OPTIMISTIC TRADE

Hawke's Bay Herald-Tribune, Issue 161, 26 July 1937, Page 7

OPTIMISTIC TRADE

-FreSB Asgn.-

Manufacturing Industries Still Expanding BUTTER 0UTL00K

(By Telegrapli-

-Copyright.)

(Received 26, 10.55 a.m.) LONDON, July 25. The markets remain more suspended than animated. Far Eastern bonds fiuctuated wildly as prospects of a Sino-Japanese war advanced and receded. ludustrials began to show greater tirmnesg towards the close of the week. Oils and base metal shares were firmer and rubbers dull. The Economist'B Review states:-^ "Trade was more optimistic and business activity continued to expand despite a normal season. The trend of reports from the principal' industrial centres indicate that the volume of new business was well maintained, and there should be a further expansion in the next £ew months. Profits are increasing as rapidly as ever, and the capital market has shown signs of revival in recent weeks. A salient feature of recent months has been the expansion of exports of manufactures by almost every kind of iron and steel and dependent trades have been working to capacity. Even the buiiding trades continue to expand. World trade is rapidly improving owing to the decreasing ability of individual countries to satisfy domestic needs internally. The trend of primary products appears upward." The Elconomist, hmvever, points out that, allowing for the growth of the world's productive capacity, international trade is still lower than pre-war. Even the boom in shipping only pushed up tonnage under construction in Britain to about half the 1913 levels. Butter is largely nominal at hdgher prices though the outlook seems favourable for cheaper varieties. Continentals are also surprisingly dull, despite the fact that Dutch is offering at 110/- and Siberian of excellent quality at 111/-. Cheese is also firm at advancing prices. The fruit position remaius stiong, and there should be a steady market for the remain der of the season.