With the way the market's been getting cuffed around lately, it was only a matter of time before the word "correction" reared its ugly head.
The time may be now, as continuing uncertainty in the global equity markets and current fundamentals are pointing to a market correction, a Lehman Brothers official told a seminar in Dublin, Ireland Thursday.
Joseph Rooney, head of the brokerage's global equity strategy group, said that the fundamentals underpinning global stocks have been deteriorating over the past few years, even as the level of speculative interest in equities was reaching its peak.
Rooney said that the so-called "new economy" -- powered mainly by technology companies -- played itself out between 1992 and 1998, topping out in 1996 and early 1997.
Is Rooney smarter than your average bear? Time will tell.
- - -
Money to burn: Deutsche Telekom AG is in an acquisitive mood and says it could finance a takeover worth up to half its market capitalization, which has been above $200 billion this year.
CEO Ron Sommer, speaking to a shareholders' meeting in Cologne Thursday, said that a mega-merger is possible, although if the German telecom giant is eying a potential target, Sommer wasn't tipping his hand.
Deutsche Telekom is anxious to cement its position as a leading player in the rapidly consolidating telecom market, especially in the wake of last year's failed merger with Telecom Italia.
Telekom sought shareholder authorization Thursday for management to issue 1.5 billion new shares over the next five years to help finance acquisitions. At Telekom's current market price, those shares would be worth around 90 billion euros (US$83 billion).
- - -
Beam me up, Scotty: Priceline.com, the company that lets you name your own price for airline tickets and other travel services then tries to find it for you, has a new job for pitchman William Shatner.
Shatner, nee Capt. Kirk, will be touting Priceline's long-distance telephone service that the company claims will save customers up to 40 percent on most standard base rates for both U.S. and international calls.
The Name Your Own Price calling service promises no surcharges, hidden fees, membership costs, or minimum call times.
Like the other services, customers will come to priceline.com and set the price that they're willing to pay per-minute to make a call. If the price is accepted, the call is made using a regular telephone.
- - -
News from the north: Nokia introduced three new so-called "third generation" -- or 3G -- network products Thursday, the latest salvo in its battle for market share against its Swedish rival, Ericsson.
Third-generation networks will support higher data transmission rates while allowing mobile phones to use Internet, video, and other multimedia applications.
Two of the three products launched by the Finnish telecommunicatios equipment manufacturer will help existing hardware adapt to the 3G system, which requires the building of a new network.
- - -
Home is where the PC is: Gateway is teaming up with iXL Enterprises to sell personal computers, Internet access, financing and training services, and other PC-related products for corporate employees to use at home or in the office.
As part of the deal, Gateway, one of the largest PC makers in the United States, will take a $150 million equity stake in the Consumer Financial Network, of which iXL is the largest shareholder.
Analysts say the deal leaves the companies positioned to become active participants in the kind of computer-related benefits programs like the one announced recently by Ford Motor Company.
- - -
The wedding is off: The planned $689 million acquisition by online medical supplier Neoforma of Eclipsys Corp. has been called off by mutual agreement.
Instead, the companies have agreed to form a marketing and distribution arrangement between Neoforma and Healthvision, a subsidiary of Eclypsis.
- - -
Ripped off: Top software makers lost more revenue in the Middle East in 1999 than in 1998 as a result of piracy, according to an industry report issued Thursday.
The Business Software Alliance estimated that total Middle East losses for the industry increased by 78 percent in 1999, to $245 million.
Reuters contributed to this report.
