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, Oct 23 1992 Date: Fri, 23 Oct 92 04:43:42 EDT Message-ID: 10-23 0000 DECISIONLINE: Banking & Economy USA TODAY Update Oct. 23-25, 1992 Source: USA TODAY:Gannett National Information Network JOBLESS CLAIMS TAKE THIRD DIVE: First-time claims for state unemployment benefits fell 15,000 to 368,000 the week ended Oct. 10, the Labor Department said Thursday. That's the third straight drop and the lowest level since Aug. 11, 1990 - a hopeful sign that the pace of layoffs might be slowing, experts say. "It's too soon to know whether this (improvement) is anything more than a false dawn," says economist Robert Dederick. (For more, see special Economy package below.) NEW ENGLAND STILL IS WEAK: Personal income in New England grew 3.9% the second quarter from a year earlier, the slowest growth of eight major regions in the USA, the Commerce Department said Thursday. In the Far West, growth averaged 4% because weak growth in California offset strength in the Pacific Northwest. The Rocky Mountain states had the strongest showing, up 6.4%. USA THREATENS TO END TALKS: U.S. officials said Thursday trade talks with the European Community are off unless the EC will compromise on farm subsidies. That disagreement has held up talks to conclude six years of negotiations on the General Agreement on Tariffs and Trade. Analysts say the USA may spark a trade war by imposing tariffs on $1 billion in EC imports to retaliate for EC subsidies on oilseeds. BANKAMERICA EARNINGS SURGE: BankAmerica Corp. said Thursday its third-quarter earnings rose 67%, even though it is carrying more than $4 billion in troubled assets and is bracing for a decline in the southern California economy. The bank reported third-quarter earnings of $476 million, or $1.22 a share, in the third quarter compared with $285 million, or $1.20 a share, in 1991. MARKET ANTICIPATES CLINTON WIN: With the election just 11 nail-biting days away, Clinton mania continues to wow 'em on Wall Street. And some pros see the rage only growing. But many stocks widely touted by pros already have shot up in anticipation of a Clinton win. Advice from veteran market analyst Larry Wachtel of Prudential Securities: Any pluses will take at least a year to come to fruition. "Think long term." U.K. WANTS TOUGHER BANK RULES: The British government said Thursday it will introduce tougher banking legislation following the Bank of Credit and Commerce International fraud. Chancellor of the Exchequer Norman Lamont said in parliament that the government has accepted the official report into the supervision of BCCI. The report criticized Bank of England officials. END TO DOUBLE TAXATION DUE: A senior Russian official said Thursday that he doesn't expect any delay in the passage of legislation that protects American investors in Russia from double taxation. The chairman of the Supreme Soviet subcommittee on taxation said he doesn't foresee any obstacles to the legislation ending the double taxes on American forms there. CITICORP MAY TAKE CHARGE: Citicorp Thursday said it might incur a fourth-quarter restructuring charge. Officials of the USA's largest bank holding company did not disclose any details. Two days earlier, the company reported third-quarter net income of $116 million, or 17 cents a share, compared with a loss of $885 million, or $2.72 a year earlier. SPECIAL PACKAGE ON ECONOMY: ANDREW SKEWS NUMBERS: Despite the third straight drop in first-time claims for jobless benefits, economist Robert Dederick says the improvement is not as strong as it looks, because Hurricane Andrew and a General Motors strike ratcheted the numbers higher in August and September. The gains may not be enough to improve the unemployment rate, which was 7.5% in September. CLAIMS NEED TO DROP MORE: Jobless claims "need to move down to 350,000 before we see any meaningful pickup in the employment situation," says Veronika White, an economist at First Fidelity Bancorp. in Lawrenceville, N.J. Just this week, McDonnell Douglas said it will slash 1,700 jobs, United Technologies said it will eliminate 7,500 jobs and Westinghouse said it will cut 1,400 jobs. WATCH FOR EXPORTS TO DROP: Other reasons for caution: The jobless-claims number doesn't include the 22,451 claims filed under a federal emergency program for people unemployed more than once the past year. If exports plunge, another wave of layoffs could hit the sluggish economy. Manpower Plus President Audrey Freeman said exports have turned the other way. "We won't get much job growth here," Freeman says. (End of package.) GOLD FALLS, SILVER INCHES DOWN: On the New York Commodity Exchange, gold bullion for current delivery fell $1 Thursday on the New York Commodity Exchange to $343.10 a troy ounce. Also on New York's Comex, silver bullion settled at $3.781 a troy ounce, down from Wednesday's close at $3.79. LONG-TERM YIELDS RISE: The yield on 30-year Treasury bonds rose to 7.61% from 7.60% Thursday. The discount rate on three-month Treasury bills rose to 2.93% from 2.91%. Comex gold fell $1 to $343.10 an ounce. Light sweet crude oil lost 26 cents to $21.35 a barrel on the New York Mercantile Exchange. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens at 3200.88 Friday after closing up 13.78 Thursday. The New York Stock Exchange composite opens at 228.10, down 0.50. The American Stock Exchange market value opens at 374.51, up 1.09. The NASDAQ OTC composite opens at 597.12, down 0.03. DOLLAR OPENS DOWN OVERSEAS: The dollar opens down on Friday. It opens at 0.6156 British pounds, down from 0.6207; 5.1110 French francs, down from 5.1350; 1.5068 German marks, down from 1.5132; and 120.70 Japanese yen, down from 121.80. (As of 3 p.m. Thursday. 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 update (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