-taw 
for busfneM 



wrffl be 
introduced 
by British Midland, the 


scheduled carrier, at 
Lcndc n ’e Heathrow airport 
today. Bushen 
paasangan for domestic 
or international flights wSI 
be able to check-fat at a 
desk outride Terminal 1 

and go straight to the 
gate. Safes and marketing 
(BrecturAlwc Grant says 
that business passengers 
can avoid the dwekrln 
area altogether. 


Indonesian Are 

A dangerous haze from thick 
smoke caused lay Indonesian 
forest Bras has been btamed for 
at least one co Bis ion between 
ships in the seas between . 
Indonesia and Singapore. Air 
transport to Kaimantan has 
been paralysed by the smoke 
since early last week wh3e 
flights to Indonesia's industrial 
island of Baton, near 
Singapore, have been rfsrupted. 
Malaysia's infor ma tion minister 
arid at the weekend that 
Malaysia was prepared to help 
Indonesia control the forest fires 
in Sumatra and Kalimantan. 
Pollution from' the haze has 
reached a hazardous level in 
Kuala Lumpur, the worst-hit 
area, officials said. 


Iran’s currency woes - 

trails Interior ministry has : 
ordered private foreign . . 
exchange dea l er* to atop • 
conducting burinooe or 
have their money 
confiscated, the official 
Islamic Repubflc News 
Agency reported Sunday. 
The ndidstnr arid it was 
acting because of repeated 
. com pl a ints about 
• p r of i teeri ng middlemen 
illegally” Issuing counterfeit 
money art unofficial 
exchanges. The central 
bank said official exchange 
centers will be set up 
across the country to sell 
fo reign currency to 
travellers. 


Thai flood alert 

’ Local authorities 

! in Thailand's 
! capital Bangkok 
have issued a 
flood warning 
for October 
6-11, when a combination of 
heavy rainfall and high tides in 
the Gidf of ThaBand ootid cause 
the Qiao Phraya river to 
overflow. 

Six months ago Bangkok was 
threatened by a severe water 
shortage, but exceptionally 
heavy monsoon rains have more 
that remeaBed the drought. 

Ftoocfing caused by heavy 
rain sometimes brings 
Bangkok's already slow- moving 
traffic to a-cbmpfete stop for 
hours at a time. 



Italian monument 

fom 12*000 ftafEans 
waited for hours In pouring 
rain yesterday far a rare 
chance to visit the Qtdrfnal 
Palace, the hUPtop 
resid e n ce of popes, kings 
and - these days - 
presidents. 

President Oscar Luigi 
Scatfaro’s daughter, 
Marianna, led the tours. 

The 16th century palace 
atop one of Rome's seven 
MBs was only rarefy open to 
the public, but now tours 
will be given for three hours 
every Sunday morning. 

The QuirinaJ has served 
as home to three popes, 
four kings and, since 1047, 
nine presidents who are 
head of state. 


| London to Syria 

The UK's minister of state at the 
Foreign Office, Douglas Hogg, 
arrived in Damascus yesterday 
fora three-day visit. 

He has already visited Syria 
twice since London and 
Damascus resumed relations in 
1990 and British officials said 
the aim of this visit was "to 
keep up the relationship". 

Mr Hogg wffl have tafcs with 
his Syrian counterpart, Mr 
Nasser Qaddour, and possibly 
with other ministers, especially 
those responsible for the 
economy. 

The UK would Ho to expand 
its business relationship with 
Syria but British companies face 
stiff competition from Italian, 
German and Japanese rivals. 


Likely weather in the leading business centres 



Mon 

Tue 

Wed 


Thur 

Fri 


Tokyo 


23 

Zb 

4 

26 

Zb 

m 

22 

Zb 

23 

Kong Kong 

&>» 


Zb 

29 

Zb 

31 

Zb 

30 

London V 


-Iky. 

z> 

12 

Zb 

15 ‘ 

Zb 

IS 

Frankfurt 


^>10 

Zb 

9 

Zb 

11 

Zb 

12 

Ne*(YefK - 

ifeyis 

% « 

■Zb 

18 

Z> 

13 

Zb 

13 

L Angeles 

<£*> 22 


Zb 

21 

Zb 

23 

Zb 

21 

man. 

< 3 >“ 


Zb 

23 

&> 

24 

4> 

23 

Paris 

S 16 

kS 12 

Zb 

13 

& 

14 

Zb 

13 

Zurich 


-fen. 

w 

9 

Zb 

10 


10 


Maxfmum twnp*rarurw In CflMua 

Information cupMM by Metao Consult of tha Hathwbnda 


Charles Batchelor on the competitive challenges for Eurotunnel as it launches its shuttle service today 


Watch out, the drive 
ahead could be rough 



AlNcy AaiMood 

Signs of the times: motorists at the Calais entrance to Eurotunnel's Channel shuttle service, which opens today 


More Choice in 
ex-Soviet states 


E urotunnel, the Channel 
tunnel operating company, 
will today begin carrying 
car passengers through the 
C hann el tunnel on its specially-de- 
signed shuttle tr ains - nearly 18 
months behind schedule. 

The passenger car shuttles are 
the most important element in 
Eurotunnel's strategy to wrest dom- 
inance of the cross-Channel market 
away from ferries. The company 
confidently predicts that it will be 
transporting at least half of all 
accompanied car journeys by the 
end of 1998. 

But Eurotunnel's ambitions do 
not end there. While interest to date 
in car shuttles has focused on their 
impact on tourist travel, Euro- 
tunnel commercial director Mr 
Christopher Garnett has also set his 
sights on winning a share of thp 
potentially lucrative business mar- 
ket. 

Traditionally, businessmen have 
only taken a car across the Channel 
if they had sales samples or equip- 
ment to carry. But improvements to 
the continental motorway network 
have encouraged many executives 
to use their cars for more general 
business traveL 

Eurotunnel estimates that about 
10 per cent of cross-Channel jour- 
neys are made for business-related 
purposes, mostly by hovercraft. 
Both the hovercraft and the Euro- 
tunnel shuttle service are twice as 
fast as a ferry crossing. Mr Garnett 
believes that most executives who 
put a premium on speed will switch 
to the more comfortable shuttle 
ride. Business customers could 
account for 15-20 per cent of all 
shuttle travellers, he says. 

For the first six weeks of the new 
service, travel through the tunnel 
will be by invitation only. Euro- 


tunnel hopes to cany 60,000 passen- 
gers chosen from among Its share- 
holders - selected by ballot - and 
from the ranks of its bankers, MPs, 
MEPs and the travel trade. The 
company hopes to win over sceptics 
by impressing these opinion-for- 
mers before it launches its “turn-up- 
and-go” service in November. 

For the business traveller making 


a last-minute Journey, Eurotunnel’s 
“no-booking service” will be a par- 
ticular appeal. The frequency of the 
shuttle departures - four an hour 
once the service reaches full capac- 
ity sometime next year - should 
ensure few delays. 

The actual journey for the motor- 
ist will be spent to a brightly-lit, 
air-conditioned metal tube, as 


guests found out on a special shut- 
tle launch trip last Friday. The 
motorist drives down the length of 
the train, and when all vehicles 
have been accommodated, fire-proof 
shutters descend from the ceiling: 
These shutters isolate the carriages, 
each of which has two decks with 
room for five cars. Passengers can 
still move from carriage to carriage, 


however, through doors alongside 
the shutters. Toilets are located In 
every third carriage. 

Unlike truck drivers, who may 
leave their cabs for a meal to a 
separate carriage, car drivers must 
remain with their vehicles. There is 
little for the traveller to do during 
the 35-minute journey except read. 

The journey through the tunnel is 
smooth, even at top train speeds of 
SOmph. The small carriage windows 
- there is, after all, nothing to see 
during the underground part of the 
journey - combined with the com- 
fortable ride mean that travellers 
may not notice when the train actu- 
ally dips into the tunnel. 

The cost of the journey will not 
be disclosed until November when 
Eurotunnel launches its "turn-up- 
and-go" service, though the com- 
pany does concede it is likely to be 
comparable with the cost of a ferry 
crossing. 

Ferry tariffs have stabilised 
recently after a bout of price-cutting 
to the spring and early summer, but 
ferry companies will be watching 
Eurotunnel closely to match its spe- 
cial offers. Both sides are keen to 
avoid a price war however, with 
Eurotunnel injecting considerable 
new capacity into the cross-channel 
market, the competitors will be 
eager to grab market share. 

Although the ferries have most to 
fear from the launch of the shuttle, 
it is airlines which will initially be 
hit by the launch of fast Intercity 
Eurostar services between London, 
Paris and Brussels. The railways of 
the three countries which will oper- 
ate this service have yet to 
announce a starting date but it is 
expected to be no later than Novem- 
ber. Demand for seats on the Euros- 
tar trains are expected to outstrip 
that for the shuttles. 


One hotel group with far-ranging 
plans In Russia and elsewhere to 
the Commonwealth of Independent 
States Is the US-based Choice 
Hotels International. Alain Ammar, 
its managing director to Europe, 
says that the CIS offers “great 
potential" for western hotel 
groups, because of a lack of inter- 
national two-, three- and four- 
star properties, writes Michael 
Thompson-NoeL 

However, the group's first Rus- 
sian property will be a 272-unit, 
five-star, city-centre hotel in the 
PetTogradskaya district of St 
Petersburg, close to the Hermitage 
museum , which will be marketed 
primarily to international business 
travellers. 

The former Inter Hotel Petrograd 
is receiving a $60m facelift, due to 
be completed by next autumn. It 
will reopen as the Clarion North 
Crown, complete with 10 suites, 
two-room apartments, a business 
centre, conference hall, nightclub 
and shopping malL Room rates will 
be $2504280 a night 

Choice Hotels International is a 
wholly-owned subsidiary of Manor 
Care, the US healthcare group, and 
describes itself as the world's larg- 
est international hotel franchise 
business. It has 3,265 properties 
open or being developed to 34 coun- 
tries, which it markets under seven 
brands. Four brands are used inter- 
nationally: Clarion, Quality, Com- 
fort and Sleep Inn. The other three 
- Econo Lodge. Rodeway and 
Friendship Inn - are used only in 
the US and Canada. 

Four months ago. Choice signed 


an agreement with Contract Rus- 
sia, a leading hotel development 
arid management company in the 
CIS. The agreement covers 15 CIS 
countries and envisages the devel- 
opment of 25 hotels under the 
Choice umbrella by the cud of 1998, 
and about 70 within 10 years. Its 
main target is the two- and three- 
star segment 

Properties will be developed via a 
mix of conversions and new build- 
ing, concentrating initially on Rus- 
sia, Belarus and Ukraine. The early 
priorities are St Petersburg, 
Moscow and Minsk. After that, says 
Choice, will come Novosibirsk, a 
Siberian city, and Kazakhstan, the 
oil-and-mineral-rich republic whose 
capital. Alma-Ata. already attracts 
business visitors. 

Choice says that so far this year 
it has opened 35 hotels in seven 
western European countries, 
including Spain, a new market and 
has 58 more under development to 
Britain, France. Germany. Norway 
and Portugal. As of last week it 
had 250 hotels open or being read- 
ied in 10 European countries. 

Contract Russia, based in 
Moscow, is a subsidiary of Contract 
Mullcrsafe Industrie, a Russian 
financial holding company with 
interests in engineering, construc- 
tion, industrial equipment, sales 
and distribution, and hotel develop* 
meat and management 

St Petersburg, which is expected 
to attract 3.5m visitors next year, 
has about 30,000 hotel beds. But 
fewer than 3,000 of the city's hotel 
rooms, says Choice, are up to inter- 
national standard. 



It' 

rainforests arc 
being destroyed at 
die rate of thousands 

trees a minute, how can planting •»« %% 
just a handful of seedlings make a difference? 

A WWF - World Wide Fund For Nature tree 
nursery addresses some of the problems lacing people 
that can force them to chop down trees. 

Where hunger or poverty is the underlying cause 
of deforestation, we eau provide fruit trees. 

The villagers of Muguiiga, Zaire, for example, eat 
papaya and mangoes from WWF trees. And rather than 
having to sell timber to buy other food, they eau now 
sell the surplus fruit their nursery produces. 

Where trees arc chopped down for firewood. 
WWF and the local people can protect them by planting 
last- growing varieties to form a renewable foci source. 

This is particularly valuable in the Impenetrable 
Forest, Uganda, where indigenous hardwoods rake 
wo hundred years to mature. The Markhemia lotea 
trees planted by WWF and local villages can be 
harvested within five or six years of planting. 

Where trees are chopped down to be used for 
construction, as in Panama and Pakistan, we supply 
other species that arc fast-growing and easily replaced. 

These tree nurseries arc just part of the work we 
do with die people of the cropical forests. 

WWF sponsors students from developing countries 
on an agroforestry course at UPAZ University in 
Costa Rica, where WWF provides technical advice on 
growing vegetable and grain crops. 


' Unless 
help is given, 
is exhausted 
very quickly by “slash 
and bum" farming methods. 
New tracts of tropical forest would then have 
to be cleared every two or three years. 

This unnecessary destruction can be prevented by 
combining modern techniques with traditional 
practices so that the same plot of land can be used to 
produce crops over and over again. 

In La Planada, Colombia, our experimental form 
demonstrates how these techniques can be used to 
grow a family’s food on a small four hectare plot. 
(Instead of clearing the usual ten hectares of forest.) 

WWF fieldworkets arc now involved in over 100 
tropica! forest projects in 45 countries around the world. 

The idea behind all of this work is that the use of 
natural resources should be sustainable. 

WWF is calling for the rate of deforestation in the 
tropics to be halved by 1995, and for there to be no 
net deforestation by the end of the century. 

Write to the Membership Officer at the address 
below to find out how you can help us ensure chat 
this generation does not continue to steal nature’s 
capital from the next, ft could be with a donation, 
or, appropriately enough, a legacy. 


Hu 


WWF Worfd Wide Fund For Nature 

(formerly Varid WibDifr Fund] 

International Secretariat, 1196 Gland, Switzerland. 


FOR THE SAKE OF THE CHILDREN 

WE GAVE THEM A NURSERY. 


tMcw lor ,1, 01*1, j rtw nWa a Urn* 
put - w a cm wacMcmi poeft'o m * 1 


Ut Boar 
IWW 
•ana 
0030 
0100 
0730 
<3200 
<JZ» 
0300 
0330 
0400 
0430 
0500 
0330 
0600 
0630 

onto 

0730 

0000 

0830 

0900 

0830 

1000 

1030 

1100 

1130 

1200 

1230 

1300 

1330 

1400 

1430 

1900 

1530 

1600 

1630 

1700 

1730 

1800 

1630 

1900 

1930 

zooq 

2030 

2100 

2130 

2200 

2230 

2300 

2330 

2400 


« EngUMar 
loinfaMti 

w 

DUdOM 

on 

WMWl 

10.TQ 

9.54 

9.55 
XS8 

I IJS 
958 
9-5S 
9-54 
9.54 
954 

9.53 
953 
354 

9.54 

054 

raw 

1123 
1253 
1X10 
1099 
1651 
1030 
2100 
30.IT 
90.02 
3052 
3052 
2159 
1456 
1020 
9.69 
950 
a 08 
1650 
1458 
1X30 
1557 
3153 
4050 
4050 
3156 
3159 
19.17 
1017 
165S 
1049 
12.14 

055 


i «*» 

FrJ Pnca hrTadka 

■ MU 


Pod 

PuKMM 

P™ 

e/Mwn 

10.50 

057 

096 

955 

055 

955 

955 

055 

955 

959 

954 

954 

955 
*55 
954 
060 

1050 

II. 79 
1251 
1452 
1075 

16.75 
2006 
2000 
26.00 
2000 
17.64 
1754 
14.16 

12.75 

iaso 

1050 

12-75 

12.76 
1356 
14.07 
1457 
1356 
1356 
2156 
2X68 
2358 
21.46 
21 M 
21.18 
1454 

IJ. 44 
1050 


Poa 

■tfna 

erteo 
CMWi 
1050 
957 
956 
955 
9. 55 
055 
955 
955 
955 
OSS 

954 
054 

955 
955 
954 
950 

1050 

1350 

14.42 

1042 

2055 
2065 
22.19 
26.10 
28.10 
2010 
1075 
19l7S 
16X7 
14JS8 
10.80 
1090 
1456 
1458 
1009 
1018 
1018 
1009 
1009 
2XG6 
2596 
2556 

2056 
2356 
2328 
1094 
1655 
1050 






pmcm isrmcMdtir Mama fern* 

ptMpa mttf w mam paeft y «4 
m BtfW DM «4— 

hr 

taangaiBwm 

RM PM Pad 

Whw* puma* |xn>w tdftig 

oonod m P*» B4w 

•ndoa Wtt DV*n own 

0030 954 957 9.57 

01 00 954 957 957 

0130 954 057 9157 

0200 955 057 957 

0230 955 957 057 

0300 955 957 957 

0330 954 9.57 067 

0400 954 957 957 

0430 9.54 957 957 

0500 954 957 057 

0530 850 956 056 

0600 B5l OSS 955 

0630 1020 952 952 

0700 1654 1X12 1652 

0730 1046 16.15 19.85 

0800 IOW 19.18 SIM 

0830 1750 18.69 22.40 

0900 2017 1026 2257 

0330 2033 1929 2X02 

1000 2028 1033 2357 

1030 2030 1036 2X12 

1100 2031 1040 2X18 

1130 2033 2226 2655 

1200 36.12 34.10 3759 

1230 3608 34.06 3755 

1300 36.00 2019 2954 

1330 2016 1039 2352 

1400 17.4Z 1025 2257 

1430 17.41 IS. 00 22.72 

1500 17.40 19.00 2X71 

1530 17.40 1950 22.71 

1600 '7-42 1950 2X71 

1630 18.12 19.02 2X73 

17 DO 3555 1953 2X76 

1730 33 94 3X42 37.13 

1600 3591 1350 2X71 

1630 1751 1656 ZX38 

1900 16.40 18.88 2X38 

1930 3X44 1X18 2756 

2000 3X38 7 X69 2X39 

ana 24.81 3 x 44 3Xm 

2100 1750 3X44 39.14 

2190 1759 3X43 39.13 

Z2«M 17.18 17j4J 21.13 

2230 1X64 1X18 2158 

2300 1X64 1682 2052 

2330 1656 1856 2056 

2400 1040 1X47 17.17 



A Prime Site for your 
Commercial Property 
Advertising 

Advertise your property to 
approx i mate ly 

1 million FT readers in 160 
countries. 

For details: 

Call Emma Mullaly on 
+ 44 71 873 3 574 
or Fax: +44 71 873 3098 


FT 


FINANCIAL TIMES 

Management Repons 


ARE YOU 
INTERESTED IN 

‘the interactive 
revolution’ 

multimedia 
virtual reality 
video-on-demand 


video conferencing 


teletourism? 


...then call 

FT Management Reports 
for your FREE media 
catalogue today, on 

+44 ( 0)71 873 4252 



f. 





















FINANCIAL TIMES MONDAY OCTOBER 3 1994 


■■ ■ r , »»i 1 

9 Ji 

* ^ ° 

S ^V, S3 30 

a O is 

1 *» \ 

4 

V ‘ > v 

1 is, V * 

1 i'--! 

V «• O: * 

J •• 

C-‘> 

i jTs 13 

V. . • V- 


in 

tales 


• Huv 

... “ 

“ 1!1 !V. 

!;, *i» 

■•■■ >l.i j 


S » Ui J 

... . 

: i i w 

*' * r !, :-H m ; . 

- afc* 

• 

! «!a» vj 

1 ,s V1 t ~ 

• •••>•.■ V. i. ,- J( i 

'* 1 '.'Ml ,|t 

• ‘ l - 


....£ 

. : .■ |r , 

• 

; •• «-t 

• •'iri. 


• r-.-r 
■ : * : \ 


Magic market for Microsoft 

B ident of^^r S The world's biggest software company has v «*“? ^ bei f' ,e , u»‘ 

Europe describe w« r, . . , • ■ . * °P , . * *7 didonal PC technology wil 

ambitions in mulE a IIUSSIOIX tO edll taifl y WTlteS AlflTi CailC develop fast enough so that wt 


B ernard Vergnes, pres- 
ident of Microsoft 
Europe, describes his 
ambitions in multi- 
media carefully. Without want- 
ing to appear arrogant, he 
says, he wants to be the lead- 
ing supplier of educational and 
other programmes - some- 
times known as "edutainment" 
- published on CD-Rom. These 
are the building bricks of the 
multimedia revolution. 

Microsoft, the world’s lar ge st 
software company, helped pio- 
neer the genre In 1992 with 
Musical Instruments, a CD-Rom 
ideally suited to demonstrating 
the combination of text, video 
and quality sound which char- 
acterises multimedia presenta- 
tions. 

Today, Musical Instruments 
still impresses but looks dated 
compared with newer offerings 
such as The Magic School Bus, 
a series to be released shortly. 
It is said to be Microsoft presi- 
dent Bill Gates's current 
favourite, and features a yel- 
low US school bus with driver 
and passengers which can be 
shrunk to navigate through 
the digestive system in The 
Human Body or the cosmos tn 
The Solar System. Microsoft's 
best-selling Dinosaurs of 18 
months ago included five mov- 
ing video clips; Dangerous 
Creatures, a new release, has 
more than 100. 

Vergnes, who has worked for 
Microsoft since 1983 and has 
been its European president 
since 1990, believes that the 
domestic market for CD-Rom is 
about to expand rapidly, espe- 


P reparing for the multi- 
media revolution 
sometimes seems like 
putting a bucket out- 
side and waiting for a rain- 
storm to fill it you can vary 
the size and shape of the 
bucket, but you can’t do much 
to encourage the rain. 

The bucket which has just 
been put out by Olivetti, the 
Italian computer group, is 
called Olivetti Telemedia, and 
the parent company is frank 
about its early prospects. 

"We have an idea of the sup- 
ply [of products and services 1, 
but we don't yet know what 
the demand will be like," 
admitted Elserino Piol, Oli- 
vetti’s deputy chairman, at 
Telemedia’s launch two weeks 
ago, although he ventured a 
figure of $3,000bn as the poten- 


cially in Europe. He reckons 
that personal computers 
equipped for multimedia will 
reach the “magic price" this 
Christmas at which substantial 
domestic sales can be expected. 

He defines that price as just 
below Ei.ooo in Britain or 
FFr10,000 in France. For this, 
customers will get a PC built 
around a high-perfor mance 
Intel 486 or “Pentium” chip 
with 16 megabytes of fast mem- 
ory and a 300-megabyte hard 
disc together with a CD-Rom 
player and sound capabilities. 

In Prance, he says, some 25 
per cent of PC sales are now 
through supermarkets. Carre- 
four, the large French chain is 
marketing its own range of five 
models, some of which can 
handle multimedia. 

Microsoft is taking the home 
market seriously. It hag <a)p)i> 
500-600 people, inohirimp educa- 
tionists, psychologists and soft- 
ware specialists, in its con- 
sumer group, and is spending 
just under $100m a year on 
developing new titles. Sales are 
about $30Qm a year. 

In total, Microsoft spends 
about $600m on research and 
development, most of it on soft- 
ware, which brings a much 
greater financial return. “We 
are over-investing for the 
future in these areas,” says 
Vergnes. 

Success in consumer mar- 
kets is critical to Microsoft’s 


plans. Its worldwide sales - 
$4.7bn (£2.97bn) last year - 
comprise desktop applications, 
PC operating systems, word 
processors, spreadsheets and 
database managers. Revenue 
growth last year was 24 per 
cent 

However, Vergnes admits 
that "the traditional PC soft- 
ware market will not grow for- 

A new offering 
features a school bus 
which can be shrunk 
to navigate through 
the digestive system 


ever. One day, probably sooner 
rather than later, most desk- 
tops in developed countries 
will have a PC with a complete 
suite* of business programs". 

The company plans to reach 
sales of $8bn by 1995-96, but 
Vergnes says the extra $3bn 
will not come entirely from 
desktop applications. “Unless 
we makf* at least $lbn from 
consumer products, we shall 
not achieve our target.” 

He is encouraged by research 
showing that each professional 
PC installed leads to purchases 
of - on average - five software 
packages during its life. But up 
to 15 purchases of software a 
year can be expected for 


domestic PCs if the price is 
right The consume: software 
division is turning out three 
new titles a month. 

The competition is not sit- 
ting idle. Microsoft's principal 
competitors. Lotus Develop- 
ment Corporation and Novell 
have their own consumer prod- 
ucts divisions. Recently Novell 
the market Leader in network- 
ing. announced a series of 
home education CD-Roms 
focusing on reading, writing 
and arithmetic. 

Microsoft's ambitions in mul- 
timedia, however, range across 
the board. It is spending about 
$120m a year on software for 
the digital superhighway 
through its advanced con- 
sumer technology research 
group, an elite operation 
headed by chief technologist 
Nathan Myhrvold and report- 
ing directly to Bill Gates. 

Microsoft interprets the high- 
way as an electronic pipeline 
into hnirip ahi» to convey 
an almost limitless stream of 
information. Database comput- 
ers or servers provide the data 
which is unscrambled by a 
black box on top of the televi- 
sion set. Earlier this year 
Myhrvold’s group announced 
“Tiger”: video server software 
which Microsoft says is the 
first phase of a complex, inter- 
active video system. 

It runs on conventional per- 
sonal computers. According to 


Vergnes: “We believe that tra- 
ditional PC technology will 
develop fast enough so that we 
can build these servers from 
inexpensive hardware. We can 
share the processing load 
between the network server 
and the set-top box which, 
after aO, is only a powerful per- 
sonal computer.” 

There is, thus, a close simi- 
larity between Microsoft’s 
model of the information 
superhighways and the mod- 
em data-processing concept of 
client-server computing where 
server computers provide data 
to a network of PCs. 

Microsoft's latest operating 
software, Windows NT, is 
intended to manage client- 
server networks. Indeed. 
Vergnes believes that business 
will be first to find applications 
for the informs tirm superhigh- 
way, with domestic applica- 
tions following later. 

He echoes Bill Gates's com- 
plaints fhaf most multimedia 
trials involve only video-on- 
demand (VOD) - the ability to 
call a video of choice to the TV 
sc rwn While technically com- 
plex, he does not believe that 
VOD is a true test of demand 
for multimedia services. 

In consequence, Microsoft’s 
own trials - to be held with 
the US company TCI in Denver 
and Seattle next year - will be 
sophisticated and involve a 
range of services. Example: 
Vergnes envisages an educa- 
tion forum where teachers 
from a broad range of schools 
and colleges could exchange 
views and experience. 



A monsoon that must not be missed 


tial size of the worldwide infor- 
mation market 

In fact Telemedia is a group- 
ing of the Italian company’s 
printing receptacles for multi - 
media and tplflwi mwnniffatiniHi 

— including a number of small 
international joint ventures 
but excluding the mobile tele- 
phone venture, OnudteL-Pronto 
Italia, in which Olivetti has a 
large stake. 

Those ventures include some 
which have been quietly work- 
ing on multimedia innovations 
for the last few years, and oth- 
ers formed only in the last few 
months. 

Thus the June alliance 


Andrew Hill on the regrouping of Olivetti’s multimedia side 


between Olivetti and Hughes 
Network Systems, a subsidiary 
of General Motors of the US, to 
avpimt the marirat for business 
satellite communications In 
Eungie now comes under the 
Telemedia umbrella 
So does the joint venture 
with Redgate Communications 
of the US. announced in 
March, to produce electronic 
catalogues. But Telemedia will 
also include Seva the data 
services company set up in 
1965, mid the company’s well- 
established R&D operations in 


Pisa and Cambridge, among 
others. 

New operations are being 
added bit by bit Last week, for 
ingfamrp. the Italian company 
formally launched Italia 
Online, in collaboration with 
Italy's b usiness daily H Sole 24 
Ore, to provide personal com- 
puter users with access to 
databanks worldwide. 

Aware of the risks erf devel- 
oping a high technology sys- 
tem while neglecting the soft- 
ware, Olivetti has also taken 
on Grant Perry, a presenter 


with CNN, the cable television 
network, as head of new media 
initiatives to scout out innova- 
tive progr amming for T el erne - 
dia. 

At present, Olivetti describes 
Telemedia as “a virtual com- 
pany” - a network of autono- 
mous ventures with a common 
aim, which can be easily 
adapted to the challenges 
ahead - and for the moment 
Telemedia will make only a 
small virtual profi t for Olivetti. 

In 1994, Telemedia’s compo- 
nents expect to turn over only 


L325bn (£132m), 40 per cent 
overseas, which compares with 
the group's turnover last year 
of L8,612bn. Piol talks in terms 
of an initial investment of 
$50m (£32m) In Telemedia, 
compared with the $2bn which 
Omnitel’s shareholders will 
pump into the cellular tele- 
phone venture over the next 
four years. 

This does not mean that Oli- 
vetti's commitment to the mul- 
timedia sector is half-hearted, 
but the company is still ham- 
strung, according to the com- 


pany, by regulatory obstacles. 
Carlo De Benedetti, Olivetti’s 

chairman and chiaf executive, 

rarely misses an opportunity to 
press publicly for further liber- 
alisation of the telecoms sector 
and development of Europe's 
IT infrastructure, and- Piol 

takas up the gamp thpm p. 

“At the moment there is not 
much scope to invest because 
of the regulatory environ- 
ment,” he said. Deregulation 
manna br eaking up monopolies 
and creating a “pluralistic, 
competitive market for net- 
works and innovative ser- 
vices,” according to Olivetti, 
and focusing regulatory efforts 


on the distribution of scarce 
frequencies and the protection 
of free competition. 

From the point of view of 
income. Telemedia and Omni- 
tel-Pronto Italia are still two 
empty boxes in a group struc- 
ture still dominated by com- 
puter products, systems and 
services. 

But after two to three years 
of drought in the international 
computer market, the Italian 
group knows that it cannot 
afford to miss the forecast 
$3,000bn multimedia and tele- 
coms monsoon. 

As De Benedetti said in his 
report to shareholders earlier 
this year. “Converging infor- 
mation technology and tele- 
communications is the new, 
immense fast lane where Oli- 
vetti intends to operate." 


Onz tic Franco is one of ilic rare nnmrul gas nimpniiicN 


U 

D SN 
•me 


A shiver of excitement 1 

Will the lottery change the face of Britain, asks Colin Amery 


"I strongly believe man cannot 
live by GDP alone ... I would 
like to see everyone in this 
country share in the opportuni- 
ties that were once available 
only to the privileged few." 

Those were not the words of 
Labour leader Tony Blair but 
of p rime minis ter John Major 
when he opened the English 
Heritage conference last 
month. He was not talking 
about a radical re-arrangement 
of government spending plans 
but p inning his hopes on the 
success of Britain’s national 
lottery, starting next month, 
which is expected to produce 
billions in revenue. 

Part of these proceeds win be 
spent in five different areas, 
the five “good causes" - arts, 
sport, national heritage, chari- 
ties and a fund to mark the 
mille nni um. John Major is 
optimistic that enough ideas 
will be forthcoming for ways to 
celebrate the millennium, and 
that “a wave of creativity will 
be unleashed”. 

What is curious about the 
whole lottery process is that 
what has been unleashed so far 
is a wave of bureaucracy and a 
cascade of commissariats, com- 
missions and committees. 

There is also much uncer- 
tainly. Who will make the awk- 
ward choices about criteria 
and quality that will determine 
the success or failure of an 
application for lottery funds? 

In fact, it all comes down to 
the five godfathers of the lot- 
tery: their views and opinions 
are going to count, as are their 
prejudices and preferences. 
The five godfathers are Lords 
Cowrie and Rothschild for arts 




and heritage; David Seiff for 
charities; Rodney Walker for 
sport; and Stephen Dorrell 
who has the awesome responsi- 
bility for the millennium. 

These five wise men will all 
receive more petitions and 
more advice than they can sen- 
sibly stand. Their offices have 
already started to grow and all 
five have spent a great deal of 
valuable time at seminare and 
struggling to establish the best 
possible criteria to guide appli- 
cants forgrants. 

None of them has been par- 
ticularly effective about letting 
the public know what is going 
on, and none of them seems 
quite dear about the role of 
the Office of the Lottery, inevi- 
tably known as Ofiot. Presum- 
ably Oflot will keep an eye on 
Camelot, the commercial oper- 
ator of the lottery. 


W hat is clear is that 
the majority of the 
cash is to be spent on 
capital projects and that each 
project is expected to raise 
m jifffhing partnership funding. 
This is a likely area of diffi- 
culty. 

Mainly, capital projects 
wpanq buildings, and there is a 
shiver of architectural excit- 
ment running through the pro- 
fession at the prospect of an 
end to the dole queues of archi- 
tects and builders. 

It seems to me that while the 
heritage world will acquire 
funds to save more buildings 
and more collections, the peo- 
ple who are really going to 
have the most fun are the nine 
millennium commissioners 
who are engaged in what their 


founding minister, Peter 
Brooke, called a “unique and 
golden opportunity to mark the 
year 2000 in grand style”. 

Brooke was also rash enough 
to talk about providing addi- 
tional landmarks of very high 
quality. "Landmark” is a dan- 
gerous term that is beyond def- 
inition. and the new minister 
who chairs the commission, 
Stephen DorreQ, does not seem 
quite so keen on it 

The nine commissioners are 
a curious bunch. Heather Cou- 
per is a lady astronomer, Rich- 
ard Dalkeith will one day be 
the 10th Duke of Buccleuch 
and Queensbery; Robin Dixon 
is a bobsleigh champion and 
Northern Ireland businessman; 
John Hall built a successful 
but hideous shopping mall 
called Metroland in Gateshead; 
Simon Jenkins likes architec- 
ture and once edited The 
Times; Michael Heseltine 
wanted to be prime minister 
and now runs the Department 
of Trade and Industry; Michael 
Montague is a businessman 
appointed to represent the 
political opposition; and Pat- 
ricia Scotland is a barrister 
and former member of the 
Race Relations Committee of 
the Bar General Council. Their 
chair man, Stephen Dorrell is 
secretary of state for national 
heritage. 

You are definitely missing 
out if you have not received a 
personal visit from one or all 
of these commissioners. 

They were decribed by their 
own office - rather charmingly 
- as "a panel of informed ama- 
teurs”, and they are all desper- 
ate not to be responsible for 


the sanctioning of any white 
elephants. They see themselves 
as the hairs of the Victorians 
who built the Great Exhibition 
in 1851 and of the quiet social- 
ists of the 1950s who built the 
Festival of Britain. 

They are rather anxious not 
to be seen to be creating monu- 
ments. They are much more 
likely to fond the planting of a 
forest or the protection of a 
species than build a cathedral 
to mark the 2fi00th Christian 
year. 

The national mood - I can- 
not speak for Michael 
Heseltine, who has a strong 
streak of megalomania - 
would seem to be against mon- 
uments, and especially against 
monuments to the eg omania of 
architects. 

The Eiffel Tower in Paris 
mnrkpri the centenary of the 
French revolution and Syd- 
ney's Opera House was funded 
by a lottery. There have been 
hundreds of great expositions 
■rinco 1851. But the n umb er of 
successful un-political monu- 
ments in the world is very 

gmaTI 

By the end of next month 
you will be able to fill in an 
application form for a grant for 
your very own millennium 
project But the guidelines are 
not quite prepared. 

The last millennium in 
England was presided over by 
Ethelred the Unready. With 
such a short time to go, will 
there be time for the commis- 
sioners to come up with some- 
thing really inspiring that 
could change the face of 
Britain for ever? The whole 
tiring is indeed a lottery. 






t*-' 


A^eunple for Britain: Australia's Sydney Opera House was paid for by a lottery 



ill the world to offer a ruinprelieiisivc service from llir 


origiiiuf nuunx to the final consumer. Il is id*c> at work 


beyond its borders, providing irs expertise in ilir arcus 


Gaz de France, 
a company 
strong on — . 

^ ^ file Hevelc 

partnership, f# — 

1 . B 1m indu!>mal pi 


of lechnienl cooperation urn! 


indu>iriul irisi n llm ion^. 


lis engineering and 


c 0 linn liiii" Niib>idiurv. 


Sufreguz. lias over 30 ycur>’ rxp«-rieiu-«- in 


die development of gn.i projects on an 





internal ionul scale. Called on as an 


industrial partner in Canada, tin- L nin-il 


States and Gcmiaiix. I»uz «lc France 


is also n key player in a wide raiifje 


of projects for i In- transmission 


md disiribniioii of pus in (lie (..'IS 


mid elsewhere in Central Europe. 


Cii/. dn France approueln-s i-in-li 


Jm project with ihr iniiipic i-\p«-riatMHi-» 


of ils ptimivrs in miinl. Ami Iti-i-ansi- 


inirrnniional ib-velnpiiirni i4 a 


Inns - 1 erni r mil in i i limn. 


Gaz de F ran it Inis 


now upriu-i 


per inn ii i’ lit 


of fives in Moscow. Kiev. Budapest. 


Prague. Bratifiluvu. Berlin. Buenos 


Aires. Houston and Montreal. 


Franco 


i 




16 


FIN aNCIAL TIMES MONDAY OCTOBER 3 1994 


★ 



King of Soya - 
and Nightclubs 

Olacyr de Moraes, Brazilian entrepreneur, 
tells Angus Foster he wants to live a little 



T he great American 
industrialists of the 
last century started 
empires based on 
railways, agricul- 
ture and construction. Olacyr 
de Moraes has gone one better 
and In a different continent; 
one of Brazil's most powerful 
businessmen, he has built an 
empire spanning all three. 

In little more than 40 years 
he has turned his Twain com- 
pany, Grupo Itamarati, from a 
tiny transport firm into a 
sprawling conglomerate with 
an annual turnover of more 
than Slbn. Known in Brazil as 
the King of Soya, he is the 
world's biggest private pro- 
ducer of soyabean. 

He owns one of the country’s 
biggest construction compa- 
nies. He is building a private 
railway, which could eventu- 
ally stretch for 3,000 miles and 
which he hopes will open up 
Brazil's interior. 

And now, at the age of 63, he 
is investing in telecoms, bank- 
ing and power generation. 

Despite all this, meeting de 
Moraes is a bit of a surprise. 
Expecting a strutting tycoon 
surrounded by maps of his 
dominions, the visitor finds, 
instead, a quiet initially shy 
man who easily could be mis- 
taken for a provincial bank 
manager. 

And there are contradictions. 
Despite his (presumably) enor- 
mous wealth and the success 
of his businesses, be does not 
seem content. Recently 
divorced, he has earned 
another nickname - King of 
the Nightclubs - because of his 
relationships with very pretty, 
much younger girlfriends. 

"When you are single, you 
come to the conclusion you 
need to live a little,” he says. 
‘'Why should I live the life of a 
monk? I am still working the 
same amount as before with 
the same responsibilities. Our 
businesses have never done as 
well as they are now. In fact, I 
think going out with beautiful 
women brings you luck.” 

Bom and brought up in Sao 


Paulo state, he started in busi- 
ness in 1947. running a small 
delivery company in Sao Paulo 
with his father. Its clients were 
mainly in construction; in 1957 
after his father’s death, de 
Moraes decided to enter the 
industry as well 

His construction company, 
Constran, started with, small 
projects, such as building 
roads and housing. As eco- 
nomic growth accelerated, con- 
struction became an important 
sector for successive demo- 
cratic and military govern- 
ments. Constran prospered 
under both, and grew into one 
of Brazil’s biggest private com- 
panies. 

From 1968, some of the prof- 
its from construction were 
diverted into agriculture. Enor- 
mous mechanised farms were 
developed in the south-western 
states of Mato Grosso and Mato 
Grosso do Sul at that stage 
thought to be too far from Bra- 
zil’s Twain markets to be viable. 

These farms, up to 250,000 
acres in size, needed irrigation 
and soil correction to reduce 
acidity. Once prepared, how- 
ever. they became extremely 
productive and Itamarati 
moved from wheat to soya to 
cattle and sugar. 

According to his public rela- 
tions resumd. de Moraes built 
Itamarati "with the talent and 
keenness of a great entrepre- 
neur who has never hidden the 
satisfaction that he has made 
an important contribution to 
the economic and social devel- 
opment of Brazil”. 

In person, the King of Soya 
tells it slightly differently. 
Tve been successful because 
of hard work. 1 started working 
when I was 12, always on Sat- 
urdays and Sundays. It wasn’t 
always wonderful. It was 
extremely diffi cult. I worked 
hard.” 

He says his main job now is 
to select the managers for each 
division rather than be 
involved in day-to-day deci- 
sions: "Each division is now 
highly professionalised.” His 
son, Marcos Augusto, 27, is 


being groomed to take over the 
group and is at present over- 
seeing investments in telecoms 
and a satellite joint venture. 

Itamarati is still wholly fami- 
ly-owned. and de Moraes sees 
no chance of that changing- "It 
is a very big group and there is 
always some need for one part 
to help another. For instance, 
profits from agriculture have 
gone towards the infrastruc- 
ture interests. We can do this 
because we are flexible. It 
would be difficult if we had 
outside shareholders.” 

The group will enter new 
businesses by providing some 
capital but also rely on joint 
venture partners for skills and 
finance. Infrastructure pro- 
jects, including telecoms and 
power stations, are key growth 
sectors for de Moraes. He 
believes Brazil’s government 
will be forced to withdraw 
from areas of the economy it 
traditionally saw as strategic. 

Later- this year, for instance, 
the company will start operat- 
ing two hydro-electric power 
stations, a business which 
until 1990 was closed to the 
private sector. 

"The government no longer 
has the money to invest in 

areas Ulrp t-plpfin mninniratinns 

and energy. Public opinion is 
changing too, and not just in 
Brazil. Where there is opposi- 
tion, it comes from employees 
of the state-owned firms or 
from companies wanting to 
keep their privileges. But the 
Brazilian people have matured 
and the businessmen have 
changed, too. Today, there is a 
growing realisation that we 
have to lower costs and 
become more competitive.” 

Itamarati 's largest infra- 
structure project is also one of 
Latin America's most ambi- 
tious. The company is building 
the Ferronorte railway which 
would connect southern Brazil 
by rail to the Amazon and to 
interior states where existing 
links are very poor. 

The first section will run 200 
miles inland from sao Paulo 
state and is due to open during 


the first half of 1996. Itamarati 
has provided more than half 
the $625m nppHpri for this 

Future stages would require 
more outside financing. Even- 
tually. the railway could carve 
through northern and western 
Brazil at an estimated cost of 
$L5bn and, Itamarati esti- 
mates, make 2m sq km of farm 
land more accessible. 

He believes, with a hint of 
visionary zeal, that Brazil’s 
western states offer the same 
opportunities that were discov- 
ered in the US Midwest last 
century. 

De Moraes says that formers 
along the tine, who now use 
costly and inefficient lorries, 
will immediately enjoy much 
cheaper and quicker transport 
for their rice and soya har- 
vests. Although the projected 
route of the railway goes past 
i tamar ati *-g forms, he says the 
project is important for the 
whole region rather than just 

himself. 

“Our involvement in the 
project was important; it drew 
attention to the problems 
caused by the lack of infra- 
structure. But only a small pro- 
portion, at most 10 per cent, of 
what is carried on the railway 
will be Itamarati goods. The 
project is totally viable with or 
Without the Itamar ati group.” 

Outsiders are sceptical about 
how far the railway will 
stretch, especially given Bra- 
zil’s habit of announcing huge 


projects which are never fin- 
ished. But they agree that, 
given de Moraes’ record, it is 
unwise to be cynicaL 

Considering Itamarati’s size 
and range of businesses, it is 
surprising that the group has 
yet to develop outside Brazil. 

De Moraes says he is now too 
old to consider a serious move 
abroad. He is also convinced 
that there are better opportuni- 
ties in Brazil and that the 
country will soon stabilise its 
economy and rediscover 
growth. A new currency, the 
real, was launched last July 
and has led to a sharp foil in 
infla tion, which had reached 50 
per cent a month. 

"The real has given people a 
glimpse of what it would be 
like to have a stable Brazil” he 
says. "The country managed to 
grow even when there was eco- 
nomic SO imagine what 

could happen if we had stabil- 
ity; I think we would have 
enormous development” 

Stability is a dream that he 
and countless other Brazilians 
have long harboured. But the 
chaos in their lives has not 
dented their patriotism. 

"If I could start again know- 
ing what I know now, Fd be 50 
times richer,” he says. “But I’d 
do it a g aip in Brazil, which is 
still the best country in the 
world from my perspective. It’s 
just that the people are no 
good!” he says, laughing for 
the first time. 



Maverick hunter 
of Swiss 
banking 


Martin Ebner. the maverick 
Swiss stockbroker who is 
trying to take control of Union 
Bank of Switzerland, the 
country’s largest bank, was 
recently referred to as the 
’George Soros of Switzerland*. 

It is a fairly apt comparison. 
Such is the 49-year-old Ebner ’s 
reputation for making big 
money for his clients that 
when he launched a new 
investment fund last April - 
even in the midst of a Swiss 
stock market stomp - he 
pulled in SFr3bn within a 
couple of weeks. 

Like Soros, he can also lose 
big sums. That fund launche d 
in April called StiUhalter 
Vision, has just reported 
SFr240m in unrealised paper 
losses in its first five months of 
activity. 

But over the nine years since 
he left staid Rank J. Vontobel 
in Zurich, to prove that the 
Zurich market was ready for a 
professional block trader. 

Ebner has been phenomenally 
successful both for himself 
and the dozen or so 
institutions and wealthy 
individual clients he serves. 

His broker-dealer BZ Bank, 
now one of the biggest players 
in the Swiss market, achieved 
a profit of SFrl61m last year, 
with a staff of only 19. BZ 
Trust, his asset management 
arm. has some SFrlObn under 
Tnanagpjnftnt. 

Ebner personally may now 
figure in lists or Switzerland's 
richest people, but he remains 
an outsider by choice, refusing 
to join the Swiss Bankers 
Association or to hobnob with 
Zurich' s financial 
establishment 

Friends and foes alike 
concur that Rhner has an 
extraordinary nose for market 
trends. "A genius.” his former 
boss Hans-Dieter Vontobel 
says. 


And he is widely respected 
for his willingness to take big 
risks - which he does every 
day as a block trader in 
Switzerland’s relatively illiquid 
equity market 

But his advance on UBS has 
startled many. It is the first 
tune he has shown a taste for 
political, as well as financial, 
risks. 

Henry’s growing 
hospitality 

Saudi Arabia’s Prince 
Al-Waleed Bln Talaal limited 
his comments on last week's 
purchase of a 25 per emit stake 
in the Four Seasons hotel 
chain to a couple of 
plain-vanilla sentences in a 
press release, writes Bernard 
Simon. 

He left tiie rest of the 
explaining to Chuck Henry, a 
former investment banker who 
has emerged as chief 
dealmaker in propelling the 
prince into a sizeable player in 
the international hospitality 
industry. 

Henry, 41. describes himself 
as "a consultant with a single 
client”. He met Prince 
Al-Waleed a year ago. while he 
was a director with GS First 
Boston’s hotel and real-estate 
division, which was advising 
Accor, the French group, and 
the prince on their (ultimately 
unsuccessful) bid for the 
Meridien hotel chain. 

Henry set up bis own 
company. Hotel Capital 
Advisers, in New York last 
July. He will supervise the 
prince’s investment in Four 
Seasons. 

It will come as no surprise If 
Henry emerges as one of the 
Saudi’s two nominees on the 
Four Seasons braid. "It’s the 
hope of any investment banker 
to stop being a middleman and 
start being a principal” says 
Henry. 

The Four Seasons deal 
comes on top of the 37-year old 
prince’s investments in 
Citicorp and Euro Disney, 
among others, which fit his 
preference for 
capital-intensive, global 
businesses with strong brand 
names. 

Henry also spearheaded the 
purchase last July of a 50 per 
cent stake in Fairmont Hotels, 
a smallish. San 
Francisco-based chain. 

According to Henry, Prince 
ALWaleed's interest in the 
hospitality industry was 
sparked two or three years 
ago. 


"A lot of people” approached 
him to buy hotel properties 
during the recession, when 
real-estate - especially 
hard-hit hotels - were out of 
favour with Investors. 

The Four Seasons deal is 
unlikely to be either the 
prince's or Chuck Henry's lost 
foray into the hospitality 
Industry; Henry says more are 
in the pipeline. 

Ford’s Devine 
gear-change 

John Devine must be 
something of a stranger at 
Ford’s headquarters in 
Deerbom. Michigan, writes 
Richard Waters. 

In the last 17 of the 27 years 
he has been with the US motor 
company, Devine has spent 
only six months in Deerbom. 

Last week, though, he was 
propelled into Ford's top 
management team as chief 
financial officer. 

His rise comes from an 
unlikely direction. For the past 
six years he has been head of 
First Nationwide Bank, an 
underperforming savings and 
loan subsidiary, which Ford is 
in the process of selling. 

First Nationwide is the US's 
fifth-biggest S&L. having 
grown rapidly under Devine. 
However, it hasn’t turned a 
profit for three years - unlike 
the auto mater’s other, highly 
profitably financing and credit 
card units. 

"Financial services have 
been a good business for some 
time - but the regulated 
banking business wasn’t a 
good one for Ford.” says 
Devine. 

He is not specific about what 
went wrong, saying only that a 
highly-regulated industry like 
hanking did not fit Ford welL 

Prior to the First Nationwide 
interlude, Devine's resume 
bore all the hallmarks of 
someone who was being 
prepared for higher things. He 
had spent time in Europe, 
where he rose to become 
controller of product 
development in 1981. and Asia, 
where he became president of 
Ford's Japanese business in 
1986. 

Given Ford's declared 
intention of integrating its 
different regional operations, 
that experience should 
certainly help. 

Meanwhile, says Devine, 
there is one underlying 
objective; “We want to keep 
the profit momentum up - we 
don’t want any let-up.” 


MILAN (ITALY) 




19-23 NOVEMBER 199^ 


16 th international 

oen°logical 

and BOTTLING 
EQUIPMENT 

exhibition 

is Italy's largesl 

3p0CW oTmachinafy 
and equipment 
(or oenotogyapo 

jartwp^on , 12 , 1 ^ 

and foreign industries. 

materials lor lhe The manulactuf© 




and con»« iara ** 

man Trade *£&£&*!**• EdWzsa 
Entrances paTta 


r iniwnw-— • 

siMEi-VnS.WM«^Teaie.3 

51 MS'- 



1 Fax .sorrow--- 

\A si&r 

LjL! 



INTERMIX. 

International Mexican Bank Limited 


As .i result of the acquisition by Banco Naciorul de Mexico SA 
lELmanu-x) of International Mexican Bank Limited 
( hiiermexi -ind the integration of their office with chat of the 
London branch of Banamex ic has been decided to change the 
name of International Mexican Bank Limited to 
Banamex Investment Bank and to become a pic with effect 
from J Oth September 1 994. 


Banamex Investment Bank Pic will be the European merchant 
banking entity of the Banacci Croup. 



Banamex Investment Bank Pic. 


Rafael Maneera 
Claude Herays 

Oscar Alvarez 
Gavin Co wen 
Luis Peflat 
Jorge Rauil 
Maria Lynch 
Jack Walsh 


Managing Director & EVP Europe 
Deputy Managing Director - 
Credit/Trade Finance 
Fixed Income Distribution 
Operations 

Equities Trading ft Distribution 
Bank Relations 
Treasury 
Debt Trading 


3 Creed Court, 5 Ludgate Hill. 
London, EC4M 7AA 


Tel: 071 369 2900 
Fax: 071 369 2949 
Telex: 8811017 

Member of SFA r 


Futures Ltd 


EQUITY AND INDEX OPTIONS 

COMPETITIVELY PRICED EXECUTION SERVICE 
For further information please contact 
Philip O'Neill 

Tel: 071 329 3333. Fax: 071 329 3919 5 


INVESTORS - TRADERS - CORPORATE TREASURERS 
SATQUOTE™ - Your single service for real time quotes. 
Futures * Options * Stocks * Forex * News * Via Satellite 

LONDON +71 329 3377 

LONDON +713293377 NEW TOME +20 20*— |MHPWT*<M«WI 


CLIENT 

TRADING 

ROOM 

PRIVATE CLIENTS 
WELCOME 


RF.RKF.I.F.Y FI 


IJUH3E 


LIMITE D 


38 DOVER STREET, LONDON WDC SEB 
TEL 071629 033 FAX: 071 495 0022 


CALLING ALL CURRENCIES - 0839 35-35-15 

(>D now lor ibetabesi currency rates, with 2 min updates 24 hour* a day. 

For details of our fuO range ol financial iolonnatloa services, call 071-895 9400. 
Calls are charged at 39p/mta cheap rate 49p/rain an other dines. 

Futures Pager Ltd. 19/21 Great Tower St. London EC3R5AQ. 


Futures Call 



TAX-FREE SPECULATION 
IN FUTURES 


To obewt rotate: Curie to tow ) 0 m H taniiim o toatp can help 
you. cNMKiadMuaay or bojaridnsoa 071-628 7233 arwrtK- 
to ik 10 hula Ffc 9-1 1 GnocMr Gardena. lanta SOI W OBO. 


FuUerMoney - the Global Strategy Newsletter 

Coveting bonds, stocks, currencies 6 sorrmodilios. including vrhoro to 
;iv.<>il ru.’ior.Wonoy is v.-nttor. b/ David Functor intcincitcncl :«v<*siors - Ti 
pages, monlhiy Single- issue S’.S cr US$22. annual £!56 in y< 5 swop*. 
oljev.be: o i ) JO o: US$230. cho-cuo or credrl card. 

Ca'I Jor-c- Fciq-Jhcrssn cl Chad Ancivsis 111 7 Swcilo-.v Street. L«“-dcn. S 
7HO UK Tel: ioncon ?1 -d3? 4963(371 .n UK) o: For 71-439 4956 

e ».•;»* r.V-tMV 


NEW! from FOREXIA FAX $ £ Dm ¥ 

A 8 nut PUB UC RECOOO OF ACCURATE SHORT TERM F0RBON EXCHANGE FORECASTING 

NOW, FROM ANYWHERE IN THE WORLD, GET TODAY'S VERY 
LATEST ISSUE OF THE FOREXIA FAX FROM 0730 GMT EACH 
WEEKDAY, INSTANTLY DELIVERED TO YOUR FAX 

USING THE KANOSET ON VOMI FAX MACHME OUU. 444 81 332 742E 
IN CASE OF DIFFICULTIES CALL US ON: *44 SI 9+08916 



FT7LES ECHOS 

TItb FT can help you reach addUonal buabwas readers In Franco. Our link mPi 
trie French business newspaper. Les Echos, gives you a irique recruitment 
advertising opportunity to capitalise on the FTs European raadereHp and to 
further target the French business world. For i nform a tion on rates end hither 
detaita please telephone: 

Philip Wrfgfey on +44 71 873 3351 


CONTRACTS & TENDERS 

PRIVATISATION OF THE 
TELECOMMUNICATIONS 
COMPANY OF GUINEA 

The Gain can Republic has decided lo privatise the Telecommimica turns 
Company of Guinea (SOTELGUI) through foreign private investment. This 
company has the monopoly of public sector Telecommunications in Guinea. 

The international request for proposal is aimed at companies, or groups of 
companies, with pre v ious experience in the management of a public sector 
company in this Geld. 

Tender documents and further information can be obtained from: 

La Division da PortcfeuSIe du M inisihre de s Finances 
Direction NationaJe des Mardtds Publics et du PortcfeuiUe de I'Etai 
Avenue de la R6publiqne, face i Fhdpital Ignacc DEEN 
BP 2006 Conakry - GUINEAN REPUBLIC 
Tel: (224) 41.35.97 
Fax: (224) 41.4230 

11 is also possible to obtain further information from Arthur Anderecn. advisor 
to the Government, addressing enquiries to: 

Mr. David DARBYS HIKE (Arthur Andersen London) 

1 Surrey Street 
London WC2R 2PS 
Tel: (44) 71.4383731 
Fax: (44) 71.4383990 

Mr. Amand CASAUS (Arthur Andersen Paris.) 

Toot Can - Cede* 13 
92082 Paris la Defense 2 
Tel: (33) 1.49.0132.67 
Fax: (33) 1.42.914)9.90 

The tender closing dale is 30 November 1994 in view of a privatisation that 
wiD lake effect 1 January, 1995. 



Baud pre ve n tion mtd detection la a g ourt h tetany bat jest how modi 
trine and money obored companies spend? 

Ttria survey will focus on Issues such as the debt against money 
tendering, rialus t iri d esphmag e and computer hacking. 

For more information an editorial content and details of advertisi n g 
uppoitMilUus avaftable In trite survey, plena cont act 


BfUAN POWELL 
Tab +44 71 873 3223 

FT Surveys 


dti 

Department of TVade aad Industry 

Contract for Research and 
Development Services 
at the 

National Physical Laboratory 

INVITATION TO APPLY 
FOR INCLUSION 
ON A SELECT TENDER LIST 

The Department of Trade and Industry is seeking 
a contractor to carry out research and development 
at the National Physical Laboratory (NPL) and to 
disseminate results. 

NPL is a world class cencre of excellence in 
physical metrology with a valuable reputation for 
integrity and impartiality. As the UK national 
standards laboratory, it plays a central role in the 
maintenance and development of the UK National 
Measurement System and actively supports 
EUROMET. It also provides high quality expertise 
in materials testing and characterisation and in 
information technology. 

The Department is to select, by competitive 
tender, a contractor to pursue this and other research 
ar NPL. It is anticipated chat the contract will run 
for five years, though chere may be options for 
extension. The contractor will have responsibility 
for the staff of t he laboratory and for the assets and 
property which are necessary for execution of the 
contract. It is incended that the contractor will be 
able to compete for chird party contracts. 

Potential tenderers wishing to be included on 
the select list should apply immediately in whang to 
the address below for an information memorandum 
and questionnaire which must be returned to DTI 
by Monday 24 October 1994: Mr M Herron, 
Department of Trade and Industry, (DTI) Laboratories 
Unit, Room 414, 151 Buckingham Palace Road, 
London SWIW 9SS. Fax 071 215 1059. 

Thu b 4 research and development contract where the benefit* du out 
accrue exclusively lo the contracting authority hut which u wholly 

remunerated by that authority. As such it &lh outside the scope ul thr 
EC Services Directive 92/ SO' EEC bur has been notified volununlv 
tn a notice contained in tbe Official Journal ol the European 
Communities. The nonce was despatched to the Office lor affinal 
Publication on 22 September 1>»*M 


/ 

i 


i 




YOU CAN ADVERTISE YOUR SKILLS IN THE 
FINANCIAL TIMES RECRUITMENT PAGES FROM AS LITTLE AS £90 + V.A.T. 


Looking for a Career Change? 


For further details please contact Phiup Wribley on Tel: +44 71 873 3351 Fax: +44 71 873 3064 
OR BY WRITING TO HIM AT FINANCIAL TlM«, RECRUITMENT AdVERTiSINO, HUMBER ONE SOUTHWARK BRIDGE, LONDON 

SE1 9HL 


/ 












W i-mil . .. ~>j-. 

Hits i r . . ’ ■ i * ,, :i-. 

si* -fn u,; •■*>. 

r>' . 

,rd ‘- [V- If 

— c 


FINANCIAL TIMES MONDAY OCTOBER 3 1994 


‘arJ H .. . 


LONDON. COUSEUM 

&«3r«fnc© Chaliapin tlf«t • " 
sangthq rate, every 
operakfe basshas wanted •' 

to ptey Don Quixote- On 

Saturday, for rts second . . 
production of the saesoo, ■ 
English National Opera * 
brihge Massenet's *t>on 
Oufcbotte - to London for . 

. the . first time since 19121 A 
popular- story,, ptua a subtle : 

■ btend of comedy and 
sentiment, has made this. ; 

. operaoneof the . . ' . . v.; 

- composer's most enduring 
successes. The producer at.- 
■;B NQ te fen- Judge and the '• 

conductor Emmanuel Joel, 

■with Richard -Van Allah . 
titti r® at the wJndrrtflte !n the 
'WfcHtfe, : 


ROME . / 

Cerio Maria ■ 
Guftni conducts 
iheOrchestra 
deO'Accademte 


Sante Cedfia. / 
tomorrow at the 
gala re-openirig 
of. the Auditorio 
cD Via della 
Condlazione. 

Roma's man . -. 

'.qppcert hafl. The-, 

. building, which . 
the orchestra rents from the Vatican, has just 
‘Undergone a $1^m rtfurbtebfnef^ lrMdwflng 
acoustical adjustments.- . 


■ COPENHAGEN 

The dlstingufehad Danish ■ 

. choreographer Ftammfrig. ' . 

FUndt has turned his ; talents 
to opera for the first 
production of the new 
- season at the Royal Theatre. 
He » staging the Danish 
premiere of Prokofiev's The 

Love for Throe Oranges, 
which opens or Friday. The 

■ conductor b Jan Latham* 
Koenig, 'and the cast 

, .includes Mitawi Meibye-and 
'inoerbam Jenaftx . 


LONDON WEST- END 

Jeremy Sams is winning a 
reputation as the ristog ' 
Renaissance man of British 
theatre Ha writes musk: 
(see “Arcadia*). He 
translates (the recent *LbS . 
Entente Tentotes" and 
English National Opera's 
revival of "The Magic flute"). 
And he directs. His recent 
- staging (and adaptation) of 
the Chabrier opera “La Roi 
malgre luT 1 has just entered 
Opera North repertory; his 
staging of "Novae's Island", 
by Tim Firth, was a hit at the 
Nottingham Playhouse this 
January and opens at the 
Apollo Theatre, Shaftesbury 
Avenue, tonight Quite a 
range for.a man who only 
began directing In 1992. 


NEW . 

YORK' .J^fK 

A survey - 
of ttalf&i visual 

arts in the postwar tH§ 

period opens at the 
Guggenheim Museum. W 

. on Friday. Bititlod The " 

Italian Metamorphosis 
1943-68, the exhibition 
focuses on a period when Italy 
became a leading exporter of 
outturn, and Itafian design and 
style became synonymous with 
innovative quality. It wID include 
Arte Povera paintings, fashion 
designs by Valentino fright), 
models of significant 
architectural monuments, 
artists' jewellery and cinema. 


In defence 

of theatre 

Director Richard Eyre warns that 
the creeping virus of opportunism 
has infected one of the great 
glories of British cultural life 

T here are a lot of good the finest theatre in the world, per- 
reasons for not going to haps because so many of the char- 
the theatre. For a start, acteristics of the medium coincide 
you have to turn up on with characteristics of the nation. 

time and Sit In the dark The theatre exnkrita ritual, nnvw. 


T here are a lot of good 
reasons for not going to 
the theatre. For a start, 
you have to turn up on 
time and sit In the dark 
without talking for longish periods. 
I know many people who find this 
an insupportable restriction of their 
freedom. I mice spoke to the finan- 
cier James Goldsmith in the hope of 
luring him into sponsoring a play at 
the National Theatre. T never go to 
the theatre." he said. "My Legs are 
too long." 

And I have a friend, a film direc- 
tor, who hates going to the theatre 
because it is all in wide-shot Many 
people prefer the cinema for its soli- 
tary, dreamlike disengagement. 
John Updike says: ‘Tve never much 
enjoyed going to plays. The unreal- 
ity of painted people standing on a 
platform saying things they've said 
to each other for months is more 
than I can overlook.” 

For me this is missing the point; 
it is the re-creation that animates 
the art and makes it unique. Thea- 
tre will always be unfashionable 
because of its form, its need for 
order in narrative and in structure, 
and it will always lag behind a soci- 
ety that is conspicuous for Its form- 
lessness. The theatre's concern with 
the frailty of being human will 
always look defenceless when set 
against Mad Max LU, The Extermi- 
nator. or the confident certainties of 
politics or journalism. 

What I like about the theatre is 
precisely what some people hate 
about it I like being made to con- 
centrate. I like the fallibility that 
goes hand in band with its immedi- 
acy. I like the fact that it happens 
in the present tense, that it is vul-. 
nerable and it is changeable. I like 
its sense of occasion, the communal 
event going in as an individual and 
emerging as part of a group. I like 
sharing time with strangers: a 
beginning and an end, a sense of 
birth and a sense of death. And I 
like the singular combination of 
magic and moral debate. 

There is no art that uses time, 
space, gesture, movement, speech, 
colour, costume, light and music in 
the way theatre does. It thrives on 
metaphor: things stand for t h i n g s 
rather than being the thing itself, a 
room becomes a world, a group of 
characters a whole society. Theatre 
invokes the astonishment of the 
unreal and the strange, magnified 
proportions that occur naturally in 
c hildh ood. 

The British are supposed to have 


the finest theatre in the world, per- 
haps because so many of the char- 
acteristics of the medium coincide 
with characteristics of the nation. 
The theatre exploits ritual, proces- 
sions, ceremonies, hieratic behav- 
iour and dressing up; it depends on 
adversarial conflict, the stuff of our 
parliamentary and legal system, 
and it is concerned with role- 
playing, which is second nature to a 
nation obsessed with the signs and 
manners of cin«w distinction, a-nd 
inured to the necessity, as a nation 
and as individuals, of pretending to 
be what you aren’t 
But today the theatre’s ecology 
and economy have started to resem- 
ble those of the country as a whole; 
it has become infected by the virus 
of opportunism. A kind of impa- 
tience has grown: actors and direc- 
tors who might previously have 
been contort to do a year or two in 
a repertory theatre have begun to 
look anxiously for jobs in TV, in 
films, or the national companies, 
and the previous de facto form of 
apprenticeship for actors in smaller 
repertory theatres has started to 
disappear - as has the unspoken 
sense of shared experience between, 
theatres in Newcastle, Nottingham, 
Exeter, Bi rmingham and London. 


A feeling has grown like a 
debilitating fungus that 
maybe these theatres 
aren't worth saving, and 
maybe this park serves 
no useful purpose, and maybe this 
hospital should be dosed down, and 
maybe we can’t justify these 
courses for adults, and maybe we 
don’t need all these people who 
don’t have jobs and take up all this 
space and all this money. 

I don’t believe that it is possible 
to retrace the steps of the last few 
years, to perform a sort of social 
surgery that would change our 
hearts and minds. We are what we 
are, and it is we who have made our 
world as it is. The gift of the post- 
war era was the promise of freedom: 
political, and economic, and sexuaL 
It was an illusion: we are prisoners 
of our own social and economic 
structures. 

But the fact we know it was an 
illusion shouldn't stop us from 
wanting a better world with our 
limited resources. We are not a poor 
country. The leading Romanian 
actor and director Ion Caramitru 
told me in shocked tones, expecting 
my sympathetic support, that he 
had only 2 per cent of the public 



Richard Eyre, director of the National Theatre: It is second nature to a nation obsessed 
with class distinction and offers the singular combination of magic and moral debate’ 


spending budget of Romania to 
spend on culture. Ah, I said, if only 
we had that much. 

I always took Margaret Thatch- 
er’s dictum "There’s no such thing 
as society," as a figure erf speech. I 
didn’t realise that she was so literal, 
so serious, and so determined to 
prove her proposition. Her legacy is 
a sort of political epidemic, a deter- 
mination to subject every organisa- 
tion, every institution, to ideologi- 
cal reform at best, abolition at 


worst, all driven by the Three 
Horsemen of the contemporary 
Apocalypse: money, management 
ami marketing. 

Tm not playing naive if I say that 
1 really don't understand why the 
government doesn't support the 
arts more fully, but then Tm no 
more able to understand why the 
government can’t see that educa- 
tion is the key to our future, and 
that those who work in education 
might know as much about it as the 


politicians. We mustn’t let scepti- 
cism, cynicism, or apathy lead us 
to be mute in the face of any 
attempts to dismantle those organi- 
sations and institutions which were 
set up in the spirit of optimism and 
belief that there is such a thing as 
society. 

^Abridged from Misdirections, to 
be published on October 27 in a 
revised edition of Utopia and Other 
Places by Richard Eyre (Vintage 
£6.99, 220 pages). 


London concerts 


Wagner in period 


P erformances on "period” 
instruments are catching 
up with musical history. A 
movement that initially 
concerned itself with Baroque and 
Classical repertory has now encom- 
passed the early Romantic period. 
Under Roger Norrington, the Lon- 
don Classical Players have been 
steadily exploring die 19th century, 
and on Saturday at the Queen Eliza- 
beth Hall they stepped further into 
the “unknown” with the culminat- 
ing Romantic composer Richard 
Wagner. 

The occasion was Norrington’s 
"Wagner Day”, devised as an explo- 
ration of German Romantic music 
parallel to the South Bank's Deut- 
sche Roman tik exhibition. Its aims 
were more modest than his previ- 
ous, celebrated “Experience" week- 
ends, and no attempt was made to 
cover the range of the Hayward 
show - that would have meant 
playing Mozart through to Stock- 
hausen. Rather, Saturday’s events 
focused on the half-century from 
the death of Beethoven to that of 
Wagner, and we were restricted to 
small bites: two talks and two short 
concerts of chamber music contrast- 
ing one early and one late Roman- 
tic, Schubert and Liszt; there was 
no room to explore the darker side 
of Wagner's Romanticism. 

The revelations all came in the 
evening’s concert, the Gist half of 
which consisted of overtures by 
Beethoven (Coriolan), Weber (Frcis- 
chtUs), Mendelssohn (Hebrides) and 
Schumann C Genoveva ), played on 


instruments of the mid-to-lnte 19th 
century, as Wagner would have 
heard diem. After the interval, Nor- 
rington picked up the threads with 
the Overture to Rienzi (written in 
1840, seven years before Genoveva), 
in a thrilling performance where 
smallcr-scale - though never under- 
nourished - climaxes were punctu- 
ated by clanging cymbals and 
shrieking piccolo. Orchestra and 
conductor clearly relished their new 
challenge, and communicated their 
sense of discovery to the audience. 

But giving Wagner the "period" 
treatment means more than playing 
on gut strings with no vibrato: 
since the composer's death, perfor- 
mances of his music have become 
markedly slower, and Norrington's 
re-thinking of tempos provided the 
greatest insights. By observing that 
the 6/8 time signature in the Tristan 
Prelude means two beats per bar, 
Norrington got away from the now- 
customary, cloying six, and in the 
process gave a performance full of 
surging passion. In adhering to 
Wagner's own timing for the Mei- 
stersinger Prelude, he produced a 
refreshing, anima ted account that 
underlined the opera's comic spirit 

We also heard the Preludes to 
Parsifal and Act 3 of Lohengrin. 
Now we must hear whole operas: 
arguments about the size of Wagner 
voices today would perhaps be set- 
tled, and - were Norrington con- 
ducting - opera houses might save 
on their overtime bills. 


John Allison 


Colourful Berlioz 


A decade or so ago the BBC 
Symphony Orchestra 
would probably have called 
its exploration of the 
music of Hector Berlioz, which 
began in the Royal Festival Hall on 
Saturday, simply “Berlioz Series". 
These days, in deference to the mar- 
keting men, such projects have 
snappy titles, often only tangen- 
tially relevant In this case, how- 
ever, the title “Reinventing the 
Orchestra” actually encapsulated 
Berlioz’s achievement as a creator 
of sounds and colours which until 
then had been essayed only tenta- 
tively by his contemporaries. 

For Berlioz, orchestration was an 
integral part of music. His artistic 
intentions in the Sgmphonie fantas- 
tigue - not least its autobiographi- 
cal content - were made explicit by 
the composer. Yet there is no sense 
in which Berlioz’s orchestral tech- 
nique, even at this early stage in his 
career, lags behind his poetic 
vision. He may have become more 
resourceful as he grew older, as was 
evident by the nimbly delivered 
Corsair overture which began the 
evening, but the orchestral effects 
of the Symphonic are precise, from 
the Chiaroscuro delicacy of the opi- 
um-induced "Reveries" to the 
brashly scored nightmare of the 


"Witches' Sabbath”. Given the 
hackneyed status of the work, 
Andrew Davis and the BBC Sym- 
phony Orchestra turned in a sur- 
prisingly fresh and powerful perfor- 
mance, notable for the assurance of 
the solo instrumental contributions 
and the cohesion of the ensemble 
work. 

Berlioz's legacy continues in the 
importance which many of today’s 
composers attach to sound as pure 
sensation. Future concerts in the 
series (7 and 10 October) will 
include works by two of Scandina- 
via's leading young composers, 
Magnus Lindberg and Kaija Saa- 
riaho, already well known in the 
UK, for whom colour is indispens- 
able. On Saturday it was the turn or 
the Dutchman Tristan Keuris, 
whose Concerto for Saxophone 
Quartet was receiving its belated 
London premiere eight years after it 
was completed. Despatched with 
virtuosity by its dedicatees, the 
Rascher Saxophone Quartet, it 
emerged as an attractive, rumbus- 
tuousjeu d'esprit, overlong perhaps, 
but teeming with incidental detail 
and displaying an orchestral facility 
of which Berlioz himself might have 
been proud. 

Antony Bye 


0 


INTERNATIONAL 

Arts 

Guide 


■ BERLIN 

OPERA/DANCE 

Deutsche Oper John Dew’s now 
staging of Andrea Chenier can be 
seen tomorrow and Sat Rafael 
Frdhbeck de Burgos conducts a 
cast headed by Lisa Gasteen, 
Richard Marglson and Alexandre 
Agacfta. Repertory also includes 
Fidello. Die ZauberfkSte, Der 
Rosenkavalier and a Balanchine 
programme (341 0249) 

Staatsoper untier den Linden A 
new production of Rossini's 
Tancredi can be seen in two 
different versions this week - the 
Ferrara version tomorrow with 
Jocben Kowalski and Lynne 
Dawson, and the Venice version on 
Thurs and Sat with Kathleen 
Kuhlmann and Jeffrey F rands. Both 
are conducted by FaWo Luis* and 
staged by Fred Bemdt Repertory 
also indudes Der Fmischute and 
Flaland Petifs bate* Dlx {200 4762/ 

2035 4494) , , 

KenwtoctM Oper Harry Kupfer s new 
production of Berthold 

Goldschmidt’s 1932 tragl-comic 

opera Der gewaltige Hahnnei can be 


seen on Fri and Oct 14. Repertory 
also includes The Bartered Bride, 
Cost fan tutte, Cav and Pag, La 
CenerantoJa and Die Zauberfldte 
(299 2555) 

CONCERTS 

Schauspielhaus Today at 3.30pm: 
Michael Schoenwandt conducts 
Beilin Symphony Orchestra and 
Philharmonic Chorus in Beethoven's 
Ninth Symphony. Tomorrow: Peter 
Schreier song recital. Wed: Horia 
Andreescu conducts Bucharest 
Radio Symphony Orchestra In works 
by Enescu, Tchaikovsky and Dvorak, 
with piano soloist Christian Bad). 
Wed (KammermusiksaaJ): Nancy 
Argenta song reertai. Fri and Sat 
Olaf B§r (2090 2156) 

Phil harm onia Tomorrow: Anne 
Sophie Mutter. Wed: Jessye 
Norman. Thurs: Alfred Brendd. Sat 
Georg Fritsch conducts Berlin Radio 
Symphony Orchestra in works by 
Dvorak, Prokofiev and Ravel. Sun: 
Berlin Baroque Orchestra presents 
Monteverdi's L'incoronazlone di 
Poppea. The Berlin Philharmonic 
Orchestra is on tour in Japan. Its 
next Berlin concerts are Oct 21, 22 
and 23 (2548 8132) 

m NEW YORK 

THEATRE 

• Uncommon Women And Others: 
a revival of Wendy Wasserstein’s 
play about friends at a smaD New 
England women’s college, who meet 
for tea and then for a reunion six 
years later. A Second Stage Theatre 
production directed by Carole 
Rothman. In previews, opening Oct 
26 {Lucffle Lortel. 121 Christopher 
St, 239 6200) 

• Three Tali Women: a moving, 


poetic play by Edward Albee, 
dominated by the huge, heroic 
performance of Myra Carter. She, 
Jordan Baker and the droll and 
delightful Marian SekJes represent 
three generations of women sorting 
out their pasts (Promenade, 2162 
Broadway at 76th St, 239 6200) 

• Angels in America: Tony 
Kushner’s epic conjures a vision of 
America at the edge of disaster. Part 
one, Millenium Approaches, and part 
two, Perestroika, are played on 
separate evenings. The cast includes 
F. Murray Abraham (Walter Kerr. 219 
West 48th St, 239 6200) 

• Philadelphia, Hera I Come!: 
Roundabout Theatre Company's 
revival of Brian Friel’s 1964 Irish 
drama, with Milo O'Shea, Robert 
Sean Leonard, Jim True and Pauline 
Flanagan. Directed by Joe Dowling. 
Ends Oct 23 (Roundabout, 

Broadway at 45th St, 869 8400) 

• An Inspector Calls: J.B. 
Priestley's 1947 mystery thriller in a 
stunning re-interpretation by 
Stephen Daldry, first seen at 
Britain's National Theatre (Royals, 
242 West 45th St, 239 6200) 

• Guys and Dolls: a top-notch 
revival of foe 1950 musical about 
the gangsters, gamblers aid 
good-time girls around Times 
Square (Martin Beck, 302 West 45th 
St, 239 6200) 

• Carousel: Nicholas Hytner’s 
National Theatre production from 
London launches the 1945 Rodgers 
and Hammerstein musical towards 
tiie 21 st century (Vivian Beaumont 
150 West 65th St 239 6200) 

• Kiss of the Spider Woman: pop 
star and ex-Miss America Vanessa 
WiBJams has taken over foe title role 
in the long-running Hander and Ebb 
musical directed by Harold Prince 


(Broadhurst, 235 West 44th St 239 
6200) 

• Crazy for You: Gershwin's tunes 
and Susan Stroman's choreography 
are foe central pleasures of this light 
and frothy entertainment now in its 
third year on Broadway (Shubert, 

225 West 44fo St 239 6200) 

• Blood Brothers: Willy Russell's 
musical about twins who, separated 
at birth, eventually meet and fall in 
love with the same girl. The cast 
includes Carole King (Music Box, 

239 West 45th St 239 6200) 

• Stomp: a loud, energetic and 
wordless movement-theatre show in 
which a troupe of performers dance, 
dap and generally bang on 
everything in sight Far more 
engaging than you might expect 
(Orpheum, 126 Second Ave between 
6th and 7th Streets. 307 4100) 

MUSIC 

Metropolitan Opera Highlights are 
Idomeneo tomorrow and Fri starring 
Placido Domingo, and Tosca on 
Wed and Sat with Carol Vaness, 
Luciano Pavarotti and Sherrill 
M3nes: This month's repertory also 
indudes Rlgoletto, La boheme, 
Arabella and Le nozze di Figaro. The 
first new production of foe season is 
Shostakovich’s Lady Macbeth of 
Mtsensk, opening Nov 10 (362 6000} 
State Theater New York City 
Opera's autumn season runs till Nov 
20. This week's performances are 
daily except tonight and Wed, and 
feature Borodin’s Prince Igor, II 
barbiere cfi Srvlglla, Carmen. 
Meflstofele, Tosca and Delibes' 
Lakm6. Prince Igor Is a new 
production conducted by Guido 
AJmone-Marsan and choreographed 
by Damian Woetzel of New York 
City Ballet (870 5570) 


Avery Fisher Hafl Kurt Masur 
conducts this week's New York 
Philharmonic concerts. Tomorrow: 
Dvorak overtures and Prokofiev's 
Fifth Symphony. Thurs, Fri, Sat 
works by Minoru Miki and 
FUmsky-Korsakov (875 5030) 

■ PARIS 

CONCERTS 

Theatre des Champs~E]ys6es 
Franz Wetser-Mdst conducts the 
London Philharmonic tomorrow in 
works by George Benjamin and 
Beethoven, with violin soloist Gil 
Shaham. Anne Sophie Mutter gives 
a violin recital on Wed. 

Bruno- Leonard Gelber plays 
Beethoven piano sonatas on Sun 
morning (4952 5050) 

Safle Pfeyel Semyon Bychkov 
conducts Orchestra de Paris In 
Mahler’s Fifth Symphony on Wed 
and Thurs. Jacques Mercier 
conducts Orchestra National d'lle de 
France on Sat In works by Debussy, 
Boulez and Dutilleux (4563 0796) 

OPERA 

BastiDe Bob Wilson’s version of 
■Madama Butterfly can be seen 
tomorrow, Thurs and Sun afternoon, 
.with Miriam Gaud In the title role 
(continues fall Oct 22). Simon 
Boccanegra, conducted by 
Myung-Whun Chung and staged by 
Nicolas Brleger, can be seen on 
Wed and Fri (till Oct 14), with cast 
headed by Vladimir Chernov, Kalian 
Esperian and Roberto Scandiuzzi 
(4473 1300) 

CftAfeJet The new Ring production 
continues with Siegfried on Oct 14 
and Gottendammerung on Oct 16. 
There will be two complete Ring 
cycles between Oct 31 and 


Nov 13 (4028 2840) 

DANCE 

The Parte OpCra Ballet’s 1994-5 
season opens at foe Bastille on Oct 
25 with Grand D6RI6 followed by 
Balanchine's Le Palais de crista! to 
Bizet. The Fora- Temperaments to 
Hindemith,- and Jerome Robbins' 
Glass Pieces to Philip Glass (12 
performances tUI Nov 17). The 
season also indudes a young 
dancers programme, Nureyev's 
production of Swan Lake, a mixed 
bill Including works by Balanchine 
and Martha Graham, John 
Neum Bier's Magnificat and a 
Nijinska-Nijinsky programme (4742 
5371) 

JAZZ/CABARET 

American dues singer/guitarist 
David Dee Is in residence this week 
and next at Lionel Hampton Jazz 
Club. Music daHy from 10.30pm to 
02.00am (Hotel Mertdten Paris Etoile, 
81 Boulevard Gouvion St Cyr, tef 
4068 3042). Joshua Redman Quartet 
plays next Mon at Th6&tre de la Villa 
(4274 2277) 

FESTIVAL D’AUTOMNE 
Highlights indude Peter Stein's 
Moscow staging of foe Orestela (Oct 
9-15), a Bob Wilson adaptation of 
Dostoyevsky (Oct 11-23), Robert 
Lepage's Seven Streams of the 
River Ota (Nov 18-26), and The 
Merchant of Venice directed by 
Peter Sellars (Dec 6-17). The dance 
programme is headed by Trisha 
Brown Dance Company (Nov 3-12), 
and there Is a special focus on the 
music of Gyorgy Kurtag (Festival 
d'Automne 8 Paris, 156 rue de 
Rlvoll, 75001 Parte. Tel 4296 1227 
Fax 4015 9288) 


ARTS GUIDE 
Monday: Berlin, New York and 
Park. 

Tuesday: Austria. Belgium, 
Netherlands, Switzerland, Chi- 
cago, Washington. 
Wednesday: France. Ger- 
many, Scandinavia. 

Thursday: Italy, Spain, Athene, 
London, Prague. 

Friday: Exhibitions Guide. 

European Cable and 
Satellite Business TV 

(Central European Time) 
MONDAY TO FRIDAY 
NBC/Super Channel: FT Busi- 
ness Today 1330: FT Business 
Tonight 1730, 2230 

MONDAY 

NBC/Super Channel: FT 
Reports 1230. 

TUESDAY 

Euro news: FT Reports 0745. 
1315, 1545. 1815. 2345 

WEDNESDAY 

NBC/Super Channel: FT 
Reports 1230 

FRIDAY 

NBC/Super Channel: FT 
Reports 1230 

Sky News: FT Reports 0230, 
2030 

SUNDAY 

NBC/Super Channel: FT 
Reports 2230 

Sky News: FT Reports 0430, 
1730; 




lug data lor the monitoring oi targets, ana oil* lor me nauuiuig ui wa&ie |Ka.iMHiue- b 





FINANCIAL TIMES MONDAY OCTOBER 3 1994 


Samuel Brittan 


Salzburg sound of 
economic music 


T elephone calls in the 
UK are becoming as 
competitive as soap 
powders - and the dif- 
ference between rival "brands" 
is about as great 
Last week saw the launch of 
two long-distance telecommu- 
nications networks. Energis 
and NTL join Mercury and BT 
in Europe's most competitive 
long-distance phone market 
But competition is also open- 
ing up for the first time the 
local telephone market as 
across Britain cable companies 
dig up the streets, laying com- 
bined cable television and tele- 
phone networks. 

What does this rapid rise of 
cable telephony mean for the 
consumer? And does it spell 
serious trouble for the future 
of British Telecommunications, 
which until a decade ago had a 
complete monopoly over the 
UK's phone service? 

BT proclaims the cable com- 
panies to be its most serious 
long-term threat. Mr Michael 
Hepher, BT managing director, 
says: "Whereas with Mercury 
we lose the long-distance reve- 
nue but keep the line connec- 
tion, with the cable companies 
we lose not only the revenue 
but also the connection - and 
with it the opp o rt un ity to sell 
and market all our services." 

His fears have foundation. 
The cable companies now 
boast more than 500.000 tele- 
phone customers, double the 
number a year ago. Although 
the cable operators are gener- 
ally called "cable TV compa- 
nies", this is a misnomer since 
telephony is almost as impor- 
tant to them as television. 

They are marketing the two 
services hand-in-hand, and rev- 
enue from both is critical to 
the economics of laying a sec- 
ond cable into the home. Of the 
three largest cable operators in 
the UK. Nynex is a regional 
phone operator in the US, 
while the other two. Telewest 
and Bell Cablemedia, are joint 
ventures between telecommu- 
nications and cable companies. 

Analysts predict that by 2000 
the cable companies will have 
rngtanuri nearly 5m phone lines 
- against BTs current total of 
26m. Some cable operators 
already have more telephone 
than TV subscribers. Nynex, 
the second largest operator, 
maims that 25 per cent of the 
homes within its Portsmouth 
network area now take cable 
telephone, against 22 per cent 
taking cable TV. A year ago, 58 
per cent of new customers 
were taking both products; 
now it is up to 70 per cent 
The social make-up of cable 
customers is changing too. In 
the early days, when cable was 
clearly TV-led. it had strongest 


When I re- 
cently arrived 
in Salzburg for 
a symposium 
on European 
unemployment, 
I had a shock 
as I crossed the 
bridge into the 
city. For the fortress seemed to 
have gone psychedelic in a 
variety of brilliant colours. 
There was the old grey, an 
area repainted in brilliant 
white, which was supposedly 
the original colour, and an 
intermediate area covered by 
builders’ green netting. 

Yet this variety of colour in 
some ways symbolised our 
work. For thanks to the initia- 
tive of Professor Herbert 
Giersch of Kiel, a founding 
member of the German Council 
of Economic Advisers, 10 econ- 
omists from a wide range of 
the political spectrum man- 
aged to agree on a common 
manifesto. They included Rich- 
ard Cooper, a former Carter 
appointee, Patrick M inford, 
who was close to Margaret 
Thatcher, and Wolfgang Rieke, 
recently of the Bundesbank. 

The Salzburg manifesto pin- 
pointed three “proximate roots 
of high unemployment": pay 
and associated labour costs 
which price workers out of 
jobs; intermittent periods of 
low demand growth; and 
capacity shortages which 
emerge in many countries in 
the recovery phases while 
unemployment is still high. 

Unlike some market econo- 
mists, the Salzburg authors 
admitted that forces such as 
globalisation and technical 
change had an adverse effect 
on unskilled workers, which 
showed itself in unemployment 
in Europe but in low pay in the 
US. Nevertheless we rejected 
any kind of protection to keep 
out imports from poorer coun- 
tries, and wanted to tackle the 
problem of low pay by persuad- 
ing other citizens to “use the 
tax and transfer system to top 
up low Incomes by direct pay- 
ments". 

These principles are the key. 
For the practical application 
must vary from country to 
country and would require 
many pages of institutional 
detail. To the extent that 



rMsrmsRm 



unemployment is a structural 
problem, it cannot be tackled 
by a single brushstroke mea- 
sure such as leaving or jo ining 
an exchange rate arrangement. 

In the end we agreed on ntne 
points: 

• There has to be an appropri- 
ate macro-economic back- 
ground. “Inflationary dashes 
for growth should be strictly 
avoided. But once inflation is 
at low levels, monetary author- 
ities have as much responsibil- 
ity for avoiding nominal 
demand deficiency as inflation- 
ary excess.” There was a spe- 
cific recommendation that “the 
European Monetary Institute 
should monitor the develop- 
ment of nominal gross domes- 
tic product at an EU level”. 

• Labour markets have to 
respond more quickly to mar- 
ket changes. I cannot claim 
that we solved the problem of 
why pay and associated costs 
are so often above market lev- 
els. But the manifesto urged 
that settlements reached by 
collective bargaining should 
not rise in real terms in the 
years to come so that produc- 
tivity growth could be trans- 
lated into an expansion of 
employment 

• “Equal pay for equal work” 
stands in the way of full 
employment This was not an 
anti-feminist rearguard action, 
but a reference to the need to 
take on new workers at less 
than existing pay rates, to try 
to combine pricing into jobs 
with the realities of insider 
power of those already at 
work. 


• The market incomes of 
unskilled workers in the west 
are likely to move nearer to 
those in developing countries. 
But there would be levelling 
up as well as down. Moreover 
as real income in advanced 
countries would benefit from 
the extra trade, there would be 
a surplus to channel towards 
those most hard hit by eco- 
nomic change. 

• There is a need to invest in 
human capital to reduce pres- 
ent disparities in earning 
power. The Salzburg writers 
gave the theme a new twist by 
rejecting “credentialism" - 
that is multiplying the paper 
qualifications - and urging 
credit vouchers for trainees. 

• Physical Investment is 
needed too - but not general- 
ised fiscal subsidies, which too 
often encouraged capital-inten- 
sive projects. The best contri- 
bution governments could 
make was to reduce their own 
structural budget deficits. 

In a carefully negotiated 
aside we noticed “that a Japa- 
nese current account surplus - 
provided it is not achieved at 
the expense of a depressed 
economy - is a contribution to 
world savings”. This was not a 
digression but recognised the 
inter-relationship of world cap- 
ital markets and world real 
interest rates. 

• Top-up payments for low-in- 
come households are prefera- 
ble to other devices such as 
minimum wage legislation or 
high benefits. But to carry the 
more hairfiinp German partici- 
pants we had to underline in 
several different ways that 
these top-up payments would 
be subject to means tests. 

• There should be no link 
between the dole and previous 
earnings if the benefit Is 
financed from taxation. 

• There is a risk that the 
social chapter of the Maas- 
tricht treaty will limit employ- 
ment “and should be watched 
carefully”. Agreeing this point 
was some achievement among 
10 signatories, only two of 
whom were British and half of 
whom were based in Germany. 

Many heartaches could be 
saved if a German government 
had the courage to take the 
same attitude in European 
political discussions. 


World class 


doesn’t just 
happen. 


ft starts with sound management, substantial 
reserves and prudent policies. 

It's reinforced by our association with the global 
Citibank network, through which we bare instant, 
electronic links with over 30.000 employees worldwide. 
And uv hare our own offices in the most important 
financial centres for our customers. New York, London, 
Paris. Geneva and Istanbul. 

The scale and sophistication of our operations 
enable us to offer expertise in financial engineering, 
exchange- rate and exposure management techniques 


which is the equal of that available anywhere and is 
founded on our intimate knowledge of financial life 
in Saudi Arabia. 

Continuous programmes of training and career 
development extend the skills of every one of our 
carefully-chosen, bigbty-motivated staff. 

As a customer, you 'U find Samba offers world class 
service, within and beyond tbe Kingdom. 

So if you want to deal with a bank that delivers on 
its promises, talk to the one that speaks your language 
the language of leadership GD 


Saudi American Bank 

Talk to the Leader. 

HeadOfflwPO Uc<c4M$. Riyadh 1 Hit. Tel- (Oil 47T 477a Santa London Nightingale House. M Curran St. London ST1Y7PE. Tfcfc 1+001/ W5 -Mil 
iNewY«*ido*>. Avenue. New York, NY lOlOj. 1H. 1 1) t2lZ) JOT 8274 Snobs Genet* Samba Finance SA. J A 7 Ku- du commaoi. IBM Geneva. Td (4])t22i 51 1 ) 24 00 
3Mnto IWM, PO Doi 49. Levant taunbul. Tct f9u»i||* JOO 3H/7. Samba FartoOi Avenue Hocbc. Paris 7TQ0*. W: 031 1 i‘J AM 00080. 


Contest for your 
conversation 

Cable companies and BT are in fierce competition 
in the UK telephone market, says Andrew Adonis 


appeal in areas of low-income 
housing, where the extra TV 
chan note were especially popu- 
lar. Telephony is broadening 
cable's appeal. “At the prosper- 
ous end of the demographic 
continuum we are now selling 
well above average," says Mr 
Peter Lynch, director of resi- 
dential marketing at Nynex. 
Sales are below average among 
older residents, “but it is more 
a concern about change, not a 
clear socio-economic divide”, 
he believes. 

In response, BT has set np 
“cable defence” teams to target 
urban areas where cable com- 
panies are buflding their net- 
works. It has also launched a 
high-profile campaign to per- 
suade the government to lift 
the ban preventing it from car- 
rying broadcast television 
across its network into homes. 

BT executives are addition- 
ally concerned that, as price 
competition with cable compa- 
nies intensifies. BT will not be 
able to vary its prices region- 
ally as the cable companies do. 
BT is required by its licence to 
charge the same for a local call 
in Portsmouth as in the large 
London c alling zone. 

Yet BT probably protests too 
much. 

Take prices. Cable compa- 
nies invariably claim to be 
cheaper than BT. In reality, 
however, they are often more 
expensive. Many customers are 
seduced by initial savings on 
line rentals, which are invari- 
ably cheaper with cable than 
BT, and by cable operators’ 
claims that they are cheaper 
for a “typical” residential 
phone bilL 

Since the cable companies 
have different tariffs, it is 
impossible to generalise. The 
chart compares the weekday 
residential tariffs of Video tron, 
a cable operator covering 
much of London and Hamp- 
shire, with those of BT and 
Mercury. 

Videotron is more expensive 
than BT for many national 
calls made during the day. 
Mercury - accessed through a 
BT line - is for cheaper than 
Videotron for all long-distance 
calls. Moreover, Videotron 's 
cheap rate starts much later in 


Cost of a chat; how the competition compares 





- *1 

Weekday 3 minute caR (pence) 




VhSeotron 

Mercury 

BT 

local 

Daytfrne 

• 12.3 

. 

14.8 

Ewenfeg •' 

■■■44) (after 7pm)” 

- 

4.9 

Over 35ro0ee. 
Daytime 

- - 33.6 

24.7 

29.6 

Evening 

18.0 (after 7pm) 

14.T (after 8pm) 

19.7 (after epm) 

ft s 

LOROon-rana 

Daytime 

- 10222 

95.5 

me 

Evening 

. 84.6 (after 8pm) 

79.7 (after 6pm) 

88.8 (after 6pm) 


Squtok Comphny reports 


•ftee tor caHab rt www n Weotrottit Mctto Bn 


the evening than that of BT or 
Mercury - an hour later for 
local and national calls and 
two hours later for European 
calls. So Videotron customers 
may unwittingly find them- 
selves paying more than twice 

BT proclaims the 
cable companies 
to be its most 
serious long-term 
threat 

the BT rate for a call unless 
they look at the detail behind 
the company’s claim to be “at 
least 10 per cent cheaper” than 
BT for a “typical" MIL 
BT is being forced to slash 
its prices by Oftel the UK 
industry regulator. In the pro- 


cess it is putting greater pres- 
sure on its competitors as they 
seek to maintain price differen- 
tials. As the existing differen- 
tial narrows, so does the incen- 
tive for customers to switch 
from one suppUer to another. 

AT&T, the largest US opera- 
tor. has made great play of the 
trifling savings to be made by 
switching to its competitors - 
ar |H its discount plans, avail- 
able to most customers, are 
cleverly designed to boost loy- 
alty. BT, which last year 
forged an alliance with AT&T’s 
principal rival. MCI, is fast 
learning the tricks of the US 
pricing and marketing trade. 

The numbers of cable sub- 
scribers cited above also need 
to be put in perspective. BT 
still has 85 per cent of the UK's 
telecoms market It is cur- 
rently adding new lines at a 


foster rate than the cable com- 
panies*. its net monthly growth 
is about 60,000 lines, against 
less than 40.000 for the cable 
companies. BT*s mobile phone 
offshoot, Cellnet. has 1.2m sub- 
scribers - more than twice as 
many as all cable phone users 
put together. 

Furthermore, the ban on BT 
carrying entertainment is 
unlikely to endure indefinitely. 
The House of Commons trade 
and industry select committee 
recently urged the government 
to set a firm date of 2002 for 
lifting the ban nationwide. The 
Cable Television Association 
accepts that the cable industry 
has little to gain from contin- 
ued uncertainty and supports 
an eventual end to the ban. 

The challenge For the cable 
companies is to become more 
than "cheap BTs" in their role 
as telecoms suppliers. On the 
residential side, pay-per-view 
and video-on-demand services 
across telecoms wires are 
being tested, with operators 
promising commercial services 
in the near future. 

I f the cable companies can 
provide interactive ser- 
vices giving customers 
access to Hollywood mov- 
ies and home shopping soon, 
they will steal a march on BT. 
But dates are vague, and prices 
have yet to be revealed. 

At the outset, cable opera- 
tors concentrated on the resi- 
dential market, where joint 
marketing of TV and telephony 
appeared to have most to offer. 
However, they are now also 
taking the business sector seri- 
ously. London's operators have 
come together in a “London 
Interconnect” consortium, 
offering data communications 
services. Videotron. which 
holds a telephony franchise in 
Westminster and the City, has 
launched a desktop television/ 
information service, upgrading 
personal computers with a 
card that gives users access, on 
their screens, to TV channels 
and information databases 
such as a new Reuters service. 

But the corporate sector is 
the fiercest part of the tele- 
coms market. It will be an 
uphill struggle to win a big 
share of business against the 
many new operators - most of 
them US-owned - building net- 
works and offering services. 

That leaves the residential 
sector, where the cable compa- 
nies are the only phone opera- 
tors besides BT with their own 
fixed networks. For the domes- 
tic consumer, competition 
means greater downward pres- 
sure on prices and in time a 
wider range of services - some 
compensation for the bulldoz- 
ers blocking the pavements. 


LETTERS TO THE EDITOR 

Number One Southwark Bridge, London SE1 9HL 

Fax 071 873 5938. Letters transmitted should be clearly typed and not hand written. Please set fox for finest resolution 

High-speed rail still an option in US 


From Mr Joseph S. Sihen. 

Sir, Richard Tomkins con- 
cluded in his article, "Fast 
trains are a long time coming” 
{August 29), that in the US “it 
is now accepted that the pri- 
vate sector alone will not build 
high-speed railways”. 

His conclusion Is correct. 
However, his assertion that the 
problem facing US high-speed 
rail projects is that “most 
Americans never take trains” 
is off the mark. Where fre- 
quent, convenient, and com- 
fortable service is offered, 
Americans will ride trains in 
great numbers. This is evident 


on at least four popular 
Amtrak routes - New York to 
Washington, New York to 
Albany, Chicago to Milwaukee, 
and Los Angeles to San Diego. 
But the service must be offered 
in order to attract passengers. 

Over the past two decades, 
the US preoccupation with 
high-speed rail has been 
focused on multi-billion dollar 
dedicated right-of-way solu- 
tions based an the Japanese. 
French and German models. 
All of these projects, requiring 
huge investments, have foiled. 

Neither the private nor the 
public sectors can or will raise 


the funds necessary for such 
expensive undertakings. Oper- 
ating high-speed rail service on 
existing track has come to be 
recognised as an achievable 
solution. This “incremental 
approach” is based on the suc- 
cessful Swedish model. Tom- 
kins is correct in saying this is 
not easily done. But combining 
service-proven tilt trains like X 
2000 with the upgrading of 
existing track, new signalling 
to govern high-speed trains, 
unproved crossing protection, 
even the addition of entirely 
new track to increase capacity 
- all are affordable when com- 


pared with the cost in dollars 
and in time of building new 
railroads for high-speed trains. 

The Northeast Corridor link- 
ing Boston, New York, and 
Washington will be tbe first US 
high-speed rail corridor devel- 
oped using the “incremental 
approach". I believe that its 
inevitable success will be a 
model for other projects 
around the US. 

Joseph S. SUien. 
vice president, business 
development. 

ABB Traction fnc, 

1818 Market Street, 

Suite 3750, Philadelphia. US 


The market always wins I No pact in Mauritius 


From Mr Stephen Butler. 

Sir, Samuel Brittan, in "Call- 
ing the bond market bluff” 
(Economic Viewpoint, Septem- 
ber 29), is either not saying 
anything or he is saying some- 
thing wrong. 

In judging whether antici- 
pated levels of inflation require 
monetary tightening, it is of 
course always tempting for any 
individual - not just central 
bankers - to imag ine that he 
or she has stumbled upon an 
indicator which knows better 
than the market as a whole. No 
sensible person denies that this 
is possible. 

The real question is: which 
do you find, on average, to be 
more trustworthy - the com- 
bined judgment of thousands 
of such individuals, or that of 
one or a few who have got 
themselves installed by politi- 
cians in central banks? 

Tim Alan Greenspans of this 


world, who might actually see 
something on the horizon that 
the rest of us miss, will 
unfortunately always be rare 
birds; and nothing good mu 
come of flattering central 
bankers that they share such 
vision. 

Mr Brittan should not need 
to be reminded that, on aver- 
age. the daily plebiscite of 
expert opinion that is a market 
will always beat any one guess 
at what will happen next. 

The principal danger of cen- 
tral banking is not that one 
might begin to follow this opin- 
ion, “as If it were the word of 
God” - it is rather the risk of 
becoming too sure of one's own’ 
predictive abilities, and 
attempting to play that mighty 
role oneself. 

Stephen Butler, 

Jesus College, 

Cambridge 

CB58BL 


Keep India plague in perspective 


From DrShobhana Madhaoan. 

Sir, I warmly congratulate 
you on the sensitivity and 
practicality of your editorial. 
“Don't panic” (September 28). 
Would-be travellers can feel 
reassured, and many In dians 


will be glad to see the image of 
“pestilence-stricken multi- 
tudes" put for once in a proper 
perspective. 

Shobhana Madhavan, 

28 Newborn Street, 

London SE11 5PJ 


From DrNavin Ramgoolam. 

Sir, I was proud that Mauri- 
tius should emerge with such 
warm approval from the pages 
of your newspaper (Survey, 
September 27). 

The achievements of the 
Mauritian people since inde- 
pendence are such that the 
nation can be justly proud of 
them. It is generally the lot of 
a small country (as the recent 
experience of Haiti shows) only 
to come to international atten- 
tion after natural disasters or 
political strife. But the success 
of Mauritius is underpinned by 
its people's belief in democracy 
and law. It is the patient 
achievement of countless thou- 
sands of Mauritians, often in 
spite of official discourage- 
ment. This success has not 
been created in 10 years and 
cannot be claimed exclusively 
by the present government or 
its prime minister. 

Moreover, as your correspon- 
dents remark, underlying this 
improvement is a serious and 
growing concern. For although 
the Mauritian people have not 
lost faith in democracy, it is 
widely believed - from numer- 
ous instances - that the gov- 
ernment of Mauritius has. 

At the last election in 1991, 1 
called publicly for interna- 


tional observers because I 
believed then that electoral 
malpractices were bound to 
occur. The prime minister 
refused this request I and oth- 
ers have renewed that call 
because the dangers we per- 
ceived have not diminished. 
The prime minister has 
recently announced, after 
strong pressure, some changes 
in the electoral procedure 
which would help to safeguard 
its integrity. We do not believe 
that is enough. Public confi- 
dence in the transparency of 
elections must be fiilly pre- 
served if improvements which 
your correspondents found on 
their recent visit are to be 
maintained. 

Finally, may I take this 
opportunity of stating that, 
contrary to what your survey 
states, no pact between me and 
the prime minister, whereby 
the prime minister would 
remain in office for several 
years, has been agreed, nor 
would any such agreement be 
acceptable to me. the party I 
lead, or tbe vast majority of 
the Mauritian people. 

Navin Ramgoolam, 
leader of the opposition, 

85 Sir S Ramgoolam St, 
Fort-Louise. 

Mauritius 


Capital gains proposal would encourage retention of shares 


From Mr HMF Simpson. 

Sir, The Confederation of 
British Industry’s proposal for 
the coming Budget that 
long-term shareholdings 
should be free of capital gains 
tax is welcome (“CBI calls for 
£lbn support in Budget", Sep- 
tember 28). One effect would be 


to encourage senior executives 
who receive shares through 
executive options or other 
incentives to hold on to thwn. 

The CBI, in its May 1994 
paper on long-term remunera- 
tion for senior executives, 
wishes directors to be "encour- 
aged" to retain their sharehold- 


ings, but there is no effective 
way in which this can be done. 
Companies cannot force execu- 
tives to retain their shares if 
they have been obtained 
through a tax approved option 
scheme as the Inland Revenue 
regards this restriction as con- 
trary to the Taxes Act. 


But a long-term CGT-Frce 
opportunity of. say, 10 years, 
would be exactly what Is 
required to promote share 
retention by executives. 
HMF Simpson, 

Buck Consultants. 

11 York Place, 

Leeds LSI 3DS 


i ? * a 1 
H * ’ 


- ni i : 


viU 


.. *i* i - 







financial times Monday October 


3 1994 


l-l.- « 


■ -*• i 

; r ' 

’■V.- - 

K* , 


FINANCIAL TIMES 

P 06 Southwark Bridge, London SE1 9HL 
Tel: 071-873 3000 Telex: 922186 Fax: 071-407 5700 

Monday October 3 1994 


Back from 
the brink 


Judged by what might have 
happened, this weekend’s US-Japa- 
nese trade agreement marks a vic- 
tory for common sense. The two 
sides have averted the immediate 
danger of a trade war which 
would have seriously damaged the 
global economy and sent shock- 
waves through financial markets. 
They have also refrained from 
resorting explicitly to managed 
trade, which would oblige Japan's 
government to deliver a fixed 
share of its national market to US 
exporters, at the expense of other 
trading partners. Instead, there is 
at least a possibility that the 
agreement may pave the way for 
beneficial Japanese liberalisation 
on a multilateral basis. 

However, the deal marks a 
truce, not an armistice, in the hos- 
tilities which have embittered US- 
Japanese relations and bedevilled 
the world trade system for almost 
a decade The risk of a renewed 
flare-up remains, most obviously 
over cars and car parts, where no 
agreement has been reached. 
Here, the US continues to bran- 
dish the threat of eventual trade 
sanctions, albeit in the form of its 
Section 301 legislation, rather than 
of the more draconian Super 301 
mechanism. Much more remains 


to be done by the US and Japan if 
a durable return to stability in the 
world trade system is to be 
assured. 

The most encouraging augury - 
and the breakthrough which 
unlocked agreement at the week- 
end - is the US decision to aban- 
don its insistence on quantified 
measures of foreign penetration of 
Japanese markets. Tokyo had 
rejected these demands from the 
outset, on the grounds that they 
amounted to numerical import 
targets. Though Washington 
denied this, it failed to dispel sus- 
picions that it was seeking to 
coerce the Japanese government 
into cartelising its market for the 
benefit of US exporters. 

Competitive access 

Instead, the negotiators have 
agreed on a combination of 
actions by Tokyo to enhance com- 
petitive access by increasing mar- 
ket transparency and relaxing reg- 
ulatory restrictions, notably in 
telecommunications, medical 
equipment and insurance. The 
agreement also envisages that the 
benefits of such liberalisation 
should be available to all foreign 


competitors, not just US produc- 
ers. 

As well as honouring its com- 
mitment to greater openness, 
Tokyo needs firmly to entrench 
the principle of multilateralism. 
Failure to do so would Invite accu- 
sations of favouritism from other 
trading powers - notably the EU - 
and pressures to reach bilateral 
deals with them which would frag- 
ment the global trade system. The 
most effective solution is for 
Japan to table this weekend’s con- 
cessions in the Gatt. Japan should 
also demand that the US seek to 
resolve any future bilateral trade 
differences through negotiation in 
the World Trade Organisation - 
or. if necessary, through the 
strengthened dispute settlement 
procedures planned for the body. 

Uruguay ratification 
The priority for the US should 
be to facilitate that course by 
swiftly ratifying the Uruguay 
Round world trade agreement. 
The deal with Japan should help 
that process in two ways. First, it 
removes a distraction which has 
absorbed far too much of the Clin- 
ton administration's political 
energy; second, to the extent that 
it redeems the administration's 
reputation for inept and irresolute 
handling of international eco- 
nomic policy, it should strengthen 
its hand in dealing with an 
increasingly recalcitrant Con- 
gress. 

Nonetheless, the hurdles to rati- 
fication remain daunting. Even if 
the administration can overcome 
the recent delaying tactics of Sen- 
ator Ernest Hollings, the chair- 
man of the Senate commerce com- 
mittee, Congress seems unlikely 
to vote on the Uruguay Round 
until after the November elec- 
tions. There is a risk that virulent 
partisanship conld then induce 
many Republicans to vote against 
the round simply to frustrate the 
administration's agenda. 

President Bill Clinton has com- 
pounded his difficulties by not 
selling the round aggressively 
enough to Congress and the Amer- 
ican people. He needs to build 
swiftly on this weekend's agree- 
ment by spelling out clearly what 
is at stake. No US congressman 
should be left in doubt about the 
size of the gains which the Uru- 
guay accord offers the US econ- 
omy - or of the costs if it were 
allowed to fail 


A private 
nuclear future 


The review of the nuclear power 
industry which the UK govern- 
ment has been conducting over 
the past four months has thrown 
up many complex and emotional 
issues. But they can all be boiled 
down to two basic questions. Does 
the UK need to build any more 
nuclear power stations? Should 
the nuclear power generation 
industry be privatised? Of these, 
the second is much the more 
important 

From the nuclear industry’s 
point of view, this is a good 
moment to address both ques- 
tions. The two state-owned compa- 
nies, Nuclear Electric and Scottish 
Nuclear have made impressive 
progress towards overcoming the 
profligacy and mi$judgments of 
the past. They now account for a 
quarter of the electricity con- 
sumed in Britain, and they can 
produce it at a price which is 
beginning to approach open mar- 
ket levels. The near-completion of 
Sizewell B also suggests that the 
industry's technical abilities are 
alive and well. 

At a time when the government 
is committed to reducing atmo- 
spheric pollution, nuclear can also 
put up a legitimate environmental 
case that it is “cleaner" than fossil 
fuel plants. 

On the other hand. Britain has a 
growing surplus of power genera- 
tion capacity, and though the 
nuclear component of that will 
shrink as first generation Magnox 
reactors are phased out, there 
should be no automatic presump- 
tion that they will be replaced 
with further nuclear plant 

Decommissioning cost 

Another complication is the 
radioactive waste from nuclear 
power stations, and the cost of 
decommissioning them when they 
reach the end of their lives. Nei- 
ther of the two state-owned com- 
panies is fully provisioned for 
these costs: their liabilities are 
being covered partly by subsidies 
from the electricity market partly 
by the taxpayer. Although there is 
a prospect that the newer power 
stations will be able to provision 
themselves, this may never be the 
case with the old Magnox stations 
whose economics are so doubtful 
that they will have to remain in 
government hands whatever hap- 
pens to the rest of the business. 

On the face of it, the case for 


privatisation is thus not strong. In 
its present shape, the industry is 
not capable of operating commer- 
cially because of its huge inher- 
ited liabilities and operating costs. 
The financial markets remain 
deeply sceptical about the risks of 
nuclear power. 

But all this should not deter the 
government from exploring ways 
of reshaping the industry into a 
form that could become fully com- 
mercial. The managements of both 
state-owned companies are keen 
to be privatised, and have put for- 
ward detailed cases in support of 
their ambitions. 

Investor credibility 

The main aim of the review 
should be to identify those parts of 
the generation companies which 
are capable of standing on their 
own feet and creating out of them 
businesses that would have credi- 
bility with investors. This would 
include the more efficient AGR 
stations and Sizewell B. And it is 
through the privatisation of the 
business rather than by govern- 
ment diktat that the future of 
nuclear power must be decided. 

Making privatisation work will 
depend on resolving two problems 
that affect the commercial viabil- 
ity of nuclear power. First, failure 
to align prices with wider social 
costs and benefits can lead to dis- 
torted outcomes. Thus If nuclear 
plant is required to bear the full 
environmental costs including 
those of decommissioning and 
spent fuel storage, the same must 
apply to other forms of electricity 
generation. Otherwise competition 
would not be equal. 

Second, nuclear power faces 
unique political risks against 
which no private operator could 
hope to insure itself. This problem 
needs to be addressed by govern- 
ment if a privatised industry is to 
invest in efficient new generating 
capacity. Provided these problems 
are solved, privatisation would be 
appropriate and should be work- 
able. The management of these 
companies would be best placed to 
decide whether further develop- 
ment of nuclear power was viable. 

The truth is that there is no 
special case for nuclear power, 
any more than there was for coal 
But if the managers of the indus- 
try want to go private, and inves- 
tors are prepared to back them, 
they should be given the chance. 


T he European Commis- 
sion has moved beef and 
grain mountains, bat 
further reform of the 
Common Agricultural 
Policy Is an altogether more painful 
prospect 

This did not stop the Commission 
last week publishing a report by an 
independent panel erf experts callin g 
for such reforms. The Commission 
distanced itself, officially, from the 
report's conclusions - produced by 
experts from Belgium, Denmark, 
France, Germany, Greece, Sweden 
and the UK - and watched as a 
wave of protests by farmers con- 
firmed their resistance to further 
CAP reform. 

But it is dear that the report will 
be used by factions within the Com- 
mission to stimulate debate on an 
overhaul 

The forming industry is still try- 
ing to absorb the shock of sweeping 
reforms brokered by Mr Ray Mac- 
Sharry, former agriculture commis- 
sioner, two years ago. But many 
farmers privately acknowledge that 
further reforms are inevitable if the 
European Union is to meet its com- 
mitments under the General Agree- 
ment on Tariffs and Trade and its 
ambitions to enlarge eastwards. 

The enormous burden of the CAP 
on the European consumer and tax- 
payer is also a powerful argument 
for reform. According to the Organi- 
sation for Economic Co-operation 
and Development, the CAP cost 
each person in the ED $386 last 
year. This cost represents an aver- 
age subsidy of $15,400 for each 
full-time agricultural worker, or 
$980 per hectare of farmland. 

The extent of these subsidies has 
become transparent as part of the 
MacSharry reforms under which 
fanners are paid direct compensa- 
tion for the price cuts and the idle 
land they have to endure. There is 

nothing nmisnal about thic scale Of 

support Indeed, with the exception 
of New Zealand and Australia, all 
OECD countries subsidise their 
agriculture heavily. 

But world fanning markets are 
about to change, with the scheduled 
entry into force of the Uruguay 
Round world trade agreement early 
next year. Many form experts, 
including the UK's National Farm- 
ers' Union, are unconvinced by the 
Commission's assurances that the 
1992 reforms will be enough to meet 
the required cut in the volume of 
subsidised EU exports under the 
Gatt deal 

Indeed, debate over the future of 
the CAP was sparked in the UK six 
months ago by an NFU study pres- 
enting members with stark choices 
over the future of form policy. 

The sceptics argue that reduc- 
tions in price support - together 
with “set-aside", under which 15 per 
cent of arable land is taken out of 
cultivation - win be insufficient to 
offset annual increases in output of 


Trouble down 
on the farm 

As the EU expands eastwards, Alison Maitland and 
Deborah Hargreaves examine the need to reform the CAP 



cereals per hectare. They expect 
beeT production, too, to exceed the 
Gatt Tin-life; for subsidised exports by 
the end of the decade. Such con- 
straints, the NFU argues, will pres- 
ent formers with a tough choice 
before 2000: either production con- 
trols will have to be strengthened, 
or price support through interven- 
tion, the narriinai component of the 
CAP, will have to be abandoned. 

But the freeing of trade, which 
will expose EU formers to greater 
competition, is not the only threat 
to the cosy world of the CAP. While 
Austria, Finland, Norway and Swe- 
den’s accession to the EU next year 
should be broadly neutral finan- 
cially, the eventual absorption of 
prospective members from central 
and east Europe poses an enormous 
rhaiipng p Eventually their farming 1 
industries could be fiercely competi- 
tive, but they are currently in 
severe decline because of the loss of 
traditional markets in the former 
Soviet Union and the collapse of 
state distribution systems. 

The EU is committed to bringing 
these nations into the fold. In Ger- 
many, the most fervent advocate of 
enlargement to the east, there is 


growing political recognition that 
this expansion would involve a re- 
examination of the CAP. 

Agriculture officials in Brussels 
are drawing up plans this aut umn 
to help get east Europe’s form sec- 
tor back onto its feet They have a 
tough task, given the conflict 
between the ElFs desire to prevent 
political unrest in the east and its 
concern to protect its own formers. 

Yet extending the CAP to east 
Europe would be beyond the 
resources of the EU. An over- 
stretched CAP budget was one of 
the driving forces behind the Mac- 
Sharry reforms. It could re-emerge 
as a pressure point in its own right, 
long before the accession of the first 
central European countries. Com- 
mission officials say inflationary 
pressures are building up which 
could break the spending ceiling 
next year. This could bring renewed 
calls for a renationalisation of the 
form budget as suggested in last 
week’s CAP report But such pres- 
sure will be resisted by many gov- 
ernments and form groups. 

Tied into the budget debate are 
growing public demands in north- 
ern Europe for forming to be kinder 


to the environment such as using 
fewer chemical inputs. Environmen- 
tal measures were built into the 
1992 reforms for the first time. But 
this has only encouraged lobbyists 
to push for all payments to formers 
to be tied to their adopting “green” 
practices. 

Together these forces add up to a 
compelling case for overhauling the 
CAP. Yet among the Commission's 
agriculture officials there Is a stri- 
king public reticence to debate the 
issue. Mr Rene' Steichen, the outgo- 
ing agriculture commissioner who 
has presided over implementation 
of the MacSharry reforms, says it 
would be wrong to create fresh 
uncertainty in the farming commu- 
nity when the reforms are working 
so well. He cites foiling production 
- this year's EU harvest Is forecast 
at 160m tonnes compared with 185m 
tonnes in 1991 - and drops of 52 per 
cent and 77 per cent repectively in 
the grain and beef mountains over 
the past year. 

Mr Steichen would like to see cuts 
in the high level of compensation 
paid to the best-off formers for set- 
ting land aside. This compensation 
level was conceded by the Commis- 


sion In 1992 only under pressure 
from the farm lobbies. He is also 
working on changes to sectors left 
untouched in 1992. such as wine. 
But provided these reforms prove 
effective, he says, "I don't think 
there's a need to change the CAP.” 

Mr Steichen's view is not shared 
by all of his Commission colleagues 
as last week's CAP report shows. 
The report was ordered by officials 
in the Commission's economics and 
financial affairs directorate as a 
way of encouraging discussion on 
CAP reform. 

However, many EU members are 
also hesitant about broaching farm 
reform. Any suggestion that the 
1992 reforms might be insufficient 
to meet the Gatt commitments 
could risk a trade dispute with the 
US in the run-up to ratification of 
the Uruguay Round accords. 

Moreover, agreement to the agri- 
cultural part of the Gatt deal was 
wrung from France in exchange for 
a commitment by the Commission 
not to increase the level of set-aside 
without full compensation. The 
French say the exclusion of s mall 
EU farmers from set-aside has left 
their big grain producers bearing 40 
per cent of the total burden of set- 
aside. 

The lack of political will for fur- 
ther reform may also be linked 
partly to the forthcoming elections 
in Germany and France. 

G iven these conflicts, it 
will be difficult to 
make even mild 
changes to the CAP, 
such as deeper cuts in 
support prices, without extra com- 
pensation for formers that would 
overstretch the budget. 

Tacitly, the need for a new 
approach to the CAP in the light of 
the east Europe issue is acknowl- 
edged at the Commission. The issue 
is likely to be back on the agenda in 
1996 when the enlargement debate 
will be more pressing. But Ideas for 
for-reaching reform, such as paying 
farmers a one-off lump sum in 
exchange for abolishing all support, 
appear to be out of line with Brus- 
sels' thinking. 

UK officials, serving a govern- 
ment that says it would ultimately 
like the 37-year-old CAP abolished, 
argue that the policy’s staying 
power cannot be underestimated. 
It has never collapsed under the 
weight of its contradictions," said 
one. 

Indeed, the MacSharry reforms 
have arguably given it a longer 
lease of life by making it easier to 
adjust price support, set-aside levels 
and compensation while leaving the 
system’s foundations intact. Mr 
MacSharry is convinced the CAP 
will still be in (dace in 2010. “I see a 
fine-tuning but no revolutionary 
change," he said. “There's no doubt 
that while there will be a European 
Union there will be a CAP.” 



When the Bretton 
Woods institutions 
were organised 50 
years ago, their task 
of helping rebuild a 
ravaged Europe and 


Challenge of change 


PF R^oi ^ T f bringing order to 

-T -G/tOLZ/V-'l L. .L. olnKal annmnmi* 


VIEW 


the global economic 
system was clear. 
Though probably the tallest order of 
its kind in modern times, they did 
the job and did it welL 
Today, the World Bank and the 
International Monetary Fund face 
different challenges. Fifty years ago 
we were dealing with less than a 
quarter of the world's economy. 
Today, the developing world and 
transition economies account for 
nearly half of global output 
Today the challenge is develop- 
ment and transition, to spread pros- 
perity. The price of failure is just as 
high, perhaps higher. But the bene- 
fits of success have never been 
greater. 

Both the IMF and World Bank 
need to look anew at how they can 
contribute. For the IMF, it is a mat- 
ter of maximising the economic 
reform it can support The Bank 
must focus on bringing more people 
into the development process - as 
participants in planning and as ben- 
eficiaries of progress. 

The IMF is achieving real results 
in helping Russia and the other 


transition economies reform and 
rebuild. The carrot of financial sup- 
port has a tremendous Impact But 
there is still much to be achieved. 

We have asked the IMF to go one 
step further to support the kind of ■ 
comprehensive reforms needed for 
foil transition. Increasing access to 
IMF resources for countries commit- 
ted to strong reform measures - in 
eastern Europe, the former Soviet 
Union and around the developing 
world - can increase the incentive 
to take the difficult steps toward 
productive market-based economies. 
Extending the Structural Transfor- 
mation Facility is also critical to 
reinforcing this process. 

To make their participation in the 
world economy and monetary sys- 
tem complete, all member countries 
should have the rights and benefits 
of membership of the IMF. The US 
has proposed bringing equity to the 
allocation of Special Drawing 
Rights. Completing this issue, along 
with enhancement of support for 
reform, will be central both to our 
meetings in Madrid and to the 
future of the IMF. 

Stability in the world economy is 
important to the prospects for the 


developing, transition, and industri- 
alised economies. The Group of 
Seven finance ministers are com- 
mitted to strengthening their policy 
coordination efforts. There is a cru- 
cial role for the IMF in this process. 
Nevertheless it is our view that a 
flexible process of co-operation, not 
fixed exchange rates or target 
zones, is the best way forward. 

Just as we have learned that aus- 
terity is no substitute for careful 
adjustment, we also know that 
broad policy changes are not 
enough for sustained and sustain- 
able development and growth. At 
the heart of economic activity and 
productivity are more basic ques- 
tions. Are workers educated? Are 
they healthy? Is the population 
growing too fast for the economy to 
ever catch up? 

There are no easy answers. But 
with lbn people in the world exist- 
ing on Less than a dollar a day, we 
most start somewhere. This is the 
World Bank's challenge. 

The Bank should start by putting 
people first, with more attention to 
health, population control and edu- 
cation, particularly for women. It 
must begin to utilise the private 


sector better, supporting and not 
supplanting the strongest available 
force for development And it must 
support bottom-up development. 
Micro-enterprises, for instance, can 
be a remarkable tool for driving 
development 

The Bank is turning in this direc- 
tion. More information about Bank 
loans and operations is available to 
the public. More concern has been 
focused on the resettlement implica- 
tions of large projects, Loan quality 
is being addressed by strengthening 
oversight and concentrating on 
coherent approaches to develop- 
ment in each country. These 
changes must be deepened and 
become part of the Bank culture. 

In addition, the changes being 
implemented at the Bank must be 
adopted by the regional develop- 
ment banks. 

The upcoming 11th replenishment 
of the International Development 
Association offers the opportunity 
to strengthen the development 
Impact of the new direction in Bank 
practices. 

Our national security institutions 
are changing to face the new chal- 
lenges. But our economic institu- 


hppipi* 

V'' ■ *•' .vajH 

: .jjjKPO 





Bentsen: flexible co-operation 

tious are only just beginning and 
must now commit themselves to 
making these new approaches a 
way of life. 

Lloyd Bentsen 

The author is US Secretary of the 
Treasury n 


Observer 


Turning up 
the heat 

■ This year's meetings of the 
International Monetary Fund and 
World Bank in Madrid are 
attracting a less courtly breed of 
demonstrator than past annual 
beanos. 

Lewis Preston, the World Bank 
President, narrowly missed having 
a custard pie - cunningly disguised 
as a birthday cake to mark the 
Bank's 50th anniversary - pushed 
in his face at a weekend press 
conference. Security staff 
intercepted the missile and quickly 
bundled out the party poopers 
chanting “50 years is too much”. 

Perhaps this near miss 
encouraged Preston to take a swipe 
at one of his old banking pals, Paul 
Volcker. the former Federal Reserve 
board chairman. Maybe it has 
something to do with his great 
height, but Volcker has always 
appeared above criticism In the 
arcane world of international 
monetary affairs. However, Preston 
couldn't resist a dig when asked to 
comment on some of Volcker’s past 
proposals for reorganising the 
World bank. “Volcker is an old 
friend and like everybody else he 
gets stuck in time,” said the World 
Bank’s 68-year-old president. 

Britain’s chancellor Kenneth 
Clarke was not much kinder. After 
hearing Volcker express a clear 
preference far greater order in 
world foreign exchange markets. 


Clarke concluded that he “was 
struck how much times had moved 
on”. Sic transit gloria. 


Yesterday's man 

■ If alarm bells are not ringing in 
Britain’s diplomatic service then 
they should be. Has anybody 
noticed that Sinn Fein leader Gerry 
Adams, who will be in New York 
tomorrow to fall out with Ulster 
Unionist MP Ken Magmnis on the 
Larry King Live chat show, is going 
to be just a cab ride away from 
South Africa’s President Mandela? 

Mandela is on his first state visit 
to the US and is busy shaking 
hands with all sorts erf business 
folk. What better way for Adams to 
project his public image as Ireland's 
answer to Nelson Mandela than to 
arrange a meeting with the great 
man himself. Much belter than 
trying to get President Bill Clinton 
to Invite him to the White House. 


Female pitch 

■ One unfortunate casualty of the 
ongoing debate about the quota of 
women MPs in the Labour party 
was yesterday’s traditional 
pre-conference football match 
between the Labour party and Fleet 
Street The match degenerated into 
a force because Labour insisted on 
fielding three female MPs led by 
Kate Hoey, a former PE teacher. 

The only time Labour looked like 
scoring was when Hoey was 



'Brian suspects Mr Kempton 
of only pretending to be on 
street patrol' 

awarded a rather dubious penalty. 
Her first attempt went over the bar 
and she was given a second go 
because the goalkeeper - the FT’S 
David Good hart who boasts a clean 
sheet for the Hampstead Heathens 
this season - had moved off the 
line. Her second effort dribbled in 
and Goodbart was given a special 
award for football chivalry.... 


Executive panic 

■ What is upper-most in the minds 
of the captains of industry who 
have made the long trip north to 
Labour's Blackpool conference? 


National Power gave the game 
away when it invited one of shadow 
chancellor Gordon Brown's staff to 
its conference party. In a comer of 
the card offering drinks and light 
refreshments at The Imperial a 
National Power employee had noted 
the reason for the invitation. 
Scrawled in pencil was the phrase 
“executive share options". 

Meanwhile, Labour's success in 
sucking more money out of the 
corporate sector has not pleased all 
the comrades. Dennis Skinner, the 
leftwing “beast of Bolsover” was 
incensed by the discovery that 
Marconi is sponsoring a reception 
for the party’s national executive 
committee tonight He has made it 
quite clear that he and Tony Berm, 
the other pillar of the left wing, are 
not going to be on parade at any 
booze-up sponsored by a company 
in the armaments business. 


Body building 

■ Welcome signs of movement at 
The Body Shop. Texan Gwen Gober, 
who professionalised Kingfisher’s 
public relations, has been recruited 
to help the embattled cosmetics 
group rebuild its 
enviromnentaHy-friendly public 
image. She is being brought into 
help ease the strain on Gavin 
Grant, the former architect of the 
RSPCA’s controversial dead dogs 
and ponies advertising rampaig n , 
who has not had much luck 
persuading Anita and Gordon 
Roddick to love journalists. 


For starters, Gober must try to 
prevent the Roddicks from 
continually referring to City 
financiers as “pin-striped 
dinosaurs”. Such descriptions may 
be well deserved, but as Gerald 
Ratner can testify some home 
truths are best left unsaid. Body 
Shop need not go the same way as 
Ratners. 


Date rape 

■ Will Ken Livingstone, the 
maverick Labour MP who chairs 
the Anti-Racist Alliance, and John 
Prescott the deputy leader of the 
Labour party, repeat after me. 
“Thirty days have September, April 
June and November....". 

Issuing press releases dated 31 
September does not encourage 
much confidence in the accuracy of 
the rest of the contents. 


Waste recycling 

■ Browning-Ferns Industries, the 
US waste services company, makes 
much of its aversion to waste. 

Waste of money and resources, that 
is. Chairman Bill Ruckleshaus 
boasts that pictures and pages have 
been eliminated from his company's 
annual report to save costs. His 
words have been taken so seriously 
that BFI has eliminated pages 17-33 
of the report and instead reprinted 
Ruckles haus's comments from 
pages 1-16 in full Well, if it's worth 
saying once... 


\ 




SJSPJSf 




mg data lor the monitoring 01 targets, anti Die iur uie iiHiiujiug ui whmc imiimikihb- i«“- 



20 


22 Shepherd 

l52l Design & Build 


Frederick House, Fufford Road. York YOi 4EA. 
Telephone 0904 632401. Fax: 0904 610256. 


FINANCIAL TIMES 

Monday October 3 1994 


fruehauf 


Carrying the 
nation's goods 


For information call Q362Jj_95^3S3 


Stock Exchange team opens 116 cases this year 

Sharp rise in London 
insider dealing probes 


By Robert Peston in London 

There has been a sharp increase 
in possible insider trading cases 
detected by the London Stock 
Exchange, according to a Finan- 
cial Times analysis based on 
unpublished official figures. 

The exchange's surveillance 
group, whose role is to scrutinise 
every share deal for signs of 
c riminal activity, has opened 116 
cases for investigation so far this 
year, including more than 75 into 
alleged insider trading. That rep- 
resents an effective rise of 
around 50 per cent over the previ- 
ous year. 

Mr Michael Lawrence, the 
exchange's chief executive, wants 
to make the market safer for 
investors who do not have inside 
information. A series of measures 
is under consideration to ensure 
that anyone buying and selling 
shares through a London securi- 
ties house will not be severely 
disadvantaged if he or she has 
access only to published informa- 
tion. 

“We do not want to have the 
image of London as a place 
where you do insider trading 
and get away with it," he said. 


These measures will be aimed 
primarily at pre-empting insider 
trading by making better use of 
the new computerised Integrated 
Monitoring and Surveillance Sys- 
tem. which the exchange uses to 
detect unusual share price move- 
ments or anomalous transac- 
tions. 

In the past nine months, the 
exchange has referred 10 possible 
cases or insider trading - the 
making of illegal profits from 
trading in shares when in posses- 
sion of confidential price-sensi- 

Re ports and analysis Page 8 

tive information - to the Depart- 
ment of Trade and Industry. That 
compares with seven in the 
whole of 1993. 

According to officials, this 
reflects an increased detection 
rate rather than a rise in the 
incidence of the offence. 

The DTI has the power to 
appoint inspectors to carry out 
formal insider dealing investiga- 
tions under the Financial Ser- 
vices Act. after receiving case 
files from the exchange, and also 
decides whether to prosecute. 


So far this year it has 
appointed inspectors in just five 
cases, including that of Lord 
Archer's order to purchase 50,000 
Anglia Television shares, and 
there has been just one triaL 

The disclosure of the unproved 
per f ormance of the surveillance 
group is likely to increase pres- 
sure on the government to 
reform the law to improve the 
nhflncfls of achieving successful 
prosecutions a gains t suspected 
insider traders. 

The DTI and the exchange 
have been widely criticised 
because, in the 14 years since 
insider trading became illegal in 
the UK, just 23 individuals have 
been found guilty of the offence. 

Part of the reason for the low 
prosecution record is widely 
believed to lie in the criminal, as 
opposed to civil, nature of the 
misdemeanour. The burden of 
proving beyond any reasonable 
doubt, as is required in a crimi- 
nal case, that someone possessed 

incrHp infor mation when dealing 

and then proving that the motive 
for the transaction was to profit 

fr om that informatinn - and that 

there was no other motive - has 
frequently been impossible. 


Extremists’ alliance likely to 
form goverment in Slovakia 


By Vincent Boland in Bratislava 

A commanding victory in 
weekend elections by Mr Vladi- 
mir Meciar. twice Slovakia's 
prime minister, has paved the 
way for an alliance among his 
populist movement, socialists 
and extreme nationalists to form 
the country's next government 
Mr Meciar’s Movement for a 
Democratic Slovakia (HZDS) won 
35 per cent of the vote and a 
potential 58 seats in Slovakia's 
150-member parliament That is 
more than three times as many 
as the party's nearest rival, the 
former communists of the Demo- 
cratic Left (SDLj. Voter turnout 
was 75 per cent 
Mr Meciar, ousted as prime 
minister in March, appeared set 
to form the next government in a 
coalition which could include the 
socialist Union of Slovak Work- 
ers (ZRS), which won 7 per cent 
of the vote, and the extreme 
nationalists of the Slovak 


US-Japan 
trade deal 

Continued from Page l 

opening measures welcomed 
the outcome of the talks. Mr 
Ralph Gerson, president of 
Guardian International, a glass 
maker, said: “We are very 
pleased after long and difficult 
negotiations that US negotiators 
have achieved agreement-'' 


National party (SNS), which won 
5.4 per cent 

The size of the HZD S victory 
took many observers by surprise. 
In the weeks before the general 
election on Friday and Saturday, 
opinion polls had given the party 
no more th an 2 7-30 per cent of 
the vote. If HZDS forms a coali- 
tion with the ZRS and SNS, it 
will have up to 82 seats in parlia- 
ment and a majority of six seats. 

As remarkable as the success 
of HZDS was the collapse in sup- 
port for the SDL, which dumped 
to 10 per cent from 15 per cent at 
the last election in June 1992, 
before Slovakia split from the 
Czech Republic. This has effec- 
tively killed hopes of the return 
to office of the outgoing govern- 
ment, of which the SDL was the 
dominant partner. 

The outgoing prime minister, 
Mr Jozef Moravciflt, whose Demo- 
cratic Union party, a breakaway 
unit of the HZDS. garnered 8.5 
per cent of the vote, conceded 


that there was little likelihood of 
his government remaining in 
office. “It will be diffic ult for the 
current government to stay 
together,” he 

Mr Meciar is in the strongest 
position of any party leader to 
become Slovakia's next prime 
minister. His campaign was dom- 
inated by threats to stop Mr 
Moravcik’s privatisation pro- 
gramme, and by repeated attacks 
on Slovakia's ethnic Hungarian 
minority and an President Michal 
Kovac, who helped to force him 
from office in March. 

Observers in Bratislava yester- 
day predicted the instability of 
Mr Meciar’s previous govern- 
ments is likely to return if he 
forms the next government. 
Negotiations on forming a coali- 
tion are expected to take several 
weeks, during which the parties 
in the outgoing government will 
also attempt to regroup. 

Shift to extremes. Page 3 


IMF split on reserves 


Continued from Page 1 

designed to strengthen the 
reserves, and hence the import 
capability, of poor developing 
nations. 

Speaking after the G7 meeting, 
German officials made clear that 
they had dropped their opposi- 
tion to an issue of SDRs because 
the UK-US scheme was a one-off 


package, designed to correct an 
inequity which would need 85 per 
cent approval of the Fund's mem- 
bers as well as ratification by 
most countries’ parliaments. 

Mr Edmond Alphandery, the 
French finance minister, who 
had originally supported Mr 
Camdessus said he had accepted 
the UK-US plan as the only viable 
option. 


Chrysler 
to cut 
number 
of parts 
suppliers 

By Kevin Done, Motor Industry 
Correspondent, in London 

Chrysler, the US carmaker, is 
planning a radical reduction in 
the number of its first-tier com- 
ponents suppliers to about 150 
from L200 at present 

It is also expected in December 
to approve an increase in its 
expenditure programme to about 
$22.5bn (£14.2bn) for the five 
years from 1995 to 1999. That 
compares with S20bn planned for 
the period 1994-98. 

After coming close to financial 
collapse at the beginning of the 
1990$, Chrysler, the smallest of 
the big three US carmakers, has 
emerged as the most profitable 
of them, with record profits of 
S1.89bn in the first six months of 
this year. 

It has become one of the 
world's lowest-cost carmakers, 
partly as the result of reforms to 
the structure of its snpply base. 
Most of the world’s leading car- 
makers are sharply reducing the 
number of their suppliers in 
order to simplify and streamline 
their operations, but Chrysler 
has taken one of the most radical 
approaches. 

First-tier suppliers are being 
asked to shoulder much more of 
tbe research and development 
harden for new products, and in 
return are being rewarded with 
much longer-term contracts and, 
increasingly, single-source con- 
tracts. 

Mr Tom Stallkamp, Chrysler 
vice-president for purchasing, 
said the company had already 
reduced the number or its first- 
tier suppliers from 3.000 five 
years ago. 

Chrysler’s top 150 suppliers 
account for 90 per cent of its 
$27bn total purchasing of parts, 
goods, services and equipment 

It has cat the number of its 
tyre suppliers from seven to two, 
its paint suppliers from five to 
two and the number of its wiring 
suppliers from 14 to two. 

Mr Robert Eaton, Chrysler 
chairman and chief executive, 
said tbe company intended to 
concentrate on tbe core activities 
of overall vehicle design and 
development, sheet metal 
stamping and car assembly, and 
developing engines and trans- 
missions and electronics. 

It had one of the lowest levels 
of “vertical integration’' among 
western carmakers, buying in 
almost 70 per cent of the cost of 
a vehicle from outside suppliers. 

Mr Stallkamp said greater 
integration of leading ontside 
suppliers into its operations 
since 1990-91 had led to suppli- 
ers' patting forward proposals 
for cost savings totalling 3921m. 

Savings totalling 3504m had 
been approved this year and the 
company was targeting savings 
of 3750m in 1995. 

Chrysler's 322.5bn spending 
programme is expected to lead to 
a complete renewal of its product 
programme. 


Europe today 

A cokJ front associated with an active 
depression moving towards Finland will 
produce continuous rain in the Benelux, 
Germany and Franca In the wake of the front, 
a mass of cold and unstable air will be drawn 
into the British Isles and the North Sea area 
There wiH be a few sunny spells and showers, 
some of them wintry. Snow showers will occur 
along the Norwegian coast. Further inland, 
there will be sunny periods, but temperatures 
will remain unseasonably low. Most of Italy 
and the southern Alps will have frequent rain 
or thunder showers. Spain and Portugal will 
still be rather sunny and warm, but northern 
regions may have showers. South-east Europe 
will continue dry with plenty of sun and 
temperatures between 25C-33C. 

Five-day forecast 

The cold and unstable air will move further 
into central and southern Europe during the 
next couple of days. Temperatures will fall and 
most areas will have showers. Snow levels in 
the Alps will drop to 1000-1400 metres. Most 
of Scandinavia will be cold, but later in the 
week it will become steadily milder. South- 
east Europe will be warm and rather sunny all 


FT WEATHER GUIDE 


1020 1010 1000 


$ ryX 








■jT ^ 


' *5 

£fc: I 



w w A 




^ ■ : ( 


39 . 

/ Warm front Cold front _A-A- Wind spend In KPH .. ; 

Station at 12 GMT. Temperatures maximum for day. Forecasts by Meteo Oorts oft of die Netherlands 





Maximum 

Belong 

fair 

23 

Caracas 

thund 

31 

Faro 


Celsius 

Belfast 

had 

9 

Cardiff 

fair 

12 

Frankfurt 

Abu nuts 

sun 

37 

Belgrade 

fair 

27 

Casablanca 

sun 

23 

Geneva 

Accra 

cloudy 

31 

Berlin 

shower 

16 

Chicago 

fab- 

13 

Gibraltar 

Algiers 

fair 

24 

Bermuda 

Mr 

28 

Cologne 

raln 

15 

Glasgow 

Amsterdam 

rain 

12 

Bogota 

(air 

28 

Dakar 

cloudy 

31 

Hambisg 

Athens 

(air 

29 

Bore bey 

fair 

35 

Danas 

sun 

30 

Helsinki 

Atlanta 

fair 

29 

Brussels 

ram 

J4 

Delhi 

sun 

29 

Hong Kong 

B. Aires 

shower 

16 

Budapest 

shower 

21 

Dubai 

sun 

36 

Honolulu 

B.ham 

fata 

11 

CJiagen 

rain 

11 

Dublin 

fata 

10 

btantxJ 

Bangkok 

shower 

32 

Cairo 

sun 

33 

Dubrovnik 

fata 

26 

Jakarta 

Barcelona 

shower 

23 

Cape Town 

sun 

17 

Edinburgh 

hall 

9 

Jersey 


Constant improvement of our service. 
That’s our commitment. 


Lufthansa 


Kuwait 

L Angeles 

Las Palmas 

Urea 

Lisbon 

London 

Lux.bourg 

Lyon 

Madeira 


fair 

2S 

Macfckl 

fata 

24 

Rangoon 

lair 

shower 

17 

Majorca 

fair 

24 

ReyNavik 

fair 

brewer 

17 

Malta 

fata 

26 

Rio 

far 

fata 

24 

Manchester 

chower 

10 

Rome 

thund 

shower 

10 

Monte 

fair 

31 

3. Ftsco 

cloudy 

rain 

12 

Melbourne 

rain 

14 

Seoul 

fata 

rain 

8 

Mexico Cfty 

fair 

19 

Singapore 

cloudy 

fab- 

30 

Miami 

Ihund 

31 

Stockholm 

shower 

fair 

32 

Mian 

rain 

22 

Strasbourg 

rain 

sun 

26 

Montreal 

fair 

11 

Sydney 

cloudy 

fair 

32 

Moscow 

shower 

10 

Tangier 

sun 

shower 

13 

Munich 

shower 

18 

Tel Aviv 

sire 

fata 

35 

Nairobi 

cloudy 

28 

Tokyo 

fair 

sire 

39 

Naples 

shower 

27 

Toronto 

fata 

cloudy 

22 

Nassau 

(hired 

31 

Vancouver 

sun 

fata 

26 

New York 

fair 

IS 

Venice 

thund 

cloudy 

22 

Mce 

(hired 

22 

Vienna 

fata 

far 

23 

Kcosia 

atre 

34 

Warsaw 

feta 

shower 

12 

Oslo 

fata 

8 

Washington 

shower 

ratal 

13 

Parte 

rain 

IS 

Wellington 

fata 

ram 

19 

Perth 

fata 

16 

Winnipeg 

shower 

fair 

24 

Prague 

doudy 

19 

Zurich 

ratal 


THE LEX COLUMN 

Disputed rights 


Publication of the OFT -sponsored 
report by Mr Paul Marsh, of the Lon- 
don Business School, on underwriting 
commissions will set the cat among 
the City pigeons. The report concludes 
that the fired 2 per commission 
paid to underwriters is unjustified. 
Certain institutions have been anxious 
to see the document suppressed, a 
sure indication that it should be pub- 
lished as soon as possible, together 
with the responses of merchant banks 
and other interested parties. 

The mechanics of raising equity in 
the UK look inflexible when compared 
with practice in the US. There, corpo- 
rations are not obliged to offer new 
shares to existing shareholders and 
can therefore gauge the level of poten- 
tial demand before setting the price of 
new shares. Large amounts of cash 
can be raised by such book-building 
exercises in days, rather than the 
three weeks required for a UK issue. 
Fees in the US are higher than in the 
UK but tbe new shares can be issued 
at negligible discounts to existing 
share prices. That compares with a 15 
to 20 per cent discount in the UK 
which reflects the inherent market 
risks. Arguably the cost of capital is 
higher as a result 

A change to the existing UK system 
would be difficult in the light of pre- 
emption rights. But these need not be 
sacrosanct, nor indeed should they be 
an issue if the shares can be offered 
at, or close to. the market price. Mer- 
chant banks should become more 
imaginative in finding ways of circ um - 
venting the discount, rather than 
se ekin g to smother the Marsh report 
But traditional merchant banks, with- 
out the capital base or the distribution 
capacity of large integrated houses, 
have a great deal to lose if the existing 
system is changed. 

UBS 

At one level Mr Martin Ebner, the 
maverick investor whose fund has 
built up a 19 per cent stake in UBS's 
registered capital, has certainly done 
the bank a favour. Many large Swiss 
companies have rightly unwound dis- 
criminatory shareholding structures 
in recent years on the grounds that 
they are inappropriate in a modem 
world of global investment flows. 
Banks thought this presented special 
legal difficulties, connected partly 
with restrictions on foreign ownership 
of property. Mr Ebner naturally has 
an interest in preserving the status 
quo but his attack has at least forced 
UBS to look again and discover that 


Share prices (rebased) 
140 -- 



80 1 1 1 1 1 1 1 1 1 1 ■*■ *— 1 “ 
Sap S 3 1904 Oct 

Source: FT GcapMte 

no such problems stand in the way of 
a modem capital structure. 

That said, it will require extraordi- 
nary unselfishness on the part of reg- 
istered shareholders to vote away 
their privileges. The registered share 
price would inevitably fall steeply. By 
siding with Mr Ebner, shareholders 
might also increase the chances of 
him forcing management to pay closer 
attention to increasing return on 

shareholders’ funds. 

Yet although increased shareholder 
activism is welcome in the Swiss mar- 
ket, Mr Ebner is still taking thing s a 
little far. UK institutions rarely inter- 
vene directly and publicly with man- 
agement uniiMK thing s have gone man- 
ifestly wrong. Mr Ebner is behaving 
less like a concerned institution and 
more like a buccaneering conglomera- 
teur who wants to seize control on the 
basis of minority stake. Retail inves- 
tors in his fund will not thank him if. 
having used their money to buy 
expensively into UBS, he fails and has 
to sell out at a loss. 

UK utilities 

The UK water sector currently 
yields an average 5.8 per cent, a full 
1.6 percentage points above the elec- 
tricity sector. That is because electric- 
ity stocks have had such a good run in 
recent months, outperforming the 
market by nearly 25 per cent since 
May. Some investment houses have 
used the difference in yield to justify 
recommending their investors to 
switch from electricity to water. Some 
shareholders even seem to have 
heeded their brokers' advice. At the 
end of last week, the water sector was 
up 1.7 per cent on the previous Fri- 
day’s close. The electricity sector was 
down 3.4 per cent 

Such arguments only take into 


account present yields, not future 
growth. On that basis, the outlook for 
the regional electricity companies is 
better than that for their water coun- 
terparts. With ungeared balance 
sheets, the Rees are looking for ways 
to hand back their excess cash. There 
could be further share buy-back 
schemes or even one-off bumper divi- 
dends. Tbe proceeds from next year’s 
National Grid sale could also be redis- 
tributed to shareholders. Shares could ! 
be marked up in preparation for the : 
end. early next year, of the inorato j 
rium on mergers ami acquisitions in i 
th& sector. 

In the short term, as the Rees move ! 
into the closed period during which 
they cannot announce share buy-back 
schemes, their shares look set to 
underperform. In the long-term, the 
electricity groups look live-wires, the 
water stocks stagnant by comparison. 

Italy 

The Italian government has been so 
preoccupied with agreeing a budget 
that it has allowed iLs privatisation 
programme to flag. The coalition part- 
ners have squabbled over how and, 
indeed, whether groups such as Stet 
(telecoms). Enel (electricity') and Eni 
(oil and chemicals) should be sold off. 
The companies have jockeyed for posi- 
tion over which should go first Mr 
Silvio Berlusconi, the prime minister, 
last week tried to inject some momen- 
tum into the process by announcing a 
new timetable: Stet and Enel would be 
sold by June 1995. He made no men- 
tion or Eni, though the government 
later said it had not been forgotten. 

Italy clearly needs to get a move on. 
Not only do the overall budget projec- 
tions depend on privatisation proceeds 
of LlO.OOObn in each of the next three 
years: 1RI. tbe debt-laden state holding 
company which owns Stet, badly 
needs cash. But setting a timetable on 
its own is not enough. Previous dead- 
lines have slipped. 

Before Stet and Enel can be sold, tbe 
coalition needs to agree on the compa- 
nies' structures. In Stet’s case, the cen- 
tral question is whether it should 
merge with its main subsidiary' Tele- 
com Italia. In Enel's case, the ques- 
tions are whether competitors should 
be allowed into electricity generation 
and whether the distribution network 
should be split on regional lines. The 
new timetable provides a short breath- 
ing space in which such issues can be 
resolved. But It could too easily be 
wasted unless Mr Berlusconi moves 
smartly to knock heads together. 


A STRATEGIC APPROACH 

to meet issuers’ needs requires leadership 
in fixed income markets world-wide. 



British Telecommunications 
public limited company 
£300,000,000 
8V*o Bonds due 2020 

BT Finance B.V. 

USl 5375,000.000 
6!-’A Guaranteed Notes due 1997 


ALPS 94-1 Pass Through Trust 
U& $782^15,000 

I 

Pass Through Certificates 


EvidoaeiniFbciimUMivhU Inurvi 

TVnst Hnta Iwuf dhy Attmh I c— r 
KterUnbooiniaMMi * 4-1 Lnanl 


m 


The Kingdom of Spain 


US. $2,000,000000 


Euro-Commercial Paper 
Programme 


JlBtcf** 


International 
■MW Fnunce Inc. 


U& $300,000,000 


7% Notea due 1999 


tgduMMDyndinmaM, punaimJK 


ffHH# KreditanstaH 
m\Mww fur Wiedoraufbau 




© 


Nacional Financiers, SlN.C. 


USL $250,000,000 


Floating Rate Note* 
due 1999 


As the global capital markets become increas- 
ingly complex, issuers have many more choices 
when structuring transactions. That is why 
borrowers with unique strategic objectives turn to 
Lehman Brothers to meet their financing needs. 

EFFECTIVE. EFFICIENT!" SOLUTIONS 


With multi-currency expertise and the leading 
fixed income research team on Wall Street, we 
have the resources necessary to help an issuer 
determine the most appropriate pricing and 
structure for an offering. 

Tli rough 45 offices around the world. Lehman 
Brothers is strategically positioned to interpret 
market information effectively. This enables us to 


help clients meet their individual needs while 
achieving an optimum asset/ liability mix. As a 
result of our approach, we are one of the leading 
underwriters of debt securities. 

WORLD-CLASS DISTRIBUTION. 
WO RID- WIDE 


Our global sales force is in constant con met 
with institutional and individual investors around 
the world and can place an offering quickly 
and smoothly. Our success comes solelv from 
serving the interests of our diems. So. if 
you are interested in exploring new issue 
opportunities in fixed income, we are ready to 
work with vou. 


Lehman brothers 

lnICT _ IEumpc ,. a mcii|bcroi ^Wuh„»„IW*wJnc 


* 







21 




★ 


-gs- »/■•! 

Overseas Moving 


byMichaelGerson 

16 130 

TV' 


081-446 1300 FT" 



FINANCIAL TIMES 

COMPANIES & MARKETS 

©THE FINANCIAL TIMES LIMITED !9W 



Monday October 3 1994 


Fletcher King 

CHARTERED SURVEYORS 
COMMERCIAL PROPERTY 
CONSULTANTS 
London' 

071 - 493.8400 

BIRMINGHAM MANCHESTER NORWICH' 
NORTHAMPTON ' 



'' ; *CTv 

T a A . x ■' 




? >i 







MARKETS 


THIS WEEK 


Dresdner and BNP strengthen ties 


TONY JACKSON: 

GLOBAL INVESTOR 

Commodities are often regarded these days less as 
an opportunity than a threat They are seen as a 
harbinger of Inflation, and thus bad news for other 
types of asset However, Tony Jackson argues that 
they are not so much a guide to Inflation as a 
component of It Page 24. 


f PETER NORMAN: 

ECONOMIC INVESTOR 
China's economy gnaw at an 
average annual rate of 9 par cent in 
the IS years to 1993 but when It 
comes to managing change 
through economic and financial 
policy, the Chinese shy away from 
a big bang approach. Page 24. 

BONDS; 

The completion of elections has removed a major 
risk factor for both Swedish and Danish 
government bonds. However, the markets are likely 
to remain volatile in coming months, due to the 
establishment of minority governments In both 
countries and referenda due in Finland and Sweden 
on European Union membership. Page 28. 

EQUITIES: 

Monday marks an uncomfortable start to the final 
trading quarter In the UK. The market will have to 
gain up to 20 per cent in the period if it is to meet 
the most optimistic of City forecasts tor the FT-SE 
100 Index at the year-end. 

On Wall Street prices will continue to track the 
yield on the benchmark 30-year government bond. 
Page 30 

EMERGING MARKETS: 

Cross-border trading in the Caribbean should get 
some encouragement from the decision of 
commercial banking group CIBC (Canada) to offer 
for sale 45m shares in CIBC West Indies Holdings, 
its Caribbean subsidiary. Page 26 

CURRENCIES: 

Reaction to Saturday's partial deal on US-Japan 
trade talks is likely to dominate markets early in the 
week. Later, attention will turn to Friday's US 
non-farm payroll figures, which some feel may push 
the Federal Reserve into increasing interest rates. 
Page 37 

COMMODITIES: Rubber producers will be looking 
for concessions from consumers as the latest 
round of talks on a new International Natural 
Rubber Agreement begin in Geneva today. Page 25 

UK COMPANIES: 

Despite record numbers of issues pulled and a 
disturbing level of profit warnings from recent 
candidates, 1994 Is still set to break all records for 
the number of flotations, according to KPMG Peat 
Marwick. Page 22 

INTERNATIONAL COMPANIES: 

German chemicals group Hoechst faces the most 
ambitious shake-up of its management and 
operational structure ordered so far by its new 
chairman Jurgen Dormann. Page 23 


STATISTICS 


Base lending rates 37 London recent issues 35 

Company meetings 24 London share service . 38,39 

Dividend payments 24 Mgd fund service 33-36 

FT-A Worfd Indices 25 Money markets 35 

FT Guide to currencies 26 New int bond issues — 28 

Foreign exchanges 35 World stock mkt indices.. 29 


By John Gapper In Madrid 

Dresdner B ank and Banque 
Nationale de Paris plan to 
strengthen their partnership, 
established last year, by making 
joint acquisitions in European 
countries. 

The banks want to boost their 
position in markets where they 
are under-represented. 

Mr Jftrgen Sarrazrn, nhnirman 
of Dres liner’s managing board, 
said yesterday they also intend to 
merge their operations in Spain 
in the first quarter of 1995, the 


first such move they have under- 
taken. He told a press conference 
in Madrid during the IMF/World 

Bank annual meetings that the 

banks planned to form a joint 
subsidiary in Spain and buy out 
minority equity holders In BNP's 
operation. 

He said the banks, which 
reached a cooperation agreement 
In May last year and hold email 
stakes in each other, intended to 
make joint acquisitions in addi- 
tion to opening joint operations 
outside their home countries. 
There were no acquisition tar- 


gets, but in countries such as 
Italy where neither has a strong 
presence, they might try to 
acquire an existing commercial 
or Investment banking operation. 

The cooperation deal has been 
investigated by the European 
Commission on competition 
grounds, but no decision has 
been taken. The banks want to 
raise their cross-shareholdings to 
10 per cent in the long term. Mr 
Sarr azin said both banks consid- 
ered there were “some European 
countries where we could be 
stronger”. This could lead to 


added investment, the opening of 
new subsidiaries, or acquisitions. 

The most concrete move the 
two banks have undertaken has 
been to open joint subsidiaries in 
eastern Europe, including 
Prague, St Petersburg, and Buda- 
pest, but Spain would be the first 
operational merger. 

The banks have different 
operations in Spain. BNP has a 
small retail bank with 73 
branches, which Is not thought to 
be profitable, and Dresdner has a 
wholesale operation run through 
three branches. Because BNP's 


operation in Spain is 23 per cent 
owned by minority shareholders, 
the restructuring would have to 
be accompanied by a public offer- 
ing for their shares. 

The banks have established a 
joint working group to plan the 
future of the Sp anish operation. 
It is expected to concentrate on 
large and medium-sized compa- 
nies, and on private b anking for 
rich individuals. Some analysts 
have doubted whether the part- 
nership would increase either 
bank's earnings substantially. 

FT banking conference. Page 30 


London exchange 
may change rules 
on short selling 


Swiss bank feels the draught of change 



. •; ;y . nn mm a - 

Zurich broker-fund manager Martin Elmer (left) is mounting a strong challenge to directors of Union 
Bank of Switzerland, led by chairman Nikolaas Sena. Page 23. Maverick hunter. Page 16; Lex, Page 20. 


First Choice falls out with WestLB 


By Norma Cohen hi London 

The London Stock Exchange is 
proposing to amend its rules on 
the short selling of securities in 
order to limit market manipula- 
tion. Short selling is the sale of 
securities one does not already 
own. Short sellers usually hope 
to be able to buy back more 
cheaply the shares they have just 
sold. 

The exchange has been under 
pressure from the Securities and 
Investment Board, the City of 
London’s chief regulatory watch- 
dog. to review rules on short sell- 
ing. The UK Treasury has 
expressed concern because it 
believes current rules may have 
the effect of increasing the cost 
of raising capital and damage 
London as a financial centre. 

In a consultative document to 
be issued today, the exchange 
indicated it is reluctant to make 
radical changes to current rules 
which allow unrestricted short 
selling but only by market mak- 
ers - firms which agree to buy 
and sell large quantities of stocks 
in an market conditions. 

“If regulation of short selling is 
indeed needed in the UK, then it 
should be introduced with cau- 
tion, it should focus specifically 
on the areas of greatest concern 
and it should not impede the 
liquidity of the market,” the con- 
sultative document said. 

The exchange concluded that 
the potential for market manipu- 
lation through short selling Is 
greatest during an “international 
book-building” by an issuer 
whose shares are already traded. 

The exchange noted that these 
book-building exercises, common 
in the US, significantly cut the 


cost of r aising capital. In a book- 
building, the issuer announces 
the intention to sell shares at a 
future date and the advisers in 
the meantime attempt to find 
buyers. Because the price is not 
set until the day the new shares 
are sold, investors have an incen- 
tive to use all available means, 
including short selling, to drive 
the price down. 

The exchange cites complaints 
about five such exercises in 
recent years. The most recent 
were rights issues for Eurotunnel 
and EuroDisney earlier this year. 
The UK government's sale of the 
second and third tranches of its 
holdings in British Telecommuni- 
cations was also cited. 

The exchange said it had no 
conclusive evidence that short 
selling was to blame for the 
sharp drop in prices in these 
cases. It is proposing a new rule 
requiring firms to distinguish 
between short sales and outright 
sales when reporting their own 
and their clients' business to it 

The exchange is also seeking 
comments on four possible 
approaches to restrict the manip- 
ulative effect of short selling: 

• require, as in the US, public 
disclosure of the market’s aggre- 
gate short interest position; 

• ban the covering of a short 
position with shares bought in a 
secondary offering: 

• give issuers greater control 
over who is allowed to buy 
shares in a secondary offering, 
possibly requiring buyers to 
promise not to seD any of their 
existing holdings until the book- 
building is complete; or 

• allow those offering the shares 
to insist they be dealt for cash or 
purchases settled more quickly. 


By Michael Skap'mker In London 

Relations between the British 
travel group First Choice Holi- 
days and Germany’s West- 
deutsche Landesbank, which con- 
trols a 21 per cent stake in it, 
have been soured by cancelled 
strategy meetings and the failure 
of planned joint projects. 

Lazard Brothers, First Choice's 
financial adviser, is attempting to 
clarify the future of the relation- 
ship with Schroders, the mer- 
chant hank which is acting for 
Thomas Cook, itself 90 per cent 
owned by WestLB. Any attempt 
by the German bank to take con- 
trol is likely to be restated 
fiercely by First Choice. 

Thomas Cook's purchase of a 


21 per cent stake helped First 
Choice - then called Owners 
Abroad - to fight off a hostile 
takeover bid last year from Air- 
tours, a rival tour operator. 

Owners Abroad's management 
said at the time the relationship 
would enable it to make substan- 
tial cost savings through 
co-operation between Owners 
Abroad and LTU, the German 
travel company, in which 
WestLB had a 34 per cent stake. 
Owners Abroad said co-operation 
with LTU would allow it to cut 
costs through shared aircraft 
maintenance, fuel buying and 
spares purchasing and greater 
buying power in booking holiday 
accommodation. 

Owners Abroad said the tie-up 


with Thomas Cook would enable 
it to increase its sales through 
the latter’s retail outlets. 

After successfully repelling the 
Airtours bid, however. Owners 
Abroad’s chairman and manag- 
ing director resigned after disclo- 
sing that profits would be only 
half of market expectations. 

The new leadership at First 
Choice has been unable to estab- 
lish a harmonious relationship 
with WestLB. It is understood 
that quarterly strategy meetings 
between the two sides have been 
cancelled by the Germans. Few of 
the planned benefits of the link 
between First Choice and LTU 
have been realised, although rela- 
tions between first Choice and 
Thomas Cook have been warmer. 


Woolworth 
chief in 
US leaves 
after rift 

By Richard Waters In New York 

Mr William Lavin, the chief 
executive of Woolworth, has 
unexpectedly left the US retailer 
less than five months after being 
stripped of the chairmanship 
over the disclosure that the com- 
pany had falsified financial 
reports. 

Mr Lavin's departure, and the 
announcement that Woolworth is 
starting a search for a new chief 
executive from outside, throws 
further doubt on the future of the 
troubled group. Hit by growing 
losses, the company was forced 
to cut its quarterly dividend from 
29 cents to 15 cents in July. 

In a statement late on Friday. 
Woolworth said Mr Lavin's 
departure was due to differences 
with the board over the future 
direction of the company. It 
refused to say what the differ- 
ences were, and Mr Lavin could 
not be contacted for comment. 
Mr Lavin has resigned as chief 
executive, vice chairman and a 
director, “effective immediately". 
Woolworth said. 

The apparent disagreement 
over strategy throws into doubt 
the restructuring pursued in 
recent months by Mr Lavin and 
raises the spectre of further pos- 
sible asset sales to stem the 
retailer’s losses. 

Mr Lavin has slashed Wool- 
worth’s US general merchandise 
stores and sold its chain of dis- 
count stores in Canada, while 
expanding in speciality retailing 
both in the US and abroad. But 
continuing pressure on profit 
margins in the US and disap- 
pointing results in Europe led to 
a jump in the group's losses in 
the second quarter. 

The timing of Mr Lavin's 
departure, on the final day of the 
third quarter, is also likely to 
raise stockmarket concerns about 
the company's recent trading per- 
formance. 

Mr Lavin had been reinstated 
as the company’s chief executive 
in May, after stepping aside pend- 
ing the outcome of an internal 
investigation into Woolworth’s 
accounting policies. That review 
found quarterly financial reports 
in 1993 had been deliberately mis- 
stated to allow it report profits 
rather than losses. Although he 
was not directly criticised in the 
Internal report, Mr Lavin was 
stripped of the chairmanship. 

The chief executive’s job will 
be filled temporarily by Mr John 
Adams, the non-executive direc- 
tor who stepped up to become 
chairman at the time of the 
accounting debacle. 





') 


This week: Company news 


SHK PROPERTIES 

Concerns cloud 
otherwise healthy 
market sector 

Sun Hung Kai Properties, one of Hong 
Kong's leading property developers, will 
post its final results on Friday, 
effectively winding up the colony's 
reporting season. 

SHK Properties boasts one of the 
biggest land banks in Hong Kong and 
the market is looking for an an nual 
increase in earnings of around 30 per 
cent to HK$8-7bn ($1.13bn). Earnings 
per share are forecast to improve 23 per 
cent to HKS3.88. This marks a 
deceleration on the past three years, 
partially reflecting the mix of hank and 
government measures taken to cool 
Hong Kong’s overheating property 
market 

Results from the big property 
developers for last year range from a 
virtually flat performance at Cheung 
Kong, which is controlled by Li 
Ka-shmg, through to the 64 per cent 
surge reported by Sino Land, controlled 
by the Ng family. Despite the stagnant 
performance, investors were cheered by 
Cheung Koug's results which beat the 
expected 20 per cent decline. 

However, the developers go into their 
new financial year with a number of 
concerns which could dent this year s 
healthy rises. Although the government 
has called off - at least temporarily - 
its war on rocketing home prices, bank 
mortgage limits remain in place while 
interest rates are rising. 

Property prices have dropped aroimd 
10-15 per cent since April. Just after the 
government revealed its intention to 
act on rocketing home prices. 

In addition, relations between the 
developers and the government, which 
controls the supply of land, soured alter 
news of the cooling measures. 

Developers responded to the 
government’s move by forming jumbo 
consortia at the May land auction, 
picking up two plots at bargain prices. 
Their action is now the subject of an 
investigation by the independent 
Commission Against Corruption. 


Bank of Scotland 

Share price retedwtn the' 
FT-SE-A Afl-Shara Index 



BANK OF SCOTLAND 

Policy of lending 
set to pay off 

Bank of Scotland, which reports its 
interim results on Wednesday, is 
expected to show that its policy of 
lending through the recession is paying 
off. Market forecasts of interim pre-tax 
profits range from £l90m to F2fl2m . 
($319). up from Ell7.6m at the halfway 
stage a year ago. Analysts are waiting 
for earnings per share figures of 9.6p to 
i0.4p, of which about 2.lp will go in 
dividend. 

The figures are contingent above all, 
on estimates of Bank of Scotland’s bad 
debt provision. If it falls at the rate of 
other UK banks, profits would turn out 
at the higher end of the range. But 
gm tianri which never went into 
recession as deeply as other parts of the 
UK, has commensurately less potential 
to rebound. 

Other banks have achieved profit 
growth as the UK economy comes out 
of recession. But none have improved 

their results at the same time as 
i ncreasing lending and income at the 
pace of Bank of Scotland. One analyst 
forecast 9 per cent growth in total 
income in the year to this first halt The 
next fastest growing UK bank achieved 
total income growth of 7 per cent and 
the figures of one actually declined by 4 
percent. 

Bank of Scotland has had room to 
expand in that its business a decade ago 
was exclusively north of the border. 
Now more is in England and Wales 
than jn its home territory. 


OTHER COMPANIES 

Disposal loss may 
drag predicted 
Suez advance 

Suez, the French financial services and 
investment group, is to announce its 
half-year results for the year to June 30 
on Wednesday, with some analysts 
predicting profits of FFrSOOm ($15L5m) 
compared with FFrSl&n at last year’s 
interim. 

Most of the results of the principal 
companies controlled by Suez are now 
known, but much hinges on the 
accounting policy the group adopts in 
showing its position. 

One significant influence will be the 
way it handles the FFrLSbn loss on 
disposal of its stake in Vlctoire, the 
insurance group, which was bought 
by Commercial Union earlier this 
year. 

■ Hewden Stuart: Sir Matthew 
Goodwin, ch airman, can be relied on to 
give an insight into the state of the UK 
construction industry when he reports 
interim results on Wednesday. The 
Glasgow-based company is the UK’s 
biggest independent plant hire group 
and is involved in every sector, from 
housebuilding to roads and industrial 
projects. Analysts expect a sharp 
Increase in pre-tax profits for the six 
months to July 31, from £9 Am to about 
£ 13.5m ($21 .33m). Interest will focus on 
the trading outlook and what returns 
have been made from the Hireptant 
assets of BET - 24,00 items of plant and 


Suez 

Share price {FIR) 
400 



ClAJ : . 

Sep 32 1903 1994 

Source: FT tSraptitte 


29 freehold properties which Hewden 
Stuart snapped up for a mere EILm last 
year. 

■ Etam: The UK fashion retailer Is 
expected to deliver an increase of more 
than 50 per cent in interim profits to 
£3.7m ($5.8m) on Thursday. The 
company’s strategy of defending 
margins in the face of heavy 
discounting by rival fashion retailers is 
thought to be paying off Shares In the 
group, which is heavily weighted 
towards the second half, have risen 
from the year's low of 217p in April to 
well over 300p. 

■ Browning-Ferris Industries: The US 
waste services group is expected to 
publish its offer document this week 
detailing its hostile £364m ($575, lm) 
cash offer for UK-based Attwoods. 
Laidlaw, Attwoods’ largest shareholder, 
has agreed to sell its 29.8 per cent stake 
at 109p per share, and its 73 per cent 
preference holding at S5p. 


Companies In this issue 


Aeremeodco 

23 

Mr France 

22 

Adas Converting 

22 

BHF-Bank 

23 

BSkyB 

1 

BZ 

23 

Banque Hen/et 

22 

Bate 

22 

Setacom 

22 


Chrysler 

20 

Citicorp 

30 

Cominco 

23 

Darby 

22 

Ferfin 

23 

HWstown 

22 

Hoechst 

23 

Hoover Australia 

30 

Ina 

23 


Irxl Bank of Japan 

30 

Inoco 

22 

Just 

22 

Lloyds Bank 

30 

MIM Holdings 

23 

Maytag 

30 

Saint-Louis 

22 

Shell AustraSa 

30 

UBS 

23 

Waterman 

22 


This announcement appears as a matter of record only 

£ 25 , 600,000 

MANAGEMENT BUY-OUT 

WITH 

EMPLOYEE PARTICIPATION 

OF 


CENTREWEST 


CENTREWEST LONDON BUSES LIMITED 

ft! d&A&i; 



ONTAGU 

RIVATE 

QUITY 


7L* «*.*-]£, CafeLiMSta 

V 

HSBC Investment Banking Group 

Montagu Private Equity Limited 
10 Lower Thames Street, London EC3R 6AE Tel: 071-260 0923 

AMEMUlM'UUU 

Member HSBC ff) Gnvip 


AC/67 



" • gtteJi 



ing data lor tlto monitoring oi targets, ana me lur me uanuimg ui wanv imumibuib. 





22 


FINANCIAL TIMES MONDAY OCTOBER 3 1994 


★ 

COMPANIES AND FINANCE 


KPMG expects record 
year for flotations 


Baris refinances 
and restates results 

By Gary Evans 


Air France reduces 
loss to FFr2.61bn 


By Simon Davies 

Despite record numbers of 
issues being pulled and a 
disturbing level of profit warn- 
ings from recent candidates, 
1994 Is still set to break records 
for flotations, according to 
KPMG Peat Marwick. 

According to the latest sta- 
tistics from the accountancy 
group, there were 182 Dotations 
in the first nine months of the 
year, marginally higher than 
the 180 issues launched in 
1993. 

So far this year, KPMG esti- 
mates that a total of £7.8bn has 
been raised from new issues, 
and It expects that a pick-up In 
activity before the November 
budget should put the final 
tally comfortably ahead of the 
1986 record of £9bn. 

This has happened in a year 
when offerings from Notting- 
ham Group, Ae restructures 
Hamble, McDonnell Douglas 
Information Systems, and 
United Carriers have all fol- 


Atlas jumps 
by 35% to 
£1.86m 

Atlas Converting Equipment, 
the manufacturer of slitting 
and rewinding machinery, 
improved pre-tax profits 35 per 
cent in the half year to June 
30, from £1.38m to 21.86m, on 
turnover virtually unchanged 
at £19 -3m. 

Mr Christopher Rogers. 
chairman , Bald continuing dif- 
ficult trading conditions had 
again resulted in low mar gin^ 
with “no immediate prospect” 
of improvement. However, 
improved results at General 
Vacuum helped offset lower 
margins elsewhere. He added 
that the order book in all divi- 
sions led the company to 
expect an increase in output 
and profits for the second half. 

A 7p interim dividend is 
maintained on earnings per 
share of 11.86p (10.01p). 

Betacom falls 61% 

Betacom, the consumer tele- 
communications company 


lowed upbeat share offers with 
profits warnings. 

Mr Neil Austin, head of new 
issues at KPMG Corporate 
Finance, claims that “those 
investors who have had their 
fingers burnt will he particu- 
larly wary when looking at the 
new issues they are now being 
offered". 

“It is not difficult to see that 
some companies and their 
advisers will be facing an 
uphill struggle to convince 
investors that they are of a 
suitable size and quality to join 
the main stock market” 

Some issuers have already 
given up the fight. London 
Capital Holdings was the first 
large issue to be pulled this 
year, ft is not expected to 
recover from the shock, with 
Citibank considered more 
likely to sell off the properties. 

The downturn in the stock 
market since late August has 
exacerbated concern at the 
recent statements from Aeros- 
tructures Hamble and MD1S. 


66.17 per cent owned by Amst- 
rad, reported pre-tax profits of 
£203,000 for the year to June 
30. 

The 61 per cent fall, from 
£516,000, came on the back of 
turnover marginally ahead at 
£l&5m (£12. lm). Earnings per 
share were cut to 0-3p (0A3p). 

Operating profits for the 
period improved to £138,000, 
compared with £57,000; how- 
ever, this year's pre-tax figure 
included a £55,000 provision for 
loss on sale of fixed assets, 
while last year’s included a 
£213,000 profit on the sale of 
fixed asset investments. 


Darby advances 49% 

Darby, the USM-quoted maker 
of specialist glass products, 
lifted pre-tax profits by 49 per 
cent from £379,000 to £565,000 
in the six months to August 31. 

Turnover improved by 6.7 
per cent to £8 -29m (£7.77m). 
The interim dividend is lifted 
to o.9p (0.5p), payable from 
earnings of 2.67p (2.2p) per 
share. 

Mr Michael Darby, chairman, 
said the group's concentration 
on Improving the overall qual- 
ity and mix of the business had 
proved successful, evidenced 


The combined effect has 
sparked the likely postpone- 
ment of offers for carton manu- 
facturer Boxes, pizza chain 
Bright Reasons, and news- 
agents Martin Retail. Mr Aus- 
tin said there were some others 
that had also been added to the 
danger list. 

A higher number of compa- 
nies have been forced to radi- 
cally cut back their target for 
capital raising. Pre-marketing 
exercises have been followed 
by advisers radically scaling 
back price expectations in an 
attempt to relieve the current 
institutional indigestion. 

Games Workshop cut back 
its target capital raising from 
£20m to £l2m when it 
announced its pricing last Fri- 
day. and others will follow. 

As Mr Austin said: "It is get- 
ting to the stage of the eco- 
nomic cycle where a trade sale 
is becoming a meaningful 
alternative to notation for peo- 
ple who need an exit wi thin 
the next six to nine months ” 


by the continued development 
of niche markets. 

Waterman ahead 

Waterman Partnership, the 
consulting engineer, benefited 
from increased activity in the 
property and construction sec- 
tors, reporting a 61 per cent 
increase in pre-tax profit from 
£124,000 to £200,000 for the year 
to June 30. 

Turnover improved 12 per 
cent from £7. 35m to £8.22m. 
Earnings per share were 0.3p 
(O.lp) but the proposed final 
dividend is maintained at 0.5p 
for an unchanged total of lp. 

Just £55,000 in red 

Just Group, the character lic- 
ensing company which came to 
the market in March, incurred 
a pre-tax loss of £55,000 for the 
six months to May 31 on turn- 
over of £409,000. 

Mr Wilf Shorrocks, chair- 
man, said the company now 
represented 10 properties on an 
exclusive basis. He added that 
the management believed the 
full benefit of properties “can 
only be obtained over a three- 
year period. 

Losses per share were O.llp. 


Baris Holdings, the USM- 
traded building services com- 
pany, plans a refinancing. The 
announcement accompanied 
restated results for its last 
financial year to include a 
£ l.68m writedown on the Little 
Britain project in London. 

This follows settlement of 
arbitration proceedings against 
Wimpey Construction after the 
Baris results were originally 
announced in May and 
increased the pre-tax loss to 
£3.12m for the year to February 
28. This compared with a 
reported £l.43m loss in May 
and a £351,000 deficit previ- 
ously. 

Baris plans to raise £i.72m 
net, by way of a placing and 
9-for-S open offer of 7.99m new 
shares at 25p. In addition, the 
company is converting £2m of 
bank debt by way of a sub- 
scription for 5m convertible 
preference shares at 40p each. 


Inoco, the USM-quoted 
property group, reported a fall 
from £834,000 to £250,000 in pre- 
tax profits for the six months 
ended June 30. 

Turnover, however, 
improved from £4.8lm to 


convertible into ordinary 
shares of lOp each on a 1-for-l 
basis. 

The proposals are subject to 
shareholders' approval at an 
EGM, but Baris warned that If 
they were not implemented 
“the company may unable to 
continue to trade”. 

The company has requested 
that the Stock Exchange waive 
the USM requirement and 
allow the placing and open 
offer to be made at a discount 
to the current share price of 
greater than 10 per cent On 
Friday the shares fell Gp to 33p. 

Mr Arthur Morton, who is 
currently ntwrirmaTi of a num- 
ber of quoted companies 
including Vistec Group, the 
computer systems supplier, but 
who at present does not own 
any shares in Baris, has under- 
taken to subscribe in full for 
those shares not taken up. 
After this he will hold a mini- 
mum stake of 15.8 per cent and 
a MaTimiim 36.4 per cent 


There was a £2 ,8m loss 
(£11,000 profit) on investments 
and a profit of CLJBm, against 
losses of £4,000, on the disposal 
of investment properties. 

Earnings per share at this 
Norwich-based company 
declined from 0.4p to O.L2p. 


Hillsdown 
plans to 
redefine 
premium 
account 

By Christopher Price 

Hillsdown Holdings, the food 
manufacturing group, is to 
seek shareholders’ permission 
to redefine £42Gm of its share 
premium account as other 
reserves. 

The company said the move 
was a technical one which 
would enable it to use the 
share premium account 
reserves to write off goodwill 
which had previously arisen on 
acquisitions. 

The write-offs had amounted 
to £562£m over a number of 
years, and had previously been 
set against the profit and loss 
reserves. The latter stood at 
£22m at the 1993 year-end. 

An emergency shareholders 
meeting has been set for Octo- 
ber 28, and if approved, the 
company must apply to the 
courts to approve the change 
in definition. 

Hillsdown stressed that the 
reserves would not be allow- 
able initially as redistributable 
reserves from which dividends 
are paid. However, they could 
become allowable after any 
restrictions that the court 
might put on its ruling are 
met. 


By John Ridding In Parts 

Air France, the French 
state-owned airline, reduced 
losses for the first half of the 
year to FFr2.61bn ($495 m) from 
FFr3 -82bn in the same period 
in 1993. 

The French flag carrier, 
which is in the midst of a 
restructuring package after 
several years of substantial 
losses, has said it hopes to 
limit losses to about FFr3. 7bn 
in the 15 months to the end of 
March 1995. In 1993, the airline 
had a net deficit of FFr8.48bn. 

In an attempt to return to 
profits, Mr Christian Blanc, 
chairman , has implemented a 
restructuring package aimed at 
increasing productivity by 30 
per cent by 1997. The plan is to 
be accompanied by a capital 
Injection of FFr20bn from the 
French state over the period. 

Air France cited some signs 
of encouragement in the first 
six months. It said that sales 
had stabilised after the sharp 
decline of 1993 and totalled 
FFr27 ^bn. The overall figure 
mask ed an increase in volume 
sales of about 10.6 per cent. 


By Andrew Jack In Paris 

Banque Hervet, the French 
retail bank, recovered to 
return profits in the first half 
of the year of FFr28m ($5 -3m) 
compared with losses of 
FFr361m in the previous corre- 
sponding term. 

Hervet was scheduled last 
year to be sold by the govern- 
ment as part of Its privatisa- 
tion programme, but the plan 
was shelved this spring pend- 


By David Buchan in Paris 

Saint-Louis, the French food 
and paper group, lifted first- 
half profits to FFr401 m ($76m), 
compared with FFt252m in the 
same period of 1993. on a 2 per 
cent rise in turnover to 
FFrl7.75bn. 

The sharp profit increase 
was partly accounted for by 
restructuring costs in early 
2993 for the group's Euralim 
food subsidiary and its Ado 


which was offset by price 
reductions as the company 
sought to win back passengers 
from rival airlines. 

Operating profits rose from 
FFrS57m to FFrl.Slbn. Accord- 
ing to Air France. It was only 
from April that the underlying 
results started to benefit from 
the restructuring and cost- 
cutting plans from April. 

The company has been pur- 
suing a series of asset sales to 
help reduce debts, which 
amounted to about FFr40bn at 
the beginning of the year. Last 
month, Air France announced 
the long-awaited decision to 
sell its controlling stake in the 
M6ridlen hotels chain to Forte. 

Expenditure on acquisitions 
totalled FFr454bn during the 
period. This principally repre- 
sented the purchase of aircraft, 
including three Airbus A340s 
and two Boeing 767s. 

The period since the end of 
June has brought a reorganisa- 
tion of the group structure. Air 
France has sold its holding in 
Air Inter, its domestic subsid- 
iary, to a new holding com- 
pany which groups the two 
carriers' interests. 


ing a recapitalisation. 

The bank said the privatisa- 
tion plans were still suspended, 
although a recapitalisation 
agreed with shareholders was 
completed in June this year. 

Hervet reported provisions 
down substantially and said all 
of its operations has been prof- 
itable except Hervet Credit, 
specialising in property financ- 
ing. Its solvency ratio stood at 
10.5 per cent, against a regula- 
tory minimum of 8 per cent. 


Wiggins Appleton paper sub- 
sidiary that did not reoccur 
this year. 

However, the profit contribu- 
tion of the group’s paper busi- 
ness rose to FFr229m compared 
to FFrl56m in the first half of 
last year. 

In Europe, Arjo Wiggins 
Appleton significantly 
improved profitability which in 
the US was maintained at a 
high level, the group 
said. 


£5.44m. 


CROSS BORDER M&A DEALS 


BIDDER/INVESTOR 

TARGET 

SECTOR 

VALUE 

Comment 

RocJdtt A CoJman (UK) 

L4F Household (US) 

Household 

products 

£1U3bn 

Reckltt 

changing focus 

Allianz (Germany) 

Bvia (Switzerland) 

Insurance 

£739tn 

Swiss Re 
non-core sale 

Normandy Poseidon 
(Australia J/BRGM 
(Franca) 

Alliance 

Mining 

£362m 

Multi-part 
mufti -national 
pact 

Prince Al-Waleed Bin 

Talaal (Saudi Arabia) 

Four Seasons Hotels 
(Canada) 

Hotels 

£78m 

Building up 
leau* 

Interests 

Sega Enterprises (Japan) 

Atari Corp (US) 

Video games 

£80m 

Stake plus 
rights deal 

Acatos & Hutcheson (UK)/ 

Arctier-Oanleis-Mdland 

(US) 

Strategic alliance 

Food processing 

£27m 

Capital 

Infection *■ 

Joint venture 

71 Group (UK) 

Technoflow (Germany) 

Engineering 

£19.4m 

Three-stage buy 
agreed 

Sdtex Carp (Israel) 

1mm lx (US) 

Video equipment 

£13m 

UK’s Carlton 
taking profit 

National Westminster 

Bank (UK) 

HFDC Bank (India) 

Banking 

£10m 

Plans for 20% 
stake 

Comas (UK) 

C&M Ready Mix (US) 

Surkfing 

materials 

£ft5m 

Aggregate 

move 


NEWS DIGEST 


Inoco declines to £250,000 


Banque Hervet in black 


Saint-Louis climbs sharply 




The Marketmakers who Can Put 
Dutch Securities at Your Fingertips. 


From now on. therv'.s a more efficient way for 
the institutional investor to deal in the shares 
of leading Dutch companies. 

The new quote-driven, screen-based 
Amsterdam Stock Exchange Trading System — 
ASSET for short - will now display compet- 
ing prices for thirty Leading companies 
including Royal Dutch Shell, Unilever NV, 

Akxo. ING and ABN-AMRO. ^ 

And it will allow large crudes 
to be placed direct with market- 
makers. 


ASSET is just part of Trading System 
Amsterdam, the new integrated market 
environment which is designed to make trading 
faster and more efficient, while maintaining 
existing high standards of transparency and 
regulation. 

A To get ASSET quotes on your own 
screen, contact your data vendor; and for 
^ more details on the system itself, simply 

AMSTERDAM scnd coupon 



STOCK EXCHANGE 


You'll find it the key to the 
whole of the Dutch market. 




vu> i>i huc KH.uiovt nr run »it .M. -i iii amxtfkuam mock kxoiasok. fo box until icioo on am*t>.ri>a.v. mr nfthi'rlasiu.v 

I’UiAM" SKNH Mt A COI’V Ol YOl R IWKIIURK Dl-tCKIIIINC, AMVTKROAM S .HITT THAUINU sYSTL'WN 
NAVI. LI : 1 I I I I L -I — t — l - J i l I — I .J.—L I I l I 1 1 I I I I FOMUON L 1 L J_i 


.’till I 1 U ..I..LJ.. 

cow.wy 1 i i L-LJ.J !_1_1 I I I IJ .LI. 111. I I ! II ! I I 1 I I II I l .1 I 1 LJ l_l I ,i_l I LJ_l_l_[_J 
aporkss I I 1 M • I M I i I i ||_M I .]_L_L 1 J I i Li I I II I 1 .1 1 I I 1 i | posrcoin; > I.. mini 


This announcement appears as a matter of record only October 1994 


HI 

B 

FC 

BANK 

Guaranteed By 

Household International Inc 

£100,000,000 

Revolving Credit Facility 

Arranged by: 

J. Henry Schroder Wagg & Co. Limited 

ABN AMRO Bank N.U 

Commerzbank Aktiengesellschaft 
London Branch 

Deutsche Bank AG London 

DG BANK 

Deutsche Genossenschaftsbank 
London Branch 

The Royal Bank of Scotland pic 

J- Henry Schroder Wagg & Co. Limited 

Bank of Boston 

The Fuji Bank, Limited 

Societe G6n£rale 

Westdeutsche Landesbank Girozentrale 

London Branch 

London Branch 

Credit Suisse 

Lloyds Bank Pic 

Morgan Grenfell & Co. Limited 

NatWest Markets 

Royal Bank of Canada 

Union Bank of Switzerland 

The Sumitomo Bank, Limited 

Facility Agent: 

J. Henry Schroder Wagg & Co. Limited 


Schroders 








FINANCIAL TIMES MONDAY OCTOBER 3 1 994 


23 




i> s sharply 



ti. 


i 

i 

i 



■ . 




I 


I 




COMPANIES AND FINANCE 


Hoechst plans big restructuring 


Market gives Ebner first 
round in battle for UBS 


By Christopher Pantos 
in Frankfurt 

Germany’s Hoechst chemicals 
group Is to sweep away its 
antiquated, centralised man- 
agement and operational struc- 
ture in the most ambitious 
shakeout ordered so far by Mr 
J Or gen Dormann, the new 
chairman. 

The changes, effective from 
January 1, will reduce the 
number of operating divisions 
from . 15 to seven and transfer 
responsibility for divisional 
strategy and profits to their 
managers, the company said. 

This will leave the main 
board free to concentrate on 
group strategy, supported by a 
central administration com- 
prising about 200 people. Pre- 
viously centralised responsibil- 
ities for factories and 
departmental functions are to 
be passed down to individual 
divisional managements. 


First results 
for Ina since 
privatisation 

By Andrew Hdl 

Ina, the Italian insurance 
company, reported parent com- 
pany pre-tax profits of L250bn 
($160m) for the first half of 
1994, in its first results since 
June, when the Italian trea- 
sury privatised 51 per cent of 
the company. 

Comparison with last year’s 
figures is misleading because 
until October 1993 Ina bene- 
fited from compulsory contri- 
butions from other I talian 
insurers, but the company 
pointed out that in the whole 
of 1993, its pre-tax profit 
amounted to only L274bn. 

Group premium income 
reached L^970bn, up 1IL8 per 
cent on the equivalent period. 
Li.218bn from life activities, 
and Ll,752bn from non-life. 

• Istituto Bancario San Paolo 
dl Torino, Italy’s biggest bank- 
ing group, reported a net profit 
in the first half of L203bn, 
almost the same as last year, 
but operating profits fell by 21 
per cent to L862bn. 

San Paolo has been affected, 
like all Italian banks, by pres- 
sure on interest margins and 
paper losses on its investment 
portfolio, compared with the 
favourable conditions of the 
first six months of last year. 


“We need more entrepre- 
neurial initiative, market and 
customer orientation and 
greater flexibility,’' the group 
said in a notice to staff. The 
current structure was “a fine- 
meshe d net, trapping and con- 
siderably delaying decisions, 
business processes, customer 
demands and change," it 
added. 

Mr Dormann, who took 
charge in May, said recession 
had exposed structural weak- 
nesses in the group which had 
not yet been repaired. It could 
not allow Itself to fall into such 
a situation again, he said, 
recalling that it had been 
forced to close more than 20 
German fin«» che mica l s plants 
during the recent slump. 

Mr Dormann warned that 
decentralisation did not mean 
operating divisions could allow 
themselves the luxury of heavy 
overheads. 

“It is the job of divisional 


By Andrew HID to Milan 

Capital increases and asset 
sales enabled Ferruzzi Fman- 
ziaria. the financial holding 
company of Italy's Montedison 
industrial group, to cut debt in 
the first six months of this 
year by nearly 30 per cent to 
L15,76Sbn tJlObn). 

At end-1993, Ferfin’s debt 
stood at L21^5lbn, or 5.5 times 
net equity. The debt-equity 
ratio had come down to 1.7 by 
June 30. Last year creditor 
banks of Ferffn and Montedi- 
son agreed to convert some of 
their loans into equity to res- 
cue the group from near-col- 
lapse following years of alleged 

mismanagpinw it 


By NHdd Taft In Sydney and 
Bernard Simon In Toronto 

MIM Holdings, the 
Queensland-based metals 
group, has sold its remaining 
8.65 per cent holding in Com- 
inco, the North American min- 
ing and smelting group, for 
C$1 64.9m (US$I23m). 

The sale cuts all sharehrilri- 
Lng ties between the two com- 
panies and ends an ambitious 
international base-metals alli- 
ance which was stitched 


chiefs to keep their structures 
lean or slim them even fur- 
ther," he said. 

Under the plan, future oper- 
ating divisions will comprise 
chemicals, special chemicals, 
fibres, plastics and film, engi- 
neering plastics, pharmaceuti- 
cals and diagnostics. 

The number of business 
units, covering distribution, 
packaging and other functions, 
will also be cut from 120 to 
about 30, while subsidiaries, 
such as Schwarzkopf personal 
care, Uhde plant construction, 
Herberts coating and paints 
and Messer Griesheim indus- 
trial gases, will be run as inde- 
pendent companies. 

The possibility of merging 
central engineering services 
into Uhde is currently under 
investigation. 

The move, will destroy the 
pyramid structure commonly 
found in many German groups 
- with most decisions being 


Ferfln also reported a return 
to pre-tax profit of L144bn in 
the first half, compared with a 
loss of L840bn in the first six 
months of 1993. 

The group said that it expec- 
ted the second half to be even 
better than the first, but 
warned that the net result of 
the group would still be nega- 
tive. 

In 1993, Ferfin reported a 
consolidated net loss of 
IA419bn. and Montedison a net 
loss of Ll.Bllbn. 

In the first half Ferfin’s turn- 
over rose to LU,431bn. against 
Lli,489bn- 

• Ciga, the Italian luxury 
hotels group controlled by ITT 
of the US, has cut its losses 


together during the 1980s by 
MIM, Germany's Metallgesell- 
schaft and Teck Corp of Van- 
couver. 

Earlier this year, MIM sold 
its half share in Nunadnaq, a 
private investment company, 
to Teck for C$139.7m. Nuna- 
chiaq’s principal assets 
included a 27.7 per cent hold- 
ing in Cominco, as well as a 
22.46 per cent interest in the 
Polaris zinc-lead mine joint 
venture. 

Metallgeseilschaft earlier 


matte at the apex - and replace 
it with a flatter hierarchy In 
the modem Anglo-American 
style. 

It follows specific restructur- 
ing measures, such as the con- 
solidation of global fibres 
operations into one division 
now controlled out of the US. 

The healthcare business 
recently announced closer inte- 
gration of its French subsid- 
iary, Roussel Uclaf, Into other 
pharmaceuticals operations. 

Mr Jean-Pierre Godard, 
drugs chief, said the aim was 
to cut out duplication in 
research and manufacturing 
and increase gross operating 
margins, currently about 10 
per cent of sales, to 14 per cent 
within three years. 

Including a reduction of 800 
in the workforce, the rational- 
isation measures are expected 
to save the group DM20 0m 
($129m) a year. Mr Godard 
said. 


and reduced debt in the first 
half of 1993. 

The consolidated net loss for 
the first six months of the year 
reached L64bn, compared with 
LllObn in the equivalent 
period of 1993, thanks partly to 
an improved performance from 
the core hotels division. 

The group's share issue ear- 
lier this year has also allowed 
Ciga to reduce its debts to 
L232bn at June 30, compared 
with Ll,102bn six months ear- 
lier. ITT, the US conglomerate 
which owns the Sheraton hotel 
chain, has 35.25 per cent of 
Ciga, and has launched a for- 
mal bid for a further 35.25 per 
cent which will close at the 
end of this week. 


this month sold the bulk of its 
international mining assets, 
Including indirect stakes in 
Teck and Cominco, with the 
disposal of a controlling stake 
in Metall Mining of Toronto. 

In the case of the latest Com- 
inco sale, MIM said that the 
shares had been “broadly dis- 
tributed” among investors on a 
block trade basis at C$24 a 
share. The disposal of the 
6.87m shares will generate a 
C$1 Im profit before tax for 
MIN’S Canadian subsidiary. 


BHF-Bank 
hit by bond 
market 
downturn 

By Andrew Fisher in Prague 

BHF-Bank has announced flat 
operating profits for the first 
eight months of 1994 as a 
result of the downturn In 
world bond markets and 
higher risk provisions, but 
said recently announced 
restructuring plans should 
lead to a big rise In eventual 
profitability. 

Group operating profits 

totalled DM20 2m ($131m), a 

drop of 0.1 per cent on the first 
eight months of 1993. Com- 
pared with eight-twelfths of 
last year’s total - the usual 
comparative basis at German 
banks - the decline was 6.4 
per cent 

Mr Wolfgang Struts, the 
bank’s senior partner, said 
profits on own account trading 
had fallen by 89 per cent using 
the eight-twelfths comparison, 
mainly as a result of write- 
downs in BHFs bond portfo- 
lio. Risk provisions had risen 
fay 5.7 per cent, with the bank 
exposed to both the Schneider 
property and Procedo/Balsam 
factoring collapses. 

Growth in partial operating 
profits, which exclude own 
account trading, was 17.7 per 
cent; the bank gave no total 
Interest rate business pro- 
duced profits growth of 14 per 
cent, with commission income 
up by 2 per cent 

Elaborating on the new 
structure, to be pot in place 
over the next year, Mr Strutz 
said this should lead to M a sig- 
nificant increase” in gainings 
per share. But the investment 
in new systems and people 
would affect the 1995 result 
and probably that of 1996. 

Compared with the 1993 
return on capital of 13.4 per 
cent before tax, he said the 
bank was aiming at 20 per 
cent The aim was to earn 
returns similar to those of 
other international banks. 

BHF Is refocusing its activi- 
ties to become one of Europe's 
leading advisory and trading 
banks in the next five years. 

BHF, in which the Allianz 
insurance group and DG Bank 
own large minority stakes, 
will concentrate on corporate 
banking, financial markets, 
and private banking and asset 
management 


T he prices of the bearer 
and registered shares of 
Union Bank of Switzer- 
land displayed rare volatility 
on Friday as investors strug- 
gled to guess the outcome of 
the war that had just been 
declared between the directors 
of one of the world's most 
highly respected banks and Mr 
Martin Ebner, a little known 
Zurich broker-fund manager. 

At the close, the market 
seemed to be backing Mr 
Ebner, no small tribute to the 
immense resources and influ- 
ence this intense man has 
accumulated since setting up 
his BZ banking group nine 
years ago. However, the 
unavoidable final showdown at 
a UBS extraordinary general 
meeting on November 22 Is 
still seven weeks away. 

The main issue is whether a 
group of shareholders repre- 
senting only a minority of the 
capital should be able to con- 
trol the board. But the battle is 
also part of an ongoing strug- 
gle between an old, self-serving 
Swiss financial establishment 
and a new generation of asset 
managers who want better per- 
formance from tbeir Swiss 
Investments. 

And it is a personal confron- 
tation between Mr Nikolaus 
Semi, the garrulous UBS chair- 
man who cannot conceal his 
distaste for a cheeky upstart, 
and a successful outsider who 
resents the posturings of some- 
one whose stewardship of Swit- 
zerland’s largest bank has been 

TimiioHTig nic'hfrrf 

Mr Elmer's interest in UBS 
dates from 1991, when he 
launched BE Vision to invest 
in financial equities. It was 
apparently set up in part to 
accommodate the wish of some 
of his clients to shift their less 
liquid holdings. 

UBS registered shares suf- 
fered from a small float and a 


The board of Aeromexico, 
Mexico’s largest airline carrier, 
is investigating alleged finan- 
cial irregularities by the for- 
mer management of the com- 
pany that may prevent it from 
covering some of its financial 
obligations, writes Damian 
Fraser in Mexico City. 

Shareholders were informed 


restriction permitting only 
Swiss nationals to vote them, 
and traded at a substantial dis- 
count to the bearers. From the 
start, these securities have 
been among BE Vision's larg- 
est holdings. 

Mr Ebner made clear that 
BE would be an active share- 
holder - nudging directors 
towards greater transparency 
and sensitivity to shareholders 
- and has been particularly 
aggressive in needling UBS. 


Ian Rodger reports 
on the opening 
moves in a banking 
confrontation 


In its latest dig, BK Vision 
put a motion on toe UBS AGM 
agenda in the spring proposing 
that the number of board mem- 
bers be reduced from 22 to a 
maximum of nine. Mr Senn 
resisted it with a farrago of 
pretentious arguments about 
UBS's responsibility for the 
whole Swiss economy and. 
armed with the usual fistful of 
proxies, he carried the day. 

But Mr Ebner, to his 
immense surprise, attracted 
some 40 per cent of the votes, 
and it now looks as if he inter- 
preted this support as a wider 
mandate to challenge the 
bank's basic policies. 

According to Mr Senn, Mr 
Ebner told him he was trying 
to corral a majority of the 
votes with a view to installing 
a new board at the next annual 
general meeting and directing 
UBS to abandon its universal 
strategy and concentrate 
instead on investment banking 
and asset management 

As UBS has a market capital- 
isation of over SFrSObn, it 
would normally be extremely 
difficult for anyone to accumu- 


that $50m of company funds 
could not be accessed, because 
of possible “irregular conduct” 
involving the alleged use of the 
money as collateral to buy 
shares or receive a loan. 

A senior government official 
confirmed that the authorities 
were looking into alleged ille- 
gal use of the company's funds 


late enough votes for such a 
cause, especially as the bank's 
performance, while mediocre, 
is not distressing. But those 
registered shares that BK 
Vision holds have five times 
the voting power of bearers. 

Claiming it would be unfair 
for investors representing only 
a minority of its capital to take 
control, the UBS board last 
Thursday proposed splits of 
both the bearer and registered 
shares, giving them equal vot- 
ing power. The registered 
shareholders' aggregate voting 
power would fall from 50 per 
cent to 20 per cent, in line with 
their capital commitment. 

Predictably, BK Vision cried 
foul, saying the bank would 
take away the registered share- 
holders' property rights with- 
out compensation. The regis- 
tered shares have been trading 
at a substantial effective pre- 
mium to the bearers in the 
past few months, but only 
because Mr Ebner and his 
allies have been buying them. 

Mr Ebner is on stronger 
ground when he argues that 
. his goal is to focus the bank's 
efforts on profitability, which 
he says is in the interest of all 
shareholders. 

U BS directors face a 
tough struggle. They 
must win two-thirds of 
the votes at the EGM plus a 
majority from each share class. 
That means they must con- 
vince many Swiss registered 
shareholders, including UBS 
employees, it is in their inter- 
est to see those shares lose a 
quarter of their value. 

If investors thought UBS was 
going to win, the premium on 
the registered shares should 
have disappeared on Friday. 
But at the close, it still stood at 
26 per cent 

Maverick hunter, Page 18 
Lex, Page 20 


by previous management 
The announcement follows 
last month's resignation of Mr 
Gerardo Prevoisin. the former 
chief executive. Mr Prevoisin 
had been unable to reach 
agreement with banks over 
rescheduling of debt of Mexi- 
can a , the airline that Aeromex- 
ico took over last year. 


Ferfin cuts debt by near 30% 


MIM sale cuts ties with Cominco 


Aeromexico board launches probe 


THIS ANNOUNCEMENT APPEARS AS A MATTER OF RECORD ONLY 




CNO 

CQNSTRPTQRA NDRBEHTO OnBBHBCBT 8 A 

Odebrecht Group 

(Incorporated with limited liability as a sociedade anonima 
under the laws of the Federative Republic of Brazil) 

U.S. $50,000,000 

Guaranteed Floating Rate Notes due 1997 


Guaranteed by 


ODEBRECHT S.A. 

(Incorporated with limited liability as a sociedade anonima 
under the laws of the Federative Republic of Brazil) 


Issue Price; 100 per cent. 


Latlnvest Securities Limited Kidder, Peabody International PLC 

Banco do Basil S.A., Grand Cayman Branch 

Deutsch-SGdamerikanische Bank 
Aktiengesellschaft - Dresdner Bank Group - 

Lehman Brothers 




All of these securities having been sold, this announcement appears as a matter of record only. 


FALCON 94, LIMITED 

FALCON 94 CORP. 

US. $106,000,000 Five Year Senior Secured Floating Rate Notes 
U.S $55,500,000 Seven Year Senior Secured Floating Rate Notes 
U.S. I $6,500,000 Second Priority Senior Secured Fixed Rate Notes 

Secured by a diversified portfolio of high yield debt securities and bank loans. 

MORGAN STANLEY & CO. 

Incorporated 

MORGAN STANLEY & CO. 

International 

acted as Underwriters and Financial Advisors 

Saudi International Bank 

AL-BANK AL-SAUD1 AL-ALAMI LIMITED 
acted as Underwriter and serves as Collateral Manager 

FALCON 94, LIMITED 

U.S. $28,000,000 Subordinated Notes 

Saudi International Bank 

AL-BANK ALSAUDI AL-ALAMI LOOTED 

placed the Subordinated Notes 

MORGAN STANLEY & CO. 

Incorporated 

October 1994 



Bozano, Simonsen Limited 
HSBC Markets 
Tradeway Securities Ltd 


j 

j 

3 



lag data lor the monitoring 01 largeis, ana uk- iur iiiu iiaiuuiug ui «»<u»ur 





24 


FINANCIAL TIMES MONDAY OCTOBER 3 19*1 


THE WEEK AHEAD 


DIVIDEND & INTEREST PAYMENTS 


■ TODAY 
AAH 11 -9p 
Do. 4Jt% PL 2.1 p 
AUkan Huns Ip 
AMs OSo 

Da 5%% Cv. N/Vtgu Pt 2.7SP 
Anglian Water 1&5(j 
Aada uip 

Ayartre Metal Prods i.25p 
BWD Secs. 1.7p 

Bank Montreal 10%% Dep. Nts. *96 

CS103.7S 

Baibour index 5j8p 

Baxter M. 503325 

BW«by4*> 

Black Arrow 2. Ip 

Bogod OZSp 

Do. A RosWtg. a5p 

Bristol Water 22.4p 

Do. WVtg. 22-4p 

Da «% Cv. PT. 1998 3.375p 

Bristol Water 8«% Cm. Inti. Pf. 4 J75p 

Bromagrovn Intis. 2JS5p 

Buckingham InL See. Rd. Ln. -85 £4.3904 

Burlord 0.76p 

Cassia *1 

Da 4S8H Rd. Pf. 88 17.S2p 
Carlton Comma. 2-7Sp 
Casket 0.7p 

Central Motor Auctions CL5p 

Chieftain l.Sp 

Clariia CO l.26p 

Coiefax & Fowler (L5p 

Cornpco 12_96p 

Cook (DC) 0.7p 

Cook [WraJ 5p 

Craig 5 Rose 6% Cm p I. i.75p 
Mchotson Q.6p 


Da SVi% Cv. PL 2L7Sp 

Crown Eyeglass SJSp 

Etonian Hdgs. 17p 

Datapak Foods Ip 

Davenport Knitwear 0.2p 

Otxora 4-9p 

□ruck 7.1p 

Dyson (J & J) 2p 

Da ANArtg- 2p 

Eastern Bactridty 16.4p 

East Mkflonds BnctlSJp 

East Surrey HhJgs. 9%% Cm PT. 4.75p 

□uLtimi House 7%% Cv. Pf. 3.75p 

BsevterFLl.78 

Export-import BfcJap. 4%% Gtd. Bd. -03 

Y43750.0 

FW 2J2p 

Finland (Rep of) ICRfeN Bd.'M £103.75 

Fleming High Inc. Inv. Tst l.tp 

For. & Colonial Inv. TsL O.fip 

Gartmore American Sea ip 

Gen. Acddont 7W* Cm. PL 3.93 76p 

General Cons Inv. Tst. 3Bp 

GEC 8.01 p 

Gibbon Lyons 13p 

GAbsMewSp 

Govett Emerg. Mkts. Inv. TsL OZSp 
Grvnda 3.33p 
Grand Metropolitan 5.1Gp 
Greet Souiham 4.5p 
Hambros 7J*% Cm Pf. 3.75p 
Hampson bids, l.5p 
Da Cv. PL 1991/2003 325p 
Hanson 3p 

Harrington Klbrtda ip 
Hatlevraod Foods -L3p 
Hawstson 0.7Sp 

Haywood Wffiama Cv. Pf. 3J75p 


HoUas OJp 
Holiday Chemical 2p 
Howden 1.81 p 

HycbD-Ouebec FHN SerJJ 0cL*05 

S125JSS 

\a iQjsp 

Japan Dev. Bk. 5% Gtd. Bd. *99 
Y60000.0 

Johnson Grp. Cleaners 2Jp 

Kalon i.6p 

Kewil Systems Sp 

Nebmort Hgh too. TsL 1.875p 

Law Debenture 8.75p 

Leigh Interests 5S7p 

Lesie Wtao i.75p 

Lonrtro 2p 

Low A Boner IL2p 

LowfWm) 6*% Pf. 3J7Sp 

Lowndes Lambert 1 0p 

MarahaBs 3p 

Da Cv. Pf. S2Sp 

Menvier-Swabi 2.9p 

Met Water Lambeth 3% Db. El .50 

Da London Bridge Anns. £1.25 

Utifandn Bectridty l5.S5p 

Msya&OGp 

Moorfield Estates OJjp 

Morris Ashby 4p 

Morion Sundour Fabrics 3%% isL PL 
1.75p 

Murray SpOt Cap. Tst 2.8Sp 
Da Units 2&5p 
Neepsend Q.75p 

New S-Wates Tress. 12.1% GtxL Exch. Bd. 

■95 A50OS.Q 

NFC ISp 

Nobo 4p 

Northambv OSp 


Northern Ireland Elect- Bp 
Nc m rwntarian WMer 102p 
North West Water 15.4p 
Norwab i6-3p 
OMIbiL tp 
OrtfeO-Sp 

Oxford In s truments 3.4p 
psjt ?-fl75p 
Plfco HUga. 2L6p 
Do. A Um/Vtg. 2.6p 
Pfatignum (USp 
Portmetrion Potteries 2JSp 
P & P O.H5p 

Prudential Fdg. 10% Nts. OcL'96 CS1D0H 
Real Time Control 4p 
Reed ho. S-7p 
Reiyon 2.lp 

Sabre Lease MngmL 7»% Maze Nts. 171 
£181.25 

Da SJH Snr. Nts. 2001 £1450-0 
Sdnsbixy (J) 9%% Nts. *96 S45&2S 
SL Andrew TsL 2Bp 
SeWumtwger SIL30 
Scottish Hydro- Bactrlc &6Bp 
Scottish Power 027p 
Smean(L87p 
Sears Roebuck Sa<0 
Severn Trent 15-2p 
SnareUnh tnv. Services Sp 
Stebe 7,34p 

SkzncRa Cap HH Gtd. Nts. '96 21100 
Smith (David 9 Sp 
Southend Property i.Bp 
Da Pf. OSp 
Southern Bectric 16p 
Southern Water 15.4p 
South Western Beet. l6J5p 
Standard Chart. 7%% Non-Cm 


kid. PL 3.BS7SP 

State BecL Comm Victoria 751% Gtd. 
Nts. "02 CS78.75 

Sun ABancs 7%% Cm bid. PL 06S75p 
Sutcliffe Sp ea ta na n OSp 

TSB 3.544p 
Takora O-Sp 
Tinstay Oza) 3Kp 
TR Fa- East Inc. Tst l.4p 
Triplex Lloyd 4.5p 

Trizac 10% Snr. Ob. OcL‘96 CS100.0 

Upland bx. 0.74p 

Unitech «J32p 

Vady (Reg) 3^p 

Vftroplant 2-38p 

Vlctorta Carpet 4J5p 

Wagon IndL 11 Sp 

Wetsn Water 16-8Sp 

Wessex Water I5_5p 

Wastminsta Health Care 2.75p 
WRa Corroon i.65p 
Worthington lJ3p 
Yoriohim Water 152p 

■ TOMORROW 
Anglo American Ind. R1.32 
Budgens 0.7p 

Bwxonwood Brew. 7% Cm PL 2^45p 

European Moior 2_S2Sp 

Eyecwe Products IL5p 

Hewttn 0.275p 

Matthew CtarK ia?3p 

Northern Sect I7.45p 

Park Food iJ67p 

Premark bit 5020 

Reiance Security 3 l6p 

Rsxmore IJSp 

Skits Food 5J5p 


Tarmac FbvfJereay) 9V4% Cv. BCLTO 
£4750 

Walcoma 5-flp 

Yorkshbo Bactridty lOSSp 

Zetta>4L5p 

■ WEDNESDAY 
OCTOBERS 
AIM 3p 

ArwsMas2%% £0.635 
Annuftlea2%% £06876 
Ashtead 45p 

Bradford Prop. TsL 10%% PL 55Qp 
Brabna (TF & JH) 2-8p 
Do. A WVtg. 2.6p 
OAOLSlp 

CRH 7% A Cm Pf. IR2.82Sp 
Centex SOLOS 

Oevsiand Place 3%% Irrd. Db, £1.875 
Da 4U% bid. Db. £3.125 
Consokdatad 2W% £0535 
Edinburgh Inv. TsL 5k % Db. '98 £3475 
Fabway 1-2p 
Menydown 14p 

Met Wlr. Grand Junction Water 3% Ob. 
£140 

Da West Middx. Water 3% Db. £1.50 

MLHUgs.045p 

Peel hldgs. 3J2p 

Scottish American inv. lip 

Treasury 8% Ln. 02/06 £4.0 

Treasury 3% (1975 of Aftor) Cl 40 

WBamson Tee ISp 

■ THURSDAY 
OCTOBER 6 
Aimrtage Brae 3-7p 
Bempton Prop. 7%% Ua 


Ln. 91/96 £3.875 

BetVcs (Skbwy C) &23p 
Betway 9te% Pt 3014 4.76p 
Bespak Bp 

Britanrtc Assurance <2Sp 
Brownbig-Faris 80.17 

Dhou Stem Fin. 4% Sb. Bd. U3 84tt0 
Fleming Enterprise tnv Tst 3.Jp 
Goncor RO-IO 

Oreenais 8% bid. Un. Ln. £44 
Da 9%« lrrd.Un.Lrv W4825 
Greycoat 7% Rd. Cv. PI. M14 3-lp 
GT Ch«e Growth Fd. S0.80 

IitthP*rmMg^&rty. FHN *98 £139.88 

McKay Seeurtflas 3.1 o 

MoMulan & Sons 6ib% Cm Pf. 345p 

DO. 10«i% PI. 425p , ^ 

River 8 Merc. Geared Cap: 4 Inc. Tsf99 

1.4p 

Sotheby’s Hldgs. Class A Um/vtg. 50.06 

TR Smater Co's Inv. TsL 2.3p 

WMX Tech. 50.15 

ward Hldgs. asp 

Westpac Banking FRN -95 $22.11 

WNtbread 9% Un. Ln. 97/3001 £440 

■ FRIDAY 

OCTOBER 7 

Admiral 2.5p 

ABenceToL I6p 

Da 4% Pf. £1.40 

Da 4 UK Pf. £1.4475 

Da 5%Pf. £1.75 

Amicable Smaller Em TsL 1.7p 

Blocks Leisure 1-5p 

Brad. & Blngiey Bldg. Scty. 


13% Penn. un. Big. £6300 

BrtiisR Assets Tst i.09p 

Cementone O.-ip 

Ctiy Mercnonta High YWd TsL 2p 

Drayton Far Eastern Tst. aiMp 

Dutjkrv Jonhlns 2L30Sp 

Dunedin bic. Growth Inv. TM. 8.9c 

First Technology 2 Sp 

Gnxmvxx kins 2 5p 

Jacques von 3p 

Kfrxnsuort Cwmq bw. TM. 1 Sp 

Liberty Life Assoc of Africa RO 98 

Lloyds ADDoy Lite 0.8p 

USE Fin. Gtd Dud Basis Bd. D4 

S24844.79 

MFI Furniture 3 B7p 

Maritng Inds. 0 57p 

Moat Budottn 4p 

Norm Midland Construction 02p 

Rea Brethora 0.5p 

River & Mercantile tec. 2 23p 

Scottish National TsL 14p 

Shorca 2.7p 

Stagecoach 3.dp 

Stirling I.JSp 

Svttorw 3-3 IP 

Thom EMI 25p 

Treat i.2p 

Union 1 Sp 

Vlctauec 2.6p 

Warner Estate 3 BSp 

Yorkshire Chemicals 17Sp 

■ SUNDAY 
OCTOBER 9 
Blockbuster 6nt. $0,025 


UK COMPANIES 


■ TODAY 

COMPANY MEETINGS: 

Adscene, Cambwgh House, 27, New 
Dover Road. Caraerbuy. KanL 11 JM 
As h te ad Grp_ 30. Fumival Street, EC., 
12.00 

TR SmaBer Co's Im. Tst, 3. Finsbury 
Avonue. ECL 1140 
BOARD MEETINGS: 

Finals: 


Gates (Flank G) 

Rossmont 

Interims: 

BSon 


BWcM Mining 
Cl Grp. 

Chbosctonca 
DeuoUiun InL 
Doeflex 

Grand Central Im. 
H er rin g Baker Hants 
London A Assoc, bw. 
Perth Grp. 


OSHMgs. 

■ TOMORROW 
COMPANY MEETINGS: 

Courtyard Leisure, 62. Carter Lana, EG, 
1040 

Homing Enterpr tee bw. Tat, 25, 
CopOtaB Avenue, EG, 1240 
BOARD MEETINGS: 

HnatK 

British Buldbtg A Bng. AppOanoas 
BZW Endowment Fd. 

Interims; 


Boosey A Hawkes 
Johnston Qrp. 

LranontHMgs. 

SSentnlght 

vet 

Watts Blake Beame 

■ WEDNESDAY OCTOBER B 
COMPANY METMGS: 

Abtruat Preferred Ina tnv. TsL, 99, 
ChBrtflfhouaa Street EG, 12.30 
First Taohndogy, 60. Stratton Street W. 
1140 

Fl em i ng Emer gi ng Ma rk e ts bar. Tat, 


Insurance Han. 20. Aktem anb uiy. EG. 
1200 

WMrnwy Mackay-Lawte, 55-85, WMtMd 
Street W~ 340 
BOARD MEETINGS: 

Hnals 


Interims: 

Bank of Scotland 
Hawdan-Stuart 

Morgan GnaifeB Latin Ameri can Cote 
Trafficmaatar 


■ THURSDAY OCTOBER 6 
COMPANY MSTMGS: 

Amritega Brothers, AimKago House. 
CoMck. NotUnghom. 1140 
BBe A Etrarard, Grocara Hel, Princes 
Street EG, 1240 

Verity Qnv, 62, Thres dn sodte Sheet 
EG. 1140 
BOARD MEETINGS: 

Finals: 

Ex* Lands 
WehmMer (Barry) 

Watt mm spoon (JO) 


D er a dln 
Etem 
H stone 

Kandarson Highland 
plantation A General 


Sherwood 
Taiwan tov. Tat 

■ FRSOAY OCTOBER 7 
COMPANY MST1NGS: 

Verson hit. Chamber of Industry A 
Commerce. 75. Horbome Road. 
Birmingham, 1&30 


BOARD MEETINGS: 
Interims. 

Chepstow Racecourses 
Cohen (A) 

Fitch 


Sbngaby (HO 

Company moetmgs am anrval gmn/ 

meetings unless offwvwbe stated 
)Pk«se note: Reports and accounts are 
not narnnSy auSobte untfl approxknddy 
six weeks after the board meeting to 
approve the prefenlnnry renflts. 


CONFERENCES & EXHIBITIONS 


OCTOBER 3-4 

Global Emerging Markets *94 

is a mining investment conference which 
features the lop developing countries for 
mineral investment sad the companies 
operating in those countries. Sponsors 
Indodc Mining Journal, BHP, Gunbior, 
Mtnorco. Hamesiake Mining, Metal! 
Mining, Niugini Mining, plus more. 

For registration phone 
010 305-670-1 M3 or 
£u 0101(305) 670-0971 

LONDON 

OCTOBER 11 

Measuring the value of I.T. 
Investments 

This conference discusses how to asses the 
value of I.T. projects and prioritise I.T. 
investment successfully. It presents 
guidance from leading academics and 
consultants, as well os insights bom the 
experience of major organisations, in both 
the private and public sector. 

Contact Business Imdligenoc 
Tel: 081 543 6565 Fax: 081 544 9030 

LONDON 

OCTOBER 11/12 
Practical Dealing course - 
Foreign Exchange 
Training in Spot and Forward forex 
dealing for trainee/juniar dealers sad 
Corporate treasury personnel. Highly 
participative coarse in c ludi n g WINDEAL 
(PC Wmdawvhased sinmhdoa). Training 
effected by practitioners with many yens 
market experience. £480 + VAT. 

Lywcod David Imcnotioral Lid. 

Tefc 0959 565820 Fax: 0959 565821 

LONDON 

OCTOBER 11 and 14 
Using Video in Training 

Video Arts, the world leaders in video 
training programmes, are boldine a series 
of ooe day presentations. 

The event features four interactive training 
workshops, a chance lo preview award- 
winning training programmes and an 
opportunity lo get hands-on experience of 
CD-I - the blest training technology. 
Contact Emma Marshall at Video Arts 
TcL- 0171 637 7288 Fax: 0171 580 8103 
LONDON/MANCHESTER 

OCTOBER 13 

China Investment, Patent & 
Trade Mark Conference 
Held within framework of industrial Property 
Programme for China Guanoed by ECTbpics 
tndude Economic Trade Relation between 
China and Europe, Potent & Trade Mark 
Protection, Industrial Property Law 
Enforce men t. High level Chinese Delegation. 
C o ufei cnee foe: £140 > VAT. 

INTERFORUM Tel: +44 (0) 71 386 9322 
Fax: +44(0)71 381 8914 

LONDON 

OCTO B ER 13 & 14 

The Management of Product 

Safety & Quality 

Product Safety & Quality are the 

responsibility of everyone concerned in Ibe 

production of goods. This seminar will 

provide opportunities to hear clear and 

practical explanations by leading experts. 

Further details from Inter national 

Professional Conferences Ltd 

Tel: 061 445 8623 

LONDON 

OCTOBER 14 

Law on Insider Dealing 

Seminar examining the impact of the new 
law nod its likely interaction with other 
law. Developed jointly with Travers Smith 
Brailbwalte with key input from the Stock 
Exchange and compibnce pro f essionals. 
Contact; Ben Goh at Quintessence 
Business Training. 

Tel: (0908) 332450 Fox: (0908) 220213 

LONDON 

OCTOBER 17 
MBA- 

Busfness School Reception 
The Association of MBAs will host its 
annual Business School reception for 
intending students. Over forty leading 
schools boo continental Europe, USA and 
the UK. Free of charge. To register to 
attend and for further details contact the 
event spamor, NatWest Bank on 
Teh Freephone 0800 282 700. 

LONDON 

OCTOBER 17 &18 
Employee & Union Participation 
for Change 

Management and union representatives 
will relate their experiences in setting up 
working partnerships for change. This 
highly practical conference will give union 
representatives. employees and 
management a valuable Insight into critical 
aspects of successful working relations. 
Contact: Rachel Thomas or Sarah WQhams 
IBC Technical Services 
Teh 07 1 637 4383 Fax: 071 631 3214 

LONDON 


OCTOBER 18 

Getting your Message Across 
In Europe 

CBI Co n ference, in associarxMi with Grice 
Wheeler Business Communications, 
considers wsys (print, broadcasting, 
lobbying. IT, branding etc) to meet the 
challenges of wnwmmiift M ij in rim Europe 
of Tomorrow. 

Contact: Nicola Martin, CBI Conferences 
TeL 071 379 7400 Fax: 071 497 3646 

LONDON 

OCTOBER IB-19 
INPOWER 94 

The Independent Power Generation 
Conference and Exhibition. Kemptoo Padt 
Exhibition Centre. Sunbury-on-Thsmes. 
Surrey, England, (tor bee admission tickets 

rmrvr 

Lorraine Rages. 

FMJ International Publicatiom Ltd. 

Tel: (0737) 763611 Fax:(0737)761685 
KEMPTON PARK 
OCTOBER 18/19 
Introduction to Foreign 
Exchange and Money Markets 
Highly participative training coarse 
covering traditional FX and money 
markets featuring WINDEAL (PC 
Windows based dealing simulation). For 
Corporate treasurers, bank dealers, 
marketing executives, finands) controllers, 
systems and support peoanneL 
£460 + VAT. 

Lywood David International Ltd. 

Tel: 0959 565820 Fax: 0959 565821 

LONDON 

OCTOBER 19 
Practical BPR- 
Implementatlon Issues 

2nd Animal Conference of the BPR Study 
Group (200+ membaa) 

Now (never disclosed before), recently 
successful Case studies presented with 
interactive sessions from senior 
management and practitioners. Lively 
discussions and demonstrations Including 
speakers from Citibank international. 
Nationwide Building Society. Alliance and 
Leicester, Pupni Home 1 /wrw , Pkidbids 
and more. 

Contact: Steve Tow eo, Hanson Associates 
TeL +44(0)941 120118 
Fhx: +44 (0)608 663829 

LONDON 

OCTOBER 20 
The Nuclear Review 
Conference examining the outlook and 
opportunities for the UK Nuclear Industry 
and the issues for future energy policy. 
Speakers indnie: Tim Eggar MP, Minister 
of State for Energy, u well as senior 
representatives from Framatome, BNFL, 
Greenpeace, Nuclear Electric, NIREX UK 
AMORL 

Contact Qonagh Goodman. 

The Waterfro n t Conference Co- 
Tel: +44 (0) 171 730 0410 
Fax: +44 (0) 171 730 0460 

LONDON 

OCTOBER 21 
Commercial Agents 

CBI/Warncf Cranston half-day seminar 
considers the way forward for principals 
and agents amt provides practical guidance 
Cor operating under the new laws. 

Contact Belinda Rogerson. 

CBI Conferences 

TeL 071 379 7400 Fax: 071 497 3646 

LONDON 

OCTOBER 24 

f*nnlnl la ■_ . p_ m-g 

SOC Wt JUWICnLUHlIIMItXI napon 
The final report of the Gommisraa on Social 
Justice, Housing, employment, personal 
finance and government policy cxsmmed 
Sir Gordon Borrie, Tony Blair MP. Bea 
Campbell, Christopher Haskins, Patricia 
Hewitt, Sheens McDotwld. John Monks. 
Contact Neil Stewart Associates 
071 9760682 

LONDON 

OCTOBER 24 

The Information Superhighway 

A conference to examine highlight the 
challenges and applications in commerce 
and the pnblic sector of the new 
telecommunications technology, and to 
examine Government policies to face those 
challenges. Government Minister and 
Larry Irvine. USA Secretary of Commerce 
Contact NoQ Saewan Associates 
071 976 0682 

LONDON 

OCTOBER 24-25 
International Polypropylene 
Conference 

The Institute of Materials has organised 
this important conference to bring the best 
speakers in the polypropylene industry 
together to help catalyse the recovery in 
the business. 

Contact The Institute of Materials 
Tel: 071 839 4071 Fox: 071 823 1638 

LONDON 


OCTOBER 24 

Structuring Tax Efficient Joint 
Ventures 

Learn the latest tax planning strategics: 
c or pora t e or partnership joint venture; Tax 
Tips and p lanning points for property joint 
vent m e n ; joint venturing across national 
borders - what ore the tax implications?; 
require men ts and developments in 
accounting for joint ventures; A tax 
efficient start: structuring and financing 
thejohu venture. 

Contact: Kate Roberts, 1BC Legal Studies 
and Services Limited. 

Tel: 071 637 4383 Fax: 071 631 3214 

LONDON 

OCTOBER 25 & 26 
The Third Age of Madia 

The changing faoe or media - the media 
opportunities in the 50+ markets. A joint 
conference organised by Age Concern 
England and The Henley Centre, this two 
day event is a comprehensive fattrodwrikm 
CO the Melting world Of mature m a rketing 
and media. Cose £730+ VAT 
Contact Anna Hannan at 
The Henley Centre Td: 071 353 9961 

LONDON 

OCTOBER 25/26 
Successful Selling *94 
is the only independent Conference and 
Exhibition for die Sales and Marketing 
professionaL The Conference programme 
flffrw uobeanfalo vitae wuti prr tan 

of ideas, concepts sod bard won experience. 
Networking opportunities abound. 

Call free far a brochure an 
TeL 0800 L32 122 

BIRMINGHAM 

OCTOBER 26 
Essential International Tax 
Technique After The Finance 
Act 1994 

Key Topics in cl ode: update on 
international tax techniques; foreign 
income dividing; why the UK is an 
attractive location; impact of the new rules; 

developments in tumtar puciQ£ odj 
in te gra t in g the new tax regime into your 
corporate strategy. 

tTfrnimf Kate Roberts, IBC Studies 
xud Services Limited. 

TeL 071 6374383 Fax: 071 631 3214 

LONDON 

OCTOBER 26-27 
BPR 94: Re-engineering, 
Process Management arid 
Performance Improvement 

Eutopds co nfer ence exhibition 
devoted to exploring bow to apply business 
re-engineering strategies to achieve 

Designed to meet the needs of your whole 
re-engineering team, from executive 
sponsor to those invuliud fas pfenning and 
Implementing projects. 

Business lnfriHy n^f 
TcL 081 543 6565 Fu: 081 544 9020 

LONDON 

OCTOBER 26 & 27 
How to Grow your Business 
using Market Research 
Information is becoming fundamental in 
tile running of a bus i ness through the use 
of technology. This two day se minar will 
show you how to get the best out of 
iciciidi and the red reasons for 1 l 

Contact - International Professional 
Conferences Ltd TeL 061 445 8623 

LONDON 

OCTOBER 27 

International Tax Conference - 
Managing Global Expansion 

Conference an the ux issues facing 
multinationals in the changing global 


Price: £20000 plus VAT 
Fn nun- MiebeOc Beard, Ri™» A Young 
TeL 071 931 2297 Fax: 071 242 5862 
LONDON 

OCTOBER 27 
P r ote ctin g The Brand 
Unilever, Smith Kline Beechxm, British 
Airways, United Distillers and the 
Vendome Luxury Group pko other exp e rts 
wiQ be revealing defensive and offensive 
strategies, covering packaging, look-a- 
likes, the new trade mark law and other 
key elements of brand presentation. At The 
Institute of Directors. Call Janice Kofaut. 
Century Cbmmunfcailoga. 071 638 0008 
LONDON 

OCTOBER 27 & 28 
International Bond Congress 

A unique opportunity for all professionals 
involved in the bond markets to Increase 
their knowledge with 98 specialist 
presentations. With increasing 
globalisation and deregulation reacting in 
a dramatic surge in investment flows 
bemoan countries, this event is sn essential 
information source for the international 
bond ma rk ets. 

Contact IBC Event Office 
TeL- +44 (0)1628 776306 
Fix: +44 (0)1628 32323 


BARBICAN, LONDON 


OCTOBER 31 
Manufacturing Matters 
The National Pie Budget Conference on 
iiiaiiufjcniring. A working conference on 

ipwiyf ^ ittg imfiHfm l stnUcgy anrif fKi*kl 

policy. Pra Budget outlook from leading 

Contact: Neil Stewart Associates 
0719760682 

QEI1 CENTRE, LONDON 
NOVEMBER 1 

Pull Circle Into The Future? 

The commercial imperatives facing 
orga n isations into the 21st Century. 

The Henley Centre is celebrating its 
Twentieth Anniversary with this 
Confer en ce that looks forward to the next 
20 years and what it win bring not only in 
terms of the big picture bnt also the 
co mm ercial hmpD cations. 

Cost £350 + VAT 

Contact; Anna Hannan at 

The Healey Centre TeL 071 353 9961 

-r 

NOVEMBER 3 1994 

The 1st Annual Review of IT Law 

This prestigious ooe day conference will 
have the leading speakers, cover the 
critical issues, the essential develo p m en ts, 
law, litigation, regulation and policy. It 
will have a practical approach for 
practitioners by practitiooers. 

Farther details from International 
Pro fessiooal Conferences Ltd 
Tefc 061 445 8623 

LONDON 

NOVEMBER 3 
Information as an Asset 

Workshop for chief executives, chairmen, 
and managing directors drawing on 
KPMG's IMPACT Programme. 
Puticqrams will share their experiences, 
resulting in a practical guide identifying 
weaknesses in current performance, and 
with direction on critical areas for 
improv eme n t . 

Free entry. Contact Brinley Platts, 

071236 8000 

LONDON 

NOVEMBER 6-8 

CBI National Conference! 

Speakers include - Kenneth Clarke, 
Michael Hesehiae, Kamlesh Bahl, Paddy 
Ashdown, Bill Jordan, David Simon, 
Andrew Buxton, Tony Hales, Howard 
Davies. 

Session Topics include - Europe, 
Manufacturing, UK Economy, Training. 
Exporting, Equal Opportunities. 

Contact: CBI Spedal Events Department 
Tefc 071 379 7400 F»c 071 497 3646 
BIRMINGHAM 

NOVEMBER 7 

Boyond 'What ir - Management 
Science In Spreadsheets 
Management science techniques to aid 
planning. Forecasting - to predict future 

improve results. Simulation - to 

assess the Impact of uncertainty. Markov 
Hum, - to analyse changing market share. 
Optimisation - jo maximise profit or 


Contact: Unicom Seminars 

Tel: 0895 256484 Pam 0695 813095 

LONDON 

NOVEMBER 7-8 
Emerging Stock Markets In 
Central & Eastern Europe 

Meet senior players on region's equity 
markets. Presentations - panels an 
exchanges and saenrilies markets in 
Poland, Czech Slovak Repnbtks, Hungary, 
Russia, Baltic Stated Bulgaria, Romania, 
Skrveoia. Focus on investment strategies, 
regulation, fuuu of 
Emomoney 
Arabella Senouilkt 

Tel: 071 779 8534 Fax: 071 779 8603 

LONDON 

NOVEMBER .8-9 
DRVMeGraw-HID's World Cars 
and Trucks co nfe re nc es 

bring together CRTs latest authoritative 
forecasts with key omside speakers to 
address the issues of the current cycle in 
the automotive industry and Do anticipate 
t be critical questions 10 be in tbe aext 

five years. 

Om hfU Redon o ct 

Tefc 0181 545 6212 Fax; 0181 545 6248 

LONDON 

NOVEMBER 8-9 

Quantitative and Computational 
Finance 

Two day seminar hasted by US Embassy. 
International experts and practitioners 
review a range of novel quantitative 
models applied to (be finance and 
securities industries. Derivatives; options; 
yield curves: successes, failures and 
experiences will be dheusaed. 

Contact Unicorn Seminars. 0895 256 4S4, 
tax 0895 813095 


US EMBASSY, LONDON 


NOVEMBER 9 

Presentations for Pro fessi ona ls 
by Professionals 

Ai the Mermaid Theatre, a on 

creating effective presentations- From 
presentation techniques and use of 
langua ge .^ t o AV desigm s fidc prodac ooa. 

actors demonstrate bow to make lasting 
impressions. Instructional, utterly 
enjoyable • a must for all presenters. 
Keynote speaker: Alan Dibbo, Chartered 
Institute of Marketing. 

Contact: E WHliaim. Executive Presentations 
Tefc 071 837 8199 Fax: 071 837 8190 
LONDON 

NOVEMBER 9 
•Visions of GoftT 

Conference celebrating the Modern 
Apprenticeship programme and the part 
NVQi and skill compe t i t i ons have to play in 
tfvm -Cprafcir* include Duncan Goodhew, 
Mike Heron, Bill Jordon, Pruc Leith. 
Sponsored by Employment Department. 
Contact Hilary Jennings, UK Skills 
Tel: 071-753 5222 Fax: 071 436 7630 
or Claire Armstrong, National Cotmal of 
Indtsny Training Otganisatiaas 
Td: 0763 247285 Fax: 0763 247302 

ALDGATE, LONDON 

NOVEMBER 10 

Law and Finance for Small and 
Medium Sized Companies 

- Practical Got dance and Sohtcions. A one 
day seminar. C ha red by Paddy Walker, 
rhnir r niin, Cafcnsforil Associates t Jm^xt, 
Presented by: Gordons Solicitors. Sony 
(UK) Limited, Garrett A Co and 
Inte r re gn um Marketing Limited. 

Further details (ram Kit Stones, 

The Conference Team 
Tel/Fax: (0234 343384) 

SHEPPERTON MOAT HOUSE 

NOVEMBER IS & 16 
1 Strategies for High-Involvement 
Leadership 

Qmtrollmg changes; concentrating on high 
pay-off activities; creating partnerships; 
strengthening trust; motivating and 
enhancing team performance; and 
stimulating Innovation. These ore issues 
in dwted in this inte r acti ve to train 

both operations and top management 
executives to operate effectively in 
empowered organisa tions 
Contact: Racbd Thomas or Sarah WQbami 
IBC Technical Services 
Tefc 071 637 4383 Fax: 071 631 3214 

ASHDOWN PARK 

NOVEMBER 15<16 
Business Performance 
Measurement _____ 

Transforming corporate performance by 
measuring and msnogingtbe drivers of 
felon profitability. This two-day 
conference explores the relevance and 
r«jfd 


E new corporate 
*, which include non-fimndil 
indicators, such ns satisfaction, 

quality and I 


fauftxrr Business 

Tefc 081-543 6565 Fox: 


-544 9020 

LONDON 


NOVEMBER 21 -22 
Business Process 
Re-engineering (BPR) 

fWirimring series of I 
dunged with designing and is 
BPR mitialinM. Presen te d by leading US 
pnwitwnrr and BPR autbor. Proven Trow- to- 
do- if implementation guide illustrated with 
com studies and workshops. Course book also 
avaflaMe. Pro 50 otg si hgk ai s In the private 
& oiditic&GCtoisbsve steady stteoded. 
Contact: Richard Fanis! Vertical Systems 
Intercede Lid 

Tefc +44-455-230266 (24 hoots) 
Fax:+44-455-890821 

LONDON AREA 

NOVEMBER 24 
Privatising Air Traffic Control 
Conference examinin g the implications of 
privatising air traffic control. Experienced 
aviation professionals will explore service 
regulation and delivery as well aa tbe 
financing and legal structures available. 
Speakers include: Viscount Goacben, 
Minister for Aviation, and re p r esen tatives 
from NATS, E ur oo on auL tbe CAA A the 
aviation industry. 

Contact: Oonegb Goodman, Tbe 
W ater front Conference Co. 

Tel: +44(0) 171 7300410 
Fax: +44 (0) 171 730 0460 

LONDON 

NOVEMBER 24/25 
Differentiating Customer 

Proposition 

CBl/Develm & Pmaen co n ference, chaired 
by John Hnnqiliiyq, shuwa how to transform 
Key business processes to deliver cast 
efficiencies and market differentiation. 
(Optional workshop an second dsyk 
Qmatt Bdhvfr Rosecsoo. CBI C o nfacoc c i 
Tel: 071 379 7400 Fax: 071 497 3646 
Julia Robins. Devetin & Partners 
Td 071 917 9988 

LONDON 

NOVEMBER 2fr29~ 

Global Emerging Markets 
Investment Management 
Major International conference oo global 
emerging 4 -m and eq ui ty w aring 

at CIS. Eastern Europe. Africa, tbe 
Mediterranean Rim: Asian and Indian 
Subcontinent, Latin America and tbe 
Carribean. Programme designed for 
toMw ierirwal portfolio investors and asset 
allocators and emerging markets 

ff pw-jalfr fm 

Cto a fac t: ALboa 

Dow Jones Tderate Ltd 

Tbfc 071 832 9532 Fine 071 353 2791 

LONDON 


NOVEMBEH 29-30 
Managing Corporate 
Tran s f or ma ti on: 

Tbe UK's premier event on planning, 

jm plwn^nliwfl amt mminmfl or gani sation al 

and cultural change. This two-day 
conference i Deludes frank discussion of 
why so many initiatives foil and explores 
proven methods for achieving critical buy- 
in and support for new organisation 
structures and working practices. 

Contaa: ftwiw w Imeltificncc 
Tel: 081-543 6565 Fax: 081-544 9020 

LONDON 

NOVEMBER 29 & 30 
Data Warehousing: Practical 
Experience and Lessons for 
the Future 

Building the smart corporation, driving 
effective business process reengineering 
projects, unlocking the most valuable of 
corporate assets. Learn bow many of the 
world's most competitive corporate players 
bavc toed tbe data warehouse concept to 
achieve a strategic Corporate advantage. 
Contact: Unicom Seminars 
TeL 0895 256484 Fax: 0895 813095 

LONDON 

NOVEMBER 29-30 
Integrating Cflent/Sarver and 
Legacy Systems 
Advice on architectural alternatives, 
producuAools, middleware, and which 
standards are important for tbe future. 
Draws on a wealth of experience from 
real-life user sites where important lesson 
have been learned for achieving raore- 
cf&ctivc solutions in fee ftnure. 

Contact Unicom S on m a rs . 0895 256 484. 
fex 0895 8U 095 

LONDON 

NOVEMBER 29-30 
Accounting and Taxation for 
Derivatives 

This conference considers the 1ASC 
{mMi w ttnmi accounting draft standard, the 
witwmi accounting treatment and financial 
reporting of derivatives, topics include 
hedge accounting, derivatives valuation, 
risk management and trading accounting 
support. Speakers include the Hon. 
Christopher Sharpies (SFA) and David 
Damant (CSAM) 

For more information or to register, call 
Ambrose at A1C Conferences on 
Tefc (071) 8275988 Pax: (071) 2422320, 
LONDON 

NOVEMBER 30 
Partnership Sourcing 
The Strategic Option 
Adopting a |w*ntfnhip sourcing approach 
enables businesses to achieve world dam 
capability and ' competitiveness. 
Partnership Sourcing Limited, a joint 
CBI/DT1 initiative to promote the concept 
of long-term relationships between 
mmpmita f and zbdf flupptien, is bolding a 
one-day conference in London. Speakers 
with experience In implementing the 
concept, such as ICL. Smith Kline 
Beccfaam and The Post Office. 

Contact: DtvM Rekwick. Aifc Conference 
Tefc 071 731 8652 Pax: 071 7313372. 
LONDON 

DECEMBER 1 
(^Regulation -A Legal 
Evolution 

This conference will debate the 
development and future of Dnancisl 
regulation in the UK. Tbe growing use of 
civil law procedures, regulatory 
Intervention, and reduction in criminal 
sanctions - define a legal evolution at tbe 
Interface of the criminal, civil and 
regulatory cfocfplmes. 

Sponsors: Butterwonhs Publishers 
ront^i- Caroline Sumner. Meetings 

Td: 01252 795414 Fare 01252 792101 

LONDON/MANCHESTER 

DECEMBER 5 

DHatnma of Choice - A Working 
Conference wHh Charles Handy 
For senior managers concerned about how 
they maasge personally the difficult 
balances between valnc and results 
involved in today's organisations. Also 
with Andrew Poster, Martin Msys-Smitb, 
Greg Pantos, Charles Pollard and 
Baraheis Young. 

Office for Public Management 
Tel: 071 833 1973- Fa x: 071 837 6581 

1 CENTER. LONDON 


QEI1 * 


DECEMBER 6-7 
Adding Value with Index 
Products 

BARRAh London seminar focuses on key 
areas of Indexation research, including 
new technique* for index tracking, index 
e nhance ment using derivatives, and asset 
allocation over multiple indices. Topics 
include dynamic index tracking under 
transaction costs and hedge fund 
strategies. 

Conaec Christine Smith, BARRA 
International Um.wi 
Tefc 071 283 2255 Fmc 071 220 7555 
LONDON 

DECEMBER 7-8 
Succeeding with Teams: 
pa airal jBn wgjcs try desjgnag; Implementing 
md ti ll. lag ifae team-booed organisation. An 
ItnrnMf i rm al two-day conference specifically 
tioi yedw bdp senior executhrea nade g tan d 
the fimrt i mutu al issues involved in designate 
sndaqfementiqgsiesniJasedeigBeisdiob 
Omtncfc Business intelligence 
Tefc 081-543 6565 Fac 081-544 9020 

LONDON 


DECECEMBER 7 
Transport growth and 
Air Quality 

Conference examining trends St problems 
in air quality and the possible solutions. 
Speakers include: Steven Norris MP, and 
representatives from Royal commission on 
Environmental Pollution, CES Ltd, Shell 
UK, Westminster City Conncil, British 
Airways A Scfaiphol Airport. 

Cocnct: Qonagh Goodman, The Waterfront 
Conference Co. 

Tefc +44 (0)171 730 0410 
Fax: +44 [0)171 730 0460 

LONDON 

D E C E Mfl Eff a - 5 

Opportunities and Competition 
for Building Societies 

Park Line Hotel 

Strategies and actions for improving 
Building Society business performance and 
market abate. Presentations on general 
insurance, mortgages, value management, 
customer loyalty, database segmentation, 
distribution charnels and intermediaries. 
Speakers arc drawn from senior 
management of the Halifax. Alliance and 
Leicester, the Woolwich. Bradford and 
Binglcy, Nationwide, Chelsea. Port man and 
Lents Permanent 
Contact Simone Wills 
Tel: 071 242 1548. AIC Conferences 

LONDON 

DE:c£mB^H 12-14 ' ”’~ J 

Export Systems *94 
1 4th Annual Conference of the British 
Comparer Society. Specialist Group on 
Expert Systems. Opening Keynote by 
Professor Peter Cochrane, Head of Core 
Technologies Research, BT. Technical 
Keynote by Professor Derek Sleeman. 
University of Aberdeen. Both tec hn ical and 
applications aspects covered in detail and 
supported by 4 independent tutorials. 

Farther information from Kit Stones, 

Tbe Conference Team 
Tfcl/Fax: (0234 343384) 

CAMBRIDGE 

DECEMBER 14-15 
Occupational Pensions 

Be brought up to date on all the practical 
implications of UK government and EC 
regulations. Each presentation will deal 
wife what pension funds actually need to 
da when they need to do it and how much 
it will cost- For pensions fund manager, 
trustee or professional adviser it is an 
important opportunity to bring your 
knowledge up to date. 

Contact: Simon Wills, Tefc 071 242 1548 
AIC Conferences 


EXHIBITION 


OCTOBER 7-9 
Enterprise Business & 

Computing Show 1994 

Tbe UK's only national exhibition for spiati- 
mMmwi h u ri i Vr iL E n te rprise represents the 
fonun Cor the fastest growing sector ln tbe 
UK-SEMs. Tbe cxbfoirioo is sponsored by 
Pare* If once and has over 150 companies 
represented from industries including, 
computing, finance, training, banking, 
franchising fttiwm w. iai property, o n griag 

AdvanODticfccfs: 081 9826600 
Contact Julian Fbben Enterprise Exhibitions 
Lid, Tefc (0932) 859960/829920 Fax: (0932) 
855741 

LONDON 

MARCH 1-3 

Aslan Companies EXPO 

This entirely new concept for tbe fi nancial 
markers brings together in ooe location sn 
extensive and diverse array of leading 
Asian Companies, and provides 
institutional Investors with a unique 
opportunity lo evaluate potential growth 
and return fint hand across all sectors on a 
one-on-one basis. 

Contact: Earomaoey EXPO'S Limited 
Tel: +44 (0)1895 625194 
Fax: +44(0) 1895 624447 

COURT. LONDON 


INTERNATiONAL 


OCTOBER 10/11 
The Private Banking Challenge: 
Survival or Success 

Designed for senior hankers responsible for 

E rivate client business and chaired by 
nseell Taylor, autbor of Private tbmfcing 
Renaissance, this international conference 
considers ways to meet client service 
requirements white maintaining 
profitab fifty. 

Enquiries: The Event Organisation Compony 
Tefc +44 71 228 8034 Fax: +44 71 924 1790 
LUXEMBOURG 

ScTOBERig-iy 

Kaizen - front concept 
to practice 

A Se m i n ar and Workshop for com pen eat 
sop pliers to tbe European consumer 
electronics industry hosted by tbe 
Electronic Industries Association of Japan 
and the European Association of Consumer 
Electronics Manufacturers. 

Guest speaker Mr. Mnsnnkl lmni, author 
of 'KA IZEN. THE KEY TO JAPAN'S 
COMPETITIVE SUCCESS* 

Cost: No Charge. Sponsored by the 
European Commission. 

Contact: Sinead Gfilen. I CEL 
Tel: +32 2 2387802(38/13 
Fas: +32 2 2387716 

BR USSELS 

Dealing with Rights 

Intellectual Property Rights must be 
properly dealt with ir they arc lo confer 
hoped for benefits upon their rightful 
owners. Aa international panel or 
mteUeaual property managers and lawyers 
examine the problems owners face In 
handling right* and in portfolio 
management. Further details from 
International Professional Conferences LuL 
Tefc 061 4458623 

FRANKFURT 


OCTOBER 20-21 
Windows In Flnanco 
Conference & Exhibition 
Bill Gates. Chatman of Microsoft 
Corporation will give (be keynote address 
at this major event designed lo update you 
on the latest developments in Windows 
based solutions for rcuil end wholesale 
hanking and capital markets. 

Leading vendors will he demonstrating fee 
most up In dote products and services. 
Contact: Sabine l-cuevta GmbH - 
Tel: +49 (0)69 17 25 3 

FRANKFURT 

OCTOBER 25 ft 26 
EC Business Regulation 

Everyone concerned with international 
business transactions total be aware of (he 
EC Rustirow Regulation and Ux increasing 
influence on the way wc transact business. 
This conference will provide an insight and 
a summary of current regulation* and 
practice, abo future EU policy. 

Further details from i me mat tonal 
Professional Conferences Ud. 

Tefc 061 445 6623 

BRUSSELS 

OCTOBER 28 & 27 “ 

FT Intfia's Economic Renaissance 

This high-level FT conference will provide 
a unique opportunity to review tbe 
go ve rnm e n ts, liberalisation programme sod 
assess future prospects for business and 
investment 

Enquiries: Financial Times 

Tel: 081 673 9000 Fax: 081 673 1335 

DELHI 

OCTOBER 26 

Advanced Softwas AppBcaflons In 
Bsnkfeig, Finance and Inswnoe 

Seminar for business and tedmical managers 
showing use of practical applications of 
logic programming software in finance, 
banking, insurance. Leading international 
and Italian financial institutions present 
sute-of-tbe-art systems. Includes pane] 
discussioo and vendor displays. Contact: 
(Italy) Cristina Rnggieri. Tel: 031 521 285 
(International) Al Roth, Tefc +44 253 358081 
MILAN 

NOVEMBER 8-9 
European Union Aid for 
Development Conference 

Bmisetf Opportunities in EC exienk&l aid 
projects to the value of 5 billion ECU 
annually outlined, including 
PHARE/JOPP. TACIS. MED. A/LA. and 
ACP. Networking with EU and new 
member state companies. Proc u rement 
opportunities for manufacturers/ 
suppliers. 200 page EUROAID GUIDE on 
EU aid programmes included. 

Coatact: Socidte Gtnfrale de 
IXvetoppcrpcm SA. 

Tel: +322 312 4636 Fax: +322 512 4653 

BRUSSELS 

NOVEMBER 9-10 
Dynamic Asia 

The fast-growing markets of Ibe Asian 
region prompted fee international Chamber 
of Commerce (ICC) to choose New Delhi 
for its 1994 business opportunities 
conference. This high-level conference, to 
be opened by Prime Minister PV 
Narasimha Rao, includes sessions on 
foreign investment. Asia's new market 
economies, and doing business wife Imfie. 
Contact: Conference Secretariat, ICC Paris 
Tefc (33 1) 49 53 28 7W28 30 
Fax: (33 114953 29 42/28 59 
NEW DELHI 

NOVEMBER 24 & 2S 1994 
Pram without Pain 

How far can I copy or cmulato my rivals 
products before I step across the line of 
legality? Why is apparent copying 
widespread and hrieraied in some industries 
fait not others? Leading Law P ractices wfil 
give their opinions on (hex matters. Farther 
details from International Professional 
Conferences Ltd. 

Tefc 061 445 8623 

AMSTERDAM 

--———-eg! 

DECEMBER 5-6 

COMPETITIVE INTELLIGENCE 

Seminar for managers who want to team 
how Competitive Intelligence support* 
both operational effectiveness and strategic 
petitioning. Topics include aims and rate 
of intelligence in firms, collection 
methods, analytical techniques, 
organisation, and counter-intelligence. 
Principal lecturers are funner profession*! 
intelligence officer*. 

Contact: Business Research Group 
Tel: 022 929 1900 Fox: 022 7RS 0824 
CENEVA 

MARCH 27-29 1995 
"Sub-Saharan CHI & Minerals" 
Conference 

Co-hosted by the SA Chamber of Mine*: 
Gabonese Ministry of Mines A Energy: 
Nigerian National Petroleum Corporation: 
Smangpl: aad Europe Energy Environment 
Speakers tnetnde Cabinet Munster* from over 
25 African commies. P h ase coatact tiuroix 
Enetgy Environment. 3 Haync Street, Londc* 
EC1A9HH. 

Kl 44-71-600-6600, fax 44-71-600 4044. 

JOHANNESBURG 




Hi .. 

I 

*w, 


It has been a pretty lousy year 
for conventional investors. 
Bond markets have collapsed: 
equities, as measured by the 
FT-A World Index, are up just 
5 per cent Even gold has gone 
nowhere, having started the 
year at $391 an ounce and risen 
to just $396. The vexing excep* 
tion has been commodities: not 
oil or precious metals, but bor- 
ing old copper, rubber and 
soyabeans. The Economist 
commodity index is up some 40 
per cent since January. The 
smart fund manag er would not 
have spent his time shuffling 
paper assets. He would have 
rented a warehouse on the Rot- 
terdam docks and filled it to 
the roof. 

Commodities are mostly 
regarded these days less as an 
opportunity than a threat. 
They are a harbinger of infla- 
tion. and thus bad news for 
other types of asset Given the 
historical evidence, this is not 
unreasonable. The bond mar- 
kets are a distinctly fallible 
guide to future inflation; 'some- 
times they overplay it some- 
times underplay it, sometimes 
get it wrong entirely. Commod- 
ities, an the other hand, are 
not so modi a guide to infla- 
tion as a component of it 

How big a component is 
another matter. As the accom- 
panying charts remind us, 
there have been three surges 
in world inflation since the 


The Global Investor / Tony Jackson 


Commodities: the vexing exception 


early 1970s: in 1973-4, 1979-80 

and 1987-90. In each case com- 
modities (measured by the IMF 
index, which gives a longer 
series) started moving several 
months in advance. But there 
were also two subsidiary blips 
In inflation, in 1976-77 and 
1983-84. In each case the com- 
modities inde* jumped sharply, 
even though the underlying 
trend in inflation was still 
downwards. The 40 per cent 
rise in the Economist index 
thus poses an obvious ques- 
tion: is it forecasting a surge or 
a blip? 

In one impo r tant sense, this 
rise is abnormal. It began not 
at the start of the year, but the 
previous spring. Despite that, 
the rise in retail prices in the 
developed world is still sub- 
dued and uncertain. This 
implies an historically unusual 
reluctance by consumers to 
pay higher prices. Several rea- 
sons can be advanced for this: 
in particular, the revolution 
in working practices through- 
out the developed world, which 
has created an unpreceden- 
ted sense of job insecurity 


OECD InibiqonTate. . annuel. % ohanfi® H CPl 

15 --«—»-»■ 

; p* — < — i'.'. I . n i' > " V i.'' >'■ i ,i 

B^Cbnyroprttiea tada#*, An J372 «* Tpa ■ 


fuafc w** j*»ctou» nwMt 


tfStang^xmdyMd, %. . 

■ 

~ T - 


'-'1872 74 T»_ 78 80 82 04 88 

StuccOiaattMin '.' .. 


80 92-94 


at all levels of society. 

Whatever the cause, this 
phenomenon impHas in turn a 
squeeze on manufacturers’ 
profit margins. There is anec- 
dotal support for this: the tyre 
manufacturer able to raise 
prices by only 5 per cent in the 
face of a soaring rubber price, 
the food company faced with a 
50 per cent rise in the nut price 
and unable to charge more for 


Total return In local, currency to 29/9/94 

, ■Kfehanqa war parted 


Cash 
’ Week 
.'Month' . 

. Year - 

••'US ■ 

**3 • 

0.41 

3*0 

j&S-i 

0*5 - 
■021 
2*0- 

0.09 

041 

5*8 

"iMM 

0.10 

.0.46 

6.19 

-date- 

0.15 

0*9 

8*0 

UK 

aio 

042 

5*9 

Bonds3-5yaaf 







Weak.. . 

-053 

. 0.07 

(130 

0.4S 

1*7 

043 

Month 
■Year ■ 

-1*0 ■ 
-2:47 

1*4 

1*0 

-0.71 

1*4 

-0*8 

0.06 

2.42 

2*1 

-042 

016 

Bonds 7-i0 year 



. 



Week- - - 

-034 

-0*4 

0.64 

0*4 

2.03 

0.63 

Month 

Year 

-2.09 
-7*6 ' 

1*0 

050 

-1.42 

-2-93 

-1*7 

-6.18 

2*9 

•4.09 

-1*0 
-3 M 

Equities . 







■ .week. 

tin 

0.1 

-0* 

. 0.1 

08 

-0.7 

. Worth ' 

-2.7 

-3* 

-6.1 

-7.6 

-3.1 

-7A 

Year 

■~2_5 

-0.7 

7.7 

-4* 

12* 

2.6 


Sdocc Cadi 4 BmS > Latawt Siuifm 
- FPfcfeattaa Work! EkScm ana jofatfy ownad by TTW 
GoUfttan Sochi A Co. and NtfWatt SkuMu LOnBad. 


EquHte-O NatWW SacuWaa. 
Financial Timas LMtM, 


a packet of roasted peanuts, 
and - at the lunatic end of the 
scale - UK newspaper propri- 
etors slashing their prices in 
response to a jump in the cost 
of newsprint. 

This situation can only be 
finally resolved in one of two 
ways: either consumers agree 
to pay more, or manufacturers 
are forced to pay less. If the 
former, central bankers win be 


confirmed in their suspicions 
of reviving inflat ion and will 
jack up interest rates. So much 
the worse for commodities as a 
non-interest bearing invest- 
ment If the latter, so much the 
worse for commodities again. 

The choice between these 
two options cannot easily be 
resolved. Indeed, it might be 
termed the dominant theme for 
investment in the mid 1990s. 


The original upsurge of infla- 
tion in the developed world 
can be set down to various 
causes: the Vietnam war, the 
collapse of Bretton Woods, the 
first oil shock of 1973. 

There is no clear explanation 
of why fafiatinn should then 
have remained endemic for 
over 20 years. 

Without knowing why the 
phenomenon was there in the 


first place, it is hard to be con- 
fident that it has gone away. 

Let us suppose that the 
dragon of inflation is indeed 
loose again. 

In that case, commodities 
might be expected to do well in 
the short run. But since they 
have done spectacularly well 
now for 18 months, it is worth 
recalling their record over the 
longer haul 

Since t he beginnings of infla- 
tion in the early 1970s, retail 
prices worldwide have gone up 
fivefold and commodities 
threefold. 

Equities have gone up by a 
factor of six: they have also, of 
course, provided an inflation- 
proof stream of income in the 
form of dividends. 

The fact that commodities 
have done so dismally com- 
pared to equities is hardly sur- 
prising. 

The whole thrust of 
advanced economies is away 
from basic materials and 
towards services and added 
value. First IBM overhauls US 
Steel, then Microsoft overhauls 
IBM. In the whole scheme of 


things, raw materials are 
becoming less and less impor- 
tant This in itself should stand 
as a warning to investors. 

Commodities may lag behind 
the world economy in their 
sum of value, but global 
savings do not It follows that 
as a home for investment, com- 
modities become progressively 
less and less liquid: and that 
any attempt by investors to 
switch into them in size is 
more and more likely to lead to 
speculative excess. 

How far this is happening 
now is not easy to determine. 
Even manufacturers, who buy 
commodities for their primary 
purpose of consumption, can 
only talk anecdotally about a 
degree of speculative pressure. 
But an unusual shift of portfo- 
lio funds into commodities in 
the past year would go same 
way to explaining the apparent 
paradox whereby commodity 
producers have been able to 
push through price increases 
which their customers know 
they cannot pass on. 

With or without the return 
of inflation, this suggests that 
rather a’ risky bubble may have 
developed in the commodities 
markets. 

Only last week Goldman 
Sachs, the all-powerful US 
investment bank, sent a bull- 
ish circular to its clients enti- 
tled “The Case for Commodi- 
ties”. You have been warned. 




A 


Think of 

flhina and yon 
are thinking 
in superla- 
tives. It is the 
world’s most 
populous 
country, with 
1.2bn people. 
Its economy grew at an aver- 
age annual rate of 9 per cent 
in the 15 years to 1993. In the 
past two years alone, it grew 
by a quarter because of double 
digit growth in 1992 and 1993. 

As the chart shows, China 
attracted well over $20bn in 
foreign direct investment last 
year and, according to the 
International Monetary Fund, 
is the largest single recipient 
of foreign direct investment in 
the developing world. It was 
also the biggest single bor-' 
rower from the World Bank in 
its past financial year. 

But when it comes to man- 
aging change through eco- 
nomic and financial policy, 
the Chinese authorities shy 
away from the big bang 
approach. A study of the 
growth of capital markets in 
China*, produced by an IMF 
staff team under Morris Gold- 
stein, deputy director of the 
Fund's research department, 
has found that the Chinese 
moved ahead a step at a time. 
They introduced capital mar- 
kets on an experimental basis, 
hoping to learn from experi- 
ence, and made sure that 
change came gradually and 
incrementally. 

While the development of 
Chinese capital markets is 
still in its early stages, the 
study predicts that their 
growth “will rank as one of 
the important financial events 
of the 1990s." 

The Fund suggests that Chi- 
na’s experience could have 
some lessons for other coun- 
tries making the difficult 
transformation from commu- 
nist state p lanning to a mar- 
ket economy. 

More important, the IMF 
believes China is gaining 
man y advantages from capital 
market development More is 
involved than simply raising 
finance. China's emerging cap- 
ital markets are “best viewed 
as part of the cutting edge of 


Economics Notebook 

The Chinese 
superlative 

C*«M»a ; .7 ; - V 

tesuobfaectlitfavYuan bn' . . J. ': Rxeign<firectii*« 9 teiBOt 7 $bn 

120 -H .. ;v _ 



V . . V* ' 


1982 M«(88iB7bSW&91 

Soui^CNnemAuilmtiSmNF--' • 



82 84 86 88 90 90 


the reform process," the Fund 
says. 

Securities markets can pro 
vide China with a means to 
absorb international financial 
techniques and practices. The 
listing of a company’s stock 
on an exchange helps good 
corporate governance by 
creating a system of discipline 
for companies that is indepen- 


nised stock exchange only 
opened in Shanghai in Decem- 
ber 1990, the IMF reports that 
the value of equities listed on 
the Shanghai and Shenzen 
stock exchanges had reached 
$40bn at the end of last year - 
equivalent in value to the 
Argentine or Turkish mar- 
kets. In October last year, a 
Chinese company was listed 


The IMF attitude seems to be 
that *it may look funny 
but it works’ 


dent of bureaucrats. The 
development of securities mar- 
kets can speed deregulation 
by increasing pressure for de- 
control in other areas of 
finance. For example, once 
savers get used to market-de- 
termined yields through 
equity investment, there wQl 
be pressure to boost the rates 
of return on other assets. 

The spread of equity in 
China has been rapid. 

Although the first recog- 


on the New York Stock 
Exchange for the first time. 
More than 4,000 companies are 
said to have issued unlisted 
shares that are traded infor- 
mally in kerb markets in Chi- 
nese cities. 

Equities are only a small 
part of the China's capital 
market renaissance, however. 
The chart shows how new 
issues of all securities, includ- 
ing bonds, certificates of 
deposit and shares, have 


mushroomed in recent years. 

Issues and issuers have 
become more varied. Finan- 
cial futures have been intro- 
duced over the past two years. 
In 1991, the most recent year 
for which figures are avail- 
able, issues of bonds by finan- 
cial institutions and enter- 
prises soared. 

But the IMF reports that the 
authorities have followed 
rather than led this feverish 
activity. Official approval for 
the issue of securities by 
enterprises was only given 
after many had issued securi- 
ties on their own initiative. 
Similarly, securities were 
traded on the Shanghai and 
ShenTan stock exchanges long 
before they were officially 
opened in 1990 and 1991. 

It might be thought that the 
Fund would react with some 
horror to this state of affairs. 
But instead, the attitude of 
the report seems be that “It 
may look funny but it works". 

The IMF clearly sympath- 
ises with recent temporary 
retrenchments in the process 
of liberalisation after activity 
in China's financial markets 
ran ahead of the authorities' 
intentions. 

It even gives qualified 
approval to the practice of the 
Chinese authorities of picking 
which companies will issue 
shares on regulated 
pvchang es- This looks a funny 
way to create a market-based 
economy, but the Fund is win- 
ing to tolerate the system so 
long as the authorities are not 
motivated by non-economic 
issues such as the desire to 
spread listings geographically. 

Indeed, the Fund's de t a iled 
analysis of China’s emerg in g 
capital markets may tell us as 
much about the IMF as about 
flhirm- it shows that the IMF's 
pin-striped economists can be 
pragmatists after alL 

Peter Norman 

Jr International Capital 
Markets: Developments, Pros- 
pects and Policy Issues, Sep- 
tember 1994, 520 from IMF 
Publication Services, 700 19th 
Street. NW, Washington, DC 
20431 US. 


COMMODITIES 


Richard Mooney 


FT- ACTUARIES WORLD INDICES 


jointly complied by The Rnandai Times Ltf, Goldman. Sacha & Ca and Na«W«t SecurtSw Lid. m cor*n*o» wMi tta 
NATIONAL AMD _ t mi nifflfT T oft 4004 — ■ — ■ THURSDAY S 

US %ch » POtfid Uxd Locd % 011X3 08 

Doibr dnee Stertkifl Yen DM Cuneney chfl from Dtv. Dote Storing 

31/12*3 index Index Index Index 3U12/33 Yield tori* Indat 

7— ^ i7n *a 2* 160-32 106.69 137-56 15128 -6-3 a 62 171.16 16051 

AuttnriU(S8) i An KT l-ULBO -loa 108 184.83 173*3 


a tnetBute of Actuaries and the Faculty of Actuaries 

SEPTEMBER 2B IBM — ■ DOLLAR INDEX 

Local Year 

Yen DM Cuneney 52 week 52 week ago 
Index Index Index rtgh Low (approx) 


r~— ^ 170 *a 2* 16032 106.69 137-56 15828 -03 a 62 171.16 16051 

Audnauff* 18432 -04 17028 115*1 146.67 MOW -106 108 18*83 17333 

AwWo(ig 1.2 154.80 10301 132.81 12082 -106 425 16022 15494 

BdakwOT 86.53 111.56 134.38 32 050 13052 12090 

SggPJ !”? i 4 £35.61 15079 202.15 207.45 -02 1.43 25042 23083 

DBrnwk P3) z a 144.63 183X0 22* 0.77 17037 187.26 

Rntadjap So 15051 10048 133.42 13737 -107 322 18051 15520 

Iifi 129-70 8031 mm m» - 12.1 i*s i4o» 131.53 

^7“ 36070 34535 31034 389.07 -199 3.12 39017 37432 

Hong tons (56} ^58 120.15 16023 185.25 00 345 20063 193.77 

MandJW ^ 52.47 67.66 97.73 11.4 1.58 85.60 8027 

ta4y(5^. --gU* g* , 50.03 99.04 12072 8084 OB 0.77 16028 15031 

528.06 35007 461.36 552.61 -100 1.52 S62JJ7 527.08 

Mdayda ^7) ^ 1415.42 1824*4 8411.61 07 1*2 2302.16 216080 

MadcoflBJ -2262-5° "fj 13 1.07 1B8.00 16017 -08 347 21073 197*1 

Netfwriand(271 45 _ ie sa2S 63.08 -1* 075 72.77 0*4 

N«wZ04|andfi4) -gJJ 122*0 i57.es mi2 - 1 * i.84 iea*4 184*8 

-==£S IS SS 12 SHI SS 


«« 7085 52.47 67.66 97.73 11.4 1*8 

1MM 22.6 15003 99*4 12072 99*4 OB 0.77 

” _^ 4 528.06 350*7 461*6 55061 -10* 1*2 

Madco (ifl l J= ,M— ongci S2 19096 131.07 1B8.00 16017 -08 347 

tettartandpn.- ” 67^ 45.18 5025 63.B8 -1* 9.75 

N«yZeMl6f14) -gJJ 163.79 122*0 157.69 18012 -1* 1.84 

(44) 377^ „ mg6 251*3 290*4 16.1 2*1 

Sd*AMca(53) 35 1M*0 8084 111*7 135*1 -104 4*5 

— -1*-® 208.50 13075 178*9 245*9 14 1.83 

?***?P? “"^2 09 151*7 101.13 130*9 129*6 -13* 1.88 

SSSSS-5r=:!K ^ 252 12-2 -H S 


south Africa P9) gig X 130*0 8084 111*7 135*1 -104 4*5 140*7 131*5 

Sp»*n(42J —■ 13076 178*9 245*9 14 1.68 222*8 20045 

Swden(36} OS 151*7 101.13 130*9 120*6 -13* 1.88 183*3 153« 

SwtaBttand (47} 12144 156.58 182.48 -11* 4.17 18079 18079 

Ss 11019 152*9 183*3 -05 2*8 188.77 177*1_ 

"7^ 15014 105*4 135.69 146*1 -9* 3.13 16076 15025 

EUROPE Igg JSro 135.66 174.78 204*2 1* 145 21080 203*0 

I!? 105*2 136*6 11078 4.7 1.09 170.19 159.60 

Pacfflc Sarin (74Q »» 1*7 1»^ 13&0S 12 fi*8 -1* 1.95 1«45 153*1 

Euw-Padflc (1405) ne*2 149*5 185.15 -0* 2*8 18064 174*8 

North America (819) -]»■« -° S JJfg 3424 121*1 12032 -8* 2*2 152*1 143*5 

Europe Ejl UK (513) 164.76 212.43 23440 -122 2.77 285*1 249*6 

Pad8c Ex. Japan p7S) “JJ ^ iawo 137*9 129*2 -14 1*6 17147 100*0 

Worid Ex. US (1645) 170J1 M ^ 14 H30 144*4 0* 2*6 174*6 163*9 

SSEIESkrrSS B SS s j-- JSS 3 3! SS iSS 

The Worid Inflat (2161) - 175-73 ™ ^ UmHnTignT 

Copytn The Rner dri liw* fS£*. SM rintf mlW4i Baa* Natte Dec 30. 1988. 

Be*e VNW Ok 31. 1686 - i<tt 2^" WMdWrf PmSwuU (rip-* Hmmnm Ootp. and 8yan«xiiii U»0 

COBMMHM ohHMa trim eOnc* 3rt0»* 


11.4 1*8 K.60 8027 

OB 0.77 18028 15031 

10* 1*2 562*7 527*8 

07 1*2 2302.10 216080 

■5* 347 21073 197*1 

-1* 075 72-77 6024 

■1* 1.84 106*4 184*8 

-02 1.83 380*7 357*5 

101 2*1 312*7 293*9 

104 4*5 140*7 131*5 

1.4 1.83 222*8 20845 

12* 1.88 183*3 153*3 

II* 4.17 18079 18079 

05 2*8 188.77 177*1 


141*2 14016 18090 15085 168*8 


13006 (US SheWli IW.4S (Pound Sartutfwid 133*2 (Loc*4- 


Rubber pact flexibility needed 


Rubber producers will be 
looking for concessions from 
consumers as the latest round 
of talks on a new Inter- 
national Natural Rubber 
Agreement get under way in 
Geneva today. 

Representatives of Thailand, 
Indonesia and Malaysia, which 
produce more than 80 per cent 
of the world’s rubber, told the 
Reuters news agency last week 
that consumers would need to 
make compromises to ensure a 
new pact was successfully con- 
cluded in the interests of both 
sides. 


The world’s three top pro- 
ducers said that they were cau- 
tiously optimistic that the two- 
week mating, under the aegis 
of the UN Conference on Trade 
and Development, would be 
successful. 

European rubber consuming 
countries said meanwhile that 
they supported plans for a new 
pact but warned that they had 
limited room for compromise. 
“Everybody wants to finish,” a 
consumer delegate told Reu- 
ters, . . the issues are very 
simple. But we won’t make 
any concessions that bear in 


thorn the rhnnro tha t, this pact 
mi ght, fail later.” 

Inra aims to stabilise rubber 
prices through the operation of 
a buffer stock buying and sell- 
ing system. 

FoDowing a recent surge to 
6‘/i-year highs on increased 
Chinese demand, cuts in Thai 
and Malaysian supplies and 
speculative buying, producers 
are calling for the reference 
price, which controls the levels 
at which the buffer stock man- 
ager can buy or sell, to be 
raised by 5 to 12 per cent from 
the 19&S4 Malaysian/Singapore 


cents a kilogram level it was 
fixed at In February 1998. 

But consumers say the rise, 
if any, should be no more than 
4 per cent “[Support] Prices 
have to move with the 
long-term trend,'* one said. 

A commodity trade expert 
commented: “Delegates are 
always influenced by the 
recent prices, but they should, 
realty be looking to the period 
1996 onwards for five or seven 
years . . . That is the relevant 
period they are trying to stabi- 
lise and they will have to jus- 
tify their results at home.” 



A L S T H OM 


At a meeting chaired by Pierre Suand, the Board of Directors 

of Alcatel Alsthom, the Paris based telecommunications, 
power and transport equipment group, examined the 
group's audited report of activities and financial statements 
for the first half 1994. 


1994 first half 

Net results: FF 2 billion 

Working capital provided 
by operations: FF 6.1 billion 


The year 1994 has proved to be more difficult than was 
announced last January, despite the increase in the group's 
market share in Telecommunications, especially 
in the United States and in Asia: today, the outlook for the 
year 1995 is better. 


Consolidated income 

statement (in FF million] 

First half 
1994 

First half 

1993 

Fufl year 

1993 

Net Sales 

78,079 

73,628 

156,334 

Income from operations 
after Financing 

4,376 

5,940 

14,278 

Net income 

2,022 

■ 3,006 

7,062 

Working capital provided 




by operations 

6,085 

6,832 

13,600 


First Half 1994 net sales increased to FF 73.1 bOfion over 
the corresponding period in 1993. At a constant structure and 
ex chiding exchange rate fluctuations, the increase was 1%. 
This evolution is due, on one hand, to a weakening of sales 
in the Telecommunications sector resulting from the 
deregulation of the markets and the continuing economic 
recession in key countries where the group has major 
subsidiaries and, on the other hand, to a sustained growth of 
invoicing in the Energy and Transport sector which benefits 
from a healthy order backlog, as well as in the Battery sector 
which is the first to profit from die economic recovery. 
Income from operations after financing amounted to 
FF 4.4 bOfion compared to FF 5J billion in the corresponding 
period in 1993. 


This decline is due to several factors: 

• The significant difficulties experienced by Alcatel SEL 
in Germany. In addition to the sharp fall in equipment 
orders, the German subsidiary has suffured from a 
dramatic drop in prices and incurred higher software 
development costs. 

• Exceptional losses in the telecommunications 
subsidiaries in Turkey and Brazil. 

• The increase in the interest charges relating to the 
financing of external growth as well as the lower 
financial income due to the evolution of interest rates 
from one period to the other. 

Net income amounted to FF 2 bQEon compared to 
FF 3 billion for the same period in 1993. For the first half 
1994, Working capital provided by operations amounted to 
FF 6.1 billion against FF 6.8 billion in the first half 1993. 

Outlook 

The group has taken active measures to turn around the 
profitability of its German subsidiary. Alcatel SEL has 
announced the reorganization of its production activities 
and a reduction of more than 20% of its workforce between 
now and the end of 1995. One half of this reduction will be 
accomplished before the end of this year. 

Nevertheless, these measures and the economic recovery 
beginning in Europe will not have an immediate impact 
on the group's performance and it is expected that the 
results for the second half 1994 will be at the same level 
as those registered in June 1994. However, Working 
capital provided by operations should be around 
FF 12 billion for the foil year 1994. 

Beyond 1994, the technological advances and the gains in 
market shares, particularly in the United States and Asia, 
enable the group to forecast that the coming years will be 
better, which is in accordance with previous indications. 

Share Capital 

The payment of the 1993 dividend in share form resulted 
in the creation of 2,897,546 new shares. Following 
bond conversions and stock options between January 1 
and August 31, 2994, Alcatel Als thorn's share capital 
at August 31. 1994 stood at 146,544,732, eligible for 
dividends from January 1, 1994. 

The Board of Directors extended die subscription period 
until June 1995 for the capital increase reserved for 
employees, which was decided at the Board meeting on 
April 6. 1994, at a subscription price of FF 565 per share. 



The Mufcii Laden to jprwd betnng - Fm*nri»J «nd Sport*. For j 
braAirendu aacoun: (ppUcMloa fbnn caS 071 2S3 3667 
Accounts «re aomtily apemd wiiMa 72 boon. 

See cur Df-io-diK prieca Sajn 10 9p.m. mTeleini pegs 60S 




OptionTrader 


Options Software by INDEXIA 

■-iHi: Tel ’ (04421 S 780 15 * ?«* ' (04-12) 874834 


DO YOU WANT TO KNOW A SECRET? 

TI 10 LD*. Gann Seminar w3 show you how the motets REALLY wortt The anaang 
taring fodviquaa of lha tegoidaiy V/D. Gam cai increase your prate and contin your 
( 08888 . Hoh 7 ThoCs In mcreL Ring 061 474 0080 to book yew FREE ptacs. 


Currency or Bond Fax - FREE 2 week trial 
also daily gold and silver faxes . : ..v. Anno wrutby 

rrom Cr.KM in LA 07! -734 7174 

London VAR 7KD.UK- rex 07 1-439 496(1 

;flLir.-c rjto LiptCULiAs lo: Over 2'J yi*."irs „ :.V3&A v«r.!i 


<a.,>9m>ii>ii ■sinHnvwH :»cpm m Shnmiiwi .ini joi am dub 'siaflJBi io flirtJOirUoui otjj 401 m ep Sui 















26 


FINANCIAL TIMES MONDAY OCTOBER 3 1994 


EMERGING MARKETS: This Week 


The Emerging Investor / Canute James 

Fillip for Caribbean cross-border trade 


Cross-border trading in the 
Caribbean, which has been 
sluggish since it started in 
1991, should get some encour- 
agement from the decision of 
C1BC (Canada}, the commercial 
banking group, to offer for sale 
46m shares in CIBC West 
Indies Holdings, its Caribbean 
subsidiary. 

The offer, which opened on 
Monday September 19, will 
close on Thursday October 6. 
and is valued at £24 Jim. 

The hopes for increased 
cross-border trading have been 
raised by the decision of CEBC 
to make the share offer simul- 
taneously in six Caribbean 
countries - Antigua, Barbados, 
Jamaica, St Lucia; St Vincent 
and Trinidad and Tobago. The 
shares will be listed on the 
three Caribbean Community 
(Caricom) stock exchanges in 
Barbados, Jamaica and Trini- 
dad. It is these three which are 
at the core of the nascent 
regional stock market 

“This is a move in the right 
direction,'' says Mr Wain I ton. 


manager of the Jamaica Stock 
Exchange. “It is the first genu- 
inely regional public offer. We 
may not get the robust cross- 
border trading that we all wish 
for, but it sets the stage for 
other companies in the region 
to recognise that an entire cap- 
ital market in the region is 
available-” 

This assessment is shared by 
Mr Hugh Edwards, manager of 
the Trinidad and Tobago Stock 
Exchange. “With CIBC enrairig 
to the market with an offer 
spread out over six Caribbean 
countries,” he says, “this 
should add some impetus to 
the countries without stock 
exchanges to begin buying and 
selling shares.” 

Cross-border trading is part 
of a wider effort by the man- 
bets of the Caribbean Commu- 
nity to integrate their econo- 
mies and prepare the ground 
for a planned common market 
and monetary union. “This 
offer by CIBC will certainly 
open the opportunities for 
other companies to try similar 


Ten best performing stocks 


Stock 

Country 

Fffcfoy 

30/9/94 

Week on me* change 

S X 

Yapl Ve Kredi Bankas) 

Turkey 

D-0920 

0.0256 

38.48 

Eragfl Demir Ve CeHk 

Turkey 

0.0877 

0.0196 

28.72 

Cukurova Bektrik 

Twkay 

0.2659 

0.0409 

18.18 

Shinhan Bank 

S-Korea 

22-9122 

23549 

14.23 

Turkjye Is Bankasi 

Turkey 

0.2542 

0.0263 

11.54 

Pakistan State CM Company 

Pakistan 

iao3io 

1.3390 

11.45 

International Commercial Bank 

Taiwan 

3J3579 

0.3678 

10.24 

President Enterprises 

Taiwan 

1.8547 

0.1704 

10.11 

Phatra Thanakit 

Thailand 

9.8498 

0.8807 

9.82 

Ssangyong Oil Refining 

S.Korea 

31.0505 

2.7709 

9.80 


Soukme Boring Securities 


placements simultaneously in 
several Caribbean states,” says 
Mr Basil Buck, president of 
Buck Securities, Jamaican 
stockbrokers. “There are many 
companies which are well 
placed to do this, with subsid- 
iaries and branches in several 
Caribbean states. 

"The CIBC offer , will also 
stimulate the efforts at cross- 
border trading which has been 
In the doldrums for many 
months,” adds Mr Buck. 

Caribbean brokers have 
argued repeatedly that there is 
potential for vibrant cross-bor- 
der trading and the develop- 
ment of the regional stock 
exchange; the three markets 
list an aggregate of UO compa- 
nies with a combined capitalis- 
ation of £2.41hn. 

They have also suggested 
that closer ties be established 
with the exchange In the 
Dominican Republic. Guyana 
is planning to establish a stock 
market as is the Organisation 
of Eastern Caribbean States, a 
grouping of seven faianda with, 
a common currency. 

The offer by CIBC (Canada) 
represents about a quarter of 
the shares of its Caribbean 
subsidiary, which is incorpo- 
rated in Barbados and which is 
the holding company for the 
bank’s operations in Barbados 
and other Islands hi the east- 
ern Caribbean. 

It also has a marginal major- 
ity stake in CIBC Jamaica and 
a 4 per cent holding in Repub- 
lic Rank, the largest in Trini- 
dad and Tobago. CIBC’s 


Bahamian b usine ss is soon to 
be managed by CIBC West 
I ndi es Holdings. 

“The Caribbean is a very 

thin market with a lot Of Cash 

and very little to invest in," 
says Mr Shastrie Ablack, man- 
aging director of CIBC West 
Indies Holdings. A minimum 
sale volume of 30m shares will 
make the offer a successful 
png , he adds. 

Hopes for a more active 
cross-border market have been 
depressed by periods of eco- 
nomic difficulty and uncer- 
tainty in some Caribbean econ- 
omies. A very volatile foreign 
exchange mark et in Jamaica, 
and high inflation which has 
affected the financial services 
market (there is currently no 
activity in the bond market), 
accompanied by currency 
instability, have compounded 
changes in exchange rates in 
Trinidad and Tobago and 
rumours of an impending 
devaluation in Barbados. 

The majority of individual 
investors in Caribbean stocks, 
and some small institutional 
ones as well, tend to use their 
shares as longer term invest- 
ments rather than lo oking for 
opportunities for buying and 
selling, consequently reducing 
the vibrancy of the regional 
markets, according to brokers. 

“The success of this offer 
will determine the degree of 
vitality it will add to cross-bor- 
der trading, and there is at 
least one other company which 
is watching this and which is 
likely to make an offer spread 


CarRsbean trade 

Cross-border voiuma (m units) 



over a similar area.” says Mr 
Edwards. 

Regional investors in the 
CIBC West Indies Holdings 
offer will be able to indulge in 
arbitrage on the secondary 
market by, for example, buying 
low in Trinidad and selling 
high in Jamaica. Prices on the 
three markets may not always 
be in balance. 

The effort at cross-border 
trading is still bedevilled, how- 
ever, by problems in the man- 
ner and speed of settlements. 
Since none of the currencies 
used by the three exchanges is 
convertible, settlements are 
being done through what Mr 
I ton describes as “a cost ineffi- 
cient method." 

“We are settling in US dol- 
lars through a third party in 
New York,” lie explained. 
“There is, however, the pros- 
pect of us using the network of 
one of the regional banks." 


CURRENCIES 


Philip Coggan 


Payroll figures hold the key to rates 


The start of this week’s trading on the 
foreign exchange markets is likely to be 
dominated by reaction to Saturday's 
partial deal on US-Japan trade talks. 
But by the end of the week, attention 
will turn to Friday’s US non-farm pay- 
roll figures, which some feel may push 
the Federal Reserve into increasing 
interest rates. 

Although the dollar responded well 
an Friday to rumours of a trade deal, 
analysts do not expect the US currency 
to gain much in the long term from a 
partial agreement Economic fundamen- 
tals will have a greater impact on the 
Japan trade surplus, which many 
believe is the reason for the continued 
strength of the yen. 


The non-farm payroll numbers are 
expected to be strong, with a Reuters 
poll of economists showing an Increase 
of 250,000 In September, accompanied 
by a drop in the unemployment rate to 
6 per cent 

The latter figure is seen by some 
academic economists as equivalent to 
“foil employment” apd accordingly ana- 
lysts believe the numbers may under- 
pin a tightening of policy by the Fed, 
which decided not to raise rates last 
week. 

If the Fed does not raise rates after 
Friday's numbers, attention will switch 
to next week's producer and consumer 
prices data. 

Even if the Fed does raise rates, how- 


ever, it is for from clear that this will be 
beneficial for the dollar. Frcbang ia rate 
movements this year seem to have been 
governed by trends in the bond market, 
rather than short rates. 

To date, the Fed’s ti ghtening moves 
have shown little sign of convincing 
bond investors that the inflation threat 
has been eradicated. 

The dollar may have some scope to 
strengthen against the D-Mark in the 
run-up to the October 16 German 
general election. Traders will con- 
centrate on the prospects for Chan- 
cellor Kohl’s coalition partner, the 
FDP, which is struggling to get the 5 
per cent it needs to return to Parlia- 
ment 


Sterling was on the sidelines for 
much of last week and this week's eco- 
nomic data is unlikely to have much of 
an impact on the pound, analysts say. 

However, Mr Avinash Persaud, head 
of currency research at JP Morgan 
(Europe) thinks the pound is due for a 
period of strength. 

“By raising base rates by half a point 
on September 12. well ahead of a deteri- 
oration of either the trade account or 
inflation, the UK authorities have bro- 
ken with the pattern of the past and 
severed the comparison with US mone- 
tary policy,” he says. 

Mr Persaud expects the pound to 
break through the SL60 level by the end 
of the year. 


FT GUIDE TO WORLD CURRENCIES 


The able below gives the latent avaBabie rates of exchange (rounded) against four hay curendee on Friday, September 30, 1894 . In some cases the rota la nominal. Market rates are the average of buying and esHhg rates 
except whore they era shown to be otherwise, hi some cases market rates hove bean cata d atod tram those at foreign currendas to which they are Bod. 


Sara 


IMS D-MARK 


YEN 

O' 10H 


CHTO 


inS D-MARK 


Y» 

tXIDOl 


EBTB 


US S D-MARK 


YW 

PtWfl 


■*S3 


Afowta (Dm*rt 

Anson (FT Ft) 

PpFeaatJ 
Angels (NwKwanra) 
PMgm (E Csrr S 

Aigmikm (PMol 

Amos (FVxfcl 

NO 


157JBSO 


Atoms 


Botnet 
Bstssric Is 


Bmtmoa * 

BetgMn 

set* 

Banin 

Bemuds 

Bum 


Brart 

Brunei 

BMfiwU 

Bundno Faso 

Bums 

Bums 


(Port escudo) 

QMsmsS 

pmsfl 

Po Peseta) 

(WW 

(Bart 3) 

CBetaftl 

IBS 

tOFAR) 

(Benraidisn 3) 

(Npitruie 

(BosvWnrt 

CPUs) 

M 

{BnawlSl 

0*1 

{CFAftJ 

gtysg 

(BunmcSFi) 


IUM1 

201763 

221547X 

4««7 

1.6771 

18*73 

2.1311 

iwi® 

24840 


1.5770 


280084 

100.188 

408878 


(CdPaeal 

IRoutM 


Centeds (FM) 

Common (CFAFr) 

Cnde (Comfort 8) 

Csnsryla EpPeerts) 
Co. Voids feu Escudo) 

Csymsnb (QS1 

CenLAtr. Reg (CFA Fit 

Cnad {CFAFr) 

CM* (CWeon Poeoi 

emus (YtionJ 

Cdombw ‘ 

OS* 

Cortona (Ft) 

Congo (Start {CFA Ft) 

Coots (ice (Cam) 

Carnarvon* (CFA R) 

Croatia (Kuna 

Cubs (Ct4tsn Paso) 

Optus (Cyoros S3 

czscn Rsp. eccnm) 

Denman (Psmsti Krona 

DpxwORsp (0(0 Fr) 

DatruMca £ Cent) # 

DoroS S ee n Rep 0 Peso) 

(Suers) 


aypamU 

BBshs d or Court 

Euan Gomes icfafu 

Estoris (Kroon) 

BriQpta (BhkwMn Bkil 

FSUentls (FWkQ 

Faroe Is (DanWi Krona) 

Ffh FBS 

Ftatand (M*>dal 

Fierce (Fi) 

Ft. CyAOica CFA Fit 

Fr.CMsM (Lucri Ft) 

fi-. PacUe w (CFP fq 

Gwen (CFA FI) 


202.783 
812918 
3.1788 
613378 
3.1880 
834.810 
1.5770 
48^587 
7-3848 
+*7*6 
1-3488 
243TB 
98 8870 
834.010 
9.1963 
381300 

4083.01 
834.810 
2.1183 
202.763 
131.061 
1J09B 
834.B10 
834 JO 10 
650,118 
134816 
1330.18 
1.0283a 
4217.85m 
825860 
B34-B10 

esenny 

KK01O 
00289 
1.1983 
0.T466 
44.1330 
83078 
280.700 
4.2847 
218546 
3673040 
3378 JBe 
93525 
118384 
834410 
18-5468 


13L57S 

140487 

2.7043 

1 

1.7828 

13813 

103165 

1583 


I 

1377 

128-576 

383 

2J7T44 

3132 

2-0031 

529438 

1 

313825 

4.87 

£.7105 

038* 

14824 

81390 


1BBQ21 

843837 

284042 

14122 


906483 

1.7438 

03445 

1.1508 

03709 

73371 

101386 


03448 

0243 


130 

93078 

2.2781 


63481 

834310 

83481 

161375 

634310 


83124 

241.768 

2888.1 

529429 

13413 

128375 

83.1014 

03306 

520420 

529.428 

41238 

83299 

843378 

03607 

287448 

398.741 

£20420 

150303 

528428 

5.7234 

0.7565 

04733 

273854 

03861 

178.002 

2.7043 

13.7317 

228538 

714030 

33841 

6.7738 

529428 

123851 

54089 


0.8341 

8.0881 

14433 

43829 

B394Z 


254553 

1.2883 

203729 

1391 

341325 

03448 

203136 

330B6 

1.7489 

03504 

03584 

383073 

341329 

3.7482 

166338 

1888.71 

341.225 

03546 


2834.16 

101306 

413855 

53485 

129318 

141854 

2.7325 

13105 

13115 

13554 

113B25 

188383 

13104 

03808 

128318 

383125 

23904 


Gammy (P-Mrt) 

10*2 
(ObQ 
(ftwiaiB) 
Gnssrisnd 03s4Oi Krone) 
annuls ECutS) 


163212 


Guam 


W3 


a 


158135 

130 

373.118 

83878 

43847 

83481 

13770 


<*3 

CuyanssaQ 


Guyana 

HM8 (Qouds) 

Honduras CUsmpkR 

Hone Kong 

t*"9«Y 


B3 


2-024 


Ml 


13104 

31.88 

4.7187 

2.7388 

0.8829 

1.4070 

513382 

534388 

68731 

244313 


|RM 

Iraq fruyohu) 

Stab Bsp £RmO 

kraa (SbsfeN 

»My (Lira) 


Wsndcsnfl 
ososn (Y*n| 

Jordon (JorOantan Dim] 


(Konya SNHnd 

“ iMai9 


Ksnju 

KMtso (Auantnl 
Korea Herat (Won) 

Korea ScMti (Won) 

Kirarrt {KkmaH Ora) 


154434 

187003 

224388 

303105 

143575 

12.1858 

171393 

107311 

494887 

343133 

278130 

04811 

13122 

4.7324 

248012 

623133 

165375 

1.1005 

700525 

aw? 


8.7154 

13816 

1008.1 

08341 

2383 

6-0061 

2.7043 

62842 

1 

6.7684 

87028 

184823 

140225 

183301 

63141 

7.7272 

108 

873873 

313525 

217606 

1751.11 

03114 

03418 

33138 

1050 


62617 

1 


1.7428 

33122 


3.7178 

031.187 

B001.45 

813882 

122532 

674® 


93158 

13877 

1(71834 

03407 

230.071 

61488 

2.7323 

63485 

1311M 


(PsK. Rupee) 


Papus New Oufetss (tort 
Pas^agr Cuanri) 

Peru (Now Sol) 

WRppSta l (P»S0) 

PBcamta (CSraritag) 


883701 

0398 


702821 

43.730 

202136 

14023 

112832 

02007 

04136 

13422 

100644 

213286 

83.7878 


989313 

12622.7 

143211 

192288 

83072 

73078 

110138 


Portugal 
Piano Flea 


Bouden Is. 
Romanis 


3138 

218678 

17014 

03146 


atHOsnt 
St Lucia 
8* Plena 
StVknrd 
Sm Marino 
San Toms 


62842 

961794 

520429 


533601 

03353 

341225 

341225 

286701 

64977 

549332 

04184 

1725.74 

365.705 

541228 

102395 

341228 

33898 

04889 

0205 

16037 

03225 

114.725 

1-7429 

53502 

145938 

137081 

2.1875 

63548 

341225 

73885 

84858 

04086 

33228 

03302 

61342 

14122 

341226 

1»122 

813991 

341225 


129318 

832903 Latvta 

08393 
6343SB 
5343® 

416555 
8319 


03678 

270241 


(KkmaH I 

(HswKW 
<U® 
to 

(MHufl 
(LHertan S) 
OJbym Dtav) 
(Swfasfi) 
(I Tww) 

Luwrboug (Lib Ft] 


Ubya 


834369 

161472 

5343® 

675® 

0.7686 

□4793 

282778 

61498 

178381 

2.7328 

113791 

228674 

2182.74 

34296 

B3555 

5343® 

123258 

5465 

03407 

61490 

1.4503 

431® 



5343® 

53495 

87.1839 

634368 


Mafeftwta 
Me* Rep (CFA R) 

Maba (Mansee Lfea) 
MsrtWqus ILocW Fri 

Maurttanta (Ouguiya) 

Msirtkn (Mar Ruooe) 
CM aUce n Paso) 
(Lead Fd 
(French Fti 
Morijod* (TOoraj 

Mmswna p CmrrS) 

Morocco (Dstwri 

MewnbSM) (MeScsQ 

Ntmstta (SARwid) 

Nstsurs {AusmOsnQ 
NapN (NepWess RupoeJ 
Nsdis rt snds (QuHn) 
N-ndAMMka <MGrtawl 
Now ZaeSttxS (NZSj 

Mesropus IGOdCridobai 
MgwRsn ICFAfi) 

Mgeitt (TMrt 

Norouor (Nor. Krone) 

Oman (FWOnwn9 


113734 

03893 

282728 

83244 

13770 

04810 

23308 

63180 

503379 

123094 

656136 

2484® 

160804 

43438 

166807 

834310 

03775 

83491 

196147 

273414 


13813 

2.1833 

7967 

02974 

721.141 

OS448 


81.0825 

03709 

13878 

514774 

01915 

484.787 

03811 

107678 

212988 


0305 

13878 


63481 

63401 

831.800 

43547 

143016 

0832.79 

53244 
2.1311 
7734® 
23405 
23279 
2.81 B7 
103300 
834310 
34.5940 
107048 

08072 


3133 

73081 

352058 

1862 

11,485 

23642 

113387 

639429 

newts 

62942 

123.745 

17.718 

3U00S 

62942 

62942 

406834 

2.7043 

6B78S 


01905 

083 

23®1 

205729 

61® 

225937 

1013® 

73894 

13525 

73302 

341225 

0235 

14122 

767® 

11,4196 

61018 

641® 

14122 

286218 

1.7429 

67223 

4059^49 


1045 

187629 

333036 

100004 

07053 


2.1780 

807342 

03006 

7ZU73 

06806 

18864 

33037 

13104 

03081 

13012 


(US SI 
<F*f* 
data CF/fi) 

•a 

OECmg 

(FmnS\$l 
(ECarrSJ 
(KlSan Lkta 

POIW# 

(RW8 

(CBir 


412868 

13770 

1.4600 

3026® 

33308 

41.1507 

130 

2.6187 

38489.7 

2*0-482 

13770 

67494 

63491 

278630 

216200 

43547 

130 

43847 

63491 

43847 

240612 

128033 

691® 

BS4310 

77751 


Sriamon Is 
Seansirap 
South AMes 

Sprit _ 
SpartWt PoRskt 
NAM 


gtonsS 

(Toler) 


(Rand) 

(Pri sts) 


837® 


1593® 

113848 

2391 

113523 

834389 

037 


1263® 

173031 

sa® 

33485 

63406 

404318 

17323 

69712 


lAHos (Sp Peseta 

Sri Lsrira (Rioo-1 

Sudan Rep (Onan 

Surinam (Quador) 

Syria B 

Trism K 

Tmaria (BMBtrt 

TJtnfcnd (BWx) 

Togo Rap CFA pi) 

Tonga ta (PBengB) 

TVMdsd/Tabsgo (5) 
Drib (Dm 

TMtay Mta 

TUta&CUcoa (USD 
Tkaafti (AuaMan^ 

Ugmda (NawSriHng) 
Utarins (Karbovsnsts) 
UAE KWhemi 

Unfead Kfogdom (£) 
LMtsdStUss (US jg 

Uruguay (Paso Umguayo) 
Vanatu 


23379 

462110 

101298 

618® 

413839 

63244c 

67338g 

201783 

202763 

773594 

461225 

286554 

53244 

11.7081 

orvtnp 

31.1951 

417388 

822.130 


303194 

1 

032 

182034 

123® 

261 

09341 

19606 

23146 

1562 

1 

33457 

62942 

175333 

137906 

17043 

09341 

170*3 

62942 

2.7043 

15® 

811194 

67508 

R6429 

49303 

j BHVppe 

1^824 

313054 

121933 

33888 

2824.15 


167348 

09448 


1237® 

1343 

168218 

0L40M 

197® 

149173 

1019® 

09448 

13497 

641® 

113098 


309391 

19104 

092® 

10*09 

7 ynnt 

289728 

09407 

19779 

233887 

1868® 

19104 


634® 
177194 
1! 


17420 


1742S 

641® 

1.7429 

100644 

523471 

14175 

341325 

61778 

3779® 

09654 

30.1183 

765875 

110 ® 

189191 


834910 

11311 


437 

126576 

126675 

49345 

31.14® 

183911 

39686 

7*8 

13878 

167812 

2615 

621326 

24976 

826420 

19513 


17® 


31.7391 

2097® 

11894 


1-6473 

539718 

19770 

11311 

146614 

442260 

67915 

1.00 

19770 


4921 

093 

117483 

16854 

aaq-itm 

189087 

341326 

097® 

39001 


□3811 

3*225 

1 

19813 

921 AS8 

280444 

39728 

09341 


320665 

09445 

097® 


13813 

46*282 

17377 

1.79® 

19805 

674® 


S2 

6787B 


0970 

319572 

1.12 

1.18® 

197® 

*9444 

341336 

14.1793 

43748 

02481 


68837 

13854 

469444 

1.73® 

13115 

19779 

6911 

5349® 


68687 


Wanezuria 

Vietnam 

Virgin MMfch (USi. 

Vfcgh laUS (US 5) 

WrinmSmtoa (®4 

Yemon (Repel) ffOufl 

Yemen (Rap c'j pjfeBsr) 

Ykwwtorta (New Oner) (i| 
ZafewRrt (terra) 

Zambia 
Zim ba bwe 


176900 

2480.12 


171439 

19770 

13770 

49038 


1139 

1680 

18937 

108713 


18078 

23S7 

04088 

06445 

39248 

711828 

100544 

100494 

7Q069B 

09445 

09445 


17325 

09*07 

17325 

33*® 

17325 

167630 

820977 

3J901 

334999 

49818 

5910*7 

14879 

>19313 

123308 

33® 

2051.50 

39087 

43148 

129918 

129918 

4676® 

3)47*8 

188920 

38037 

796® 

13012 

16087a 

28.4231 

82677 

2533® 

83*969 

13684 

59441 

09914 

>45814 

19104 

13854 

0319® 

283373 

671® 

09407 

19104 


QBHS*0) 

310090 

108618 

111201 


202315 

67B96S 

631® 


360879 

03813 

130399 

436738 

53821 


1149® 

157620 

1719*4 

109849 

19104 

191® 

29084 

665771 

0441 

20*493 

883.1® 

84085 


SamM Oaring nghta SaptaMbar S3 100* Unftad Kingdom 7 0 9 30 5 32 Untad Salas 3148824 Germany DM2371® Japan Y14A.747 European Gummy Ur* Raaa S eptan tf XL in* (Mad Kktgdam 23755772 uritod Stans 31341® Osnnany DM1920M 
JSPtat Y1223S* 

Abtmwtaettna W Fria m W Benfcnca na: M ComnacU raatW Cannritodi rine M Ewda knuorta: ® FVtandU oik 9« Eapona (D Non cororaerotai rare: fi Buriteaa reOK® Buying reac |) Luuy poods Uatai ®k H Pu®a ■>«>«« raw W Olfctal 

W raia ! W retatjr^paraig^^jl S rtng " * * (8 h tart ra ts M Cumancree jtead aoriat Bta US Ptaar W Rowing raat ; ♦ CS appriaa la aaiaa h Bw Houbta Zona fl) Yugaator ana roe nftL CP Rwandi raw tor 3139* P) Yananl 

non b 26*9*. Soma Ada derived hem THE WMnBJTERS CLOaNO SPOT RATES A Bank or America. Ecenenricm Department. London Trading Contra EntsMeK 071 834 438V5. 


Friday. S epte m ber 33 189* 


Now there's 10,000 more 
reasons to fly to Osaka. 

There are up to 10,000 mileage credits available on all return JAL flights direct 
to Osaka until 31st October 1994. Call your local JAL office for details. 



Japan Airlines 

JAL MILEAGE BANK WOpe 


■ Thailand 

The Stock Exchange of 
Thailan d has awarded new 
brokerage seats to four 
companies which were 
previously sub-brokers: the 
upgrading of Jardine Fleming 
Thanakom. Nithiphat, 

Ekachart and Prime brings the 
total number of foil brokers to 
44. writes Victor Mallet in 
Bangkok. 

Each new broking company 
is obliged to pay Bt300m (S12m) 
for the seat a price regarded as 
high by international 
standards. The government 
says that it wants to liberalise 

ctfv-Vhm Icing jy! ' piatland ar| ri 

the SET expects to admit a 
further six members in 1995. 

■ Latlnvest 

Latlnvest, the specialist Latin 
American securities house set 
up two years ago, is expanding 
into the US by acquiring the 
New York subsidiary of Its 
majority Mexican shareholder, 
Invermexico, writes Stephen 
Fuller. 

Banco Bozano Simonsen, its 
Brazilian shareholder, has 
injected $lm of capital to keep 
its stake at 12 per cent, while 
nt ar ta gp-Tngn^ s stake was 
diluted from 28 per cent to 2 1.5 
per cent by the transaction. 

Latlnvest, its capital now 
standing at 825m with retained 
earnings, is also negotiating 
with a prospective Argentine 
shareholder 

■ Hungary 

The Budapest Stock Exchange 
is to increase its disclosure 
requirements from next year, 
writes Virginia Marsh. From 
January, quoted companies 


News round-up 



will have to present 
consolidated accounts to the 
BSE. Listed companies will 
have to report within 45 days 
of the end of the quarter, while 
traded companies will have to 
report half-yearly rather than 
quarterly as at present 

Companies will have to 
report comparative figures for 
the previous year and provide 
an analysis of their forecasts 
and results, including sales 
and profit The move is 
designed to bring the BSE 
closer to European norms. 

■ Brazil 

Mr Ciro Gomes, Brazil’s 
Economy Minister, said that 
the government had the means 
to slow the flow of foreign 
capital to local markets, but 
preferred not to c omm ent 
whether any action of the sort 
was being considered. 

Investors in Brazilian 
markets are concerned over 
the possibility that the 
government may raise a flat 
tax on investments directed to 
the stock market and 
fixed-income instruments. 

■ Philippines 

The Philippine Stock Exchange 
is to block backdoor entries by 


companies trying to avoid 
stringent listing requirements, 
said Mr Eduardo Delos 
Angeles, the PSE chairman. 

He added that South-east 
Asian stock exchanges are 
finalising plans to exchange 
information as part of a battle 
to stamp out insider trading. 
Exchang e officials plan to meet 
in South Korea in November to 
work out a mechanism for 
exchanging information 
following a rise in 
intra-regional investment. 

■ Morocco 

Morocco is soon to sell off its 
stakes in five entre prises with 
a total turnover of 3.S5bn 
dirhams ($438. 4m), the 
Privatisation Ministry said. 

The state has between 35 and 
99 per cent of the five groups - 
Banque Marocaine du 
Commerce Exterleur (8 MCE), 
the Simef diesel and electric 
motor maker, the Scnasid steel 
mill , the Somas oil company 
and Sochepresse publication 
distributor. 

Since January, 12 
state-owned enterprises have 
been sold off, officials said. 

• Emerging markets coverage 
appears daily on the World 
Stock Markets page 


Baring Securities emerging markets indices 


Index 

30/9/94 

Week on week movement 
Actual Percent 

Month an month movement 
Actual Percent 

Year to date movement 
Actual Percent 

World (301) ... 

—.188.63 

-1.88 

-0.99 

+2.96 

+1.59 

+20.22 

+12.01 

Latin America 
Argentina (20) 

112.04 

-1.86 

-1.63 

-2.80 

-2.44 

-3.34 

-2.90 

Brazil (21) 

255.65 

+4.32 

+1.72 

+1552 

+6.33 

+116.00 

+83.07 

Chile (12) 

206.09 

+3.19 

+157 

+6.39 

+3^0 

+58.55 

+39.68 

Mexico (25) 

153.76 

-5.83 

-3.66 

-2.94 

-1.87 

-7.51 

-4.68 

Pem(16) 

908.03 

+11.14 

+1^4 

+179.00 

+24^5 

+331.94 

+57.62 

Latin America (94) 

181.24 

-1.50 

-0.82 

+3.56 

+2.00 

+31.99 

+21.44 

Europe 

Greece (16) 

84J23 

+1.08 

+1.29 

+1.16 

+1.40 

+1.14 

+1.37 

Portugal (18) 

117.66 

-0.79 

-0.66 

-4^9 

-3.76 

+SJS3 

+4.93 

Turkey (21) 

67.00 

+5.34 

+6.54 

-0.39 

-0.44 

-74.71 

-4620 

Europe (55) 

.... >99.62 

+1.08 

+1.09 

-1.75 

-1.72 

-12.61 

-1124 

Asia 

Indonesia (26) 

150.78 

-5J31 

-3.71 

-5.55 

-3^5 

-2026 

-11.85 

Korea (23) 

164.55 

+0.70 

+0.43 

+28.15 

+20.64 

+54.84 

+49.99 

Malaysia (23) 

237.12 

-9.19 

-3.73 

-4.15 

-1.72 

-15.93 

-629 

Pakistan (11) 

119.14 

+1.66 

+1.41 

+9.09 

+8^6 

+7.45 

+6.67 

PhBJIppInes (12) 

275J30 

-iaoi 

-5A9 

-28^5 

-9^9 

-46.67 

-14.47 

Thailand (25) 

263.60 

-2.64 

-0.99 

-1.90 

-0.72 

+0.05 

+0.02 

Taiwan (32) 

186^9 

+6.77 

+3.78 

+10^2 

+6.03 

+3268 

+2169 

Asia (152) ...... 

..2Z7J3Z 

-3A3 

-1.49 

+3.08 

+1.38 

+&91 

+267 


Al Moo* M 1 win, Jammy 7th 19B2-100. Sourer (taring SoojiWm 

I Refreshing fares: 

■ Now fijcucii'ivft !:r',t ::onr-hu(l ao;it y i v > ; s iirsl f.lntri comtori ;it iHninoss cl.vss priem 

AIR CANADA 


This announcement appears as a matter of record only. 


September, 1994 



UILOING SOCIETY 


£150,000,000 

Multiple Maturity Term Loan Facility 


s> 


Arranged and Underwritten by 

Bayerische Landesbank 


London Brandi 


Senior Lead Managers 


Bayerische Landesbank Girozentrale 

Londo n Hindi 

Den Danske Bank 


THE FUJI BAN^UMITED 


The Fuji Bank. Limited 
The Sakura Bank, Limited 


Lead Managers 

Westdeutscbe Landesban k Girozentrale 
The Royal Bank of Scotland pic 
Barclays Bank PLC 

Lloyds Bank Pic Nomura Bank International pic 


The Dai-Ichi Kangyo Bank. Limited 


Managers 


ABN AMRO Bank N.V. 
Bank Austria AG 

Lands* Brandi 

The Daiwa Bank. Limited 
Postipankki Ltd 

Lo n do n B ranch 


GiroCrrdit Bank 

lundcifi Brandi 


Kredietbank N.V. 

Londo n Broach 


Participants 

Banque Internationale k Luxembourg The Chuo Trust and Banking Company. Limited 
J. Henry Schroder Wagg & Co. Limited 

Agent 

Bayerische Landesbank Girozentrale 

London Brandi 



v. 


LH7 


THE TOP OPPORTUNITIES SEC 

For senior management positions 
For information please contact: 

Philip Wrigley 
+ 44 71 873 3351 



M 
























FINANCIAL TIMES MONDAY OCTOBER 3 1994 ★ 




□ 




Banca de Inversiones 

ARGENTARIA 


September 1990 






Pesetas 45.000.000.000 
Underwriter & Agent 

Boni-o Jr AVjt^ooi 

ARGENTARIA 


GeneraUtat de Catalunya 

Corporadd Catalans 
da Rfcfio I Tataviatt 


Pesetasi 3.000.000.000 
Und e r w ri te r & Agent 

- BamdrPrKocun 

ARGENTARIA 


IOA 

Pesetas 8.000.000.000 
Underwriter & Agent 


Banco de Negodas 

ARGENTARIA 


EMT 

- nmcpcumm 

MLBCM 

Pesetas 1.500.000.000 

Underwrttar 


Banco dcNexontn 

ARGENTARIA 


U8. Dollars 31 3.000.000 
Supplemental Agreement 
Underwrit e r A Agent 

Banco dc AVjwctcti 

ARGENTARIA 


Canal de 
_sj Isabel H 


Pesetas 12.000.000.000 
Underwriter & Agent 

Banco de Negoaai 

ARGENTARIA 


DtPUTAOON 

GBffitALDE 

ARAGON 

Pesetas 15.000.000.000 


BtaarodeNetadot 

ARGENTARIA 


KINGDOM OF SPAIN 
ECUS 6.000.000.000 
Senior Underwriter Lead Manager 

Banco dr NejKcmt 

ARGENTARIA 


S 



Region de Murcia 
Pesetas 7.2S3.00G.000 

Underwriter & Agent 

Batco de Negacko 

ARGENTARIA 


SOGEFINSA 
Pesetas 12.000.000.000 
Underwriter A Agent 

Banco dcNrsaaos 

ARGENTARIA 


Fubnsrry 1994 

General de Catalunya 
Deportamant de Med Ambtarc 
Jwta d» Swwlmant 

Pesetas 5^00.000.000 

Underwriter & Agent 

Banco Jr Negaclea 

ARGENTARIA 


Gobiemo Balear 

Pesetas 9.822.072.366 
Underwriter 

Banco Je Heeaekrs 

ARGENTARIA 


Generafitat de Catalunya 
Cmpondt Ca talana 



June 1994 


H-l 

:.k i 




Pesetas 34.450.000.000 

Co-Lead Manager 
Domestic Tranche 



March 1994 






AUMAR 

Pesetas 14.310.000.000 

Co-Lead Manager 
Domestic Tranche 


Endesa 

Pesetas 167.703.612.000 

Global Coordinator 

Sociedad de Valores v Bolsa 

ARGENTARIA 


March 1994 


Pesetas 4.384.000-000 

Underwriter 

Soacv de Ncgonat 

ARGENTARIA 


*v'W 


March 1904 

Mir 79SJ 

FolmvylBSd 

tPi&c 


30E& 

©■■’ ' 

EUROFIMR 

EZ£ 

EUROPEAN INVESTMENT BANK 

Pesetas 10.000.000.000 

Wr- Alllt—B— lIlBt 

Pesetas 5a000.000.000 

Joint Bookrunner 

Pesetas 10.000.000.000 

Joint Bookrunner 


Joint Lead Manager 

ton deNepoom 

Banco deNegodot 

Banco de NtBOda* 

ARGENTARIA 

ARGENTARIA 

ARGENTARIA 
■ * ■saMMlikiJ 


FOMENTO DE 
CONSTRUCOONES Y 
CONTRATAS, SA. 

Pesetas 43.000.000.000 

Co-Lead Manager 
Domestic Tranche 

Sadedadde Valores v Bolsa 

ARGENTARIA 


January 1994 




Empresas 
La Mod ema 
SA. de c.v. 




SapHonbor 1 SKH 


Pesetas 30.000.000.000 

Lead Manager & Agent 

Banco dc tfrgaaat 

ARGENTARIA 


GeneraBtat de Catalunya 

Convertible Term Loan 
Pesetas 25IXX1.000.000 

Lead Manager & Agent 

Banco dr Nepoeio s 

ARGENTARIA 


SevUlanade 

Efectriddad 


Pesetas 20.750.000.000 

Lead Manager & Agent 

Banco de Ne goe b n 

ARGENTARIA 



Corpomcidn Bamxaria 

ARGENTARIA 


French Francs 1 .500.000.000 
Joint Lead Manager 

Btmea de Negndot 

ARGENTARIA 




* : > Ij 




U.S. Dollars 344.655.350 


Co-Manager 
International Tranche 

Sandal Jr l atom r Brim 

ARGENTARIA 


Gobiemo Balear 
Pesetas 15.000.000.000 
Lead Manager & Agent 

Banco Jr Nrpoaot 

ARGENTARIA 


Convertible Term Loan 
Pesetas 15.000.000.000 

Lead Manager & Agent 

Btareo de Negodm 

ARGENTARIA 



ARGENTARIA 

2 Subordinated issues 
4 ibex Issues 

Lead Manager ft Agent 

Bourn dr Ntgoriat 

ARGENTARIA 


Gobiemo de Navarra 

Pesetas 8.000.000.000 
Lead Manager ft Agent 

Banco Jr NegeeJat 

ARGENTARIA 


Pesetas ia000.000.000 

Lead Managers Agent 

Banco drfirgotJca 

ARGENTARIA 


May J! 

BCL 

Banco de Cr6dtto Local 

Pesetas 8.000.000.000 

Lead Manager & Agent 

Banco de Nexmai 

ARGENTARIA 


KINGDOM OF SPAIN 

French Francs 6.000.00a 000 
Co-Lead Manager 

Amro Ae Mrftoem 

ARGENTARIA 




. ' •• v. 


Banco de legacies 

ARGENTARIA 


CALL WARRANTS 
nliM lama 

INTEREST RATE SWAP 



Banco de Negocios 

ARGENTARIA 



June 1994 

Qrupo lusacell , S.A. de C.V. 

U.S. Dollars 233.618.065 

Co-Manager 
Institutional Tranche 

■jmdoldf Votcm % Brba 

ARGENTARIA 


September 1994 


USIMINAS 


Usinas Sidcrnrgkas de Minas Gerais, S A. 

U.S. Dollars 417.422.086 

Co-Manager 
International Tranche 

Socmhdd r Vdhm iblu 

ARGENTARIA 




June 1994 


Royal PTT Nederiand N.V. 

Dutch Guilders 6.872.962.500 

Co-Manager 
R.O.W. Tranche 

Sadedadde Vatora v Bolt a 

ARGENTARIA 


February 1994 


ISTITUTO M08DLIARE ITALLANO 

Italian Liras 2.180.000.000.000 

Co-Manager 
Institutional Tranche 

Smdaidr VahmrBrUr 

ARGENTARIA 


June 1994 

E^ib 

Casa Equipment Corporation 

U.S. Dollars 332.500.000 


Co-Manager 
Intemationai Tranche 


S+vJ*IJrValarn,IUu 

ARGENTARIA 


July 1994 


tetftuto Nazlonal* dette Assieunazionl S.pJL 


Italian Lires 4.536.000.000.000 

Co-Manager 
Institutional Tranch 

Smniildr Vahvrt (Aibo 

ARGENTARIA 


Sociedad de Valores y Bolsa 

ARGENTARIA 


•; -3 


I - ’ • 



























FINANCIAL. TIMES MONDAY OCTOBIiR 3 1 1)1,4 



WORLD BOND 


This Week 


NEW YORK 


Richard Waters 


LONDON 


Gillian Tett 


FRANKFURT 


Christopher Parkes 


TOKYO 


Emlko Terazono 


Economic data due in the 
coming days wilt determine 
whether the Federal Reserve 
was right not to raise interest 
rates again last week, or 
whether it has taken too 
sanguine a view on inflation, 

September's employment 
report, which is due on Friday, 
is widely expected to show a 
pick-up in employment growth 
from the relatively low level of 
August. 

However, at a predicted 
230,000 to 300,000, the increase 
in non-farm payrolls may not 
be the figure the bond market 
watches most closely. 

A fall in the unemployment 
rate to below 6 per cent Qt was 
6.1 per cent In August) would 
prove more damaging to fixed 
income prices. 

Among other figures the 
markets will have to chew on 
this week will be September's 
NAPM index, published today. 
After the decline in August to 
5612, this barometer of 
purchasing managers' activity 
is expected to bounce back to 
anything from 56.5 to 57. 


US 

Benchmark yield curve (96)* 
30W94— 'Month ago => 



■AB yields are meriwt convention 
Sauna: Mena Lynch 


Evidence of faster economic 
growth would suggest that the 
Federal Reserve was wrong not 
to act pre-emptively to raise 
rates, and leave it in the 
unenviable position of having 
to act ahead of its next 
policy-making meeting, in 
November. 

However, at 7.8 per cent - up 
from around 7.4 per cent a 
month ago - the yield on 
long-dated bonds may already 
have anticipated much of the 
bad news. 


In spite of the recent volatility 
in the European and US 
financial markets, gilts 

maintain ed a relatively firm 
tone last week, shrugging off 
many of the broader swings in 
the UK equities and futures 
markets. Many analysts expect 
this trend to continue this 
week. 

“It's likely to be a week of 
consolidation," says Ms Katy 
Peters, senior economist at 
Daiwa Europe. 

She points out that in the 
last week a stronger trend in 
the German bund market 
coupled with a successful gilt 
auction has supported the 
market slightly. 

"The supply side story has 
been unwinding and that is 
helping it a bit," she adds. 

Mr Simon Briscoe of 
S.G. Warburg says: “The recent 
switching into edits from 
equities hints at gr .u 
underlying deir- nd." 

In the absence of the release 
of any important domestic data 
this week, one factor that 
could potentially affect the 


UK 

Benchmark yield curve (96)* 
tttSHM — Month ago ■ ■ 



'AS yields are market convention 
Source: Mens Lynch 

markets is any aftermath 
from the Japanese-US trade 

talks. 

Some dealers fear that the 
compromise hammered out in 
the talks could yet unravel, 
triggering a fresh bout of 
international bond market 
instability. 

However on the domestic 
side, the M0 money supply 
data today, and output figures 
later this week, are not 
expected to have a strong 
market impact 


The election effect which 
prompted a sharp correction in 
the Fr ankf urt stock market 
last week, with a clear 
knock-on into bonds on Friday, 
is expected to dominate 
sentiment in the German 
financial markets, at least 
until the federal polls on 
October 16. 

If future opinion samplings 
confirm the tendency thrown 
up by the latest Forsa survey, 
which was published on Friday 
and showed the Social 
Democrat/Green alliance with 
the advantage, then market 
sentiment may be deeply 
depressed. 

The Forsa results showed the 
liberal Free Democrats, junior 
partners in Chancellor Helmut 
Kohl's ruling coalition, with 
insufficient support to gain 
seats in the Bundestag. 

Politics apart, the usual 
fundamental factors affecting 
bonds are continuing to 
improve. Provisional 
September infla tion figures for 
west Germany showed prices 
behaving themselves. 


Germany 

Benchmark yield curve (Mr 
30WB4— « » MertAoflo = 

as — 



*AB yWos are market convention 
Sauce: Menu Lynch. 


A 2 per cent pay rise for 
clothing industry workers and 
flexible working arrangements, 
announced on Friday, was also 
encouraging for the 
longer-term price perspective, 
although textiles is a 
particularly depressed sector 
and expectations were low. 

August Industrial output fell 
sharply, because of 
unquantifiable holiday effects, 
but confidence In the recovery 
remains intact among most 
industrial leaders. 


Although bond prices were 
supported by tower short-term 
money market rates and the 
sluggish stock market in the 
first half of last week, earlier 
gains were eroded by the 
release of stronger than 
expected industrial production 
figures on Thursday. 

This week, government 
bonds are expected to fluctuate 
in a narrow range. While weak 
stock prices and buying by 
public funds are likely to 
support the market, 
cautiousness over the speed of 
economic recovery is likely to 
weigh on prices. 

Meanwhile, a stronger yeu 
could briefly prop up investor 
confidence. The rejection of 
calls to stop the yen’s further 
rise by Mr Masayoshi 
Takemura, the Japanese 
finance minister, by other 
countries at the Group of 
Seven summit last weekend, is 
likely to encourage buying of 
the currency. 

Aside from keeping import 
inflation lower, a higher yen 
has negative implications for 


Japan 

Benchmark yi*W curve (96)* 
30/3/04 — — MontfvQflO usa 



■M ytekn ore ronrtwt CoiwenBffi 
Source: Memll Lyntfi 


corporate earnings, so may 
also hurt the stock market. 

Investment flow data for 
August, to be released this 
week with August current 
account figures, will provide 
some indication of the course 
of the yen. Foreign investors 
were net sellers of Japanese 
equities in July for the first 
time since June last year and 
are expected to have sustained 
the selling in August, which 
could cap the yen’s 
appreciation. 


Capital & Credit / Conner Middelmann 


10-year benchmark bond yields 


De nmar k seen as better risk than Sweden 


With the elections out of the 
way, a major risk factor for 
Swedish and Danish govern- 
ment bonds has been removed. 

However, following the 
establishment of minority gov- 
ernments In both countries 
and a hea d of the F innis h and 
Swedish referenda on Euro- 
pean Union membership, these 
markets are likely to remain 
volatile in coming months. 

Still, commitment to fiscal 
discipline by the new govern- 
ments in both countries, 
accompanied by continued eco- 
nomic recovery, is likely to 
support both markets in 1995. 

Of the two, Denmark Is 
widely seen to offer better 
prospects. “Denmark’s 
hard-core credentials are 
strong, but its bond yields are 
not in line with hard-core mar- 
kets," says Mr Kit Juckes, 
international economist at 
S.G. Warburg Securities. “Of 
all the convergence trades in 
Europe, Danish bonds seem to 
have the most solid creden- 
tials." 

With the budget deficit in 
decline, the economy growing 
steadily while inflation 
remains relatively subdued. 


Denmark's “fundamental posi- 
tion would indicate an outper- 
formance of bunds," agrees Mr 
Paul Donovan, analyst at UBS. 

Danish bond yields rose 
sharply this year, largely on 
fears that the country's stron- 
ger than expected growth 
would fuel inflationary pres- 
sures. As a result, the yield 
spread over German bonds 
widened as far as 172 basis 
points in early September. 

It has narrowed considerably 
since then, however, partly due 
to rising German yields after 
strong economic data there, 
and partly to a reassessment of 
Denmark’s fundamentals. On 
Friday, the D anis h 10-year 
benchmark bond yielded 9.03 
per cent, some 140 basis points 
over its German equivalent. 

“Denmark's position at the 
vanguard of the European eco- 
nomic cycle has been sup- 
planted," says Mr Juckes. “Its 
economy is growing in line 
with those in the rest of 
hard-core Europe.” He expects 
the Danish yield spread over 
Germany to converge to 100 
basis points during the first 
half of 1995. 

The minority government is 


also unlikely to be a problem, 
given that this form of govern- 
ment has become much the 
norm in Denmark. The centre- 
left coalition is expected to 
seek support on its economic 
policies from the right wing in 
parliament, and is unlikely to 
bow to pressure from the far- 
left. analysts say. 

The main risk to the Danish 
market is likely to come from 
external sources. Despite the 
favourable domestic economic 
climate, uncertainty over Swe- 
den's political situation and 
the post-election handling of 
Sweden's deficits may have a 
spill-over effect, warns Ms 
Cathy Savage, of Nomura. 

“It also seems likely that, 
despite being firmly rooted 
within the EU itself, the uncer- 
tainty over whether Finland, 
Sweden and Norway will vote 
in favour of EU membership is 
having an impact as a back- 
ground 'confidence' issue for 
Denmark, ” she adds . 

In Sweden, the outlook is 
more murky and it may take a 
while before Investors regain 
confidence in the bond market. 

Recent years have seen a 
sharp increase in the budget 


deficit and public-sector debt 
resulting largely from the 
country’s deep recession. How- 
ever, economic recovery and a 
package of spending cuts and 
tax rises announced by the 
Social Democrats are hoped to 
break the circle which has 
undermined the currency and 
poshed yields higher this year. 

Swedish 10-year yields rose 
to 12.05 per cent in August, 
from a low of 6.65 in January, 
with the spread over bunds 
widening as far as 494 basis 
points. On Friday, the yield 
was back at ILI7 per cent and 
the spread stood at 354 basis 
points but analysts warn that 
the market will remain vulner- 
able to further setbacks in 
coming months. 

"We're not very bullish on 
the market near-term - there 
is so much uncertainty,” says 
Mr Allen Owie, senior analyst 
at Unibank Securities in 
Copenhagen. 

On Friday, the government 
is due to unveil its economic 
policy programme; in mid-Oc- 
tober, a new central-bank 
supervisory board and gover- 
nor are to be appointed, creat- 
ing uncertainty over the Riks- 


bank's monetary policy stance: 
and in January the 1995 budget 
will be unveiled. 

Before the budget debate 
heats up, however, Sweden's 
referendum on EU membership 
on November 13 will take cen- 
tre stage, following the Finnish 
EU vote on October 16. 

A positive EU vote would 
have a very positive effect on 
the bond market, Mr Owie 
says. "If Sweden agrees to EU 
membership, its economic pol- 
icy framework will be dictated 
by external factors, which is 
very bullish in the longer 
term." 

Another risk is a possible 
rating move by Moody's, the 
US agency. While Standard & 
Poor's recently affirmed its 
AA+ rating, fears of a down- 
grading by Moody’s later in the 
year has scared the market. 

If the EU referendum yields 
a "'yes,” Moody’s leaves its Aa2 
rating unchanged and the gov- 
ernment produces a fiscally 
austere budget package, Swed- 
ish bonds could be in for a 
rally in early 1995, Mr Donovan 
predicts. Until then, however, 
investors will be in for a 
bumpy ride. ' 


Percent 


13 



INTEREST RATES AT A GLANCE 



USA 

Japan 

Germany 


France 

Italy 

UK 

Discount 

4.00 

1.75 

4.50 


6.40' 

7.50 

6.75 s 

Overnight 

5.00 

222 

4.63 


5.1 B 

7.81 

4.75 

Three month 

4.79 

2.25 

5.06 


5,50 

8.43 

6.75 

One year 

5615 

2.58 

5.58 


6.27 

9.81 

7.31 

Rve year 

7.28 

3.89 

7.11 


7.65 

1T.91 

8.63 

Ten year 

7.50 

4£6 

7.57 


8.12 ’ 

11.75 

8.81 ■ ; 

( 1 ) Ffic^napn rata. (Q UK*** mm. Sourer ftanmm. 






US TREASURY BOND FUTURES (CBT) $100.000 3ZndS of 100% 



- • • - •; . 


Open 

Sett price 

Change 

High 

Low 

’ Eat. voL 

Open Int / 

Dec 

98-24 

98-30 

+0-08 

90-06 

98-16 

- 412,047 

394,650 

IMar 

93-04 

08-0 8 

+0-08 

08- (6 

07-27 ' 

r,87fl 

34,820 

Jun 

37-11 . . 

07-18 

+0-08 

97-23 

97-07 

864 

. 10.754 



; ’ ; . • _ • 





- . . 










Credit Lyonnais 
1994 first half results 


The Board of Directors of Credit Lyonnais met on 
September 27, 1994 under the chairmanship of 
Mr. Jean Peyrelevade to review the financial statements 
for the first half of 1994. 

The first half of 1994 was again difficult, coming after the 
losses reported at die end of 1 993. 

Credit Lyonnais registered an overall loss of FRF 3.9 billion 
for the first six months of the current year (Group's share 
of net loss: FRF 43 billion). 

Recurring profits on Credit Lyonnais' ordinary operations 
have not been sufficient to offset the still very substantial 
burden imposed by exceptional situations. 

Operating income before provisions totaled FRF 5 billion. 
On a consistent consolidation basis, this was down by 
almost 27% due to a 9.1% decline in net banking income, 
which was not counterbalanced by the reduction in general 
and administrative expenses (down 3.3% on a consistent 
consolidation basis). 

Whereas Altus Finance contributed a positive 
FRF 676 million to consolidated operating income before 
provisions in June 1993, its contribution reduced the 
Group aggregate by FRF 700 million in the period under 
review, and by FRF 1.4 billion in the half-yearly comparison. 
Excluding Altus Finance, operating Income before provisions 
would have shown a decline of 4.2%. 

Net new provisions before changes in the Reserve for 
General Banking Risks amount to FRF 1 0.1 billion, of which 
FRF 4.8 billion cover exposure to certain exceptional 
situations. 

I- Exceptional situations 

Although no new sources of losses have emerged compared 
with the position at the end of last year, those that do remain 
have proved more extensive than forecast. 

Credit Lyonnais has again been obliged to record a very large 
negative contribution by Altus Finance, and by the businesses 
and subsidiaries historically linked to it. Similarly, substantial 
additional provisions have had to be made on certain risks 
carried by banking subsidiaries found to have been suffering 
from inadequate control. 

Overall, the impact of these subsidiaries on earnings 
represents FRF 5.4 billion in the income statement at June 30. 
Assets transferred from our Dutch subsidiary have 
necessitated more than FRF I billion in additional provisions. 
Despite Credit Lyonnais' program of divestitures, the equity 
investment portfolio continued to represent a burden of 
FRF 1.1 billion on group earnings at June 30. 

Finally, a release of provisions on country risks brought 
coverage of this category of exposure to 52% at June 30. 

2 - Ordinary operations 

Ordinary operations again made a positive contribution to 
earnings, although less so than initially forecast. 

Operating income before provisions on commercial 
banking in France held up thanks to efforts to curb general 


and administrative expenses, and to growing fee income, 
while intermediation margins declined. The cost of risk 
remained high, equivalent to the level for the second half 
of 1993. 

Earnings on capital market activities were down 
significantly, compared with the exceptionally favorable 
figure for the first half of 1 993. 

Earnings on international commercial banking were down 
slighdy in comparison with the first half of 1 993. This was 
primarily due to persistent difficulties in Spain and Portugal, 
and to the impact of devaluation of the CFA franc. 

3 - Capital adequacy 

Total assets are down slightly, as is the volume of weighted 
assets as defined in the European solvency ratio. The 
Group's solvency ratio stands at 8.1% following the rights 
issue placed with public-sector shareholders at the beginning 
of July 1994, and after induding the half-yearly loss. 

4 - Recovery plan 

Measures taken under the recovery plan are now well 
in -hand and will be amplified: 

- the reduction in Group general and administrative 
expenses works out at 3.3% on a consistent 
consolidation basis; the drive to boost productivity 
will be sustained over the full year and will be stepped 
up under actions planned for 1 995; 

- disposals amounted to FRF 6.8 billion at the beginning 
of August. If the markets rally to more normal levels, 
the divestiture program is expected to reach the 
amounts initially announced; 

- organizational reforms have been introduced co 
improve management of banking risks, and a Central 
Treasury department has been set up, notably to 
supervise the Group's entire interest rate and foreign 
exchange risks; 

- the Group's operating divisions have been reorganized 
in response to our central objective, which is to 
improve our customer services, necessary to produce 
a significant upturn In results, in particular, a Central 
Division for European Affairs has been set up to 
develop common strategies and bolster commercial 
synergies within die European network. 

5 - Outlook 

In the light of available information, the loss for the year is 
forecast to be smaller than in 1993. 

The representatives of the French Government on the 
Board have reaffirmed the State’s foil support for Credit 
Lyonnais in the pursuit of its turnaround, and the Board of 
Directors has been informed of the principles under which 
State support will be provided. 

Credit Lyonnais, meanwhile, will step up its existing 
efforts, within the framework of its recovery plan, to 
Improve its cash flow and hence its capacity to cover its 
exposures. 



CREDIT LYONNAIS GROUP 


International / Graham Bowley 

Europe to remain in the doldrums 


The dramatic reversal in 
sentiment in world govern- 
ment bond markets this year 
has had an equally dramatic 
impact on the pattern of new 
issuance in the eurobond mar- 
kets. 

While new issuance of fixed- 
rate eurobonds and of euro- 
bonds denominated in most 
European currencies has with- 
ered in this year’s difficult 
market conditions, yen-denom- 
inated bonds, medium-term 
notes and floating-rate notes 
have all flourished. 

According to data supplied 
by Euromoney Bondware, the 
volume of new eurobond issues 
in the first nine months of 1994 
totalled an equivalent of 
$282. Sbn, down from $304.4bn 
in the same period last year, 
although still ahead of the 
$2l2.5bn of the first nine 
months of 1992. 

Within that total however, 
the volume of fixed-rate new 
issues fell by $47.8bn to 
$185.9bn, a victim of expecta- 
tions of higher inflation and 
the turn upwards in world 
interest rates. 

The reverse side or this trend 
downwards in fixed-rate issues 
has been an explosion of 
growth in floating-rate notes. 
FRN Issuance totalled an 
equivalent of $7G.4bn between 
January and September this 
year, compared with $49.7bn In 
the first nine months of last 
year. 

FRNs offer variable rates of 
interest which move to reflect 
changes in short-term money 
market Interest rates. They 


TOP EUROBOND LEAP MANAGERS 

First nlno months of 1994 Brat nine months of 1993 


Manager 

Sbn 

Rank 

% 

faouea 

Sbn 

Rank 

% 

Issues 

Marrffl Lynch 

2734 

1 

9.88 

119 

1Z.73 

7 

4.18 

60 

CSFB7 Credit Suisse 

18.94 

2 

6.70 

66 

14.48 

3 

4.78 

65 

Goldman Sachs 

18.33 

3 

6.43 

71 

23.38 

1 

7.68 

61 

Lehman Brothers 

12.89 

4 

4.49 

58 

11.40 

8 

3.76 

60 

Nomura 

12.64 

5 

4.47 

83 

12.99 

6 

4.27 

49 

Swiss Bank Corp 

12.31 

6 

4.35 

68 

0-54 

17 

2.15 

36 

UBS 

11.64 

7 

4.12 

34 

10.10 

11 

3.32 

49 

Morgan Stanley 

10.88 

8 

3.78 

63 

14.19 

4 

4.68 

56 

JP Morgan 

10.06 

9 

3-56 

49 

8.61 

12 

2.83 

42 

Deutsche Bank 

9.81 

10 

3.47 

46 

20-35 

2 

6.69 

64 

Industry totals 

282.79 


100.0 

1579 

30435 


100.0 

1443 


FUI craft to booknmar 


Soimc* Eunmanoy Bondmre 


have, therefore, provided Inves- 
tors with a degree of protection 
In this year’s rising Interest 
rate environment 
Probably the most startling 
trend, in this year's bear mar- 
ket, however, has been the rise 
in the volume of eurobonds 
denominated in yen. With the 
yen appreciating against the 
US dollar and with exceptional 
volatility in European bond 
markets, Japanese Investors 
have concentrated on their 
own currency sector. The 
result has been a 50 per cent 


increase in yen-denominated 
issues, to $46flbn In the first 
nine months of 1994. 

The Italian lira is another 
currency sector which has 
returned to favour this year. 
The equivalent of $13.9bn 
worth of new eurolira bonds 
were issued between January 
and September of this year, 
compared with $lobn worth 
over the same period in 1993. 
After sharp falls In Italian gov- 
ernment bond prices earlier in 
the year, the market has again 
stabilised in recent months. 


EUROBOND ISSUES BY CURRENCY 


1994* 

Rank 

Currency 

Total 

raised (Sbn) 

No. of 
Issues 

1993* 

Rank 

Total 

raised (Sbn) 

No. of 
Issues 

1 

uss 

117.92 

547 

1 

113.06 

557 

2 

Yen 

46.93 

370 

4 

31.11 

167 

3 

Storting 

25.90 

115 

3 

35.83 

166 

4 

D-Mark 

22.23 

82 

2 

41.31 

114 

5 

FFr 

19.77 

72 

5 

2B.92 

112 

6 

Lire 

13.93 

106 

7 

9.99 

69 

7 

CS 

12.54 

104 

6 

24.79 

135 

8 

Guilder 

8.60 

50 

8 

9.64 

42 

9 

Ecu 

6.65 

26 

9 

5.19 

17 

10 

AS 

5.02 

68 

10 

2.59 

32 


*nmt iwm moron 


Source: Eanrmnay Bomto mi 


Other European currency 
sectors have experienced sharp 
falls in eurobond issuance as 
demand has evaporated at the 
prospect of higher inflation 
and rising short-term official 
interest. 

In the D-Mark sector, the 
equivalent of $22.2bn worth of 
eurobonds was issued in the 
first nine months of this year, 
against $4l.3bn in the same 
period last year. 

The sterling sector, which 
saw the first rise in official 
short-term interest rates last 
month, saw issuance between 
January and September of 
$25£bn. against $35JBbn in the 
same period of 1993. 

Of the top eurobond houses. 
Merrill Lynch seems to have 
been the most successful in 
coping with these difficult and 
changing market conditions. 

It lead-managed the equiva- 
lent of $27.9bn worth of euro- 
bonds between January and 
September, an almost 10 per 
cent market share, compared 
with $l2.73bn, or about 4 per 
cent of market share, at the 
same stage last year. 

The direction the eurobond 
markets will take over the 
remaining months of 1994 is 
not clear. Whether the yen sec- 
tor remains In vogue will 
depend, in part, on the perfor- 
mance of the yen against the 
dollar. 

With European interest rates 
headed upwards, however, 
European currency sectors will 
likely remain In the doldrums, 
while FRNs can look forward 
to continued popularity. 


NEW INTERNATIONAL BOND ISSUES 


Borrow 
us comas 


Annum 


_ YMd 
We o % 


Launch Bock nmer 
qaead bp 


160 

TlnfOlCaMt 200 

Sai hOgud tap. US 

BBW Hnano# WbihOobs* 50 

MmrBMkt 12 S 

Soc. Gfci Axcptancew 75 

LahlMM Rqitfc «0 

Korea Baoopnwt Sanfcfl 500 

L -8a* 200 

Ban BbmMh 100 

Bud Tnkyff u raea re KdpaMt B0 
Owoiosa 50 

Uoarey 8a*0i1)*t 55 

Haaoy 25 

C UBiMnlaH: 0ta» BMrt 200 
srama 


octsooi 240 

to.OT1 (hi) 
Apraom 9000 
Sep-1995 an 
OctJBST (4 
00.1995 zm 
0CL1Q87 11125 

0*2004 urn 
H0I.1997 7JJQ 
0*199? 11.001 
0(12004 (g1) 
00.1999 ID-005 

Apr-1 #6 (W) 
Jn-1996 to) 
Nw.1998 7 JO 


Borrow 
rrwjwf ure 


Amount 

m. 


Cagn 


WaW Launch Booh ran* 
Prtca % spread bp 


100.00 
90650 
99.6CH 
BW25 
IOOOOR 
1 00.005 
995381 
lOOCOfl 
99-95H 
99.05R 
100.15 
99.52SH 
99-95 
JH95 
10Q.JZR 


Sft* 

enema 


ML Rnm 


LO04 +190(9(1 5yr) 


HK 


10S1 +325(8 yt- 87) Hart Lynch ML 
(UJ0O +80J7Jg%-99 CS fW Boston 
7-019 nobiavw) Set* Back Cap 
11.38 +450(aia*97] Semen BroOMre 
■ BkJf Tokyo CaoUJkts. 

ia 12 +290(7 1 , VS) arc** htematoo* 
QwafcaJ ktv’mw Bk. 

7.«« .aw SKS&hl 


M* Local da Francs 
AUSTTWJAW DOLLABS 


ISQOn Norr.1998 11.70 101.54 11.20 

200*1 to. 1396 11.10 101.075 10.48 

ISOM to. 1998 11.00 10152 1062 


(Mb katana 
BNU San Panto, Tain 
BO 


200 Hw.1697 6.75 9985* +260%V97) Rafidbank fedBrtnd 


to* SttiWMBi Trawiy Cap. 100 Hw.1997 025 101.04 aJM BZW 

100 Hw.1997 950 100924 9.(34 ABN Aovtf HSBC I 


200 to .2002 5.625 10i50 5.235 

75 Sap. 1997 5.125 10165 

loo Auaiasa 560 10135 4793 

Oct IMS 260 1IXM» 


150 


Sob. Sin. taeptorar 
MAflKS 


120 to.1997 6675 99677* 4934 +4d(8^V97) HSBC Mrfcffi 


SShbcIiiS*^ 100 

ABfeai Dentonent Banx 300 
Brand kwsetiMit Brig Itn 
JRI IS] 

ig 


00.1999 723 99631 
00.1997 1CL2S 10060 
0CL1999 735 9963* 
to-ZXB 760 10068 
0(12004 7.75 loam 


7668 +25Q>4%-8Q 

1CLD1 

7688 

7.732 +25ff4,V04) 


Omaha? SBC Ftt 
CUmsaha* 
Deutsche Bank 
WMLB 

DsjtsdW LTCB Rrt 


P SL 

LUBWOUBa FMHCS 

Bacrii Oversea 2tw Oct 2001 a. 50 

Cragam Weraataal Bank an JB.199B a. 00 
OetmhaBarttliMUboaBQ 2tn Dee.1999 400 


CraSl Sum 

Mail Lynch CfiNHA 

Uarfl Lynch CepUdS 
Cra* torn 


102675 8643 Bacoo to* lux. 

10260 760 begem ML Baric 

102.45 7.40 BCU (Mas UK 

ndPtant gawnwngt bond) at laundi 


Abbey WLTmawry Senkss 2bn 
Khgdomatarean 2n 
CfflAOUW COLLARS 


Nw.lW 725 9946 

to-1998 7.125 9968 


7672 

7.192 tlB^fe-OB) 


Benque Paritaa 
Barque Pate 


Wnta-BdBWfOiAmrta 100 lfa.1M9 8.79 99394* B.752 +15(H%-98| Horfl lynch ML 


gagas* gmssssss&sgsgsi 

* >«% MnglWpi IQ oar. « CaUda ki to 90 8 M 
0,1 10»9» wnwmd h Sfrl7Sm. a J-mih Ul» *7 

C o'S? Ls(h American dttt , 1) PuttaWo on 80 OW ai par. d «m«w 

omo atod_a ito hoot omg m is rov at) 3-am utw tsftp. nm m hil 

wnSM fSZ KSS TtStSSSff SKA SSXA'T 

C^OL 0) VxWS ST* * 













n .jUrt*sfc spots 

OiHvi^rL Pniol-nilruil. 


Jean-Claude Trichet - France 


Loteat not.tn> 

Contributor Loc 


Source Deal 


Bid/flsk 



. Latest Spots 

' rnnt«>ihiiti4 


Antonio Fazio - Italy 


Latest Spots 

rnn(i>ih»I-ru> I iv C> 


Hans Tietmeyer - Germany 


••■>: Latcit naLCi 

Contributor Loc 


Source Deal 


Latent naue=> 

Bid/ftsk Contributor Loc 


Source Deal 




€ 



f j 





Latest Spots 

Dirf/Arl«. PnriVi*ih<itrvM . (nr Ctwwi 


Latest Spots 

Di«l ^Ark ■ Pnni-n i hiiim* .. I Ci 


Latest Spots 

Di #1 riuitrihulnr I nn Ci^m 



. Latest Spots : 

DrH /ArL Pnnlni hiiLnr . I nr C»w»#» 


Urban Backstrom - Sweden 


Latest Spots 

Dili yArk Pnlnini hiil-nn 


Eddie George - U.K, 


Latest Spots 

(Vi’ji/rtf-L Pnn]-i>ihiiil-n>> 


Alfons Verplaetse - Belgium 


Will they tell you first? 

(They will if you have Reuters Financial Television.) 


Over the next few days, if you have Reuters Financial 
Television, you’ll get live TV coverage of the IMF 
Conference in a special window right on your own PC or 
workstation, integrated with your usual Reuter information. 
Plus exclusive behind-the-scenes interviews with many of 
the key players in international finance. So you can act on 
the news from the Conference the moment it breaks. 

Since its launch in June this year, Reuters Financial 
Television has carried an average of three live events every 
day, covering interviews, press conferences and speeches 
from the key players in international finance such as 
Tietmeyer, Greenspan and Mieno, many of them 


exclusively. The speed advantage over other services has 
been anywhere from 30 seconds to 2 1 /* minutes. 

Unlike conventional TV news it concentrates exclusively 
on financial events, and alerts you only when something 
relevant has happened. ‘Vbu’ll also get informed reaction 
and analysis from respected market analysts to ensure you 
have the complete picture, plus news updates throughout 
the trading day. 

It’s like being there as international financial figures 
shape the news. The competitive advantage is obvious. 
And of course it’s nice to know they told you first. 

Be there with Reuters Financial Television. 



FINANCIAL TELEVISION 


Making the best information work harder 

For further information contact your local Reuter office or Area Headquarters 


data lor Hie monitoring oj targets, ana Die iwr mu iiuuunnis ui whmc 























30 


FINANCIAL TIMES MONDAY OCTOBER 3 1^4 


★ 


NEW YORK Frank McGurty 


Muted sighs of 
relief after 
FOMC meeting 

The sighs of relief when the Federal 
Reserve decided against an immediate 
credit tightening last week were muted. 
The leading market indices managed to 
add a few points in the aftermath but 
most analysts expect them to reverse 
course before too long. 

This week it may become more 
apparent why the enthusiasm of 
investors has been restrained, even 
though few had predicted an early 
move by the Fed, and not many would 
have welcomed one. 

Interest rates are approaching a level 
at which the appeal of equities would 
diminish, analysts say. With that in 
mind, the stock market is closely 
tracking the yield on the benchmark 
30-year government bond, which is sure 
to rise or fall in response to any change 
in monetary policy. 

Most investment strategists see the 
8.00 per cent level as a red flag for 
equities. Late on Friday, the long bond 
was bid at about 7.83 per cent, 
compared with 7.79 per cent before the 
Federal Open Market Committee's 
policy- making session on Tuesday. 

When the FOMC meeting ended with 
no statement - save a terse 
announcement that the meeting had 
adjourned - Fed watchers were quick 
to put an unfavourable spin on the form 
chosen by the central bank to frame its 
traditional reticence. 

The statement was interpreted as a 
signal that the FOMC had authorised 
Mr Alan Greenspan, the Fed c hairman , 
to increase rates as soon as he sees 
irrefutable evidence that the economy 
is growing at an unmanageable pace. 

He may not have to wait very long. 


Dow Jones Industrial Average 



This week brings the most keenly 
watched economic report of the month. 
On Friday, the Labor Department will 
release September employment data 
which is expected by analysts to show a 
gain of 250,000 in non-farm payrolls. 

An excessive rise may not cause Mr 
Greenspan to act immediately. He may 
want to consider next Friday's data on 
industrial production before making a 
decision. But a big jump in payrolls is 
likely to trigger an instant reaction in 
the stock market, as investors 
anticipate what would then seem to be 
inevitable. 

A month earlier. Wall Street was 
pleasantly surprised by a payroll 
increase of just 179,000, which helped 
lift share prices to their mid-September 
highs and perhaps persuaded the FOMC 
to stand pat last week. 

This time, however, a stronger than 
expected surge in August industrial 
production suggests that manufacturers 
may have taken on more workers in 
September than analysts have 
calculated. 

Against this unfavourable backdrop, 
the third -quarter reporting season has 
arrived. Wall Street is expecting strong 
results. If this week's first arrivals fail 
to impress, the negative sentiment 
could spill over into related stocks. 


EQUITY MARKETS: This Week 


LONDON « Terry Byland 


International offerings 


Vulnerable to 
fears of further 
tightening 

Fund managers and stockbroker 
analysts face an uncomfortable Monday 
morning. The third quarter of 1994 has 
come and gone, leaving little behind in 
the way of significant equity 
performance and with market fears of a 
tightening in. Federal Reserve credit 
policy increased by the latest data on 
US gross domestic product and housing 
starts. 

Not the best opening to a final 
trading quarter, which requires the UK 
market to gain up to 20 per cent if it is 
to meet the most optimistic of City 
forecasts for the FT-SE 100 Index at the 
year-end. With at least two leading 
international investment bankers still 
prepared to compare October 1994 with 
October 1987, even if they do finally 
reject the comparison, it is not 
surprising that some nervousness is 
creeping into analysts’ forecasts. 

S.G. Warburg has taken the plunge 
and cut its year-end Footsie forecast 
from 3,500 to 3,250 - “a more plausible 
central assumption", says the Warburg 
strategy team, in view of the absence of 
significant recovery of confidence in 
global bond markets. For Footsie 3,500. 
Warburg says we will all have to wait 
until December 1995; no comfort at all 
to those houses still holding firm to this 
target for the end of this year. 

Rising bond yields have returned to 
haunt the UK stock market , perhaps 
even surpassing corporate earnings 
uncertainty as a governing infliipnrp 
Klein wort Benson Securities sees the 
London equity market as particularly 
vulnerable, and has cut the UK 
weighting of its recommended equity 
allocation from 12 to 10 per cent 


FT-SE-A All-Share lnd«x 



Kleinwort is keen on cash (10 per cent 
recommended!, a view that found 
favour last week with some fond 
managers, who decided trustees might 
be impressed if they sold UK equities 
even if returns on cash are not 
impressive. 

Leanings towards cash are echoed by 
UBS in its comparison of the present 
market scenario with that of 1987. It 
rejects any suggestions of a major 
disaster, but says that worries over 
equity valuations, a weak US currency 
and high real interest rates could drive 
investors to the short end of global 
government bond markets. 

Goldman Sarhc , the other house to 
refer back to 19S7. also says “short-term 
oriented investors might usefully boost 
their cash holdings". For the mpdium 
term, Goldman is optimistic on equities, 
believing that US economic recovery 
will last at least into 1966. 

Nor are these uncertainties mere 
long-range views. The UK stock market 
has proved itself still highly vulnerable 
to fears of further tightening in global 
credit policies. This Friday’s 
announcement of US payroll data, 
expected to be strong, could trigger a 
further aggressive tightening by the 
Fed, “not just in October but 
subsequently”, according to Kleinwort 


Russian 'blue chips’ in 
search for pioneers 


When JSC Rosneftegazstroy 
(RNGS). a Russian oil and gas 
construction company, 
announced last week that it is 
seeking to raise $25 .5m by sell- 
ing 3.7 per cent of its shares to 
international investors, the 
news did not grab any head- 
lines. 

However, in a week in which 
managers of Five “self-styled" 
blue chip Russian companies 
came to London to present 
their businesses to potential 
international investors, it pro- 
vided another reminder of Rus- 
sia’s status as an increasingly 
fashionable emerging market 

In spite of huge risks, includ- 
ing widespread crime and a 
primitive stock market more 
than $5Q0m a month in over- 
seas money is now flowing into 
Russian companies, attracted 
by returns of several hundred 
per cent. 

Several funds, most of them 
launched this year, allow insti- 
tutions to buy Into Russian 
companies, often through the 
over-the-counter market 
(which accounts for the bulk of 
stock market trades). These 
have helped crystallise inves- 
tor interest 

Baring Asset Management 
hopes to launch a fond of not 
less than $100m later this 
month, following in the foot- 
steps of companies such as 
Framlington. which raised 
S66m with its Framlington Rus- 


sian Investment Fund lost 
December, and Fleming, which 
launched its $55m Fleming 
Russian Securities Fund last 
month. 

The company announcing its 
capital-raising plans this week. 
RNGS, is following in the foot- 
steps of Gazprom, the largest 
gas producer in Russia. 

The government two months 
ago appointed Kleinwort Ben- 
son to sell up to 9 per cent of 
Gazprom’s shares to overseas 
investors, either through a pri- 
vate placement or interna- 
tional issue. 

RNGS, the legal successor to 
the Soviet Ministry for Oil and 
Gas Construction, is being 
advised by Geneva-based 
Rhone Finance. 

Desperate for capital, many 
Russian companies could fol- 
low suit Many of the biggest 
are now be ginning to organise 
their accounts and other 
operations more efficiently. 

Ms Beth Hebert, fund man- 
ager for the Fleming Russia 
Securities Fund, notes that last 
week’s “blue chip" roadshow 
in London signalled a sea 
change in attitudes in Russian 
business. 

“It is not very often you get 
a chance to hear directly from 
these companies. It is quite a 
change from where we were a 
few months ago when people 
didn’t even return phone 
calls,” she said. 


CA. the Moscow-based bro- 
kerage which organised the 
meeting, said a number of Rus- 
sian companies are preparing 
to issue global depositary 
receipts from January next 
year. 

Ms Danielle Downing, a 
director of CA, said she expects 
Russian banks, which are more 
accustomed to producing 
audited accounts and have rel- 
atively strong balance sheets, 
to be among the first catego- 
ries of companies to issue 
GDRs. 

Later in 1995 and 1996. Rus- 
sia's huge utilities and energy 
companies could follow. As 
well as UESR. Lukoil, the 
country’s biggest oil company, 
is one widely-tipped candidate. 

GDR issues may increase the 
acceptability of Russia to a 
wider spectrum of investors, 
but mainstream investors are 
likely to remain on the side- 
lines for sometime. 

Mr Gary Fitzgerald, head of 
emerging markets at Framling. 
ton, says that most investors 
in Russia at the moment are 
those prepared to accept 
higher risk. 

Mr Jim Mellon, managing 
director of Regent, is bullish 
but warns: “This is absolute 
pioneer stuff. Its real acorn 
investment. There are bound 
to be disasters on tbe way." 

Richard Lapper 


OTHER MARKETS 


FRANKFURT 

After today's unification 
holiday, tbe market wifi 
increasingly be influenced by 
opinion polls ahead of the 
federal election on October 16. 
UBS expects a continuation of 
the volatility in the stock 
market to be combined with a 
sideways trend in the run up 
to the polls. 

On the corporate front. 
Allianz holds its annual 
meeting on Wednesday while 
Thursday and Friday bring the 
annual meeting of the 
chemical association. UBS says 
that volume in the domestic 
chemical sector was up 4 per 
cent in the first half of this 
year. 


Given that the usual 
seasonal downturn in the third 
quarter did not happen this 
year, positive indications 
might be given for the last 
quarter of 1994. 

August industrial production 
and manufa cturing order 
figures are due on Thursday. 
James Capel expects a 0.6 per 
cent rise in industrial 
production, noting that recent 
rises in industrial orders point 
to continuing strength in 
production. 

It forecasts a 0.5 per cent 
increase in overall 
manufacturing orders, noting 
that, encouragingly for the 
sustainability of the recovery, 
the improvement in orders was 
increasingly spreading to the 
domestic side. 


MILAN 

With the mostly good 
corporate reporting season 
now over, tbe debate over the 
government's budget proposals 
will rumble on this week. 

James Capel says that the 
Hnminani issue to its European 
equity strategy is one of 
earnings recovery, which 
It expects to support 
s ubstantial market advances 
over the next year to 18 
months. 

The broker forecasts a 50 per 
cent recovery in earnings per 
share in 1995 in the Italian 
corporate sector, driven both 
by volume ripmand and a 
reduction in variable costs. 

James Capel believes that 
the short-term risks remain 


considerable and could depress 
market performance further. 

The heterogeneous nature of 
the ruling coalition and 
opposition from the unions 
might soften the proposed 
budget cuts aimed at 
correcting the fiscal imbalance. 

The long-term outlook, with 
recovery in output and 
earnings, and a budgetary 
position that was certainly 
better than that of Sweden, 
could be promising for equity 
market returns, says the 
broker. 

At present, however, it 
maintains the view that other 
European markets offer growth 
prospects and value at lower 
risk, although individual 
stocks have good growth 
potential. 


STOCKHOLM 

The market has little in the 
way of results to provide focus 
this week. 

Friday, however, will bring 
the listing of a SKr3bn tranche 
of Stadshypotek, the country’s 
leading provider of housing 
finance. 

Unibank Securities says that 
concern over the 
determination of the country's 
new government to implement 
austerity plans raises 
questions over the near-term 
pressure on margins of tbe 
banking system as a whole. 

In the longer term, the 
markets will focus on 
Sfadshypofcek’s ability to fund 
its own liabilities without state 
backing from January 1 1995. 


TOKYO 

Investors remain cautious over 
the direction of the yen and 
announcements of revised 
interim corporate earnings. 
writes Emiko Terozono. 

Although share prices failed 
to react to most oflast week’s 
upward revision 
announcements, investors 
have not missed the 
opportunity to sell on 
downward earning s revision 
releases. 

While buying by public 
pension and insurance funds is 
expected to support the 
225-share Nikkei average until 
the listing of Japan Tobacco 
later this month, a further fall 
of Japan Telecom could trigger 

s piling . 


HONG KONG 

Property company shares are 
likely to remain a key feature 
of trading in the colony this 
week as the sector rounds off 
its reporting season with the 
announcement of full-year 
figures by Sun Hung Kai 
Properties on Friday, writes 
Louise Lucas. 

The sector took a tumble at 
the end of last week after 
Cheung Kong, the property 
development company 
controlled by Mr Li Ka-shing, 
announced pre-sale prices for 
apartments in a New 
Territories development. 

These proved sharply below 
market expectations and those 
of recent pricings of similar 
developments. 


In response, the Hang Seng 
index fell 1.9 per cent on 
Friday, wiping out the benefit 
of cumulative rises seen during 
the four previous sessions and 
leaving the market 1.2 per cent 
lower on the week. 

This month’s land auction is 
also expected to generate little 
excitement 

Share prices could continue 
to trend lower on concerns 
about the over-heating 
economy in China and the poor 
state of Sino-British relations. 

Investors will also be looking 
to governor Chris Patten’s 
policy speech on Wednesday 
for any signals of plans to 
improve cooperation between 
the two governments. 

Compiled by Michael Morgan 


COMPANIES & FINANCE 

Banks lending to companies 
at less than cost of capital 


TANJONG 

PUBLIC LIMITED COMPANY 

(, Incorporate in England No. 210874 / 

NOTICE OF AN INTERIM DIVIDEND 
AND CLOSURE OF BOOKS 


By John Gapper In Madid 

The excess of 
capital in the 
banking sys- 
tem is leading 
to banks lend- 
ing money to 
large compa- 
Conferences nies on terms 

which only 

cover "a modest proportion” of 
the cost of capital, according to 
a leading banker. 

Mr David Harrison, the 
senior general manager for cor- 
porate banking at Lloyds Bank, 
said that credit losses in the 
early 1990s had “to be regarded 
as once in a lifetime acts of 
God” to justify recent loan pri- 
cing. 

Mr Harrison told the Finan- 
cial Times conference on inter- 
national banking in Madrid 
that there were, nonetheless, 
trends in corporate banking 
which allowed Lloyds to main- 
tain its commitment to the 
activity. 

These included the chance of 


forming partnerships with cus- 
tomers to design tailored prod- 
ucts, such as cash manage- 
ment systems, which banks 
could then offer to a wider 
market knowing that they had 
been tested. 

He defended the use of over- 
drafts by UK companies 
despite supervisory calls for 
longer-term finance. “With 
luck, the atmosphere will 
improve as the recession 
recedes - the overdraft is too 
useful to be abandoned," he 
said. 

Mr Onno Ruding, vice-chair- 
man of Citicorp, said that mon- 
etary union in Europe was 
“not dead, but carries a serious 
possibility of being imple- 
mented around the year 2000" 
by five or six EU members. 

However, technical factors 
such as the need for banks to 
have five years’ warning of the 
introduction of a single cur- 
rency meant that the original 
Maastricht Treaty timetable of 
foil union by 1999 was unreal- 
istic. 


FT 


Maytag decides against 
Australian flotation 


By Nikki Tait in Sydney 

Maytag, the US home 
appliance manufacturer, is 
abandoning plans to float its 
Australian and New' Zealand- 
based white goods and floor 
care appliance operations. 

It blamed the recent deterio- 
ration and weakness of the 
Australian stockmarket, espe- 
cially for new offerings, and 
said it could see greater value 
in retaining the operations, 
rather divesting them ‘into a 
down market". 

The decision to abandon the 
flotation of Hoover Australia 
follows several days of 
rumours that the sale was in 
trouble. Earlier in the week, 
there was speculation that the 
price at which the shares were 
to be sold might have to be cut 
from AS1 to 85 cents because of 
lack of interest among institu- 


tional investors and potential 
sub-underwriters. 

Maytag first announced 
plana to sell the businesses in 
May, saying it would prefer to 
do so by way of a stockmarket 
flotation. The operations were 
formerly part of the Hoover 
group, which was taken over 
by Maytag in 1988. 

Hoover Australia is reckoned 
to have about 18 per cent of the 
white goods market in its 
home country. Analysts had 
expected the sale to raise 
between AS 1 00m f$73m) and 
AS150m. 

• Shell Australia has released 
details of the planned flotation 
of its minerals business, which 
is being packaged Into a new 
company called Acacia 
Resources. It said 200m Acacia 
shares - 100 per cent of the 
company's equity > would be 
offered at AS2 each. 



071 329 B28 


The menilal tool for ih* ini.wi im-caior 

Market-Eye 

London stock exchange 



He said that retail banks 
would bear substantial costs of 
adaptation, but tbe main reve- 
nue losses would be felt by 
wholesale banks, which would 
suffer a loss of income from 
intra-European currency 
exchange. 

Mr Isamu Koike, managing 
director of the Industrial Rank 
of Japan, said that Japanese 
bankers were more confident 
that they had identified the 
size of bad debts stemming 
from the “bubble" economy. 

Mr Koike said that the 
S136bn of non-performing loans 
held by the 21 largest banks 
would “not be resolved over- 
night" but Japanese banks’ 
earning capacity should enable 
them to recover without gov- 
ernment intervention. 


SOC1ETE GENERALE 
USD 200.000.000 
SUBORDINATED 
STEP-UP FLOATING 
RATE NOTES 
DUE 2008 

For the period 
September 30, 1994 
to December 30, 1994 
the new rate has been 
fixed at 5,75 % PA. 

Next payment date : 
December 30, 1994 
Coupon nr : 4 

Amount : 

USD 145,35 for the 
denomination of 
USD 10 000 
USD 1453,47 for the 
denomination of 
USD 100 000 

THE PRINCIPAL PAYING 
AGENT SOGENAL 
SOCIETE GENERALE 
GROUP 

15, Avenue Emile Reuter 
LUXEMBOURG 


NOTICE IS HEREBY GIVEN (fax an interim dividend of 3.4 sen per share rafter 
having at en account of Mafaysan Income Tut 31 32*1 in respect of the Biaxial 
year ending 31 January 1993 was dectarcd by the Directors PC 30 September 1994. 
Subject lo the foUowuig paragraph, the dividend wflj be mid on IS December 1994 
to shareholders oc re c ord of the Company at the close or business on 34 November 
1994. 

Any employee of the Company who hat exercised, or wishes to exercise, the option 
eu s o b a cr ib e far shares in me Company panted to such employee under the 
Company's Employees' Share Option Scheme should note m at an anpknee 
exercising such an option is not entitled to an interim dividend if h is deebred before 
the date of the employee's exercise or option. 

In any event, the Register of Members of the Company will be closed from 
23 November IW4 to 30 November 1994 (both dates inclusive) for the purpose of 
desenmning shareholder,’ entitlement to the dividend. 

Registrable transfers received by tbe Company's Branch Re gistr a r s in Malaysia. 
Signet A Co. Sd b Bftd, at 1(32-3. 1st Floor, Kompleks Anuretanpu. falsa Safari 
Ismail. 30230 Koala Lumpur, Malaysia, or the Company's Principal Reghtran in 
the United Kingdom. Independent Registrars Croup U ml ted, at BroseJev House. 
New lands IXivt, Witham. Essex CMS 2UL, up to die dose of busmen at 3.00 p.m. 
on 24 November 1994 will be registered before eutidemenu lo tbe dividend are 
determined. 

BY ORDER OF THE BOARD 

David Kuok 
S bo a gam y Ramt&amy 
la im Sec r et ar ies 

30 September 1994 

I7tb Poor Menara Bouflead 

Jalau Raja CbuJan 50200 Koala Lumpur 

Malaysia 


BEnrDDJSTi;?. 


Residential Property Securities No. 3 PLC 


£95,000,000 £ I SO, 000.000 £5.000,000 

Class A 1 Notes Class A 2 Notes Class B Notes 

Mortgage Backed Floating Rate Notes due 2025 


In accordance with the provisions of the Notes, notice is berebs given 
that for the three month period 29th September 1994 to 29th December 
1994, the Class Al Notes, Class A 2 Note, and Claw B Notes will carry an 
intenas rate of 6.2259a, 6.n q S D -.j and 7.125*0 per annum respectively. The 
interest payable per £100.000 Nolo will be £949.88 for the CLa» Al Notes, 
£1.519.58 For the Clam A2 Note* and £1.776.37 for the Clam B Notes. 






Sovereign (Forex) Ud. 

24hr Foreign Exchange 
Mi ii Bin Boding Fad&tp 

Compel ilfre Plica 
DaSjr Fox Service 
**071-931 9188 
Fax 077-9317114 
42 p Ivrfrwiflhgi, Mow toad 
landau SWnWOE 


To Advertise 
Your 

Legal Notices 

Please contact 
Tina McGorman 
on -44 71 873 4842 
Fax: -44 71 873 
3064 . 


Nafin Finance Trust 11 
LLS. SI29.880.000 
Floating Rate Notes due 1999 
For the Interest Period 30th 

Se p tember. 1094 to Jni January. 

1 99 j the Norcs will carry a Rate 
of Inrcrcsr of_ 7.73125*% per 
annum. The Coupon Amount 
per original U.S. SlO.lXW Note 
willbcU.S. £128.96 payable on 
3rd lanunty. 1995- 

□ BulintTrWi 

Ctt uipia y, Lo n lion AsraiBmk 


IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIHIIIIIIIIIIIIIIIIIIIIIIIII 

End of Month S.G- Warburg Warrant Valuations 


as at 30th September 1994 


Single Stocks 
BHP 

Coles Mycr 
Berner 

Danaj 
ChetmR Kong 
Chlni i i aht 
Doo Hcng Bank 
Hong Kong Electric 
I Telecom 


Son Hung Kai Properties 


PhtBps I 
Moodadori 


Tefecom I tafia 1 
Telecom Italia 2 
Sect 1 
5ter2 

Thai Far men Bank 

Baskets 

Australian huuraocc 
European Airlines 1 
European Anfiocs 2 
European Multi-Media 1 
European Multi-Media 2 
European Sleds 
German Mcchairiral Eng 
UK Banks 
UK Insurance 
UK Food Retailers 
UK Phanaaceorierii 1 
UK Pharmaceuticals 2 
UK Su p port Services 
UK Water Companies 
Italian Industrial! I 
I talian Industrials 2 
Itafian Recommendation 
Swedish Capital Goods 
Asian OD Sector 
European Commot&tic* 
Indo-China 
Koran Blue Chips 
Sin gapore Shipyards 
Taipa P r operry 
Taiwanese Bhie Chip 

Indices 

FTSE Mid-ISO Index 
FI5E Mid -250 Index 
FTSE Mid-250 Index 
FT5E Mid-250 Index 
FTSE Mid -250 Index 
FTSE Mid- 250 Index 
FTSE Mid-250 Index 
FTSE Mid-250 Index 
FTSE Mid-250 Index 
Bd-30 

BO-30 

Relative Performance 

Invcstoc/Core Holdings 
favemm/OMX 
VoWo/OMX 
Voho/OMX 



TYPE 

CURRENCY 

SPOT 

STRIKE 

PRICE 

EXPIRY 


Call 

AUD 

19.63 

1950 

Ltil 

29th Jun 95 
23rd Nov 95 


Call 

AUD 

4.17 

4.10 

0.64 


Call 

CHF 

1210 

1250 

1660 

20ih Jun 96 
2nd Aug 96 


Call 

CHF 

1710 

1600 

42jOO 


Cali 

HKD 

37-60 

39.80 

1.11 

8th Mar 96 


CjO 

HKD 

39. 40 

41.00 

0.93 

2nd Jan « 


Call 

HKD 

26.30 

32.00 

0.40 

25th loti 96 
6th Feb 96 


CaD 

HKD 

25.40 

29.20 

0J9 


Call 

HKD 

15J0 

15.60 

059 

24th Nov 95 


Call 

HKD 

3650 

36.00 

0J5 

21st Dec 95 


CaD 

HKD 

21.70 

17.00 

745 

6ch Sep 95 


OD 

HKD 

17.10 

13.05 

6.18 

2I« Dec 95 


Call 

HKD 

57.80 

SO.OO 

145 

2nd Ian 96 
31(i Oct 95 


Can 

DM 

144 

250 

137 


CaD 

NLG 

53.10 

S4.18 

6j07 

8th Sep 95 


Col! 

ra 

15230 

16830 

321 

22nd D« 95 

Capped Call 

ITL 

3635 

4246 

203 

30th Mar 95 


Call 

m 

4408 

3832 

1159 

Nth Ian 96 


CaU 

ITL 

4408 

5237 

383 

28th Jun 96 


Call 

ITL 

4843 

4725 

Ml 

14th Sep 95 


CaU 

m 

4843 

67 70 

299 

28th jun 96 
17th Jan 96 


Call 

TUB 

164 

127.80 

60.90 


on 

AUD 

105 

10157 

133 

3rd Jan 96 
3id fcb 95 


Call 

£ 

418 

320 

1051 


OH 

£ 

418 

46851 

5.30 

9th Mar 96 


Call 

£ 

203S 

202857 

2J02 

28ib Sep 95 


Call 

£ 

2035 

2475 

047 

28th Sep 95 


OH 

DM 

3962 

2550 

144 

12th Jan 95 


Oil 

DM 

263S 

3000 

212 

3rd June 96 


Call 

£ 

100 

1 14.75 

031 

Injun 95 
20th Mar 96 


OH 

£ 

82.99 

86.00 

1.14 


CaU 

£ 

104 JO 

10605 

138 

9th Nov 95 


Call 

£ 

96 

98.03 

0.42 

26th Jon 95 
20thNov95 


OU 

£ 

96 

87.50 

1.72 


Call 

£ 

79.3 

10750 

006 

2nd Aug 95 


OU 

£ 

96 

104.75 

031 

Sth May 95 


on 

m. 

20138 

19665 

376 

31k Aug 95 


CaU 

ITL 

20138 

24549 

122 

31« Aug 95 


OB 

m 

388653 

489229 

393 

13th Oa 95 


Can 

SEX 

101823 

112054 

1331 

20ihOa 95 


OU 

USD 

1.13 

1.00 

032 

23rd Jun 96 


on 

USD 

868 

3600 

805 

10th Jun 96 


on 

USD 

0.9 1 

1.00 

0.09 

Sth Dec 95 


on 

USD 

12892 

KW9000 

730 

22nd Dec 95 


Call 

USD 

9.32 

SGD10.00 

140 

14th Noe 95 


OU 

NTTD 

1123 

800 

510 

2nd Jim 96 
30th Mar 95 


Oil 

NTD 

1286 

1000 

354 


Oil 

£ 

3495 

2900 

633 

17th Mar 95 


Call 

£ 

3495 

3470 

156 

17th Mar 95 


Oil 

£ 

3495 

3670 

144 

17th Mar 95 


CaU 

L 

3495 

3900 

0.42 

17ih Mar 95 


CaU 

£ 

3495 

3945 

159 

17th Jon 96 


Put 

£ 

3495 

2900 

005 

17th Mar 95 


Put 

£ 

3495 

3470 

1.94 

17* Mar 95 


Put 

£ 

3495 

3270 

1.12 

!7rh Mar 95 


Put 

£ 

3495 

3900 

444 

1 7th Mar 95 


on 

DEM 

15.70 

16.94 

242 

19th fan 96 
I9di Jan 96 

nee 

Put 

DEM 

15.70 

1654 

344 


OH 

SEK 

-1.54% 

*A0% 

136.10 

21k Dec 95 


OH 

SEX 

•028% 

*7-0% 

134-20 

21k Dec 95 


0)1 

SEK 

•39.96% 

-10% 

413.10 

23rd Feb 9S 


Coll 

SEK 

*39.96% 

*J-0% 

328.10 

23 rd Feb 95 


S.GWarburg 


S.G. WARBURG GLOBAL 
EQUITY DERIVATIVES 

FOR INFORMATION CONTACT JUSTIN CHITTENDEN ON 071-869 0517 REUTERS PACE: VARA 

lllllllll)llll)llllllllHll»)ll)))l»l))lllllllllillllllllllllllllll 


Q. HYDRO-QUEBEC 
VS. S 200,000,000 

Floating Rale Notes. Series I ). 
Due October 2004 
L nnjTfckkratt pmmnrd as b, (uidmi w 
pniKSpa and Ih 
PROVINCE DE QUEBEC 
NOTICE b IIEUPBY Gives itui lor 
the [niemi Period irU October 
Wt i.i trd April, IW. she imenso 
taicwiU bv S per annum 

.J™ 'reercst payable on Sul April. 

ogairur Coupon No. a will he 
JJ* *«r -»3 per V * 55.000 Nn,c and 
o S * 2 ' ? w ,i0 P cr U S. S inu.uun 
Nmc 


tt. 


I Bank of Mo n treal 

** ain **yii ten lAlh«6n. rill 


KLEINWORT BENSON |AfANESE WARRANT FUND, 

Registered Office: 14, rue Aldringen, Luxembourg 
commercial register: Luxembourg, Section B n° 37.305 

*■?*"* Gonfijl oi KLEINWORT BENSON 


ID. StCAV, wiD to held at os ro&aemTotfka m 
l II OOarr ‘ 


1 am for the 


JAPANESE WARRANT . olww . ww u,- 

14 - AWnj/den, on 12 th October. 19S4 atTfi 

pu»|(x^ttr OTSKJenng jnd voting upon the foiowmg agenda: 

hi ^ My*?*™,™ Report ot Ito Ounctors: 

^ b) the Hepxi ot the AuJtor 

: 01 chan9ea m 
^ aafflSft&aASUTSE 1 lo ** Dortomwnefl 01 

A ' rneennq o(*staSSSsra Kr ^ AuMor 10 aww unW 06x1 annual general 
that rmghi property come be too the meeting, 
is 00 Ouorum sutiBory oeneral mootmp 

or ™l««v o* *»* shat* prosem 

Thu Bead of U«wws 







It IS 







° in 
ors 


■ ■ ■ I. '.V- 

“ y. 


. . ' 7 ' 


' -*■£ 


. •• > 
• j I. t 


Ij 


% 





FINANCIAL TIMES MONDAY OCTOBER 


3 1994 



In the past 
year, we’ve 

seen our storage 
business grow 
30%, our PC 
business grow 100%; and our 
Alpha AXP sales increase 164%. 


Some people think those figures 
already represent a comeback. 

To us, it’s just a beginning. Digital 
is changing from a company famous 
for complicated decision-making, 
to one famous for decisiveness. 

At our new Computer Systems 
Division, we’re applying the 
lessons learned in our PC opera- 
tion to our core business. The 
result: a division with its own 
manufacturing, engineering, sales 
and marketing- one that lets us 

c 

pay more attention to your needs, 

with systems unequaled in their 

openness and range of choice. 

THE BEST OF CISC, 

THE BEST OF RISC 

That choice begins with two 
equally supported platforms— Intel™ 
CISC for very high volume and 
high performance PC clients and 
servers, and our 64-bit Alpha AXP 
RISC for absolutely blinding 
performance in workstations and 
servers. And we offer the only 
products you can convert from 
CISC to RISC. 

Now the industry is finally 
beginning work on 64-bit RISC, 
and we re happy to see this 
endorsement of Alpha AXP. But 
HP and Intel say it’ll take a few 
years. We have 64-bit RISC now. 
With 6,000 applications. ■ 


OUR SYSTEM: MANY SYSTEMS 

Fact is, Digital is a multiple 
operating system company because 
that’s what most of you are. 

In DEC OSF/lf we have the most 
standards-compliant, highest quality 
UNIX® in the industry. It gives 
you outstanding high availability 
features through clustering and the 
fastest recoverability of any UNIX 
on the market. And ours is the only 
commercial 64-bic UNIX system, 
which experts say will keep us the 
price /performance leader for years. 

We offer- OpenVMS™ because 
millions need it, as it provides 
the best clustering capabilities on 


the market for high-security, 
high-throughput, business-critical 
work. We plan to support it, 
invest in it, keep customers fully 
operational with it, and introduce 
it to new customers as well. 

What’s more, Digital has part- 
nered with Microsoft® to bring you 
the Windows™ operating environ- 
ment, Windows NT™ Workstation 
and Server. 

All these system options give 
you one very important thing. 
Choice without compromise. 

OUR SOFTWARE: TRULY OPEN 

Our openness even extends to 
software. One excellent example is 


But don’t worry, 
we’re planning a 
comeback. 




v - 


St- 


• 



rrMM 

■y.' r v/ 


V.-.v.t . 


our PATHWORKS™ application, 
which lets you connect with 
anybody on virtually any network 
operating system, no matter 
what client you’re on. And our 
Link Works™ software lets you 
share and edit work regardless of 
application, on most any network 
operating system. 

OUR STRATEGY: 

YOU CALL THE SHOTS 

This multiple platform/multiple 
operating system strategy means 
we never have to force a migration 
on you. You choose what’s best 
now and we support it. You decide 
when, where, or if you want to 
migrate and we provide whar you 
need. Simple. 


THE MOST ADVANCED 
TECHNOLOGY 

Nothing proves this better than 

our pioneering 64-bit RTSC 

architecture.- Where else in this 

industry are so many competitors 

so far behind a single leader? 

Right now, our Alpha AXP clients 

and servers offer the highest 

performance and the best price/ 

performance you can buy. 

THE EASIEST 
TO DO BUSINESS WITH 

One thing chat definitely isn’t 
changing is our world-class service 
and support. To be even more 
responsive, we’re dramatically 
expanding our relationships with 
resellers, VARs and System 
Integrators. Of course, if you need 
a direct relationship, we’re here, 
with our partners, delivering 
the products. Our goal is to be the 
easiest company to do business with. 
With the products and support 
that will keep you competitive into 
the 21st century. 

Just like us. 





IDDM 


31 



ClkKUl Lq<wwii 


r H YP | -MII-H MTWUTMies — < Op™ 'MS ■» DuJnwrti if D*uJ iifaywrer CWputo*. L’.VK a . rwrfn—* 4 I 'VLV Spw U-itaw, hWi>. tvirmmk t /Mil USPI 1 1, i Ctp* Sjwmi IMw. J* Mam* .. w ngnf.ni W I juJ ATT m. |J*J— I* 




mg data lor ms monitoring 01 [argots, ana oiu lor mu iiunumig ui waste iMinagiiis. *'"*»*& 



FINANCIAL TIMES MONDAY OCTOBER 3 19!>4 


WORLD STOCK MARKETS 






M (Mtamgifl/BO) 
Al Hnmg|1/1/90) 

Austria 

Cre* /wwnoanzfflfl 
Traded nwa’lftl) 


aaao twi /911 i3re.ii 

Brad 

tartan ps-issaj s wo 

Canada 

Met*; AWs+flSTS) 4121.85 

Con«K*a+ (19/51 435430 

PBrtbSoS (4/l/KQ 206486 

Odd 

PGA bn (31/12/W) 90887 

tank 

Dm ea u ga ta a/lfBa 3«£i 

FWand 

Id GowalCB/iaOO) 1888.0 

Fiance 

SHF 250 (31/12flQ) 126759 

GAC 40(3171 V97) 187425 

eciMy 

FAZ Aflen0 1/1 2/581 764JT 

Oxnrenbartql/ 12/53) 217720 

□AX 0012/87)* 2011.75 

finn 

Mnerc SEO1/12/80) 851.56 

Hang Kang 

Hang Sergai/7/64) 9S2124 

Mi 

8SE 5e«*(l975l 428100 


137721 1388.47 1542j6B 8 12 

54080 52771 JJ 9817000 1M 

414865 418016 426058 IBS 
4362.10 437250 460080 2 3/3 
2079.79 209836 218259 1/2 

5038 B 50181 908830 3M 

14823 34907 413-78 2/S 

18825 18854 197200 VS 

126298 1279.66 158820 2/2 
1876.18 190*25 235523 2/2 

77197 78150 85827 IB/5 

220180 22272 246550 2ft 
204158 2068.11 2ZH.11 18ft 

84824 841.71 119158 18/1 

370021 9533.49 12201.09 471 

435830 440849 497139 27/9 


329950 204 
3X9800 24ft 
166848 28ft 


1M» « 289 
160818 477 

75731 27* 
214830 27/6 
196882 20ft 


IMaCbmp (Z/1/8S) 290824 

Portugal 

HTA (1977) 28825 

SW" 

SES M-S‘pm(2Mfl5) 57208 
SauSi **4-3 

JSE GoM P8/9/7B) 244109 

JSEM.(3W78) 629Q0V 

Santa Korea 

taraCta»&t</iftcr 105030 


IMUSE (30/1385) 297.46 298S0 30158 85831 3171 

Sweden 

MawanKen (i/Z/37) 141240 141640 143220 180150 3171 


Mss BX M (31/12/56) 119750 
SBC bore* (1/4*7) 90617 


WeWfledPr/aaftftET 7191.13 


142134 3171 
103129 31/1 


519183 19/3 


Jofcata Conw/lOfflO} 49757 49754 502.13 61259 5/1 


GEO Otoa*l/1/8B) 104631 

Botr 

Sna Cam led (1973 679.77 

MB Genoa! (4/1*4) 11015 

Japan 

NMra 225 1165/49) 1956181 

NHo) 300 (1/10*3 28639 

Tot* (1/1.681 157959 

2nd Sccfion (1/1/68) 224057 

Matarda 

USE Camp4*4/8S 1129.76 


1851.04 1859.76 2082.10 2OT 

69057 89155 817.17 10ft 

1119.0 11235 131800 IQS 

1961612 19507 JO 2155251 13ft 
28660 287.19 »1.71 13S 

157627 156959 17IZ73 13® 
223053 221943 254Z5S 6/7 

113168 114683 131448 S/1 


58685 ion 
94100 ion 

1738374 471 
26822 4/1 
144637 4/1 
167133 471 


Bangkok SET (30/4/75) 148671 1482.12 1*8167 1753.73 4/1 119659 4/4 

iMsr 

Statful CrotKJan 1983) 268265 262115 26)065 2888180 13/1 1298670 24/3 

WORU) 

MS C*»M M (1/1/70* B2&3- 6775 6261 64*00 20 69150 4/4 

CRBMODBI 

EuWBrt 100(78/1090) 131693 133658 134851 1B461B 31/1 130348 21* 

&T) Tap-100 CBftftO) 116180 1186691 118697 131151 32 114156 21* 

JCapeDrgra (31/12/88) M 33643 33759 39619 611 29058 21/3 

Bangs Bnetg(7/U82) 18853 18618 18668 1S1J9 26* 14150 21/4 

■ CAC-4Q STOCK BBBX FUTHRB3 (MATIF) 

Open Sen Prica Change High Low Eat voL Open Ini 
Sep 1877.0 18585 -17.8 1890.0 18560 26330 16.071 

OC1 1884 5 18800 -4.6 1898.0 18875 >6801 25,405 

dec 1899.0 16865 -4.6 1893.0 18760 121 378 

Open Kan (gum for premia day. 


■ 8TAIKMHP AND POORS BOO WDBX FUTURES S6Q0 rimes Index 

Open Sett price Change K#t Low Est voL Open im. 
Dec 463.95 46125 -0.75 46685 46110 65,087 208,332 

Ma 467.85 48655 -050 *70.05 46640 1J059 7598 

Oun - 47055 -0.70 47350 47050 18 2,062 

Open Inaras' fans ■"* tor pw4ous (My. 

ta MW YORK ftCIlWE STOCKS ■ fflACWO ACTlWlY 

Fritter SUB Ctese Change • W*n* tnfert 


Fritter Starts Base CMge • Wtae (nflfcr) 

traded price on day Sep 30 Sep 29 Sep 28 

TMtane 3.719500 62% *4* ** ** * “ ^ 

USA* 3706900 4*r +H 3tMS Z4543 21.433 

EMC 3537.4C0 20 +H & SSSS M-MMS6 SI fin , 

PWta Morrh 3513,400 61 h +1* HYSE 

Sea Motors 3505500 46% +54 lames Traded 25S6 2554 2560 . 

Compaq 1143,600 3244 +K fees 1596 B83 1507 

Empreeea 1139.900 25* +H Fab 8*7 1589 795 

MR HeUece 2572500 6% - Urcianged 723 722 668 

C&rysfcr 2.731500 44% ** Hew «gfa 66 43 52 

Met Med 2596100 17* +M Hex Lora 73 94 74 

• ExeSnSofl bonds. iMoM plum utWes. FtaqncM ad Transportation. 

■ and torn are tha overages o» m Nrtosl and (Meat prices naadrad <*r+tj the day Oy each 
•eras (awderi by TaMui) to mU Ab Ifaust and l oom s refctoo Put die indas hoa reachad 
e oiku dry's). T Stdfsct to crteW m i a - iS ntlnn . 


- Sn Sap 24: Tanwsi Wcrghfad Pdce 6022*2, hraaa Comp E» 1037 41. Basa return <4 afl mracas are 100 escape Austrora Afl Ordnary T CorracOon * CafcWaMd at 1SJXJ <S4T. • 

aid rud n ai g - JO* Austria Thsdart BSLSO, HEX Oat. MS On. SBFSSO. CAOM}. Euu Top- roc. ECO Om»t Tomo CompiMsais A A Tin DJ tad. nde* duoredcW dsyN Mghs 

Mnerats and BAX - s9 ijXtt JSE GcM - 2SS.7. JSE 26 MuaUs - M4.7. NVSE AM Com mo n - SO aid Standard and Poor's - 10. $9 start: dart Hie sctual day's logos snd la 

UaitreaL 4 Toronto, (d Oased. (ul UnovalaH*. 1 ftlS/DAX aRs>4«m relax. Sop 30 - 2002 30 -13.78 rfertao me day. (The aquas n bm rtaa Pv 


■•n?.l’s hi cr.d 5^ 



Pulse. 



"PULSE 

bc'cs arc! (€derc: funds wner 'A s impossir/-;- ts r*r z: yojr cet- 

0' -.viief! y="- C fMher w 5'S9w*!or-3. Ls! fVS3 w .v«sh? .r(» MM Kutrhison 

\z»: Shockers '.vi-.r-s yee !ski tft. ■■ Tel«f..om 

Keeping an eye out for the markets, fancy a free trial? call sscoa3ssss.£its.iioMcy.v 


Complete details below and send to: FT Cityline International, 
Number One Southwark Bridge, London SE1 9HL 

Name: 

Address: 


Postcode: Tel: 


M 






















































""^lALTTWES MONDAY OCTOBER 3 1994 * 




























































































































































































35 


5 < 


' lt i U ; 


> FINANCIAL TIMES MONDAY OCTOBER 3 1994 









































































































































































37 




, FiNAWC,ALT IM ES MONDAY OCTOBER 3 1994 


- V« 






CURRENCIES AND MONEY 


MONEY MARKET FUNDS 


POUND SPOT FGRyv, 


AGAiNST i HE- PQiJM~ 


orTdnv J^ 8 ^ On* month T1 wm months One year Bank of 

r , , — 2E2E taw Rate «PA Bata ft PA Rata *PA Eng to ds* 

torop* i 

£3!!n S3 603378 S(»74 904 ■ jj£ 2T§“® - If 9 17 - 21<a W 172BB tu 114P 

Denmark fOKfl 9.S97B +n OEfi »? " “i*®? 602180 503678 -05 502728 05 433429 03 1183 

SSv S SSSIS'S SS If 55 43501 "« 63452 02 32774 03 iS 

2sr e »S ^!25S:Sg ^ 0-8 514101 13 ia7 

ttaty flj 24ML12 Bffi " IBB elf? 3 ® 1-0096 1-0121 0-1 1jD1Z3 ~° A 10145 1012 

Lwmbourg <J5) 50MTO Bm'JS 34sasH - 2-0 «WJ7 -08 251922 -24 753 

Mheriondo m 27405 GooS SS ' ^ 5 S 0 S®^ 579 -« 502729 03 483429 03 1163 

Norway (NKr) 107045 jTooSe w .g -^g 2-73“ 0-3 2.7363 0 0 27009 1.4 1203 

Portugal £B) 249 4ffi ™n^ ^ ' 2” 1^1 10.8885 10.704 0.1 167076 -61 16708S 60 863 

Spa* S S SS'IIf ^S^ 982 251-213 254332 -73 - - 

Sweden SS VITBfll JT/SS S2 ■ ^ 202 - 963 WWW 203.193 -25 203383 -2Z 206288 -1.7 85.7 

sSmvfemt fflFrt iraw 125 ' 22 ’If!? 11-7737 H3151 -13 113826 -23 120761 -24 75.1 

wmzan™ torj 2-0309 294 - 323 23324 232B1 20284 15 23228 13 1362 24 122.B 

SORf I n iS 40X008 791 ‘ 004 13808 1P773 1P80I -03 1.2802 -61 12747 CL4 ”- 

Amaricn * 

^rntt* P**o) 1-5771 -03035 786 - 777 15812 157S9 

J***" JS I -3 * 8 “0-0128 448-488 13508 13429 . . . 

ttofc? mwpS 53M "°^T? 15 "1^ 2-1255 2.1137 2.1147 03 2.1127 03 21027 66 862 

i«a tNew ™*J 53826 -0315 589-882 63715 53S38 - . . 

rnrtHr/MUrtli EaSittfcf 770 "° ,B04 785 ' 778 1-58,7 1-5762 1 - 57 ®« 0-3 13756 64 13612 1.0 82.1 

HoSttanfl ffiS ^SS“ 298 ■ 223 WSQS 21293 2131 60 21324 -0 2 21508 -03 

Ho^ Kong <HK» I2.1ffi8 -0.0305 811 - 904 123215 121809 121819 64 121808 03 121879 0.0 

P*) 49^587 -61239 351 • 822 493Q20 48.4350 - - 

MtoU A S ’JZ ^ “ 7 - 2 ?f ’5630? 155310 155378 61 154.701 33 143356 4A 188.9 

■"“l™ 8 IMy 4,0438 -6012 417 - 458 4JJ539 43414 . . _ 

IaSS ZS’SS 2 ™ ' 217 2-6226 2-6147 2-62Z0 -13 23304 -13 23826 -13 

(P ^ ) 41- !®I - aoa41 878-816 413710 413565 

»«Arabte (SR) 531 S3 -6015 130 - 175 *w??k 53128 . . . 

Skigopors (SS) 23379 -00106 384-384 23480 ?iW fw . _ 

S Africa (Com.) (R) 53244 -60153 202-285 5 8201 - - - - 

S Africa (HnJ (R) 6.7338 .60622 189 - 517 6.7352 8^4 - - - - II 

South Korea (Won) 12S93S -237 884 - 028 126299 125833 - - . . 

(3 ll- 2388 ~° - 1297 487-305 413472 41.1399 - - - - - - 

ThaBand (BQ 393888 -0.0987 S52 - 060 393080 39.3650 . _ _ 

■*P tMda j? ‘NNw i aja tats* rim ert» an tar Oms dteknri ptaoss. Fnnum nto* are not dkwedy voted to tea 


DOLLAR SPOT FORWARD' 'AGAINST THE -DOLLAR 


(PKr) 

(FM) 

(FFr) 

(D) 

(DU 

m 


(R) 

(Wf) 


(SKi) 

(SFt) 

n 


Sop SO 

EureqM 
Austria 
B rt p fc m 
Denmark 
Rnland 
Frstte 
Quiimy 
Brooca 

Ireland 
Italy 

Luxemtjowd 
Motherlands 
Norway 
Portugal 
Spain 
Sweden 
Swttzattand 
UK 
EW 
SORf 
Americas 
Aigendna 

Brad (RQ 

Canada (C$) 

Mexico (NawPeso) 

USA (S) 

PacHcTMUcto But / Africa 
AuatraSa (AQ 

Hong Kong (HKQ 
tncSa Pet 

Japan (V) 

Malaysia (M$ 

(NTS) 

(Peso) 

Saudi Arabia (SR) 
Singapore (SS) 

S Africa (Com.) (Ft) 

S Africa (RnJ (R) 

South Korea (Won) 
Taiwan (T5) 

Thailand (Bfl 


Closing Change BkVbffbr 
mid-point on day 


Day's raid 
high - low 


One month Three m on ths One year JJ* Morgen 
Rate 9iPA Rue WRA Rate %PA Index 


109185 

«6035 

160-210 

10-8210 108860 

31.8200 

*0.135 

000-400 

31.0400 31.8040 

60881 

400175 

651 - 671 

6.0871 

6JJ675 

*3829 

-0.0095 

S7B - 679 

4.8850 

18375 

62943 

+0.018 

330 - 955 

02855 

32795 

16515 

+0.0054 

510 - 820 

1.5920 

1^465 

236600 

+1 

400 - 800 

236J300 235.800 

1^530 

-0.0049 

572 - 567 

1.5636 

13572 

1560.00 

+69 

650 - 050 

156050 1554 JQ 

31^200 

+0.135 

000-400 

31.8400 31.8040 

1.7373 

+a0056 

375 - 380 

1.7387 

1.7325 

67873 

+OO10O 

669 - 689 

6.7889 

67700 

156200 

+0*4 

100 - 300 

158L950 157.680 

126573 

+0.475 

500 - 650 

128.650 128.190 

7.4801 

-0.0005 

751 - 861 

7.5055 

7.454S 

12878 

+00051 

B73 - 383 

1J883 

1.2845 

15770 

-0004 

765 - 775 

15817 

1^762 

12323 

-0.0037 

320 - 325 

15360 

12320 

1.48624 

- 

- 

- 

- 

iaooi 

+0.0003 

000 - 001 

1.0001 

60097 

0.8540 

-0006 

530 - 550 

08550 

06510 

12414 

-0.0014 

411 - 416 

1^450 

1-341 1 

3.4005 

-0001 

080 - 030 

34030 

13960 

neat 



te - 


12514 

+00006 

510 - 517 

1J546 

13489 

7.7272 

- 

287 - 277 

7.7277 

7.7267 

312625 

- 

575 - 676 

31J876 31^575 

868700 

*0.485 

200 - 200 

BBXUOO 88.4000 

2.5642 

-00012 

637- 647 

2-5BBO 

2.5620 

MBOB 

+00034 

582 - 620 

1.0620 

1.6567 

261000 

+0.05 

500 - 500 

26.1500 25.9500 

67S10 

-OOOOT 

607 - 512 

3751 6 

3.7505 

1.4825 

-0003 

620 - 830 

14855 

1J620 

35665 

-0.0008 

650 - 680 

357B5 

3L5660 

42700 

+0.05 

600 - 800 

4.2950 

4^250 

738.700 

+02 

500 - 800 

708400 790000 

261500 

-60168 

000 - 000 

26.2000 26.1000 

242750 

- 

700 - BOO 

24.9830 24.9600 


109185 

OO 

109183 

OO 

108135 

07 

104.1 

3132 

on 

31 S3 

-0.1 

3129 

-02 

105.7 

6.0906 

-09 

6.1021 

-1.1 

8.1673 

-12 

105.1 

48629 

ao 

42619 

0.1 

42954 

-07 

605 

02963 

-04 

52967 

-02 

62018 

-at 

1062 

iJfilB 

-0.1 

15505 

02 

12437 

03 

106.6 

2319 

-1J 

237.475 

-12 

238275 

-12 

682 

15577 

02 

1.5565 

04 

12378 

12 

- 

15S425 

-03 

15722 

-32 

16132 

-3.4 

752 

31.92 

OO 

31.93 

-OI 

3129 

-02 

104.1 

1.7378 

ao 

1.7307 

02 

1.73 

04 

105.6 

6.7929 

-0.9 

6.8134 

-12 

62818 

-12 

96.1 

150845 

-L9 

18007 

-17 

1642 

-42 

85.0 

128.68 

-22 

12929 

-2.5 

132.120 

-22 

BOS 

7,4853 

-2L4 

72271 

-22 

7.7101 

-3.1 

802 

1J288S 

12 

12837 

1.3 

12696 

1.4 

108.1 

1^706 

0.3 

1.5756 

04 

1.5612 

12 

662 

12317 

0.6 

12308 

05 

122 « 

06 

= 

12415 

OO 

1.3409 

OI 

12469 

-04 

84.6 

3.4015 

-04 

3v4033 

-03 

3.4107 

-03 

- 

- 

- 

- 

- 

- 

- 

952 

1.3517 

-02 

12524 

-03 

12597 

-02 

862 

7.727 

OO 

7.7277 

ao 

7.7427 

-02 

_ 

31^1475 

-02 

312925 

-09 

. 

- 

- 

98.74 

2.8 

98.19 

32 

95205 

3.4 

1492 

2.555 

42 

05437 

32 

22172 

-2.1 

- 

1.6615 

-0.7 

1.6634 

-07 

12887 

-05 

- 

3.7523 

-04 

3.7584 

-06 

3.775 

-OB 

_ 

1.4B12 

1.1 

12793 

09 

1A7ZS 

07 

- 

3^82 

-52 

32103 

-42 

3.687 

-3.4 

- 

43037 

-05 

42625 

-07 

- 

- 

- 


823.7 -3.1 


CROSS RATES AND DERIVATIVES 


EXCHANGE 


801.7 -43 8053 -33 

28.17 -69 2831 -0.9 - - 

2S347S -25 25.175 -33 25.655 -27 

1SOR rate tor Sop 20. Sofotltr apraoda in mo Ootar Spot note rim on* ttto Ian D«m dodmw pteca*. Forwd rate* in nor dkaaly quoted u m* mw».ot 
tad tee knplad by him interest irn. UK. botend & ECU are quoted ki US eunanoy. JJ>. Morgan narM ridtoaa Sop n. ~ 


FIXED INTEREST RATES 


Sap 30 


BFr 

DKr 

fifir 

DM 

K 

L 

FI 

NKr 

Ea 

Pta 

SKr 

SFr 

£ 

CS 

% 

Y 

Ecu 

Origtum 

(BFr) 

in 

1927 

1820 

4260 

2211 

4888 

5.444 

2128 

4952 

402.7 

23.43 

4033 

1987 

4202 

3.133 

3100 

2941 

finnan It 

©Ki) 

S044 

ID 

8.700 

2248 

1254 

2583 

2255 

11.18 

2599 

2112 

1229 

2.115 

1942 

2204 

1.643 

162.6 

1933 

Ranee 

(FFt) 

6028 

11.46 

10 

2230 

1212 

2946 

T OOfl 

1082 

298.7 

2429 

14.12 

2.431 

1.198 

2933 

1989 

1889 

1932 

Gormany 

(Dffl 

anag 

3224 

0413 

1 

0414 

1006 

1.120 

4274 

1020 

8297 

4.820 

n »ran 

0409 

0965 

0046 

83.78 

nn»» 

Ireland 

ffE) 

49.73 

9.483 


2.417 

1 

2431 

2.708 

1027 

24&4 

2003 

1195 

2906 

0988 

2.090 

1958 

1542 

1264 

Mr 

(U 

2246 

0390 

0339 

OOBS 

0041 

IOO 

am 

0435 

1014 

8240 

0479 

0.063 

0041 

0986 

0964 

6941 

0052 

Nridtartanda 

0=6 

1827 

3203 

3247 

nno? 

0289 

8972 

i 

3205 

9122 

7398 

4303 

0741 

0366 

0772 

0978 

5693 

0487 

Norway 

(NKf) 

4724 

8269 

7203 

2288 

0246 

9MB 

2201 

ID 

233.1 

1804 

1192 

1997 

0935 

1977 

1474 

1459 

1.195 

Portagal 

(Ea) 

2018 

3243 

0348 

0281 

0406 

9804 

1299 

4290 

IDO 

8128 

4727 

0814 

0401 

0948 

0933 

6295 

0913 

Spain 

(Pic) 

2423 

4.73S 

4.119 

1207 

0499 

1214 

1252 

5279 

123.0 

in. 

5916 

1901 

0493 

1943 

0778 

7696 

0631 

8wedan 

<SKi) 

4229 

0140 

7261 

2.075 

0868 

2087 

2234 

9278 

2112 

1719 

10 

1.722 

0948 

1.7S4 

1938 

1329 

1935 

*>L rl 

UWILUIIMWl 

(SFr) 

24.79 

4.728 

4.113 

1205 

0499 

1212 

1250 

5271 

1229 

BOSS 

c nna 

1 

0493 

1.042 

0777 

7095 

0630 

UK 

B 

5033 

0507 

8249 

2.448 

1212 

3460 

2.740 

107D 

3404 

202.7 

11.79 

2.030 

1 

2.115 

1977 

1500 

1279 

Canada 

fCt) 

2320 

4238 

3.948 

1.167 

0478 

1183 

1296 

5259 

1179 

95l84 

5974 

0900 

0473 

1 

0746 

73.78 

0905 

US 

M 

3122 

6286 

6294 

1261 

0242 

I860 

1.737 

6.78S 

158.1 

1289 

7976 

1287 

0634 

1941 

1 

9092 

0911 

Japan 

ro 

3226 

0152 

5252 

1208 

0649 

1677 

1.756 

6.859 

1609 

120-9 

7958 

1901 

0941 

1956 

1911 

IOO 

0820 

Ecu 


3825 

7204 

«t can 

1212 

0791 

1923 

2.1*2 

8268 

1952 

1669 

8218 

1987 

0782 

1954 

1233 

1229 

1 


Untah Kronor. French Ftenc. Hnm*gten Kronor, and Bwririi Kroner par 10; BriglBi Bwxi. Yon, Eacudo, Urn and Pooria por 100. 


(»a^ DM 125300 par DM 



Opan 

Sett price 

Change 

TO 

Low 

EsLvd 

Open tot 

Dae 

06460 

09461 

•00018 

06470 

08428 

26251 

71948 

Mar 

06474 

06459 

-09017 

09474 

09440 

534 

3954 

Jun 

“ 

09469 

-00017 

- 

- 

in 

574 

■ rente 

5 FKAHC IUIWH QMM) SFT 12SJ00D per SFr 



Dec 

07802 

07783 

-09023 

07809 

0.7755 

11983 

34929 

Mar 

• 

07810 

-00024 

07825 

07794 

26 

067 

Jun 

" 

07840 

-00023 

- 

0.7840 

10 

87 

■ JAM! 

HM W PUTUms 0MNQ Yen 129 par Yen in 




Open 

Sett price 

Change 

High 

Low 

EaLvol 

Open tot 

Dec 

19204 

1.0148 

-00066 

19227 

19120 

13934 

44,745 

Mar 

19308 

1.0230 

-00065 

19308 

19210 

82 

2.729 

Jun 

- 

19329 

-00054 

- 

- 

5 

447 


UK INTEREST RATES 


LONDON MONEY RATES 

Sap 30 Over- 7 days 

night notice 


One 


Three 


Six 


One 

y«* 


totabanfc Staritog 

6-4Sb 

5*4 - 6 

5A-5A 

513 - 511 

aft - 6ft 

rh-rh 

Stalling COa 

- 

- 

5B-5& 

6B-5B 

Bft-ft 

lit -lit 

-naasroy Blla 

- 

- 

5A-SA 

Sft-ft 

- 

- 

BankBOs 

. 

- 

5&-B& 

5%-sa 

ft-ft 

- 

Local authority dope. 

4U-4H 

5A-6A 

BA-B& 

5U-5H 

Sft-Bft 

7ft ■ 7ft 

Discount Marioat daps 

5^-44, 

ft -5 

- 

- 

- 

- 

UK ctoartng bank base tenting rtea 5* par oant from September 12, 1994 




Up tt 1 

1-3 

3-6 

6-9 

9-12 



month 

month 

months 

months 

months 


MONEY RATES 

Septanfber 30 Over 

right 

One 

month 

Three 

fifths 

Six 

tntos 

One 

year 

Lorab. 

Inter. 

Dta. 

rate 

Repo 

rata 

Baigknn 

4H 

•H 

5* 

58 

34 

7.40 

490 

_ 

week ago 

4Di 


5% 

5ft 

64 

7.40 

490 

- 

France 

Si 

34 

5ft 

5ft 

64 

5 90 

— 

075 

week ago 

5K 

54 

5ft 

58 

64 

890 

- 

6.75 

Qennany 

4.15 

495 

5.18 

593 

5.63 

690 

490 

495 

week ago 

492 

495 

696 

593 

5.63 

690 

490 

49S 

Ireland 

4% 

6% 

6* 

64 

7ft 

_ 

- 

695 

week age 

Ai 

5» 

64 

64 

7ft 

- 

- 

69S 

tody 

Bft 

8U> 

34 

9 

08 

- 

790 

«an 

weak ago 

84 

8M 

34 

9ft 

104 

- 

790 

895 

Netherlands 

494 

590 

022 

5.35 

075 

_ 

895 

_ 

week ago 

4.64 

590 

5.12 

595 

5.74 

_ 

595 

_ 

Switzerland 

3% 

u 

4M 

4ft 

4ft 

6.825 

390 

- 

weak ago 

3% 

38 

«4 

4ft 

48 

8.825 

390 

- 

US 

V* 

48 

54 

58 

64 

- 

490 

- 

weak ago 

49 

4% 

54 

5ft 

34 

- 

490 

- 

Japan 

2M> 

2% 

2% 

24 

2ft 

- 

1.75 

- 

weak ago 

2H 

2*4 

2V. 

24 

2ft 

- 

1.78 

- 

■ SUBOR FT London 








Interbank fixing 

- 

5 

5ft 

5ft 

6ft 

- 

- 

- 

weak ago 

- 

5 

Sit 

68 

64 

- 

- 

- 

US DoBar COa 

- 

492 

592 

598 

6-OS 

- 

- 

- 

weak ago 

- 

492 

592 

693 

691 

- 

- 

- 

SDR Linked Da 

- 

3% 

34 

■ 3ft 

4 

- 

- 

- 

weak ago 

- 

3% 

34 

3ft 

4 

- 

- 

- 


ECU LMted Do add rate*: 1 mot Slfc 3 rtriw 61k 6 nrin SH; 1 yeec W. S U80R tatertank flring 
men wo offorod rota* fer *10m tented to Ihs merttel by feu- rataronea baniri M 11am aach workfeig 
day. The barite m Barian Thai Bank o( Tokyo. Borcteys and National Wa ab i Onw ar. 

MU ram ora rim for the dcmoaUa Money Rates. US S CO* and SDH linked Dapeaha (Do). 

EURO CURRENCY INTEREST RATES 

Sep 30 Short 7 days One Three Six 


7 days 
notice 


One 

year 


Cana of Tax dap. {8106000) I’a 

Cwta of Dm dm. indar 8100000 la l^apc. 

Aua. tender ite* of (SioowX 54710pc. ECQO 


4 3% 3% 3^2 

wUtkaMi tor caria Vp& 
rataSdg. Erpon Hnanc*. Mrim m day Sap 30. 


1BD4. tend trite Ite ptelod Oet 20, 1BB4 to Nov 22 1894, 8chamaa I > U 7JHpc. Rafaranca naa for 
d Sap 1, 1964 to Sap 30. 1B0«, fidtamaa IVA V2735po. FlnaneaHoiaaBaaa Rata flpc from Oet 


■ STSWtMKI PUTUW PAQ Efi2JOO par E 


1.1694 


BANK OP ENGLAND TREASURY BILL TENDER 


Dec 

1.5770 

19746 

-00028 

19790 

19706 

6964 

32974 

Mar 

19740 

19720 

-09026 

19700 

19600 

8 

271 

Jun 

- . 

19688 

-00022 

19700 

19630 - 

1 ' 

8 


■ »WAD«1JWAM«F»0PTI09» £31^50 (centa par pound) 



Sap so 

Sap 23 


Sep 30 

S re 23 

Bill X rtfar 

ESOCkn 

2500m 

Dtp accqXad rata 

54851% 

59151% 

Tow of appQcrikm 

21740m 

El 482m 

Am. rate of ddcouX 

44710ft 

59070% 

Total dtocatod 

ESODm 

SEOOm 

ftoaragaitoM 

49487ft 

59837% 

Mb. am i>M Ud 

E9B930 

CTfiBa 

Offer at next tandw 

£5D0m 

£500ni 

AMmant ri mto. tonal 

100ft 

08ft 

Mo. accept Ud 182 days 

• 

- 


Belgian Fran: 
Danish Krona 
D-Mark 
Dutch Gulder 
French Franc 
Portuguen Esc. 
Spanish Peseta 
Staring 
Sarin Franc 
Can. Dolar 
US Doubt 
I hdanUa 
Yen 

Aston SSIng 
Short term rataa a 



-AH 

AH 

-AH 

AH 

-AH 

ft 

-5% 

ft 

-ft 

ft 

-512 

ft 

-5* 

ft 

-6% 

5- 

ft 

AH 

-AH 

AH 

-AH 

ft 

-ft 

5 it 

-AH 

ft 

-AH 

5- 

A* 

ft 

-5% 

ft 

-ft 

ft 

-ft 

ft 

-ft 

5H 

-ft 

ft 

-ft 

ft 

-lHa 

OH 

-ft 

10% 

-10% 

ih 

- 7 St 

lit 

-7% 

Ht 

-ft 

8- 

7% 


-Mi 

5*4 

- 5*a 

5B 

-5li 

5% 

-5H 

AH 

-4 

4 - 

ft 

A - 

3^ 

4% 

1 - 4 

ft 

- ft 

5- 

AH 

AH 

-AH 

5A 

-ft 

AH 

-AH 

ft 

- A* 

ft 

-AH 

5*2 

-ft 

8 - 

7lj 

ft 

■ ft 

ft 

- 

8% 

-8% 

2*1 

-2d 

2A 

~2& 

2& 

-2^ 

2% 

-2A 

*1 

-h 

2H 

-zh 

ft 

- ft 

3H 

•34 


A 
8» 

2h - 2i 

4-3^ 

teal tor the US Dri* and Yon. OVtaiK taro daya" node*. 


8la-B* 
7^-7% 
_ 5%.SJ| 
■At !tf,-5% 
-S\ 8 d - 8 & 

- 10 *| 10 * - 10*2 
-8*9 9*t - 9 

7*2-7* 
4*-43, 

_ ea-e* 

-5*9 6*4 - 8*9 

- as m - an 

2»-Z*b 
« d-4 i. 


-5ft 
- 7*9 
-54 


-BA 

-44 

-5H 


Strike 

Price 

Oct 

- CALLS - 
Nov 

Dec 

Oct 

— PUTS — 
Nov 

Dec 

1900 

1ST 

795 

794 

• 

095 


1928 

491 

598 

546 

PQ4 

n.M 

073 

1980 

292 

3.12 

3.71 

018 

074 

193 

1976 

096 

196 

295 

095 

1.72 

298 

1900 

020 

074 

197 

295 

323 

393 

1928 

- 

026 

073 

495 

624 

5.78 


■ THHU MOTTH KUWOPOUAR (IMM) tint polnta of 100% 


Prerioua d^a wl_ CMa 4J03 Pida 124CB . Pm. d^a opan Me- Cafli 461372 Pu» 362441 


FT auce to WORLD CURHB iCi E B 

The FT Guide to World Cunenctae 
table can be found on the Enlarging 
Mari a* page ti today's ocWon. 


■ Pound ta New York 

Sap 30 

— Cteaa — 

-Pratt don 

£apot 

19782 

15780 

1 ndh 

19757 

19775 

3 mth 

19747 

19765 

Ijr 

19002 

19617 



Open 

Sett price 

Change 

Hgh 

LOW 

Eat vol 

Open tot 

Dec 

94.08 

84.05 

-003 

94.08 

9494 

183.182 

522945 

Mar 

8397 

83.67 

-001 

83.70 

8394 

153,743 

421.688 

Jun 

9327 

8327 

•091 

8390 

8324 

92954 

295207 


QMM) Sira par 100% 


UK GILTS PRICES 


«rk% Anri 
Moln Prteac 4/- Em 


lari ny 

ad B« 


Vk% tort 
Nam Wool *h Em 


tent bat Of 

da at fea 


tm% Asm 

PitreC *f- Em 


Lait otgr 

at NM 


Dec 9462 84.63 

9493 

94.60 

3.010 

19,464 

Mar - 8420 

9422 

94. IB 

713 

9237 

Jun - 8393 -091 

Af Opan Haaat Op*, ora tor provknro (toy 

93.33 

9391 

26 

2954 


lriaflpcnS«S 

13x1965 


Erih 3pc Cai 1996-65 — 980x1 

lWriKl9B5 1S28 

he»12*d*J9B» — >08 

Hoc 1998 IQB 

lSpc1998«. HIM 

Bad ISltlK 1998 

OonronJonlOpcI’ 

TlBH Cw Tpc 1B67t( — 

Triaa lH*pq 19971ft— . 

Each ItPjpe 1937 

TrwoflVpcT9B7« 

EKJl 15OC1B07 

9ta1999 

TrtB.7Upc1B9Bft. 

IYrsI&VK 19B5-68#_ 94Hd 

1 ape 1996-1 119A 

TreealS’jecWtt 1220 

BoniZpc 1069 1 1_0> 

Traa0>dKl9O8» «BB 


R*a to RRaao Tiara 

Bcbl2tfPCiaS9 

hma 10>2PC 1999 

Tnn«c iflflOtt 

CnMntan lO’vpc 199B_ 

Tran Rtfl Rate 1999 

Hoc 2000a 

Tmaiapc2D0O- 
1 0pe 7001 . 


1300 My17 Mr17 
2350 JtCSJySS 
214 Mn 
2500 A21 Jy21 
840 i^iswns 
770 JB22Jy2Z 
1.150 IlfSIM 
BOO UylSNrlS 
2400 Uy15Nri5 
1899 AdM 
1JB0 Ja22Jr22 
2700 FKT1 AUZ1 
2550 MriSei 
830 narasr 

2550 Jai9 JyiS 
2150 leaosaao 
1,200 Myl ttrl 
970 Uy22(*r22 
955 MriOSaia 
2900 MySOtofiO 
1^00 Ja19Jy13 


torivihfc 1 — . 

11 A 1345 Baneriu nO^pcttO*— 

2O012M Tmaa flkpc 200*Tt 

Slype 2005 


2281271 

1481254 


un Ctm. 9 hue 2005 __ 
tin 1305 Trial 2 1»C 2003-6. 

2781309 7Vfx2M8tt 

241268 Bpc2002-8ft- 



7pc2001 
7PC2001 A 
9Vpc2002. 

2*2003# 

lOpeaxn. 

TraaaiUjpe 2001-4 — 


241340 Tnm 1121x2005-7 — 

308 - DwB>»c2007# 

1K32S W*ape 2004-8 

«j]£l Tnma flpc 2008# 

2081289 
1201273 
348 - 

2081331 

1581308 OwnmlUtt 

2481300 Trees 8x2009 

124 12» Tan 8 lApcZOiO 

M1M7 CBw9pebi2011# — 

Irena 3x2012# 

Trees S'jpc 2000-12(3- 

Traas 5x2013)3 

756x3012-15(3 

2050 U2SSe26 ZJ81264 

i^uyiBiens imisw anw7 — 
5800 FtlDAUIO 47 - 

1M ,242 

20 - 
2271344 
781296 ttrftei 
2071280 Cttxria4x 

308 


71H 

as 

543 JH4JyM 

103B* 

a* 

3,412 Ap250c25 

m 

as 

0500 UyOBNiSa 

«m 

. 

2jOOO J*7 D07 

104JU 

as 

49*2 ApISOCIfl 

120A 

04 

220D Mr21 W21 

92A 

as 

1300 IMM 

93B>d 

os 

2900 ApS0c5 

114H 

03 

3,150 Js2ZJy22 

B7H 

as 

7,157 JtoSJylB 

12BH 

04 

1^50 M2BS82B 

lot Hu 

os 

5221 ApISOtrlS 


H3B 

79A 

10231 

72B 

044 

Bid 

1011« 

128B 


1798 Uy22S*22 
2500 BUJsSaOe 
5858 Ur3Ee3 
2171 AH4 Jy14 
4,406 FbZSAuSG 
4850 M)8IM 


_ 45d 08 

-«pU»3lwci3 «*« 05 

C0w!>2X'91A2 5BU -2 

21-7 _ Treat 3x "66 Alt. 33W -18 

- 29dd 2.1 

_ 29 21 


45 

2J 1261 Cararii2>2X- 

1581200 Treas. 2hfK- 


2100 *255825 

4J30 - 

2273 J»l2JyT2 

2101 FrttaB 
1800 *108910 
5850 *270827 

800 JMBJJSB 
7,150 Fa25«u3 
1800 Ja12Ds12 


859 FHAtfl 
1800 Jai Dai 
110 AplOd 
SB Ap50c5 
275 5JMpJy0c 
473 AplOCI 


781274 

1981248 

1244490 

12812* 
1441295 
28 - 
181334 
1581293 
981339 
2281301 
581343 


1981338 
194 - 
1081245 
3081701 
451330 
228 - 
2081332 
187 1982 
55 1260 


2X*9B. 


199% 0.1 1800 *180016 1081313 

' 02 800 Ap270cZ7 208 - 

: ium> 

07 1,300 14)20 *20 1381317 

“* 148 - 

138 1314 
1341816 
18.713TB 
11.71320 
2081321 
081322 
108 1323 
158 - 


4 5 sjjc l 9Btt — 035.6) 107M 

2‘SX'OI (723) 195& 08 1800 *245(24 

2*WCUS (708) 1«ll2 07 1800 Uy20Nv2J 

47riX'04(( — (mfllOBiW 08 18OOA021OCZT 

2XDB Wft 08 1880 JaiOJylS 

2 1 dX , 00 [788] 152d 18 IJBD M|20Nr20 

2>spe11 (7441 1577, 18 2100 Fa23Au23 

Jlaxia (B92) 129*1 12 2300 FBISAuig 

2>spClB 8R4 137*i 12 2700 Ja29Jy2S 

2I2X-20 OSXIISTllri 12 2700 AplOOclO 

(97.7) 106% 18 2100 JU7Jy17 

4*ri>c , 30tt — (136.1) 108% 14 1200 JBIOJyZO — 

(to Rgurea In pa ra nf he a ea show RPI naae far Indexing (It 8 
montha prim to tanua) and haw bean adjutoad to reflect rabmng 
of RPI to 100 In Janteiy 1687, Comereton factor 8845. HPI far 
January 1094: 1412 and for August 1994: 144.7. 


Other Fixed Interest 

AHeaaDw11%2010 — 

Alta DrnWrx 2009— 

Blen 11*2X2012 

Ward Cap 8%x 10 

9x 0101908 

13XW-2- 


BANK RETURN 


Hfdnt Otax 15x2011- 


2741230 

3541382 

2541243 

181334 

181230 

2541315 


Unreal 3%x kret. 

ICC 3x *20 AIL —— 

ltoBriBdaril%x2007. 

ItaLWb.SR'B 1 — 

HWkteAteAte3%xaK1- 

4%XL2Q24 

IJU IIB SUd 1B%K 2008 


11W. 

14 

50 J*4 Jj4 

1.12 - 

IDS 

14 

100 UOiSaM 

383 - 

115 

-4 

45 MfiSlkriS 

4*531837 

9414 

as 

303 AplOCI 

-146S 

m 

ai 

72S JaSOJyaO 

— — 

107% 

12 

315 AplOCI 

8*831*29 

135% 

u 

40 Uf31)M0 

27.10 - 

126 

-4 

40 AplSaS 

3*833148 

3612 

„ 

5 IJaApJOOc 

6*53 - 

32 



ta UaJaSri)* 

8*83 - 

113 

-4 

a Ap2s Oczs 

3*833275 

KH 

-1.1 

25 ttl Sal 

8*533361 

ism* 

-19 

80 jaaojyao 

1*533485 

124^ 

-12 

SO - 

7*53 - 

ISSla 

04 

B) uiGai 

833 - 


BANKING DEPARTMENT 

Wednesday 
September 28. 1994 

tncreon or 

decrease for week 

Liabilities 

E 

£ 

Capital 

14953900 


Public dspoato 

1,123.781.667- 

+41,106905 

■Bankas deposits 

1.643.938923 

+181,438/03 

Reearvo and other accounts 

3.106965.711 


Arid* 

6,068.138.801 

+123948903 

Government eocurttkB 

1200998917 

-80.71590 

Advance and other aceouita 

3.197936960 

-164.108918 

Premise, equipment and other secs 

1978.434962 

+356,010,542 


5,712985 

+763941 

Coin 

157297 

-962 

ISSUE DEPARTMENT 

8988,138901 

+123948903 

UoMUm 

Notes to drcutetion 

18,184287.935 

+29236,159 

Notes to Banking Department 

5.712,085 

+783941 

Aaaata 

18,190900.000 

+30900900 

Other Government aecurittea 

15974939281 

+470,785.131 

Other Securities 

2916,180709 

-449.765,131 


18.190.000,000 +30806000 


LONDON RECENT ISSUES: EQUITIES 


Tmf nock, n Tto*a» to iKHMaridoma on -ppacriton. E Awrimt breto. xd E* dhktond Ctoring mkHxtoaa are riioan In 

STOCK INDICES iflM- 

Sop 30 Sap29Sap28Sep27Sgi26 Mgll I m HtX laa 


pound* WaaMy perantaga ehangea are oriouiated on a MW 10 Friday baria. 


Sap 30 Sx 29 Sap M Sap 27 Sap 20 


-1094- 
Mph Ice 


Ugh La* 


FT-SE too 
FT-SE Md 250 
FT-SE Htf 250 A ITa 
FT-SE-A 3S0 
FT-SE 
FT-SE 
FT-SE-A 


ITb 


30258 29924 30387 30084 20094 35203 28764 SS253 9»fl 

34944 3504,0 yraB 35174 3S214 41524 3383.4 *1524 1 378 4 

34B9.1B 35014 35318 35177 3S24 41807 3382.4 <M07 1»B8 

15214 (5082 75367 75784 15)34 13763 14514 17763 f®*5 

181440 1013.13 182644 1827.42 1M4.12 2091BB 
178544 1791.11 179747 180080 180683 2D99J2 178248 2000.72 138379 
151087 150609 15)9.78 150740 150522 1788.11 144545 1708.11 5182 


BASE LENDING RATES 


FT-SE EtKbPack 100 131883133040134601134034133845168619 1303481540.19 

FT-SE Bnkaek 200 13S9L89 1375.17 130674 138140 138088 1887.19 134285 1687.10 

FT OnBran 23561 23213 23554 23404 2331/1 27118 22554 27134 

FT Sort SkwHa 9044 0630 96*0 9610 9627 10744 8944 12780 

FT FM Uareat 10784 10749 10742 107.17 10740 13347 10640 13347 

FT Grid tarn 232448 2332^8 233842 233780 232S41 23674 T7B242 238740 

PredacaaorBridtava 291.7 2023 2838 2864 287.7 2818 1354 7344 


90646 

S3842 

464 
4618 
5053 

82210 

465 


Adam & Company ...» S.75 

ASod Trust Bor* -445 

flffl Bank 

eHwvyAnetxcher. — 573 

ere* of Berate 678 

Bcnoo WMd^ Vtaeaya- 675 

BankofCypree. i7s 

Bankoftoatond -S.75 

Sank of fade -S.7S 

BenkofSceWnd -5.75 

Qacfqm Barh 575 

BrttBkafMUEaat.— 545 

•BT0W5HptoyACoUd573 
a-BtekNedartontJ — S-TS 

CNtorihNA -5.7S 

OydeedrieEtork -5.75 

The CMpamWa Bank. 67S 

CgublOt.,. - 675 

OedlLyennala.... 545 

Cyprus Popular Bark -675 


Duncan La«te 5.75 

enter Bank Umtod- 675 

financial & Gen Bari: -&5 

■Rohan Ftemtog* Co. ST5 

Orabenk 675 

•OrimeoB Mahon — — 5,75 
HaUb Bank AB Zurich ■ 675 

•HaratwaBe* 675 

t-torksbi* & Gen im 8k. 675 

•M Samuel..- 675 

C. Haora £ Co 675 

Hongkong iStwnshri. 625 

jiriroi Hodge Bank.— 675 
eiacprid Joseph & Sans 675 

UmIs Bank— — 675 

Medial Bank Ud. — 67S 
MWand Bank.-.....— 675 
• Mouri BanMng~— — 6 

NriW oM nl nri ri - 67S 

reRaaBothore — 675 


•Rartughe Guarantee 
Cnrporaban United Isno 
longer mAhorfaedn 
a broking insfitudcxL 6 
Ftoyri Bk of Scotland - 675 
#6mtti & VWmsn Sacs . 675 

■reS 675 

•UntodBkafttJimK— 675 
Urity That Bank Ho ... 675 

Waetsm Trust 575 

WWaaicqr LaUaw 675 
Yorkshire Bank 678 

• Member* Of London 
investment Banking 
AraoriaOon 
* tiatnMriaobn 


(j^VRTlBTF^B For all yom Invcsniiciti and occBpedocaJ 
■ttUSUH rcrjalremeai* ia Sonllt Africa « f^er 

pyj 


Td; 071 433 7050 1 
Fix: 071 499 6279 J 


Issue Amt 
price paid 

P up 

Mto. 

«P 

ffmj 

1954 

hfgh Low Stock 

Ctooa 

price 

P 

*/- 

Net 

dv. 

Oh. Gre 
cov. ytd 

WE 

net 

5125 

FP. 

182 

130 

118 Oompal 

119 


WN4.Q 

2.1 

42 

119 

- 

FP. 

190 

ft 

1 Conti Foods Wits 

1^1 


- 

- 

- 

- 

- 

FP. 

28.4 

m 

81 Emritfng f ma C 

66 

*4 

- 

- 

- 

“ 

63 

FP. 

12 A 

68 

K Ermamfat 

68 


RN0.71 

69 

19 

89 

112 

FP. 

21.4 

120 

118 Independent Ports 

120 


LN49 

2.1 

42 

149 

180 

FP. 

179 

195 

180 Mackta bU 

183 


RN69 

22 

41 

79 

BO 

FP. 

241 

SS 

76 Rytand 

as 


LN39 

1.7 

5.1 

149 

_ 

FP. 

395 

44 

27 Sutar Mto 994)4 

33 


- 

- 

- 

- 

- 

FP. 

1147 

379 

371 Templeton E New 

371 

-1 

- 

- 

- 

“ 

_ 

FP. 

12.4 

212 

192 Do. WrtB. 2004 

an 

-2 

- 

- 

“ 

“ 

- 

FP. 

208 2 

360 

380 Wrexham Water 

380 


- 

- 

- 

- 

- 

FP. 

317 

330 

330 Do. NV 

330 


- 

- 

- 

- 


FT GOLD MINES INDEX 



ft dig 
Sa atoce 

30 31/I2IB3 

Sat HUCfti 
21 Su 

ft af 
sate 

Want 

ftta» Af 
ytofdft 

52MBk 

U 0 i liar 

Bold Hoes todroi (36) 

232(26 +41 

233228 57.18 

10099 

196 

238790167393 

■ ftoBknUhflCM 

Africa (IB) 

356082 +89 

358230 1828 

3112 

393 

amw 229598 

Auatabita (B) 

292030 +00 

288835 794 

1172 

128 

301399 188399 

Kgrifi AiMftoa (ta 

190793 +03 

188294 3096 

5416 

072 

203065 1459.45 


MONTHLY AVERAGES OF STOCK INDICES 


CooyritfiL The nrandri Ttrax LMted 1894. 
figures to bracMi ahgw niiter of coropanm. Bari* US Debn. Base VriutK 100040 31/12A2 
ftadac aaa or Arid More todac Sap. 30: 291.7; wrir enanroe *41 prints Yero ag re 1BS4. 
Cmteifftir* aw** anore* Datrilan; Morflmda Cola te naiiriaii al Omair and ctranmt. 



September 

August 

July 

June 

FT-SE Actuaries Indian 
100 Index 

30983 

31705 

3036.6 

29805 

Md 250 

3643.9 

3736.8 

3537.1 

3508.8 

350 Share 

1564^ 

1604.5 

1529.6 

1505.0 

Nen-Flnaneial 

168038 

1726.77 

1B42£8 

1B18.42 

Financial Group 

2181.71 

219758 

2129.92 

2111.15 

Aft-Share 

1S53S7 

1591.47 

1517.70 

1497.44 


t 


REUTERS IOOO 

24 how* a day - only $100 a month! 

UVanHAHCMLMMDHBCTTOYQUFIteC 



Eurotrack 100 

Eurotrack 200 

FT-A World Index 

1358.50 

144XL56 

177P9 

1379.19 

1430^0 

178.75 

1347.62 

1385.41 

183.94 

1383.71 

1380X56 

173.49 

FT Irefices 

Govemnwit Securities 
Fixed Interest 

Ordinary 

Gold Mines 

SEAQ BargaIns{5.00pnD 

9068 

107.72 

2404.6 

223008 

2SJB0& 

91.86 

110.02 

2485P 

1933.17 

29/102 

92-87 

110.84 

23707 

1931.55 

23P77 

92.08 

10928 

2343-3 

19444)7 

23.618 


Mghest Ctou Sapt 

Lowest Ciosa Sept 

FT-SE 100 

FT-SE Mid 250 

FT-SE 350 

FT-A Art Share 

Ordinary 

3241 £ (5th) 
3794.4 (1st) 
1634.1 gm 
162Q-7B (5th) 
2512-2 (5tty 


2992J (29th) 

3494.8 {30th) 

1509.2 (29th) 

1500XH (29th) 

2323 ^ (29th) 

! 


Money Market 
Trust Funds 


Coutti&Co 

*UflamnUarite*iS!«0E 


CAF Hoonr Mammaatf Co IM 

XPnaunrreaa. iteZMoD ma zjo 
M arii Dtetea Fori— I A te 
Oaptedl Our n nriten I U5 
Droatei dm C2 rteten I sjb 



071- 

4 13 391 

337 4» 

ioo un 

I un zt£ SM 


TbeH»Chnrifieitopo«d Account 
2 Fora 5371*. Lononn 071-588 IBIS 

I 4*0 -I «Mi3-WII 


0732770114 

-I *9* 1 5-nan PaacnitewTitPlc- Ou i o n hM SOOAcc 
-I 5JMI1-UB aejjtfna.ui«te«»f U340U 001-0328484 

-I s.ial»-ute citum»em wjw u» ?»»!! 

n 0 , 000 . i Vk I ax ants bjxj Taady 

—> tarn. row Rre tonal ozs s.ianl 7.x I 


Cant Bd. of Hn. of Cbureb of EDriantt 
2 fata Strati LandDaeCTr MO 07T-4S81B1B 

Isom -I sjMH-ru 


Money Market 
Bank Accounts 


ABM That Bank Ud 

,EC«an 

RWUCCUW1W 

TREWKB2801.1 

TOWtettZBOlU I 694 4J3 i LM I Taady 

0M W . BMW I .) | V» 109 I usl M) 

an 
Ml 



0b 


smm ua. NnpHiDM Ptasa. 
lto*msmi.Ki70as 

IOO 079 140 

440 340 4W 

4J0 un IM o 

940 3.78 948 « 

120 390 SJO OO 


tsarne* Ua»f mw f«*« re mat 


Anat nnarw Ctmquc Acc 

an 2 do «i2 


EStUMOandtaM 

rwnm ^ c jn an 
EIO.OOU 10 d*.0W — 

E5400VQUNB 

ria 


US 439 

UO 413 
5.13 US 
450 398 


&« 

U1 

m 


393333 

otr 

ter 

Or 

00 



as* 

400 

u* 

US 

*JB 

SJ5 

0 0* 

423 

1 U 

US 

399 

ua 

400 

UO 

*07 

UO 

UO 

*07 

BAT 

5.15 

Mr 


rnmn-. — I 3JU 

E2s5» 101*8489 _ 1*75 190 

F10400 to C244B9 430 341 

iMOOBGasea I *r> 110 

JuBn Hodge Bank Ltd 
* MWnr Pteca terilBI tat 
a«iFMiMnwx«te| Uo *jaa 

tte nte kaiaaite aas «ri 

IHBFMItaDNadMl 949 449 I 

HomberefydoFteanee Group 

9BBaeyMqF.HK«.BBBiam> . 02M7900WJ 

CSOJJOO. I STS 441 I 548< Ob 


4M 

431 

432 


1WW 

B41 


190 

173 

IX 

390 

293 

390 

175 

£91 

1C 

*00 

UO 

407 

423 

lit 

4J3 

473 

390 

IH 


01400-4*48048 

ccira HTY.'lffllft'Wf 

ciaxp-rauweo — 


AriMttwt UOtteB 5 Co Ud 
so ere toed, urate kit aw. 


uetoHBi^H 

£10400-134499 
£25400 - £49406 

t3OLNO0^M 


Bank of Ireiaad HHi tateimt Chequa Acc 

J BriBWriiSLSteriltieLI ta 07J3 57BS1I1 

CIOJOO ... 1*000 U00| 4JJ80I X 

£2400^9409 1 1QO 2250 I 343* I on 

Barit if Scodand 

W1treadPWteaGI.C02£2Bf 071-40154*6 

■MaUMB. UO 242 I 3X| Ml 

miOOO-E24949B 1*40 200 407 Utl 

<330400. I 340 *.12 I Utl HI 


roama 

C2000-CB4M 

C1Q.00O-C24490- 


LBopaid Joseph B Sam Ltarited 

aoMMStmunmtcnn* 




nrimrort Bemoa Ud 

138 Katerii Im u. Loadaa (0*3 2BT 

NLLCA (C24DO*) — —I 440 200 

ndtmort Benoe Private Bank 

<a amour mw 


t 44 tT Drey 


a Item Rote UMoniM 2BT 071-2S7r» 

H1CA (£2400*1 1*40 3 00 I *07l 

Uoyda Bank - kwareteawt Aceomt 

71 LoterinmioMoiECarjEtS 0272 433372 

£100400 red Oban — . I 6.75 441 I USllMifr 

£50400. 5*0 405 240 Yterty 

£25.000. 1220 fin 520 hwflV 

£10400. 1340 275 1 SOOlVMrtr 


HUtead Bank pic 
P0BK25MMI1 
EriSMT toe £9000*. 

£10400. 

£33400* 

£50400. 

TCSite- 

Kaflomridi Bldg Sac- 1 


071 703 6*30 
275 241 279 

4J1 227 490 

30D 373 200 

530 412 240 

325 - 543 


»«07 

imt 

TUB* 


473 

ua 

4.73 

326 

39* 

328 

360 

*.13 


300 

420 

3J0 


431 

373 


kMWl.9Wnl.9lB 
£24O0-U4O9 

£10400-72*400 

£2S400-<*U» 

£50400. 


It** 

230 2*0 

280 2 BS 

430 223 

«®J 330 

930 348 


437 

4J» 

6*1 


Bardays Prime Account ILLCA 


£1400-0469 

WteLwMQ 

£10400*34000- 

825400..-.— 


Poctman Bkte Sac Presdge Qteqtw 
ntnooM BooteMoan, ric aep 


. »_ 

175 248 278 

I 8JS 244 [ 220 

I 275 241 I 3X 

i Ud 

r. l4Wt»H2 071' 

425 219 | 442 

I 429 210 I 442 


X1-2S4KM 

252 Or 


£30400-0*0490 _ 
MMfLTW m u , 

£1 0400-0 0,900. - 


940 413 
B40 375 
*30 23a 
140 243 
240 1JI8 


940 

540 

450 

130 

290 


i Brofhere United, Barian 

an MS. UmaaoBSM 3XH 


ratorinnlim Bank l*lr 

•9*nMmnm>a I ee0uriiBe2PP tm sseazoa 
MCA 1 325 34375 I -Iftrity 

Catar Alan Ltd 

20 BMkte UB0L LriMsa BC3V BOJ 071-8232070 

MCA 275 242 1 2B2l *h 


Otenfari 



£25400- £40400 

El 0400 -824900 

8SJOOO— £9490* 
£2400 - £4499 


850400. 

AMtxauno. — 


t^mawnSSngB^rSiaS^ . oaoo 202101 

°s, 


200 421 

- 925 

- 940 


^■n>w.5C4M 

82jno-etD4ea 

£20400-813400 

muno-egOkSM^H 

o^ta* 



TDK 


071-2* 

040U 

171 

un 

ISO 

MU 


300 

490 

Mto 



431 

Mto 




ran 

390 

22s 

10 * 

Mto 

390 

163 

39a 

tan 



303 


490 

190 

407 

M0I 


HaaasroBnaariMWBaMMi-trMteirina 

KttriiM 

Qydaiifaio Bank Haodda Sohriton Acc 

affa Vtocanl PIC4 Cteiaua 01 2W. 041-2*9 7070 

E1D400-C4BJ199 [ 270 278 [ 275 1 Or 

£50400-82*0489 1 258 245 I 238 Ok 

£250400 ted mar — —I 440 338 1 *48 1 Ok 


The Co-apenlhra Bank 

n Bnan swondta mi 

TESSA 1 175 


nrnnau £10000. 

Wte £300001 

HMA £100000. 

TJodBI TESSA 

United DoaMaas Tract Ud 
PO B« X2.MBB. BUDDY 


2750 2413 3403 

3479 2406 1932 

4400 3400 4460 

41S 349* 4189 

4475 - 4469 


Otr 

Or 

Or 

Or 

vu 


si 


001-4472*38 
125 34*1 235 1 Otr 



rtatota-M Bnod ctnariAaBaari , 
A> B ria nr aa. — , — —1440 248 I 


03*5 252000 

I -Itofrir 


541 1 MB 


rimwwaa-MPartaip* tatox 

EfiCjfiiifr. 

szsjm-EAsssm 



548 4.17 54* 04W 

441 2B1 447 B-rim 

441 223 438 6-M91 

231 244 34* e-m 


244 243 S-Um 

229 342 MU 

1 JO 241 e-Ms 


2250400. 437 220 

®n400-E2*EU« 341 248 

Eltum-Mrieg 206 240 

£500-88400 242 147 


442 

234 

206 

24* 


0425 

B-UDI 

a-wa 


United Treat Bank Ud (tenarh ' 

1 Gnat Ctnnariudit, lowtai wih 7(0. 

£1 040040 Oto M*ka. 744 24*1 7A5I34M 

DoraMaoSwreaea- 040 100 iia|04H> 

825400—1 TW I 134 110 I -lYtaty 

X Homy Schroder WaagB Co Ud 

12D CMapriX Iwkn EC9B0B 071-0820000 

SpadMAce. [4400 210 | 467 1 IB1 

£10400 ted *9aua I 4750 3J4 I 4431 Mil 

Woatoffl Treat Mgl Interait CbBipte Acc 

TM imayaattm fiyaadOi P11 18E 0752 22*1*1 

to 1000 . 1 125 2 M 133 j Or 

ES400-C144BB— 1 100 379 1401 00 

E1.000-C4B89 1*75 250 I 44«i Qb 


Items- Brow Cutriri nto ri ktaari a a i « t »k net 
an awwi af w aw ei iPB of baak: xa bcoca mt 
kat Hau of tamt pnMIa rite riowha Or tMucDoa ri 
BWc tM W oBia w. rite* C Afc Ote i ri nuBM 10 
taka ttcftri ri Mwak f a Sana put trier fro 
aa a raw. •C oT po m did dnauri Krill', tot Cn faqat* 
ri write bant e cratad to an accouPL 


3040 M Orica toriririTa 0 MB 213 m 


FT/)UES E CH O S 

The FT can help you reach additional 
business readers in France. Our link with 
the French business newspaper, Les 
Echos, gives you a unique recruitment 
advertising opportunity to capitalise on the 
FTs European readership and to further 
target the French business world.For 
information on rates and further details 
please telephone: 

Philip Wrigley on +44 71 873 3351 


USD 150,000,000 
SOLVAY FINANCE 
(Bermuda) LTD 
Floating Rate Notes 
due 1998 
Sana. 2: .USD 3Q.QOQ.QQO 
Interest Rate 6.1875% p. a 
Interest Period September 30, 190* 
March 3Q, 199E 

Interest Amount due on 
March 30, 1995 per 

USD 500,000 USD 1 5.554.6E 


Banque G£N£BAlf 
du Luxembourg 


Agent Bank 


USD 200,000,000 

BANEST O FINA NCE 
LIMITED 


Subordinated Flo 
Rate Notes due 


Interest Rate 


5.95% p. a. 


merest Period September £0. 1SS4 
December 30. 1994 

Interest Amount dUB on 
December 30, 1994 per 

USD 1 .000,000 USD 15,040.28 


Banque G£n£rale 
du Luxembourg 


Agere Bank 



I 

I 


Crecfit Commercial de France 

Ure 150^00^00^00 RoatHig Rate Notes due 1998 

In accordance with the Terms and Conditions of the Notes, nonce 
s hereby given that for the Interest Period from September 30, 
1994 to December 30, 1994 the Notes wiH cany an interest Rate 
of 8-375% per annum. 

The Coupon Amount payable on the relevant Interest Payment 

Date, December 30, 1994 will be Lire 105,851 

per Ure 5.000.000 nominal amount 

Of Note and Ure 1,058.507 per /SN 

Lire 50,000,000 nominal /fMTTA KroeEatbank 

amount of Note. tW-lJ g Luxembourg 





tag data for Uie monitoring oi largeis, anu me iur me iiHituimg ui waiie ihh.mbui*. 6 ».. h 











FINANCIAL TIMES MONDAY OCTOBER ? 1994 


LONDON SHARE SERVICE 


sr 


2.1 Knoct 1X8 9*11 
X7 0cfHey 1 U 13B4 
1.7 JKJbI 66 US 
♦ Job We IE* 3041 


14 DMJd TU 17C 

=&!£ 12 i«a 

3.1 Del Hay 1U T794 

■WH : 

X2 Job TO sin 
— Sat Am 18.7 2571 
- Jul Jm afi 2971 

23 HovJBO U Z7W 

24 Bov Jon 5.9 277* 

3M" 

5.5 Jo) Dac 17U2 - 

1.7 JdJm 21.6 
UOdlfay 18 3483 

iSA ;S» 

3.9 Dec Jus 1792 - 

26 JolOec 12D2 - 

41Jon0d 22.6 40SM 

26 Jon Doc 1792 
23 Jon Dio b- 93 
♦ JdJU 76 - 

2J Job Doc 121)2 


ir DMdaods lot ray 
w. pda xd Bn# 

- - - 2919 

16 FfbJol S6 1772 

17 Apr Oct 126 1802 
26 Feb Aag 187 2022 
16 FebJW 47 2438 

A MayOd 793 2034 

XI tag Jan 1X7 2B43 

♦ 9a Apr 86 2883 

16 MU 1X5 2788 

17 Aug Fit) 187 Z7S8 

♦ Hor Oct 156 
X7JUIM 1X9 
42 ttarSop - 
36 Jm Aag 47 
12 JaaAug 2X6 
36 JdM 66 

- Km 1X10 

AAptav 142 

16 FflbSco 1X7 


27 06 Del Apr 


16 Mi Sap 1X7 

12 FebJW 1X5 

13 U>T Dec 142 

16 JvAog XB 

26 JanJd 66 

2.7 - - 

17 Dec Jul X6 4563 
17 Dac JW 86 4664 


w nr 
(Wet Puce cenoe sot 
1SCW 14833% 
189 -72 XS 


108 

-36 

84*311 

-11 

HU 

-11 

8S 


430d 

-1.1 

12Bd 

-11 

35d 



28 



T29 

-71 

30 


33 

-1X4 

188 

-&7 

130 

32 

182 

-XO 


-36 

Q3 

183 

-5 

21 

-6.7 

270 

-16 

774) 



47d 

-11 

190 


128*1 

-4.1 

118*1 

-5 

8 

*X5 

48 

-42 

57d 

— — 

22 

46 

127 

06 

Md 

-Z2 

89d 


113d 

Hi 

14 -476 


7\ — - 

71 Id -XD 44 
3Jh -22 13 

328 112 

12 - 

34 16 

838 -12.1278 
127 -16 01.1C 
1711 -17 26 

148 -17 26 
87 -32 26 

ZBd 06 

CM -22 U 

Va - 

828 -4.1 018% 
116BI -2.1 0*7 
and -126 M 
2nd -1X1 96 

Sid -4.7 X4% 
125 — *6 
88-1X8 - 

229 -1.7 52 

195 -26 86 

58 -36 09 

41c* _ 

102 -16 26 


Dnr DMjgmB LAS 
eo*. mu d 
27 FtttOcl 158 
12 JmJd 4.7 
06 Jm jw 294 
-MOTtav 129 
X8 Oct Hot 196 
-FebOd 893 
26 Apr Oct 156 
10 May Ho* 196 
22 DdJd 129 

- Feb Aug 4.1 
57 Sep 257 
U U XI 

- - low 
♦Humor 3X3 
9 He* 

16 JaaJU 1X5 

36MA0B 4.7 
72 JmJM 1X5 

- - 2 * 
36 Ho* Hi* 2X4 

* Qd 56 

- Hot 286 
1.4 Hey Dec 282 
16 Ha* Apr 2X8 

♦ Stay Im 2X9 

- - 8 * 

06 Oct 2X8 

1.1 SapApr 4.7 
Xi Apr Oct 1x6 

- Apr Oct 156 
24 Oct Job 196 

- Aug 893 


UU 


-May Oct 196 2411 

- Doc Jd 2X3 Z4Z7 

♦ ■or Sop 16 2508 

02 AprHcv 146 2853 
46 JmJn 2X4 2703 

42 to? 185 2848 
22.DocJd 2X4 2878 

- Dtt JOB 2X4 2886 
16 OB 1X8 2930 

16 JWWv 236 6107 

- Jd 5TB 3030 

♦ Jm DOC 12TB - 
23 Oct Hoy 286 3788 

17 Kw Jm 196 3122 
17 Ho* job 1X9 3121 

-Key No* 126 2481 

16 JMM 47 3198 

- - 6*91 3224 

20 Apr Nov 2X3 3307 

17 Apr Mot 287 3318 

- - 563 3310 

- - 1061 5309 

- Jd 4.10 3431 




-fix 148 
-25 855 

48 

36 044c 

1.19 

86 

-66 88 
-1.4 018% 
-fifl <4 
1.0 278 
-44 36 

-6 44 

-28 217 

08 

-36 108 
29 XI 
— 365 
-7.1 048% 
-13 44 

-6 588 
-21 68 
-44 1778 
-5 in 
-6 198 
-28 875 
-45 860 


im Dtv 
STnga pat 

368 

-1.1 25 

ledncdEqpL 

mas 

36 86 

05 

56 

105 

-86 10 
-24 1775 
-22 OJB 

1047 

— 07 

-1.4 136 
-29 12 
-1.1 279 
-20 - 
-25 28 

-77 116 

1.1 

-22 015 
~~ 36 

-29 47 

U 18 

-24 822 
XB 077 
-29 034% 
-16 &5 

37 

~8 88 
-28 1229 
-20 118 
-1.1 XB 
-06 37 

-6 78 

-482 - 

-36 Xi 
-48 429 
-43 147 
06 146 
-7 74 

36 275 
-28 13 

-XI 875 
-48 - 

28 

-76 - 

-25 58 

686 


08 JmJM 10 2290 
26 Dec Jd 126 2278 
16 Hoy Ho* 114 2359 
Sr MW 3TB 
24 Jd Jm 36 5172 
16 Fob Oct 36 2890 
I8JMH0* 126 8383 
- Apr 4-93 - 

27«8fassr 156 2018 
06 OctApr Ml 290 
18 Hn 286 3903 
24 OclMlf 226 3072 
ITM^Mav 236 3136 

28 Km Mot las 3278 
18 JtaJd 206 3323 
♦ FdiAop 47 2500 
U ha 113 - 

10 Apr bn 196 4001 
16 UAq 206 3035 
26 MS st 2Z6 4142 
1.1 JdJaa SS4 4*31 
20 Oct 196 4138 
26 MPf Kn 2X9 4929 
26 Apr Oct 86 4881 
28 Jd Not 2X4 007 


199 1430 
4.7 2543 
1X5 2031 
2X4 2SZZ 
993 1003 
1X7 2873 
1X7 3383 
126 2041 
196 


Oh DMfemb Lad Oy 
M*. odd 8) Im 
18 Jd JM XB 4408 
25 Jd Jd XB 3484 


til 

126 1829 
226 1673 

IM 1395 

126 1427 
1X8 1888 
1X9 1931 
206 1MB 
114 1810 
8* 1879 
1X7 201S 
206 2031 
1X8 2077 
86 3844 
226 4130 
66 3357 
226 2231 
36 2200 
2X3 2321 


28 Apr JM 

is*ar 

SjSL 

28 Mar 

XI OdJm 
♦ FeC Od 
14 JdHOV 


17 Sep Feb 

17 JWJM 

24 Ota FA 

55 JdOd 

18 OctApr 
22 Jdleb 
* Oct Jm 

2J SapApr 

26 Apr Oct 
18 - 
1.4 H#V,K*T 

27 Apr Aug 
14 FKAng 
11 Jd JM 

- May Me 

24 JMSep 


09 ft* Abb 
23 JMOd 
20 Odltay 
2 A JMJoa 
13 JdDoc 
27 Hoy Oct 
23 A|V Bov 
£6 Od Apr 


144 49M 
206 3912 
4.7 2337 
86 2354 
286 2292 
47 2419 
126 2441 
187 2401 
3*82 4159 
- 4495 
117 3822 
226 2039 
86 3857 
1X5 2942 
126 2530 


6 OctApr 296 4897 

- - 160 2258 

5 Job Hot 1X9 4847 

- - - 3410 

J Sep Mar 218 3WB 
JaaAug 47 2837 
- - 860 280 
- JmJM S-33 - 


-16 

138 

25 JW NM 

114 

2880 

-.7 

75 

25 AprOd 

126 

3875 


— 

— — 

1DI1 

5134 

_ 

K6 

15 tap May 

1 8 

4MB 

-13 

1.7 

4A tae Hay 

2X4 

3003 



86 

16 - 

- 

484] 


XI 1X0 
-76 - 

-16 48 

-1.1 134 

- 1.1 85 

-75 86 
-84 XB 

025 

-47 - 

-176 06 

-X3 338 

225 

-1.1 06 

745 

-*0 535 
•dl 76 


16 JMJd 114 2974 

- - 4-90 3014 


11 Hot May 

- Ski 

16 S BP 
2 D Nov day 
86 Od 

26 Oct 
A JWHw 

27 Hot 
26 OctApr 
23 Dec Jd 


2X9 3113 
86 3H0 
196 3535 
*7 3218 
156 1842 
228 3437 
6*91 2185 
36 3649 
126 *324 
47 3838 
1X7 3515 
7X6 3074 

- 3907 
196 IBM 
1X5 3840 

- 422S 
47 5023 
19 3748 

1XS 3748 


«v Or OMdends 
net ca*. pefd 
M 26 AprOd 
US 36HOTJM 
16 36 Aag Feb 
56 33 Dec Jul 
0J3 1.7 HOT 
010% 03 Jm dk 
' i&a 1.7 MarOet 
2 A — Apr Aug 

U 1.7 ■OTyrimr 

8*1.00 -ABjyOcJa 

so ♦ MnOd 

02Sc 21 tag 
0.18 - Sep 

96 23 Feb Aug 
276 06 SmApr 

n 

16 ♦ Apr ROT 

46 33 May Hot 


43 26 AprOd 1X8 3339 

- - - 3*91 3374 

06 Jon Dec itU? 8368 

AMS 3*8? 

4.4 AprOd - 302* 
♦ tag He* 410 5125 
0-6 Jm Bee 11.4 35a* 
1.1 JMJd 2X4 3822 

128 May 4'M 3SS3 

-Junta: 1X5 3852 

26 AprOd 223 3881 
26 AprOd 228 3630 
— Jd Hot 196 3872 
18 May -.me II* 3715 

- -Hay DM 4-OS 3717 

778 - Jm Jd 5* 8136 

- - - 10-M 3729 

26 49 May Od 126 4881 

475 25 FefiAoB 206 37S2 
17 18 JdDoc 1X6 3733 
10 24 - - 4079 

- - - 11-89 5312 

XO Mot Not 2X9 3381 

S Jm 1 1112 3334 

May 2X3 3307 

- Mar 3*93 
14 JmOd 126 M7B 

S DocJm 12* *056 

tars* 47 4088 

17 lor Aug 206 4060 
- - - 1113 

- - 1(789 4119 

♦ Jen Dec 1292 4118 
77 Jd 148 4183 
13 tag Jon 47 4675 
26 OddOT 126 3681 
♦ May Mot 11.4 4217 
1.1 JM Dec 1292 4239 
46 JMJd X3 432B 
16 AprOd 156 4368 
- - - - 1994 

- - - - 4480 

1X1 T7 FebOd 156 4408 

01c - Sep 11B U41 

- - - - 4378 


Mr Hr DMdmb Last Qy 
not cot. pdd M Dna 
406 06 OdApr 2X7 1537 

44 - DbcJm 7X9 1633 

86 -Haydn >26 5084 
X75 06 AprOd 296 1625 
174 26 BOV MOT - *395 

16 1.4 AprOd 47 *377 
36 03 Feb Jd 206 1480 

- - - - *550 

64 13 Hey tar 11.4 UB3 

226 13 JM Mot 254 ION 
030% 07 Ifay 493 1682 

- - - 493 1858 

- - - 393 5167 

87 17 Jan Jd) 2X4 1188 
177 26 ifay Not 106 1717 

XB - Jan Jd 1X5 3233 
- - 1091 T735 

- - - 791 4353 

- - - 1091 3546 

13 ID Oct Kay 2X3 1828 

- - - MW 1833 

me -ApjySeDe 119 - 

54 24 JoiStp 1X5 

- - - 1412 

053 1.7 Mar Od 1X8 

- JaaJU 1X5 
96 1.4 ItOT JUT 287 
7.75 - JdJan 66 

26 1.3 Aug Jm 47 

45 1.7 fcrOd 1X7 

- - -. 391 

885 16 Stp Ajr 16 
169 17 OdApr 106 

85 OS Jd Jm 1X5 
XI 16 Mur Sep 1X7 
26 11 JonAag XB 
85 27 JdDoc 36 
874 20 FdlJd 2X5 
417 06JMAO8 47 
34 - FefcAag 393 


widt nv Hr OMtada teat ay 
■SAge net cot. pdd ■* *g» 

4i* 1W X7 OdApr 22 6 W 

- - - - So 

-116 X8 27 Jd Dac 2X3 4300 
-2503X1% 19 Jd Fad XB 1218 
Tg 45 ♦ OctApr 226 3081 


JMJd 206 ISM 
May Del 2X0 1871 
*91 1839 

S Od 129 1844 
Apr 136 am 
Apr Not 143 33m 
Fib tap 2X7 2273 


-XI XI 2B3MMOT - »n 

-S.B - - - 79t 343B 

47 17 4b Not XS 2488 

-13 425 XI OdM 

04U% IB Jot Sap -.. 

96 XI 06 JdDac 1X5 SU8 

-1.40120% 27 JM 186 SOM 

438 13 NOT Oti 126 3148 

48 03 12 JbIHOT 1X5 4080 


m* 

Dtv 

OH 

amoe 

net 

COT. 

_ 

45 

31 

-24 

15 

11 

-hi 

447 

11 

-36 

15 

15 


XT 

♦ 

u 

71 

♦ 

-125 

— 


-XI 

11 

26 

-XB 

— 

- 


363 

are 

TO 

toxa 


as 

-11 EJ 

85 

-4 12J 
-7 127 

975 

-X* 1866 
-7.106>z% 
16 X4 
-7.1 87 

80 

10 15 

-26 57 

-U 401 

116 

-18 46 

44* 

-3.6 13 

-46 

36 

-17 


25 Hot Hay 1X9 3313 
41 JOB JW 298 3509 
27 Ifay Ok 2X3 3808 
2.7 May Deo ms MX c^, 
II Oct Jot 29.3 ION 

27 JW Jan 207 3780 
-Sap Mar 36 BUB 
1.1 OdApr 223 3KB 
— JM Dot 156 3843 
22 JMJd 1XS 4020 
16 JMJd 4.7 4121 
16 MayOd 236 5298 
1.0 JmAot 1X7 SIM 
06 F* Jd 185 4247 
13 Od 22 3 4401 

27 - - *321 

♦ JdDac 1X5 4422 

- - wa? 4746 

16 Apr 287 4532 


13B3 
13**3 
79 
finja 

121 

an- u 
32) -1 2 
120 - . 
48*2 -- 
188*2 -13 


♦ Mar Sop 
36 FdiAog 

♦ Mw Sep 

- May Dec 
48 Dac tag 


one * Mot Hot 


-17 76 27 Dec Jd 1X5 3840 
— 364 Z6 Hot Hot - 422B 

X15 15 ApgFM 47 5023 

_ 579 1.6 HOT JM 56 3748 

46 86 04 Ami 1X5 3748 

- - - 991 20B3 

-07 X* -Dot A ug 4.7 4498 
-17 86 14 AprOd 47 38H 

— . 265 22 Sip Sep 47 4847 
-1.1 274 37 Apr Rot 286 3918 
-16 - - - 19.1© «E3 

-XI 278 44 Jan Jd 66 480 

16 12 Jan Oct 196 4754 

06 85 16 Jan JW JOB 4236 

-16 66 121 IfarAM 2X7 3K9 

-5 46 27 AprOd 2X7 63*8 

125 - - - 692 *459 

-16 11.7 * AprOd 126 4487 

-77 08 ♦ far HOT 2S6 4814 

OB 36 OdJM 226 4516 

06 * Od 726 4647 

78 — 13 04 JMJd X6 4885 




566 10 JMJd XB 2210 
75 18 JanOd 156 2232 
27 15 JdFeb 11.4 2235 
26 - Her Jd X8 2510 

64 20 OdJna 1X5 2080 
36 37 Dec Jm 1X5 2352 
375 17 AMR* 86 2367 
439 27 Td 126 4160 
124 16 D0C<M 1X5 2430 
15 14 JdDac 135 2401 
15 55 AM 2X8 2448 
865 41 Norway 196 2SI4 - - ■ ■ 

26 05 Nov Hn 287 2S17 
UJ 11 JMOdf 2X6 2588 
768 24 DocJri 185 2327 
04 - AM 2XB SK3 


Wk% Hr Dtr UvCfenm Lot City 
drttge not cor. BOM rt faa 
362 - - 3732 

— “ — — J7U 

~X5QH60 -HrtftJaSt 296 - 

OW% -AprOd 17.1D 

-5.6 032% - Odltay X10 1971 

-11BS1.il -MJdBO* 16 
-2 040c -USA 393 - 


- ru Hy ad fc 26.10 

- FobAag 4.7 
15 AprSfai 86 

-FMAM 16 

17 Hw Hot 1X8 

-AM 86 

♦ MayNOT 2«6 

15 Au Mot 20.B 
2 Od 196 
t.l JdjM 147 
21 Jm Jd 11.4 
1.0 Jd taw 185 

-JmAob 3S.6 

3J OdBay 993 

- Sap 296 
47 Odltay 2X9 
1.4 How May 286 

♦ Od May 11.4 
« Sep XS 

tl FuTSct 18 

IH OTMOT 36 

16 0? 286 

- Jd 66 

♦ Sap Dk 21.7 

- Jdtar 86 

♦ Hey Hot 287 

27 Dd M*y 226 

I. 4 AprOd 226 

II. 1 Apr 592 
-MOTtav ti.4 

04 AprSap 16 
27 JdDac 206 

♦ taP 2X8 


— 

11 

-5Q3UB 

-36 

16 

-XI 

X5S 


142 

1.0 2X39 


XS 

-J JTM 

-S9 

71 

-5 

118 

1.7 

76 

-15 

27.9 


11 

-75 

IBS 



15 

-31 

815 

-1.1 

75 

-fl 

76 

-12 

7.7 


15 

-101 

76 

-50B60 

-1.1 

tai 

13 

XB 

Ofi 

06 

-75 

XO 

-25 

36 


25 

-16 

- 

55 

05 

-46 

85 


33 

-46 

51 

82 

326 

1.4 AprOd 
♦ Apr DOT 

126 

3-93 

12H 

-8 

14 

16 Jet Dac 

185 

88 

-15 

25 

11 No* Air 

14 3 

118 

-1.7 

2.7 

♦ No* Apr 

- 

31 

06 

— 


— 

84d 


X7S 

IBOdHq 

196 

384 

-1 

41b 

13 Aug Fab 

206 

1S5d 


X* 

)6 Jot Oct 

19 

90 


XI 

- Jut 

185 

230 

04 

85 

14 Doc JW 

86 

1X2 

-36 

Oil 

1.4 Bay Not 

281 

1T9d 

-81 

1.75 

27 JBIFto 

196 

983 


335 

X* Jdtav 

1X5 

ss 

-14 

21 

06 

06 


1X7 

2X9 

iSS 

~\3 

36 

♦ FebOd 

BTH 

56 

10B»1 


36 

16 JaeOd 

■m 

1» 

-XI 

41 

15 JKAng 


aid 

-12.1 

86 

- Od 

228 

1S2 

-11 

X25 

1.7 - 

86 

TV 

7Q_n 

- 

- - 

7T» 

3V 

7.7 

— 

~ — 

VW 

9V 

-41 

— 

— — 


I7id 

-95 

412 

26 JUOd 

196 


338 -77 96 27 Ifay Hot 2X4 

138d -36 125 13 Odltay 126 

MATS. & MERCHANTS 

tm air Or maonb Lad 

Ms Rico dfnoB net cot. |Ud d 

AO ira as 1.9 Fen Dd 4.7 

_Jt 328 03 X5 * AprOd 147 

ID SIB SJ II | M T56 

AO 218 -5 1X3 16 FMSap 2X7 

NO 81.-27.1 X» AJmHot29.11 

ON 148 36 15 Jd Dk 1X5 

ND 302 XI 1.7 JaaAug 4.7 

-N 123 15 112 1.7 Fdi Am 4.7 

IO I,m -1* 26 04 Dec Jd 196 

40 192 -35 - - - 1299 

1H 83 -173 06 X7 JMOec 2X4 

IO Z77ld X* 1179 17 Noe Jd 196 

— 149*1 -3 7VI - JMJd 1X5 

.5 05 12 46 03 May Not 114 

-N 140 29 KB 16JupDm 254 

NO 7W*jal -19 175 0.7 Dk 2X9 

fa aoid -aoimn 23 Mayoct 119 
— . 224*2 07 QZSc ♦ Jan Am 7.12 

*3-4* - - JM 591 

.AH 248 -11 115 1.4 Jin Aug 206 

HQ Slid -16 88B IX Not Jm 1X9 

135*7 -25 775 -JtaDeC 114 

sod XS 14 AprOd 86 

94 44 15 12 JMJd 1X5 

M5d 41 15 4 AprOd 86 

MB -1J U « AprOd B_a 
8** — X19 - JM 1X11 

31Bd -17 75 21 JWOet *56 

73 28 14 1.8 Nov Kay 2X4 

1*2 -250 - - - 793 

82d -17 23 10 AprOd 126 

3as*« — D*U» 11 Nm Apr 993 
174 15 45 13 Nov Hay 

388 -6 75 ♦ JuaDec 114 • 

120 -.3 90 ♦ Apr Am 1X7 

09 — 010% * OdApr 293 

302 25 MJBS 1.1 Jdtav 2X3 

710 -14 175 03 Mar Dd 218 

140 325 - M*y fe* 20* 

313d 03 135 15 AprOd IKB 

U8d -1* X7B -AprOd 154 
TJlj 15 - Dm Jd 2X4 

V* — 

4 X7 - 
279 12 25 

1431. -XS 033% 

wad -i s os*% 

1SZ 45 

IBM -6 42 

M3 85 

133d -67 47 

137d -21 475 
nu -21 65 

3ffi -1.1 1X8 
33 1 

IM -17 842 
t» XB 75 

13 

187 27 40 

88*4 07 - 

13W -1.7 27 

«*j -11.4 
ae *3 zi4 
21 

483*2 -aa 295 
103 43 

12*2 -36 07 

1ST -7.1 54 

12HI 15 340 
91 -15 2JB 
mil -3.9031 W 

17*2 07 

174 -56 447 
27 25 

am -is xa 

491j -67 06 

127*2 -137 XS 
ISO -5 43 

278d -35 43 

22 -43 029 
38-08 
103 -1.9 375 
38 -34 - 

89 -37 15 

787 86 1447 


r*% Ur 
l*Tige od 
-17 76 

15 010% 
17 0445 
-15 Q46 
-ZB 15 
-4043>2C 
-1401X82 


Hr DMdentH laat 

can pad ad 

S May tar 114 
Dec MV 1ST87 
17 DacJun 1X4 
- Dk Jd 27.11 
♦ J» HOT 393 
17 HOT JM 27.10 
13 JmHot 1X9 


-165 - - - - mi 

-X* - - - -1340 

-05 - - - - 1803 

-61 - - - - 2889 

-7.1 - - - - 3018 

1.7 Otic * HOT MOT 77. 10 - 

-1250112% 47 JdDac 65 5270 
-XB 25 ftl Jd 165 1823 
-7 09c A Apr taw 187 - 

-16 - - - 091 2064 

-19 225 1.4 Jen Am 205 2108 
26 86 16 Doc Jd log 2233 

— 072% Z1 JdDac 1(5 1398 

-.1 125 OSJaApJyOc 296 2823 
16 - - - - 9113 

1703*2% -JMJd 4 7 2819 
X6 XO 15 JdDK 11.4 2840 
1.1 067 27 AwOd 226 2*8 

-10 QBBc 15 Doc May ST3 
05 023c XO Dk Jn 7.10 

15 16 Jm Jd 1X5 3081 

-42 039% 1.1 la » 

-16 40 06 OdApr 2X7 3217 

— 2 0 010% ♦ Dac Jm 12-92 

-16 010% - Apr £83 - 

—-5022*20 a Jdtar 7.10 
-36 - - - InO 3104 

-1.7 236 14 Jm Am 2X6 3703 

— 75 1.1 JdDK 126 3853 


-14 021c 

A Mot Hot 
X* Aag Jan 

114 

_ 

-5 

85 

SOG 

4MB 

-8 

81 

1.1 tav Jua 

126 

4144 

— 

— 

— — 

— 

2*85 

-45 

86 

♦ Mot Oct 

114 

4333 

36 

718 

16 A<rDd 

3X7 

4244 

11 8*4% 

- JaaJd 

1B5 

8173 

-14 

15 

- Apr 

4.1 

4287 

-16 

XO 

- Jaa 


3723 

— _0*U% 

1.B Jdltar 

4.7 

1480 

-15 

198 

29 Hot May 

2X9 

4438 

-.7 

26 

27 AM 

2X8 

4484 

- 

— 

— — 


4408 

25 1358 

llHayOd 

126 

4508 

xa 

XO 

- Mar tap 

2X8 

CM 


- - 2W 

19 Jd 1X5 
14 Am 47 

06 JdDK 1X5 

14 JmDk 1X5 
A HOT 4.10 
A JmDm 114 

16 JUOd 1ZB 
36 OdJM 156 

15 Apr tar 196 
35 Fib Am 47 
26 MarOd 2X7 

-OdApr 16 

- - 5VZ 

16 Air tap 16 
05 taaJd 2X6 

- Jdtar 1X5 
23 MayOd XS 
05 lac Jd 2X4 

-Hay Hot 114 
1.1 MayOd 125 
15 ta« Jm 1X5 

- Feb Jd 1X12 

26 MAM 205 

- - 1Z90 

- Mar JW 86 
-Sep Dec 

A Aprtae 286 

• JMJd 47 
i taiJd 47 

XO Ocl 47 

17 tap Feb 16 

13 Dec far 283 
15 JU Jm 165 
15 JdDoc 236 
1.7 Jm Oct 1X5 
35 Am Dm 47 
xoHayOd 196 

15 JMJd 2X4 

- Jd Jd 185 
AHKOd 1X7 
1.7 OctJeo 156 

16 tar Ang 4.7 

- - MS 

07 FebOd 16 

XS Odder lii 

27 Jm Jd 206 
21 Apr Aug 206 

14 tab Jd 2X6 
26 FabJd 86 

- - 688 

- - 3W 

- OdApr 226 

17 Nov Jd 1X5 

♦ Ayr Not 147 
25 JMAog 47 
0.7 JM NOT 1X5 
14 BayOd 296 

16 Jw Jm 196 
11 MayOd 196 

17 Aprtae 296 
17 fan Nov 1X5 

14 Hay tav 114 

15 AprOd 4J 
15 Hot Hay - 


17 040% 
-16 XX 
1.7 XO 
14 110 
ITS 


-9 010% -May Aug 9*83 
_ 06 75 Jldtat 2X4 
-3 3 86 ISJeApJyOc 56 

43 - - - I'M 


irk % nr Dumam iw un oty 

net mM apEm d l*» 

-26 864 Dk Jd 1603 - 4*92 

-1.7 48 Sep Mar 074 2X7 1448 

-1.1 - - 1X2 - 1457 

0.6 MDeMrJaSl 28.1 2X7 3802 
-19 - - 515-38® 

-.7 B450aUrJeS* 834 25.7 xm 
-1.6 - - 475 - 3489 

-9 - - ' SJO - 3471 

-16 08 Jun 243 1X5 4828 

-46 - - 173 - U88 

-12 XB AM 346 16 4231 

-13 48 AM 946 16 



-1.6 - - 475 - 3489 

-9 - - ' SJO - 3471 

-16 04 Jun 248 185 46» 

-46 - - 173 - U88 

-12 XB AM 340 16 4231 

-15 48 AM 946 16 

-6 - - K19 - 4800 

-1.1 - - 423-1291 

-14 1J>" Jun "aj 185 27M 

-.7 - - 167 - 2873 

-42 neNKMpta as 2X8 3197 
1.0 - - W1 - 3187 

07 Sep 116 86 3327 

- - 171 - 4284 

-5 4.16 HOTJd 116 2X8 1545 

-1.1 475 Oct Ad 8746 2X8 1570 
-15 XB Oct Ml> 22X7 1X9 1598 
-1.1 - - 148 -1588 

-10 34 AprOd 517 296 1228 




“12“ 

10 MarOd 

IS JMJd 
XI I farOd 
35 Mar Oct 
33 MarOd 

14 Hae Jd 

15 MarOd 
25 Hr Oct 
XI Feb Aug 
19 Feb Aag 

USSfS 

22 Hr Dd 


3-93 - 

1X7 W 
1X7 43K 
47 4927 
1X7 tssm 
1X7 4819 
86 4891 
187 48EB 

187 4980 
2X5 4981 
1X8 3118 

147 ON 
1X7 4864 

187 4903 


25 JmJbb 
25 jot Ok 
i.t mi Am 

15 MayOd 


1.1 FebOd 
- Apr 
IS Jen JW 
♦ FebOd 


2X8 4031 
4-ffi 

1X5 4QG0 
1T4 4878 
47 4110 
4.7 4188 
1X8 4227 
7T0 4198 
T93 4228 
18 4238 
sro razi 
114 2QH 
2X7 4312 


- DwJd 185 
36 JmHot 4'93 

XS /CL, ^ 

16HWHOT 1X6 

- JWJW 1X5 

15 JOT Me 56 

16 OdAia 4.7 

SS 

.iftis 

08 Feb Aug 206 
X7 FabAbf 2X8 
AAprjbw 286 

lOMay Dac 2X4 

- - it**: 

06 JdDK 114 

- Jdta* ii4 

- 6w 1X5 
15 Hot May 2X4 

11 May ta* 12B 

12 Not MOT TU 

13 JW 7*93 
A tae 4.10 

23 Feb Sap 1X9 
23 tail taw 185 

- JdDK 1X5 
27 JdFeb 1X5 
15 Not May 2X9 

- Jd a* 

'i-spS 

35 OecJW 66 
26 JW fan XB 


■UECTRICAL EQPT 

rrn A Dll OMdenfe Last Sty 

rnu not cor. pad U ka 

-56 028 % 83 Apr 4-93 

&4 075 13 Feb Aag 2 X 6 5889 

-10 - - - 116 * 1917 

-5 36 22 AprOd 196 1944 

■113 09 -Aprtae 283 1004 

— 1.18 4.1 MOTtav 2 X 3 1 MB 

94 - - - - 1847 

-45 06 45 JOT Hot XS 1994 

-44 1935 06 JU JOT 254 1827 

-* 50 W>% - JWJW 36 3231 

97 A FebOd 225 1781 

---«■» 1749 
104 23 Apr 69 2 X 7 1832 

869 22 DK Jd 2 X 3 1887 

X 2 S *5 An» 4.7 2001 

86 25 Jd 2 X 8 2171 

-16 13 19 Jd Jm 06 2103 

-44 - - - l?B 9 2131 

-18 736 25 tab Ang 206 2230 

“3 .AS W-B «™> 

-3 235 A AjrSnp s .7 2272 

-18 XI 24 Feb Aug a.J 2 DS 3 

■1X8 23 1 1 Hot May 186 4301 


1.7 Feb Aug 47 4929 

- HOT 7*91 *889 
35 Aag J*4 86 4412 

- - 7W IB75 

24 MayOd 125 4398 
23 MayOd 55 4983 
18 JMJd 1X5 4404 

25 Am Jot 47 4874 
I.f Feb Ocl 158 4*18 

- Jot Dec 2X4 6344 
25 JOT HOT 56 4453 
06 Am Feb 1X7 44G7 

- - - 1388 

23 Mae tav 2X9 4483 
15 MM XB 4484 


86 

-19 13 

-44 

-18 736 

. XI 

-3 235 
-18 XI 
1X8 28 

— 15 

-24 15 

28 H5 

— 15 

. — . 219 
-24 85 

-35 258 

106 

«*8 

-56 028% 
-15 M 

-1.7 019% 

— 18 


H££i 

14 far Sep 205 
29 Apr Jd xa 


- Itay 293 24GB 
35 May 5*1 2*92 
18 Apr Sop 47 5KB 


nr DMAnfa 

Law 

cor. pdd 

ad 


*■98 

— — 

191 

21 Jd Jm 
88 HnOd 

86 

11 54 Feb 

6.8 

-Ifay Unv 

196 

-Hot Mot 

11.4 

xa Dec Jot 

11.4 

A tav Apr 
UU 9 N 

1 X 9 

2 X 4 

♦ taa Bap 

4.7 

- MOT 

! 9 S 

41 Hthriii 

47 

res 

06 Jot Hot 

2 X 8 

11 Aug J« 

187 

1.7 Job Ok 

2 X 4 

01 JMNot 

3 X 3 

17 Hot tar 

2 G 6 

B.7 Hot 

1810 

♦ SepApr 

86 

17 FebOd 

4.7 

06 Hot Mm 

1 Z 6 

21 JW Jan 

206 

27 - 


- Jon 

793 

♦ May 

■V 93 


is 


m 


rk% 

Hr 

Ur Dhkfeflda 

Lad 


mge 

mt 

car. pdd 

8 ) 

he 

-l 

85 

18 AwJd 

2 X 8 

1913 

- 4.1 

178 

12 Jm JW 

T 65 

2981 

-41 

155 

32 Mr Sep 

16 

1874 

__aHJ% 

A JMOd 

186 

1801 

-11 

978 

27 HrOd 

226 

1747 

03 

875 

“- 8 SS 

187 

1785 

-81 

115 

14 J 

1807 

-6 2165 

12 JaaJd 

116 

1872 

- 2 . 70256 % 

14 AjrSnp 

8*93 

— 

— r - 

11 

IS Aug Jen 

2 X 8 

1888 



35 

2 * JaaJU 

— 

— 

- 2.4 

1 X 4 

16 Hay Hot 

1 X 9 

2030 

-ID 


12 tar Hay 

196 

- 

- 

45 

A Jd Jm 

86 

2078 



m 

— — 

— 

2483 


829 

♦ E 08 

17 Saijd 

47 

2270 

--8 

15 

1 X 8 

2303 

16 2 M 5 

116 

2304 



03 

16 May 

11.4 

2310 

11 « 3 Sl% 

A Jun 
27 Ocl May 

orra 

1018 

-X 4 

xa 

2 X 9 

MB 

- 1.7 

25 

A Jm Dk 

283 

BOOT 

___ 

415 

11 JUJta 

1 X 6 

29 RT 

-X 7 

05 

22 MV 

2 X 4 

27 TB 

1050288 % 

5.4 Janitor 

893 

3390 


— 

— — 

793 

279 * 

- 5022 % 

35 War Aag 
21 JmOd 

47 

2985 

-24 

X 7 

47 

2889 

-26 

86 

15 JmJd 

25.4 

MB 

21 

— 

— — 

— 

4889 

31012 % 

56 FK Jon 

185 

M 3 

-15 

45 

1.4 Sep Feb 
19 ttaySap 

47 

am 

DI 31 c 

226 

_ 






43 GG 

— 0565 

XI tae Hey 2 X 4 

2838 



175 

11 Jdtav 

185 

2*08 

-10 

272 

10 Odltay 

SoStLt 

286 

3306 


— 

792 

2805 

— 2 . 70251 % 
555 

6 U 3 

128 

3500 

, 

85 

22 Sep Mar 

axe 

3638 

— 

— 

— — 

— 

3517 

- 

— 

— — 

1(791 

4001 

2 J 

445 

12 OdJua 

186 

3838 

01 J 5 C 

(S 0 ^ 

2 X 6 


-11 

225 

115 

13 S 

-37 

75 

4 Jbafltf 
26 Feb Jet 

156 

404 

2A 

131 

1 XS 

4173 

06 

72 S 

-MOTtav 

11.4 

4872 

- 1.4 

41 

11 OctApr 

228 

4 ffH 

-X 4 

175 

15 Jm An 

2 X 8 

* 34 * 

22 2 X 03 

23 Dec May &3 

< 3*7 

160147 % 

23 May Dk 

5-93 

4350 


1 X 3 

05 JmJd 

283 

4378 



033 

21 JaaJd 

1.11 

2 GGB 

- 56077 J% 

46 JrnHOT 

11.4 


— 

26 

05 taw Apr 

129 

*484 


2 X 6 

46 Mir Ocl 

17.1 

4812 

-2.7 

128 

26 tav Hv 

1 X 6 

M» 

JR 

Vh 

Ur 

Ur DMdfledS 

Lot 

Oy 

rngfl 

net 1 

»*. paid 

si 

he 

-5 

145 

- JWOeo 

1 X 5 

rare 

-65 

125 

1.7 Dk Jd 

185 

2837 

-151 

IMH 

18 - 

105 

B. 

k% 

nr 

Ur GMdeada 

Lad 

09 

Mot 

neJ 1 

»» pdd 
*5 MarOd 

at 

he 

-41 

175 

205 

1498 

-45 

1 X 6 

28 JmJd 

2 X 6 


-35 

r 

“ 

- 


23 « 

— IJJ 

25 

7.1 AagFab 

187 

48 M 

2.1 anjH 
-13 102 

iJWf 

112 

1 X 7 

1818 



— 




— — 

— 

— — 

- 

3373 


— 

- * 

I'M 

1818 

-76 

— 


— 

2572 

02 

76 

2 IKS? 

2 X 2 


•OB 

40 

297 

2550 



— 

— 

— 

4 BB 8 

41 

078 

-Hot Hay 

286 

2277 

- 8.1 

— 


— 

2280 

05 

-35 

02 

- jfl^J 

47 

119 

4971 



11 

27 Jm JW 

1 XS 

4091 

-11 

13 

26 - 

— 

3818 

-XS 

XM 

11 HarJm 

1 E 5 

1048 

— 

— 

— Am 

— 

1469 



45 

16 tav Hay 

196 

3987 

-16 

929 

17 JWHot 

185 

2988 

- 2.1 

35 

25 Aw Aug 

47 

4999 

■ — 

477 

♦ MOTtav 

ZKS 

3007 

45 

-37 

4.7 

- Feb 

23 May tav 

56 

3114 

-54 

— 

— — 

7 "M 

3 Z 0 I 

_ _ 

— 

— — 

- 

4078 



— 

— — 

— 

4340 

-ZJ 

118 

1 > Oct May 

196 

4590 

-35 

— 

— — 

— 

_ 

__ 

— 

- — 

7"90 

1519 

— — 

45 

26 Sc Ml 

47 

2881 

-17 

X 4 

15 May Hot 

129 


-45 

■5 

26 JmJd 

20 6 

3492 

10 

— 

— — 

— 


-14 

XM 

17 JdDK 

2 X 4 

4843 


-II - - 168 -1588 

-XO 14 AprOd 517 285 1228 

- - 168 - 1738 

-16 7.25 SapApr 4716 118 1812 

XI 2X0 AaoFW 112 2X6 1638 

-17 - 4 JM - 1837 

-11 TSJMpJyOc 5 X 6 286 38 » 

- 7 157 - 2 S 5 14.7 3878 

-5 - - 7*51087 1727 

-15 - - 481 3-03 1729 

ISBUyAAHFe 28 S 6 1 X 7 17*8 

-36 002 c HOT BU 3830 

XI - - M? - 3861 

- 1.4 219 Jd 2 X 0 86 4128 

-17 86 - 192.1 18 4302 

-11 - - 1 X 2 - 422 * 

-16 - - XM - 4225 


-17 22 Ap 

-21 - - 

-18 - - 

-.9 - - 

-5 422 J&ApJ 
-.7 XSBApApJ 
-3 083 JM. 

-05 - - 


1X1 - 4SS3 
182 - «U 
1U 2X3 4018 
BX7 - 4883 
2X4 - 4884 
315 

3516 56 1888 
3184 117 4303 
1847 2X4 1907 
459 - 27*? 


-5 466 Jd Jd 82*6 XB 1013 

119 OK 8401X11 1380 

-1.7 K» SapApr 10X4 2X7 1887 

X8. My 1X8 2X3 1588 

-5-0 - - 153 - 1SB7 

01 111 May Oct 736 196 2052 
-22 - - 296 - 2288 

-T 7 _ _ &33 - gain 

-1.4 XAJNpJMc 2X4 226 3198 
36 XOJaAawFfl 125 16 3572 


-21 - - 296 - 2288 

-T 7 _ _ &33 - gain 

-1.4 XAJNpJMc 2X4 226 3198 

36 XOJaAawFfl 125 16 3572 

- - 072 - 3332 

- 2X6 - 3571 

-10 16 SapApr 436 2X2 2229 

- - *38 - 2228 

— XSAUtMFaJa 840 86 2874 

-21 - - 551 - 2877 

- - 16.7 - 2882 

76S Feb Aug X09 187 2308 

-26 - - 217 - 2307 

04 1150cJuApJy »6 1X9 2175 

- - 068 - 1079 


1508 *.% OdApr 
— 1 X 78 Aag Feb 
-16 - - 
-11 84 JMJd 


-16 068 Oa Apr UU 226 

-36 86 Jm M K86 2X8 

-A - - 111 - 

— *2 Jan Aag 2X9 *7 

-11 2X25 AprOd 2015 56 

80 -21 - - 384 - 

48 -XO - - 358 - 

319 -23 95 Jan 04 BIB 286 

772 95 Jan Jd 2586 XS 

81 06 Hw 1811X10 

18 - - 1JSS - 

112 ^4 - - asxenraa 


2X1 396 2798 
1X9 86 2340 
4*2 - 2331 

958 XB 2883 
1X6 - 2797 

485 55 2470 
1815 226 2374 
8JG 2XB 1213 
111 - 1238 

2X6 *7 S334 
20*6 56 sn 

385 - 2730 

358 - 2300 

9*6 206 DBS 


-.7 

e. 

_ 

4JB - 4SB9 



— 

- 

181 - 1888 

-35 

XA 

Oct 

305 205 Z73S 

-76 

- 


217 - 2829 

-15 

* 

— 

UBS - 3984 

-1 A 

- 

- 

141 - 4232 


248 -*Q 
33d 1X8 
SBt. — 
98-10 
100 -.5 

108 

148 -.7 

18*2 -II 
ITS -55 
280 -19 
78 

90 

192*2 -3 

EOS 

MBA - - 

M»S -3 
27M -16 
99 05 
111 -6 
nsd _ - 
171 -23 
189*2 

91 -31 
27*2 -35 

199 -35 
103 -1.8 

•am 

48-115 
■ -17 
37 -36 

add u 

14 — 


szh ta 

10Gd -2.4 
52‘j -19 
88 - 1.1 
•320 -6 

52*4 — 
119 -6 

27 -16 
213 -11 

00 

41 -4 7 
128 — 
48*2 -3.1 
3D *2 -12 
38 X7 


•3 -12 

209 1.7 

198 -6 
19 ._ 
88 — 
48 -21 
IN -12 
93 -1.1 
M __ 

41 

128 

90 — 

is tai 

eisad — 

93 — . 

194 -6 

98*2 -25 
-16 
9Sd -XI 
89 -8 
113d -1.7 
97*2 -5 
IM -2.7 

toad 

111 -4 


33 

H3d — 
.4 
J 


lS3 

74#d 
190d 
139 — 

OO 

1 Ud -17 
85 -12 
31 d — 
ISAM -6 


2535 -6 

38d -6 
29** 06 

T17d -1.7 
68*20] -.7 
50*2 05 

33 -15 
32 -6 
8B -15 
88*. -.4 

*31 -6 

138 

530 -6 

198 -15 

131 

90 20 
103 -65 
39 -25 
Ml -27 
87 -XB 
237*] XB 
SO*. -15 
29V -31 
09* 02 

112*2 06 
43 2.4 

IM -16 
281 X4 
tlbd -A 



-25 ADOcFeAoAu 710 126 2920 

- - X 32 - 2 SH 

819 DK Jd BBU 1X5 202 

-18 - Sep 186 an 2844 

-1.4 - - 252 - 2888 

-15 - - 117 2*82 2TB3 

■1X5 - - 152 - 2762 

-1.7 - - Mi - 3020 

-16 - - 146 - 3888 

1.1 021 Sen 887 8 8 3108 

-66 - - 458 - - 

01 7.1 Feb Aug MU 4.7 2(37 

-5 31 H* Sep T743 86 2(30 

IS - - SM - 4684 

54 - - _ KM. 

-5 45 OdApr *«5 288 2*67 

XS 16 Oct Mr 18X4 296 2(72 


1X2 JM Doc 

— Ill JmDk 
-15 MS Feb Aug 
-25 4X2 FebAug 
-1.8 058 Hn 
-6 - - 
-XI 058 Apr 
U - - 

169 - 


136 - 1838 

854 1X5 2478 
558 1X5 2475 
136 2X7 2490 
236 2X7 2488 
11001810 2783 
116 - 1279 

316 146 inn 

su - tan 

2.701X10 5234 


IXBJySeOfHb 857 206 . 
- - 111-1 

- - 9X8 

01 Dec 7762X11 ; 


-2.8 01 Dec 

- 1.0 - - 

-22 

-31 - - 

-1.7 25 Jm Dec 

-1.1 26 SepApr 

-15 u Dec Jd 
-11 35 Dk Jd 


-6 02 Apr 

-35 - - 

.029 Od 

-41 - - 


-- - " tat 2)1 114 2421 

-J 1£B Apr Am 1976 2X7 2SB2 
02 07% Jan Dec «u 06 2SB1 
- “ «7J - 3324 

-71 - - 452 _ -wot 

-16 XSM r jcSeOe 10 X 7 1 x 9 im 

-20 2L2 Aug ax! M6 mS 

-tJ : : 


1341 - 4021 
111 - 4189 
545 1X5 3948 
281 1X8 3128 


311 1X5 908 I 

418 142 240S 
4.10 - 2*00 

219 86 2878 
•77 - ZST7 

864 - 2423 

211 11A 2421 
1976 2X7 2982 
4U XG 2581 
47J -SQM 
4JQ - 3SEB 



































».vn a a :ih - VM-n nnau&e*: '■KWH/ift/tis* ? vZKttifsfx *-,? * 


4 ( i i 




-a.7 7JSDeUUoSe 


-1.1 7JKMMM 

31 -iu 41 i 
i«d 09 UJaApJyOc 
•3 -J — — 

29 - - 

SS 0.7 «* tvoa 
109 09 4s JdJn 
>1-15 - - 

Tu " - • 3M 

“U — — 



137* 

-1.4 

341 

271* 

-A 

WBi 


Coat 

v% 

Ok 

2? 

nat 

u> 

-5 

851 

MB 

— 



U 

17 

14 

15 


_ , 

85 

-7.7 


-43 1157 

35 

XB 

01 

8.7S 

OB 

095 

45 


35 

75 

■44 

47 

.BM. 

15 

15 

955 

19 

75 

40 


RTV 


13 

11 



05 

QZ74I 

15 

— 



US 

a, 

148 

Mil* 


01 

IB 

215 

1.8 

05a 

43 




— 

1/ 

18 

05 


tattw 



636 

7XS 


15 

25 

37 

418 

— 

— 

.... 

— 

_ 

7% 



75 

15 

46 

15 

IB 

24 

IV* 


IRK 

Prtadrtgi 

QB 

38 -U 
2 — 
15 — 
89V 03 

64 175 


1 UK 

Oljr 

* 

aae 

— 

9647 

- 

4899 

_ 

1838 

- 

2377 

_ 

2465 

_ 

1993 

- 

2519 

— 

ISIS 

US 

oty 

* 

Ik 

’ 09 

1920 

3.4 

2012 

res 

ah 

1 105 

m 

13 

_ 

4*83 

B. 

i 7.12 

- 

5* 

- 

593 

9872 

4-93 

VI B 


205 

4005 

6-83 


US 

Oy 

* 

few 

208 

2667 

142 

— 

S-93 

1541 

1.11 

_ 

247 

4908 

1 - - 

SIDS 

as 

1738 

06 

1738 

F83 

2202 

65 

1>15 

155 

4403 

213 

14P4 

202 

2718 

47 

2035 

110 


247 

•4an ■ 

208 

2081 | 

125 

2D82 

8-90 

5148 

15 

2180 

166 

aw , 

ra 

ms , 

125 

2430 

265 

2(17 


3938 

— 

3838 

“ 

4610 j 

15 

3372 1 

86 

awMi 

08 

1 m j 

ro 

3098 

4.7 

1872 < 

2QJJ 

2878 1 

tan 

S2B0 1 

125 

1880 1 

— 

4378 1 

114 

_ 

185 

30S8 1 

03 

3800 

107 

3012 / 


DfManfe UK 
ms si 
roe 
JM 5*99 

- 19.10 

- 4-90 
Dm-M 115 
JaOet 13.7 

- n*n 
to Jan 145 
JMApg 209 

to* 

WJIIV 47 

- 295 

S OU 225 
Sap 155 
55 Doe 145 
- 7*91 

Oct Apr 125 
M m O fay 
5 b Mm 25.4 


Dee to 145 
OCt OCt 225 
May No* - 
2*83 
DM 9*91 
Jd 65 
Oat MS 
Oct 1U 
999 

Mar Oct 135 

- rgo 

8*90 

- 150 
Fab Sop 147 

54- 145 

JoaDac 143 
MM Hay iu 
■M 1150 


U^. 


IU IJtoto* 
1435 25 Jan Dee 
u - Jtaato 
ZM 27 Mm Bay 
40 20 Sap liar 
1215 12 Janto 
174 35 May Oct 
425 1.2 Janto 

”5 "M 


HE 




<□* 



15 jmsm 
25 My Oct 
31 Mm Oct 
55 MM Oct 
55 Mm Oct 
25 Mm Jna 
37 JdDec 
15 OetMar 


Wee ctnw 

9V 32.1 
57 95 

384 1.4 

40 21 

EMV -14 


— 


2J4 BrtI Boraeo ___4NO MM -41 7.1 25MM0CI 125 

W — - 
a -ii 
52 -3.7 
40* 21 

■K ^ 

14 IS 
23V -4.1 
SOI* 44 
TV* 7.4 
11 — 
lit — 
a -si 
re — 

2>4 -105 
a 7.i 
0 -255 

307X1 

aiM. -125 

30 7.1 

S U 
— 

451 At -15 
07 -11 

42 

72V -42 
VC 46 
73V 3.7 

SI 

as o7 
6S* -15 

mv s 

3 — 

•OV -A 
4V __ 
a -175 
iew -7 

0V ^44 
«V -47 
IV 215 

105. — 

25V -3.7 
125 — 

235 101 
400 -15 
M 2-« 

60 -1.7 
51 — 

21 — 


UL 


3.4 25 

— MS - 


qa 

mm 


i£na 

NAM 

■c « 

| u 

icwnM 

JfQ 


tvlUC 

rO a 


KNHE93 

to 


vrn 

Ur 

Mr PUlends 

Uat 

Cty 

Mcednne 

net 

cm. pdd 

* 

m 

2 



M W 

T82 

7815 

84 

-3.1 

1.13 

39 Joo 

264 

1818 

W1 

-15 

_ 



1810 

tts 

-5 

E9 

-Abb'm 

209 

180 

7 

-3.4 

— 


yea 

1784 

210 


25 

1.4 to 

69 

— 

*5 


29 

19 OetjB 

S6 

ne 




— 

1901 

sv 

-B5 

— 

— B. 

9-83 

2032 

30 

-41 

- 

— - 

182 

140 


-5 

75 

79 

1.1 Apr Oct 

186 

2234 

7V 

-13 

wm 

— a. 

M 

2113 

131 

-15 

021 

-JanAng 

47 

2249 

14 

110 

61 

110 Jm 

165 

2(15 


-15 

022% 

US 

tSUevILr 

583 

199 

2592 

»n*d 

-65 

Q8c 

19 Apr Oct 

149 

— 

773* 


UO 

29 Jon Oct 

229 

2331 

96 

. . .. 

.12 

14 J* 

165 

3081 

36* 

25 

07 

1.7 N m 

189 

170 

100 

sj a 11 c 

1.1 JUJtor 

69 

— 

SB 

-16 

65 

12 tojan 

69 3142 

146* 

-27 

015c 

19 Apr Oct 

68 

— 

2D6* 

-35 

793 

19 JMOct 

159 

3150 

183 

43 


•% 

05 


2-81 

410 

4894 

2Ka 

-15 

B5 

15 Oct Mb 

19 

3504 

213 

-53 

46 

♦ Apr Jan 

31.1 

3898 

55 

75 

19 

• to Jm 

200 

2125 

173 


U 

25 94 No* 

11.4 

3282 

11V* -MS 

053 

♦ DaeOd 

167 

3673 

7 



— 

— <B 

1581 

4150 

12V 

-139 

— 

— «. 

— 

2033 

98 

11 

29 


6B 

380 

96V 

-5 

324 

4.7 4877 

2B2 



756 

13 May Dac 

114 

4338 

843 

-65 

— 

— — 

— 

1870 

71 

irnr> 

-27 

11 0 




4MB 

Mini 

AU 

vw, 

DV 

»* DMdenda 

US 

<* 

Pdca drags net 

ce*. pdd 

* 

fed 

ns 

-17 864% 

89 May 

583 

— 

505 

-75 

— 


— 

2819 

106 

-179 

- 

— — 

- 

4330 

an 

207 


“ 

I ^ 

“ 

1448 

3709 

M 


- 

- — 

- 


rov 

m 


27 

- Janto 

264 

2582 

1586V* 

130 

14 

-u 

228 

55 

W Ml 

rxr 

189 

114 

2701 

Z791 

non 

-15 000% 

583 

47EE 

a® 

-35 080% 

iIfAs 

583 

470 

S 

1.7 

277 

66 

2948 

iSS 

0304250 
3.0 2L8 

-MlaSnOa 

163 

129 

2S0 

■a 


vam 

♦ day 

583 

3E0 

2661 

82* 

-40 

158 

1? tor Oct 

99 

3778 

ENU 

07 028% 

- May 

<83 

— 

1^4 

-42 

an 


— 

Z70 

me 

-5 

10J 

Iras 

166 

4838 

381* 

Q^502O*C 

its 

4640 

SSt^S 

-SU T722 

17 - 

4 7 tob i|_ 

10 MSB 

J1D/*2I3 

" 


ij wru) 




A & PACKAGING 


<n* 

£» 

0* OMfeafc 

US 

or 

nice tsmoe 

n* 

car. pdd 

jd 

Qna 

148 

-.7 

523 

19 Jnto 

165 

2429 

307 

, m 

06 

19 Mto 

165 

7000 

1288V* 

OS 

46 

75 Nay May T9L9 

20(0 

180* 

_ 

BOB 

09 Oct Jen 

189 

190 

383* 

-.1 1256 

19 to* Mm 

2B6 

081 

118 

-J 

19 

14 Oct 

083 

IMS 

472* 

-2 1395 

19 OctJaa 

129 

taae 

183V* 

-5 

775 

-top Mb 

166 

9307 

-47 

49 

14 tor Iky 

142 

4811 

447 

-19 1226 

14 MB to* 264 

3806 

223 

-29 


-JMDae 

165 

4791 

78 

-119 

19 MSap 

267 

3338 

153a 

a? 

29 

39 to to* 

66 

are 

172 

39 

41 

19 koto 

263 

2009 

178 

-63 

49 

25 Dm Mm 

114 

zsa 

220A 

-45 040% 

27 Jm 

883 

420 


-170*2% 
— 115 

39 AirOct 2110 
29 JM 1610 

094 

2268 

102* 

-25 

396 

2.1 AprOct 

166 

3390 

318 


39 

64 jm Am 

47 

2291 

820 

“55 

205 

25 Jap Am 

69 

2324 

63 



197 

13 8o» Aag 

200 

2334 

122 


46 

19 MM to* 

264 

2360 

17V 

15 

as 

29 Bm Jm 

199 

2485 

5ESV 

Ut 

a 4% 

19 - 

— 

4915 

91* 

-11 

145 

19 OctApr 

219 

4900 

334 

-J) 

115 

19 Dacto 

69 

2S5S 

12B* 

05 

673 

02 AprOd 
25 MSap 

266 

2557 

234 

-23 

755 

4.7 

2H3 

1% 

-305 

— 

— — 

2611 

290 

W 

MS 

19 Am Oct 

47 

110 

182 

-119 

to 

20 Sap Apr 

68 

2282 

278 


52 

27 into 

IBS 

380 

IU 

078 

-isi 

15 

IBc 

45 JboNh 
-„Mm 

215 SOM 
483 - 

409 

-19 

IU 

13 MayOet 

218 

320 

58 


19 

25MJMI 

169 

301 

2SS* 



41 

35 Iky Oat 

59 

320 

28 

-19 

b 

— a 

682 

4T8 

120 


496 

IS - 

- 

<329 

94 

37 

U 

15 Jnto 

— 

5043 

'a 

-3.4 

75 

15 Fab J* 

69 

3981 

-45 

US 

22 Deeto 

169 3881 

127 

mv 

-35 39 

35 010% 

29JMASB 

4.7 22S 

OB 

-35 034% 

$ Jm 

683 

— 

*17 

-11 

59 

14 JHDao 

264 

JOBS 

■a 

-JDIBOe 

19 tor Jan 

983 

— 

-69 

- 

- - 

681 

5179 

m 

231 

-in iWS 

-25 1075 

17JtoAng 
19 Mto 

47 

165 

4009 

4017 

B2BS 

-29 1076 

19 MvOet 

80 

4044 

84 

807% 

-15 15 

19 Janto 
15 Am Feb 

69 

269 

un 

4053 


02 021% 

T ^7 

583 

781 

1437 

BUI 

36 


— 

— >B 

780 

4387 

238* 

-05 

49 

35 Oct Jm 

299 4413 

114V 

-11 

85 

- to to 

39 

1282 

222 

-19 

89 

£2 JtoAng 

4.7 

441B 

378* 

IB 

U 

Itkrk 
15 Aag Mar 

IU 4441 

128 


IS 

47 4633 

WV» 

n* 

Dtr DUtodB 

US 

By 

Price drtga 

99 -43 

isi cm. pdd 

399 ♦ Janto 

id 

264 

ka 

108 

98* 

-44 6V» 

- AprDct 

289 

7534 

18V 

-25 

— 

— _ 

<82 

2418 

2B7 

-1.1 

— 

_ _ 

— 

4399 

116 

182 

— J* 

-10 EV% 

12 Nevto 
-Jan Dac 

165 

169 

1857 

MB 


tj+t- 


UL 


Qbr Oa MfeadH Ua 
ad Gov. paid * id 

3d &£& i55 

s iw a 

42 UHMjtof 115 

US 45 55 205 

0184 15 to 14? 
05 15 JMDae 143 
475 - Oct 195 

431 Lb Mr Am 205 


222 15 -UFM 4B 
105 15SapM 217 
Sfl 4 May Mm 11.4 
135 15 Qatar 47 
1350 25 Han Mm 11.4 
478 3.1 JtoJu 214 
12 31 No* May 285 

tee u ■**( is 

135 25 AsrQcJ 237 
24 - JKOC 85 

QBK -SaOdfe* 393 
40 25 Fat) Sap B5 


DM Ofr DMSanO* US 
eat co*. pdd »l 
425 15 Jan As« 47 

48 <SS atiyifct 22.8 

- 15 - T98 

328 15 Jan Jot 48 

45 17 Mm May 11.4 
&S 76 tor May 125 
M3 IDtoOky 295 

- - - 11-89 

- - - 1737 

44 * Mm Apr 145 

15 05 MmJbi 25.4 
U 15 JnM 47 

325 1.2 Deo Jw 125 

25 30 Octltoy 155 
33 15 JrtOec 
151 IOAdoDk - 
425 25 tab Ado 205 

25 45 Sap Apr 14 ? 

25 24 to to* 265 
02S 47 K*y 255 

04 - - 4-91 

05 5 Dae m 

M2 14 Jen Oct 195 

320 14 - 768 

4JB 15 Nov May 114 
153 55 Ann Apr 4.7 
027 35 May 143 

- — — BUZ 

41 24 May Mm 2S» 
7.1 15 JanAog 4.7 

32 55 JMNm 185 

DM U My S« 
24 41 Dap 
105 22 Oct Hay 224 

33 27 SmJM 47 

85 $ Oct 155 

- - - 385 

- - - 883 

- - - 481 

65 * Apr Ho* 285 

151 1.7 MAh 145 
425 23 toto 185 
454 * Aprttar 143 

825 25 Oct May - 
205 1.7 Hay 0a* 185 
QSfc - Jdb 


3 K 

• i'i 1 1 


m 


60 
248 
145 
151 
783 

DOC Jm 593 
Oct Mb 147 

MpJan US 

SS 5 IK 

IbvOct 1&8 
tor Iky 195 

JdJan 145 
JanJM 25.4 
MAon 147 
Mar Da 17.1 
MmNbi 114 
MarSap 247 
JriOot 185 
Mar Oct 44 




VMb Hr 
PrtMCtrnpe net 
34 214 - 

121 05 41 

3tS -15 85 

227* -220117* 
74 135 41 

110 -7.1 486 

2C 55 

140* — 42 

128* -1.1 25 

37 -175 35 


-85 45 

-5 25 

-15 45 

49 75 

03 25 

-3 135 

471 

43 one 

25 

-47 43 

-31 075 
-S 65 
-47 05 

-25 85 


DM DMMBda Las 
co*. pa* afl 

- - 1411 

tttogM 147 
23 Nm May 243 
MJtnDee 145 
45 to 146 
32 Jan Aag 4.7 
35 44 Dec 244 
15 tovto 195 
1.4JMOM 245 
35 toJM 48 
ai MOB 225 
13 toJM 48 
1.7 MAm 46 

- to 5^3 
25 JmJ* 48 
CLS Fab Jol 206 

J Apr to* 143 
Fab Sap 85 
Oct Mm 145 
15 MayOO 185 
25 KM May 


43 020c * bacJn 

47 U U Dae Jd 


109 -15 35 

3M -L5 75 

403 -25 143 

SB 

83B) -240155 
245 -75 - 

235* -99 94 
62 — 15 
128 -40 1.1 

sag 15 i35 

174 -44 4.7 

21 -107 15 

JOB -5 40 

83 -17 255 
4MS 1.7 145 

158 05 15 

S3M 05 48 

3B2V -5 751 
ZOla — 75 
130* -45 45 

97* -45 32S 
402*2 -15 82 
sat* -44 115 

30 75 

239 -15 476 
til* -35 U2 
91 — - 

284 -7.4 0135 

27 — - 

■ £5 

Wz -45 - 

173 418 

30 .15 

28-103 05 

14kd 428 

M3V -03 373 
27V -155 - 

64V -If - 


11 Apr Oct 
11 JM 
15 Martlet 


15 AprNM 
15 MUM 
12 JaaJd 


13 JriJn 
15 J* 

42 Aim 
IBHmSm 
22 DC 
— JBBRM 4*93 

12 Dm 

11 Mto 165 

13 totor 185 
35 Apr 41 
04 Mm Mar 285 
iSJanDac IO 

-Nav Mar 125 
lOMOet 15 
1J May Dei 45 
25 Jk Aag 85 
44 Apr 0* 159 
18 5* Dae 105 
24 J* Jan 101 
15 Ha>0et 109 

- - Ml 
1.7 MSap BU 

- - 12W 

15 Sap Apr »7 

- - 593 

15 DccJ* 185 
15 AprNM 90S 
15 J* 06 
15 Oct Hay 281 
15 DM Jd 105 

- - 9W 

- - 8012 


753 1J Asa Apr 107 
OJ» « Oa Apr 15 
229 35 Oct Apr 225 
1.1 1J JMOd 41 
15 13 HMJ* 265 

113 25 Hay Oct 15 
25 15MayMn 109 
22 17 AprNM 185 

00 25 - 125 

45 - Jd Jan 208 

15 ].3 JMNor 305 
225 47 Jol Jan 254 
142 15 AprSap 285 
038 - Oct 119 

45 ♦ Oct 228 

15 02 Aq| Del 225 
- - - 881 
47 . t OctM 385 
252 21 May Nov 185 
85 $ Hay Ha* 343 

45 1.0 Jan J* 216 
1025 35 Jon Fab 1&5 

01 11 MAib 47 

25S - J*M 85 

35 46 NM Jd 195 
2BB 22 AmO* 125 
- - MM B-8J 

22 15 JdOac 65 
15 15 Sap 85 

Ott 13 Nov'llay 285 


156 12 B*y Dec 285 

11? 22M~SM 107 

05 45 Angjaa 4? 
751 25 Jan J* 105 
15 4 Apr to* 145 


ON DM DMfcnb Lest 
ret CM. paid * 
107 1J MSap 247 
SLAB 25 MSBp 205 
07% -Mb Sap 15 
OtXK * Mm 583 
203 135 Aprlap 08 
103 135 Aprs* 08 
SOS 13 AprSm 08 
178 17 Feb Am 208 


Hv ffi* DMdaodi Lett 
net CM. paid M 
22 15 Nov May 244 
45 41 Mb Jd 85 
65 1.7 JdOao 254 
121 24 9 m Apr 148 
61 OS JanJd 08 
65 15 JdJan 105 
288 13 Jen Jm 244 
- - J* BW 

223 05 May Jan 114 
85 1.1 May Oat 285 

10 lAA^ipr 16? 


Jan Ad 185 
MayiMe 285 

- m 

May Nov 265 
AuaJn 208 
JHNm 195 
DecJd 185 
ff92 

MAug 47 
Mlby 195 

MSap 08 

- 653 
Mar Am 47 
May No* M 

Mm Apr 185 

- 3011 
Jd Jd 165 
Aag Jan 185 
AprDct 85 

- em 

Am D(d 2SB 
NMjua 145 
OctApr 148 
May fa 249 
JdOac 48 
Jaajal 85 
OctApr 08 
OM 47 

Jmjod 105 
OMMb 215 
JMJU 108 
Jd 5"90 
JbUm 106. 
Novj* ISO 
May Jm 11.4 
MAog 48 
Jan Oct 218 
Jd Mb 86 
»90 

JaoAag 107 
No* Mm 214 

JaaJal 186 
No* May 285 
AogFea 205 
JMOct 218 
Mb 114 
Dacia b-93 
551 

J* Deo 283 
Mb Apr 209 
Mb 263 
to Mb* 10 s 
MOM 118 
JdOac 06 


Mr DMdsndt Latf 
am. MS MS 
15 Jd Jh 08 
28.4 Jm Dec 244 
13 Oct 47 


thr DMdmda Uat 
cm. prid id 
UPacjui 105 

1? 5 285 

12 Apr No* 209 
25 tag Am 208 


m*. 


m 


Hr tv 


m- 






ynv 








»Vf! 










~~i,i 




13 Mw rss 

24 Jm Jd 206 
- MvSm 223 
* JanOd - 
23 NmM 6j6 

25 ApjJan 47 
S3 JdlNow 185 


- - - SB 

35 He* Mi* 254 
-■DJaSda 125 
13MJH S3 

£ Apr Not 

23 MSap 15 
If Am 247 
93 IMtHM 115 
25 May Oct 249 
- Oct May 15 
OO Aag Or 119 
* Apr Apr 3TB 


















































40 


FINANCIAL TIMES MONDAY OCTOBER 3 1 994 


NEW YORK STOCK EXCHANGE COMPOSITE PRICES 


»Bk InM 

17% 12* AM 
18% i2%alim*; 
78% 57% AMP 
72* saw 
5 3%/WX 
58 Jg 33% ASA 
31* 25% AKWL 
IS* 11* ABU Pr 
23* 17* ABM M 
15* 11%Acpbaa» 
31 22% ACEUdx 
12 * ' 

10 * 

10 * 

12 

11 * 

9* 


vie rr s» aw i 

% E tOB« Ogd Ion M Ban 


048 17 21 82 13* 13 13 

0.18 l.t 39 EDO Iil7* 18* 17 

IX 20 27 1G98 u78* 77* 77* 

80 3301 51* 51 51* 

13 322 4 3* 

200 30 34 450 82* 

178 2.4 18 7307 1131* 

050 3.3 11 31 15* 

052 25 6 21 

27 107 74* 

044 10 X 229 24% 


8* ACM Gut In 1.0911.2 
7* ACM GkOpp 08011.2 
7*ACUertSp 086108 
8* ACM G*t5e 1X115 
8* ACM Man 1.0812.9 
8ACMUenegd072 8.7 
8* AaneCh 044 3.1 17 
6* Acma Bad 8 

28* 23Acon3a 080 02 13 

12* 5* Aetna 038 35 7 

18* II* AcKMl 125 685 18* 16* 18* 

18% 18* Adana ty* 048 08 0 112 17* 17 17>t 


32* 52* 
31* 31* 
15 15* 
21 21 
14* 14* 
23* 24 

9* 9* 9* 

7* 07* 7* 

B* 88* 8* 

a* 8* B* 

14 13* 1< 

9* 9 9* 

13 27* 27* 27* 
95 10* 10 10* 


64 46* MMkn 
31* 18*MlUc 
6* SAdWStGTp 
20 ID Mn> be i 
59* 49* Aegon ADR 
85* 44* ABtaL 
35* 25* Aflac 
22* 16%Ahma 
4 1* Atom toe 
50* 38% AkPrC x 
39* 24 AMmeFrt 

28* 19* Atyaabc 
17 14* AHaoK s 
29* 21* AUTctl 
18* l3%Atata«r 
21* 16* Atomy kit 
17* 13* Afimi 
25* 19% AIbCuS 
22$ 17* AlCtihrA 
30* 25% Altai 
27* 19* AlaiAl 
65* 4»* Alcoa 
23* Ataamm 
22* 14 A*«A 

24* 17 AOBBRlud 

26* IB* A8egP 
22* 1 3* Man Con a 
28 


Odd 50 18 60* 59* 59* 

300101 12 BOOS 29* 29* 29* 

0. 16 11 8 31 5* 5* 5* 

OIO 88113 B 17* 17 17 

1.47 15 12 2TB SB* 57% 58 

2.76 OO 7 4365 47* 45* 46* 

045 1.3 14 1796 34* 33* 

888 42 IB 2192 21 20* 

1 40 2* 2* 

098 11 25 2067 46* 48* 

OX 12 14 390 24* 24* 

48 203 27* 27 

1.84 11.8 12 40 16 15* 

5068 28* 23 

OX IX 24 1112 16* 16* 

035 20 X IX 18 17* 

OX 1.4 IX 14* 14* 14* 

028 IX 18 X 23* 23* 23* +% 

028 1.2 76 122 22* 2* 22* ♦ * 

044 19 23 3384 29* X* X* +* 

OX 1.1 71 3730 26* X* 26* 

1. X 1.6 43 1829 62* 61* 62* +1* 

OX 2.6 4 120 26* X* 28* *% 

OIO 05114 200 19* 19* 19* -* 

048 22 X 1141 21* 21* 21* -* 

1.84 8.1 10 4205 20* XX*-* 

OIB 00 17 166 20* 20* X* 

044 1.7 16 999 28* 25* 



H* 99* 
31 31* 
X* 30* 
27 27* 
6 8 * 
23* 23* 
18 * IS* 


X Aleman 044 1.7 16 999 26* 25* 25% -% 
4* H Allan l IX B * * +£ 

27* 17*«WJCIP 194 7.7 2 2 707 21* 21 21* +% 

018 19 19 8* 9* 9* 4* 

OX 49 14 X 22* 22* 22* -* 

057 2 0 7 4938 35 * 34* 34* -1* 

088 3.3 19 818 27* X* 27 -* 

24 277 6* 6* 6* 

12 2582 32* 31* 32* +1* 

1.X 19132 3SE6 38* 84 * 84* -1 

38 6040 21 20* 20* ■% 

098132 582 7* 67* 7* 

7* 7% 7* 

7* 7* 7* 

052 22 15 21 23* 22* 23* 

090 19 47 2953 48* 46 46* 

024 27 54 8* 0* 8* 

OIO 04 J510127 28* X* 26* 

100 55 10 4881 36* X 36* 

12 22 * 22 * 22 * 

SSS 7* 7* 7* 

194 9L0 X 121 17* 17* 17* 

1.X OB 0 23 19* DIB* 19* 

195 19 67 2308 99* 99* 99' 

140 79 16 5047 31* 

OX XO 1311218 30* 

1.16 49 23 3481 27* 

077 125 741 8* 

2J0 99 8 208 X* 

an 39 It 15 18* 

132 49 12 <781 60* 58* 80 +1* 

075300 8 13 2* 2* 2* 

048 05 15 2835 90* 88* 88* -1 

382 7* 7* 7* -* 

X 27 25* 28* ■* 

9 586 25* 23* 25* +1* 

5 X 7* 7* 7* 

7 2479 X* 24* 25* *1 

IX 18* IB* 18* 

1.08 4.1 11 259 26* X* 2B% 

192 49 14 2949 «* 40* 40* 

198 39 5 53 36* 35* 38 -* 

024 1.4177 4X1117* 17* 17* +% 
IX IT 1610880 5B* 59* 99* +* 

OIO 12 6 IS 8 7* 

012 19103 152 4* 4* 

190 4.4 10 558 31* 31' 

11 1967 3* 

OX 07 63 3316 45* 

X 1096 33* 32* .. 

094 14 X 134 27* 27* 27* 

190 3.1 23 9615 52* SO* 

267106 3 25*825* __ 

22 695 32* 32 32* 

044 26 17 17 17 18* 17 

__ IX 18 7 875 33* 33 33* 

29* 22* Apadta Da * O0B 1.1 38 2919 25* 24* 25* 

10* 8*A0BXMwF 073 60 434 9* 87a 9* 

24 14* AIM X 1861 22* 21* 22* 

7* 4 AppM Hag 1 623 4* « A 

24* 16*An*F»A 0.12 05 38 3 23* 28* 23* 

X* 21* ArcftDn Old 04 18 6311 u26* 2S* 26 

51 43* Arcs Chari 150 5.1 22 187 49* 49% 49* 

SI* 45$Anwo45P 450 B8 5 46% 4B 46* 

6* 4* Aram 3 889 8* 

X X Anna HP 210 9.7 7 23 


10* 9 Aloes 01 

27* 21* Aid ten 
40* X*AMSU 
29* 24 AIM Dp 

7 4%AI»Q3B 
X 21* Akanes 

97* 64* Aka 
30% X*AtaQ)A 
11* 7* AnGoriic 
0* 6* Art press r 02S 14 25 17 

8* 6* AnwGd 008 19 13 3019 
25* XAncastM 
S?% 44AnM 
9* 8* Am Ail) 8 
31 20% Am Beni* 

37* 29% Am8na 

25* 18* Am Bus Pnl 080 39 14 

8 6* Am Cap kc 095 89 
X* 15% Am CX Bd 
23* 19* Am Cep IV 
99* 42* AmCfan 
37* 27* AmBPH 
33* 25* An&p. 

X* 24* AmGrid 

9* S*AaGMk1 
27* 22 Am HBi Pr 

20* IB* An Katya 
65* 55% ArtHmu 
2* 2* An HMris 
98* 91* ABM 
11* TAmOpptac 1.00130 
X 23% AmPranx 098 33 
34 TOAnPreak 0.40 19 
8% 7% Am Real Ee 0 M 5.6 
27* SIAatikrx 048 19 
22* 18 Am H8U 5% 1.25 8.7 
32* XAmWrir 
43* X* Amrtdix 
43* 34* ftmraitnc 
17* 11* Amec* 

St* so* Anaa 
9* 8*AfflpcaH> 

4* 3* «mR< 

34* 29%AnEwft 
4* 2*Anacanp 
SB* C* Araderto 
X* 23%Aratoo 
29% 24* Angefta 
55% 47*AllfiiS> 

2B* 25*JWPptf1 
34 (S* ArtfKffl 
18% 14%An8aaiyta 
X* XAonCp 


a 

I 

+% 

± 




57* 43* AflndW 


46* 33% AnnwBN 
7* 4%ArtaBp 
33* 23* AnAnhd 
34* 2l%Asata 
31* X*Ad8dCm 
44* 33* AMI 
25% 16% Aste P2C F 
3* 1% Aaathw 


6 

<23 23 

<43 43% 
37 37* 
5 5* 


57* 49* AT&T* 
263* 226* AD Rkti 2 
38* X* AM Gas 
9* 5*AMSa 
21* l6*AMEor 
112% 92* Arikh 
ID 4* 


190 28 13 
027 1.5 
0X107 8 
An« Css « 012 0< 21 


IX 39 32 1353 44 

15 877 87* 

2 40 5* _ _ 

OX 3.1 13 489 24* X% 24* 
040 1 2102 1586 34% X* X* 
040 1.3 12 19 X* 3* 30* 

94 35* 35% 35% 

101 18* IB* 18* 

34 2* 2% 2% 

62 31* 31* 31* 

IX 14 18888 54* S3* 54 

IX 19 3 242241* Ml* 

108 69 13 131 30* X* 

OX 43 7 1100 
194 9*4 B 291 1 
590 55173 1785 101 

0 111 5 4* 5 

X* 16% AUweEpgy 088 59 8 44 18* 17* 17* 

12* 5* AQftOeAOfl 034 17 10 524 9* 9* B% 

' ' 016 07 X 298 22* 22 22 

OIO 19 3* 9% 9 9% 

090 1.1 X 1138 56% 55* 36* 

044 17 12 43 18% 18* 18% 


| 

i 

3 


3D‘2 JU* +** 
8* 6* 6* -* 
16* 18* 16% -* 
01% 100% 100* +* 


19 7* Altai 
45 30* Ami 
X* 48%Awrfi 
14* 10* Aydn Cop 
7* 5%Azta 


X* 31* BCE 
9* 8* BET ADA 
5% 3&*n» 

17* IB* Qatar Fort 
Z2* 17 Batarfl 

27* 21* Bator Be 
X* 24% BMP 
15* B*BMMd 
9% 6%Brty 
" iBj«i 

I BaABrfctp 

X XSncOni 

IV 

9% BancoConW 
27 BctpWMl 
I* * BmeTesa 
X * 49*ftMdao 
50* 38% Bantam 
X 81* Banh Boat 
28% 22* Brito 
40* 45* BA Etootn P 
X* MBartdlY 
X* *5* ta*Aui A 
95 75 Bantam B 

84% 63*MJatX 
38* X Bebys 
X* 22* BonJ{CR) 
38 a* Banos ftp 
48* X* BanRk 
13 8*BaBU 
53* 34* Bauch 
X* 21%Baxtar 
28% a* Bor El Gas 
a* 19% B<Tr 1838 

23,1 IS IS' 


004 04 4 415 1i 
060 1.8 19 290 
100 31 17 823 
9 261 1 
24 638 



- B - 


S3 

M 38 

a* a* 
11 % »% 
34* 27 


37* 27* 

32* 23B<KMMiln 
47* 34* Beano 


168 7.5239 
021 31 27 
OX 49 6 
040 15 
046 IS 43 
0.40 19 23 
060 11 27 
005 09 15 
12 

192 OB 12 
OX 19 X 
IX 4.2 10 
094 39 9 
072 B9 5 
194 14 7 
23 

0.70 U 18 
190 16 9 
5.58 69 
098 13 >1 
3 04 &8 
1.10 17 5 
125 7.1 
690 79 
IX 5.4 5 
108 10108 
am 14 21 
1.40 17 53 
1.64 17 10 
0.05 04IZ7S 
098 29 15 
IX 17 42 
1.46 59 IS 
1.72 89 
OX 18 4 
106 89 
094 11 21 
040 1.4 25 
074 1.5 17 


418 X* X* 35* 
01 8 * 8 * 8 * 
115 4* 4* 4* 

53 16*<1B% 18* 
2593 IB* 18* 18% 
69 24* 3% 24* 
4« 28% 27* 28% 
320 10% 10* 10% 
5® 7% 7* 7* 
1534 X* 22* 23 

297 U20% 20* X 1 
9568 X> 

307 


64 11* 
101 30% 
15 1* 
D3 54* 
94 44% 
4 61* 


24) 

10* 11 
X* 30% 
1 1 
53* 54* 
44 44* 
, 81 * 81 * 
2961 28* X* 28% 
2100 45 <48 45 

4825 30* 29% 29% 
73 45*<«5* 45* 

10 70* <78 78* 

2878 87 88* 88* 

219 36* X* 38% 
2398 25* 24* 36 

11 37* 37% 37* 
1956 44% «* 44* 
2365 ol3 12* 12* 
1207 X* 38* X 
5302 38* 27* 28* 

82 26 24% 25 

18 20* 20* 20* 
5194 18015% 16 

20 47 046* 48* 

63 31 X* X% 

863 H* 28% a* 

30871148% 47* 48* 


-% 



7* 5 Bed 

19* 14* IS 
63* 53M 

JC&E£ 

" UBoa(49P 


, 13* _ 

1985015100 B«kH 
10* SBvynu 
38* IB Bert Buy 
X* 2Q* Bemstl 
55% SljaBriHnPI 
24* iB*BrthSr 
53% 42*1 


S 1 * 1 


_. , II* 

32% 23%8Mngni5 
23**16* BOsek 
22* IBBbCfcHli 
10* 8* BUrekAOr 
B* B* BBnett* 
10* 8% BkknXIpt 
48* 37* Stack 
31*23% 8K» 

8% B% akaOkp 
14% . 9* BMC M 

S 42*Boetaa 
T9SubaCa 
21% IDBdtBSH 
25% 9% Benin On 

22 H* flWn C a» 

38* i8*Bnn>Ffld 
34% 29* BSE tap 
SO* 68* BrtBSl 
33* 19%EMotartt 

58* — 

74* 

^55%» 

27 1fl*BPPntf« 
27* 18 Basel 
71* 53% BT 
28% 22*BWM 
M% 33% BwnQp 
a 5*anm9i 
30* 20* amtae 

S 24* ftftrr 
3* BRT 
17* Bmtnk 
18% 13%BnaUVM 
41 35^4 BiKtalH PI 
X* l2*Brt1C08( 

S 47* Bum 

37* Bote Hesc 
19% 15%BumnemPc 


WU Ik Bern 

hi x e m n en 

ax 89 3 24 8% 5* 5* 

276 61 IS 3845 S3* 52% S3 

040 lo 17 eszusa* is* ib* 
178 59 X 2618 57 55* SS* 

090 12 33 76 80% 50* »% 

054 2*2 27 358 36 24% £4* 

490 7.7 4 X OSB 58 

1.72 4J 13 884 40* 40 40* 

047 19 10 33.27*028* 28* 

004 43 IS 7D 1 3 H 

Offl 29 22 166 18% IB* 16% 

91 110189X18X018990 
040 41 X X 0* 9% 9* 

34 4337 39* 38* 39* 

290 02 X 27* 28% 271 

590 99 37 5Z% S2J 

040 19 8 4837 21 307 

1.44 10 33 TO 47* 48? 

3413023 15% 14 
OIO 09 X 1524 17 

040 1.5 61 503 27% 27! 

040 19 21 Z774 22* 2l! 

IX 69 11 X - 20 19? 

073 09 209 8* 0 

075 110 1156 6* 

070 89 273 8* 

195 27 27 2082 46* 

OIO 04 24110751 28* 

0.12 1.7 X 9% 

098 08 8 6X 14* 

100 29 11 3872 43* 
ax ZO 71017 M 29* 

OOB 04 X 373 17* 18* . _ 

1.18 47618 2105 25* 24% 24* 
OX 12 17 3588 13% 13* 13* 

126 69 8 54 20% 20* 20* 

on 2.1 15 (ox a* 29* a* 

097 08 25B5U38* 34% 35* 

140 7.6 7 IX X* X% 31% 

194 18 12 303 71 70* 70* 

X 1915 
292 01 15 5021 
1.77 11 13 1313 
397 09 a X 
1.76 13 25 5570 
19 71 7 X 21 
032 19 27 1111 u27 
3J7 89 15 434 57 
IX 04 14 270 » 

IX 49420 208 
OX 47 4 87 

OX 39 4 207 

098 2.1 aims 32 

» 44 4% 

044 12 X 2424 20% 




4% 4% 

19% a* 


032 

20 

40 

199 

16% 

18 

16 -% 

200 

70 

10 

X 

37 

38* 

38% -% 



94435 

14 

13% 

13% -% 

IX 

14 

18 

1977 

SO* 

so 

30* 

as 

10 

10 

1743 

37% 

37% 

37% +% 

1.42 

09 

X 

338 

18 1 

815* 

18 


- C - 


35% 25% C8I 
381 353* CSS 
36 19% CUSEfi 
82* 59% CXARi 
54* 44* CPC X 
18% 14 CPI Carp 
92% X CSX 
29* 19* CTS Cnpa 
24% 18* CXlBBWB 064 14 17 1B7B 
53 


319 27* 25* 27* +% 
290 09 15 1559 323315*320* +* 


X* 24* CabMC 
23* 18* QOnOSG 
18* io* cadneeuegn 
59 35% Camera «l 
2% 1% Cal Heal E 
15* 11 CkgaiCtn 

19* 15* CiCngr 
15* 9* GUM 
25% 17%Q*HtCQ 
42* 34* QroMS x 
a %CBUilR* 
18* 14*CBtfacx 
85% 60* CspCIx 
12*QpeU19B 


048 19 32 

323315*: _ . 

094 39 111X4 21* 21* 21* 

16 89 63% X X 

IX 17 17 2102 50% 49% 50% 

OX 3.0 X 256 18* 17% 18* 

1.78 29 IS 3475 X BB% G8* 

OX 1 A 32 10 X* 26* 28* 

.. .... 19 18* 18% 

12 1132 47% 47* 47% 

OX 11 13 211 27* 26% 27* 

016 19183 2X 18% 018% 18% 
906 24XUI8* 18 18* 

11 13X 43% 43* 43% 
0X107 2 7 1% 1% 1% 

016 1.4 24 157 11% 11* 11% 

17 543 17* 16% 

0 1685 IS* 

040 19 sa 205 21* 

1.12 18 IB 2601 
X 863 
032 19 64 996 
020 01 2 1798 
1X101 
IX 7.4 



idpridliga 132139 6 91 24* 23 


. 15* Cmmarti 
35% 30* CxrtCO 
Z3 16% Cannfea Q 

12 £ Can4cn Pc 

13 a*Cffllnfr 
30 22*C»PSL 

66% »*CpnkT 
26% 9% CartaVU 
18* 13*CanM!fG 
21% 18*CXeCpi( 

10* 7* Oah Amer 

m nZcrn 
is i^mcaip 

36% 3i%Cl0taPlU 
13% 8%CertEo 
45* 22*cmn 
30% 22% Certr Hdan 
25^2 21* Conruul 
15 ie%OanUIMn . 

X 24% Gear Neap x OX 10 23 244 28% 


234 12* 12% 12% 
2IX 21* 21* 21* 


24 


87 2499 
020 05 21 3919 
020 13 79 31 

13 437 
W 105 01 2 

IX OB 18 5391 
2 302 

no m r 

OX 5.7 0 357 1 
204 5.7 ZD X 
1.X 59 811246 
5 724 


« 12*CBlUWtt 
30% 28* CeitSW 
30* 21% Oontayll 
27* is* cam 
40 280*apki 
12* BQkmanri 
15* 5* Chart Hm 
51*40% 

40 J5* OaMH 
4% i%OmnB 
18% to*Ci«M)r 
12% HOanttC 
38* 30* QwaoO 
42*X%awnfflx 
11% 7* ChemWaatB 020 15 
X 22* aw*Mla 
47* 39% Charm 
56* 40% 04a Fund 
19% H*Cl4qBr 
8* 5 Chock RO 

41* 32ChCm 
34% 24%ChMena 
«3* 43*Chryer 
83* X* Chubbx 
74 57QVN 
0* TCtyaHlx 
37* 28* CSanh 
20* 15%OapMI< 

27% 20% Onctyi 
28* 18%CHB 
4* 2%a*sta0 
30% 25* Qpom 
27* 18%aeriiaa 
40* 20%Ocu*CU 
45* 38*«CP 
28^2 XCItap9.12 
X 74% CKpPQM 
190* 87* QepPOAO 
17* 13%CBnUdA 
17* 13% Qm WB 
12* 7* Ocrtatri 
12% 7% CUE 
23* 9*CWn» 
n* 90* CMfi| 

28% 17Q8J«11ta 

11% 9%OamailBG 
89 790e«7X 

45* 34%Oava 
86 70* CMOS 
55* 470mi 
X* 22 Quo Had 
1310* 

18* ll*Oacmn 
19 13 Cost Star 
33* 26% Ccest 
50 x%QKaC 
19* 14 CocaBi x 

23* 18* Cow Data 
38* 25% CUwan 
85% 49*CdBPa 
11% 9% CUonkw 
8* 8* CataWHx OX EL7 
7* 5* CPtonUlx 0.X 119 


22 1177 23* 23 13% 

OX 15 17 17 X* 32* 32* 

15 2XU23* a* a* 

0 257 A * * 

lUO 12 1 19-9% 9* 9* 
1.70 M 12 844 2&* 28* 26% 
140 3.8 15 108 63* Q* S3* 
OX 14 221008-13% 13 13% 

OX 99 13 35 14% 14% 14% 

OX 1.0 352 19* 19* 19* 

OX 09 16 505 8* 8 0 

OX I.I 8 4837 55% 54 54* 

32 X 13* 13 13* 

125 7.1 It IX 32 31% 31% 
OX 05 1 SX 0* 0* 9% 
OX 09 B 1624 23* 22%. 23* 
108 07 8 818 24* 24 24 

1.48 05 12 134 22% 22 22% 

OX 00 8 842 11* 11* 11* 


27* 28* 


1.42 119 7 202 12* 012* 12* 

i.x io is 1508 a* a* a* 

032 1.1 21 479 23 28* 




6 * 
1S3* 
34% 

4 

17* 17* 
12 * 12 % 
X* 35* X* 

is ’a *■ 

OX 11 77 897 u35 34 34 

IX 44 10 6802 41* 41* 41% 
1.45 39 242 48% 48 48% 

OX 19 1765 18% 18% ' 

X X 8* 

7 133 40* 

42 nn X 

TX Z2 6K2M 45% 

IX 16 18 502 71* 

394 49 181X1 83% 

0X112 384 7% _ 

140 01 11 105 30* a% 30* 
OX 49 19 ia 18* 18* 18* 
1.72 7.7 74 3U 22* 3* 22* 
030 1.4 X 353 25% 25* a* 

IX 692 3% 3* 3% 
100 7.4 10 191 Z7* 25* 27* 
OIO 9.4 19 3222 2B X* K% 

17 7019 22% a* 22* 
OX 1.4 1113842 42* 42 42* 

2X 09 31 25% 25* 25* 

890 79 17 73% TO* X* 

7X 00 7 57* SI 

19 253 13% 013% 13* 
1X119 0 839 11*013% 13* 
094 59 31 330 11% 11 11 

OX 19 647 B% 7* 8 

012 1.1 9 727 11* 11 II 

X 513 69* 69* W* 

17 1208 19* 18* 19 

057 59 85 10* 10* 10* 

796 lCLfi 4 72 71 71 

IX 3.1 8 862 38% 37* 38* 
7.40104 1 71 dJl* 71 

IX 17 16 SX 52% SI* 52* 
OX 1.3 10 X 22% 22* X* 
OMIHOai 1X104 11 10% ID* 


124 1.7 8 71 14* 14 

DJ2 19 18 X 17% 17* 

040 1.4 27 2756 0* 27* 

OX 19 28 11 147 49* 48% 

OX 0-3138 378 18 17% 

015 07 22 294 21* 21* 

2B 92 35* 34% 

IX IB 17 27S8 X* 57% 

OX 09 96 10% 10 

X 7 8% 

77 8* 6 


6* (Mortal Mt OX 89 212 6% Jjj» 


21*CriGsi 
... 3B*CoHCA 
a* 17* Ooaulsn 
31* 25* Contain 
a* i2CanMnc 
a 21 ComrrtMta 

a* 3 


232 08 6 384 27* 

012 03 53 7488 44 43* 

036 1.7 10 280 21 X* __ . 

IX 49 9 16*5 27% 27* 27* 
090 II 13 24 18 17% 



048 1.7 18 121 

0 510 

mix 89 26 

« 2X 01 2 6 

Par OX 18 23 2041 
1423551 

1 



28* 28* mi. +% 

3* 03 3 

21% 21% 21% 

22 021% 32 

14 13% 13% -* 

^ 

OX 04 22 6905 45^ 43% 44* ^4 

X 1562 44 43 43* +% 

Tty OIO 1.1 3 14 9* 9 9*+% 

OX 10 14 998 25% 25 25% +% 

OX 18 19 1881 31* 31* 31* 4* 

1.48 63 12 197 23% 22% 

IX 00 18 19 21* 21* Zlt 

1 12B8 II* 10? 

4-65 04 7 55* 

290 00 9 3054 25* 24? 

5.00 79 ft 63% B3 : 

36 715 a* 21J. _ 

194 00 19 938 39* 38* 38% 

IX JO 18 3082 50 40% 49* -At 

IB 1235 10* 10* 10% -* 

OX 1.1 4 1230 45 44% 44% 

4.1B 89 1 40 49 49 +* 

7.45 07 2 86* 86* 86* 

7.0 U 2 87 89* 85* 

9 ion 9* 8% B 

IX 74 581350 13*015% 13* 

004 04 50 9% fl* S% 

1.18 11 J 36 10% 10* 10* 

3 1(02 a* 7* a 

4 1046 2% 2% 2* 

- IX 3J 14 15X 40* 40 40* 

X* 22* Cooper™ 024 19 19 8» 23% 23 23% 

15* 10 Core kid 014 13 10 38 10* 10* 10% 

29* 74* Ota IX 49 10 2089 27* X* 20% 

34* 27% Crring OX 21482 3030 32* 31% 32% 

10* 11*cnunrm 0.1Z 19 8 12* 12* 12* 

19 12% CMWy & k 032 13 4 2535 14% 14* <4* 

11 73%axnfctPr OX 03 X 3S7 17 15% fB* 

12% 10% cue 22 15 II* II* 11* 

20* 24* bam 073 IS 13 389 25% X* 2 

IT 14% Cmufon OX 11 14 X 15% 18% II 

33* 19* dam 81121 20* a* 

49* 39% Drift! IX 15 13 667 48* 45? 

12 9% DM 1.16H4 11 ESS 9* 09* 

8* 4*CMUqRa OXHJ 5 37 5* 5 5 

24* 13% CnnvtanBK 048 3.1 15 4859 15% 15 15* 

41% 33* CranCS 18 1S2B 39* 38% X* 

13* 9*CRS5kr 0.12 1.1 32 53 11* 11% 11% 

§ 1* £&***« QOS 300 0 2 017 1 0021 & 

7C9WBX 0X103 X 7* 07 7 

8* C&BoStf k 081 IB a 8* OB* 8* 

35% 25 arc W 45 1014 33 32* 33 


M* 25* CnAfpr __ 
31* 22* CemaaNQ 
2S XI 
,W41 

32% 23 CemEd 

X 62 Qm Ed FT 
29* 20*Cmfl1 
47 X* Crams 
99* 48% DAH 
20% 11* Con* Stare 
86* 43* Conan 
80 47* CPw 4.16 
100 MCPWT7.45 
108% S3*CcnP7X 
12% 7* On Medta 
28* 13*Ccmty 
10$ B\Convna 
11% io*CmHPI 
8* 4% CDnMB Cm 
3* ,£ Cooper Cm 

52* 34% Coopkl 


J 

£ 



-a 


4 


we 


sn 


17* 12% CUtaro 
57% 35% Currifn 
13* 10*Crtrartki 
37 32% CraOVr 
II* 8* CVHek 
U* 7* 

§2S^(*Ai« 
38% 12% CjkK 


21% 18% OPLHqHo 


060 00177 
ax 19 7 
092 89 12 
IX 2-8122 
1X129 8 

10 308 
52 7234 
080 29 18 3642 32 . 

12 1187 u38% 





25* Dm 094 

47 38 Darter Cox 0.12 
13% lODanWM 018 
W* 6%0ataGn 
7% 2%Daupa« 
fi* 6*QartiWUI OX 
88% 64%0amH 
2 * QGL B 

8* 4 Da Sob 014 

33* 25* Oran Faarb OX 
43* 31% OanWD OX 
8% 7* tteentlCv OX 
90% 64* Dasrax 2X 
1% ft DelVHFa 
23% 18% De*ri\ IX 
57% 38* HtiMr OX 
12* 9*Dety«mO 040 
2% * Dritana 

38 25* Detox 1.48 

101 B4 0OUE07.4S 7 45 

102 X* DetrE07X 7X 
30* 24* DettO 296 

28 22* Dexter bp OX 
24* 17* bag Prods 0.40 
24 19* OHM OX 
30 23* Dtetxri Sh OX 
14* OXOtanCop 
46* 34 QjeOoM OX 

38* 18* OlgRE 
37* 25% DrirUx 012 

48% 39* Dtsner 030 

' Doieftl 040 

34% DnmRee 254 

Domta-bK 025 

XDonekMn OX 
31* 20% Doorijr 054 

Dwer 194 

OoeOix 2X 

- .DmJb 094 

! n* DoenoySSL 0.48 


19* IB* 19* 
15* 15% 15* 
36 27* 26 

44* 44% 44* 
11* 11% 11% 
9% 10 

02 % 2 * 
8 * 8 * 

5* 5* 

X X* 

^ " 

X 


- .DOE 
20* DifepTUp 
13% 9* Cram 
34% 19 Dressr 

10% 8*0rtaF0S 
11 8* DrtmSJ G 
11% 8% Orta 3 U 
78* B2DaPaM6 4 SO 
43 32% DutaPe IX 
27* X* Data Pty IB 
64 55* Duftd 2X 
82% 48* DuPm IX 
29* 24* Quri. 4.1 295 

27* X* DuasnO.75 IX 
a* a* DaqsrariX 2.X 
33 25 0pqL4J 2.10 

a 24* DaqHK.15 ZX 
100 87 DupL 72 7 X 

47* 30 DmaO OX 

11% SDVlKBlSv 
20* 13 Dyitaricx OX 


- o - 

1.18 6.1 13-822 
18 297 
39 10 1101 
-09 23 X 
1.8 » B . . _ 

Z 2828 ul 0* 

' 1 83 2* 

2.4 5 2 8* 

.IX 22 16 2900 77* 

3 1061 1% 

27 2 55* 

22 IB 247 30* 

19 ID 3085 38* 

79 804 » 7% 

12 18 4052 89* 

0 ADO H 

89 ID 509 18% 

04 4 1921 44* 

16 19 228 11* 

0 4 1* 

59 17 2004 29% 2 

11 HOO 91' 

a.1 aw 94 - . 

11 7 1057 25* 36 

39 16 IX 23* 

1.7 22 79 23* X* 

29 B')BS2 21* 20% 

29 24 80 25% 25* 

II 124 8 

11 25 384 41 

1 6885 26* 35* 

0.4 12 3381 28% 26% 

03 2716773 39* 038* 

1.4 21 1Z9 27* Z7* 

18 11 2650 37* 38V 37* 

39 35 67 8% 6* 6% _ 

19 10 171 22* 22 a* -U, 

11 » 2014 30* 23* 30 4% 

19 X 048 57 X* 56% *% 

39 33 7S17U79* 78* 78* •* 
29 20 2078 30* 30 30 -* 

29 11 31 20* 20* 20* ♦* 

IX 5.8 10 459 29 28* 23 +% 

15 193 23% a* X* 4.7, 

062 51 5 IX 12* 12 12* 

OX 14 10 6437 2D* 19* 20* 

OX 7.4 
091 99 

073 7.4 . 437 9% 

72 10 S3* 052 

StO 13 3638 39 X* 

16 76 435 25* 36 

49 X 2209 58* 57* 57* 

39 X 6439 S3 57* 58 



294 

315 

437 


8* 

B% 

9* 


& 

9% 

62 

33 

25 


86 3 24*024* 24* 

11 2 23* X* X* 

89 2 24 24 24 

13 i30 25* 25* 2S* ■% 

15 2 24* 024* 24* -% 

79 z20 91* 91* 91* 

19 40 11X 45* 45% 45% -% 

31 49 10* 10* 10% 4% 

19 27 nffl 19% 19* 19* 


17* 4%ECCtaB 
19 I4*EG8G 
46* 36*e5yrtn 
27* 21%EarilM 

a* a* EBdp 

X 39* EattCB 
50% 40% Burt* 
82* 45* Eam 
35* 24*GcMi 
23* 1B*Gcriri)lnc 
32* 21* Briton Bra 
24% 16%&0 m«Os 
8* 6*ScaQnuo 
25* IS* Bear Carp 
Beet Ass 
tyer 




a 12% arc coni 

9% 7* Enecg Gmr 

rtTL fill . r- MlJ1 

ttl'i OTTO 

7* 5* EjnpriM.75 

20* 18* EmteDte 
16 8* Empty Sen 
55% 41* Endesa AOH 
23% 19* Ena^nCo 
31* *EngM 
16* ISEMBim 
455375* Era* 109 
34% 27% EiTOi 
24* 18*tyrmOK 
101* XEnsdiAJPE 
19* 12% Envch 
10* 5* Ensich Ex 

37% a*Enfv 
x% ia*EntanaCo 
2* 2 EQK Rarity 
30%21%Eorita 
nEqaRRCx 
29 BtydDMe 


2% 

38* 

11 

19* , . 

14 10% Buropa Fd 
i6% a*ai9ffli 
17% iBExorittr 
87* 56*Enn 


11 6%Eria*ri 
1% 10% EJuyl 


4% 2*Mltaw 
16* 13* FT Dsutn 
ib% 11% Fmrcani 
X* 35* ftthld 3. x 
a b*rbmm 
Z i% 10% fiaah Inc 
B B* Fays bun h 
62% 48* Fed ta Ln 
57* 44* PeOPBZ97B 

linif - "" 


. Feddra 
S9*lrt&p 
37% aFority 
50% 75% FeriUI 
31* 20%FedPBdx 
21* 17 Federal Sg 
25* ia*F«DeptSi 
38% 71 s * Ferro Cop 
34% a*HOOm 
ID* 8* Ftalak 
X* 21%PtagartW 
40* 34* FMAnB 
3B29%F)86 
37* 31% RrriBrad t 

sa nhemten 

51* 49* FetOWVCPC 
101* 92FriCHecpC 
55* 41* FriCrig 
48* 41 % Fjtfld 
a* 33% Fri FO 2.1 
18% 11*ftratFrt 
02 51* ftrsFn M 
85 62% FriH 
20 * 12 * FriMta 
3% 1B*FSPWF 
48 39* ftOUrion 
53% 51* ftntUPf 
10* 8* FSLtaRx 
a* ftsvkg* 

S FtatrCa 
fteeOp 

27* 1B*PMBl 
30 22% FtanOk 
44* X*FtyT««r 

20 * TOFtyw* 
SB* «j*Ftanrx 
62 45* PMC Cp 
7* 4*FUCa 
X 41 * Porta CSS 
17% 11* Fowl G 
3S 2B*FntO 
10% 8%Forttax 
45* 32*ftWWH 
18% 1i*ftMnayer 
7* 27% m. 

1% S% AmSe 
9 7* FmMPrx 
51 33% ftaridRax 
42* 31* Frariiarv 
* 4* WtaflA 

4 FrHtaB 
. 18* MHI 
a* 20% FfMeMA 
»2i*FramGnx 
33 XFrldon 
TO* GOFdAraEn 
IS* 13* ftxua Gny 


OX 19113 553 13* 
OX 17 10 I57B 15* 
TX 29 If 1028 42 

154 69 9 323 &% 
1.40 59 a 432 26* 
IX 29 1919 55* 

IX 11 3510266 52* 
IX 26 18 1037 47* 
076 IS 18 1526 30% 
044 29 18 431 22 

1 2A 5.4 10 228 23 

058 11 7 107 18% 
63 

022 12 9 
8 
127 
7 

092 29 4134757 
012 15 154 

IX 29 152252 
047 01 2 5% 

IX 76 14 48 16* 

80 323 12 

1.09 29 14 370 43 

1.12 50 13 44 a* 
0.48 18158 975 27 

058 45 II 38 13% 
1050 23 noo 450 
075 29 a 4424 30% 
012 06 11 13 20* 
7.00 73 2 96 

020 1.4 20 DIB 13% 
UO 39250 10 10 

IX JJ 86286 23* 

76 22 

1.10463 B 121 2* 
062 21 34 994 29* 
028373 0 ITS U 
1.14 18 13 1040 X 
2 290 10* 
OX 4.4 14 4055 11* 
0.75 05 13 11* 

7B 42 11* 
IX 06 21 15* 

288 10 130474 57% 


- F - 

007 25 41 3 

1.12 10 110 
012 08 a 35 
ix 9.4 noo 

040 59 24 2 

5X2714 
OX 10 14 IB 
194 19 13 6897 
288 49 544 

IX 7 A 38 874 
OX 9.1 87 1064 
21 1B2B 

an 22 io 2328 
240 10 10)2151 
1.00 12 92 4343 
042 23 18 207 
18 3218 
054 22 13 483 
21 126 
028 25 X 15 
018 07 15 OX 
IX 49 B 354 
1.16 33 15 883 
032 19 13 IX 

000 73 noa 
iso 7.0 8 

ox 7.1 noa 

200 44 5 2198 
IX 40 9 MX 
215 04 11 

OX 03 09 

OIO 02 a 1523 
100 17 12 2960 
030 13 77 1318 1 
078 IS IK 
IX 43 9 2614 
41B 89 26 

040 59 8 414 
IX 33 10 31 

IX 39 9 887 
IX 17 13 4X8 
OX 22 19 13X 
IX 11 a 738 
048 13 10 104 
IX 79 12 1043 
080 47 18 Si 
OX 19 2*2883 
X 9Q2i 
005 19 7 251 
IX 20 19 a 
034 19 14 230 
090 33 1217854 
090 07 x 
074 22 21 1502 
038 20 17 91 

ix 53 14 asoo. 
aw 04 2S8 

OX 83 IX 
OX 09 15 1SB8 
13 1455 
095 1.1 *100 

OK l.'r 9 9 

IX 83 43 2084 
080 24327 2078 
0.75 11 7 n 
91377 
ox as a ix 

008 OS 309 


12 * 12 * 
15* 15* 
41% 4t% 

22* a* 
a 36* 
54% 54% 
51% 51* 
47* 47* 
30 38% 
21 * 21 * 
a* 23 
18* 18* 
7 7 

18* IS* 
7% 8% 


3 

+% 


“J* 

ns 


“5 3 


45* 


TO* 14% 


1 50GATX3J75 
i 38* GA7X 
.. j 47% (SCO. 
14* 7%GnCM 
38* 23% GTE 
Iff* 78* STEF 135 
12% lO*GobeHEq 
38% 28% Gatyhri 
16 llVQrieriiija 
4% l*OrivHatn 

59 47% Carat 

49% 30%amhc 
38* a* Been 
11% 11 OaflMII 


16* GomWI 

1I*( 


.. entrap 
IB* Orifcr 
57% aSGonDyrr 
X 45GenSecx 
8% 4%G*nH0ri 
15* 0* teuton 
02*- 40% GnUB 
B5% 46* teWk 
27* wm 
.. . 31% GnlAiH 
31% 2B* Britain ' 
13*101* &11ABX 
M^ aaffla 
92% 41* GBaartacn 
5% 2%Grita*o' 
21% 13% BriritaSO 


- Q - 

IX 73 10 52* 521; 

IX 17 13 388 40% 

1.00 29 12 245 50* 

72 1 a 13**13% 

IX 82 a 7BX X* 30% 

126 75 3 18* IS* 

IX 92 
OX 27 18 
1.70 121 
004 25* 6 
IX 29 17S330 

048 19 32 9229 

41 38 

IX 123 
OX 19 
OX 49 
0.1 3 08 
TX 32 
134 10 
OX 82 
032 29 13 

TX 13 18 5884 

OX 1.7 223609 <7* 4G 

048 13 3 0821 — - 

OX 11 a 1334 37! 

IX 73 9 1085 24! 

IX 19 13 2875 107 
OK ZB 23 1331 .. . 

105 1301 us?* 91* 
11374 2% «% 
18 809 18 17* 



393a 3^( 
21* 


n> 

Cano Inc 
Garatar 1.15 
GrgraSO 

78 56* GrgbP IX 
104 91 * Dgta7.72 7-72 
18% 13* Gritxr Sd 032 
12* ia%CantatyFd aiB 
12% 6% GriOfl 
16% ID* Gear Pas- OX 
14% ^4 Start by 

10* 7%Gto!Bea ox 

73 57* EU IX 

21% 15% tent OX 
' TO* Seam CO 040 


ICOnt 044 



^5* 

9* 7* GtaWUC 
4% 3% GtabriHta 
8% 6%am nd 
48 a%B»Fn 

51^ <7^39 
48% 31%btyw 
12% 7* Gotoefaft 
X* 38% CacsKR IX 
89% X* GmgiW ax 
30 23% GMrt IX 
27% ig% GWFT OX 
17% 12% Cnsri G tai 024 
82 48* GtUAnaCx OX 

so aaiminx 4X 

2J% 15%SUffiR 
31% 23%GraaaWP 
34% 21* Green Trae 
17% 12 SrriraEng 

19* 14 Do* 

a* 9% GntaSi Son 
40* 19 GrTrDACR 

16% 9 Su*dsron 

24% 18Tj QritodM 


- H - 

19% 13* H6Q Heart 096 63 25 15% 

22% IBFKTriAOR 091 10 7 2343 20% 
16* 13* HE Praps x 1.12 7.7 24 a 14% 
3* ZKadsoo 1 139 2% 

35% 27% Katyn 1X32 17 3334 31* 
5% 2% Hailwood 1 77 2* 

10 6% mat* ft* 1 032 4.7 26 01 6% 

17* 14% track tag a IX 89 18 59 14* 
24% 19% IfcoekJcaxi x IX 69 25 27 38 

14 tOttanteBUKlUf 4.1 JO 308 It 
17% UKstyKarm 020 U 25 158 16* 
28% 23%H*oa OX 19 17 1570 2C% 
26* iSVHentaftud 098 19 16 70S 24* 
4* jbteseoVrt 6652 1 

a% 18 Hanson AOI 094 52 17 6917 16% 


15% 15% 
X 20% 
14* 14* 
2 % 2 * 
30* 31* 
<2% Z* 


_ 30%Han£n 
24* 20* Kartand 
29% 21 * Hetty Da» 
35 24»2 ftaman tan 
25% 16* Hendgx 
52*41%KK7ta 
48% 36*HaCGO. 
53% 42%K3fl&Stn 
7% S% Ifcrtinx 
18% 15% HatKne 
38* 29% Hawa^erS 
16% 14 Haute 

32% 27*H»»Ca 
9% 9 Kerim Bpi 

7* 4*Htbknage 

39* 23% HeaffltsUi 
34* 25*HHnoma 
15 9*HnOU 
38% a* HeffigMey 
38% 30* Hertz a 
36% a* HHemCbr 
30% 24*HetanP 
121* 96% ttcriea 
S3* 4i% Hnhoy 
HewPaC 
_ _ HosxtC Ip 
4* HBxw 
7* HbenOxA 
S*Htfitac 
5% High tact 
rand me 

__ MVkJPbx 
13% l!%IUog&H 
43% 28% WriUa 
24 17% Hkhvn 
74 48* JSttrril 


064 19 16 534 34% 
098 4.7 12 216 21 

OIO 09 SB 1301 27% 
016 05 22 399 U3S 
JX 19 39 1200 426% 
1.24 29 16 874 46% 
IX 14 12 158 41* 
2J0 10 52 IS 43% 
OX 119 26 03 5% 

IX 19 2 13* 

292 79 13 77 31% 

192 9.1 13 414 14* 
2X 17 17 123 30 

ax 103 15 403 9% 

006 1.1 72 613 7* 
31 1282 u39% 
18 6771135* 
005 04 36 2230 13% 
024 09 24 12S6 26* 
1.44 19 16 1338 36% 
024 07 21 45 34% 

OX 19 22 748 28% 
294 22 71 1483103*1 
IX 29 13 037 4$% 
IX U 17 5086 88% 
044 7.0 0 35 5% 
10 13 ' 

OX 15 13 1854 


♦% 


Home 5ttap 
HnsMI 


OX 107 
0B3 103 
097112 
097109 

048- 19 30 24 12% 

057 1.9 16 773 31 

10 977 22% 
IX 20 27 790 X* 
095 19 51 19 97* 
016 04 4111J03 43% 
59 119 11 

030 09M 4674 21* 
1 HOmpbi tty 006 49 0 13 1* 
27%MririUACRx 024 07 74 84 33% 
OX 29 14 1463 34* 
OX 12 9 70 24* 
31 1552 27% 
OX 22 16 33 22% 
006 04 38 6497 16 

_ _ OX 29 24 3805 10 

3% !* Harm tar 7 62 3% 

53 36% HOOtyttan M on 2.1 18 335 41* 
8% I* Home Feu 048240 0 354 3% 
39*X*Hahdlk IX 15 13 358 35% 
27* 20%mndIOo« 238 9.0 M 26* 

13% 10* Itarat 016 19 25 6 11% 

25% 11% natal Ffc* 012 05 21 405 73 

19* 14HrityCBp 034 22 70 854 15* 

a* 17M0«aSup 020 U 15 B7 1B% 

23% 15% Humana 1495820 42 2874 «23% 
16* 15%HnWBC OX 22 17 99 16* 

11* 4%naflngdon 032 45 8 ITS 4% 
10% 8*H|pritana 09611.6 225 B% 


118% aHatMa 
46% 29* nueOec 

a a 

37^ _ 

a 30* Hnywrf 
a* HrcMantd 
X* 18* HcrznWn 
23% 18* Hamel 
16% 12* Hanhara 
13* 8* HriMar 


-I - 


22% IBP tie 
13% BCNRtara 
31% 21* Pita 
11* S* RT Prapty 
5 ZCFRa 
30% 21* Idaho PNr 

43 33% Wax CWC 
29 24%«PW442 
48*" 41* Vw7X 
X 23 ■ Pr4_08 

»a**Pr« 
a* xiPiix 
38% 29% XiobCnj 
47* MKVdWPA 
52 46* BAnARPB 
22% 18% Bw 
502 44 0 

49* Sa * bag FerB 
12% 8* knoM 
18% 15* iHkneu 
31* 21% km 
97* wfadprx 
30* MknaAli 
23% 13* tad Bier® 
li*tadanftnd 

10* kmraeco 
. 32*lngari 
42 29% US 
9* 7%e«rsva 
3% 1B%lnt9«* 
B* 42%UgnFn 
9% 3* krtaOcB 
3% Adtao* 
12 % 30 kfler Heg 

20% is* tatarcap 
3* 1% Uakn 
71% 51% BH 
a* 13%kaFra8 
44% 35%KFFx 
19% 15% tdMril « 

‘ 60% kkPap 

w* a*npub 
fr% 7*M8ratlki 
30* 21% WaPw 
8% 4% kKTAN 
34 17* UGemeT 
23 13 tat Been 

3% 2 kt Tectm 

!4* 42* ionics 
24* 19* total66E 
x% 26* Ipnla Entx 
11* B%twtara 
12% 6* taly Fieri 
a* BalCorp 
1D4* 78* in 


45* 37% JfffwPF 
X 37% J Itrer L 
14* 7% Jackpot Gn 
18% Jacobs Ehg 

14% a jama & 
3 * Janerarqr 
4% 9% Jap Ok 
is% <3% JeflP 
IX 98 Jra»P798 
81* 44% jranCn 
52 3B.k*lU 
13* a* Jrinrim 
20 15%JaaHBita 


a* 21* KLM RDfcU 
20% 21* raiBtagy 

' 58*KnCt4J5 
23% XsoattaPt 
9* a* KenebSv 
4% 2* KambSera 
a* 18%'KBnCrP 
30 lAKanCjSn 
!% 33%«<neasSta 
fi . A tbuter 

1TX MKatylndx 
i* 13% Kutatailft 

I* 20% ityriai • 

10 8%HB*iAuaa 
SB 47% Krtogg 
27 19% Krtwood 
11% g Kamo uah 
84% 35% Kenata 
- s%Kan»rra 
FtaaeaurtBr 

.. . 11 KampriWcn 

13% 11 Kaaea-Str 

20* 21 toman 
32 19* KarrGI.7 
51 -XteriK 

17% laKeyrinCon 

29* i8*KayaBka 
X S1% KMQ 
2* i*KtaantaaQn 
*4% 33* KogWd 

21% 14* rcwt 
01 «*Knftdda 
IB* 85tt«(POup 
S* 1 


020 05 2Q32BS 
13 B26 
298110 4 67 
084 09 12 477 
11 12 
IX 70 11 75 
20 10 
221 89 4 

178 84 5 

204 89 5 

110 05 1 

4.12 79 6 

OH 18 14 2337 
3X 70 3 

IX 70 2 

OX 41 23 BOX 
1.77 14 14 912 
IX 14317 1 396 
oa SO 3 434 
ix 04 a 

OX 1.3231 4434 
7X 87 71 oa 

IX 69 469 

1.08 03 14 137 
OOS 03 191 

13 844 
074 11 22 1584 
OX 10 X 1267 



10% 10 
13* <15* 



■% 


5 St 


IX 1.4 17887 

20 927 
IX 29 23 1692 
ax 49 a 114 
IX 11 33 3527 
OX 1.7 19 097 
012 15 4 4 

108 05 13 132 
0 496 
012 09 a 5362 
67 155 
10 342 
24 X 
IX 17 10 319 
112 72 14 148 
007 07 SO 
007 09 137 

85 183 
IX 14 11 2782 


- J - 


on 


org - t * 

St t 


9* IS* 

33* 32% 

84 82* 



- K - 

ok 19 a 199 
OX 17 16 344 
400 7.7 zX 
120 01 II 53 
094 11.4 2100 

6 290 
IX 71 12 348 
IX 5.4 7 

090 09 16 6X 
010 -19 16 303 
OX 29 7 5 

030 12 14 1843 
040 1.7 133 

072 70 03 

144 20 19 3329 
(LX 20 9 IO 

007 94 139 

OK 10X7 7342 

aso me mo 
aw oo 410 

087 79 -205 

002 7.0 54 

058 ?1 "e 02 
170 84 nog 
IX "11 X 1534 

119 9 

074 39 17 316 
ITS 39 18 1528 

003 17 8 

14 592 
048 5.4 10 7259 
1.48 89 10 1130 
0.10 05 X 390 

008 1.1 46 22 


3 


27% a* 27% +% 
28% 34* 20% +* 
5B*dSS% 58% 

24*' 23* 24* +* 
9* dS* 8* 

2% 2%- 2% +% 
21% 21* 21* -% 
18% 18 18* +% 
X 35% +* 
8* -% 
9* •% 

14 13% 13% -* 

23* a* a* 

0% e% g% 

87% £6* 67% +1* 
24% 23% 24% +* 
9* 9% 9* 

01 60% 80% +* 
8* <8% 8* -* 
7% 4Z_7>n +% 

n% n4a 11% 

11* 11% 11% -% 

&£?!!& a 

1* 1% 1* 

38* *7* 38* 

1?% 17% 17% 

40% d4ff% 49* < 

18* 16* 18* -% 
7% 7% 7% ■* 




n K Ik . Ctan 
Hr K I <0h ty taw Quota 

091 006S3 518 26% 2Q X% 

Kroger 18 3S80u26% 7»t 28% 

29* 24* HI Energy 1.04 89 12 05 Z7% 28% 37% 

19% 14>a Krtttwn Co 000 4.1 50 52 IS 14* 14* 

153* 104 Kyocera CP 0X 09 84 7100143*143*143* 
20% ISKjwbdi OX 20 12 SBU20* 20* 20* 


37% 10* Korea Fd 


:S 


- L - 


10* 5% LA Gear 
41 33% LG 8EB1 X 
38% 19* LSLg 
38% IS*UOU«a 1 
40 2S*laZBoy 
25% 20% Laclede Hi 
a*ia%ijj»DB 
8% 4* Lanaon & S 
a* 16% Lendi End 
13* 10* LaMar bd 
18% 14%Lsaranri-. 
38* 31* Lea Eniarp 
29* 18%USBttoon< 
«9* 33*UsoFI 
10% 14% ukn 
a* 14* Lennar Op 
4* 2% Lesley Fay 
2% 1% (tone In 
11* 0* Uberty AS 

29% a%uiatycp 

61% 47% Lty 
a* I8*unm 

44% 35*LtacnH 
20* iBLKnltfd 
70 57lonri-P® 
74* X% UBO 
20* 19* UiCI) 

5% 4* LL&ERHy 1 
TO* 58*LocWri 
45% 3SLodKaOa 
102* B4* Loews 
33% 25%ltyto n 
9* 4% LoccarinnCp 
24* 15% ItfHl 
39% 31* LngsOr 
23% 16* LangrtawFa I 
42* a* Unt 1 
a 28 UM8116 

45% a%Lcuu. 

48 a* UMri> I 
39* 36* low 
21* 14 LTV 

6* 3* Lima 
38% 29% late* 

24% 21% Luton Crt= 
39* 22* Udara to 
36% 27% LUkrtOca 
34 * 20% Lydrt toe 
32% 2D%Lynn)elP 




12043 33% 

I 5743 u39* 


098 18 24 
098 19 17 
IX 19 46 
048 19 25 
30 

090 29518 


nil ... 

p 
28* 2 

a?., 
a a 

57* 57* 

37* »* .% 

22* a* 

s% S% -% 
6OJ2 SS^B % 

42* 43 +% 

88% 88% -% 
a* 29* +% 

4% 4% ■% 

'A 

30 30 
43* 43* +* 

± 

35 38% +% 
20 % 20 * -* 
5* 5* ■* 

30% 31% +1% 

a 23 
34 35 ♦* 
33% M% . 

34 34* +* 

31 31% ■% 


9* 4% MAOom 
52* MMtaC 


65* 


40* 33* M« 

7% 5MDC HMga 


7 234 
194 11 10 411 
172 48 14 475 
OX 19 11 <38 
a*a%MWRn' 1.60 S9 13 
9* 8* UR Dona 074 89 
7% 5% MFSGot Mr 000 01 9 
16% 13% MO Plop a 0X5.7 20 
a% Mte Girirt 
" Macftfl 


17 


20* 13% 

16* 12% ttaffnaC 
16* l2%Uagnetth 
29% 17% HaorsaF 
X* 28% Iflncfcr 
32% 24 MnHK 

29* a* Harare 
a* 16% Manpower 
5* 2* Mmua Loa t 020 04 20 
10% 7Mm«a 
25* 22* UmriePT 
64* 55Mapco 
»* 15% Mutter x 
s* 4Mrtna 
23% 15% Mark W 
32% 2«%Mam< 

88* TOHAMcL 
29»j 20% MBtriM 
51 40% Mated 



39* 23% UsscdC 
JI*Mm7Mr 


77 
593 
329 

TO 15* IS* 

292 31* 307 fl 
IB 1077 19% 19* 

36 1848 17% 17% 

19 259 13% 12* . _ 
0 02 0-1 274 24% 24% 24% 

ISO 1.5 26 2957 a* 32% 32% 
100 17 23 13 a a* 27 
009 03 E WE 28% TO 25% 
0.10 04 TO 069 27* 27* 27% 
67 3% 3 3% 

1X219S 318 8% 5* 8* 

inrrr.r 137 a* a a% 

IX 1.8 13 154 55 55% 56 

1Q0 4J 17 4510 a* a* 3* 
1.15 21.4 5 90 5% 5% 5% 

011 05 18 741 23 a% a* 

028 1.0 anas 29% a* »% 

190 17 17 1538 78% 77% 78% 
7 503 25% 24% a* 
OX 12 ID 1851 44* 44* 44* 


27% 

& 
17* 1 
188134 


072 39 18 4427 24* 24 24% 

0.12 1.0 12 2242 12% 11% 11% 

7%M33smutPt 094 0.1 82 7* <7 7 

33 a* a* 
a 16% 16% 18% 

32 181 160* 161 


3 

A 

t% 

-% 


S MriSd is 

UatSUSMIBX 107 07 99 


28* 20* UallBl x 
45* 33%KzojaPf4 
5% 4%MrioaE 
45% 37* MayOSt 
20% 14% Maytag 
27* 19* MBNA Cop 
27% 21% MoQrichy 
33* 28 McDenn20 

31% 29%ttfiemt2.6 
16% 12%Mc0rilta» 
31* 25% Mdkdd 
124% ICQ* McOnOg 
77* 62* McGraM 

S 52* McKean 
39* Monty 

22 17* Mnautaiy 

" 

52 


024 09 35 2952 27% 26* 27% 
4X107 IB 37* 37* 37* 


040 08 fl 824 
1.04 28 14 4356 


«* 


000 3.1 33 7796 18* TO% 


60* _ 
<!$3g 


0» II 17B498 a* ». 

044 1.4 21 1» 24 a* 

120 7.2 9 30% 30% 30% 

200 80 2100 29%d29% 29* 

042 20 S 10 12% 12* 12% 

044 09 188312 26* 28* 26* 
IX 14 12 14TO 116114% US* 
242 34318 748 74 73% 73* 

IX 1.7 TO 3387102* 101* 101* 
IX 1.9 X 3473 52% 51* 52 

ox ii x ob a* a* a* 

293 02 15 422 32 31% 

041 09 13 2867 u53 51* 
Mamas Op 000 19 a 209 

a% MafcnflkH 2X 90 45 27% 

52*MaMk 2.70 49 123094 58% 

IX 44 11 1304 35% 

0X114 IX 8* 

1« 15 17 3885 43 

IX 3.4 1819748 35% 

043 24 a 14a 14* 

072 10 26 144 48* 

092 17 5 7371 34% 

OX 44 0 488 " 


% 30% 

!* 34* MdUnc 


10% 

57 X*MritSl 
38 28% Merck 
19% 13* Mareary I* 
49% X*Mri» 

45% 34*MnLyn 
4* 1* MriiyGoRd 


41* 41* -* 

X% M* +* 
14% 14* 


8% 

5* Men 



2 

488 

3% 

2%MaablTet 

024 

7.1 

17 

3/ 

10% 

9 Aka®* toe 



15 

noo 

55 

45MrtrE30O 

3X 

07 


no 


4% Mebflnl 

0.80 

14 

11 

131 

»% Medea Fd* 

U.E 

10 

9 

490 

10% 

7% Wfl 



8 

noo 

3JJ) 

2* Mckabar 

ax 

Z42S0 

19 

10* 

4% MkBnfSaSit 

002 

04 

19 

81 

0* 

B% HdAmR 

088 

90 


27 

57 

58%MBpr 

080 

1.1 

48 

613 


. M* - 
1* dl% 1* 

§ § S 


a* 

<45 


9* 

45 


57%-40%l 
27 18* Mirage Res 
22% 18* MtcMEnA 
a* 17% MfcMEnB 
7* 2% HHCarp 
26 akSsrii Bkx 
99% 728m 
a* 9% Mutate 
12* 9%MonMch 
10% 11% MoAAuabi 
n*72%MMno 
10% 8* MaitEdbn 
21* Menton Pd 


a* b* 

§ g 

54% 55% 
a* 21^ 



1.78 34 19 3837 __ 

37 2382 21% 21* 21* 

048 17 72 442 17% 17* 17% 

003 3.1 2TO 17* <17* 17* 

14 ia 3% 3* 3* 

007 04157 X 25% 24% 25% 

3.40 43 J 53009 79% 79 

7 1067 14% 13% 

040 11 13 4 9*”" 

0.18 14 10 57 

. _ _ 208 11 19 4449 

10% b%MvtEdto 070 OO Z 26 8’ 

2S% 21* Menton Pd IX 89 11 460 23'. . 

X% 18% HortyomSt IX 04 8 97 16* <16% 18* 

2fl% 18* More Crap OX 5.1 26 306 18* 16% 18% 

72 59* MtgnJ’x 172 49 7 2807 80% 80l 2 X* 

11* 9% torgenOran 1.18124 46 9% 9* 

M 70M*wJPPri5X 79 — 

13* 12 Morgan Kgn 042 19 8 

9 4* Hogan Pr 4 

80% 55MrfldS IX 19 B 

29% TOMrarkn OX 49 53 839 

— — 044 19 8 2948 

028 05 1412540 

0 B 

003 04 
072 79 
085 7.8 
082 OO 
IX 10 22 2381 
042 1.7 19 26 


% 

3 • 

3 


MM 
Mtg&Etari 
.tUnOp 
B*toftnrr 
8*Mta*tylx 
13* 10 


243 10% 10* 10* 
43% 42* 43* 

_ . _ 12* 12% 12% 

27% 15% MytanLabl* OX 09 2S 1861 2S% M* 25^2 


47% a%Mrth|0 

* 9%r ” 


13% 


iMyenLE 



48 35 MBBBKKp 

85% 58% NCHQip 
03 48* Ndoco 
37% X* NSCDOi 
3 

* 

57% ... 

42* 35* N-nkMWi 
48% 37% MriAutra 
29 Z4MC8T 

a 15% mom 

7% 4% HM Brian 

,5 ANriEnar 

38* 28% Katftalx 
1.0* 13* HtaCG 
19* 13% KaMad 
48 39% Nri PraeK 
24% 15% MSaan 
28% 24* MSera 
14 7% Ret Stnd 
28% 12* Nksu 
54* 49* RnWarfla 
a a* ISO Bn 
18* l3*MrirranMv 
14% 7%NatMciliEq 
24% 17* Narada Pwr 
5% 4 Haw A» H 

39 20% NEngS 
13% ll%N8erG , many 
27% 20%Ha>JayRii 
24% 20%HawnriiR 
30* 18% NVBEO 

a% ia* Kama 

17* 13% Martini 
. 50 37* rtwmmC 
48 37%Nwtmni 
61 47* Hon Cora a 
100 TO* NmraCeytat 
49* X MagMlB 
20% IZMapM 
00% 48* MmB 
33 20%MPSCDM 
11% 4%HLtod . 
32* 


40 32* MinEPI 
7% 4% Man Res 
74* 58* Maori 
38% TONarakHinr 

aar - - 



-H- 

IX 15 14 205 
IX 19 15 24 

098 1.1 45 81 

OX 19 18 492 
072 11 6 126 
032 15 4017 

IX 39 10 8098 
295 09 18 511 
2X 07 13 27 
IX 4.3 11 3378 
044 10 a 

39 as 

S X 
IX 50 13 152 
112 1273 
048 1815524896 
IX 4.4 16 250 
11 8232 
IX 4.1 17 806 
8 8 
1 1235 
SX 119 49 

IX 40 11 1200 
OX 10 42 300 
X 548 
IX 79 11 1S7 
054111 438 

200 70 10 328 
oi2 10 m 

IX 70 12 83 

104 03 a 318 
120119 8 930 
040" 19 101084 
0.40 17 42 29 

048 1.1 40 IX 
048 1.1 30 2572 
017 00 15 968 
3X 40 2 

3.00 80 noo 
1.12 8.5 7 4885 
080 1.4 13 2845 
1.44 S3 11 1888 
OX 18 8 119 
015 09102 2219 
OX 4.3 70S 

100 8.7 noo 

55 131 
ix 11 15 aso 
a« 1.2 20 1158 
aio 0.8 24 86 
a4o is is ai 

125 68 

1.76 &a 13 3884 
2*4 80 19 572 
8 110 
IX 35 22 483 
IX 5.7 14 20 

0.74 30 II 2574 
004 12 854 

11 6840 


48 47% 48 

82 «1* 81* 



30 ... 

15* 14% 1J 
17* 16% 17* 
43% 42* .. 

28% 28^ 26* 
11 * 11 * 11 * 
1*% 13% 13% 
50* 50% SOI 
29 2 r 

14% 14% 14. 
14* 14* 14* 
TO* 20* X* 



tttfl taw A><* Ota 

2T% aimrow are 

17* 14* Hu ca Man 107 

18% 15% HUNT Mill M3 
72 48* klicor Crap « 018 

a* ir* ru cm i so 

17% 14%MnCri 103 
13% 1 !*NUMddCI 077 
13* 11* MnDrii Ml 082 
17 14MNBMIM0 1.12 
12 B* Mnenn NM 067 
16* 15%MnrtnNP > >0 
18% 13% Hu r uun PP in 
16* 13* Huron r I 1.13 
M% 15% Hymagkc * 0 40 — .. - -- - 

41 % 33% Itynax 1 136 8 1 27 55W X* 


IMP Ik 
ta I into Nty 

06 4 30 a* 

70 16 15* 

7.0 » lb* 

03 49 1SS0 71 
68 II 312 18* 
14 14b 
24 II* 
05 11% 
173 14% 
70 10* 
T8 IS* 
287 14* 
296 14% 
3 17% 


on. 


70 

8-8 

69 

79 

B4 

89 

7B 

8.0 

20 II 


a% 23* 
15% 15* 
18% IB* 
08* 69% 
17* 18* 

1 4* 14* 
11% 11% 
n% i«S 

14% 14* 

10% 10* 

19* 19% 
14 14* 
14 14% 

17% 17% 
38% a* 


119* 10% OHM Cm 
29% 15% ft* kto 
29-3 19* Oriomod twOM 
22% 15% DcOtP IX 
26* 18* OfluDepot 
24% 19% Ogrin 1 a 
18 14* Ogden Prat 
a* 16* OldaEd 1 » 
63 SQ* OtdoCS4.4 4 40 
S3* 5OffldoE406 4 58 
97 aOOtdo£704 724 
07* 810hleE7X 7 M 
37*a%QM3nG8£ ZB6 
59% 48 OBnCp 2X 

40 26% Orankare 0 IB 
51% <3* Omnleraa 124 
17 13* Onekla Ltd 048 
20* IS* Oneok 1.1S 
28* 22% Qopenn Cap 2X 
<1% 8% OppririlMS 094 
8% roppm urn 062 
, 0*z 5%0rangeX 
41% 29* oraagatet 2.S8 
37% 15% OroQOnSu 058 
3% 1% Cber* Exp 
34*X*0rt»Cepx OX 
a 13% O.Y*&> 040 

25% 18 OUtaM 040 

a* 17* (VsSn OX 
17% 13* OweraM 0.18 
48 30% OwettaC 
34* 24* (Mere M 072 


- o - 

32 244 12 11% U% 

18 495? «* Z4% 74%. 

03 19 3)2 a* 24* 3% 
4.8 32 8329 21* 3>j 2l 

38 7815 2B% TO* TO 
80 14 802 21% 20* Jl 
14 IX 17% 18% 17% 
7Ut9tt5ti59 19% 19 19 

65 rSO 51% 51% 51% 

89 :I0 51% 51% 51* 

69 1 81% 81 01* 

90 2 92% 82 82 

79 (0 IKK 34 33* 33* 
3.7 IS 418 59% 59% 59% 

04 42 1X7 n40% 39* 40% 
25 18 349 SO* 50% SO* 
15 13 21 137, 13% 13* 

199 17 16% 1C* 

09 22% 22% *2* 

117 9% 9* 9* 

5 7% <7 7 

10 5% S* 5% 

.. . 217 30% 29% 30* 

12 » 1163 17* 17% 17* 

5.5 2% 2* 2* 
27 7 133 at mg* in 
19 4 5451 14% 013% 137. 

15 73 156 a* a* a* 

18 44 00 21% 21* 21* 

11 208 Id* 16% 16* 

13 i3i2 34% a* a* 

IS 13 42 IS* 25* »* 


88 11 

88 II 

98 

89 

14 
B.4 9 


a 

4 

** 

1 

+% 


I 


■ii 

1 


- P - Q - 

IX 3.5 10 176 36% % 35* 

1 28 4.9 5 4418 28% 25% 25% 

1.12 18 14 403S 40* 39* 39% 

OX 50 5 90 10* 10* 10* 

124 5.5 12 131 a* 22% 22% 

IX 4 1 34 14* 14% 14* 

0.12 04 X 702 27% 28% 27% 

IX 6.4 12 2561 17 18* 18% 

IX 0.0 10 1200 21% 21% 21* 

196 80 9 4X7 23% 22% X* 

118 71 tyiaili 31% 30% X* 

048 03 3 752 14% 14* 14% 

007 H a 2360 17* 16% 17* 

OW 36 18 1541 a* 22 * 23* 

032 09 a SO 34* a* 34 

117 133 S% 5% 5% 

1 X IS 29 771 J9T» 39% 39!» 

5 307 r* d1% 1% 

0X100 87 a 7-a 8 

14 52 3% 3* 3% 

1.52 8 0 10 4465 25 % 24% 25% 

4.X 7.8 2 57 57 57 

IX 33 14 4015 51* 51 51% 

1.87 63 9 B99 20% 19% 2d 

IX 7.5 55 29% 29% 29* 

3X 04 12 710 47% 48% 46% 

IX 89 11 327 28% 25* 3G* 

017 05 04 1356 34% 34% 34* 

0.72 20 1611115 33* 33 33% 

0 68 12 X 12S6 31% 31% 31% 

21* 12% Parana Fra a 1.30 9 7 11 61 13% 

8% 4PrarafcmBax051 104 io X 4% 

6* 4% Any Omg 3 38 S g 

X* 16* Pet IK OK 18 18 3135 20% . . 

X* 27% Mite 080 18 41 41 28* 28* X* 

29% 23% Patna OX 08 X 356 X* 25% 25* 

J0% 53% Pltar IX 27 70 SIX 70% 68% t»% 

65 47% PrielpO IX 17 23 0263 G3% S1%i 62% 

19% 17% PMSubtal 112 01 14 33 18% IB* 19% 

62% 47* Plfttar 3 30 54 1S29110 51% X* 81% 

35% 25%(Wt 1 12 33 33 5437 34% 33* 34* 

39 17%PMVH 015 07 13 1269 21% 20-% 20% 

23% 19% PtadnonBC x 1.01 40 14 146 21% 2>% 21% 

10% 7% Plarl lap 0.12 1.5 14 425 5% 6 5 

12% 9* PtyrtmRfl OX IS ffi 11% 11 11% 

6% Pffcrtms P OX 06 11 235 X* 9% 9% 

16PMWCP OK 4 5 9 1945 18 17* 17% 

" Plan HX« 2.12 92 

. 8% Pioneer Fax 0.15 17 
14% 1i*Pianta 1X9 3 
350 303PVneyl12 112 07 


43* 33PW 
31% 2S*PHCFn 
42% 34* FPGta 
14* 9%PSDraa 
26% 19% PS 
18% UPacArttrc 
X% 2l% Fee Serin 
19% i5%n«ri 
24% 19* Paint 
35 ZZPacGE 

58 XPTdesx 
19* 14% P1MH 
X* 13% Pal 
25% 18* PsiiriE 
35% Z2%PBAEJM 

6% 4*PiriDr 
45% 34PBMO 

2% i%nmn 

10* 7% Patriot Pr 
3% 2% PMUiCrp 
29% 73% PccoEn 
« XPna#L45 

59 47Pantty 
27* IS* Peraft 
31% 29* PranEet 
56% 45* PlWJfl 
32% 23% PeopEn 
35%7S%P9pBDrsM 
41% X* Ptyrico 
39% 25%Pluian 


6 X% X% 23% 

IX 9 8% 9 

a n%ati% 11% 

nm 2* 318 296 

1 04 19 15 1519 35 * 35% 35% 

OX 07 22 XI 29% 73% 28* 

28* 19* Ftxraltam OX 1.2 55 4570 25% 25 25% 

27% 19% Plains FU OX 09X61194 20% 33% X* 

13 6Ptyl»ya 10 74 8% 8% 8% 

32% 21% Pten Cm* U2 70 12 826 24 22% 23% 

24* 15% POgoPmd 012 08 27 3575 21* 20% 21 

000 1.7 24 KI9 35% 34% 35% 

<5 IX 40 39% »% 

040 09 4S 213 43% 43% 43% 

078 4.1 10 440 18% 18% 18% 

13 221 uT5% 14% 15% 

001 0.1 X 14% 14 14% 

1.44 15 34 2302 u41% 40% 40% 

49* 38PSWI IX 30 31 IE 4T% 41% 41* 

20% <8% PDGP 1 68 80 9 474 19% 19* 19* 

008 M 22133111124% 24 24% 

024 OH 14 532 25% 25% 25% 

OX 1.9 8 6059 42% 40* 42* 

040 1.7 X 332 24 X % 23% 

21 37 13 12* 12* 

2XS60 0 4 IJ 9 

ix 13 to 5353 a* a* a% 

002 00 10 IX 35% 34% 

006 3.4 54 54 7% <7* 


48% 34% Pttnejfl 
31* 21% Pasta 


35% 29* PcW 
41% 2S*HcyMi 
ijB 37%FotyDtaD 
!% 17* Pope 6 TM 
15 io* Ralectac 
15% 1 1% Pratugri F 
41% Z2*R)toh&H 
49% 38P8W 

. 16% ROES* 
24% ib* Pnab 
28% 18*PfedJtao 
46% 33^Rvtt>h 


28* 17* Pwrin r 
15 11 Rlmk 
1* % PitrsoMaLP 

ffl% 5i* Practa 
40% 27% Rgriav Oh 
14* 7%PralirHi 
55* 27% Pr emia 
31* 17%RppTrAai 
4% 3%ftwp»ir 
46% 38% Prati 
31% 24% PnrUB 
38%28%Pnrtn 
* %PmdR8yC 
X 48P09HV4X 
HJ2 ETOSHV7.40 
99 83% PbSenOol 
IE 01 PhSenr70 
32 24FbS*EG 
13% 11 RriHnAinr 

2 1% PuMctar 
24% 18%RigBtS 
38* 34% RAtzF 


37 3925 34* 33% 
IX 5.7 25 322 18d17% 

0.42124 283 3% <3% 

1.12 15 12 122 44 43% 

104 30 10 X 27% 27 

OX 15 ISM 31% 31% 

0 SO A i 

Z1X 48 d48 

3 M% «7 

nw 


01685.3 
4X 05 
7.40 B.4 
7.15 B.3 
7X 5.1 


2 M* 96* 


116 80 10 3784 28% X% 28* 
13 1269 12% 12* 12* 


1 

104 9.3 fl 
OX 10 19 
024 1.1 7 
an ai 


481 UZ% 2 
441 19% 19% 
19 35% 35% 
959 21% d2T 
152 
119 


21% Rita 

11% 9% PUBWOWI 
10% «* PutanrtBSY 0.75 70 
8% TRdnraUG* OX 8.4 
14% 11% Prirantaver OX 01 
11% 9% Putnam Mn OTO 70 
8% TPrinmMaah 0.89 05 
8% 7%Rjnmm ore a.a 
8% 7* RdranRam 0.72101 . . . 

85 61% OnrivO IX 30 17 6300 77% 76* 7B» 2 

16* 12% Outer 9 040 20 29 IE 14% 14% 14% 

Z7* 17 Duane* 005 11145 X 28* 26 20* 

25% 21% OtartAMO IX 4.9 X 24* 24% 24* 

13% IZQubiIUMF IX 9.7 34 12% 12* 12% 

35* TOQuestar 1.14 4.0 131388 28% 28% 28% 

38* 23% thick RTy 0.48 1.9 6 27 X% 25% 25% 


K't % . 

9* 9% 9% 
7% U7 7* 
12 11 * 11 % 
B* d&Tj 9% 
7* 7* 7* 

7* d7% 7% 

7* 87% ^ 


8 5% RJR Mi 

27* zo%rajcapx 
15 9%R0CTehm 
4% 3% HPS - 

19 13% r 


4^aRaynMt 

13% Quart* ADS 


48% 33% RftrtoP 
41% 33* Raychn 
18* 13%1tyjbBeaF 
X% 80% ftrythn 
47* ty% HevtaraO A 

18* iBRariEem-a 
IS* 6% BecoffinEq 
38% 28% Rood* 

Jl 0.11 Regal W 
B* 4% Remnca 
35 28RapHdA0R 
152* 43% Rapub N V 
73U 14% Roar 
17* 3RlKmty 
28* IB* ftynflA 

a 

21% .. . 

39% »% 

21% 15* 

5S 2 RM Tt 

23 12* Robert Hri 
20% 19% RochGE < 
25* 20* FtanTel 
8% 5* RocM 
44* 33% RetaMl 

68jj 53* RehmH 

’S 81 ! 

30* 23* 

14* 11 RsBram 
9* 6% Rowan ■ 
17% ZS% RoyBlricot 
1«% 98% HOutcn 

23 15% Oaks* 
15% 12* Rusaflwiia 
32% 24AiseCp 
=4* 11% Runt 

28 21% Ryders 
25% 15% Rktand Grp 


- R - 

11423152 
OX 20 42 170 
015 1.2 583 

032 70 62 in 

207 

IX 19 12 1798 

033 00195 1017 
032 10 8 757 
TX 13 121838 
1.40 30 18 ,052 

48 870 
10 Mil 86 
4 905 
OX 08 14 3X2 

15 noo 
032 40 7 2200 
003 11 17 601 
IX 30 8 44T 
22 313 
12 12TO 
00* 1.4 8 375 
IX 10 11 1000 
IX 01 .3 

1.12 19 12 2767 
OM 19 1* 1028 
0 118 
X 941 
1.70 05 10 581 
001 30 9 233 
06010.9 5 844 
IX 30 12 24S1 
18 IX 
1.48 18 32 2X4 

11 847 
0.10 1.6 X 1198 
OH 20 X 57 
013 1.1 ID 273 

181 717 
139 9.1 42 

4X 4.1 19 4)56 
1.15 90 27 

0*5 1.7 » 1458 
DX 10 IB IE 
080 40 23 90 

040 1.3 3 473 

12 143 
080 13 17 3466 
080 30 41 208 


4'i 

u!9 18% 
41* 41* 
41% 40% 
15* 15* 
94% 84* 
44% *3% 
8 % 6 * 
18% 18% 

ii 

3D* 30% 

18% 18* 
25% 24% 

57 58* 
16* IB* 
X* 37% 
20 % 


4* +* 

19 . 
41% •% 
41 +* 
15% ■»% 
64* -* 
44 
5% 

16% % 
7% -* 
X* -* 


5? 

»% 

«% 


i 

SE4 

2S% 




a 

a 

5* 


Si 


19 

20 % 

22 

5*2 - . 
34% 34* 
5% 5% 

57* 58% 

ft ft 

a* 5% 

25% 24% 
II* 11* 
F% 7 * 
28% X* 
107% UK* 
12 11% 
28* 26% 
19 18* 
14% <4* 
J0% Xja 
12 % 12 * 
25% 25* 
18 d!S% 


+* 

i 


20 % + 10 * 
a ♦* 
5% +* 

IS 

57* +* 

0* rj* 

a* 

a% *% 
11% i% 
7* 

,ss 

■8 . 
19 +% 

«* , 
30% +* 
12% 

2«% *!» 
15% -* 


£ 


X* 18* S Atauna ox 
13 10*SCORXCp ox 
27% 18* BPS Ta IX 

14* !3*SaUMflB 101 
20* 13* SKKH OX 
17% 11% 

18% 13% 

7 ’iS 

62%47%SiSiw" OX 

30* 25 SUNUP IX 

45 J7% SffUl X IX 


47 17% 
X 11% 
18 X* 
14 13% 
888 15* 


- s - 

40 84 
3.2 23 
4.9 3 

07 g 

10 14 _ 

190 14% 

. 417 1B% 

29 6127 u7B% 
457 U7* 
04900 H 57* I 

08 14 11 28* : 

3.7 4 1211 40% : 

Continued i 


ax iz 9 


17* 17% +81 
11* It* 

?«* 28* 

13* 13% ♦* 
15* 15* ♦% 

14* 1*% 

18* 16* +* 
29 29% *1 
r 7* .* 




FINANCIAL TIMES MONDAY OCTOBER 3 1994 ★ 


NYSE COMPOSITE PRICES 


41 


NASDAQ NATIONAL MARKET 


“ Bm 

6b * 8 tfio» Hfb Log i^«. 


atm 


Cootini»d from previous page 

9% SSsUntOp 7 03 5% 5% sS. 

«5 ?**"» 1* *3 6ZS8 3Z^ ali a 2 

I3% n^SattamBf 032 is as ta% 124 12% 

38*2 


_ ^ 38% Mom 
25 17%M)gB£ 

10 7%sarafo£Ri 
177* i3%SfeGd 
losihSowac 
28% 18% SOW 
* IB’s 


M*u 5 2937 36 s * 
102 70 10 436 1 - 
0.16 1.7 9 2236 
6127 

2.00 0.4 15 70 

010 0.4 12 2789 
0.04 26 15 5688 _ _ 
50% 42%SaonCnp 202 14 11 385 44% 
20% 12%Scsapx 1.00 7.7 B 6120 13 

31 132uii% 41 
204 2.0 » 0382 71 S. tq 

100 20 22 3845 55% 

02B 0.9 14 2190 20% 

25 38 0 

0.13 03 81 3328 41% 

110 0.0 15 99 16% 

000 10 10 6246 627b 
119 24' 

157 9 
47 


41% 31%Sdw*flP 
71% 54*2 SCBlPI 
03 5O%8MBO 
33% Z3%S*MB(Q 
10% ^fSOMBZV 
45%24%ScW 
16% nseeanaox 
56% 37%S*®P 
20% 18%SattM# 021 OB 
12% 9% SaUNEaF 0.18 10 
>8% 13% AOS U 70 42 



16% 16 
61 01% 

is i6% 


16% 14%SeC1.4M5 1.46 02 MOO 15$ 15$ is% 

32% 26% Swam 000 20 38 5360 30% 30% 30% 

29% Z£%£eapdBi 30 922 23% 23% 5% 

36%20%SMWM 34 138 32% 32% 

55%42%SmR 100 33 7 9080 40% 47% 3 

13% 11%SS%mSeli 034 73 90 1l%<ni% nk 

39% ZBSessorrral 022 06 35 1291 34% 34% 34% 
0.60 23 B 00 27 26% 26% 

050 13 17 10 32 aa » 

042 1 0 20 711 25% 25% S% 

002 10 13 196 25% 25% 25% 


39%2B%SeqtaA 
40% 2BSHBOB 
28 Z2% BeraCp 

28% aSHWr _ 

25 13% Shew tad 022 15 17 4043 14% 14% u£ 
2S1B%SwMNlxOBO 35 19 4730 21% 20% 5n% 
14% 9%SMbyU 028 25 20 11 9% «% $% 
56%SMn> < 107 46 21 3405 67% 88% gj& 

056 10 16 1566 3T% 31% 31% 
9 698 14 13% 13% 

O10 07 15 966 13% 13% 13% 
1.12 50 11 175 10% 19% 19% 
1 MOO 7 7 7 


70% 56%SMI7 
35% 28%SwW 


f __ 13% Show* 
22% i3%ShM(nt 
20% 17% Stans pk 

34%S0WBnk 
16% Sbcgnfir 
11% Stator 
5%Staterx 
24% 17% Skykra 
5 3%SLMs 
6% 4%SBttCm 
17% B%MMn 
55% 26%S»cM 
32% 23$ SXBGcM 
21% 16% SOto « 
26 20% Smndar j 
44% 33% SnpOnT 
21% 17% 5B«er0i 
34 23% Sotocftnn 
34% 2t Saw 
63% 49% Sony x 
19% 11 %So8k*jb 
46% 40 Sane Cw 


100 20 11 4075 35% (£14% 34^ 



33 4374 

1.12 9.1 33 74 12% 

016 24 21008 6% 

046 2.4 10 167 20% 

006 15 15 11 4% 

020 4.4 75 100 4% 

1191175 15% 

056 23 16 67 33% ... . 

1.17 30 2183 31% 30% -5 

052 21 76 7621 n24% 24% 

050 21 18 25 24% 23% 

100 21 17 505 35% 34% 35% 

036 15 22 164 17% 17% 17% 

27 912 26% 26% 26% 

106 34 101581 31% 31% 31% 

043 07132 198 5B% 56% 58% 

024 10 64 2396 12% 12% 12% 

160 80 8 41% 41% 41% 

46% KSartCaS* 260 00 6 31% 630 30 

24i6%6bJnM 1.44 60 10 183 17%d1B% 17% 

050 24100 805 71 20% 21 

1.20 70 8 40 18% 16% 16% 

000 30 0 440 20% ZD% 20% 

1.18 60 5 7279 18% 18% 18% 

10S 81 11 68 27 28% 27 

J.78 52 67 575 33% 32% 33% 

004 02 21 9314 23% 22% 22% 

082 4.7 20 64 17% 17% 17% 

18% l5%SaufMERQy 024 15 15 253 16% 15% 16% 


M* Ura Start 
33% 22% Town Fd 
9% 5%1ttqM 
15% lOTMsyPf 
44% 34% Tmfeaa 

18% 10% Tanoaii 

46% 30% Tandy x 

12% 8% TuniMui 070 70 
4 2%TGOnd 


7U. W 
* E 


CtTga 

1 Pitt. ] HB4 


335 31 30% 

042 50 13 S7 B% 6% 

100 65 34 15% 16 

158 45 18 223 37% 37 

3 3632018% 16% 

B£0 14 17 2551 43% 43 

162 0% 9 

22% li^Taw&anj 101 52 14 3471 19% 70% 

«J3%THTO 050 15 25 680 38% 38% 

28% 14% Tempi 080 50 83 1035 16% 15% 

«%34%T*&tf* 109 42 7 MS 40% 40% 

™ 151 2.4 7335070 82% 01% 

»% 43% Tmjpnj 100 15 45 2028 56% 55% 

*% 19*2 TaopBiAh 017 07 ill 

B% fiHTeapBSai* OOO 9.1 19 

8 6%Te»o«Effitf 050 80 1185 

150 30 17 3745 
240 80 10 S3 
29 STB 
006 08 1 515 
008 07 36 1281 
181835 

120 50 13 6394 60% 

029 00 41 243 33% 

100 15 13 4679 69% 68% 

040 20 25 2 20% 20 

308 04 19 0291 33% 32% 

1.10380 1 237 3 2% 

140 20 121181 51% 50% 

212 12 4% 4% 

0» 10 40 19% 19% 

_ 028 09 83 31% 31% 

46% ttThaneoBac at 2 O0 29 2236u45% 44% 
29 22% TNotal 008 20 7 407 24% 24% 

88% 56%TlAfi 224 13 23 142 08 07% 

16% 13% Thom* bd 040 20 37 61 14% 14 

43 29% Thomson Ad 240 50 17 42 42% 41% 


10% 8% LGLRtac 
18% 15% USX U 
45% 30% US US 
17% 12%UBD«H 
31 26% Uftpl.775 
31% 25%U*WB 


1H. H 0b 
Db % 8 10Bc 
000 14 0 
an 30443 3244 . 

100 24 10 3782 42% 
020 1.5 6 4 13% 

1.78 06 4 27 

1,72 80 13 215 27% 


HP 


W 8% 6% 8% 
144 17% 17% 17% 

-- - a 


- V- 


56% 42%Tnan 
30 2S%TappeoPu 
32 20%Tend|M 
9% 4% Ton 
*3% 5%Tarrahdi 
12% 5% Taan 
68% 58% Trace 
39% 29%T«sM 
89% 61 1M< 
21% 18% Texas pee 
<3% 29% TjUf 
4% 7% Tad tads 
80% 50%T«dm 
4% 4TlBcfemv 
14% 14% TM Cap 
37% 24% TM Fuad 



25 19%YkMr 
38% 28% ttteny 
44% 34Tn»tam 
37% 28%TsnUr 
39% 31% TbOken 
8 2% ntanQp 
13% 10% Titan Pi 
4ToddShp 


30 18% Mm 

22 16 scam 

22 16%SWMCt> 
22 17% SftaOl 
33% 26% SoanrtGE 
36% 28%SC7afj 
30 21%SNNr 
18% 15* 


SouOMfflPSv 200 14 10 226 26% 26% 26% 
Spbn Fun 046 11 97 3% 81% 9 

8 78 5% 5% 5% 

012 00 21 IS 14% 14% 

1-20 13 13 112 36 35% » 

100 25 27 2752 38 38% 38% 

040 23 22 330 17% 17% 17% 

040 28 7 28 15% 15% 15% 

002 1.7 13 254 18% 18% 18% 

Of! 1.7120 885 7% d7% 7% 

068 27 12 706 26%<t»% 25 

056 21 16 20 27 26% 27 

1.06 11 20 64 34% 33% 34% 

140 34 19 683 41 39% 40% 

1.40 14 71 41% 41 41 

008 11 20 6 22% 22 22% 

084 84 61 10 (HO 10 

064 23 71164 27% 26% 27% 

020 29 B 72 7 6% 7 

006 00168 324 13% 13% 13% 

121 12% 12% 12% 

30 330 31% 30% 31 

012 10 3 10 8% 

27%9MaMttxO0O 10 27 

On 30 4 7768 . 

21 236 25% 25 25% 

004 50 18 241 15 14% 

16 7221 29% 28% 

40 1810 36% 34% 

038 27 II 1681 14% 13% 

100 43 15 58 28% 27% 
030130 0 10 2% 2% 
1.10100 7 5 10% 10% 1 

65 JHd 

24 4 E 4b , 

040 10 14 758 41% 40% 41% 

100 24 10 848 61 50% 30% 

1.18115 122 10% 10% 10% 

4700 2% 2% 2% 

108 20 13 936 49 48% 48% 

036 11 13 » 11% 11% 11 

016 00 19 119 20% 

094 30 10 2518 28% 

0.16 OB 22 2237 19% 

001 00 74 , 

. , 81 1418 30 

10% 7% Spa cap x 020 20 fiMDO 7 
19% 16%SynawRlx045 24 IB 88 1 . 

24 12% Syntax 1.04 4.4 12 400 o24 

2B%21%9»spj 008 1.4 221861 25% 


12 % 

7% 4%sjmanCp 
18% 14% Spneno 
30% 29% Spring 
40% 32% Gprtat 
18 13% SR 

S 13%SUC0an 
1«%Sdliotar 
7%SWtfaeU 
3Sh SKFid 
30% 24% Stmkn 
37 31% SM&ne 
44% 36%StaMk 
44% 37%SW9ncx 
25% 2D%StanaO 
11% ID StataMud 
29% 24% SttLFeOBk 
7% S^SMoBap 
13% 3% StHlgOwn 
14% 9% Safi 
35% SSSbrigSm 
aswMFta 


21% 9% Sam CM 
27% 19% ! 


1 

-1% 

3 


— lr| 

21 32% 32% 32% 
766 lfl% 19% iPa 


15% 13% Satqu 
41% 25SftTcft 
30% 22%Stnw 
18% 12SaktaRB 
33% 23% Santfloa 
4% SSuMShoa 
11 10%SUiDbAx 
0% 4 Sun Ota Bx 024 40 5 

7% 4% Sw awin' 028 IB 47 
46% 33% town- 
SI % 41 Sn» 

11% 85mHneP( 

3% 1% SuitaM 
51% 43% Saw 
14% 10% Saar Food 
«% 28 Superior 

40% 25% Supiel 

8 11% Sag can 
laSMnHeta 
31% 15% Symbol T« 




- T - 

6% 5 TEST Entarx 020 15 23 140 5% 
43% 28% TCF Fkanc 1.00 25 12 218 36% 
9% 8% TD* COV Si 004 90 18 ft 

4B% 34%Tm0n^A 0.43 T0 45 14 44% 

2% 1% TISIbOO 006 40 2 25 2 

29% 18% TJt 006 17 13 2076 21% 

10% 13%1W>BWcp 080 17 13 7» 14% 
77% 61 TRW 200 20 71 1311 73% 


SJ* 5% 

20% 21 
«% 14% 
72% 72% 


040 10 34 «8 71% 21% 

O0B 08 82 415 37 36% 

006 10 71 5323 35% 35% 

108 13 24 2781 30% 30% 

100 17627 200 37% 37% 

7 93 5% 5% 

100 92 11 10% dia$ 

, -r 14 148 4% 4% 

15% 8% Tanaka Go 006 02900 m 9 tffl% 

27% H%TelME201 201 11.1 34 25% 24% 

19% 11% Tol Bra* 12 223 11% 11% 

75 58% T«Me Ax 044 07 18 a 62 62 

49J; 36% TctaHfc 1.12 20 12 001 43% 43% 

30% 20% Tore Op X 048 10 17 253 25 34% 

33 27% TOSCO 064 20 11 373 28% 27% 

33% iB%ToW8yatx 016 06 50 92 31% 31% 

40% 32% TyaHJi 23 8075 38% 35% 

28 21 rmaaMbex 102 60 to 12 23 22$ 

48$Trto4* 200 40 9 404 50% 

323 1 5% 14% 

4 14% 14% 

5 12% 12J 


56% 45%TWafltan 

16% 14 Tram 

14% 12%Twoertfl 
17% 10% Transtech 
43 3\ iravtr 
18% 13% Tiadeoar 
37% 32TrtCom20X 200 7.7 
26% 12% Trisa 
64% 50% Triune 
24% 21% TMOonv 
47% 30% TrioSy 
40 31%Timvx 
37 24% Trttan 
4% 2% TuaonH 
7% 4%7UkxOp 
14% 6% TaUahta 
2S% 6% TtetaCera 
24% 16% TMSDtX 
S5% 42% Tyco Lx 
10 B% TjCOT 
6% *%Tyter 


006 07 13 
000 40 11 
5 

028 11 10 . _ . 
060 10 8 2959 33% 
024 10 10 134 181, 
MOO 32 
8 1847 l: 
104 10 21 1130 
080 16 142 

068 11 16 2S68 
066 1.0 94 222 


010 03130 1138 3 


112 846 
020 £2257 35 
012 IB 17 
064 10 2 2054 
070 IT a 13 
040 08 27 4403 
0.10 10 4 323 
450 7 



29% 23% lUBFtlX 
8 4%{JRS 
51% 45%USRfi4.1 
38 17%US6 
31% 23% UST 
51% 4a%uncaan 
ISO 86% UAL 
10% 2%UDCHm 
24% 17%uaCnp 
11% 5% UNC Ic 

M 21% IMcam 
27 20% UnB he 
17% 11% UMM 
74% 58%Unhr 
12%100%Un8Ntf 
50% 42% UnCanp 
35% 21%UaC8t) 
13% 8% Union Cap 
54% 43%UnB160 
67 SB UnE*JO 
391; 30% Urflec 
07%52%UnPac 
28% 23% UrtonPterX 
32 16% UrlonTsw 
2% %(ttfli 
16% tfilHM 
3% 2% (M Carp 
41% 29%UUAsM(x 
15% 12% UHOoiffp 
22% 17% UBfioiM 
54% aAUdancra 
40 SUtfbnn 

§ 4%lMtant 
10% UkfllipbnFM 
? &itaMda 
15% 4USA*- 
16% 11%USFIG 
23% 18% USFtter 
Mi 2 14UGHNM 
41% 33% USLKp 
24 11%USSaoax 
32% 15% USGUQ 
48% 38% USffast 
72 S8IMTK 
14% l2%UMtekr 
19% 13% Untanda 
34% 28% Unb Foods 
IB 15% IkbHVi 
% Oil UMJadL 
13% 9% IWrarCrp 
28% 17%UMOp 
30% 24% Unocal 
SB 43UMHQIP 
37% 2S%UBtio 
34 15%USU00 


- u - 

104 19 18 2335 26% 26% 26% 
» 68 B% 6% 6% 
4.10 16 18 47% 47% 47% 

5 6513 21% 2D% 20% 
1.12 30 16 3230 29 28% ZS% 

190 70 11 49% 48% 40% 

ITS 1659 88 066% 88% 

108640 2 435 2% 2% 2% 
108 7.4 S 566 19 18% 16% 

2 347 B% »% 6% 
100 72 82 3816 22% 22 22% 

040 10 15 785 25% 24% 25 

O10 00 14 fi 13 12% 13 

130 40 10 47 70% 89% 70% 
404 AO 16 8« 114% 113% 113% 
108 12 66 1352 48% 49 49% 

075 22 94 6189 34$ 34 34 

21 B3U13% 13% 13% 

150 7.7 MOO 45% *5% 45% 
400 70 2 58 58 58 

208 60 12 2832 35 34% 35 

172 12 15 2060 64 53% 53% 

002 30 9 521 24% 24 

02) 10 55 768 19% 19% 11 

0 16B H 
177250 7 4859 10$ 

24 8 3% 

104 16 a 281 37% 

078 57 68 572 13% 

020 10 17 150 19% 

003 OI 21 5016 54% 

175 82 9 IBB 30% 29% 

028 52 5 « 5% 5% 

005 15 68 11 10% 

14 Zioo A A 
012 16 027378 4% 

020 10 14 Mil 13% 

® 2a 21% 

2 214 16% . 

124 17 7 122 33%d33% 33% 
002 10 62 1449 22% 21% a 
008 03 912130 Z7% 26% ' 

114 50 34 8798 39% 33% 

100 12 17 1787 63% E% 

092 60 13 42 13% 13% 

® IE nl 9% II 
002 11 13 SSB 29% 1 
106 90 11 111 17 II 

0 113 016 015 018 
DJO 20 16 43 13% 12% 12% 
058 19 14 585 24% 34% 34% 
000 18 a 4316 20% 27% 26% 

006 11 11 4062 48% 46 48 

108 40 15 2308 34% 33% 34% 
024 1.1 7 » 20% 20% 20% 



a -3 1 


i4*%VFQ) 

1 16%Vkn£ 

’ 4%V*UJK 
I 7VMW8M9 
i 8%va«*rao«w 
1 B%vmnpwai 
1 5%maM 
1 a% vakn 
1 33»H» 

1 12% Vestal x 
; 80%HfE8PO00 
I 31%VtetoyM 
1 10% Mata 
1 20% Wn Inc 
i24%VHttn 

I 6% Vfltaw 
: 15% VaiCoS 
31%VMto 
I MWcrtl 



27 33 

27 Z7% 


40% 48% 
SO 20% 
6 % 5 % 
67 7 

8 % 8 % 
10 % 10 % 

S 38% 

as 
61 81 
44% 45 

20 20% 
a% 27% 
30% 31% 
7% 7% 
16% 18 
' a 34% 

S3 63% 


29% 10% VMS tad 
32% 26%WLHt9n 
20% i3VMantac 
35% 30% WCM 
18%l2%r 


- W 

15 1633 17% 


29% 22*i Waft! 

5% 2% Warner tas 
88% BWntam 
18% 14%VWfiHnv 
42% 33% 

38% 19% PHkJn . . 
3% 1% BtaMMBtad 008 
18% 13% Weed (DM 020 
40% 34% MMagatan 
11 6% WsbtanSt 
a a% WrftHr 
11% 7%«tebai 

34% l7%HUran 
ie0%127%WdtF 

S 14 wendys 
21% WMCq 
18% I4%HMC*1E 
50 30%WMaa 
18% 9%mmm 
2»% 8%Vta(Ol0 
35% lBWntnasx 
25% 18% WsstaUngx 023 
26%Wstalta» 108 


. 17 17% 

1.92 80 13 216 ‘ 

88 238 19% 19% 19% 
120 17 11 1012 32% 32 32% 

000 13520 10 15% 15% T5% 
50 993 5% 5 5 

10 18 2372 37% 37% 37% 
22 14 310 20% a> 

07 2215338 

1.1 0 IE 3% 31. . . 
10 a 2830 80% 00% 80% 
8.7 8 IE 14% 14% 14% 
62 13 40 38% 3S% K% 

42 0 260 22% 22% 22% 
10 17 76 230 234% 235% 

1.4 23 154 35% 34% 34% 
40 6 50 1% 01% 1% 
10 16 123 15% 15% 



64 a 283 35% 34% 35% 
62 13 2151 10% 9% 10% 
10 15 41 25% 25% 25% 
13 14 843 10% 10% 10% 
0.7 Z7 406 34% 33% 34% 
20 18 2453 147% 144% 146% 
1.7 16 3313 14% 14% Ml 
10 17 23 25% 25% _ ' 

50 11 444 16% 18% 11 
674 43% 43% 4! 

19 1725 171 


15% 10$ VMOB 000 

6% 4% VttnCM 032 
20% 13% wan Waste 
20% 15% Vfesqae 
a 20% mWicd 
3T% 80" 

a% 1 


000 00 17 2217 
lorn » 

70 10 204 
10 17 7355 13% 
04 

a 




0 14 5 4% 

28 61 17$ 17% 
4 70 15% 15% 


20 48 569 38% 37% 38% 
£7 17 6226 45% 44% 

07 17 1306 16% 015% 1 
14 16 2785 51$ 51% 3 
72 43 U20% 19% 

034 10 16 1259 16$ 1 ' 

23 *2 V 


_ 22% Mm 
7% 505 Watrira 
12 6% VMoo« 

58% 42% WntiX 
13$ 7$ Wtansbspa 
27% 23% IKscB) 
33% 27VHscPl4£* 
18$ ISWtesfO 
35 26% ltatn Cap 
30% 22%VMXT 
27% 16% WMwrinsx 
26% 12$ WDCtelOl 
18% 14%Mx«Mte 
7$ 3% Wartxap 
53$36%W«stey 
20% 16% WytaLdar 
2% 1S% WynmM 


100 

50 

15 

51 

28$ 

28% 

aia 

1 A 

IS 

210 

7% 

7% 

004 

18 

13 

35SS 

30% 


008 

00 

15 

193 

7 

6% 

020 

10 

IB 

133 

10$ 

10% 

108 

3.1 

15 

442 

ST 

48$ 



16 

128 

6% 

8 



1.41 66 14 DIB 25% 2S 25% +% 
102 U 11 111 Z7% 27% 27% 

040 14154 54 17 18$ 17 

1.12 19 E 184 29% 20% 28% 

050 11 31 6847 28% 3% 28% 

016 00 15 033 26% 25% 25% 

050 15 31861 17% 16$ 17% 

010 07 8 14% 14% 14% 

8 389 6% 6*2 5% 

048 10 27 16E 40% 40% 40% 

008 10 19 422 17% 17% 17% 

044 10 13 53102$ 22% 22% 


A 

! 


-X- Y-Z- 


UB%E%Xoox 
54% a&iae4.ia 
53% 40 Xb* flap 

25*2 20 YaSasEay 
42% S$YMU 
5% IZitatas 
7ZMaa 

ZOMlNta 

. .ZMxklCX 
16% ll%Zeni 

29% I6$21sntad 
13$ 11 2mlg Fund 
10% 8%ZwOgTcX! 


100 20 
412 70 
055 Lf 
102 50 
016 04 
014 11 

100 4.1 
003110 

040 11 
008 45 
I iB os 
084 19 


53 3620 107% 
3 54% 
72 54 
12 51 
20 291 
331 
51685 
8 S 
119 
18 IE 13% 
17 303 19% 
106 11% 
777 6% 


a 

42 

a 

24% 

6$ 


105% 106% 
54% 54% 
61% 51% 

a 21% 

a a 

11% ii% 

aa 

12$ 13 

18$ 19% 
11 % 11 % 


8% 


♦1 

I 

45 

I 


.IpsritesWina rated la paM na Jra 1 1B4 
Wtara a *® a no* Mine snwong u 25 pmd or an las tew 
pted. la iso's btfKnp rwpe m eriosnd sra mown ter la m otedc 0^. 
IMn ataaatei ootel rates MdM as wad OMamowta tawd as 
W Wad tedadm Sates agaii tas usStateL ’ 
a-Mtaai an dsM. bond rate d Maas pba aa* teste* 
otexAMng dWdnd. ddctesd am* jsaly tear, s-teridnd dedarsd w pad 
b osotesg » Siam, pterisanri ta Cteaten tam ssnsa a m 
wn wtebnr s ml I tei i d w d dated dtar Wx a ted teridast fteik 
tew pal) ate ym. onCted. Oterac. a r w mam Man M teaa tetead 
mm KdStend dadaad a pas ttte ywr. an catete baa sen 
teriaaedi In anwi. bate h m pad E arada. Ha HpHoa ranga 
tem »*i«a mt d sates, ndnaa tey ddhvy. F* priarteatepi nte 
MMdKd drama a pita to prasadtag n nm pba ante ddanri. 
HBkd daritente be* ««■ ots d ate. *4te MMdwd pda ■ 
wxfe ta pneatep Q nxtta. atenaan odi xdna an at-tenawd a 
•HtestedM ddx ohm r jaaly MOL v-asdnp teted 1M1 Mm or 
tar *• tertowky «. a 


T a» tested ana rates ta Id. imm fda a hd. 


AMEX COMPOSITE PRICES 


4 pm dost September SO 



I 18 12027^ 26^ 27^ 

20 100 11 % 11 % 11 % 


CaSprop 

Cemtscx 020 
Cm Mac 028 — — ... 

OMK9A 001 4 129 2% 2% 2% 

Ctambm 5 6 ZA 2% Z% 

Cnonptan 57 141 39% 39% 39% 

OrcPh 004 40 2882u15% 14% l«4 
CntriFOA 001 249 5% 5% 5% 

ConSnco O0O1K9 11 1B% 18% 10% 


Stock 


H 9s 

Dfr. E ions H10 Urn Cbm Qmg 


CDtaponc 0 399 % U % *% 

caned fm 5 60 o% a% b% 


CrossAT A 084554 33 16% 16% 16% ♦% 
CtoanCA 040 40 13 17% 17% 17% -% 

CkmbCB 040 14 24 165 — 

QMc OSS E MOO 18* 

ftimmah 19 57 Se 


DIMS 11 20 xS a |2 SI , 

Dknvfc 27 106 16% 16% 16% -% 

Oacoaxmn 8 13 4A 4% 4% -% 

Dated 046 8 31 9 8$ 9 4% 

Emm Co 048 13 8 13% 13% 13% •% 


Enslnrttll 1 .72325 42 _ 
Estate 007458 3951 15 
EcofBiA 030 8 33 10 
Edatota 6 262 6 

Qm 181407 39 

EKVSa 1226 15 

Eptopi 12 254 IS 


20 % 20 % 

13% 13% -% 

10% 10% 

D8% 6% 

38 39% . 

14% 14$ •% 
19% 19$ +% 


FsDlnda 004 11 22 naH 31 4% 

FtoJA 400 18 2 76% 76% 76% -% 

FMCSyBnc 020 IS 21 12% 12 12% , 

FUteUl 056 77 107 31 » 31 4$ 

SS£ 1 ,6 S‘§S, , S *’ 

tem 000 5 103 16015% _16 +% 

GtertFdA 072 13 241 21% 21% 21 

Qdftr 070 37 144 17% 16% 17* 

60UW 2 SB A f 

Grwronan 14 40 7 6% B 3 

Qdf Cda 034 12 IE 3$ 3}J 


HanOtr 


+A 

24 692 4% 4A 4A +% 


Stock 


n m 

Uk. E 100s M0i Lara Cbm Cbag 

026 13 769 29$ 29% 29% 

KmfihCh 4 2 3 3 3 

HaaRhut 8 313 USA 2* 3% 

Haico 015 44 2 10% 10% 10% . 

10 125 7% d7% 7% 4% 


ICHCop 
tadrenCp 
ha Corns 


1 845 5% 5% 5% 
012 31 25 121$ 12% 12% 
3 870 3A 3% 3% 
78 685 16% 16% 15j» 


006 195535 19% 19% 


A 

■1 


Jan Be* 4 283 6% 

Ketama 20 MOO 13% 

KtaarkCp 18 103 

KkPyExp 19 148 16$ 1 

KogrEq 73 88 B 



2i2 2% 

22 21% 21’ 

SSa- 1 ’ 

Otetan 024471 311o37% 37% 37% 4*2 


P/ Shi 

Old. E lOOs Mgb Low Cbm 
PaawaE 040 101430 16$ 16% 16% 
- • 000 16 17 9% 9% 9% 

10* 9 2 17% 17% 17% 

024 15 630 58% 56 56 

050 19 25 36 35% 38 

012 30 348 23% 22% 23% 
004 16 2 14% 14% 14% 

010 0 47 1% 1% 1% 


n*r 

Pet WAP 
Pld LD 
PtoaayA 
Ply Bam 
PMCx 


3 


32 92 32 . 

6% 6% 6% 4% 


110 9 6 38 SB 3B 

16 26 17$ 17% 17$ 


Mgaotad 
R86WCP 

SJWCnp 

SthnUnfen 

Tab Prods 029 48 17 8% 06% 8% 
TteStea 008 M 1535 46 45% 46 

Ttamudm 88 1562 15% 14% 15% 
Ttarmohe 33 19 31' 

TltfNA 020 18 261 13 

TnanCntiy S2 133 1 

Toon 1 47 1 

TtXxsMax 7 5 5 

TibtsStAx 007 72 227 19% 19% 19% , 

TixnrMx 0072990 902 20 19% 20 4% 

IfidFoodsA 5 47 2% 2 2% 4% 

uweows 000112 27 2% 2% 2% 4% 

UnM>SXS 29 46 7$ 7% 7$ -% 

US CteU 234 1® 30% 30% 30% -% 


VtaCMRA 

VtacomB 


*1 

. 31 31% 

111 


WHET 

Vfcrtben 


Xytrartx 


286712 41% 40% 4fl$ 4% 
24033 39% 35% 30% 4% 
302309 12% 12 12% 4% 

060 24 313 29% 25% 28% 

1.12 18 131 13 12% 13 4% 

000 14 55 30% 29% 30% 4$ 

4 205 4% 4A 4% -% 



A,*.' «.« 


ram mo odo S over vwr competitors by having the Financial Times delivered to your home or office every working day. 
Hand delivery services are available for ail subscribers who work or live In the business centres of Barcelona. Bilbao, Madrid, 

Sevilla and Valencia 

Please call (91) 577 09 09 for more information. 

Financial Times. Europe’s Business Newspaper. 


FT Ha 

Soak Db. E in up iw iwte) 

ASS kite 000 19 5 14% 14% 14% 

ACC Cop 0.12168 1104 19% 18% 16% 
AataknE 224748 17% 16$ 17 -% 

Aetna Mte 19 424 23% 21% 22 -1% 

Action Cp 40 16i£B% 28% 28% 4% 

AdepSCtJ 18 3«91 19% 16% 1612 *it 

ADC Tale 33 722 40% 39% 40% -% 

ttfctfoo 20 6 13% 13% ts% 4l 2 

Atfa Sen aie 21 77 35{J 3S% J3% 

A6SM ^1X035 363834 33% 32% 32% -% 
KnraC 7 511 10% 10% 10>2 4% 

Altai & 8 214 4% 3$ 4 

AteMym B 80 5$ 5% 5$ +A 

AdlTdUi 14 613 163< 16*4 16% 4% 

Marta 000 151896 31 A ®% 30% 4$ 
Aflyas 12 258 17 1fi*« 16% -% 

AgricoER aiOlffl 1013 14.52 14% 14% -% 

At&pr 0» 181343 27$ 27% 27% -% 

Aka ADA 224 21 109 59% 58% 59 -% 

AM9d 008 17 833 2B% 25% 2SA Vs 

UefiiW 2D 1583 1/11% 10 10%4l$ 


AfcnOrg 

052 15 4 

30 39 39 


Main 

4 572 

« B% 8H 

-ft 

*Mto 

100 13 26 

14% 14% 14% 

+*■ 

Afidcap 

000 12 159 

13% 13% 13% 


MeanC 

032 8 19 

3% 3 3 

*% 

AitaGdd 

006 17 780 

U! ifi 1% 


Altera Co 

2D 5852 

28% 29 29% 

*»2 

Am Bankar 072 B 99 

22 21% 21% 


AoCtyBu 

14 3 

15*2 15% 16% 

-% 

Arabtanag 

22 2408 

23% 23 23% 

+ft 

Am Med B 

13 197 

9% 9 B 

-% 

Huston 032 9 2S2 

4% 4% 4% 

■% 

Am Rtwys 

41 1172 

24% 23% 24% +1% 

MM 

058 16 1589 

29% 28$ 29$ 

-% 

AmtaP 

21528 

1*8 1ft 1*8 

+ft 

AoMta 

220 7 1M 

46 47% 47% 

-1% 

AmPwrCanv 37 4970 

29% 18$ 20ft 

-A 

AmTrav 

13 721 

17% 17% 17% 

Wo 

Amgen Sic 

20 9006 

33$ 52$ 53% 

+% 

AmtechCp D0B 174SB 

12% 11% 12 

+% 

AmvFfii 

4 464 

10 9% 10 


AnrtagK 

IB 79 

17% 17 17 

+*8 

Airahtate 

002 15 122 

17% 16% 17% 

+$ 

ArrangelAm 100 13 68 

1S% 15ft 13ft 

-ft 

AndrawCp 

2B 2974u50% 48% 50% 

+$ 

AridhtaAo 

9 227 16% 16 16% 

+% 

ApogaaBi 

030 33 161 

16% 16 16% 


AFPBb 

8 425 

5% 5% 5% 

-*B 

Appto MU 

3115125 

47 44ft 46% 

-1% 

AppMC 

048 30 6295 34% 33% 33ft 

-ft 

Afftobaes 

004 482394 19% 18% 19 

+% 

Arbor Dr 

004 43 204 19% 19 19% 

+*8 

Arcko 

019 141438 

19 18% 19 

*% 

Arganate 

1.18 8 63 29$ 29% 29% 

■h 

Armor Ai 

004 23 2371123% 22% 23% 

+% 

Amtedta 

040 16 112 19% 19 IB 


ASK Qip 

3 44 13% 13 13% 


Aapearef 

34^158 38% 37% 36 

-% 

AsoxConm 321 24 25% 25*4 25% 

+% 

AST Rad) 

8 4395 13% 13 13% 


Addnean 

12 3 

10 9% 10 

+% 

M SEAT 

032 17 620 23% S3 23% 

+% 

JUriric 

048 25 4509 63% 62% 62% 

-% 

ArtoHo 

9 80 

2% 02*2 2% 

+% 

Awndda 

002 20 105 

7% 7% 7% 

+% 


- B - 


BE! a 


BbnHWt 
Bator J 
BktedB 


BnkSouOi 


008 27 MOO 5 05 
10 1B0 12% 12 

bo A 

006 123037 20% 2D 
004 4 MOO 15% 15% 
161487 25% 24% 
002 11 1B69 18% 18*4 
BarfonQl 040 8 2507 17% 1p 4 
Banknonh 060 14 53 24% 23% 
BMpto 002 16 623 33% 32% 
F 060 14 203 26% 26 

000 13 397 25% 24% 
100 12 1395 55% 54% 
1.19 9 1128 ZB 26% 
22 615 9% 8% 
BaariCOBK 04232 99 14% 74% 
Ben&Jany 13 126 14% 13% 
BarideyWR x(L44 13 8 X 35% 

BHAGrp 012 19 13 13 12% 

107 154 5% 5% 
016 16 101 11% 11% 
008 16 32 14% 13% 
567464 5507 54% 
21 69021(12% 11% 
104 11 400 31% 30% 
143350 46% 44% 
S 106 103417 31% 30$ 
BobBans 029 182964 21%d1»% 
Sate 5 6 16 20 30% 30% 

Batand 13 3206 11% 10$ 

BotenBk 07B 5 16 34% 34% 

Boston Tc 59 652 13% 13 

BradyWA 080 18 IE 46% <7 

Branco x 004 3 32 13 12% 

8RH0S 006 191993 9% 9 

eSBBncp 076 9 E 26% 27% 
BTSKpng 048 5 130 2$ 2% 
BUMS 23 3895 1 6% 15% 

HtetaraT 20 40B 12%d11% 

Bur Bran 35 380 10% 9$ 

Bushatefl 64 36 34% 34% 

BuBarMtgx 040 8 4 32% 32% 


BapVkM 

n i , 

□ajiKnKS 

BB&TPtl 
BE ten 


B) tac 

BlgB 

Btadtayw 

Biogte 

Bkanat 

EHockDiy 

BUCSottW 


5 

12 % 

h 

20% 

15% 

24% 

18% 

17A 

24% 

33% 

26% 

25% 

55 

29 


*% 
♦% 
-% 

-A 

+% 
-% 

^a 

f% 
+% 
9% +% 
14% 

14 +% 
36 *% 
13 4% 
5% *% 

11% +A 

14% +% 
54% 4% 

12 % 4 % 

31% 4% 
45 -% 

#A *A 
20% -% 
30% 

Hi +ft 

34% •% 
13% 

47 
12% 

0% 

27% 

2% 

15% 

11 % 

10% 

34% 

32% 


- c - 

CTec 263 48 27% 

CteotMed 7 331 6% 
CadSctespSiUSB 16 44 28% 
CednsdOomOa) 22 228 18% 
cam CD 468 964 9% 
Calgene 205 51384 BA 
Cblflcn 23 545 28 

CmtrOo 1 1035 1% 
CantebL 1 128 3 

Crates 3 409 2 

Canonbc 052122 6 68 

Canada 3 60 5$ 

CsttuCn 003 22 208 27% 
Cascade 060 23 145 24$ 
CassyS 008 17 8584 12% 
Cdgana 5 215 7 

CBACp 18 41 12 

Cantoeof S855lul6% 

CntdRd 1.1211 Ml 31 
CnMSpr ZZ 14 11% 
Oanter 9 4 5 

Chwtarl 060 71663 20% 
CbnnSftx CUB 1129640 8% 
□tefflfab 18 32 13 

Cbonpomr 15 Z 4% 
CNpaETs 9 717 5% 

0*01 Cp 6411196 89% 
CtanFta 106 12 17B E% 
ChtasCp 017 33 1612u34% 
CkRBLgc 296083 28% 
OSTsCti 12 1 IW 2 A 
QscoSys 14TBB3 27% 
CtzBsnep 106 17 80 30% 
OmHv M 19 5% 
am dr 40 56 12 

Oottadn 7 414 4% 
CDCtiDbfi 100 17 35 29% 
QoteEngy 135 599 6$ 
QKtaAtann 29 16 11% 
CopexCp 29 568 18% 
COBDOS 116 349 13% 
Cohma 17 <78 14% 
CoUgn 040 90 625 22% 
ante 106 U 45 21% 
CoHGtt 060 11 5 29% 

Capa* 004 1538Z7 22% 
CmsSA 009 1610532 15% 
CmaMSp 009 399169 15% 
CaamBkdaOBB 10 788 30% 

CanmOx 070 97 SB 18% 
CoBimC 16 1161 22$ 
GonprtJto 3081789 9% 
Coadtsre 62 S 11% 
Gsaatackfl 37 144 3ii 
Confac 108 S 6 48% 
Oonfleffl 4 562 5% 
COMM 59 746 23% 
DMMB 10 BOO 7 
floors* 000 20 5B3 19 

CBpytife 34 273 5% 
Cards Cp 233389 S% 
Coro a A 47 299 17% 
CncksrB 002 273480 23 
teyConp 0 7S6 1ft 
Own Res 34 806 5% 
cyisgu 2 655 3% 


26% 2B% 
5$ 8 

26% 28% 
17% 18*2 
9% 9% 


9% 
25 
7 A 
3 
til 
88 
5$ 


*% 

4-% 

-% 


+% 

*% 

-% 


DSC Cm 

Dtatteu 013 

DaaSHMi 

DMdse 

t Vu w rjy ■ 

DeopMuOp x092 
DteShopB 020 
DdofeBi OS 
OdUfeBe 080 


- D - 

1B15B68 29 

anm 79 
11 28 2% 
31 70 7$ 
IS 42 15ft 
11 3176 25% 
18 16 6*2 
34 504 16% 
43 74 29% 


6 

2*% 

7% 

2$ 

IB 

68 

8$ . 
2B%Z7% _ 

24% 24% 

11$ IZA +A 
6% 7 

11% 11% *% 
17% 18*2 +% 
30% 31 ♦% 
10 11 % +% 
4$ 5 

20% 20% ■% 
d7% 6% 

11 % 12 % ♦% 
4*4 4% 

4$ 5 •% 

66 % 66 % - 2 % 
52% 52% -% 
33% 34% +1% 
27% 28 ♦% 

2A 2A 

26 27% +1% 
29% 30% ♦% 
6% 6*5 
11% 11% 

4% *% •% 
28% 28% -% 
8 % 6 % 

11 % 11 % 

16 16% 

13 18 

13% 14 

21 % 22 % ♦$ 
21 21 % 4 % 

28% 29% +% 

21% 22% 4% 

14$ 15% -r% 

15% 15A Vs 
29% 29% -1 

17% 18% 
S22H -ft 

<8% 6% 4% 
it 11% ♦% 
3% 3ii 4* 
«% 46% 

«% 4% V. 
23% 25% *% 
S% 6ft +it 
ISA 16% 4% 
4$ 4$ -% 
51% 52% 41% 
16% 17% 

22% 23 Wt 

1A 1A 

5% 5% *% 

S% »%.-% 


Z7% 36% 4% 
79 79 
2% 2% 

7% 7% 

15% 15% 

24% 25 

6 B 

15% 15% 

28% 20 


teack 

Dd diaap s 

DdCong 

DCSaOSm 

DropH 

Deo On 

□aacv 

DHTach 

D8n6B 

DUM 

Dig Men 

Dig Souid 

agSyst 

DknaxCp 

DtnsYm 

DHAPtanc 

DoterGn 

DodiKbix 

CrecaEngy 

Drosten 
Drey GO x 
DnjgBnpo 
DS Bancor 
Dwfean 

Dot FB 

Dymiacn 


H Bte 

Dh 8 IDOl WtA Lera 
044 10 13 21%d20% 

38B258 37$ 36% 
016 18 S3 15% 15 

000 30 906 34% 34 

1.12 9 35 32% 31% 
020 4 2 8% 8% 

19 100 U23 22 

060 28 39 20% 10% 
13 567 14% 14 

8 1001 14% 14 

67 5291 u2% 2% 
25 in 7% 6% 
17 304 36% 35% 
020 45 217 8% 8% 
23016 4% 3$ 
000 262327 26% 25% 
066 14 10 13 13 

9 5 9% 0% 

10 839 9$ B% 
004 22 2E 25% 25% 
MB 4? 50 4% 4% 
IE 15 216 26% 25% 
042 12 29 16% 15% 
030 » ,S 103% 32% 

7 35 22% 21% 


Eagle Ed 

EaaalCp 

Easttsmt 

EOTsI 

Egtpwad 

BPteoB 

BoetrSd 

BsctbS 

BaetArta 

Emcon Ass 

EmUsx 

EngyVnXB 

EnrirSus 

Enannc 

EtetyU 

EriesnB 

EW 

EransSfli 

Exabyte 


ExpadKI 

EzcarpAnv 


- E - 

2 S 
2 31 
2 5 

002 224106 
337 2403 
1 1147 
14 768 
069 47 19 
224620 
16 48 
84 

51 75 

77 80 
4 644 
010 19 218 
0481484353 
10 

57 30 
26BS41 
10 Z78 
161073 
010 23 32 
20 20 


3% 3 

3% 3% 

1A ift 

18 17% 
7% 7% 
1 % 1 % 
14$ 14% 
47% 47 
1S% 18 

5% 5% 
8 8 $ 
14% 14% 

2A =A 

3% 2% 
5% <% 
54 53% 
6% 8% 
12% 12% 
21% 20% 
8 7% 
21% 21 
20% 20 
12% 12 


20 % -% 
37ft 
15 
34% 

32% rh 
B% 

23 +1 
10% 

14% V* 
14ft +ft 

aft +a 

7% ■»% 
36% **4 
8% 

4* +* 
26 

13 •% 
»% Wt 
9$ ^ 
25*2 *ft 
4% 4% 
28% 

15% -% 
32% 

22% -% 


3 

3% -% 

1ft 

17% *& 
7% 

1A -ft 

14% 

47 -1 

18% *U 
5% *A 
8$ + % 
14% 

2A -ft 
3% +ft 
5% 

53% 

8% 

*2% 

20% 

8 

21% 

20 
12% 


-% 

-r% 

•% 

4-1 


FtdGrp 

10 

113 4*2 4% 4% 

+% 

For Op 

024 38 

44 7 0% 7 


Faatanri 

004 55 671 41% 41% 41% 

+ft 

RfW) 

183243 29% 28% 29% 


RRhIMx 

104 15 

428 52% 52% 52% 


RnyOff 

12 

770 4% 4% 4% 

-*a 

FlggtoA 

024 08202 9 8% 6% 

-% 

FVanat 

32 504 23% 22% 23% 

+% 

RntAm 

004 8 

505 33 32% 33 

+1(1 

FMBcONo 

100 12 

66 27 28% 27 


FstCsHkx 

080 20 

58 22% 22% 22% 


Fat Seely 

104 11 

37 29 28% 29 

+% 

Fa Tern 

108 10 

578 45% 44% 45 

-% 

FsttUeeta 

038 7 

36 9% 9% 9*2 

-% 

r*nrf >81- 
r® IRMC 

058 7 

72 24% 24 24 


MV 

104 8 

55 33 32% 33 

-*4 

Ftstmlse 

47 

51 8% 8% 8% 


Rsera 

28 

691 22 21% 21% 

-*B 

Flora tat 

18 

546 6% 6% 6% 

-% 

FoadLA 

009 152868 5% 5% 5% 

-*a 

FoaftB 

0095871352 6 5% 5$ 


Foremast 

108 10 

107 32% 32 32% 

*11 

Ftncmr 

11 

176 12% 11% 12% 

+% 

Fester A 

33 

2E 3% 3 3 

-% 

FftriFta 

104 12 

125 30*4 29% 30% 


FKFH 

040 0 542 ill 7% 18% 17% 


FdHMrt 

1.18 11 

345 28% 28 28 

-% 

FtetarHB 

008 10 

508 30 2B% 30 


FUbxAlX 

008 10 

51 19% 19% 19% 

+*a 

Fume 

004 22 

94 17% 17% 17% 

-% 

FutmecKDA 

13 

785 2% 2% 2% 

+ft 



-G- 


GIIApp 

7 

51 4% 3% 4 


68JCSavx 007 23 

20 15*2 *5% 15*2 

*% 

Gents 

0 

811 3% 2% 3% 

+A 

Garnet Rs 

9 

17 3% H3% 3% 

-% 

Gteri Co 

018140 

70 5$ 5% 5% 


GertBtad 

040 21 

154u2D% 19 20% 

♦% 

Gtdyta 

18 

393 5 4% 4% 



GenstaRi 33246 8 8% 8$ 

GntexCp 40D 40 1631 23% 22% 23% +1 

Eeraatac 1ES9B1 o6ft <% 5% *% 

6enzyme 637673 35 33% 34% *% 

Qbson 62 Q40 21 1096 16% 15% 16 -rft 

GUdtagsL 012 13 2354 16% 17% 17ft Vs 

Stoat A 000 16 10 14% 14 14% 

OstiBtaa II 58 5% 5 5%+% 

Goad Buys 16 622 12% 12 12% +% 

GoukS’mpdl80 191190 22 21% 22 +% 

GradCOSys 293 50 2ft 2ft 2ft 

Grates 020 70 53 21% 21 21% *% 

ternAP 004 10 91 1055 17% 17% -% 

&rs*chP!t 0 233 A ft A -ft 

Oosonsns 1 487 2% 2% 2% +% 

BmdWtr 631 76 13 12% 12% •% 

GTlCap 12 543 16% 15 16% +1% 

artrrsxg b *36 9% s% 9% 


H - 


ttartngA 


ttarpar^i 
mo a cox 


Hertidya 


HetanTroy 

Herb# 

HoosnSp 
Hatogk; 
Home Bent 
HMlnte 
Homtxete 


Hat JB 

Hunangbi 

HureoCo 

HuttiTedi 

HycarBo 


PRSys 

DB Carons 

Elsa 

bnnucar 

kamunogoi 

inpalBc 

baths 

WRss 



70 

15B 

8 

7% 

7% 


068 

9 

7B 

24$ 

24% 

24$ 

-% 

020 

132529 

15 

14% 

15 

♦a 

01B 

28 8224035% 

33% 

34 



263275 

28$ 

28 

28H 

+a 

006 

19 

115 

11% 

11% 

11% 



11 

623 

7$ 

7)J 

7% 

+% 

016 

2X2278 

14% 

13% 

14% 

*% 



46 

10ft 

10% 

10% 



9 

1193 

16% 

15ft 

15% 

+i* 

088 

11 

943 

17% 

17% 

17% 

-% 

015 

21 

45 

7*9 

B$ 

7% 

+% 


71 

321 

18% 

15% 

15% 

-% 

000 

9: 

noo 

21% 

21% 

21% 


044 

18 

278 

25 

26% 

25% 



14 

2S1 

12$ 

12% 

12$ 

+A 

044462 

100 

4% 

4% 

4% 


000 

16 

554 

16% 

16 

16% 

-% 

080 

7 

3834 

19*4 

i8*e 

18% 

-$ 

006 

1 

E 

3% 

3% 

3% 

-% 

IK 

1279 

27% 

26% 

27% 

+1% 


IB 

9 

4$ 

4% 

*$ 

+% 


7% 

8% 

3ft 

6% 

4% 


7% 

B 

4 

6% 

4% 


♦% 

+A 

-% 


tatagrDer 

tatgblSys 


tatal 

Hsl 

tadgraB 

to Tol 

KartcsA 

Into* 


tostae 

taterwic 

WDakyCA 

tat Bss 

tt Total 

Bnocarax 

kwopaCp 

Ikomto 

knro ta dD 


JOl Snack 


- 1 - 

48 ME 7% 

2BBBZ7 9 
3 28 4 

39 399 U7% 

2 96 4ft 

040 33 15 17% 18% 17% 

024192 MOO 13%«3% 13*2 

15 1774 12% 12*4 12% t% 
3324686(27% 28 27% +1$ 

006 16 177 11% 11% 11% +% 

25 6274 21% 20% 21 

38 683 15 14% 15 *■% 

8 585 3ft 2% 3% +% 

024 1138595 62% 61-49 01% -% 

8 575 2% 1$ 2% 

040 291839 17% 16% 16i| -A 
21 493 9% 9% 9% + , 4 

024 17 69 13% 13 13 

3 572 9% 9 9%+% 

4 481 4% 4% 4% 

68630ul5% 14% 15% +1% 

275917 15% 14% 15% *% 
14 125 17ft 16% 16% -% 
002 17 127 2% az% 2% 

273 10 5% 5% S% 

005 19 IIS 29% 29 29*2 -% 
2 117 3% 3% 3% 

18 483 19% 19 19% 4% 
108 39 4213%213*Z21S% -1% 


- J- ■ 

14 632 12% 12% 12% 


+% 

-% 

Jaaanhc 

026 14 

E 

9% 

8% 9% 

+*2 

JLGN 

010 S3 542 39% 

38 38% 

+% 


Jettison w 

66 1651126% 

25 28% 

+1% 

+A 

JOWMC 

10 

552 

14% 13% 14 

+% 

-% 

JonwMad 0.10 11 

282 

8 

7% 7% 

-% 

-% 

JasJynCo 

120 12 

453 

27% 

27 37 

-1 

-% 

JSBFta 

OBO 16 

ID* 

26 25% 25$ 

-% 

-% 

JuxtUg 

028 18 

405 

18% 

18 18% 


% 

Jmthx 

016 9 

5E 

13% 12% 12$ 

-% 


py 

DHL E 


KSWisx 006 12 125 
Raman Cpx044 5 205 
KsBeyOl 3 192 
KrtySv 072 22 313 
KROtCky OH 10 10 
KtaJhal f 084 73 451 
Kbstener 23 136 
KLAbStt 683364 

Knodte^t 2 217 
UP A 01013 

temaglnc 2404711 

hiCckaS ID 328 


- K - 

24% 23% 
9$ 9% 

8% S% 

27 26% 
6*4 6% 
24 33 
10% 10% 
50% 48*2 
3$ 3% 

A ft 

26% 25% 
16% 16% 


2SV Jj| 
9% 

6% -rft 
*A -li 
6% 

23% *% 
10ft *% 
49% -% 
37a .% 

ft -ft 
26% 

16% •% 


-L- 

Labona 072 23 49 18% 
LBddFum 012 351523 6*4 
UmRwi 456916 41% 
Lancaster 048 151379 35 

Lanes he 096 IB 151 18$ 
LanamXftih 30 2548 23% 

LxnoptKs 11 3 8% 

Lasmepe 25 196 4% 
lafflcaS 15 18% 

LawOT PrxO.48 IB 70 25*2 

UUS 3156749 22% 

LBOo 015 1 95 5*2 
LtshteS 20 412 16 

LsgantCp 1 6 3132 27% 
Ub Tacti 02017 2 IB 

UWtae 23 148 4% 

UfytndA 02B 11 1881 12% 
LtaBr TI9 650139% 

Lincoln T 052 IS 206 15% 
IMtaaaMI 13 21 30% 
UlWfTec 024 36 1904 44% 
UQUBoxi 040 17 6 35 

Loevran Ep d« 28 1356 24% 
LoneSter 9 63 6% 

LotusD 2915502 37% 

LTXCp 3 71& 4% 

LVMH 078 4 54 33% 


IS 18% +% 
05$ 6 -ft 

39% 40% *% 
34% 35 *% 

18% 18ft *ft 

22% 23% 4-1% 
8% 8% 

3$ 4% 

18% 18% 

34% 24% 

21$ 22ft 
5 5 

15% 16 +% 

26 26% 

19 


•% 

% 

ft 


-% 


19 *% 
4% 


♦% 

-% 

% 


12 12 % 
138139% 

15 15% 

29% 30% +% 
44 44ft +ft 
34 34 {J +ft 
24 24% 

6% B% •% 
36*2 38% 

4% *ft 
33 33% -% 


uacm 005 2292856 25$ 
MS Car's 19 723 22% 
Uk M* 060 46 101 15% 
UatfisooGE 108 14 17 33% 

UatpnaPtar 15 788 35 

Magna Gip 076 13 576 20% 
Mai Box 14 117 B% 
HacamCp 21 217 9% 
Marine Dr 12 517 4% 
UtaMCp 9 87 41% 

Marques 2 IE 1% 
Manxes 19 4 9 

MateSmkA 044 li 524 11% 
Mated) OBO li 590 20% 
Mastsc 9 79 7$ 

Madmbt 471386 B2 
MaxnrCp 0 768 4$ 

UcCramR 044 12 84 10% 
UcCcnrOc x 0.48 161181 19$ 
MatexhcxOlS 18 172 14 

UerSdneS 0.48 14 558 24% 
Uatamtaa 004 22 228 ull 
Hanks Cp 018 57 9B5 17% 
MaiB6 024 254706 11% 
Maamfixom 12 382 22% 
Money G 070 81050 26% 
Meridan 106 11 390 29% 
Marital 10 S72 10% 

MeOndpA 012 2010281120% 
MRCa 362339 34% 
MkltaMF 000 17 850 11% 
MdlNUB 200346 IE 76% 
8 141 3% 
92E8 12$ 
Mcroom 6 398 7% 
McrBttx 10 179 5% 
McrpOlB 22268 6% 
MCE 1621132 57% 

MdADU 25 IE 29 
Metafile 052 11 5406 28% 
MdwGCBh 050 23 193 28ft 
lasrH 052 17 369 25 

MMcm 485 22% 

Mnmacb 20 412 15% 
MMeTd 51 5555 20*2 
MotamOo 020 19 119 7$ 
Mateur 052 20 859 2S% 
Hotaxx 004 586 39% 

Uctoxtacx DJX 321439 43 

Moscam 004 15 372 8 

HorineeP 006 22 267 31% 
bTCDllM 18 197 15ft 
MTSSys 056 10 190 24% 
13 657 31 

4 59 10% 


24% 25% -1% 
22 % 22 % -% 
14$ 14$ -.15 
33 33% 

34% 34*4 V* 
20% 20% +% 
B% 8% -ft 
B 9% 

4% 4% +% 

41 41% +% 
1 % 1 % 

8% 9 •% 

11 % 11 % 

20% 20ft +ft 
7% 7% 

50*2 81% +1% 
4% 4% ~% 
15*2 16% 

19% 19$ +% 
13% 13$ 
24%24}J +& 
10 10 % 

16% 17% +% 

10 $ 11 % 4 % 

21% 22% +% 
28 28% 

28% 28% •% 
9$ 10% 4% 
10*2 19% 

33 34% +1% 
10 $ 11 -% 
78% 78% 
d2$ 3 

12ft 12% 

7% 7% 

5% 5% 

6ft 6% 

56% 56% 

28% 26% 

27% 27% 

27» 28 *ft 
24% 24j] V. 
E%3% -% 
15*4 15% ♦% 
19% 20% *1ft 
7% 7% 4% 
28% 27% ♦% 
39 39% 4% 

42 42ft + ft 
7% 7% 

30% 30% 

15% 15% 

24ft 24% 

30 30ft 
10 10 


-% 

+% 

-% 

-1 

-% 


4% 

-A 


NAS Rax 
Hash Fra* 
rial Const 
Mrs Soi 
Navigator x 
NEC x 


NetHkGan 

NetwkS 

Neuogan 

Magna 

NewEBua 
Nw Image 
NbcdgMet 
NeraprtCp 
Notes Dh 


1 

NSterUn 

NortwTs 

NWte 

Now* 

Horaous 

UPC A 
NSC Cap 


OCtorteya 

OeUICim 

Offshreig 

OtpsuyN 

OteoCs 

Old Kant 

OUNaffi 

Onbarcop 

One Price 

OptkMR 

OradeS 

OOScnce 

OrtxotBcti 

OrctxtSwv 

OragoMat 

Odop 

QshkBA 

OdSMiT 

OtorTafl 


Paccar 

PacDwtap 

proem 

PncffiCra 

PiranMic 

Paydnx 

Payee Am 

PaertBa 

PosiTity 

PoaiVko 

PBrtalr 

PVIBCtl! 

PemrasL 

PtatHtH 

Petmta 

Primacy 

PhoarafTch 

nxadU 

Pttuata 

FUartoi 

noseaGp 

PtoneetHix 

FkxtaaGix 

Ponce Fed 

Powti 

Pres Lite 

PrassUi 

Pt/Dest 

Pride Pei 

Pibikml 

PradQpc 

Puritan B 

Pyramid 


- N - 

016 11 778 28 25% 

072 11 388 17 16% 

036113 164 13% 13% 
020 22 127 15% 14$ 
600 II 87 17% 16% 
043104 85 60% 60% 
191155 2B% 26% 
281403 19% 19% 
1011187 7% 7ft 
10 531 7 6% 

00736 37 35% 35% 
000 201865 17%d17% 
882304 7% 7 

24 447 32% 32 

004 21 194 8 7% 

235515 7% 7 

056 26 131 58 57% 

040 238854 40% 39% 
14 54 19% 19 

4 99 5% 4$ 

088 123299 37% 38% 
191957 18*e 17% 
73724761 14$ 14% 
4238E 48% 47% 
77 6% 6% 
7 10 2$ 2$ 


25% -% 
16% 

13% 4% 

15 -00 
16% -% 
60% -% 
soil -1ft 
18% 

7% -*4 

8$ +H 

35*a -% 
17% 4% 

7ft -A 
32% +% 

8 4% 
7% 4% 
57ft *ft 

«4l% 

19 -% 

37A 4ft 
18% 4% 
14% •% 

«% V* 

8*4 

2$ 


- o - 

21 953 13% 

18 734 21 

14 485 13% 

100 10 10 29$ 
1.48 6 875 32 

1.16 10 677 32% 
092 IB 164 37 

100 8 197 27% 
7 546 8% 

22 317 23JJ 
6317480 44% 
42 418 10% 

099 28 142 98 
6 8 9% 

031 9 IS 5$ 
16 zlOO 2% 
041359 52 14% 
050 11 293 11% 
1.72 15 237 34% 


12% 13% 41 
20% 2Dii 4ft 
13*2 13% 

28% 29$ 

31% 31% 

31% 32 

38% 36% 

26% 27% 

9*4 9% 

23% 23% 

43 43 

16% 16% 

9$ 9$ 
d9% 9% 

5% 5% 

2% 2% 

14% 14% 4% 
10 $ 10 $ -% 
33% 34 4% 


4 % 

-H 

-% 

-% 

4 % 

-% 

V. 

-% 


- p - 

100 12 889 
08211 1 32 
102 16 85 
33 560 
3917336 
004 47 530 
23 S 
05058 22 

9 15 
100 24 13 
0J2 17 440 
13 296 
Q20Z7 68 
032 14 361 
1.12 16 547 
35 197 
28 451 
048 3 7 

361133 
40 622 
064 32 701 
068 21 1478 
012 10 906 

5 » 
16 30 

009 3 243 
1601635 
2418004 
381465 
32 321 

004 23 732 
012 8 3481 

6 464 


Q - 

46% 45% 
10% 12*8 
24% 24ft 
79*77% 
33% 32 
38 37% 
9% 9% 
13% 13 
15% 15*4 
34 33 
39% 36% 
5*4 5 

25 24% 
14% 14% 
30% 28% 
12 11 % 
5% 5% 
8% dB 
17% 16% 
15% 15*4 
<7% 45% 
31% 31% 
18% 17% 
8% 8% 
6$ 6% 
6*2 06% 
48% 43% 
16*2 15$ 
B*fl 4$ 
19 17% 
26*2 25% 
16 15% 
B$ 8*2 


«ft 1% 
12% -% 
=4% 

79ft flft 
33% +1% 
37% 

9% ■*% 
13 -% 
15% •% 
34 -1 
39% ♦% 
5 -% 


24% 

14% 

30% 


-% 

*2 


‘ll$ +% 
5% -*a 
8% 

17ft +ft 
15% +% 
47 +1 

31% 

17% 

8*8 

S% 

8% 

43% -2% 

16ft -*ft 
5ft *ft 
18% +% 
26% 4% 
15% +% 
8% -% 


J 4 

-% 

4% 


W St 

ran m. ( tsi ■* u> lot a«D 

OuateaLog 11 36 6$ 6% 6% 
QwkgrCha OK 72 279 18 17% 18 

020 16 517 22% 21% 22 +% 

67 7783 1 5 14% 14J2 -% 

22 3*3 15% 14$ 15% -% 


Dual Fold 

ann um 

tottsfi* 

QVChc 


29 049 44% 44 44ft Wo 


Rainbow 

Raiiys 

Rotarops 

Raymond 

RkoIhi 

touts A 

Repigen 

too Warn 

RtsKhtad 

Retears 

flaxen he 

River Fax 

HsadraG 

Rtttod 

RochSvBk 

Roowraft 


floucMiad 

Race 

RPUhc- 

FSFta 

RysnFidy 


- R - 

TO 77 11$ 
4 817 5 

1 323 3% 

27 47 20% 

15 487 16% 

22 74 03|2 

1 486 27 4 
6 38 u3ft 

16 780 11% 

037 18 1201 45 

10 691 5% 
000 10 4 34% 

1.40 19 686 58 

OT2 14 18 6$ 

040 5 422 19% 
044 31190 18% 
000 11 7S1 15% 

28 BS3 23% 

068 60 679 19% 
053 31 1092 19% 
am 14 94 23 

II 1110 6% 


11% H% 
4% 4$ 
«3 3ft 
20% »% 
18 16% 
23% 23% 
2 % 2 % 


Wt 

*A 


-% 


3% 

10$ 

44% 

S 


3ft ^ s . 

11 ■% 


34% 34% 
57% 57% 
6 $ 6 $ 
19 10% 
18% 161! 
14% 14% 
22% 23 

18% 19% 
18% 18% 
22 S3 
5$ 5iJ 


+% 

*1 

-% 

+A 

*% 

+A 

-% 

+% 

-% 

H-J 

■A 


■h 

*% 

-% 

4-1 

% 

♦A 

-% 

■% 

4-% 

-% 


- s - 

106 7 771 51$ 51% 51% 

Sanaencnxax 14 9 19% 18% 19% 

ScNmbgrA 030 2D 379 27% 26*2 27 

SaMadL 11 9505 43 % 42 43% 

5asystm 17 1733 21% 21% 21% 

Sctos 716E 7 6% 6% 

Setter Cp 052 10 863 22% 22 22% 

Score Bnf 6 883 5 *% 4% 

Sterid 100 46 3 37% 37% 37% 

S-gate 11 7386 24% 23$ 24 

fflCo 016 27 55 22 21% 21% 

038 5 431 2ft 2% 2ft -A 

Setocdns 1.12 15 IBB »A S% 25*’ -|Z 

Sapcm 78 957 17% 16% 16% •% 

Saoutea 31 268 4$ 4}* 4% Wo 

SeftTadi 14 6 10 10 10 *H 

SenFcact 17 19 4)3 4)3 4)3 -ft 

Sevencan 022 18 17 17$ 17% 17$ 

SHMedX 004 20 642 S 27% 27% •% 

SHLSyam 2 274 5)1 5% 5% Wo 

SbcrSHOOd 35 468 22% 21% 21*2 -A 

StorabteP 7 97 7$ 7% 7$ 

Stone On 15 688 20% 20 20% *% 

SfenaTte 4 4B 3% 3% J% ■»$ 

StgmAI 003 182268 35*2 35 36% ♦% 

StgmaDes 21 7898 8% Bft S% *i% 

SKcnVBc 006 61 116 12% 12 12% 

SmoiVGp 42 4694 14% 13% 14% *% 

Stapnon 040 IB 412 13*2 13 13 •% 

SmflMd 35 1602 27*4 25% 25*4 -1% 

SnsppiaBv 34 2945 13% 13 13 -% 

SteMMeP 1 283 4% 4% 4% 4% 
Sonoco 056 172786 23% 23 23ft Wo 

Soutna 008 101170 M 18% 20 4% 

Spiegel A 020 38 3459 16% 17% 18% 4% 
StJudaHd 040153400 38 3S 35H Wo 

StPrn^ c 030 10 514 20% 20% 20% 4% 
SteyBf 1 592 2% 2 2ft V. 

StaplM 46 7599 31% 29% 30 

Stele Sb x 080 IS 1704 36% 38% 38*2 Wo 
Sid Mas 13 1213 20 19% 19$ 4% 

SUtotfs 008 13 55 19$dl9% 19% 
steal Tec 008 2D 225 10% 17% 18% 
SUdyUSA 020 35 130 9% 9% 9% +% 
SUM 153 138 21% 20% 21% 4% 

Strewted x 1.10 14 21 u23% 23 23 

SOudDy 98752 4% 4% 4% +ft 

Skyksr 028 27 7E 35% 34% 34% 
SteannO 20 209 13% 13 13% 4% 

StenttanoS 080 19 16 25% 24 24% 4* 4 
SummBBc 084 131446 21 20% 2fS5 


4 % 

-H 

4 % 

4 % 


Summit To 361720 35*4 33% 34% 

Stel Spot 14 54 5% 5% 5% 

StfiHc 1624998 30% 29% 29% 

SWHtTra 44 308 U43 41% 42’J +l“ 

Sybase tac 5318900 48% 45 45$ 4% 

Symantec 40 2305 15% 14% 14)2 -ft 

^naloy 040 18 78 18% 18% 18*2 

Synacom 93 690 i»4H 4% 4ft 4ft 

Synergen 1 6« 5% 5 5*4 4ft 

Syneric 65 65 15% 15 15% 

Synopdcs 12Z72B3 14% 13$ 14 -% 

SystmSott 012 138459 12% 11*4 12 4*4 

SystamSco 29 345 17% 17*4 17% 4% 

Syatamed 41 987 8$ 8% 8ft 4ft 


T-CM Sc 5 283 
TjwwWxOS 2 20 515 
TBCCp 13 747 
TCACBU4X0L44 29 57 
TadData 12 535 
Tanmte 080 10 08 
Takatac 5 56 

Idee Sya 91135 
TelCmA 170T4112 
Tteatet 7 17«9 

TaSatn 303378 

TainiCp 001 76 198 
Taira Tee 75 718 
TetoPhADR 010 292244 
TteseCteB 7319003 
II 104 

TJbitx OS 271732 
lotos Med 62976 
Tokyo Mar 034 38 10 
Tom Broun 71 2645 
Tons CD OZOUW 8203 
TPI Enter 3 69 

TraeaWrid 12 

Tranwk* 100 10 7 

Trieste 21 29 

Trtntte 751306 

TiuscoBkC MO 11 379 
Tseng Lab 000 11 4339 
TyrfdA 0081642778 


- T - 

3 2$ 

34 32% 
10% 9$ 
24% 24 

19*2 18% 
49 48% 
13% 12% 
13% 13 

22ft 21% 
4$ 4*8 
43% 42 

14% 13% 
9 8% 
26% 27% 
38% 36% 
5% 5% 
ia 17% 
us 7*4 
«% 80*2 
13% 12% 
6% 8 
6% 

11 
37% 

2ft 


6*4 

11 

37 

2% 


14% 13% 
21*4 20*2 
8.77 8*2 
24% 23$ 


3 Wo 
33% 4% 
10 -% 
24% 4% 

19% +% 
47 

12$ -% 
13 -A 
22A 4ft 
4% *% 
42% *% 
13% -% 
9 4% 
28% 4l% 
37% V. 
5% 

18 4% 
7$ 4% 
60% 

13% 4 % 
BA -ft 
6*2 

11 -% 
37 -% 
2ft +ft 

14% *% 

21% 41% 
6% 4 % 
24 4 % 


USHtbcr 

IhUab 

UCatoaGs 

USTtt 

IMedStX 

Unitag 

Untrta 

USBancp 

US Emrgi 

UST Cop 

Utah Med 

UidTetov 

UOx 


Vbfcaxd 

VtvdCed 


- u - 

034 1B17EQ0 47% 
2 831 5% 
81 17% 
51 52% 
880 10% 
25 18% 
100 26 695 48% 
100 101335 25% 

11 10 4 

1.12 8 31 11% 

15 238 9% 

12 B 53% 
12 183 4% 


100 14 
20012 
040 8 
008 14 


48 46ft V, 
5 5% 4% 
16% 17 -% 

52 52% 

10 10*4 
18% 18% 

47% 48% 

25% 25% 

4 4 

11% 11% 

9% 9% 

51% 53% 4l% 
4 4% 4% 


4 % 

4ft 


was 
vtarow 
VtoMtogk 
WS Tecta 
WnB 


- V- 

000 35 11 16 15% 15% 

100 1545 26% 25% 26% 4% 
251894 23% 23 23% 4% 

40 594 26*4 25% 25% 4 % 
10 61 16% 16% 16% 4% 

25 1094 19% 18% 19% 
244077 11% 11 11 -% 

017 3 205 18% 18*8 18% -*8 


Warner En 010 20 779 
Wramtadi 97 181 
WadMutS8072 7100 
Wttfleda.jOM 81164 
WaOSMA 002 9 93 
Wausau PM 004 14 391 
WD-40 140 18 77 

weak 7 620 

mat Ora X 072 11 1435 
WstPub 11 171 
WatpStA 1 145 

MMSealA 11 20 
WbPta 096 251437 
WmsSonona 772723 
WoUanL 028 15 173 
WDtngi 040 271536 
WPPGrav 003 21 2SP 
Wynan-6*i040 1 78 


- W- 

25% 25% 
5$ 5% 
20 % 20 % 
20% 19% 
25 24% 
23*2 23 
43% 42% 
4% 4 

28*2 27$ 
12 $ 12 % 
14% 14% 
3% 3% 
52% 51% 
34% 33% 
17% 18$ 
u22 21*2 
3*2 3ft 
6 5$ 


25% 4% 
5$ 4% 
20% -*B 
20% -rift 
24% 

23*2 ♦% 
«% -% 
4ft 4ft 
ZB -% 
12$ 4% 
14% 

3% ■*■% 
S!% -% 
34ft 4ft 
17 -% 
21*2 -% 
3i3 -ft 
5$ 


-X-Y-Z- 

Xfttx 32 5239 50*2 48% 50+1% 

Xante Cap 2 578 3% 3% 3% ■% 

Tetora 084 BS18S0 16% 18% 18% -% 
Vtarfc RBCtl 137 73 4*4 4% 4% •% 
Ztonsutmx 100 9 193 39*2 38*4 39% 4% 




9r .«# mtl -9irr%FWbf .u«(»4l rn Hmtnimn .Sin Mil fHfl DUB 'SiaSJCl 10 SinJOjIUOIU 3I/J iOI BJPP 3U( 


42 


FINANCIAL TIMES MONDAY OCTOBER 3 1994 



FT GUIDE TO THE WEEK 





MONDAY 

Awful lot of voting In Brazil 

Brazil holds its biggest 
set of elections since 
the 1950s with 1,654 
jobs, including that of 
president, being con- 
tested by more than 12,000 candidates. 

Attention will focus on the race for 
the presidency and whether the 
front-runner, former flnanm minis ter 
Fernando Henrique Cardoso, can win 
outright in the first round by polling 
more votes than all his competitors 
combined. His chief rival will be Luiz 
In&cio Lula da Silva of the left-wing 
Workers Party. 

Voting also takes place for two-thirds 
of the senate and all the lower house of 
Congress, as well as for state governors 
and parliaments. Counting is expected 
to take between 10 and 15 days. 

IMF meetings; As part of the annual 
meetings of the International Monetary 
Fund and World Bank, being held in 
Madrid, the development committee 
will consider the effectiveness of aid 
programmes to the developing world 
and examine how the Uruguay Round 
trade liberalisation measures will affect 
developing nations. 

Nelson Mandela! President of South 
Africa, on a trip to the US, addresses 
the United Nations General Assembly 
in New York. 

Rubber: Negotiations resume in 
Geneva (to Oct 14) on a rubber com- 
modity pact to replace the accord that 
expires In December. It is the only 
remaining international commodity 
pact with buffer stock arrangements to 
stabilise prices. But consumer and pro- 
ducer countries differ sharply on the 
intervention price levels and range for 
the new agreement 

Labour Party conference: 

Britain's main opposition party opens 
its first annual conference since the 
election of Tony Blair as leader at the 
seaside resort of Blackpool in 
north-west England (to Oct 7). 

Mr Blair is guaranteed a standing 
ovation when he addresses delegates on 
Tuesday, and is certain to win endorse- 
ment for a policy shift towards support 
for the market economy. But he will 
have to fight off leftwing demands for a 
commitment to a specified minimum 
wage. 

Eurotunnel starts a limited passenger 
car shuttle service though the Channel 
tunnel for invited shareholders and 
VIPs including its bankers, MPs, MEPs 
and representatives of the travel trade. 
The car shuttle operation is starting 
nearly IS months later than planned 
and foreshadows the launch of a full 
tum-up-and-go service expected to 
begin In mid-November. Eurostar pas- 
senger trains are not expected to start 
service before late October. 

FT Survey: Building Services. 

Holidays: Australia (Labour Day), 
Germany (Unity Day), South Korea 
(National Foundation Day). 


4 


TUESDAY 

Yeltsin marks uprising 

President Boris Yeltsin of Russia is due 
to hold a press conference to mark the 
first anniversary of the failed uprising 
of hardline par liamentari ans and the 
storming of the White House in which 
140 people were killed. Mr Yeltsin is 
expected to spell out his political 
agenda as the new parliament begins 
Its autumn session this week. 

Madrid Meetings: The formal 
annual meetings of the two Bretton 
Woods institutions, the International 
Monetary Fund and the World Bank, 
start with keynote addresses from 
Michel Camdessus, IMF managing 
director, and Lewis Preston, president 
of the World Bank group. The meetings 
continue until Thursday. 

European Union foreign ministers, 
holding their monthly gathering in 
Luxembourg, will look at plans to help 
east and central European countries 
prepare their economies and legislation 
for membership of the Union. The min- 
isters will also review relations with 
former Soviet republics, in particular 
Ukraine, whose foreign minister they 
have invited for dinner. 

Lloyd's of London: Judgment in the 
Gooda Walker case, the biggest legal 
action by loss-making Lloyd's Names, 
is expected today. A group of 3.095 
Names, the Individuals whose assets 
support the markets, are suing 71 
Lloyd's agencies for £629m in losses 
sustained by syndicates managed by 
the Gooda Walker agency. During a 
case which was heard during the sum- 
mer. Names alleged negligent under- 
writing was responsible for their losses. 

CouncS of Europe: President Ion 
Iliescu of Romania begins a two-day 
visit to Strasbourg, where he will meet 
senior representatives of the Council of 
Europe, including secretary-general 
Daniel Tarschys. Because of its contro- 
versial human rights record, Romania 
was the last of central Europe’s former 
co mmunis t states to join the Council a 
year ago. It continues to raise concerns 
over Romania's treatment of its ethnic, 
religious and sexual minorities, and its 
judicial system. 

Saleroom: Christie's in London is 
auctioning more than 230 original 
watercolours painted by various artists 
in the 1860s for John Gould's volumes 
The Birds of Great Britain (1800-73), car- 
rying estimates of between £2,000 and 
£15,000. 

Gould is considered as important to 
English ornithology as John James 
Audubon is to North American. The 
collection was assembled by the natu- 
ralist and traveller Frederick du Cane 
Godman. It is rare for such desirable 
drawings to appear on the market an d 
the appearance of so large a hoard has 
sent Gould collectors into a frenzy. The 
estimates should be much exceeded. 

FT Surveys: New Broadcast and 
Communications Media and World Car 
Industry. 


5 


WEDNESDAY 

US-N Korea talks resume 

High-level US-North Korea talks cm 
eliminating Pyongyang's capacity to 
make nuclear weapons are due to 
resume in Geneva. Robert Gallucci, US 
ambassador-at-large, said last Thursday 
after a week of talks that little progress 
had been made but neither side wants 
the talks to collapse. Negotiations 
centre on the terms on which the US 
will organise the supply of light-water 
ato mic reactors to replace North 
Korea's graphitemoderated ones, 
which produce more of the plutonium 
used in nuclear bombs. 

Chris Patten, governor of Hong 
Kong, gives his third annual policy 
speech, outlining his plans for the col- 
ony. He is expected to give a progress 
report on pledges made last year and 
arumnnrp a fresh round of spending. 
The real focus of interest, however, will 
be on any proposals for improving rela- 
tions with Beijing. This could prompt 
Mr Patten to revise his views on work- 
ing with Beijing-appointed bodies such 
as the Preparatory Committee. 

European Union environment 
ministers, on the second day of a 
two-day session in Luxembourg, dis- 
cuss with their counterparts from six 
east European states how their envi- 
ronment laws and policies can be 
brought into line with the Ell's. 

The EU ministers will 
also be attempting yet 
again to agree on a 
strategy to combat 
global wa rming . Plans 
for a mixe d carbon and 
energy tax of up to S10 
per barrel of oil equivalent have been 
blocked for nearly three years by UK 
opposition to the principle of an EU- 
wide tax, and the misgivings of 
southern member states ami France 
about its effects. Efforts are now 
focused on jointly agreed national mea- 
sures to cut carbon dioxide emissions. 

US congressman Dan 

Rostenkowski, once powerful chairman 
of the House ways and means commit- 
tee, goes to court to seek dismissal of 
the 17-count corruption indictment 
against him on constitutional grounds. 

Frankfurt book fair, the leading 
annual event for publishers, begins (to 
Oct 10). In this, the 46th year, the 
theme is Brazil. 



Nashvlle, Tennessee, plays host to 
the 28th Annual Country Music Associ- 
ation Awards. 

FT Survey: FT Exporter (Europe 
only). 

Holidays: Portugal (Republic Day). 


THURSDAY 

Paris Motor show opens 

The main world show of the autumn 
opens as new car sales in Europe 
recover hesitantly from the deep reces- 
sion of 1993. The show, which runs to 
October 16, is dominated by Renault 
and PSA Peugeot Citroen. Last week, 
Peugeot announced a return to profit 
after last year’s loss. 

As carmakers look at trends for cars 
in the 21st century, Citrate is to show 
its Xanae concept car. The company 
says it represents a new approach to 
automotive design, half-way between a 
conventional saloon car and a people 
carrier. 

British-based Rover Group is to 
unveil its latest Range Rover 4-wheel 
drive luxury “off-road" vehicle. 

UK economy: The output figures for 
August will be watched closely by the 
markets in the light of the recent surge 
in industrial production. Most analysts 
expect the monthly rate of manufactur- 
ing growth to have slowed slightly In 
the month, even before September's 
controversial UK base rate rise. 

However, the underlying trend 
r emains strong, with a 4.6 per cent 
year-on-year rate forecast 

European Union commissioner on 
trade competition Sir Leon Brittan 
begins a trip to South Africa (to Oct 10). 

FT Survey: Liechtenstein. 

Holidays: Australia, Egypt (Armed 
Forces Day), Kazakhstan (Republic 
Day), Syria (Liberation Day). 


FRIDAY 


IIS employment data due 

Today's US employment data for 
September provide the first real indica- 
tor of whether the Federal Reserve’s 
decision to raise interest rates in 
August has done anything to slow eco- 
nomic expansion. The median forecast 
in MMS International's survey predicts 
growth of 250.000 in non-farm payroll 
employment, with the unemployment 
rate unchanged at 6.1 per cent 

US congress is scheduled to recess 
for the mid-term election campaigns. 
With so many dose contests expected, 
the deadline might actually be met. The 
Senate is scheduled to return on 
November 30 for two days of debate on 
the Uruguay Round Gatt legislation, 
■file House is scheduled to vote on the 
Round on Wednesday, but its leaders 
are being urged to postpone the vote 
until after the elections. 

Bernard Taple, the French politician 
and soccer boss, is due to make a court 
appeal against seizure of his art works 
and furniture by his creditor bank. 
Credit Lyonnais. 

London fashion week, hi g hli ghting 
the spring and summer collections for 
1995, starts with a reception attended 
by the Princess of Wales (to Oct 9). 

Day of Courtesy: Britain's Polite 
Society hopes the event will counteract 
the alienating effects of technology. It 
says such gadgets as automatic doors, 
which people no longer have to hold for 
each other, reduce human contacts. 


WEEKEND 


Austria goes to the polls 

The Socialist-Conservative coalition 
that has ruled Austria for most of the 
postwar period looks set to ivin another 
mandate in national elections on Sun- 
day. but with its 76 per cent majority 
reduced. 

Rightwing populist JCrg Haider has 
bounced back after a disastrous refer- 
endum campaign in June opposing 
Austrian membership of the European 
Union. He could take seats from both 
traditional parties. 

Saleroom: On Saturday. Sotheby's 
holds its first wine sale in New York, in 
co-operation with Sherry-Lchmann, 
owner of a well respected liquor store 
on Madison Avenue. Sotheby's expects 
to raise more than $im from almost 
1,000 lots. Until this year, wine auctions 
were forbidden in the city. 

Kurile islands: A group of Japanese 
is due to visit the Russian-held island 
of Etorofu on Saturday. The island is 
one of three in the Kurile chain off 
northern Japan seized by the Soviet 
Union at the end of the second world 
war. 

The travellers are descendants of 
island dwellers and wish to visit their 
ancestors' graves. Russia occasionally 
allows Japanese to land without visas 
as a good will gesture, designed to 
defuse a row over ownership of the 
three islands. 


Compiled by Patrick Stiles. 
Fax: (+44) (0)71 S73 3104. 





Other economic news 

Monday. After a week in which 
the US and Japanese trade 
talks grabbed the attention of 
many traders, there will be 
spate of US and Japanese data 
for the markets to watch in 
days ahead. 

In the US, September's pur- 
chasing managers' inrimr will 
be watched for signs that the 
recent surge in industrial pro- 
duction is being maintained. In 
Japan, data on September's car 
sales is due today. 

Wednesday. US factory order 
figures are expected to show a 
rise in August 

Meanwhile, data on German 
manufacturing orders, due in 
the middle of the week, is 
likely to indicate that orders 
are growing, particularly in 
the capital goods sector, 
although demand for consumer 
durables remains weak. 

Friday: The US September 
non-farm pay roll figures are 
expected to paint a slightly 
mixed picture of employment 
trends, although most analysts 
believe the underlying trend is 
healthy. 

In Japan. August's current 
account is likely to show that 
the trade surplus narrowed 
slightly in the month. Mean- 
while, UK trade data is expec- 
ted to show a further narrow- 
ing of the trade deficit. 


ACROSS 

1 A crying need for free trade 
cut (4,4) 

s Get into bad shape 16 ) 

9 Suggestive of financial aid in 
hiring charge (8) 

10 Having failed to win is pun- 
ished (6) 

11 Sanction law about cider pro- 
duction (8) 

12 A unique example of scoring 
99 when aiming for a century 
(3-3) 

14 Postwar conditions? (5,5) 

18 Audience standing up, well- 
pleased with one's address 
(5-5) 

22 Boring chaps perhaps, but 
they keep us going (6) 

23 Many a creature seen in a 
wood (8) 

24 Turn up to find a number still 
outside (6) 

25 It comes under general arith- 
metic 18 ) 

26 She shows skill in carving 

ham (SI 

27 Russian insect with stripes? 
( 8 ) 


ECONOMIC DIARY 


Statistics to be released this week 


o «r 

RataMMf 

, Country 

Economic 

Statistic 

Median 

Forecast 

Previous 

Actual 

Moo 

US 

Aug construction spendkig 

0.3% 

0.6% 

Oct 3 . 

.US 

Sap Purchasing managers Indx 

57% 

562% 


Japan 

Aug Bnk of Japan corp s’vtce price" 

- 

-03% 


Japan 

Aug Bnk of Japan corp s'wce price** 

- 

-0.7% • 


Japan 

Sep auto sates" 

- 

12% 


Japan 

Sep Forex reserves* 

- 

1.9% 


UK 

Sep 'MO* 

0.4 

• 0.1% 


UK 

Sep MO** 

6.3% 

62% - 

The 

US 

Johnson Rodbook. w/o Oct 1 

- 

• 2.6% 

Oct 4 

US' 

Sep domestic auto sales 

72m 

7.4m - 


US 

Aug leading indicators 

0.6% 

0.0% 


US 

Sep domestic truck safes 

5.5m 

5.5m 


Japan 

Sep trade balance 

■ - 

$SL5bn • • 


UK 

Sep official reserves 

SOm 

-$27m 


UK 

Aug final money data 

- 

n/a 

Wed 

US 

Aug factory orders 

3-5% 


Oct 5 

US 

Aug factory Inventories ■ 

- 

0.9% 


Germany 

Sep unemployment change, westf 

-3.000 

4,000 


Germany 

Aug employment change, westf 

6,000 

9.000 . 


Germany 

Sep vacancies, west 

2,000 

3.000 

Thw 

US 

Aug home completions 

- 

1.27m 

Oct 6 

US 

Stale benefits, w/e Sep 24 

- 

2.84m 

‘ 

US 

MT. w/eSep 26 

-$1bn 

-Sl.3bn 


US 

M2, w/e Sep 26 

$(L3bn 

-Sl.ibn 


US 

M3, w/e Sep 26 

Unchanged 

S1.6bn 


BW 

nateoead Country 

C.iihh .—.I., 

economic 

SttuMfe 

Median 

Provtoua 

Actual 

UK 

Aug manufacturing output" 

.03% 

04% 

UK 

Aug manufacturing output” 

4.6% 

32% 

UK 

Aug industrial production* 

02% 

0.1% 

fti US 

Sep average workweek . 

- 

34w5 

Oct 7 US 

Sep non-farm payrolls •• 

250,000 ' 

• •’ 179,000 

US 

Aug wholesale trade 

- 

• -0.4% 

US 

Sep manufacturing payrolls 

20.000- 

-32,000- 

US' 

Sep hourly earnings ' 

03% 

02% 

US 

Sep dvfl unemployment ms 

6.1% • 

6.1% 

US 

Aug consumer credit 

S8bn 

$5£bn 

Japan 

Aug trade balance, IMF 

- 

Sl44bn 

Japwr 

Aug affront a/c, IMF 

3&3bn 

Sll.7bn 

Japan 

Aug foreign bond Investment 

7 • - 

$4_2bn 

Nlands 

Sept consumer prices Indsc" 

25% 

26% 


During the week... 

Japan 

Sep trade balance. 1st 20 days 

- 

. S2.5bn 

Japan 

Sap Sank of Japan bar* data 

- • 

- 

Germany 

Aug manufacturing orders' 

0.3% 

0.6% 

Germany 

Sep final cost of fivtog* 

- 

ai% 

Germany 

Sep final cost of living** . 


3% 

Germany 

Aug final M3 

- . 

SL8% 

Italy 

. Sep consumer prices indx official" 3.8% 

3.7% 

Italy 

3rd qtr gross domestic product"* 

1%- 

0.1% • 


*month on month, -year on yeer.lseasonaUy adjusted Statistics, courtesy MMS International. 


DOWN 

1 The Mad Hatter gets a warn- 
ing (6) 

2 Kidnap the sailor on Hw rai-ial 
( 6 ) 

3 Number of mischie vous char- 
acters in digs (6) 

4 Length of time in the middle 
( 10 ) 

6 Time In Its entirety? (8) 

7 Great place for fresh air! (8) 

8 Somehow fit names into list 
( 8 ) 

13 The case for the prosecution? 
( 10 ) 

15 A metal or rm much confused 
<8) 

16 Garment whose attractive- 
ness Is no more (8) 

17 Investigation reaches wrong 
outcome after right start (8) 

19 Future arrival (6) 

20 Girl turns tail at the docks (6) 

21 A child of the pen (6) 




MONDAY PRIZE CROSSWORD 

No.8,574 Set by DANTE 

A prize of a Pelikan New Classic 390 fountain pea for the first correct 
solution opened and five runner-up prizes of £35 Pelikan vouchers will be 
awarded. Solutions by Thursday October 13, marked Monday Crossword 
8574 on the envelope, to the Financial Times, 1 Southwark Bridge, London 
SEl 9HL. Solution on Monday October 17. 

Name - 

Address .... 


Winners 8.562 

N. Hormbrey, Newquay, Corn- 
wall 

Mrs C. Flncbam, Stone. Staffs 

D. Parsons, Cyncoed, Cardiff 

D. Taylor. London Nzl 

P.Y. and LD. Thomson. Clith- 

eroe, Lancashire 

Mrs B.5.C- Turvil, Sun bury on 

Thames, Middlesex 


Solution 8,562 



□□□□Han QHQHnnia 
a 0a □ a n h 
aataBaaciRrapinn 


I 


National Service 


At Erdman Lewis we do things differently. 

Determined to build bridges not barriers, 
we developed a national network of local 
offices. A genuine network. Each with its 
own identity yet working os an integral 
part of the whole. Offering the same 
range of services, the same expertise, the 
same understanding of the local market. 
And providing continuity and stability 
through the same local contacts. Whatever 
your needs, now and in the future, we 
make it our business to anticipate the 
changes in yours. 


Local Heroes 


. Erdman 

Lewis 

Prtnpj'r. 

07 1 - 629 ~ 8 T 9 T 


landon. Birmingham, Edinburgh, Glasgow, ,jud leads 


Of hfL'lni^ uinf /nN-my tin- I'ctikun'* fonii. 
i’lV I taw S.iwl/if (it - puN Ui'iir rivnf i'uIo twJ. 

S/biihan 0 


JOTTER PAD