Profit warnings point to weaker market opening

Markets continue to focus on the euro and oil prices, and the two indicators are sending mixed messages. The euro is up, but so are oil prices on supply worries. The result is an ambiguous fear in the markets.

In Europe stocks are mixed with techs and telecoms on the way down. The FTSE is off 58 points to 6,198. The CAC is down 27 points to 6,309. The DAX is flat at 6,790.

In M&A news, Rodamco North America NV, the U.S. arm of a Dutch mall owner, is buying Urban Shopping Centers Inc. for US$3.4 billion in cash and assumed debt.

U.S. futures are pointing to a down opening on the heels of profit warnings from Eastman Kodak Co. and Lexmark International Inc.

In Asia stocks dipped overnight. The Nikkei finished off 64 points to 15,928. The Hang Seng dropped 138 points to close at 15,291.

In business news, Bell Canada International Inc. is joining SBC Communications and Telefonos de Mexico in a South American cable and telephone company. News of a closer relationship between Bell and SBC comes on the heels of speculation of a possible BCE sale. BCI will own 44% of the new firm as will Telmex, SBC will hold the rest.

Wi-LAN Inc. and Ericsson Canada Inc. today announced an agreement to pursue joint marketing opportunities in Canada. The bundled products offered will include Ericsson’s IP backbone, Voice-over-IP and systems integration services. Wi-LAN will supply high-speed wireless broadband access.

SYNSORB Biotech Inc. says its SYNSORB Pk drug is being sent to a third clinical trial by the U.S. Food and Drug Administration. “It has been concluded that an additional clinical trial will be required to complete development,” the firm says. It is now planning a new Phase III clinical study.

David Nield, chairman of Canada Life, will ring the opening bell on the New York Stock Exchange this morning as one of Canada’s largest insurance companies lists on the NYSE.

Although there were no major economic releases today, Statistics Canada did announce that Canada’s population surpassed 30,750,000 as of July 1, mainly due to a significant increase in the number of immigrants.

StatsCan also announced the business sector recorded a 1.5% gain in multifactor productivity in 1999, more than twice the annual average during the previous decade. The gain occurred in a context of robust economic growth and the most rapid increase in the labour input in a decade.