By James Langton
(September 5 – 09:00 ET) – There are no economic data releases in the U.S. today. Statistics Canada is reporting that the value of building permits in July was unchanged from June at $3.1 billion. Economists were expecting a 2% gain. However, gains in the non-residential sector, up 2.2%, were offset by a drop in residential building intentions, down 1.6%, leaving the value of building permits unchanged.
In Europe, the euro is suffering and so are stocks. Media and communications stocks are leading the way down on the general feeling that last week’s rate hike will hurt these firms first. The FTSE is down 13 points to 6,784.The CAC 40 has dropped 39 points to 6,883. The DAX is off 36 points to 7,409.
In M&A news, power company National Grid Group plc is buying Niagara Mohawk Holdings Inc. for US$8.9 billion in cash, stock and assumed debt.
WorldCom Inc. is buying Intermedia Communications Inc. for about US$6 billion in stock and assumed debt.
Overnight in Asia stocks were weak, too. The Nikkei dropped 236 points to 16,452. The Hang Seng slid 131 points to 17,595.
In other business news, Geac Computer Corp says it has had a couple of unsolicited offers for the firm. It says it will, “give consideration to potential transactions involving part or all of its businesses, with the overriding aim of maximizing shareholder value.” CIBC World Markets has been retained as Geac’s financial advisor.