European Stars and Stripes (Newspaper) - January 4, 1992, Darmstadt, Hesse                                Saturday january 4, 1992 the stars and stripes a Page 15today�?Ts tip As the nations retailers began reporting the results of the Holiday Selling season thursday toys r us stood out with better than expected sales gains that caused a Stampede among investors to buy its Stock. Results of two regional discount chains were More in line with analysts expectations. Toys r us said sales for the eight weeks that ended dec. 28 were up 16.4 percent to $2,5 billion compared with $2.1 billion during the corresponding period last year. Sales in stores open at least one year which is considered a better indicator of performance were up 7.9 percent for the Christmas season. Analysts said toys r us Way of keeping mum during the Normal Holiday hype typically makes investors jittery and the better than expected sales made its Stock the volume Leader for the Day. The Stock closed up 2 Points thursday at 34y4. On nov. 6, when gloomy prognostications for the Christmas season were beginning to show up in newspapers and on television toys r us shares traded at 26%.conversion rates London up fridays 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 $352.40 an ounce Silver at $3.96. Jan.2 Jan. 3 British Pound.1.8685 1.8590 German mark.1.5183 1.5375 French franc.5.1875 5.2460 dutch Oulder .1.7220 1.7271 belgian franc.31.25 31.52 Kalian lira.1.151.50 1,158.50 Swiss franc.1.3640 1.3685 greek drachma.175.30 176.95 turkish lira.5,087.50 5.122.80 saudi arabian ifyal.3.7499 3.7499 Spanish peseta.96.53 97.37 portuguese escudo.133.25 134,00 Canadian dollar.1.1533 1.1491 austrian schilling.10.6810 10.79 norwegian krone.5.9775 6.0350 danish krone.5.9040 5.9650 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 or British pounds to . Personnel for personal use. Through monday this will be $1.90 for a Pound based on a Price fixing Friday afternoon at military banking  Jones new York up Dow Jonts dosing i thursday him Low c in Cianfa 30 industrials 3184.70 3119.86 3172.41 up 3.58 20 transport 1354.82 1323.24 1342.12 Olf 15.88 15 Umes 225.90 222.46 224.48 off 1.69 65 stocks 1159.12 1135.39 1152.38 off 4.44factory orders up in november Washington a orders to . Factories Rose a modest 0.6 percent in november after a bigger Advance in october the government said Friday. They were the first Back to Back gains since april and May of 1991 out they failed to get demand Back to where it was earlier in the summer the Commerce department said. Orders for durable and non durable goods climbed to a seasonally adjusted $243.7 billion in november following an increase of 1.9 percent in october and declines of 5.3 percent in september and 2 percent in August. . Production new orders slipped last month report says new York up the Overall . Economy grew at a slower rate in december and manufacturing declined the nations purchasing agents said. Analysts assessment of the dip ranged from gloomy to upbeat. The latest report on business by the National association of purchasing management showed thursday that production and new orders declined slightly. New Export orders grew in december but at the lowest rate since february 1991. Imports declined for the 18th time in 19 months. Employment declined for the 35th consecutive month in december at the greatest rate since May 1991. The purchasing managers Index closely watched by . And International financial markets dropped to 46.5 percent in december Down sharply from 50.1 percent in november. It was the first time the Index had fallen though the psychologically important 50 percent level since it Rose to 50.9 percent in june 1991. A Reading below 50 percent indicates the manufacturing Economy is generally declining above 50 percent it is expanding. Norman Roberison chief economist of Mellon Bank in Pittsburgh gave a gloomy assessment of the numbers. A they confirm that manufacturing activity has slipped Back into recession a Robertson said. A a we be had a significant decline now that goes Back several months which indicates the recovery was Short lived and  Robertson said the Survey showed inventories declined for the 37th month at the greatest rate since june 1991. A companies Are living off their inventories. Stocks Are higher than they would like. With weak final demand we re seeing a pickup in rate of inventory  Robertson said that As Long As companies were Selling off goods already in their warehouses they would not be producing Many new goods a meaning production and employment would decline. Economist Roger Brinner of Dri Mcgraw Hill in Lexington mass., played Down the importance of the purchasing managers numbers. He said they should come As no big Surprise because the re companies Are living off their inventories. Stocks Are higher than they would like. With weak final demand we re seeing a pickup in rate of inventory liquidation a Norman Robertson Mellon Bank economist suits of the groups Survey usually lag behind by two to three months other private surveys such As the monthly consumer Confidence polls by the University of Michigan and by the conference Board. Brinner was upbeat about what a up next for the Economy contending that newly lowered interest rates a will sharply boost the purchasing Power of anybody with a mortgage. People with adjustable rate mortgages will get it immediately while those with fixed rate Loans will  that extra Dollop of purchasing Power and generally lower rates combined with an investment tax credit Brinner expects to emerge from negotiations Between the White House and Congress a will lift the Economy unambiguously in the  Albert Wojnilower chief economist of first Boston asset management agreed the numbers show an Economy stalled. But he feels the Economy is in for an extend period of stagnation a a maybe even All year a rather than any Quick rate powered recovery. Wojnilower predicted the recent lowering of interest rates by the Federal Reserve and by major Banks would provide support for the Economy Over an extended period but no dramatic upturn. Wojnilower said manufacturers will be curtailing production for some time because order backlogs Are falling and companies Are trying to get inventories Down. The purchasing managers report said new orders the engine of growth fell in december after seven months of growth declining to 49.9 percent from 53.4 percent in november. After growing for six consecutive months since june 1991, production declined slightly in december As the production Index dropped to 49.5 percent Down from november a 52.7 percent. Production is not Likely to grow much until new orders begin to grow. Inventories declined in december for the 37th month to 38.6 percent a Sharp drop from 43.3 percent in november. As a result of the sluggish Economy a number of members reported their companies had implemented hiring freezes Holiday furloughs Short term layoffs and Plant closings. Prices increased in december for the third month. The new Export orders Index not seasonally adjusted registered 52 percent in december Down from 55 percent in november. Big 3 automakers shutting Down 34 n. American plants for a week Detroit apr the big three automakers announced thursday that they will close 34 of their North american Assembly plants for All of next week affecting nearly 74,500 hourly autoworkers. Twenty nine of the plants Are being closed because dealers Arentt ordering enough of the cars they make. Five Are being closed because of retooling or material shortages automakers routinely shut Assembly plants to bring production into line with sales. But the cutbacks were worse than Normal for this time of year because of the National recession which has deeply wounded the automobile Industry. The number of layoffs during the first full week of the new year was about 12,500 More than during the corresponding week in 1991. Laid off autoworkers at general motors corp., Ford motor co. And Chrysler corp. Receive benefits equivalent to 95 percent of their take Home pay. Pm will close 13 Assembly plants next week resulting in More than 38,500 temporary layoffs. The company did not say whether any of the 13 Are among the 21 plants it plans to shut permanently by 1994. Two other pm plants will be closed for retooling but Many of their 5,600 hourly employees will be at work. Ford considered the most efficient of the big three automakers will close a dozen Assembly plants including All but three of its truck plants. Its Plant in Wixom mich., with 3,000 hourly employees will be closed next week because of a materials shortage and its Lorain Ohio car Plant with 3,700 workers will be shut Down for retooling. Chrysler said four Assembly plants would be shut Down next week affecting nearly 14,000 workers. A Chrysler Plant in Bra Malea Ontario with 850 employees is Down for retooling. Assets of Mutual funds take record fall new York a assets of the nations 585 Money Market Mutual funds plunged by a record $21.28 billion As investors pulled their Money out of funds to join the year end rally on Wall Street the investment company Institute said thursday. The huge decline to $457.76 billion in the seven Day period that ended tuesday followed a $6.14 billion drop in the funds assets the previous week according to the Mutual Nind Trade group. The latest plunge dwarfed the previous record of $8.89 billion set in the week that ended dec. 22,1982. Sharp declines Are common at years end in part because investors use some of the Money to pay Christmas Bills. But the $27.42 billion drop of the past two weeks was unprecedented. Jacob Dreyer chief economist for the Institute Saia institutional and individual investors yanked their Money out of funds to buy equities while the Stock mar Ket was surging to new highs at years end. The Dow Jones Industrial average shot up More than 266 Points in the two weeks that ended tuesday. The Institute said that in the latest week assets of 280 general purpose funds fell $2.89 billion to $173.81 billion assets of 88 broker dealer funds dropped $3.41 billion to $139.62 billion Ana assets of 217 institutional funds declined $14.98 billion to $144.33 billion