Merchandise trade balance hits record high

Economists were expecting a balance of just $3.8 billion. The value of exports rose 2.3% and that of imports slipped 0.4% in the month. Also, wholesale sales edged upwards 0.3% in June, led by computers and electronic components as well as motor vehicles.

In the U.S., the trade deficit was reported up to US$30.62 billion, and although this is a record too it is a little lower than expected. This number won’t affect interest rates and isn’t likely to touch markets much.

Stocks are mixed in Europe today with telecoms up and oils down. London’s FTSE is up eight ticks to 6526. Paris’s CAC 40 is down seven to 6628, and the German DAX is down 16 points to 7252.

In business news, Diageo plc and Pernod Ricard SA are said to be planning a joint bid for Seagram Co.’s liquor business from Vivendi. Analysts speculate that US$9 billion could be raised from the deal.

The Wall Street Journal is reporting that executives from British Telecommunications plc and AT&T Corp. have held informal talks about merging. News that’s spurring some action in the telecom business too. In the overseas markets Nortel Networks and JDS Uniphase are benefiting from this action.

In Asia, the yen fell overnight after Morgan Stanley Capital International Inc. said it would drop 16 Japanese companies from its important global index. The Nikkei finished the week up however, gaining 119 points to 16280. The Hang Seng fell 182 points to 17440.