European Stars and Stripes (Newspaper) - November 15, 1991, Darmstadt, Hesse                                Today s tip Japan s Central Bank Cut the nations key lending rate by 0.5 percentage Points to 5.0 percent thursday in an Effort to halt what Many consider a slide into recession. The new Cut in the Bank s official discount rate a the interest it charges for Loans to commercial Banks a followed an identical 0.5 percentage Point Cut on july 1. That rate in turn influences other interest rates. The Bank of Japan boosted the discount rate five times Between May 1989 and August 1990, ending a four year period of easy Money that saw the Rise of a speculative a Bubble  but since the japanese Economy entered a slowdown this year there has been pressure to ease credit and fuel capital investment. The federation of economic organizations Japan a leading corporate group estimated the 0.5 percentage Point Cut would be Worth about $7.69 billion in additional profits to companies in the next fiscal  rates London up1 thursdays rates for the . Dollar to other currencies. Figures Are expressed in dollars to the British Pound other local currencies in dollars Gold was quoted at $356.00 an ounce Silver at $4.04. Nov. 13 nov. 14 British pound.1.7725 1.7755 German mark.1.6360 1.6285 French franc.5.5950 5.5830 dutch guilder.1.8455 1.8375 belgian franc.33.65 33.68 italian lira.1,232.45 1.232.45 Swiss iranc.1.4495 1.4470 greek drachma.185.15 184,69 turkish lira.4,945.40 4,945.30 saudi arabian hyal.3.7502 3.7502 Spanish peseta.103.03 102.66 portuguese escudo.141.43 141.04 Canadian dollar.1.1352 1.1290 austrian Schilling .11.528 11.489 norwegian krone.6.423 6.404 danish Krone .6.3625 6 3435 these Are commercial rates and can be related Only to the use of foreign currency by . Forces for official business. The Only official rate concerns the Sale of German Marks to . Personnel for personal use and this will be 1.59 through Friday based on thursdays noontime  York Exchange new York Dpi a the 15 most Active stocks in new York Stock Exchange composite trading on wednesday. Stock sales Ull net chg. Glaxo holdings 5.716,000 30% up % Ford motor co 3.182.500 25 % Oil % Eastman Kodak 2,841,700 49 i up 1 Sank America 2.745,400 38% off % Goodyear tire 2,622,700 49% off 1 % adv Micro docs 2.427,100 14 up % Tel Fonos of my 2.216,700 45 i up total co franc 2.209.000 24% up % r3r Nabisco hid 2.177.200 10% Oil % general motors 2.095.100 34 % up 1 % Citicorp 2.052,400 11 % up Pepsico inc 1.648,100 29% on % Rwjr Nabisco Pip 1,587,300 10% unch Humana inc 1.545.900 27% off 1 % Phiilip Morris 1,373,700 70% unch american Exchange new York up a the 10 most Active stocks in american Stock Exchange composite trading wednesday. Stock sate last net chg. Hill Haven corp 875.000 2% unti Amdahl corp 557,300 14 % Ott fruit of loom 551.400 24% up 1 instrument sys 511,800 6 up i Ivan corp 340.900 45% up 2% inti Colin eng 279,500 6% unch Nabors Irr dusts 239.000 6% Oil % carnival cruise 221,200 24% of % tubes de Acero 216.000 10% Ott % metro Mobile 8 211,100 21 % unch Dow Jones new York up a a Jones closing Range of averages wednesday hid Lew Cleia chanet 30 industrials 3075 58 3073 70 3065 30 up 11 19 20 transp on 1284 19 1258 59 1275 78 aft 2 62 utilities 220 21 217 89 220 02 up 0 57 65 stocks 1114 93 1096 19 1110 59 up 2 08 _ Friday november 15, 1991 the stars and stripes b Page 17 Money matters report should end fears of inf lotion analysts say Washington a consumer prices edged up a tiny 0.1 percent in october the smallest change in seven months the government said thursday in a report that analysts said should put to rest any inflation worries. The virtual absence of inflation in the labor departments consumer Price Index was in Sharp contrast to wednesdays report that wholesale prices shot up 0.7 percent in october. Labor department economists said the huge discrepancy largely reflected statistical differences in the Way prices Are measured in the two reports. Private economists who largely had dismissed the wholesale Price report As an aberration said they believed thursday s 0.1 percent Rise in consumer prices More accurately reflected what was going on in the marketplace where recessionary forces have kept prices restrained. Many economists Are worried that the Economy could topple Back into a recession and another report thursday served to highlight those fears. The government said that new claims for unemployment benefits shot up to 454,000 for the week ending nov. 2, an increase of 33,000 from the previous week. While the weekly jobless claims figure can be extremely volatile the new claims number was the highest since last Spring. Analysts said the number shows widespread layoffs Are continuing throughout the Economy. In a third report the government said that retail sates fell 0.1 percent last month a disturbing development As the Christmas sales season approaches. Many economists fear that worried Consumers who account for two thirds of total economic activity will Cut Hack even further on spending which could he enough to push the country Hack into a full recession. The Bush administration in an Effort to bolster spending has lobbied the Federal Reserve and the nation s Hanks to Cut interest rates further. The 0.1 percent Rise in consumer prices was the Best showing on inflation since prices actually fell by 0.1 percent in March. The october Price report showed widespread moderation with Energy prices rising a tiny 0.2 percent far below the i percent gain of the previous month. Food prices actually fell in october by 0.1 percent with clothing costs dropping an even faster 0.4 percent. Onus on consumer when shopping for the Best in deals for credit cards new York a for Many Consumers shopping for the Best credit card Deal is a bewildering experience. It does no to come in Glossy junk mail brochures it probably in t available from the Corner Bank and you probably wont find it at the office credit Union. A the onus is on the consumer a said Robert k. Heady publisher of the Bank rate Monitor of North Palm Beach Fla. A Many of the Best deals Are not being advertised or promoted that a Why the cardholder must do his or her  experts say Consumers should consult newsletters that track credit cards credit card charts that appear in some newspapers and leading business magazines. But its not simply a matter of finding the card with the lowest interest rate though interest rates have captured the spotlight. On tuesday president Bush pressured Banks to lower rates hoping Consumers would be encouraged to spend More and stimulate the sluggish Economy. And on wednesday the Senate voted to require dramatic cuts in credit card interest rates. The Senate a formula would make the current credit card Cap 14 percent. The average interest rate for credit cards nationwide is about 18.6 percent though some issuers Are charging More than 20 percent at a time when rates for mortgages and other consumer Loans have fallen to less than half that to their lowest Levels since the late 1970s. Some experts expect the political pressure to have some effect in pushing rates Down. At amp to a Universal card for example announced a 1 percentage Point drop in its rates the Day after Bush s Call. But David Robertson president of the consumer credit card rating service in Santa Monica calif., cautioned that Consumers Are Likely to see annual fees begin going up instead. Consumers need to consider their own spending patterns when selecting a card experts say. Those who usually pay their entire balances each month should look for a card with a Low annual fee. For those who regularly carry a Hal Anee from month to month the interest rate should be the deciding Factor. Most Consumers with a Good credit history can qualify for a free card since eliminating the annual fee is one of the easiest ways for issuers to gain a competitive Edge Robertson said. When it comes to interest rates Simmons first National Bank in Pine Bluff ark., is offering perhaps the lowest rate around a 9.5 percent on its visa and Mastercard. But that a not because the Bank s executives Are generous or want to expand their cardholder base. Arkansas Law limits the interest rate on credit cards to no higher than 5 percentage Points above the Federal Reserve s discount rate its loan fee to Banks. Simmons charges an annual fee of $25 for out of state customers $22,50 for Arkansas residents. But experts caution that Small or obscure Banks May not be the Best Choice despite their Low rates. Because they cannot assume the same level of risk larger institutions can Small Banks typically offer Low credit limits and May reject customers outside their Region Robertson said. To ensure they profit credit card issuers must balance what they earn in Lees and what they earn in finance charges. A someone can make a profit at 14 percent but Only if they give the card to people earning Over $80,000 a year have a Good credit history and pay a Lee a Robertson said. Americans held 664.4 million credit cards last year a including 375 million issued by general retailers a up 38.1 million from the previous year said Faulkner amp Gray a credit card research concern. Senate proposal would Cap credit card rates Washington a credit card interest rates would be Cut dramatically under an amendment attached to banking legislation in the Senate. Lawmakers adopted a provision to Cap rates in a 74-19 Surprise vote wednesday night Over the last minute objections of the Bush administration. If eventually enacted it would immediately drop rates by nearly 5 percentage Points on average. A final Senate vote on the Overall Bill which would also replenish the government s dwindling Deposit insurance fund was expected by thursday. Meanwhile the House was planning thursday to vote on a similar banking Bill although without the credit card provisions. Aides said rep. Frank Annunzio d-lll., would introduce a similar rate Cap measure. But under procedures limiting amendments to the banking Bill adopted 305-112 by the House Annunzio will have to push his legislation separately. A credit card rate ceiling if eventually enacted would be a major blow to the banking Industry. However the provisions could easily be dropped when the House and Senate banking Bills Are combined into a final version. Even if that happens the vote was seen As a warning to card issuers to Cut rates which have stayed High despite drops in other major interest Rales. Quot the big Hanks and Large credit card issuing institutions Are gouging american Consumers Quot said sen. Alfonse m. Do am Ato r-n.y., who sponsored the amendment. He estimated it would save Consumers $7,5 billion a year. In a Way the Senate was Only giving president Bush what he requested at a fund raising luncheon tuesday. Quot i would frankly like to Sec the credit card rates Down a Bush said in new York. But an opponent of the measure. Sen. Jake Garnr Utah said Bush was calling for a voluntary reduction not a government imposed Cap on interest Rales lie said capping rates could dry up credit Lor Many people. Do amatos measure would Cap interest at Lour percentage Points Over the rate charged by the internal Revenue service on late taxes which changes quarterly. Until dec. 31, that Rale is 1 1 percent. That would make the credit card Cap 14 percent currently a Well under the nearly 19 percent Industry average