( S ( CC But ) ( NP-SBJ ( NNS analysts ) ) ( VP ( VBP reckon ) ( SBAR ( S ( NP-SBJ-1 ( NP ( JJ underlying ) ( NN support ) ) ( PP ( IN for ) ( NP ( NN sterling ) ) ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( VBN eroded ) ( PP ( IN by ) ( NP-LGS ( NP ( DT the ) ( NN chancellor ) ( POS 's ) ) ( NN failure ) ( S ( VP ( TO to ) ( VP ( VB announce ) ( NP ( DT any ) ( JJ new ) ( NN policy ) ( NNS measures ) ) ( PP-LOC ( IN in ) ( NP ( PRP$ his ) ( NNP Mansion ) ( NNP House ) ( NN speech ) ) ) ( NP-TMP ( JJ last ) ( NNP Thursday ) ) ) ) ) ) ) ) ) ) ) ) ) )

But analysts reckon underlying support for sterling has been eroded by the chancellor 's failure to announce any new policy measures in his Mansion House speech last Thursday


( S ( S-TPC-3 ( NP-SBJ ( DT This ) ) ( VP ( VBZ has ) ( VP ( VBN increased ) ( NP ( NP ( DT the ) ( NN risk ) ) ( PP ( IN of ) ( S-NOM ( NP-SBJ-1 ( DT the ) ( NN government ) ) ( VP ( NN being ) ( VP ( VBN forced ) ( S ( VP ( TO to ) ( VP ( VB increase ) ( NP ( NN base ) ( NNS rates ) ) ( PP-DIR ( TO to ) ( NP ( CD 16 ) ( NN % ) ) ) ( PP-DIR ( IN from ) ( NP ( PRP$ their ) ( JJ current ) ( ADJP ( CD 15 ) ( NN % ) ) ( NN level ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB defend ) ( NP ( DT the ) ( NN pound ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NP ( NNS economists ) ) ( CC and ) ( NP ( JJ foreign ) ( NN exchange ) ( NN market ) ( NNS analysts ) ) ) ( VP ( VBP say ) ) )

This has increased the risk of the government being forced to increase base rates to 16 % from their current 15 % level to defend the pound economists and foreign exchange market analysts say


( SINV ( S-TPC-1 ( NP-SBJ ( NP ( DT The ) ( NNS risks ) ) ( PP ( IN for ) ( NP ( NN sterling ) ) ) ( PP ( IN of ) ( NP ( DT a ) ( JJ bad ) ( NN trade ) ( NN figure ) ) ) ) ( VP ( VBP are ) ( ADVP ( RB very ) ( RB heavily ) ) ( PP-LOC-PRD ( IN on ) ( NP ( DT the ) ( JJ down ) ( NN side ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Chris ) ( NNP Dillow ) ) ( NP ( NP ( JJ senior ) ( NNP U.K. ) ( NN economist ) ) ( PP-LOC ( IN at ) ( NP ( NNP Nomura ) ( NNP Research ) ( NNP Institute ) ) ) ) ) )

The risks for sterling of a bad trade figure are very heavily on the down side said Chris Dillow senior U.K. economist at Nomura Research Institute


( SINV ( S-TPC-1 ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( EX there ) ) ( VP ( VBZ is ) ( NP-PRD ( DT another ) ( JJ bad ) ( NN trade ) ( NN number ) ) ) ) ) ( NP-SBJ ( EX there ) ) ( VP ( MD could ) ( VP ( VB be ) ( NP-PRD ( NP ( DT an ) ( JJ awful ) ( NN lot ) ) ( PP ( IN of ) ( NP ( NN pressure ) ) ) ) ) ) ) ( VP ( VBD noted ) ) ( NP-SBJ ( NP ( NNP Simon ) ( NNP Briscoe ) ) ( NP ( NP ( NNP U.K. ) ( NN economist ) ) ( PP ( IN for ) ( NP ( NP ( NNP Midland ) ( NNP Montagu ) ) ( NP ( NP ( DT a ) ( NN unit ) ) ( PP ( IN of ) ( NP ( NNP Midland ) ( NNP Bank ) ( NNP PLC ) ) ) ) ) ) ) ) )

If there is another bad trade number there could be an awful lot of pressure noted Simon Briscoe U.K. economist for Midland Montagu a unit of Midland Bank PLC


( S ( S ( NP-SBJ ( NP ( NNS Forecasts ) ) ( PP ( IN for ) ( NP ( DT the ) ( NN trade ) ( NNS figures ) ) ) ) ( VP ( VBP range ) ( ADVP-MNR ( RB widely ) ) ) ) ( CC but ) ( S ( NP-SBJ ( JJ few ) ( NNS economists ) ) ( VP ( VBP expect ) ( S ( NP-SBJ ( DT the ) ( NNS data ) ) ( VP ( TO to ) ( VP ( VB show ) ( NP ( NP ( DT a ) ( ADJP ( RB very ) ( JJ marked ) ) ( NN improvement ) ) ( PP ( IN from ) ( NP ( NP ( DT the ) ( ADJP ( ADJP ( QP ( CD 2 ) ( CD billion ) ) ) ( PRN ( ADJP ( QP ( CD 3.2 ) ( CD billion ) ) ) ) ) ( NN deficit ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ current ) ( NN account ) ) ) ( VP ( VBN reported ) ( PP ( IN for ) ( NP ( NNP August ) ) ) ) ) ) ) ) ) ) ) ) )

Forecasts for the trade figures range widely but few economists expect the data to show a very marked improvement from the 2 billion 3.2 billion deficit in the current account reported for August


( S ( NP-SBJ-1 ( NP ( DT The ) ( NNP August ) ( NN deficit ) ) ( CC and ) ( NP ( NP ( DT the ) ( ADJP ( QP ( CD 2.2 ) ( CD billion ) ) ) ( NN gap ) ) ( VP ( VBN registered ) ( PP-TMP ( IN in ) ( NP ( NNP July ) ) ) ) ) ) ( VP ( VBP are ) ( VP ( VBN topped ) ( PP ( ADVP ( RB only ) ) ( IN by ) ( NP ( NP ( DT the ) ( ADJP ( QP ( CD 2.3 ) ( CD billion ) ) ) ( NN deficit ) ) ( PP ( IN of ) ( NP ( NNP October ) ( CD 1988 ) ) ) ) ) ) ) )

The August deficit and the 2.2 billion gap registered in July are topped only by the 2.3 billion deficit of October 1988


( S ( NP-SBJ ( NP ( NNP Sanjay ) ( NNP Joshi ) ) ( NP ( NP ( JJ European ) ( NN economist ) ) ( PP-LOC ( IN at ) ( NP ( NNP Baring ) ( NNP Brothers ) ( CC & ) ( NNP Co. ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( EX there ) ) ( VP ( VBZ is ) ( NP-PRD ( DT no ) ( NN sign ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( NP ( NNP Britain ) ( POS 's ) ) ( VBG manufacturing ) ( NN industry ) ) ( VP ( VBZ is ) ( VP ( VBG transforming ) ( NP ( PRP itself ) ) ( S-PRP ( VP ( TO to ) ( VP ( NN boost ) ( NP ( NNS exports ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Sanjay Joshi European economist at Baring Brothers & Co. said there is no sign that Britain 's manufacturing industry is transforming itself to boost exports


( S ( PP-TMP ( IN At ) ( NP ( DT the ) ( JJ same ) ( NN time ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBZ remains ) ( ADJP-PRD ( RB fairly ) ( JJ pessimistic ) ( PP ( IN about ) ( NP ( NP ( DT the ) ( NN outlook ) ) ( PP ( IN for ) ( NP ( NNS imports ) ) ) ) ) ) ( PP ( VBN given ) ( NP ( VBD continued ) ( JJ high ) ( NN consumer ) ( CC and ) ( NN capital ) ( NNS goods ) ( NNS inflows ) ) ) ) )

At the same time he remains fairly pessimistic about the outlook for imports given continued high consumer and capital goods inflows


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBZ reckons ) ( SBAR ( S ( NP-SBJ ( DT the ) ( JJ current ) ( NN account ) ( NN deficit ) ) ( VP ( MD will ) ( VP ( VB narrow ) ( PP-DIR ( TO to ) ( NP ( QP ( RB only ) ( CD 1.8 ) ( CD billion ) ) ) ) ( PP-TMP ( IN in ) ( NP ( NNP September ) ) ) ) ) ) ) ) )

He reckons the current account deficit will narrow to only 1.8 billion in September


( S ( ADVP ( RB However ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Dillow ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ believes ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT a ) ( NN reduction ) ) ( PP-TMP ( IN in ) ( NP ( JJ raw ) ( NN material ) ( VBG stockbuilding ) ) ) ( PP ( IN by ) ( NP ( NN industry ) ) ) ) ( VP ( MD could ) ( VP ( VB lead ) ( PP-DIR ( TO to ) ( NP ( NP ( DT a ) ( JJ sharp ) ( NN drop ) ) ( PP-LOC ( IN in ) ( NP ( NNS imports ) ) ) ) ) ) ) ) ) ) ) ) ) )

However Mr. Dillow said he believes that a reduction in raw material stockbuilding by industry could lead to a sharp drop in imports


( S ( PP ( VBN Combined ) ( PP ( IN with ) ( NP ( NP ( ADVP ( IN at ) ( JJS least ) ) ( DT some ) ( NN rebound ) ) ( PP-LOC ( IN in ) ( NP ( NNS exports ) ) ) ( PP-TMP ( IN after ) ( NP ( NP ( NNP August ) ( POS 's ) ) ( JJ unexpected ) ( NN decline ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN deficit ) ) ( VP ( MD could ) ( VP ( VB narrow ) ( PP-DIR ( TO to ) ( NP ( QP ( RB as ) ( JJ little ) ( IN as ) ( CD 1.3 ) ( CD billion ) ) ) ) ) ) )

Combined with at least some rebound in exports after August 's unexpected decline the deficit could narrow to as little as 1.3 billion


( S ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Briscoe ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( ADVP ( RB also ) ) ( VP ( VBZ forecasts ) ( NP ( DT a ) ( ADJP ( QP ( CD 1.3 ) ( CD billion ) ) ) ( JJ current ) ( NN account ) ( NN gap ) ) ) ) ) ) ( VP ( VBZ warns ) ( SBAR ( IN that ) ( S ( SBAR-ADV ( RB even ) ( IN if ) ( S ( NP-SBJ ( DT the ) ( NN trade ) ( NNS figures ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ bullish ) ) ( PP ( IN for ) ( NP ( NN sterling ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN currency ) ) ( VP ( MD wo ) ( RB n't ) ( VP ( VB advance ) ( NP-EXT ( RB much ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ-2 ( NNS investors ) ) ( VP ( MD will ) ( VP ( VB want ) ( S ( VP ( TO to ) ( VP ( VB see ) ( NP ( NP ( JJ further ) ( NN evidence ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN turnaround ) ) ) ) ( PP-TMP ( IN before ) ( S-NOM ( VP ( VBG adjusting ) ( NP ( NNS positions ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Briscoe who also forecasts a 1.3 billion current account gap warns that even if the trade figures are bullish for sterling the currency wo n't advance much because investors will want to see further evidence of the turnaround before adjusting positions


( S-1 ( ADVP ( RB Nevertheless ) ) ( PRN ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD noted ) ) ) ) ( NP-SBJ-2 ( DT No ) ( PRP one ) ) ( VP ( MD will ) ( VP ( VB want ) ( S ( VP ( TO to ) ( VP ( VB go ) ( PP-DIR ( IN into ) ( NP ( DT the ) ( NN trade ) ( NNS figures ) ) ) ( PP ( IN without ) ( NP ( NP ( DT a ) ( JJ flat ) ( NN position ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN pound ) ) ) ) ) ) ) ) ) ) )

Nevertheless he noted No one will want to go into the trade figures without a flat position in the pound


( S ( ADVP-TMP ( RB Meanwhile ) ) ( NP-SBJ ( NP ( JJ overall ) ( NN evidence ) ) ( PP ( IN on ) ( NP ( DT the ) ( NN economy ) ) ) ) ( VP ( VBZ remains ) ( ADJP-PRD ( RB fairly ) ( JJ clouded ) ) ) )

Meanwhile overall evidence on the economy remains fairly clouded


( S ( PP-LOC ( IN In ) ( NP ( PRP$ his ) ( NNP Mansion ) ( NNP House ) ( NN speech ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Lawson ) ) ( VP ( VBD warned ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( DT a ) ( JJ further ) ( NN slowdown ) ) ( VP ( MD can ) ( VP ( VB be ) ( VP ( VBN expected ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( NP ( DT the ) ( NN impact ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJ last ) ( NN rise ) ) ( PP-TMP ( IN in ) ( NP ( NN interest ) ( NNS rates ) ) ) ( NP-TMP ( RBR earlier ) ( DT this ) ( NN month ) ) ) ) ) ( VP ( VBZ takes ) ( NP ( NN effect ) ) ) ) ) ) ) ) ) ) ) )

In his Mansion House speech Mr. Lawson warned that a further slowdown can be expected as the impact of the last rise in interest rates earlier this month takes effect


( S ( NP-SBJ ( NNP U.K. ) ( NN base ) ( NNS rates ) ) ( VP ( VBP are ) ( PP-LOC-PRD ( IN at ) ( NP ( NP ( PRP$ their ) ( JJS highest ) ( NN level ) ) ( PP-TMP ( IN in ) ( NP ( CD eight ) ( NNS years ) ) ) ) ) ) )

U.K. base rates are at their highest level in eight years


( S ( CC But ) ( NP-SBJ ( NP ( NN consumer ) ( NN expenditure ) ( NNS data ) ) ( VP ( VBD released ) ( NP-TMP ( NNP Friday ) ) ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB suggest ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NNP U.K. ) ( NN economy ) ) ( VP ( VBZ is ) ( VP ( VBG slowing ) ( ADVP-MNR ( RB that ) ( RB quickly ) ) ) ) ) ) ) ) )

But consumer expenditure data released Friday do n't suggest that the U.K. economy is slowing that quickly


( S ( NP-SBJ ( DT The ) ( NNS figures ) ) ( VP ( VBP show ) ( SBAR ( DT that ) ( S ( NP-SBJ ( NN spending ) ) ( VP ( VP ( VBD rose ) ( NP-EXT ( CD 0.1 ) ( NN % ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ third ) ( NN quarter ) ) ) ( PP-DIR ( IN from ) ( NP ( DT the ) ( JJ second ) ( NN quarter ) ) ) ) ( CC and ) ( VP ( VBD was ) ( ADVP-PRD ( RB up ) ( NP ( CD 3.8 ) ( NN % ) ) ) ( PP-DIR ( IN from ) ( ADVP ( NP ( DT a ) ( NN year ) ) ( RB ago ) ) ) ) ) ) ) ) )

The figures show that spending rose 0.1 % in the third quarter from the second quarter and was up 3.8 % from a year ago


( S ( NP-SBJ ( DT This ) ) ( VP ( VBZ compares ) ( PP-CLR ( IN with ) ( NP ( NP ( NP ( DT a ) ( ADJP ( CD 1.6 ) ( NN % ) ) ( NN rise ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( NN second ) ) ) ( PP ( IN from ) ( NP ( DT the ) ( JJ first ) ( NN quarter ) ) ) ) ( CC and ) ( NP ( NP ( DT a ) ( ADJP ( CD 5.4 ) ( NN % ) ) ( NN increase ) ) ( PP ( IN from ) ( NP ( NP ( DT the ) ( JJ second ) ( NN quarter ) ) ( PP ( IN of ) ( NP ( CD 1988 ) ) ) ) ) ) ) ) ) )

This compares with a 1.6 % rise in the second from the first quarter and a 5.4 % increase from the second quarter of 1988


( S ( NP-SBJ ( NNP Mr. ) ( NNP Dillow ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NNS data ) ) ( VP ( VBP show ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN economy ) ) ( VP ( VBZ is ) ( ADVP-TMP ( RB still ) ) ( ADJP-PRD ( RB quite ) ( JJ strong ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( NNS suggestions ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( JJ much ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN spending ) ) ) ) ( VP ( VBD went ) ( PP-CLR ( IN on ) ( NP ( NP ( NNS services ) ) ( PP ( RB rather ) ( IN than ) ( NP ( NN consumer ) ( NNS goods ) ) ) ) ) ) ) ) ) ( VP ( MD should ) ( VP ( VB reduce ) ( NP ( NP ( NNS fears ) ) ( PP ( IN of ) ( NP ( JJR more ) ( NN import ) ( NNS rises ) ) ) ) ) ) ) ) ) )

Mr. Dillow said the data show the economy is still quite strong but suggestions that much of the spending went on services rather than consumer goods should reduce fears of more import rises


( S ( ADVP ( RB Certainly ) ) ( NP-SBJ ( DT the ) ( NN chancellor ) ) ( VP ( VBZ has ) ( VP ( VBN made ) ( S ( NP-SBJ ( NP ( PRP it ) ) ) ( ADJP-PRD ( JJ clear ) ) ( SBAR-1 ( IN that ) ( S ( NP-SBJ-2 ( PRP he ) ) ( VP ( VBZ is ) ( VP ( VBN prepared ) ( S ( VP ( TO to ) ( VP ( VB increase ) ( NP ( NN interest ) ( NNS rates ) ) ( ADVP-TMP ( RB again ) ) ( SBAR-ADV ( IN if ) ( FRAG ( ADJP-PRD ( JJ necessary ) ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( DT both ) ( VB ensure ) ( SBAR ( SBAR ( IN that ) ( S ( NP-SBJ ( DT a ) ( JJ substantial ) ( NN slowdown ) ) ( VP ( VBZ does ) ( VP ( VB take ) ( NP ( NN place ) ) ) ) ) ) ( CC and ) ( SBAR ( DT that ) ( S ( NP-SBJ ( NN sterling ) ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB decline ) ( ADVP-CLR ( RB further ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Certainly the chancellor has made it clear that he is prepared to increase interest rates again if necessary to both ensure that a substantial slowdown does take place and that sterling does n't decline further


( S ( NP-TMP ( NNP Thursday ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD reminded ) ( NP ( PRP$ his ) ( NN audience ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN government ) ) ( VP ( MD can ) ( RB not ) ( VP ( VB allow ) ( S ( NP-SBJ-1 ( NP ( DT the ) ( JJ necessary ) ( NN rigor ) ) ( PP ( IN of ) ( NP ( JJ monetary ) ( NN policy ) ) ) ) ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN undermined ) ( PP ( IN by ) ( NP-LGS ( NN exchange ) ( NN rate ) ( NN weakness ) ) ) ) ) ) ) ) ) ) ) ) )

Thursday he reminded his audience that the government can not allow the necessary rigor of monetary policy to be undermined by exchange rate weakness


( S ( NP-SBJ ( NNS Analysts ) ) ( VP ( VBP agree ) ( SBAR ( S ( NP-SBJ ( EX there ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( JJ little ) ) ( VP ( VBG holding ) ( S ( NP-SBJ ( JJ sterling ) ) ( ADJP-PRD ( NN firm ) ) ) ) ) ( PP-TMP ( IN at ) ( NP ( DT the ) ( NN moment ) ) ) ( ADJP-2 ( JJ other ) ( PP ( IN than ) ( NP ( NP ( NNP Mr. ) ( NNP Lawson ) ( POS 's ) ) ( NN promise ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( NNS rates ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN pushed ) ( S ( ADJP-PRD ( RBR higher ) ) ) ( SBAR-ADV ( IN if ) ( FRAG ( ADJP-PRD ( JJ necessary ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Analysts agree there is little holding sterling firm at the moment other than Mr. Lawson 's promise that rates will be pushed higher if necessary


( S-1 ( CC And ) ( PRN ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP warn ) ) ) ) ( NP-SBJ ( NP ( DT any ) ( JJ further ) ( NN drop ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN government ) ( POS 's ) ) ( NN popularity ) ) ) ) ( VP ( MD could ) ( ADVP-MNR ( RB swiftly ) ) ( VP ( VB make ) ( S ( NP-SBJ ( DT this ) ( NN promise ) ) ( VP ( VB sound ) ( ADJP-PRD ( JJ hollow ) ) ) ) ) ) )

And they warn any further drop in the government 's popularity could swiftly make this promise sound hollow


( S ( NP-SBJ ( NN Sterling ) ) ( VP ( VBD was ) ( ADVP-TMP ( RB already ) ) ( VP ( VBG showing ) ( NP ( NP ( DT some ) ( NNS signs ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( NN lack ) ) ( PP ( IN of ) ( NP ( NP ( NN confidence ) ) ( PP ( IN in ) ( NP ( NP ( NNP Mr. ) ( NNP Lawson ) ( POS 's ) ) ( NN promise ) ) ) ) ) ) ) ) ( NP-TMP ( NNP Friday ) ) ) ) )

Sterling was already showing some signs of a lack of confidence in Mr. Lawson 's promise Friday


( S ( PP-LOC ( IN In ) ( NP ( JJ European ) ( NN trading ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( VBD declined ) ( PP-DIR ( TO to ) ( NP ( NP ( CD 1.5890 ) ) ( CC and ) ( NP ( CD 2.9495 ) ( NNS marks ) ) ) ) ( PP-DIR ( IN from ) ( NP ( NP ( CD 1.5940 ) ) ( CC and ) ( NP ( CD 2.9429 ) ( NNS marks ) ) ) ) ( NP-TMP ( JJ late ) ( NNP Thursday ) ) ) )

In European trading it declined to 1.5890 and 2.9495 marks from 1.5940 and 2.9429 marks late Thursday


( S ( NP-SBJ ( NNS Economists ) ) ( VP ( VBD suggested ) ( SBAR ( IN that ) ( S ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( DT the ) ( NN pound ) ) ( VP ( VBZ falls ) ( PP-CLR ( NP ( RB much ) ) ( IN below ) ( NP ( CD 2.90 ) ( NNS marks ) ) ) ) ) ) ( NP-SBJ-1 ( DT the ) ( NN government ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN forced ) ( S ( VP ( TO to ) ( VP ( VB increase ) ( NP ( NNS rates ) ) ( PP-DIR ( TO to ) ( NP ( CD 16 ) ( NN % ) ) ) ( S-PRP ( VP ( DT both ) ( TO to ) ( VP ( VP ( VB halt ) ( NP ( DT any ) ( JJ further ) ( NN decline ) ) ) ( CC and ) ( VP ( VB ensure ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT the ) ( NN balance ) ) ( PP ( IN of ) ( NP ( JJ monetary ) ( NN policy ) ) ) ) ( VP ( VBZ remains ) ( ADJP-PRD ( JJ unchanged ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Economists suggested that if the pound falls much below 2.90 marks the government will be forced to increase rates to 16 % both to halt any further decline and ensure that the balance of monetary policy remains unchanged


( NP-HLN ( NP ( NNP Friday ) ( POS 's ) ) ( NNP Market ) ( NNP Activity ) )

Friday 's Market Activity


( S ( NP-SBJ ( DT The ) ( NN dollar ) ) ( VP ( VBD posted ) ( NP ( NNS gains ) ) ( PP-LOC ( IN in ) ( NP ( JJ quiet ) ( NN trading ) ) ) ( SBAR-ADV ( IN as ) ( S ( NP-SBJ ( NP ( NNS concerns ) ) ( PP ( IN about ) ( NP ( NNS equities ) ) ) ) ( VP ( VBD abated ) ) ) ) ) )

The dollar posted gains in quiet trading as concerns about equities abated


( S ( NP-SBJ ( JJ Foreign ) ( NN exchange ) ( NNS dealers ) ) ( VP ( VBD said ) ( SBAR ( IN that ) ( S ( NP-SBJ-2 ( DT the ) ( NN currency ) ( NN market ) ) ( VP ( VBZ has ) ( VP ( VBN begun ) ( S ( VP ( TO to ) ( VP ( VB distance ) ( NP ( PRP itself ) ) ( PP-CLR ( IN from ) ( NP ( NP ( DT the ) ( JJ volatile ) ( NN stock ) ( NN exchange ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ has ) ( VP ( VBN preoccupied ) ( NP ( DT the ) ( NN market ) ) ( PP-TMP ( IN since ) ( NP ( NP ( NNP Oct. ) ( CD 13 ) ) ( SBAR ( WHADVP-3 ( WRB when ) ) ( S ( NP-SBJ ( DT the ) ( NNP Dow ) ( NNP Jones ) ( NNP Industrial ) ( NNP Average ) ) ( VP ( VBD plunged ) ( NP-EXT ( QP ( RBR more ) ( IN than ) ( CD 190 ) ) ( NNS points ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Foreign exchange dealers said that the currency market has begun to distance itself from the volatile stock exchange which has preoccupied the market since Oct. 13 when the Dow Jones Industrial Average plunged more than 190 points


( S ( NP-SBJ ( NN Currency ) ( NNS analysts ) ) ( VP ( VBP predict ) ( SBAR ( IN that ) ( S ( PP-TMP ( IN in ) ( NP ( DT the ) ( VBG coming ) ( NN week ) ) ) ( NP-SBJ-1 ( DT the ) ( JJ foreign ) ( NN exchange ) ( NN market ) ) ( VP ( MD will ) ( VP ( VB shift ) ( NP ( PRP$ its ) ( NN focus ) ) ( ADVP-DIR ( RB back ) ( PP ( TO to ) ( NP ( JJ economic ) ( NNS fundamentals ) ) ) ) ( S-ADV ( VP ( VBG keeping ) ( NP-CLR ( NP ( DT a ) ( JJ close ) ( NN eye ) ) ( ADVP ( RP out ) ) ) ( PP-CLR ( IN for ) ( NP ( NP ( DT any ) ( NNS signs ) ) ( PP ( IN of ) ( NP ( NP ( JJ monetary ) ( VBG easing ) ) ( PP ( IN by ) ( NP ( NNP U.S. ) ( NNP Federal ) ( NNP Reserve ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Currency analysts predict that in the coming week the foreign exchange market will shift its focus back to economic fundamentals keeping a close eye out for any signs of monetary easing by U.S. Federal Reserve


( S ( ADVP-TMP ( RB Late ) ( PP ( IN in ) ( NP ( DT the ) ( NNP New ) ( NNP York ) ( NN trading ) ( NN day ) ) ) ) ( NP-SBJ-1 ( DT the ) ( NN dollar ) ) ( VP ( VBD was ) ( VP ( VBN quoted ) ( PP-CLR ( IN at ) ( NP ( NP ( CD 1.8578 ) ( NNS marks ) ) ( ADVP ( RB up ) ( PP ( IN from ) ( NP ( NP ( CD 1.8470 ) ( NNS marks ) ) ( NP-TMP ( JJ late ) ( NNP Thursday ) ) ( PP-LOC ( IN in ) ( NP ( NNP New ) ( NNP York ) ) ) ) ) ) ) ) ) ) )

Late in the New York trading day the dollar was quoted at 1.8578 marks up from 1.8470 marks late Thursday in New York


( S ( NP-SBJ ( DT The ) ( NNP U.S. ) ( NN currency ) ) ( VP ( VBD was ) ( ADVP ( RB also ) ) ( VP ( VBG changing ) ( NP ( NNS hands ) ) ( PP ( IN at ) ( NP ( NP ( CD 142.43 ) ( NN yen ) ) ( ADVP ( RB up ) ( PP ( IN from ) ( NP ( NP ( CD 141.70 ) ( NN yen ) ) ( PP-LOC ( IN in ) ( NP ( NNP New ) ( NNP York ) ) ) ( NP-TMP ( JJ late ) ( NNP Thursday ) ) ) ) ) ) ) ) ) )

The U.S. currency was also changing hands at 142.43 yen up from 141.70 yen in New York late Thursday


( S ( PP-LOC ( IN In ) ( NP ( NNP Tokyo ) ) ) ( PP-TMP ( IN on ) ( NP ( NNP Monday ) ) ) ( NP-SBJ ( DT the ) ( NNP U.S. ) ( NN currency ) ) ( VP ( VBD opened ) ( PP-PRP ( IN for ) ( NP ( NN trading ) ) ) ( PP ( IN at ) ( NP ( NP ( CD 141.95 ) ( NN yen ) ) ( ADVP ( RB up ) ( PP ( IN from ) ( NP ( NP ( NP ( NNP Friday ) ( POS 's ) ) ( NNP Tokyo ) ( NN close ) ) ( PP ( IN of ) ( NP ( CD 141.35 ) ( NN yen ) ) ) ) ) ) ) ) ) )

In Tokyo on Monday the U.S. currency opened for trading at 141.95 yen up from Friday 's Tokyo close of 141.35 yen


( S ( PP-LOC ( IN On ) ( NP ( DT the ) ( NNP Commodity ) ( NNP Exchange ) ) ) ( PP-LOC ( IN in ) ( NP ( NNP New ) ( NNP York ) ) ) ( NP-SBJ ( NP ( NN gold ) ) ( PP ( IN for ) ( NP ( JJ current ) ( NN delivery ) ) ) ) ( VP ( VBN settled ) ( PP-CLR ( IN at ) ( NP ( NP ( CD 367.30 ) ) ( NP-ADV ( DT an ) ( NN ounce ) ) ) ) ( ADVP-CLR ( RB up ) ( NP ( CD 20 ) ( NNS cents ) ) ) ) )

On the Commodity Exchange in New York gold for current delivery settled at 367.30 an ounce up 20 cents


( S ( NP-SBJ ( VBN Estimated ) ( NN volume ) ) ( VP ( VBD was ) ( NP-PRD ( DT a ) ( JJ light ) ( QP ( CD 2.4 ) ( CD million ) ) ( NNS ounces ) ) ) )

Estimated volume was a light 2.4 million ounces


( S ( PP-LOC ( IN In ) ( NP ( RB early ) ( NN trading ) ) ) ( PP-LOC ( IN in ) ( NP ( NNP Hong ) ( NNP Kong ) ) ) ( NP-TMP ( NNP Monday ) ) ( NP-SBJ-1 ( NN gold ) ) ( VP ( VBD was ) ( VP ( VBN quoted ) ( PP-CLR ( IN at ) ( NP ( NP ( CD 366.50 ) ) ( NP-ADV ( DT an ) ( NN ounce ) ) ) ) ) ) )

In early trading in Hong Kong Monday gold was quoted at 366.50 an ounce


( S ( NP-SBJ ( NP ( NNP Lep ) ( NNP Group ) ( NNP PLC ) ) ( PP ( IN of ) ( NP ( NNP Britain ) ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ holds ) ( NP ( NP ( DT a ) ( ADJP ( CD 62.42 ) ( NN % ) ) ( NN stake ) ) ( PP-LOC ( IN in ) ( NP ( NNP Profit ) ( NNP Systems ) ( NNP Inc. ) ) ) ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( VP ( VBG considering ) ( NP ( NP ( NNS courses ) ) ( PP ( IN of ) ( NP ( NN action ) ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( MD could ) ( VP ( VB result ) ( PP-CLR ( IN in ) ( S-NOM ( NP-SBJ ( PRP$ its ) ) ( VP ( VBG having ) ( NP ( NP ( JJ active ) ( NN control ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN company ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Lep Group PLC of Britain which holds a 62.42 % stake in Profit Systems Inc. said it is considering courses of action that could result in its having active control of the company


( S ( PP-LOC ( IN In ) ( NP ( NP ( DT a ) ( NN filing ) ) ( PP ( IN with ) ( NP ( DT the ) ( NNP Securities ) ( CC and ) ( NNP Exchange ) ( NNP Commission ) ) ) ) ) ( NP-SBJ ( NNP Lep ) ( NNP Group ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( DT a ) ( JJ possible ) ( NN course ) ) ( PP ( IN of ) ( NP ( NN action ) ) ) ) ( VP ( MD may ) ( VP ( VB include ) ( S ( VP ( VBG acquiring ) ( NP ( NP ( DT some ) ( CC or ) ( DT all ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNP Profit ) ( NNP Systems ) ( NNS shares ) ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ does ) ( RB n't ) ( ADVP-TMP ( RB already ) ) ( VP ( VB own ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

In a filing with the Securities and Exchange Commission Lep Group said a possible course of action may include acquiring some or all of the Profit Systems shares it does n't already own


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBD noted ) ( ADVP ( RB however ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ has ) ( RB n't ) ( VP ( VBN determined ) ( NP ( NP ( DT any ) ( JJ specific ) ( NNS terms ) ) ( PP ( IN of ) ( NP ( DT a ) ( JJ possible ) ( NN transaction ) ) ) ) ) ) ) ) ) )

It noted however that it has n't determined any specific terms of a possible transaction


( S ( S-TPC-1 ( NP-SBJ ( NP ( NNP Lep ) ( NNP Group ) ) ( CC and ) ( NP ( NNS affiliates ) ) ) ( ADVP-TMP ( RB currently ) ) ( VP ( VBP control ) ( NP ( NP ( CD 3,513,072 ) ( NP ( NNP Profit ) ( NNP Systems ) ) ( JJ common ) ( NNS shares ) ) ( CC or ) ( NP ( CD 62.42 ) ( NN % ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN filing ) ) ( VP ( VBD said ) ) )

Lep Group and affiliates currently control 3,513,072 Profit Systems common shares or 62.42 % the filing said


( S ( NP-SBJ ( NP ( NNP Profit ) ( NNP Systems ) ) ( NP-LOC ( NP ( NNP Valley ) ( NNP Stream ) ) ( NP ( NNP N.Y. ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( DT an ) ( NN air ) ( NN freight ) ( NN forwarding ) ( NN concern ) ) ) )

Profit Systems Valley Stream N.Y. is an air freight forwarding concern


( S ( PP-TMP ( IN In ) ( NP ( NP ( DT the ) ( NN wake ) ) ( PP ( IN of ) ( NP ( NP ( NP ( DT a ) ( NN slide ) ) ( PP-LOC ( IN in ) ( NP ( NN sterling ) ) ) ) ( NP ( NP ( DT a ) ( NN tailspin ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN stock ) ( NN market ) ) ) ) ( CC and ) ( NP ( NP ( DT a ) ( NN string ) ) ( PP ( IN of ) ( NP ( JJ problematic ) ( JJ economic ) ( NNS indicators ) ) ) ) ) ) ) ) ( NP-SBJ ( NAC ( JJ British ) ( NNP Chancellor ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Exchequer ) ) ) ) ( NNP Nigel ) ( NNP Lawson ) ) ( VP ( VBD promised ) ( NP ( NP ( JJ gradual ) ( NN improvement ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP U.K. ) ( NN economy ) ) ) ) ) )

In the wake of a slide in sterling a tailspin in the stock market and a string of problematic economic indicators British Chancellor of the Exchequer Nigel Lawson promised gradual improvement in the U.K. economy


( S ( PP-LOC ( IN In ) ( NP ( NP ( DT a ) ( NN speech ) ) ( VP ( VBN prepared ) ( PP-PRP ( IN for ) ( NP ( NP ( NN delivery ) ) ( PP ( TO to ) ( NP ( NP ( NNP London ) ( POS 's ) ) ( JJ financial ) ( NN community ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Lawson ) ) ( VP ( VBD summed ) ( PRT ( RP up ) ) ( NP ( JJ current ) ( JJ economic ) ( NN policy ) ) ( PP-CLR ( IN as ) ( NP ( DT a ) ( NN battle ) ( S ( VP ( TO to ) ( VP ( VB wring ) ( NP ( NN inflation ) ) ( ADVP-CLR ( IN out ) ( PP ( IN of ) ( NP ( DT the ) ( JJ British ) ( NN economy ) ) ) ) ( S-ADV ( VP ( VBG using ) ( NP ( JJ high ) ( NN interest ) ( NNS rates ) ) ( PP-CLR ( IN as ) ( NP ( NP ( DT the ) ( JJ essential ) ( NN instrument ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB carry ) ( PRT ( RP out ) ) ( NP ( DT the ) ( NN campaign ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

In a speech prepared for delivery to London 's financial community Mr. Lawson summed up current economic policy as a battle to wring inflation out of the British economy using high interest rates as the essential instrument to carry out the campaign


( S ( PP-TMP ( NP ( CD Two ) ( NNS weeks ) ) ( IN after ) ( S-NOM ( VP ( VBG boosting ) ( NP ( NN base ) ( NNS rates ) ) ( PP-DIR ( TO to ) ( NP ( CD 15 ) ( NN % ) ) ) ) ) ) ( NP-SBJ-1 ( PRP he ) ) ( VP ( VBD pledged ) ( SBAR ( IN that ) ( S ( NP-SBJ-2 ( NNS rates ) ) ( VP ( MD will ) ( VP ( VB have ) ( S ( VP ( TO to ) ( VP ( VB remain ) ( ADJP-PRD ( JJ high ) ) ( PP-TMP ( IN for ) ( NP ( NP ( DT some ) ( NN time ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB come ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Two weeks after boosting base rates to 15 % he pledged that rates will have to remain high for some time to come


( S ( NP-SBJ ( NNP Mr. ) ( NNP Lawson ) ) ( ADVP ( RB also ) ) ( VP ( VBD made ) ( S ( NP-SBJ ( NP ( PRP it ) ) ) ( ADJP-PRD ( JJ clear ) ) ( SBAR-1 ( IN that ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( MD would ) ( VP ( VB be ) ( VP ( VBG watching ) ( NP ( NN exchange ) ( NNS rates ) ) ( ADVP-MNR ( RB carefully ) ) ) ) ) ) ) ) ) )

Mr. Lawson also made it clear that he would be watching exchange rates carefully


( S ( S-TPC-1 ( NP-SBJ ( DT A ) ( VBG sinking ) ( NN pound ) ) ( VP ( VP ( VBZ makes ) ( S ( NP-SBJ ( NNS imports ) ) ( ADJP-PRD ( RBR more ) ( JJ expensive ) ) ) ) ( CC and ) ( VP ( VBZ increases ) ( NP ( NP ( NP ( NNS businesses ) ( POS ' ) ) ( NNS expectations ) ) ( PP ( IN of ) ( NP ( JJ future ) ( NN inflation ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD argued ) ) )

A sinking pound makes imports more expensive and increases businesses ' expectations of future inflation he argued


( S ( PP-LOC ( IN In ) ( NP ( NP ( DT an ) ( JJ apparent ) ( NN warning ) ) ( PP ( TO to ) ( NP ( NP ( NN currency ) ( NNS traders ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBP have ) ( ADVP-TMP ( RB lately ) ) ( VP ( VBN been ) ( VP ( VBG selling ) ( NP ( DT the ) ( JJ British ) ( NN currency ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD stated ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN exchange ) ( NNS rates ) ) ( VP ( MD will ) ( VP ( VB have ) ( NP ( NP ( DT a ) ( JJ major ) ( NN role ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN assessment ) ) ( PP ( IN of ) ( NP ( JJ monetary ) ( NNS conditions ) ) ) ) ) ) ) ) ) ) ) )

In an apparent warning to currency traders who have lately been selling the British currency he stated that the exchange rates will have a major role in the assessment of monetary conditions


( S ( PP ( IN In ) ( S-NOM ( VP ( VBG reaffirming ) ( NP ( NP ( DT the ) ( JJ current ) ( JJ monetary ) ( NN policy ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG using ) ( NP ( JJ high ) ( NN interest ) ( NNS rates ) ) ( S-CLR ( VP ( TO to ) ( VP ( VP ( VB fight ) ( NP ( NN inflation ) ) ) ( CC and ) ( VP ( VB shore ) ( PRT ( RP up ) ) ( NP ( DT the ) ( NN pound ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ-1 ( NNP Mr. ) ( NNP Lawson ) ) ( VP ( VBD dismissed ) ( NP ( NP ( JJ other ) ( NNS approaches ) ) ( PP ( TO to ) ( S-NOM ( VP ( VBG managing ) ( NP ( DT the ) ( NN economy ) ) ) ) ) ) ) )

In reaffirming the current monetary policy of using high interest rates to fight inflation and shore up the pound Mr. Lawson dismissed other approaches to managing the economy


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VP ( VBZ monitors ) ( NP ( DT the ) ( JJ money-supply ) ( NNS figures ) ) ) ( CC but ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB give ) ( NP ( PRP them ) ) ( NP ( JJ paramount ) ( NN importance ) ) ) ) ( SBAR-ADV ( IN as ) ( S ( NP-SBJ ( DT some ) ( JJ private ) ( CC and ) ( NN government ) ( NNS economists ) ) ( VP ( VBP have ) ( VP ( VBN suggested ) ) ) ) ) ) ) ) ) )

He said he monitors the money-supply figures but does n't give them paramount importance as some private and government economists have suggested


( S ( NP-SBJ ( NNP Mr. ) ( NNP Lawson ) ) ( ADVP ( RB also ) ) ( VP ( VBD dismissed ) ( NP ( NP ( DT the ) ) ( NN possibility ) ( PP ( IN of ) ( S-NOM ( VP ( VBG imposing ) ( NP ( JJ direct ) ( NN credit ) ( NNS controls ) ) ( PP-CLR ( IN on ) ( NP ( NP ( NNP Britain ) ( POS 's ) ) ( JJ financial ) ( NN system ) ) ) ) ) ) ) ) )

Mr. Lawson also dismissed the possibility of imposing direct credit controls on Britain 's financial system


( S ( NP-SBJ ( NP ( NP ( NP ( NNP Mr. ) ( NNP Lawson ) ( POS 's ) ) ( NN speech ) ) ) ( VP ( VBN delivered ) ( PP-LOC ( IN at ) ( NP ( NP ( NP ( NAC ( DT the ) ( NNP Lord ) ( NNP Mayor ) ( PP ( IN of ) ( NP ( NNP London ) ) ) ) ( POS 's ) ) ( JJ annual ) ( NN dinner ) ) ( PP-LOC ( IN at ) ( NP ( NNP Mansion ) ( NNP House ) ) ) ) ) ) ) ( VP ( VBD came ) ( PP-TMP ( IN on ) ( NP ( NP ( DT the ) ( NNS heels ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( JJ grueling ) ( NN period ) ) ( PP ( IN for ) ( NP ( DT the ) ( NNP U.K. ) ( NN economy ) ) ) ) ) ) ) ) )

Mr. Lawson 's speech delivered at the Lord Mayor of London 's annual dinner at Mansion House came on the heels of a grueling period for the U.K. economy


( S ( ADVP-TMP ( NP ( CD Two ) ( NNS weeks ) ) ( RB ago ) ) ( PP-LOC ( IN in ) ( NP ( DT a ) ( NN campaign ) ( S ( VP ( TO to ) ( VP ( VP ( VB blunt ) ( NP ( NN inflation ) ) ( PP-LOC ( IN at ) ( NP ( NN home ) ) ) ) ( CC and ) ( VP ( VB arrest ) ( NP ( NP ( DT a ) ( JJ world-wide ) ( NN plunge ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN pound ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD raised ) ( NP ( NN base ) ( NNS rates ) ) ( NP-EXT ( QP ( DT a ) ( JJ full ) ) ( NN percentage ) ( NN point ) ) ( PP-DIR ( TO to ) ( NP ( CD 15 ) ( NN % ) ) ) ) )

Two weeks ago in a campaign to blunt inflation at home and arrest a world-wide plunge in the pound he raised base rates a full percentage point to 15 %


( S ( PP ( IN Despite ) ( NP ( DT the ) ( NN increase ) ) ) ( NP-SBJ ( DT the ) ( JJ British ) ( NN currency ) ) ( VP ( VBD slid ) ( PP-DIR ( IN below ) ( NP ( NP ( DT a ) ( VBN perceived ) ( NN threshold ) ) ( PP ( IN of ) ( NP ( CD three ) ( NNS marks ) ) ) ) ) ( NP-TMP ( RB early ) ( JJ last ) ( NN week ) ) ) )

Despite the increase the British currency slid below a perceived threshold of three marks early last week


( S ( NP-SBJ-1 ( PRP It ) ) ( VP ( VBD was ) ( VP ( VBN quoted ) ( PP-CLR ( IN at ) ( NP ( CD 2.9428 ) ( NNS marks ) ) ) ( PP-LOC ( IN in ) ( NP ( JJ late ) ( NNP New ) ( NNP York ) ( NN trading ) ) ) ( NP-TMP ( NNP Wednesday ) ) ) ) )

It was quoted at 2.9428 marks in late New York trading Wednesday


( SINV ( VP-TPC-2 ( VBG Leading ) ( ADVP-DIR ( IN up ) ( PP ( TO to ) ( NP ( DT the ) ( NN speech ) ) ) ) ) ( VP ( VBD was ) ) ( NP-SBJ ( NP ( DT a ) ( NN drumroll ) ) ( PP ( IN of ) ( NP ( NP ( JJ economic ) ( NNS statistics ) ) ( VP ( VBG suggesting ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT the ) ( JJ British ) ( NN war ) ) ( PP ( IN on ) ( NP ( NN inflation ) ) ) ) ( VP ( MD will ) ( VP ( VB be ) ( ADJP-PRD ( ADJP ( RBR more ) ( VBG bruising ) ) ( SBAR ( IN than ) ( S ( ADVP-TMP ( RB previously ) ) ( VP ( VBN assumed ) ) ) ) ) ) ) ) ) ) ) ) ) )

Leading up to the speech was a drumroll of economic statistics suggesting that the British war on inflation will be more bruising than previously assumed


( S ( NP-SBJ ( NN Unemployment ) ) ( PP-TMP ( IN in ) ( NP ( NNP September ) ) ) ( VP ( VBD dropped ) ( PP-DIR ( TO to ) ( NP ( NP ( CD 1,695,000 ) ) ( NP ( NP ( DT the ) ( JJS lowest ) ( NN level ) ) ( PP-TMP ( IN since ) ( NP ( CD 1980 ) ) ) ) ) ) ) )

Unemployment in September dropped to 1,695,000 the lowest level since 1980


( S ( SBAR-ADV ( IN While ) ( S ( NP-SBJ ( JJR lower ) ( NN joblessness ) ) ( VP ( VBZ is ) ( ADVP ( RB generally ) ) ( NP-PRD ( JJ good ) ( NN news ) ) ) ) ) ( NP-SBJ ( NP ( DT the ) ( JJ hefty ) ( NN drop ) ) ( NP-TMP ( JJ last ) ( NN month ) ) ) ( VP ( VBZ indicates ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN economy ) ) ( VP ( VBZ is ) ( RB n't ) ( VP ( VBG slowing ) ( PRT ( RP down ) ) ( ADVP ( ADVP ( RB as ) ( RB much ) ) ( SBAR ( IN as ) ( S ( VP ( VBN hoped ) ) ) ) ) ( PP ( IN despite ) ( NP ( NP ( DT a ) ( NN doubling ) ) ( PP ( IN of ) ( NP ( NN interest ) ( NNS rates ) ) ) ( PP-TMP ( IN over ) ( NP ( DT the ) ( JJ last ) ( CD 16 ) ( NNS months ) ) ) ) ) ) ) ) ) ) )

While lower joblessness is generally good news the hefty drop last month indicates that the economy is n't slowing down as much as hoped despite a doubling of interest rates over the last 16 months


( S ( ADVP-TMP ( RB Meanwhile ) ) ( NP-SBJ ( NP ( JJ average ) ( NNS earnings ) ) ( PP-LOC ( IN in ) ( NP ( NNP Britain ) ) ) ) ( VP ( VBD were ) ( ADVP-PRD ( RB up ) ( NP ( CD 8.75 ) ( NN % ) ) ) ( PP-TMP ( IN in ) ( NP ( NNP August ) ) ) ( PP-1 ( IN over ) ( NP ( DT the ) ( JJ previous ) ( NN year ) ) ) ) )

Meanwhile average earnings in Britain were up 8.75 % in August over the previous year


( S ( NP-SBJ ( DT Another ) ( JJ inflationary ) ( NN sign ) ) ( VP ( VBD came ) ( PP-LOC ( IN in ) ( NP ( NP ( DT a ) ( NN surge ) ) ( PP-LOC ( IN in ) ( NP ( JJ building-society ) ( NN lending ) ) ) ( PP ( TO to ) ( NP ( NP ( NP ( DT a ) ( NN record ) ( QP ( CD 10.2 ) ( CD billion ) ) ) ( PRN ( NP ( QP ( CD 16.22 ) ( CD billion ) ) ) ) ( NP-TMP ( JJ last ) ( NN month ) ) ) ( NP ( NP ( DT a ) ( ADJP ( RB much ) ( JJR higher ) ) ( NN level ) ) ( SBAR ( IN than ) ( S ( NP-SBJ ( NNS economists ) ) ( VP ( VBD had ) ( VP ( VBN predicted ) ) ) ) ) ) ) ) ) ) ) )

Another inflationary sign came in a surge in building-society lending to a record 10.2 billion 16.22 billion last month a much higher level than economists had predicted


( S ( PP-LOC ( IN In ) ( NP ( NP ( DT a ) ( JJ separate ) ( NN speech ) ) ( VP ( VBN prepared ) ( PP-PRP ( IN for ) ( NP ( NP ( NN delivery ) ) ( PP-LOC ( IN at ) ( NP ( DT the ) ( NN dinner ) ) ) ) ) ) ) ) ( NP-SBJ ( NP ( NNP Robin ) ( NNP Leigh-Pemberton ) ) ( NP ( NAC ( NNP Bank ) ( PP ( IN of ) ( NP ( NNP England ) ) ) ) ( NN governor ) ) ) ( VP ( VBD conceded ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NN demand ) ( NNS pressures ) ) ( VP ( VBD were ) ( ADJP-PRD ( ADJP ( ADVP ( RB even ) ( RBR more ) ) ( JJ buoyant ) ) ( SBAR ( IN than ) ( S ( VP ( VBD had ) ( VP ( VBN been ) ( VP ( VBN appreciated ) ( SBAR-TMP ( WHADVP-2 ( WRB when ) ) ( S ( NP-SBJ ( DT the ) ( JJ British ) ( NN economy ) ) ( VP ( VBD was ) ( VP ( VBG heating ) ( PRT ( RP up ) ) ( NP-TMP ( JJ last ) ( NN year ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

In a separate speech prepared for delivery at the dinner Robin Leigh-Pemberton Bank of England governor conceded that demand pressures were even more buoyant than had been appreciated when the British economy was heating up last year


( S ( NP-SBJ ( PRP He ) ) ( VP ( VP ( VBD added ) ( SBAR ( IN that ) ( S ( NP-SBJ ( EX there ) ) ( VP ( VBZ 's ) ( NP-PRD ( NP ( DT no ) ( JJ quick-fix ) ( NN solution ) ) ( PP ( TO to ) ( NP ( DT the ) ( JJ economic ) ( NNS woes ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( JJ tight ) ( JJ monetary ) ( NN policy ) ) ( VP ( VBZ is ) ( NP-PRD ( DT the ) ( JJ right ) ( NN approach ) ) ) ) ) ) ) )

He added that there 's no quick-fix solution to the economic woes and said tight monetary policy is the right approach


( S ( S-ADV ( VP ( VBG Discussing ) ( NP ( NP ( DT the ) ( JJ recent ) ( NN slide ) ) ( PP-LOC ( IN in ) ( NP ( NN stock ) ( NNS prices ) ) ) ) ) ) ( NP-SBJ-1 ( DT the ) ( JJ central ) ( NN bank ) ( NN governor ) ) ( VP ( VBD stated ) ( SBAR ( IN that ) ( S ( NP-SBJ-2 ( DT the ) ( NNS markets ) ) ( ADVP-TMP ( RB now ) ) ( VP ( VBP appear ) ( S ( VP ( TO to ) ( VP ( VB have ) ( VP ( VBN steadied ) ) ) ) ) ( PP-TMP ( IN after ) ( NP ( NP ( DT the ) ( JJ nasty ) ( NN jolt ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJ 190.58-point ) ( NN plunge ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP Dow ) ( NNP Jones ) ( NNP Industrial ) ( NNP Average ) ) ) ( ADVP-TMP ( NP ( DT a ) ( NN week ) ) ( RB ago ) ) ) ) ) ) ) ) ) ) )

Discussing the recent slide in stock prices the central bank governor stated that the markets now appear to have steadied after the nasty jolt of the 190.58-point plunge in the Dow Jones Industrial Average a week ago


( S ( SBAR-ADV ( IN Although ) ( S ( NP-SBJ ( DT the ) ( NNP New ) ( NNP York ) ( NN market ) ( NN plunge ) ) ( VP ( VBD prompted ) ( NP ( NP ( DT a ) ( JJ 70.5-point ) ( NN drop ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP London ) ( NNP Financial ) ( NNP Times-Stock ) ( NNP Exchange ) ( CD 100 ) ( NNP Share ) ( NNP Index ) ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Leigh-Pemberton ) ) ( VP ( VBD declared ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN experience ) ) ( VP ( VBD owed ) ( NP ( NN nothing ) ) ( PP-CLR ( TO to ) ( NP ( NP ( DT the ) ( JJ particular ) ( NNS problems ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ British ) ( NN economy ) ) ) ) ) ) ) ) ) )

Although the New York market plunge prompted a 70.5-point drop in the London Financial Times-Stock Exchange 100 Share Index Mr. Leigh-Pemberton declared that the experience owed nothing to the particular problems of the British economy


( S ( ADVP ( RB Specifically ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD pointed ) ( PRT ( RP out ) ) ( SBAR ( IN that ) ( S ( PP ( VBN compared ) ( PP ( IN with ) ( NP ( DT the ) ( NNP U.S. ) ( NN market ) ) ) ) ( NP-SBJ ( DT the ) ( NNP U.K. ) ) ( VP ( VBZ has ) ( NP ( ADJP ( RB far ) ( RBR fewer ) ) ( ADJP ( RB highly ) ( VBN leveraged ) ) ( NN junk-bond ) ( NNS financings ) ) ) ) ) ) )

Specifically he pointed out that compared with the U.S. market the U.K. has far fewer highly leveraged junk-bond financings


( S ( S ( S-ADV ( VP ( VBG Discussing ) ( NP ( JJ future ) ( JJ monetary ) ( NNS arrangements ) ) ) ) ( NP-SBJ-1 ( NNP Mr. ) ( NNP Lawson ) ) ( VP ( VBD repeated ) ( NP ( NP ( DT the ) ( NNP Thatcher ) ( NN government ) ( POS 's ) ) ( NN commitment ) ( S ( VP ( TO to ) ( VP ( VB join ) ( NP ( NP ( DT the ) ( NN exchange ) ( NN rate ) ( NN mechanism ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP European ) ( NNP Monetary ) ( NNP System ) ) ) ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB indicate ) ( NP ( WRB when ) ) ) ) ) )

Discussing future monetary arrangements Mr. Lawson repeated the Thatcher government 's commitment to join the exchange rate mechanism of the European Monetary System but he did n't indicate when


( S ( NP-SBJ ( NNP General ) ( NNP Electric ) ( NNP Co. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD signed ) ( NP ( NP ( DT a ) ( NN contract ) ) ) ( PP ( IN with ) ( NP ( NP ( DT the ) ( NNS developers ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Ocean ) ( NNP State ) ( NNP Power ) ( NN project ) ) ) ) ) ( PP-3 ( IN for ) ( NP ( NP ( DT the ) ( JJ second ) ( NN phase ) ) ( PP ( IN of ) ( NP ( NP ( DT an ) ( JJ independent ) ( ADJP ( QP ( CD 400 ) ( CD million ) ) ) ( NN power ) ( NN plant ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( VBZ is ) ( VP ( VBG being ) ( VP ( VBN built ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Burrillville ) ) ( NP ( NNP R.I ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

General Electric Co. said it signed a contract with the developers of the Ocean State Power project for the second phase of an independent 400 million power plant which is being built in Burrillville R.I


( S ( NP-SBJ ( NP ( NNP GE ) ) ( ADVP ( IN along ) ( PP ( IN with ) ( NP ( NP ( DT a ) ( NN division ) ) ( PP ( IN of ) ( NP ( NP ( NNP Ebasco ) ) ( NP ( NP ( DT a ) ( NN subsidiary ) ) ( PP ( IN of ) ( NP ( NNP Enserch ) ( NNP Corp. ) ) ) ) ) ) ) ) ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( VP ( VBG building ) ( NP ( NP ( DT the ) ( JJ first ) ( JJ 250-megawatt ) ( NN phase ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN project ) ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( NP-SBJ-1 ( PRP they ) ) ( VP ( VBP expect ) ( S ( VP ( TO to ) ( VP ( VB complete ) ( PP-TMP ( IN in ) ( NP ( JJ late ) ( CD 1990 ) ) ) ) ) ) ) ) ) ) ) ) ) )

GE along with a division of Ebasco a subsidiary of Enserch Corp. have been building the first 250-megawatt phase of the project which they expect to complete in late 1990


( S ( NP-SBJ-1 ( DT The ) ( JJ second ) ( NN portion ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN completed ) ( NP-TMP ( DT the ) ( JJ following ) ( NN year ) ) ) ) ) )

The second portion will be completed the following year


( S ( NP-SBJ ( NP ( NNP GE ) ( POS 's ) ) ( NNP Power ) ( NNP Generation ) ( NN subsidiary ) ) ( VP ( MD will ) ( VP ( VB operate ) ( CC and ) ( VB maintain ) ( NP ( DT the ) ( NN plant ) ) ( PP-TMP ( IN upon ) ( NP ( PRP$ its ) ( NN completion ) ) ) ) ) )

GE 's Power Generation subsidiary will operate and maintain the plant upon its completion


( S ( NP-SBJ-1 ( NP ( NNP Terry ) ( NNP L. ) ( NNP Haines ) ) ( RB formerly ) ( NP ( NP ( JJ general ) ( NN manager ) ) ( PP ( IN of ) ( NP ( JJ Canadian ) ( NNS operations ) ) ) ) ) ( VP ( VBD was ) ( VP ( VBN elected ) ( PP-CLR ( TO to ) ( NP ( NP ( DT the ) ( JJ new ) ( NN position ) ) ( PP ( IN of ) ( NP ( NP ( NN vice ) ( NN president ) ) ( NP ( JJ North ) ( JJ American ) ( NNS sales ) ) ( PP ( IN of ) ( NP ( DT this ) ( NNS plastics ) ( NN concern ) ) ) ) ) ) ) ) ) )

Terry L. Haines formerly general manager of Canadian operations was elected to the new position of vice president North American sales of this plastics concern


( S ( ADVP ( RB Also ) ) ( NP-SBJ-1 ( NP ( NNP Larry ) ( NNP A. ) ( NNP Kushkin ) ) ( NP ( NP ( JJ executive ) ( NN vice ) ( NN president ) ) ( NP ( JJ North ) ( JJ American ) ( NNS operations ) ) ) ) ( VP ( VBD was ) ( VP ( VBN named ) ( S ( NP-PRD ( NP ( NP ( NN head ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( JJ international ) ( JJ automotive ) ( NNS operations ) ) ) ) ( NP ( DT another ) ( JJ new ) ( NN position ) ) ) ) ) ) )

Also Larry A. Kushkin executive vice president North American operations was named head of the company 's international automotive operations another new position


( S-1 ( S ( NP-SBJ ( PRP He ) ) ( VP ( VBZ remains ) ( NP-PRD ( DT an ) ( JJ executive ) ( NN vice ) ( NN president ) ) ) ) ( PRN ( S ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBD said ) ) ) ) ( CC and ) ( S ( NP-SBJ ( PRP$ his ) ( JJ new ) ( NN position ) ) ( VP ( VBZ reflects ) ( NP ( NP ( DT the ) ( VBG growing ) ( NN importance ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN world ) ( JJ automotive ) ( NN market ) ) ) ( PP ( IN as ) ( NP ( NP ( DT a ) ( NN market ) ) ( PP ( IN for ) ( NP ( NP ( NNP A. ) ( NNP Schulman ) ( POS 's ) ) ( JJ high ) ( NN performance ) ( NN plastic ) ( NNS materials ) ) ) ) ) ) ) ) )

He remains an executive vice president the company said and his new position reflects the growing importance of the world automotive market as a market for A. Schulman 's high performance plastic materials


( S ( S-TPC-2 ( S ( NP-SBJ ( NNP Gordon ) ( NNP Trimmer ) ) ( VP ( MD will ) ( VP ( VB succeed ) ( NP ( NNP Mr. ) ( NNP Haines ) ) ( PP-CLR ( IN as ) ( NP ( NP ( NN manager ) ) ( PP ( IN of ) ( NP ( NNP Canadian ) ( NNS operations ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ-1 ( NP ( NNP Mr. ) ( NNP Kushkin ) ( POS 's ) ) ( JJ former ) ( NN position ) ) ( VP ( VBZ is ) ( RB n't ) ( VP ( VBG being ) ( VP ( VBN filled ) ( PP-TMP ( IN at ) ( NP ( DT this ) ( NN time ) ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBD said ) ) )

Gordon Trimmer will succeed Mr. Haines as manager of Canadian operations and Mr. Kushkin 's former position is n't being filled at this time the company said


( S ( NP-SBJ ( NNP USACafes ) ( NNP Limited ) ( NNP Partnership ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD completed ) ( NP ( NP ( DT the ) ( NN sale ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( NNP Bonanza ) ( NN restaurant ) ( NN franchise ) ( NN system ) ) ) ( PP ( TO to ) ( NP ( NP ( DT a ) ( NN subsidiary ) ) ( PP ( IN of ) ( NP ( NNP Metromedia ) ( NNP Co. ) ) ) ) ) ( PP ( IN for ) ( NP ( NP ( QP ( CD 71 ) ( CD million ) ) ) ( PP ( IN in ) ( NP ( NN cash ) ) ) ) ) ) ) ) ) ) )

USACafes Limited Partnership said it completed the sale of its Bonanza restaurant franchise system to a subsidiary of Metromedia Co. for 71 million in cash


( S ( NP-SBJ ( NP ( NNP USACafes ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ is ) ( ADJP-PRD ( RB nearly ) ( JJ half-owned ) ( PP ( IN by ) ( NP ( NP ( NNP Sam ) ( CC and ) ( NNP Charles ) ( NNP Wyly ) ) ( PP ( IN of ) ( NP ( NNP Dallas ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD will ) ( VP ( VB distribute ) ( NP ( NP ( NNS proceeds ) ) ( PP ( IN from ) ( NP ( DT the ) ( NN sale ) ) ) ) ( PP-DIR ( TO to ) ( NP ( NN unit ) ( NNS holders ) ) ) ( PP ( IN as ) ( NP ( DT a ) ( NN liquidating ) ( NN dividend ) ) ) ( ADVP-TMP ( ADVP ( RB as ) ( RB soon ) ) ( PP ( IN as ) ( ADJP ( JJ possible ) ) ) ) ) ) ) ) ) )

USACafes which is nearly half-owned by Sam and Charles Wyly of Dallas said it will distribute proceeds from the sale to unit holders as a liquidating dividend as soon as possible


( S ( NP-SBJ ( NP ( DT The ) ( NNP Bonanza ) ( NN franchise ) ( NN system ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ generates ) ( NP ( NP ( QP ( RB about ) ( CD 600 ) ( CD million ) ) ) ( PP-LOC ( IN in ) ( NP ( NNS sales ) ) ) ) ( ADVP-TMP ( RB annually ) ) ) ) ) ) ( VP ( VBD represented ) ( NP ( NP ( RB substantially ) ( DT all ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN partnership ) ( POS 's ) ) ( NNS assets ) ) ) ) ) )

The Bonanza franchise system which generates about 600 million in sales annually represented substantially all of the partnership 's assets


( S ( S-TPC-2 ( NP-SBJ-1 ( NP ( DT The ) ( NN sale ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN system ) ) ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( VBN challenged ) ( PP-LOC ( IN in ) ( NP ( NP ( DT a ) ( JJ class-action ) ( NN suit ) ) ( PP ( IN on ) ( NP ( NP ( NN behalf ) ) ( PP ( IN of ) ( NP ( NN unit ) ( NNS holders ) ) ) ) ) ( VP ( VBN filed ) ( NP-TMP ( JJ last ) ( NN week ) ) ( PP-LOC-CLR ( IN in ) ( NP ( DT a ) ( NNP Delaware ) ( NN court ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP USACafes ) ) ( VP ( VBD said ) ) )

The sale of the system has been challenged in a class-action suit on behalf of unit holders filed last week in a Delaware court USACafes said


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ believes ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN suit ) ) ( VP ( VBZ is ) ( PP-PRD ( IN without ) ( NP ( NN merit ) ) ) ) ) ) ) ) ) ) )

The company said it believes the suit is without merit


( S ( NP-SBJ-1 ( NP ( NP ( NNP Eagle ) ( NNP Financial ) ( NNP Corp. ) ) ( CC and ) ( NP ( NNP Webster ) ( NNP Financial ) ( NNP Corp. ) ) ) ( NP ( CD two ) ( NNP Connecticut ) ( NNS savings ) ( JJ bank-holding ) ( NNS companies ) ) ) ( VP ( VBD agreed ) ( S ( VP ( TO to ) ( VP ( VB merge ) ( PP-LOC ( IN in ) ( NP ( DT a ) ( JJ tax-free ) ( NN stock ) ( NN transaction ) ) ) ) ) ) ) )

Eagle Financial Corp. and Webster Financial Corp. two Connecticut savings bank-holding companies agreed to merge in a tax-free stock transaction


( S ( NP-SBJ ( NP ( DT The ) ( JJ new ) ( VBG holding ) ( NN company ) ) ( NP ( NNP Webster\/Eagle ) ( NNP Bancorp ) ( NNP Inc. ) ) ) ( VP ( MD will ) ( VP ( VB have ) ( NP ( NP ( NP ( QP ( RB about ) ( CD 1.2 ) ( CD billion ) ) ) ( PP ( IN of ) ( NP ( NNS assets ) ) ) ) ( CC and ) ( NP ( NP ( CD 19 ) ( NN banking ) ( NNS offices ) ) ( PP-LOC ( IN in ) ( NP ( NNP Connecticut ) ) ) ) ) ) ) )

The new holding company Webster\/Eagle Bancorp Inc. will have about 1.2 billion of assets and 19 banking offices in Connecticut


( S ( NP-SBJ ( JJ Tangible ) ( NN capital ) ) ( VP ( MD will ) ( VP ( VB be ) ( NP-PRD ( QP ( RB about ) ( CD 115 ) ( CD million ) ) ) ) ) )

Tangible capital will be about 115 million


( S ( NP-SBJ ( DT The ) ( NN merger ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ subject ) ( PP ( TO to ) ( NP ( NP ( JJ regulatory ) ( NN clearance ) ) ( CC and ) ( NP ( DT a ) ( JJ definitive ) ( NN agreement ) ) ) ) ) ) )

The merger is subject to regulatory clearance and a definitive agreement


( S ( PP-LOC ( IN In ) ( NP ( DT the ) ( NN merger ) ) ) ( NP-SBJ-1 ( NP ( DT each ) ( NN share ) ) ( PP ( IN of ) ( NP ( NP ( NNP Webster ) ) ( VP ( VBN based ) ( PP-LOC-CLR ( IN in ) ( NP ( NNP Waterbury ) ) ) ) ) ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN converted ) ( PP-CLR ( IN into ) ( NP ( NP ( CD one ) ( NN share ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ new ) ( NN company ) ) ) ) ) ) ) ) )

In the merger each share of Webster based in Waterbury will be converted into one share of the new company


( S ( NP-SBJ ( NP ( NP ( DT Each ) ( NN share ) ) ( PP ( IN of ) ( NP ( NNP Eagle ) ) ) ) ( VP ( VBN based ) ( PP-LOC-CLR ( IN in ) ( NP ( NNP Bristol ) ) ) ) ) ( VP ( MD will ) ( VP ( VB become ) ( NP-PRD ( NP ( CD 0.95 ) ( NN share ) ) ( PP ( IN of ) ( NP ( NNP Webster\/Eagle ) ) ) ) ) ) )

Each share of Eagle based in Bristol will become 0.95 share of Webster\/Eagle


( S ( PP-LOC ( IN In ) ( NP ( NNP American ) ( NNP Stock ) ( NNP Exchange ) ( NN composite ) ( NN trading ) ) ) ( NP-TMP ( NNP Friday ) ) ( NP-SBJ ( NNP Eagle ) ( NNS shares ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 12.5 ) ( NNS cents ) ) ( PP-DIR ( TO to ) ( NP ( CD 11 ) ) ) ) )

In American Stock Exchange composite trading Friday Eagle shares rose 12.5 cents to 11


( S ( PP-LOC ( IN In ) ( NP ( JJ national ) ( JJ over-the-counter ) ( NN trading ) ) ) ( NP-SBJ ( NNP Webster ) ( NNS shares ) ) ( VP ( VBD fell ) ( NP-EXT ( CD 25 ) ( NNS cents ) ) ( PP-DIR ( TO to ) ( NP ( CD 12.375 ) ) ) ) )

In national over-the-counter trading Webster shares fell 25 cents to 12.375


( S ( S ( NP-SBJ-1 ( NNP Webster ) ) ( VP ( VBZ has ) ( NP ( NP-2 ( QP ( CD 3.5 ) ( CD million ) ) ( NNS shares ) ) ( ADJP ( JJ outstanding ) ) ) ) ) ( CC and ) ( S ( NP-SBJ=1 ( NNP Eagle ) ) ( NP=2 ( CD 2.6 ) ( CD million ) ) ) )

Webster has 3.5 million shares outstanding and Eagle 2.6 million


( S ( NP-SBJ ( PRP$ Their ) ( VBN indicated ) ( NN market ) ( NNS values ) ) ( ADVP ( RB thus ) ) ( VP ( VBP are ) ( NP-PRD ( QP ( RB about ) ( CD 43.3 ) ( CD million ) ( CC and ) ( CD 28.6 ) ( CD million ) ) ) ( ADVP ( RB respectively ) ) ) )

Their indicated market values thus are about 43.3 million and 28.6 million respectively


( S ( S ( NP-SBJ ( NP ( NNP Frank ) ( NNP J. ) ( NNP Pascale ) ) ( NP ( NP ( NN chairman ) ) ( PP ( IN of ) ( NP ( NNP Eagle ) ) ) ) ) ( VP ( MD will ) ( VP ( VB be ) ( NP-PRD ( NP ( NN chairman ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ new ) ( NN firm ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NP ( NNP James ) ( NNP C. ) ( NNP Smith ) ) ( NP ( NP ( NP ( NN president ) ) ( CC and ) ( NP ( JJ chief ) ( JJ executive ) ( NN officer ) ) ) ( PP ( IN of ) ( NP ( NNP Webster ) ) ) ) ) ( VP ( MD will ) ( VP ( VB take ) ( NP ( DT those ) ( NNS posts ) ) ( PP-LOC ( IN at ) ( NP ( NNP Webster\/Eagle ) ) ) ) ) ) )

Frank J. Pascale chairman of Eagle will be chairman of the new firm and James C. Smith president and chief executive officer of Webster will take those posts at Webster\/Eagle


( S ( NP-SBJ ( NP ( NNP Harold ) ( NNP W. ) ( NNP Smith ) ( NNP Sr. ) ) ( NP ( NP ( NN chairman ) ) ( PP ( IN of ) ( NP ( NNP Webster ) ) ) ) ) ( VP ( MD will ) ( VP ( VB become ) ( NP-PRD ( NP ( NP ( NN chairman ) ( NN emeritus ) ) ( CC and ) ( NP ( DT a ) ( NN director ) ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ new ) ( NN company ) ) ) ) ) ) )

Harold W. Smith Sr. chairman of Webster will become chairman emeritus and a director of the new company


( S ( NP-SBJ ( NP ( NNP Ralph ) ( NNP T. ) ( NNP Linsley ) ) ( NP ( NP ( NN vice ) ( NN chairman ) ) ( PP ( IN of ) ( NP ( NNP Eagle ) ) ) ) ) ( VP ( MD will ) ( VP ( VB become ) ( NP-PRD ( NP ( NN vice ) ( NN chairman ) ) ( PP ( IN of ) ( NP ( NNP Webster\/Eagle ) ) ) ) ) ) )

Ralph T. Linsley vice chairman of Eagle will become vice chairman of Webster\/Eagle


( S ( NP-SBJ ( DT The ) ( NN board ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN made ) ( PRT ( RP up ) ) ( PP-CLR ( IN of ) ( NP ( NP ( CD seven ) ( NNS directors ) ) ( PP ( IN of ) ( NP ( DT each ) ( VBG holding ) ( NN company ) ) ) ) ) ) ) ) )

The board will be made up of seven directors of each holding company


( S ( PP-LOC ( IN In ) ( NP ( DT an ) ( NN interview ) ) ) ( NP-SBJ ( NNP James ) ( NNP Smith ) ) ( VP ( VBD said ) ( SBAR ( S ( S ( NP-SBJ ( NP ( DT the ) ( NNS banks ) ( POS ' ) ) ( NNS markets ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ contiguous ) ) ) ) ( CC and ) ( S ( NP-SBJ ( PRP$ their ) ( NN business ) ( NNS philosophies ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ similar ) ( CC and ) ( JJ conservative ) ) ) ) ) ) ) )

In an interview James Smith said the banks ' markets are contiguous and their business philosophies are similar and conservative


( S ( S-TPC-1 ( NP-SBJ ( VBG Nonperforming ) ( NNS loans ) ) ( VP ( MD will ) ( VP ( VB make ) ( PRT ( RP up ) ) ( NP ( NP ( QP ( RB only ) ( RB about ) ( CD 0.5 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( NP ( DT the ) ( VBN combined ) ( NNS banks ) ( POS ' ) ) ( JJ total ) ( NNS loans ) ) ( ADJP ( JJ outstanding ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) )

Nonperforming loans will make up only about 0.5 % of the combined banks ' total loans outstanding he said


( S ( PP-TMP ( IN At ) ( NP ( NNP June ) ( CD 30 ) ) ) ( NP-SBJ ( NP ( NNP Webster ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ owns ) ( NP ( NP ( NNP First ) ( NNP Federal ) ( NNP Savings ) ( CC & ) ( NNP Loan ) ( NNP Association ) ) ( PP ( IN of ) ( NP ( NNP Waterbury ) ) ) ) ) ) ) ) ( VP ( VBD had ) ( NP ( NP ( NNS assets ) ) ( PP ( IN of ) ( NP ( QP ( CD 699 ) ( CD million ) ) ) ) ) ) )

At June 30 Webster which owns First Federal Savings & Loan Association of Waterbury had assets of 699 million


( S ( NP-SBJ ( NP ( NNP Eagle ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ controls ) ( NP ( NP ( NNP Bristol ) ( NNP Federal ) ( NNP Savings ) ( NNP Bank ) ) ( CC and ) ( NP ( NP ( NNP First ) ( NNP Federal ) ( NNP Savings ) ( CC & ) ( NNP Loan ) ( NNP Association ) ) ( PP ( IN of ) ( NP ( NNP Torrington ) ) ) ) ) ) ) ) ) ( VP ( VBD had ) ( NP ( NP ( NNS assets ) ) ( PP ( IN of ) ( NP ( QP ( CD 469.6 ) ( CD million ) ) ) ) ) ( PP-TMP ( IN on ) ( NP ( DT that ) ( NN date ) ) ) ) )

Eagle which controls Bristol Federal Savings Bank and First Federal Savings & Loan Association of Torrington had assets of 469.6 million on that date


( S ( S ( NP-SBJ ( PRP It ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( DT the ) ( JJ second ) ( NN anniversary ) ) ( PP ( IN of ) ( NP ( DT the ) ( CD 1987 ) ( NN crash ) ) ) ) ) ) ( CC but ) ( S ( NP-TMP ( DT this ) ( NN time ) ) ( NP-SBJ ( PRP it ) ) ( VP ( VBD was ) ( ADJP-PRD ( JJ different ) ) ) ) )

It was the second anniversary of the 1987 crash but this time it was different


( S ( NP-SBJ ( NNS Stocks ) ) ( VP ( VBD rallied ) ( PP ( PP ( IN on ) ( NP ( JJ good ) ( NNS earnings ) ( NNS reports ) ) ) ( CC and ) ( PP ( IN on ) ( NP ( NP ( NNS data ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD showed ) ( NP ( NP ( JJR less ) ( NN inflation ) ) ( SBAR ( IN than ) ( S ( VP ( VBN expected ) ) ) ) ) ) ) ) ) ) ) ) )

Stocks rallied on good earnings reports and on data that showed less inflation than expected


( S ( NP-SBJ ( JJ Blue ) ( NNS chips ) ) ( VP ( VBD led ) ( NP ( NP ( DT the ) ( NN march ) ) ( ADVP ( RB up ) ) ) ( PP-LOC ( IN in ) ( NP ( JJ heavy ) ( NN trading ) ) ) ) )

Blue chips led the march up in heavy trading


( S ( NP-SBJ ( DT The ) ( NNP Dow ) ( NNP Jones ) ( NNP Industrial ) ( NNP Average ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 39.55 ) ( NNS points ) ) ( PP-DIR ( TO to ) ( NP ( CD 2683.20 ) ) ) ) )

The Dow Jones Industrial Average rose 39.55 points to 2683.20


( S ( NP-SBJ ( DT The ) ( CD 30 ) ( NNS industrials ) ) ( VP ( VBD led ) ( NP ( DT the ) ( NN market ) ) ( ADVP-DIR ( RBR higher ) ) ( PP-TMP ( IN from ) ( NP ( DT the ) ( NN opening ) ( NN bell ) ) ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( JJ foreign ) ( NNS buyers ) ) ( VP ( VBD stepped ) ( ADVP-DIR ( RP in ) ) ) ) ) ) )

The 30 industrials led the market higher from the opening bell as foreign buyers stepped in


( S ( PP-TMP ( IN By ) ( NP ( NN afternoon ) ) ) ( NP-SBJ ( DT the ) ( JJR broader ) ( NN market ) ) ( VP ( VBD joined ) ( NP ( DT the ) ( NN advance ) ) ( PP ( IN in ) ( NP ( JJ full ) ( NN strength ) ) ) ) )

By afternoon the broader market joined the advance in full strength


( S ( S ( NP-SBJ ( NP ( NNP Standard ) ( CC & ) ( NNP Poor ) ( POS 's ) ) ( JJ 500-stock ) ( NNP Index ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 5.37 ) ) ( PP-DIR ( TO to ) ( NP ( CD 347.13 ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( DT the ) ( NNP Nasdaq ) ( JJ composite ) ( NN index ) ) ( VP ( VBD jumped ) ( NP-EXT ( CD 7.52 ) ) ( PP-DIR ( TO to ) ( NP ( CD 470.80 ) ) ) ) ) )

Standard & Poor 's 500-stock Index rose 5.37 to 347.13 and the Nasdaq composite index jumped 7.52 to 470.80


( S ( NP-SBJ ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ( NN volume ) ) ( VP ( VBD swelled ) ( PP-DIR ( TO to ) ( NP ( CD 198,120,000 ) ( NNS shares ) ) ) ) )

New York Stock Exchange volume swelled to 198,120,000 shares


( S ( S ( NP-SBJ ( DT The ) ( NNS industrials ) ) ( VP ( VBD were ) ( ADVP-PRD ( RB up ) ( NP ( QP ( RB about ) ( CD 60 ) ) ( NNS points ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( NN afternoon ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( JJ cautious ) ( NNS investors ) ) ( VP ( VBD took ) ( NP ( NNS profits ) ) ( PP-TMP ( IN before ) ( NP ( DT the ) ( NN close ) ) ) ) ) )

The industrials were up about 60 points in the afternoon but cautious investors took profits before the close


( S ( NP-SBJ ( NNS Traders ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( DT a ) ( NN variety ) ) ( PP ( IN of ) ( NP ( NNS factors ) ) ) ) ( VP ( VBD triggered ) ( NP ( DT the ) ( NN rally ) ) ) ) ) ) )

Traders said a variety of factors triggered the rally


( S ( NP-SBJ ( DT The ) ( NN consumer ) ( NN price ) ( NN index ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 0.2 ) ( NN % ) ) ( PP-TMP ( IN in ) ( NP ( NNP September ) ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ ( JJ many ) ( NNS economists ) ) ( VP ( VBD were ) ( VP ( VBG looking ) ( PP-CLR ( IN for ) ( NP ( DT a ) ( ADJP ( CD 0.4 ) ( NN % ) ) ( NN increase ) ) ) ) ) ) ) ) )

The consumer price index rose 0.2 % in September while many economists were looking for a 0.4 % increase


( S ( NP-SBJ ( NP ( JJ Stock-index ) ( NN arbitrage ) ( NN buy ) ( NNS programs ) ) ( SBAR ( WHPP-2 ( IN in ) ( WHNP ( WDT which ) ) ) ( S ( NP-SBJ-1 ( NNS traders ) ) ( VP ( VBP buy ) ( NP ( NN stock ) ) ( PP ( IN against ) ( NP ( NP ( JJ offsetting ) ( NNS positions ) ) ( PP-LOC ( IN in ) ( NP ( NNS futures ) ) ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB lock ) ( PRT ( RP in ) ) ( NP ( NN price ) ( NNS differences ) ) ) ) ) ) ) ) ) ( VP ( VBD helped ) ( NP ( NP ( DT the ) ( NN rally ) ( POS 's ) ) ( NN momentum ) ) ) )

Stock-index arbitrage buy programs in which traders buy stock against offsetting positions in futures to lock in price differences helped the rally 's momentum


( S ( S-TPC-2 ( NP-SBJ ( DT The ) ( NN euphoria ) ) ( VP ( VBD was ) ( ADJP-PRD ( JJ such ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( NNS investors ) ) ( VP ( VBD responded ) ( PP-CLR ( TO to ) ( NP ( NP ( JJ good ) ( NNS earnings ) ( NNS reports ) ) ( PP ( IN of ) ( NP ( NP ( NNS companies ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NNP American ) ( NNP Express ) ) ) ) ) ) ) ( SBAR-ADV ( IN while ) ( S ( VP ( VBG ignoring ) ( NP ( NP ( DT the ) ( JJ disappointing ) ( NNS profits ) ) ( PP ( IN of ) ( NP ( NP ( NNS companies ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NNP Caterpillar ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNS analysts ) ) ( VP ( VBD said ) ) )

The euphoria was such that investors responded to good earnings reports of companies such as American Express while ignoring the disappointing profits of companies such as Caterpillar analysts said


( S ( S-TPC-1 ( NP-SBJ ( JJ Stock-index ) ( NN arbitrage ) ( NN trading ) ) ( VP ( VBD was ) ( NP-PRD ( DT a ) ( JJ minor ) ( NN influence ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NN yesterday ) ( POS 's ) ) ( NN rally ) ) ) ) ) ( NP-SBJ ( NNS traders ) ) ( VP ( VBD said ) ) )

Stock-index arbitrage trading was a minor influence in yesterday 's rally traders said


( S ( NP-SBJ ( JJ Institutional ) ( NNS buyers ) ) ( VP ( VBD were ) ( NP-PRD ( NP ( DT the ) ( JJ main ) ( NN force ) ) ( VP ( VBG pushing ) ( NP ( JJ blue ) ( NNS chips ) ) ( ADVP-DIR ( RBR higher ) ) ) ) ) )

Institutional buyers were the main force pushing blue chips higher


( S ( PP ( TO To ) ( NP ( NP ( DT the ) ( NN amazement ) ) ( PP ( IN of ) ( NP ( DT some ) ( NNS traders ) ) ) ) ) ( NP-SBJ ( NN takeover ) ( NNS stocks ) ) ( VP ( VBD were ) ( VP ( VBG climbing ) ( ADVP-TMP ( RB again ) ) ) ) )

To the amazement of some traders takeover stocks were climbing again


( S ( NP-SBJ ( NNP Hilton ) ) ( VP ( VBD rose ) ( NP-EXT ( QP ( CD 2 ) ( CD 7\/8 ) ) ) ( PP-DIR ( TO to ) ( NP ( CD 100 ) ) ) ( PP ( IN for ) ( NP ( NN example ) ) ) ) )

Hilton rose 2 7\/8 to 100 for example


( S ( NP-TMP ( JJ Last ) ( NNP Friday ) ) ( NP-SBJ-1 ( NN takeover ) ( NNS traders ) ) ( VP ( VBD spilled ) ( ADVP-DIR ( RP out ) ( PP ( IN of ) ( NP ( NNP Hilton ) ) ) ) ( S-ADV ( VP ( VBG knocking ) ( NP ( DT the ) ( NN stock ) ) ( ADVP-CLR ( RB down ) ( NP ( CD 21 ) ( CD 1\/2 ) ) ( PP ( TO to ) ( NP ( CD 85 ) ) ) ) ) ) ) )

Last Friday takeover traders spilled out of Hilton knocking the stock down 21 1\/2 to 85


( S ( PP-LOC ( IN Among ) ( NP ( NP ( JJ other ) ( NNS stocks ) ) ( VP ( VP ( VBN involved ) ( PP-CLR ( IN in ) ( NP ( NNS restructurings ) ) ) ) ( CC or ) ( VP ( VBN rumored ) ( S ( VP ( TO to ) ( VP ( VB be ) ( ADVP-PRD ( RB so ) ) ) ) ) ) ) ) ) ( S ( NP-SBJ ( NNP Holiday ) ( NNP Corp. ) ) ( VP ( VBD gained ) ( NP ( QP ( CD 1 ) ( CD 7\/8 ) ) ) ( PP-DIR ( TO to ) ( NP ( CD 73 ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NNP Honeywell ) ) ( VP ( VBD rose ) ( NP-EXT ( QP ( CD 2 ) ( CD 7\/8 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 81 ) ( CD 1\/2 ) ) ) ) ) ) )

Among other stocks involved in restructurings or rumored to be so Holiday Corp. gained 1 7\/8 to 73 and Honeywell rose 2 7\/8 to 81 1\/2


( S ( NP-SBJ ( CD One ) ( NN floor ) ( NN trader ) ) ( VP ( VBD noted ) ( PP ( IN in ) ( NP ( NN astonishment ) ) ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( NN nobody ) ) ( VP ( VBD seemed ) ( S ( VP ( TO to ) ( VP ( VB mind ) ( NP ( DT the ) ( NN news ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NNP British ) ( NNP Airways ) ) ( VP ( VBZ is ) ( RB n't ) ( VP ( VBG making ) ( NP ( DT a ) ( JJ special ) ( NN effort ) ( S ( VP ( TO to ) ( VP ( VB revive ) ( NP ( DT the ) ( NNP UAL ) ( NN buy-out ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

One floor trader noted in astonishment that nobody seemed to mind the news that British Airways is n't making a special effort to revive the UAL buy-out


( S ( NP-SBJ ( NP ( DT The ) ( NN announcement ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN buy-out ) ( POS 's ) ) ( NNS troubles ) ) ) ) ( VP ( VBD triggered ) ( NP ( NP ( NP ( DT the ) ( NN market ) ( POS 's ) ) ( NN nose ) ( NN dive ) ) ( ADVP-TMP ( NP ( DT a ) ( NN week ) ) ( RB ago ) ) ) ) )

The announcement of the buy-out 's troubles triggered the market 's nose dive a week ago


( S ( NP-SBJ-1 ( NN Takeover ) ( NN enthusiasm ) ) ( VP ( MD may ) ( VP ( VB have ) ( VP ( VBN been ) ( VP ( VBN renewed ) ( SBAR-TMP ( WHADVP-2 ( WRB when ) ) ( S ( NP-SBJ ( DT an ) ( NN investor ) ( NN group ) ) ( VP ( VBD disclosed ) ( NP-TMP ( NN yesterday ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD had ) ( VP ( VBN obtained ) ( NP ( NP ( DT all ) ( DT the ) ( NN financing ) ) ( VP ( VBN required ) ( S-PRP ( VP ( TO to ) ( VP ( VB complete ) ( NP ( NP ( PRP$ its ) ( ADJP ( QP ( CD 1.6 ) ( CD billion ) ) ) ( VBN leveraged ) ( NN buy-out ) ) ( PP ( IN of ) ( NP ( NNP American ) ( NNP Medical ) ( NNP International ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Takeover enthusiasm may have been renewed when an investor group disclosed yesterday that it had obtained all the financing required to complete its 1.6 billion leveraged buy-out of American Medical International


( SINV ( S-TPC-1 ( NP-SBJ ( DT That ) ) ( VP ( VBZ 's ) ( VP ( VB put ) ( NP ( DT some ) ( NN oomph ) ) ( ADVP-CLR ( RB back ) ) ( PP-PUT ( IN into ) ( NP ( DT this ) ( NN market ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Peter ) ( NNP VandenBerg ) ) ( NP ( NP ( DT a ) ( NN vice ) ( NN president ) ) ( PP ( IN of ) ( NP ( NN equity ) ( NN trading ) ) ) ( PP-LOC ( IN at ) ( NP ( NNP Shearson ) ( NNP Lehman ) ( NNP Hutton ) ) ) ) ) )

That 's put some oomph back into this market said Peter VandenBerg a vice president of equity trading at Shearson Lehman Hutton


( S ( CC But ) ( NP-SBJ ( DT some ) ( NNS traders ) ) ( VP ( VBD thought ) ( SBAR ( S ( NP-SBJ ( EX there ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( JJR less ) ) ( PP ( TO to ) ( NP ( DT the ) ( NN rally ) ) ) ( SBAR ( IN than ) ( S ( VP ( VBD met ) ( NP ( DT the ) ( NN eye ) ) ) ) ) ) ) ) ) ) )

But some traders thought there was less to the rally than met the eye


( S ( S-TPC-1 ( NP-SBJ ( EX There ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT no ) ( NN strength ) ) ( PP-LOC ( IN behind ) ( NP ( DT this ) ( NN rally ) ) ) ) ) ) ( VP ( VBD asserted ) ) ( NP-SBJ ( NP ( NNP Chung ) ( NNP Lew ) ) ( NP ( NP ( NN head ) ( NN trader ) ) ( PP-LOC ( IN at ) ( NP ( NNP Kleinwort ) ( NNP Benson ) ( NNP North ) ( NNP America ) ) ) ) ) )

There is no strength behind this rally asserted Chung Lew head trader at Kleinwort Benson North America


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBZ 's ) ( S-NOM-PRD ( NP-SBJ ( NNS traders ) ) ( VP ( VBG squaring ) ( NP ( NNS positions ) ) ) ) ) )

It 's traders squaring positions


( S ( S ( NP-SBJ ( PRP It ) ) ( VP ( VBZ 's ) ( RB not ) ( ADJP-PRD ( JJ good ) ) ) ) ( S ( NP-SBJ ( DT the ) ( NN market ) ) ( VP ( VBZ is ) ( VP ( VBG setting ) ( PRT ( RP up ) ) ( PP-CLR ( IN for ) ( NP ( DT another ) ( NN fall ) ) ) ) ) ) )

It 's not good the market is setting up for another fall


( S ( ADVP ( RB Indeed ) ) ( NP-SBJ ( JJ many ) ( NNS traders ) ) ( VP ( VBD said ) ( SBAR ( DT that ) ( S ( NP-SBJ ( NP ( NN uncertainty ) ) ( PP ( IN about ) ( NP ( NP ( NP ( NN today ) ( POS 's ) ) ( JJ monthly ) ( NN expiration ) ) ( PP ( IN of ) ( NP ( NP ( JJ stocks-index ) ( NNS futures ) ( CC and ) ( NNS options ) ) ( CC and ) ( NP ( NP ( NNS options ) ) ( PP-LOC ( IN on ) ( NP ( JJ individual ) ( NNS stocks ) ) ) ) ) ) ) ) ) ( VP ( VBD prompted ) ( NP ( NP ( DT a ) ( NN lot ) ) ( PP ( IN of ) ( NP ( NP ( NN buying ) ) ( PP ( IN by ) ( NP ( NP ( JJ speculative ) ( NNS traders ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBD were ) ( VP ( VBG unwinding ) ( NP ( NP ( NNS positions ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( VBD were ) ( NP-PRD ( NP ( NNS bets ) ) ( PP ( IN on ) ( NP ( JJ declining ) ( NN stock ) ( NNS prices ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Indeed many traders said that uncertainty about today 's monthly expiration of stocks-index futures and options and options on individual stocks prompted a lot of buying by speculative traders who were unwinding positions that were bets on declining stock prices


( S ( NP-SBJ ( NP ( DT The ) ( NN number ) ) ( PP ( IN of ) ( NP ( JJ outstanding ) ( NNS contracts ) ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP October ) ( NNP Major ) ( NNP Market ) ( NNP Index ) ) ) ) ( VP ( VBD jumped ) ( PP-DIR ( IN from ) ( NP ( CD 5,273 ) ) ( PP-TMP ( IN on ) ( NP ( NNP Friday ) ) ) ) ( PP-DIR ( TO to ) ( NP ( CD 9,023 ) ) ( PP-TMP ( IN on ) ( NP ( NNP Monday ) ) ) ) ) )

The number of outstanding contracts in the October Major Market Index jumped from 5,273 on Friday to 9,023 on Monday


( S ( NP-SBJ ( DT The ) ( NNP MMI ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( JJ 20-stock ) ( NN index ) ) ( SBAR ( WHNP-1 ( IN that ) ) ( S ( VP ( NNS mimics ) ( NP ( DT the ) ( NNP Dow ) ( NNP Jones ) ( NNP Industrial ) ( NNP Average ) ) ) ) ) ) ) )

The MMI is a 20-stock index that mimics the Dow Jones Industrial Average


( S ( NP-SBJ ( JJ Outstanding ) ( NNS contracts ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( DT those ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( VBP remain ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN liquidated ) ) ) ) ) ) ) ) ) ) )

Outstanding contracts are those that remain to be liquidated


( SINV ( S-TPC-2 ( PP-TMP ( IN By ) ( NP ( NNP Wednesday ) ) ) ( NP-SBJ ( DT the ) ( JJ outstanding ) ( NNP October ) ( NNS contracts ) ) ( VP ( VBD amounted ) ( PP-CLR ( TO to ) ( NP ( NP ( CD 8,524 ) ) ( VP ( VBG representing ) ( NP ( NP ( QP ( RB about ) ( CD 1.13 ) ( CD billion ) ) ) ( PP-LOC ( IN in ) ( NP ( NN stock ) ) ) ) ) ) ) ) ) ( VP ( VBD noted ) ) ( NP-SBJ ( NP ( NNP Donald ) ( NNP Selkin ) ) ( NP ( NP ( NN head ) ) ( PP ( IN of ) ( NP ( JJ stock-index ) ( NNS futures ) ( NN research ) ) ) ( PP-LOC ( IN at ) ( NP ( NNP Prudential-Bache ) ( NNP Securities ) ) ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ expects ) ( NP ( DT a ) ( JJ volatile ) ( NN expiration ) ) ( NP-TMP ( NN today ) ) ) ) ) ) )

By Wednesday the outstanding October contracts amounted to 8,524 representing about 1.13 billion in stock noted Donald Selkin head of stock-index futures research at Prudential-Bache Securities who expects a volatile expiration today


( S ( S-TPC-1 ( NP-SBJ ( EX There ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( NP-PRD ( NP ( DT a ) ( JJ tremendous ) ( NN increase ) ) ( PP-LOC ( IN in ) ( NP ( NNP MMI ) ( NNS positions ) ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Selkin ) ) ( VP ( VBD said ) ) )

There has been a tremendous increase in MMI positions Mr. Selkin said


( S ( NP-SBJ ( NN Consumer ) ( NNS stocks ) ) ( ADVP-TMP ( RB once ) ( RB again ) ) ( VP ( VBD set ) ( NP ( DT the ) ( NN pace ) ) ( PP ( IN for ) ( NP ( JJ blue-chip ) ( NNS issues ) ) ) ) )

Consumer stocks once again set the pace for blue-chip issues


( S ( S ( NP-SBJ ( NNP Philip ) ( NNP Morris ) ) ( VP ( VBD added ) ( NP ( QP ( CD 1 ) ( CD 1\/8 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 44 ) ( CD 1\/2 ) ) ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Big ) ( NNP Board ) ( NN composite ) ( NN trading ) ) ( PP ( IN of ) ( NP ( QP ( CD 3.7 ) ( CD million ) ) ( NNS shares ) ) ) ) ) ) ) ( S ( NP-SBJ ( NNP Coca-Cola ) ( NNP Co. ) ) ( VP ( VBD gained ) ( NP ( QP ( CD 2 ) ( CD 3\/8 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 70 ) ( CD 3\/8 ) ) ) ) ) ) ( S ( NP-SBJ ( NNP Merck ) ) ( VP ( VBD gained ) ( NP ( QP ( CD 1 ) ( CD 3\/8 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 77 ) ( CD 3\/8 ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NNP American ) ( NNP Telephone ) ( CC & ) ( NNP Telegraph ) ) ( VP ( VBD advanced ) ( NP-EXT ( CD 7\/8 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 43 ) ( CD 3\/8 ) ) ) ) ( PP ( IN on ) ( NP ( QP ( CD 2.5 ) ( CD million ) ) ( NNS shares ) ) ) ) ) )

Philip Morris added 1 1\/8 to 44 1\/2 in Big Board composite trading of 3.7 million shares Coca-Cola Co. gained 2 3\/8 to 70 3\/8 Merck gained 1 3\/8 to 77 3\/8 and American Telephone & Telegraph advanced 7\/8 to 43 3\/8 on 2.5 million shares


( S ( NP-SBJ ( NNP American ) ( NNP Medical ) ) ( VP ( VBD jumped ) ( NP-EXT ( CD 1 ) ( CD 7\/8 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 23 ) ( CD 5\/8 ) ) ) ) ) )

American Medical jumped 1 7\/8 to 23 5\/8


( S ( NP-SBJ ( NP ( NNP IMA ) ( NNP Acquisition ) ) ( NP ( NP ( DT an ) ( NN investor ) ( NN group ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ includes ) ( NP ( NP ( NNP First ) ( NNP Boston ) ) ( CC and ) ( NP ( NP ( DT the ) ( NNP Pritzker ) ( NN family ) ) ( PP ( IN of ) ( NP ( NNP Chicago ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NNP Chemical ) ( NNP Bank ) ) ( VP ( VBD had ) ( VP ( VBN made ) ( NP ( NNS arrangements ) ( SBAR ( IN for ) ( S ( NP-SBJ ( CD 23 ) ( JJ other ) ( NNS banks ) ) ( VP ( TO to ) ( VP ( VB provide ) ( NP ( NP ( QP ( CD 509 ) ( CD million ) ) ) ( PP ( IN in ) ( NP ( NN bank ) ( NN financing ) ) ) ( PP ( IN for ) ( NP ( DT the ) ( NN buy-out ) ( NN offer ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

IMA Acquisition an investor group that includes First Boston and the Pritzker family of Chicago said Chemical Bank had made arrangements for 23 other banks to provide 509 million in bank financing for the buy-out offer


( S ( NP-SBJ ( NP ( NP ( NNP Chemical ) ) ( CC and ) ( NP ( CD six ) ( JJ other ) ( NNS banks ) ) ) ( PP ( IN along ) ( PP ( IN with ) ( NP ( NNP First ) ( NNP Boston ) ) ) ) ) ( VP ( VBP are ) ( VP ( VBG providing ) ( NP ( NP ( DT the ) ( NN rest ) ) ( PP ( IN of ) ( NP ( DT the ) ( QP ( CD 1.6 ) ( CD billion ) ) ) ) ) ) ) )

Chemical and six other banks along with First Boston are providing the rest of the 1.6 billion


( S ( ADVP-LOC ( RB Elsewhere ) ( PP ( IN on ) ( NP ( DT the ) ( NN takeover ) ( NN front ) ) ) ) ( S ( NP-SBJ ( NNP Time ) ( NNP Warner ) ) ( VP ( VBD advanced ) ( NP-EXT ( QP ( CD 2 ) ( CD 5\/8 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 136 ) ( CD 5\/8 ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NNP Warner ) ( NNP Communications ) ) ( VP ( VBD tacked ) ( PRT ( RP on ) ) ( NP ( CD 7\/8 ) ) ( PP-CLR ( TO to ) ( NP ( QP ( CD 63 ) ( CD 7\/8 ) ) ) ) ) ) )

Elsewhere on the takeover front Time Warner advanced 2 5\/8 to 136 5\/8 and Warner Communications tacked on 7\/8 to 63 7\/8


( S ( NP-SBJ ( DT The ) ( NNP Delaware ) ( NNP Supreme ) ( NNP Court ) ) ( VP ( VBD affirmed ) ( NP ( NP ( DT a ) ( NN ruling ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD barred ) ( NP-2 ( NNP Chris-Craft ) ( NNP Industries ) ) ( PP-CLR ( IN from ) ( S-NOM ( VP ( VBG voting ) ( NP ( PRP$ its ) ( NNP Warner ) ( VBD preferred ) ( NN stock ) ) ( PP ( IN as ) ( NP ( DT a ) ( JJ separate ) ( NN class ) ) ) ( PP-LOC ( IN in ) ( S-NOM ( VP ( VBG deciding ) ( PP-CLR ( RP on ) ( NP ( NP ( DT the ) ( NNS companies ) ( POS ' ) ) ( VBN proposed ) ( NN merger ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The Delaware Supreme Court affirmed a ruling that barred Chris-Craft Industries from voting its Warner preferred stock as a separate class in deciding on the companies ' proposed merger


( S ( S ( S ( NP-SBJ ( NNP Paramount ) ( NNP Communications ) ) ( VP ( VBD climbed ) ( NP-EXT ( QP ( CD 1 ) ( CD 1\/4 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 58 ) ( CD 1\/2 ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NNP MCA ) ) ( VP ( VBD rose ) ( NP-EXT ( QP ( CD 1 ) ( CD 1\/2 ) ) ) ( PP-DIR ( TO to ) ( NP ( CD 64 ) ) ) ) ) ) ( S ( NP-SBJ-1 ( DT both ) ( NNS media ) ( NNS companies ) ) ( VP ( VBP have ) ( ADVP-TMP ( RB long ) ) ( VP ( VBN been ) ( VP ( VBN mentioned ) ( PP-CLR ( IN as ) ( NP ( JJ potential ) ( NN acquisition ) ( NNS candidates ) ) ) ) ) ) ) )

Paramount Communications climbed 1 1\/4 to 58 1\/2 and MCA rose 1 1\/2 to 64 both media companies have long been mentioned as potential acquisition candidates


( S ( PP-LOC ( IN Among ) ( NP ( JJ other ) ( ADJP ( JJ actual ) ( CC and ) ( VBN rumored ) ) ( NNS targets ) ) ) ( S ( NP-SBJ ( NNP Woolworth ) ) ( VP ( VBD rose ) ( NP-EXT ( QP ( CD 1 ) ( CD 1\/4 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 60 ) ( CD 1\/2 ) ) ) ) ) ) ( S ( NP-SBJ ( NNP Upjohn ) ) ( VP ( VBD went ) ( ADVP-DIR ( RB up ) ( NP ( QP ( CD 1 ) ( CD 1\/8 ) ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 39 ) ( CD 3\/4 ) ) ) ) ) ) ( S ( NP-SBJ ( NNP Armstrong ) ( NNP World ) ( NNP Industries ) ) ( VP ( VBD gained ) ( NP ( CD 1 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 40 ) ( CD 1\/8 ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NNP Kollmorgen ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 3\/4 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 13 ) ( CD 7\/8 ) ) ) ) ) ) )

Among other actual and rumored targets Woolworth rose 1 1\/4 to 60 1\/2 Upjohn went up 1 1\/8 to 39 3\/4 Armstrong World Industries gained 1 to 40 1\/8 and Kollmorgen rose 3\/4 to 13 7\/8


( S ( PP ( IN In ) ( NP ( NN addition ) ) ) ( NP-SBJ ( NNP Soo ) ( NNP Line ) ) ( VP ( VBD jumped ) ( NP-EXT ( QP ( CD 2 ) ( CD 3\/4 ) ) ) ( PP-DIR ( TO to ) ( NP ( NP ( QP ( CD 20 ) ( CD 1\/4 ) ) ) ( PP-LOC ( IN above ) ( NP ( NP ( DT the ) ( CD 19.50 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ( SBAR ( WHNP-1 ( IN that ) ) ( S ( NP-SBJ ( NNP Canadian ) ( NNP Pacific ) ) ( VP ( VBD offered ) ( PP-CLR ( IN for ) ( NP ( DT the ) ( NN company ) ) ) ( PP-LOC ( IN in ) ( NP ( DT a ) ( NN takeover ) ( NN proposal ) ) ) ) ) ) ) ) ) ) ) )

In addition Soo Line jumped 2 3\/4 to 20 1\/4 above the 19.50 a share that Canadian Pacific offered for the company in a takeover proposal


( S ( NP-SBJ ( NN Xtra ) ) ( VP ( VBN gained ) ( NP ( CD 1 ) ( CD 1\/8 ) ) ( PP-DIR ( TO to ) ( NP ( CD 27 ) ( CD 1\/8 ) ) ) ) )

Xtra gained 1 1\/8 to 27 1\/8


( S ( NP-SBJ ( NP ( NNP Investor ) ( NNP Robert ) ( NNP M. ) ( NNP Gintel ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ owns ) ( NP ( NP ( DT a ) ( ADJP ( CD 4.7 ) ( NN % ) ) ( NN stake ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN company ) ) ) ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ plans ) ( NP ( NP ( DT a ) ( NN proxy ) ( NN fight ) ) ( PP ( IN for ) ( NP ( NP ( NN control ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( NN board ) ) ) ) ) ) ) ) ) ) )

Investor Robert M. Gintel who owns a 4.7 % stake in the company said he plans a proxy fight for control of its board


( S ( S ( NP-SBJ ( NNP Golden ) ( NNP Nugget ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 2 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 28 ) ( CD 1\/4 ) ) ) ) ) ) )

Golden Nugget rose 2 to 28 1\/4


( S ( NP-SBJ ( PRP$ Its ) ( NN board ) ) ( VP ( VBD approved ) ( NP ( NP ( DT the ) ( VBD repurchase ) ) ( PP ( IN of ) ( NP ( NP ( QP ( RB as ) ( JJ many ) ( IN as ) ( CD three ) ( CD million ) ) ( JJ common ) ( NNS shares ) ) ( CC or ) ( NP ( NP ( QP ( RB about ) ( CD 17 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( PRP$ its ) ( NNS shares ) ) ( ADJP ( JJ outstanding ) ) ) ) ) ) ) ) ) )

Its board approved the repurchase of as many as three million common shares or about 17 % of its shares outstanding


( S ( NP-SBJ ( NN Buying ) ( NN interest ) ) ( ADVP ( RB also ) ) ( VP ( VBD resurfaced ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN technology ) ( NN sector ) ) ( PP ( VBG including ) ( NP ( NP ( NNP International ) ( NNP Business ) ( NNP Machines ) ) ( SBAR ( WHNP-1 ( WP$ whose ) ( NN board ) ) ( S ( VP ( VBD approved ) ( NP ( NP ( DT a ) ( ADJP ( QP ( CD 1 ) ( CD billion ) ) ) ( NN increase ) ) ( PP-LOC ( IN in ) ( NP ( PRP$ its ) ( NN stock ) ( JJ buy-back ) ( NN program ) ) ) ) ) ) ) ) ) ) ) ) )

Buying interest also resurfaced in the technology sector including International Business Machines whose board approved a 1 billion increase in its stock buy-back program


( S ( NP-SBJ ( NNP IBM ) ) ( VP ( VBD rose ) ( NP-EXT ( QP ( CD 2 ) ( CD 3\/8 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 104 ) ( CD 1\/8 ) ) ) ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( QP ( CD 2.2 ) ( CD million ) ) ( NNS shares ) ) ( VP ( VBD changed ) ( NP ( NNS hands ) ) ) ) ) ) )

IBM rose 2 3\/8 to 104 1\/8 as 2.2 million shares changed hands


( S ( NP-SBJ ( NNP Compaq ) ( NNP Computer ) ) ( VP ( VBD soared ) ( NP-EXT ( QP ( CD 4 ) ( CD 5\/8 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 111 ) ( CD 1\/8 ) ) ) ) ( PP ( IN on ) ( NP ( QP ( CD 1.8 ) ( CD million ) ) ( NNS shares ) ) ) ( PP ( IN in ) ( NP ( NP ( NN response ) ) ( PP ( TO to ) ( NP ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NN announcement ) ) ( PP ( IN of ) ( NP ( NNS plans ) ( S ( VP ( TO to ) ( VP ( VB introduce ) ( NP ( JJ several ) ( NNS products ) ) ( NP-TMP ( IN next ) ( NN month ) ) ) ) ) ) ) ) ) ) ) ) )

Compaq Computer soared 4 5\/8 to 111 1\/8 on 1.8 million shares in response to the company 's announcement of plans to introduce several products next month


( S ( NP-SBJ-2 ( NNP Digital ) ( NNP Equipment ) ) ( VP ( VBD gained ) ( NP ( CD 1 ) ( CD 3\/8 ) ) ( PP-DIR ( TO to ) ( NP ( CD 89 ) ( CD 3\/4 ) ) ) ( PP ( IN despite ) ( S-NOM ( VP ( VBG reporting ) ( NP ( NP ( NNS earnings ) ) ( PP ( IN for ) ( NP ( DT the ) ( NNP September ) ( NN quarter ) ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD were ) ( PP-LOC-PRD ( IN on ) ( NP ( NP ( DT the ) ( JJ low ) ( NN end ) ) ( PP ( IN of ) ( NP ( NNS expectations ) ) ) ) ) ) ) ) ) ) ) ) ) )

Digital Equipment gained 1 3\/8 to 89 3\/4 despite reporting earnings for the September quarter that were on the low end of expectations


( S ( PP-LOC ( IN Among ) ( NP ( JJ other ) ( NN technology ) ( NNS issues ) ) ) ( S ( NP-SBJ ( NNP Cray ) ( NNP Research ) ) ( VP ( VBD rose ) ( NP-EXT ( QP ( CD 1 ) ( CD 5\/8 ) ) ) ( PP-DIR ( TO to ) ( NP ( CD 37 ) ) ) ) ) ( S ( NP-SBJ ( NNP Hewlett-Packard ) ) ( VP ( VBD added ) ( NP ( QP ( CD 1 ) ( CD 1\/4 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 50 ) ( CD 1\/4 ) ) ) ) ) ) ( S ( NP-SBJ ( NNP Tandem ) ( NNP Computers ) ) ( VP ( VBD rallied ) ( NP-EXT ( QP ( CD 1 ) ( CD 1\/8 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 25 ) ( CD 3\/4 ) ) ) ) ) ) ( S ( NP-SBJ ( NNP Data ) ( NNP General ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 3\/4 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 14 ) ( CD 1\/2 ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NNP Motorola ) ) ( VP ( VBN gained ) ( NP ( QP ( CD 2 ) ( CD 3\/8 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 59 ) ( CD 1\/4 ) ) ) ) ) ) )

Among other technology issues Cray Research rose 1 5\/8 to 37 Hewlett-Packard added 1 1\/4 to 50 1\/4 Tandem Computers rallied 1 1\/8 to 25 3\/4 Data General rose 3\/4 to 14 1\/2 and Motorola gained 2 3\/8 to 59 1\/4


( S ( PP-LOC ( IN On ) ( NP ( DT the ) ( JJ other ) ( NN hand ) ) ) ( S ( NP-SBJ ( NNP Symbol ) ( NNP Technologies ) ) ( VP ( VBD dropped ) ( NP-EXT ( QP ( CD 1 ) ( CD 1\/4 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 18 ) ( CD 1\/2 ) ) ) ) ( SBAR-TMP ( IN after ) ( S ( NP-SBJ ( NNP Shearson ) ( NNP Lehman ) ( NNP Hutton ) ) ( VP ( VBD lowered ) ( NP ( NP ( PRP$ its ) ( JJ short-term ) ( NN investment ) ( NN rating ) ) ( PP-LOC ( IN on ) ( NP ( NP ( DT the ) ( NN stock ) ) ( CC and ) ( NP ( PRP$ its ) ( CD 1989 ) ( NNS earnings ) ( NN estimate ) ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NNP Commodore ) ( NNP International ) ) ( VP ( VBD fell ) ( NP-EXT ( CD 7\/8 ) ) ( PP-DIR ( TO to ) ( NP ( CD 8 ) ) ) ( SBAR-TMP ( IN after ) ( S ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBZ expects ) ( S ( VP ( TO to ) ( VP ( VB post ) ( NP ( DT a ) ( NN loss ) ) ( PP ( IN for ) ( NP ( DT the ) ( NNP September ) ( NN quarter ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

On the other hand Symbol Technologies dropped 1 1\/4 to 18 1\/2 after Shearson Lehman Hutton lowered its short-term investment rating on the stock and its 1989 earnings estimate and Commodore International fell 7\/8 to 8 after the company said it expects to post a loss for the September quarter


( S ( NP-SBJ-1 ( NN Insurance ) ( NNS stocks ) ) ( VP ( VBD continued ) ( S ( VP ( TO to ) ( VP ( VB climb ) ( PP ( IN on ) ( NP ( NNS expectations ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NN premium ) ( NNS rates ) ) ( VP ( MD will ) ( VP ( VB rise ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN aftermath ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN earthquake ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP San ) ( NNP Francisco ) ( NN area ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Insurance stocks continued to climb on expectations that premium rates will rise in the aftermath of the earthquake in the San Francisco area


( S ( S ( NP-SBJ ( NNP American ) ( NNP International ) ( NNP Group ) ) ( VP ( VBD climbed ) ( NP-EXT ( CD 4 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 106 ) ( CD 5\/8 ) ) ) ) ) ) ( S ( NP-SBJ ( NNP General ) ( NNP Re ) ) ( VP ( VBD rose ) ( NP-EXT ( QP ( CD 3 ) ( CD 1\/8 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 89 ) ( CD 5\/8 ) ) ) ) ) ) ( S ( NP-SBJ ( NNP Kemper ) ) ( VP ( VBD added ) ( NP ( QP ( CD 2 ) ( CD 1\/2 ) ) ) ( PP-DIR ( TO to ) ( NP ( CD 48 ) ) ) ) ) ( S ( NP-SBJ ( NNP AON ) ) ( VP ( VBD went ) ( ADVP-DIR ( RB up ) ( NP ( QP ( CD 1 ) ( CD 3\/8 ) ) ) ) ( PP-DIR ( TO to ) ( NP ( CD 36 ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NNP Chubb ) ) ( VP ( VBD rose ) ( NP-EXT ( QP ( CD 1 ) ( CD 1\/4 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 82 ) ( CD 1\/4 ) ) ) ) ) ) )

American International Group climbed 4 to 106 5\/8 General Re rose 3 1\/8 to 89 5\/8 Kemper added 2 1\/2 to 48 AON went up 1 3\/8 to 36 and Chubb rose 1 1\/4 to 82 1\/4


( S ( NP-SBJ ( NP ( NNS Stocks ) ) ( PP ( IN of ) ( NP ( JJ major ) ( NN toy ) ( NNS makers ) ) ) ) ( VP ( VBN rallied ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN wake ) ) ( PP ( IN of ) ( NP ( JJ strong ) ( JJ third-quarter ) ( NNS earnings ) ( NNS reports ) ) ) ) ) ) )

Stocks of major toy makers rallied in the wake of strong third-quarter earnings reports


( S ( S ( NP-SBJ ( NNP Mattel ) ) ( VP ( VBN added ) ( NP ( QP ( CD 1 ) ( CD 1\/4 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 19 ) ( CD 5\/8 ) ) ) ) ) ) ( S ( NP-SBJ ( NNP Tonka ) ) ( VP ( VBD firmed ) ( NP-EXT ( CD 1 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 18 ) ( CD 1\/2 ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NNP Lewis ) ( NNP Galoob ) ( NNP Toys ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 7\/8 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 13 ) ( CD 5\/8 ) ) ) ) ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NNP Big ) ( NNP Board ) ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ ( NNP Hasbro ) ) ( VP ( VBD gained ) ( NP ( CD 1 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 21 ) ( CD 7\/8 ) ) ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NNP American ) ( NNP Stock ) ( NNP Exchange ) ) ) ) ) ) )

Mattel added 1 1\/4 to 19 5\/8 Tonka firmed 1 to 18 1\/2 and Lewis Galoob Toys rose 7\/8 to 13 5\/8 on the Big Board while Hasbro gained 1 to 21 7\/8 on the American Stock Exchange


( S ( NP-SBJ ( NNP Capital ) ( NNP Cities-ABC ) ) ( VP ( VBD surged ) ( NP-EXT ( QP ( CD 42 ) ( CD 5\/8 ) ) ) ( PP-DIR ( TO to ) ( NP ( CD 560 ) ) ) ) )

Capital Cities-ABC surged 42 5\/8 to 560


( S ( NP-SBJ ( NNP Kidder ) ( NNP Peabody ) ) ( VP ( VBD raised ) ( NP ( NP ( PRP$ its ) ( NN investment ) ( NN rating ) ) ( PP-LOC ( IN on ) ( NP ( NP ( DT the ) ( NN stock ) ) ( CC and ) ( NP ( PRP$ its ) ( NNS earnings ) ( NNS estimates ) ) ) ) ( PP ( IN for ) ( NP ( CD 1989 ) ( CC and ) ( CD 1990 ) ) ) ) ( PP ( VBN based ) ( PP ( IN on ) ( NP ( NN optimism ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NNP ABC ) ( NN television ) ( NN network ) ) ( VP ( MD will ) ( VP ( VB continue ) ( S ( VP ( TO to ) ( VP ( VB fare ) ( ADVP-MNR ( RB well ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNS ratings ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Kidder Peabody raised its investment rating on the stock and its earnings estimates for 1989 and 1990 based on optimism that the company 's ABC television network will continue to fare well in the ratings


( S ( NP-SBJ ( NNP Dun ) ( CC & ) ( NNP Bradstreet ) ) ( VP ( VBD lost ) ( NP ( QP ( CD 1 ) ( CD 7\/8 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 51 ) ( CD 7\/8 ) ) ) ) ( PP ( IN on ) ( NP ( QP ( CD 1.8 ) ( CD million ) ) ( NNS shares ) ) ) ) )

Dun & Bradstreet lost 1 7\/8 to 51 7\/8 on 1.8 million shares


( S ( NP-SBJ-1 ( NNP Merrill ) ( NNP Lynch ) ) ( VP ( VBD lowered ) ( NP ( NP ( PRP$ its ) ( JJ short-term ) ( NN rating ) ) ( PP-LOC ( IN on ) ( NP ( NP ( DT the ) ( NN stock ) ) ( CC and ) ( NP ( NP ( PRP$ its ) ( NN estimate ) ) ( PP ( IN of ) ( NP ( CD 1990 ) ( NNS earnings ) ) ) ) ) ) ) ( S-ADV ( VP ( VBG citing ) ( NP ( NP ( DT a ) ( NNS sales ) ( NN slowdown ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( JJ credit-rating ) ( NN business ) ) ) ) ) ) ) )

Merrill Lynch lowered its short-term rating on the stock and its estimate of 1990 earnings citing a sales slowdown in the company 's credit-rating business


( S ( NP-SBJ ( NP ( NNP Pinnacle ) ( NNP West ) ( NNP Capital ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VP ( VBD suspended ) ( NP ( PRP$ its ) ( JJ common-stock ) ( NN dividend ) ) ( ADVP-TMP ( RB indefinitely ) ) ) ( CC and ) ( VP ( VBD reported ) ( NP ( NP ( DT a ) ( ADJP ( CD 91 ) ( NN % ) ) ( NN decline ) ) ( PP-LOC ( IN in ) ( NP ( JJ third-quarter ) ( NNS earnings ) ) ) ) ) ) ) ) ) ( VP ( VBD fell ) ( NP-EXT ( CD 5\/8 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 11 ) ( CD 3\/8 ) ) ) ) ) )

Pinnacle West Capital which suspended its common-stock dividend indefinitely and reported a 91 % decline in third-quarter earnings fell 5\/8 to 11 3\/8


( S ( NP-SBJ-1 ( DT The ) ( NNP Amex ) ( NNP Market ) ( NNP Value ) ( NNP Index ) ) ( VP ( VBD recorded ) ( NP ( NP ( PRP$ its ) ( JJS sharpest ) ( NN gain ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN year ) ) ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG climbing ) ( NP-EXT ( CD 4.74 ) ) ( PP-DIR ( TO to ) ( NP ( CD 382.81 ) ) ) ) ) ) ) )

The Amex Market Value Index recorded its sharpest gain of the year by climbing 4.74 to 382.81


( S ( NP-SBJ ( NN Volume ) ) ( VP ( VBD totaled ) ( NP ( CD 14,580,000 ) ( NNS shares ) ) ) )

Volume totaled 14,580,000 shares


( S ( NP-SBJ ( NP ( NNP B.A.T ) ( NNP Industries ) ) ( NP ( DT the ) ( ADJP ( RBS most ) ( JJ active ) ) ( NNP Amex ) ( NN issue ) ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 3\/8 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 12 ) ( CD 3\/8 ) ) ) ) ) )

B.A.T Industries the most active Amex issue rose 3\/8 to 12 3\/8


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBD received ) ( NP ( NP ( NN shareholder ) ( NN approval ) ) ( PP ( IN for ) ( NP ( NP ( PRP$ its ) ( NN restructuring ) ( NN plan ) ) ( VP ( VBN designed ) ( S ( VP ( TO to ) ( VP ( VB fend ) ( PRT ( RP off ) ) ( NP ( NP ( DT a ) ( JJ hostile ) ( NN takeover ) ( NN bid ) ) ( PP ( IN from ) ( NP ( NP ( DT a ) ( NN group ) ) ( VP ( VBN headed ) ( PP ( IN by ) ( NP-LGS ( NN financier ) ( NNP Sir ) ( NNP James ) ( NNP Goldsmith ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The company received shareholder approval for its restructuring plan designed to fend off a hostile takeover bid from a group headed by financier Sir James Goldsmith


( S ( S ( NP-SBJ ( NNP Chambers ) ( NNP Development ) ( NNP Class ) ( NNP A ) ) ( VP ( VBD jumped ) ( NP-EXT ( QP ( CD 3 ) ( CD 1\/8 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 37 ) ( CD 1\/8 ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NNP Class ) ( NNP B ) ) ( VP ( VBD rose ) ( NP-EXT ( QP ( CD 2 ) ( CD 5\/8 ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 37 ) ( CD 1\/4 ) ) ) ) ) ) )

Chambers Development Class A jumped 3 1\/8 to 37 1\/8 and Class B rose 2 5\/8 to 37 1\/4


( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( CD six ) ( NNS officers ) ) ( VP ( VBP are ) ( VP ( VBG buying ) ( NP ( NP ( DT a ) ( NN total ) ) ( PP ( IN of ) ( NP ( NP ( QP ( CD 1.5 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( NN stock ) ) ) ) ) ) ) ) ) ) ) )

The company said six officers are buying a total of 1.5 million of its stock


( S ( NP-SBJ ( NP ( NNP TRC ) ( NNP Cos. ) ) ( NP ( NP ( DT the ) ( NN target ) ) ( PP ( IN of ) ( NP ( NP ( DT an ) ( NN investigation ) ) ( PP ( IN by ) ( NP ( DT the ) ( NNP U.S. ) ( NN inspector ) ( NN general ) ) ) ) ) ) ) ( VP ( VBD dropped ) ( NP-EXT ( CD 2 ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 10 ) ( CD 3\/4 ) ) ) ) ) )

TRC Cos. the target of an investigation by the U.S. inspector general dropped 2 to 10 3\/4


( S ( NP-SBJ ( DT The ) ( NN probe ) ) ( VP ( VBZ involves ) ( NP ( NP ( NN testing ) ( NNS procedures ) ) ( VP ( VBN used ) ( PP-LOC-CLR ( IN on ) ( NP ( JJ certain ) ( NN government ) ( NNS contracts ) ) ) ( PP ( IN by ) ( NP-LGS ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NNP Metatrace ) ( NN unit ) ) ) ) ) ) )

The probe involves testing procedures used on certain government contracts by the company 's Metatrace unit


( S ( SBAR-TMP ( WHADVP-1 ( WRB When ) ) ( S ( NP-SBJ ( NP ( PRP$ his ) ( NNP Seventh ) ( NNP Avenue ) ( NN fur ) ( NN business ) ) ( ADVP-LOC ( RB here ) ) ) ( VP ( VBD was ) ( VP ( VBG flying ) ( ADVP-CLR ( JJ high ) ) ( ADVP-TMP ( NP ( CD 20 ) ( NNS years ) ) ( RB ago ) ) ) ) ) ) ( NP-SBJ ( NNP Jack ) ( NNP Purnick ) ) ( VP ( VBD had ) ( NP ( NP ( CD 25 ) ( NNS workers ) ) ( CC and ) ( NP ( DT a ) ( JJ large ) ( NN factory ) ) ) ) )

When his Seventh Avenue fur business here was flying high 20 years ago Jack Purnick had 25 workers and a large factory


( S ( ADVP-TMP ( RB Now ) ) ( NP-SBJ ( PRP$ his ) ( NN half-dozen ) ( NNS employees ) ) ( VP ( VBP work ) ( PP-LOC ( IN in ) ( NP ( NP ( DT an ) ( JJ eighth-floor ) ( NN shop ) ) ( SBAR ( WHNP-1 ( IN that ) ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ( SBAR ( S ( VP ( VBZ is ) ( ADJP-PRD ( ADJP ( JJR smaller ) ) ( PP ( IN than ) ( NP ( PRP$ his ) ( JJ old ) ( NN storage ) ( NN room ) ) ) ) ) ) ) ) ) ) ) ) ) )

Now his half-dozen employees work in an eighth-floor shop that he says is smaller than his old storage room


( S ( NP-SBJ ( PRP He ) ) ( ADVP ( RB also ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ is ) ( VP ( VBG losing ) ( NP ( NN money ) ) ( ADVP-TMP ( RB now ) ) ) ) ) ) ) )

He also says he is losing money now


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBZ blames ) ( NP ( NNS imports ) ) ) )

He blames imports


( S ( CC But ) ( ADVP-LOC ( RB just ) ( IN down ) ( NP ( NP ( NNP Seventh ) ( NNP Avenue ) ) ( SBAR ( WHADVP-2 ( WRB where ) ) ( S ( NP-SBJ-1 ( NP ( QP ( RB about ) ( CD 75 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( NNP U.S. ) ( NN fur ) ( NNS garments ) ) ) ) ( VP ( VBP are ) ( VP ( VBN made ) ) ) ) ) ) ) ( NP-SBJ ( NNP Larry ) ( NNP Rosen ) ) ( VP ( VBZ has ) ( VP ( VP ( VBN acquired ) ( NP ( CD two ) ( JJ retail ) ( NNS outlets ) ) ) ( VP ( VBN broadened ) ( NP ( PRP$ his ) ( JJ fur-making ) ( NN line ) ) ) ( CC and ) ( VP ( VBN expanded ) ( PP-DIR ( IN into ) ( NP ( NN leather ) ) ) ) ) ) )

But just down Seventh Avenue where about 75 % of U.S. fur garments are made Larry Rosen has acquired two retail outlets broadened his fur-making line and expanded into leather


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBZ credits ) ( NP ( NNS imports ) ) ) )

He credits imports


( S ( NP-SBJ ( DT The ) ( NN difference ) ) ( VP ( VBZ lies ) ( PP-LOC-CLR ( IN in ) ( SBAR-NOM ( WHADVP-1 ( WRB how ) ) ( S ( NP-SBJ ( DT the ) ( CD two ) ( JJ entrepreneurial ) ( NNS furriers ) ) ( VP ( VBD reacted ) ( PP-CLR ( TO to ) ( NP ( DT the ) ( NX ( NX ( JJ foreign ) ( NN competition ) ) ( CC and ) ( NX ( NX ( NN transformation ) ) ( PP ( IN of ) ( NP ( PRP$ their ) ( NN industry ) ) ) ( PP-TMP ( IN over ) ( NP ( DT the ) ( JJ past ) ( CD 10 ) ( NNS years ) ) ) ) ) ) ) ) ) ) ) ) )

The difference lies in how the two entrepreneurial furriers reacted to the foreign competition and transformation of their industry over the past 10 years


( S ( NP-SBJ ( CD One ) ) ( VP ( VBD stuck ) ( PP-CLR ( TO to ) ( NP ( JJ old-line ) ( NN business ) ( NNS traditions ) ) ) ( SBAR-TMP ( IN while ) ( S ( NP-SBJ ( DT the ) ( JJ other ) ) ( VP ( VBD embraced ) ( NP ( DT the ) ( NN change ) ) ) ) ) ) )

One stuck to old-line business traditions while the other embraced the change


( SINV ( S-TPC-3 ( NP-SBJ ( DT The ) ( JJ small ) ( JJ good ) ( NN fur ) ( NN salon ) ) ( VP ( VBZ is ) ( RB not ) ( SBAR-NOM-PRD ( WHNP-1 ( WP what ) ) ( S ( NP-SBJ-2 ( PRP it ) ) ( VP ( VBD used ) ( S ( VP ( TO to ) ( VP ( VB be ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Purnick ) ) ( ADJP ( NP ( CD 75 ) ( NNS years ) ) ( JJ old ) ) ) )

The small good fur salon is not what it used to be says Mr. Purnick 75 years old


( S ( S ( NP-SBJ ( PRP We ) ) ( VP ( VBP make ) ( NP ( NP ( DT the ) ( JJS finest ) ( NN product ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN world ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ-1 ( DT the ) ( NNS Americans ) ) ( VP ( VBP are ) ( VP ( VBG being ) ( VP ( VBD kicked ) ( PRT ( RP around ) ) ) ) ) ) )

We make the finest product in the world and the Americans are being kicked around


( S ( NP-SBJ ( NNP Mr. ) ( NNP Rosen ) ) ( ADVP ( RB though ) ) ( VP ( VBZ believes ) ( SBAR ( S ( NP-SBJ ( NNS imports ) ) ( VP ( VBP have ) ( VP ( VBN reinvigorated ) ( NP ( NP ( DT the ) ( NN industry ) ) ( SBAR ( WHPP-1 ( IN in ) ( WHNP ( WDT which ) ) ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ has ) ( VP ( VBN worked ) ( PP-TMP ( IN for ) ( NP ( NP ( JJS most ) ) ( PP ( IN of ) ( NP ( PRP$ his ) ( CD 57 ) ( NNS years ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Rosen though believes imports have reinvigorated the industry in which he has worked for most of his 57 years


( S ( S-TPC-2 ( NP-SBJ ( PRP You ) ) ( VP ( VBP 've ) ( VP ( VBD got ) ( NP ( NP ( DT some ) ( NNS minds ) ) ( ADVP-LOC ( RB here ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( MD wo ) ( RB n't ) ( VP ( VB think ) ( ADVP-MNR ( RB progressively ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ) )

You 've got some minds here that wo n't think progressively he says