Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.banks From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: banks Tue, Feb 25 1992 Date: Tue, 25 Feb 92 06:35:01 EST Message-ID: DECISIONLINE: Banking & Economy USA TODAY Update Feb. 25, 1992 Source: USA TODAY:Gannett National Information Network GM ANNOUNCES LOSS, CLOSINGS: General Motors announced double misery Monday: A record 1991 loss of $4.5 billion; and details of a restructuring that will eliminate 74,000 jobs. The big loser in the plant-closing battle was the Willow Run, Mich., plant, which was chosen for closing over Arlington, Texas. Chairman Robert Stempel said GM "must accelerate fundamental changes in the way (it) does business." CUTS MAY NOT BE DEEP ENOUGH: Though GM has announced drastic restructuring plans that will close factories and eliminate 74,000 jobs, some analysts say it is not enough. "I'm guessing it'll not be enough, that once done, GM will still be too big," says consultant George Peterson of Auto Pacific Group. Business professor Eugene Jennings of Michigan State says the missing ingredient is how GM will manage what is left. STOCKS FALL BUT DOW GAINS: Most stocks fell Monday, but gains by several blue-chip stocks pushed the Dow to another record close. The Dow Jones industrial average gained 2.23 points to 3282.42 - just topping Thursday's record close of 3280.64. Other indexes were mostly lower. Falling stocks beat winners 1,013 to 726 on the New York Stock Exchange, where volume slowed to 181 million shares. BUSINESS CONFIDENCE UP: Continuing January's trend, business confidence rose in February, according to Cahners Economics. The Cahners Business Confidence Index, which reflects hiring, production and inventory plans in economically sensitive industries, rose to 65.1 from 63.2 in January. Readings above 50 indicate businesses are optimistic. The February level was the highest since June 1990. RECOVERY SLOW TO APPEAR: Signs of an economic recovery will likely not appear before early 1993, according to members of the National Association of Business Economists. NABE President Lynn Michaelis said Monday that even if the recession has already ended, businesses will probably not be hiring, and most people will not think the recession - which NABE says ended last year - is over. NABE RELEASES OUTLOOK: The National Association of Business Economists' forecast panel released its quarterly economic outlook Monday. The panel expects: Gross domestic product to grow at a slim 0.5% annual rate this quarter; GDP growth for 1992 of 2.3%; and an average unemployment rate this year of 6.9%, vs. 6.8% last year. Also, of the 49 NABE panelists, 32 believe the recession is over. LAYOFF NEWS CONTINUES: UAL Chairman Stephen Wolf warned that unless earnings improve, major layoffs at United Airlines will be necessary. In a letter to employees last week, Wolf asked them to cut costs and emphasize service. Also, General Electric Co. says it will cut 2,800 jobs this year from its aviation jet-engine business as part of a plan to save $150 million a year. INTEREST RATES RISE: Interest rates on short-term Treasury securities rose in Monday's auction to the highest levels in 10 weeks. The Treasury sold $11.3 billion in three-month bills at an average discount rate of 3.96%, up from 3.83% last week. An additional $11.2 billion was sold in six-month bills at an average rate of 4.08% vs. 3.93%. NEW CEO AT MERRILL LYNCH: The nation's largest brokerage, Merrill Lynch & Co., will soon have a new chief executive. The brokerage announced Monday that Merrill Lynch President Daniel Tully will assume the title of chief executive, succeeding William Schreyer. Schreyer will remain as chairman of the board until he retires in June 1993, when he turns 65. Tully was elected at a board meeting Monday. OIL PRICES OFF: Light sweet crude oil for delivery in April settled at $18.43 a barrel, down 23 cents, at the New York Mercantile Exchange in slow trading. Home heating oil for delivery in March settled at 51.58 cents a gallon, down 1.13 cents. Unleaded gasoline for delivery in March settled at 53.70 cents a gallon, down .94 cent. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Tuesday at 3282.42, after closing up 2.23 Monday. The New York Stock Exchange composite opens at 227.62, up 0.16. The American Stock Exchange market value opens at 411.80, down 1.05. The NASDAQ OTC composite opens at 624.93, down 4.82. DOLLAR OPENS MOSTLY UP: The dollar opens mixed on foreign markets Tuesday. It opens at 0.5727 British pounds, down from 0.5732; 5.6235 French francs, up from 5.5991; 129.25 Japanese yen, up from 128.70; and 1.6530 German marks, up from 1.6515. (As of 3 p.m. Monday. Source: First American Bank of New York.) 24-HOUR TELEPHONE INFORMATION: USA TODAY Money Hot Line. 95 cents a minute. 1-900-555-5555. Banking & Economy Editor: Jason P. Smith. (919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. 08:0002250000D0225 LEGA- R G Court-to-hear-Prop.-13-case........... A D0225 This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM