Toronto stocks are weaker, this morning, after a flare up of Enronitis. The U.S. Securities & Exchange Commission has asked Telecom firm Qwest Communications International Inc. for more details about its books – re-igniting fears over shoddy accounting.

On the economic front, Canadian industrial capacity utilization came in at 80.3% in the fourth quarter. That’s the lowest rate since the fourth quarter of 1995, when it was 80.2%. The 1.2 point drop from the third quarter marked the sixth consecutive quarterly decline.

The new-housing price index rose 0.3% in January from December. Compared with January 2001, the index of contractors’ selling prices increased 2.9%.

Oil prices are up today on news that Iraq intends to block United Nations weapons inspectors, raising fears of an extended Middle East conflict involving the U.S.

In Europe, stocks are down, led mainly by profit takers. The FTSE is down four points to 5281. The CAC 40 has dropped 43 points to 4585. And the DAX is off 48 points to 5311. The DAX is being hit by news that Deutsche Telekom AG may sell US$7 billion in bonds to pay down its other debts.

Overnight in Asia, however, stocks managed to make some gains. The Nikkei added 34 points to 11919. The Hang Seng gained 86 points to 11319.

There’s lots of M&A talk this morning. Troubled accounting firm Arthur Andersen LLP is said to be in sell-out talks with Deloitte & Touche LLP. Also, Intersil Corp. is buying Elantec Semiconductor Inc. for US$1.4 billion in stock and cash.

In other news, Bombardier Transportation has confirmed an order with Govia of the UK for 460 Electrostar electric cars valued at approximately $1.49 billion.