Business and City in Brief

JAPANESE ECONOMY EXPANDS 0.6%

Japan's economy expanded 0.6 per cent in real terms in the first quarter, suggesting that the economy had nearly bottomed out, the Economic Planning Agency said.

The total output of goods and services stood at Y425,000bn ( pounds 2,640bn), up 0.6 per cent after discounting inflation from the preceding three months. In 1992 the economy grew 0.8 per cent in real terms against a government target of 1.6 per cent.

dollars 1,000bn QUESTION

The world's largest trading nations will try to reach an accord by the end of the year, opening up government procurement contracts worth dollars 1,000bn to international competitive bidding, a Gatt spokesman said. Japan, the US and the EC are among 23 countries hoping to extend a Gatt pact to cover procurement of services, utilities and contracts awarded by local and state governments.

CALL FOR TRADE BARRIERS

President Francois Mitterrand urged the EC to adopt stiffer trade barriers to protect its markets from goods produced in low-wage countries lacking labour rights. 'I would like to see common rules to protect industries from foreign goods produced in social conditions that cause such an imbalance in the costs of production that we cannot long put up with the competition,' he said on Danish television.

US FACTORY ORDERS DOWN

April factory orders in the US were revised to a fall of 0.1 per cent from a decline of 0.3 per cent. Revised durable goods orders in April improved 0.3 per cent from a previously reported fall of 0.3 per cent.

BOEING dollars 1.2bn BETTER OFF

Boeing received firm orders for two more 737-300s, bringing to 16 the number of its aircraft, worth dollars 1.2bn, ordered during the Paris Air Show.

RUBBER PLAN SHELVED

The inter-governmental agency that analyses world rubber markets has shelved plans to slim its workload to save money after Thailand threatened to withdraw last week. The International Rubber Study Group will continue until September, when representatives meet to review the arrangement.

CHINA IN THE DUMPS

The European Community imposed anti-dumping duties, with immediate effect, on imports of magnesium oxide from China. A threshold price of dollars 134 a ton was set.

RENTOKIL EXTENDS OFFER

Rentokil Group extended its offer for Securiguard until 3pm next Friday after receiving acceptances representing 1.35 per cent of Securiguard's share capital by the second closing date yesterday.

FAMILY BUSINESS SOLD

BSN Group of France bought a 40 per cent stake in Bombay Emporium International Foods, a family business in the UK with sales of pounds 47m last year.

O & Y DRAFT ON TARGET

(First Edition)

A spokesman for the examiner in the proceedings involving the US unit of Olympia & York Developments said in New York that all sides had agreed on most issues in a draft protocol.

SUGAR STRIKE ENDS

(First Edition)

Tate & Lyle said the strike at its plant in Decatur, Illinois, ended when employees agreed to return to work unconditionally.

WORLD MARKETS

NEW YORK: A sell-off of drug stocks amid nervousness as future and index options expired hammered the Dow Jones Average Industrial Average 27.12 points lower to 3,494.77 in hectic trading.

TOKYO: The Nikkei 225 index fell 120.97 to 19,804.54 as the political crisis sidelined dealers.

HONG KONG: Agreement between the UK and China on a tunnel franchise pushed the Hang Seng index up by 11.65 points to 7,200.75.

SYDNEY: Sentiment was buoyed by firmness in gold prices, leaving the All Ordinaries index 3.2 points higher at 1,730.4.

ISTANBUL: The 75-share index soared 4.3 per cent to break through the 10,000 barrier to 10,348.3 as Tansu Ciller's election continued to affect sentiment.

PARIS: Firm bond futures outweighed gloomy corporate forecasts, pushing the CAC-40 index 9.98 points higher to 1,910.29.

FRANKFURT: Expiry of a number of futures contracts and options allowed the DAX index to close 5.39 points lower at 1,686.90.

MILAN: Rises at Fiat and Ferruzzi led a buying surge that boosted the MIB index 1.22 per cent to 1,166.

LONDON: Report, page 21.