News stories from Thursday August 21, 1975
Summaries of the stories the major media outlets considered to be of particular importance on this date:
- Consumer prices in July rose by the largest amount for any month this year, marking the second consecutive month of substantial increases, the Labor Department said. Dominated by higher prices for food, fuel and cars, the Consumer Price Index rose 1.2 percent after adjustment for normal seasonal changes in some prices. The July increase followed a rise of eight-tenths of 1 percent in June. If this rise continues, it could mean a return to last year's "double digit" inflation. However, government economists, with considerable support from outside the government, do not expect the surge to continue. [New York Times]
- Agriculture Secretary Earl Butz estimated that Americans will pay 1.5 percent additional for their food this year because of recent sales of 9.8 million tons of grain to the Soviet Union. The Agriculture Department's chief economist made an accompanying statement that future grain sales to Russia, expected by President Ford and Dr. Butz, would raise food prices further. [New York Times]
- A new round of price increases on petroleum products is underway, ranging from one-half cent to 1 cent a gallon and more on gasoline. They follow increases averaging 2½ cents announced by most oil companies early in July. [New York Times]
- Mayor Joseph Alioto of San Francisco, using his emergency powers, imposed a compromise settlement for striking police officers and firemen after the Board of Supervisors had rejected it. "The strike is over," the Mayor said. "San Francisco will be fully normal tomorrow." [New York Times]
- Mayor Beame angrily said that he would make no further budget cuts in police, fire, sanitation and other "vital life-support services" in New York City. His anger was caused by statements from Governor Carey and others that he had failed to win investor confidence in his administration. He criticized Mr. Carey for "sermonizing" on the city's fiscal troubles.
Top advisers to Governor Carey said that he had decided to prod publicly for more economies by Mayor Beame -- and risk a potential party-splitting confrontation -- after meetings with leading bankers and officials of the Municipal Assistance Corporation. A party leader close to Mr. Carey said "the Governor was compelled to emerge from his off-the-record activity because the Mayor refuses to take the lead in establishing the city's credibility."
[New York Times] - The United States lifted its 12-year-old ban on exports to Cuba by foreign subsidiaries of American companies, but, a State Department spokesman said, the embargo on direct trade between Cuba and the United States remained in force. A high State Department official appeared to go out of his way to avoid characterizing the action as a conciliatory gesture toward Cuba or as a prelude to other steps. It was, he explained, related to the recent removal of trade sanctions against Cuba by the Organization of American States. [New York Times]
- The partial lifting of the United States economic blockade was welcomed by Premier Fidel Castro of Cuba, but he said it must be removed entirely before there could be serious negotiations for the restoration of normal diplomatic relations between the two countries. He said the blockade was "a dagger," directed at the heart of Cuba. [New York Times]
- Secretary of State Kissinger arrived in Jerusalem expecting to conclude in the next 19 days an Egyptian-Israeli agreement on Sinai. There were widespread demonstrations in Israel against such an agreement and he made an emotional speech urging Israelis to continue taking "risks" for peace. He said that despite recent strains in Israeli-American relations, the United States was determined to support Israel and insure her security. [New York Times]
- The pro-Communist Premier of Portugal, Vasco Goncalves, was expected to leave office by Monday in accordance with a deadline believed to have been set by officers representing most of the armed forces. But tension was unabated because it appeared that the Premier had not entirely reconciled himself to defeat, despite a clear statement by President Francisco da Costa Gomes that the cabinet's life was a matter of days. Socialists said they believed the new government would be headed by Gen. Carlos Fabiao, the army Chief of Staff and a political independent. [New York Times]
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Stock Market Report
Dow Jones Industrial Average: 791.69 (-1.57, -0.20%)
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* |
| August 20, 1975 | 793.26 | 83.22 | 18.63 |
| August 19, 1975 | 808.51 | 84.95 | 14.99 |
| August 18, 1975 | 822.75 | 86.20 | 10.81 |
| August 15, 1975 | 825.64 | 86.36 | 10.61 |
| August 14, 1975 | 817.04 | 85.60 | 12.46 |
| August 13, 1975 | 820.56 | 85.97 | 12.00 |
| August 12, 1975 | 828.54 | 87.12 | 14.51 |
| August 11, 1975 | 823.76 | 86.55 | 12.35 |
| August 8, 1975 | 817.74 | 86.02 | 11.66 |
| August 7, 1975 | 815.79 | 86.30 | 12.39 |