Business and City in Brief

Foreign earnings from finance rise

Net overseas earnings of British financial institutions rose 12.8 per cent to pounds 16.9bn in 1991, according to British Invisibles. Most of this came from income from overseas investments held on behalf of British savers, which rose 19.8 per cent to pounds 10.5bn. Net service earnings rose 3 per cent.

Car output up

Car production rose 18 per cent and commercial vehicle production was up 46 per cent in July from last year, according to official figures.

Gas downgrade

British Gas's credit rating on pounds 3.6bn of senior debt was cut from AAA to AA2 by Moody's Investors Service, the credit rating agency.

Gold slump

Gold futures prices in New York fell to life-of-contract lows of dollars 339.90 an ounce, amid concerns about low inflation. Meanwhile Russia and South Africa announced they were discussing how to co-ordinate their gold sales.

Loral wins

Loral Corp's dollars 475m offer won a bidding contest for LTV Corp's aerospace and defence unit. US Bankruptcy Court Judge Burton Lifland's ruling was an unexpected setback for rival bidder Martin Marietta Corp, to which he granted dollars 5m compensation for its failed bid.

Names' call

The Society of Names called for an 'enlightened outsider' to replace David Coleridge as chairman of the Lloyd's of London insurance market by October.

Japan surplus

Japan's trade surplus swelled in July to a record dollars 9.24bn, against dollars 6.6bn last year. The surplus is predicted to keep growing as long as the faltering domestic economy diminishes demand for imports.

Art recovery

Sotheby's said a gradual recovery in the art auction business was under way as it reported a modest rise in first-half sales and pre-tax profits of dollars 9.1m.

Miti concern

Japan is seeking a Gatt investigation of the North American Free Trade Agreement for possible violations of world trade rules. A Ministry of International Trade and Industry official said Tokyo was concerned by the car makers' rules in this week's pact between Mexico, Canada and the US.

Italy's weakness

Concern over the weakness of Italy's public finances has prompted Moody's Investors Service to downgrade the country's dollars 21bn foreign currency obligations to Aa3 from Aa1.

World Markets

New York: Share prices succumbed to profit-taking in late trading, leaving the Dow Jones Average down 7.56 points at 3,313.27 at the close.

Tokyo: The Nikkei average eased 5.62 to a 77-month low of 14,768.17 in thin volume.

Hong Kong: The stock market chaos in China discouraged investors. The Hang Seng index fell 22.08 to 5,857.11.

Sydney: Figures showing growth in the economy trimmed losses. The All Ordinaries index ended down 2.4 at 1,568.4.

Johannesburg: Institutions underpinned the market as the sharply weaker gold price sparked heavy selling. The overall index shed 53 to 3,155.

Milan: Weak bond prices led the MIB index 0.76 per cent lower at 785.

Frankfurt: The DAX index fell 0.80 per cent to 1,540.98, a low for the year, on currency fears.

Paris: Shares lost ground again, leaving the CAC index at a year's low of 1,722.36.

London: Report, page 23.