Monthly payroll gains are averaging 162,000 this year, a step down from the 2016 pace of 187,000, following a below-forecast rise last month and downward revisions to March and April in Labor Department figures released Friday.
OIL DEMAND IN CONTRACTION
As oil prices sag despite OPEC’s renewed efforts to shore up world crude markets, Wall Street banks have more bad news for the producer group: the outlook for next year isn’t great either.
The bulls are back in charge after a second weekly advance pushed the S&P 500 Index to a fresh record. But look a little more closely and the signs of unease in the stock market are hard to ignore.
US GOVERNMENT DEBT CEILING
President Donald Trump’s chief economic adviser said Friday that Congress has no choice but to vote to raise the government’s borrowing authority, and that the White House will consider spending cuts or other riders to avert an unprecedented default.
EXXON, ROYAL DUTCH and CHEVRON are jumping into American shale with gusto, planning to spend a combined $10 billion this year, up from next to nothing only a few years ago.
The giants are gaining a foothold in West Texas with such projects as Bongo 76-43, a well which is being drilled 10,000 feet beneath the table-flat, sage-scented desert, and which then extends horizontally for a mile, blasting through rock to capture light crude from the sprawling Permian Basin.
Ford Motor Co. and Fiat Chrysler Automobiles NV led major automakers posting steeper U.S. sales declines than analysts projected, putting the industry on course for a fourth consecutive month of shrinking demand.
Euro-area factories expanded output at the fastest pace since 2011 as the currency bloc’s economy continued to gather momentum.
A gauge of manufacturing activity rose to 56.7 in April from 56.2 the previous month, IHS Markit reported on Tuesday. An April 21 preliminary estimate was for an increase to 56.8.
With the European Central Bank showing little hurry to end extraordinary stimulus, global trade strengthening and political risk receding as centrist Emmanuel Macron looks poised to become
the next French president, the currency bloc’s recovery is set to broaden.
The fact of the matter, when you sort out the conflicting forces is that the US Dollar is putting a significant bottom in place and that it is only a matter of time before interest rate differentials take over and sort out the real trends from the noise.
Oil barely budged on Friday as OPEC agreed to extend oil supply restraint until the year-end.
OPEC’s in a quagmire however, foreshadowing disappointment for oil bulls counting on the group and its allies extending output curbs by nine months, according to Goldman Sachs Group Inc.
Saudi Arabia’s proposal to prolong cuts from their current expiration on March 31 through to the end of 2018 hasn’t been easily endorsed by Russia, which provides the second-largest share of reductions..
WHAT A WEEK !
In the same very week, US Congress passed the biggest Overhaul to US taxation in 30 years, lowering corporate taxes from 35 % to 20 %, OPEC agreed on extending their output restraint until the end of the year, special counsellor Mueller indicted Lieutenant General Flynn in the Russiangate affair and Korea fired another intercontinental ballistic missile, demonstrating that the US territory was within range of its nuclear and ballistic programs.