The Vancouver Sun from Vancouver, British Columbia, Canada • 45

CAREERS D5 BIRTHS D14 SECTION EDITOR HARVEY ENCHIN 605-2520 FAX 605-2320 E-mail henchin a pacpress.southam.ca The Vancouver Sun SATURDAY, OCTOBER 16, 1999 BUSINESS CanWest, Shaw agree on how to split WIC Inflation fears, Greenspan's comments shake markets Carving up WIC CanWest executive says everybody is getting what they want 'at a fair The stock market listings are in the section, beginning on page C3. TODAY IN BUSINESS HIGH ENERGY Higher energy prices were mostly to blame for a September inflation rate of 2.6 per cent, up from 2.1 per cent in August. D4 RECORD REPEAT Slocan Forest Products repeated its record-breaking financial performance for the third quarter. D4 VIEWS SHARPEN Ambassador Howard Balloch's upbeat views of China's future have acquired a sharp edge. Jonathan Manthorpe.

D3 ATTENTION TURNS Now that the parent of Sprint Canada is for sale, the company's customers and shareholders have turned their attention to Western Canada where a potential buyer may be poised to make a bid. D3 YYIU CZZilS and other assets. Meanwhile, Winnipeg-based CanWest Global would get WIC's nine television stations, and all of the company's interest in ROBTv and other assets. WIC television stations are in British Columbia, Alberta, Ontario and Quebec. Vancouver-based WIC is one of Canada's major broadcasters.

The assets involved include such well known properties as the Family Channel and Tele-toon and pay-TV services such as Superchannel and MovieMax! Tom Strike, senior executive vice-president at CanWest, said the deal satisfies each company's goals. "Everyone is getting what they want and we're all getting it at a fair consideration," he said in an interview. The additions of WIC's stations to CanWest's network will give it almost coast to coast TV coverage across the country, excluding Newfoundland. Particularly it gives the big private broadcaster stations in Alberta, where it currently doesn't have any. "This is an important asset, that's why we went after it," he said.

The agreement comes about 18 months after Shaw and Can-West announced a $950-raillion, deal that would see the two companies carve ujvJWIC after a bitter battle between them for control of the Vancouver broadcaster. However, the original deal col- CanWest Global Headquarters: Winnipeg Already owns: stations in Vancouver, Saskatoon, Regina, and Winnipeg; Global TV in Ontario and MITV in the Atlantic provinces. Also has interests in television networks in Australia, Ireland and North Ireland and television and radio networks in New Zealand. Shaw Communications Headquarters: Calgary; second-largest cable television operator in Canada. Already owns: Offers cable service to 1.4 million customers across Canada.

Is the parent company to Corus Entertainment which holds all of Shaw's media assets. 78 Corus Entertainment Headquarters: Toronto; Has radio network, interests in specialty television channels. Already owns: 14 radio stations in major centres such as Toronto, Edmonton, Calgary and Vancouver. ufc Specialty channels such as youth channel YTV, pre-! schooler channel Treehouse, interests in Country Music Television, Teletoon, Tele-latino and the Comedy Network. GILLIAN LIVINGSTON CANADIAN PRESS After almost a year and a half of discussions, CanWest Global and Shaw Communications have finally reached a deal to split up the broadcasting assets of WIC Western International Communications.

Under the proposed deal, announced Friday, Calgary-based Shaw would get WIC's interest in Canadian Satellite Communications also known as Cancom. Shaw's media division, Corns Entertainment, would get WIC's 12 radio stations, pay and specialty television channels 'Some decisions due on BCTVs future DAVID HOGBEN VANCOUVER SUN The company that could end up owning two Vancouver television stations says it has not decided what it will do with them if the acquisition is successful. CanWest Global executive vice-president Tom Strike says his company has not yet decided how it will satisfy regulators if it succeeds in acquiring BCTV in a deal announced Friday. CanWest already owns Glob so it could be required to sell one station if it succeeds in ac- quiring two networks in the same city. "We have some decisions to SEE BCTV, D2 War, fancy DAVID HOGBEN VANCOUVER SUN Televised images of a terrifying European war and a selection of larger, fancier vessels helped the Vancouver cruise ship industry record its 18th consecutive year of growth in 1999.

The Vancouver Port Authority announced Friday that cruise ships brought 947,659 passen TV stations: BCTV, Vancouver; CHEK, Victoria; CHBC, Kelowna; RDTV, Red Deer, CICT Calgary, CISA, Lethbridge, ITV, Edmonton; ONtv, southern Ontario; CFCF, Montreal; Interest in ROBTv and other related broadcasting interests. Satellite services: 54 per cent interest in Cancom. Specialty channels: Interests in Family Channel, Teletoon; pay-TV services such as Superchannel and and other related assets. Radio stations: CKNW, Rock 101, Vancouver; QR77, Power 107 Calgary; CHED, Power 92, Edmonton; CJ0B, Power 97, Winnipeg; CHML, Y95, Hamilton; Q107, Talk 640, Toronto. us," public affairs director Linda Morris said.

Morris said the addition of so-called "pocket cruises" will help boost cruise traffic. And despite this week's decision by the provincial government to cancel the new trade and convention centre which was to SEE CRUISE, D2 BARBARA AARSTEINSEN SUN BUSINESS REPORTER WITH SOUTHAM NEWS Stock markets around the world ended the week on a down note, rattled by inflation fears and unsettling comments by US. Federal Reserve chair Alan Greenspan about market risk. The Toronto Stock Exchange 300 composite index fell 85.25 or 1.2 per cent to 6,884.40, down 3.3 per cent for the week. The Dow Jones Industrial Average plunged 266.90 or 2.6 per cent to 10,019.71 its biggest loss in more than a year.

At one point, it briefly dipped below 10,000. The SSd? gave up 36.01 or 2.8 per cent, declining to 1,247.41. while the Nasdaq composite index was off75.01 or 2.7 per cent at 2731.83. For the week, the Dow was down 630 points or 5.9 per cent. The 500 gave up 6.6 per cent, and the Nasdaq lost 5.4 per cent its worst week since July.

The Dow reached 10,000 for the first time in April and went on to hit a record high of 11,326.04 Aug. 25. Friday's drop officially signals a full-scale correction from that peak.A major correction is 10 SEE MARKETS, DI5 Airline fight will harm industry, Benson says BRUCE CONST ANTINEAU SUN BUSINESS REPORTER with CANADIAN PRESS The best interests of the Canadian airline industry will soon be lost if the proposed merger of Canadian Airlines and Air panada becomes a battle between two global airline alliances, Canadian Airlines president Keven Benson warned Friday. "The structure that we're operating in is broken and neither Air Canada or Canadian is doing very well in that structure," Benson told reporters after a speech to the Vancouver Board of Trade. "To have the two alliance groups step in and supply financial support in the merger fight doesn't do anything to address that It might be good for the SEE AIRLINES, D2 attention nearly 40 years ago, which is that economies are not closed or self-contained, but are subject to the actions of other countries.

The ill-conceived approach of these proponents of higher taxation has been a one-way ticket to what they euphemistically refer to as "unintended consequences." That's code for poor economic results caused by ill-founded economic assumptions. If a debate were arranged between the likes of Maude Barlow, Ken Georgetti or anyone else from the old left, and Robert Mundell, who would you put your money on? Unfortunately, for the past 25 years in Canada we've been betting on the wrong people and the results are clear a dollar that has eroded our standard of living, $42 billion in annual interest payments and the highest tax burden in history. ii record cruise season Markets VSE TSE300 TSE100 TSE35 410.59 6884.44 417.84 397.26 406.58 3629.80 10,019.71 1,247.41 2731.83 5909.10 17,601.57 $.6726 1.4868 60 MONTREAL DOW 30 NASDAQ L0NDFT100 NIKKEI HANG SENG CANADIANS 75.01 $.0028 $.0062 $.0132 na $.0204 A (if t' A EURO CON in A UK POUND GOLD (N.Y.) SILVER (N.Y.) pW-Dww $2.4825 $314.90 US $2.20 $5.35 US Int.) $.35 Stock Watch Corel drops after1 CEO charged with Insider trading 15 Friday's close: $8.70 Down: 75 cents 12 Oct. 1598 -Oct. 1599 Source: Bloomberg The share price of Corel Corp.

fell 75 cents or 7.9 per cent to $8.70 in Toronto trading Friday, in wake of the news that the software company's chair and chief executive has been charged with insider trading. Corel's flamboyant founder, Michael Cowpland, was charged Thursday by the Ontario Securities Commission with three counts of violating Ontario securities law. It's alleged that he sold $20.4 million in Corel stock through his holding company, M.C.J.C. Holdings a month before Corel announced a 1997 third-quarter loss. Corel and Cowpland have denied the allegations.

Vancouver Sun Virtually ym m4 Jumw Nobel winner Mundell largely ignored in Canada SEE WIC, D2 SB ilia 3I.S8 ships propel gers to the city, an increase of 8.5 per cent over last year. Port authority chair David Stowe estimated the industry injected $300 million into the local economy. In 1999, there were 309 sailings, compared with 294 in 1998, and the average number of passengers per ship increased by three per cent. Michael Campbell Many US. politicians credit the economic boom to Mundell's policies.

The Europeans hail him as the godfather of the euro. fessional activism, they have seen fit to ignore his advice. Actually, I would bet that no members of our current governing parties even knew who he was before Wednesday's announcement, and that's even more frightening when you consider that they're the ones making policy. On the other hand, many American politicians credit his Siolicy recommendations as the oundation of the current 17-year economic expansion and bull market in the States. In Europe, he's hailed as the godfa all words, economics is not some abstract theoretical exercise: "The issue in economics is, does it work?" Think about his recipe for making countries richer.

Mundell prescribes the need for free trade, a solid currency, low inflation and low taxes. His research has led him to conclude that "taxes are the arterial sclerosis of the economy. They gum up the veins of business." My question for Paul Martin and Jean Chretien is considering you've ignored the advice of the overwhelming majority of economists regarding taxes will you now listen to arguably the most important economist in the world? I doubt it. Take a moment and think about the people who consistently oppose lower taxes, free trade and a solid currency. They fail to appreciate what Mundell brought to the world's The industry's steady long-term growth has accelerated in recent years.

In 1995, fewer than 600,000 cruise ship passengers came through Vancouver. Next year, the industry expects to record its 19th consecutive year of growth. "It looks like we might hit the million-passenger mark, hopefully that will be a big event for ther of the common currency. The best summation of Mundell's work I have read came from Robert Findley, former chair of the department of economics at Columbia University. Findley recently stated that of international economic understanding begins with what's called the Mundell-Fleming model (named after Mundell and Scottish economist Isaac Fleming) and ends there as well.

Mundell is not some ivory-tower intellectual. In his own DEFINE YOUR OPTIONS. MM If you enjoy life's little ironies, then the awarding Wednesday of the Nobel Prize to one of the most influential economists in my life, Robert Mundell, is a beauty. This guy is also arguably the most influential economist in the world, but nonetheless has been largely ignored in this, his home country. It's also ironic that he's just like the previous two Nobel Prize-winning Canadian economists this decade in that he works in the United States.

Of course, the brain drain doesn't exist. I hope his award will be an inspiration to Canadians, and especially B.C. residents, because he was raised here and attended UBC. I also hope his award is an embarrassment to the politi-, cians who govern us, because with their backgrounds of law, social work, teaching and pro- If you're looking for a Job In high tech, or have a need for skilled professionals, YOU'LL FIND IT HERE. This one day event will give participants an opportunity to glean the LATEST IN CAREER TRENDS in the technology sector througH seminars, as well as meet with major employers about their JOB OPENINGS.

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