Voice of America, 97-10-29

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From: The Voice of America <gopher://gopher.voa.gov>

CONTENTS

[01] EURO STOCKS (S ONLY) BY JACK HUIZENGA (LONDON)

[02] N-Y ECON WRAP (S & L) BY MAX RUSTON (NEW YORK)

[03] WEDNESDAY'S EDITORIALS BY ANDREW N. GUTHRIE (WASHINGTON)

[01] EURO STOCKS (S ONLY) BY JACK HUIZENGA (LONDON)

INTRO: STOCK PRICES IN WESTERN EUROPE ARE FOLLOWING THE SHARP UPWARD TREND SET EARLIER ON WALL STREET AND IN ASIA. V-O-A'S JACK HUIZENGA REPORTS FROM LONDON.

TEXT: TUESDAY'S WALL STREET RALLY THAT SPREAD THROUGH ASIA EARLIER TODAY IS PUSHING PRICES UP ALSO IN EUROPEAN MARKETS.

BUT TRADING ACTIVITY IS LIGHT. ANALYSTS SAY IT IS NOT YET CLEAR THE MARKET TURMOIL OF RECENT DAYS IS OVER. THEY SAY TRADERS APPEAR SKEPTICAL, AND ARE WAITING TO SEE IF THE NEW YORK MARKET CONTINUES ITS RECOVERY. THEY ALSO WANT TO HEAR WHAT THE U-S FEDERAL RESERVE CHAIRMAN SAYS IN HIS TESTIMONY TO CONGRESS LATER IN THE DAY.

BY EARLY AFTERNOON, LONDON'S FOOTSIE-100 INDEX WAS UP ABOUT ONE-AND-ONE-HALF PERCENT. THE FRANKFURT MARKET'S DAX-30 INDEX WAS UP MORE THAN SIX PERCENT. AND IN PARIS, THE CAC-40 INDEX WAS UP THREE-AND-ONE-HALF PERCENT.

THE MARKET REVERSAL HALTED A SHARP DROP IN THE VALUE OF THE U-S DOLLAR, WHICH IS UP A BIT IN WEDNESDAY'S TRADING. (SIGNED)
NEB/JWH/PCF/MMK
29-Oct-97 8:58 AM EST (1358 UTC)
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Source: Voice of America

[02] N-Y ECON WRAP (S & L) BY MAX RUSTON (NEW YORK)

INTRO: STOCK PRICES IN THE UNITED STATES WERE MIXED TODAY (WEDNESDAY) AMID VOLATILE AND HEAVY TRADING. V-O-A'S MAX RUSTON HAS THE LATEST FINANCIAL NEWS FROM NEW YORK.

TEXT: THE DOW JONES INDUSTRIAL AVERAGE ENDED THE DAY UP EIGHT POINTS AT 75-HUNDRED-SEVEN, A RELATIVELY MINOR CHANGE FOLLOWING THE PREVIOUS SESSION'S RECORD POINT GAIN. THE BROADER STANDARD AND POOR'S 500 INDEX CLOSED AT 919, A DECLINE OF THREE POINTS.

COMMENTS BY FEDERAL RESERVE BOARD CHAIRMAN ALAN GREENSPAN TO THE U-S CONGRESS HELPED MOVE THE MARKET UP 120 POINTS EARLY IN THE TRADING DAY. BUT THOSE GAINS GRADUALLY ERODED, AT TIMES DIPPING INTO NEGATIVE TERRITORY, AMID PROFIT TAKING AND ONGOING CONCERNS ABOUT SHORT TERM PROSPECTS FOR THE MARKET.

TRADING VOLUME ON THE NEW YORK STOCK EXCHANGE WAS EXTREMELY HEAVY WITH MORE THAN 770 MILLION SHARES CHANGING HANDS -- A FACTOR ANALYSTS SAY INCREASES THE PROSPECTS FOR WIDE SWINGS IN THE DOW JONES INDUSTRIAL AVERAGE.

THE SMALL GAIN IN THE DOW JONES INDUSTRIAL AVERAGE CAME AMID A GROWING CONSENSUS THAT THE U-S ECONOMY IS NOT LIKELY TO FACE SERIOUS IMPACT FROM ASIA'S CURRENCY PROBLEMS. STEPHEN ROACH IS CHIEF ECONOMIST AT MORGAN STANLEY INVESTMENTS.

I JUST SPENT THE LAST TWO WEEKS IN ASIA AND IT IS VERY SCARY OUT THERE. BUT THEN WHEN YOU COME BACK AND RUN THE NUMBERS AND LOOK AT OUR EXPOSURE TO ASIA, OUR EXPORTS TO NON-JAPAN ASIA ARE ABOUT ONE-AND-ONE-HALF PERCENT OF OUR G-D-P. THAT IS NOT GOING TO DRAG THE U-S ECONOMY DOWN INTO A MAJOR SLOWDOWN.

IN CORPORATE NEWS THE WORLD'S LARGEST COMPUTER CHIP MAKER, INTEL, DENIED REPORTS IT IS PLANNING A MAJOR BUY-BACK OF ITS SHARES -- SENDING ITS STOCK PRICE SHARPLY LOWER.

PROSPECTS FOR THE U-S AIRCRAFT MANUFACTURER BOEING IMPROVED WITH THE SIGNING OF A THREE BILLION DOLLAR CONTRACT TO PROVIDE 50 AIRCRAFT TO CHINA. THAT WAS FORMALIZED DURING CHINESE PRESIDENT JIANG ZEMIN'S VISIT TO THE UNITED STATES.

AND THE CHEMICAL GIANT DUPONT ANNOUNCED THE APPOINTMENT OF A NEW CHAIRMAN. EXECUTIVE VICE PRESIDENT CHARLES HOLLIDAY WILL TAKE OVER THE COMPANY BY 1999 FOLLOWING THE RESIGNATION OF EDGAR WOOLARD. MR. HOLLIDAY IS CURRENTLY CHIEF OF DUPONT'S ASIA-PACIFIC OPERATIONS. (SIGNED) NEB/NY/MPR/LSF/PT
29-Oct-97 4:58 PM EST (2158 UTC)
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Source: Voice of America

[03] WEDNESDAY'S EDITORIALS BY ANDREW N. GUTHRIE (WASHINGTON)

(UNEDITED)

INTRO: THE STOCK MARKET ROLLERCOASTER RIDE AND THE VISIT OF CHINA'S PRESIDENT TO WASHINGTON ARE THE TOP ATTENTION-GETTERS IN EDITORIAL COLUMNS FROM ONE END OF THE NATION TO THE OTHER THIS WEDNESDAY.

OTHER TOPICS UNDER THE MICROSCOPE INCLUDE: THE MANDELA VISIT TO LIBYA; THE TROUBLE WITH SADDAM HUSSEIN'S ILLICIT WEAPONS; AND U-N AMBASSADOR BILL RICHARDSON'S CONGO VISIT. HERE IS _________________ WITH A CLOSER LOOK AND SOME QUOTES, IN TODAY'S EDITORIAL DIGEST.

TEXT: WALL STREET ROARED BACK INTO POSITIVE TERRITORY TUESDAY, RECORDING THE LARGEST NUMBER OF TRADES IN HISTORY, MORE THAN ONE-BILLION, AND SOARED 337 POINTS. IT WAS THE MARKET'S ANSWER TO THE DRAMATIC FALL OF MONDAY, WHEN THE EXCHANGE LOST MORE THAN 554 POINTS. ALL THIS MOVEMENT IS GIVING INVESTORS FITS, AND EDITORIAL WRITERS PLENTY TO COMMENT ON. HERE'S HOW "THE DENVER POST" SEES THINGS.

VOICE: "....THE WAVES ON THE SURFACE OF THIS MARKET MAY HAVE WHIPPED HIGH BUT THE WATERS BENEATH ARE DEEP AND STILL. ..... [POSITIVE] LONG-HAUL ATTITUDES .... ARE A GREAT SOURCE OF STABILITY. .... TODAY'S WELL-DIVERSIFIED STOCK PORTFOLIO IS A SHARE OF AN AMERICAN ECONOMY THAT IS STRIKINGLY HEALTHY."

TEXT: TO THE FAR NORTHEAST NOW, WHERE "THE PORTLAND [MAINE] PRESS HERALD" AGREES WITH "THE DENVER POST," REMINDING READERS OF CERTAIN BASIC FACTS.

VOICE: "FIRST, THIS NATION'S ECONOMY IS STRONG AND GROWING STRONGER BY THE DAY. SINCE THE END OF THE LAST RECESSION, IN APRIL 1992, THE ECONOMY HAS GROWN EVERY QUARTER, AIDED BY FREE TRADE AGREEMENTS AND A SOLID WORK ETHIC THAT HAS MADE THE U-S WORKER THE MOST PRODUCTIVE IN ALL THE INDUSTRIAL NATIONS. SECOND, THERE IS NO NECESSARY CORRELATION BETWEEN THE MARKET'S UP AND DOWNS AND THE UNDERLYING PERFORMANCE OF THE AMERICAN ECONOMY. THERE IS EVEN LESS CORRELATION BETWEEN THAT PERFORMANCE AND THE UPS AND DOWNS OF STOCK MARKETS IN HONG KONG, TOKYO, LONDON OR BONN."

TEXT: "THE ATLANTA CONSTITUTION" SUGGESTS THIS IS ONE PRICE WE PAY FOR THE OFTEN TALKED ABOUT, AND NOW EMERGED, GLOBAL ECONOMY.

VOICE: "WELCOME TO THE GLOBAL ECONOMY, WHERE STOCK MARKETS RISE AND FALL LIKE A .... ROLLER COASTER, CARRYING INVESTORS EMOTIONS WITH THEM. .... ..... THE FREE FLOW OF MONEY AND KNOWLEDGE [BETWEEN BORDERS] HAS ALSO MADE THE WORLD ECONOMY MORE VOLATILE. MOODS OF PANIC OR EXHILARATION ARE TRANSLATED INSTANTLY INTO MOVEMENTS OF BILLIONS OF DOLLARS. NATIONAL BORDERS NO LONGER INSULATE COUNTRIES FROM TRENDS ELSEWHERE."

TEXT: ON TO THE DAY'S OTHER DOMINATING TOPIC, THE VISIT OF CHINA'S PRESIDENT TO WASHINGTON, DRAWING ATTENTION FROM ONE COAST TO THE OTHER. IN THE PACIFIC NORTHWEST, "THE OREGONIAN" IN PORTLAND CALLS THE MEETING "A TENUOUS SUMMIT," ADDING THE TWO LEADERS "NEED TO FOCUS ON TRADE SINCE THEY WON'T BE AGREEING ON HUMAN RIGHTS."

VOICE: "DIPLOMACY OFTEN CONSISTS OF HAVING TO CHOOSE FROM BETWEEN IMPERFECT OPTIONS. THIS WEEK'S WASHINGTON, D-C SUMMIT BETWEEN PRESIDENT CLINTON AND CHINESE PRESIDENT JIANG ZEMIN SUMS UP THAT REALITY VERY WELL. ....... CHINA AS A SOMETIMES UNEASY BUSINESS ASSOCIATE IS FAR PREFERABLE TO CHINA AS A HOSTILE ENTITY. SO IF THIS SUMMIT FOLLOWS ITS PREDICTABLE AND PRACTICAL PATTERN, [PRESIDENTS] CLINTON AND JIANG WILL POLITELY DISAGREE ON THE ISSUES OF TAIWAN AND HUMAN RIGHTS, AND FOCUS THEIR ATTENTION ON AREAS, ESPECIALLY TRADE-RELATED ONES, THAT OFFER SOME HOPE OF PROGRESS."

TEXT: AT LEAST FOUR-THOUSAND KILOMETERS AWAY, "THE PORTLAND [MAINE] PRESS HERALD" IS VERY CONCERNED ABOUT THE OPPRESSION CHINA VISITS ON DISSIDENTS AT HOME, AND IN TIBET.

VOICE: ".... WHILE [PRESIDENT] CLINTON'S ATTEMPT TO ENGAGE THE CHINESE IS THE PROPER COURSE, IT IS ALSO APPROPRIATE THAT [MR.] JIANG BE REMINDED ON HIS VISIT HERE THAT ALL IS NOT RIGHT WITHIN HIS COUNTRY. PROTESTERS, THOSE ON THE STREETS AND IN CONGRESS, CAN AND SHOULD SERVE AS A CONSCIENCE FOR [PRESIDENTS] CLINTON AND JIANG DURING THIS SUMMIT."

TEXT: IN OTHER COMMENTARIES, SOUTH AFRICA'S PRESIDENT NELSON MANDELA IS TAKING SOME CRITICISM FROM "NEWSDAY," FOR HIS RECENT VISIT TO LIBYA.

VOICE: "IN AMERICAN MINDS, ... PRESIDENT ... MANDELA WILL HAVE SLIPPED A NOTCH FROM HIS LOFTY MORAL PERCH AFTER HIS ILL-ADVISED DECISION TO SUPPORT LIBYA'S DICTATOR MOAMMAR GADHAFI. [OPT] .... AS BRITISH PRIME MINISTER TONY BLAIR SAID IN SOBER DISAPPOINTMENT, [MR.] MANDELA IS ENTITLED TO HIS OWN OPINIONS, BUT THE MANNER IN WHICH HE EXPRESSED THEM SEEMED DELIBERATELY DEFIANT OF NATIONS THAT SUPPORTED HIM IN THE FIGHT AGAINST APARTHEID. [END OPT] ..... WHATEVER HIS REASONS, [PRESIDENT] MANDELA DID NOT NEED TO SOUR OLD RELATIONSHIPS IN BRITAIN AND THE UNITED STATES WHILE CULTIVATING NEW FRIENDS IN AFRICA."

TEXT: STILL ON THE SUBJECT OF THE MIDDLE EAST, WHERE IRAQ'S DICTATOR SADDAM HUSSEIN IS NEVER FAR FROM AMERICAN MINDS, "THE NEW YORK TIMES" CONTINUES TO CHAFE AT THE FAILURE OF U-N WEAPONS INSPECTORS THERE.

VOICE: "[OPT] FOR MONTHS, IRAQ HAS ACTIVELY MISLED UNITED NATIONS INSPECTORS ABOUT ITS CONTINUING GERM WARFARE PROGRAM AND BLOCKED ENTRY TO MILITARY BASES .... NOW IT IS THREATENING TO SUSPEND ALL COOPERATION WITH U-N MONITORS. BUT THE U-N SECURITY COUNCIL SEEMS RELUCTANT TO PRESSURE BAGHDAD TO BACK DOWN. [END OPT] ..... THE DANGEROUS EROSION OF INTERNATIONAL WILL [AGAINST IRAQ] CAN BE REVERSED, BUT ONLY IF THE CLINTON ADMINISTRATION MAKES AN INTENSIVE EFFORT TO REMIND THE SECURITY COUNCIL HOLDOUTS [ON VOTING FOR NEW TRAVEL RESTRICTIONS AGAINST IRAQI OFFICIALS IN RETALIATION] HOW MUCH THEY ALL HAVE TO LOSE IF IRAQ EVER MANAGES TO ACQUIRE DELIVERABLE BIOLOGICAL, CHEMICAL OR NUCLEAR WEAPONS."

TEXT: "THE BOSTON GLOBE" COULDN'T AGREE MORE, SUGGESTING THE OPPOSING NATIONS ARE PERFORMING "EXTRAORDINARY FEATS OF DENIAL."

VOICE: "THE NEED TO ENFORCE THE SECURITY COUNCIL'S MANDATE WAS - - OR SHOULD HAVE BEEN - - CLEAR TO ALL ITS MEMBERS. BUT POWER POLITICS IS NEVER QUITE THAT SIMPLE. FRANCE AND RUSSIA, EAGER TO COLLECT OLD DEBTS FROM SADDAM AND TO PROFIT FROM OIL AND GAS EXPLOITATION CONTRACTS WITH HIS REGIME, OPPOSED THE IMMEDIATE SANCTIONS WASHINGTON FAVORED AND RECEIVED SUPPORT FROM BEIJING. ANOTHER SIX MONTHS MUST PASS BEFORE BAGHDAD MIGHT BE SUBJECTED TO THE NEW SANCTIONS. .... THE DENIED REALITY IS THAT SADDAM IS HOLDING ONTO HIS BIOLOGICAL WEAPONS BECAUSE THEY ARE MORE IMPORTANT TO HIM THAN THE LIFTING OF THE U-N'S OIL EMBARGO. THAT'S THE PROBLEM EVEN PARIS AND MOSCOW NEED TO FACE. IT WON'T BE SOLVED BY THE [PROPOSED] CLINTON TRAVEL BAN, AND IT CERTAINLY WILL NOT BE SOLVED BY PRETENDING ... IT DOES NOT EXIST."

VOICE: TURNING TO THE SITUATION IN THE DEMOCRATIC REPUBLIC OF CONGO [KINSHASA] "THE WASHINGTON POST" CONTEMPLATES U-N AMBASSADOR BILL RICHARDSON'S MISSION THERE AND PRAISES THE PROMISE FROM PRESIDENT LAURENT KABILA TO FINALLY ALLOW A U-N PROBE OF THE ALLEGED MASSACRES AND HUMAN RIGHTS ABUSES DURING THE CIVIL WAR AND SINCE.

VOICE: "MR. KABILA'S PERFORMANCE THUS FAR HAS BEEN DISAPPOINTING - - PARTICULARLY HIS REFUSAL TO PERMIT A U-N INQUIRY INTO CREDIBLE ALLEGATIONS OF MASSACRES AND TERRIBLE MISTREATMENT OF REFUGEES. HE AND OTHERS IN THE REGION ARE SUSPICIOUS OF THE UNITED NATIONS AND WESTERN NATIONS, IN PART BECAUSE THEY PROPPED UP THE DICTATOR MOBUTU FOR SO MANY YEARS, IN PART BECAUSE THE WEST DID LITTLE TO PREVENT GENOCIDAL MASSACRES IN RWANDA IN 1994. THAT RESENTMENT, HOWEVER, CANNOT EXCUSE MR. KABILA'S STONEWALLING [TOTAL REFUSAL TO COOPERATE]."

TEXT: FINALLY, MORE AGONIZING ON THE THREAT OF GLOBAL WARMING AND THE ROLE THE INDUSTRIALIZED WORLD PLAYS IN THE PROBLEM FROM THE PHILADELPHIA INQUIRER."

VOICE: "EVERY CAR ON THE ROAD, EVERY POWER PLANT USING FOSSIL FUELS, EVERY SMOKESTACK INDUSTRY IS CONTRIBUTING TO A DISTANT DANGER. .... MORE THAN 15-HUNDRED SCIENTISTS, INCLUDING 98 NOBEL PRIZE WINNERS, HAVE CALLED GLOBAL WARMING 'ONE OF THE MOST SERIOUS THREATS TO THE PLANET AND TO FUTURE GENERATIONS.' ..... OUTLINING NEW U-S PLANS LAST WEEK, PRESIDENT CLINTON CREPT IN THE RIGHT DIRECTION. HE PROPOSED ONE BILLION DOLLARS A YEAR IN TAX BRAKES AND OTHER INCENTIVES TO ENCOURAGE ENERGY-SAVING PRACTICES AND TO SPUR CLEAN-ENERGY INNOVATIONS. ..... BILL CLINTON ... AND AL ... GORE ACTUALLY UNDERSTAND THIS STUFF, BUT THEY GOT REBUFFED ON A MODEST ENERGY TAX IN 1993 AND THEY SEE REPUBLICANS AND SPECIAL INTERESTS EAGER TO DEMONIZE THEM AS TAX-LOVING ECO-FREAKS IN THE MIDTERM ELECTIONS OF 1998. .... BUT SOMETIME SOON, THESE TWO LEADERS MUST SUMMON THE COURAGE TO CHALLENGE THE WORLD'S SUPERPOWER, WHICH IS ALSO THE WORLD'S SUPERPOLLUTER, TO LEAD THE WAY AGAINST THIS GLOBAL THREAT."

TEXT: THAT BRINGS TO A CLOSE THIS BRIEF SAMPLING OF EDITORIAL TOPICS FROM SOME OF TODAY'S U-S NEWSPAPERS.
NEB/ANG/EH
29-Oct-97 10:18 AM EST (1518 UTC)
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Source: Voice of America

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