CANADA/U.S.: Canada issued a World Trade Organization (WTO) request for consultations over U.S. agricultural subsidies Jan. 8, singling out the $9 billion paid annually by the U.S. government to corn farmers in export credit guarantees. Under WTO rules, consultations will probably last 60 days before the dispute can proceed. This case builds on a dispute successfully brought by Brazil in 2005 challenging U.S. cotton subsidies. These cases could set a precedent for future cases brought against U.S. agricultural subsidies.

RUSSIA: Russia reopened the Druzhba trunk pipeline in Belarus on Jan. 10, resuming transit to Poland, Germany, Ukraine, Slovakia, Czech Republic and Hungary. Russia cut oil supplies to Belarus -- and hence Europe -- on Jan. 8 after Belarus imposed a transit duty of $6.14 per barrel on Russian oil. Belarus was acting in response to an increase in Russian natural gas prices from $46 per 1,000 cubic meters to $100 per 1,000 cubic meters in 2007. The price is to increase to the full European average -- currently around $280 per 1,000 cubic meters -- by Jan. 1, 2011. The dispute further highlighted Europe's need to diversify energy sources away from Russia.

CHINA/U.S.: Chinese trade surge - China’s trade surplus reached $177.5bn (£118.7bn) last year, 74 per cent higher than in 2005, a rise that will intensify pressure on Beijing further to open its markets and accelerate the revaluation of its currency. The growth in the surplus reported by China’s customs agency – up from $102bn in 2005 and $32bn in 2004 – has been driven by continued strength in exports, up 27 per cent year on year, and relatively weaker imports growth of 20 per cent. The deficit with the US is even higher according to Washington’s measure, reaching an all-time high of $214bn in the 11 months to November.

Source: Strategic Forecasting, Financial Times

• Oil Falls Below $52 – Copper Down
• Crude Oil prices fell below $52 a barrel to their lowest since May 2005. Copper dropped $40 to $5,837 a ton.

• Job Openings and Labor Turnover Survey
• In November, 5.0 million persons were hired, marginally higher than the revised October figure. Total separations increased from the previous month, to 4.6 million from 4.5 million. Construction and trade/transportation/utilities were the only industries in which the number of separations was greater than the number of hires during the month. Job openings totaled 4.2 million, unchanged from the prior month. The job openings rate was unchanged at 3.0%.

• Oil and Gas Inventories
• Crude oil inventories plummeted by 5 million barrels for the week ending January 5, according to the Energy Information Administration, well above expectations. Distillate inventories soared by 5.4 million barrels, while gasoline stocks rose by 3.8 million barrels, both well above expectations. Increased refinery activity drove this drop in crude inventories. The report will put further downward pressure on energy prices.

• International Trade (FT900)
• The nominal U.S. trade deficit in goods and services narrowed by 1.0% in November. The U.S. trade deficit came in at $58.2 billion, $0.6 billion less than October's revised $58.8 billion, according to the Bureau of Economic Analysis. In November, both exports and imports increased, while exports increased more than imports. The goods deficit with China, however, narrowed 6.3% to $22.9 billion. Crude oil prices decreased in November, which in return decreased the nation's total import bill for energy-related petroleum products to $20.2 billion.

• Wholesale Trade (MWTR)
• Wholesale inventories were well above consensus expectations, coming in up 1.3% for November. Wholesale sales were up 1.0%, and the I/S ratio is at 1.2

• Consumer Credit (G19)
• Consumer credit increased in November by $12.3 billion to $2.39 trillion. The details of the report show that the latest jump in consumer credit was primarily driven by a surge in revolving credit, which increased 12.6% at an annual rate. Not to be outdone, nonrevolving credit rose 3.0% at an annual rate.

• Global Business Confidence
• Businesses remain unsettled at the start of 2007. Global business confidence has declined more or less throughout the past year and is now consistent with growth that is below the global economy’s potential. Hiring and investment plans have weakened during this period. Confidence is weakest among vehicle and transportation companies, followed closely by residential real estate firms. The most upbeat respondents are from South America and in the financial services and defense industries. Pricing pressures are off sharply from their summer peaks.

• MBA Mortgage Applications Survey
• Mortgage demand increased 16.6% in the week ending Jan 5. Purchase applications increased 16.2% and refinance applications increased 17.3%.

• Chain Store Sales
• Chain store sales increased 0.7% in the week ending January 6, according to the ICSC. Year-over- year growth jumped to 3.4%, the strongest growth since mid-October. Warm weather remained a drag on sales.

Source: Economy.com, Financial Times

• Reeds Jewelers, and Mills Jewelers
• Reeds Jewelers, Inc. trades Reeds Jewelers, and Mills Jewelers.
• The 89-unit chain operates locations throughout AL, DE, FL, GA, KY, LA, MD, MI, MO, MS, NC, OK, PA, SC, TN, TX, VA and WV.
• The jewelry stores occupy spaces of 1,500 sq.ft. to 5,000 sq.ft. in malls and lifestyle centers.
• Plans call for four openings throughout the existing markets during the coming 18 months. Typical leases run 10 years.
• Preferred cotenants include fashion retailers.
• For details, contact:
  • Herbert Zimmer,
  • Reeds Jewelers, Inc.,
  • P.O. Box 2628,
  • Wilmington, NC 28402;
  • 910-763-4669, Ext. 202,
  • Fax 910-762-1999;
  • Email: herbertzimmer@zdc.com;
  • Web site: www.reeds.com

• Café Tu Tu Tango
• V Tango Group trades as Café Tu Tu Tango at six locations throughout CA, FL and GA.
• The restaurants occupy spaces of 6,000 sq.ft. to 8,000 sq.ft. in entertainment centers.
• Growth opportunities are sought nationwide during the coming 18 months.
• For more information, contact
  • Rene Bardel,
  • V Tango Group,
  • 3059 Grand Avenue, Suite 410,
  • Miami, FL 33133;
  • Web site: www.cafetututango.com.

• Reebok
• Adidas Group trades as Reebok.
• The 300-unit chain operates locations nationwide and internationally.
• The shoe stores occupy spaces of 5,000 sq.ft. to 10,000 sq.ft. in freestanding locations, malls and outlet centers.
• Growth opportunities are sought throughout the existing market during the coming 18 months.
• For details, contact
  • Douglas Noonan,
  • Adidas Group, 1895
  • JW Foster Boulevard,
  • Canton, MA 02021;
  • 781-401-5000,
  • Fax 781-401-4758.