By James Langton

(July 24 – 09:00 ET) – There are no major economic releases out in the U.S. today. Statistics Canada is reporting that foreign investors reduced their holdings of Canadian securities by $6.2 billion in May. At the same time, foreign securities held by Canadian investors jumped by a near record $8.7 billion, due primarily to their acquisition of stocks. Not much reaction to the release is expected.

In Europe stocks are mixed with oils up and telecoms down. The FTSE is off six and one-half points to 6,371. The DAX is also down about six points to 7,367. Only the CAC 40 is up, gaining 48 points to 6,512.

The big M&A news today will undoubtedly boost the wireless stocks. Deutsche Telekom has agreed to acquire VoiceStream Wireless for US$55.7 billion in cash, stock and assumed debt.

Today’s big rumour involves Nortel Networks Ltd. selling its fibre-optic components unit to Corning Inc. for more than US$100 billion. Nortel would take payment in Corning stock, owning more than half the company as a result, although Corning would remain independent. Both stocks are up in the pre-market on the news.

Other Nortel news has British Telecommunications plc using the firm to build a new optical network in the UK.

In earnings news drug giant Merck & Co. is reporting second-quarter profit up 16%.

In Asia stocks were down overnight. The Nikkei finished off 264 points to 16,547. The Hang Seng dropped 261 points to 17,659.

In other business news, Bombardier Inc. is set to announce another 50 firm aircraft orders worth $1 billion at the Farnborough air show.

Thirteen of the world’s major airlines have also announced the creation of the airline industry’s largest business-to-business e-commerce exchange. Aeroxchange will be launched in a couple of months to sell aircraft technical parts and services as well as general business supplies to airlines on the web. The group of airlines is in negotiation with Oracle Corp. to become the exchange’s technology provider. Air Canada is part of the deal.

Celestica Inc. says it intends to raise approximately US$750 million through an offering of 20-year Liquid Yield Option Notes, or LYONs. The LYONs would be zero coupon subordinate debt convertible into Celestica subordinate voting shares, and are expected to be priced this week. The issue is being underwritten by Merrill Lynch & Co. Celestica intends to use the proceedsf or capital expenditures, working capital and general corporate purposes, including future acquisitions.