Quick Overview

• Initial claims for state unemployment benefits dropped 20,000 to 321,000 in the latest week, the Labor Department said Thursday.
  

• The index of leading indicators show a definite loss of forward momentum by falling 0.2% in April after a downwardly revised 0.6% drop in March from 0.4% previously,
  

• Mexico leading economic indicator edged 0.3 percent higher in March.
  
  

• Taiwan's economy grew an unexpectedly weak 2.5 percent YoY.

• The U.S. Department of Energy said that natural gas supplies were up 90 billion cubic feet to 1.599 trillion cubic feet. Supplies are now up 16% from a year ago.
  

• This week's USDA Drought Monitor is showing relatively new occurrence of abnormally dry conditions in Michigan, Illinois, Oklahoma, and the Mississippi delta .
  

• Consumer prices in the Euro zone were up 2.1% in April from a year ago, the same as in March. Also, industrial production was down .2% in March.

• The International Monetary Fund's forecast of global economic growth this year is unchanged at 4.3 percent although the U.S. current account deficit is still weighing on the world economy.
  
  
  

• UK Retail sales jumped by 0.5% much better than the 0.0% expected.
  
  

• Japan's economy is recovering at a moderate pace, the government said on Thursday, keeping its assessment unchanged.
  
  

• The Philly Fed index fell to 7.3 from 25.3 in April, the lowest since June 2003. It was the largest one-month decline since January 2001.

• Brazil: Amazon destruction accelerating -
  26,000 sq km of forest were chopped down in the last 12 months .
  
  
  
  
  

• The Bush administration is imposing new limits on the amount of clothing that can be imported from China. Everybody is espousing free trade, but there shouldn't be double standards," Mr. Bo said to a meeting of international business leaders. "When you have an absolute advantage, you advocate free trade and make everyone open the door, but when developing countries begin to challenge you, you immediately set limits and shut the door
  

• Greenspan, told an Atlanta housing conference that Fannie Mae (FNM) and Freddie Mac (FRE) had gotten too big for their britches, "We are highly dependent on the risk managers at Fannie and Freddie to do everything right," he said.