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Show The SaltLakeTribune BUSINESS CONSUMER CORNER, F-2 MLUTAH BRIEFS, F-2 MM BUSINESS GLANCE, F-3 fOTlOy WEGHESBAY @ DILBERT, F-5 « DEC EMBER 22, 1999 Fed Reserve Will Sit Tight Until 2000 Y2Kfears prompt boardto keep rates unchanged,butit hintsthat increases are likel y next year BY MERRILL GOOZNER CHICAGO TRIBUNE WASHINGTON — Faced with uncertainty about aoe-the-year computer woes, the Federal Reserve Board’s committee left interest rates unchanged Tuesdaybutsenta clear sig- earre te is likely early next Oficial, ee ee hes toward raising rates, but analysts said that was only use of the uncertainty associated with the turnover ofcomputer clocks on Jan. 1, 2000, commonly called the Y2K problem. “They were very clear in their statement,” said Paul an economist at Northern Trust Corp. in Chicago “They think the demand side of the For Novell in Past Week Shares ofProvo-based Sa Inc. Tose 15 percentafter compan! tives told analysts DatesES Seo and sales for the current quarter would meet expectations, Bloomberg Newsreported. Novell rose $3.63 to $28.68 in trad- The stock marketrallied as investors cheered the Fed’s decision to keep its policy directive at neutral. Bond investors, however,read the Fed warnings aboutinflation as a clear signal of future rate increases. The yield on Treasury's benchmarkpales bonds climbed to 6.46 percentin late afternoon eeits highest level in more than two "The Te red-hot U.S. economy grew at about a 5.5 percent pace in the third quarter, and most economists are ratch- eting their fourth-quarter estimates to 4 hawks atthe Fed spooked. Most Fed governors believe the economy can grow only at 3 percent to 3.5 percent annually without generating inflation. So the currentlevels of growth suggest higher prices are right around the corner. Indeed, in the past three months the core inflation rate rose at a 3.0 percent rate, according to Kasriel, the highest level in several years. New era economists, on the other hand, believe that Information Age technologies have increased productivity to the point where the economycan sustain that level of growth without generating The company’s shares have risen growing optimism the maker of oenetworking software will sales expectations this quarter, eees said, “They have a good range nology products and aLoyooto sell those products,” said Stephen Dube,an analyst at Wasserstein Perella Securities with a “strong buy” rating on Novell. “They seem to have | a little better level of comfort with their sales this quarter.” Novell will have closed more than 50 percentof its sales for this quarter, which ends Jan.31, pre the endofthis year, Chief Financial Officer Dennis Raney said in a conference cal! with analysts and “We are now almosttwo-thirds quarter as a whole, managementis ident.” Novell shares fell more than 4 percent on Nov,24 after it reported earnings and said its sales rose less than Excluding a one-time tax settlement, Novell earned 17 cents a share in the fourth quarter, missing socalled whisper estimates of 18 cents. Draper Firm Gets $8M HydroMaid international Inc. of Draper saidit will receive about $8 million from Bain Capital in exchange for shares ofrestricted com- mon stock. ‘The company, ee bage eeeta are sure,also said Robert C. anna} ‘tan Capital managing director, pone liraTrg soll tors. HydreMald’s product is innovative, vim saidina iat “It!bas potential throughoutthe Based in esacee Bain CapAtal has invested in more than 160 ies and manages more than Frbiltion in investments. doy i tion into the Year 20 0.”” One place that Fec | focus canbeseenis in the sudden explcision in the money supply duringthefor irth quarter. “Wasthis just the: Fed jawboning on Y2K or just nervous) ness on the part of business?” asked Cai :y Leahey, a senior U.S. economistat Pri mark Decision Eco- nomics. “Either way , they will want to restrain the growth o f moneyandcredit overthe next six mon ths.” inflation. terms of economic performance. Those eye-popping numbers have inflation federal-funds rate, whichis the rate that probably at the nex t Fed meeting in banks charge each other on overnight February. one of the best years of the decade in By leaving rates unchanged, the In short, higherrai tes are on the way, Ornamental Concept Takes Shape ‘Tis a Sign Of Change Now you can trim your tree with famous Utah landmarks Shelves empty’ of stuff MayCo. won’t beselling BY PHIL SAHM BY PHIL § ‘AHM. ‘THE SALT LAKE 3 TRIBUNE At ZCMI ‘THE SALT LAKE TRIBUNE Onegood conception begets another. Jo Ellen Krasnobrod is not a native Utahn, but she is darn close. The San The electronics department is bare. Toys and bool «s will be gone soon. Francisco woman says she was con- In the first visible ; sign of ZCMI’s change of ownership, the department store is closing out pr ‘oductlines and evendepartments tha t its new owner, MayDepartmentStor ‘es Co., does not carry. Utah’s home-gi rown chain has advertised discounts of up to 50 per- ceived in Utah, but born in PaloAlto, In 1997, she and a business partner started Landmark Creations, a Bishop, Calif., company that imports hand-blown glass Christmas ornaments of world landmarks. When she wanted to honor Utah, Krasnobrod conceived little cent on items to maki 2 room for new stock or eliminateite: ns that will not be carried. Lyona Escobar wai 1dered into the ZCMI in downtown Sa It LakeCity on something of her own — a marriage of Old World glass-blowing craftsmanship with a tribute to the Church of Jesus Christ of Latter-day Saints’ Salt Lake Tuesday looking for c her stereo system, t shelves empty. She par shopping in the stor: City temple. “] thought that was appropriate,” she said. “When you think of Utah, you think omponents for .ut found the ‘ticularly liked 2's electronics ofthe temple.” She and her business Peter Stickells this year introduced an heirloom-quality LDS temple ornament department. and one of the Utah Capitol. Now,along with the Leaning Tower of Pisa, Big Ben and nearly 150 other landmarks, the temple and the Capitol can hang from al MI under the ) Aeier & Frank division in Portland, Ore., product “Y'm going to miss that,” Escobar said. y Co. takes ch arge and oper- lines will change, ZC ‘MI President Richard Madsensaid. Christmas trees worldwide. JS rach atic a eeine temple’s image for an with them “so long as they on 8 image of the temple in a respectful way,” spokesman Dale Bills said. Landmark Creation’s ornaments cost from $28 to $60. The Utah ornaments are priced at $38, and the company ordered 500 ofeach for the initial run. The ornaments are made in Poland, where cottage-industry families work “If they don’t fall w. ithin the merchandisingstrategy of the May Co., ‘Ryan Galbraith/The Salt Lake Tribune This Christmas omament of the Salt Lake LDS Temple, sold by Landmark Creations,is made in Poland using Old World glass-blowing craftmanship. the mold. Finaily, the glass is filled with liquid silverto coat the inside. prisms pnteepan ig catalog, puted eetaidan crthsassig next to big factories in the craft of glass blowing. Making an ornamentstarts with a clay model from which a metal or ceramic mold is fashioned.A glass cylinder is heated and the mold is placed it. Air is blown into the glass until it fills Smithsonian D.C., sell the ornaments, Krasn i In Utah, the Chalk Garden in Salt Lake City oie. Wasatch Seasons in sell The ornaments have been on the market a short time,so it is too soon to report sales, Krasnobrod said. She to release the company’s annual revenue. The company probably will issue more Capitol ornaments,Stickells said. One of the next ornaments will commemorate 5 As their business grows, Krasnobrod and Stickells have a modest goal to find retail outlets for the ornaments. “We do not wantto be on every street at every block,” she says. “Just one store per ZIP code area.” they will be eliminated, That means hundre will go, but hundre: remain. May Co.produ likely will not appear i early spring, Madsen sa .” he said. ‘ds of brands ds also will ct lines most n ZCMI until id. The electronics, to) ys and book departments will be eliminated. areas, such as h ome furnishings and kitchenware will remain, but will offer some new | ines. ZCMI, founded in 186 8 at the urging of Brigham Young, w few departmentstores in still carrying electron such as Circuit City aj ‘as oneof the i the country ics. Chains nd Ultimate Electronics chased ¢ lepartment stores from that end of retailing in See ZC MI, Page F-6 Elway, Gretzky, Jordan Team Up For Web Venture BY GEORGE ANDERS ‘THR WALL STREETJOURNAL What's a superstar to do after i | policies on ensuring “a smooth transi percentor higher, which will make 1999 ing of 9.9 million shares. 33 percent in the past week amid loans,still stands at 5.5 percent The central bank; said it had decided to hold rates unchanged at this meeting use it wantedt 0 focus interest-rate Sports-Star Endorsements Shatter Wall Street’s Old-Fashioned Innage BY DUNSTAN PRIAL ‘THE ASSOCIATED PRESS NEW Binsea As Wall Street's narincl Main Street, aah usually tout sneakers and soft drinks have emerged as offective pitchmen for erent ‘high finance. Ten ‘ago, the aE eal. lice of the disalmost tinguished actor John Houseman informed television viewers that broker- in the stock market; and th: & explosive growth in online trading, which has opened up unprecedented ac cess to the market. “Whatthey're doing is focu sing on the everyday guy like me,” said [ david Rom- ishar, a 35-year-old dentis t in Mer- chantville, N.J. “They're utili zing athletes to say,‘Hey, you've se: en me play wee eee tees foeI eo ‘The commercials portray the : ithletes as someone who trades stocks ju st like the everyday guy. Even the staid New Yo rk Stock the sti Shares Rise 33 Percent economy is growing faster than supply, and that means higherprices. |