RPT-US Midwest business grows more slowly in July

(Reuters) - The National Association of Purchasing Management-Chicago
business barometer fell to 53.4 from 60.2 in June. Economists
had forecast the index at 58.0. A reading above 50 indicates
expansion.




The employment component of the index jumped to 61.6 from
52.7 last month. Prices paid rose to 73.1 from 68.1 and new
orders dropped to 53.4 from 65.7.


Read more at Reuters.com Bonds News

Oil Rises After Government Report Shows U.S. Growth Exceeded Expectations

(Bloomberg) -- Crude oil rose after a government
report showed that the U.S. economy grew more than expected in
the second quarter, indicating fuel demand will rise in the
world's biggest energy consumer.

The economy grew 3.4 percent last quarter, the fastest pace
in more than a year. Economists surveyed by Bloomberg News before
the report predicted a 3.2 percent gain. The U.S. consumes 24
percent of global oil production.


Read more at Bloomberg Energy News

Crude Oil Rebounds After U.S. Reports Economy Growing Faster Than Forecast

(Bloomberg) -- Crude oil rose after the U.S.
government reported its economy expanded more than expected in the
second quarter, indicating demand for energy will keep rising.

The U.S. economy grew 3.4 percent last quarter, the fastest
pace in more than a year. Economists surveyed by Bloomberg News
before the report predicted a 3.2 percent gain.


Read more at Bloomberg Commodities News

Mexico's Calderon to adjust tax reform proposal

(Reuters) - The proposal Calderon unveiled in June would raise Mexico's
paltry tax take by about 3 percent of gross domestic product,
largely through a minimum income tax on companies.




Economists have long warned Mexico is heading for financial
disaster unless it increases tax revenues to offset a forecast
drop in crude oil output, which currently funds about one third
of the federal budget.


Read more at Reuters.com Bonds News

US July homebuilder sentiment at 16-year low -NAHB

(Reuters) - "The bottom line is that the single-family housing market
is still in a correction process following the historic and
unsustainable highs of the 2003-2005 period," NAHB Chief
Economist David Seiders said in the statement.




Read more at Reuters.com Economic News

UPDATE 1-N.Y. Fed manufacturing index climbs in July

(Reuters) - The New York Fed's "Empire State" general business
conditions index rose for the fourth consecutive month to 26.46
in July, the highest since June 2006, from 25.75 in June.




Economists polled by Reuters had expected a June reading of
18.00.


Read more at Reuters.com Bonds News

European Government Bonds Post Weekly Gain as Reports Show Slowing Economy

(Bloomberg) -- European government bonds rallied
this week after a report showed business confidence in Germany,
the region's largest economy, fell more than expected in June.

Benchmark two-year notes posted a weekly gain after the Ifo
institute yesterday said its German sentiment index fell to 107
from 108.6 in May. Economists had expected a reading of 108.4.
Separate reports this week showed worsening optimism among German
investors and Italian consumers, damping the chances of interest-
rate increases by the European Central Bank.


Read more at Bloomberg Bonds News

May housing starts fall 2.1 percent

(Reuters) - Building permits, which signal future construction plans, rose in May by 3.0 percent to a pace of 1.501 million units. Economists had been expecting the permits to hit a 1.471 million unit rate. Permits for single-family homes fell 1.8 percent to their lowest level since July 1997 but permits for multi-family units jumped 16.5 percent.




Tuesday's data comes a day after a report indicating that home-builder confidence is at its lowest level in over 16 years.


Read more at Reuters.com Business News

Bonds slightly soft ahead of inflation data

(Reuters) - However, after benchmark yields rose to five-year highs in
recent sessions, some analysts now see the market as better
positioned for an environment where firm economic growth
translates into modest upward pressure on inflation and the
potential for Fed rate hikes.




Economists polled by Reuters predicted the annual inflation
rate minus food and energy prices would post a reading of 2.3
percent, the same as April.


Read more at Reuters.com Bonds News

India Production Grew More Than Expected in April; Puts Pressure on Rates

(Bloomberg) -- India's industrial production grew
more than expected in April, suggesting the central bank may
need to raise interest rates further to contain inflation stoked
by consumer demand.

Production at factories, utilities and mines gained 13.6
percent from a year earlier after a revised 14.5 percent in
March, the Central Statistical Organisation said in a statement
in New Delhi today. Economists expected an 11.3 percent rise.


Read more at Bloomberg Emerging Markets News

Blue Chip forecasts slowed consumer spending this year

(Reuters) - Economists surveyed in the closely watched Blue Chip
economic forecast downgraded their expectations for GDP growth
in 2007 on a year-over-year basis to 2.1 percent from their
forecast a month ago of 2.2 percent.




Slowed consumer spending, said the economists who were
surveyed last week, will be the main factor behind slower
growth, as well as continued troubles in the housing and
subprime mortgage markets.


Read more at Reuters.com Economic News

Copper Tumbles 3.5 Pecent on Speculation Slowing Economies May Damp Demand

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

Copper, which generally moves in tandem with economic
expansion, has gained 13 percent this year. 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

Hungarian Forint Gains After Central Bank Unexpectedly Keeps Rates on Hold

(Bloomberg) -- The Hungarian forint snapped a four-day
losing run after the central bank unexpectedly held interest rates
today at the highest in the European Union.

The forint had its biggest one-day gain in seven weeks today
as Hungary's rate-setting Monetary Council kept the two-week
deposit rate at 8 percent for a seventh month. Economists surveyed
by Bloomberg News had forecast a quarter-point cut. Hungary's high
benchmark makes the forint a favorite for carry trade investors,
who borrow in low interest rate currencies like the yen or Swiss
Franc to fund higher-yielding investments elsewhere.


Read more at Bloomberg Currencies News

Hungarian Forint Extends Gain After Central Bank Keeps Main Rate on Hold

(Bloomberg) -- The Hungarian forint extended its gains
against the euro after the central bank unexpectedly kept interest
rates unchanged at the highest in the European Union today.

The rate-setting Monetary Council kept the two-week deposit
rate at 8 percent for a seventh month. Economists surveyed by
Bloomberg News had forecast a quarter-point cut. The relatively
high interest rates in Hungary make the forint a favorite for
carry trade investors which involves borrowing in a low interest
rate currency like the yen or Swiss Franc and investing in higher-
yield assets elsewhere.


Read more at Bloomberg Currencies News

U.S. Economy to Slow This Year, Hurt by Housing, Business Economists Say

(Bloomberg) -- The U.S. economy will slow this year,
hurt by a protracted housing slump and a pullback in business
investment, according to a survey by the National Association
for Business Economics.

Economists cut estimates for growth this year to 2.2
percent, according to the median of 48 forecasts, from 2.7
percent in the group's February survey. Capital spending will
rise 3 percent, down from a 5.4 percent forecast in the prior
survey, according to the poll taken April 19 to May 8.


Read more at Bloomberg Bonds News