THE COUNTRY should enjoy a third straight year of modest inflation in 1985, economists said, as the government reported that wholesale prices rose only 1.8 percent in 1984.
THE NATION`S jobless rate rose to 7.2 percent in December from a revised 7.1 percent in November. Total employment increased more than 300,000, and average hours worked rose to 35.3 a week from 35.2 hours in November, indicating that the economy grew at a healthy pace.
PAUL VOLCKER, chairman of the Federal Reserve Board, gave his most upbeat assessment yet of the inflation outlook, saying, ”There are some reasons to believe . . . that we`re beginning to build into the economy a trend toward more stability of prices.”
AMERICANS took on $7.95 billion more in installment debt than they paid off in November in another sign, analysts said, that economic activity rebounded late last year. The November increase–21 percent at an annual rate –followed a $6.28 billion October increase.
COMPTROLLER OF the Currency C. Todd Conover, expressing exasperation at Congress` reluctance to tackle banking deregulation, said he is resigning to return to private industry.
THE SUPREME Court ruled that Trans World Airlines discriminated against pilots on the basis of their age, but the decision may help employers avoid big damage awards in age-bias cases.
THE SUPREME Court agreed to decide whether states may permit interstate banking in a region while excluding distant banks from buying banks in the area. The outcome may have enormous significance in shaping the direction of banking in the country.
THE FEDERAL Trade Commission charged in an administrative complaint that six major title insurance companies have fixed prices for many of their services by participating in rating bureaus in at least 13 states.
INTERNATIONAL
THE GOVERNMENT-owned British National Oil Corp. said it is selling crude oil at free-market prices but said the move doesn`t represent a change in pricing policy for North Sea oil.
THE UNITED States said it reached agreement with the European Economic Community that will cut the Common Market`s share of the U.S. steel pipe and tube market from the 14.6 percent it had reached in 1984 to 7.6 percent in 1985 and 1986.
ARGENTINA revealed a long-awaited five-year austerity plan that appears to satisfy–in spirit, if not in letter–conditions for continuing support from the International Monetary Fund.
CHICAGO/MIDWEST
THE CHICAGO Mercantile Exchange expelled and levied a $100,000 fine against a member who was allegedly involved in a multimillion-dollar commodity scam. The individual, Peter Yip Shut Yuen of Hong Kong, may have been associated with firms in Seattle and Vancouver.
QUAKER OATS Co. announced a reorganization of its U.S. and Canadian grocery products operations into three segments following the resignation of Executive Vice President Robert N. Thurston, who ran those operations.
TWO INVESTORS who control five banks in the Chicago area said they have reached an agreement to buy Citizens Bank & Trust Co. of Park Ridge for $47 million in cash from Texas oilman and financier Clint W. Murchison Jr.
WHIRLPOOL Corp. has agreed to buy the KitchenAid Division of Dart & Kraft Inc.`s Hobart unit for an undisclosed amount of cash.
USG CORP., formerly United States Gypsum Co., said it agreed to sell its carpet subsidiary to an unidentified buyer in the Northeast. Terms of the transaction weren`t disclosed.
THE BOARD of Diversifoods Inc. asked Charles L. Boppell, chief executive officer of the company`s Godfather`s Pizza subsidiary, to resign. Boppell was replaced by Everett F. Jefferson, who had been president and chief operating officer of Diversifoods.
SECURITY PACIFIC Corp. and Duff & Phelps Inc. called off their proposed merger because of conditions imposed on the deal by the Federal Reserve Board. DEVELOPER Harry F. Chaddick is proposing a shopping center, to be anchored by a Montgomery Ward & Co. department store, in the Northwest Side neighborhood of Avondale.
CORPORATE
A PROPOSED merger between Diamond Shamrock Corp. and Occidental Petroleum Corp. fell apart only hours after the $3 billion deal had been formally announced. The sudden end to the transaction followed a decision by Diamond Shamrock directors not to approve the merger.
GENERAL MOTORS Corp. announced that it has formed Saturn Corp., a wholly owned subsidiary, to develop, build and sell small cars before the end of the decade to compete with Japanese-built autos.
THE MEDICAL institute that owns Hughes Aircraft Co. authorized Morgan Stanley & Co. to prepare for a sale of the giant defense contractor or a public offering of Hughes Aircraft stock, possibly before the end of this year.
CASH-STARVED Northeastern International Airways filed for protection from creditors in Bankruptcy Court but continued flying under a reduced schedule. The airline, unable to pay its employees the week before, abruptly canceled service to five cities.
MARKETS
STOCKS: The Dow Jones industrial average jumped 33.13 points for the week to close at 1218.09. The New York Stock Exchange index rose 2.39 points to close at 95.99, and the American Stock Exchange index was up 3.53 points to close at 205.74. The Nasdaq index of over-the-counter stocks jumped 5.97 to close at 252.16. Composite volume of NYSE-listed stocks was 612.8 million, up from 381.4 million shares in the four-session prior week.
BONDS: The Dow Jones bond index rose 0.05 to close at 72.52.
COMMODITIES: The Dow Jones index of commodity futures was up 1.81, closing at 124.69, and the spot index closed up 0.27, at 121.02.
