Business and City Summary

Bundesbank stresses stable money

Stubbornly high inflation, rapid money supply growth and the need to secure the mark's role as the second most important reserve currency have prevented the Bundesbank taking 'farther-reaching measures' on interest rates.

The German central bank said in its June monthly report published yesterday that recent calls for large cuts in short-term rates to boost the economy 'underestimate the importance for the foreign exchanges and capital markets of a credible, stability-oriented money policy'.

Tietmeyer named

The German cabinet officially named Hans Tietmeyer to succeed Helmut Schlesinger as president of the Bundesbank from 1 October.

Going up, going down

The pay of Ian Preston, chief executive of Scottish Power, rose almost 50 per cent last year to pounds 247,408, including bonuses of pounds 53,200. The company said his pay of pounds 166,833 the previous year was depressed because of seven months' absence through illness. Sir Alistair Grant, chairman and chief executive of Argyll Group, saw his pay drop to pounds 546,000 last year from pounds 973,000 previously, largely due to the expiry of a long- term incentive plan.

1,000 jobs for Wales

A pounds 42m investment by ASAT (UK), part of QPL International Holdings based in Hong Kong, will create 1,000 new jobs in a plant assembling and testing integrated circuits in Newport, Gwent.

Court rules on tycoon

The European Court of Human Rights ruled that Spain had failed to give former tycoon Jose Maria Ruiz Mateos a fair trial over the state takeover of his business empire Rumasa, but dismissed his multi-billion-dollar claim for compensation. The judges ruled by 22 votes to two that Spanish justice had taken too long to reject Ruiz Mateos' appeal in 1991, almost eight years after the takeover.

EC steel threat

EC steel producers accused US competitors of launching a trade war and threatened legal action against 'unfair' duties on imports.

Bank buy cleared

The Department of Trade and Industry cleared Royal Bank of Scotland Group's acquisition of Boston Five Bancorp through Citizens Financial, a US subsidiary, for dollars 95m. The DTI also gave the go-ahead for the planned acquisition by Unigate, the food and distribution group, of Glass Glover Group.

Michelin axes 2,500

Michelin, the tyre giant, will shed 2,500 of 28,000 jobs at its North American subsidiary.

All systems go

The Treasury has recognised the New York Mercantile Exchange as an overseas investment exchange, enabling it to conduct business in the UK through Nymex Access, its electronic trading system.

World Markets

New York: Bank and oil stocks led a ragged retreat that by the close had dragged the Dow Jones Industrial Average down 30.72 points to 3,466.81.

Tokyo: In thin but volatile trading the Nikkei average eased 45.76 points to close at 19,492.52.

Hong Kong: With attention focused on speculative issues, the Hang Seng added 15.91 to 7,062.64.

Sydney: A sharp fall in futures prices pulled the market down, with the All Ordinaries index losing 17.9 points to 1,698.8.

Bombay: Fears of fresh political turmoil helped to lower the index 17.17 points to 2,232.12.

Johannesburg: Gold shares ended down but off their lows, with industrials slightly firmer. The overall index lost 13 points to 3,993.

Paris: Busy trade on the last day of the account lifted the CAC-40 index 7.13 points to 1,942.41.

Zurich: Profit-taking in Roche and Nestle was the main factor in the SPI's 3.46-point fall to 1,464.73.

Frankfurt: The DAX index edged up 1.31 points to 1,699.39.

Milan: Hopes of lower interest rates spurred the MIB to 1,186, up 1.72 per cent, despite continued weakening of Ferruzzi stocks.

London: Report, page 32.