Reno Gazette-Journal from Reno, Nevada • Page 36

flip USINES SATURDAY, JANUARY 21. 1395 RENO GAZETTE-JOURNAL STEVE FALCONE, BUSINESS EDITOR: PHONE, 788-6322; FAX. 788-6458 TODAY'S HoMsimg starts hit six-year high in 994 1988, the Commerce Department reported. Single-family starts jumped 6.2 percent to 1.20 million units, up from 1 1 3 million in 1 993 and the most since foundations were poured for 1.43 million units in 1978. Analysts attributed the strength in the single-family sector to growth in jobs and incomes that offset higher borrowing costs.

In addition, they said nearly 60 percent of homes were financed with less-expensive adjustable rate mortgages at year's end, compared with just 15 percent earlier in the year. Staff and wire service reports builders generally are saying buyer traffic is down and sales are slowing," said Tommy Thompson of Owensboro, president of the National Association of Home Builders. "We're obviously seeing the impact of the rate increases." And a Fed survey of regional economic conditions earlier this month found the single-family sector, which is particularly sensitive to rate changes, had slowed, although multifamily and commercial construction remained strong. Last year, builders broke ground on 1.45 million single-family homes and apartments, a 1 2.9 percent jump over 1993 and the largest number since 1.49 million in Bankers Association. The Fed's policy-making committee mans Jan.

31 -Feb. 1, and Lereah said he expected it to raise rates by half a percentage point. If so, it would be the seventh increase in a year designed to curb economic growth and forestall inflation. Stocks and bonds dropped after Friday's report as traders worried about the effect of higher rates on their holdings. Still, there were signs the increases so far totaling 2.5 percentage points may already be curbing the interest-sensitive housing industry.

The overall 1994 housing starts WASHINGTON Despite spiraling mortgage rates, housing construction surged in 1994 to a six-year high and strengthened analysts' convictions the Federal Reserve will boost borrowing costs even more to slow the economy. Through November, new home permitting in the Reno area followed the national trend with a double-digit increase in single-family home permits and an even bigger jump in multi-family home permits. "When the Fed sees a report like this, they'll say its obvious they're doing the right thing by hiking rates further," said David Lereah, an economist with the Mortgage Pickups, sport utilities are hot at auto show IT By Susan Skorupa GAZETTE JOI RNAL It's an autophile's dream this weekend at the Reno-Sparks Convention Center. Some 1 5 local auto dealers have filled the center with their newest models and inv ited the buyers and browsers to check them out at Au-toshow '95, an annual free event. The hot cars at this year's show aren't just cars they're pickups and sport utility vehicles, said Jim Minor, show spokesman.

No major storms are forecast for the weekend, which is a good sign for what's turned out to the biggest show in the event's 15-year history, he said. "We enjoy this show a lot," said Scott Call ister of St reeter Imports. Show visitors don't always let on whether they're seriously shopping or just browsing, Callister said. But the overall message the dealers get is that buyers want alue and safety in their vehicles. And they're becoming more de-manding and knowledgeable about the cars and trucks they buy.

Callister said Streeter's top entry at this year's show is Nissan's Maxima. With a price of about $27,000 on one model, the buyer gets "power everything, plus air bags, leather seats' and lots of extras. Prices don't seem to be scaring people off, Callister said. In fact, when the Maxima came out last summer, demand was so high it was selling for more than the sticker price. There's a good market this year for trucks and sport utility vehicles, said Randy Goldman of Dick Donnelly Audi Isuzu.

"Safety is a very big concern," he added. Goldman expected Isuzu's Trooper and Rodeo to do well as advance was held back slightly by a 1 percent decline in December. But the 1.53 million seasonally adjusted annual rate last month was second in 1 994 only to November, when housing starts reached a 1 .55 million rate. Overall Washoe County numbers for building permits, which preceed housing starts, reached 2,711 bv Nov. 30, an increase of nearlv 23 percent from first 11 months of 1993.

Multi-family permits totalled 652 throughout the county, a 1 50 percent increase from 1993's 259 permits issued from January through November. "Surveys are showing that Sterling Lacey of Reno was more concerned about prices. "I'm not used to that," he said of this year's auto prices. "That's why I'm waiting until next year to buy." But Lacey had a laundry list of vehicles he checked out at the show, including a Saab and a Dodge Ram truck. "I've owned Saabs before," he said.

"You have to give them time to develop. If you do that, they do fine. And I hear the Dodge Ram is sold out for the next year and a half." do the walking As an example, he said, a pizza shop could use the ThinPhone to keep track of customers and regular orders, by linking it to a computer in the store. Instead of having to train employees how to use the store's computer to retrieve information, they could call records up on the ThinPhone at the touch of a button while taking an order over the phone. The phone can also be programmed to take incoming calls and offer a menu of items from which customers can choose.

Pinato said users in such locations would be allowed to retrieve stock quotes, send electronic mail and access several databases through the ThinPhone. The ThinPhone was engineered by 2 '2-year-old Telechips, a small business based in Reno with about 1 3 employees. The phones are being manufactured by Custom Manufacturing Services. sticker on a Reno-Sparks David ParkerGazette Journal Buick Friday at Auto Show '95 at the Convention Center. BROWSING: Surrounded by signs, glass and sheet metal, Larry Galdieri of Sparks checks out the iuj GM, UAW end strike FLINT, Mich.

General Motors Corp. and the United Auto Workers union reached a tentative deal Friday ending a two-day walkout at a parts plant that had idled workers at all or parts of nine other plants. The deal was announced by UAW Region 1-C director Ruben Burks at a news conference Friday night. Officials gave no details and said they wouldn't be released until Sunday, when Local 65 1 members vote on the deal. If approved, it would end the walkout that began Wednesdav by 6,800 workers at the AC delco Flint East complex.

Workers walked off the job in a dispute ov er staff levels and outside contracting. Lowden backs Hacienda sale LAS VEG AS Sahara Gaming Corp. Chairman Paul Lowden says he will jecommend that his board of directors approve the sale of the Hacienda Hotel to former Circus Circus chairman William Bennett. Circus Circus has filed suit against Bennett, seeking to prevent the company's founder from buying the Hacienda. "I am prepared to Xecommend the approval of the agreement to the full board at this time," Lowden said of Bennett's offer to purchase the Hacienda for 80 million.

Lowden issued a statement Friday saying Bennett had been "fair and forthright during negotiations with us" and called his actions "indicative of his business and personal history." Entertainment conglomerate Viacom Inc. reached agreement to sell its cable television systems to a minority-led partnership that includes Tele-Communications the top U.S. cable operator, for about S2.3 billion. Shareholders of nearly 50 percent of the publicly held shares of Dart Group Corp. Friday sided with Ronald Haft in his fight for control of the company, saying they believe Dart would be better off in the hands of Ronald than with his father.

Herbert H. Haft. Pioneer Bancorp, parent company of Pioneer Citizens Bank of Nevada, reported unaudited earnings of $5.83 million, $2.76 per share, for 1 994, compared with 5 .04 million. $2.38 per share, in 1 993. The board declared a stock dividend of one share of stock for each five owned on Jan.

31. Mobil Corp. on Friday reported a 50 percent rise in fourth-quarter profits, citing improved chemical business that helped compensate for depressed revenues from weak oil prices. Adidas AG said Friday it is in negotiations with an unidentified buyer to sell the U.S. trademark of its Le Coq Sportif America unit.

Possible terms of the sale weren't disclosed. The QVC television home shopping network has changed the date of a broadcast highlighting Nevada products to April 1 Originally planned for March 24, the broadcast will feature products from 20 Nevada companies, including seven from northern Nevada. nam ii Cheers sale closed By Susan Skorupa GAZETTE JOURNAL Great American Casinos Inc. has purchased Cheers Hotel-Casino in downtown Reno for $3.75 million. Great American, a subsidiary of Great American Resorts of Atlanta, plans to rehabilitate the property on West Fourth Street, formerly owned by Bay-locq Nevada said Dewey Struble, the Atlanta company's local representative in the deal.

Baylocq will continue to operate the cabaret and casino a slots-only operation, Struble said. Cornerstone Management of Atlanta and Washington, D.C., will manage the hotel and restaurant, he said. It's possible the property could become a franchise of a national company, Struble said, but there are no definite agreements on such a plan. Most existing employees are expected to remain with the Cheers operations, Struble said. Cheers opened in 1 974 as the Reef Resort Inn Casino and went through a number of owners and financial setbacks before Baylocq purchased it in 1988 for $2.7 million.

Baylocq filed Chapter 11 bankruptcy several years ago, but the property has remained open. Great American Resorts owns hotels in Hilton Head Island, S.C., Gatlinburg, and Killarney, Ireland. will be sued if wrongdoing is found, she said. "We had a licensing case," Bingaman said. "We did not have another case at that time." Sporkin's confidence in questioning the prosecutors' judgment reflects his long career as enforcement chief at the Securities and Exchange Commission.

He dramatized his inquiries with several funny references to that career. When Bingaman began the hearing urging him to approve the pact; he quipped, "Will the government give me a pen to sign or can I use my own? I've got to have some role here." Citing his readings about Microsoft and legal filings submitted by Microsoft competitors and customers, Sporkin asked why a broad number of other complaints about the company weren't pursued. The auto show is an excellent place to shop, Lacey added. With all the models and colors in one place it's an easy way to compare not just the basic vehicles, but other factors such as paint jobs. But Lacey's companion Faye Craig had her own rule for car shopping: "Sit on all the vinyl seats first, because if you sit on the leather seats first, you won't be interested in the vinyl." Autoshow '95 continues today from 10 a.m.

to 9 p.m. and Sunday from 10 a.m. to 7 p.m. Admission is free. SMALL BUSINESS Phone lets your fingers really Judge hears justification for Microsoft settlement the show with the Trooper starting at about $22,000 and the Rodeo priced at less than that.

"People seem happy with those prices," he said. Sharon Thurman of Carson City was pretty serious about Toyota's Landcruiser on Friday, even after looking at the sport utility vehicle's $42,000 price tag. "I like everything about it," she said. With a 3'2-vear-old daughter, she's concernecf about safety. "This is the car," she said.

"You're safe in this. The price is not scary for what it is." ThinPhone ato said, the ThinPhone offers small businesses numerous opportunities to increase the efficiency of their computer systems. p- fb 1 W-" By James Bobbin GAZETTE-JOURNAL Have you ever thought your business could be far more efficient if only your phone could somehow talk to your computer? With Telechips new ThinPhone to debut this year that will soon become an easy problem to resolve, said Randy Pinato, vice president of sales and marketing of Telechips. The ThinPhone looks like a slightly oversized phone with a 5-by-6-inch video screen attached. The touchscreen links the user to what is essentially an IBM 386 computer inside.

The computer operates on Microsoft software with a megabyte of memory, offering several functions, including the ability to store documents, faxes and credit reports. But beyond its capabilities for many personal applications, Pin- MARKET DAY WASHINGTON (AP) The Justice Department and Microsoft Corp. defended their antitrust settlement Friday before a federal judge who sharply questioned its limited effect on the software company. U.S. District Judge Stanley Sporkin, after a day of heated and humorous exchanges over the agreement, said he would take a few more days before deciding whether to approve it.

The settlement forces Microsoft to change the way it sells, or licenses, operating system software to personal computer makers. Assistant Attorney General Anne Bingaman, the Justice Department's top antitrust prosecutor, told Sporkin the agreement reflected the case prosecutors knew they could win last summer, when it was made. The company is under scrutiny and January 20, 1995 DOW(lnduslmls) NYSE SAP 500 AM EX SP MldCip NASDAQ Stocks: Stocks ended Friday's session lower, but improved from their worst levels of the day, amid escalating fears of higher interest rates. The Dow Jones average of 30 industrial stocks closed at 3,869.43, down 1 2.78. The index sank as much as 35 points before trimming its losses near the end of the session.

Declining issues led advancers by nearly 2 to I on the New York Stock Exchange. Traders said a double options expiration added to the market's trading volume and volatility. Aggressive profit-taking in technology stocks pushed broad indexes lower. The NYSE's composite index fell 1.00 to 253.38. The Standard Poor's 500-stock index declined 2.

1 7 to 464.78. The Nasdaq composite index slid 6.3 1 to 762.24. The American Stock Exchange's market value index lost 1 .89 to close at 437.64. Technology stocks led the market lower, as investors took profits in these issues, and financial and insurance stocks sank on the prospect of higher interest rates. Apple Computer slid 3ft to 42, even after the company reported a quadruple gain in first-quarter earnings late Thursday.

Citicorp fell to 39. Auto stocks took big losses following a strike at General Motors' Flint, Mich, parts plant. GM fell to 39V2; Chrysler lost 2 ft to 47 ft, and Ford tumbled 1 to 26'4. CCurrency: The dollar extended its descent against the German mark Friday, capping anemic week for the U.S. currency.

It also lost ground against most of its other major counterparts except the Japanese yen. The dollar was quoted late in New York at 99.39 yen, recovering slightly from 99.08 late Thursday. Late in the day in New York, the dollar was changing hands at 1 .5 1 1 5 marks, down from 1 .5 1 50 marks late Thursday. Metals Precious metals rose moderately on New York's Commodity Exchange as investors sought safe haven from the falling U.S. dollar.

February gold rose 1 .80 to $385.40 a troy ounce; March silver rose 1.7 cents to $4.9 1 7 a troy ounce. Bonds: Treasury bond prices continued to deteriorate Friday as traders adjusted holdings ahead of note auctions next week while more news of a healthy economy heralded inflation and stoked fears of higher interest rates. The price of the Treasury's main 30-year bond fell 'A point, or about $7.50 per 1 ,000 in face value. Its yield, which moves in the opposite direction, rose to 7.88 percent from 7.82 percent Thursday. Shorter term Treasury securities also lost ground.

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