Economic News - August 13, 2008

Big drop in oil inventories

Just how bearish oil markets have become is reflected in a scant $3.70 (3.25%) rise in the 17 hours since the initial release of the report, even with hostilities in Georgia which threaten a major pipeline flaring up again Wednesday.

Retail Sales - July 2008

Total Retail and Food Service Sales: $384.6 billion
Monthly Change: Down 0.1%
Annual Change: Up 2.6%

Import Export Price

Indexes - July 2008
Import Prices: Up 1.7%
Export Prices: Up 1.4%
Yearly Import Price Change: Up 21.6%
Yearly Export Price Change: Up 10.2%

Purchase mortgage applications hold steady

New applications for home purchase mortgages were unchanged last week according to the Weekly Mortgage Applications Survey from the Mortgage Bankers Association. Refinance applications dropped 4.2% as Fixed Rate Mortgage (FRM) rates rose and Adjustable Rate Mortgage (ARM) rates were essentially unchanged

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German Economy Contracts for the First Time in Four Years; GDP Drops 0.5%

The German economy, Europe's largest, contracted for the first time in almost four years in the second quarter, led by a slump in construction.

German Q2 GDP contracts by less than expected

BERLIN, Aug 14 (Reuters) - The German economy contracted by a smaller-than-expected 0.5 percent in the second quarter of 2008, official data showed on Thursday.

German Inflation Quickened to 3.5% in July, More Than Initially Estimated

Inflation in Germany, Europe's largest economy, accelerated more than initially estimated in July, led by surging energy and food costs.

French Economy Contracts for First Time in Five Years; Investments Fall

The French economy, the euro- region's second largest, contracted for the first time in five years in the second quarter as exports declined and companies cut investments.

Fed's Stern Sees Weak Economy Into Next Year

The Minneapolis Fed bank's Stern says headwinds from the housing and financial markets are likely to keep U.S. economic activity weak into next year.

GLOBAL MARKETS-Shares, commodities rebound;sterling reels

LONDON, Aug 14 (Reuters) - World stocks rose on Thursday from the previous session's one-month low while sterling tumbled to a fresh 22-month trough against the broadly firm dollar a day after the Bank of England warned on recession risks. Oil rebounded towards $117 a barrel after crude and gasoline stocks data raised supply concerns, lifting other commodities from gold to wheat and boosting resource-related shares even as the U.S. currency held near this week's six-month high