Quick Overview

• The USDA's good to excellent rating for:
  Corn was 50%, down from 51% last week.
  Soybeans were 52%, up from 51% last week.
  Cotton was 63%, down from 64% last week.
  

• YoY Industrial production in Argentina rose a weaker-than-expected 6.7 percent in July.
  

• The Chicago Board of Trade and the Singapore Exchange said on Monday the two markets are looking into opening a derivatives exchange in Singapore to trade Asian-based commodities.
  

• Canadian Retail sales were C$30.8 billion in June, up 1.1% on the month and up 6.8% YoY.
  

• The USDA said there were 50.2 million pounds of frozen bellies in storage, up 115% YoY. Frozen pork inventories totaled 446 million pounds, up 21% YoY.
  

• The USDA said there were 1.50 billion pounds of frozen orange juice in U.S. cold storage on July 31st, down 23% YoY.
  
  

Global: A Global Inventory Pop?
The data are fairly conclusive in suggesting that an inventory correction has just occurred in the three largest economies of the world -- the US, Japan, and Europe

Break on Foreign-Profit Tax Means Billions to U.S. Firms

Prompted by a one-time tax holiday on profits earned abroad, pharmaceutical giant Eli Lilly and Co. announced early this year that it would bring home $8 billion to boost research and development spending, capital investments and other job-creating ventures

Quick Overview

• The U.S. Strategic Petroleum Reserve, the nation’s emergency stockpile of crude oil, has been filled to the 700 million-barrel level ordered by President George W. Bush after the Sept. 11 terrorist attacks, Bloomberg reported.

• Chinese gasoline traders and manufacturers urged the government to ease price controls blamed for shortages in Shanghai Bloomberg reported.

• The euro zone posted a trade surplus of 6.5 bln Eur in June compared with a revised surplus of 2.7 bln in May and a year-earlier surplus of 8.3 bln, EU statistics agency Eurostat said.

• Oil climbed more than 3 percent on Friday because of rocket attacks in the Middle East and a fire at a massive refining complex in Venezuela.
  

• Ecuador's government warned on Friday that troops could open fire to quell protests that have crippled oil output and forced the country to ask Venezuela for a loan of crude oil so it can keep up exports.

• MBIA Inc. , one of the world's largest bond insurers, said on Friday the U.S. Securities and Exchange Commission may recommend civil action against the company over defaulted bonds issued by a unit of a Pennsylvania health group

• A Texas jury found pharmaceutical giant Merck & Co. liable Friday for the death of a man who took the once-popular painkiller Vioxx, awarding his widow $253.4 million in damages in the first of thousands of pending lawsuits
  
  

• After the close, the USDA said there were 10.092 million head of cattle on feed on August 1st, up 2.3% YoY - fewer than expected. July placements were down 2.4% and marketing’s were down 0.4% YoY.
  
  

• The Florida Citrus Processors said there were 125.3 million gallons of frozen orange juice concentrate in inventory on August 13th, down 31% Y oY.
  
  

• France's GDP increased 0.1% in the second quarter.

Quick Overview

• U.S. jobless claims rose 6,000 last week to 316,000.
  

• The Conference Board's index of U.S. leading indicators rose 0.1% in July to 138.3.
  

• The Philadelphia Federal Reserve's regional index of business activity improved from 9.6 to 17.5 in July.
  

• Assets of the nation's retail money market mutual funds rose by $5.58 billion in the latest week to $814.10 billion, the Investment Company Institute said Thursday.
  
  

• The U.S. DoE said that underground supplies of natural gas were up 52 billion cubic feet to 2.515 trillion cubic feet.
  

• In the new 2005-2006 season, U.S. cotton exports are up 46% YoY
  

• Argentina's jobless rate fell by nearly a full percentage point in the second quarter as new jobs were created due to a pickup in the economy, the economy ministry said on Thursday,
  

• U.K. retail sales were down 0.3% in July.
  

• YoY consumer prices in the Euro zone were up 2.2% in July
  

• YoY Taiwan's GDP was up 3% in the second quarter.
  

• Mexico cut its forecast for 2005 economic growth to 3.5 percent after sluggish U.S. demand for car exports unexpectedly slowed expansion in the second quarter, a senior presidential advisor said on Thursday.
  
  

• Peru is officially raising its 2005 growth goal to 5.5 percent and fully expects to beat that, new Economy Minister Fernando Zavala said on Thursday.

Quick Overview

• U.S. producer prices rose 1.0% in July, more than expected, due to by higher energy prices. The core rate increased 0.4% in July.
  

• Jobless claims in the U.K. increased 2,800 to 866,000 in July, the most in over a year.
  

• Canada's wholesale sales were up 0.5% in June to C$39.9 billion.
  

• The U.S. Department of Energy said that:
  Crude supplies were up 300,000 barrels last week to 321.1 million barrels.
  Unleaded gasoline dropped 5.0 million barrels.
  Heating oil supplies were up 300,000 barrels.
  
• OPEC said that they pumped 30.2 million barrels of oil per day in July, up from 30.0 million in June.

Quick Overview

• U.S. consumer prices were up 0.5% in July with the core rate up 0.1%. YoY consumer prices were up 3.2%.
  

• U.S. industrial production was up 0.1% in July, less than expected.
  
  

• U.S. housing starts were at a yearly rate of 2.042 million units in July, down slightly from June's pace. YoY housing starts are up 5%.
  

• Wal-Mart Stores Inc. struggled in the second quarter and muted its earnings outlook on Tuesday, again blaming higher gasoline prices for cutting into spending plans by its low-income shoppers.
  
  

• Port of Long Beach: Junes Asian imports at the second-largest port in the U.S. pushed overall volume to 576,604 TEUs from 494,098 TEUs a year earlier, according to the port's preliminary data.
  
  

• YoY Argentina's economy grew 8.6 percent in June, the economy ministry said on Tuesday, beating analysts' forecasts.
  

• YoY Consumer prices in the U.K. were up 2.3% in July, more than expected and the largest monthly gain in eight years.
  

Quick Overview

• The New York Federal Reserve's index of manufacturing is down from 23.9 to 23.0 in August.
  

• The U.S. Congressional Budget Office said that the federal budget deficit would be $331 billion this year and $314 billion in 2005-2006.
  
  
  

• The average price of U.S. retail diesel exploded last week, rising 16 cents a gallon in the largest single-week increase ever recorded, according to the Department of Energy. The surge left prices at $2.567 a gallon, setting a new record for the second time in the past month.
  
  
  

• The Green Coffee Association said that U.S. coffee stocks were up 118,087 bags at the end of July at 6.06 million bags.
  

• The USDA said that its good to excellent crop rating for:
  Corn was 51%, down from 52% a week ago.
  Soybeans were 51%, the same as a week ago.
  Spring wheat was 64%, down from 67% a week ago.
  Cotton was 64%, up from 61% a week ago.
  

Quick Overview

• The Commerce Department reported Friday that the June deficit jumped 6.1 percent to $55.8 billion, compared to a May deficit of $55.4 billion. US exports were steady in June at $106.8 billion while imports were up 2% at $165.6 billion, blamed on higher energy prices. Oil prices moved to record highs above $67 a barrel on Friday as investors worried over the world's stressed capacity to refine crude oil.
  

• The University of Michigan's consumer sentiment index fell from 96.5 to 92.7 in August, lower than expected.
  

• Investment bank Morgan Stanley said on Friday it got rid of 1,000 underperforming brokers from its ailing retail brokerage unit but remains committed to keeping -- not selling -- this business.
  
  

• The USDA's 2005-2006 U.S. ending stocks estimate for:
  Corn is reduced from 2.24 to 1.90 billion bushels.
  Soybeans were reduced from 210 to 180 million bushels.
  Wheat is reduced from 700 to 634 million bushels.
  Sugar is reduced from 904,000 to 785,000 tons.
  Cotton is increased from 6.70 to 7.00 million bales.
  
  The USDA's 2005-2006 world ending stocks estimate for:
  Corn is reduced from 114 to 108 million tons.
  Soybeans were reduced from 51 to 48 million tons.
  Wheat is reduced from 143 to 141 million tons.
  Cotton is increased from 49 to 50 million tons.
  
  

• Mexico's central bank held monetary policy steady on Friday although signs that inflation is under control and new concerns over economic growth could move it to push interest rates lower in coming weeks.
  

• The Brazilian government increased its estimate of the 2005-2006 coffee crop from 32.4 to 33.3 million (60 kg) bags.
  

• YoY Retail sales in China were up 12.7% in July
  

• Canada's exports were up 1.8% in June to C$37.2 billion while imports were up .2% at $32.3 billion.
  

• France's GDP was up 0.1% in the second quarter and up 1.2% from a year ago.
  

• Japan's real GDP was up 0.3% in the second quarter and 1.4% YoY. GDP growth in the first quarter was revised higher, from an annual rate of 4.9% to 5.4%.

Quick Overview

• U.S. Retail sales were up 1.8% in July. Excluding autos, retail sales were up just 0.3%.
  

• U.S. Jobless claims declined 6,000 to 308,000 last week .
  

• The U.S. Commerce Department said that business sales rose 0.7% in June, inventories are unchanged.
  

• GDP in the Euro zone increased 0.3% in the second quarter and 1.2% YoY.
  

• Australia's unemployment rate was 5.0% in July, the lowest in 29 years.
  

• The gold miners' strike in South Africa ended after the National Union of Mineworkers recommended that workers accept a pay raise of 6.5%. Still, December gold rose $8.90 at $450.90, the highest close in over four months.
  

• The U.S. Department of Energy said that underground supplies of natural gas were up 43 billion cubic feet at 2.463 trillion cubic feet.
  

• Italy's GDP rose 0.7% in the second quarter, the largest gain in four years.

Quick Overview

• China announced the main parts of its new currency basket are the U.S. dollar, the Euro, the yen, and the Korean won.
  
  

• Oil prices rocketed to a record high of $65 a barrel Wednesday, powered by refinery outages and falling gasoline inventories
• The DOE said that: Crude oil supplies were up 2.8 million barrels last week.
  Supplies of unleaded gasoline were down 2.1 million barrels
  Supplies of heating oil s were up 4.3 million barrels.
  The DOE reported 95.0% refinery use.
  
  
  

• The International Coffee Organization increased its estimate of 2005-2006 world coffee production from 105 to 106 million bags. They increased the estimate of the 2004-2005 world coffee crop from 110.5 to 113.1 million bags because of larger than expected production in Vietnam.
  

• The Bank of England said that they expect GDP growth to surpass 3.0% in 2007. They also see inflation rising in the next few months, making more cuts in the interest rate less likely.
  

• Tokyo's Nikkei share average rose 2 percent to a fresh 15-month intraday high on Wednesday amid growing optimism about the Japanese economy. The Conference Board's index of leading indicators for Japan increased 0.5% in June to 98.6. Machinery orders were up 11.1% in June to the highest level in five years.
  

Quick Overview

• U.S. Workers’ productivity grew at a 2.2% annual rate in the second quarter, the Labor Department reported Tuesday.
  
  

• Inventories at U.S. wholesalers rose 0.7% in June, the Commerce Department said Tuesday. It was the 17th straight rise in stockpiles.
  
  

• The Federal Reserve increased the federal funds rate from 3.25% to 3.50%. The Fed sees 3.50% as still accommodative and they will continue to increase rates at a pace that is "measured."
  

• Fannie Mae said Tuesday that it likely will not complete the reworking of its accounting, ordered by federal regulators, before the second half of next year.
  

• Brazil's currency on Tuesday closed below 2.300 per dollar for the first time in over three years while stocks climbed to a five-month high.
  

• Reuters news reported that second quarter earnings for the S&P 500 companies are up 14% from a year ago, better than expected. So far, 86% of the companies have turned in their second quarter results and 78% of them have been better than expected.
  

• Canada's housing starts were at an annual rate of 242,300 units in July, up 0.4%.
  

Quick Overview

• For the first national stoppage in 18 years some 100,000 South African gold miners are on strike, for the second day, and vowing to stay away from the mines until a deal is reached.
  

• Today’s USDA's good to excellent rating for:
  Corn was 52%, down from 53% a week ago.
  Soybeans were 51%, down from 54% a week ago.
  Spring wheat was 67%, down from 68% a week ago.
  Cotton was 61%, the same as a week ago.
  

• The average price of U.S. retail diesel rose 5.9 cents to $2.407 a gallon, just 0.1 cent behind the all-time record set July 11, and gasoline prices surged to a record high, the Department of Energy reported Monday.
  

Website of the Day
She is holding her head high --
as well she should!

Judith Miller Pardoned; Receives Highest Presidential Honor
The President also announced that Miller will receive the Presidential Medal of Freedom. "Judy's been a great friend to this Administration and we remember our friends," the President said. "While the rest of the liberal media was busy questioning the existence of WMDs in Iraq, Judy reported the truth as we know it. She deserves special consideration."

Quick Overview

• Employers added 207,000 workers to payrolls in July and the unemployment rate remained at 5%, the Labor Department said Friday.
  
  

• Overall rail freight traffic rose 1.3% for the week ended July 30 compared with the same week last year, and intermodal volume continued to increase at a greater rate, the Association of American Railroads said.
  
  

• Industrial production in Germany improved 1.4% in June, stronger than expected.
  

• Japan said that its index of leading indicators increased from 36.4 to 60.0 in June.
  

• Canada's unemployment rate increased from 6.7% to 6.8% in July while the number of jobs improved by 5,900.

• Brazil's industrial output rose 1.6 percent in June from the previous month.
  
  

• An indicator of Chile's economic activity jumped 6.4 percent in June compared with a year earlier.

Leading indicators of world economic activity Corporate executives have turned more optimistic across the board. Consumer confidence in the United States remains high, private consumption growth in
Japan continues to grow and there are some sparks in retail activity in the
euro zone.

In Congress, the GOP Embraces Its Spending Side
"If you look at fiscal conservatism these days, it's in a sorry state," said Rep. Jeff Flake (R-Ariz.), one of only eight House members to vote against the $286.5 billion transportation bill that was passed the day before the recess. "Republicans don't even pretend anymore."

Quick Overview

• The number of U.S. workers filing for initial unemployment benefits fell by 1,000 to 312,000 for the week ended July 30, the Labor Department reported Thursday.
  
  

• OPEC produced 30.2 million barrels of oil per day in July, the most since 1979 Reuters said.
  
  

• With oil at record prices, U.S. refiners are upgrading their facilities but are not adding more capacity, and the upgrades will not necessarily lead to retail fuel price reductions, the Wall Street Journal reported Thursday.
  
  
  

• The Bank of England reduced its interest rate from 4.75% to 4.50%,
  

• German factory orders were up 2.4% in June, stronger than expected.
  

• The European Central Bank kept its interest rate unchanged at 2.0%.

• Singapore and South Korea have signed a free trade agreement, Seoul's first with an Asian neighbor.
  

U.S. drought conditions worsen
“There records go back to the 1870’s, and this is the third-driest year on record in the Quad Cities,” says Hayes, highlighting some of the worst regions, in eastern Iowa and western Illinois.

On Thursday morning, Hayes will release the latest issue of the National Drought Monitor, a survey of the conditions around the entire U.S. He says the data shows that all of America’s corn and soybean regions are now in trouble.

Quick Overview

• The US Treasury said early Wednesday that it will bring back the 30-year bond with an auction in the first quarter of 2006, with auctions held twice a year. The Treasury didn't say exactly how much in 30-year bonds it plans to sell next year, although it estimated the size per year will be about $20 to $30 billion.
  
  

• The U.S. services sector fell in July, the Institute for Supply Management reported Wednesday
  
  

• The DoE reported that U.S. stocks of crude oil rose by an unexpected 200,000 barrels last week to 318 million barrels as imports soared to nearly 11 million barrels a day. Supplies of unleaded gasoline dropped 4.0 million barrels and heating oil supplies dropped 1.1 million barrels.
  

• Brazil has made itself into a "shining example" of strong economic performance that stands in sharp contrast to Europe and Japan, U.S. Treasury Secretary John Snow said on Tuesday.
  

• An index of services in the U.K. increased from 55.8 to 56.3,
  

• An index of services in the Euro zone increased from 53.1 to 53.5 in July.

• China expects consumer inflation to run at under 2.5 percent this year, state media reported Thursday, citing a government policy making body.
  

Quick Overview

• The number of orders placed with U.S. factories rose 1% to $400.5 billion in June, the Commerce Department reported Tuesday.
  
  

• Personal spending jumped in June by 0.8% as consumers bought more automobiles.
  

• U.S. personal incomes in June were up 0.5%, better than expected.
  
  

• The fatality rate on the nation’s highways in 2004 was the lowest since record-keeping began 30 years ago, and while passenger vehicle deaths dropped, fatalities from large truck crashes increased slightly, the National Highway Traffic Safety Administration said Monday.
  
  

• June's unemployment rate remained at 8.7% in the Euro zone and at 8.8% in the EU-25.
  

• Retail sales in Australia were up 1.3% in June, stronger than expected – the biggest increase in two years.
  

Quick Overview

• Mexico's economy picked up speed in the second quarter and grew about 4 percent over the same period last year, helped by strong consumer spending and export growth
  
  
  

• Crude oil prices soared to a record $62.20 a barrel Monday following reports of U.S. refinery capacity concerns and the death of Saudi Arabia's King Fahd, news services reported
  
  

• The Institute for Supply Management reported Monday that its manufacturing index for July rose to 56.6, the highest level this year.
  
  

• U.S. construction spending was at an annual rate of $1.093 trillion in June, down 0.3% from May.
  

• An index of manufacturing in the U.K. slipped from 49.6 to 49.2 in July.
  

• An index of manufacturing in the Euro zone improved from 49.9 to 50.8 in July, the highest in five months.
  

• Land prices in Tokyo rose in 2004 for the first time in 13 years, reflecting an economic recovery, while land prices nationally fell for the 13th straight year but at a slower pace, government data showed on Monday.
  

• The USDA's good to excellent crop rating for:
  Corn was 53%, the same as last week.
  Soybeans were 54%, the same as last week.
  Spring wheat was 68%, down from 70% last week.
  Cotton was 61%, the same as last week.
  

• Ocean freight continued weak, taking gulf to Japan back to $34 a ton, which is the lowest rate in almost 30 months.
  
  

• Japan will slap 15% levies on US steel imports from September 1 in retaliation for American steel industry protection measures, Reuters reports

Drought Update

Economies of India and China will become larger than US: Expert
..The US is moving towards a service economy and away from manufacturing, leaving the country in a situation where it will not be able to produce its way out of debt," he said...
We have to pay interest or dividends or, in some way, ultimately give them a return on the assets they have bought. That means a claim on future American income and thus lower standards of living for our grandchildren. The second problem is that our financing requirements now soak up about 80 per cent of available world savings. Once we hit 100 per cent, there is no place to go," Prestowitz said

Quick Overview

• The U.S. economy grew at a 3.4 percent annual pace from April through June, the ninth straight quarter exceeding 3 percent.
  
  

• China's National Grain and Oil Information Center issued an estimate for this years Chinese Corn production at 128 mmt. versus 132 mmt. last year.
  
  

• A 25% slump in house prices would wipe out $4.5 trillion of household wealth but wouldn't be as damaging as the Internet bust, according to Janet Yellen, president of the San Francisco Federal Reserve Bank.
  

• The University of Michigan's consumer sentiment index increased from 96.0 to 96.5 in July
  

• Canada's GDP was up 0.3% in May and up 2.8YoY.
  

• France's unemployment rate fell from 10.2% to 10.1% in June, the first improvement in six months.
  

• The unemployment rate in Japan dropped from 4.4% to 4.2% in June, the lowest in seven years. Consumer prices in June were down 0.5% YoY. Industrial production was up 1.5% in June. Household spending was down 1.4% in June.
  

Japanese develop 'female' android She can flutter her eyelids and move her hands like a human. She even appears to breathe.

General Is Said To Have Urged Use of Dogs
"It was a technique I had personally discussed with General Miller, when he was here" visiting the prison, testified Pappas,

US faces fresh challenge on farm subsidies
The US is the world’s third largest rice exporter. With costs higher than many of its big competitors, its rice sector is one of the largest recipients of US farm subsidies, receiving about $1.5bn (€1.2bn, £871m) a year. Some of the payments to farmers are similar to those ruled illegal in the WTO cotton case.

Quick Overview

• The House of Representatives approved the controversial Central American Free Trade Agreement early Thursday after intense last-minute lobbying by the White House.
  
  

• The Standard & Poor's 500 index and Nasdaq composite index both reached four-year highs.
  

• The USDA drought monitor shows severe to extreme drought conditions persisting in northern Illinois and northeast Missouri.
  

• U.S. jobless claims were up 5,000 last week to 310,000.
  
  

• The U.S. Department of Energy said that underground supplies of natural gas increased 42 billion cubic feet last week to 2.381 trillion cubic feet.
  

• Germany's unemployment rate improved from 11.7% to 11.6% in July.
  

• Argentina's trade surplus narrowed in June to $692 million from $908 million in June 2004, the lowest surplus for any month in nearly four years, the Economy Ministry said on Thursday.
  
  

• YoY Retail sales in Japan were up 3.1% in June.

• ITALY’s shipowners have called for military protection following two attacks in a week on Italian vessels off the coast of Somalia.

Asia's 'surprising resilience'
The region is trading at 11.5 times earnings for this year, he added, with a dividend yield of more than 3 percent.

Quick Overview

• U.S. durable goods orders were up 1.4% in June, stronger than expected -- the third monthly increase.
  

• U.S. new home sales were at an annual rate of 1.374 million units in June, up 4.0% from May's pace and a new record high. YoY new home sales are up 7%.
  

• A Cabinet-level official of the Chinese government said that China would "gradually" open its markets and import more than $1 trillion worth of goods from the United States over the next five years.
  

• The U.S. DoE said that:
  Crude oil supplies were down 2.3 million barrels last week to 317.8 million barrels.
  Unleaded gasoline supplies were down 2.1 million barrels.
  Heating oil supplies were up 1.4 million barrels.
  
  

• The Federal Reserve's Beige book said that economic activity expanded in all twelve districts in June and early July.
  

• Overall for-hire trucking freight volumes fell 0.2% in June on a seasonally adjusted basis, American Trucking Associations said Tuesday.
  

• Federal officials announced Wednesday they are trying to determine if there might be a third case of mad cow disease among the country's herds.
  

• Bombay..parts of the city had been hit by up to 37.1 inches of rain
  

Has Greenspan Committed Fraud? The Dr. Ravi Batra Interview
The financial fraud is actually very serious fraud. It has resulted in almost $2 trillion worth of wastage as far as the average taxpayer is concerned...

Conflicts' costs may exceed $700 billion
..the costs of the war -- many multiples greater than what the White House had estimated in 2003 -- are throwing U.S. fiscal priorities out of balance. "It's dangerously irresponsible," Hagel said ..

Quick Overview

• The Conference Board said Consumer confidence was softer than expected in July falling to 103.2 from a revised 106.2 in June.
  
  

• Business confidence in Germany rose to a five-month high in July. The Ifo institute in Munich said its business confidence index rose to 95 from 93.3.
  

• German consulting agency F.O. Licht raised their estimate of
  global sugar consumption this year (2004/05) by 600,000 tonnes while raising production by only 180,000 tonnes.
  
  

• Some traders are starting to pay a bit more attention to weather in the Chinese Corn Belt because 40% of the corn growing area has received less than 50% of normal rains since June 1st.

• The average retail price of diesel fuel fell for a second straight week, dropping 5 cents to $2.342 a gallon, the Department of Energy said.
  

• U.S. sales of Class 8 trucks jumped 38.2% in June from year-ago levels, and reached their highest monthly total since December 1999, as fleets’ buying spree continued.

The US Navy...Made in China
China-Mart Takes Over
What US corporations and the free trade economists overlook is that giving Americans' jobs to foreigners raises foreign incomes and lowers American incomes. When credit cards and home equity lines are maxed out, there will be nothing to support the US consumer market. The American corporations who moved their capital and technology to China will have to find new customers.

GM crops created superweed, say scientists Unlike the results of the original trials, which were the subject of large-scale press briefings from scientists, the discovery of hybrid plants that could cause a serious problem to farmers has not been announced.

Melting Greenland glacier may hasten rise in sea level Measurements taken in 1988 and in 1996 show the glacier was moving at a rate of between 3.1 and 3.7 miles per year. The latest measurements taken this summer show it is now moving at 8.7 miles a year.

Quick Overview

• U.S. self-serve regular gasoline pump prices slid 1 cent in the past two weeks to an average $2.30 a gallon, according to the most recent Lundberg survey of filling stations released Sunday.
  
  

• Sales of existing homes rose at an annual rate of 7.33 million units in June, up 2.7% on the month and up 15% YoY.
  

• The USDA's good to excellent crop rating for:
  Corn was 53%, down from 55% last week.
  Soybeans were 54%, up from 53% last week.
  Spring wheat was 70%, down from 75% last week.
  Cotton was 61%, up from 60% last week.

Iraq: This is now an unwinnable conflict The Duke of Wellington, warning hawkish politicians in Britain against ill-considered military intervention abroad, once said: "Great nations do not have small wars." He meant that supposedly limited conflicts can inflict terrible damage on powerful states. Having seen what a small war in Spain had done to Napoleon, he knew what he was talking about.

Japan's corporate debt below 100 tril. yen

The debt totaled 97 trillion yen (US$866 billion, euro724 billion) at the end of March, down 7 trillion yen (US$62.5 million, euro52.2 million) from a year earlier and down 24 percent from the peak in 1997, the business daily said, citing its own survey of 1,181 companies. The trend indicates companies are both repaying debts and increasing the amount of cash they have on hand, with one-third of the polled companies being completely debt free, the report said.

Two New Studies on Aspartame and Diet Drinks Confirm Source of Obesity, Cancer/Malignant Brain Tumor Epidemics
"This study confirmed the previous study by Dr. Trocho and co-workers, which also found the formaldehyde breakdown product of aspartame to be damaging to cellular DNA and that this damage was accumulative. The type of damage was a duplicate of that associated with cancers. Along with this most recent study, this means that drinking a single diet cola sweetened with aspartame every day could increase one's risk of developing a lymphoma or leukemia.

Quick Overview

• China's currency rose about 2 percent against the U.S. dollar at the start of trading on Friday, a day after the government cut the yuan's link to the dollar in a move that could make Chinese exports more expensive and foreign assets cheaper for China to buy.
  
  

• The USDA said that there were 10.402 million head of cattle on feed as of July 1st, up 2.7% from a year ago. June placements were up 7% from a year ago and marketing’s were down somewhat.
  

• The USDA said that there were 70.5 million pounds of frozen bellies in storage on June 30th, up 90% from a year ago -- less than expected. Frozen pork totaled 492 million pounds, up 32% from a year ago
  
  

• The USDA said that there were 1.55 billion pounds of frozen orange juice concentrate in storage, down 25% from a year ago.
  

• The Italian economy will shrink marginally this year for the first time since 1993 and expand by slightly more than 1 percent in 2006, Bank of Italy Governor Antonio Fazio said on Friday.
  

• GDP in the U.K. was up 1.7% in the second quarter from a year ago, the slowest growth in twelve years.
  

• Consumer prices in Canada were up 1.7% in June from a year ago, less than expected. Retail sales were down 1.3% in May to C$30.4 billion.

• Greenspan said the U.S. central bank thinks the U.S. economy is on a "firm footing" and expects inflation to stay tame, but he made it clear the Fed isn't finished with the campaign of interest-rate increases it began in 2004.
  
  

• The DoE said that crude oil supplies were down 900,000 barrels last week. Supplies of unleaded gasoline were down 1.3 million barrels and heating oil supplies were up 1.5 million barrels.
  

• Argentina's economy grew 10.5 percent in May compared with the same month last year.

• Canada's composite index of leading indicators increased 0.3%
  
  

• Freight rates for coal and iron ore fell for a third consecutive week, reaching their lowest level in almost two years as global fleet expands.

• An index of leading economic indicators for Australia increased 0.4%
  
  

• YoY China's GDP increased 9.5% in the second quarter.
  

• The level of housing starts was unchanged in June from May’s rate, the Commerce Department reported Tuesday
  

• Industrial production in the Euro zone was down 0.3% in May after a 0.7% gain in April.
  

• The Chilean stock market closed at record highs on Tuesday, led by energy and retail sectors.
  

Treasury International Capital Data for April

Foreign purchases of domestic securities reached $53.6 billion on a net basis in April, relative to $58.9 billion during the previous month

Austria Shows Sick German Cousin the Way AheadIn a quiet way, Austria has been consistently outperforming its close cultural and linguistic neighbor

First oil ETF's debut is set and expected to launch later this month in London

Quick Overview

• Production at U.S. factories, mines and utilities rose 0.9% in June, twice as much as expected, the Federal Reserve said Friday.
  
  

• The producer price index for June was unchanged from May, while prices excluding food and energy fell 0.1%, the Labor Department said Friday.
  
  
• The University of Michigan’s preliminary consumer sentiment index for July rose to 96.5, more than expected.
  
  

• Manufacturing in New York state rose for the second straight month in July, according to a monthly survey by the Federal Reserve Bank of New York released Friday.
  
  

• Business inventories rose 0.1% in May, the Commerce Department said Friday.
  
  

• Department store sales in Tokyo fell 1.1% in June. This is the 40th decline in 43 months.
  
  

• Zhu Chenghu, a major general in the Peoples Liberation Army, said today that if the U.S. attacked China over Taiwan, there would be no option but nuclear.
  
  

• European Central Banker Wellink was talking tough this morning. He says cutting rates "not on my mind"
  
  

• Diesel prices continued a record-breaking climb, with prices hitting a fresh record of $2.408 a gallon for the week ending July 11.

• The Green Coffee Association said that U.S. coffee stocks were up 72,290 bags in June to 5.94 million bags. December coffee was down .0295 to $1.0985.

• Retail sales jumped 1.7% in June and up 9.6% YoY, while the CPI is flat in June and up 2.5% YoY.
  
  

• Calm consumer price inflation in June did little to change the market outlook for further U.S. interest rate increases at the next Federal Open Market Committee meeting.
  
  

• Several private meteorologists are calling for extremely hot weather over the next two weeks in the Midwest, which could tax developing crops.
  
  
  

• Green coffee imports by the 25 European Union countries, rose 1.9% in 2004 to 47.85 million 60-kilogram bags, the European Coffee Federation, or the ECF, said in a report Wednesday.
  
  
• China's Money Supply Surges as Foreign Reserves Swell
  M2, which includes cash and all deposits, rose 15.7 percent from a year earlier