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<br />November 26, 1
<br />
<br />~.
<br />-~ ,,,
<br />,~:
<br />HOME SALES: Existing homes sold at an annu-
<br />~" al rate o1~3.76 million units in October, the second-
<br />highest level in seven years, a real estate trade
<br />n~ group reported yesterday. The National Association
<br />of Realtors said [he October sale.; rate was only
<br />0.3% lower than the 3.77 million rate o[ September.
<br />which had been the highest sales pace since October
<br />1979. The median price of an exi:+ting home rose
<br />5300 to stand at $79.700.
<br />i
<br />.~ BONDS FALL: Bond prices Fell >harply inquiet,
<br />pre-holiday trading yesterday. The Treasury's key
<br />30-year bond fell about ~/a point, or 57.50 per $1,000
<br />face amount, while its yield rose to 7.45 ~ from
<br />'7.39% late Monday.
<br />DOLLAR FALLS: The dollar foil sharply yes-
<br />. terday against most major currencies in what ana-
<br />lys[ssaid-was reaction to a government report that
<br />durable goods orders fell in October and news that
<br />President Reagan's national security adviser had
<br />resigned. Cold prices rose with Republic National
<br />Bank in New York quoting bullion al, $385.25 a troy
<br />ounce, up $3 from Alonday's late bid.
<br />SEC UNDERSTAFFEQ: The securities and
<br />Exchange Commission is badly understaffed, con-
<br />_• trtbpting to the insider,-Grading scandal that has
<br />' rorbed Wall Strec[, Richard . Phillips, a top secu-
<br />rities lawyer said yes{erd~}r. ~hillips said that over
<br />the past decade, trading hps mcreased 700%, while
<br />the SEC staff has been reduced by 5'7d.
<br />~~ LOAN AGREEMENT: 'g'ive partnerships, in-
<br />chlding one in Colorado Springs, of embattled real
<br />estate svndicator Crate H911 were saved from bank-
<br />pounced yesterday with Wostwood Savings and Loan
<br />Association in Los Angeles. Tate agreement restruc-
<br />tures loans on f6 Hall properties in Texas, Colorado,
<br />~, Arizona and Florida.
<br />TAKEQVER OFFER: Chesebtough-Pond's Inc.
<br />announced yeslerda}' [hat it had received an unsolic-
<br />fled offer from American B ands Inc. to buy the
<br />Westport. Conn.-based copsVnl'er products manufac-
<br /><~, turgr for $66 a share, ar a total of about 52.82
<br />billion. In atwo-sentence 5talemenL Chesebrough-
<br />Pond's said it had retained Legal advisers to evaluate
<br />the otter and other alternatives. '
<br />OIL DEAL: Presidio Oil Co. of Englewood has
<br />signed a merger agreement to,acquire Dallas-based
<br />' Petroleum Development Corp.l a private oil and gas
<br />production company with operations in Texas, Okla-
<br />homa. New Mexico and Louisiana. T'he deal is a
<br />' (stock-for-stock exchange; in which Presidio will is-
<br />sue 2.64 million shares of a new comfnon stock and
<br />assume PDC's $12.4 million debt. PIN as of April
<br />had proven reserves of 1.9 million barrels of oi] and
<br />l9 billion cubic feel of gas.
<br />Coo,pilcd by Burl Ilubbard from Ar, Url and staff
<br />--,-- -
<br />,'~1'~t1R~F'C ~UMA~.~RIGiS-.'
<br />~~
<br /> DOW 30 N'YSE
<br /> +6.05
<br />closed al 1,917.17 ~ +0.36
<br />ciosetl al L14.05
<br /> S&P 500 AMEX
<br /> +0.72 ~ +0.31
<br /> dosetl a1 7~t.f] cored at 763.7
<br />Tables begin on page ]5 '
<br />BLSINESSLINE~, an exclusive service of the
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<br />ute financial news 24 hours a day. For the latest
<br />financial news, call 623-2400. `
<br />i~ss'
<br />Businescal~~l on Romer
<br />fore ~.~'mil-
<br />By THOMAS SCHILLIN - . -
<br />Rocky MOUntaln News Staff Writer ~ :
<br />Coloradd business leaders yesterday calted'_ppen Gov.-
<br />elect Roy Romer and the General Assembly tttdEClate the
<br />state's declining eeOtlOD)y an "emergency" and to,1tl2cate as
<br />much as 510 million tt,~tomote business growth...
<br />In the first of eight'. _ it Conferences" on thepCVnomy
<br />Romer has scheduled b his Jan. 13 inaugurafi0n; 50 of
<br />the state's largest empl and most influential bgsinoss
<br />leaders praised the aggr a attitude Romer has displayed.
<br />' But they also warns 'not to slow down.
<br />"We feel we have bee down by our (state) leadeish'
<br />in the past, and we're 1 'real jam," said Larry Mize
<br />chairman of hLD.C. Holdin c., the state's largest hoq~e
<br />builder. `.`What we have is a ergency, and it ShfiUld be
<br />designated ag an emergency" ,
<br />Mizel antj Jehn Fuller, president of a Denver 2ea1 estate
<br />firm bearjng.his name, challenged Romer and 6A~•legisla-
<br />ture to set aside million"s of dollars to promote eolorado
<br />nationally as,a good place to locate business.
<br />O~ober
<br />O.
<br />.. npn~+v}savw tnrt - +,unsumer
<br />price~l`9se,just belew 0.2% last month
<br />as mL9Peases for nevi .ears and auto
<br />~financin~ oVortook a fresh dip in ener-
<br />~ ~~allo~tion.
<br />,
<br />Fuller asked the legislature to desig~Etween S5 mil-
<br />Iionand~~10 million, while Mizel suQggs _ a commitmento[
<br />510 mil{ion a year [or the next five:lps:
<br />"M~ny o[ us have watched our eeeHemy go downhill for
<br />the p, ~ several years;' Fuller said,?.~fe need to promote
<br />this s. We need to get of[ dead er~er."
<br />_ w,.
<br />'7f " nd a program ... we could't~ake a statement to
<br />the c q that we mean businesS:~ Colorado," agreed
<br />Myr Eky" Miller, a partner In` nVer development.
<br />conso at Includes oil million arvin Davis. "Otb-
<br />erwise, we ying to the rest a world we have a
<br />definite maybe in Colorado." ,
<br />ItolrjeR;has included an aggressit
<br />his plaos.to restructure the slate'
<br />He wei~ &reafe an office of econ
<br />gover office and enlist large.
<br />leers tram the business cot
<br />Ho~: 'Aker Carl B. "Bev" B1
<br />add 1ti port to underwriting a
<br />"'keting campaign in
<br />rtemic development.
<br />development in the
<br />f'mancial and volutt
<br />Ir}~uty.
<br />IsogIlugo) refused to
<br />as g program.
<br />~.
<br />S~sSUMMIT, next pays
<br />i >: ' R..,
<br />
<br />gy prices, the-gover Ertl reported' u ~~;
<br />t* .
<br />
<br />.:w
<br />" '
<br />`';
<br />-
<br />esterday..
<br />y Meanwhile
<br />in the`
<br />=bo
<br />lde FJp-
<br />~~ ~'~`< ~
<br />,
<br />r
<br />r
<br />u
<br />~ ~~
<br />area groce[y prices ~ctober ~,
<br />dropped 0.99'° from Sep r, but
<br />0
<br />~ - -'{~onSUmei~ pric
<br />'~~ ~ ' e index
<br />were 2.6.4
<br />igUer than a year ago,
<br />b ~
<br />,
<br />
<br />according to the U.S. Department of _
<br />r.r DB rk a
<br />r, ~ ~ ~=3 a a
<br />t
<br />Labor. ~ 'A '
<br />P1er~rl ~$t~yp~;$ ,,,~ ,93
<br />!(pJ e
<br />The de artntent's Bureau of Labor
<br />p ~~
<br />-a6 i ~
<br />~
<br />~l~
<br />~
<br />~
<br />~
<br />a
<br />$ ` { 7 '
<br />~~~ 0 2%
<br />Stallsttcs
<br />sald that between October a d
<br />"
<br />.'
<br />'
<br />64
<br /><~,~
<br />°
<br />° ~cl
<br />°
<br />1985 and >ast month, prices for meats,
<br />lt
<br />d
<br />7
<br />t
<br />h
<br />6%
<br />d :
<br />~S'3' , _ ~
<br />~ ~ ~y
<br />~~
<br />' °~ x .
<br />.pou
<br />ry,
<br />eggs rose
<br />.
<br />an
<br />ts
<br />~ an
<br />cereal and bakery product prices rose -
<br />~ - ~ k ~ ~~~'° ~.
<br />.
<br />~;~;
<br />,
<br />~ ~- ~ ~~ ~~~~~~ ~ ~ ~ ~ ~` ~. `•x '
<br /> .:
<br />,
<br />Dairy products fell in price 0.3%, ,,~~~,'x• ~
<br />~
<br />© ;°~
<br />and fruit and vegetable prices dropped ~~; ;A:~.
<br />~
<br />• ;
<br />.
<br />~
<br />' ~~~
<br />°~
<br />,~ ::
<br />4.4ib duringlhe one-Year period, the -0.1 '3`ti'2t:~
<br />' x:
<br />'+~
<br />.
<br />.
<br />~
<br />bureau said. .0.2 ~
<br />"~
<br />: ; F ; :
<br />~
<br />'~ °
<br />:
<br />~
<br />Between September and October of ~' `• ,
<br />~
<br />this year, the 0.9% decline in retail
<br />
<br />°
<br />"`",~
<br />~•~ ` `, - f,:.:r x`
<br />~`'
<br />food prices was fueled by a 4.1
<br />ir drop •0
<br />4
<br />In fruit and Vegetable prices. .
<br />NOV DEC JAN FEB MAO APR MAV JUN JUL At1G SEP OCT .0 ny .
<br />Nationally, the increase in Lhc Labor ~ 1985 1986 g
<br />MONTH ~ '";>x
<br />~S
<br />y
<br />Department's Consumer Price Index A'.°.~~._ .a ,... ,, -~,.,
<br />followed a 0.340 rise in September.
<br />Prices have been edging up since April,
<br />•' entc eAKERrROCky Moumaln News
<br />the last month in which a decline was Another repo[l said Americans' av- ,problems." said Sandra Shaber, a re-
<br />recorded. crags weekly darnings, after adjusting nior economist for Chase Economet-
<br />Slill, over the last 12 months, prices for inflation, edged up 0.1% in October rtes.
<br />overall have climbed only 1.5% - a
<br />l
<br />l
<br />0
<br />B to stand 0,4% higher than thtry were a She said the dltrable- Dods re orl
<br />g p
<br />
<br />eve
<br />not seen since the 196
<br />s.
<br />y con-
<br />tract, the inflation rate [or all of 1985
<br />year ago.
<br />The slight improvement stemmed ,
<br />`worse than any o! us had espccted,"
<br />was 3.8'7. from an increase ih hourly earnings showed continued deep distress among
<br />U.S
<br />manufacturers and Suggested an
<br />Economists predicted that inflation
<br />would rebound to about 4% in 1987, that offset a decline in the npmber of
<br />hours worked and a slight rise in infla- .
<br />economy that "still runs tfie risk of
<br />"
<br />now that the precipitous drop in oil lion. ~ heading into a recession.
<br />prices has ended and a declining dollar Although half of the drop in durable- While House spokesman Larry
<br />is making imported goods more expen- goods orders was attributed to a steep Speaker offered an upbeat assessment
<br />live. decline 'in orders for military equip- of yesterday's statistics, saying 'The
<br />While inflation continued to be a ment, analysis said the n'eaknrss was American economy is gathering steam
<br />bright spot in the economy. a separate widesprend across other sectors. .. and today's news on the inflation
<br />Commerce Department report showed
<br />~ "The fact that inflation is Still very front assures us that the new growth
<br />~~,v c
<br />" d low fo~~t itiGS l~~ '~ I~ ~t~,
<br />.Ca l;$ads ~. 1~~°°' s~llstsmers a break. At!'EC~- 11~y( c~n~n~ac~~ return of
<br />~e~LOtattlg7hfl~llbtfl.Ffat preceded
<br />Uiggest plunge in mote thaq two.
<br />~ -Facing some viei~•~pffe'tt6 tlitrp"ri~ffent'slenttre in offfcc."
<br />
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