Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.banks,americast.usa-today.banks From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: banks Mon, Aug 24 1992 Date: Mon, 24 Aug 92 04:10:13 EDT Message-ID: 08-24 0000 DECISIONLINE: Banking & Economy USA TODAY Update Aug. 24, 1992 Source: USA TODAY:Gannett National Information Network BUSH WANTS YOU TO END DEFICIT: President Bush has a new plan for cutting federal spending - let individuals do it. The proposal: A box to check on the federal 1040 form that would let taxpayers set aside up to 10% of their taxes for a trust fund to help pay the $4 trillion national debt. By checking the box, taxpayers also would trigger automatic cuts in a wide range of federal programs. Social Security would be exempt. MARKETS STUDY WHITE HOUSE RACE: Now that the presidential campaign has started in earnest, financial markets are getting a bad case of nerves. Wall Street favors President Bush and the Republicans in this year's election, because it sees Republicans as more pro-business than Democrats. But analysts' hopes for a Bush victory were shaken last week at the Republican convention. Markets now may examine a Clinton win. DOLLAR COULD FALL, REGARDLESS: What market analysts say lies ahead: The dollar could continue its fall, no matter who pulls ahead in the presidential election. Bond yields should begin to dip again soon. A lower dollar probably won't drive bond yields higher. Economist Kim Rupert says 30-year Treasury bond yields could fall to 7% because the economy likely will remain weak, keeping inflation low. CONGRESS WON'T OK GAINS CUTS: Congress will not approve the capital gains tax cut that President Bush wants, House Speaker Tom Foley (D-Wash.) said Sunday on "This Week With David Brinkley." Bush wants to reduce, to 15%, the rate on investors' income from long-held assets such as securities. The current rate is equal to the investor's general income tax rate. STATES CLOSE JAPANESE OFFICES: About a dozen U.S. states have closed or streamlined their commercial offices in Japan. Since last year, seven states have closed their offices in Tokyo, largely because of tight budgets back home. Japanese analysts say the states are being shortsighted; the closings give the impression Americans are not committed to long-term efforts. `PROHIBITIVE TARIFFS' DUE: The Bush administration announced Friday a list of $3.9 billion in Chinese imports that may be subject to "prohibitive tariffs" if the Beijing government doesn't remove what the USA calls trade barriers. The list includes agricultural and industrial products such as footwear, silk apparel, leather goods, minerals and electronics goods. Tariffs could equal 100% of price. BANKS PLAN JOINT VENTURE: Japanese banks are expected to set up a joint venture to purchase bad real estate assets by year's end, the Asahi newspaper reported Sunday. The Finance Ministry and the banks will enter discussions next week. The Nihon Keizai newspaper reported that the Bank of Japan and the Finance Ministry may set up a company to assess the value of real estate assets to be sold. EXPORT-IMPORT LIMIT TO RISE: The Finance Ministry will increase the maximum limit on the lending by the Export-Import Bank of Japan to encourage more private borrowing, the Nihon Keizai newspaper said. Bloomberg Business News reported that the move is part of the government efforts to stimulate the economy. The government will unveil a package of measures by the end of the month. BANK TO ACQUIRE FIRST CHICAGO: Heritage Financial Services Inc. Friday announced that it has entered into a definitive agreement with First Chicago Bank for Savings F.S.B., to acquire its banking facility and approximately $7 million of deposits in Frankfort, Ill. Heritage Financial Services, Inc., is a multibank holding company with assets in excess of $742 million. BANC ONE ACQUIRES FIRST SECURITY: Banc One Corp. of Columbus, Ohio, said Friday it has completed its acquisition of Lexington-based First Security Corp. First Security merged into Bank One, Lexington, which now has $1.7 billion assets. William R. Hartman, chairman and chief executive of First Security Corp., will assume the same positions with Bank One, Lexington. BRAZIL DROPS ON POLITICS: Brazilian loans dropped 3:8 Friday as investors speculated that a panel investigating allegations of corruption against President Fernando Collor would call for the president's impeachment on Monday. "Impeachment is absolutely inevitable," said Hector Megy, head of Miami-based Megy Advisors. Brazilian Multi-Year Deposit Facility Agreement loans closed at 26 3:4. DOW, T-BILLS DROP; T-BONDS RISE: The Dow Jones industrial average dropped 50.79 points to 3254.10 Friday after the dollar hit an all-time low against the German mark. The NASDAQ composite index was down 4.16 points to 563.70. Yields on 30-year Treasury bonds rose to 7.35% from 7.32%. The discount rate on three-month Treasury bills fell to 3.07% from 3.08%. On the N.Y. Merc: Platinum rose 10 cents to $349 an ounce. GOLD, SILVER BOTH MIXED: Gold fell 10 cents a troy ounce Friday on the New York Commodity Exchange to close at $337.30. Republic National Bank of New York quoted bullion at $337.50. Gold rose in London to $337.40 a troy ounce, from $337.35 late Thursday. Silver bullion rose 1 cent in London to a late bid price of $3.76 an ounce. On the Comex, silver for current delivery fell 0.5 cent to $3.723 an ounce. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Monday at 3254.10 after closing down 50.79 points Friday. The New York Stock Exchange composite opens at 228.61, down 1.77. The American Stock Exchange market value opens at 384.31, down 1.56. The NASDAQ OTC composite opens at 563.70, down 4.16. 24-HOUR TELEPHONE INFORMATION: USA TODAY Money Hot Line. 95 cents a minute. 1-900-555-5555. Banking & Economy Editor: Beth Mann. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. 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