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 Fri, Sep 25 1992 Date: Fri, 25 Sep 92 04:37:05 EDT Message-ID: 09-25 0000 DECISIONLINE: Banking & Economy USA TODAY Update Sept. 25-27, 1992 Source: USA TODAY:Gannett National Information Network GLOBAL TURMOIL HAS MAJOR IMPACT: The fluctuations of global currencies may seem like much ado about nothing much. But while most analysts say the economy is not in immediate danger because of the events in Europe, history shows currency troubles are usually linked to more fundamental problems in the global economy. When those problems are combined with bad economic policies, a currency crisis can warn of disaster. CHANGES INFLUENCE INVESTMENT: Sharp currency fluctuations can have an immediate impact on the world's financial markets because global investors can move their money in seconds by computer. In the long run, currency changes influence international trade and investment. Unstable exchange rates make it harder and more expensive for U.S. companies to do business abroad. The USA currently depends on export growth. YEN'S FALL CONSIDERED TEMPORARY: The dollar hit a record low against the Japanese yen for a second straight day Thursday and may slip further next week, experts say. But economists doubt the dollar's drop against the yen will last long, and they say a brief dip will have no impact on the U.S. economy. A weaker dollar makes U.S. goods more affordable to Japanese - but it would have to stay down weeks to boost exports. JOBLESS CLAIMS STILL RISE: The economy continues to hit workers. The number of people applying for state jobless benefits rose 15,000, to 414,000, the week ended Sept. 12, the Labor Department said Thursday. That's the fourth straight weekly rise and the largest number of first-time claims since 474,000 the week ended Aug. 8. Hurricane Andrew added to figures. But offices were closed that Monday for Labor Day. SPONSORS WITHDRAW CREDIT BILL: Sponsors withdrew the Credit Bureau Reform bill Thursday after the House narrowly passed a version that weakened protection for consumers. The bill was designed to make it easier for consumers to get free copies of their credit reports and to force credit bureaus to correct errors quickly. But an added provision would have allowed some state laws to preempt the federal protections. COLLECTIVE TO ACQUIRE MONTCLAIR: Collective Bancorp Thursday said it has signed a definitive agreement to acquire Montclair Bancorp Inc. in a $58 million transaction. Collective will pay $24.15 cash for each of 2.4 million Montclair common shares outstanding. The purchase price is below Montclair's book value of $27.32 a share because the thrift's bad loans have been a bit high, said analyst Sam Beebe. 18 CHARGED IN INSIDER TRADING: The Securities and Exchange Commission Thursday filed suit against 18 individuals and an unnamed brokerage firm, charging them with using insider information to trade securities of motel chain Motel 6. The SEC said the individuals and the firm traded the securities before the motel chain was acquired by French company Accor S.A. in 1990. COMMISSION WON'T SCOLD SPAIN: The European Commission likely won't take action against the Spanish government for imposing foreign exchange controls to prevent peseta speculation, EC officials said Thursday. EC legislation allows member states to control the exchange rate in case of a crisis. The question is whether the currency turmoil in Europe and the assault on the peseta justifies the move. GOLD WINS IN TURMOIL: One beneficiary of Europe's money mess is gold. Since the currency crisis began two weeks ago, the price of an ounce of gold has inched up 3%. Thursday, gold rose 60 cents to $349.20 an ounce. In turbulent times, investors tend to flock to gold as a safe haven. Some analysts say now that the rally will last because worldwide gold production will not rise until 1995, for on reason. TREASURY BONDS FALL: The Dow Jones industrial average climbed 9.18 points to 3287.87. The NASDAQ composite index rose 2.97 points to 585.93. The yield on 30-year Treasury bonds fell to 7.41% vs. 7.48%. The discount rate on three-month T-bills fell to 2.89% from 2.92%. Light sweet crude oil fell 21 cents to $21.79 a barrel on the N.Y. Mercantile Exchange. GOLD, SILVER RISE: Gold and silver were up Thursday. On the New York Commodity Exchange, current gold bullion settled at $349.20 a troy ounce, up 60 cents from Wednesday. Republic National Bank of New York said gold was up 50 cents at $349.10 a troy ounce. On the Comex, silver bullion for current delivery was $3.814 a troy ounce, up from $3.79 Wednesday. Silver bullion fell in London to $3.81, from $3.83. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens at 3287.87 Friday after closing up 9.18 Thursday. The New York Stock Exchange composite opens at 229.98, up 0.56. The American Stock Exchange market value opens at 380.94, up 1.03. The NASDAQ OTC composite opens at 585.93, up 2.97. DOLLAR OPENS MOSTLY DOWN: The dollar opens mostly down on Friday. It opens at 0.585 British pounds, unchanged; 5.033 French francs, down from 5.103; 1.482 German marks, down from 1.498; and 120.30 Japanese yen, down from 121.45. (As of 3 p.m. Wednesday. 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: Beth Mann. (1-919-855-3491) Making copies of USA TODAY downdate (Copyright, 1992) for further distribution purposes 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