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.


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S. African Rand Set for 3rd Weekly Gain as Rate Outlook Spurs Carry Trades

(Bloomberg) -- South Africa's rand rose against the
dollar, heading for its third week of gains, as expectations of
higher interest rates spurred investor appetite for so-called
carry trades.

The rand advanced to the highest in almost two weeks,
supported by investors seeking out South Africa's 9.5 percent
interest rate in trades funded by borrowing the Japanese yen or
Swiss franc more cheaply. A report yesterday showing quicker-
than-expected manufacturing growth added to speculation the
Reserve Bank will raise borrowing costs further.


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Dollar Falls to Record Against Euro on Housing Slowdown, Subprime Concern

(Bloomberg) -- The dollar fell to a record against
the euro and declined versus the yen on speculation a slumping
housing market will slow the U.S. economy more than expected.

The U.S. currency also weakened against the Swiss franc,
British pound and Danish krone after Standard & Poor's warned it
may cut ratings on $12 billion of bonds backed by subprime
mortgages, diminishing the appeal of dollar-denominated assets.
Futures show traders expect the Federal Reserve to keep
borrowing rates steady through the end of the year.


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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.


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Franc Gains for Fourth Day Versus Euro on Bets Risk Aversion Will Continue

(Bloomberg) -- The Swiss franc gained for a fourth
day versus the euro, its longest winning run in more than a
month, on speculation investors will keep shifting out of riskier
assets as stocks markets decline.

Switzerland's currency, which investors often buy in times
of economic uncertainty, has benefited as concerns the housing
slump in the U.S. will hurt global growth caused investors to
sell equities. It has gained with Japan's yen, another currency
investors have used to fund so-called carry trades.


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Swiss Franc Drops Versus Dollar; Central Bank Raises Interest Rate to 2.5%

(Bloomberg) -- The Swiss franc erased gains versus
the euro and fell against the dollar after the central bank
raised its target interest rate by a quarter point.

The Zurich-based Swiss National Bank increased its three-
month Libor target rate by 25 basis points to 2.5 percent, the
highest since September 2001, matching the forecast of all 25
economists in a Bloomberg News survey.


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Franc Headed for Weekly Gain Versus Euro as SNB Signals Increase in Rates

(Bloomberg) -- The Swiss franc headed for a weekly
gain against the euro, snapping a four-week losing run, as
central bank policy makers indicated they may raise interest
rates to curb inflation.

The franc gained for a fifth day versus the euro after Swiss
National Bank President Jean-Pierre Roth and policy maker Thomas
Jordan said they're watching the impact of the franc's weakness
on inflation. The currency also rose before data that'll probably
show the country's leading economic indicators rose for a fourth
straight month in May.


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Swiss Franc Volatility Declines to an 11-Year Low, Boosts Carry Trades

(Bloomberg) -- Volatility on Swiss franc options has
fallen to the lowest in at least 11 years, increasing investors'
appetite for borrowing in the currency to finance purchases of
higher-yielding assets.

Narrower swings in the franc encourage investors to boost
so-called carry trades. This strategy involves borrowing in
countries such as Switzerland, where the benchmark interest rate
is 2.25 percent, to invest in economies including the U.S.,
where the key rate is 5.25 percent.


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Basilea shares up after filing antibiotic in U.S.

(Reuters) - The filing triggers a milestone payment of about 24 million Swiss francs from Johnson & Johnson, with which Basilea is developing Ceftobiprole.




Basilea shares were 2.6 percent higher at 279.00 francs by 0736 GMT.


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