BUSINESS DIGEST
By Unknown Author
INTERNATIONAL British Airways cut its main trans-Atlantic fare by a third and greatly reduced the penalties for cancellations, a move that sharply increases the financial pressure on its ailing American rivals. The drastic fare reductions, which extend through the peak summer travel period, reflect a steep fall in airline traffic, the result of terrorism fears and weakening economies. [ Page A1. ] Seventy members of Congress complained that Japan has dragged its feet in assuming responsibility for the defense of its air space and sea lanes. A crucial issue is whether it needs Boeing's radar surveillance plane, and if it does, how many it needs. [ D1. ] Efforts to protect health and the environment are clashing more and more frequently with the goal of freer world trade. [ D4. ] The Persian Gulf war may do long-lasting damage to OPEC, experts say, because it has stimulated oil-producing countries to add capacity, to replace oil that came from Iraq and Kuwait. [ D1. ] A nuclear accident in Japan appears likely to add impetus to a growing antinuclear movement and to hamper the Government's efforts to lessen the country's dependence on imported oil. Experts described the accident as a close brush with disaster. [ A3. ] Brazilians have embarked on their fifth experience in five years with wage and price controls, and many are skeptical. [ A7. ] The German central bank's decision to increase interest rates last month has raised new questions about Germany's commitment to international cooperation and to Western Europe's goals of economic integration and monetary union. [ D2. ] THE ECONOMY Auto dealers have been going out of business in droves, and those that remain are adopting survival tactics. The intent is not only to lure customers, but to slash costs, motivate sales forces and bring more business to service departments. [ D1. ] A growing number of companies are helping employees to deal with fears and worries about the war by organizing support groups, providing counseling and encouraging informal assistance. [ D2. ] The 88th Annual American International Toy Fair opens this morning, attracting worried adults trying to figure out what is happening to their industry and why 10-year-olds around the country did not want their toys at Christmas. [ D1. ] THE MEDIA BUSINESS After rising sharply, book advances are stagnant or even slipping. But options are hot in the publishing world. Publishing. [ D1. ] The success of the Cable News Network in the first weeks of the Persian Gulf war has largely been a triumph of a concept. But CNN hopes to turn its success into profits. [ D8. ] A remarkable American-Soviet joint venture involves a new magazine, a sausage-producing plant, a book-publishing company, an agricultural research foundation and a center that will showcase American farm equipment. [ D8. ] The publishers of Monk travel the country in a mobile home, writing about themselves and America on a solar-powered Macintosh. The whimsical travel magazine has even offered lifetime-after-lifetime subscriptions for reincarnation buffs. [ D8. ] The Bronx Zoo is heeding the lesson of Darwin -- adapt to survive -- and will soon begin its first big image campaign. Kim Foltz: Advertising. [ D9. ] COMPANIES After a long box-office drought, Orion Pictures is savoring the success of "Dances With Wolves." But the company needs more hits to assure its survival. [ C11. ] TODAY'S COLUMNS Some credit market analysts are beginning to wonder whether the bond market rally that began in mid-January has run its course. Credit Markets. [ D1. ] Small stocks are enjoying their best rally in almost a decade. While big stocks are simply rising, the small ones are soaring. Floyd Norris: Market Place. [ D6. ]
