WHOLESALE PRICES inched up 0.1 percent last month, with moderate increases in gasoline and heating oil costs partially offset by lower food prices. The rise followed a 0.6 percent gain in January, which had been led by the biggest one-month increase in gasoline prices on record.
THE NATION`S RETAIL SALES rose 4.1 percent in February, as car buyers returned to the showrooms and stemmed a one-month plunge in auto sales.
THE SECURITIES AND EXCHANGE Commission accused Nahum Vaskevitch, the head of mergers and acquisitions in the London branch of Merrill Lynch, of running an international insider-trading ring that netted more than $4 million.
GARY DONALD EDER, the best-paid retail broker at PaineWebber Inc., was indicted by a federal grand jury on conspiracy charges involving a $700,000 money-laundering scheme.
THE NATION`S merchandise trade deficit from October through December swelled to $38.4 billion, the largest quarterly imbalance on record. The fourth-quarter deficit helped to push the merchandise trade imbalance for the year to a record $147.7 billion.
THE SENATE BANKING COMMITTEE agreed to authorize $7.5 billion of borrowing authority to recapitalize the Federal Savings and Loan Insurance Corp.
BUSINESS SALES plunged 4.5 percent in January, the largest monthly decline since the government began the current series of data in 1967. And the nation`s manufacturers and traders built up their inventories by 0.9 percent in January, the biggest increase in 7 1/2 years.
INDUSTRIAL PRODUCTION rose 0.5 percent in February, the fifth consecutive monthly increase, boosted by an increase in production at auto factories.
INTERNATIONAL
JAPAN`S TRADE SURPLUS for February was $7.13 billion, well above the $4.3 billion recorded for January. Japanese exports to the United States totaled $6.21 billion in February.
THE BANK OF ENGLAND cut the interest rate it charges the banking system by half a point, to 10.5 percent from 11 percent, thus allowing Britain`s major banks to cut their interest rates.
CHICAGO/MIDWEST
A U.S. DISTRICT COURT judge ordered that the two top officials of Diamond Mortgage Co. and A.J. Obie & Associates Inc. face criminal trial, saying they had run a so-called ”ponzi” scheme defrauding investors for at least five years. The Michigan-based companies had corporate offshoots in Illinois.
JOHN D. SEYMOUR, newly appointed Illinois savings and loan commissioner, said he hopes to submit to the legislature a new mortgage banking act that would give his office broader powers.
AMERICAN MEDICAL INTERNATIONAL Inc. rejected Chicago-based Pesch and Co.`s estimated $1.91 billion takeover proposal, calling it inadequate and not in the best interest of shareholders.
THE COMMERCIAL CLUB said the suburban boom is fueling rapid job growth in the six-county Chicago region, with jobs growing faster in the area than in the nation.
TOTAL CASH COMPENSATION of First Chicago Corp.`s top two officers climbed more than 40 percent last year, largely because of hefty bonuses. The compensation boosts reflected the banking firm`s record profits of $276.2 million.
ILLINOIS STATE TREASURER Jerry Cosentino said he would close state accounts at American National Bank and Trust Co. of Chicago. Cosentino`s action was his third against First Chicago Corp., parent of American National. First Chicago is the state`s largest issuer of credit cards, and Cosentino wants interest rates on the cards lowered.
A CONSORTIUM of four Chicago-area racetracks will open two off-track betting parlors this summer in downtown Chicago and two in the northern and western suburbs.
CORPORATE
CHRYSLER CORP. offered to buy American Motors Corp. in a deal that could total $1.1 billion. Chrysler signed a letter of intent with Renault of France to acquire its 46 percent interest in AMC for $200 million in notes and up to $350 million more, based on AMC`s contributions to Chrysler earnings.
USAIR GROUP INC. announced a $1.59 billion deal to buy Piedmont Aviation Inc. Meanwhile, the Justice Department said it was investigating whether Trans World Airlines Inc. and its chairman, Carl Icahn, violated federal antitrust law in making a bid to buy USAir.
ALLEGHENY INTERNATIONAL Inc. agreed to be acquired by First Boston Corp. in a leveraged buyout valued at $500 million.
BORG-WARNER CORP. said that senior management of its industrial products group and a New York investment firm agreed to purchase the group in a leveraged buyout valued at about $240 million.
THE HOUSTON CHRONICLE, the Southwest`s largest daily newspaper, will be sold to Hearst Corp. for $400 million.
MARKETS
STOCKS: The Dow Jones industrial average finished down 21.57 points for the week, closing at 2258.66. The New York Stock Exchange index lost .14 of a point to close at 165.31, while the American Stock Exchange index finished up 2.86 at 332.43. The Nasdaq index of over-the-counter stocks closed up 2.52 at 431.97. Composite volume of NYSE-listed stocks for the week was 1.014 billion shares, down from 1.044 billion shares the previous week.
BONDS: The Dow Jones bond index was up .08 of a point for the week at 94.88.
COMMODITIES: The Dow Jones index of commodity futures was down .05 of a point for the week at 112.85, while the spot index was down .73 of a point at 113.21.
