In the US, the core CPI in June was 1.9%, close to Fed’s target. Despite the acceleration in consumer prices, due to soft economic condition, the Fed is unlikely to change its current course for a rate hike in the middle of next year. In fact, real weekly income decreased 0.1% year over year. The housing recovery remains slow, with new home sales dropping 8.1% in June. While existing home sales increased in June, but it was still 2.3% lower than a year ago. On the other hand, durable goods orders beat expectations and the factory sector seems to have further improved. The economy appears to have bounced back in the second quarter, but hard to push the whole year growth rate above 2.0%.