| Show lei B usmess alt £ake §f ibrow GM Plans More US Layoffs M ay Expand Into Hungary by Bruce Hammond Duffy THIS MI6HT WLTHE MOST IMPORTANT MEETINCr OfrTHE YEAR WITH THE SOAfcP THE UNION THE BANKERS AMD PtffV HASN'T SHOWN UP' WHAT COULD PESO mm I VITAL 1 WHERE'S Monday Morning — January 15 1990 Section H Page 3 THAT HE'D BE LATE? offer thousands of By Rick Gladstone AP Business Writer NEW YORK — General Motors about Corp already bad publicity from the critical movie "Roger & Me" evidently had no qualms proclaiming more cutbacks in its sickly US operations while disclosing plans to expand into liberalized Eastern Europe GM's moves this past week were among the most visible alarm signals in the US auto industry where factories are building too many cars for too few customers Even Japanese a major competitive transplants threat to the American automakers have said they would scale back production "Everyone is very worried about how they respond to the fact we can build 4 million cars more than consumers seem to be interested in buying" said Thomas Kochan a Massachusetts Institute of Technology professor who specializes in the auto industry "So the companies are all struggling to deal with that problem It suggests there's going to be more employment reduction over time" GM along with Big Three rivals Ford Motor Co and Chrysler Corp announced short-terplant closings that will idle nearly 60000 workers Previously announced closings temporarily idled more than 127000 workers But GM went a step further with a broad new plan that will thick-skinne- SL Sessions ' 3200? I)ow to Reach To Attract Ride Volatile Market Out Mine Groups Says Optimistic Analyst The American Institute of Mining Metallurgical and Petroleum Engineers and its affiliate Society of Min- ing Metallurgy and Exploration gather Feb 26 to March 1 in Salt Lake City for their By Nick Poulos Cox News Service ATLANTA — John Connolly the chief market strategist for Dean Witter Reynolds Inc is a very optimistic fellow in these nervous times use AIME activities will be at the Red Lion Hotel SME will be at the Salt for better stock-buyin- sions will be in Mr Epler the Salt Palace SME will present its Ben F Dick-erso- n III award to William C Epler owner of Pay Dirt a Bisbee Ariz-base- d mining industry publication at a luncheon Feb 28 The Women's Auxiliary of AIME (WAAIME) headquartered at the Red Lion will have its 74th annual meeting Feb 28 ' Sessions kick off with a welcoming luncheon Feb 26 Speaker will be Dr Gerald Byrne chairman of the metallurgical engineering department of the University of Utah Subject: "Reflections on the Early Days of Cold Fusion" Others: Sir Alistair Frame chairman of RTZ Corp London Dr Paul E Queneau professor emeritus of the Thayer School of Engineering Dartmouth College and visiting professor of metallurgical engineering at the University of Utah andT S Ary director of the U S Bureau of Mines AIME was founded in 1871 by 22 mining engineers in Wilkes-Barr- e Pa It has five units: Headquarters in New York SME the Minerals Metals & Materials Society the Iron and Steel Society and Society of Petroleum Engineers Membership totals nearly 100000 AIME will have its annual banquet and awards ceremony Feb 26 Society of Barristers Names Utahn Fellow " David K Watkiss Salt Lake City a principal in the law firm of Watkiss & Saperstein Salt Lake City has been elected a fellow of the International Society of Barristers Mr Watkiss is a former dean of the International Academy of Trial Lawyers and a fellow of the American College of Trial Lawyers I Mr Watkiss earned a law degree from the University of Utah in 1949 atfd was admitted to the bar in 1950 TIRED OF CUTS IN YOUR COMMISSIONS? nities In short he's recommending n an mix of 85 percent stocks and 15 percent bonds "I'm looking for the Dow Jones industrial average to get up to 3200 by the end of 1990" Connolly told a group of the firm's clients here "At the same time I have to say I'm expecting a volatile market in which there could be a repeat of the plunge similar to that of last Oct 13 when the Dow fell 190 points" he said "It'll happen when nobody sees it coming like a blind-sid- e tackle" Connolly said his optimism is essentially based on the firm belief there will be no recession "The chances of a recession are fading" said Connolly who holds a degree in economics "The longer this period of slow economic growth the smaller the chances are for recession The risk of recession was higher three or six months ago "I think the economy grew by only one-haof 1 percent in the fourth quarter of 1989" he continued "We are very close to zero economic growth right now but I expect the growth rate will be about 1 percent in the current quarter By year-en- d growth will be up about 3 percent" The Dean Witter strategist said he anticipates the Federal Reserve Board will lower interest rates further in the months ahead Connolly said he looks for the central bank to lower the key federal d If wiwm " at greatly reduced prices Quantity 'Activair 675 (3 '312 1230 x x x x $250 $250 $250 $270 i I guarantee k year warranty on 1 Amount enclosed JiltMw ! I 1 I Remit to BEHAVIORAL PROSTHETICS aU 447 East 1st South Salt Lake City Utah 841 11 Phone 532-185- Chrysler Corp put its Chrysler Technologies unit up for sale last month — Renewed inflation anxiety and nervous markets overseas punched down the US stock market The Dow Jones average of 30 industrials Wall Street's barometer tumbled 71 4fi points Friday the biggest one-dadrop since its 19058 spill last Oct 13 — Major banks dropped their prime lending rate a half percentage point to 10 percent the first decline in a half-yea- r and a signal of cheaper loan rates for consumers and small businesses But the optimism over lower rates was tempered by a government report that showed December wholesale inflation rose 07 percent and brought the total 1989 inflation rate to 48 percent more than double the 1988 rate That suggested the Federal Reserve won't ease interest rates further as many economists had expected — The board of Campeau Corp owner of some of the best-know- y d nation's department best-know- stores moved to separate its troubled retailing operations from the parent company The parent of Bloomingdale's and other chains averted one default deadline by paying apparel bills and took other steps to appease creditors but by the weekend it was still unclear whether Campeau would put the stores under bankruptcy court protection from creditors — Bond Corp Holdings Ltd an Australian conglomerate p MFG LIST $22900 HON ADVANCED BASIC RING BINDER STORAGE BOXES MANAGEMENT CHAIR 95 '169 95 9 fS2 Black Grey only Only $29 Mfg List $40000 rWLabtl Holder Mfg List $425 BIC METAL POINT SMITH PWP40 VMttffl¥ tdO w d7 fVr fata -- Diik a Li-- a y Lit $1428 Mfg V WWvn SUSPENSION 4 DRAWt b" 0 FILE H 0 4 Ann O m0S®mm) I BMCTJ±TTr I M lS'jS& IPtSt rSxS V -- U ULnJ l LA-LnJ- KJ I parking jn parkinq N— minutes —J ofoB°SEO — I I I I PKUHI H 1te ?°:nKdTr?AirareH WJr"'0' TU ' -- J JL JJJI!ftt -- 'EsKJfJ " Ct r'fi rllJnfliB A!fLfiAil I rnUM KIQ' wnT¥ tFAirsclassf 483-656- 5 All charter flights and are ubect to the terms of the OperatorParticipant Contract via Hawaiian Airlines City rip ES WS Ba HI BS M BM MB m tarn minnMimiiiimmiiiM "" iiiiiHimiMiiiiiawiwiiniiif isMtttua I S In conjunction m H structur — 4m A TTS H 'JMJ miiit eIrrwi'MtiiiB AX vJliO 3 B i1 Jour-stor- LL —N rtf 1 short-terparking lot will close as y construction begins on a new parking structure Short-terparkers will use a temporary lot south of the Airport YkC t I I iTII?OTffitfTraB 'When purchased The shuttie buses will circulate every IJ M 1 g Street §SS t Poclttti Mfg List $510 5 Nam Q State over- whelmed by debt rejected a questionable takeover proposal from an obscure Texas businessman whose box return address was a mail-dro- $99 1 1 ' business major ELECTRONIC TYPEWRITER hearing aid repairs PARKING LOT IS CLOSED f)TiSi0 f aerospace subsidiary the second of the Big Three to plan divestment of a SMITH g 1377 East 3900 South Suite 201 Cal1 ToU ta Utah - ( In other business and economic news this past week: — Stalled sales isn't the only problem confronting the automakers who also are heavily involved in defense work at a time when the Pentagon plans radical cutbacks Ford Motor Co announced plans to sell its ccc Licensed Audiologist SHORT-TER-M I Postage NC I AIRPORT i§II we pay Tax i money-bac- States" COnONfX 1 accepted y 9 M WimWJMWM 6 iV995 45-da- conflict creating jobs in Hungary and taking them away in the United r S per package) pks pks pks pks 1 13 hearing aids for senior citizens J Total Package cost I ImlnSwm I by mail from the comfort of your home WASHINGTON (UPI) — The fee charged to ranchers for grazing livestock in national forests in the West will drop by 5 cents per head this year the Forest Service said Friday This year's fee will be $181 per head per month for forests in Arizona California Colorado Idaho Montana Nebraska Nevada New Mexico North Dakota Oklahoma Oregon South Dakota Utah Washington and Wyoming Officials said the fee is based on a formula that considers rental rates for private land the cost of producing livestock and market prices for cattle The fee went down because increased production costs outweighed rises in market prices and higher rents for private land Grazing receipts in the Western states were forecast to total $102 million this year By law 25 percent goes to local governments for roads and schools It was estimated that more than 19 million animals are grazed on national forest land each year Grazing fees are charged per "head month" which is one month's grazing by a cow bull steer heifer horse burro or mule Five sheep or goats are counted as one unit when the fee is figured There are 156 national forests covering 191 million acres in the United States Bait TalrA Wmrinf iP Center Speech MedicareMedtcald $40 discount °n imKM SmL W ilSvW Hearing Aid I6S Grazing Fees In Forests Will Be Cut Office of European Community Affairs — Glen Hiemstra president of Hiemstra International — David Evans chairman of Evans & Sutherland Computer Corp — Dr Samuel Harrell president of Semi Sema tech Panelists include Steve Smoot director of the Salt Lake City office of the US Department of Commerce Greg Gulett of the Utah International Business Development office Wayne Barlow president of Wescor Inc and Dr Keith Martin president of Martin Door Manufacturing Inc Participants can preregister by calling Congressman Nielson's offices in Provo and Salt Lake City The $14 fee includes luncheon W ImMmWi ESS In Western States d Special to The Tribune PARK CITY — Utah Republican Congressman Howard Nielson will chair a conference on Utah's role in international trade in the 1990s Friday at the Yarrow Hotel here Sessions begin at 9 am Subjects include an overview of the world economy in the 1990s the role of exports in the Utah economy Utah's prospects with the 1992 European Common Market commercialreization of universities-sponsoresearch competing in the Pacific Rim and selling in the world market Speakers include: — Charles Ludolph director of the International Trade d cost-cuttin- g Conference to Focus on Role Of Utah in World Market ALL CALLS CONFIDENTIAL - ICALL LISSA (801) 537-760- 0 BUSINESS HOURS - Typ Treasury bond dip to about 725 percent Long-ter- ever-high- lf WE ARE LOOKING FOR SOME COM-TTIBLE PEOPLE TO SHARE OUR EXCELLENT DOWNTOWN FACILITIES AMPLE PARKING CLIENT RECEPTION CONFERENCE ROOM OFFICE EQUIPMENT RECE1 VE UP TO 90 PAYOUT ON YOUR SECURITIES COMMISSIONS UP TO 100 ON YOUR INSURANCE COMMISSIONS nHBBBBIBB 75 per- yields will from their present level of just above 8 percent he added The Fed funds rate or the interest banks charge each other for overnight loans is closely watched by Wall Street because it is the most sensitive indicator of the direction of interest rates Connolly said that unlike a year ago when analysts were fighting for "bragging rights" as they forecast corporate earnings they are now indulging in bragging rights for predicting ever-lowearnings for the fourth quarter of 1989 "As a result I don't see too many earnings disappointments when the companies report their fourth-quarte- r results this month" he said Connolly said he's favorably disposed to oil stocks on the theory that oil prices will keep going up The analyst said he favors stocks such as Texaco Mobil and Chevron "And because I anticipate a firming economy I like the cyclical stocks such as Alcoa and Dow Chemical" he said tech"And I like the nology stocks like Hewlett-Packarand Sun Microsystems and banking stocks such as Chemical Bank which pays a dividend of almost 9 percent" In summary Connolly said he looks for stocks to provide a total return (price appreciation plus dividends) of about 20 percent in 1990 bonds a total return of 10 percent and cash equivalents 7 percent "My advice to investors who want to make money in the new decade is to buy stocks and be patient" he asset-allocatio- Lake Marriott Technical ses- :: cent opportu- g by midyear to about percent from the present 835 He's so bullish he's urging investors to forget about holding cash to annual meeting H fH funds rate white-colla- workers early retirement limit new hiring and cut advertising Separately the auto giant confirmed that it was negotiating over a possible joint venture to build cars and engines in Hungary among the most progressive of the East bloc countries working to radically transform their economies If completed it would be the first such deal by a Big Three automaker behind what once was known as the Iron Curtain That investment reflected how prosperous GM has been in Europe where strong demand and rising sales have counterbalanced the company's weak sales and declining market share in the United States But the timing of GM's announcements — cutting back at home and expanding abroad — seemed to reflect what some critics of the company have called its insensitivity to American workers especially those who have been laid off GM's treatment of its workforce was the subject of "Roger & Me" The critically acclaimed documentary is about the impact of GM layoffs in Flint Mich years ago as seen through the eyes of filmmaker Michael Moore who tries to track down GM Chairman Roger Smith to talk about it The film playing in theaters nationwide is considered a public relations nightmare "The fact is GM has a history of doing things like that" Kochan said "They've announced bonuses for executives while demanding wage concessions from assembly workers" Arvid F Jouppi an automotive industry analyst at the Detroit investment firm Keane Securities agreed that GM had a reputation for layoff announcements But he said the Hungarian deal reflected how the company was seeking to expand in areas of the world where the potential for growth is the strongest In the long run Jouppi said that would benefit GM "I think in a nutshell we're seeing the globalization of the entire auto industry" he said "In the Hungary-Usituation there would not be a 1 I |
