Business and City in Brief

Woolwich cuts fixed mortgages

Fixed mortgage rates have been cut by Woolwich Building Society. The five-year rate is being cut from 7.65 to 7.45 per cent, and the three-year rate from 7.1 to 6.95 per cent.

Those with applications in the pipeline will get the new lower rates.

US deal

The US lifted sanctions against Germany in a controversial telecommunications deal that prompted the European Union to start proceedings against Bonn. An EU official said: 'The Commission declared that treaty infringement proceedings had been initiated.' At the heart of the matter is a directive that calls on EU states to give preference to member companies when awarding utilities contracts. Last year, Bonn said a 1954 US-German treaty made it impossible to follow the directive.

Construction up

UK construction output rose a provisional, seasonally adjusted, 1 per cent in the fourth quarter of 1993 compared with the previous three months, and was unchanged on the same quarter a year ago, the Department of the Environment said.

Park on hold

Euro Disney's chairman, Philippe Bourguignon, said plans to build a second theme park had been put on hold until the economic climate improved. He said preliminary studies and planning cost Euro Disney Fr353m in the year ended 30 September 1993.

Happy campers

Eurocamp, the tour operator, reported increased bookings in all its markets and more favourable campsite occupancy levels and sales margins.

Tarmac contract

A pounds 20.5m contract to build the largest extension to the London Tube network for nearly a century has been awarded to Tarmac and its French partner Montcopol TP. The Jubilee Line extension is due to open in March 1998.

Polish debt

Polish officials welcomed an agreement with the country's commercial bank creditors that amounted to a 45 per cent reduction in its dollars 13bn private-sector debt.

MCI approves

Shareholders of MCI Communications approved proposals related to the company's alliance with BT and the sale of 20 per cent of MCI stock to BT for dollars 4.3bn.

Latin trust

Edinburgh Inca Trust, a new Latin American fund, has raised pounds 30m via a placing and is seeking up to a further pounds 70m through a public offer that will run until 25 March.

World Markets

New York: High-tech shares helped overcome initial nervousness. By the close the Dow Jones average had gained 32.08 points to 3,862.70.

Tokyo: Volatile trade ended with the Nikkei average 24.6 points firmer at 20,115.31.

Hong Kong: Higher interest rates touched off a 2.2 per cent fall, with the Hang Seng index 223.39 points weaker at 9,905.66.

Sydney: Erratic futures-driven trade lowered the All Ordinaries index two points to 2,153.1.

Bombay: Squaring of forward positions lowered the index 70.71 points to close at 3,737.01.

Johannesburg: Unrest in Bophuthatswana took the edge off a rise in gold shares. The overall index slipped 13 points to 5,124.

Paris: Gloom over interest rates brought the fourth fall in a row. The CAC-40 lost 9.67 to 2,174.91.

Frankfurt: Fears of US monetary tightening sent the DAX index down 37.61 to 2,103.49.

Zurich: Following other European markets, the SPI dropped 18.36 points to 1,823.7.

London: Report, page 21.