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 Tue, Sep 29 1992 Date: Tue, 29 Sep 92 04:35:07 EDT Message-ID: 09-29 0000 DECISIONLINE: Banking & Economy USA TODAY Update Sept. 29, 1992 Source: USA TODAY:Gannett National Information Network EUROPE LOYAL TO SHAKY UNION: Europe's top finance officials vowed Monday not to create a "two-speed" currency arrangement to replace the badly battered European Monetary System. But it's hard to find anyone who believes them. "They don't want to believe the existing system is dead," says Mike Faust of MMS International consulting firm. Finance ministers said they would continue with plans for union. (For more, see special Europe package below.) MUTUAL INVESTMENTS ARE LOWER: Investors poured $3.5 billion into stock mutual funds in August, about half the $6.6 billion that went into funds in July. Bond funds brought in $9.3 billion of investors' cash in August, vs. $11.9 billion in July. The figures don't include redemptions and net exchanges in and out of funds. Funds say stock fund purchases this month are higher than August's. GM NEWS HELPS DOW: Traders said Monday the Dow, up 25.94 points to 3276.26, was helped a bit in midafternoon by news that General Motors reached a tentative settlement with strikers at a Lansing, Mich., plant. Uncertainty about the economy is discouraging buying, traders say. The past two years, stocks have been rising while the economy has floundered. Investors seem to be growing more skeptical. T-BILL INTEREST RATES FALL: Interest rates on short-term Treasury securities fell in Monday's auction to the lowest in nearly 30 years. The Treasury Department sold $10.2 billion in three-month bills at an average discount rate of 2.73%, down from 2.91% last week, the lowest rate since Oct. 29, 1962. It sold $10.3 billion in six-month bills at an average discount rate of 2.85%, down from 2.93% last week. BANK TO ACQUIRE WENDOVER: State Street Bank and Trust Company of Boston has entered into a definitive agreement, subject to regulatory approvals, to acquire Wendover Financial Services Corporation, parent company of Wendover Funding Inc. Wendover is headquartered in Greensboro, N.C., and provides contract servicing for banks, thrifts, credit union, Resolution Trust Corporation and other concerns. SEC APPROVES FUNDS: Rushmore Funds is getting a big-name portfolio manager and Frank Cappiello is getting back into mutual funds. The Securities and Exchange Commission has approved three funds - the Cappiello-Rushmore growth, emerging growth and utility income funds. Cappiello has been looking for a mutual fund to manage since the Carnegie group announced plans to sell the funds he managed. BIOTECH STOCKS CAN BE TRADED: The American Stock Exchange and Chicago Board Options Exchange have just received approval to trade options on their biotech stock indexed beginning Oct. 9. Both applied a year ago when biotech stocks were hotter than they are now. The indexes will give an investor an easy way to bet on further declines or a turnaround for the slumping bunch. LONG-TERM T-BONDS FALL: The yield on 30-year Treasury bonds fell on Monday to 7.34% from 7.36%. The yield on 10-year notes Monday fell to 6.36%. On the New York Mercantile Exchange, light sweet crude oil rose 8 cents to settle at $21.76 per barrel in light trading. Trading was thin because of Rosh Hashanah. GOLD, SILVER DOWN: Gold and silver prices fell Monday. On the Commodity Exchange, gold for current delivery ended at $347.60, down $1.70. Republic National Bank quoted a price of $347.85, down $1.45. Gold fell in London to $348.00 from $349.40. Silver bullion fell in London to $3.74 from $3.82. On the Comex, silver was quoted at $3.730, down from $3.799. SPECIAL PACKAGE ON EUROPE: SINGLE CURRENCY STILL PLANNED: After meeting in Brussels, finance ministers from the European Community announced Monday they would press ahead with plans for economic union, including a single currency. But the EC has split with Britain and Italy among those with floating exchange rates - that is, not keeping currencies in line with the German mark. They can't tolerate the high interest rates it requires. MINISTERS CAN'T AGREE: European Community economics and finance ministers couldn't agree on a four-point plan that was scheduled to be issued at the end of Monday's meeting. Belgian Finance Minister Philippe Maystadt said the majority of countries agreed. He did not name all the opposing countries, but said that one was England. CURRENCY COULD BE REPLACED: The European currency unit could be superseded by a new, stronger currency, analysts say. Weaker currencies would lose some of their potency or be eliminated. An analyst at Credit Lyonnais said that a move to lessen the amount of weaker currencies in the Ecu basket "would be the best-case scenario for holders of Ecu bonds." IRISH TRADING STAYS CALM: Money brokers focused attention on selling the Irish pound, the latest speculative target in the European currency markets, but trading remained calm compared to the wild spasms of the past few weeks. The Central Bank of Ireland raised short-term interest rates to make its currency more attractive, but the punt, as it is called, did not strengthen. (End of package.) DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens at 3276.26 Tuesday after closing up 25.94 Monday. The New York Stock Exchange composite opens at 228.70, up 0.97. The American Stock Exchange market value opens at 377.25, down 1.24. The NASDAQ OTC composite opens at 575.34, down 1.86. DOLLAR OPENS DOWN OVERSEAS: The dollar opens mostly down on Tuesday. It opens at 0.5789 British pounds, down from 0.5839; 4.8940 French francs, down from 5.0135; 1.4518 German marks, down from 1.4823; and 119.77 Japanese yen, down from 120.70. (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: 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