By James Langton
(February 25 – 09:00 ET) – Statistics Canada is reporting that strong energy prices pushed up industrial product prices in January — to their fastest yearly pace in over four years. The Industrial Product Price Index climbed 4.4% compared with January 1999, the largest year-over-year increase since December 1995. Similarly manufacturers are paying 30.0% more for raw materials than they did a year earlier.
U.S. fourth quarter GDP was reported up 6.9% today. Stock futures traders stayed neutral
on the data.
The big news this morning is a surprise takeover offer of $2.3 billion cash from BCE Inc. for CTV Inc. The deal is priced at $38 per share. While not on the scale of the AOL-Time Warner deal it appears to be based on the same motive — content convergence.
In Europe stocks are up once again, although it remains to be seen if they can hold their gains once Wall Street opens. Expectations for strong profit gains and reports of good economic growth are spurring optimism. The FTSE is up 52 points to 6,138. France’s CAC 40 is strongest, it has added 83 points to 6,162. Germany’s DAX is up 40 points to 7,681.
USA Today is reporting that BP Amoco PLC is offering to sell Atlantic Richfield Co.’s Alaskan assets in order to secure approval for its proposed US$29.7 billion buyout of the company.
The chairman of the Japanese agency overseeing the restructuring of the country’s banks resigned amid an uproar following disclosures that he told finance executives the government might be willing to relax its investigation of the industry.
In Asia stocks finished up on techs and telecoms. The Nikkei closed up 246 points to 19,818. Hong Kong’s Hang Seng finished up 142 points to 17,201.
Hollinger Canadian Newspapers, L.P. is reporting net income of 50¢ per unit in the last eight months down from 62¢ per unit last year. SYNSORB Biotech Inc. reports a loss of 55¢ per share in fiscal 1999, down from a 67¢ losslast year. Newport Petroleum Inc. earned 3¢ per share in the latest quarter, up 106% year over year.