Business and City Summary
Tuesday 04 August 1992
interest rates The Bank of Italy unexpectedly cut its discount and Lombard interest rates by half a percentage point yesterday to 13.25 and 14.75 per cent respectively, because 'the pressure on our currency has eased'.
The cut follows an agreement last week to abandon the scala mobile system that links most pay increases in Italy to the rate of inflation. This had triggered a rise in Italian government bond prices.
Eurotunnel is to rent some of its telecommunications capacity to British Rail Telecommunications and the French railway, SNCF, to generate additional revenue from the Channel tunnel.
BET's pounds 200m rights issue closes today amid fears that shareholders will shun the shares on offer at 110p, just 0.5p below yesterday's closing price.
'Bad' time to buy
A survey by Proshare and Mori shows 52 per cent of small shareholders believe it is a bad time to invest in the stock market, against 43 per cent a month ago.
New at Imro
Paul Myners, chairman of Gartmore Investment Management, is to join the board of the Investment Management Regulatory Organisation.
Regional pub operator Greenall has sold four outlets in the North-west and North Wales to Paramount for pounds 331,000.
GPA, the Irish aircraft leasing group, is making a second cash infusion into America West Airlines in order to keep the troubled carrier in the air. GPA is one of the contributors of a minimum of dollars 45m worth of debtor in possession (DIP) financing for the airline.
Reckitt & Colman has agreed to sell its US spice and seasoning business, which makes French's mustard among other products, to Burns Philp & Co for dollars 75.1m ( pounds 39m).
Mercury Communications refuted BT's claim that it is winning back substantial numbers of business customers from Mercury. Mercury's deputy chief executive, Peter Howell- Davies, said: 'In the last financial year our order book has increased by over pounds 300m.'
Industrial production in western Germany fell 2.1 per cent in June from the previous month after 0.1 per cent fall in May.
New York: Holding its ground after last week's gains, the Dow Jones average was 1.62 points higher at 3,395.40 at the close.
Tokyo: Wafer-thin trade following the two-day rally sent the Nikkei average 200.83 points lower to 15,709.45.
Hong Kong: Buying of blue chips in expectation of positive company results pushed the Hang Seng up 29.6 to 5,910.73.
Sydney: Prices barely moved, with the All Ordinaries index half a point easier at 1,617.3.
Bombay: Late institutional support restricted the index loss to 4.41, closing at 2,722.65.
Johannesburg: Gold and industrial shares both lost ground. The overall index ended 21 points weaker at 3,409.
Frankfurt: The DAX index slid to a seven-month low of 1,594.71, down 20.71 points, on nervousness ahead of the Bundesbank council meeting.
Paris: The CAC-40 index jumped 29.77 points to 1,784.44 on forecasts of a 'yes' vote to the Maastricht treaty.
London: Report, page 19.
- 1 Scottish independence: Ireland since 1919 is a lesson for Scotland in what a Yes vote means
- 2 Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
- 3 Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
- 4 Kanye West stops concert after two fans don't stand up - doesn't realise one is in wheelchair and the other disabled
- 5 QS university world rankings: Imperial College London leapfrogs Oxford to join Cambridge as best British university
Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: Police will be on high alert on Friday whatever the result
QS university world rankings: Imperial College London leapfrogs Oxford to join Cambridge as best British university
Scottish independence exclusive: Millions of banknotes sent to Scotland in case Yes vote sparks run on ATMs
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Scottish independence: Yes campaign feels the heat as Alex Salmond's NHS claims come under furious attack
£23m Birmingham cycle scheme is attacked by Tory councillor for not catering to the elderly
Portuguese academic says British are 'filthy, violent and drunk'
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