Wednesday, December 30, 1998

Business News

Investment in mutual funds climbs again

NEW YORK -- Ordinary Americans poured their savings back into the stock market in November, recovering confidence quickly after the sickening dive that stock prices took in August and September, according to figures released Tuesday.

Equity mutual funds, which have been at the heart of America's love affair with the stock market in the 1990s, drew in a net $13 billion during the month. That compares with just $2.5 billion the month before, according to the Investment Company Institute, the mutual fund industry's trade association. Report: Russia's oil production to total 303.5 million tons in 1998

MOSCOW (AP) -- Russia produced an estimated 303.5 million metric tons of oil in 1998, and exported 134 million metric tons, the Fuel and Energy Ministry said Tuesday.

Oil is Russia's most lucrative export, and the cash-strapped government has been trying to keep up exports, despite a slide in world oil prices that has prompted many oil ministers to urge production cuts.

This year's exports will mark a 6.3 percent increase from 1997, the Fuel and Energy Ministry said, according to the Interfax news agency. But because prices have dipped to the lowest levels in a decade, officials expect revenues to be considerably lower than the $14.8 billion recorded in 1997.

Interest rate rises in two-year Treasury note auction

WASHINGTON (AP) -- Yields on two-year Treasury notes rose in Tuesday's auction to the highest level since summer.

The yield was 4.690 percent, up from 4.629 percent at the last auction on Nov. 24. It was the highest rate since two-year notes sold for 5.125 percent on Aug. 26.

The notes will carry a coupon interest rate of 4-5/8 percent with each $10,000 in face value selling for $9,987.70.

Toyota's North American production rose 15 percent in 1998

ERLANGER, Ky. (Dow Jones News) -- Toyota Motor Corp.'s North American 1998 production rose 15 percent, to 962,823 vehicles from 838,069 a year ago.

Japan's No. 1 auto maker said Tuesday it expects its 1999 North American production to increase to 1.2 million vehicles.

Cooper Industries announces job cuts

HOUSTON (AP) -- Cooper Industries plans to cut about 1,000 jobs and close more than 12 manufacturing plants worldwide as part of a cost-cutting plan to be enacted over the next 18 months.

The maker of electrical products, tools, hardware items and lighting did not disclose which plants would be closed or targeted for layoffs. Cooper employs about 28,000 people and has 110 factories worldwide, including 50 in the United States.

Holiday season store sales rose 2.5 percent: TeleCheck

HOUSTON (Dow Jones News) -- Holiday spending rose 2.5 percent from last year, boosted by a surge of last-minute shopping during the final four days of the holiday season, according to TeleCheck Services.

TeleCheck, a Houston-based check-clearing firm that surveys 27,000 stores, said Saturday, Dec. 19 was the biggest shopping day of the season.

IRS postpones date of cut in business mileage reimbursement

WASHINGTON (AP) -- The Internal Revenue Service has delayed its planned reduction in the reimbursement rate for business driving following objections from several companies that wanted more time to convert computer software.

The reduction from the current rate of 32.5 cents per mile to 31 cents per mile for employees who drive personal cars for work was scheduled to take effect beginning Friday.

But the IRS decided earlier this month to postpone the effective date to April 1 to give businesses time to reprogram computers and change employee manuals.

Consumer confidence unchanged in December

NEW YORK (AP) -- Consumers' confidence in the economy was steady in December, although Americans grew more cautious in their outlook for the coming months.

The Conference Board reported today its index of consumer confidence fell a marginal 0.3 point to 126.1 from a revised 126.4 in November. The index had rebounded last month after a four-month slide.

Air Forces authorizes $527 million for F-22 jets

FORT WORTH, Texas (AP) -- The Air Force is proceeding with plans to have Lockheed Martin Corp. build two test copies of its F-22 advanced tactical fighter, exercising options to spend $503 million for the plane designed at its Fort Worth and Georgia plants.

Two contracts announced Monday follow a $71 million contract awarded in June, said Gerry Freisthler, deputy director of the F-22 program at Wright-Patterson Air Force Base in Ohio. Lockheed conducted flight tests and reviews with Department of Defense officials, he said.

The aircraft will be used for initial operational tests and evaluation beginning in 2002 at Edwards Air Force Base, Calif.