Gleaner, The (Newspaper) - July 2, 1991, Kingston, Kingston TUESDAY JULY 2 1991 BUSINESS FINANCE concerned about EAI debt relief reductions PRESIDENT of tlie American Chamber of Commerce of maica liam Maloney has ten to David Obey chairman of the sub- committee qn foreign op- export ing and related grammes of the U.S House of tives appropriations committee registering his concern about the drastic reduction in the debt relief budget While we are encouraged that action been taken in support of debt relief for Latin American and Caribbean countries I write on behalf of the American Chamber of Commerce of Jamaica to ex- press our disappointment at the reduction in allotment for debt Maloney said He added This is a pivotal year tor Jamaica along Its path of eco liberalization We ask your support and the support of Con- gress In these difficult times by reviewing the debt relief allotment and hopefully restoring the nal requested allotment executive director Dr Ofe S Sudley said that the sub- committee had approved the full amount for the multilateral ment fund of million er the sub-committee only proved million out of the recommended for debt relief She said that the reason so little was appropriated for debt reduction was that Representative Obey was un- der the Impression that Jamaica is the only country interested in the debt relief portion of EAI and he has heard very little from the re- gion to convenience him se The Association of American Chambers of Commerce of Latin America and the Caribbean CLA and the Council of the Ameri cas C of A have jointly taken the leadership in this region to assist the Bush administration in the in of the EAI Jamaica is affiliated to and to the Chamber of Commerce of the USA the largest federated business In the European shares climb after Japan's rate cut LONDON July 1 Reuten SHARES were higher on major stock markets by Monday's Euro- pean Inspired largely by gains on the Tokyo market after Japan cut its discount rate to 5 5 per cent from six per cent Currency dealers said market perceptions of the strength of the Japanese economy helped the yen to stand Its ground despite the cut in the key Interest rate The dollar was steady around 1 81 marks and Just under 138 yen in a quiet market awaiting further U S economic data It traded at 1 8094 marks and 137 74 yen after Friday's London close of 1 8130 and 13785 In London the Financial Stock Exchange index of 100 leading shares was 21 7 points higher at at 1130 GMT helped by strong interest in the index futures contract The French index was 15 77 points up at 39 while Germany's index was more cautiously firmer at showing a 345 point gain U S data was expected to give more evidence of economic ery supporting the dollar The National Association of ing Management survey for June due at 1400 GMT was forecast to show a rise to 46 8 from 45 4 in May U S May construction ing released at the same time was seen up 0 5 per cent after an 0 8 per cent gain in April But currency traders said major moves were unlikely because they were reluctant to buy before Thursday's U S Independence day holiday and key U S Jobs data on Friday The mark was under pressure because of the conflict in via a possible flight of capital out of Germany and the costs of man unification With the mark under water and U S data expected to be tive we're looking for the dollar to test 1 82 marks this said a US Investment house economist in London Economists said the yen had remained firm against the mark at just more than 76 0 yen de spite the Japanese rate cut They said the need to attract capital to fund unification and to curb tion would keep German interest rates high The U.S is on the way to recovery albeit a modest one and Japan has taken the first step to higher said the ment house economist But Germany can't afford to cut rates and Is set for even er taxes That makes the mark the currency to sell Gold bullion drifted down from its previous London closing level of 36925 dollars an ounce to around 368 80 dollars as dealers awaited the opening o U S markets for guidance August futures for the mark North Sea Brent Blend crude oil traded three cents lower at 18 69 dollars a barrel In don Oil talks try to ensure supplies PARIS July 1 Reuter OIL producing and consuming countries broke new ground on Monday when they began talks to find ways to limit major oil price Introducing VICTORIA MUTUAL I COMPANY LIMITED 2 Plaza Kingston 10 COMMERCIAL BUILDINGS and spec el c ike we do We c e ve ra es c AUTOMOBILES A s an automob le is on asset terms us You ii be of m the lona run VICTORIA swings without intervening directly In the market Times have changed We can see all around us that ancient riers have French Foreign Minister Roland Dumas at the opening of a two-day meeting in Paris involving 23 countries The talks the first since the subject was broached In 1975 hope to Identify areas for cooperation which will ensure future supplies without direct market intervention France and Venezuela have in convening this meeting made it clear that our aim is not to fix prices or production gian Foreign Minister Thorvald Stoltenberg said Venezuelan Foreign Minister Ar- mando Duran said the tension and distrust of the past 20 years would ease if producers invested in ries and retail outlets in consuming states which in turn would get Involved in oil production Such investment by the countries is of the essence if we wish to achieve the expansion of production and refining Duran said The broad-based talks have won more support from producer coun tries than from the consumers While most of the producers are represented at ministerial level key consumers have fielded ing delegates and the largest con- sumer the United States has sent only an observer from the State Department European Community Energy Commissioner Antonio Cardoso de Cunha said the EC was again con- the creation of a strategic 011 reserve to supplement national stocks French Industry Minister ique Strauss-Kahn told a news briefing the commissioner reported this at a closed session on the opening day of the talks Such a stock is to act as a dissuasive factor against wild price Strauss-Kahn said An earlier plan was dropped ter failing to win support from the 12 EC members Cardoso also said there would be a discussion on Tuesday on the EC proposal to Introduce a tax aimed at reducing carbon emissions Strauss-Kahn added The plan has worried a number of oil-producing countries which be- lieve it would hurt their sales Manufacturing expands recession ends TEMPE July 1 Reuter THE manufacturing sector of the U S economy expanded in June for the first time in a year leading the National Association of Purchasing Management NAPM on Monday to declare that the recession begun last July was over In Its monthly survey of chasing managers NAPM said its index rose to 50 9 per cent last month up from a revised 45 4 per cent in May A reading above 50 suggests the economy is expanding With the purchasing managers index over 50 per cent the sion is essentially over for the sector as well as the overall said Rohert Bretz chairman of the business survey committee The U S recession began In July 1990 It was the first time the U S economy had sunk into recession in eight years The Dow Jones industrial age jumped 3355 points to 30 at noon EOT on the news It had been buoyed earlier by news I that the Japanese central bank had cut its discount rate and the Tokyo stock market had soared The NAPM made up of who buy supplies and materials for US corporations said production grew in June for the first time since July 1990 while new orders rose sharply for the second consecutive month June was the fifth consecutive month the index has gained from the previous month but was the first time It bolted over the key 50 per cent mark since May 1990 when it was 50 1 per cent the NAPM said It said the June reading ended 12 months of declines for the economy But US Treasury bond prices reflecting the Improved outlook for the economy and the likelihood that interest rates would not be pushed lower fell The bond slipped of a point or 3.44 dollars per dollar face value Its yield rose to 8.44 per cent from 841 per cent on Friday This recession was shorter and less severe than the previous said Bretz A continued sharp rise in new orders the engine of virtually assured ued growth in production over the months ahead he said Growth In inventory purchases will most likely provide further aid to the Infant economic said Bretz As demand picks up and the economy strengthens ers are expected to replenish tories which fell in June for the straight month Japan cuts rate to ease slowdown TOKYO July 1 Reuter JAPAN S financial authorities said on Monday they were cutting the key discount rate to maintain eco- growth but the move left them open to charges it was a bailout for Tokyo's stock market The whole issue has become so political because of the stock scandal that they can't avoid a bad image said Jesper Kail economist at S G Warburg ties Not that it's the main reason they did it but it will be difficult for the Bank of Japan BOJ and nance Ministry to argue that the is nif m fir week after the presidents of two top Japanese brokerages resigned The presidents of Nomura Secu Co Ltd and Nikko Securities Co Ltd resigned after revelations the brokerages had improperly ered the Investment losses of big corporate clients and that affiliate firms had lent funds to gangsters Two other Big Four brokerages Daiwa Securities Co Ltd and chi Securities Co Ltd also admitted compensating elite clients for losses All four have denied doing anything Illegal Tokyo financial markets have been speculating about a rate cut since the start of the year with expectations mounting since April
