United States Adds Almost 300,000 Jobs

jobs-on-the-riseIn the month of May alone, the United States reported the growth of just under 300,000 new jobs, 280,000 to be precise. This month has been the biggest increase in job growth thus far in 2015, gradually helping the unemployment rate drop since its peak in 2010. According to the Chief Economist at Bank of the West in San Francisco, Scott Anderson explained, “Job growth roared back to life in May, combined payroll gains were revised upward for the previous two months, wages rose 2.3 percent from a year earlier, and long-term unemployment fell to 2.5 million, down from a peak of 6.8 million in 2010.”

With such sharp declines in the unemployment rate, the economy is expected to grow about 2.5% in 2015, which means more jobs opening up. Even though the unemployment rate is staying steady at around 5.5%, economists and other financial advisors are not too concerned since they understand that Americans who are unemployed are searching for a long term career path rather then the first job they get offered. This phenomenon is keeping the rate steady, but is expected to drop shortly once these American’s find the job of their choice.

Economists from across the country are explaining how the current trend is encouraging and even strong. Trending in this direction is important since the individuals unemployed are going to fill out these new job openings which should help the nation reach full employment.

According to the Boston Globe, “Since the end of the winter, the economy has grown moderately, according to a recent Fed survey. Despite steady job gains, consumer spending which accounts for more than two-thirds of US economic activity, has been lackluster, economists said. A strong dollar is hurting the nation’s exports, since foreign buyers must now to pay more for American goods.”

Hopefully, the nation can continue this surge and drive the unemployment rate lower. For more information and news on the finance industry, please visit Araceli Roiz‘s official website.

India Builds First Smart City With Population Rise

smart-cityWith India’s population rising drastically, it is tough to accommodate such a large population, the Indian government is now creating its first man made Smart city which can help stabilize the Urban population.

With the urban population in India expected to rise upwards of 400 million people, up to 820 million in population by 2050. This rise in population is the reason why they are building this man made city on the Sabarmati river in Gujarat. After the first estimates, the cost of this city will reach upwards of $1 trillion US dollars according to KPMG. Reuters explained, “The plan is also crucial to Modi’s ambition of attracting investment while providing jobs for the million or more Indians who join the workforce every month.” Not only would they develop more housing and available real estate, the mini city which would be self sustaining city which would end up creating so many job opportunities.

With the US dollar to rupee ratio changing so drastically, currently at a 62:1 ratio (usually around 50:1), the cost for this is fairly lowered due to the price per dollar is so low. Prime Minister Narendra Modi spoke after his latest election about how he expects to have nearly 100 smart cities across India by the city 2022. Jumping ahead and creating these cities before the expected increase in popular is a great way the government will save money and also begin to boost the economy forward in a direction which is much needed.

For more financial news and updates, please visit Araceli Roiz‘s official website.

Greek Financial Issues

Greek_EconomyIn early April, Greek Finance Minister, Yanis Varoufakis smoothed over some confidence inquiries into the country’s ability to pay off its debt. Many have been fearing default as the deadline for a large loan payment nears, which the government owed to International Monetary Fund. Citing that Greece plans to “meet all obligations to its creditors” Varoufakis aimed to give a boost to the peace of mind that many lenders have lost over the years.

Plans for the Greek Finance Department to reform their common practices and repair relationships with their lenders are already underway. This year to date, Greece has been borrowing from state entities and has not accepted bailout funding this August 2014. Due this Thursday, a 450 million euro loan is coming to maturity and due to the IMF, the source of some skepticism regarding Greek economic strength.

All indications are pointing to Greece making its payment by the due date. After a meeting between Varoufakis and the IMF Managing Director, Christine Lagarde cited that their conversation went well and all was on schedule.

Currently a number of banks who led the bailout effort have frozen their funds to support the country until their government rolls out a new financial reform package that meets the standard of the lenders. To ensure that money will not be lost, lenders turned down the initial proposal from the Greeks.

The funding freeze puts pressure on the country to find monetary ways of keeping their heads above water while reforms are drafted and reviewed. The government has assured that no pension or wage cuts will be present across the economic struggle and not at risk. Approval of reforms will lead to the freedom of 7.2 billion euros from its bailout agreement as well as 1.9 billion made in profits through Greek bonds from the European Central Bank.

For more financial updates and news please visit, Araceli Roiz‘s official website.

Lower Benefits, Lower Unemployment Rate

average-monthly-job-growthDuring the depression of 2008 the state of California approved funding to those who were faced with hard times and help them get through a few rough years until they bounced back on their feet. After three years of helping out the community, Democrats believed it was time to start decreasing unemployment benefits since many of the unemployed were citizens from the 2008 crash.

According to the National Desert News, “The average period of unemployment benefit coverage dropped from 53 weeks of coverage to 25 weeks after the federal benefits program was cut.” By cutting the benefit coverage in half, the hopes were the people collecting unemployment would be enticed to look for employment. When this was implemented in 2011 the number of unemployed drastically fell, and number of jobs by Californian residents grew.

Since unemployment rates vary from state to state, California was able to make this change even though it did not sit well with the residents collecting unemployment since the average around the nation was just around 37 weeks of coverage. The democrats did not propose the change of benefits to strong arm their residents or make their lives that much more difficult, but to pick up and strengthen the economy of California. The more jobs that would be created, the better the economy would be from facing another disaster similar to the one faced in 2008.

Even though people may be upset about the drop in benefits, they cannot argue with the results. “Average employment growth was about 25 percent higher in 2014 than in the best of several preceding years.” Employment rates are rising and states taking this approach nationwide can see similar results. In 2014 alone, 1.8 million new jobs were created.

For more information about Araceli, please head over to her official website.

International Oil Surplus Spurs Business

oil-surplusWorldwide oil production will not scale back output, as the price of oil continues to drop. OPEC, announced late last year that their production would continue on their current pace, coupling that with the current emergence of shale-oil in the Permian basin, and we have an oil surplus. With the price-per-barrel lingering around $50 of late, look for an uptick in mergers and acquisitions in the oil industry around the world.

Industry experts deduce their predictions from analysis and discussions with market decision makers and those in charge of major players in the oil world. Current cost and cash-flow pressures on companies, had led to evaluation of strategic movement into dealmaking. Late last year, announcements had begun with the Halliburton-Baker Hughes merger. This deal is set to be complete this coming summer. Also last year, a deal was made for   a Nigerian oil block and pipeline by Royal Dutch Shell to an association led by Taleveras group. Predictions are stating that in the next 6-12 months we may see the most M&A activity in sector.

Firms that are currently weathering the surplus storm, will look to take advantage of their continued cash-flow and leverage their position to acquire companies which seek a lifeboat. Firms that operate internationally will be on the prowl to enhance their portfolios while more local, national firms may be road blocked by their home-country’s agenda.

Keep in mind that with the state of the market sector, those who are in good financial standing have less cash on hand than usual. Any offer or strategic movement will be heavily thought over and carefully planned out. With decreased cash companies will not be letting a penny go to waste.

In all, analysts are stating that deal activity will benefit international and national oil health. This is an industry that has seen slow M&A activity compared to other sectors. New deals may spark a healthier market.
For more please visit GulfBusiness article and also visit: Araceli Roiz