Bank of America’s leading, Morgan Stanley, on Wednesday said the acquisition of its profits soared up to 1.96 billion dollars in the second quarter. Better performance in business helped the company build a trading profit of 149 million dollars in the same period last year and strong gains from the first three months of 2010. Results-based company in New York came supported an increase in revenues 53 per cent to 7.95 billions of dollars versus the same period of last year. That was offset by 361 million dollars to pay for the cost of a new British tax on bonuses.

“The challenging market this quarter … we will strengthen the leading market position in investment banking business that focuses on our clients (and) improve the flow of clients in sales and trading,” said CEO James Gorman. But he warned that the decline continued in many major economies will present difficulties. “We still have a lot of work to be done across our global franchise and anticipates that the difficult market environment can continue in coming months,” he said.

U.S. trade deficit unexpectedly widened in May for the second month as imports exceeded exports, the government said Tuesday. The gap in goods and services rose 4.8 percent to 42.3 billion dollars from 40.3 billion dollars in April, the Ministry of Commerce said in a report, as quoted from the AFP. Most economists expect the deficit fell to 39.4 billion dollars.

Imports rose 2.9 percent to the highest 18-bulansebanyak 194.5 billion dollars while exports rose 2.4 percent to the highest 19-month to 152.3 billion dollars i.e. Recent data indicates that the trade could blunt the economic growth in the United States despite the increase in imports in the world’s biggest economy offers hope for global economic recovery, analysts said.

That “trade show will be a bigger drag on growth in the second quarter than we first anticipated,” said Aaron Smith, a senior economist from Moody `s Economy.com.

The U.S. economy grew by 2.7 percent in the first quarter of 2010 but analysts expect slowing expansion this year amid high unemployment caused by the worst recession in decades. While the widening of the deficit is “negative” for the U.S. gross domestic product, “it is a net positive for global growth,” said analyst Kimberly DuBord of Briefing.com. The increase is driven by U.S. imports of consumer goods, motor vehicles, spare parts and machinery and capital goods.

The new data also shows that the political sensitive trade deficit with China widened 22.3 billion dollars in May from 19.3 billion dollars in April, a development that could trigger calls for the acceleration of China’s Yuan currency appreciation. Three weeks after China’s central bank pledged to loosen currency controls in the midst of international pressure, the U.S. Treasury Department said last week Yuan remain “undervalued” against the dollar. Beijing accuses the United States has maintained its currency to remain low against the greenback to trade advantage.

“To maintain the cheap China-made products on the shelves of U.S. stores and prevent U.S. exports to China, Beijing undervalues Yuan by 40 percent,” said Peter Morici, a business professor at the University of Maryland.

Sales of semiconductors worldwide increased 47.6 percent in May from a year ago and 4.5 percent higher than the previous month, Semiconductor Industry Association (SIA) said Tuesday.

SIA says global sales of computer chips reached 24.7 billion dollars in April, compared with 16.7 billion dollars in May 2009 and 23.6 billion dollars in April.

“Global semiconductor sales may reach a new highest point and stay in step to achieve the SIA’s forecast growth of 28.4 percent to 290.5 billion dollars in 2010,” said SIA President George Scalise in a statement.

“Sales of the chip have been supported by strength in sales of personal computers, cellular phones, information technology companies, and industrial applications and automotive,” said Scalise.

“The market is growing, including China and India, which triggered the sale of computer and communication products,” he said.

“The demand from information technology companies and industry sectors pushing out the replacement cycle for a global economic recession began to return,” he added.

Scalise noted that the strong growth rate in the year-to-year “highlighting the condition of the first semester of 2009 the market was very depressed.”

“Looking ahead, the ratio of the growth year-to-year industry that will reflects recovery gained momentum in the second half of last year,” he said.

Sales of semiconductors in the United States rose 52.9 percent in May from a year ago and 8.2 percent higher than in April. Chip sales in Asia-Pacific region rose 50.9 percent in May compared to last year and 5.0 percent higher than April.

Dispute between Google Inc. and the Government of China re-heated. China’s Foreign Ministry was reluctant to comment on Google’s stop the rerouting step (direction) to the portal automatically in Hong Kong in the free Google censor. According to them, all Internet service must comply with local laws.

“Internet operators in China must be subject to the laws and regulations in China,” said Foreign Ministry Spokesman Qin Gang on Thursday (1 / 7).

On Monday (28 / 6), Google said it would stop the direction of Hong Kong direct to the site search. This is done because the government of China is not happy with the system and do not want to renew the operating license Google if this system continues. Google said on their official blog, the automatic termination of the direction taken so that Google can update the license to operate in China.

Guxiang, the company that operates the site Google in China, have entered a request to update a Google operating license to the relevant ministries. They also promised to obey the law in China. Xinhua News Agency reported, Google’s application has been reviewed by the government and the results will be released soon.

According to analysts, although this time Google’s revenue in China is only $ 300 million to $ 600 million, the business prospect in the land of Panda is quite tempting. As the largest Internet market with nearly 400 million users, China has huge potential. Other companies, like Ebay and Yahoo who leave earlier, no longer able to get the market in China.