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Show I li submit a press release, announce a new business, or comment on Utah County busi-- i ness, call Business Editor Travis Jacobsen during normal business hours at To 0 Oil 0 344-256- The Daily Herald Saudi A rabia signs $6 biilio n airline deal Utah to October 26, 1995 DOW (Industrials) NYSE i&P 500 do employees some subsidiary work NASDAQ By SONYA ROSS Associated Press Writer AM EX U1TA Saudi Arabia has finalWASHINGTON ized an agreement to buy 61 commercial airplanes from two U.S. manufacturers, a $6 billion deal the White House says will support thousands of jobs in the ailing aerospace indus- NYSE Diary Advances: 664 Declines: 1,727 673 Unchanged: Total issues: 1994 avg. comp. vol.: 352,288,590 Volume: 3,064 556,144,790 lusiness Highligh One day NEW YORK (AP) after taking control of the AFL-CIJohn J. Sweeney led a march to protest garment district sweatshops and demonstrate the more aggressive leadership he promises to bring to the labor movement. .Marching down Broadway and through Times Square with other Tabor activists, Sweeney said he wanted to be in the streets on his first day on the job. "It sends a ' great message," he said Thursday. "It's an indication of how committed we are to helping workers who are exploited." Stocks fell sharply Thursday as the Mexican peso tumbled and U.S. interest rates shot higher. Crude oil and heating futures prices rose sharply as worries about Russian President Boris Yeltsin's health compounded con- - 1 The Commerce Department said today that gross domestic product, the government's broadest gauge of the economy, surged ; day. " Millions NEW YORK (AP) of Americans can't resist taking up offers for new credit cards because they like the perks and they're always looking for better nites. The average American wallet holds seven different credit cards, contributing to an explosion of consumer debt, according to RAM Research, a consulting business that follows the credit card industry. Now a rise in late payments has some analysts and regulators worried that consumers are overextended and companies that lend money are headed for trouble. NEW YORK (AP) AT&T It it has made official: wants Corp. to be in the local phone business again. comThe biggest pany, which controlled nearly all of the nation's telecommunications until being forced apart by the government in 1984, on Thursday declared its intent to offer local phone service in all 50 states, starting with Connecticut. long-distan- n earnings 1 could douse dwindling hopes that the Federal Reserve will cut short-terinterest rates anytime m soon. accomBut the acceleration likely panied by lower inflation will be welcomed by the Clinton administration, which is hoping for a pickup in job creation heading into an election year. Private analysts said in advance of the GDP report they expected the economy to recover moderately from a sluggish second quarter wl.en GDP expanded at a 1.3 percent rate. Most predicted a growth rate of between 2.5 percent and 3 percent. The GDP "should indicate a highly desirable combination of moderate economic activity and moderate inflation." said economist Elliott Piatt of Donaldson, Lufkin & Jenrette Securities Corp. There was no question about the accuracy af the latter part of those expectations. m By DAVID E. KALISH AP Business Writer said. investigators er about European fuel Gasoline and natural gas futures also rose or, ;he New York On other Mercantile Evhur, commodity market-- , wheat futures continued their re even, and platinum futures fell. lo!la?sMeta!s Marke The dollar LONDON (AP) .'fell against most major currencies today in European trading. Gold prices fell. Dollar rates compared with late 3s23 'rates Thursday included: German marks, down from 1.3967: 100.25 Japanese yen. down from 101.54. 1.1274 Swiss 360; 4.8808 francs, down from French francs, down from 4.9120. Silver traded - I 1.5625 Dutch guilders, down from I.5o47; .591.7ft Italian lire, down -frdm 1.594 (H). and .3700 up from 1.3677. The British pound was quoted 'at "$1.5820. up from SI. 5775 late Canadi-"andollar- Thursday. London dealers fixed a recommended gold price of $382.55 per ounce at midmorning. down from $382.70 late Thursday. In Zurich, the bid was $382.50. down from $382.70 late Thursday. Jn Hong Kong, gold fell 18 cents to $382.70. in London at $5.41 a trov ounce, down from S5.44 a trov ounce hue Thursdav. NEW YORK (APi Spot non-ferro- metal prices Thursdav. Aluminum - 75.0 cents per lb. London Metal Exeh. Thu. Copper $1.3300 Cathode full plate. U.S. destinations. Copper - S! .2775 per lb. NY Comex spot Thu Lead - 44 cents per lb Zinc - 49 . 5070 per lb. delivered. Tin - $4.1377 Mon Metals Week composite lb. Gold - $382.90 Handy per price & Harman (onlv dailv quote). NY Gold - $382.90' troy Comex spot month Thu. Silver $5,415 Handy & Harman (only daily quote). Silver - $5,405 per troy oz.. NY Comex spot month Thu. Mercury - $250.00 per 76 lb flask. New York. Platinum $409.00-$4ll.50 troy oz.. N.Y. - 8-- 'o.. -- -- (contract). Platinum - $409.50 per troy oz. Thu. N.Y. Merc spot YORK Federal have requested information from MCI Communications Corp. on the role former junk-bon- d king Michael Milken played in advising the company, an MCI spokesman said today. The inquiry comes amid questions about whether the former Drexel Burnham Lambert bond executive may have violated the terms of his probation agreement, which barred him for life from securities dealings and investment advice as part of his historic settlement with the government in 1990. Milken advised MCI on its agreement earlier this year to invest as much as $2 billion in NEW Thursday's action continued Wednesday's sell-of- f. which occurred after DuPont raised concern about future perfi rmance. DuPont. which is a component in the Dow industrials, said that while third-quartearnings were fine, a soft global economy may hold down prices and sales volume. cerns Saudi-America- 1997 through 2001. All will use General Elec-- : ! trie engines. The 777 is Boeing's newest jetliner and Johnson said the order "demonstrates a strong and' acceptance of the 777 in the Middle East, reinforces the penetration in that region." .'IJ Harry Stonecipher, president and chief exc4 utive officer of McDonnell Douglas, declined: to estimate how many new jobs the agreement would create for his company, but said it "fits; right in with the production plans for the peri-- ; into Saudia plans to introduce the MD-9- 0 revenue service in 1997. The aircraft will ie 124 passengers in two classes, first and ecavfo my. The MD-1- 1 freighter is capable cf carrying more than 80 tons of cargo between Riyadh and all major cities in Europe, even under the nitfej extreme temperature conditions. McDonnell Douglas said the four MDTf freighters are in addition to two MD-- 1 passenger versions previously delivered to the airline for special govc.nment transportation use. a. 1 Commerce Department said one measure of inflation tied to GDP rose a tame 1.8 percent in the quarter, compared with 3.2 percent the previous three The July-Augu- st months. A separate inflation gauge posted its smallest gain in more than three decades. The economy slowed dramatically earlier in 1995. The anemic gains in the second quarter marked the weakest growth in more than two years. Commerce The Department said the robust advance in the third includquarter was broad-baseconcontribution from ing positive sumer spending, business investment, home building and government spending. Businesses, which reduced their buildup in inventories during the spring, turned around in the summer and replenished stocks more rapidly. Inventories added Z billion to GDP growth in the third quarter after subtracting $16.8 billion the previous three months. GDP measures all the goods and services produced in the nation. Analysts said in advance of the report that the outcome of the tax and spending debate in Congress remains one of the major uncertainties for the economy. Many said the Federal Reserve still might lower interest rates this year if Congress and President Clinton agree on a plan that puts the nation on course for elimination of the federal deficit. The House passed its version of measure a sweeping deficit-cuttin- g the was and Senate Thursday d, scheduled to act today. Clinton has vowed to veto the version of the mammoth bill that likely will emerge from negotiations between the House and Senate. Federal Reserve policy-makemeet Nov. 15 to review trie economy and consider any changes in interest rates. The central bank, after a series of moves to tighten credit and slow the economy, reversed course in July and shaved a quarter percentage point from a key interest rate. It has remained on the sidelines since. "The Fed clearly wants to wait and see the package" of budget cuts, said economist Sung Won Sohn of Norwest Corp. "In the past. Congress usually put tax cuts first, and that's a net stimulus to the economy." The Commerce Department also said today that, using a new method of calculating growth it is phasing in this year, GDP expanded at a more moderate 3 percent rate in the second quarter compared to a 0.7 percent rise in the second quarter. The new method will formally replace the older system at the end of 1995 and is designed to measure price changes more accurately. The Commerce Department said consumer spending, which accounts for about two-thirof GDP, increased at a $26.8 billion rate in the third quarter compared with $30.4 billion the previous three months. But purchases of rs interest-sensitiv- durable goods e rose $15.6 billion, more than three times the gain in the spring. SEC delves into Milken dealings with MCI bonds and stocks, traders A private NEW YORK (AP) investment group agreed to buy Riverwood International Corp.. which makes packaging machinery and colorf ul paper cartons used in selling beer, soft drinks and other consumer products. The deal, announced Thursday, , which is valued at about S2.7 billion including debt, will free Riverwood's majority shareholder. Manville Corp.. to focus full atten-tioon its building products impressive 4.2 percent at an annual rate in the summer. The surprisingly strong growth the biggest jump since the economy expanded at a 5. percent rate in the fourth quarter of 1994 gains that have een reported so far this year, the market was rattled by budget squabbling in Congress and political unrest in Mexico. And while many investors had viewed previous dips in stock prices as buying opportunities, this time they were anxious to take their profits and get out, said Philip Roth, a technical analyst at Dean Witter Reynolds Inc. The market opened lower " a 'xw.tip.uatio" )' Wedneswhich ad day's sell-of- f. been prompted b. pessimism about corporate earnings. The seiling picked up momentum as the peso dropped sharply amid concerns about inflation and political tension in Mexico. The Mexican IPC index lost 3.4 percent, hurting the stock., oi U.S. companies that do business in Mexico. The U.S. stock market was further riled as members of Congress failed to reach a budget agreement that could avoid a default on the nation's debt. A default could raise interest rates and be a negative for big long-ter- Anti-smoki- ) By JAMES H. RUBIN Associated Press Writer NEW YORK (AP) Stocks fell sharply Thursday as the Mexican peso U'.nbled the Western states. The deal was announced in Saudi Arabia in June. "We worked this sale awfully damn hard," White House spokesman Mike McCurry told reporters Thursday. Saudia, the national airline of the Kingdom of Saudi Arabia, ordered the aircraft for cargo service on its international routes and for domestic and regional operations. Prince Bandar bin Sultan, the kingdom's minister of defense and aviation, credited Clinton for closing the purchase. The prince signed the agreement at the White House on Thursday after an hourlong meeting with Clinton, Commerce Secretary Ron Brown and officials from Boeing and McDonnell Douglas. "I was pleased to find the president was very n relasupportive and holds the said. in the a special prince place," tionship "We are very much interested in supporting the of the American people, economic well-bein- g our friends in this country." In Seattle, Boeing spokesman Jerry Johnson said the Boeing planes will be delivered in Economy roars back in third quarter WASHINGTON The econoin roared back the third my quarter, expanding more rapidly than it has since a spending boom in the closing months of last year. and U.S. interest rates shot higher. In addition to worries that corporations cannot keep up RALEIGH. N.C. (AP) R.J. Reynolds Tobacco Co. has decid-ed to remove the cartoon pitchman Joe Camel from its billboard advertising at least through the end of the year. advocates have attacked the suave cartoon figure as too appealing to children. Reynolds continues to reject that argument and will keep Joe Camel in print advertisements and promo-- . ;ienal materials. RJR spokes- wbman Pegsy Carter said Thurs- - try. Boeing will make 23 777s and five 747s under the deal, while McDonnell Douglas will and four MD-ll- s. The provide 29 MD-90- s with to begin in 1997, will be deliveries planes, built in Washington state and California, although some subsidiary work will be done by McDonneil Douglas employees in Utah. The White House trumpeted the deal as another success for President Clinton and his administration, which brokered the sale that w ill put people to work in politically significant Stocks, bonds fall on bad news of Mexican inflation ' : October 27, 1895' Friday, Rupert Murdoch's News Corp. But the exact nature of Milken's role is unclear and appears to be the focus of the government's inquiry. Robert Stewart, the MCI spokesman, said the Securities and Exchange Commission had requested documents "regarding advice tendered by Michael Milken." Stewart did" not elaborate. A lawyer for Milken defended Milken's role in the MCI deal and said he wasn't aware of an SEC investigation. Richard Sandler, the lawyer, said in a telephone interview that Milken provided MCI with "long-terstrategic planning" help that "clearly did not involve investment advice." But he declined to give details of Milken's role, citine a confiden m tiality agreement with MCI. There have been signs that the SEC was interested in Milken's role in transactions high-profi- le including Turner Broadcasting System Inc.'s recent $7.5 billion agreement to be bought by Time Warner Inc. But the request for documents indicates that an investigation has begun. Thomas Newkirk, the SEC's associate enforcement director, today declined to comment on reports the agency was investigating Milken. During the 1980s. Milken earned huge fees by essentially creatir.g the market for high-yielhigh-ris- k securities, peddling the junk bonds to investors while providing financing to companies that otherwise couldn't get access to capital. d, Lynch, Lazard : to pay $20 ;i million to settle" SEC charges By ROB WELLS AP Business Writer WASHINGTON - Mer- rill Lynch & Co. and Lazard Freres & Co. have agreed to . pay more than $20 million; to settle charges that thejj ; failed to disclose a secret v! arrangement tg some municipal finance clients, a Merrill Lynch official said today. '1 -- ; . ; and Securities Exchange Commission was expected to announce the1 settlement with the twop! firms later in the day. Under the agreement, Merrill and Lazard each agreed to pay ; $12 million, which includes ; $3.6 million the firms have ' ; " already paid to resolve a ; dispute with the District of I ; Columbia earlier this year, Merrill Lynch spokesman " ' James Wiggins said. The I ! - The SEC will charge that ; the Wall Street firms violat--; d ed provisions of; federal securities laws by failing to disclose a fee- splitting arrangement. Mark Ferber, a financial adviser hired by local officials," received millions of dollars in payments for his firm from Merrill Lynch when he 1 ! anti-frau- ; ; ; " ; ; recommended the local governments hire Merrill to execute interest rate swaps. The swaps are financial, arrangements designed an investor's; risk to sudden moves in interest rates. ; "I can confirm to yosu that we have reached a civil settlement that resolves ail matters pertaining to this contract with Lazard Freres." to market interest rate'; to swaps municipal, issuers," Wiggins said in 1 interview. The SEC settlement is part of a "global settle- : ment" with government officials in Massachusetts-- ' and the District of Colurtj-bia source familiar with the case said, who spoke of anonymity The alleged involved clients in thosfiC jurisdictions. a, nj Shop around when looking to invest in CDs If you're looking for a safe investment vehicle, certificates of deposit (CD) may be for you. Bank CDs are treating investors to their highest yields in three yeais. To help you get the best for your mon- ey, here are some tips from the Better Business Bureau. When searching for the best rate, be prepared to do some hunting. Sometimes the best deals can be found at small institutions that don't have large branch networks e of bankor don't offer a make check to Do services. ing certain that the institution carries federal insurance on deposits of as much as $100,000. Don't be afraid to shop in other states to make sure you're getting the most competitive rate. But keep in mind that you must move quickly when dealing with a distant financial institution. Rates can fluctuate daily and mailing a check may mean that a dif full-rang- ferent rate will prevail when your money arrives. Another way to get CDs is to go Better Business Bureau through a brokerage firm. There is no commission, and while you .von't get the highest rates in the land, average yields on broker CDs generally beat those at most banks and thrifts. The minimum deposit typically required for broker CDs i's $1,(KK). Banks and thrifts that offer the best CD rates have mini- - mums that can be as low as $100. CDs are perfect for those consumers who don't need their money immediately. The term for CDs is at least 30 days, so you don't want to lock your mct.ey up if you need it during that time period. A bank must give you your deposit when you ask for it. Even if you want to withdraw your money out of a CD before it matures, you generally can do so if you are willing to pay a penalty. Before purchasing a CD, be certain you understand the penalties associated with early withdrawal. Read the fine print. Watch out for "special deals" that banks will advertise periodically in which CDs will be offered at two or three percentage points above the average of other financial institutions. Make sure $ou fully understand the conditions and unique features of such offers. If you have a problem "with your investment, contact the bank where you purchased your CD. The bank should respond tcf you and keep a record of your on file. If th; bank dqrsn't respond, you should contact 4he federal or state agency that pom-plai- 5ru-lat- nt es the bank andor the SecuHfces and Exchange Commission, which ' regulates brokers. ' Better Business BureaUis a nonprofit, private business orgqni-zatioThe BBB has been in s for over 75 years in Vlali and maintains the mission of advocating and. cthtcal conduct in the free enterprise 'system. For more informaiioi'call the BBB s Salt Lake City office ft The n. busi-nes- self-regulati- (800)456-3907- . . |