• Coalition agreed on public finances reform but this will not be supported by Ludovik Hovorka, Christian-Democrats MP. This means that reform will depend on former Social Democrats members, Mr. Melcak and Pohanka. According to the latest news, they should support the proposal.
• WTO warned that risks on financial markets and macroeconomic instability could slow down growth of global economy and trade during this and next year.
• US balance of trade deficit decreased in June to USD 58.1bn from USD 59.2bn in May while market was expecting deficit of USD 61bn.
• According to ECB president Trichet, conditions on money market are normalizing again. Also, ECB is pulling down liquidity which was provided to market last week. Volume of one day repo operations is gradually decreasing.
• GDP growth in Eurozone in the 2Q07 decelerated to 2.5% while the whole EU rose by 2.8% according to preliminary estimates of Eurostat. In the last quarter, growth reached 3.1% or 3.3% respectively.
• US producers’ price index in July increased by 0.6% which is above estimated 0.2%. On the other hand, core PPI was lower than expectations, 0.1% vs 0.2%.