• Foreign trade in June reached surplus of CZK 9.3bn. Exports rose by 14.5% y/y while imports by 14%. Higher surplus of trade with machinery and transport vehicles and lower deficit with mineral fuels contributed to better balance of trade result. • According to Czech Statistical Office estimate, harvest of basic cereals should increase by 8.4% this year. Rape seed should rise by 10.1%. • Hungary’s industrial production in June rose by 8.7% y/y after May’s growth of 3.2%. • Mortgage bank American Home Mortgage Investment Corp. declared bankruptcy and asked for protection against creditors. This company is the 10th largest mortgage provider in the USA and is operating on turn of prime and sub-prime markets. • Fears of US economy development moved also on commodity markets. Prices of oil declined by 5% yesterday and Brent was sold for USD 71/bbl. • Battle for ABN Amro is reaching its peak. Yesterday, Barclays officially submitted bid for Dutch bank takeover. Barclays offer to ABN Amro shareholders constitutes of EUR 13.15 in cash and 2.13 of new Barclays shares for one ABN Amro share. Competition offer of Royal Bank of Scotland, Fortis and Santander consortium is slightly higher with higher cash proportion.