By James Langton

(August 17 – 09:00 ET) – There’s no major data out in the United States this morning, but Canada’s inflation numbers are out. The headline CPI was above expectations at 0.4%, but the core rate was up just 0.2% as expected. This places core inflation at a 1.5% annual rate, well within the Bank of Canada’s operating band of 1% to 3%. These numbers aren’t expected to push the bank to deviate from Fed policy one way or the other.

Stocks are down across Euroland this morning, with the pricey telecoms leading the way, followed down by banks and drugs. The FTSE is off 37 points to 6,495. The CAC 40 is down 68 ticks to 6,616, and the DAX has slid 86 points to 7,229.

In M&A news, British Telecommunications plc is spending US$6.1 billion in cash for Germany’s Viag Interkom. This is just the latest in a string of deals in the sector, and the fears about the costs of the acquisitions is hitting stocks.

In earnings news Hewlett-Packard Co. beat analyst forecasts last night, sending its stock higher. Ciena Corp., a fiber-optic network equipment maker, has said its forecast fourth-quarter earnings will beat estimates, pushing that stock higher, too.

Crude oil prices are up more than 2% after the president of OPEC said exporters won’t boost output before next month’s meeting.

Stocks were down overnight in Asia, too. The Nikkei finished off 195 points to 16,161. The Hang Seng dropped 112 points to 17,622.

In this morning’s business news, Toronto-Dominion Bank is reporting operating earnings, excluding the special gain from the sale of 11.5% of TD Waterhouse Group, were $511 million, or 80¢ a share, up from 66¢.

Pivotal Corp has announced that its common shares have been approved for listing on the Toronto Stock Exchange, the Vancouver firm already trades on Nasdaq.

SYNSORB Biotech Inc. reported its results for the second quarter. Total loss for the quarter ended June 30 was (9.3¢) a share, compared to (18¢) a share, for the same quarter last year.

Cyress Energy is reporting net income of 17¢ a share in the quarter, up from 3¢ last year.