Issue 20| May 4, 2012

Spain, U.S. consumer spending drag down Wall Street
Lower than expected increases in U.S. consumer spending data combined with continued troubles in the Euro Zone have ended April on a down note for Wall Street. While some American companies have seen improvements, the S&P 500 was down .4 percent for April, posting its first monthly decline since November. Troubles with Spain and the rest of the Euro Zone have pushed to stall the American recovery.

Montenegro and Samoa accepted into World Trade Organization
The World Trade Organization announced that it has officially accepted Montenegro as its 154^th member on April 29^th. The Organization also announced its plans to officially accept Samoa as its 155^th member on May 10^th, 2012. Both countries have successfully completed the lengthy accession process and will become full and active members of the global trading community.

China announces active pursuit of balanced trade, increased imports
On Monday, April 30^th, the Chinese government announced its plans to pursue a more balanced trade of imports and exports. Much of this balancing will come from the reduction of tariffs and taxes on imports of advanced technology and equipment, components and parts, and resources and raw materials. The government hopes to stabilize its imports by encouraging trade with its partners and targeting a 10 percent annual growth in foreign trade this year.

LAX cargo and passenger traffic rise in first quarter
Los Angeles World Airports, overseer of Los Angeles International Airport, announced increases in both cargo and passenger traffic for the first quarter of 2012. The growth was driven by domestic travelers, as opposed to last year’s increase in international traffic. Cargo traffic was up 4.2 percent for the quarter, driven by mail and air freight.

Spain falls into recession
Problems in the Euro Zone continue for Spain which announced first quarter contraction—officially marking its fall into a recession. S&P downgrades to both Spain and its banks combined with a 25 percent unemployment rate paint a bleak picture for a Spanish recovery without European Central Bank funds. Austerity measures by the government, while helping to decrease costs, have also led to civil upheaval within the country.

European manufacturers struggle, Asian manufacturers recovering
Last month’s manufacturing numbers showed further slippage by European manufacturers, no doubt hurt by the continuing debt problems of its larger countries. Downturns in Italy and Spain are starting to show negative effects on stronger Euro Zone countries such as Germany and France. In contrast, Asian manufacturers are showing growth in the manufacturing sector, accompanied by U.S. and Indian manufacturing gains.

April posts best U.S. manufacturing numbers in more than a year
U.S. factories exceeded even the most optimistic expectations for April as they continued to churn out goods regardless of slowdowns in Asia and problems in Europe. Despite concerns of a global slowdown, there has been no drop off in foreign demand for U.S. manufactured goods. Increases have been driven by industrial goods and the auto industry.