China's central bank governor said this week that the modest revaluation of the renminbi announced last week was only an "initial" step, ading to speculation that the authorities will strengthen the currency further over coming months. However, it is also reported that China won't make its currency fully convertible for at least five years because it worries hedge funds may force the yuan/renminbi to plunge, similar to what happened to the Korean won and Thai baht during the 1997 Asian financial crisis, said Li Deshui, a member of the central bank's monetary committee.

It was reported this week that the word healthy could soon be added to the old Mars bar jingle A Mars a day helps you work rest and play. Mars, the confectionery maker, owned by Masterfoods, has unveiled research showing that cocoa compounds could help treat diabetes, strokes and vascular disease. The company revealed that it has discovered how to replicate such compounds - know as flavanols - a finding that holds out the prospect of the creation of "a potential major new class of medications" available for development by pharmaceutical companies.

Existing-home US sales surpassed market expectations and reached another record in June as low mortgage interest rates and favorable market conditions continued to attract buyers, according to the National Association of Realtors®. Total existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 2.7 percent in June to a seasonally adjusted annual rate* of 7.33 million from an upwardly revised pace of 7.14 million in May. Sales were 4.4 percent above the 7.02 million-unit level in June 2004; the previous record was 7.18 million in April of this year.

Intel Corporation, the world's largest chip maker, announced plans this week to build a new 300-mm wafer fabrication facility at its site in Chandler, Arizona. The new factory, designated Fab 32, will begin production of leading-edge microprocessors in the second half of 2007 on 45 nanometer process technology. Construction on the $3 billion project is set to begin immediately.

Intel has not yet confirmed the announcement on Sunday by the Israeli Government that the US firm planned to build a chip plant in Israel.

Europe's leading business daily, The Financial Times, reduced its losses to £2m in the first half of the year, its owner Pearson Plc said this week. The performance compared with a £7m loss in the first six months of 2004, reflecting a 5% rise in advertising revenues and continued cost reductions. Sales of the FT were up 4% to £108m over the period, Pearson said.

New Attorney General Eliot Spitzer announced an agreement to halt pervasive "pay-for-play" in the US music industry, this week. Under the agreement, SONY BMG MUSIC ENTERTAINMENT, one of the world's leading record companies and owner of a number of major record labels, has agreed to stop making payments and providing expensive gifts to radio stations and their employees in return for "airplay" for the company's songs.

BP Plc, Europe's biggest oil company, said this week that second-quarter profit rose 29 percent as prices jumped for crude oil, petrol and other fuels. Profit rose to $4.98 billion, or 23 cents a share, from $3.87 billion, or 18 cents, in the year-earlier period, excluding gains in the value of its oil stocks, the UK-based BP said today in a statement. The result includes $700 million of costs for claims after a March explosion at BP's Texas City refinery.

The US Conference Board’s Consumer Confidence Index, which had increased in June, dipped in July. The Index now stands at 103.2 (1985=100), down from 106.2 in June. The Present Situation Index decreased to 118.5 from 120.8. The Expectations Index declined to 93.0 from 96.4 last month.

Online retailer Amazon.com has reported a fall in profits despite sales increasing by a quarter. The group said profits for the three months to June fell 32% to $52m (£29.9m) from $76m in the same period last year. Sales jumped 26% to $1.75bn. Seattle-based Amazon has had to contend with higher costs in recent months as a result of free and discount delivery offers.

Minister for Enterprise, Trade and Employment Micheál Martin TD this week attended the official opening of US Company QLogic’s new Dublin operation.  The company has established a new EMEA (Europe, Middle East and Africa) Headquarters in Blanchardstown, Dublin. 

The UK's largest computer manufacturer, Granville Technology Group, this week went into administration with the loss of 1,500 jobs. The firm responsible for the Time and Tiny branded computers abruptly closed all 78 of its retail stores and began laying off staff at its Burnley factory. Granville, formerly known as Time Group, acquired Tiny when the company went into administration in 2002. It went on to produce sales of more than £200m and profits of £2.5m in the year to June 2003.

US sales of new homes and orders for durable goods rose faster than expected in June, the government reported today, providing more indications that the economy is expanding at a rapid pace. Separately, the Federal Reserve said in a report that the economic expansion had picked up steam and that inflation remained under control in June and early July. The Fed's Beige Book, a periodic survey on economic conditions, noted broad strength in housing, manufacturing, tourism, consumer spending and banking.

The US House of Representatives narrowly approved the Central American Free Trade Agreement (CAFTA) following months of controversy about its impact on American jobs. The narrow 217 to 215 vote, came almost a month after the Senate approved the trade pact.

This week African tyrant President Robert Mugabe of Zimbabwe travelled with a begging-bowl to Beijing for help as his country's economy remains in freefall. Following China's deal to rescue the oil industry in Sudan last year, it generally gives primacy to its strategic interests rather than qualms about human rights. China 's Xinhua news agency reported that China would provide Zimbabwe with economic and technical support in several areas, including help to finance construction of a power plant and the sale of a 60-seater plane to Harare. As with Sudan, Mugabe also won a nod that China would not support any anti-Zimbabwe action in the UN Security Council in response to the destruction of the homes of thousands of poor Zimbabweans.

Japanese electronics giant Sony has reported a second straight quarterly loss, prompting the company to cut its annual profit forecast as prices drop for its Wega flat-screen televisions and development costs for the PlayStation 3 game console rise. Sony, the world's second-largest maker of consumer electronics, had a net loss of ¥7.3 billion ($65 million) in its first quarter ended June 30, from a ¥23.3 billion profit a year ago. The company said that net income will be ¥10 billion this fiscal year, compared with an April forecast of ¥80 billion.

According to a leading US marketing information provider, The NPD Group, retail sales of U.S. console and portable video games hardware, software and accessories saw an increase of 21 percent during the first half of 2005 (January – June), compared to the same time period last year. The video games industry saw sales figures rise to over $4.1 billion in the first half of the year compared to $3.4 billion in the first half of 2004.

Japan's industrial production rose in June and the unemployment rate fell to a seven-year low, confirming a recovery from recession in the world's second-largest economy.

Production rose a seasonally adjusted 1.5 percent from May, the Ministry of Economy, Trade and Industry announced in Tokyo this week, after falling 2.8 percent in May. The jobless rate fell to 4.2 percent from 4.4 percent, a separate report showed.

The worldwide mobile phone market showed signs of recovery from the first quarter of 2005 due to impressive shipments of entry-level mobile phones to both developing and mature markets. According to IDC's Worldwide Quarterly Mobile Phone Tracker, worldwide mobile phone shipments totaled 188.7 million units in the second quarter, increasing 7.3% sequentially and 16.3% from the same quarter one year ago.

Among the leading vendors, Nokia maintained its leadership, nearly doubling the shipments of its closest competitor and continuing its string of consecutive quarters with market share greater than thirty percent. U.S.-based Motorola finished the quarter solidly in second place, and combined with Nokia, the two represent half the market. In addition, Motorola improved its lead over Samsung by nearly ten million units. Samsung's growth was flat from the previous quarter, but the vendor nearly reached the halfway point of fifty million units in its quest to ship one hundred million units this year. Finishing fourth was LG Electronics, although only three hundred thousand units separate it from fifth place Sony Ericsson. Last quarter, 1.7 million units separated the two vendors.

Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 3.4 percent in the second quarter of 2005, according to advance estimates released by the Bureau of Economic Analysis.  In the first quarter, real GDP increased 3.8 percent.