By James Langton
(June 5 – 09:00 ET) – After Friday’s exuberant rally traders are sobering up today and looking to pull in their horns a little until a clearer picture forms on interest rates.
There are no major data releases out today, and indeed nothing significant all week until Friday when the U.S. Producer Price Index gets released, and Statistics Canada releases the May Labour Force Survey.
In the meantime stocks are slipping in Europe, which is anticipating a possible rate hike this week. Telecoms are leading the way down. London’s FTSE is down 49 points to 6577. Paris’ CAC 40 has shed 46 points to 6627. In Germany the DAX is off 50 points to 7388. U.S. futures traders are slugging stocks, too.
USA Today is reporting that Unilever NV takeover target Bestfoods is in talks to buy Campbell Soup Co. for more than US$15 billion to thwart Unilever’s bid.
Thomson Corp. is acquiring financial information publisher Primark Corp. in a US$842 million all-cash deal to boost its software and content services business.
U.K. water firm Severn Trent PLC is buying the waste business of Waste Management Inc. for US$574 million.
Skyjack Inc. is reporting a loss from continuing operations for fiscal 2000 of 48¢ a share, compared with earnings of $2.28 a share in fiscal 1999, for the year ended March 31. Including restructuring and related costs the loss increases to $2.65 a share.
In Asia, traders rallied hard on Friday’s good feeling before the dour European traders began pulling markets back. The Nikkei gained 402 points to 17201. The Hang Seng added 577 points to 15861.