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Show @ Financial Markets D7 @ Mutual Funds D8-D9 Local Business D9 6 Tuesday, May 7, 1996 The Daily Herald Strong economyhasClinton smiling May 6, 1996 =} DOW(industrials) three monthsof last year. Dole at the time cited the 0.5 percentfigure By MARTIN CRUTSINGER AP Economics Writer NYSE to bemoan the “weakest economic growth WASHINGTON — Bill Clinton, the man since the last recession.” who used a sick economy to his advantage in winning the White House in 1992, has to be smiling about recent deve! nts — a strong ts were warning of a possible “double. And speaking in lowalast month, the Senate majority leader and presumed GOPpresidential dip” in which the country would topple back White House is busy basking in the outpouring tistical upturn. Wage gains from January through March were the gest they have beenin five years. | fell to a low of 5.4 percent in UJ April. And the gross domestic product, the broadest measure of economichealth, rebounded to a 2.8 percent growthratein the first quar- *Clinton crunch’ with a straight face, when the economyis growingat an annualized rate of 2.8 percent and new job growth is averaging 166,000 per month,” Labor Secretary Robert Reich said in an interview. recovery,already the secondlongest in peace- ently. In a speech Friday, Dole contended that omyis shaking offlast year’s weakness,econ- goods and services would have been an even 4.3 percentrate and “now we're luckyifit hits tion day with growth strong enough to keep and the governmentshutdowns. Even at 2.8 percent, the GDP advance was five times faster than the puny 0.5 percentrate of economic growth turned in during the final quarter of 1993 when Clinton took office. Manyprivate economists say it was the timing of the upturn that played the critical role in President Bush’s defeat and Clinton's econom- nomics scorecard will be a mistake. Right now the economy looks excellent for an incumbent of good economic news. Volume: 465,130,210 ational Highlights ter. OMAHA, Neb. (AP) — Billionaire investor Warren Buffett's Berkshire Hathaway Inc.. at $33,800 a share, Wall Street's mostexpensive stock, authorized a new, “cheaper” class of stock — which will become the second most expensive issue The so-called Baby Berkshires should be issued Wednesday and are expected totrade a day later on the New York Stock Exchange at about $1,000 a share, Buffett said at Berkshire’s annual meeting Monday That would put it well aheadof what is now the second priciest stock, shares in The Washington Post Co., which were trading Mon. day at $291.50 each NEW YORK (AP) — IBM has arranged with Apple Computer Inc. to use andresell the software that runs the basic functions of Apple’s Macintosh computer but said Monday it won't immediately build Macsitself. The move is designed to help IBMsell the PowerPC microprocessor chips it co-developed with Apple and MotorolaInc. With the Mac software in hand. IBM can approach potential builders of PowerPC-based machines with more ofthe ingredients needed to build a computer. Apple and IBMaretrying toget other computer makers to create machines based on their alternative to Intel Corp. chips and Microsoft Corp. software, a design IBM created in 1980. (AP) — The Securities and Exchange Com- _ Briefly WASHINGTON(AP) — Afederal auction ended with 89 companies pledging a record $10.2 billion for licenses to provide the next generation of mobile phone and data services. “This particular oneis the Jackie O ofauctions,” Federal Communications Commission Chairman Reed Hundt said Monday. “It is much higher than the amount predicted by anyone.” The top bidder was NextWave Personal Communications Inc., which pledged $4.2 billion for 56 licenses, including ones in the densely populated and potentially lucrative markets of New York, Los Angeles, Washington, Pittsburgh, San Diego and Tampa.Fla. markets Utahletter carriers are hoping to fill local tood bank shelves which are traditionally bare this time ofyear Letter carriers are dedicating the drive to the 100,000 children inthe state exposed to hunger each day. Residents throughout Utah are being asked to participate by placing nonperishable food in a bag near their mailbox prior to mail delivery May 11. All food will be distributed to local food banks. Last year Utah letter carriers collected nearly $00,000 pounds jf food, enough mission moved a step closer toward reducing a paper blizzard as it formally required some 16,000 public companies to file their financial reports with the agency via computer. At the same time, computersavvy investors will be able to monitorthe financial details ofany public company, now that the SEC is requiring electronic filing of almost all corporate documents. Over the past three years, the agency has been requiring larger companies to file their quarterly and annual reports via computer in tages, leaving the smailest companies for last Monday's deadline for public companies, with some exceptions, to file electronically from now on is a milestone in the 13-year history of the SEC’s computerizedfiling system, known as” World SALT LAKE CITY — Most letter carriers from throughout the state will be collecting food donations while makingtheir appointed roundsthis Saturday to provide approximately 170,000 meals for hungry Utah children and adults Performanceof key stock markets Percent & change WW Previous close Amsterdam 554.17 Milan 0.7% Brussels Paris 1.0% Me 0.2% 171002 Frankfurt Mey 245749 0.5% 0.3% 24 w mom °° 4.2% Vv 10533 211538 Sydney 0.08% 22990 | °°° i 0.5% vw 21662 38 ae 36112 MARKETS Amsterdam a The Letter Carriers Food Drive is the largest sir e-day fooddrive in the nation LONDON (AP) — The U.S m 1.2426; 5.1540 French francs, down from 5.1557; 1.6999 Dutch guilders, down from for | 1,557.25 Italianlire, down m 1,560.00; 1.3648 Canadian liars, down from1.3663. = The British pound was quotedat 31.5096, down from $1.5100 late Monday. The Mexican peso was at 2.5050, up from 7.4750Friday = London dealers fixed a recommended gold price of $393.75 per at midmorning, up from the Blosing price of $393.25 bid Fri- ay. British markets were closed jay for a national holiday. In ich, the bid price was $393.50, Ofcourse, the Republicanssee thingsdiffer- Sales growth of blackfirms outperforms Forbes and Fortune 500 by 2 percent NONFERROUS METALS YORK(AP) — Aluminum - 73.8 cents per Ib, London Metal Exch. Mon. Copper - $1.3000 Cathode full plate. U.S. destinations. Copper - $1.2450 per Ib, NY Merc spot Mon. Lead - 52 cents per Ib. Zine- 5108-5211 per Ib, delivered Tin - $4.3530 Thu. Metals Week composite price per Ib. Gold $393.00 Handy & Harman(only daily quote). Gold - $394.10 Troy oz., NYMere spot month Mon. Silver$5.450 Handy & Harman(only daily quote). Silver - $5,445 per troy oz., NYMerc spot month Mon. Mercury - $265.00per 76 Ib flask, New York. Platinum- $404.00-$406.00troy oz., N.Y. (contract). Platinum - $408.50 N.Y. Mere spot per troy oz. Mon. four years, with one year to spare. And with thestatistics confirming the econsay things should be good throughelec- Black-owned sameperiod by companies on For- tune magazine's list and the 10 percent growth tallied by Forbes. magazine. The gains came amid declining unemployment and a continuing expansion of the national economy The Black Enterprise listing reported total revenues for the 100 largest industrial and service com- panies and 100auto dealerships of $13.1 billion, a nearly 12 percent increase over the $11.7 billion reported last year. That's about equaltosales for Dallas-based Texas Instruments, which ranks 89th on the Fortune 500list es The nation’s top ten black-owned 5 industrial and service companies, as G compiled by Black Enterprise magazine. TLC Beatrice International Holdings inc., New York, food processing and distribution companies was innovation NEW YORK — Topblackowned businesses showed stronger sales for the fourth straight year, topping revenues for the Fortune 500 and Forbes 500 lists, Black Enterprise magazine reports in its annual ranking Sales for the nation’s top blackowned businesses rose 11.8 percent last year, according to the magazine's June edition, which hits newsstands May21. Growth for the companies on the list surpassed the 9.9 percent revenue jump reported for the president,” said Allen Sinai, chief global econ- omist at Lehman Brothers in New York. businesses “The key word for BE 100s By JOHN HENDREN AP Business Writer B Johnson Publishing Co.Inc., Chicago, publishing, broadcasting, televiown production, cosmetics, hak striving to meettheir entrepreneurial mission in ways that they may not have considered or attempted in the past,” Black Enterprise executive editor Alfred EdmondJr. said in a statement. Revenues for companies on the list of industrial and service companies ranged from $18.3 million for engineering company General Scientific Corp. of Arlington, Va., to $2.1 billion for TLC Beatrice International Holdings Inc. The New York-based food processor and distributor maintained the top rankingit held last year. Beatrice sales were followed at a distance by Johnson Publishing Co. of Chicago, with $316 million in sales; Philadelphia Coca-Cola Bot- care a Cr Coca-Cola Bottling Co., Philadelphia, $2.1 billion $316.2 million $315 mittion GI H.J. Russell & Co., Atlanta, construction, property management, airport concessions, real estate $172.8 million development Es ease Ditamotes Nearer, te 1G Uniworld Group Inc., New York, advertising, public relations, avernanelna: television programming $165.1 miti $133.7 million Burreil Communications Group, Chicago, advertising, public relations, consumer promotions, entertainment $127.9 million B Anderson-Dubose Co., Solon, Ohio, food distributor $119.50 million | Granite Broadcasting Corp., New York, network $449.47 million © BET Holdings, Washington, D.C., cable television network, aah pubishing $115 million APIKiamzon ting Co Inc., at $315 million; J.J. Russell & Co., an Atlanta-based construction property management and real estate company, with $173 million; and Pulsar Data SystemsInc. of rate was slightly lower at the end of the year, annual payrolls at top black-owned businesses rose 6.6 Michigan hosts the most businesseson thelist with 23, followed by Illinois (17), New York (15), Texas (15), Virginia (14), California (13), Georgia (11), Maryland (11) and Ohio(10). As the national unemployment service workers and 8,671 auto dealership employees. Al Smith Chevrolet-Oldsmobile of Brighton, Colo., usurped the top ranking amongauto dealers, which are listed separately, that was held in 1994 by Warner Robins Oldsmobile-Cadillac-Pontiac-GMC Truck Lanham, Md., at $165 million. percent to 42,386 industrial and Inc. of Warner Robins, Ga. There were 26 new companies on the list in 1995, nine of them industrial and service firms and 17 auto dealerships. Tobe eligible for inclusion in the ranking, a company must have been fully operational in the prior calendar year andbe atleast 51 percent black- owned. In addition, it must make or own the product it sells or provide industrial or consumer services. Seattle law firm settles with Bonneville Pacific Coie has agreed to pay $12.75 mil- lion to settle with the bankruptcy trustee of Bonneville Pacific. Thesettlement, which is about 2 percent of the damages claimed by the trustee, will be paid by insurance, the firm said Monday. The company denied wrongdoing andsaid it was settling the claim to avoid the time and expense of a trial. The law firm said it provided limited legal advice to Bonneville Pacific in connection with one ofits projects in the mid-1980s and also represented one of the company’s underwriters in the company’s initial public offering in Bonneville Pacific, a defunct energy company, filed for protec- up from $393.00 late Monday Earlier in Hong Kong. gold rose $1.00 to close at $393.85. Silver traded in London at $5.46 a troy ounce, up from $5.45 late Friday time history, has allowed Clinton to fulfill his campaignpledge ofcreating 8 million jobs in unemploymentnearits current low. more astonishing 4.4 percenthadit not been for a fast crawl.” “Challenging President Clinton on the ecothe General Motors strike, the winter blizzards Doleis correct about GDP growthin thefirst 1986, Dollars/Metals Market currency was trading at 104.93 Japanese yen, down from 104.94 late Monday. Other dollar rates in Europe fompared with late Monday 5248 German marks, down from *5250;, 1.2433 Swis” francs, up Lyndon Johnson to face voters with- “There is no way anyone can talk about a dentsince out having undergone a recession. The current SALT LAKE CITY (AP) — tion under Chapter 11 of the U.S. Zurich 3751.6 into a second downturn. omists The increase in the nation’s total output of Clinton had inherited an economy growing ai a The Seattle law firm of Perkins Tokyo London a Vv Vv Hong Kong nominee said American families were suffering rebound after a period of sluggishness, and from “the Clinton crunch of higher taxes and Their warnings did not come true, but the unemploymentat a 14-month low. lower wages.” expansion did not become firmly entrenched Suddenly the “Clinton crunch” that oppoIn White House briefings, television shows until the final three months of 1992,too late to nent Bob Dole has been denouncing doesn’t and speeches, President Clinton's advisers save Bush atthe polls. look so bad, at least to the Democrats. And the wasted no time last week highlighting the staBy contrast, Clinton will be the first presi. Unchanged: 802 ES pel ea 1995avg. comp. vol.: 422,909,640 ic successes. E : painfulreces Bush had endured a brief but ed S0 ten. recovery sion in 1990-91 and the many uous in the election year of 1992>that Bankruptcy Codein 1992, triggering criminal and civil investigations. Former companyofficers Carl T. Peterson and John T. Dunlop were sentencedtoprison. Bankruptcy trustee attorney Vernon L. Hopkinson said previously that about $500 million would be needed to make everyone — creditors and stockholders — whole. The trustee has contended that many of the Bonneville Pacific transactions were scamsto benefit insiders. The trustee sued company officers and also sued a number of professional advisers to Bon- neville Pacific, contending they failed to discover or disclose the fraud There has been a flurry of recent settlements to meet Mon- day's deadline set by U.S. District Senior Judge BruceS. Jenkins for a final pre-trial conference The Chicago law firm Mayer Brown & Platt agreed last week to pay $30 million Thelargest settlement was $65 million by the accounting firmof Deloitte and Touche. Among the first Bonneville associates to settle were Salt Lake City Mayor Deedee Corradini and her husband Yan Ross. They agreed to pay $800,000. A $1.65 million settlement was reached April 19 with L. Wynn Johnson, a former Bonneville president and managing director. A weekearlier, the trustee announced 2 $675,000settlement with former Earlier settlement agreements included $6.9 million from the Salt $650,000 settlement with former CEORobert L. Wood. Westinghouse Electric Corpora- officer Robert Pratt and Lake law firm Parsons Behle and Latimer and $3.5 million from Peterson The agreements are subject to approval by U.S. District Judge BruceS. Jenkins and federal banktuptcy Judge John H, Allen. Up toa third of the recovered amounts could go to the Arizona law firm that handled the litiga- tion, Other defendants are Portland General Corporation and some of its past and present officers and directors; the law firm Fraser & Beatty of Toronto; Ronald C. Yanke; Calpine Corporation; Piper a Jaffray; Kidder Peabody; and tion. Apple expandsreachofits operating system By JAMES COATES ChicagoTribune Embattled Apple Computer Inc received a rare bit of good news Monday when International Business Machines Corp. finally licensed Apple's MacOSoperating system,the heart of the Macintosh line of personal computers, The upbeat development, which included news of plans to build IBM-licensed low-cost notebook and subnotebook Mac clones in Asia, sent Apple’s stock up $1.75, closing at $25.62 in Nasdaq trading. At least part of the reason for the uptick, Apple executives said in a phone conference with analysts, was because IBM indicated that IBM Japan will work with several Asian companies to manufacture a new line of inexpensive Apple-based machines. tino, Calif.,-based Apple to open the way for clone-makers, similar to what IBMdid a decade ago, whenit let other companies make machines that ran on its operating system, licensed from Microsoft Corp. In that decade Apple went from the world’s largest maker of personal computers to just one of the pack. Macintosh-compatible units account for just 7.8 percent of computersales. With Apple executives and most market experts agreeing that its best hopes for survival hinge on enc g sales of | t clones of Macintosh machines, IBM pledged to work with several ducing Macintosh-clone _lightweight notebook and subnotebook computers and inexpensive desktop machines built by the Asian panies using chips made by IBM. Likewise, Big Blue will license the MacOS operating system toits Asian partners under terms of the deal announced Monday. “We see significant MacOS drop in Macintosh sales and Prompted concern that software and general manager of worldwide marketing and sales-IBM Micro- to a new, expanded role,” said companies will be less likely to continue to produce Macintosh programs, thereby i company’s situation, Apple executives said Monday's many concerns. “IBM has long been a strategic Apple partner, and has the global, growth potential worldwide,” said technical and i John C. Gleason, vice president to propel the Macintosh pl Lamar Potts, Apple vice president 1 ics, “particularly in Asia of OS and technology licensing. and Japan for high-volume noteBut as expected, Armonk. books, subnotebooks and entry based IBM stopped short of Asian companies to produce them. desktop systems.” touse its own factories to Specifically, IBM said it has clones, and thus deals working with Datatech Enterprises Co. and Tatung Co., manufacturing costs in this low-end companies with operations in Chi- Part of the business for losses over the The deal was hailed as a mile- na, Taiwan, Taipei und Europe. Past quarter that totaled $740 million. stone in an intense effort by CuperThese deals will include proThose losses have triggered a } |