Economic News - August 20, 2008

Weekly Mortgage Applications Survey - August 20, 2008

Purchase Index: 314.0
Change: Down 0.4%

Mortgage applications fall, FHA mortgage share triples

The Mortgage Bankers Association also reported on Monday that the share
of government insured mortgages (mostly FHA loans) tripled over the
last year, from just over 8% to nearly 30% of all mortgages.

US Gasoline inventories drop below average

US gasoline inventories fell sharply last week, while crude oil
inventories rose by nearly 10 million barrels. Total commercial
petroleum inventories rose on increases in crude and all non-gasoline
refined products. Refineries actually increased gasoline production, so
the fall in inventories seems due to an increase in use.

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Developed Economies' Growth Slow

Developed economies grew at the slowest rate in almost seven years during the second quarter, OECD figures showed.

After Decades, Iran Buys U.S. Wheat

Iran's resumption of U.S. wheat purchases signals its limited options for
large quantities of high-quality grain. The purchase this summer ends a
27-year hiatus, but doesn't indicate whether the trade represents
larger, geopolitical developments.

Japan Exports Rebound as China Overtakes U.S. as Nation's Biggest Customer

Japan's exports rebounded in July as China replaced the U.S. as the nation's largest customer.

Fed Can Be `Patient' on Rates as Oil Drop May Slow Inflation, Stern Says Federal Reserve Bank of Minneapolis

President Gary Stern said an oil-price decline will probably push headline inflation lower, allowing the central bank to ``be patient'' in considering a change to the main interest rate.

Bank of England Panel Split Three Ways in Vote to Keep Interest Rate at 5%

Bank of England policy makers split three ways in August, with one arguing for higher rates to tame inflation and another voting for a cut to stave off a recession.

Foreign investors buy Japan shares, snaps sell streak

TOKYO, Aug 21 (Reuters) - Foreign investors bought a net 43.8
billion yen ($398 million) of Japanese stocks last week, breaking
a seven-week streak of selling, capital flows data released by
Japan's Ministry of Finance showed on Thursday

UPDATE 1-Colombia industrial output slides 6.55 pct in June

BOGOTA, Aug 20 (Reuters) - Colombia's industrial production
fell 6.55 percent in June compared with a year earlier in the
clearest sign yet of the country's slowing economic growth, the
government said on Wednesday.