By James Langton

(December 14 – 09:00 ET) – Canada’s Consumer Price Index came in higher than expected in November with headline CPI running at a 3.2% annual rate, up from 3%.

Higher energy prices were once again the major contributor to the increase, accounting for almost half of the rise.

Excluding energy, the CPI is running at an annual rate of 1.8%, up from the 1.5% rise recorded in September and October. The result adds to the speculation that the Bank of Canada won’t be easing interest rates anytime soon.

Markets are pointing to a down open this morning, with a heavy slate of news. The U.S. election drama ended once and for all last night with the win going to George W. Bush.

In the United States, the Producer Price Index increased 0.1% in November, although the core rate was unchanged. Economists expected 0.1% gains in both numbers.

European stocks are falling led by the telecoms, such as British Telecommunications plc, after the Bank of England warned that rising debt in the industry increases the risk of a crisis in world equity and credit markets. London’s FTSE is off 137 points to 6,266. In Paris, the CAC 40 has dropped 56 points to 5,906. Germany’s DAX is off 94 points to 6,526.

The European Central Bank left rates unchanged this morning, as expected.

On the earnings front, Chase Manhattan Corp. and J.P. Morgan & Co. warned that fourth-quarter earnings will miss analysts’ estimates because of lower trading revenue and higher merger-related costs. Maytag Corp. also issued a profit warning.

Overnight in Asia stocks slipped smartly, too. The Japanese Nikkei is off 241 points to 14,927. In Hong Kong, the Hang Seng is down 125 to 15,497.

In other news, QLT Inc. warned that sales of its Visudyne therapy would fall slightly below estimates in the fourth quarter, largely due to the declining value of the euro.

Dia Met Minerals Ltd. announced net earnings climbed to $1.22 a share for the nine months ended October 31, compared to 88¢ a share for the same period in 1999.

Alberta Energy Co. says it plans to invest a net $1.9 billion in 2001 core capital programs, an investment that is expected to boost daily produced gas sales by 23% and liquids sales by 20%.

NEC Corp said it plans to sell the manufacturing facilities of its U.K. cell phone unit to Celestica Inc. for an undisclosed amount.