Business Briefs

Reported by Star-Bulletin staff & wire

Wednesday, July 2, 1997

Fed leaves interest rates
unchanged

WASHINGTON -- The Federal Reserve gave American borrowers a vacation from higher interest rates, opting Wednesday to wait and see if the economy's best inflation performance since the 1960s lasts deeper into the summer.

After a two-day meeting of its Federal Open Market Committee, the central bank signaled that it had left the benchmark federal funds rate on overnight loans between banks at 5.5 percent.

The decision had been widely expected and at first Wall Street showed little reaction. But the Dow Jones average of industrial stocks staged a late advance and came within about a point of breaking its June 20 record close. It finished the day at 7,795.38, up 73.05 points.

An increase in the benchmark rate would have quickly translated into higher borrowing costs for millions of businesses and consumers on everything from auto loans to credit cards. That would have slowed economic growth.

Enderton to lead
Oahu visitor group

Les Enderton, whose has worked in the advertising and airline industries in Hawaii, has been appointed executive director of the Waikiki-Oahu Visitors Association.

Enderton, 57, has been a management supervisor at Milici Valenti Ng Pack Advertising for two years. Previously, he ran his own advertising agency for 10 years, specializing in the tourist industry. He also was Hawaii regional sales manager for American Airlines for nine years and held a marketing post at Aloha Airlines.

WOVA, which has its $2.7 million annual budget, is the Oahu arm of the Hawaii Visitors & Convention Bureau. The association, whose elected and unpaid president is David Carey, president of Outrigger Hotels & Resorts, has been managed by the Kiley Co. under contract.

Recently WOVA decided to set up its own office with a full-time staff, like the HVCB neighbor island branches.

State opens Pier 8 to cruise vessels

Cruise vessels are now allowed to pick up and deliver passengers at Pier 8, on the Diamond Head side of the Aloha Tower Marketplace, under temporary approval granted by the state Department of Transportation.

It is for a limited time and on a space-available basis. The department said it is evaluating long-term uses for the pier and expects to terminate the cruise vessel use in the near future.

Cruise operators are advised to call the harbors division, 587-2057, for more information.

Financial seminar to focus
on African-Americans

A financial seminar will highlight the history and economic and entrepreneurial achievements of African-Americans in Hawaii and provide investment advice geared to their needs and opportunities.

American Express Financial Advisors Inc. will conduct the session at the Ala Moana Hotel on July 16, starting at 6 p.m. Speakers will include Bennie King, president of the Honolulu branch of the NAACP; Sandra Smiley, district manager of American Express Financial Advisors; and Kathryn Waddell Takara, assistant professor of ethnic studies at the University of Hawaii.

The seminar is free but seating is limited, the sponsors said. Monday is the deadline to make reservations. Call 942-7797, extension 144.

American Air
to cut fares for infants

WASHINGTON -- AMR Corp.'s American Airlines said it will begin offering half-price fares for children under 2 years old on domestic flights and U.S.-Canada service, in an effort to encourage parents to buy separate seats for their toddlers.

Bob Baker, American's executive vice president for operations, said today that children are "much safer in safety seats" even though the Federal Aviation Administration currently allows children younger than 2 to fly unrestrained on their parents' laps, Bloomberg News reported.

Baker said American won't require parents to buy tickets for small children, and the airline will continue to try to provide an open seat next to parents traveling with an infant or toddler who don't purchase a child ticket.

"On heavily booked flights, though, there is no guarantee that the seats can be kept available," Baker said, unless parents buy a separate seat for their children.

Parents who buy the half-price child seats must provide their own child safety seat, Baker said.