Mobile phone sales drop

High fuel and food prices sparked a pick-up in German inflation in May, stoking euro zone price pressures and strengthened the case for a rise in interest rates by the European Central Bank.

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Meanwhile, meeting senior British oil executives, UK Prime Minister Gordon Brown said he realised the effect high fuel prices were having on consumers, but warned there was no easy answer without co-ordinated global action.

"I think we all know that the global economy is facing its third big oil shock of recent decades and while in the time I was chancellor the oil price went as low as $11 per barrel it's now as high as $130 per barrel and I think we all know the impact that is having on bills on the prices at the petrol station."

The PM announced plans for increased oil production in the North Sea but this will be of little immediate help to truck drivers who protested the high price of fuel in Britain and in neighbouring France.

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And truckers are not the only ones feeling the effect of soaring oil. The European planemaker Airbus is bracing for airline customers to delay and even cancel orders, especially of single-aisle A320 planes. Oil prices have roughly doubled in the last year, putting pressure on airlines which have seen their fuel costs soar.

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But the price of oil slid after signs Asian demand was faltering. Days after Indonesia cut fuel subsidies, it announced it would be pulling out of OPEC. Its energy minister said that due to high consumption Indonesia had become a net-importer of oil. Fears that other Asian nations would follow suit saw the oil price drop slightly.

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In the markets, European shares inched up after the U.S. markets opened higher and a slight drop in oil. The FTSEurofirst 300 was up one percent.

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And finally, it may be good to talk, but not during an economic slowdown. Cellphone sales in Western Europe fell sharply in January-March as the financial uncertainty hurt demand. Sales fell 16.4 percent -- the first decline since 2001 -- but robust growth in emerging markets such as Asia and Africa offset the fall.

Stefanie McIntyre, Reuters