South African Rand Rises to 11-Month High Versus Dollar on Interest Rates

(Bloomberg) -- South Africa's rand strengthened to
its highest against the dollar in more than 11 months on
speculation the interest rate gap with the U.S. will widen.

The currency of Africa's biggest economy has advanced 3
percent in the past year as the Reserve Bank has raised rates
five times to 9.5 percent, compared with a key rate of 5.25
percent in the U.S. Economists expect a government report this
week will show inflation exceeded the central bank's target range
for a third month in June.


Read more at Bloomberg Currencies News

Mid-Atlantic factory activity slows

(Reuters) - In another report, a forward-looking indicator of economic activity suggested cooler growth in the second half of 2007, an economist for the Conference Board said.




In a survey, the Philadelphia Federal Reserve Bank said its business activity index was at 9.2 in July versus 18.0 in June. Economists polled by Reuters had forecast a reading of 13.3.


Read more at Reuters.com Business News

Switzerland's June Trade Surplus Widens as Decline in Franc Fuels Exports

(Bloomberg) -- Switzerland's trade surplus widened
in June as a decline in the Swiss franc fueled exports of
machines, watches and metals.

The surplus was 1.72 billion Swiss francs ($1.43 billion),
up from 1.04 billion francs in May, the Federal Customs Office in
Bern said today. Economists expected a surplus of 1.15 billion
francs, according to the median of five forecasts in a Bloomberg
survey. Exports rose 1.5 percent from May when adjusted for
inflation and seasonal swings, and imports fell 5.3 percent.


Read more at Bloomberg Currencies News

Swiss Franc Drops by Most in Two Weeks Versus Euro After Inflation Report

(Bloomberg) -- The Swiss franc fell by the most in
more than two weeks after a report showed Switzerland's inflation
quickened by less than economists expected in June, prompting
speculation so-called carry trades will persist.

The currency fell from near a three-week high after a report
showed consumer prices rose 0.6 percent in the year. Economists
in a Bloomberg survey had forecast a rise to 0.7 percent. The
data make it less likely the Swiss National Bank will raise its
main lending rate fast enough to close the gap with the European
Central Bank's, and improve the appeal of holding local assets.


Read more at Bloomberg Currencies News

Producer prices up on energy rise in May

(Reuters) - Separate data out on Thursday showed no change in the number of workers signing up for first-time jobless benefits last week, underscoring stability in the labor market.




Economists polled ahead of the data were expecting producer prices -- the prices paid by manufacturers and wholesalers -- to rise 0.6 percent and by 0.2 percent when energy and food were stripped out.


Read more at Reuters.com Business News

U.K. Pound Declines Against Dollar on Signs Economic Growth Is Slowing

(Bloomberg) -- The pound declined versus the dollar
and the euro as signs the U.K. economy may be slowing stoked
speculation the Bank of England won't need to keep raising
interest rates.

A government report today showed average earnings growth
slowed in April. Economists in a Bloomberg News survey predicted
they would quicken. The U.K. currency extended its decline before
a report tomorrow that is expected to show retail sales grew more
slowly last month.


Read more at Bloomberg Currencies News

Copper Tumbles Most in Two Weeks on Expectations of Rising Interest Rates

(Bloomberg) -- Copper futures in New York tumbled the
most in two weeks on expectations that rising borrowing costs in
major economies will slow economic growth and limit demand for
metals.

Copper, which generally moves in tandem with economic
growth, has gained 15 percent this year during a global
expansion. The U.S. Federal Reserve is unlikely to cut interest
rates before 2008, according to a Bloomberg survey. Economists
last month forecast a 25 basis-point cut in the fourth quarter.
The European Central Bank, the Reserve Bank of New Zealand and
South Africa's central bank raised interest rates this week.


Read more at Bloomberg Commodities News

Canada's Dollar Approaches 30-Year High on Outlook for Central Bank Rate

(Bloomberg) -- The Canadian dollar approached a 30-
year high against the U.S. currency as economists predicted
economic data this week will strengthen the case for an
interest-rate increase as soon as next month.

Canada's currency has advanced 9 percent against the U.S.
dollar this quarter as an accelerating economy pushed the
nation's two-year bond yield to a five-year high. Economists are
expecting gains in May employment and international trade when
Statistics Canada releases those numbers on June 8.


Read more at Bloomberg Currencies News

Worker productivity weaker than prior estimate

(Reuters) - The Labor Department reported on Wednesday that non-farm productivity, a measure of how much any given worker can produce in an hour, advanced at a 1.0 percent annualized pace in the quarter, driving up unit labor costs by 1.8 percent.




Economists were expecting the Labor Department report to show weaker productivity and higher labor costs after the government reported gross domestic product growth of just 0.6 percent during the first quarter.


Read more at Reuters.com Hot Stocks News

Sales at Retailers in Germany Increase by the Most in Four Months in April

(Bloomberg) -- Retail sales in Germany, Europe's
largest economy, rose the most in four months in April.

Sales, adjusted for inflation and seasonal swings, rose 2.6
percent from March, when they fell 0.3 percent, the Federal
Statistics Office in Wiesbaden said today. Economists forecast a
gain of 0.8 percent, the median of 31 estimates in a Bloomberg
News survey showed. From a year earlier, sales fell 0.6 percent.


Read more at Bloomberg Bonds News

German Unemployment Holds at Six-Year Low as Economic Growth Fuels Hiring

(Bloomberg) -- Germany's unemployment rate held at a
six-year low in May as growth in Europe's largest economy
encouraged companies to invest and hire.

The jobless rate, adjusted for seasonal swings, stayed at
9.2 percent for the third straight month, the Nuremberg-based
Federal Labor Agency said today. The adjusted number of people
out of work rose 3,000 to 3.86 million. Economists expected a
drop of 20,000, according to the median of 38 forecasts in a
Bloomberg News survey.


Read more at Bloomberg Bonds News

U.S. existing home sales fell 2.6 pct in April

(Reuters) - The inventory of homes for sale grew 10.4 percent to 4.2
million units, which represents an 8.4 months' supply at the
current sales pace.




Economists polled by Reuters were expecting home resales to
rise to a 6.14 million-unit pace from the 6.12 million-unit
rate initially reported for March. The March sales pace was
revised to 6.15 million.


Read more at Reuters.com Economic News