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The Finance Ministry plans to examine how life insurance companies realised capital gains through transactions undertaken in June just before the yen bond market began to fall sharply a senior Ministry official said. The move is aimed at cooling fierce competition in the field and will pave the way for a Ministry system to check that insurers do not inflate investment returns on the accounts to attract investors he said. Some insurers transfer part of their unrealised gains from general accounts to the variable life accounts violating their internal regulations industry sources said. The eight major local life-insurers which offer variable life policies here realised an average return of 21.01 pct on such policies in the year ended September. The Ministry will scrutinise the policies of 17 local and foreign life insurers which offer the variable life schemes. Japan has 23 major local life insurers none of which is listed on the stock market. REUTER

JAPAN TO SCRUTINISE LIFE INSURERS' CAPITAL GAINS

FTSE 100 share index opens 186.0 down at 1,866.3 - London Stock Exchange

Growth in Japans M-2 plus certificates of deposit (CD) money supply in the October to December period is not expected to accelerate but will remain at high levels between 11 and 12 pct a senior Bank of Japan official said. The central bank will keep a watch on high growth in liquidity because this is a factor that may cause rises in prices of goods he said. The September growth of 11.1 pct year on year announced earlier today should not be taken as implying that the money supply has started to expand very rapidly he said. In August the rate of increase was 11.0 pct. REUTER

JAPAN MONEY GROWTH TO STAY AT 11-12 PCT - OFFICIAL

West German car and van production rose in September to 407600 from 386000 in September 1986 while exports climbed to 226300 from 218200 the German Automobile Industry Association VDA said. The association added that incoming domestic orders in September were above and foreign orders roughly equal to those in September last year. Car and van production rose in the first nine months of the year to 3.25 mln from 3.19 mln. But exports fell to 1.80 mln from 1.85 mln Output of light trucks fell in September to 13200 from 14700 while heavy truck production was unchanged at 10100. Over the nine month period light truck production fell to 109300 from 129200 while heavy truck production dipped to 83800 from 84700. Exports of light trucks fell in September to 7800 from 9000 and to 66600 from 84300 in the first nine months. Exports of heavy trucks rose to 5500 in September from 4600 in September last year and to 47800 from 45300 in the first nine months. REUTER

W.GERMAN CAR OUTPUT, EXPORTS RISES IN SEPTEMBER

Finance Minister Roger Douglas said the fall in share prices on local and world markets demonstrated that New Zealand could not be isolated from global trends. We cant expect to isolate ourselves from developments around the world Douglas told reporters. I think above all what todays problems illustrate is that the sort of policies that we have been putting in place the last three years are absolutely essential so that New Zealands economic performance improves relative to the rest of the world. The New Zealand share market fell 14.7 pct on Tuesday in a record one-day fall. Douglas told a news conference at which the government announced plans to sell its 89 pct stake in <New Zealand Steel Ltd> that the sharemarket fall would not affect plans to sell parts of state-owned corporations such as <Air New Zealand> <DFC New Zealand Ltd> and <Petroleum Corp of New Zealand Ltd>. Asked if the government considered acting to close the sharemarket for a period Douglas said: No. Im not sure it would have been my job to do so. REUTER

DOUGLAS SAYS N.Z. NOT ISOLATED FROM WORLD MARKETS

Some economists fear a world recession if stock exchanges continue to plunge. Others are more sanguine. The pessimists say the stocks shakeout is destroying personal assets and dampening consumption. The real economic effects can be significant -- the destruction of wealth and a deflationary impact on the economy said an economist at a U.S. Securities house. But other economists said such fears were overblown. Because of lower appreciation of corporate or personal assets that much negative impact could be observed (in the U.S.) said Keikichi Honda general manager of economic research at the Bank of Tokyo Ltd. But the appreciation of stock prices has not been playing such a major role in the entire U.S. Gross national product (GNP) Honda said. The pessimists noted that the record fall on Wall Street on Monday was sparked by fears the U.S. Economy is heading for a recession or serious slowdown much earlier than expected. But the optimists said a dampening effect on consumption due to stock market losses was less likely in Japan. In Japan the weight of stocks in individuals total assets is less than in the U.S. And the total weight of individuals holdings in the stock market is less so there will be less damage than in the U.S. said an economist at one of Japans major brokerage houses. Japan is taking strong measures to stimulate domestic demand so while there could be some impact from the reduction of assets value it would not be a major impact said the Bank of Tokyos Honda. Optimists also pointed to incipient declines in U.S. Interest rates as a positive sign for the U.S. Economy. U.S. Interest rates are coming down so there is a feeling that interest rates have hit their ceiling and the U.S. Economy is strong so there should be no direct impact from the collapse of share prices said Toshiaki Kakimoto Sumitomo Bank Ltd chief economist. Some economists suggested that should markets continue to slump the major industrial nations may have to discuss possible joint lowering of official discount rates. Until last week a discussion of lower rates was unthinkable now its not said the Japanese brokerage house economist. There has been a move from the purely rational to the emotional -- its a central bankers nightmare said the foreign economist. It will require strong global leadership by politicians to snuff out he said. However previously the stocks correction was due to fears of higher interest rates a possible resurgence of inflation and the depreciation of the dollar said Nobuyuki Ueda senior economist at the Long-Term Credit Bank Ltd. Now some people have an uneasy feeling about the outlook of the U.S. Economy Ueda said. If the stock market is a leading indicator of the future movement of the economy this decline will have very significant implications for the U.S. Economy he said. If the low levels hold those who were keeping consumption high because of unrealised gains could curb consumption said Salomon Brothers (Asia) Ltd economist Ron Napier. If the paper gains arent there people wont spend. A U.S. Recession could then trigger similar declines in other economies some economists said. I dont know if a possible recession in the U.S. Would trigger a world recession because other nations such as Japan are showing good economic performance LTCBs Ueda said. But we cant rule out the possibility because the U.S. Is still playing a very dominant role in the world economy. REUTER

WILL WORLD RECESSION FOLLOW STOCK MARKET PLUNGE?

Government and monetary authorities today staged a concerted effort to calm spreading panic on Japanese stock exchanges but market analysts said there were limits to their ability to succeed. The ability of the Big Four (Japanese securities houses) and the Finance Ministry is limited said Barclays de Zoete Wedd economist Peter Morgan. Finance Ministry officials asked the big four securities companies this afternoon to help calm panic selling on the Tokyo Stock Exchange ministry officials said. Prime Minister Yasuhiro Nakasone was quoted by Kyodo News Service as saying he was watching the stock market situation. But he rejected comparisons with the 1929 stock market collapse and subsequent recession. Finance Minister Kiichi Miyazawa said the Tokyo stock market should not be gravely affected by downturns in New York and London because there are clear signs of a Japanese economic recovery and exchange rate stability. Bank of Japan Governor Satoshi Sumita also tried to calm the panic saying in a statement that world stock markets were excessively concerned about the economic future. Traditionally the four big houses -- Nomura Securities Co Ltd Yamaichi Securities Co Ltd Daiwa Securities Co Ltd and Nikko Securities Co Ltd -- have influenced the market because of their sheer size and overwhelming market share. This strength has in the past made it possible for the brokerages to calm down markets under guidance from the Finance Ministry analysts said. But the analysts questioned whether the brokerages which have already suffered heavy losses from falling bond markets over the past year would have the strength this time to turn things around. The question is are the Japanese brokerages strong enough to force investors to buy said Johsen Takahashi research director at the Mitsubishi Research Institute. If we consider that they have suffered serious losses in the bond markets and in their U.S. Investments it is debatable whether they they could support buying he said. We can support things to some extent but we cant completely suppress selling said one Japanese broker. Some analysts said the high percentage of shares cross-held by financial institutions and other corporations could have a stabilising effect on the market. Some 80 pct of shares are held by corporate shareholders said Keikichi Honda general manager of the Bank of Tokyo Ltds economic research division. This is a tightly woven textile. In its own way it is stronger than Wall Street. But other analysts expressed doubt about this argument. If a high percent of shares is cross held everything happens at the edges and the relative moves can be larger said Kleinwort Benson Ltd financial analyst Simon Smithson. Selling will drive prices down an enormous distance because of no liquidity. You dont need big volume to get big declines in the market -- you just need a huge imbalance between sellers and buyers said Barclays Morgan. Shares held by what are termed stable shareholders or banks and other companies with which a firm does business might also find their way onto the market if the outlook gets bad enough some analsyst said. Closely held shares could become unclosely held said Morgan. But he said such a prospect is unlikely right now because companies with their improved earnings prospects do not need to sell shares for cash flow reasons. REUTER

JAPAN TRIES TO STEM STOCKS DIVE

Oil prices would skyrocket for a time if conflict in the Gulf closed the Strait of Hormuz but oil supplies could be adjusted to take care of world demand Indonesian Energy Minister Subroto said. He made no explicit reference to the latest U.S. Military action in the Gulf. But in an address to a conference of the Indonesian Petroleum Association he said If worst comes to worst and say the flow of oil through the Straits of Hormuz is completely shut off I believe the world oil supply given time to adjust can take care of the situation. But this is not to say that prices at least for a short duration will not skyrocket as speculators take advantage of the situation he declared. Tensions in the Gulf however usually had a relatively short-term impact on prices he added. Assessing future price trends he said Short-term spot prices will probably still fluctuate but they will most likely hover around the official Opec price basket of 18 dlrs per barrel. The upward deviations however are likely to be greater than the downward ones. The balance between supply and demand in the short term will still be delicate he added. Non-Opec production may still go up competing with Opec for the expected additional increase in world demand. Subroto a member of Opecs three-man quota committee which has been touring cartel members said speculation may play havoc with spot prices but Opec was trying to stabilize the situation by urging cooperation by non-Opec producers. In the medium term non-Opec production would reach a plateau in the early 1990s leaving Opec much stronger he said. REUTER

WORLD COULD COPE WITH HORMUZ CLOSURE, SUBROTO SAYS

Bangladesh Petroleum Corp said it floated an international tender for imports of two mln barrels of Jet Kero Superior Kero and High Speed Diesel for shipment during January-June 1988. It said the offer for the petroleum products would be open until 0600 gmt on November 19. REUTER

BANGLADESH TENDERS FOR TWO MLN BARRELS PETROLEUM

Poehl says German and international interest rate rises are cause for concern

Bundesbank has no interest in higher capital market rates - Poehl

An Iranian shuttle tanker reported spotting a floating mine in the central Gulf on Tuesday about 50 miles west of Lavan Island regional shipping sources said. The Khark III owned by the National Iranian Tanker Co gave the position of the mine as 27 degrees 14 minutes north 52.06 east. There was no indication of measures being taken against the mine which is in Iranian territorial waters. REUTER

IRANIAN TANKER REPORTS SIGHTING MINE IN GULF

Willis Faber Plc <WIFL.L> chairman and chief executive David Palmer said the company would consider any bid for its 20.8 pct shareholding in Morgan Grenfell Group Plc <MGFL.L> but had not yet received any offers. We will entertain any approaches he told Reuters in reply to questions following U.K. Press speculation. In an earlier statement Faber said that if an offer were to be received for its stake in the merchant banking group it would be considered on its merits. REUTER

FABER OPEN FOR OFFERS ON MORGAN GRENFELL STAKE

Inflationary fears are unjustified and exaggerated, Poehl says

<Corby Distilleries Ltd> 52 pct owned by Allied Lyons Plc <ALLD.L> subsidiary <Hiram Walker-Goodman & Worts> is to buy the spirits business of <McGuinness Distillers Ltd> of Toronto for 45 mln Canadian dlrs. McGuinness is a producer and marketer of spirits and also has exclusive agencies for some imported wines and spirits. The sale is subject to the approval of the Bureau of Competition Policy. Michael Jackaman president and chief executive officer of Hiram Walker and Allied Vintners said The acquisition is an excellent one both commercially and financially. REUTER

CORBY DISTILLERIES TO EXPAND IN CANADA

Rises in West German and international interest rates are a cause for concern and the Bundesbank has no interest in higher capital market rates Bundesbank President Karl Otto Poehl said. We consider the interest rate increase that has occurred here and internationally to be a problem and cause for concern Poehl told an investment conference. I would like to stress that the Bundesbank has no interest in higher capital market rates he said. Shortly after Poehl spoke the Bundesbank announced a tender for a securities repurchase pact at a fixed rate of 3.80 pct. Previous tenders over the last month by interest rate have seen the allocation rate on these facilities rise to 3.85 pct at last weeks pact from 3.60 on the last fixed-rate tender in late September. The Bundesbanks reduction of the key allocation rate to 3.80 from 3.85 pct was heralded Monday by repeated injections of money market liquidity at between 3.70 and 3.80 pct. These moves to cap interest rates followed a meeting between Poehl Finance Minister Gerhard Stoltenberg and U.S. Treasury Secretary James Baker Monday in Frankfurt. Officials said afterwards the three men had reaffirmed their commitment to the Louvre accord on currency stability. Over the weekend criticism by Baker of the tightening in West German monetary policy had prompted a sharp fall of the dollar on speculation that Louvre cooperation had ended. But the dollar rallied on news of Mondays meeting in nervous trading to trade above 1.79 marks Tuesday. Poehl said that the recent rise in interest rates was not due to central bank policy but to markets expectations and currency developments. Commenting on the inflationary expectations Poehl said You have to get to the root of the problem you have to pursue a policy which reveals that there are no grounds for such fears. The inflationary fears were unjustified and exaggerated he said. Poehl rebuffed recent U.S. Criticism of West Germany saying the Bundesbank had made a substantial contribution to international cooperation in interest and monetary policy. The Bundesbank has tolerated an overshooting of its money supply target arousing criticism from other quarters he said. Today we still have lower interest rates than at the end of 1986... Quite the contrary of other countries where interest rates have risen substantially more Poehl said. This had to be taken into account when considering recent rises in repurchase pact allocation rates which were due to rising international money market rates that had spilled over into the German market he said. Poehl expressed surprise that financial markets had so far ignored improvements in the U.S. Deficits. The adjustment process in the U.S. Trade balance is definitely underway he said noting that this was not so noticeable in absolute figures. The spectacular improvement in the budget deficit had also attracted little attention he said. REUTER

POEHL SAYS RATE RISES ARE CAUSE FOR CONCERN

U.K. Chancellor of the Exchequer Nigel Lawson said the Government was going ahead with this months flotation of British Petroleum Co Plc <BP.L> shares despite the collapse on international stock markets. We are going ahead because the whole issue has been underwritten - we had it underwritten because there is always a risk of this sort of thing happening Lawson said in a BBC radio interview. Lawsons remarks came as renewed selling on the London stock market took BP shares down a further 33p to 283 well below the 330p price set for the around seven billion stg issue. Lawson said the U.K. Economy is fundamentally sound and added that stock markets had reflected that recently. I profoundly believe in the market system as the best way for securing economic prosperity (but) that does not mean to say the markets are infallible. My advice to small investors...Is to remain calm. There is absolutely no reason not to do so Lawson said. REUTER

LAWSON SAYS BP SHARE OFFER GOING AHEAD

Bundesbank sets 35-day securities repurchase tender at fixed rpt fixed 3.80 pct

Paris share price indicator opens 2.31 pct down - official

U.K. Chancellor of the Exchequer Nigel Lawson said the severity of the current rout on world stock markets was an absurd over-reaction sparked on Wall Street by a spreading lack of confidence in the U.S. Economy. Lawson said in a BBC radio interview This began on Wall Street. It has a lot to do with the American stock market (and) a lack of confidence in the U.S. - and some careless talk by those who should have known better. In a further wave of selling this morning in London the FTSE 100 index had lost a further 233.2 points only 50 minutes after the official 0800 GMT opening to stand at 1819.1. Lawson said a correction on world stock markets was to have been expected after the bull markets of recent years. What was not expected was the severity of the downturn which quite frankly is rather absurd. He said he saw no fundamental signs why the U.S. Economy should go into recession adding Indeed the possibility of higher (U.S.) interest rates would certainly in my judgment not lead the American economy into a recession. The only way in which the American economy would go into recession was if it actually talks itself into recession he said. REUTER

LAWSON CALLS DEGREE OF SHARE FALL ABSURD

The Japanese economy is firmly on the recovery path supported by robust domestic demand the Bank of Japan said in a regular monthly report. The report said industrial production is strengthening as manufacturing companies have almost completed adjustments of their plant and equipment investment while non-manufacturing firms have continued to be positive in their capital spending. Strong domestic demand such as consumer spending and housing investment will more than offset declining exports the central bank report said. It also noted the continued rise in domestic wholesale prices and money supply. REUTER

BANK OF JAPAN SEES STEADY ECONOMIC RECOVERY

London's FTSE 100 share index falls below 1,800 - Stock Exchange

The Philippine coconut industry has greeted with relief the defeat in the U.S. Senate of a bill requiring some edible oils to be labelled as saturated fats. The bill which was defeated by the Senate Agriculture Committee on Monday could have cost about 60 mln dlrs a year in lost exports the Philippine Coconut Authority (PCA) said. Naturally we welcomed the defeat but there is a chance the bill will be resurrected and attached as a rider to another Senate bill a spokesman for the United Coconut Association of the Philippines (UCAP). PCA chairman Jose Romero noted the vote was close with eight senators voting for it 10 against and one abstaining. The UCAP spokesman said the American Soybean Association (ASA) had spent about 25 mln dlrs lobbying for the bill. He said the ASA also had obscured the health issue during the debate. Coconut oil is high in saturated fats but unlike saturated animal fats they do not enter the blood and lymph systems leaving fatty deposits connected to heart disease he said. U.S. Soybean and cottonseed producers had argued that saturated fats cause heart disease and that the labels would discourage consumption by health conscious consumers in favour of domestic unsaturated alternatives. Opponents of the bill said the proposal discriminated against imports and would damage the Philippines Malaysia and Indonesia. The Philippines earned 488 mln dlrs from coconut products in 1986 up from 477 mln in 1985 UCAP figures show. Exports to the United States for edible and non-edible use account for about half of that total PCAs Romero said. REUTER

PHILIPPINES APPLAUDS DEFEAT OF U.S. LABELLING BILL

Thai stock prices plunged on Tuesday as nervous investors unloaded shares on reports of steep declines on major world stock markets. Brokers said the Securities Exchange of Thailand Index fell a record 36.64 points or nearly eight pct to close at 422.37. Its impossible to halt the slide in this situation. The market just doesnt behave logically said Sirivat Voravetvuthikun executive vice president of Asian Securities Trading Co Ltd. But Sirivat said he did not believe the fall would mark the end of the SETs 16 month bull run which has accelerated during the last two months. He expected Thai stocks to fluctuate widely in the next few weeks. The slide on Tuesday followed a 13.85 point decline of the 97-stock index on Monday when it closed at 459.01. Brokers said they were flooded with sell orders when the market opened this morning and a SET announcement urging investors not to panic was ignored. The index reached a record 472.86 last Friday up 57.7 pct from end-June and 128.2 pct higher than last December. SET officials said 77 issues were traded on Tuesday of which all but two declined. Of the losers 68 plummeted the daily maximum 10 pct allowed by the exchange. Prices on the special foreign column also fell sharply. SET vice president Suthichai Chitvanich told reporters the 10 pct floor serves as a restraint making it unnecessary to suspend trading should the panic continue. The Thai exchange has lately been gaining on its own strength with most buying coming from local investors. Investors should not be unduly influenced by foreign market reports he added. Suthichai said sound local fundamentals including low interest rates and promising economic growth favoured investment in the stock market. The SET also announced it would release third quarter corporate earnings earlier than expected as part of efforts to shore up public confidence. REUTER

THAI STOCKS PLUNGE IN REACTION TO WORLDWIDE TREND

Milan bourse opening delayed one hour to 1200 GMT - official

Plunging Tokyo stock prices will prevent the Bank of Japan from raising its discount rate and could even force it to ease monetary policy if the collapse continues government and private economists said. A rise in interest rates now would only serve to spark further selling of shares that could ultimately have a major deflationary impact on the real economy they said. Although Bank of Japan officials have consistently maintained that they had no plans to raise the 2.5 pct discount rate many in the markets have thought otherwise. Fears of a rise in the discount rate were fanned by the central banks apparent decision last week to countenance higher rates on commercial bills dealers said. But todays stock market collapse -- prices fell nearly 15 pct -- means that the Bank of Japan would be hard pressed to raise the discount rate now despite its concerns about a renewed outbreak of inflation dealers and economists said. Japanese government bond prices rose sharply today as the markets concluded that the stock markets collapse precluded the central bank from carrying out the widely-rumoured discount rate increase. A senior government economist suggested that both the U.S. And Japan needed to ease monetary policy now to prevent a further drop in New York and Tokyo stock prices. They need to support the stock and security markets he said. But Bank of Japan officials said they saw no need to change policy for the moment although one admitted that the central bank may have to rethink its strategy if Tokyo stock prices continue to plunge during the rest of the week. Both government and Bank of Japan economists agreed the economy is better placed now to cope with the deflationary impact of plunging stock prices than it was a few months ago. With the economy recovering strongly the steep drop in stock prices is not likely to put a major dent in consumer and business confidence one government economist said. There will be some impact on the real economy but it wont be that big said another. Individuals are not heavily invested in stocks on their own although they do participate through trust funds and other investment vehicles. And while many manufacturing firms turned to financial market investments for profits during last years economic downturn the recent rebound has allowed them to refocus their attention on their core businesses he said. Paradoxically it is the pick-up in the economy that is partly to blame for the stock market collapse as companies have shifted funds away from financial investments to increase inventories and step up capital spending one government economist said. In deciding what response to make to the steep stock price drop the Bank of Japan must first determine whether prices will continue to fall further and then decide if they pose a greater economic danger than the threat of higher inflation one central bank official said. That will at least take a couple of days if not weeks he said. REUTER

TOKYO STOCK PLUNGE COULD FORCE EASIER MONEY POLICY

CORRECTED-Milan Bourse opening delayed an hour to 1000 GMT (NOT 1200 GMT)-official

President Corazon Aquino said economic growth took priority over debt repayments but she sought to dispel fears that the Philippines would not honour a July agreement rescheduling 13.2 billion dlrs of debt. In a speech to 13 major business groups Aquino said Our policy has been very clear fm the start -- growth must take priority for the plain and simple reason that if we have no money to pay we cant. And if we starve the nation of essential services there may be no one around to honour the debt. Aquino said her officials would try to get all 483 creditor banks to sign the debt rescheduling pact by the November 15 effective date. That should end speculation and remove at least one excuse for hoarding dollars Aquino said. Violent fluctuations in the pesos exchange rate and the end of a 17-month bull run in local stock markets have triggered dollar-hoarding. Aquino said the countrys foreign debt which rose to nearly 29 billion dlrs in April was growing even without fresh borrowing. Debt servicing took up 40 pct of the budget and 45 pct of export earnings Aquino said. Over the next six years the Philippines would be paying its creditors 20 billion dlrs while getting only four billion dlrs in new loans. Aquino acknowledged there were grave doubts about her governments ambitious privatisation program. There is always an excuse for government not to sell she said but she added: I want government to get out of business. She said non-performing assets would be sold in open bidding and Filipinos and foreigners would compete on equal terms. REUTER

AQUINO SAYS GROWTH HAS PRIORITY OVER DEBT PAYMENTS

Brokerage firm E.F. Hutton Group Inc <EFH> is not facing liquidity problems as a result of the fall on Wall Street nor is the firm on the brink of insolvency London joint managing director Harry Romney said. He was replying to Reuter questions about market rumours that Hutton could be in financial difficulties. Romney noted the New York-based firm employs 16000 to 17000 people worldwide. Questioned on whether Hutton might be considering cutbacks in line with some other big U.S. Securities houses he said Huttons operations were under contuous review but no announcements were imminent. REUTER

E.F. HUTTON DENIES RUMOURED SOLVENCY PROBLEMS

The Manila-based International Rice Research Institute (IRRI) said West German agricultural scientist Klaus Lampe will take over as its director-general in early 1988 succeeding M.S. Swaminathan. An IRRI statement said Lampe 56 is currently senior adviser to the German Agency for Technical Cooperation at Eschborn and was a former head of the agriculture section of the Federal Ministry for Economic Cooperation. It said Swaminathan who has headed IRRI since 1982 will concentrate on environmental and agricultural issues. REUTER

RICE RESEARCH INSTITUTE NAMES NEW HEAD

The opening of the Milan bourse and Italys nine other stock exchanges has been delayed one hour to 1000 GMT by stock market regulatory agency Consob. A Consob spokesman told Reuters the action was taken to give operators time to reflect on the agreement between Treasury Secretary James Baker and West German officials on the Louvre accord. He did not elaborate. The Milan Stock Index (MIB) base January 2 equals 1000 closed down 6.26 pct yesterday. REUTER

CONSOB DELAYS MILAN BOURSE OPENING ONE HOUR

A spokeswoman for the London Stock Exchange said there was no question of trading being suspended because of the unprecedented three-day drop in prices which has seen almost 23 pct wiped off share values. Trading on the Hong Kong market has been called off until Monday because of the steep slide on Wall Street amid panic selling on all the worlds stock exchanges. The Tokyo market was 14.9 pct off last night after a huge 508 point (22.5 pct) fall on Wall Street yesterday. The Stock Exchange said although the Stock Exchange Automated Quotation (SEAQ) system was working perfectly fast market conditions may pevail periodically. A fast market indicator is displayed at the bottom of the SEAQ screen when the huge volume of activity is delaying prices from entering the system making screen prices lag behind the prevailing market. Such conditions are reviewed every 30 minutes and at 1000 GMT were withdrawn and all on screen prices became firm. The Exchange said the mandatory quote period will still end at 1600 GMT but depending upon trading activity the market indices may again be calculated up to 1630 GMT instead of the usual 1600 GMT. At 0945 GMT the FTSE 100 share index was down 259.1 points at 1793.2 12.6 pct lower so far today. REUTER

STOCK EXCHAGE SAYS NO QUESTION OF HALTING TRADING

Sept daily ave primary aluminium output 34,900 tonnes, up 400 tonnes, IPAI.

Blue Arrow says Conservative Party Chairman Norman Tebbit to join board

The first convertible bond issued by a South Korean firm overseas -- by Samsung Electronics Co Ltd <SAMS.SE> -- became eligible for conversion but there was no demand for shares as the government still bans direct share ownership by foreigners a Samsung official said. There was no demand from holders so the lead managers made no approach to us to issue shares the official said. The five pct bond co-lead managed by S.G. Warburg and Goldman Sachs Co raised 20 mln dlrs when issued in 1985. The only other Korean convertible bonds were issued by Daewoo Heavy Industries Ltd <DAEW.SE> and <Yukong Ltd> both in 1986. REUTER

SAMSUNG BOND GOES CONVERTIBLE BUT NO SHARE DEMAND

The British bulk carrier Envoy which ran aground in the Orinoco river on October 16 was refloated without lightening on October 19 Lloyds Shipping Intelligence service said. The Envoy 75453 tonnes dw was carrying a cargo of 50000 tonnes of bauxite from Brazil to Cuba. REUTER

GROUNDED BRITISH BAUXITE VESSEL REFLOATED IN ORINOCO

Swiss Stock Index falls 3.7 pct or 38.4 points at opening to 989.5 - official

East and West on Monday decided to go ahead with an ambitious nuclear fusion project billed as possibly providing an inexhaustible source of energy the International Atomic Energy Agency (IAEA) said. Representatives of the U.S. The Soviet Union the European Community and Japan agreed to develop plans for a revolutionary thermonuclear reactor to produce energy not from splitting atoms as in todays nuclear plants but by joining them. Work is due to begin next year at the Institute for Plasma Physics at the Max Planck Foundation near Munich West Germany and is scheduled for completion by 1990 an IAEA statement said. Research into fusions scientific feasibility has been under way for many years but the project approved on Monday known as International Thremonuclear Experimental Reactor (ITER) will study if an actual plant could be built. The project represents an unprecedented display of East-West scientific cooperation but a decision will not be made until its completion on whether an actual reactor would be jointly constructed or by individual participant countries. Dieter Sigmar a leading U.S. Fusion researcher said last month that the development of a demonstration plant would cost several billion dlrs and need at least another 10 years. Fusion plants would produce little radioactive waste. While todays nuclear power plants need uranium mined in only a few countries and producing dangerous waste fusion plants would eventually run only on deuterium an element related to hydrogen and available from almost limitless supplies of sea water according to experts. REUTER

EAST, WEST APPROVE NUCLEAR FUSION ENERGY PROJECT

Former Finance Minister Noboru Takeshita chosen on Monday to be Japans next prime minister will face a tough test in managing Japans economy from the very start of his two-year term economists and businessmen said. Takeshita told a news conference on Tuesday that he would do his best to continue the domestic reforms and external policies of Prime Minister Yasuhiro Nakasone. However leading Japanese businessmen called on Takeshita to outdo Nakasone by showing stronger leadership. Takeshita should not merely follow the Nakasone policies but should cope with mounting economic issues with a new vision and policies Takashi Ishihara chairman of the Japan Committee for Economic Development said in a statement. Economists generally agreed that there will be no major changes in Japans economic policies under a new leader. However expectations are high among major industries for new initiatives by Takeshita for immediate and effective measures to solve economic problems such as trade friction with the U.S. Administrative and tax reforms and soaring land prices. Eishiro Saito chairman of the Federation of Economic Organisations (Keidanren) urged Takeshita to succeed in unifying the ruling Liberal Democratic Party as soon as possible to tackle difficult tasks. Regarding foreign economic polices Yoshitoki Chino chairman of the Japan Securities Dealers Association said Takeshita should come up with economic measures well before economic issues develop into problems. Behind those calls on Takeshita for prompt action are doubts about his capability in handling international issues due to his lack of experience in diplomacy economists said. Economists said foreign countries should be patient with Takeshita who is widely known as an ultra-cautious politician. Takeshita has repeatedly said There should be consensus before taking action. Takeshita has so far failed to unveil specific measures to reduce Japans huge trade surplus economists said. He has said Japan will continue to stimulate the economy and to open the market wider to foreign products. REUTER

TAKESHITA FACES TOUGH ECONOMIC MANAGEMENT JOB

U.K. SEPTEMBER M3 RISES 0.8 PCT, M0 UP 0.8 PCT - BANK OF ENGLAND.

U.K. SEPTEMBER STERLING BANK LENDING UP 4.4 BILLION STG - OFFICIAL.

The massive plunge in Tokyo stock prices on Tuesday could rob the Government of much-needed revenue to spur Japans economy and may hurt banks ability to lend abroad analysts polled by Reuters said. The Japanese Government is depending on the sale of NTT (Nippon Telegraph and Telephone Corp <NCCT.T>) shares for much of its public spending budget said Shigeo Suzuki a deputy general manager at the Industrial Bank of Japan. Japan had hoped to raise at least 5000 billion yen from the sale of 1.95 mln NTT shares on November 10. However the 14.9 pct plunge in the Tokyo share index today has made such plans look unrealistic analysts said. The government could defer the sale of NTT or they could offer fewer shares said Keikichi Honda general manager of economic research at the Bank of Tokyo Ltd. Honda said another possibility is that the underwriters handling the NTT sale would have to pay the Government the amount it expected to get and bear the brunt of any losses themselves. That is what underwriting means he added. A Finance Ministry official confirmed that the government planned to go ahead with its sale of NTT shares on November 10. Another possible effect of Tokyos stock tumble would be to seriously undermine the asset base of Japanese banks. The banks lend money all over the world and regard the market value of stock holdings as assets analysts said. Japanese banks make loans using perhaps as much as 60 to 70 pct of the market value of their unrealised stock holdings as assets said Industrial Banks Suzuki. There is also concern that Japanese companies which have invested heavily in Tokyos stocks as their real business declined over the last two years have sustained heavy losses. Many companies mainly export-oriented companies were planning on selling their shares for a profit to reinvest in real businesses as the economy begins to pick up said one analyst at a foreign brokerage. That prospect now looks dim. But analysts said it is unlikely companies or financial institutions will be bankrupted by losses in stock trading. I dont think any company is so badly exposed in stock investments said a senior analyst at Nomura Research Institute. In terms of financial institutions luckily the rebounding bond market and currency markets are still profitable he added. The Nomura analyst said a 10 pct decline in Tokyo stocks would be translated into a fall of about 0.2 pct in consumer spending. Some 20 pct of Tokyo stocks are owned by individuals. Market capitalisation on the Tokyo Stock Exchange fell to 329588 billion yen on Tuesday from 386041 billion at Mondays close. NTT shares ended 260000 yen lower at 2.65 mln each well down from their peak of 3.18 mln in April. REUTER

JAPANESE STOCK PLUNGE RAISES FUNDING PROBLEMS

Stoltenberg says global share price crash overdone and unfounded

Amsterdam all-share index down 13.3 pct at 1015 GMT - bourse

U.K. Shares fall further on September bank lending data - dealers

Stoltenberg says meeting with Baker underscored monetary cooperation

LONDON - U.S., UK GOVT BONDS RISE SHARPLY ON STOLTENBERG COMMENTS -DEALERS

West German Finance Minister Gerhard Stoltenberg said the global share price crash was overdone and unfounded. Stoltenberg was speaking at a press conference. REUTER

STOLTENBERG SAYS GLOBAL SHARE CRASH OVERDONE

West German Finance minister Gerhard Stoltenberg said the meeting on Monday with U.S. Treasury Secretary James Baker underscored the determination of the U.S. And West Germany to continue close cooperation to stabilise foreign exchange rates. Stoltenberg told a news conference The statement released yesterday (Monday) after the private meeting .... Emphasized our determination to continue the close economic cooperation regarding foreign exchange stabilization and monetary policy. Stoltenberg said that he Baker and Bundesbank President Karl Otto Poehl had a very constructive discussion and had all reached a positive evaluation of the Louvre accord during their meeting on Monday. Stoltenberg said initial contacts with several European counterparts showed that they shared this view. We expect the declaration of our unified position to have a positive effect he said. He noted that the dollar firmed again in late U.S. Trading after the outcome of the Baker meeting was published. REUTER

STOLTENBERG SAYS BAKER MEETING UNDERSCORES ACCORD

LONDON - Goldman Sachs official denies rumours of solvency problems

Frankfurt bourse opens up to eight pct down, partially recovers - dealers

London' FTSE 100 share index down 300.6 points to 1,751.7 at 1052 GMT

Conservative Party chairman Norman Tebbit who plans to give up the post an a date yet to be set is joining Blue Arrow Plc <BAWL.L> as a non-executive director Blue Arrow said. Blue Arrow which has just completed the purchase of U.S. Employment agency <Manpower Inc> said Tebbit is joining the board along with Michael Davies as non-executive directors from November 1. Davies is a director of several publicly-listed companies including British Airways Plc <BAB.L> and TI Group Plc <TIGL.L>. REUTER

U.K. TORY PARTY CHAIRMAN TEBBIT TO JOIN BLUE ARROW

A 100 mln dlr equity warrant bond for Intec Inc <INTT.T> of Japan has been cancelled because of turbulent market activity following todays 14.9 pct plunge in Tokyo stock prices Nikko Securities Co (Europe) Ltd said as lead manager. The five year issue on launched October 13 had terms fixed yesterday when it last traded at a bid only price of less 2-1/4 pct placing it on total fees Nikko officials said. Indeed dealers said stock price volatility shut down trading altogether in Japanese equity related debt issues today and cast doubt on the new issue calendar for the next few weeks during which as many as eight new deals were to be launched. REUTER

NIKKO PULLS INTEC EQUITY WARRANT BOND

<Goldman Sachs and Co> is not facing severe financial problems and has not filed for protection under U.S. Bankruptcy laws Robert Conway managing director of Goldman Sachs International Corp said. He was responding to a Reuter enquiry about rumours in London financial markets that the firm was in financial trouble. There is absolutely positively no truth to those rumours he said noting that in the current financial environment rumours like this are bound to surface. Conway said that Goldman Sachs has had an excellent year and that it has a strong balance sheet and good liquidity. You cant be in the equity market as we are and not experience some problems after a day like yesterday (when the Dow Jones Industrial Average dropped 508 points). But we are not facing any severe financial problems he added. REUTER

GOLDMAN SACHS DENIES RUMOURS OF SOLVENCY PROBLEM

Stoltenberg says Louvre accord vital to West Germany

A Council meeting of the International Natural Rubber Organization (INRO) has been adjourned until Thursday as tomorrow is a Malaysian national holiday officials of the organisation said. The main issue at the talks which opened here yesterday has been the INRO buffer stock and the manner in which the buffer stock manager should continue to sell rubber after the current international pact for the commodity expires on October 22 they said. The deadline for the start of the new pact is January 1989. Buffer stock manager Aldo Hofmeister has been mandated to continue selling rubber during the interim period. Other issues discussed include ratification of the new accord the officials said. Only Malaysia of the pacts 32 producing and consuming member countries had ratified the new agreement by the beginning of this month. The meeting is due to end on Thursday. REUTER

INRO COUNCIL MEETING ADJOURNED UNTIL THURSDAY

West German Finance Minister Gerhard Stoltenberg said the Louvre accord was vital to West Germany. Stoltenberg told a news conference Given West Germanys unusually high dependence on world trade and exports it is vital for West Germany ... To continue its constructive contribution to trusting (international) cooperation on the basis of the Louvre accord. Some monetary analysts have speculated that inflation-conscious Bundesbank vice president Helmut Schlesinger may have been leading the central bank to a course of tighter monetary policy. Stoltenberg is due to attend a routine Bundesbank meeting on Thursday in West Berlin. He declined to forecast what if any policy decisions the Bundesbank might take. REUTER

LOUVRE ACCORD VITAL TO W.GERMANY - STOLTENBERG

Stoltenberg does not rule out central bank intervention to stabilize currencies

Further marked dollar fall would burden U.S. Trade deficit -Stoltenberg

Stoltenberg declines comment on possible changed targets for currencies

LONDON - GOLDMAN SACHS OFFICIAL DENIES RUMOURS OF SOLVENCY PROBLEMS

West German new car registrations rose four pct last month compared with September 1986 and were 28 pct higher than Augusts figure the Federal Motor Office said. September new car registrations totalled 234518 up from 225581 in the same month a year ago and from 183224 in August. In the first nine months of this year new car registrations rose 2.9 pct to 2.18 mln from 2.12 mln during January/September 1986. Total vehicle registrations in the period rose to 2.42 mln from 2.35 mln in January/September last year. REUTER

GERMAN NEW CAR REGISTRATIONS RISE IN SEPTEMBER

German Boersen-Zeitung share index only 1.2 pct down at bourse start

West German Finance Minister Gerhard Stoltenberg declined to comment on whether unpublished target zones for currencies agreed at last Februarys Louvre accord had been changed as a result of the meeting on Monday with U.S. Treasury Secretary James Baker. He was asked about target zones at a news conference in Bonn. Stoltenberg referred to a statement released after Mondays meeting which said continuing cooperation was aimed at promoting currency stability at current levels. This was the same formula used in the text of the Louvre accord he noted. REUTER

STOLTENBERG DECLINES COMMENT ON CURRENCY ZONES

The outlook for Mexicos economy and stockmarket remains optimistic despite the markets worst-ever fall of 52671.56 points on Monday the president of the Mexican stock exchange Manuel Somoza said. He said the 16.51 pct drop in the exchanges index reflected a totally emotional reaction to Mondays fall on the New York stock exchange and was not a reflection of a new crisis for the Mexican economy or the stockmarket. He was speaking at a news conference here on Monday. We think that after the psycological effect the market will tend to stabilize itself Somoza said. Somoza said he based his optimism on the relatively bright outlook of the Mexican economy due to increased income from oil and non-petroleum exports record high foreign reserves and government efforts to promote a modernization of the industrial sector. The U.S. Economy is not the same as the Mexican he said. He did not say when he thought the market would stabilize. Reuter

MEXICAN STOCKMARKET HEAD SEES NO CRISIS AFTER FALL

West German Finance Minister Gerhard Stoltenberg said he could not rule out the possibility of central bank intervention to support currencies. Asked at a news conference whether central banks were prepared to intervene to defend currencies he said We cannot rule out the use of any instrument which leads to foreign currency stability. However he added that in the end it was market forces which prevailed. REUTER

STOLTENBERG DOES NOT RULE OUT INTERVENTION

U.S. Attacks on two Iranian oil platforms in the Gulf -- both of which were still blazing -- caused damage estimated at 500 mln dlrs Tehran Radio quoted Iranian Oil Minister Gholamreza Aqazadeh as saying. The rigs one of which was heavily shelled by four American destroyers on Monday were still burning almost 24 hours after the attack and could cause widespread pollution in the Gulf the minister told a news conference in Tehran. He said the Reshadat rigs 120 miles (200 km) east of Bahrain in international waters were in the final stages of reconstruction after an attack by Iraqi jets last year. REUTER

IRAN SAYS U.S. RAID CAUSED 500 MLN DLRS DAMAGE

Australias Minister for Trade Negotiations is optimistic that progress is possible on reducing the large subsidies which the European Community and United States grant their farmers. Michael Duffy said a European Commission scheme to reform the EC Common Agricultural Policy and U.S. Plans to eliminate farm subsidies over 10 years are steps in the right direction. I am hopefully optimistic... There is goodwill in agricultural reform being shown by the USA the EC and the Cairns Group he told reporters. Duffy said the Cairns Group of 14 agricultural and commodity producers is on the verge of agreeing a common position for forthcoming General Agreement on Tariffs and Trade (GATT) talks on farm subsidies. The group which includes Australia and Malaysia advocates free farm trade and says U.S. European and Japanese subsidies are stopping it competing in its traditional markets. Duffy is on a two-day visit to Malaysia after talks in North and South America the EC and Thailand and leaves for Indonesia on Wednesday. REUTER

AUSTRALIAN MINISTER SEES HOPE FOR FARM REFORM

Iranian Premier Mir-Hossein Mousavi reiterated his country would retaliate for U.S. Navy attacks on Gulf oil platforms. The U.S. Attack on Irans oil platforms jeopardises our national sovereignty ... And we will retaliate properly for this perfidious American aggression Mousavi told a news conference in Damascus. On Monday U.S. Navy warships blasted the Rostam platform and Navy personnel stormed a second platform a few miles away. Washington said the operation was aimed at destroying positions used by Iran to track and assault neutral Gulf shipping. REUTER

IRANIAN PREMIER REITERATES WARNING OF RETALIATION

The Indonesian state-owned oil company Pertamina has found new offshore oil and gas resources in East Aceh on the western tip of northern Sumatra a company spokesman said. The spokesman said the discovery was made at the GOS IA-1 offshore exploratory well about 38 kms east of Langsa in Aceh. Oil and gas are found in sand layers at the depth of 2300 metres within the Baong formation he said. He said preliminary tests showed that the well could flow oil at the rate of 1320 barrels a day with 50 degrees API at 20 degrees centigrade through a 5/8 inch choke. The well also flows natural gas at the rate of 12 mln standard cubic feet a day he added. GOS IA-1 well located at a water depth of 41 metres was drilled under a production sharing contract between Pertamina and Japex North Sumatra Ltd each having 50 pct shares. Petroleum operations are to be carried out by Pertamina as operator through a joint operating body established by the two companies the Pertamina spokesman stated. The contract covers the Gebang block contract area. The two companies have previously completed the drilling of GOS IIA-1 exploratory well around 14 kms south of GOS IA-1. REUTER

INDONESIA FINDS NEW OFFSHORE OIL AND GAS RESOURCES

European Community (EC) ministers backed a commission plan for the reform of world farm trade which is due to be presented to GATT later this month EC diplomats said. The plan has been drawn up by the EC executive Commission in response to U.S. Calls in GATT (General Agreement on Tariffs and Trade) for an end to all farm subsidies within the next 10 years. EC foreign ministers agreed that despite reservations by some member states the plan should be presented to the next meeting of the GATT farm negotiating group in Geneva on October 26 diplomats said. Reuter

MINISTERS BACK EC FARM TRADE REFORM PLAN

Indonesia told the oil industry on Tuesday it will extend contracts on producing blocks and improve the investment climate but wants to see increased expenditure on exploration in return. President Suharto in an opening speech to the Indonesian Petroleum Association said Indonesia was ready to extend contracts held by foreign oil companies on producing areas. In order to boost investment in the petroleum industry the government of Indonesia has basically approved of extending production sharing contracts under the present laws Suharto said. Apart from that the government will keep improving the investment climate in order to accelerate the development of the petroleum industry he said. Indonesian Energy Minister Subroto told the Association he was aware that the oil industry needed to be assured that contracts on blocks expiring within the next 10 years would be renewed before they would invest in further exploration. As we all have heard this morning the President is fully aware of this situation Subroto said. The government has already made the political decision to entertain this time problem by inviting the existing producers to continue their activities in Indonesia albeit on a selective basis. Indonesia one of the 13 members of OPEC must find new oil reserves if it is to remain an exporter in the next decade oil industry sources say. Subroto said the government was also working to ease other problems including granting easier terms for remote areas or deep water conditions. But Subroto said relations with oil companies were two-way and that they should step up expenditure on oil exploration now that the oil price had recovered. President Suharto said he wanted to see greater transfer of technology to Indonesian companies and more help from the oil industry for the regions in which companies operated. Abdul Rachman Ramly the President of state oil company Pertamina has said that budgeted exploration and production expenditure for all oil companies in Indonesia was forecast to fall to 3.1 billion dlrs in calendar 1987 from 3.4 billion in 1986. Pertamina has 69 production-sharing or joint operation contracts with foreign oil companies. Subroto said speeding up necessary approvals for field operations was a government priority. There had been misunderstandings between the government and the oil industry in certain areas such as when a field is designated commercial and a thorough evaluation was being made. He said the government wanted to finalise contract extensions as soon as practical and urged the industry in the meantime to maintain its exploration drive. Subroto said Indonesia needed the companies to maintain exploration efforts even if their contract was due to expire within 10 years. This need in itself is some sort of guarantee that we will soon have to come up with an extension agreement. Eleven major contract areas are due to come up for renewal between 1991 and 2001 industry sources said. Extension of the contracts on the blocks has involved detailed negotiations but so far no extension has been granted. Subroto told reporters afterwards that contract extensions would be selective based on how much capital would be invested. REUTER

INDONESIA SAYS IT WILL EXTEND OIL CONTRACTS

COMEX RAISING MARGINS FOR GOLD AND COPPER FUTURES EFFECTIVE AT TODAY'S OPENING - OFFICIAL

LONDON-U.S. TREASURY 30-YEAR BOND AT 95-18/32, UP NEARLY 5.0 POINTS -DEALERS

LONDON-U.S. TREASURY 30-YEAR BOND AT 95-18/32, UP NEARLY 5.0 POINTS -DEALERS

Stockbrokers and legislators welcomed the suspension of trading on the local market after Mondays record fall but some said the suspension was too long and could harm the territorys reputation as a financial centre. Announcing the suspension until next Monday stock exchange chairman Ronald Li said earlier today This will protect investors and allow brokers to settle a backlog of orders. But legislator David Li who is also managing director of the Bank of East Asia while weloming the move said a one-day halt would have been enough. I believe the exchange is over-reacting. A long suspension will damage Hong Kongs reputation as a financial centre and hurt foreign investors confidence David Li said. Legislator Hui Yin-fat echoed this view. What will they do if the market resumes its fall next week ? he asked. Legislator Lee Yu-tai said small investors would be hard-hit by the decision. He said some were paying interest on loans to purchase stock and a long suspension increased their losses. Financial Secretary Piers Jacobs said the decision was explainable but he added It does seem rather a long time. However George Tan assistant director of Greenwell Montagu (Far East) Ltd said the suspension was wise. Hong Kong is a volatile market and this will let things settle down he said. Other brokers agreed. At least this gives us a bit of breathing space said one. John MacKenzie chairman of the Hong Kong Association of Banks said I feel that it is not at all a bad thing that investors and investment mnanagers be given a breathing space. Hong Kongs main share indicator the Hang Seng index fell 420.81 points to 3362.39 on Monday - its biggest ever one-day fall in real terms. REUTER

STOCK CLOSURE MAY HARM H.K. REPUTATION - OFFICIALS

Frankfurt bourse extends trading by half-hour to 1300 GMT - official

Iran is preparing lawsuits to file for compensation from the U.S. Over the American raid on its Gulf oil platforms Tehran radio quoted Iranian Oil Minister Gholamreza Aqazadeh as saying. The lawsuits would be filed with competent international bodies once the exact damage was calculated he was quoted telling a news conference in Tehran. He earlier estimated the damage from the U.S. Raid at about 500 mln dlrs. The rigs one of which was heavily shelled by four American destroyers on Monday were still burning almost 24 hours after the attack he said. Aqazadeh said the half-billion-dollar damage estimate was preliminary. Washington has said the attack was in response to a missile strike against the American-flag tanker the Sea Isle City in Kuwaiti waters on Friday. He denied that there was any military hardware on the rigs except a 23 mm machinegun for air defence. Reacting to Weinbergers remark that Washington considered the case closed Aqazadeh said: Iran will also consider the case closed after its retaliatory measure. Iranian officials have said their response would not be limited to the Gulf and U.S. Interests around the world might come under attack. Aqazadeh said the U.S. Military presence in the Gulf aggravated the regional crisis and made access to the regions oil more difficult but he did not see the U.S. Attack significantly affecting oil prices. IRNA said he gave no explicit reply when asked if the attack would prompt Iran to block the Hormuz Strait at the entrance to the Gulf. If Iran cannot use the Hormuz Strait no other country can either and this would be to everyones harm the radio quoted him as saying. REUTER

IRAN PLANS TO FILE LAWSUITS OVER U.S. RAID

The Frankfurt bourse extended official trading hours by half an hour to 1300 GMT due to heavy turnover a spokeswoman for the Frankfurt bourse said. It was not immediately clear whether the other seven German bourses were also affected. Yesterday trading hours were also extended by half an hour. The Boersen-Zeitung 30-share index started at 351.02 today after closing yesterday at 355.34. It rose to 352.15 at midsession but slipped back to 351.24 at 1200 GMT. REUTER

FRANKFURT BOURSE EXTENDS TRADING HOURS

Iranian Premier Mir-Hossein Mousavi reiterated his country would retaliate for U.S. Navy attacks on Gulf oil platforms. The U.S. Attack on Irans oil platforms jeopardises our national sovereignty ... And we will retaliate properly for this perfidious American aggression Mousavi told a news conference in Damascus. On Monday U.S. Navy warships blasted the Rostam platform and Navy personnel stormed a second platform a few miles away. Washington said the operation was aimed at destroying positions used by Iran to track and assault neutral Gulf shipping. REUTER

IRANIAN PREMIER REITERATES WARNING OF RETALIATION

DOLLAR EUROBOND TRADING HALTS AS TREASURY MARKET SPIRALS UPWARDS-DEALERS

Shr 28 cts vs 14 cts Net 3110000 vs 1286000 Revs 112.7 mln vs 93.8 mln Avg shrs 11.2 mln vs 9148000 Nine mths Shr 58 cts vs 15 cts Net 6377000 vs 1332000 Revs 307.8 mln vs 233.8 mln Avg shrs 10.9 mln vs 9148000 NOTE: Company 81.4 pct owned by Primerica Corp <PA>. Reuter

MUSICLAND GROUP INC <TMG> 3RD QTR NET

U.S. SEPT HOUSING STARTS ROSE 4.4 PCT TO 1.669 MLN, PERMITS FELL 0.6 PCT TO 1.493 MLN

AMERICAN MEDICAL INTERNATIONAL TO REPURCHASE UP TO 150 MLN DLRS OF COMMON STOCK

LIFFE T-BOND FUTURES OVER 10 POINTS UP IN UNPRECEDENTED SURGE

Direct Action Marketing Inc said it has called a shareholder meeting for a vote on the election of directors for January 27. Last week Ocilla Industries Inc &lt;OCIL.O> a Direct Action shareholder had said it would seek to elect its own board slate at the next shareholder meeting. Reuter

DIRECT ACTION <DMK> CALLS SHAREHOLDER MEETING

GREAT WESTERN FINANCIAL CORP 3RD QTR NET SHR 45 CTS VS 64 CTS

German public bonds surge about 300 basis points in hectic bourse -dealers

Shr 22 cts vs 20 cts Net 2963000 vs 2696000 Sales 26.5 mln vs 19.4 mln Reuter

APPLIED BIOSYSTEMS INC <ABIO.O> 1ST QTR SEPT 30

Hilton Hotels Corp said it plans to repurchase on the open market or privately up to 3900000 of its 25.0 mln common shares. It said funds for the repurchases would come from working capital and external financing. Hilton set no time limit for the plan. Reuter

HILTON HOTELS <HLT> TO REPURCHASE COMMON

Plum Holding Inc said it has started its previously-announced offer to purchase 664400 common shares of Holly Sugar Corp at 95 dlrs each. In a newspaper advertisement the firm said the offer proration period and withdrawal rights expire November 17 unless extended. The offer which has been approved by the Holly board and is to be followed by a merger in which remaining shares are to be exchanged for cumulative redeemable exchangeable preferred stock is conditioned on receipt of at least 664400 shares which would give Plum a two thirds interest and the receipt of financing. Reuter

<PLUM HOLDING INC> STARTS HOILLY SUGAR <HLY> BID

Phoenix American Inc said it has terminated its tender offer for up to 600000 of its common shares at five dlrs each due to the dramatic decline in stock prices. Phoenix said it is concerned that the current volatility in the financial markets could hurt its financial condition and prospects. Reuter

PHOENIX AMERICAN <PHXA.O> ENDS SELF-TENDER

U.S. housing starts rose 4.4 pct in September to a seasonally adjusted annual rate of 1669000 units the Commerce Department said. In August housing starts were unchanged from July levels at 1598000 units instead of being down 1.5 pct as previously reported. The increase in September housing starts was the largest since a 10.8 pct gain in starts in December 1986 Commerce Department officials said. The rate at which permits were issued for future construction fell 0.6 pct in September to a seasonally adjusted 1493000 units from 1502000 units in August. Permits had risen 1.0 pct in August from July levels of 1487000 units. Before seasonal adjustment permits rose to 135500 in September from 128000 in August. Housing starts before adjustment rose to 150200 in September from 144600 in August. The seasonally adjusted rise in starts included a 5.1 pct increase in September single-family unit starts to 1168000 from 1111000 in August. Single-family starts had fallen 2.8 pct in August from July levels. Multi-family starts rose 2.9 pct in September to a seasonally adjusted 501000 units after a 7.0 pct increase in August the department said. Permits for single-family units fell 3.2 pct last month to a seasonally adjusted 990000 units after a 3.0 pct August rise. Multi-family permits were up 5.0 pct in September to 503000 units after falling 3.0 pct in August. Housing starts in September were down 1.2 pct from a seasonally adjusted 1689000 units in September 1986. Permits were 11.5 pct below the September 1986 level of 1687000 units. Reuter

U.S. HOUSING STARTS ROSE 4.4 PCT IN SEPTEMBER

Shr 51 cts vs 42 cts Net 20.3 mln vs 16.7 mln Sales 216.9 mln vs 184.5 mln Nine mths Shr 1.47 dlrs vs 1.21 dlrs Net 58.2 mln vs 47.6 mln Sales 611.2 mln vs 547.0 mln Reuter

NALCO CHEMICAL CORP <NLC> 3RD QTR NET

Shr 87 cts vs 62 cts Net 2604000 vs 1856000 Sales 72.7 mln vs 64.6 mln Nine mths Shr 2.71 dlrs vs 1.97 dlrs Net 8121000 vs 5834000 Sales 215.7 mln vs 193.0 mln Reuter

STEPAN CO <SCL> 3RD QTR NET

Shr profit four cts vs loss 56 cts Net profit 2043000 vs loss 25.7 mln Revs 111.3 mln vs 64.7 mln Avg shrs 48.3 mln vs 45.8 mln Nine mths Shr loss 18 cts vs loss 63 cts Net loss 8695000 vs loss 28.4 mln REvs 308.4 mln vs 228.4 mln Avg shrs 48.0 mln vs 44.8 mln NOTE: 1986 net includes tax credits of 1646000 dlrs in quarter and 3401000 dlrs in nine mths. 1987 nine mths results restated for pooled acquisition of Bidtek Inc. Reuter

CONVERGENT INC <CVGT.O> 3RD QTR NET

DOW CHEMICAL CO 3RD QTR SHR 1.72 DLRS VS 87 CTS

GOLDMAN SACHS READY TO LEND ONE BILLION DLRS TO MUTUAL FUNDS SO THEY CAN REDEEM STOCKS

TRIBUNE CO 3RD QTR SHR 42 CTS VS 1.53 DLRS