By James Langton
(May 3 – 09:00 ET) – Statistics Canada is reporting that the Industrial Product Price Index is slowing. The pace of growth in yearly industrial product prices slowed in March for the first time since October 1999. The Industrial Product Price Index rose 5.5% in March compared with a year earlier, decelerating slightly from February’s growth of 5.9%.
However, manufacturers paid 33.1% more for raw materials in March than they did in the same month last year. Crude oil prices were the big reason, more than double since March 1999.
Later today, the U.S. Federal Reserve Board is releasing its Beige Book report, to which some will pay close attention.
In Europe stocks are mixed. London’s FTSE has dropped 62 points to 6311. In Paris, the CAC 40 is off 26 points to 6536. Only Germany’s DAX is up, gaining seven points to 7562.
Interest rate worries are hitting markets, knocking down telecoms and oil stocks. Australia’s central bank jacked its rates up 25 basis points overnight to stem inflation. Concern over similar moves is reflected in the Euro, which keeps hitting new lows. It’s now below 90¢US.
In merger news the London Stock Exchange and the Deutsche Boerse AG have agreed to merge to create Europe’s biggest stock exchange. Bestfoods has rejected an US$18.3 billion cash offer from Unilever.
Canada’s own TD Waterhouse Group Inc. is buying a phone-based discounter in Britain, Dealwise, for £82.1 million. The deal makes Waterhouse the largest retail broker in Britain, and the firm says it is now looking for deals in the rest of Europe.
In Asia markets slipped. Japan didn’t trade at all since it is on its “Golden Week” holiday for the rest of the week. But in Hong Kong the Hang Seng dropped 240 points to 15577.
Air Canada is reporting an operating loss of $5 million for the first quarter, up from $17 million in the period last year.