20100706 1143 Global Economic News.

New Zealand: Business confidence falls on domestic demand
New Zealand’s business confidence fell in the second quarter as domestic demand slowed, weakening the case for further interest-rate increases. Declining confidence adds to signs that economic growth and inflation pressures may not accelerate as quickly as the central bank forecasts. (Bloomberg)

Australia: Annual inflation gauge falls to 3.6% on food
A gauge of Australia’s annual inflation held above the top of the central bank’s target range in June after a jump in prices for fruit and vegetables. Consumer prices advanced 3.6% from a year earlier, after gaining 3.7% in May. An economic expansion in Australia has pushed inflation above the central bank’s target range of 2% to 3%. (Bloomberg)

Greece: Considers return to markets next year on economy gains
Greece may beat a target to reduce the European Union’s second-widest budget deficit, allowing the country to return to markets to raise debt, Finance Minister George Papaconstantinou said._ “Our hope is to tap markets sometime in 2011,” though Greece can hold off until 2012, Papaconstantinou said. (Bloomberg)

Germany: Cuts will trim budget deficit by 40%
Finance Minister Wolfgang Schaeuble proposed spending cuts that will reduce Germany’s federal budget deficit by about 40% over the next five years. The total deficit cuts from 2010 through 2014 are about EUR137bn, with energy subsidies and the armed forces facing some of the biggest spending reductions (Bloomberg)

EU: Euro may rise after break of ‘neckline’
The euro may advance to a two-month high against the dollar after breaking through the so-called neckline of an “inverse head-and-shoulders” pattern. Europe’s single currency strengthened 1.6% last week to USD1.2566, placing it above the neckline at USD1.2420 (Bloomberg)

EU: Retail sales increase, led by gains in Germany, France
European retail sales rose in May as households in Germany, France and Spain stepped up spending. Sales in the 16-nation euro area rose 0.2% from April, when they fell 0.9%. In the year, sales rose 0.3%. European consumers may hold back spending over the coming months after unemployment remained at the highest in almost 12 years in May. (Bloomberg)