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As Unemployment Rate Drops, US Economy on its Way to Recovery
The US Labor Department has released its US job report for April, wherein it indicated that business had topped up a total of 211,000 jobs last month, a far cry from March’s reading of only 79,000 jobs. This upward trend in hires has confirmed market projections that the country’s overall economic growth is well on its way towards a significant recovery. Economists are now saying that this evidently very strong economic data for the country signals that consumers might soon have the power to amplify their spending habits during the second quarter of 2017.

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As Unemployment Rate Drops, US Economy on its Way to Recovery
The US Labor Department has released its US job report for April, wherein it indicated that business had topped up a total of 211,000 jobs last month, a far cry from March’s reading of only 79,000 jobs. This upward trend in hires has confirmed market projections that the country’s overall economic growth is well on its way towards a significant recovery. Economists are now saying that this evidently very strong economic data for the country signals that consumers might soon have the power to amplify their spending habits during the second quarter of 2017.

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Oil Cut Production May Extend Beyond 2017, Says Minister of Saudi
Khalid Al-Falih, oil minister of Saudi Arabia showed confidence with regards to the deal to limit output for crude oil and the oversupply reduction is going to be extended within 6 months or more.
Al-Falih further discussed during the Asia Oil and Gas Conference held in Kuala Lumpur last Monday that the growth of U.S shale production together with the closure of refinery maintenance have lessened the effect of cutback led by the Organization of Petroleum Exporting Countries along its associates. Moreover, manufacturers are driven enough to achieve their target to drop in their bloated gasoline supplies. Nevertheless, he believes the world oil supply could still realign and revive its former healthy state.
The increasing U.S production place worries towards OPEC and its allies as it fails to minimize the market glut and expansion of prices.
The gains of oil were erased since the agreement made in the previous year to curb output. The OPEC meeting held in Vienna attended by various nations further supported the 6-month deal for the extension which will start in January. It would be the first time that the minister of Saudi to propose the extension beyond 2017.

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China Trades Rose Less than expected; Large Trade Surplus

Both imports and exports of China soared in April but was below expectations of analysts since domestic and foreign demand as well as the commodity market slumped. Exports climbed by 8.0 percent compared to the previous year, lower the expected 10.4 percent while imports rose 11.9 percent. The overall trade surplus totaled to $38.05 billion for the month, higher than the anticipated $35.50 billion of analysts.
According to the Ministry of Commerce of China quarterly report last week, imports and exports will get better this year compared over the past two years. This excessive trade surplus of CHina has got the attention of the U.S. president Donald Trump who is pushing to lessen the trade gap between both nations.

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White House Fiscal Policies, Fed Asset Shrink could Trigger Rate Surge
The US economy’s long-term interest rates could be in for an upward pressure in the long haul as the country’s two most powerful economic bodies could possibly implement policies that could complement each other and raise interest rates in the future. As Trump is toying with the idea of spending and tax policies which could increase the country’s budget deficit, the Fed is now considering to cut down its holdings and bonds portfolio worth $4.5 trillion. This possible cut back in bonds could ultimately mean higher interest rates and higher yields for the US economy.

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Euro Fell Against the Dollar in the Post-French Election
The common European currency tumbled on Monday from its highs due to the triumph of centrist wing Emmanuel Macron. As investor received an estimate of 3% of profit after Macron won a couple of weeks ago.
The loss of the populist candidate, Marine Le Pen ended the worries of investors about the radical change subsequent to Brexit and Trump’s election last year in case that Le Pen won.
Based on opinion polls, Macron had a consistent point which is roughly 20 percent and his triumph on Sunday was a great surprise.
During the early trades of Asia, the euro surge reaching $1.1024 which is its highest rate since November 9. It further increased on its one-year high touching 124.58 yen versus its Japanese peer while hitting a five-month high jumping to 1.0886 against the Swiss franc.
However, amid morning session of Europe, it declined by 0.4 percent to $1.0953 vs the greens and 0.6 percent to 123.26 against the yen.
The political risk linked with Le Pen were already removed, the risk involves the pledge that France will be taken out from the European region. As the risk was eliminated, the focus turned to the economic fundamentals along with the monetary policy normalization of EU and U.S.

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New Economic Development Project Proposed by Owasso City
During the council held in early May, the staffs of Owasso City made a project proposal for a new Economic Development Strategic Planning intended for the community itself.
The proposal highlighted an agreement with the TadZo Consulting, known to be a consulting firm specializes in the economic development and site selection, they are part of the project in order to administer strategic services towards the city.
This is because the town has seen growing rapidly over the past few years and presumed further responsibility in developing its own economy. They gave importance on establishing defined objectives as well as devising policies effective for achieving their economic goals.
With the involvement of TadZo, it ensures that the town is able to execute such task through engaging, educating and empowering everyone concerned in the project through a definite method.
The economic developer would offer further assistance for the Owasso to catch the eye of its target audience through conducting comprehensive researches in identifying new community offerings.
The range of work is divided into three phases which include the current situation, strategic priorities, and strategic plan. This is done in order to have an efficient task in customizing the challenges, necessities, and opportunities for
The plan will undergo for a vote scheduled on Wednesday, July 5. In case the economic project will be approved, the cost will not exceed at $60,000 and would take six to eight working months which will start in July.

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Japan Exports Rallied for 5 Months
Exports from Japan notably increased for five consecutive months indicating a strong offshore demand and increased shipments of semiconductors and steels that boost economic growth. In April, exports climbed up to 7.5 percent compared with the previous year and lower than the median estimate of 7.8 percent yearly growth.
On the other hand, its trade surplus with the U.S. also decreased by 4.2 percent from a year ago while the exports jumped by 2.6 percent and continuously grows in the past three months because of high volume of car and auto parts shipments. An economist predicts that this upsurge will continue including domestic imports but the protectionist trade policies of Donald Trump raises concerns with Japan being an export-reliant country.

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Food Stamp Program in Peril from Trump’s Tax Cuts
The Supplemental Nutritional Assistance Program or SNAP is currently in peril as Trump’s budget plan could possibly slash over $190 billion from the said food stamp program. These cuts on SNAP will be representing a funding cut of over 29%, since the US government spent over $70 billion on the food stamp program last year. Prior to this particular cut, the Trump administration had recently proclaimed that it will be able to strike a budget balance within a decade without altering the US government’s biggest spending drivers, namely social security and medical assistance. Trump had previously stated that there will be no changes made to these factors during his campaign period.

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Debt Relief for Greece Still in Progress, No Deal Yet

Intercontinental lenders in Greece has a comprehensive meeting discussing debt sustainability on Monday. The meeting ended failing to reach an agreement about additional debt relief for Greece. Ministers disagreed to grant new loans to Athens but the head of Eurogroup, Jeroen Dijsselbloem says otherwise. He said that they are deliberating and making progress on the next disbursement targeting before summer to be able to pay due debts in July.

In their next meeting, they are optimistic that they will settle a deal in doling out bailout funds to the country on June 15. They are aiming for a more sustainable agreement which the International Monetary Fund commended and hoping that E.U. governments will support this deal. Although, the deal is not yet ready and will most likely be implemented once the current bailout program has ended next year.

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Canada And Brazil Set to Increase Oil Production
The Organization of the Petroleum Exporting Countries together with its partners are about to unveil further details regarding the extension of output cuts while the main focus of the oil markets is on the production growth of U.S. shale oil.
While experts are analyzing the statistics and predictions concerning the level of increase in U.S. manufacturing and its ability to disrupt the OPEC’s effort in correcting the market’s supply side.
Aside from the United States, another two major oil producers in the country are preparing to make an increase within this year namely Brazil and Canada. This rise in production was already anticipated by the intergovernmental organization, which would likely boost the US supply.
Based on the projections of IEA, the product volume will gain 5.6 million BPD in the year 2022. While the combined global growth estimates for the three countries will account for 60 percent.
The light tight oil (LTO) of US manufacturing is expected to have continuous expansion until 2022, acquiring 1.4 million BPD throughout the period, even when the oil cost did not break the US$60/barrel, according to 2017 oil report of IEA.
As stated to the predictions of the Paris-based agency, Canada would likely obtain a 900,000 bpd of output and on the other hand, the production in Brazil will get 1.1 million bpd in the next five years.

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UK Economy Faces Fastest Inflation Growth in 4 Years
British people could possibly face a period of living squeeze as the UK consumer prices are now recording its fastest growth ever within a 4-year period, in addition to the onslaught of the upcoming general elections as well as the Brexit negotiations. UK’s per annum inflation rate rose by 2.7% last month as compared to 2.3% last March, which is the fastest rate of inflation for the country since 2013. UK inflation rates started increasing immediately after the Brexit referendum, wherein the sterling pound exhibited a depreciation immediately after the referendum. This recent surge in UK inflation rates mirrors an international trend of sudden inflation growth after a long period of muted price action prompted several central banks to resort to more radical stimulus policies.

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U.S. Business Activity had a Slight Recovery, according to Markit
Two surveys conducted by American businesses this month and showed that the US economy continued to have a steady growth, despite the fact that manufacturers who served plenty of blue-collar jobs had constrained for the past months.
According to the readings of IHS Markit, the manufacturing PMI dropped to 52.5 in May versus the previous 52.8 which marked an eight-month low.
The manufacturers witnessed an increase that started in the latter part of 2016 and resumed earlier this year prior the recent ease up. While companies tend to slow down their production later on, in order to fend off too much inventory buildups.
Any reading that exceeds 50 and above would indicate that many executives are optimistic enough that business setting will improve.
Markit also mentioned that the services index of the United States climb higher reaching its 4-month high at 54, compared with the former 53.1.
The service sector of the economy takes up four out five workers in the US over different fields like banking, medical care, real estate, retail, and travel.
Apart from the slide of the manufacturing industry, the economy of U.S. shows a momentum recovery during the Q2 in spite of its lack of success in 2017.
Moreover, the Markethingych polled some economists to project the growth in the state, saying that it will surge up gaining 3% in the spring versus the 0.7% in the Q1 while there other predictions that it will expand to 4%.

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Trump Proposed 45 Percent Cut in Mexico Aid from U.S. Spending
On Tuesday, the U.S. spending reserved for foreign aid for Mexico and Central America are to be reduced as proposed by the President Donald Trump. The budget was proposed to trim as much as $3.6 trillion government spending in the following ten years for 2018 budget proposal.Although, this may not get a legislative approval as to how it is currently with other departments cuts especially in the State department.
Mexican aid worth $87.66 million will be lessened over 45 percent from the 2016 expenditure when Trump's proposal is approved. The budget cut will be transferred to the Mexican military including counterterrorism funds and other government programs. One of the officials commented that these deals are focused on bolstering border security and fight against corruption that may have hindered transnational criminal organizations. There will be a meeting to discuss the employment and security concerns in Central America in June.

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FOMC Minutes Signal Interest Rate Hike Next Month

Fed officials are now more than ready to raise its short-term interest rates after stating in their meeting last month that increasing its rates are now “more than appropriate”. The central bank also moved to begin cutting back on its Treasury and mortgage securities holdings, which is currently worth $4.5 trillion. The Fed also stated in its minutes that they will be allowing an accumulation of these said securities in the long run without having to reinvest its proceeds to other assets. The Fed’s next policy meeting is scheduled this coming June 13-14 and will be immediately followed by a press conference from Fed Chair Janet Yellen.