U.S. Trade Deficit Probably Grew in May as Oil Imports Swamp Export Gain

(Bloomberg) -- The U.S. trade deficit probably
widened in May as a jump in imported oil costs swamped record
exports, economists said before a report today.

The gap in goods and services trade rose 2.6 percent to $60
billion from $58.5 billion in April, according to the median
forecast in a Bloomberg News survey of 71 economists.


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Blue chip: U.S. consumer spending growth to slow

(Reuters) - After a pickup in business inventories and a narrowing of the trade deficit, the economy is expected to have grown by a more robust 3.0 percent annual pace during the second quarter, following an anemic 0.7 percent rate in the first three months of the year, the consensus found.




"That would mark a sharp improvement over the lackluster 0.7 percent rate registered in Q1 and represent the fasted pace of growth since Q1 2006," the newsletter wrote.


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Weak Dollar Alone Won't Fix Trade Gap, New York Federal Reserve Study Says

(Bloomberg) -- A weaker dollar is unlikely to close
the U.S. trade deficit because foreign exporters have a long-term
interest in maintaining market share in America, the New York
Federal Reserve Bank said in a research note released today.

``Evidence suggests that a weaker dollar will boost foreign
demand for U.S. exports, but this adjustment by itself is
unlikely to close the deficit,'' wrote New York Fed economist
Linda Goldberg and Eleanor Wiske Dillon, a Ph.D. candidate at the
University of Michigan who previously worked at the Fed.


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Philippines Trade Deficit Narrows in April as Electronics Imports Decline

(Bloomberg) -- The Philippines trade deficit
narrowed in April as manufacturers imported fewer raw materials
used to make laptops and video players for export, signaling
shipments abroad may continue to slow in coming months.

The gap in trade was $219 million, compared with a revised
shortfall of $499 million a year earlier, the National
Statistics Office said in Manila today. The deficit for the
first four months was $8 million.


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UPDATE 1-US' Paulson sees world support for China yuan move

(Reuters) - "Europe's trade deficit with China is growing twice as fast
as ours. The rest of the world's deficit with China is growing
faster than ours. This issue is a global issue," Paulson said.




Asked about Merrill Lynch's seizure of assets from
two hedge funds troubled by subprime loan-related losses,
Paulson declined to comment directly on the case, but said he
thought there would likely be more investor losses related to
subprime loans.


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Yuan's Level Isn't the Cause of the U.S. Trade Deficit With China, Wu Says

(Bloomberg) -- The yuan isn't the cause of the U.S.
trade deficit and a ``large'' appreciation would hurt China's
economy, Vice Premier Wu Yi said, signaling the nation won't
cave in to demands for faster gains.

``China will continue to reform its exchange rate on its
own initiative, gradually,'' Wu said at a dinner in Washington
after two days of talks with U.S. Treasury Secretary Henry
Paulson that yielded only minor agreements and failed to quell
calls in Congress for sanctions against China.


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