BRITISH TRADE REVIEW

Auckland Star, Volume LXVII, Issue 140, 15 June 1936, Page 4

BRITISH TRADE REVIEW

FRANC'S FATE UNCERTAIN. INCREASED COMPANY PROFITS. BUTTER A GOOD FEATURE. (Received 10 a.m.) c LONDON, June 14. Despite M. .Blum's declaration that lie e docs not intend to devalue the franc, ;t is <still a subject- of recurring selling pressure. The city is adhering to the 11 view that while devaluation may be temc porarily staved off it is ultimately inevitable, especially as M. Blum's labour .. programme must enormously raise French costs. s All important effect of the franc cris-s t has been to accentuate the season.-l [i tightening of short term interest rates t . owing to operations 'by the exchange ii equalisation fund. The Government has been forced to pay 18/1 per cent for Treasury bills, the highest rate in two i years. t Stock markets are still quiet. Exceps tionally good May unemployment figures, the best for six years, have heartened in- . vestoi'6, while firmness in Wall Street has .[ reacted favourably in London. Gilt-edged u picked up as a result of bear covering and :1 further heavy French purchases. lndusr trials are quiet, but Cables and Wireless a improved from la.it year's low levels. s Company reports, showing better profits f are gratifying though some fear they may f encourage a labour demand for higher s wages. Negotiations thereon are already proceeding in some industries, but there is no fear of the strike movement spreading to England. , Commodities continue apathetic, a , notable exception being butter, which - sharply appreciated owing to speculative i and general 'buying. The Continent failed < to augment seasonal decreases of Empiie = arrivals. Low retail prices due to intense competition has strengthened the demand, creating an extra strain on supplies. Prices developed irregularity towards the weekend owing to profit taking, but optimism is the keynote of the trade, especially as cold store stocks are believed to bo little altered in the last fortnight, although normally they tend to increase at this time of the year. Too Many Apples. The poor condition of the apple market is believed to be due to the fact that shipments are insufficiently spread out, consequently quantities recently and - presently offering are considerably larger • than at the corresponding period last year. ; The trade has considered the advisability : of cold storing some of the fruit for higher prices next month, but in view of , their advanced condition it decided that i it waS too risky. A similar decline of ■ values is reported at Liverpool for the i same reasons. Pears, however, are in good i demand, prices showing a definite improvc- , ment. Tegs from Taihape. The New Zealand Meat Producers' I Board has displayed at Smithfield lambs, , tegs from the Taihape A. and P. show, , with a view to ascertaining whether they are suitable for the London market. While of excellent shape and quality, they are "a little heavy. The trade emphasises ; that weight is the deciding factor on the I British market.