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 Mon, Apr 13 1992 Date: Mon, 13 Apr 92 05:42:38 EDT Message-ID: 04-13 0000 DECISIONLINE: Banking & Economy USA TODAY Update April 13, 1992 Source: USA TODAY:Gannett National Information Network ECONOMIC REPORTS OUT THIS WEEK: The government releases key economy reports this week. Among reports: Tuesday, retail revenue is expected to have fallen 0.4% in March; Wednesday, industrial production is expected to be up just 0.3% for March; Thursday, the trade deficit report should show it fell to $5.5 billion in February from $5.8 billion January; Friday, housing starts are expected to be down 4% for March. REPORTS CAUSE FED MOVE: The Federal Reserve pushed down interest rates last week partly because some upcoming economic reports could make it look like the recovery has lost steam, analysts say. Economist Michael Englund of consulting firm MMS International in Belmont, Calif., says, "In the next couple months, the roller coaster is likely to go the other way - down - again." WEAK NUMBERS ON THE WAY: Some economists say the postive economic reports that have been coming out the past few months could soon dry up. Reasons: Few economists think consumer spending was as strong in March and April as it was in January and February; home sales likely have cooled from February's hot pace; most forecasters say the jobless rate likely will remain near 7.3% in April and May. BANKS OFFER CALLABLE CDS: New callable certificates of deposit are being introduced by some banks. But while they offer a higher rate of return than most CDs, banks can terminate the long-term CDs after a year if the rate is higher than the bank wants to pay. The callable CDs have rates from 6.4% for five years at Wachovia Bank of Georgia to 7.4% for a 10-year CD at Enterprise National Bank in Palm Beach Gardens, Fla. DOW ENDS WEEK WITH GAIN: The Dow Jones industrial average jumped 30.41 points Friday to 3255.37, up 6.26 points for the week. In Tokyo Monday, the Nikkei averagewas continuing its resent slump, falling 143.01 points to 17,707.65 at midsession. TIME CHANGE DELAYS NUMBERS: Daylight-saving has thrown a wrench into coverage of the Japanese stock market by U.S. newspapers. The Japanese market is open from 9 a.m. to 11 a.m. Tokyo time. It closes for a midday break until 12:30 p.m. The market opens again for an afternoon trading session until 3 p.m. The market close now comes at 2 a.m. EDT, making it difficult for papers in the USA to include it. CREDIT CRUNCH COULD SPREAD: A credit crunch in Japan that may result from the slump in Japanese stocks could put the squeeze on banks in the USA, analysts say. Big Japanese city banks invest heavily in stocks and have lost trillions of yen in the market's fall, which may force them to cut lending. George Salem, an analyst for Prudential Securities says, "If they pull back, a lot of borrowers are going to starve." CONSUMER PRICES RISE: Sharp increases in the costs of food, gasoline and clothing led to a 0.5% rise in consumer prices last month, the Labor Department said Friday. That was the biggest jump in the consumer price index since October 1990, but economists dismissed the increase as a one-time surge unlikely to continue because of the economy's weakness. Inflation is running at a 3.5% annual rate this year. MORTAGE RATES FALL: Mortgage rates slid last week, and economists say they expect more declines. Thirty-year fixed rates averaged 8.84%, vs. 8.96% a week earlier, the Federal Home Loan Mortgage Corp. says. Mortgage rates peaked this year at 9.03% four weeks ago and have fallen since. One-year adjustable rates averaged 6.15% last week, vs. 6.22%. OIL PRICES UP: Most petroleum prices rose Friday. On the New York Mercantile Exchange, light sweet crude for May delivery settled at $20.44 a barrel, up 13 cents from the previous day and up 15 cents for the week. Among refined products, wholesale home-heating oil for May delivery settled at 56.14 cents a gallon, up .62 cent from the previous session but down .14 cent for the week. GOLD UP, SILVER MIXED: On the New York Commodity Exchange, gold closed at $341.10 a troy ounce Friday, up $1.60 from Thursday. Later, the Republic National Bank in New York quoted an ounce of gold bullion at $340.65, up $1.25. On the Comex, silver for current delivery settled $4.10 a troy ounce, down 5 cents from late Thursday. Silver bullion rose in London to $4.14 a troy ounce from Thursday's $4.09. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Monday at 3255.37 after closing up 30.41 points Friday. The New York Stock Exchange composite opens at 223.27, up 2.17. The American Stock Exchange market value opens at 388.01, up 2.07. The NASDAQ OTC composite opens at 584.24, down 2.51. 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. 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