By James Langton

(March 8 – 09:00 ET) – Bank of Canada governor Gordon Thiessen is making a speech
today. There may be some hints about interest rate direction.

Next week will bring key U.S. inflation data. U.S. jobless claims rose just 5,000 last week, on target with expectations.

Statistics Canada is reporting that municipalities issued $3.3 billion in building permits in January, a decline of 5.5% from December, far faster than the expected 1.8% decline. However construction intentions were up a 25.2% over January 1999. These numbers should have minimal market impact.

In Europe stocks are mixed. The British central bank left rates unchanged this morning. Mega mergers are the order of the day, with banks down and telecoms up. London’s FTSE is roaring ahead 112 points to 6,523 on news that British Telecommunications PLC will set up a separate mobile Internet unit. Its shares are up 20% on the news. France’s CAC 40 is Germany however is down 54 points to 7,933 on confirmation of the Deutsche Bank deal. Deutsche Bank AG has agreed to buy Dresdner Bank AG for about US$29 billion in stock.

The Wall Street Journal is reporting that Deutsche Telekom AG has made separate
offers to buy Qwest Communications International Inc. and U S West Inc., deals that would be worth a combined US$100 billion. Finally cable giant United Pan-Europe Communications NVis offering US$2.8 billion in cash andstock for the 77% of SBS Broadcasting SA it doesn’t already own.

In Asia stocks closed down on profit-taking and weakness among Internet stocks. The Nikkei closed down 104.5 points to 19,662. The Hnag Seng dropped 314 points to close at 17,637