December 10, 1990

While many American industries are retrenching in the face of a recession, Hollywood is on a spending spree. The studios are paying unprecedented prices for scripts, stars, directors and other talent required to produce feature films. The theatrical, video and pay television businesses have exploded abroad, setting off bidding wars among the studios for the handful of talent believed to have the greatest global appeal. Artists involved in action films, which consistently play well worldwide, have seen the most spectacular increases. High Industry Benchmarks And rates like the following are beginning to serve as benchmarks for the entire industry:

The Economy The Federal Reserve will probably lower its discount rate as part of its next step to ease credit conditions. Fed officials said a consistent monetary policy would require a reduction of the discount rate, which has remained at 7 percent for almost two years, if the Federal funds rate continues to move lower. [ Page D1. ] Analysts believe that the Fed can rescue the economy, but that it will need to push down interest rates by at least a full percentage point, much further than currently forecast. Credit Markets. [ D7. ] A debate has begun among banking regulators over accounting standards that could have a profound effect on banks and on the Government's effort to clean up the savings and loan debacle. [ D2. ] Companies Hollywood is on a spending spree, with studios paying unprecedented prices for scripts, stars, directors and other talent required to produce feature films. [ D1. ] International Mexico will sell control of its telephone company for $1.76 billion to a consortium composed of Grupo Carso of Mexico, Southwestern Bell and France Telecom. [ D1. ] Czechoslovakia chose Volkswagen to be a partner with the Skoda automobile company in a deal that could be worth as much as $5.3 billion over 10 years. [ D1. ] Feuding managers and workers at a Prague factory agree on only one thing: capitalism is needed not only to save their company but also to save them from each other. [ D1. ] There could be a painful return to the trade warfare that aggravated the crises of the 1930's if the European Community does not eventually compromise on farm trade. News analysis. [ D5. ] Pressures are growing for radical changes in Deutsche Bundespost, Germany's supplier of telephone and postal services. [ D8. ] Japan appears to have bent to the wishes of big companies and failed to raise real estate holding taxes. [ D8. ] The Media Business Several Fox stations are giving programs like NBC's "Today" a run for the advertisers' money with local early-morning news programs. Fox executives see a potential for selling national advertising for what would effectively be a network of programs. [ D1. ] The Daily News of New York is still hemorrhaging money, so there is an air of suspense about what might happen tomorrow at the board meeting of the newspaper's corporate parent, the Tribune Company. [ B1. ] Disney is seeking to prop up sagging sales for reruns of television programs and wants the Government to help by significantly expanding the market for the shows. [ D9. ] One of the fastest-growing French publications is an offbeat four-page newspaper that looks like a cross between USA Today and a coloring book. [ D9. ] The publishing sales conference is part strategy session and part pep rally. Its purpose is to introduce the sales force to what could be the next best sellers. Publishing. [ D9. ] Mattel is using coupons to promote its toys. The campaign is being conducted in association with Coca-Cola, Mastercard, K Mart and Toys "R" Us. Advertising. [ D10. ] Today's Columns The legal community has been split over the fairness of sentencing Michael R. Milken to 10 years in prison. But many arguments in the debate appear to be based on misconceptions. Business and the Law. [ D2. ] Phibro is offering an instrument that enables investors to speculate on the price of oil in 1995. Market Place. [ D6. ]

Ralph J. Marino, the Republican majority leader of the State Senate, is not known for making bold statements. He can exasperate Democratic leaders by revealing so little about a negotiating position that they question whether he has one. Reporters jockey to shove their tape recorders close to his mouth so they can catch his virtually inaudible utterances. But in the wake of an impressive victory for the Republican majority in the Senate in the Nov. 6 election, his words, if not his voice, have resounded with uncharacteristicbravado. "The Marino era," he mumbled in a recent interview, "has begun."

DERRICK COLEMAN laughed heartily as he talked about money. He leaned back in a chair and said he is "living large." The translation: things could not be much better. Coleman is the Nets' $3 million-a-year rookie forward, and his 23 rebounds against the 76ers on Nov. 27 are more than any other player has achieved in one game this season. He may be signing an endorsement deal after being named rookie of the month in November and he is the catalyst behind the Nets' recent surge to respectability.

IN the classroom off their locker room, the Giants' defense assembled at halftime yesterday to assess the problem. Not only were the Minnesota Vikings ahead, 12-10, but they had amassed 175 yards of total offense, an embarrassment to the defense that prides itself as being the National Football League's best. After the coaches stopped talking, Lawrence Taylor started. "He told us, 'We're not physical enough,' " the safety Myron Guyton said. "He told us we had to gang-tackle."