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.


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Most U.S. mid-sized companies not hiring: survey

(Reuters) - The news adds to evidence the U.S. economy may not grow as
robustly next year as it did last quarter, when gross domestic
product grew at an annualized rate of 3.4 percent.




Not all companies are gloomy about employment -- 47 percent
expect to hire, according to the survey from CIT and the
Economist Intelligence Unit. But 44 percent of mid-sized
companies see their workforce size staying the same, and 9
percent forecast a decline.


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EU's Mandelson says WTO draft cuts too deep

(Reuters) - New draft texts on agriculture and industry are a step forward in world trade talks but the range of tariff and subsidy cuts they propose are too tough, European Union Trade Commissioner Peter Mandelson said.

In an interview with Spain's el Economista newspaper on Saturday, Mandelson said the lower end of the proposed range of cuts would not really help the World Trade Organisation reach a free trade agreement.


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June housing starts up 2.3 pct, permits plummet

(Reuters) - The Commerce Department said on Wednesday housing starts set an annual rate of 1.467 million units in June compared with a revised 1.434 million unit pace in May. Economists had forecast June housing starts to drop to a 1.45 million unit pace from the 1.474 million unit rate originally reported for May last month.




Building permits fell 7.5 percent in June to a pace of 1.406 million units. That's just above the 1.402 million unit rate seen in June 1997 and below the 1.48 million unit rate that economists had expected.


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Air France KLM eyes Spanish airline Iberia

(Reuters) - Spanish publication El Economista and the Financial Times earlier said Air France KLM could team up with private equity company Apax in a consortium that could bid 3.8 billion euros for Iberia.




Apax was not immediately available to comment.


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US STOCKS-Wall St set for lower start on liquidity jitters

(Reuters) - NEW YORK, June 27 - U.S. stock index futures
indicated a lower open on Wednesday on concern over a rising
Japanese yen, a signal that free-flowing liquidity that has
fueled gains in global equity markets could dry up.




On the economic agenda, the government will release data on
durable goods orders for May at 8:30 a.m. .
Economists forecast orders for long-lasting manufactured goods
to have fallen 1 percent last month.


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GLOBAL MARKETS-Yen falls, Ifo hurts European equities

(Reuters) - European stocks dropped into negative territory after
Germany's Ifo economic research institute said its business
climate index dropped to 107.0 from 108.6 a month earlier.
Economists polled by Reuter had forecast 108.4.




The report undermined a mild rally in stocks that followed
losses on Thursday driven by fears of higher interest rates and
worries about the impact of troubles at two hedge funds managed
by Bear Stearns.


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GLOBAL MARKETS-Tame core U.S. inflation boosts stocks, bonds

(Reuters) - Economists polled by Reuters had expected consumer prices to
have increased 0.6 percent in May after a 0.4 percent rise in
April and core prices to have risen by 0.2 percent.




U.S. stock index futures jumped, suggesting a bullish start
on Wall Street. European stocks added gains with the
FTSEurofirst 300 closing in on 1 percent.


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