1960-03-28 — Page 2

Page Z

THE CHINA MAIL, MONDAY, MARCH 28, 1960.

Weekly survey of American economy

OUTPUT BEGINS TO SLIP

Substantial layoffs cannot be avoided

New York, Mar. 27,

Wall Street HONGKONG

advances

in all sections

The U.S. economy was winding up a record first quarter this past week but all indications are that it was abnormal and that substantial lay- offs by steel and car makers this spring and summer cannot be avoided.

This, experts

out, ago. The drop was largely due declined in Jamaury to 405,000 pointed would not necessarily mean n to further cutbacks by many pro- 530.000 while U. S. steel exports tona from the December peak of recension; the rise in joblessness') ducars to adjust venturies-

end of dealers stocks of new cars have recovered from the lows of last will merely reflect the abnormal Arst quarter activity been above the one non level autumn, climbing to 153,000 tons

in January from 113,900 tons in Stocks advanced in all major departments on light

volume during the past week. December.

caused by the settlement of the steel strike mid the need to ré-j build depleted inventorien.

Ometal statistics showing the economy's first quarter perfor- ance may not be available for were the some time but these estimates: National production of goods and services will show a "substantini" rise over the final quarter of 3059 in the words of the-Department of Commerce. The rate may come close to an annuni pure approaching the $500 billion level. Last year's Con quarter showed u rate of $483.5 billion

a

www

The prodleted layoffs would be

substantial enlargement

...

all this month in line with sules. Trucks, however, kept pouring out of assembly hauls at a comparatively high 28,030 this past week and 27,335 the previous week and were actually expected to set new all-time record for the quarter.

As the overall output de- creased, that of the new compact rars was actually being stepped up. They new account for 28.0 percent of the total, compared with only 23.2 per cent of the totut the week before.

Below peak

is

Deficit

DMetally

ono

New York, Mar, 27.

STOCK

EXCHANGE

by

Our Own Correspondent

+

London market

continues to hold firm

London, Mar. 27. Share prices held firm in quiet markets this past week although the imminence of the April 4 budget kept buying in check.

Tho riso in the Financial | shared the weakness and rais Times Industrial Index of 13 back.

Th

points to 323.0 was helped by Glit-edged were quiet but by the good close to

week-end- buyers the week, the following improved Sentiment appeared. Rises went up £1

results from 4 shillings over the week.

Industries

Foreign bonds showed little fe. But Greek issues went casier.

a heavy rise in

excellent Business date at the Hong-after kong Stock Exchange this morn- Imperial Chemical ing amounted to approxi- which showed mately $1,270,000. Noom quota-group sales in the latter half tions and the morning's trans of the year.

actions:

Shares Buyers Sellers DANKA

1240

01240

10 47 1235

UC Bank...

100 4735

Waterboat XD Whertecka

7.20

The

recovery Incked the t Rails fel 22.25 points or 13.8 bounce that would indicate en- | per cent and came back 8.38 |thusiasm for the market. How-points or 37.7 per cent from the INSURANCES over, there was smart recovery | low. Utilities declined 2.22 and Union........ Just before the bell on Friday came back 2.80 polats to leave PPING accompanied by a late lekör. them at a new 1000 high. This may have involved aome short covering by traders. willing to risk bear commitments i over the weekend.

1/1-

AVERAGE UP

Talkoo Dock

The exports of U.S. Steel were still far below their peak levels Brstand were no part of the ad- ministration's new export drive which aims at a ten to Afteen per cent increase in US, export trade over 1959. Although the

For this past week the indus- week drive

trial average closed at 022.37 up DOCKS, ETC. old, government experts already!

Nowa of market importance 0.05 points from the week be-K. Wharf Drek XD are predicting that the deficit in

rulls 140.44, up 1.00; U. S. balance of payments will was mixed. It included favour- fore

com-utilities, 88.15 up 0.71 and 65 Provident XD be cut by about $400 million in able predictions by many the first quarter. The dettelt pany heads at annual meetings stocks in the three averages LAND, ETC. was running at an annual rate or in annual reports. At the same 200.09 up 1.82 points. For the of $3.7 billion last year. Estimate } Ume industry reports were nosi-past twe U. S. exports of goods and ser-ly on the declining side. Steel dustrials have risen 18.04 points; Humphreys

rails, 3.27 and utilities 1.87..

RUBBER vice in the first quarter will operations slipped to a new low

Sales for the week totalled Amais. total $0.3 billion compared with since last November, below 20

a daily average the final 1069 quarter figure of per cent of capacity. Auto oul-593,924 shares,

put fell under the previous week af 2,710,785 shares. This com- Trust $5.0 billion.

but was above last year. Carpared with 12,940,350 shares at Suagala... daily average of 2.580,880 UTILITIES loadings ruse on the week but a were off from 1959. Electricity shares in the previous week. output slipped on the week bul was well above last year.

those that have already occurred

This past week's role is same In mattered pastern = 1}]

six per cent below the peak of steel. cars, constriction, farm equipment and other durable 5.7 per cent reached in January and almost five per cent below goods industries. Although they

rate of 04.4 per The February may not reflect a recession, when

At the same lime, the officials these layoffs do occur, experts cent. The rate has been ing suid, they may have a psycho- down steadily as supply pipelines said, U. S. Imports of goods and logical

effect since the U.S.led more rapidly than expected services will fall off slightly from and the forecast of a seller's seasonably adjusted rate of economy etilered the year with

$5.9 billion in the last quarter high hopes of sustained record i market turned into keen com-

of 1950 to $5.85 Lillion in this breaking activity.

Arst quarter. Eventually, the U. S.. hopes to cut its payments defcit over this year by as much as $2.6 billion.

An offset

They may be offsel somewhat by

in construction, an pum which has been held back by unusually severe weather winter.

this

petition.

As

A

result three things emerge: The 80 per cent operat- ing rate, forecast for late spring arid early summer, will probably be reached substantially earlier; and the generally expected in erease in the price of steel is not likely before the end of the year with no more than a 50-50 chance that it will average $3 to $4 ʼn ton then,

ол

The Department of Com- meren kooked for first quarter Brures to show a substantial compared with the last quarter of 1939,

Lise

Utilities performed better than other sections as of their Thurs day close they registered on average al 1 new high early October. 1950,

since

20 a 1231

175 71

200 85% 160 053% 2004 17.00

8410

3035

NK Hotel..

weeks combined in-ijk Land ..

$1.76

Realty

1.70 1.75

1000D T 51⁄2 33000 $.55

7.55 1.05 3.00

301% 3811

Tram

Special Items helped In- dividual issues at times. Gulf Oil enjoyed a good market when company estimated Arst quarter nel 20 per cent over last year, glu Nickel Plate and Norfolk & Western were active on merger talks, and Nickel Plate scored a

rise of 14 points on the week Electric to at fourth place in

volume.

market

were Some

The undertone was scod and the bigger investors gulotly buying equilles. dealers believe that once the budget hurdle is cleared, can- jalderable funds will be await-

ing investment,

GOOD FEATURES

While the valume of business has been light, the unbroken procession of good company news, the favourable outlook for Industry and Wall Street's better have all made for opperranço nimness and the week has been some good features in individual shares.

Golds made the blot on the market. Selling on political fears in the wake of South Afri can violence drove Union mine issues down. The main weight of sales was said to come from 100 # 31% the continent trut London was also unloading Pricca fell away rapidly for two days but by Alday's close same had moved above the worst.

Diamondla also took a beating and De Beers saw 18 shillings

gains.

Germans

mado slight

Oils had a better appearance in front of coming statements and prices ended on the upside by fractions.

Both rubbers and tens went better.

Mergers in plantations helped the mavement and Coy. lon election news sided teas.-- LAP!

Cotton grey goods at

New

low ebb

New York, Mar. 27.

business In cotton grey goods remained at a low ebb this past week, completing the third month of comparativa

idleness.

Pressure of re-sale offerings on und 9 pence chopped of? over print and broodelatus, usually the week.

They closed at 153/a worth-while venture unther (ex-dividend) against the year's first-hand mill levels kept a rein high of 200 shillings. Coppers (on buyer interest.

300 31

Star Ferry. Yikuumati

100

2000 @ 22.90

100 23

1000 22.80

900 6 2280

300 2.00

.. £0.00

+7

500 6 20.90

100 G 27

2000 420.00

343 344

3.70

27.50

0.40

DAS 2000 9.45 3000 6 9.43

Business was done uromelal 0.60 2000

exchange market

3415

1.020 000 € 2.50

0.80

TN XD INDUSTUALS American Motors led in turn-

Cement over with sales of 322,000 shares, STORES, ETC.

Dairy I gained 2% points on the week

Wetson on higher Rambler sales, Stude-Craw

Just how well this will work. doubt, there is no is still emergence so far of any "buy American" feeling either government or business levels and it is doubtful that one will appear. Indicntions are that the American

has got Finally these developinents in-used to foreign goods and de-

Textile with sales of 180,200 shares and cleate a curtailment of foreign mands them. The latest to its lowest point so far this year steel imports. Although no re- from Montgomery Ward depart-

a loss of points. Its when- chain which with an estimated 138,000 pas-cent figures are available, foreign ment store

issued stock was in fifth place | Nanya

MISCELLANEOUS was increasing its

and up points. Gult Oil, up This

comparest steel imports have been known nounced SCger units.

Guman with 140,054 last week and with to be dropping from their peak, buying abroad in order to stay Swiss Francs, maximum seil-14% points made second place. INVESTMENTS.

UPI. ing 75 7/10. 121,953 in the same week a yeur' levels at the end of 1950. They competitive.-UPI.

A good example of things to come in the second quarter is

prodection this past week's schedule in Detroit: US. output this post week will sink

Can

consumer

came

an-

Agreed merchant baker-Packard made their place CONS

rates

Alled

H

Exchange rates

morning of the following rots:

Now there has been no business of

Since the

CONSEQUITYCO

Eray goods.

year,

placed in cotton

As a result, the unfilled ørder

in the pall position of mills, while still sub-

this

stantial, nevertheless has been 5.73 reduced. With production going up while the demand has been 1201 going down, buyurs decided they SIDO

have little to lose by waiting the is situation out-UPI.

U.S. doll (per $1) Sterling notes (per £1) Australian notes (per 461) Indonesian rupiah (per 100) Slam Ticals (per 100) Bingapore (firalte)

15.05

1.70

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