By Alan Murray and Tom Huddleston Jr.
May 22, 2017

Good morning.

The biggest story of the weekend was President Trump’s first foreign trip, highlighted by his much-anticipated speech on Islam in front of Muslim leaders in Saudi Arabia. The president dialed down the intense rhetoric of his campaign with regard to “radical Islamic terrorism” (a phrase he avoided on Sunday) while calling on Muslim leaders around the world to cooperate in battling terrorism.

The speech earned Trump relatively positive headlines and it came amid news of a $110 billion U.S.-Saudi Arabia arms deal as well as further Saudi deals and investments involving U.S. companies such as Boeing, Exxon Mobil, General Electric, and Lockheed Martin. The deals spanned multiple industries—with energy and defense in the spotlight—and they are worth hundreds of billions of dollars in total, with the potential to create jobs in both countries.

Meanwhile, the White House will continue to push its agenda this week as it rolls out a budget proposal for 2018 aimed at increasing spending on the military and border security while cutting funds for social programs like Medicaid. Treasury Secretary Steve Mnuchin will testify about the budget plan this week in front of Congress, while lawmakers will also be holding a hearing to look further at a the Trump tax reform plan that would make big cuts to business tax rates.

Also, the nonpartisan Congressional Budget Office is expected to release its score this week for the health care bill that passed the House a few weeks ago.

More news below.

 

 

Tom Huddleston, Jr.
@tjhuddle
tom.huddleston@fortune.com

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