Markets are expected to open flat Friday with investors waiting for news from the United Nations. At 10:15 ET, chief weapons inspector Hans Blix is due to give his latest report on Iraq.

A “smoking gun” isn’t expected to be revealed. Blix may ask for more time to carry out inspections. Meanwhile, Prime Minister Jean Chretien has cautioned the U.S. from acting alone, without U.N. support.

The Blix report is casting a shadow over economic data from the U.S., expected later this morning, regarding industrial sales and consumer sentiment.

Recent days of dread haven’t been good for the fund industry. The year began with 26 of 32 Morningstar Fund Indices ringing up negative returns and 88% of funds in the red for January, according to Morningstar’s survey of more than 4,500 Canadian mutual funds.

Statistics Canada is reporting some good news. Federal retirement income programs accounted for three-quarters of the total income of seniors aged 65 and older in 1999, up from just under two-thirds in 1990.

The good news is that much of seniors’ increased reliance on retirement programs was in the form of private pension income, largely from Registered Pension Plans and Registered Retirement Savings Plans. These accounted for 29% of their income in 1999, up from 18% in 1990. Over half of seniors, 55%, received private pension income in 1999, compared with 38% in 1990.

Investments remain the other significant source of income for seniors. Half the senior population received investment income in the mid-1990s, a sharp decline from nearly two-thirds in 1990. By 1999, this proportion rebounded to 60%. Investments have also become less important for seniors in terms of income share. Investments represented 13% in 1999, down from 23% in 1990. Falling interest rates throughout most of the 1990s help to explain this.

Old Age Security provides income to 98% of all seniors. However, seniors’ income from Old Age Security and Guaranteed Income Supplement has been decreasing, from 30% of their total income in 1990 to 27% in 1999.

Several companies will be reporting earnings today. TELUS and Rogers Communications weighed in early, both reporting increased operating profits but net losses per share.

In Tokyo, the Nikkei average rose 102.26 points to 8,701.92 after the government reported that Japan’s economy expanded by 0.5% in the October-December period, its fourth straight quarter of growth.

In Hong Kong, the Hang Seng index edged up 28.33 points to 9,201.76, as bargain hunters stepped in following a sharp fall Thursday provoked by worries about Iraq.

In Europe trading is cautiously positive. The FTSE 100 index is up by half a per cent, gaining 16.6 points to 3,627.4. Germany’s DAX added 1.9% and the Paris CAC-40 advanced 0.8%.