INFLATION

Wall Street's summer comes to a close next week with what could be a toxic mix for stocks: No major earnings, an overload of A-list economic data, a storm headed for the Gulf of Mexico and trading desks staffed with third-string dealers.

Rising oil prices lifted European energy stocks on Friday while most financial markets were focused on an upcoming speech by U.S. Federal Reserve Chairman Ben Bernanke.

The Reserve Bank of Zimbabwe extended its deadline for the country's currency changeover until Monday, causing chaos throughout the country over the weekend as Zimbabweans went on whirlwind of shopping sprees.

Employment in Europe appears to be rising in earnest following years of sluggish economic growth when companies either cut staff or shunned new recruits to safeguard profits.

President George W. Bush will wrap up conferring with his economic team on Friday on ways to keep the economy growing against a backdrop of higher interest rates, mixed data and fears of rising inflation.

The Bureau of Labor Statistics is contemplating a change in the consumer price index that may have an impact on how markets and policymakers interpret inflation data, the Wall Street Journal reported on Monday, citing a government official.

The U.S. economy will grow at a sluggish pace for the remainder of this year and into 2007 as the worst of inflationary pressure is yet to come, a survey of top forecasters showed on Thursday.

U.S. business productivity rose at a 1.1 percent annual rate in the second quarter but unit labor costs jumped sharply, according to a government report that gave the Federal Reserve a final piece of inflationary data as a pivotal meeting started on Tuesday.

Expectations of a halt in the Federal Reserve's two-year campaign of interest rate rises kept the dollar near two-month lows on Tuesday, while auto firms led stocks higher in Asia and Europe.

The Bank of Japan, which last month raised interest rates for the first time in six years, is expected to keep its powder dry this week as it confirms that economic growth is slowing and with inflation yet to materialize.

Central Banks around the world are tightening credit due to economic growth that could spin out of control. Skeptics say they could be going too far, while other say the banks aren't going far enough.

South Africa's largest money lender, Absa Group Ltd announced on Thursday that full-year earnings might be lower than 2005's performance, in spite of reported strong first half-year earnings.

Zimbabwe's central bank has announced that three zeroes will be removed from every bank note in an attempt to help consumers deal with hyperinflation of almost 1,200 percent.

Business activity in the U.S. services sector in July and new orders at U.S. factories in June were surprisingly weak, two reports showed on Thursday, signaling that economic growth was decelerating.

Hiring slowed in July as employers added just 113,000 new jobs, propelling the unemployment rate to a five-month high of 4.8 percent and providing fresh evidence that companies are growing cautious amid high energy prices. Wages grew solidly.

South Africa's Reserve Bank Governor, Tito Mboweni, said the country can maintain its growth rate. However he added that price stability would not be without its challenges.

The head of the International Monetary Fund Rodrigo de Rato said Thursday that deflation has, by most measures, ended in Japan and that with more economic reform efforts, Japan will overcome significant challenges to come.

Business confidence is down slightly in July, the South African Chamber of Business said on Thursday.

The Bank of England surprised markets on Thursday by raising interest rates for the first time in two years, citing concerns that inflation would stay above its 2.0 percent target for a while.

Producers are slowly passing on high energy prices to consumers, data showed on Wednesday, in a trend that raises consumer inflation risks and reinforces the case for gradual European Central Bank rate rises.

Investors, tired of weak returns and rising volatility in U.S. stocks, are turning to cash and fixed-income investments, including safer municipal bonds and Treasury inflation-protected securities.