Portfolio Performance : -0.6%

Headline News

1. Fed's Miskin said that high commodity prices could take a toll on the economy
2. Spanish PM sees "serious difficulties for economy, no recession"
3. Bosnian national airline seeks strategic investors
4. The UK Times reported that "shock" figures from Marks and Spencer that sales have fallen by 5% in the past three months has fueled fears that the consumer slump will develop into a "severe consumer slump"
5. Swiss consumer price index +2.9% versus June forecast of 3.1%
6. Paulson says that biggest focus is economic downturn
7. Spain June services index is lowest recorded for any Euro Zone PM (this is serious)
8. Spain Service PMI in June is lowest in 9 year history
9. Dutch Q1 revised GDP higher by 3.3%
10. French June PMI at 50.1 lowest since 2003
11. Euro Zone Service PMI for June revised lower to 49.1 from 49.5
12. Hong Kong Retail Sales higher by 12.9% YoY
13.UK CIPS June Services PMI 47.1, lowest since Oct 2001
14. BOE survey shows that credit terms worsened for both households and corporates in Q2
15. Euro Zone Retail sales higher by 1.2% ver April in May, higher by 2% YoY
16. US nonfarm payroll -62000 vs -60000 expected in June


Bottomline : I am still long on the GBP, the ECB hike interest rates to 4.25%, but Trichet was more dovish than expected.