Ironwood Daily Globe from Ironwood, Michigan on September 1, 1998 · Page 4
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September 1, 1998

Ironwood Daily Globe from Ironwood, Michigan · Page 4

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Ironwood, Michigan
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Tuesday, September 1, 1998
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THE DAILY GLOBE. Ironwood, Ml — Tuesday. Sept. 1,1998 Page 6 Business Briefs Ironwood motel honored «& MINNEAPOLIS — Americlnn Motel & Suites, of Ironwood, has ranked in the top 10 percent in quality assurance excellence, according to the chain's corporate office, Americlnn Internationa!, LLC. The excellence award places the motel among the best of the Ameri- clnns in the chain for the evaluation completed in spring of 1998. "The staff at the Americlnn Motel & Suites of Ironwood maintains very high quality standards and is dedicated to guest satisfaction," said Luke Fowler, Americlnn CEO. This motel staff goes the extra mile for their guests with the best service, cleanliness and amenities." Americlnn has more than 140 open or under construction.' Heritage workshop scheduled - ST. IGNACE — A workshop on use of cultural/heritage assets in community-based tourism development is set here Sept. 16 from 8a.m. to 4p.m. (ET.) It will be at the State Street • Village Inn, sponsored by Michigan State University Extension. Bernie Mazcyk, a--native of Summerville, S.C., will be keynote speaker. With 15 years ex- perience in community development, he is senior program officer and director of Neighborhoods Energized to Win. Case studies of grassroots community development efforts will be on the agenda. For a workshop brochure or more information, contact Rita Hod gins at (906)228-4830. Home sales cool in July WASHINGTON (AP) — Sales of new single family homes cooled in July from a record-burning pace that had been fueled by growing American incomes and low interest rates. July sales dropped 1.6 percent to a seasonally adjusted annual rate of 886,000,.the Commerce Department said Monday. That was the lowest new-home sales rate since March, and followed record-breaking months in April and June. • June's high, however, was less impressive than first thought, coming in at 900,000 units instead of the 935,000 units originally reported. Still, new-home sales during the first seven months of this year have been 9.8 percent higher than in 1997. Northwest has money in bank MINNEAPOLIS (AP) — With a strike survival fund of $3 billion, Northwest Airlines appears able to engage in a long staredown with its striking pilots. The pilots have set aside about $65 million, too, begging the question: How long will this strike last? President Clinton on Monday said he asked Transportation Secretary Rodney Slater to meet with both sides in an attempt to restart negotiations to end the dispute. Clinton did not say when such a meeting might occur. US West workers return DENVER (AP) — Some 34,000 U S West employees began returning to work Monday after a tentative settlement was reached in a strike that forced customers to wait for phone repairs and installations. . , ,.-.: 4 In addition to a wage hike, the proposed.three-year contract includes the union's goal of limits on mandatory overtime, while setting up a performance-pay plan the company wanted but making it voluntary. It ia in line with agreements the Communications Workers of America has reached with other regional Baby Bell companies, said Sue Pisha, a negotiator for the union. IBM to sell Global Network NEW YORK (AP) — IBM is looking to sell its Global Network operations, which could fetch as much as $4 billion, The Wall Street Journal reported today. The network blossomed from a .phone system linking the company's outposts into one of the world's largest communications systems. It transmits corporate data for about 30,000 customers in 50 countries. Companies use the network to link computers that are far apart, to accept orders from customers and to connect to the Internet. The network employs about 6,000 people. The Journal said industry estimates peg its revenue at $2 billion, about 2.5 percent of IBM's 1997 revenue. A spokesman for IBM, based in Armonk, N.Y., declined to comment. Daily Globe comic strips are fun! AJ» Lutrphoto Traders at the Sydney, Australia. Futures Exchange are active this morning. The Australian market lost ground, following the U.S. stock market's Monday plunge. Clinton administration reassures investors WASHINGTON (AP) — Even as they seek to reassure nervous American investors, Clinton administration officials are scrambling to keep up with spreading global financial turmoil. The world is currently working its way through a difficult period," said Treasury Secretary Robert Rubin. In a rare statement to reporters after the second-biggest point drop in Wall Street history Monday, Rubin said he spent much of the vacation from which he had just returned "on the phone." There have been intense discussion over the past few days," the Treasury secretary said, including a call to Air Force One, which was carrying President Clinton to a summit meeting with Russian President Boris Yeltsin when back home the Dow Jones industrial average closed down more than 512 points. Rubin said he had also talked Monday with Federal Reserve Chairman Alan Greenspan, stock market regulators at the Securities and Exchange Commission" and finance officials around the world. After the frenzied consultations, Rubin assured Americans, The fundamentals of the United States economy are strong. Prospects for growth, low unemployment, low inflation continue to be strong." Calls, nevertheless, came from several quarters for action to protect U.S. finances. The National Association of Manufacturers recommended that the Federal Reserve cut interest rates to improve other countries' access to American capital, as did Rep. Jim Saxton, R-N.J., chairman of the congressional Joint Economic Committee. "Interest rates are a dangerous drag on the economy in view of the fact that a third of thfe world economy is .in recession," said NAM President Jerry Jasinowski. Some analysts warned, however, that there may not be much for U.S. officials to do "We have a wildfire in the international economy and no one really knows how to control the fire," said economist Sung Won Sohn of Norwest Corp. in Minneapolis. "I don't think the U.S. economy will come out unscathed." Rubin said it was particularly important that Japan, the world's second-largest economy, "move ahead with actions to put its economy back oft track so that it can be a source of strength for the rest of the world." The Treasury Secretary also entreated Republicans in Congress to authorize U.S. contributions to the International Monetary Fund, which helps support countries in financial trouble. "It is important to receive full IMF funding so that the IMF will have sufficient resources to respond to crises," he said. Aboard Air Force One, White House economic adviser Gene Sperling also pushed Congress for the funding that Clinton has requested for the IMF, which is running low on money because of its attempted bailouts of Russia and Asian countries. World markets head down, but Japan's higher By THOMAS WAGNER AP Writer TOKYO (AP) — For the second straight day, Japan's stock market defied the example of Wall Street and nearly every other major index in the world and closed sharply higher today. But many analysts saw no sign of an extended recovery — given how wildly the stocks gyrated — and some pointed at a temporary intervention by government- linked pension funds. At the same time, Japan's chief economic planner sounded far shakier than Treasury Secretary Robert Rubin, who tried to reas- Bure Americans that despite the big 512-point fall Monday on Wall Street .the country's economic fundamentals remain sound. Japan's economy is "now going through one of its darkest stages," said Taichi Sakaiya, who recently urged world leaders to hold a summit to discuss the global market chaos. Stock markets in Tokyo, Hong Kong and Singapore opened sharply lower today in reaction to Monday's 6.4 percent decline by the Dow Jones Industrial Average. By the end of the day. Hong Kong's blue-chip Hang Seng Index had closed down 212.57 points, or 2.9 percent, at 7,062.47; and Singapore's Straits Times Index had fallen 33.1 points, or 3.8 percent, to 823.37, a new 12-year low. Europe's two biggest markets also opened lower. London's Financial Times- Stock Exchange 100-share index was off .2.6 percent at 5,113.8 in early trading. In Frankfurt, the blue chip Xetra DAX index was off by 2 percent at 4,713.77 in the morning. However, it didn't take long for signs^of recovery to emerge in Japan, the world's second-largest economy. By mid-day today, the benchmark 225-isaue Nikkei Stock Average had narrowed its loss to 1-27 percent, and by closing it stood at 14,369.63, up 261.74, or 1.86 percent. The Nikkei also defied the odds of the world markets on Monday when it finishing 1.38 percent higher. But the index, which fell to a 12-year low on Friday, swung wildly in a 70O-point range today. And many analysts dismissed this week's recovery as a short technical rebound, pointing out that many of the major problems weighing on Japan's economy and stocks remained in place. "Investors were frightened following the plunge on Wall Street, but buying by government-linked pension funds and hedge funds put a brake on the sell-off," said Sachio lahikawa, general manager of the stock division at Chuo Securities. Ken Okamura, a strategist at Dresdner Kleinwort Benson, said today's rise was a temporary reprieve and that the Nikkei could fall below 14,000. again if U.S stocks weaken further. The Japanese government is nowhere near solving the problems with its indebted banks, so there is a big danger that we will see the stock market fall even further," said Yoshio Inamura, a fund manager at Tokyo Mitsubishi Asset Management. On Monday, the Dow closed at 7,539.07, off 4.7 percent for the year. It also could be moving toward its first bear market since 1990. Even in Asia — where financial crisis has become commonplace for more than a year — Wall Street's tumble, Russia's political and economic crisis, and the shakiness of some Latin American markets seem to be heightening the sense of panic. There is a feeling that there is no easy way out of this mess because it has deepened and broadened to the point that authorities have been overwhelmed by the markets, not just in Asia but in the West," said Cameron Umetsu, a senior currency strategist at Warburg Dillon Read in Tokyo. To make matters worse, more bad news surfaced in Asia. In Japan, the government sharply criticized communist North Korea for firing a long- range ballistic missile over Japan's main island and into the Pacific Ocean on Monday. Like U.S. officials, the Japanese government sees the test as a dangerous development for the region's security. In Hong Kong, investors found out that Standard and Poor's in New York had just lowered the credit rating of the territory's ability to repay its debt, both in local and foreign currency. Standard and Poor's cited the severity of Hong Kong's recession and the government's recent round of intervention in the stock and stock futures markets, which it called "an increasingly complex and risky strategy" to defend the territory's currency. The government spent an estimated 15 percent of its $96 billion in foreign reserves to prop up the stock market in a two-week battle with speculators. On Monday, when the government stopped its buying, the stock index plunged 7.1 percent. KODAK VIDEO TAPE CASSETTE 8mm120min. i Camera & Sound Main Street, Ironwood 932-3901 Spinning the Sports r FOOTBALL m " " your football picking skills against our "Spinning the Sports Globe" team and win. Each week, the best football picker in our area will win a gift certificate from one of the participating sponsors, drawn at random. Drop your entry blank (below) at The Daily Globe by Friday or mail it (with a Friday postmark at the latest) and you're eligible to win. Only Daily Globe entry forms are eligible. (No Copies). The score of Monday's Game will be used as a tie-breaker. In case of a second tie, the winner will be selected by random drawing. (One Winner Per Week Only). No Purchase Necessary—Forms Available (One Per Person) At The Dally Globe. NFL, week 1 Sunday's Games Atlanta-Carolina-Detroit-Green Bay-Jacksonville-Chicago— -New Orleans-St. Louis-Pittsburgh-Baltimore— -Seattlei^hiHie -Tampa Bay-Minnesota-Tennessee-Cincinnati— -Washington-NY Giants-Arizona-Dallas -Buffalo-San Diego -Miami-Indianapolis -NY Jets-San Fran-Oakland-KC- NAME:. Monday's Game New England-Denver- ADDRESS:. STATE: .ZIP:. PHONE:

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