News stories from Monday January 5, 1976

Summaries of the stories the major media outlets considered to be of particular importance on this date:

Soviet-backed forces in Angola claimed to have captured the town of Wida, the headquarters of the FNLA. The Organization of African Unity will meet next week and is expected to call for a ceasefire and the withdrawal of all foreign intervention from Angola, including Russia, Cuba and South Africa. President Ford spoke at the American Farm Bureau in St. Louis and gave the same message to the Soviets via his speech.The embargo on grain sales to Russia last year angered American farmers. Ford spoke about Angola today, but assured farmers that diplomatic leverage won't be at their expense, and he pledged to keep farm income high. The White House said that Ford's St. Louis trip was non-political, but political fences needed mending regarding farmers. The American Farm Bureau Federation did not endorse Ford, recalling last year's grain embargo. Delegates at the St. Louis convention are expected to call for an end to government control of exports, and will ask Congress to forbid transportation strikes. [CBS] President Ford, an administration official said, intends to nominate Anne Armstrong, a former White House counselor, as Elliot Richardson's replacement as Ambassador to Britain. Mrs. Armstrong, 48 years old, has been active in Republican politics. In 1972, she was co-chairman of the Republican National Committee, and in the same year President Nixon invited her to join the White House, where she had cabinet-level status. She lives in Texas with her husband, a wealthy rancher. [New York Times] Britain and France hinted at economic retaliation against the United States if the Concorde SST is locked out of U.S. airports. The Environmental Protection Agency wants the Concorde banned. Daily flights of the Concorde to Dulles and John F. Kennedy airports are the issue; noise pollution is feared along with damage to the ozone layer which may result in skin cancer increases. British minister of industry Gerald Kaufman says that the environmental impact of the Concorde is slight. French President Valery Giscard d'Estaing plans to visit America in May on the Concorde. [CBS] Congress will be asked by President Ford to change the tax laws to make it easier for heirs to continue family ownership of small and medium-size farms and businesses. He will recommend that no estate tax be required to be paid on such farms and businesses until five years after the death of the owner, and no interest would accrue during those five years. He made his proposal at a meeting of the American Farm Bureau Federation in St. Louis, Farm and small-business spokesmen for years have asked for changes in the tax laws to help persons who inherit small farms and businesses and who often have to sell them to raise funds to pay federal estate taxes. [New York Times] Ronald Reagan began the first of several political tours of New Hampshire to win support in his campaign for the Republican presidential nomination before the state's primary on Feb. 24. It is believed that a victory in New Hampshire for Mr. Reagan would be a setback for President Ford in his campaign for the nomination. [New York Times] Reagan opened his New Hampshire campaign to a chilly reception. The state legislature denounced Reagan's proposal to transfer $90 billion in federal social programs to the states. New Hampshire house and senate leaders are said to be Ford backers. [CBS] California levied a large fine ($4.2 million) on American Motors because of automobile exhaust emissions and the resultant air pollution. The California Air Resources Board levied the fine after conducting tests in which 85% of AMC cars failed, though they had passed American Motors' own tests. The Environmental Protection Agency and Justice Department have been asked to investigate. [CBS] California fined the American Motors Corporation because the company allegedly submitted "totally false" test reports and unlawfully sold cars that exceeded California's strict automotive pollution control standards. The state also banned the sale of three A.M.C. cars powered by 304-cubic-inch V8 engines. American Motors said the action was "unjustified" and that the fine was unreasonable. [New York Times] In a new wave of violence in Northern Ireland, 10 Protestant workmen were shot dead in an area southwest of Belfast where five Roman Catholics were killed Sunday night. A small bus carrying the men home was ambushed on a deserted road in southern Armagh. Their deaths raised to 16 the number of persons killed in the fighting between Catholic and Protestant extremists in the first five days of 1976. All but one were killed in County Armagh. The British government ordered more troops into the county. [New York Times] An aide to Senator Robert Byrd of West Virginia said that Byrd will announce his presidential candidacy. Eleven Democrats are now running. [CBS] Charles Mathias and Ralph Nader are still on the ballot for the Massachusetts primary. [CBS] Edward Derwinski of Chicago, a member of the House International Relations Committee, called for the resignation of Henry Kissinger and charged that he is a political liability for President Ford. [CBS] Two Filipino gunmen held a Japanese airliner for two hours in Manila, then surrendered. There were no injuries. [CBS] New York City firemen battled a blaze at an oil tank on the Brooklyn waterfront; nine people were injured. New Jersey sent additional foam to fight the fire. [CBS] President Ford will attend the funeral of murdered CIA agent Richard Welch. The funeral will be closed to the press. Reporter Daniel Schorr said that the Welch family has a grievance against the press. [CBS]

Stock Market Report

Dow Jones Industrial Average: 877.83 (+19.12, +2.23%)
S&P Composite: 92.58 (+1.68, +1.85%)
Arms Index: 0.74

	Issues	Volume*
Advances	1,466	18.60
Declines	193	1.82
Unchanged	238	1.54
Total Volume		21.96

* in millions of shares

Arms Index is the ratio of volume per declining issue to volume per advancing issue; a figure below 1.0 is bullish.

Market Index Trends
Date	DJIA	S&P	Volume*
January 2, 1976	858.71	90.90	10.30
December 31, 1975	852.41	90.19	16.97
December 30, 1975	852.41	89.77	16.04
December 29, 1975	856.66	90.13	17.07
December 26, 1975	859.81	90.25	10.02
December 24, 1975	851.94	89.46	11.15
December 23, 1975	843.75	88.73	17.75
December 22, 1975	838.63	88.14	15.34
December 19, 1975	844.38	88.80	17.72
December 18, 1975	852.09	89.43	18.04