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BUSINESS Pastor Has Faith House Tour Multi-Circuits in Accused Killer Planned Oct 20 - MANCHESTER HERALD. Sat.. Sept. 11. 1982 7 BUSINESS Pastor has faith House tour Multi-Circuits in accused killer planned Oct. 2 and economics Exports so© silvor lining in cloudod ©conomy ... page 3 ... page 11 ... page 20 starts and auto sales, but remember recovery and occasional monthly ... maybe there’s a little more to go, By I’hilip Grcfr and Myron Kandel depends on what happens to interest situations are going to turn around the level that you’re coming from- rales between now and the end of overnight, and that really is not the declines in the CPI may even raise but not much, and I think that rates Donald Trott, chairman of the in­ the specter of deflation rather than this year," he observes. He expects case. Many people will not see any for the rest of the year will fluctuate vestment policy committee of A.G. Don't gel carried away by all that rates to continue to trend down over kind of improvement until next the disinflation notion so recently in a fairly narrow band." Manchester, Conn. Becker Inc., has a similar caution Hazy sunshine, euphoria over the stock market's re­ the longer term, but he says they spring or summer in their own per­ fashionable,” he says. "More However, Edward Yardeni, chief r6garding corporate earnings cent record performance. The could be up a bit by year-end. sonal circumstances.” business failijres over comng Monday, Sept. 13, 1982 economy is still in the doldrums and months and the coming need for in­ economist of E.F. Hutton, sees reports. He notes that securities warm Tuesday Although Maude believes that the analysts and corporate there may be some time to go before Leonard Santo\^, economist at J. ternational debt reschedulings in lower interest rates by year-end. He Single copy 25c economy could slow down after the managements, having been forced — See page 2 the nation can again enjoy a period Henry Schroder Bank & Trust Co., huge size may foster the fear of predicts an 11 percent prime rate by HanrhrBtrr Irralb turn of the year, he’s hopeful for a of sustained economic growth. But shares some of Maude’s concerns. the end of 1982, with a further to revise their earnings estimates sharp pickup in the second half of deflation.” downward throughout this year, are there also are some encouraging in­ But now that interest rates have decline to 10 percent by the middle 1983, spurred by the final 10 percent ”We still see a consumer-led U.S. now “lowballing” their estimates dications of better times ahead. fallen sharply and fears of ever- recovery as the only way to help of next year. cut in taxes that takes place July 1 for 1983. That's the mixed picture we gel higher budget deficits have been and a continued drop in interest business reliquify here and abroad,” from samplfrig the views of some of diminished somewhat, he sees an von der Linde adds. “The continued "Business loan demand could be rates. "The second half of next year But those estimates will probably Wall Street's savvicst economists. opportunity for ‘‘some kind of abatement in inflation rates will especially anemic over the next six could be a period when we enter into be subject to continual upward . - r - - They're beginning to see some silver sustained recovery” that would go boost real consumer income and to nine months,” he explains. a sustained economic recovery at a revisions over the next several linings amidst all those clouds that into 1983 and last throughout the only that can trigger the economy.” “Lower-rates and a recovery should fairlv healthy clip.” quarters, he says, because of the im­ At least 40 have been hovering lately. year. Santow points out that the real generate more cash flow. Proceeds pact on earnings of such fat­ "Were bumping along the bot­ But ho stresses the word “oppor­ The declining rate of inflation has test on inflation will come, not this raised in the bond market should be trimming moves as plant closings, tom. but the ingredients arc falling tunity” and says that- before the been a big bright spot — perhaps the year or next, when the economy is used to pay down short-term debt. layoffs and general cost-cutting. into place to have an economic Federal Reserve acted to bring in­ only one — in the economic picture recovering from two years of We don’t foresee much of a rebound terest rates down over the last over the last year and a half, and in inventory investment or capital recovery," says Donald Maude, weakness, but in 1984 and 1985. An even more important factor, chairman of the interest-rale policy several months, the only question many economists are expecting con­ outlays uijtil the second half of 1983. "When you get back to near full he notes, is lower interest rates, committee at Merrill Lynch, was whether the recovery would be tinued improvement. A highly employment, maybe in the third or So the need for external financing to die in fiery since in recent quarters around 40 “We've-had a major reliquification aborted this year or early in 1983. bullish view comes from Gert von fourth year of a recovery, and meet the gap between internal cash percent of all corporate profits ON of the consumer sector; the savings The F'ed eased, he told us, “just in der 'Linde, chief economist of you’re at full utilization of capacity, flow and operating needs should be before interest and tax payments i Sffilhfj rate is now above 8 percent; con­ the nick of time.” Donaldson, Lufkin & Jenretle, who if you still have inflation rates down minimal.” have gone to the payment of in­ DH SN sumers have paid down debt Both economists say they don’t is predicting that the increa.se in the well into the single-digit levels, Santow offers one piece of advice dramatically over the last year to expect the recovery to be very visi­ Consumer Price Index will fall to an for the months ahead. "Economists terest With rates declining, the im­ ISIRIKE s m f l you’ve achieved something,” he pact on year-to-year comparisons year and a half, and 1 think con­ ble to the man on the street for some annual rate of 3 percent between the says. On interest rates, Maude and newscasters love to talk about plane crash will be substantial, Trott asserts, sumers are ready to go out and time. "The recovery is going to be first quarters of 1983 and 1984, large­ .sees the prime about where it is month-to-month changes, ” he says. rw adding that the subsequent in­ '.'^ 1 spend." quite slow, and for many people, dis­ ly due to lower housing and energy right now, or maybe half a point “You are going to see some very creases in 1983 earnings estimates But Maude questions whether the appointing,” Santow predicts. “1 costs. higher, at the end of the year. San­ large percentage movements in the ■ J- will be highly bullish for stock “I could not grasp what happened. recovery can be sustained going into think many people feel that the word "The inability of most businesses tow says, “We’ve probably seen economy in the second half of the MALAGA, Spain (UPI) - A New York-bound chartered DC-10 jet It was as if the airplane did not have the first half of next year. "A lot recovery means that their personal to raise prices freely in the coming year, in such things as housing prices. most of the decline in interest rates with 392 people on board skidded the power to take off,” he said. across a traffic-filled road on In New York, Spantax said it had takeoff today and caught fire, killing reports of a number of casualties on In brief. at least 40 people and injuring more its charter flight 5995, but had no im­ Judge lets order against UTC stand than 100 others. mediate details. Authorities estimated 178 people An e s tim a te d 178 p eo p le Herald photo by Tarquinlo escaped unharmed, but feared the scrambled out of the plane unaided,. Results better By United Press International by saying there is "no merit” to the allegations on securities laws. , which the Michigan order was based and its takeover The directors also decided to sweeten the company s death toll could reach “up to one authorities in Malaga said. PICKET Lin e g o e s u p a t t h e f a r m e r s c o -o p BOSTON — The Slop & Shop Cos. Inc. have an­ Those who escaped the flames A federal judge Friday refused to overturn a cease bid "remains in effect.” bid for Marietta by raising to 52 percent from 45 percent hundred,’’ the Spanish national news . Teamsters want more money, better benefits nounced second quarter results that reflect sub­ and desist order issued by the state of Michigan against Meanwhile, Bendix directors meeting in New York the amount of Marietta shares it will buy for cash. agency EFE reported. wandered aimlessly around the area stantial improvement over the previous year the $1.5 billion takeover offers by Martin Marietta Corp. stepped up their takeover drive for Marietta and their Moer than 100 people suffering and one couple pleaded with despite the continuing recession and bad weather rescuers to get their child out of the and United Technologies Corp. for Michigan-based Ben- resistance to United’s bid.
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