By James Langton
(March 30 – 09:00 ET) – Markets are down overseas. The air in the internet stocks is quickly escaping. Yesterday, renowned investor, Templeton’s Mark Mobius, called for massive losses in some internet stocks. Traders were spooked by the comments, although his actual words were less terrifying than many supposed. William McDonough president
of the N.Y. Federal Reserve Bank was also out repeating the general message of hawkishness.
U.S. fourth quarter GDP was reported up 7.3%, ahead of expectations of 7.1%. Weekly jobless claims were up just 3,000 to 266,000.
In Canada the industrial product price index was reported up 5.9%, its largest rise since October 1995. The raw materials price index is up 37.1% year over year in February, its strongest inncrease since the index has beenaround. Excluding energy the prices are only up 7.2%.
In Europe stocks are being hammered, despite the fact that the European Central Bank left rates unchanged overnight. London’s FTSE is down 155 points to 6,443. The French CAC 40 is off 174 points to 6,331. Germany’s DAX has slipped 210 points to 7,654. Internet stocks are leading the selling.
Toronto’s 724 Solutions is buying Internet messaging gateway developer YRLess Internet Corp. of Oakville, Ont. for $8.4 million to be paid over three years. YRLess gets $1.2 million in cash upfront, a $600,000 non-competitive agreement fee, and $6.6 million in 724 solutions stock at market prices over the next three years. 724 Solutions is also buying ISPezlogin.com for U.S. $127 million in stock.
Bloomberg is reporting that Wall Street guru Julian Robertson is closing his hedge fund Tiger Management LLC, the fund has apparently dropped US$16 billion in the past 18 months.
In Asia markets were slammed. Although general bearishness and tech weakness seem to be to blame. There are no major traumas in Asia. The Nikkei closed down 265 points to 20,441. The HAng Seng dropped 629 points to 17,467.