The Knoxville News-Sentinel from Knoxville, Tennessee • 22

The Knoxville News-Sentinel Saturday February 11 1989 1 I v--o' w' 1-' -s 4 f4 i -fe w-j ri -fh '( 4 I 4 -V 1 t'-u: i cs It Some banks raise prime rate tightening of credit in an attempt to curb inflation The prime rate reflects a costs of borrowing money including interest it pays on savings accounts and certificates of deposit and generally reflects more subtle increases in other interest rates cent to HL5 percent was Nov 28L Several Knoxville banks including First Tennessee First American and Third National' followed suit Friday afternoon raising their prime rates from percent to 11 percent Chicago-based Continental I -NEW YORK The nation's biggest banks Friday increased their prime lending rates to 11 percent from 1IU percent ra-: fleeting the continuing rise of in- terest rates on financial markets i 1 It was the first increase this year in the mime rate which banks use as a benchmark for setting interest on a variety of consumer and corporate loans and put the rate at its highest since it was 1075 percent in late 1984- i-The last increase from 10 per Bank and Republic National Bank of New York were the- first to boast their prime rates and soon were followed by Citibank the bank largest bank Chemical The rate is watched closely because bankers use it as a basis for calculating interest on corporate loans and for determining many types of fixed and adjustable-rate consumer loans such as home equity loam Bank and other major banks Rates have been rising due partly to the Federal January price rise sharpest in 3 years some analysts see signs of Inflation Throwback to 1960s Labor Department said economic performance The increase was paced by the Private economists skeptical WASHINGTON Wholesale steepest increase in food prices in about that rosy scenario have in January shot up at their a year the largest rise in energy been predicting slower growth pace in nearly three years prices in two years and sharply this year and warned that the lat- the government aaid Friday in a higher costs in a variety of other est report from the Labor Depart- report that analysts warned could categories as welL- ment could lead the Fed to boost signal spiraling Inflation in 1989 The first inflation report aince interest rates to restrain the unexpected 1 per- the change in administrations economy and keep inflation in cent rise in the Producer Price brought no good news for Presi-' check1 Index for finished goods was the dent Bush who Just a day earlier repot signals that the biggest monthly increase since an unveiled budget and deficit-re- economy has launched into an- identical surge in October 1985 duction plans pinned on optimis- other rignificant racheting upland wu equivalent to a IL7 per- tic assumptions for foiling infla- lual rate of inflation the tion aim a cent annual rate of inflation the tion and a strong overall Allen Sinai of the Boston Ca Norimasa Furuta Mazda Motor Corp president stands beside the new Mazda MX-5 Miata a lightweight convertible after its unveiling Thursday at the Chicago Auto Show The roadster a throwback to the '60s aims at a pari of the US car market with no competition PBS Channel 15 is 2 years off fT Stocks hit with yeais biggest selloff By JACK LAIL NMM-8antlnl buskWM adltor the over-the-counter: market By Associated Prow Thomas Feil the consider chairman said he might Aft-1- Losers among the Hue "chips: included International Business Machines down 1 at 125 Ford -Motor down IK at 53' General Electric down at 46 Ameri- can Exprs down 1 at 30 and Philip Morris down 1 it107 an offer for the stock hi public hands The composite index of all its listed common stocks dropped 212 to 16401 The NASDAQ composite index for the over-the-counter market skidded 402 to 402J7 At the American Stock Exchange the market value index closed at 32277 down 2J9 tion from Lincoln Memorial University in Harrogate Curtis said he is negotiating with WBIR-TV to locate Channel 158 transmitter antenna on its Ridge tower While the Federal Communications Commission has awarded the permit to the local not-for-profit corporation the construction permit has yet to be issued said Robert Stone the lawyer for East Tennessee Public Communications Corpi Stone has been prodding the commission to issue the- permit and it may already be in the mail he said Once the permit is issued East Tennessee Public Communications Corp will have two years to begin operating Curtis said federal grants are being sought in connection with the Channel 15 The channel has been sought because it would allow TV viewers in Knoxville who are not on cable to view PBS programming or get better reception Just no local Curtis said "We are the largest city in the United States that does not have its own public television Curtis said With Channel 15 well get a uniform signal over all of Quamtila 2 and 15 would air the same PBS programming but would have different programming part of the day Channel 15 would use the same studio facilities in the University of Communications Building and would do Joint fond raising with Channel 2 NEW YORK The stock market took its sharpest drop of the year Friday in a selloff prompted by new inflation wor- ries and rising interest rates The Dow Jones average of 30 industrials foil 3697 to 28607 extending its loss for the week to 4118 points 4 The last time the average recorded a bigger one-day decline was Nov 11 when it tumbled 3859 points 1 A new public television chan-ynel that would give Knoxville viewers better television recep-tion of Public Broadcasting Service programming is still about two years away everything goes' right hopefully well sign on within the next two years probably go into a capital fund drive in the next few months" said Curtis of East Tennessee Public Com- iqunications Corp 'East Tennessee also operates I WSJK-TV Channel 2 that trans-' mits from a tower in Sneed ville it The FCC awarded Channel 15 to East Tennessee Public Com- niunications Corpi over two other applicants including an applica Eastman Kodak '-which cussed cost-cutting plans man- -aged a gain to 48 Williams Cos dropped 1 to 30 The companv-reported a $161 million loss rf the fourth quarter Band climbed 1 to 10 in j- IV Big band AM station ups power By LAURA SIMMONS 1 Newa-SentiMl business writer mm i TT i WQBB-AM 1040 is expected to nearly double its broadcasting early area and switch to digital stereo GMX acquired the Knoxville station when it purchased Holder Communications of Tampa' Fla The company kept FM stations but sold the AM station Staley said After years of stations switch ing from AM to FM AM stereo is becoming more popular the general manager said Chrysler Plymouth Dodge and AMCs Jeep models now carry AM stereo radios that are a lot more interesting and fun" Staley said While the big band format attracts listeners mainly over age 35 the station is also going after a younger audience with additional programming For example WQBB is trying -to market the Goklen Age of Radio Theater to students by taking brochures to schools The programs airs following the 5 pm news Staley says he wants the station now that it is locally owned to become more involved in community affairs WQBB sponsored the Tommy Dorsey and Artie Shaw bands concerts at the Bijou Theater and the Jerry Collins Orchestra performance at First NightfesL 1 sound when it signs on this morning-v The big band station has gained Federal Communications I Commission approval to boost its 'transmitting power from 2JS00 watts to 11000 watts s- -Instead of being Just a local i station well be covering most of j-SBt'Tennessee" general manager Jim Staley said Staley and his sister Elizabeth 'Richards purchased the station i (ast May from GMX Communica- tions in Nashville SELL YOUR GAR FAST FM stations produce a deeper range of sounds but AM stations can overcome that deficit by adding digital and stereo equipment he said people did give AM a chance they would find things I Briefs $18 billion withdrawn from thrifts in December Read House the city's oldest hotel could be forced into a bankruptcy reorganization unless it finds a new owner in the next three weeks Federal trustee William Sonnenburg moved Thursday to place the 83-year-old hotel under control of the US Bankruptcy Court because the Read House owes about $400000 in payroll taxes CALIf TODAY! VQj East Tennessee counties call tblEfree: 1-800-237-9077 Fixed-rate mortgages higher 1 WASHINGTON Savers withdrew a record $81 Mllion from the nation's thrift institutions in December but $34 billion of the total was accounted for by a single healthy institution which was shrinking deposits as part of a deliberate strategy the government said Friday The withdrawals topped the one-month record of $70 billion set in November bringing tbe net outflow for two months to $151 billion 'said the Federal Home Loan Bank Board which regulates 2JU5 federally insured savings institutions Bert Ely a financial institutions analyst in Alexandria Vn said money was moving out of because their interest rates are moving up mine slowing than other investments not because depositors were nervous -is- WASHINGTON Fixed-rate home mortgages currently are averaging 1058 yy percent according to a national survey released Friday by the Federal Home Loan Mortgage "Corn 'v That rate was up slightly from a rate of 10J5 percent last week lV On one-year adjustable rate mortgages -lenders were asking an average initial rate of 861 percent this week up from 8J6 percent the week before Freddie Mac said Provident earnings up for 1988 i 'S i V4 Jw CHATTANOOGA Provident Life and Accident Insurance Co reported a 1988 net income of $911 million compared with $919 million in 1987 company officials said v' 1' A The Chattanooga insurance company had perating earnings $813 sharply increased operating earnings Holiday Covp earnings down MEMPHIS Holiday Corpi reported a decline in net income for 1988 despite 87 -percent increase in operating income over 1987 Tj company officials said TTie company reported 1988 eamingsbf $470 per share from continuing operations before $3117 property transactions of $3117 million That wfo 'v mtl Itfiri 1 million or $183 per share last year thanks to -strong recovery by its group lire and health 'division Bankruptcy threatens hotel compares to earnings of $482 a share on operating income million for 1987 'CHATTANOOGA The historic Radission company officials said WedneaJay GREAT RATES! -v "41 -'-'-V' HN ft TlM-lmMl IOMOO Ik IMMOlmaSM(IW-M ISS-7M0saSIMWKtm-a0L tmm 71JO-7100 tar 400 Km oo 1000 S-OMjOO Mghar TOO 7T00-MJ0 BUMrtui ew 11 Pflraanl ml la ptebuOiipaantlMdaiiMiaitfa S0MM a (OJM-IOOlOOs 000400 a ra aW OHMOO a SOOlOO-TOOlOO in a I paenl ana can aw OOM-mn a woonm knf an rn Cl I pare yra aw on a IS pafoank laada aaw la a 0040400 HMCO ao no-MOO a an Mono ana ptaoma coaa 0 parent 7000-MJO: 00-700 a TOJO-TOM 70004)00 Slaiaea aa earn kwaiap Maaaa aw ha law yMy S4 400000 NW OraiUn aa 00-M70c MMOO 100 860 euiar end baaa na4 IMwfeiK tartfiavMh mee53o0 NgNr I GREAT RESULTS! 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