Financial Times , 1993, UK, English
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—-. 3 . ' ' . Europe's ' feistriesp Newspaper FRIDAY NOVEMBER 20 1993 «. UK and Germany Oil prices fell almost $1 to five-year low BAe signs warn of dangers deal to By David Lasceflea in London efforts to shore up prices. Markets hit as Opec fails to agree production cuts chang if trade talks fail and Robert Corzlne in Vienna . The e of emphasis also reflects the fact that Iraq will Britain and Germany warned that failure to reach Od prices dropped to their lowest after failing to reach agreement Opec wished to remain a carteL low off prices. Mr Ah Ahmad Al- eventually have to he reinte- agreement on the Uruguay Round of trade talks point in five years yesterday as on a new production ceiling: This Mr Mehdi Varsa, research direc- Baghli, the Kuwaiti minister, grated into Opec’s production ceding on December IS would have Intolerable" conse- the markets reacted with disap- was despite the steady fall in the tor at Klainwort Benson Securi- said he ‘Tipped the fundamentals once United JJafctoas -sams- for quences for the developing world. It would ties rectify the situation^, turns barring it from exporting car perpetu- pointment to Opec’s failure to oil price since the last Opec min- in London, caDed the Opec would ate recession in western Europe lead to protec- isterial mee which although he said soine Opec pro- otb are. lifted. .. and reach agreement on production ting in September. A decision a “disaster" could . tionist measures. Page 18 cuts. communique said that- the Sep- lead to a price collapse similar to ducers which are dose to their -That is unlikely to happen The benchmark Brent crude tember output ceiling of 24J52m one in 1986, when prices fell mpqrj i y ^flight mafeo grilimfeny before weD_Jnto next year hut Indonesia Petrochemicals agreement near: Europe's price fell nearly 81 in early trad- barrels a day was “reasonable below $10 a barrel. production cuts. countries such as Saudi Arabia, petrochemicals Industry is close to agreeing plans wfll have to Kevin Done and Paul Bette ing to 814.18 on the overnight and objective" and should be He said Opec was "suffering Most analysts interpreted . which make a sub- By aimed at reducing losses running at hundreds news from the oil cartel's head- given time to work. from an absence of leadership’' Opec’s dectetoa as a move away stantial cut to accommodate Iraq, -in. London. of millions of dollars a month. Page 18 quarters m Vienna, though It Mr Peter Gignoux, head of the and persistently low prices would horn an emphasis!dn price to a are reluctant to do- so from a -* to Ci- Four-day week at VW: Volkswagen and the recovered slightly to close at energy desk at stockbrokers' force an emergency session well strategy df protecting market levellower than thepresadone. BRITISH AEROSPACE aims Metall 814.48. The its London, before the next scheduled confer- share. Growing output "by inde- take a leading rote in the devel- IG engineering union agreed a framework $14.18 price was Smith Barney in ; " opmentr aircraft deal to cut working times in VWs six German lowest point since autumn 1988 described yesterday's market ence at the end of March. pendent producers, faduding the- Nof so sBck as the market. of. indigenous in works by 20 per cent temporarily, but gave strik- when Opec overproduction also reaction as "a vehement backlash Most ministers refused to be UK. has- upset; Opec, which Page 16 and car indurtries in Indonesia fastest-growing regions ingly different views on how it would affect wages sent prices into decline. Opec to Opec's indecision'’, which drawn on what they might do If believes that snch countries are' Lex. WgeiB . Che of the and costs. Page 18 members dispersed yesterday raised questions as to whether faced with a prolonged period of getting a "free- ride? from its Commodities, Page 28 of the world. the compa- _ Rover group, UK Novelist Anthony Burgess dies at 76: i hy's motor vehicles subsidiary, Anthony Burgess, has signed a memorandum of one of Britain's greatest Kohl blames ‘campaign of personal attacks’ Joint candidate proposed understanding .'with the Indone- M ; and most prolific writers, sian government to lead the died in London aged development of a national car 76 after a long illness. project to design, develop and He had been, suffering manufacture a srnSU car Tor pro- from cancer. Burgess, duction in Indonesia. author of the controver- Heitmann BAe also agreed yesterday to sial novel A Clockwork consider forming a^joini venture Orange, wrote more to develop and manufacture than 50 works of fiction, regional -turboprop aircraft with theatre, television the Indonesian stateewned aero- drama and criticism. space company. PT Industri Pesa- He was also a composer, translator, linguist and quits race wat Terbang Nusantara (IPTN). ^ Joycean critic. Obituary, Page 15 With a population of almost 194m and an economy forecast to Japanese bank profits fall: Japan's leading grow at more than 6 par cent a banks reported sharply lower profits as the level -year in 1993 and 1994, Indonesia of problem loans continued to rise, forcing them has long had ambitions to into the unusual step of writing off loan losses. develop its car and sec- Page 18 for German aerospace tors as part of the. rapid indus- Commerzbank rises 52 per cent: trialisation of south-east Asia. Commerzbank, the smallest of Germany's big BAe said yesterday that it had three banks, reported a 52 per cent rise in operating signed the two agreements after profits to DM909m ($53Sm) in the 10 months ended meetings in London with Dr October. Page 18 presidency Bacharxudin Habihie, the Indone- sian minister for research and Spain's unions march: Spam's two biggest technology and chairman bath of unions staged marches in 50 Spanish cities against By Judy Dempsey in Bonn being swamped by foreigners and the Indonesian Agency lor Stra- the government's economic policy. Some 40.000 refugees. tegic Industries and of IPTN. were estimated to have marched in Madrid and Mr Steffen Heitmann, Chancellor His resignation will come as a According to the motor indus- nearly 60,000 in Barcelona. Page 3 Helmut Kohl’s chosen candidate relief to many east Gomans, who try^ memorandum, Rover will pro- Euro Disney turbulence: Euro Disney, the for the German presidency, yes- believed Mr Kohl had chosen a vide technology transfer and troubled leisure group, had another turbulent terday withdrew from the race relatively unknown easterner to technical support to a joint small session on the Paris stock market when its shares amid mounting criticism ova;, his rein in the presidency. Mr filch" .carlprogramme, - . fell sharply by 13 per cent during the morning controversial views on women, ard von WefasScker, the incum- The car would be sold initially In only to bounce back in the afternoon to close nationalism and Germany’s past bent, spoke out on several contro- the home market but subse- 8 per cent higher. Page 20 His resignation represents a versial Issues, including the quently would also .be aimed at personal blow for Mr Kohl who social and political responsibili- export markets. Production vol- Shanghai contract for Japanese: A had stubbornly defended Mr Heit- ties of unification. umes would be up to 50,000 a consortium of seven Japanese companies has mann as recently as last Wednes- Several eastern German offi- year with output probably won a contract worth an estimated S500m to 8600m day in a speech to the Bundestag. cials also argued that the west starting in 1996-97. to supply equipment for a new steel production Yesterday, the chancellor said German media coverage was con- It is understood that the car facility at the Baoshan complex, near Shanghai the justice minister from the descending and biased in the way Steffea Heitmann explains hta withdrawal from the presidential race to fee press in Dresden. amo<*«ifW would be based an the chassis Page 5 eastern state of Saxony had been it equated easterners with Mr platform of the present Metrn/Ro- views. before year’s federal Social its ver and would be powered Monitors for Russlam poll: Up to 1,000 the victim of a shameful cam- Heltmann’s nes Ran, prime minister of North damage next ,tian Union (CSU), . 100 by international observers are expected to descend paign. “The intolerable campaign In his resignation statement, Rhine Westphalia. and state elections. Bavarian sister party, after the Rover's 1.1 litre K-Series engine. on Russia to monitor next month's elections, of personal attacks and defama- Mr Heitmann appealed - sane The question Is whether the Moreover, if Mr Schroder was elections. “But others might' - In the early stages of the proj- at President Boris Yeltsin's invitation. Page 2 tion against Steffen Heitmann in German officials believe at the coalition government and the chosen, Mr Kohl would still get -tidnk ibis wouM'lrt Kohl off the ect Rover would supply mechanl- - the last fiew months shames all behest of Mr Kohl “to all par- SPD will seek a consensus candi- his easterner,- a goal he Is deter- hdtik, particularly' since- Rau cal components such as engines Bayer setback: Bayer, the leading German those who took part in it” ties in the interests of the inter- date. The president will be' mined to pursue, officials said.' would .win; if there was an elec-' and gearboxes from the UK, profits to fall chemicals group, expects by about the tie®, official Mr Heitmann. 49. created a nal unity of our country to agree elected by a special convention Sections of SPD would sup- ; tomorrow," an SPD per cent this year to DM2.2bn (SlJm) and remain 20 furore when.