High labour costs and slower corporate investment could hinder Sweden’s economic growth after 1987, the Organisation for Economic Cooperation and Development, OECD, said. The Swedish economy grew at a slower rate in 1986 than in previous years. GDP rose about 1.7 pct in 1986 compared with 2.2 pct in 1985. But this growth depended largely on external factors, particularly lower oil prices, the OECD secretariat said in its latest annual report on Sweden.

U.S. Treasury Secretary James Baker has cancelled a trip to Australia because of pressing business at home, including the visit this week by Japanese Prime Minister Yasuhiro Nakasone, a Treasury spokesman said. The spokesman, who asked not to be identified, said, “I would not draw any conclusion from the cancellation … I would just say it’s the press of business.” He said Nakasone’s visit was “part of the press of business” but denied the cancellation was linked to the current turmoil in the financial markets.

Energy and mines minister, Wilfredo Huayta, said Peru would maintain its freeze on new sales of silver until the price of the precious metal reaches “the true value this raw material should have.” He spoke to reporters at the presidential palace after meeting president Alan Garcia, whom he said recently spoke by telephone with Mexican president Miguel de la Madrid. Mexico and Peru are the world’s two largest silver producers.

Commercial hedgers increased their stake in sales of U.S. crude oil and heating oil futures during May, according to a U.S. federal agency report. Trade hedgers accounted for 64.7 pct of open short positions in May, compared with 58.2 pct in April, and added 5,700 new sales in May, while liquidating almost 11,000 purchases, the report said. Speculators, in contrast, saw a decline in share of crude oil shorts in May.

The Belgian National Bank said it cut its one, two and three month treasury certificate rates effective immediately. It said in a telex message the key three month rate was reduced by 0.05 points to 7.25 pct, the two month rate by 0.10 points to 7.20 pct and the one month rate by 0.15 points to 7.15 pct. The Bank last adjusted its short-term treasury certificate rates on April 3, when all three rates were cut by 0.

Belgian Finance Minister Mark Eyskens warmly welcomed this week’s increase in U.S. Prime rates, calling it a move that went beyond the Group of Five and Canada Paris accord on stabilising currencies. The rate rise would underpin economic and financial policy convergence among major countries, he added. In an interview with Reuters, Eyskens also made clear he believed the countries involved in the accord - the U.S., Japan, West Germany, France, Britain and Canada - had agreed “tentative” fluctuation ranges for exchange rates.

Congress returned from its Easter recess ready for the annual Spring budget battle that promises to be a partisan dispute. The budget fight pitting Democrats against President Reagan and Republicans is expected to get underway this week in the Senate late this week and last at least another week. It is taking on new prominence because of current trade woes. That is because the budget problems and its associated huge deficits are said to be at the root of related international trade friction currently worrying financiers.

Japan’s broadly defined money supply average of M-2 plus certificates of deposit (CD) jumped a preliminary 10.2 pct in May from a year earlier, the Bank of Japan said. The increase is the largest year-on-year rise since March 1982 when the money supply gained 10.5 pct. The money supply had increased 9.8 pct in April. The seasonally adjusted average in May rose 1.0 pct from the previous month. Unadjusted M-2 plus CDs were an average 347,200 billion yen in May against 345,500 billion in April.

Members of local 174 of the United Food and Commercial Workers (UFCW) union, representing 1,900 meat cutters in New York city, yesterday rejected the latest management offer on a new contract. “Members rejected the latest offer by a 2 to 1 margin,” Bob Wilson, executive officer of local 174 said. But workers have been asked to remain on the job while negotiations continue. The union has been in negotiations with the Greater New York Association of Meat and Poultry Dealers, a group of meat wholesalers and distributors.

Daiwa Securities Co Ltd, of Tokyo, plans to open a new Canadian company after a June 30 deregulation of the Ontario equity market is implemented, Daiwa Securities general manager for Canada Hajimu Watanabe told Reuters in reply to query. The Toronto Stock Exchange earlier announced Daiwa became the first Japanese company to acquire an exchange seat, paying 361,000 Canadian dlrs, the highest price ever paid. “This is a prelude of our establishment of a new Canadian company,” Watanabe said.