Markets creep up as traders sit tight

Regardless of what the Fed does
tomorrow the Bank of Canada appears
ready to sit tight, and the mixed
picture of the Canadian economy
got another moderating signal
this morning in construction.
Statistics Canada is reporting
that the total value of building
permits issued in August slipped
by 9.4% to $2.9 billion in August.
Declines came in both the
residential and non-residential
sectors.

Markets are trading to the
upside so far in Europe, with
mergers apparently leading the
way. In London there’s plenty of
speculation surrounding the future
of NatWest, which is apparently
ready to strip out all its best
assets in an effort to fend off
hostile suitors. The FTSE 100 is
up about 35 points. Over in Paris
the CAC 40 is also up 35 points.
While the German DAX is up about
80 points. Lufthansa is not
commenting on reports that it may
be involved in a counter-offer for
Air Canada, driving that
stock higher. U.S. firms that also
trade in Europe are driving these
markets higher too, with some big
deals on tap in the U.S.

Sprint Corp.’s stock is
up heavily after the Wall Street
Journal reported that
BellSouth Corp. is bidding
US$72 billion in cash and shares
for the firm, trumping a US$65
billion bid from MCI WorldCom
Inc. Nevertheless the feeling
is that the firm prefers
WorldCom’s offer.

Meanwhile the media business
continues to consolidate. Clear
Channel Communications Inc.,
the second-biggest owner of U.S.
radio stations is buying the top
station owner, AMFM Inc.,
for US$23.5 billion in stock and
assumed debt.

This morning JDS Uniphase
announced a small deal for New
Jersey based, EPITAXX Inc.
Subject to regulatory approval the
firm will pay about $400 million
in stock for the firm which makes
optical detectors and receivers
for fibre optic telecom and cable
TV networks.

Overnight in Asia markets
closed higher after a positive
Tankan Report, which puts Japanese
business confidence at a 21-month
high in September. But the trading
was rather subdued ahead of the
Fed’s move in the U.S. The Nikkei
closed the day up 51 points. Over
in Hong Kong the Hang Seng closed
143 points to the good.

Traders will want to keep an
eye on gold stocks too, with
gold up another US$7.70 this
morning. New York traders are
offering the rejuvenated metal at
US$315.