 Following the FORD MOTOR CO.'s admission that
it is in the process of developing a platinum free
catalyst, the market value of platinum has plummeted.
Despite this some 35% of platinum production in the
West is intended for the automobile industry. We hear, once again, of increased activity on
the New York Exchange. Most of the excitement
revolves around IBM and General Motors, whose stock
has recently proven to be a profitable investment. Brazil, the world's most indebted land, is no longer able to pay the
interest on its 120 billion dollar debt. Its President made a TV
and radio speech today, announcing a drastic decision. The government
will cease the payment of any dues to foreign banks, with immediate
effect. Whether the cessation be temporary, or permanent is unclear.
The original discussion concerned a 90 day period of non-payment.
Apparently, of Brazil's 108 billion dollar deficit, 80 billion is owed
to foreign commercial banks.
A developing nation since 1582, Brazil is no longer required to pay
redemption fees, and must only pay interest. By far the main creditor
is the American Credit Institute, closely followed by Japanese, French
and German banks. +++ Following a 7 year period of stagnation, American exports
last year increased by 12%, constituting a veritable boom. Experts
also predict a foreign trade of some 15% for this year. Strangely
enough foreign trade seems to be the privilege of an exclusive
circle of companies: of 300,000 registered American businesses only
39,000 are involved in export, and of these, the leading 250
corporations corner a good 85% of the foreign market. +++ The market for Third World credits has been chaotic in both
New York and London, over the last few days. Several American
and Canadian banks are trying desperately, by fair means or foul,
to hand on their billion dollar indemnity, to clear their
*balance* sheet before the close of the financial year. New York
is putting up its entire "Disaster-funds Portfolio" for quick sale,
consisting mainly of loans to Latin-America. As an incentive, the
discount on some of these credits has rocketted. Venezuala's dues
are thus down to a mere 40% of their *nominal value*, previously
they were lying at 60% under par. Mexican and Brazilian credits are
on offer at around 50%. Argentinian credits, however, have dropped
through the floor, from 30% to only 18% recently. The *bondsmarket*  boom is
responsible for even more
liquidations.  The recent
publication of employment
statistics is also having
a significant  effect  on
the market.A business re-
vival is reported by buy-
er/managers  with  orders
rising rapidly  over  the
past month.
A market boom would  have
a stabilising  effect  on
discount rates. New York - a bolt from the blue - the shocking poison gas catastrophy
in Bhopal, India - has caused the value of Union Carbide *stock* to melt
like butter on a sunny day. Massive demmands for compensation are soon
to be expected, estimated at some 25 billion dollars. This, the third
largest chemical manufacturer in the land, has a capital value of 10.3
billion dollars with average takings of 9 billion dollars, but only time
will reveal the true financial consequences. Legal advisors warn that
the Bhopal disaster could well turn out to be a second "Manville":
the asbestos company forced into liquidation to avoid a hail-storm of
complaints. +++ Ford's market status, compared to that of General Motors has
advanced like there's no tomorrow. The then Company Chairman's radical
reforms are starting to bear fruit. Ford now proudly declares net
returns of 4.14 billion dollars, that is $8.53 per *stock*. The company's
capital valuation now stands at 60.9 billion dollars. Reliable sources
predict even higher returns for the next quarter, especialy in the
exports department.
Record returns are within reach for this year. Ford's stock *dividend*
came to 3 dollars last year. +++++ It's October 21st 1987.
Over the last  two  days
investors have been  the
first to suffer from the
worst  Wall Street crash
ever.
Their losses  amount  to
over a  billion dollars.
Meanwhile  leading  cur-
rency bankers are flying
round the world  to  en-
courage a  rapid  expan-
sion of  circulated cur-
rency.
It is hoped that a  more
elastic  economy   might
avoid a  repeat  of  the
1929 *recession*. The real estate market recession
has been with us for years but
recently it has intensified at an
alarming rate. Even compulsory
auctions are not helping much to
dispose of land at an acceptable
price, and neither is the
well-meaning advice from experts
that land prices will deteriorate
even further in future. The only
winner in this sorry game is the
bonds market, whose profits are
rising daily. According to unconfirmed rumours, the *bilateral*
economic relations between the US and the USSR, are
nearing a historical climax. A two-phase operation
over the next five years will serve to normalise
trade, by dissolving all existing "red tape" and
predjudice. This will permit the free exchange of
wares and services between the super-powers.  The cost of raw materials has
reached a new low over the last few
days. The chemical and automobile
sector will be the first to benefit
from low "crude" prices, while
other industrial sectors have taken
advantage of the positive situation
to realise long-frustrated develop-
ment ambitions. The big guns of the automobile *boom* have been
resounding for years, but only now have the automobile
prices left the trench and are marching towards new
frontiers. ++++++
With the rising trend of industrial orders established some months
ago come the first signs of awakening interest amongst investment
enterpreneurs. This is no big deal. After all, the market revolves
around forthcoming prospects rather than historical "facts". Surely,
the predicted continuation of the international boom, combined with a
flood of confirmed industrial orders, is some indication of things to
come. ++++++ Surprise,surprise.
Late last  night the U.S.
foreign   trade   deficit
reached a record high.
The gap  was 16.5 billion
last month. Meanwhile the
U.S.  Minister of Finance
has complained  that  the
West  German   government
and   "Bundesbank"   have
done nothing  to  support
the  boom  to  bring  ec-
onomic growth,  but   in-
stead  has hiked the cre-
dit interest rate.
Despite German support of
the dollar to the tune of
hundreds of millions, the
U.S.  Minister of Finance
has announced to the  in-
ternational  media,  that
Washington  would  prefer
to suppress the value  of
the  dollar  rather  than
tolerate  raised   credit
dues.
In his own words:
"We not going to sit back
and watch surplus nations
raise interest  levels to
the detrement of growth. Late last night the dollar made a leap on the
N. Y. exchange that would have been previously
regarded as impossible. The dollar rose some
10% against the German D-Mark. Late last night the dollar
plummeted on the N.Y. exchange,
the biggest slump in market
history. Despite intensive inter-
vention by currency banks the
dollar fell some 10% against the
German D-Mark. One of the biggest strikes ever known is presently
crippling the U.S. automobile industry. Teams of
temporary workers have been rushed in to keep
production ticking over. The first grim predictions
are circulating that a wave of liquidations are soon
to be expected, particularly in the automobile delivery
sector.  It  has  just been  an-
nounced that  the US gov-
ernment  plan   to  raise
consumer taxes by some 20
percent next year, in or-
der to  finance  the ever
growing budget deficit.  At yesterday's annual meeting of the
International Monetary Fund (I.M.F.)
and the World Bank, figures were
released by finance ministers and bank
presidents of 140 countries that
confirm fears experts have had for
some time. Credit to developing nations
has now exceded the psychological
barrier of a billion dollars. The  following  news has
just  been  received  via
Telex:
An hour ago, Mexico,  one
of  the  world's  largest
debtor  nations announced
to  a  press   conference
its  intended  refusal to
honour    future   credit
dues, with  immediate ef-
fect.
They  have  already  paid
a  total  of  nearly  100
million dollars, some 99%
of their export profits.
The  Mexican   government
now  considers this to be
an  intolerable burden on
the economy. Owing to the introduction of
computerised deposit systems, banks
expect to reduce their running
costs over the next five years,
saving a total of some one billion
dollars. The consumer-price-index
is becoming more and more
influential.  Experts now
regard the index  as  the
best  monitor for the ri-
sing rate of inflation. At the previous world economic
summit conference of leading
industrial nations it was unanimously
agreed that the world's economy is now
recovering from depression, and this
is having a considerable positive
effect upon the international boom. Even leading  government
economists can deny it no
longer:
The   international  boom
has  now  reached  crisis
point, and a slump is un-
avoidable.
Industry  is  complaining
of business hardship, and
in some trades production
has been curtailed. For the first time since the "Credit Crisis" began
in 1982, the predicament of "debtor nations" in the
third world is easing up a little.
Their export profits are escalating faster than their
expenditure on interest and banking fees. Nevertheless
the burden on developing countries remains critical. The *trade-balance* deficit of the
United States reached a new high over
the last months. Economists warned
weeks ago of an expected record deficit. The *trade-balance* deficit of the United States
last month achieved a completely unexpected recovery. The *trade-balance* deficit of the
United States plummeted last month,
some millions of dollars lower than
previously expected. The stock
Market has reacted to the confusion. The   New  York "*Comex*"
has suffered a  huge drop
in its gold reserves.
Over  the  last  6 months
bulk buying by the Japan-
ese has  reduced  bullion
reserves by some 33 tons. The five most important industrial nations informed us last week of
a rapid rise in consumer prices over the past 6 months. They were most
concerned about the situation in the United States where the danger of
*inflation* is becoming increasingly imminent. Contributing factors were
seen to be the lack of job opportunities, rising import and raw
material costs and an expanding economy. Once inflation takes hold in
the States we cannot expect any other industrial nation to act as the
safe hold of economic stability. +++ As a result of a definite reduction in the balance-of-payments
gap and the ensuing rise in market confidence, the Dow Jones Index
for 30 industrial *stocks* rose yesterday on the New York exchange
by almost 150 points. +++ One of the world's largest banks, the American super-bank Wells
Fargo & CO Inc., San Fransisco, has written off Argentinian credits
totaling over 500 million dollars, recognising their uneconomical
effect on Argentinian commerce. It is the opinion of
"The Wall Street Journal" that Well's Fargo's action may well
force the hand of other credit institutions to follow suit. It  has  been  officialy
confirmed that the Soviet
Union has  over the  last
two  years played  an im-
portant role  as gold ex-
porter.
Their massive  demand for
foreign currency, for the
purchase  of cereals  and
other imports required by
their suffering dependent
nations, has  meant  them
having to export 200 tons
of gold last year.  Over the last 18 months Eastman Kodak has dug in deep
to form a support-line to defend the continuation of its
upwards trend. Despite some commercial progress
it was unable to leave its trench and penetrate foreign
territory. The resistance zone would appear
impenetrable. To defend the continuing upwards trend, American Express has made
a firm stand on the support-line. Successful trading , however,
allowed it to advance its frontiers last month. At the same time
bridging the  treacherous 200 day average differential gap. In the USA last year the
increase in borrowing was
more  than  twice the in-
crease in net production.
The Federal Reserve Board
has stated that the debt
mountain  implies  a pri-
vate  debt   *dividend*  of
$30,000 per American cit-
izen. South Africa,the world's
main exporter of gold, is
now increasing  its  gold
reserves as a  result  of
the   political   unrest.
Meanwhile  its  sales  to
the Soviets  has  dropped
radically. +++ Despite South Africa's domestic problems its government still
refuses to increase  gold reserves. Meanwhile western banks are being
compelled by high interests and continuing gold scarcity to sell off
their bullion reserves. ++++ To cover their foreign exchange
requirements the USSR increasingly
prefers to rely on  sales of natural
gas rather than to sell gold. The
industrial demand for gold,
particularly within telecommunication
and space research is, however,
rising. This allows experts to
clearly predict future trends
in the goldmarket. The Ford motor company has launched a gigantic operation, summoning
all automobiles constructed during the last two years to be returned
for a check-up.
A company statement further admits finding evidence that under
certain conditions the brake-leads could loosen and this, in extreme
cases, could lead to total brake failure.
This may have already caused numerous accidents, many fatal, but this
has not yet been confirmed.
" One can only imagine the immense financial cost to the company of
such a  withdrawal", said a company spokesman. One thing is
certain, however, the vast reduction of stock *dividend* payments for
this and the forthcoming financial year. The rising price of oil to around 3 dollar a *barrel*, and fears of a
worldwide interest hike, have proven a real burden upon the inter-
national finance market. The *OPEC* States buying and selling prices,
give cause to speculation that a hike in the U.S. *discount rate* could
well soon follow.
The market value of *Stocks* & *Bonds* reacted chaotically to the high
interest and *inflation* fears. Foreign currency and gold stocks,
however, managed a recovery. Interest levels continue to rise
on the American exchange. Although
the market rate has stabilised over
the last few days, insecurity
nevertheless continues to influence
the *bonds-market*, regardless of
the current revival of optimism. +++ The question concerning low flying aircraft, which has recently
grown to international proportions, will nevertheless benefit one
particular American Firm quite considerably: United Tech., who
manufactures and promotes flight simulators, has become the inter-
national aircraft industry's most significant partner in its training
of future pilots. The average age structure of the American Pilot Corps
is rising rapidly. The technical journal "Aviation Daily" estimates
that between 1990 and 1994 some 18,000 pilots will reach pension age,
and from 1995 to 1999  more than 30,000 will be pensioned off.
It is imperative that this potential be replaced. United Tech. today
operates over 100 flight simulators, thus putting any competition
well in its place. ++++++++ One of the  main reasons
for the "Gold fever", and
its  resulting  boost  in
the market price of  pre-
cious metals,  was indeed
the  "general"  anticipa-
tion  of  a  forth-coming
crisis.
This prospect has  surely
influenced many investors
to consider the inclusion
of  gold in their portfo-
lios. This  is  confirmed
by the  recent successful
turnover  in  gold coins,
although this  is  mainly
due to a certain increase
in gold production.
In North America, as well
as Australia, new produc-
tion  methods   are being
considered, and even  the
re-opening  of   deserted
mines.    Particulary  in
Canada numerous  new  op-
erations are going ahead,
some  of  which  are  al-
ready minting gold coins.
Conclusion:  Buying  gold
as  a   security  measure
does  tend  to  stabilise
gold  prices, but it also
tends  to  stagnate   its
market value. "Yellow Metal" is desperately seeking a new identity.
Old arguments are disappearing, and valid new ones scarce, to
maintain that gold is a "safe-haven" in a monetary crisis. The
East/West rift is closing rapidly and sound economic policy
now seems the best security for the world monetary system.
Standard gold currency has become a  monument of the past, as
gold production just keeps on growing.
Last year 2,270 tons were produced for a barren market. The
value of gold is being upheld purely for economic convenience. The demand for precious metals has stubbornly prevailed since the
start of the year. This demand has been centered around platinum
and gold. The increased international interest in gold as a capital
investment can be partially explained by the following:

- Ever increasing strikes by South African miners have severely affected
  the production of platinum. The acompanying fear of a shortage of supply
  has inspired many, particularly industrial consumers, to panic buying.
  S. Africa is the largest producer of precious metals in the world.
  (80% of world platinum & 55% of gold)

- Cosiderable purchases by the Japanese government, who plan to issue
  a gold coin  commemorating the death of emperor Hiro Hito, further
  boosted the gold market.

- The rapid decay in ore prices appears to have ceased at last. The dollar has, once again, weakened
today, following the publication of the
latest economic figures. Neither the
revised lower estimate of the economic
growth rate, nor the lower than expected
rise in inflation, can provide a
satisfactory explanation for the
already significant lack of optimism,
that a possible rise in the *prime-rate*
could lead to economic revival. Washington.
"The   Government  of the
U.S. refuses to allow the
value of  the  dollar  to
fall any lower",  said  a
spokesman  for  the  U.S.
presidential office ;  to
this end  the  Government
will  attempt  to  reduce
the *trade-balance* deficit.
The  USA   and  its  most
valued allies  intend  to
coordinate  their politi-
cal  policies  to  form a
basis for stability in  a
fluctuating market. America needs foreign exchange desperately. U.S. citizens are simply
not saving enough, and too few products are being exported.
This demand will not please foreigners, whose dollar purchases nicely
fill the economic gap, since the implications of this, at the present
status of the dollar, would be to raise the U.S. *discount-rate*. The
fundamental weakness of the dollar would, however, limit any further
rise in its currency rate, enough to satisfy the country's needs.
It would indeed be advisable to aim for stability in the
dollar. This would generate a more positive climate for the *balance
of trade* and reduce feelings of public responsibility and guilt. Pressure on the "Greenback" is
increasing, as the *boom*, and with it
the rate of *inflation*, goes into
reverse gear. Sooner or later the
"*Feds*" are going to have to revert
to "easy money", if they want to take
over the driving seat. Meanwhile low
interest rates are putting the brake
on foreign speculation on the dollar. ++++ One American company has been quick to take advantage of
"Glasnost and Peristroika". It's Coca Cola, who is rapidly
developing its business activities in the Soviet Union
to steam ahead of Pepsi Cola, who has had to concentrate on
the less lucrative European market.
For the last financial year Coca Cola paid out 5 dollars on
stock *dividend*. Instead of taking concrete steps to rectify the budget
deficit, as may have been expected, the new President
announced, in his acceptancy speech, nothing but the fine-
sounding phrases we've all heard before, thus  pouring
cold water on the stock-and-bonds trader's already
diminishing enthusiasm. +++++ The American finance market seems unimpressed by the
shooting down of Libyan Mig Hunters by US war planes. It responded
this week with an enthusiastic hike in the market, a strengthening
of the dollar and stabilisation on the *bonds-market*.
Amongst others, McDonalds and Boeing where in the footlights, busily
peddling their shares, and Bethlehem Steel gained a little limelight,
after being strongly recommended by several specialist houses. +++ The European Market has placed a ban on US imported "hormone meat".
This is building up, slowly but surely, to a trade war, with possible
wide spread "bloody" consequences. Meanwhile, both importers and
exporters on both sides of the ocean are suffering from the rocketing
custom duties. Representatives of Trade and Industry are appealing
desperately to representatives of both sides that they cease this
mutually devastating conflict.
Despite intensive top-level discussions,there is still no end in sight
and world- wide *stocks* have been badly hit. Here's  a  tip  straight
from the horse's mouth:
Buy Xerox stocks!
In the Sixties  Xerox won
world recognition by com-
ing   up    with    their
dry-print technique.
Since  their  patent  has
expired, however,the mar-
ket leader  seems to have
had nothing but bad luck.
Now Xerox has  started to
market  a  new  range  of
products, thus  taking  a
giant   step  to  improve
its  standing in the com-
puter and  office-automa-
tion sector. Not only are
they releasing a new gen-
eration of copy-machines,
but  also  laser-printers
and software. Late last night in New York, the first figures from the recently
completed financial year came dripping through.The top earner,
despite the low price of oil, with a net-profit of almost five and a
half billion dollars was... Exxon Corporation!
Last year`s winner IBM with $ 6.6 billion, took second place with a
mere $4.8 billion. The money maker`s bronze medal 1986 goes to Donald
Petersons Ford Company, with a cool 3.3 billion dollars. To the certain
embarrassment of the introspective but somewhat unfortunate General
Motors management, who has  seen its profits melt from a fat $4
billion to a meagre 3 billion, goes the somewhat stigmatic fourth
place. The  *American securities
exchange controlling body
(SEC)*  has  filed  a suit
against the  former  Wall
Street  Journal  reporter
of  "Heard on the Street"
column. He stands accused
of   irresponsiblity   in
disclosing false informa-
tion  about  the perform-
ance of "Playboy"  stocks
over the last  few months
thereby  purposely hiking
its *stock* value.
He  is  also  accused  of
pursuing personal  market
interests by illegal  in-
sider dealing methods. The American stock market controlling body is concerned
about the increasing financial involvement of American
banks and investment houses in highly speculative
"*junk bonds*" and credit-financed "leverage buy-outs".
Chase Manhattan has been named in this connection as
having been seriously engaged in such dealings. The Soviet Head of State and the Communist Party
has given wings to the Finance Market with his latest
disarmament declaration. It is considered in the trade
that Soviet troop reductions could ease pressure on the
U.S. President's armaments budget, thereby easing his
task to make ends meet in the domestic budget and so
reduce the government's deficit. Pepsi Cola is now taking advantage of the Soviet's
anti-alcohol campagne and is reaping massive returns
in the process. As a result of the strict ban on alcohol
consumption the demand in Russia for Pepsi Cola's
manufacture and distribution, has risen so drastically
that Pepsi is having difficultly keeping pace with the
demand and is falling behind with deliveries.
Last year Pepsi Cola paid out a 5 dollar *dividend* on
each *stock*. The American airline corporation
Pan-Am, has been the subject of a
takeover bid from its competitor,
Texas Air.
They are making a generous offer
for Pan-Am's *stock* of 50% above
the current market value. The world's  largest au-
tomobile company, General
Motors, suffered a 3 mil-
lion  dollar   loss  last
year,  almost  a third of
its estimated profit.
The major  cause for this
being the automobile wor-
kers strike last fall and
also  the  reduced demand
for automobiles. Eastman Kodak, the world's largest photography corporation,
has recently confronted almost half of its 93.000 U.S.
employees with a generous redundancy offer. Apart from
disc-cameras and photo-copiers, the "yellow giant's"
business has dropped drastically, thus necessitating
dramatic cuts. The behaviour of Sears-Roebuck is worthy of
close attention. After spending years establishing
a strong business foundation, it now has long-term
prospects in the offing which could well signal a
hike in their *stock*. In achieving their current
market status they have advanced beyond a significant
psychological point, and in so doing have established
a stable upwards trend. Although American automobile manufacturers
have announced a 20% increase in sales,
importers are not so happy.Indeed American
business is benefiting at the cost of foreign
competition and foreigners are reporting
rising stores of unsaleables such as never
before. Boeing  is  to introduce
the  new  B747-400 at the
end of this year, costing
a cool 125  million  dol-
lars each.
Development  costs have a
already been paid up.
Their  biggest  customer,
British  Airways,  is  in
the process  of  renewing
its long distance fleet.
Boeing paid out 3 dollars
per  *stock*  *dividend* last
year. ++++ The most expensive takeover bid in US history has become even
more costly.
The American investment corporation, Kohlberg Kraus Roberts, exceeded
all previous takeover bids, with an offer of 50% above the current
market value, for the American computer manufacturer Commodore's
*stocks*. +++++ *Stock* specialists on the *NYSE* have advised the introduction of a
massive computer-controlled buying program, just in case the Dow
Jones Index should exceed the psychological barrier of four figures. "Ma Bell", or to be official, the American Telephone and Telegraph
Corporation (ATT), is arousing the interest of speculators. Owing to
its frequency of recommendation telephone stocks now figure in
the popularity *charts* of various *banks and brokers*.
Interesting growth opportunities and long awaited economic measures,
have thus reduced redundancies, premature pensions and production
limits. All this has done much to overcome  previous scepticism.
Whispers are going round the hall that ATT intends a takeover of
Apple Macintosh computers, thus bringing itself within challenging
distance of IBM.
ATT's *dividend* last year was 3 dollars per *stock*. Washington - the biggest
order  IBM  has  ever re-
cieved  -   a  commission
from the U.S. Minister of
Transport  to  develop an
automatic flight security
system  to the  tune of 3
and  a  half billion dol-
lars - has been suspended
for 45 working days.
One  of their competitors
claims  they  can  better
IBM's offer. New York -  the US  pub-
lishing house McGraw-Hill
Inc.   has   become   the
center of attraction   in
Wall   Street   regarding
takeover speculation.
Prospective  buyers  have
been named, including the
McGraw management itself.
They are  responsible for
the  publication  of  the
commercial     periodical
"Business Week". ++++++
The most well known advertising slogan in the world,
"Coca-Cola is it", well ensures our psychological association
of Cola with Coca Cola.
Regarding their business prospects, however, it's a different
story. Indeed we could reverse the slogan to: "Coca-Cola is
not it, it's...?".
The world's largest manufacturer of syrups and soft-drinks,
achieved only 900 million dollars last financial year, 10%
lower than the previous year's takings. It's closest
competitors, Pepsi Cola, on the other hand, were able to
increase their turnover by an amazing 30%, to total some 600
million Dollars. Nevertheless Coca Cola paid out a 4 dollar
*dividend* on each stock for the last financial year.
++++++++++++++ A new generation of Compaq-Computers using integrated glass fibre
cables, conceiled until recently under a veil of secrety, has proven
in its primary tests to be the fastest IBM computer to-date. Experts
have described the innovation as a milestone in the development
of advanced computer technology. According to reports, City Corp,
America's largest bank, has advanced most of the development costs in
order to get the lion's share of the profits.
Compaq-Computers paid stock holders 2 dollars *dividend* per *stock*, last
financial year. The American computer industry can breathe
again. The new President has lifted the export
ban on US computer-related products.  Recent developments and
economic  policies   have
led the  world's  leading
banks to predict  a  mas-
sive  over-circulation of
currency.
Japan   particularly   is
maintaining  a loose eco-
nomic policy,  thus keep-
ing  interest levels  low
and  one  step  ahead  of
the USA. Interest levels on long-
term State and industrial
*stocks*   have  reached  a
new  peak  over  the last
few days,the highest this
year. The American Press agency (AP) reported
yesterday that cash reserves of institutional
investment companies, such as *Investment-funds*,
banks and insurance companies, are now as high
as they were ten years ago.
At that time a world-wide *inflation* boom was soon
to follow. All-in-all the highest ever subsidy to come out of
the government treasury has been received by several
chemical companies, for the development of a competitive
synthetic fuel, in the hope of reducing American
industrial independence on the *OPEC* nations.  Doubting  Thomases  eat
your hats:
The  former  boss of City
Corp., America's  largest
bank,  seems to have made
a  successful first  bid,
and  according  to recent
information will  shortly
be running for president.
Who  would  have  guessed
that this  "Man  of  Com-
merce"   and   frequently
elected "Manager  of  the
Year"  would suddenly  be
catapulted into the White
House! According to usually reliable sources,
the American Government is planning
to relax all taxes on profits from
sale of *stocks*. This gives businesses
increased financial muscle, thereby
raising, in the shortest possible time,
the investment capital quota of American
stock corporations. It has just been reported that the US
Government is planning to impose a ban on
the import of foreign automobiles, to take
effect before the end of the year. Despite all expectations to the
contrary, the commercial climate
is getting sunnier every day.
Healthy commercial growth, combined
with a low *inflation* rate would
seem to indicate that the boom
has not yet reached its peak.
Leasure, finance and computer
stocks are profiting most, to
everyones surprise. Because of the law-suit following Texaco's failed takeover bid of
Pennzoil, compensation of 3 billion dollars is soon to be granted.
This compromise may even please Texaco, compared to Pennzoil's
earlier demand for 10 billion dollars. ++++++
McDonald's, the desperado with a blue chip on its shoulder, is
standing well below its year's peak. There was hectic selling of the
Hamburger Giant's *stocks* following a critical survey by a U.S. heart-
specialist team.
+++++++ The American *Investment* Banker will be the first to enjoy the
benefits of new tax legislation. Soon there will be no
discrimination between short and long term market profit or loss.
This will mean a considerable increase in future as far as
commission returns are concerned.  "Health- damaging germs
have been detected in Mc-
Donald's Hamburgers".
It has just been reported
that  the U.S. Health Au-
thorities  are  demanding
the  closure    of    all
branches of  McDonalds in
the land. This follows  a
comprehensive    examina-
tion, whereby deseasefor-
ming  bacteria  were dis-
covered  in every  second
restaurant  of the inter-
national  leader in  fast
food chain. The pharmaceutical company Merck is on the verge of a break-through,
with the development of a preparation that could halt the malignant
development of cancerous cells. A spokesman from the company, however,
when asked to comment on the now well-circulated rumour, claimed
it was premature to make any definite statement at this point in time.  Serious safety weakness
-es have once  more  been
detected  on  Boeing air-
craft.
Almost all their aircraft
have been grounded  pend-
ing  thorough inspection,
an     advantage     that
Boeing's   old  sparring-
partner McDonnel Douglass
has  grasped   with  both
hands.   He  has  now an-
nounced the introduction,
in the next  few  months,
of  a  new breed of long-
distance airline,  having
the advantage of low fuel
consumption  plus a fully
-automated security check
before  each  airline de-
parture. +++++++ Both General Motors and Ford announced last week
that they intend to reduce personnel and introduce a general
rationalisation program.
Such plans, particularly put forward by such formerly successful
manufacturers, may prove symptomatic for the entire industry.
Similar alarming news has come from the computer industry.
The market leader IBM officially informed journalists that here,
too, staff reductions and lack of investment make any increase
in future production seem unlikely. +++++++++++ The president of the oil
multi-national Exxon yes-
terday informed  a  press
conference of  their  75%
involvement in their com-
petitor firm Mobil-Oil.
The remaining independent
stock holders were handed
an offer of settlement 50
percent  higher  than the
nominal    *stock*   market
value. Exxon paid a *divi-
dend* of only two  dollars
per stock at the close of
the last financial year. Marketeers are just beginning to consider the financial
implications of the immune deficiency syndrome "Aids".
We have already received three subsequent announcements concerning
the discovery of a successful cure for Aids by the pharmaceutical
giant Merck.
A company spokesman confirmed the basic truth of this, but hesitated
to give any further details concerning its readiness for the market
or the possible demand for such a product. Meanwhile, their competitors
Allied-Signal are concerned with such speculations as: "If condoms are
to be big business in the future, then contraceptive pills are going
to go out of fashion". Here we have a good example of typical *stock*
market logic. The USX corporation has decided
to *hike its capital* against cash
*investments*, granting an 8:1 ratio.
The new *stocks* are on offer at
15 dollars each. To finance its new European leisure
park, Walt Disney has decided to *raise
its capital* against cash deposits at
the rate of 4:1. The new *stocks* will
be issued at 15 dollars each. To finance intended future investments American
Express has decided to *raise its capital* by accepting
cash payments at the ratio of 6:1. The young *stocks*
will be issued at 15 Dollars. +++++ In answer to increased pressure from competition Texas
Instruments has decided to *hike its capital* reserves with cash
from the sale of freshly-issued *stocks*, encouraging sales with
an offer of 3 to 1. This capital will serve to finance the
advancement of seemingly promising technological developments. One of the largest traders of games in America,
Toys R US, has decided to *raise its capital* in
order to finance a new trade-center. It is offering
a ratio of 5:1. The new *stocks* will be issued at
15 dollars. Proctor and Gamble are approaching the capital market once again.
The company directorship decided at yesterday's general meeting,
to *raise capital* at the ratio of 1:1. The "Young ones" will be on
offer at 15 dollars each. During an attack on  the
New York exchange two ex-
plosive devices were  de-
tonated in the main hall,
directly alongside  where
the  brokers   were  busy
with daily trading.
One   specialist received
minor injuries.
The exchange  will remain
closed   today  following
yet another bomb-scare. Some 50 km distance from
the  New York Exchange an
atomic  power  plant  has
been heavily damaged by a
collision from a low-fly-
ing US airforce jet.
Atmospheric contamination
is  estimated  to be many
times  higher   than  the
radiation leak from Cher-
nobyl.  Despite  somewhat
chaotic  conditions   the
stock - holders  general-
meeting will nevertheless
continue regardless,until
important  daily business
is resolved.