European Stars And Stripes (Newspaper) - April 10, 1988, Darmstadt, Hesse Pago in the stars and stripes business news Dollar goes up then goes Down in trying week the Dollar suffered a series of tils and starts inthe Post week following conflicting report on whether the seven leading industrialized nations would take action to limit the Greenback s de Cline against the yen. The group of seven the United stale West Germany France. Japan. Great Britain. Italy and Canada is clue to meet in washing ton hit week. Japanese paper reported wednesday that the group would agree to a plan that would hold the Dollar value above 125yen, news thai sent the Dollar up against most major currencies. However a German official denied the Story on thursday sending the Dollar Back Down a week s end. The Market i really thrashing Aboul a Bank treasurer in Frankfurt said. A report Here a report there. We re obviously ready to listen id any Anonymous official that gels trotted whatever the truth to the reports traders agree that the future holds troubled times for inc Dollar yen relationship which influence the american currency s performance in other markets. Although an expected Dollar sell off by Jap anese insurance companies has so far failed to materialize inc Greenback could suffer from Japan s Success in enlarging its Domestic markets currency traders now say. The move was designed to open More Japa nose markets to . Goods reducing America s Trade imbalance and bolstering the Buck. In Stead it has served to broaden currency Market interest in the yen contributing to the Dollar s decline. The Dollar s slight move higher in the past week also was influenced by intervention by the Federal Reserve which sold pounds and bought dollars at midweek to help the Bank of England slow Sterling s Rise. The British Centra Bank has purchased s2.2 billion in foreign currencies in the last month alone trying to keep the Pound Incheck according to a Bank spokesman. The Pound is a bit of a fad currency right now because the Dollar is being so Boring a London trader said. Currency traders just can t stand to sit still so we re constantly looking about for whatever appears to be hot. It s the Pound at the moment she said. Many analysts believe the Pound has now peaked and will decline gradually for the rest of the year driven Down by England s growing Trade deficit. Others. However predict inc Pound will jump another 1 percent or More to around 3.20 West German Marks or about si.91, be fore running out of steam or being forced downy either interest Rale cuts or conceded efforts by inc Bank of England. I Don t think there will be any Rush out of Sterling until the Dollar starts moving again and that Likely will not be for a couple More months until the . Trade figures Start showing some real improvement a Frank fun trader said. Until then 1 Don t i Eccl any discernible change in the Slilo traders predict More dips and climbs for the Buck in the coming week As the . Com Merce department releases what one German trader called a statistical bumper in addition to the regular monthly report on America s Trade deficit due out thursday the Dopa tement is scheduled to release figures on retail sales consumer spending and Industrial production among others. A set of figures a Day. Not counting the g-7 meet a British trader said. Jolly fun for the Dollar i would expect i Muhi of my pm am bib my Mam of irs won t penalize retirees on 87 pension tax estimates Bojt Luther a Tei Miter Washington retirees can Stop worrying about being penalized for underpayment of estimated lain on their 1957 pensions. The internal Revenue service announced last week it will waive penalties that otherwise would hit retirees who failed to pay sufficient lax in Advance on their Peiu Inu. The idea ii to have equity Between retired people and wage said irs spokesman Johnell Hunter. Retired people will now have the same benefits As wage the irs announced lost year that it would not impose penalties on taxpayers who had too Little withheld from their 19s7 wage. That announcement was made because of widespread taxpayer confusion about the numerous lax Law revisions enacted in 1986 and a Complex new w-4 withholding form. Even with these two waivers taxpayers with Large amounts of interest dividends and other investment income still might be penalized if they have to pay too much tax when they file their returns. But the penalty would not apply to wage or pension portions of in come. A t Rule at least 90 percent of 1937 tax liability must have been paid in Advance through withholding or estimated quarterly payments. Withholding is no required on pensions although most recipients opt to have lax Aken out from each Check. The irs said most retirees will be automatically covered by the waiver without having to take any additional action. Those who have already filed a return and paid the estimated lax penalty will have any Over payment refunded. A taxpayer who receives a Penally notice dated be fore May 2. 1988. And Hii not responded should Call the irs assistance office at the . Embassy in their country. The number in Germany is 0228-339-2119. The waiver applies to any retirement income including military retirement income that must be re ported on line 16b of form 1040. Thai also include individual retirement account and profit sharing distributions employee savings plans pensions and annuities. In another decision affecting retirees the irs Aid owners of multiple iras who passed the age of 70w in 1987 will be allowed More discretion in choosing from which Ira to take a distribution. Such Ira owners Art required to have taken Money from an Ira by april 1. A recent change in the Law required those with multiple Ira accounts to Divide the minimum required distribution among those accounts. Under the change announced wednesday a past 70vi Ira owner still will have to calculate a required distribution from each account but May then choose to take the entire payout from any one or More accounts. The irs announcement said taxpayers who already have received payout from their iras and want to take advantage of the new Rule May be Able to mum he distribution to one or More accounts under existing rollover provisions. In general an Ira owner has a 60-Day period each year during which an account May be rolled Over into another. This change could Benefit for i ample a Retiree who has some High earning iras and some that Are earning less. The Retiree might find it beneficial to take the required minimum distribution from the less Lucra Tive Ira and keep the High earner Inlall. Magazine says Fortune 500 had Best year Ever in 87 new York a America s Industrial giants enjoyed record sales and soaring profits last year unfazed by the Slock crash that left Many people expect ing a recession Fortune Magazine said last week in its annual list of inc 500 mightiest manufacturers. Across inc rust Belt you can hear the sound of Champagne corks popping and Beer cans Shprit zing open the Fortune 500 had its Best year Ever in 1987, the Magazine said in an Advance text of its april 25 Issue. After half a decade of sitting on the sidelines while the rest of the Economy Boogie the biggest . Industrial corporations waltzed into the great american profit party wild record sales and earnings Fortune said. Chrysler corp. Returned to the top 10 for inc fint Lime in a decade helped by its acquisition of american motors corp. Fortune said Chrysler perhaps Best Symbol izod inc Story of the 1988 Fortune Soo list the rust Bell was Fortune said total sales of inc Soo climbed 9 percent East year Losi us trillion up from $1.72 trillion in 1986 and higher than the previous record of 11.81 trillion in i9&j. Profits jumped to 191 billion from $64 billion a 42 percent increase thai gave inc 500 its biggest share Ever of . Industrial profile Fortune said. The Magazine attributed the performance to freely spending Consumers unconcerned with the Oci. 19 Slot Market plunge corporate restructuring that has reduced workforces and the weak Dollar that has made . Goods More competitive overseas. The lop six companies. General motors corp., exion corp., Ford motor co., International business machines corp., Mobil corp. And general electric co., were unchanged from the previous year. Tcxicoinc., no. 7, and american Telephone i Telegraph co., no. A swapped places from the year before. . Dupont do Nemours & co. Repeated in the no. 9 knot and Chevron Asp. Was bumped out of no. 10 by Chrysler s ascent from no. 11. The new list contained fewer members of industries such As building materials food Industrial and farm equipment Petroleum refining rubber products toys and sporting goods there were More companies producing chemicals computers furniture metals drug Sand cosmetics. Geographically new York was Home to so of inc Soo Down from s3 the year before but that was still enough to keep it the no i corporate Headquarters City. Chicago repealed As no 2 with 24, up from 20 the year before Pittsburgh was no. 3 with 15, Dallas Houston and Cleveland tied for fourth with 12 each Atlanta Minneapolis St. Hours and Stamford conn., tied for seventh Wilh 10 each and los Angeles and Richmond va., had eight each. Fortune compiles the list of inc 500 biggest Industrial companies every year based on annual tales of the previous year. The Magazine also compiles the service Soo the biggest . Service companies which is re leased in May. Texas wineries enter Italy wine festival Washington a _ Beer May be the beverage of Choice for More texans hut five wineries from inc Date arc hoping to make a big splash at Italy s largest wine festival. The wineries Hope exposure at the Vin Italy show in Verona will increase their credibility with financial institutions thai have been slow in lend them Money for expansion in a stale belter known for cowboys and re dvrs than for cabernet and Vin Rouge. I think it will enhance the prestige of Texas wines la have competed ill the Premier Hine festival in Europe Texas congressman Kaka de la Garza said be fore leaving for the show which opened Friday. Texas had one winery in 1975 today h has 22. Five of those wineries will join 30 others from califor Nia new Jeney Pennsylvania new Mexico and Washingion in the first official exhibition of american wines at Vin Italy
