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THE HERALD OUTLOOK Saturday 1989 the HERALD Outlook Stock market spooked by demise Hon The readiness of New York stock and bond markets to come tumbl tag down in response to Robert Campeaus financial woes must give investors pause If the markets are so nervous that the spectre of one companys insolvency sends them into a tailspm perhaps they are not a suitable place for people to put their money Campeau Corp stock plunged before the Toronto Stock Ex change stopped trading last Wednesday It had fallen from a week high of a week ago to on Wednesday a loss of roughly 40 per cent If the dizzying plunge left shareholders feeling sick It left New York financial markets feeling nervous The Dow Jones industrial average fell near 30 points on Wednesday spooked by news that Campeau Corp was short of money to pay its creditors The stock market was dragged down by the junk bond market where Campeaus US retailing subsidiaries have close to billion in high yield debt outstanding OUT OP STEAM Corp triggered the market panic by a regular quarter filing with the US Securities and Exchange Commission the stock market watchdog In it Campeau painted a grim financial Berrys World IB 2050 Rock n roil legend returns again earns 35 billion per concert it Donna Kell OUTLOOK is published each Saturday by the ALTON HILLS HERALD Home Newspaper of Hills A Division of Canadian Newspapers Company Limited at Street Georgetown Ontario 1 3Z6 Second Class Mail Registered Number STAFF WRITFRS Ken I htm iiH It EDITOR ACCOUNTING Brian MacLeod Diane Smith AD MANAGER 1 1 i t Dan Taylor Joan SNAFU by Bruce picture and cautioned that its troubles may not be solved easily The companys troubles first came to light a week ago when it announced it had put its prized chain up for sale It also said it had asked the Reichmann brothers of Olympia and York for a loan to tide it through until it could arrange long term financing The stock promptly fell but then levelled off as investors reasoned that the rescue would be successful The market renewed nervousness later in the week may indicate that the con fldence that has buoyed the market since the 1987 stock market crash has about run its course notes business columnist Peter Cook In The Globe and Mail Debt has undone Mr Campeau but he is not alone Mr Cook points out While it can be said that Campeaus problems do not necessarily indicate a trend for financial markets it must also be said that there are a lot of vulnerable companies out there he says The corporate buying binge of the 1980s was founded on the belief that sales would grow and interest rates would fall Instead sales have slipped and interest rates have stayed stubbornly high Not surprisingly the decline of the Campeau empire has coincided with a wider reappraisal of where a takeover led stock market is headed Mr Cook writes Although optimists still abound the markets could be headed down That October is fast approaching only makes matters worse Each fall investors get nervous remembering the stock market crash of 1929 Now October 1987 looms large as well With all this seasonal anxiety it is hard to see how the market will escape without a beating MtA ADVERTISING SALES annine Valois Craig Teeter Roberts PRODUCTION DEPARTMENT Dave Hastings Supt Annie Gilson Wilson CIRCULATION DEPARTMENT Marie Were happy with holidays A very nervous apple tree Exporters can reap rewards in Europe Vic Parsons Ottawa Bureau hernial Theres no promise of an easy time ahead for Canadian business in the Europe of but the poten tial rewards are enormous for ex porters who can adapt to change For some years now outsiders including Canadians have kept a wary eye on developments among the 12 nations of the European Community There have been concerns that when the com mon market is completed in just over two years foreigners will be largely shut out Not so says Jacques a Belgian diplomat who beads the EC delegation to Canada But he adds the ambitious Canadian en trepreneur will have to cross the Atlantic to get a toehold in the ex panding European market What does Europe 1992 mean to Canada To put it in perspective lets look at a few facts For the record the EC countries are West Germany France Britain Italy Ireland the Netherlands Belgium Denmark Spain Portugal Greece and Luxembourg By the 12 countries in the EC will have 520 million con sumers a significantly larger population than that of Canadas No trading partner the United States While theres no likelihood that the EC countries will ever displace taken together they are Canadas secondlargest trading secondlargest source of foreign investment capital The big change in the EC in JK be created by removing all obstacles to the free movement of goods services workers and capital among the member coun tries POLICIES ADOPTED Common policies in such areas as agriculture health and technical standards and Hon will have been adopted Euro pean industries will benefit from greater economies of scale The EC promoters see enormous economic gains for the member countries Improved efficiency they estimate mean increased production of about billion S equivalent to virtually half the Canadian economy They predict between two million and five million new jobs will be created over the medium term Consumer prices could drop by as much as six per cent These gains dwarf the relatively modest benefits that Canadas Conservative government said would follow in the wake of free trade with the US What can outsiders do as they watch this Colossus grow Will the EC become a more inward looking giant sitting behind unified trade barriers that exclude or at least hamper unwanted foreigners said in a recent article that previously existing national barriers to trade will be removed for foreign companies as well as EC firms Subsidiaries of Canadian firms incorporated in the community will profit to the same extent as purely EC companies wrote Canadian exporters will find themselves selling into a single market with a uniform set of norms standards and pro cedures They will no longr have to face 12 different sets of re quirements or border controls bet ween member states SEVERAL WAYS added in a recent through European subsidiaries by entering Into joint ventures with EC firms or by going over to Europe to sell theres not one With Labor Day behind them memories of summer vacations are fading as fast as tans for most Canadians The kids are back at school there are snowmobile ads on television and we are griping about inhumanly brief holidays Or are we Statistics Canada suggests were not After analyzing the same data used to calculate unemployment figures StatsCan says Canadians seem to be happy with the amount of time off they get In the absence of other evidence one might conclude that current vacation entitlements meet the needs of most workers and that attention is now being focused on other workplace issues among them job security medical plans and child care says analyst This startling state of affairs has existed since the mid1970s says in the StatsCan quarterly Perspectives on Labor and In come Before then in the 50s 60s and early 70s vacations became steadily more common in both winter and summer But that trend levelled off in the mid1970s Gower says the change does not appear to have resulted from shifts in the characteristics of Jobs or of the persons occupying those jobs A StatsCan official familiar with the analysis said the stagnant vacation rate among Canadians came as a surprise Because of Canadas aging population prevailing wisdom had it that vacation time should be increas ing Maryanne Weber said in an in terview As you increase length of time working you should normally be increasing your eligibility for vacation Other things being equal what we were expecting to see was an increase said Weber who was filling in for a vacationing Gower In other words aging baby boomers with seniority dont ap pear to demanding more holidays at least in theory Weber cautions that there may be a lot of other possible interpretations RATES VARY The survey also found that vaca tion rates vary substantially by industry The education sector even excluding teachers gets top marks for the highest summer vacation rate Well behind the education sec tor are the manufacturing and health and welfare industries Gower says Among industries with the lowest summer vacation rates are agriculture accommodation and food personal services and con struction Workers in the same sec tors have a high proportion of unpaid vacations Persons vacation out numbered unpaid vaca tions by more than six I one Women students parttime workers and people service- sector jobs are most v to be on