Winnipeg Free Press

Winnipeg Free Press (Newspaper) - January 5, 1990, Winnipeg, Manitoba Winnipeg free 1990 Dollar Outlook still Cloudy by Clyde Graham Ottawa up the Bank of Canada eased its trend setting Bank rate slightly to per cent but that did Little to Clear uncertainty about where the Canadian Dollar is the drop from last weeks level of per cent want much of a Dent in interest which Are so High they pushed the Canada Dol Lar to a nine year High of More than 86 cents us late last we could see some further up Ward pressure on the said John economist at the Canadian Imperial Bank of com its not dear that this is the beginning of a turnaround at this John governor of the Bank of has been holding the line on interest rates in Canada to fight a trend to lower rates in the United that made Canadian Bonds and other investments relatively As a the Canadian Dollar climbed throughout 1989 to reach cents us on 28 after closing above 86 cents for the first time in More than nine years on the Bank of Canada rate was set at Down from last week recent rates Bank rate 6 1980 1981 1982 1983 1984 1985 1986 1987 1988 wow Peif ree press since the beginning of this the Dollar has traded closer to 86 cents it closed yesterday at cents Canadian exporters have been frustrated by the High value of the which makes their wares More expensive for foreign Cus in Canada suffered its first monthly Trade deficit in goods since Clinkard said with Crow stand ing Pat at least Over the next few weeks the Fate of the Dollar will hinge on whether the Federal Reserve Board the american Central Bank continues to push Down interest the Gap Between Canadian and interest rates is currently about four percentage some recent signs of renewed inflation in the United states have Given the Board reason to pause and hold the line on Clinkard said this weeks Trad ing of the Canadian Dollar could be Little More than a technical correction and the value of the loonie could be moving up again next George chief economist at Montreal said he believes the Dollar has i cant conjure up an argument for a stronger Saba said the underlying weak Ness of the Canadian Economy which is expected to stagnate if not shrink in 1990 should put a Cap on the value of the but Mike chief economist at info metric said the continuing Impact of higher Canadian interest rates on the value of the Dollar be even if the spread Narrows a Little there is still an Adan so it Doest mean necessarily that the pressure comes said the upward trend in the Dollar has led to a climb in Canadas foreign Exchange which reached a record High of billion us at the end of up million from the month if Job sign Wilson planning to continue As finance minister by Larry Welsh Ottawa up finance minis Ter Michael embroiled in controversy at Home Over his pro posed goods and services tax and upcoming faces one More problem at his new Job at the inter National monetary the United nations Agency this week appointed Wilson chairman of a powerful 22member committee that sets policy for the which lends billions of dollars to poor coun tries and promotes a stable world but Wilsons skills in stick Han doing Tough budgets and his unpopular tax should help resolve an inter National dispute Over How much to increase the financial resources for the some economists said yes Mike is not an aggressive Guy that is going to beat pm up around the ears but will be soft spoken and Well reasoned and that May Well Lead to an said Mike president of Ottawa based info metric and the new Job for Wilson could be a Subtle sign that he plans to stick around for some time yet As finance minister in Canada despite political heat he is feeling Over his deficit cutting Mccracken Wilson can keep his Post As chair Man of the ifs interim committee As Long As he is Canadian finance it certainly scotches any rumours Wilson skills that he is Likely to be departing in the next month or Mccracken it would be very awkward for Canada to accept the Post and then for Mike to be out in a Short period of his record As the longest serving finance minister among major West Ern Industrial countries and Strong International reputation should help Wilson solve the problem of increasing financial resources for the said de executive Vic president at the Royal Bank of there has been a substantial Dif Ference of views among the Mem Bers of the interim committee on that Neufeld his big Challenge will be bringing about a he there is tremendous pressure to get it done very the Wall Street journal said yesterday a special meeting of the com Mittee could be held As Early As the week of the if had hoped to reach agreement on increasing funding by the end of last but slow Progress forced the Agency last no vember to extend discussions until the end of the lending Agency faced with heavy demand for Money from countries in Eastern Europe restructuring moribund economies and debt Laden latin and South american countries has argued its current billion us in funding should be the United contributing the largest amount of Money to the has supported a 35percent increase in the if gets its Money through or from 152 Mem Ber countries that contribute some of their foreign Exchange reserves to the International the interim committee generally meets twice a year and Wilsons new Post As chairman should not put extraordinary Strain on the finance minister As he wrestles with a slow ing rising deficit and the difficult task of steering sales tax legislation through Neufeld and Mccracken Canadian foreign reserves climb to record Levels Ottawa Canadian foreign re a fund made up of the Federal governments holding of Gold and other foreign cur increased to record Levels last foreign reserves Rose to billion us at the end of up million from billion on the finance department said the Canadian fund of foreign currencies and Gold has increased to its highest surpassing the Previ Ous High of billion us at the end of foreign reserves had fallen slightly each month since last August before rising sharply in lower profits Likely Montreal port of Mon facing cutthroat Competition from other expects a sharply lower profit for 1989 As a decline in Grain shipments continues to slice into last for the first time in the the second biggest Container port on the Eastern sea recorded an operating loss of Between and port officials said interest from government Bonds will give the port a net profit of Between million and said Dominic the ports Gen eral but that figure is a big drop from the ports net income of million last the port is due to release official figures later this business watch big Mac canola Fried Calgary Mcdonalds restau rants of Canada May soon have some Good news for Western Canad an canola the fast food Chain has been test ing canola Oil for frying in almost All of its Ontario restaurants since sep tember and May be on the verge of switching to canola across a decision on the change should be made within 60 said Mcdonalds spokesman Douglas Mcdonalds likes canola Oil be cause it has no cholesterol and is cheaper than the Corn Oil the Chain now said if the switch is All Fried products except Trench Fries will be cooked in canola he Fries will continue to be prepared in beef tallow because of the Fla fishing quota up Vancouver Roe herring fish Ermen will share a Coastwise quota of tonnes in up from an average of tonnes annually since fisheries minister Tom Siddon said the herring which harvests Between million and million a year in begins in Early March and carries through until the first or second week of seiners and Gill net Fleet will split the catch 55 per cent and 45 per expertise offered Japan prime minister to Shiki saying that economic Reform is the key to political has offered japanese business knowhow to Eastern for Freedom and democracy to take the socialist and comm Nis style centralized economies must be transformed into Freeman Ket Kaifu said yester Japan will not Stop at providing financial he saying it could also provide technicians and Japan has earmarked million us in economic Aid for Poland and which Kaifu will visit later this Stock buy okayed Apple computer said yesterday its Board has approved the repurchase of up to million More shares of common the Ope Market purchases Are part of an ongoing program announced last when the Apple directors authorized an initial Pur Chase of million John apples chairman and chief said the Pur Chase represents Good Lon term value to our Campeau woes deepen As Bank seizes Stock by Allan Swift Montreal up the woes of Toronto Industrial is Robert Campeau deepened yesterday when the National Bank of Canada revealed that a company controlled by Campeau had defaulted on a loan and the Bank was seizing 35 per cent of Campeau voting the Montrea based National Bank announced yesterday it had obtained the Transfer into its name of 13 million common four million voting subordinate prefer ence shares and million can Worth of subordinate All of which it already held As Securi its a very difficult situation the Clouds Are getting heavier every single commented Janet Man analyst with Joseph thai and new the likelihood of bankruptcy is increasing As time goes on and the move today is a perfect Campeau owns a real estate Empire that ran into difficulty with the Purchase of two retail chains Allied stores and Federated depart ment consolidate position the securities seized by the National Bank yesterday were provided As collateral by Robert Campeau capital for a National loan granted to the numbered since the loan was in and since the restructuring in the has just we Felt it would be important for All the parties concerned that we consolidate our Posi Andre National Bank president and chief said in an interview the Bank did not reveal the amount of the which Berard said is in default and not consid ered Berard said the Bank intends Nei ther to dispose of the Campeau securities nor acquire additional the rationale for making the move was not liquidating the shares or putting the company up into liquidation just securing our position and telling All the parties involved weve now got 35 per cent of the vote and therefore we intend to follow the scene very Campeau earned a Short reprieve earlier this week when major creditor for Allied and be extended from sunday until at least 15 a foreclosure dead Campeau difficulty line on a loan of billion in the event that Campeau goes Berard said we Haven made any scenario As to what would be the value of our securities the one fact remains if you exclude the investment in Allied and Federated where we dont know the real value Campeau has a very High Quality real estate a Market value higher than the Book analyst Mangano said the seizure needs to be in Given the likelihood that seeking chapter Protection for Federated and Allied is now More Likely than it was a month she added that the shares seized by the Bank Are Worth a fraction of what they were Worth when Campeau purchased Olympia and York developments of Toronto have offered Cam Peau an can mortgage Bridge but this depends on the Sale of Federated flagship Bloomingdale department store after revelations wednesday that Christmas sales fell Short of expect Mangano i dont think Campeau will get the Price for Bloomingdale that he on wednesday another bidder for Taekyu depart ment dropped leaving Only two or three said Man Carol a Cincinnat based Federated said brusquely this is a personal situation involving the Bank and Robert Campeau it is both premature and inappropriate for the company to com Campeau shares dropped 25 cents yesterday to financial crisis worries clothing store suppliers new York a despite Wor Ries that Cash strapped Campeau might not pay its cloth ing makers want to maintain relations with the company retailers because they have been Good Cus but apprehension is rising As the financial crisis facing the Canadian retailer and property Developer most garment manufacturers that Supply merchandise to Campeau owned department stores Are holding Back shipments until the situation becomes some said this week they Are filling Small orders to such custom ers As the Bloomingdale which has been put up for Sale to ease Campeaux Cash in taking care of Blooming Dales on special said Bud president of apparel maker Nicole Miller i am not cutting off any of these stores crudely or we still have to treat them As very Good but it int exactly business As several factors companies that provide credit support to manufacturers started telling clients weeks ago that they would no longer do business with for some suppliers have been disposing of merchandise through discount outlets instead of shipping to stores operated by Cam peas Allied stores and Federated department stores they were willing to take less for their goods rather than risk not being paid at inter Home Energy formerly inter provincial pipe line limited notice of partial redemption for sinking fund to the holders of formerly sinking fund series due february 1996 notice is hereby Given pursuant to the provisions of the Trust indenture dated As of october the Trust Between inner Home Energy formerly into provincial pipe line limited the and Montreal Trust company the As supplemented by the fourth supplemental indenture dated january the following 11 sinking fund series e of the company in the aggregate principal amount of have been selected by lot by the trustee for redemption out of sinking fund monies and will be redeemed on the i St Day of 1990 at the principal amount thereof or the respective portion of the principal amount thereof together with interest on the said principal amount accrued and unpaid to the said 1st Day of the following bearer Coupon in the denomination of bearing the under noted distinguishing prefix and Hutc been called for redemption in full em04560 em055i5 em05977 em0598j pm 11582 pm 11585 pm ii588 pm 11590 pm 11593 pm 11595 pm 11601 pm 11968 Emi 1970 pm 11979 pm 12000 pm 14004 kmi4013 pm 14034 pm 14057 pm 14067 pm 14081 pm 14099 pm 14135 pm 14143 pm 14144 pm 14145 em14i49 em14i50 em14i61 pm 14169 em14178 emi4i90 em14i94 em14196 pm 14204 pm 14206 pm 14208 pm 14227 pm 14232 pm 14235 pm 14252 pm 14254 pm 14257 pm 14272 pm 14275 pm 14279 pm 14305 em143i8 pm 14325 pm 14334 pm 14343 pm 14346 pm 14347 pm 14352 pm 14362 pm 14374 pm 14394 pm 14395 em14418 pm 14420 pm 14436 pm 14437 pm 14439 em1444i pm 14453 emi4456 pm 14459 pm 14462 pm 14474 pm 14498 pm 14520 pm 14521 pm 14527 pm 14533 pm 14553 pm 14594 pm 14600 pm 14602 pm 14639 pm 14672 pm 14687 pm 14698 pm 14725 pm 14746 pm 14775 pm 14777 pm 14780 pm 14781 pm 14784 pm 14806 pm 14839 pm 14846 pm 14857 pm 14874 pm 14879 pm 14900 pm 14901 pm 14906 pm 14932 pm 14944 pm 14949 pm 14984 pm 14991 pm 17393 pm 17426 pm 17428 pm 17443 pm 17450 pm 17475 pm 17483 pm 17506 pm 17514 pm 17523 emi7525 pm 17529 pm 17537 pm 17550 pm 17557 pm 17574 pm 17581 pm 17583 pm 17584 pm 17604 pm 17605 em176i2 pm 17624 pm 17629 pm 17631 pm 17670 pm 17674 pm 177ii emi77i8 pm 17723 em33568 em33579 em33583 em33588 em33594 em33597 em33604 em336io em3363i em33640 em33658 em33660 em33675 em33678 em33697 em33698 em337i8 em33728 em33752 em33772 em33777 em34105 the following principally registered debentures bearing the a demoted distinguishing prefix and Ocen called for redemption to the extent indicated em04552 em04579 pm 11952 pm 11953 pm 13385 pm 17894 em21237 em33327 em33464 em33467 em33497 em33531 em33809 em33814 em44628 em44631 em44636 em44637 em44640 notice is further Given payment of the principal amount of the called portion of the debentures so selected will be paid in lawful Money of Canada at any Branch in at the holders of Bank of or at the financial institution with which inc Holder normally transacts upon presentation and surrender of each said together in the Case of Coupon All coupons appertaining thereto maturing after february coupons maturing february 1990 should be detached from the debentures and cashed in the usual accrued interest on the called portion of fully registered debentures to the Date fixed for will be paid by Cheque together with interest on the uncalled portion if if a part Only of a debenture is called for a new debenture will be issued for the portion of the debenture not called for notice is also Given in accordance with the provisions of the Trust All interest on the debentures so called for redemption or on the portion to be redeemed shall cease from and after the said 1st Day of 1990 and coupons for in Erc t to accrue after such Dale upon the said debentures shall become and be dated at Calgary this 29th Day of inter Home Energy formerly inter provincial pipe line limited by Montreal trustee obtain debenture holders should present their debentures with a copy of this notice to the Bank or financial Zinsli ution with whom they normally Deal and in turn will obtain payment from Bank of ;