THE CHINA: MAIL
MONDAY, FEBRUARY 27, 1961.
Weekly survey_of ́American economy
GOLD OUTFLOW CHECKED
Active week in
in Wall
Wall Street
London market
London, Feb. 26.
Stock moved upwards on Friday after an active week with buyers taking the upper hand.
And
shows
7th gain in a row
New York, Feb. 26.
Stocks registered their seventh weekly advance out of the eight thus far
in 1961 in the heaviest week of trading in 27 years.
share,days.
But economic recession deepens
New York, Feb. 26.
HONGKONG
STOCK EXCHANGE
Our Own Currexpundent o
Business done at the Hong- Kong Stock Exchango this morning amounted to proximately $3,470,000. Noon quotations at the morning's transactions;
5Dazes BUYSTS BOULETE KFC Bank
XD
Taikoo
it could be said that after the first month of the Kennedy administra Lombard tion the U. S. imbalance of interna- tional payments has shown improvement
Sales in this holiday-shorten-, 1900, level acts as a barrier to Earnings reports for 1960 ed week totailed
20,606,010 | higher prices, the more dis-hentinued mixed, but since, If an exact comparison were possible, shares, or a dully average ofcouraged investors are likely to Sinclair, Oil rich Metro-Gold- 3,174,102 shares, the highest become.
wyn-Mayer brightened this July 22, 1033, when 42,329,033 dally average since the week of
picture with prediction of sub- As it is now, ihe business stantially higher net inccine changed hunds in six { news
offered this year. background hos Volume the
very Utfo encouragement to week
before investors. The dominating fac- amounted to 23,021,055 shares or tor in the price advance has 9,804,391 shares per day.
bean technical strength, and one of the strongest proofs In this regard continues to be the excess of daily odd lot sales aver purchases
Higher employment ügyres,; tiny fraction and Courtaulds Wall Street's trend, better car¡ were 41⁄2 pence lower at 43/6. sales and a return to more nor-Imperial Chemical Industries inal conditions in that Industry closed at 70/-, a gain of 3 plus the Improved look of ex- over the week. ports in January-although the Steels, engineerings, motors. board had warned one single textiles and stores all made shares month's Agures can prove mis- gains
chipping leading helped the buying zest, paced by the P. & O. glant,
It was a week of many commoved upwards. pany announcements, and some Like Jaguar and Unilever, proved disappointing bringing weak- ness in their counters.
Preliminary procedures other cases have shown contraction in margins,
The Financial Times Index vaulted 4.0 points over the five sesslous with the best perfor mance on.Frklay which notched three points. The index closed at 328.4 against the 1000-01 high of 342.0 and a low of 203.4.
Many smaller companies out- side the index scored good gains. GOOD GAINS
In some
a shade better by the end of the Gold mining counters tended
week on Cape buying but bust- ness had been limited all week. Oils worked higher but their narrow movements with Shell pacing the rise, up 2/3 over the week at 146/0. Ultramar moved ups/de on reported American buying.
The volume of transactions thus far this year, has been run ning nearly 30 per cent ahead of the like 1000 period, and the 4.4 million share daily average is well above pace of 4.2 million.
the record 1920
.HEAVY VOLUME But whlie the sales volume Glit-edged met demand for the was extra heavy this week, the dated bonds but the undated advance in prices was relatively issues fell back through neglect, small. The list made several Dollar stocks moved higher with attempts to pass the June, 1000 Wall Street, International recovery high of 656.42 in the Nickel lost 3 points over the Dow Jones Industrial average, lue chip performances over week.
but each time this high was touched, selling set in: Should the list move into new recovery high ground next week tech-| niclons see a sustained advance in the cards.
the week showed Unilever Foreign bonds moved through 0/1% down at 157/6, British the week tuc changed but American Tobacco 37- off at some Swiss buying of Greeks 05/- and Imperial Tobacco 3/9; made these lens stronger on lower at 80/
Friday.
the
The uptrend also can be attributed to
overall investor optimism over the balance of 1961. And the anti-recession moves in Wa- abington seemed to hayo a bolstering effect, :
Steel production was one bright spot in the business pic
ure last week, rising to its highest level in eight months. But no substantial pickup expected until April,
Retail sales finally recovered from the bad weather, but musk other major business baro- motors were on the decline, last
Vickers gained nearly 1/- to j Rubbers staged a daily ud- But these same technicians 28/10. Rolls Noyce lost a vance, as did leading teas.-UPI.note that the longer this June,' week,
B.O.A.C
MOST ACTIVE
most
Sperry-Rand was the active stock on the week. Bruns. wick Corp. wins runnerup with 495,400 shares and closed $57% up 2%. Sperry-Rand was
and touted by brokerage" Arms Brunswick was said to be ready to cash in on the educational vill being pushed in Washington.
San Diego Imperial, Electric al and Musical Industries and General Electric rounded out the top five of most active stocks.
100 73
t.
Bales
-1050 1870
1000
10 * 1870
68 1870 10.6 1800
Lon. Reg.
$315
12
200721
more TM Cas
•
10.00
19.800 10
1000 @ 10.DO
$100 € 10.00
Wheelock. 19:20 14.30. 2000 $ 12.20
3000 19.20
4000 F 12.19
500 20 12.20
2000 G 12.10
10780 6 12.20
2000 év 17,20
2000 ( 29.30
133
133
000 pp 133
000 103
economic than the recession at home, Most notable on this acore has been the slowing down of the outflow of U.S. gold almost to a trickle- only some $115 million left the U.S. in the past four weeks in gold transaction while the internn. tional price of gold dropped to its lowest point since 10c Dock .. the speculation last October.
On the other hand the U.S. recession deepened in many rec- tors in spite of various pump- priming measures Initiated by Washington. The only light spot, and quite significant at that, The Dow-Jones averages was last week's climb in steel finished the week with 30 in-production to almost 55 per cent dustrials at 655.00, just below of the Industry's capacity, the the June 0, 1960 high of 050. highest in seventeen weeks. 42. The roll average was up However, comparison with 1.17 to 145.49; utilities up 33 steel output figures a year ago to 107.89; and 65 stocks up 1.21 was still dismal. Output in 1801 to 221.71-URI.
to date totals ten and half mall- Hon tons, some 45 por cent be- low the same period of 1980.
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BRITISH.
OVERSEAS
B・O・A・C07
POR
20 20.30 1000 g 20,40 0000 20.20
HK Hotel.
-47 4714
300 07:47
5000
1600 #714
12000
One of the factors helping · Provident foreign manufacturers, pecially in the electrical equip ment field, has been the recent price-fixing scandal involving leading U. S. manufacturers. This is working against the HK Land.. 15 84 300 65 developing "Buy American" trend. Some firms were reported as saying that if they cannot recoup their losses, they will feel jusiifled in seeking cheaper, foreign goods.
Yeumati
136
400
1134
This trend in favour of con- Ch. Light 20.60 2500 30 tinued imports, if confirmed over CONSUMER SPENDING 1901, would spell trouble for Consumer spending is down, both economic fronts of the however, and although bad wea- | United States. It would make a ther may be blamed to an ex- correction of the international tent, the deepening of the re-payments position that much cession and contraction in con- more almèult. It would also Tectrie. XD usmer Income must be consider mean continued rough going for ed as factors.
scores of U.S. Industries.
Telephone
(New)
100 1500
400
300 at 20.00
100 * 29.00
100
3000
341
431
1500
43
inv: 9.00 10 0000
6000
Anti-recession measures, fred off from the White House at un- One good example of this is a Cement 0016 precedented speed, And only steel where U. S. production is Dairy Farm 3412 slow going in Congress. The running for below desired food stamp plan for the needy capnelly. Yet imports, as a share Watson faces delay and confusion on all of U. 3. consumption nan as high | Allied levels. There are warnings of as 62 per cent in barbed wire, the plan's high cost and doubts 42 per cent in wire nails; 33 whether it will increase consum- per cent in fencing, 31 per cent er consumption.
Textilo in wire rods, 18 per cent con- creta. reinforcing bars.
Even so, the various anti- recession measures, as conceived by Kennedy, are considered in- sufflelent by organised labour. The AFL-CIO contends that event they are all adopted, they will only provide for an economic growth of 3.5 per cent
This would mean, the labour organisation says, that with the ever growing population, un- start of employment at the
Nanyard
11.05 8.10
13.00
8000 8.30
2000 19 6,33
10000
Since there is little chance of Amál. Aub 1.80 050 1000 0.90 any
2000 import price increases in
0.90 these lines, some U. S. industry spokesmen think easing Euro- pean demand could actually lead to intensifed price competition. Rub
UPI.
'
Exchange rates
Trust 1.00
Cily Hotel
(right) Realty
Gliman
Asla Nav...
8.20 11000 0.10 ·
39 1300 25.
2.079 2.30 20000 ☎ 2.10.
10000 3.10
1.598 3.85 1500 3.00
Business was done in the Zoond) Upderwriters 13.30
exchange market this In'! Inv...
15 morning of the following ruder;
1902 would be seven per cent of the total labour force as against the 6.6 per cent in January 1901.
Among other things labour is unofficiat pressing for an emergency one- shot tax cut, something Kennedy has been saving for when things get really bad.
One such proposal from the AFL-CIO would have the gov- prument withhold SIO tess every week from the paycheck of every worker for a period of tea weeks, thus pumping an additional $5,000 million Into the consumers' pocket. The big question mark is would the consumer spend the money? Numerous surveys show that the average consumer is cautious with his spending money · at: present and the figures for con- Bumer spending, spécifically
US dollar (per #1) Sterling hotes (per £1).... Australian notes" (per ¿1) ... Indonesian Rupiah. (per 100) va Siam ticals (per 100) Singapore (Stamile)
AGREED
- (3000 -4+ 3.673
· 13000 qr 3,555
150 1.30
13.00
Humphraye
20
Star Ferry
Macao Elco 13.00
15.04
Lane, Craw
47
$2.00
Cald Macy
CL00
(Ord)
57 GA
Erit.
1 Bi
20,20
Vibro
MERCHANT
RATES, NEW LIST
The following is a new list of Agreed Merchant Rates
retail sales, in January tend to which came into effect this morning:
MINIMUM BUYING With conte, Without L/Credit.
confirm this. Bo do figures for
business failures (bankruptcies)
MAXIMUM BELLING
which in January reached a rate | Sterling
1/2 2/32
1/3 TT.
1/3 1/32 1/3 1/8
of 01 por 10,000, the highest pinco
the depth of the 1958
recession.
Any tax cut would further imbalance the budget. Already
now, the Kennedy administra
the economy speedily-funds (East Bouth Africa
tion, moving to pump funds into
that originally would have been
spent later feare that it may
4. Aden
1/2 29/32
Test
South America & Fiji). 1/2 29/10
82 3/4 Rupees (India)
have to ask Congress for extra)" (West Africa, West Indies money to continue the process |
second in the
quarter Federal funds be shut off just as an economic upturn may ba developing. The eltuation pointa | to an enlargement of the budget | defcit for the year ending June 30, recently estimated di $1,000 million.
Rupees (Persian Gulf Portsj But in epite of these develop- Rupee (Ceyign) ments, and in some cases pro- cisely because of them, foreign
manufacturers are said to be
maintaining a tight grip on theit | Rupeet (Pakistan) U. S. markels.
RISING PRICES..
Working against them are the rising prices of their products, the sharp U. S. recession and increasing
ԵԱՄ
pressures.
L/Credit,
1/2 3/10
1/3 1/4 1/3 11/12
1/3 1/10
ON.. 30 days
1/3 1/4 50 days
1/3 8/10 00 days 1/3-13/32 120 days (Indirect Sterling On Demand Bulla
on Europe 1/32nd higher than London Rate).
VG.D. if under L/Credit 13/10 0.7. without 1/Credit 2/3 up every 30 days 1/3 1/03, under Credit 1/3 3/4 O.D. without ICredit 3/33 up every 30 days
7.7.*
83 11718 0.54
730 days"
DH 9/10 00 days* から
90 days**
BILLS ON ADEN:
*If under W/C: 174 higher
Without L/C: 3/8 higner
3/30 Higher than the rate for Milik on.
Aden.
na 7/10
53 7/16 TT.
07 11/10
Kyala (Durma: Rangoon) 3/4
American" Malayan Dollars
103
The biggest factor in their
favour is emphasis on the part 17,8. Dollar
at 11/33
of Americah business manage-} (Finn calendar menih free
thereafter. ment to caso the profit squeeze i of penalty
Vis down föroach calendar month)
by cuting procurement costs, Despite somó nurrowing of the Canadian Doliuta prices gap between U. B. and foreign industrial goods, Impor Australian Pounds ters still have a substantial prica | New Zealand Pounds ndvantage... Insteel and
Zwies Francs
marks-
71 3/32
រ
1/0 0/10
3 O.D.
_84 1/14: 7 & 20 days
84 1/2 0 days
18/10 50 day
D3 5/0 T.T
13/14 D.D.
84 2/4 30 daya
EN 11/10 03 daym
13 1/2
as
line on
04 1/0 1 30 days
040/1000 days
53 1/2 TT. DJ 9/10 D.D. 53 15/16 30 days D4 3/16 00 days 21 19/32 E.T. 17 MOD. 11 13/2 50 days 17 13/10 60 days
17 20/22 90 days
HANT.
17 1/32 0.0.
1/0 17/18 TT
IT MADE,
1/2.7/0
21.40
1/3 KAD TUN
175 9/12 0.0,
74 10/10
24, 72, 1/0
aluminium this runs as high a South African Rand 20 per cent or more. Also im Betgian Fraher porters `aro, in je position to West Ganaan malch U. S. products in mimust avery field because of their in- creased capacity and because of up to two months forwards, cut of1/52 mmiat bo uxacted for wash period ND. The dieding, Belling” rate shown above applias only to delivery a slowdown. In European de- of three months beyond that. mand,
"Thanks: to, speedior transportation, dolivary – Ahnes faro being shortened, too.
am akausi ratos, and are not applicable where instruction: BER. THAS
The Maybig rates for motling fills on tráf, and Europe quoted above. payment, ek korepohon They awilt dritval of partying. 213 BoNT..