MONEY AND MARKETS

Evening Star, Issue 22365, 15 June 1936, Page 9

MONEY AND MARKETS

STOCK EXCHANGE QUIET BUTTER CONTINUES TO RISE DECLINE IN APPLE PRICES Press Association—By Telegraph—Copyright LONDON, Juno 14. (Received Juno 15, at 1.5 p.m.) Despite M. Blum’s declaration that he docs not intend to devalue it, the franc is still subject to recurring selling pressure, the city adhering to the view that, while devaluation may temporarily be staved off, it is ultimately' inevitable, especially as M. Blum’s labour programme must enormously raise French costs. An important effect of the franc crisis has been to accentuate hte seasonal tightening of short-term interest rates. » Owing to the operations of the Exchange Equalisation Fund the Government is forced to pay 18s Id per cent, on Treasury bills, the highest rate for two years. The stock markets are still quiet. The exceptionally good May unemployment figures have heartened investors, while the firmness of Wall Street has reacted favourably on London. Giltedged securities have picked up as a result of “ bear ” covering and further heavy French purchases. Industrial shares are quiet, but cables and wireless have improved from last year’s low levels. The flood of company reports showing better profits is “gratifying, though some fear it may encourage Labour to demand higher wages. Negotiations on this matter are already proceeding in some industries, but there is no fear that the “ stay-in ” strike movement will spread to England. BUTTER. Commodities continue apathetic. The notable exception was butter, which has sharply appreciated owing to the fact that speculative and general buying on the Continent failed to augment seasonal decreases. The Empire arrivals are low, and tho retention of prices is due to intense competition. This strengthened demand created an extra strain bn supplies, and prices developed with irregularity towards the week-end owing to profit-taking, bui optimism is the keynote of the trade, especially as cold store stocks are believed to be little altered in the last fortnight, although they normally tend to increase at this time of the year. FRUIT. The poor condition of the apple market is believed to he due to the fact that shipments have been insufficiently spread out; consequently quantities recently and at present offering are considerably larger than at the corresponding period of last year. The trade considered the advisability of cold storing some fruit for higher prices next month, but in view of its advanced condition decided that it was too risky. A similar decline in values is reported at Liverpool for the same reason-. Pears, however, are in good demand, prices showing a definite improvement. DOMINION MEAT. The New Zealand Meat Producers’ Board displayed at Smithfield lambs from tho 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 British market.