1960-08-08 — Page 2

the que

London Market

THE CHINA MAIL, MONDAY, AUGUST 8; 1960.

Weekly survey of American economy

closes week SIGNS

OF OF A A RECESSION?

on firm note Gloomy picture

London, Aug. 7.

Bounding gold and dollar reserves plus record em- ployment figures gave zest to industrial stocks which ended the week firm after scoring a broad list of gains on Friday."

Subdued holiday season Elsewhere gains stayed modest markets' ''steady trickle of but pushed to the Financial

6.4 mall buying. Even this limited Times Industrial index volume teployed a stock short-points over the week to 315.8

painted by

bussinessmen

New York, Aug. 7.

age bringing higher prices against the year singh of 342.9. Continued softness on" o||"sectors marked

Demand Was well spread Friday's boost was 2.8 points, through the list putting moet good company news providing

Some of the thrust," sections on the uptrack

mean-

becalmed Gilt-edged stayed The Electrical and Musical but held steady despite lack of Industries £11,5 million for the interest, Foreign bonds Morphy-Richards home appll-dered through a quiet week. ance group excited the market when the smaller firm's Board rejected the offer and promised to double up oda dividends as a first defence move,

GAINS MODEST

This made the third EMI bid to buy up other their field in.

concerns

recent

months. The first two failed to reach their objectives. The M-R colin-

the U.S. business week, with a major union leader even saying that all Un impending signs point **FOTM recession.******

in

Cotton

Wall Street

MONCHONG

closes lower

goods still at low ebb

ap-

g off

on the week

New York, Aug. 7.

Stocks advanced on average in three of the five sessions this week but still managed to finish slightly lower on continued light volume.

Ritr

future

CUS-

Business done at the Hong-

kong

Stock Exchange this

morning amounted to approxi- mately 1,004,ppg. Noon/quota- tions and the morning's įtran- sactions:

shares Buyers fellers - Sales HK Bank XD 1190 1200

anbard Ins Union the What Ca Wheelock..

20

7.00 7.70 3000

<

HK Dock

109

Ch. Prov...

20:20 303

HK & 8.

the

Hotel rk Land Youmati

The slow dowời “: in economy continued to have its end effect on corporate divi

Standard & dend payments. Poor's reported dividend action In July compares unfavourably With a year ago for the fourth consecutive mdaith;

HK-Tram Ch. Light..

New York, Aug. 7.

incolton New Business

grey goods remained at a low ebb this week, The trading stalemate-dating bacic to latestokpre-showed The It Anished slightly rise in steel operations for the Monday, tharles rest of the year was told by Fitle sign For an impersching higher on barty break-up, brokers, and many to an eight gont gain in Iron Age magazine that the 'rise Business inventories rose ty Nor was there any improve The lasuflechte puring deer and Gambler fellther will not be as big as anticipated. Mining shares drified most of Ionly $200 million hy June, the ment in the memakyment ple- movement was tempere borbi novellwogessions; food rose bu The magazine – pointed out the week but perked up Friday, smallest monthly ghin, in geven ture BAU.St Labour Départ by some Eagler which uners Tresday and Friday, with the that the steel millst the effect

borrowing Dent Surgin registered in the are

Drom Galds suffered under political months, scending cofficial Ument survey of 14 hadör US bought so sestárlater

business by influences which for investors Commerce Department repicats. Japour maricets showed that zoont to 100,000,000%yabčá

pressuring Eltwing messione: still apparently outweigh good This slowdown in the built-up employers: expected dermal and Hoth Para Indrice,

The market's movements this tomers to place orders HOW earnings.

of inventories has been a major mostly easonal job onus for Since then, consum we were a disappointment to which normally would have the more bullish segment of the been made late: this month, or Coppers notched late gainsector in the decrease of the the next several months. At parendy have been

growth in national Present the nation has an all inventories, postponing

trading community to Had

even In early autumn," helped by the success of London overall

time high of 68,0 mililin enap ces while they watch hoped the previous week's late talks on Nyasaland's future and deonomy. N

The report said that business blored persons, but tho hased the stools market in a following the margin 'cut Néhanga's results and report.

developments and would" touch" off the long Tins were mixed,

irms added $1,100 million worth 44 million unemployed re-bour of goods to their stocks in the presenting 3.5 per cent of the evaluated the general business walled traditional summer Oils ended the week fractions April-May-June" quarter this total labour forced add a de

picture especially on the près rally, for the "Corporate prodits

pect for autumn bublines hy

DOWNDRIFT ters shot up some eight shillings better after narrow-movements sear; compared to nearly $3,000 on the news and the tussle for with Shell the best performer.million worth in the first second quarter of 1960 were apparel and incluustrial imbrics"

But Mary Nad nothing from last

stimulating in the business news down 12.9 per cent year's Azure for 384 companies

Backround to fuel any ich rise checked by the Wall Street

and the market quickly settled. Hesitation also reflected Journal. Greatest sufferers T

retail sales, electricity output, the steel industry, down 52.8 disposition to why and how badic Into the slows downdrifts showed steel production, per cent, and farm equipment the national election oncope underway before the margin coal production alle b

reduction, y down 51.9 per cent, Mile

Ali 9.70% 1000 Continued oversupply through a close watch on the inter-The Thursday afternoon and clearings all up from the week Friday rallies were considered before. Carloarings slipped on out the oil industry reduced national political pictures,

Ex. Bonus earnings there, and Cities Service Despite the case buyer by Brokers to be only technical the week but ran above a year

A. Robber Comp, reporting that its first-hold-back, my mañntained an since they were not touched off aga Crude all output slipped:

843,800 shares for a dally. Trust half earrings were below lest optimistic atebude Minista: by any specific news develop- Sales this week totalled 12,- years, blamed the oversupply tuners doclaced their order ment

looded pretty Oll companies maintained re backing a finery operations at a moderate pace, rather than at the trual near-capacity in this summer peak demand season, and caso line stocks fell by 1,584,000 barrels.

control continues.

UPL

,1

ה

quarter.

FIRST HONGKONG FUND

DO NOT PUT ALL YOUR EGGS IN

ONE BASKET!

IMPORTANT

The offer opens on 8th August, 1960, and closes not later than 16th August, 1960. Applications must be received at the offices of the Managers, Hong Kong Unit Fundinited, P.O. Box 690 Hong Kong, or 701-Alexandra House or at The Hong Kong & Shanghai Babking Corporation. The Chartered Bank or The Mercantile Bank daring that period.

FIRST HONG KONG FUND

OFFER OF 1,000,000 UNITS AT $1.00 PER UNIT PAYABLE IN FULL ON APPLICATION

All shares currently included in the Trust Fund are shares

quoted on the Hong Kong Stock Exchange

1 $3

FORM OF APPLICATION-

"APPLICATIONS MUST BE FOR A MINIMUM OF 500 UNITS AND THEREAFTER, IN MULTIPLES OF 100 UNITS

To: HONG KONG UNIT FUNDS LIMITER

£

I/We hereby apply for.............units in the First Hong Kong Fund at the advectised price of $1.00 per unit, in accordance with the conditions contained in the offer und subject to the terms of the Trust Deed dated 18th July, 1960.

: :

UWe enclose cheque/money order/cash for $..

being payment in full for the number of units applied for. We underwund that the money will beʼreiroad to mefum iu fall if un Units are allotted.

...

I/We declare that I/We am/are over 21 years of age,

.3.

մIս է

SURNAME(S)_{In English}

Bra bir or bits -

OTHER NAME(S) IN FULL,

ADDRESS

SIGNATURE(S).

Telephone No.

Date

E

Un the case of joint applications all persons must sign. Corporations should pleto under the hand of an authorised officer whỏần designation itioni Ph og Dan SALA VE espir

NOTE: Detailed Information Folder is dvillable from Hong Kong Un Funds Limited - 701-Alondra House or PO Box 690 (Tel. 28196) or from leading Band or Members of the Hong Kang

WAIT AND SEE

shapes up, as well as keeping

T

good and that within are enough encouraging ventories th the consumes page lines after the long buying pause, will soon need replenish mert, we want win

In apparel fabrics, brokers stidional deterrent Car makers, many of whom sakt an have slopped production of 1860 has been the just solando” models and are tooling for 1981 demand for fabrics In the Cace reduction, already are worried finished goods market. about the sales of 1961 models distributors get going" on because of the continued weat-aun winter and early spring lines the action will be echoed ness in the used car market.

back quickly the ml level, they felt

Used cars

Wholesale used car prices in July were down nine per cent from the 1958 figures, and means that new car dealers mixt offer lower quotes on tracte ins. Ohe dealer said that he would have to offer about $100 less on a one-year-old car offered for trade-in and other dealer

The fear of imports from Hongkong and other low-wage countries has been a background deterrent in some categories. Makers of bag sheetings have been particularly uneasy on that score. Drapery fabric also indicated manufacturers

over the deepening conceyi import situation. Some weavers

|

The weekly business statis-

K Elec... $8.30 9.30 HK Tel... 58.16 3012

27,30

1579 à 13

450 0.30

500, @ 20.30

600 4 3514

30

1700383%

34 $5 $400 9.1. Dement Diley Farm 23.80 80 1500 Watson * 25.70 138 2000 ($ 29,00

Allied Inv. 5.90 do 600 0

Textile

Nanyang Mill 170

14 14.40

8.00 35 1000 @ 1.70 8.43 1.80 1000155

400 $4

100

200 27001

14.70 14.50 1400 @ 4.00

But some analysts say there average of 2,588,660 shares, Talkoo-Dock 591 ***

now's against 19,863,740 shares, or Realty 1.825 1.85 4400 1.825 Items around to influence some 2,772,748 shares per day a week star Ferry buying and possibly extend the earlier. advance through a few sessions. Year-to-year gains in freight loadings, another gasoline price rise, good July store sales and the first increase in New York City bank loans to business were cited as possible buying stimulanta.

But there also is room for some pessimism when one con- siders declining profit margins In many firms, scattered divi- dend outs, and a dragging rate of new orders for durable goods,

The steel industry, which last week received some encourage- ment from two of its top executives in regard to a steady

erlimated that, for a medium indicated a preference toward COMPLAINTS

*

1

,:

priced car, the trade-in cffer halting weaving ba'auch dabrics might be as much as $300 to altogether rather than try to $500 less than a year ago Car meer import competition. makers concerted that this dropCotton sales yarn spinnery re- in trade-in values would be reported a comparably slow situa fected in fewer new car sales. tion in their market. Because of as owners decided to keep the the absence of buying in depth öld ear for another year or two.

by weavers, some spinners were All of these factors prompted

uncasy over the price situation Walter Reuther, President of the if the dull situation is further United Auto Workers Union. prolonged, major labour union for the industry, to tell the Democratic presidential candidate. Senator John Kennedy that his union Eisenhower-Nixon fears an recession. Obviously gome polities enter into sued a state ment, but at the same time it cannot be denied that the nation- al economy is not coming on as had been predicted it would.

Reuther has demanded. that

13

SKIMPING

AGAINST U.S. WOOL TARIFFS

Washington, Aug. 7: Japan has complained to the However, confident spinners. Government that the

insisted buyers will have to come in soon in a big way." They felt knitters and weavers have been skimping along an unusually low inventories. This posed a good augury for autumn, they felt. The trade sweated out July, now a

proposed new US tarih rate of 38 per cent of standard wool fabrics is too high, diplomatic ...source said here."

Italy also has not to

-100171

1002171

860 Ģ 1630

1870 é 14.70

2000 14.70

1116

100 $1

2455

*

500 2 24.70

52.00

Avco was by far the most active stock with volume of HK Ga... 527,800 shares. It fished up 1% points, Boeing was runner- up with sales of 224,100 shares. Craw. and again of 5%. American Invest. 9.10 3000 9.19 Motors, Standard Oil

(New Climan Jbisty) and Ampex rounded Humphreys 13.70 out the top five-UPI.

of bebron segod, wa ra

HK Rope ..

Vibro ........ 15.30

2

Zeta' Britain's thermonuclear

fusion machine

g. ir oven albu

London.

the Federal Administration proge, but feed pickup the new rate, which is scheduled BRITAIN has so far spent about $1,000,000

vide public projects to stimulate other observers expected the to take effect next year. employment in affected areas.

Steel mills

However, there appeared to be

"Zeta", the thermonuclear fusion machine de

Jull to hold until the cotton price no Hikelihood that the signed to harness the power of the Il bor

picture becomes clarified.

Britain, which originally the

3.2%

Sir David Eccles, Minister of

Hard Abres featured a strong Government would reconsider peaceful purposes. rebbind in burlap prices, which and set a lower rate, carried the market to highest level indix weeks, negotiated the present dual rate Education, replying to a Labour Strength at Calcutta, and re-that the United States baid, of Commons Mobile colour

tain at this stage whether ther newed concern over adequacy and initiated the recent ye said: "Although it is uncer

of fute supplies before the new nego in rats formule thermonuclear research will end to television unit harvest becomes available in new single September, joined with reports

Steel mills were scheduled to operate at 53.8 per cent of capacity this week, but actual operation sepeared to be some what below that figure. Reports on Labotning, orders vary, but there has been no major op- turn in orders from the motor industry. This is certain to come, of course, as the companies get into productions of 1981

Rayon grey goode sellers re- models. but the new orders will come too late to affect the ported a continued slow situa- August operations, 找个 was tion, with lower-priced offer- Kings out of second hands filling

believed.

Russia, China and Indonesia in boosting the local market.

wool

exporters, including conical power production, of large-scale Inquiries from France and the Benelux couns the rewands of success would tries, pave been consulted only be so great that the govern because they automatically obment consider that the present Ukilly JustinOK MELA programme fect to the same duty that the IS THE SI

Sir David was speaking United States applies against

the Mindster Science VIS British woollenspiel

count Hailsham.

chain stores and other buyers, influenced by the softening trend in second hands, com tinised to hold back on forward comandiments-PI, PA

The U.S. also reported a the current demand. Converters, Japan contended that the new favourable balance of trade in import-export of general mer chandise for June. The Federal Commerce Debarment said that America imported $1,820 million worth of non-military woods: exported $1,610 million import figure was five per cent Higher than in May but four per cent below the Bruner for June

Bank of England

A

for

London. COLOUR television mobifethit can now bring true-to-lite colour tures on a screen to offices, Factories, conferences and Bri-

A

FAVOURS UK system will favour Britain, In a written reply, he said exhibitions ma where which exports considerable capital and operating expenditain,

ture on Zeta one and is modi... amount of high quality woollens

This unit carries two new The average rater applied on fications up to this June had

totatted about £1,800,000, in

colour TV cam Japanese shipment, under the

corporate present system has been less cluting 460,000 for 1 design. studies and Fidevelopment work than 38 per cent,~!

#ystem claimed Countries which claim to be for Zeta to and other future times more enfeient

systems.

lens systems injured by the new rate have

ments with Zeta once are very compe two alternatives. They can either try to convince the United Safedtest excitement when curate colour statement Campaign managers of both

scientists thought they had under difcuti States that they are hurt by the major breakthrough tons, and, are thus parties will be watching develop-

London, Aug. 7,

new rate and get a US, tarkt mendia at the Pittsburgh Steel Compery, where a strikke is The Bank of England state-reduction on some other items, harmosing the H-bomb Industrial use

or they can withdraw comparted cheap power from the Facilities ment for the week ending scheduled to begin this Ayeekend.

able tariff concessions to the heavy *hydrogen" it sea water, on the unit for colo The dowany had announced that August 1 vent for 97.00 United States ovided the hoofdk

(But further work showed the

and colour me Rmust cut incentive wege Notes in circulation 22,318.977 350

Publie deposity scales, and the unioni filas refused

Private

Agreement on Tarth's and sends had been, mistaken

For more than a year, Trade) agree to this moveme and claim premature.) our camera have

AGATT agreement is hard to orget however, because atry in Sir David mid no capital ex-beltvising surgal

creased tarif imposed on US penditure had been incurred on and clinical proosdures. exports automatically applies to Zekk two beature detign studies audience of doctors at exports of all member counties, and developmentheorie 10k corfdences and flex

Under the present US, wool gether with experience on Zeta pitali.

system, standard woollens that shownox they, the ste charged a 25 per cert diety ditia né

to accept the proposed.-Borte Dovernme

1700 then are affected":

Pittsburgh is the

14th argent sleet god

company doen holi

sorii of, ar piecework pl

papy

Exchange

Le members of GATT (General |

local far

power with vision

Vat the folowing tastes: 1.) up, long, sat fotal imports 11:51 mediate

HAMAS (ARG) Pour are less than five per cent 29, 28% OF US, comhimation of woollenk

معلم :

mmers it They have also been

now in fretail