The Bureau of Labor Statistics (BLS) releases the January jobs and labor report and the results are MAGAnificent.  225,000 jobs gained in January; non-supervisory wage growth against exceeds supervisory at 3.2%; and 185,000 workers re-entered the workforce.

The 225,000 new jobs far exceeded expectations. Economists were looking for 160,000. Also the November report was revised up by 5,000 (from +256,000 to +261,000) and the change for December was revised up by 2,000 from (+145,000 to +147,000). With these revisions, employment gains in November and December combined were 7,000 higher than previously reported.
Keep in mind these excellent jobs results are without the domestic investment expected to be produced by the USMCA manufacturing realignment.  As goods producing companies start evaluating the new total production costs, the investment shift toward North America will likely keep a tailwind on our economic growth and jobs.
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Against the backdrop of massively consequential events, Treasury Secretary Steven Mnuchin had an important interview today with Maria Bartiromo.
The interview covers multiple topics to include: China dropping tariffs; the overall status of the U.S. economy; potential economic impacts from the Coronavirus; an important legislative infrastructure program, and much more…  However, there’s a statement within the interview that subtle but highly important.  [Listen Carefully at 04:46]
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Long-term CTH readers may remember a key point, since we initially outlined the consequences of President Trump’s policy objectives in 2016, that everyone should carefully consider the scale of President Trump’s opposition.
We encapsulated by saying: “there are trillions at stake“.
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President Trump will deliver his third State of the Union address tonight to a joint session of Congress.  The anticipated start time is 9:00pm Eastern.  Livestream links below:
UPDATE: Video Added

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Even before the Coronavirus surfaced in China there was lower manufacturing factory activity within the Chinese economy.  The necessary response within China to control the spread of the Coronavirus has been to shut down most commerce.  Factories, schools &  businesses throughout China are empty as various containment measures are underway.

The direct result of this response is a severe drop in economic activity.  Many analysts are speculating about how this cessation of production might impact supply chains that use Chinese component goods.  Obviously, with manufacturing facilities closed any downstream multinational company relying on those products may have supply issues as soon as existing inventories deplete.
There is a natural lag before the manufacturing void hits the consumer market; however, the financial markets are forward looking and they are already reflecting severe drops in stock prices, depending on the dependency/exposure of the company and/or sector.

BEIJING/SHANGHAI (Reuters) – Chinese stock and commodity markets fell heavily on Monday as the death toll from a coronavirus epidemic in China rose to 361 and investors retreated into safe-haven assets in the first trading session after an extended Lunar New Year break.

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During a background call with media a Senior Administration Official gives a preview of what to expect and the five points President Trump will focus upon during his remarks to congress: (1) Blue collar boom; (2) Working families; (3) Healthcare affordability; (4) Immigration enforcement; (5) National security.

[Transcript] –  […] SENIOR ADMINISTRATION OFFICIAL: Hi, everyone. So, I’ll give you a topline, issues that will be talked about in the speech, a few key insights, talk about tone, and then take your questions.

I know there’s a lot going on, so I’ll try to be as brief as I can.

The topline: President Trump is looking forward to delivering his third State of the Union Address and his fourth address to a Joint Session of Congress next Tuesday.

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As we start to head deeper into the 2020 presidential election year, there is some very good news for President Trump about how Americans rate their satisfaction; and some very bad news for Democrats who are trying to impeach this success.
According to the latest data from Gallup: “Americans’ average satisfaction rating for the 27 issues Gallup has tracked consistently since 2001 is now 47%. This is up three points from a year ago and is the highest since the January 2005 poll.”
In the measures of satisfaction covering the first three years of President Trump in office there are some remarkable increases in key measures:

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As President Trump prepares to deliver his State of the Union speech to congress, these results will likely provide some measurable data for him to highlight.  Satisfaction with the U.S. economy has jumped a whopping 22 percent since President Trump took office.
As noted above, the economy, national security, military and state of race relations all provide double-digit increases in American satisfaction during President Trump’s first three years in office.
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Earlier today President Trump traveled to Dana Incorporated, a manufacturing facility for axel housings and machined products in Warren, Michigan, to celebrate the signing of the USMCA trade agreement with American workers.  [Video and Transcript Below]

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[Transcript] – THE PRESIDENT: Okay, let’s get back to work. Come on. (Applause.) I love that song, but every once in a while, we have to get back to work. (Laughter.)

So I am very honored to be at Dana Incorporated, a tremendous company, a plant in Warren, Michigan. We’re very proud of Michigan. (Applause.) Dana has been around — I also like it because we happened to win here, so I was very happy with that. (Applause.) Very happy with that.

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The Bureau of Economic Analysis released their first estimate of Q4 GDP growth today.  The BEA first estimate is 2.1 percent growth for the fourth quarter and 2.3 percent growth for the year. [Data Here]   The U.S. economy is now approximately $21.7 trillion.
Commerce Secretary Wilbur Ross appeared on Fox Business with Maria Bartiromo to discuss the ‘big picture’ outlook for the U.S. economy.  Strong employment, strong wage growth, strong consumer spending, and now the USMCA passage delivering the backdrop for domestic capital investment.   Good interview:

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The headwinds by Boeing and the GM strike had some negative impact.  However, 2019 was dominated by Wall Street multinational investors taking the ‘wait-n-see’ position on the China/Asia -vs- USMCA trade dynamic (manufacturing investment) overall.
The USMCA passage gives certainty to North American manufacturing investment.  The China ‘phase-one’ agreement allows time for re-positioning, and/or time to extract profits from prior investment.  A corporate decision to manufacture in China is now based on an entirely different set of considerations than 24 months ago…. ‘phase-one’ buys time but doesn’t reduce the long-term risk.  North America is now the place for investment stability.
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Earlier today President Trump signed the historic USMCA trade agreement, making good on his 2016 campaign promise to replace the NAFTA trade agreement with a more balanced and reciprocal trade deal for the American people.  USMCA replaces the NAFTA agreement that resulted in the loss of millions of American jobs impacting hundreds of manufacturing communities across our county.
Amid the key changes is a closing of a loophole allowing Mexico and Canada to assemble components imported from Asia. The new agreement bolsters American workers and American manufacturers with content rules requiring origination of material in North America. [Video and Transcript Below]

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[Transcript] – THE PRESIDENT: Well, thank you very much. That’s beautiful music. Such talented musicians, and we appreciate it very much.
We have a tremendous — (applause) — we have a tremendous list of people here today. In fact, so long that if I announced every name, we’d be here for about three hours. (Laughter.) And we have to get back to business. Everybody does.
Please sit down. Please.
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Reuters is well known for promoting a globalist, open border, multicultural agenda.  So it doesn’t come as a surprise to see Reuters targeting Mexican President Andres Manuel Lopez-Obrador (AMLO) for blocking central-American migrants; and rebuking AMLO for working with President Donald Trump to stop mass illegal migration.
It is too early to tell whether Mexico is genuine in their commitment to stop the highly organized and funded traveling caravans, which often contain thousands of marching border-crossers; however, the economic leverage, tariffs President Trump threatened for non compliance during 2019, was not simply an idle threat.  It appears AMLO has realized that President Trump doesn’t bluff.

MEXICO CITY (Reuters) – Mexican President Andres Manuel Lopez Obrador faces growing criticism he is doing U.S. President Donald Trump’s bidding after erecting a “wall” of security forces who clashed with Central American migrants near the Guatemala border this week.
Mexico, under the threat of punitive U.S. tariffs, has bowed to Trump’s demands to contain mass movements of migrants traveling through the country toward the U.S. border.

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