Behind the big drop in stock prices yesterday was the old buga boo of rising interest rates. And how they may affect corporate profits.
And if you really want to worry about interest rates, listen to this--it's from the latest examination of the U.S. economy by the O.E.C.D. That's a group of of countries dedicated to economic growth.
Anyway, it says the risk of future inflation is o great that interest rates are still not high enough. And short-term rates will have to rise substantially more by the end of next year.
Meanwhile, a huge almost merger in the pharmaceutical business. CIBA - Geigy, the big Swiss drug firm, spending more than $2.1 billion to acquire 49.9 percent of Chiron, a research oriented California biotech company. At a news conference they said they'll use their strengths to develop more vaccines and diagnostics. Under the agreement, CIBA will not be able to acquire all of Chiron for at least five years.
And at Time-Warner--the entertainment and media company-- now in the cellular telephone business began service yesterday in Rochester, New York. And they'll expand wherever they now offer cable-tv service. How will they expand: as new companies get wireless phone licenses from the government, Time-Warner will rent their circuits and re-sell them to its cell phone customers.
Finally, the latest survey...The Bureau of National Affairs--a Washington D.C. publisher-- says the vast majority of American companies--74 percent to be exact--give their employees a 4-day weekend over Thanksgiving. It also says 12 percent give their workers a Thanksgiving gift. Which more than half the time turns out to be.. what else? A turkey.
