European Stars and Stripes (Newspaper) - November 15, 1991, Darmstadt, Hesse                                Friday november 15, 1991 today a tip Japan scentral 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 a 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 year. Conversion rates London up a 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 $356.15 an ounce Sliver at $4.04, nov. 13 nov. 14 British Pound.1.7725 1.7765 German mark.1 6360 1.6329 French franc.5.5950 5.5808 dutch Guilder -.1.8455 1.m97 belgian  Ltd it a a Kalian ufa.1,232 45 1.229.50 Swiss franc.14495 1.4495 greek drachma.122 s turkish lifl.4,945.40 4,945.30 saudi arabian ityal.3.7502 37502 Spanish peseta.103.03 102.66 portuguese escudo.141.43 141.04 Cana Chwi dollar.1.1352 1.1290 austrian schilling.11.526 11.489 norwegian ? a a a 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 British pounds to . Personnel for personal use. Through Friday this will be $1.82 for a Pound based on a Price fixing thursday afternoon at military banking facilities. New York Exchange new York up Tho 15 most Actlis stocks in new York Stock Exchange com posits trading on wednesday. Stock Glaxo holdings Ford motor co Eastman Kodak ban America Goodyear Tiro adv Micro docs Tel Fonos de my total co franc Rwjr Nabisco hid general motors cd corp Pepsico inc Rwjr Nabisco pop Humana inc Philip Morris 5.716.000 3,162.500 2.841.700 2.745.400 2.622.700 2.427.100 2.216.700 2.209.000 2,177,200 2,095,t00 2,05400 1.648.100 1,587,300 1,545,900 1.373.700 lest 30% 25 i 4914 38% 49 % 14 45 i 24% 10 Vuk 34 i 11 i 29% 10% 27% 70% net cd. Up Oft % up1 off i off 1 i up up up on % up 1 % up off i unch off i unch american Exchange new York american Stock Slock Hill Haven corp Amdahl corp fruit of loom instrument sys Iva corp ind Colin eng Nabors Industry carnival cruise tubes de Acero metro Mobile b r a the 10 most Actlis stocks in Range composite trading wednesday. A Quot a net Cha. Unch 875.000 557,300 551,400 511,800 340,900 279.500 239.000 221,200 216.000 211,100 2% 14% 24 a 6 45% 6% 6% 24% 10% 21% off up up i up 2% unch off vice off % unch Dow Jones new York up Dow Jones closing Range of averages wednesday _ _ up 11.19 Oil 2.62 up 0 57 up 2.08 30 industrials 20 transport 15 utilities 65 stocks High 3075.58 1264.19 220.21 1114.93 pm 3023.70 1258.59 217.89 109619 close 3065.30 1275.78 220.02 1110.59 the stars and stripes a Page 17, Money matters slowed demand will offset inflation spurt experts say Washington a despite an unexpected inflation scare in october analysts remain convinced that an Economy struggling to recover from a recession will keep demand soft and prices under control for the foreseeable future. These economists said the Federal Reserve will still have mane vering room to Cut interest rates once again although the timing of the next rate reduction is More Uncertain Given last months Sharp jump in wholesale prices. A rash of new information on the Economy was to be released thursday in reports on retail sales and consumer Price performance during october and the number of new americans filing claims for unemployment benefits for the last week in october. Analysts were Busy revising upward their estimates for consumer inflation following the report wednesday that wholesale prices Rose an unexpectedly High 0.7 percent in october. Many economists said they believed consumer prices May have risen 0.5 percent last month which would be the sharpest retail Price jump this year. Such numbers at the wholesale and retail Levels would normally set off alarm Bells that inflation was threatening to get out of control. However economists said the figures have to be viewed against the backdrop of an Overall Economy that is still struggling to emerge from a recession. Analysts believe thursdays retail sales report will show continued lacklustre demand As americans remain worried about the Economy and their own Job futures. Automakers reported wednesday that Early november sales of cars and Light trucks fell by 14.3 percent compared to the same period a year ago adding further gloom in the depressed Auto Industry. In this environment analysts believe it will be extremely difficult for producers to make any Price increases stick. Already there have been signs of stepped up Auto rebates and a drop in clothing prices in the face of slumping demand. White the administration insists that economic growth in the july september Quarter shows the country has emerged from the 1990-91 recession Many economists surveying a string of weak statistics in recent months Are worried that growth could Well turn negative again in the october Decca bar Quarter. Onus on consumer when shopping for the Best in deals for credit cards new York apr 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 Isnit available from the Comer Dank 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 Scall. 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 balance 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 a 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 reserves 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 fees 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 fee 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 apr 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 governments 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-ill., 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 rates. A the big Banks and Large credit card issuing institutions Are gouging american Consumers a a 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. A i would frankly like to see the credit card rates Down a Bush said in new York. But an opponent of the measure sen. Jake Gam a Utah said Bush was calling for a voluntary reduction not a government imposed Cap on interest rates. He said capping rates could dry up credit for Many people. Do amatos measure would Cap interest at four percentage Points Over the rate charged by the internal Revenue service on late taxes which changes quarterly. Until dec. 31, that rate is 10 percent. That would make the credit card Cap 14 percent currently a Well under the nearly 19 percent Industry average