European Stars and Stripes (Newspaper) - January 21, 1990, Darmstadt, Hesse                                Page 18 the stars and stripes sunday. January 21,1990 business news Eastern events Bush policy May affect Dollar the persuasive talents of president Bush an soviet Leader Mikhail s. Gorbachev will have a lot to do with the value of the Dollar in the next few  s skill will come into play As his administration tries to convince the Federal Reserve Board that the american Economy is on a steady enough course to allow a further Cut in interest Rales. The president and his team want interest rates to fall making it easier for average citizens to buy Homes and . Corporations to build new manufacturing plants. Such investment could gel the . Economy off dead Center. But the fed. Once considered a sure bet touring rates lower is getting cold feet. Recent reports indicate that the Reserve thinks inflation is still Loo Steep. As a result they Don t want to open the monetary spigots too far for fear that inflation. Which finished 1989 at an eight year High of 4.6 percent will accelerate. The administration believes that the 4.6 percent inflation rate Means the Economy is right on  Rand Mcclaln wants the fed to bring interest rates lower now. .  overseas should Root for the Federal Reserve in this dispute. If interest rates stay up. So will the Dollar As foreign investors arc encouraged to put Money into the Buck. Soviet Leader Gorbachev s verbal skills will come into play As he attempts to convince unruly soviet republics to stay in the fold Long enough for his perestroika Reform movement to work. A week ago. The soviet president was standing face to lace with angry crowds in the streets of Lithuania trying to convince them to give up their Calls for Independence. During the week. Soviet troops were doing the talking with weapons in an attempt to quell the near civil War in the Southern caucasus Region. Soviet unrest is an important Factor for the Dollar. Whenever we Sec bad news from the East the Dollar goes higher and if there is goodnews the Dollar goes  said Gunter Tucich a currency analyst with the Bank of Boston in Frankfurt. West Germany. Last week the unsettling news from the soviet Union helped boost the Dollar Back above 1.70 Marks. In european trading Early Friday Hebuck stood at i.7i4s Marks a gain of roughly three pfennig on the week. The . Military Exchange Rale was set at 1.68 Marks for the weekend based on a Price fixing Friday afternoon in Frankfurt. That rate will apply to military banking transactions across West Ger Many through monday afternoon. The Buck also improved against the British Pound. In european trading Friday one Pound was Selling for j 1.6425, compared with $1.6615 at the Start of the week. Tucich and Petra Oil. An economist with Citi Bank in Frankfurt both think the Dollar has a Chance to move higher in the week ahead. The fed s overriding goal right now is to con lain inflation and that Means there won t be further Cul in Short term interest rates in the United states before late March or Early april on said. She sees the Buck gaining ground to perhaps 1.75 Marks in the near term. Tucich agrees with Oil that 1.75 Marks is Possi ble for the Buck in the next several Days. And if Perc Stroika Breaks Down the . Dollar will really strengthen the Bank of Boston analyst  suggests keeping a close watch not Only on the soviet Union but also on East Germany where there is growing scepticism that a viable oppo lion party will emerge to Knock the communists from Power in May elections. There is a lot going on in East Germany that is not so positive. Tucich said. To Wal a Dairi i european Welcome mat out for american firms by Brian Lewis staff writer new York american businesses having largely put aside worries about fortress Europe now see Good opportunities for . Companies to manufacture product Sand Market their firms effectively in a unified Europe. European economic Community leaders have worked hard to overcome fears that they Are out to exclude american and other foreign corporations fro the joint european Market envisioned for 1992. And their Campaign is creating  is the byword for Many american companies planning for 1992, said Aidan St Walsh who studies euro Pean affairs for the accounting firm of peat Marwick. John Avon senior vice president for communications Atavyon cosmetics agrees. He said the lowering of internal Trade barriers within Europe will help Avon operate More efficiently Avon already has a significant presence in Europe and plans to expand on that he  other american companies that Many experts feel will do Well in a single european Market Are theford motor co. And Ryder trucks. One consultant in new York said Ford has such a firmly established presence in Europe that Many europeans re Gard Ford Europe As a european company , the truck and moving Van rental firm is also a rising Star. In the new Europe Border Crossings Are becoming less of an encumbrance to Trade and Lour Sim. As travel from one country to another increases analysts say Ryder will reap benefits. The creation of Europe 1992 actually refers to a series of agreements being hammered out by the 12 participating nations including West Germany France Spain Italy Ireland Greece and Britain. Their goal is to make Trade the movement of workers and the movement of capital across Borders easier. At this Point about half of 279 directives that have been proposed to smooth Trade have been approved by the european Council of ministers in Brussels. Discussion is continuing on the  i992 s biggest goals Are to allow goods and workers to move More freely within Europe and to give companies already operating in one dec country the right to locate and conduct business in any other dec  companies planning to invest in Western Europe should do Well too St. Walsh said. A company making High technology products might look to build a Plant in Germany he said. But if an Industry is Highl labor intensive then it might look to set up shop in Spain Ireland or Greece. Those countries All have relatively cheap labor he said. I n fact some experts Point to Spain As the dec country Likely to gain the most come 1992. The relatively Low Cost of living there could help Spain Benefit from a Sunbelt Factor As corporations use it As a base to conquer Southern Europe. Additionally Spain will Host two major International events soon the world s fair next year and the summer olympics in 1992.preparing for Europe 1992 has become something of an Industry itself in recent months in the United states. On Wall Street specialists in every Field arc offering advice to firms with their Eye on investing in Europe. A truck Load of books on the subject have also been published including More than 50 by the euro Pean Community information service in , no matter How Many experts Are studying a situation some unforeseen developments occur. Virtually no one expected the gaping holes in the Iron curtain that have opened in recent weeks and opinions divided As to what the implications arc for the euro Pean  commission president Jacques Clors said recently that his organization supports democratic reforms in the East bloc but he thinks it might take years before those nations fully adopt Western economic  admiration for the Peoples of Central and Eastern Europe should not hide the reality Del Orssaud in a speech to the european parliament. The present evolution engenders Hope but also carries within multiple  american firms Hope to be successful in Post-1992 Europe no matter what Fate awaits East bloc economics. Top 10 taxpayer errors 1. Wrong social Security or employer identification number entered. 2. Did not claim Standard deduction. 3. Did not claim earned income credit when entitled. 4. Incorrect name entered. 5. Name line not updated when required. 6. Wrong entry for estimated payments. 7. Did not enter total tax. 8. Math error in computing refund. 9. Did not Check dependency status Box. 10. Duplicate return filed even though not required. Sis Susan Harris with income tax time right around the Corner Here s a gentle reminder about the most common errors made by taxpayers in years past. For More lips look for the stars and stripes 1990 tax and financial planning Rule on monday in West Ger Many Belgium the Netherlands and id land and on tuesday in other countries. If you Trust in statistics numbers say Stock Market will Rise in 90  Cox news service Atlanta Don t listen to the whiners. Hand ring i s. Nervous nellies and other purveyors of doom who to Ink inc Slock Market s going Down hard in 1990. The Odds Are on the investor s Side. According to financial wizards at Georgia tech University the Stock Market is 11.5 times More Likely to go up than Down this year. Not Only that but if the Market docs go up As suming history is any indication chances arc it la go up in a big Way. Tech s computers say stocks should gain 14.7 percent in 1990 if the year mimics past ones in which the phenomenon Call it the other january effect worked. According to Wall Street s better known version of the january effect stocks of smaller companies do Well in Jan uary normally scoring their biggest gains of the year. The thinking goes that those kinds of stocks arc favored by individual investors and arc sold for tax purposes in de Cember then repurchased Early the following year. Tech s other january effect theory postulated by professor Fred c. Allvine claims the Stock Market can be expected to Rise for the year when it s higher after five trading Days of a new year than it was when the old year ended. The Standard & poor s 500 Index a Broad measure of Blue Chip stocks finished 1989 at 353.40, a 27.25percent increase for the year. It closed monday at 353.79, which Means it s a hair ahead of where in was when 1990 began. But that s enough said ally my. Since 1950, the up 500 has risen a phenomenal 23 of 25 years when the Index Rose in the first five trading Days he said. Stocks Rose in Only seven of the of her 15 years in which prices fell in the first five trading Days. Between 1950 and 1990, stocks Rose in 30 years and declined in 10. In years in which the january effect worked thatis when stocks Rose in Early january and then also Rose for the year the up gained an average of 14.7 percent he said. In the 15 years thai the Market did t go up in it first five trading sessions the sap s average annual gain was Zero