ECONOMICS

*some important world indicators here that you all should be watching...

U.S. trade deficit climbs up along with price of oil
The U.S. trade deficit expanded for the second consecutive month in April, increasing 2.2%, the Commerce Department said. The figure is slightly higher than what economists predicted but much lower than last year's record. The surging price of oil played a big part in April's widening deficit. National Public Radio/The Associated Press (10 Jun.)

Indian firms, government rush to raise cash as market soars
With India's stock market soaring, the government and companies are planning to raise capital to fund expansions and bolster their balance sheets. Some are questioning how long the situation will last. "Can the market get saturated or, indeed, deals downsized? There is a distinct possibility," said Tarun Kataria of HSBC in India. "Given current euphoria, investors are keen to play India and, it would appear, will buy anything. At some point soon, there will be a flight to quality." The Wall Street Journal (11 Jun.)


Brazil's central bank takes rate to historic low of 9.25%
Moving to counter a sharp downturn in Latin America's biggest economy, the Brazilian central bank cut its benchmark interest rate by a full percentage point, bringing it to a record-low 9.25%. This is the fourth time in a row that the bank has lowered its rate in the past four months. Forbes/The Associated Press (10 Jun.)


Slump in exports pushes Canada into surprise trade deficit
Catching economists by surprise, Canada posted a $179 million trade deficit in April, reflecting falling demand for its exports. Economists had been looking for a $1 billion surplus. "There's no sugarcoating this news, as this red is simply bad news," said Douglas Porter, deputy chief economist at BMO Capital Markets. Financial Post (Canada)/Canwest News Service (10 Jun.)