By James Langton
(June 6 – 09:00 ET) – Data remains thin this morning, as does trading interest. There are no major releases out in Canada today. U.S. non-farm productivity came in unrevised for the first quarter at 2.4%. Unit labour costs were revised downward from a 1.8% increase in the first quarter to 1.6%. Neither sparked much market response, although they are mildly positive.
The Bank of England begins its two-day policy meeting today. It isn’t expected to change rates, although the European Central Bank is expected to hike interest rates 25 basis points on Thursday.
In Europe markets are mixed in lazy trading, with telecoms and Internet shares sliding. London’s FTSE is up just three points to 6550. France’s CAC 40 is off 55 points to 6601. In Germany the DAX has slipped 66 points to 7341.
In mergers and acquisitions news Sycamore Networks Inc. has agreed to buy Sirocco Systems Inc. for US$2.9 billion in stock, after it lost out to Lucent in the bidding for fibre-optic equipment-maker Chromatis.
Speculation of a merger between KLM Royal Dutch Airlines NV and British Airways PLC is running rampant.
In Asia overnight the Nikkei dropped 32 points in weak trading to 17170. Hong Kong’s markets were closed for a holiday.
In other business news TLC Laser Eye Centers Inc. is reporting that volumes for fiscal 2000 are up 48%. However it will still report a fourth quarter net loss ranging from US23¢ a share to US27¢ a share. Actual results will not be available until mid-July.