MNI Global Morning Briefing

     LONDON (MNI) - Its a slow start Wednesday, with the UK first up at 0830GMT,

with the CPI data. From a previous y/y figure of 2.4% for the month of May, a

rise in utilities and fuel prices is expected to drive June's CPI figure to

2.7%. Also at the same time is the ONS House Price Index and Producer Prices.

The house price index for April rose 3.9% on a y/y basis which was a fall from

4.2% in March. PPI input y/y is expected by analysts to rise from 9.2% in May to

10.0% in June. PPI output y/y is expected to rise from 2.9% in May to 3.2% in

June.

     Next up is the Euro Area 'final' HICP figures at 0900GMT. A flash y/y rate

of 2.0% is expected to remain unchanged. Construction output in the Euro Area is

also at 0900GMT. Previously, the y/y growth rate was 1.8%.

     Moving to the US, the seasonally adjusted pace of housing starts (1230GMT)

is expected to slow modestly to a 1.320 million annual rate in June after rising

in May. The NAHB index fell to 68 in June from 70 in May. As inventories remain

tight, builders will likely find it advantageous to boost output. The pace of

building permits is expected to rise to a 1.340 million rate from the unrevised

1.301 million rate in May.

     At 1400GMT, Federal Reserve Chair Jerome Powell will continue to deliver

his semi-annual monetary policy testimony before the House Financial Services

Committee in Washington.

     Another release from the Federal Reserve is at 1800GMT when they release

the Beige Book for the upcoming FOMC meeting.

     At 2350GMT, Japan publishes their latest trade balance data. A prior trade

deficit of JPY580 bn is expected by analysts to turn to a surplus of JPY538 bn.

     Finishing the calendar at 0130GMT is Australia with the monthly labour

force survey and NAB Quarterly Business survey. The unemployment rate in

Australia is expected to remain unchanged at 5.4%. The NAB business confidence

had a previous index value of +7 and the current business condition had an index

value of +17.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com