News Today - Aug 07

* Bank of England Governor Mervyn King is betting that he can keep pumping money into the economy without an outbreak of inflation once growth returns.

* Central Bank President Jean- Claude Trichet indicated the economy may recover sooner than previously anticipated and signaled the bank is unlikely to provide any further stimulus.

* Economists at Goldman Sachs Group Inc. and Deutsche Bank Securities Inc. changed their July employment forecasts to predict a smaller drop in payrolls.

* The number of Americans filing claims for jobless benefits fell more than economists predicted, a sign some employers have stopped paring staff as the recession eases.

* Mortgage rates in the U.S. fell for the first time in three weeks, boosting the potential for further stabilization in the housing market.

* The U.S. Senate approved and sent to the White House on Thursday a $2 billion extension of the "cash for clunkers" autos sales incentive program.

* US Unemployment seen hitting 26-year high of 9.7% .