Westinghouse Electric, the US defence and broadcasting conglomerate, yesterday sold its electrical equipment distribution arm to Eaton Corporation. The sale will raise dollars 1.1bn and shed more of the dollars 6bn debt accrued during expansion in the Eighties.
The deal is subject to a waiver by Siemens of its right to buy the profitable unit, which supplies the German company with circuit breakers. Siemens has indicated it will make a prompt decision.
Germany agrees cuts
The German cabinet approved draft laws under which spending on unemployment and social security benefits will be cut sharply from next year to reduce the spiralling budget deficit. The laws, already approved in outline, envisage spending cuts of DM21.2bn ( pounds 8.5bn) in 1994, DM27.4bn in 1995 and DM28.7bn in 1996.
Appeal judges in Illinois have upheld a decision that members of Lloyd's must have their cases against the market and their underwriting agents heard in an English court.
The Institute of Chartered Accountants will take no disciplinary action against any directors of Trafalgar House or Touche Ross, the company's then auditors, following the Financial Reporting Review Panel's criticism of the 1992 accounts that forced a restatement of profits. It said differences of professional opinion were not suitable subjects for disciplinary action.
Retail sales fall
June year-on-year retail sales in western Germany fell 2.8 per cent in real terms and 1.3 per cent in nominal terms.
Japan surplus up
Japan's trade surplus rose to dollars 11.82bn in July from dollars 9.23bn in the same month last year. Exports totalled dollars 32.18bn, up from dollars 29.52bn, with imports little changed at dollars 20.37bn.
EC car sales plunge
Total car registrations in 17 European countries fell 20.58 per cent in July to 905,600 from 1.140 million a year earlier. Registrations for the seven months to July were down 17.76 per cent year-on-year.
pounds 47m Scottish Office
The Government will pay pounds 47.5m for a 300,000 sq ft development to be occupied by the Scottish Office at Victoria Quay, Leith. The site is being developed in a 50-50 joint venture between Forth Ports and Godfrey Bradman.
Futures revamp The London Commodity Exchange suspended its little-used pigmeat, lamb and soyameal futures contracts after an independent review. It will develop existing Biffex international freight futures contracts and domestic wheat, barley and potato contracts.
40 ShareLink jobs
ShareLink, the share-dealing service based in the Midlands, will create 40 jobs in a pounds 1m expansion programme.
New York: Shares followed bonds higher after yields on 10-year US Treasury notes fell to the lowest level on record in a refunding auction. The Dow Jones Average surged 10.62 to a record 3,583.35.
Frankfurt: Shares recovered previous losses with the DAX edging up 0.64 to 1,865.80.
Hong Kong: Late bargain-hunting lifted the Hang Seng index 27.82 to 7,357.63, although institutional investors stayed on the sidelines.
Sydney: The All Ordinaries marked time, ending up 0.6 at 1,861, with declines in golds matched by industrial gains.
Tokyo: Renewed hopes of lower interest rates boosted the Nikkei Average 238.82 to 20,732.57 in heavy trading.
Johannesburg: The gold index slid 65 to 1,810 on international selling as the bullion price tumbled below dollars 380.
Zurich: Demand for cyclical stocks lifted the SPI index 26.1 to 2,410.7.
Paris: A modest cut in interest rates propelled the CAC-40 index 27.61 higher to a record 2,167.39.
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