BEIJING Profits earned by Chinas industrial firms contracted in June after a brief gain the previous month, fuelling concern that a slowdown in manufacturing from a bruising trade war will drag on economic growth.

U.S. economy slows in second quarter; weak business investment a red flag

Alphabet, Starbucks drive Wall Street to record high

Trump adviser says currency intervention off the table; Trump less clear

Trump says China may try to delay trade deal until 2020 election

Trump targets China in call for WTO to reform developing country status

UPDATE 1-Chinas industrial profits fall in June, add to fears of slowdown

Profits earned by Chinas industrial firms contracted in June after a brief gain the previous month, fuelling concern that a slowdown in manufacturing from a bruising trade war will drag on economic growth.

The London Stock Exchange Group Plc said on Friday it was in discussions to acquire financial data analytics provider Refinitiv Holdings Ltd for $27 billion, including debt.

Profits earned by Chinas industrial firms fell 3.1% in June from a year earlier, reversing gains in May, the National Bureau of Statistics said on Saturday.

WestJet Airlines Ltd, which is being acquired by Onex Corp, reported a surprise quarterly profit and better-than-expected revenue on Friday while many airlines have warned of financial hits from the grounding of the Boeing Co 737 MAX jets.

The London Stock Exchange Group Plc said on Saturday it was in talks to buy data analytics platform Refinitiv for a total enterprise value of about $27 billion by issuing new LSE Group shares.

U.S. President Donald Trump on Friday said his administration would not grant Apple Inc any relief for tariffs on parts made in China for its Mac Pro computer and later added he thought the firm would build a plant in Texas.

The Trump administration has ruled out intervening in markets to lower the U.S. dollars value, even though President Donald Trump is concerned other countries are weakening their currencies to gain a trade advantage, a top White House adviser said on Friday.

Mexicos Vista Oil & Gas has raised 2.031 billion pesos ($107 million) in a primary public share offering to help finance development of shale oil projects in Argentina, the firm said on Friday.

WestJet Airlines Ltd, which is being acquired by Onex Corp, reported a quarterly profit on Friday, compared with a year-earlier loss, as it flew more passengers at higher prices.

Speculators scaled back their bullish bets on short-term U.S. interest rates futures from their highest level in over 11 years earlier this week as they considered a possible rate decrease from the Federal Reserve, government data released on Friday showed. Their net longs on Eurodollar futures fell to 1.447 million contracts on Tuesday, down from 1.514 million a week earlier which was the highest since April 2008, according to

Large-cap companies pulled European stocks higher on Friday as a surge in Britains Vodafone and strong earnings for media businesses and Nestle spurred recovery from a sell-off driven by the European Central Bank.

* Spanish shares lag after Sabadell results (Updates to close)

European shares rose slightly on Friday, a day after they dropped on a less-dovish-than-expected European Central Bank statement, buoyed by a rally in mobile operator Vodafone and media firm Vivendi.

European stock markets turned into a sea of red on Thursday after the European Central Bank signaled monetary policy easing ahead, but disappointed investors who sought more clarity on its action to stimulate a slowing economy.

* AB InBev, AstraZeneca gain after results (For a live blog on European stocks, type LIVE/ in an Eikon news window)

European shares opened higher on Thursday, as strong reports from drugmaker Roche, brewer AB Inbev and luxury goods house LVMH stood out in a torrent of earnings, ahead of a highly-anticipated European Central Bank rate decision.

European shares closed at a two-week high on Wednesday as a slide in commodity stocks offset gains for chip and car makers ahead of a hotly-anticipated European Central Bank meeting.

European shares closed at a two-week high on Wednesday as a slide in commodity stocks offset gains for chip and car makers ahead of a hotly-anticipated European Central Bank meeting.

European shares opened flat on Wednesday, hit by dour signals from Deutsche Bank, Daimler and Aston Martin as well as a slide in commodity-linked stocks, while investors awaited manufacturing and services data.

A surge in automakers and strong earnings from Europes banking heavyweights lifted the main STOXX 600 index to its highest level in more than two weeks on Tuesday, with investors taking political upheaval in Britain and Spain in their stride.

* Investors eye U.S.-China trade talks, Fed meeting (Updates to market close)

President Donald Trump said on Friday that the United States had a very powerful dollar and he said the euro currency was not doing so well.

The dollar reached two-month peaks on Friday, as better-than-expected U.S. growth data did not alter the view the Federal Reserve would soon lower rates for the first time in a decade. The dollars rise was also helped by widening yield differentials between U.S. and German debt. Spreads were holding at two-month highs at 250.5 basis points. Investors were disappointed by a lack of policy action from the European Central Bank at a meeting on Thursday. Their attention will now shift to a Federal Reserve meeting next week, where policymakers are expected to cut interest rates by 25 basis points to 2.00%-2.25%. While U.S. gross domestic product slowed less than what economists polled by Reuters had forecast, it will likely not diminish the prevalent view among policymakers that a rate cut is needed to counter risk from trade conflicts and softening global demand, analysts said. Data showed U.S. GDP grew at a 2.1% annualized rate in the second quarter, weaker than the 3.1% pace in the first quarter but stronger than the 1.8% projected by economists polled by Reuters. You continue to see this theme that the U.S. is growing well, better than most G7 economies, consistent with dollar strength that were seeing on the back of this, said Erik Nelson, currency strategist at Wells Fargo Securities in New York. I dont think it changes all that much for the Fed next week. We still expect a 25 basis-point cut at the meeting, he added. In late U.S. trading, the dollar index was up 0.2% at 98.009, after earlier hitting its highest level since late May at 98.088. It gained 0.9% on the week following a rise of about 0.4% the week before. Interest rate futures suggested traders positioned for the Fed to lower key borrowing costs next week, with an 81% chance of a quarter-point cut, CME Groups FedWatch program showed. It takes 50 basis-point (cut) off the table, said Marvin Loh, State Streets global macro strategist, in Boston. There are enough good things going on in the economy. The greenback also received a lift after White House adviser Larry Kudlow told CNBC television the United States has ruled out intervention in currency markets to counter other nations from weakening their own currencies to help their exporters. In other currencies, the euro was down 0.17% at $1.11275, recovering from a two-month low of $1.1112 after the ECB decision on Thursday. For the week, the single currency fell 0.8%. After the ECB session, President Mario Draghi indicated the bank was prepared to cut rates at its next meeting, in September, and consider other options for easing. Sterling shed 0.53% to $1.2386 after hitting a 27-month low, after European Commission President Jean-Claude Juncker told Britains new prime minister, Boris Johnson, that an agreement reached by his predecessor Theresa May was the best and the only Brexit deal. ======================================================== Currency bid prices at 2:28PM (1828 GMT) Description RIC Last U.S. Pct YTD Pct High Bid Low Bid Close Change Change Previous Session Euro/Dollar EUR= $1.1125 $1.1145 -0.18% -3.00% +1.1150 +1.1113 Dollar/Yen JPY= 108.6900 108.6200 +0.06% -1.42% +108.8200 +108.5700 Euro/Yen EURJPY= 120.95 121.09 -0.12% -4.18% +121.1900 +120.8000 Dollar/Swiss CHF= 0.9940 0.9906 +0.34% +1.28% +0.9946 +0.9901 Sterling/Dollar GBP= 1.2385 1.2454 -0.55% -2.92% +1.2462 +1.2377 Dollar/Canadian CAD= 1.3174 1.3161 +0.10% -3.40% +1.3198 +1.3157 Australian/Doll AUD= 0.6909 0.6950 -0.59% -1.99% +0.6955 +0.6903 ar Euro/Swiss EURCHF= 1.1062 1.1042 +0.18% -1.71% +1.1063 +1.1038 Euro/Sterling EURGBP= 0.8983 0.8950 +0.37% -0.01% +0.8985 +0.8948 NZ NZD= 0.6632 0.6662 -0.45% -1.27% +0.6669 +0.6627 Dollar/Dollar Dollar/Norway NOK= 8.7175 8.6725 +0.52% +0.91% +8.7316 +8.6742 Euro/Norway EURNOK= 9.7002 9.6707 +0.31% -2.08% +9.7101 +9.6683 Dollar/Sweden SEK= 9.5011 9.4475 +0.39% +5.99% +9.5101 +9.4453 Euro/Sweden EURSEK= 10.5757 10.5343 +0.39% +3.04% +10.5777 +10.5277 (Reporting by Gertrude Chavez-Dreyfuss and Richard Leong in New York Additional reporting by Saikat Chatterjee in London Editing by Nick Zieminski and Matthew Lewis)

Gold prices rose on Friday, after slipping to more than one-week lows in the previous session, as soft U.S. inflation numbers offset better-than-expected second-quarter economic growth that kept bets alive for an imminent interest rate cut.

* Investors eye U.S.-China trade talks, Fed meeting (Updates to U.S. market morning trade, changes dateline, byline)

* Britain says vigilance needed on disinformation (Adds line from the British government)

* (Updates to U.S. market morning trade, changes dateline, byline)

The dollar climbed to two-month peaks on Friday and was on pace for a second straight weekly gain after data showed the worlds largest economy slowed at a less-than-expected pace in the second quarter. The dollars rise was also helped by widening yield differentials between U.S. and German debt. Spreads were holding at two-month highs at 249 basis points. Investors were disappointed by a lack of policy action from the European Central Bank at a meeting on Thursday. Their attention will now shift to a Federal Reserve meeting next week, where policymakers are expected to cut interest rates by a quarter of a percentage point. A better-than-expected U.S. gross domestic product report for the second quarter is not likely to change the Feds mindset, analysts said. Data showed U.S. GDP grew at a 2.1% annualized rate in the second quarter. The economy advanced at an unrevised 3.1% pace in the first quarter. Economists polled by Reuters had forecast GDP rising at just a 1.8% rate in the second quarter. You continue to see this theme that the U.S. is growing well, better than most G7 economies, consistent with dollar strength that were seeing on the back of this, said Erik Nelson, currency strategist at Wells Fargo Securities in New York. I dont think it changes all that much for the Fed next week. We still expect a 25 basis-point cut at the meeting, he added. In midmorning trading, the dollar index was up 0.1% at 97.927, after earlier hitting its highest level since late May. The greenback was little changed against the yen at 108.66 yen. Steve Blitz, chief U.S. economist at TS Lombard, believes that with the GDP data, Fed Chairman Jerome Powell would have a hard time convincing the hawks on the Federal Open Market Committee of the need for a quick 50 basis-point cut. So here is the Fed, faced with overall growth at trend created by the combination of a slowing business sector yet still strong consumption a function of stable if slower employment growth and a strong stock market, Blitz said. In other currencies, the euro was down 0.2% at $1.1127, recovering from a two-month low of $1.1102 after the ECB decision on Thursday. For the week, the single currency is down 0.8%. After the ECB session, President Mario Draghi indicated the bank was prepared to cut rates at its next meeting, in September, and consider other options for easing. Sterling, meanwhile, slipped 0.2% to $1.2425 and was on course for a 0.6% weekly loss. Cable has stabilized since Boris Johnson became Britains new prime minister, but uncertainty remains about the countrys negotiations to leave the European Union. ======================================================== Currency bid prices at 9:56AM (1356 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1128 $1.1145 -0.15% -2.97% +1.1150 +1.1126 Dollar/Yen JPY= 108.6600 108.6200 +0.04% -1.45% +108.8200 +108.5700 Euro/Yen EURJPY= 120.93 121.09 -0.13% -4.19% +121.1900 +120.9200 Dollar/Swiss CHF= 0.9935 0.9906 +0.29% +1.23% +0.9937 +0.9901 Sterling/Dollar GBP= 1.2406 1.2454 -0.39% -2.75% +1.2462 +1.2408 Dollar/Canadian CAD= 1.3186 1.3161 +0.19% -3.31% +1.3193 +1.3157 Australian/Doll AUD= 0.6915 0.6950 -0.50% -1.90% +0.6955 +0.6917 ar Euro/Swiss EURCHF= 1.1059 1.1042 +0.15% -1.73% +1.1061 +1.1038 Euro/Sterling EURGBP= 0.8970 0.8950 +0.22% -0.16% +0.8970 +0.8948 NZ Dollar/Dolar NZD= 0.6633 0.6662 -0.44% -1.25% +0.6669 +0.6635 Dollar/Norway NOK= 8.7086 8.6725 +0.42% +0.81% +8.7162 +8.6742 Euro/Norway EURNOK= 9.6919 9.6707 +0.22% -2.16% +9.7101 +9.6683 Dollar/Sweden SEK= 9.4732 9.4475 +0.09% +5.68% +9.4863 +9.4453 Euro/Sweden EURSEK= 10.5443 10.5343 +0.09% +2.73% +10.5637 +10.5277 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Saikat Chatterjee in London Editing by Nick Zieminski)

European stocks staged a tentative recovery on Friday as a rally in media stocks and solid earnings at several U.S. companies helped investors overcome the disappointment of the European Central Banks failure to deliver immediate policy easing.

1/CUTTING RATES, CUTTING QT Investors have zero doubt the U.S. Federal Reserve will cut interest rates on July 31 for the first time in more than a decade. For weeks, money markets have bet on a 25 basis point rate reduction in July, CME Groups FedWatch tool shows, and while chances of a half-point cut briefly shot up to 60% in mid-July, they have settled back at around 25%.

Reuters, the news and media division ofThomson Reuters, is the worlds largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the worlds media organizations, and directly to consumers at and via Reuters TV. Learn more about Thomson Reuters products:

All quotes delayed a minimum of 15 minutes.See here for a complete listof exchanges and delays.