A major telecommunications merger between AT&T and BellSouth, along with a few other smaller deals, should give North American stocks a boost on Monday.

AT&T announced over the weekend that it had agreed to buy BellSouth for US$67 billion to create the largest telecom company in the world with a market capitalization of as much as US$170 billion. BellSouth shares jumped 13% a share in pre-open trading.

Here at home, Statistics Canada said the value of building permits cooled off in January from record levels set at the close of last year. Intentions rose for only one component, single-family homes. Nevertheless, January’s level was equal to the average monthly value in 2005, which was a record year for permits.

Municipalities issued $5.1 billion in permits in January, down 19.3% from the record high $6.3 billion set in December. Both the residential and non-residential sectors posted declines.

The Bank of Canada is scheduled to make its rate announcement early Tuesday, and most analysts are expecting a quarter-point hike.

On Monday, the Canadian dollar opened at US87.95¢, down 0.16 of a cent.

Overseas, telecom stocks rallied in Europe. London-based banking giant HSBC Holdings PLC reported a 17% rise in full year profits Monday, aided by growth in new markets. HSBC, which operates in Britain, Europe, Asia and the Americas, said that net profit for 2005 was US$15.08 billion, up from US$12.92 billion the previous year.

Asian stock markets also were largely stronger. The Japanese Nikkei 225 surged 237.82 points, or 1.5%, to finish at 15,901.16.

In Hong Kong, the Hang Seng Index rose 9.83 points, or 0.1%, to finish at 15,811.83.

On Friday, Toronto stocks rallied for a third consecutive session on Friday, getting a boost from strong earnings from Royal Bank.

The S&P/TSX composite index closed 71.77 points higher, or 0.6%, at 11,978.68.

The benchmark index finished the week with a 1.4% gain.

The financial sector added 0.86%, led by Royal Bank, up $3.07, or 3.2%, at $97.97.

Canada’s largest bank posted a 20% increase in profit, increased its dividend and announced a stock split.

Research in Motion reached a US$612.5-million settlement with arch rival NTP ending many years of legal wrangling that threatened to shut down use of the popular BlackBerry wireless devices in the United States.

The maker of the BlackBerry announced after markets closed Friday that it has signed a definitive licensing and settlement agreement, ending the long dispute.

RIM’s U.S. share price rose 13% in after-hours trading after the agreement was announced. The US stock traded as high as US$81.03.

The junior S&P/TSX Venture composite index rose 39.36 points, or 1.51%, to end the week at 2,651.23.

On Wall Street, U.S. stocks finished little changed.

The Dow Jones industrial average dipped 3.92 points, or 0.04%, to end at 11,021.59. The S&P 500 was down 1.91 points, or 0.15%, at 1,287.23. The Nasdaq composite index was down 8.51 points, or 0.37%, at 2,302.60.

For the week, the Dow industrials fell 0.36% and the S&P 500 slipped 0.17%, while the Nasdaq gained 0.68%.