By James Langton
(August 15 – 09:00 ET) – There is no economic data out in Canada today. Industrial Production numbers for July in the United States are out at 09:15ET, consensus is for a 0.4% gain. Capacity utilization is expected to come in unchanged at 82.1%. Assuming there’s no big surprise, this number shouldn’t move the markets ahead of tomorrow’s CPI report in the U.S.
In Europe this morning stocks are mixed. Drug companies are down, but oils and some techs up. The FTSE has gained 44 points to 6,464. The CAC 40 is up 27 to 6,636, and the DAX has slipped 19 points to 7,312.
The oils are gaining as crude oil prices topped US$32 a barrel for the first time since the demise of Iraq’s 1990 invasion of Kuwait. Weak U.S. inventories are the culprit this time.
On the M&A front, it’s being reported that Germany’s biggest utility RWE AG is talking to a variety of companies, including Vivendi SA, Suez Lyonnaise des Eaux SA and Endesa SA about possible deals.
Canada’s own Nortel Networks is doing yet another deal, buying Sonoma Systems for US$540 million in Nortel stock. Sonoma makes devices to allows ISPs to offer high-speed, high-bandwidth services over one network.
Overnight in Asia stocks were up. The Nikkei added 144 points to 16,298. The Hang Seng gained 465 points to 17,463.
In earnings news, Manulife Financial is reporting second quarter net income of $247 million, up 21%. Earnings per share rose to 51¢ a share from 41¢. The company attributes the gains to solid results in both insurance and wealth management operations.
Oxford Properties Group Inc. reported net income of 36¢ a share, up from 20¢.
Rio Alto Exploration reports that its earnings increased 182% to $72 million, or $1.01 a share, in the first half.
Zi Corp. is reporting a second quarter loss of 4.6¢ a share, up from a (5¢) a share loss last year, despite 216% revenue growth.