Dollar hits near 6-week high vs. euro

NEW YORK (CNNMoney.com) -- The dollar rose to near a six-week high against the euro Friday after the government reported fewer than expected job losses for July.
The euro fell as low as $1.5515 - the lowest level since June 24, according to data from Forex Capital Markets - but then pared some losses.
Most recently, the euro bought $1.5545, down from $1.5603 late Thursday. The greenback lost ground against the yen, buying ¥107.64, down from ¥107.91 a day earlier.
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Jobs: The Labor Department said employers cut 51,000 jobs last month, marking the seventh straight month of job losses.
But economists polled by Briefing.com had feared worse and were expecting a loss of 75,000 jobs.
"I think overall it was kind of a pleasant surprise," said Tom Benfer, vice president of foreign exchange at the Bank of Montreal. "The market was bracing for a potentially poor number and it was only 51,000."
Meanwhile, the unemployment rate rose to 5.7% from a reading of 5.5% in June. The jobless rate was forecast to rise to 5.6%
European economy: The euro was also weakened by a negative report on manufacturing activity. The euro-zone's purchasing managers index report indicated contraction in the region's economy during the month of July.
"There is a perception that the European economy is slowing down," said Benfer.
The euro was also lower against the yen Friday.

100 best places to live and launch

Like many of the places on our list, Bellevue is a city in transition: no longer a bedroom community, but not yet a crowded, expensive metropolitan hub. Bellevue has grown with unusual grace in recent years. Huge corporations exist symbiotically with startups, a booming downtown abuts healthy residential neighborhoods, and the rising skyline is tempered by an abundance of parks, as well as lakeside and mountain views. Flash retailers such as Neiman Marcus draw regional shoppers, but Bellevue's excellent healthcare and schools are key attractions for relocating families.
While local businesses must pay the statewide Business and Occupations tax on their gross receipts, there's no corporate income tax. Businesses with less than $135,000 in taxable revenues (the highest threshold in the area) don't have to pay the B&O tax. Easy airport access and a highly skilled workforce make Bellevue an attractive option for startups looking to break big.

Diesel: The truck stops here

NEW YORK (CNNMoney.com) -- The kid who delivers your pizza may be charging you an extra buck for gas, but for the guy that trucked the tomatoes, hauled the dough or milked the cows, passing along the fuel increase isn't as easy as pie.
From truckers and farmers to loggers, construction workers and fishermen, skyrocketing diesel prices are pushing what many consider the backbone of the American economy right up to the breaking point. Some independent truck drivers are even stopping work Tuesday, letting their rigs sit idle to protest the high prices.
"I'm in debt," says Jim Gossett, an owner/operator truck driver with a wife and daughter in Chapel Hill, N.C. "Do I turn in all my equipment, potentially lose my home?"
For the last nine years Gossett has driven a truck. For the last few he's been running a specialized carrier, delivering boats to marinas and dealers across the country.
He says his profit margin used to be around 25%. But with the near-tripling of diesel prices over the last few years, he now says that has been cut to 5%.
He says cutthroat competition in the industry means he's unable to pass along the increased cost.
Others who use huge amounts of diesel for a living say the same thing.
"You can't get any work if you raise your prices," said Tyson Clay, filling up the tank for his bulldozer at a gas station in Camden, Ala. "You just grin and bear it, people are only going to pay so much to get their land cleared."
Clay burns through 300 gallons of fuel a day. With the big runup in prices, he now spends $700 a day on off-road diesel, which is cheaper than regular diesel partially because the taxes are less.
Diesel soars
Due to strong demand diesel prices have nearly tripled since the start of 2004, analysts say, jumping 22% in the last two months alone. With a nationwide average price of $4.03 a gallon, on-road diesel is considerably higher than gasoline's $3.26 a gallon. This is unusual since diesel is normally cheaper than gas.
Unlike the average consumer who can cut back on gasoline use when prices get too high, businesses of all types have little recourse.
"Federal Express may not like high diesel prices but they have no choice but to pay the numbers or shut down," Tom Kloza, chief oil analyst at the Oil Price Information Service, wrote in a recent research note.
FedEx, or any other business, will be lucky if they are able to pass along the cost.
"Demand is weak," said Gus Faucher, director of macroeconomics at Moody's Economy.com. "If you're in construction, business is terrible right now. The last thing you want to do is raise your prices."
For consumers, it doesn't really matter if the fuel costs are passed on or not.
"The consumer impact is limited," said Faucher. "Transportation costs are a pretty small share of overall consumer prices."
In a bind
But for a logger like Tommy Lawler, it makes a huge difference.
Lawler has been logging land around Wilcox County, Ala., for more than three decades.
He has four logging crews out in the woods at any given time, each running three pieces of heavy equipment. Each piece of equipment burns through $150 of fuel a day.
Because contracts for logging are signed months, sometimes years in advance, he has little room to maneuver when the price of diesel spikes.
"If we stay here a month and fuel goes up 10%, I have no way to pass that along," he says over the noise of a logging operation in action. "Ultimately, it comes out of my bottom line."
His operations are already down to four workers - the minimum needed - so laying off workers isn't likely.
And with few other jobs in rural Alabama, Lawler doesn't have much to fall back on.
"We're limited in our options," he says. "It's not like you can go down the street and pick up a six-figure office job just because the cost of fuel is high

DFM, ADX end up

The DFM finished up by 1.07%, with 20 companies rising, three falling and three remaining unchanged. The Abu Dhabi Securities Exchange also ended the day up slightly by 0.92%, a total of 4,976.15 pips. The National Marine Dredging Co was the day's big winner, going up 9.91% to Dhs11.65.

Kuwait considers new minimum wage

With the Islamic holiday due tomorrow, five Gulf markets closed for the week today. Muscat declined sharply by 7%. In Saudi Arabia, the Tadawul dropped 3.8% for the week, while the Dubai Financial Market and Abu Dhabi Securities Exchange ended down 0.58%. The Kuwait Stock Exchange bucked the trend, closing up 0.60%. On the day's trading, five markets rose. The DFM closed up 1%, the ADX 0.92% and Muscat 0.56%. Doha and Kuwait rose slightly, by 0.08% and 0.04% respectively. The markets in Bahrain and Saudi Arabia both closed the day down, by 0.65% and 0.37% respectively.

Saudi inflation to drop in 2009

Inflation in Saudi Arabia will average 11-12% this year and is expected to drop slightly to 10% in 2009. A report by Samba Financial Group said that government spending and less likelihood of a rise in US interest rates any time soon mean that domestic liquidity growth is likely to remain pronounced. Food prices and rent are the most immediate cause of inflation in the kingdom.

GCC oil revenues top $600bn

GCC oil revenues are expected to be over $600bn in 2008 and 2009. Oil prices are expected to remain above $100 a barrel this year, providing the platform for medium-term economic growth said a Gulf Finance House report. Governments across the six GCC nations are expected to collectively spend $300bn this year and some $2 trillion of private sector projects are either planned or underway.