Reno Gazette-Journal from Reno, Nevada • Page 53

Tip of the week The Garfield Comic Circus will perform at Park Lane Mall at 11:30 a.m., 1:30, 3:30 and 5:30 p.m. Saturday and Sept. 2. Garfield and his ringmaster will perform big top acts. Details: 825-7878.

Sunday AUGUST 26, 1990 RENO GAZETTE-JOURNAL BUSINESS EDITOR: ALLAN RISDON, 788 6322 Section 2F PEOPLE 2F SYLVIA PORTER-! 4-7F MARKETS tfisin.es Investors, faced with crisis, look to bottom line sulting upsurge in oil prices and interest rates. "The economy looks bad," said Suresh Bhirud, chief portfolio strategist at the investment firm of Oppenheimer Co. "What Saddam has done," summarized Barton Biggs at Morgan Stanley "is boost oil prices, diminish economic growth, raise inflation and increase budget deficits (particularly in the U.S.) at a time when economic engines were beginning to sputter anyway." At Wright Investors' Service, a Bridgeport, investment management firm, economy does indeed enter a recession. "Over the next few quarters, stock prices will get little support from the overall corporate profit performance." Some favorable resolution of the Middle East crisis, it is widely presumed, would logically cause oil prices to drop back significantly from the recent peaks they have reached of $30-plus per barrel. But even then energy costs are expected to settle at a point higher than they would have been otherwise, increasing many companies' operating costs and hurting businesses that depend on car travel and I vestments that compete with stocks fari investors' favor.

As the stock market struggled to cope! with such unsettling thoughts, it took a steep drop in the past week to its lowest-levels in more than a year. The Dow Jones average of 30 industrials closed Friday at 2,532.92, down 111.881 from the week before. Volume on the Big Board averaged; 189.86 million shares a day, against 147.95. million the week before. Late in the week, a flurry of stories crossed financial news wires carrying word of companies budgeting money to buy back shares of their stocks.

That was reminiscent of the aftermath of the 1987 market crash, when buyback. plans sprang up by the hundreds. an en film Commercial insurance class starts at UNR The University of Nevada, Reno's Division of Continuing Education is offering a course in commercial insurance this fall. Insurance 23: Commercial Insurance addresses workers compensation, loss of business income, group life and health, inland marine, aviation, crime and other commercial insurance packages. The class is scheduled to meet from 7 to 9 p.m.

Tuesdays, Sept. 4-Dec. 4 in Room 110 of the Business Building on the university campus. The fee for the course through Tuesday is $150, after Tuesday, $175. Paul Kelly, a 30-year veteran in the property and casualty insurance fields, is the instructor.

This is the first of a series of insurance courses offered. Registration: 784-4062. Details: 784-4046. Chamber's scramble golf The Greater Reno-Sparks Chamber of Commerce offers the chance to get away from the treadmill of "business as usual" and still make professional contacts at the 18th annual Scramble Golf Tournament. The tournament will be held Monday at Lakeridge Golf Course.

Registration begins at 6:30 a.m. with pairings, rules and starting tee assignments. A shot-gun start begins the tournament at 7:30 a.m. Tournament fees include golf cart, box lunch, green fees and prize: $80. Details: 786-3030.

Henderson mall project Construction of the newest and largest shopping mall in Nevada, The Galleria at Sunset, will begin in November, according to James A. Ratner, president of Forest City Rental Properties Corp. of Cleveland. Located in Henderson on a 90-acre site at the intersection of Sunset Road and Stephanie Street near U.S. 1-515, the one-million-square-foot regional mall is being developed through a joint venture between Forest City and Ranch Mall Associates of Henderson.

It will be built in two phases, the first of which will be finished by the summer of 1992. The initial phase will include 720,000 square feet of shopping space and accommodate three major department stores: Dillard's, Mervyn's and The May Company. The total cost of the project is estimated at $105jplion. The shopping eghtefwill be built by Forest Citv CommerciaLDeveloDment consumers disposable income. 1 he increase in interest rates looms as other negative in the cost of doing busi- Not so incidentally, it enhances the comparative allure of interest-bearing m- fft Bracht prepares his the Magic Carpet prepsBBsp be Miniature Golf By Chet CurrierAP NEW YORK Whatever the outcome of the showdown in the Persian Gulf, Wall Streeters believe the stock market now is reconciling itself to the prospect of a long dry spell for corporate profits.

As the summer began, hopes had been spreading among U.S. investors that earnings would soon start pulling out of a slump that set in at mid-1989. Even in a relatively weak economic environment, the reasoning went, bottom lines at many businesses stood to benefit from moves by the Federal Reserve toward a more stimulative credit policy. Such visions faded fast, however, with the Aug. 2 strike on Kuwait by Iraq under President Saddaam Hussein, and the re Motion Picture office works to keep cameras rolling in Nevada By Wayne MeltonGazette-journar Nevada is busting out all over the nation's movie screens as the state's film industry continues a boom that started in the early 1980s.

This means big bucks for a vast range of businesses from casinos to small rural motels. In fact, Nevada's economy collected $45.8 million from all movie, TV and commercial productions during fiscal year 1989-90, up from $42.2 million in 1988-89 but down from a peak of $50.1 million in 1987-88. The 1989-90 total placed Nevada fourth highest for feature-film production among all states, tied with Arizona and Pennsylvania. But it lags far behind top-ranked California, where the movie industry generates billions of dollars in revenue annually. State Motion Picture Division Director Robert M.

Hirsch cites a list of films in recent years that pumped money into Nevada businesses. They include two 1980s movies starring Tom Cruise i "Top Gun" and "Rain Man," which also starred Dustin Hoffman. There have been many other major motion pictures, TV shows, commercials and. public service productions. And Hirsch says several more motion pictures are ready to roll.

One is "The Payoff," an action-adventure scheduled for October at Lake Tahoe. Either Matt Dillon or Ken Wahl is expected to star in the story about a police officer seeking revenge against organized crime for the murder of his father. Another is "Pretty Hattie's Baby," a drama based on a true story that occurred in Reno in the 1950s. The movie, scheduled for filming in Reno in October or November and starring Alfre Woodard, involves a white child adopted by a black woman. Dates haven't been set and film companies have yet to announce budgets or major actors for some of the other productions.

Industry insiders say final shooting dates, locations, budgets and stars sometimes aren't announced until the last minute because producers often don't know until the last minute themselves. Future Nevada projects include three by Walt Disney Productions or its film subsidiaries: "Widows," Las Vegas, starring Bette Midler. "Princess From Mars," tentatively set for filming in the Valley of Fire near Las Vegas. "Christmas in Las Vegas," written by actress Carrie Fisher. In addition, several biker movies The Jose OsorioGazetle-Journal Course in Reno as Richard and Jenelle Moore A.

TP I 1 Some movies anrrjlbQrJuctions filmed in Nevada analysts nave pushed back their proj tions of any pickup in profits to the si nait ot ism. They add, "this reduced estimate still prove to be too optimistic if the U.S. TAKE A BREAK: Cameraman Biff camera for shooting "Rescue 911" tentatively are planned by various companies, including: A Las Vegas production featuring movie stars Don Johnson and Mickey Rourke. "Roadside Profits," based on two bikers who travel from Ely to Jackpot. Like previous movies, the productions are expected to pump money directly into local firms.

But long-term impact and publicity for Nevada can be much greater. "The various windows that a film passes through will expose it to an unlimited audience," Hirsch says. He points out major films often have first-run showings in theaters, followed by cassette releases, cable airings and TV network slots. Also, almost like cats with nine lives, big films receive additional airings on local television stations worldwide sometimes for several years or decades. With all these factors, Hirsch says, there's virtually no way to determine the total economic impact such productions have on Nevada.

Eager to benefit from this trend, several other states in recent decades have stepped up efforts to lure large film productions. Although Nevada entered the competition relatively late the state motion picture division was created in 1983 there is sldEbfemendous potential, said MrraMe lelson of Reno, a See 'MS, page 3F borne experts sav the cnancejis itable outcome of the end of this Previously, investors feared any could escalate into a superpower cwifrdh- tation, with European security at risk, said David Wyss, chief financial economist at DRI-McGraw-Hill a Lexington, research firm. But with U.S.-Soviet relations vastly improved, the prospect of a global war has all but disappeared, and investors feel secure leaving their money in Europe or sending it there instead of the United States, he said. "There isn't the old specter of a European conflagration that would wipe out all their capital," said John McCarthy, chief currency dealer for Amsterdam Rotterdam Bank in New York. "In the past you'd see people liquidating marks, liquidating Swiss francs, to physically get their capital out of the battlefield." Another reason the dollar hasn't benefited is that currency can be moved around the world more quickly than a decade ago, experts say.

Electronic funds transfer can be accomplished almost instantaneously. Legal hurdles to shifting funds also have receded. "People don't feel they have to make these asset-allocation decisions as quickly as they had in the past," McCarthy said. See HAVEN, page 3F vs. a 6 is tnlnev- at filmed Mark NowllnGazette-Journal Name LocationPat Category Stars "Top Gun" mCru'se "Rain Ulan" Las Ve9as area.

Drama Tom Cruise Rain Man 1988 prama Dustin Hoffman "Kill Me Again" Las Vegas, 1989 Act' drama Val Kilmer "Pink Cadillac" Reno area, 1988 Comedy Clint Eastwood "An Innocent Carson City, 1989 Drama Tom Selleck Man "Misery" Genoa, 1 990 JamesCaan 'The Wizard" Reno area, 1989 Fantasy Fred Savage "Jesse Hawkes" Reno, 1989 Drama Robert Conrad "The Survivors" Lake Tahoe, 1983 Comedy Robin Williams "The Misfits" Drama Kyn Monroe of Los Angeles. Coming Monday To keep firm control of our credit, we often need to know what information the credit records contain, how it got there, how we can obtain that information and what good or harm it can do us. Read about it in Business Monday. I Personafnco: for July released by Cl rce Department. In Washingt' who served as execu, of Jesse Jackson's Coalition, to announce ne considering independent presidential bid in 1992.

Tuesday Balance of payments for the second quarter released by the Commerce Department. In Milwaukee, trial for company charged with criminal violations of federal safety law in sewer tunnel explosion that killed three workers. Wednesday Index of leading indicators for July released by Commerce Department. New home sales for July released, Commerce Department. In Helsinki, Finland, European Democrat Union conference opens with 25 conservative party leaders, including Prime Minister Margaret Thatcher and six other prime ministers.

Through Aug. 31. Thursday Factory orders for July released by the Commerce Department. Friday In New Haven, sentencing of drug dealer turned in by his mother. In Cairo, proposed date for meeting by foreign ministers of Arab League to hear report on implementation of anti-Iraq resolution.

In Kourou, French Guiana, launch of Europe's Ariane rocket to place two telecommunications satellites in orbit. Wire and staff reports WITT nr 1 heek ahead 1A 9 A. ffflr" IS Source: Nevada Motion Picture Diviiion Barron Hilton: his father's touch Dollar is losing 'safe haven' status By Bart ZieglerAP NEW YORK Once upon a time when the world convulsed with political turmoil or war, global investors would funnel money into dollars as a "safe haven" strategy to preserve their wealth. No more. Judging by the reaction of investors to the Mideast upheaval, the dollar has been shunned for German marks, British pounds and Japanese yen, showing the U.S.

currency has lost its pre-eminent status as an investment refuge, some economists say. In the past, the mere threat of war was enough to unleash a torrent of investments in the dollar and dollar-denominated securities such as U.S. stocks and bonds. The enormous demand for dollars from abroad typically sent the value of the currency soaring relative to yen, mark, pound and other foreign money. But since the dollar's brief jump following Iraq's Aug.

2 invasion of Kuwait, its value against most other major currencies has slumped, reaching an all-time low against the mark and a nine-year low against the pound. What went wrong? By Owen SheeranGannett News Service LAUGHLIN Bar- ron Hilton, president chief executive and I officer of Hilton Ho tels seems as tickled as his pink flamingo logo over his new resort hotel here. And why not? Earlier this month, within an hour and a half of opening the new Flamingo Hilton in this Colorado River Hilton resort town, more than 5,000 people occupied the casino. And within four hours of opening, every room had been booked. Not a bad start for the twin-tower, 18-story resort, the largest hotel the company has built from the ground up.

Even in the heart of gambling territory, the 62-year-old Hilton, son of company founder Conrad Hilton, plays more gin rummy than poker and doesn't consider himself much of a gambler. But that doesn't mean he doesn't make any large bets "i think a good example of that is this property right here. We have $190 million invested in this property, and we feel it represents an ideal investment for our company," Hilton said. "We have no mortgage on the property. It was all cash from our company.

A lot of people would say that making an investment of that type in Laughlin, Nev. you'd have to be crazy." But the silver-haired, soft-spoken Hilton, who still speaks with a trace of his native Texas accent and uses his lighted cigar to occasionally emphasize his conversation, points out that he runs the Hilton Hotels in much the same way his father did. Their basic philosophy on hotel development, he says, is that there should be; a need for a property before it's built, that it should be well located and it should be conservatively financed. "I've followed my father's philosophy operating this company over a period of years, and it worked well for him and it's worked well for me and, I believe, our shareholders," Hilton said. That same philosophy has been followed at the Flamingo Hilton in Laughlin, Hilton said.

While Hilton has been the company's See HILTON, page 3F 'J.