Business Briefs

Reported by Star-Bulletin staff & wire

Tuesday, April 30, 1996

Japan officials press for air talks to begin

A delegation from Japan has asked U.S. officials in Washington to begin talks soon toward a new U.S.-Japan passenger aviation agreement. Officials from Japan's Transport Ministry and U.S. Departments of State and Transportation, began a two-day working meeting on Monday to discuss when aviation talks might begin.

Japanese sources said the Americans are concerned that reopening the passenger aviation agreement could bring restrictions to existing "beyond rights" in which U.S. airlines fly from Japan to other countries.

The Japanese said U.S. officials, however, may be prepared to talk about individual issues such as Japan Airlines' new Tokyo-Kona service, which was to begin April 1. The United States did not approve the route and is pressing Japan to approve United Airlines' applications for service from Osaka to Seoul.

Meanwhile, JAL has also asked for new Hiroshima-Honolulu rights and Continental applied for more Honolulu-Tokyo flights.


Consumer confidence surged in April

NEW YORK - Consumer confidence in the economy grew in April as worries over finding jobs dropped to a six-year low, the Conference Board reported on Tuesday.

The board's index shot up to 105.3 from a revised 98.4 in March, but was

little changed from the April 1995 reading of 104.6. The March 1996 figure initially was reported as 97.7.

"While consumers have been moderately content with business conditions for quite some time, the labor market - despite low unemployment - has caused concern," said Edgar R. Fiedler, Conference Board economist. "This month's improvement in consumer sentiment is largely attributable to less apprehension about employment."

The news gives further indication that another interest rate cut won't be necessary to stimulate the economy and gives ammunition to those who say higher rates might be in the offing.

The proportion of survey participants who see a tough job market fell from 26.2 percent to 21.3 percent, the lowest percentage in more than six years, according to the research group.


Phone company to buy 'Net provider for $2 billion

NEW YORK - MFS Communications Co., which has been one of the first major competitors to local phone companies, agreed on Tuesday to buy Internet access provider UUNet Technologies Inc. for $2 billion.

The deal broadens the communications services MFS can offer and gives UUNet a stronger financial footing to compete with regional Bell operating companies, AT&T Corp. and other carriers that are just starting to provide Internet access.

The price tag represents a significant premium over UUNet's market value, which was $1.37 billion based on Monday's closing stock price of $48.25.

The company's stock was up $9.12 at $57.37, a 19 percent jump, at closing Tuesday on the Nasdaq Stock Market. MFS stock was 6 cents higher at $34.68, also on Nasdaq.

MFS will pay 1.78 of its shares for each of UUNet's 32.5 million shares.


For more local, national and international business news, see the Hawaii Inc. section in today's Honolulu Star-Bulletin.



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