By James Langton
(March 14 – 09:00 ET) – Overseas markets were calmer overnight. U.S. retail sales came in up 1.1% for February, precisely on consensus. It’s a strong number, but markets were expecting it so reaction should be rather muted. Equities traded up on the news while bonds slipped slightly. Traders were surprised by the retail sales number excluding autos. It was up 1.0%. Analysts were calling for an ex auto number of 0.6%.
In Canada, there are no major economic releases scheduled today, although Quebec’s budget is due this afternoon.
In Europe, markets are mixed in a rather moderate trade. Telecoms are down again today, but consumer products are up. London’s FTSE is the strong area, up 30 points to 6,497. In Germany the DAX has added 21 points to 7,714. France’s CAC 40 is off just two points to 6,335.
Mergers are again at the top of business news worldwide with one big deal in Asia, Europe and North America. Asia’s is the biggest deal with yesterday’s rumour coming true. Sanwa Bank Ltd., Tokai Bank Ltd. and Asahi Bank Ltd. have agreed to a three-way US$30.5 billion merger that results in the world’s third-largest bank.
BP Amoco PLC is getting bigger, buying Burmah Castrol PLC for £3.4 billion (US$5.4 billion) in cash and debt. It will now own the popular Castrol brand of consumer motor oil.
In North America our own Nortel Networks Corp. is again opening its wallet, this time to acquire Xros for US$3.25 billion in stock. Xros is a photonic switching firm, using light to transmit data. Nortel says, ” Xros is another key building block in Nortel Networks strategy to be the first-mover in delivering the all-optical Internet.”
Acetex Corp is reporting a better than expected loss of 15¢, up from a 64¢ loss in the period last year. Siemens is buying two firms, including Canada’s Milltronics, for a combined US$369 million.
In Asia markets slid a little, but slowed yesterday’s massive selloff. The nikkei closed down just 48 points to 19,142. The Hang Seng finished down 167 points to 16,929.