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Economy

Import, Export, Logistics concept - Map global partner connection of Container Cargo freight ship for Logistic Import Export background (Photo: AdobeStock/Elements of this image furnished by NASA)

Import, Export, Logistics concept – Map global partner connection of Container Cargo freight ship for Logistic Import Export background (Photo: AdobeStock/Elements of this image furnished by NASA)

The U.S. trade deficit again narrowed sharply in May, shrinking $3.0 billion from $46.1 to $43.1 billion, a big net-positive for 2Q gross domestic product (GDP). This is the most narrow reading for the trade gap in 19 months.

The data for 2Q reflects the impact of the trade reciprocity initiative from the Trump Administration, and it clearly indicates at least some degree of short-term success.

In April, the U.S. trade deficit also narrowed sharply to $46.2 billion in April, another big net-positive for 2Q GDP. The U.S. Census Bureau and the U.S. Bureau of Economic Analysis (BEA) said the closing gap was driven by a surge in exports and May was an even better mix of good news for trade deficit hawks.

In May, exports were $215.3 billion, $4.1 billion more than exports in April, while imports were $258.4 billion, just $1.1 billion more than April imports.

Overall, the narrowing in the U.S. trade deficit in May was fueled by a decrease in the goods deficit of $2.6 billion to $65.8 billion and an increase in the services surplus of $0.5 billion to $22.7 billion.

Year-to-date, the goods and services deficit increased $17.9 billion, or 7.9%, over the same period in 2017. Exports increased by $84.5 billion, or 8.8%. Imports increased $102.4 billion or 8.6%.

The 3-month average goods and services deficit narrowed by $4.2 billion to $45.4 billion. Average exports rose $3.1 billion to $212.4 billion in May, while average imports fell $1.1 billion to $257.9 billion.

Year-over-year, the average goods and services deficit increased $0.2 billion from the three months ending in May 2017, highlighting what is clearly a recent change. Average exports increased $19.9 billion from May 2017, while average imports increased $20.1 billion from May 2017.

Mark Mobius, the famed investor and founder of Mobius Capital Partners LLP, said recently in an interview with CNBC that he agrees “completely” with the actions President Trump is taken to force concessions and a reduction in the U.S. trade deficit.

“I agree with him completely,” Mr. Mobius said, much to the surprise of the liberal commentators. “The U.S. has been taken for a ride — let’s face it — over the last 20 or 30 years. It’s time to start saying, ‘Look, there has to be some reciprocity between these two countries, because it’s just crazy to have this kind of deficit.’”

Politically-Sensitive Trade Deficits

The deficit with member nations in the Organization of the Petroleum Exporting Countries (OPEC) cartel decreased $3.1 billion to $0.2 billion in May, as exports increased $1.3 billion to $5.8 billion and imports decreased $1.9 billion to $6.0 billion.

The deficit with the European Union (EU) fell $1.3 billion to $11.9 billion in May, as exports increased $0.2 billion to $27.5 billion and imports decreased $1.2 billion to $39.3 billion.

The deficit with China rose $1.2 billion to $32.0 billion in May. Exports increased $0.6 billion to $11.7 billion and imports increased $1.8 billion to $43.7 billion.

The U.S. trade deficit again narrowed sharply

Politics

President Donald J. Trump, left, and Supreme Court Justice Anthony Kennedy participate in a public swearing-in ceremony for Justice Neil Gorsuch in the Rose Garden of the White House White House in Washington, Monday, April 10, 2017.

President Donald J. Trump, left, and Supreme Court Justice Anthony Kennedy participate in a public swearing-in ceremony for Justice Neil Gorsuch in the Rose Garden of the White House White House in Washington, Monday, April 10, 2017.

President Donald Trump has narrowed down his shortlist for nominees to replace Anthony Kennedy on the U.S. Supreme Court, plus a last-minute addition. Justice Kennedy announced he will retire from the U.S. Supreme Court, effective July 31, 2018.

The three previously known potential nominees on the shortlist are as follows:

Amy Coney Barrett of Indiana, U.S. Court of Appeals for the Seventh Circuit

Brett Kavanaugh of Maryland, U.S. Court of Appeals for the District of Columbia Circuit

Raymond Kethledge of Michigan, U.S. Court of Appeals for the Sixth Circuit

Vice President Mike Pence also met with the three judges on the shortlist, and will sit down with President Trump in Bedminster, New Jersey to compare notes and discuss the decision.

But People’s Pundit Daily (PPD) has learned about a fourth rollout package that has been created for Judge Thomas Hardiman.

Judge Hardiman is on the U.S. Court of Appeals for the Third Circuit in Pennsylvania and is undoubtedly a pick that would please conservatives. Some conservative groups are also pushing for President Trump to announce the nominee on Friday, rather than on Monday.

President Donald Trump has narrowed down his

Economy

Job seekers adjust their paperwork as they wait in line to attend a job fair in New York February 28, 2013. (Photo: Reuters)

Job seekers adjust their paperwork as they wait in line to attend a job fair in New York February 28, 2013. (Photo: Reuters)

The U.S. economy added 213,000 jobs in June and the civilian labor force grew by 601,000, causing the unemployment rate to rise 0.2% to 4.0%. But the unemployment rate for Hispanic Americans fell to the lowest ever recorded, 4.6%.

The labor force participation rate also rose by 0.2 percentage points to 62.9.

“Six-hundred thousand people re-entering the workforce is very positive. It shows that people who had previously ‘stopped looking’ have been paying attention to the stories of how tight the job market is and that there are more job openings than people unemployed,” Timothy Anderson, analyst at TJM Investments said.

“The June jobs report shows these people have confidence of finding a job, which is very consistent with recent surveys showing sharply increasing optimism among those in the lower income bracket.”

With the number of people looking for work sharply increasing, wage pressure eased back for the month.

Manufacturing added a very solid 36,000 jobs, with most coming from durable goods. Construction continued the upward trend up in June (+13,000) and has increased by 282,000 over the year.

“The monthly gain in manufacturing more than doubled the forecast,” Mr. Anderson added. “The total number of people employed in manufacturing is the highest its been in 9 1/2 years.”

Mining employment also continued on an upward trend in June (+5,000). The industry has added 95,000 jobs since its low point in October 2016.

Employment in health care rose by 25,000 in June and has increased by 309,000 over the year. Hospitals added 11,000 jobs over the month, and employment in ambulatory health care services continued to trend up (+14,000)

In June, average hourly earnings for private nonfarm payrolls rose by 5 cents to $26.98. For the year, average hourly earnings have increased by 72 cents, or 2.7%. Average hourly earnings of private-sector production and nonsupervisory employees increased by 4 cents to $22.62 in June.

The number of jobs created for April was revised up from +159,000 to +175,000, and May was revised up from +223,000 to +244,000. With these revisions, employment gains in April and May combined were 37,000 more than previously reported.

Nonfarm payrolls have increased 3,216,000 since President Donald J. Trump took office.

The U.S. economy added 213,000 jobs in

Politics

Senator Jon Tester, D-Mont., speaks to reporters on Capitol Hill in Washington, U.S., February 1, 2017. (Photo: Reuters)

Senator Jon Tester, D-Mont., speaks to reporters on Capitol Hill in Washington, U.S., February 1, 2017. (Photo: Reuters)

President Donald Trump targeted Senator Jon Tester, D-Mt., at a rally in Great Falls, saying voters “deserve a Senator who votes like he’s from Montana.” He visited the conservative state to support the vulnerable incumbent’s opponent Matt Rosendale, the Republican nominee for U.S. Senate.

“You don’t just deserve a Senator who talks like he’s from Montana. You deserve a Senator who votes like he’s from Montana.”

With the announced retirement of Justice Anthony Kennedy, the president’s nominee to the U.S. Supreme Court has become an issue in the 2018 midterm elections.

“Jon Tester voted against Neil Gorsuch, a great judge who supports fully our Constitution,” he said. “Yet, Jon Tester voted for liberal Obama judges who tried to take away your Second Amendment because Jon Tester doesn’t share your values.”

Democrats are using the issue to rally their base in support of Roe v. Wade (1973). President Trump and Republicans are using it to defeat Senator Tester and other vulnerable Red State Democrats.

“Jon Tester voted against a bill to stop late-term abortions,” he said. “Jon Tester voted No on Kate’s Law.”

Kate’s Law was named after Kate Steinle of San Francisco, who was shot down by multiple felon and illegal immigrant Jose Inez Garcia-Zarate, an illegal immigrant. While he was acquitted in a highly-political local prosecution case, the Justice Department (DOJ) secured a federal indictment against him.

According to the federal indictment, on July 1, 2015, Garcia-Zarate, a 47 year-old citizen of Mexico “possessed a semi-automatic pistol and multiple rounds of ammunition in violation of 18 U.S.C. § 922(g)(1) (felon in possession of a firearm) and 18 U.S.C. § 922(g)(5) (unlawfully present alien in possession of a firearm).”

He also brought up the growing number of elected officials in the Democratic Party calling to abolish Immigration and Customs Enforcement (ICE), which recent polling indicates is vastly unpopular with American voters. Only 25% of likely voters favored abolishing ICE, while the majority (55%) are opposed and 20% are undecided.

In fact, a plurality said the U.S. government is “not aggressive enough” deporting those who are in this country illegally.

“We protect ICE,” the president said. “They us and we protect them.”

President Trump made the decision to target the vulnerable incumbent after he leveled unsubstantiated allegations against Admiral Ronny Jackson, MD, who withdrew as the nominee for Secretary of the Department of Veterans Affairs (VA) amid the attacks.

They eventually collapsed after the fact.

The president previously called on Senator Tester to resign, and in Montana he told voters that he “showed his true colors in his shameless attack” against Admiral Jackson.

“They could’ve ruined a lesser man.”

President Donald Trump targeted Senator Jon Tester,

Politics

Environmental Protection Agency Administrator Scott Pruitt speaks during an interview for Reuters at his office in Washington, U.S., July 10, 2017. (Photo: Reuters)

Environmental Protection Agency Administrator Scott Pruitt speaks during an interview for Reuters at his office in Washington, U.S., July 10, 2017. (Photo: Reuters)

Scott Pruitt resigned as the head of the Environmental Protection Agency (EPA) amid controversy over his leadership, President Donald Trump confirmed the resignation on Twitter Thursday.

“I have accepted the resignation of Scott Pruitt as the Administrator of the Environmental Protection Agency,” President Trump tweeted. “Within the Agency Scott has done an outstanding job, and I will always be thankful to him for this.”

He also said Deputy Administrator Andrew Wheeler will take over the duties of Administrator on Monday.

“The Senate confirmed Deputy at EPA, Andrew Wheeler, will… on Monday assume duties as the acting Administrator of the EPA,” he added. “I have no doubt that Andy will continue on with our great and lasting EPA agenda. We have made tremendous progress and the future of the EPA is very bright!”

The resignation comes less than a week after The New York Times reported that the EPA’s chief ethics official, Kevin Minoli, had been pushing for independent investigations. In total, he is facing 13 federal inquiries into his spending and management practices.

Though the allegations of excess certainly warrant investigation, it is also true that the media put Mr. Pruitt under rather unprecedented scrutiny for ideological reasons. Supporters of Mr. Pruitt’s and the president would not be surprised to learn Obama Administration officials operated the same culture of extravagance, without receiving such scrutiny.

“It is extremely difficult for me to cease serving you in this role first because I count it a blessing to be serving you in any capacity, but also, because of the transformative work that is occurring,” Mr. Pruitt, the former attorney general for Oklahoma wrote in his resignation letter to President Trump.

“However, the unrelenting attacks on me personally [and] my family, are unprecedented and have taken a sizable toll on all of us.”

As People’s Pundit Daily (PPD) previously reported, Mr. Pruitt and his family have received “unprecedented” death threats ranging from social media, email, postcard and phone calls.

According to a report from August 2017, which covers the period from October 2016 to August 2017, the EPA Office of Inspector General detailed 13 death threats. Several of them were deemed serious enough to refer to the Justice Department (DOJ).

“Pruitt, I’m gonna find you and put a bullet between your eyes,” one of the more serious threats flagged by investigators stated. “Don’t think I’m joking. I’m planning this.”

The report also reveals that the administrator’s daughter received a death threat on Facebook.

Scott Pruitt resigned as the head of

Polls

U.S. Immigration and Customs Enforcement (ICE) and Removal Operations (ERO) agents arrest an illegal alien sex offender in Long Island, New York as part of Operation SOAR. (Photo: Courtesy of ICE)

U.S. Immigration and Customs Enforcement (ICE) and Removal Operations (ERO) agents arrest an illegal alien sex offender in Long Island, New York as part of Operation SOAR. (Photo: Courtesy of ICE)

Voters overwhelmingly oppose Democrats’ calls to abolish ICE, or Immigration and Customs Enforcement (ICE), and more say the U.S. is “not aggressive enough” deporting those who are in this country illegally.

A new Rasmussen Reports national telephone and online survey finds that only 25% of likely voters favor abolishing ICE, while the majority (55%) are opposed. Twenty percent (20%) are undecided.

The growing number of elected officials in the Democratic Party calling for abolishing ICE are even at odds with a plurality of voters in their own party. While a sizable 36% of Democrats favor the idea to abolish ICE, 20% are unsure and 44% are opposed.

Those calls are far outside of the mainstream.

Among voters not affiliated with either party, 53% are opposed, just 20% favor the idea and 26% are unsure. Only 18% of Republicans agree, while 69% do not. White and black voters are equally opposed (56%), though slightly fewer black voters (22%) favor the idea than whites (24%). Voters of other races aren’t keen on the idea, either.

Only 33% favor the idea to abolish ICE, while 49% are unopposed.

That’s undoubtedly due to voters thinking the federal government needs to be even more aggressive deporting illegal immigrants.

When asked if the U.S. government was too aggressive or not aggressive enough in deporting those who are in this country illegally, 46% say the U.S. is “not aggressive enough.” Only 33% say the U.S. government is “too aggressive” and another 13% say “the number of deportations is about right.”

The survey of 1,000 likely voters was conducted on June 27-28, 2018 by Rasmussen Reports. The margin of sampling error is +/- 3 percentage points with a 95% level of confidence.

Voters overwhelmingly oppose Democrats' calls to abolish

Politics

Bill Shine, left, who had worked at Fox News for 20 years. Donald Trump, right, on the South Lawn of the White House in Washington, U.S., April 28, 2017.

Bill Shine, left, who had worked at Fox News for 20 years. Donald Trump, right, on the South Lawn of the White House in Washington, U.S., April 28, 2017.

President Donald Trump announced Thursday that former Fox News co-president Bill Shine will join the White House communications team. As People’s Pundit Daily (PPD) previously reported, Fox’s White House correspondent John Roberts tweeted that Mr. Shine “is in final talks” for a job and an announcement “could be soon.”

Mr. Shine, who worked at Fox News for roughly 20 years before he resigned as co-president, will be Assistant to the President and Deputy Chief of Staff for Communications. Sean Hannity said before he left that his departure would be “the total end of the FNC.”

“He brings over two decades of television programming, communications, and management experience to the role,” the White House said in a statement.

An internal memo sent out by Rupert Murdoch announced Suzanne Scott would become president of programming and Jay Wallace would become president of news, making the leadership far more liberal than ever before in the history of the channel.

The resignation came after Mr. Murdoch’s sons James and Lachlan — the CEO and co-chairman, respectively, of network parent company 21st Century Fox — refused to release a statement in support of him. Competitors criticized his handling of the slew of sexual harassment cases that plagued FNC, which transpired before similar cases at other outlets.

The Murdoch sons are also liberal.

President Donald Trump announced Thursday that former

Economy

A waitress serves a steak and fried shrimp combo plate to a customer at Norms Diner on La Cienega Boulevard in Los Angeles, California May 20, 2015. (Photo: Reuters)

A waitress serves a steak and fried shrimp combo plate to a customer at Norms Diner on La Cienega Boulevard in Los Angeles, California May 20, 2015. (Photo: Reuters)

The Institute for Supply Management (ISM) Non-Manufacturing Index (NMI) came in at 59.1% in June, indicting the U.S. service sector grew at a stronger than expected pace. The month of June represents growth in the sector for the 101st consecutive month.

According to the NMI, 17 non-manufacturing industries reported growth,” Anthony Nieves, Chair of the ISM Non-Manufacturing Business Survey Committee, said. “Respondents continue to be optimistic about business conditions and the overall economy.”

“There is a continuing concern relating to tariffs, capacity constraints and delivery.”

The NMI overall rose 0.5 percentage point from the reading of 58.6% in May.The Non-Manufacturing Business Activity Index increased to 63.9%, a gain of 2.6% from the May reading of 61.3%. The New Orders Index registered 63.2%, a gain of 2.7% from the reading of 60.5%. The Employment Index fell 0.5% in June to 53.6% from the May reading of 54.1%.

The Prices Index decreased by 3.6% from the May reading of 64.3% to 60.7%, indicating that prices increased in June for the 28th consecutive month.

WHAT RESPONDENTS ARE SAYING

  • “Tariffs, freight [issues] and labor shortages continue to have an inflationary influence on costs.” (Construction)
  • “Positive outlook — business activity on the uptick.” (Finance & Insurance)
  • “Shortage of IV solutions and drugs continues to be an issue.” (Health Care & Social Assistance)
  • “Crude prices are causing concern, as it is a driver in newsprint inks. Tariffs on paper and aluminum are causing apprehension about future pricing. Suppliers are posturing and threatening price increases, and we are doing our best to reject increases.” (Information)
  • “Trade tariffs are creating price uncertainty.” (Management of Companies & Support Services)
  • “Domestically, we are still experiencing a shortage of transportation providers that is getting worse each month when retiring drivers or drivers moving into other opportunities are not being replaced. Internationally, there is a shortage of flat racks [that] has caused late shipments. The tariffs on steel and aluminum have also had some negative effects on our supply of material, but we have applied for exemptions.” (Other Services)
  • “Oil price stabilization has led to increased hiring in some sectors of the industry, as well as a small increase in major capital projects for offshore drilling companies. Oil-field services hiring continues to be strong, as does hiring and capital spending in the petrochemical and downstream sectors of the industry.” (Professional, Scientific & Technical Services)
  • “Commodity prices [are] increasing due to demand and transportation costs.” (Public Administration)
  • “Sales have remained strong and are continuing to increase. Currently, we are on pace for a top-line record. The bottom line is more flat, as we have been fighting commodity cost increases and exchange-rate variances throughout the first half of 2018.” (Retail Trade)
  • “Wire sales improve as contractors ramp up with the rise in copper. We’re seeing ongoing price increases in nearly all commodities due to higher freight expenses by manufacturers and shortage of truck drivers.” (Wholesale Trade)

The ISM Non-Manufacturing Index (NMI) came in

Economy

A "Now Hiring" sign hangs on the door to the Urban Outfitters store at Quincy Market in Boston, Massachusetts September 5, 2014. (Photo: Reuters)

A “Now Hiring” sign hangs on the door to the Urban Outfitters store at Quincy Market in Boston, Massachusetts September 5, 2014. (Photo: Reuters)

The ADP National Employment report for June finds U.S. private sector job creation “continues to march towards full employment,” with a skills-gap caveat. U.S. nonfarm private sector employment rose by 177,000 on the month, slightly less than the 180,000 consensus.

“The labor market continues to march towards full employment,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “Healthcare led job growth once again and trade rebounded nicely.”

Trade added 24,000 and the service-providing sector added 148,000, overall.

Medium-sized businesses with 50 to 499 employees led the gain with 80,000, while small businesses with 1 to 49 employees added 29,000. Large businesses with 500 employees or more added 69,000.

“Business’ number one problem is finding qualified workers,” Mark Zandi, chief economist of Moody’s Analytics, said. “At the current pace of job growth, if sustained, this problem is set to get much worse. These labor shortages will only intensify across all industries and company sizes.”

That may explain the lighter than average 12,000-job gain in manufacturing for June. Construction added 13,000 and natural resources and mining added 5,000.

The ADP National Employment report for June

Economy

The U.S. Labor Department said weekly jobless claims rose more than expected, but insured unemployment is the lowest since December 1973. Initial jobless claims rose 3,000 to 231,000 for the week ending June 30.

The 4-week moving average was 224,500, an increase of 2,250 from the previous week’s revised average. The previous week’s average was revised up by 250 from 222,000 to 222,250.

The gains will not impact the Employment Situation jobs report Friday, which ended the period in June 16.

The advance seasonally adjusted insured unemployment rate was 1.2 percent for the week ending June 23, unchanged from the previous week’s unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending June 23 was 1,739,000, an increase of 32,000 from the previous week’s revised level. The previous week’s level was revised up 2,000 from 1,705,000 to 1,707,000.

The 4-week moving average was 1,718,250, a decrease of 1,750 from the previous week’s revised average. This is the lowest level for this average since December 8, 1973 when it was 1,715,500. The previous week’s average was revised up by 500 from 1,719,500 to 1,720,000.

Extended Benefits were payable in the Virgin Islands during the week ending June 16.

The highest insured unemployment rates in the week ending June 16 were in the Virgin Islands (2.7), Alaska (2.2), Puerto Rico (2.1), New Jersey (2.0), California (1.8), Connecticut (1.8), Pennsylvania (1.8), Illinois (1.6), Nevada (1.4), and Rhode Island (1.4).

The largest increases in initial claims for the week ending June 23 were in New Jersey (+5,436), California (+5,420), Maryland (+2,763), Kentucky (+1,968), and New York (+1,897), while the largest decreases were in Pennsylvania (-1,672), Puerto Rico (-1,234), Wisconsin (-899), Texas (-693), and Ohio (-669).

The U.S. Labor Department said weekly jobless

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