By James Langton
(June 28 – 09:00 ET) – Although it pales in importance next to the rate decision expected this afternoon from the FOMC, there were a couple of shreds of economic data out in Canada this morning. The Industrial Product Price Index came in up 5.6% year-over-year for May 2000. Once again, petroleum prices were central to these gains. The Raw Materials Price Index, was reported up 24.9% year-over-year. Of course the 14:15 ET rate decision is the key number today. No move is expected.
Stocks are mixed, but lightly traded in Europe ahead of the rate news. London’s FTSE is down 23 points to 6,352. France’s CAC 40 is off 23 to 6,545. The German DAX is up 11 points to 7,059.
In M&A news, Mack-Cali Realty Corp. is spending US$2.3 billion in stock and debt for Prentiss Properties Trust. Ford Motor Co. has won the sole right to negotiate for Daewoo Motor Co. QBE Insurance Group Ltd. of Australia is spending US$564 million for Limit Plc.
After the Department of Justice scotched the megamerger of WorldCom and Sprint yesterday, Thomson Corp. and Primark Corp. have received a request for additional information and documentary material from the Antitrust Division of the Department of Justice as it studies the proposed acquisition of Primark by Thomson.
Deutsche Telekom AG sold a record US$14.57 billion in bonds this morning, leading an expected rush from European phone companies for funding.
Markets were strong in Asia overnight. The Nikkei added 91 points to 17,370. The Hang Seng gained 283 points to 16,438.
Canadian real estate firm O&Y Properties Corp. is reporting higher first-quarter profits.
CAE Inc. says it has been subject to a mini-tender offer, warning shareholders not to accept it.