WSJ online mentions NN in the following:
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November 25, 1998
TORONTO -- The Canadian dollar ended substantially higher Wednesday, fuelled by rumors of an impending merger between a Canadian telecommunications firm and a leading international concern that encouraged a surge in corporate demand for Canadian dollars and some stop-loss selling of the U.S. dollar.
The U.S. dollar was trading at C$1.5385 at 4:06 p.m. EST (2106 GMT), from C$1.5490 at 8:00 a.m. EST (1300 GMT), and from C$1.5505 late Tuesday. It rose as high as C$1.5510 before falling in one large wave just after mid-day to its intra-day low at C$1.5372.
Traders said the U.S. unit's plunge began when a rumor swept the market that Siemens AG of Germany was about to make a cash offer for its Canadian alliance partner Newbridge Network Corp.
While the rumor remains unconfirmed, it did boost Canadian dollar demand from some local corporate accounts, traders said.
Some said a number of International Monetary Market players and U.S.-based accounts also used the move to pare their long U.S. dollar positions ahead of the U.S. Thanksgiving holiday, and what for all intents and purposes will be a long weekend prior to Quebec's November 30 election.
"We've had a lot of U.S. players who were sitting short Canada and long U.S. for the past few weeks," said a trader at a foreign bank in Montreal. "With the Quebec election just not stirring up any heat against the Canadian dollar, they weren't making any money on those positions, and used the move as an opportunity to get out."
The extent of the U.S. dollar's fall was magnified by thin liquidity just ahead of the U.S. holiday, traders said, and does not reflect a change in fundamentals for the Canadian currency.
Avery Shenfeld, senior economist at CIBC Wood Gundy Securities in Toronto, said Wednesday's move higher for the Canadian dollar should be viewed with caution, in the context of low market liquidity and a basically static environment for the currency in recent weeks.
"The move looks dramatic only because we've fallen asleep watching the Canadian dollar for the past two weeks, and now it's finally made some move in some direction," Shenfeld said. "We'll have to see if this sustains when we get back to full trading, which probably won't be until next Monday."
With the U.S. on holiday Thursday and with desks still expected to be thin on Friday, activity for the Canadian dollar is likewise seen limited until next week.
On Monday, markets will get an update on Canada's economic prospects going forward with the release of third quarter GDP and current account data, with Quebec also holding its provincial election on that day. . . .>>>>
November 25, 1998
Foreign Exchange
NEW YORK -- Currency markets traded thinly Wednesday, leaving the dollar confined to narrow ranges against its major counterparts.
The U.S. currency ended the global day virtually flat against the mark but slightly stronger against the yen. Late in New York, the dollar was at 121.75 yen, up from 121.05 yen late Tuesday in New York. It also was trading at 1.7035 marks, down from 1.704 marks late Tuesday. The British pound was trading at $1.6605, up from $1.6600 a day earlier.
Perhaps the only major market-moving news item of the day lay in a Financial Times news report suggesting Japan could face a 10-trillion-yen shortfall in taxes this year. The story caused a sell-off in the yen against the dollar and other currencies in London trading.
"I think this budget issue is potentially a very big problem for Japan," said Robert Sinche, currency strategist with Citibank in New York.
"Now you are talking about budget deficits that really could begin to balloon," Mr. Sinche said, who argued this would test the political will of Japanese policymakers to press ahead with the fiscal stimulus measures needed to boost the Japanese economy and the yen.
Traders said Wednesday's yen-selling began against European currencies -- initially with the Swiss franc. This put the dollar under enough pressure against the mark early on that it fell below the key 1.7000-mark level in London trading. But with the market clearly unwilling to put on aggressive mark positions ahead of a holiday in the U.S., the dollar bounced back in New York trading.
All banks, businesses and some financial markets closed early Wednesday, will remain shut for the Thanksgiving Day holiday Thursday in the U.S., and will again close early on Friday.
Meanwhile, the Canadian dollar enjoyed a sharp burst against its U.S. counterpart, though the gains were attributed by traders to technical factors. They said the U.S. currency's failure to move beyond 1.5500 Canadian dollars forced a short-covering rally in the Canadian currency, which triggered stop-loss selling of U.S. dollars along the way.
Late Wednesday in New York, the U.S. dollar was trading at C$1.5392, down from C$1.5502 Tuesday.
"Really, the liquidity isn't so good in the Canadian dollar," said Thomas Benfer, chief dealer at the Bank of Montreal in New York. "There were just a few orders, but you don't need a gigantic amount. Even $50 million tickets are enough to move the market."
Some traders said speculation Canadian telecommunications company Newbridge Networks was in merger talks with its alliance partner Siemens AG was one reason for the Canadian dollar's strength.
Others said the market has simply priced in expectations for Quebec's provincial election Monday and is now taking profits on long-U.S. dollar positions it had taken out on earlier concerns about the result.
Although the separatist-inclined Parti Quebecois is expected to win, analysts believe its leader Lucien Bouchard will have a hard time convincing the province's population to vote for secession.
Relative to other currencies, the Swiss franc had an active trading session, moving within a fairly wide range against the dollar.
Andrew Chaveriat, technical analyst with Paribas in New York, said the Swiss franc was initially bought up against the yen by Swiss speculative accounts, who he said "often tend to know things that general trend buyers don't."
Late in New York, the dollar was at 1.4083 Swiss francs, up from 1.4063 Swiss francs late Tuesday. The Swiss franc also ended in New York at 86.45 yen, up from 86.07 yen a day earlier.
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November 25, 1998
Exclusive Nature Of Newbridge's China Post Pact Questioned
By BEN DUMMETT
Dow Jones Newswires
TORONTO -- There are question about whether Newbridge Networks Corp. (NN), through its alliance with Germany's Siemens AG (G.SIE), is the exclusive vendor for the core backbone of China Post's national backbone asynchronous transfer mode, or ATM, network.
Earlier Wednesday, Newbridge, a network equipment supplier based in Kanata, Ont., announced it was "the exclusive vendor for China Post's national backbone" network for the transmission of voice data and Internet Protocol services. China Post is the state postal bureau of the People's Republic of China.
In a telephone interview, a Newbridge spokesman said China Post officials approved Newbridge's claim in its announcement that it was the exclusive vendor for the core backbone part of the network.
However, Newbridge competitor Ascend Communications Inc. (ASND), also announced a pact Wednesday to supply ATM switching backbone equipment for China's Post new network.
The China Post deal is a "multi-source contract; not only Ascend and Newbridge, but Lucent Technologies Inc. (LU) also has a piece of the pie," the Ascend spokeswoman said.
She declined to reveal the value of pact with China Post.
When asked about the exclusivity of Newbridge's contract, the spokeswoman replied: "I don't understand where that is coming from."
The spokeswoman also said it's her understanding that Newbridge, Ascend and Lucent each received a third of the contract.
No one was immediately available for comment at Lucent.
It's common among network operators to buy gear from more than one vendor to build a network, so as to avoid becoming too dependent on one supplier, the Ascend spokeswoman noted.
<<<<<
<<<[Recap]
=Institutions Furious At Emerson Bid For Astec (BSR) >U.ATB
=Sabratek Shares Open Down After Halt Of Rocap Product>SBTK
=Waste Sys Abandons Tech To Grow Through Acquisitions >WSII
=European Stks Up Midday; Nestle Down; DJ Stoxx +0.3% >N/WSR
=Nestle Shrs Slump On Profit Warning, Sales >I/FOD
=China State Devt Bk Expects '98 Net Pft Of CNY1.0B >R/CH
=Lanson Fincl Taps Expatriates With Stop-Loss Fund >N/FND
=Asian Companies Emerge As Regional M&A Fund Sources >PHI
=Taiwan Cuts 98 Econ Growth; Some Say Worse To Come >R/TW
=Self-Directed Brokerage Accounts May Bring Assets Online>CI
=Internet 401k Services Grow But Prices Remain Steady>AMTD
=Sony Selling 50% More PlayStation Players Than Yr-Ago>SNE
=Hoechst/Rhone-Poulenc Union Led By Need, Not Love >RP
=EMU 99: Markets Seek Out Political Indicators For Euro>R/EU
=Nintendo Poised To Sell 28% More Videogames In N.Amer>J.NTD
=Intuit CEO Notes Taxation Is Seasonal But Predictable >INTU
=CAPITAL VIEWS: Greenspan Plays The 'Good Cop' >N/POV
=Newbridge Networks' China Pact Confirms ATM Growth View>NN
=JDA Software Dn After DLJ, Others Cut 98, 99 Net Views>JDAS
=BondBiz: U.S. Treasury STRIPS >G/TRE
=Italy IPO Mkt Heats Up; Cremonini The Latest Big Deal>N/INI
=Pricey Web Stks Could Follow Amazon.com To Splitsville>AMZN
=Salomon's Acuff Sees Continued Market Strength In 1998>N/CTV
=Intuit Shares Down; Profit-Taking Cited >INTU
=S3 Inc. Stk Up As CNBC Guest Is Upbeat About New CEO>SIII
=UtiliCorp May Join Dash For UK Power Co Acquisitions >UCU
=Toronto Mkt Rally Not Surprising Despite Pft Decline>R/CN
=Books-A-Million Up On Launch Of Enhanced Web Site>BAMM
=Turkish No-Confidence Vote Seen Spurring Volatile Mkt>G/IGV
=France Tries To Put Best Face On Europe Aero Mergers >R/FR
=Stock-Trading Site Assumes Role Of Promoting Companies>I/SCR
=With AOL Deal, Sun Micro Can Live Up To Its Image >SUNW
=NY Stks Outlook: Small-Cap Interest Is Fading, For Now>R/US
=Network Event Theater Up; Internet Plans Cited >NETS
=Marks & Spencer To Name Greenbury Successor Thursday >U.MAR
=Penn State Plans 24-Campus Test For Year 2000 Glitch>R/US
=Banyan Systems Down; Co, Analysts Suggest Profit-Taking>BNYN
=Stock Futures Rpt: S&Ps Stay Close To Overnight Range>R/US
=Study Finds 1998 Was Tough Year For Chemical Industry>DD
=J&J Shrs Off; Co. Said To Be Guiding '99 View Lower >JNJ
=Despite Ad Budget, Pimco Funds Net A Flood Of Cash >N/FND
=Brass Eagle Backs 4Q Net View 31c A Shr Vs Yr-Ago 25c >XTRM
=CEOs:Ocean Energy-Seagull Deal To Add Fincl Flexibility>OEI
=Caisse De Depot Stance On Loblaw Bid Troubles Provigo >T.L
=Network Assoc Stk Up After CS First Boston Rates Buy >NETA
=With Bankers Trust, Deutsche Has Work To Do In The US >BT
=A.G. Edwards Strategist:Corporate Earns To Grow 7-8% In '99
=Prudential Jones: Oil Won't Hit $18/Barrel For While>N/CTV
=Continental Tire Plant, Union Schedule Mediated Talks>G.CGU
=Options Report: Mobil's Calls Rally On Takeover Talk>N/DJS
=Pharmaprint Eyes Herbal Drug Mkt With Dosage Guarantee>N/CTV
=Itsy Bitsy CEO: Matter Of Time Before Strategic Move >HDL
=Teligent Hldr Cuts Stake; Has 'Confidence' In Co. >TGNT
=Retailers Of C3's Fake Diamonds Dream Of Green >CTHR
=Merrill VP: Oil May Fall To $8 If OPEC Can't Agree>N/CTV
=FOCUS ON FILINGS: Global Motorsport's Merger Math >CSTM
=Promis Systems To Recommend Hldrs Accept PRI Auto Bid>N/TNM
=Coffee Prices Up As Robusta Production Lags - Analyst>N/CTV
=Market Sees Seagull-Ocean Deal Diluting Cos.' Strengths>OEI
=Exclusivity Of Newbridge's China Post Pact Questioned >NN
=Small-Cap, Nasdaq Stks Rise; Techs, Net Cos. Rally>N/NYS
=NY Stks End Higher, But Gains Modest Ahead Of Holiday>N/NYS
>>>>
<<<
November 25, 1998 <Picture>
Blue Chips Post Small Gains
In Pre-Thanksgiving Trade
By ROBERT O'BRIEN
Dow Jones Newswires
NEW YORK -- Equity investors left Wall Street little changed in Wednesday's session, ahead of Thursday's Thanksgiving festivities, when markets will be closed.
Among blue chips, a little profit-taking took place, as shares of Johnson & Johnson, which had run to a 52-week high Monday just as major market averages reached their zenith, lost ground Wednesday, falling 2 7/16 to 82 13/16, after Donaldson Lufkin & Jenrette stripped the stock of its highest recommendation. Shares of Procter & Gamble, which have been inching close to their best levels of the year, also lost ground, slipping 1 1/2 to 90 7/16.
Many other big drug stocks, however, didn't stop with their recent ascent. Shares of Eli Lilly rose 1 3/8 to 90 3/4, while Schering-Plough moved up 1 1/2 to 107 15/16.
The Dow Jones Industrial Average spent most of the session in negative territory, though the losses were mild, then mounted a comeback in the closing minutes of trading, ending 13.13 points higher, ahead 0.14%, to 9314.28.
On the New York Stock Exchange, advancers edged decliners 1,563 to 1,415. Volume on the Big Board totaled 582.2 million shares, compared with 763.8 million Tuesday.
The New York Stock Exchange Composite Index gained 1.35 to 581.04. The average price per share rose 11 cents.
The market's tentativeness also was affected by some uncertainty about the short-term direction stocks will take, analysts said. However, on a fundamental basis, the backdrop is solid, and investors would be cautioned against expecting any substantial pullbacks.
Bank stocks made a little progress in the session. Shares of J.P. Morgan advanced 1 1/2 to 112 3/4, while Citigroup rose 1 3/4 to 52 3/8, and BankAmerica gained 1 1/4 to 66 1/16.
The Standard & Poor's 500 Stock Index moved up 3.88, or 0.32%, to close at 1186.87, just off the high set Monday. The Nasdaq Composite Index gained 19.33, or 0.98%, to close at 1985.21.
Shares of Mobil shot up 3 7/16 to 78 3/8, as speculation of a possible takeover swirled around the company.
But crude oil prices fell again, and other oil stocks were mixed, with most little changed. Shares of Amoco fell 11/16 to 59, and Texaco slipped 3/8 to 57 3/8. However, Chevron shares gained 3/4 to 80 3/8.
Brokerage stocks, several of which had improved sharply in recent sessions, gave up ground Wednesday. Shares of Lehman Brothers fell 2 5/8 to 48 13/16, Morgan Stanley Dean Witter gave up 7/8 to 71 1/2, and PaineWebber slipped 3/4 to 42 3/4.
Retailers were mostly higher after government data showing that personal income and consumer spending both increased in October. Shares of J.C. Penney advanced 1 to 53 1/2, Wal-Mart Stores climbed 1 to 75 3/4, and reached a 52-week high, Gap shot up 3 3/8 to 75, also a 52-week high, and Lowe's rose 2 1/8 to 43 1/8.
Among some weaker retailers, shares of Sears Roebuck lost more ground, falling 1 7/16 to 47, while Kmart inched down 1/16 to 14 5/8.
BellSouth continued its strong showing, with shares gaining 2 1/4 to 88 5/8, and reaching a 52-week high. Earlier this week, the Atlanta telecommunications concern announced plans for a stock split.
Technology stocks were among the stronger performers, and shares of Advanced Micro Devices shot ahead 3 1/2 to 29 1/8, after Merrill Lynch raised its rating on the stock of the Sunnyvale, Calif., integrated circuits maker.
Other chip makers were strong, as well. Texas Instruments gained 1 5/16 to 78 7/8, while Micron Technology added 15/16 to 44 13/16.
Network Associates shot up 4 to 49 on Nasdaq. Credit Suisse First Boston started coverage of the Santa Clara, Calif., network securities software developer with a buy rating.
C-Cube Microsystems added 2 9/16 to 26 1/16 on Nasdaq. First Boston also started coverage of the Milpitas, Calif., developer of digital video compression chips and software.
Newbridge Networks moved up 4 3/8 to 29 1/2. The Canadian developer of computer network products posted fiscal second-quarter results late Tuesday that showed improvement over year-earlier figures, and analysts at Merrill Lynch raised the firm's rating on the stock.
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November 25, 1998 <Picture>
Canadian Stocks
Banks, Oil Pressure Market
TORONTO -- The stock market's key index moved lower Wednesday under continuing pressure from the banking and oil sectors.
The Toronto Stock Exchange's 300 composite index fell 43.47 points, or 0.66%, to 6526.80.
Decliners outnumbered advances 605 to 404, and trading volume was 111.3 million shares, down from Tuesday's total of 132.5 million shares. Trading value fell to 1.77 billion Canadian dollars from C$2.52 billion.
Toronto didn't do as well as New York, where the Dow Jones Industrial Average edged up 13.13 points, or 0.14%, to 9314.28 ahead of the U.S. Thanksgiving holiday. The broader Standard & Poor's 500-stock index also finished higher, gaining 3.88 points, or 0.33%, to 1186.87.
Toronto's oil and gas group fell for a fourth day, dropping 2.55% Wednesday for a total decline of 6.6%. Oil futures fell after news that Venezuela won't accept an extension of OPEC's current output-reduction agreement.
In Toronto's oil and gas group, Alberta Energy gave up C$1.95 to C$34.25.
The influential banking group also weighed on the market for a second day, falling 1.40% as Royal Bank of Canada slid C$1.10 to C$77.25.
Overall eight of the TSE's 14 stock groups fell, though the industrial products sector climbed 0.60%. Newbridge Networks supported the sector's rise, surging C$6.55 to C$45.30. The company announced its second-quarter results late Tuesday. It announced Wednesday that China Post, the state postal bureau of China, has selected the Siemens/Newbridge platform to build the core national backbone asynchronous transfer mode network. In a conference call with analysts, president and chief executive Alan Lutz declined to comment on rumors that Newbridge has won a major contract from the European-based Global One partnership. Lutz said an announcement about a major pact could be made before Dec. 3.
Intuit fell 1 3/8 to 58 1/2 on Nasdaq. The financial software developer posted fiscal first-quarter results that showed losses were slightly more modest than analysts were anticipating, but market watchers said investors were taking profits after a big run recently.
Hilton Hotels gained 5/8 to 21 15/16. Shareholders of the Beverly Hills, Calif., gaming and lodging concern approved the company's plans to spin off its gambling operations Tuesday.
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Incidentally, I don't believe the NN/Siemens rumor.
Enjoy Turkey Day!
Pat |
