Yikes, and a simultaneous ‘Wow’.  French President Emmanuel Macron has officially shut down Paris this weekend in his attempt to stop the “Yellow Vest” populist uprising against current political policies.
The primary tourist venues are all closed; shops ordered to close; windows boarded up; 8,000 police units dispatched to Paris and 89,000 deployed throughout the country.

PARIS (Reuters) – Paris was in lockdown early on Saturday with thousands of French security forces braced to meet renewed rioting by “yellow vest” protesters in the capital and other cities in a fourth weekend of confrontation over living costs.
The Eiffel Tower and other tourist landmarks were shut, shops were boarded up to avoid looting and street furniture removed to avoid metal bars from being used as projectiles. About 89,000 police were deployed across the country.

(more…)

The Bureau of Labor Statistics (BLS) has released the latest jobs report for November.  The U.S. economy created an additional 155,000 jobs.  The unemployment rate remains 3.7%.  The annualized rate of wage growth is 3.1%.   All good MAGAnomic news.
It’s a little funny to see the pontificating naysayers worry over results that are structurally solid and fundamentally strong.  If you had told those same knuckleheads a year ago that wages would be growing 3.1% they would have been stunned at your audacious optimism.

Things are going swimmingly. Exactly as predicted.  Wall Street (paper economy) is reacting based on an entirely new economic landscape.  Main Street USA (read economy), the Blue/White collar middle-class, is dancing and singing carols en-route to buy the fancier set of Christmas decor this year… Who’s better than our economy?  Nobody, baby, no-body…  Throw them ju-ju bones out the windows.  Here’s the data:
BLS Report: Total nonfarm payroll employment increased by 155,000 in November, compared with an average monthly gain of 209,000 over the prior 12 months. In November, job gains occurred in health care, in manufacturing, and in transportation and warehousing. (See table B-1.)
(more…)

Background first:  There’s a massive shifting of manufacturing in the auto-industry and President Donald Trump is at the center of it.  The USMCA trade agreement is the newly constructed Trump fulcrum underneath the structure of all auto manufacturing.  POTUS Trump has shifted the location of this fulcrum through auto-tariffs; and the final determinations therein are still ongoing.
On Tuesday, POTUS invited the EU auto executives to the White House.  No doubt Trump, the executive businessman, was seeking to understand their position on how the EU crew will comply with a 75% USMCA rule of origin…. and feel-them-out over what leverage he could apply (tariff threshold) to enhance their manufacturing relocation decision.

Example: With tariff at 2.5% they won’t move anything just pay the duty; however at 10% or higher they might move engine building or transmission building to North America etc to get inside the rules of origin threshold.  Trump was likely exploring the Mercedes, VW and BMW perspectives while Angela Merkel was gnashing her teeth… “curse you villian”.
President/Businessman Trump is setting up a future for high-wage U.S. manufacturing workers.  POTUS is in apex predator mode… the combination of USMCA and tariff possibilities are like blood in the water surrounding: Dr. Dieter Zetsche (Mercedes), Dr. Herbert Diess (VW), and Dr. Nicholas Peter (BMW); while Trump asks questions.
Mike Manley the new CEO of Fiat Chrysler wants nothing to do with that scenario.  He ain’t about to get in the water.  Swimming with Trump? Oh, hell to the no:
(more…)

OMB Director Mick Mulvaney has been wearing two hats as both head of the Office of Management and Budgets and head of the Consumer Financial Protection Bureau (CFPB).
Democrats went bananas in 2017 when Mulvaney took over the source of their financial black-mail and fundraising scheme constructed by Elizabeth Warren.
Today the senate voted to confirm Mulvaney’s protege’ Kathy Kraninger to replace him.
Democrats are still going bananas.

WASHINGTON (Reuters) – The U.S. Senate voted 50-49 on Thursday to confirm President Donald Trump’s nominee to lead the U.S. consumer watchdog despite opposition from Democrats and consumer groups who say she is unqualified.
Kathy Kraninger will serve as director of the Consumer Financial Protection Bureau (CFPB), replacing acting chief Mick Mulvaney, after Trump signs a declaration approving her five-year term.

(more…)

If the latest reports are accurate, this is *not* good.  Remember, there are trillions at stake and Wall Street has spent hundreds-of-million on behalf of multinational interests lobbying to keep the current status with China unchanged.
There’s a deep financial motive within this dynamic to stop President Trump from resetting the trade relationship with China. Additionally, Canada is aligned in self-interest with Wall Street and Trump’s adversaries toward the same goal.

Apparently National Security Adviser John Bolton was aware the CFO of Huawei was going to be arrested in Canada.  However, President Trump was kept out of the loop.

WASHINGTON (Reuters) – U.S. President Donald Trump’s national security adviser, John Bolton, said in an interview with National Public Radio that he knew in advance about the arrest of a top executive of the Chinese technology giant Huawei Technologies Co Ltd [HWT.UL], according to an NPR reporter on Thursday.
Bolton said he did not know if the president was aware in advance of the arrest of Meng Wanzhou in Canada on Saturday, the day Trump struck a 90-day truce on trade in a meeting with Chinese President Xi Jinping in Argentina, NPR reporter Steve Inskeep said in a tweet.

(more…)

White House trade adviser Peter Navarro appears on Fox Business to discuss the possibility of trade deals between the U.S. and China.  Navarro explains the Buenos Aires dinner meeting and how Chairman Xi outlined his position on three buckets of U.S. concerns.
Charles Payne is going bananas because he doesn’t understand what happens in the space between two different sets of economic policy benefactors:  Wall Street and Main Street.
Wall Street is going to lose ground; period.  Their financial interests are dependent on retaining the status-quo multinational/global economic systems.  President Trump is supporting Main Street over the interests of Wall Street.  Stocks that are centered on U.S. blue-collar companies, domestic benefits, will grow; all other multinational stocks will not.

Treasury Secretary Steven Mnuchin appears with Fox Business Maria Bartiromo for an extended interview on multiple current economic aspects. Economic Security is National Security. There are three segments.
Secretary Mnuchin discusses: the agreement between President Trump and Chairman Xi for immediate shifts within the U.S-China trade relationship, and the anticipated immediate deliverables; the USMCA agreement; the auto industry and the overall economy.

Within the dynamic of the U.S -vs- China trade confrontation, CTH noted the Wall Street (globalist) multinationals would likely go bananas.  There are trillions at stake and President Trump is confronting three decades of financial influence from the corporate lobbyists.   To the angst of Wall Street, POTUS Trump tweets the dynamic:
President Trump has been brutally consistent for more than three decades on his intent and purpose with the Chinese.  President Trump is the first U.S. President to understand how the red dragon hides behind the panda mask.
(more…)

Breaking overnight the French government is attempting to stem the growing civil unrest by announcing they will suspend the plan to implement the upcoming fuel tax.  However, the Yellow Vest protests have grown to personify much more than a new fuel tax.
The protests have morphed into a much larger anger about the influence of a disconnected elite political class, personified by President Emmanuel Macron, over the lives of the ordinary French citizen.  The fuel tax was the last straw, the underlying issues remain.

(Via Associated Press) PARIS (AP) — French Prime Minister Edouard Philippe is to announce a suspension of fuel tax hikes, a major U-turn in an effort to appease a protest movement that has radicalized, French media reported Tuesday.
Both Le Monde newspaper and France Info radio said the planned increase, which has provoked riots, will be suspended for several months. Philippe is also expected to announce other measures aimed at easing tensions, just three weeks after claiming that the government would not change course and remained determined to help wean French consumers off polluting fossils fuels.

(more…)

The Institute for Supply Management (ISM) released their manufacturing review today highlighting continued expansion of the underlying economy.  The results today from within the overall manufacturing industry emphasize the 27th consecutive month of growth…. and a future-view that seems to be predicting much more.  Much more!

ISM Release […] Manufacturing expanded in November, as the PMI^® registered 59.3 percent, an increase of 1.6 percentage points from the October reading of 57.7 percent. “This indicates growth in manufacturing for the 27th consecutive month, led by strong new orders, production output and continued slowing supplier delivery performance,” says Fiore. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting. (more)

Okay CTH, so take the business wonk-speak out of this – what does it mean?
Here’s the summary: Manufacturers are increasing new orders (making more stuff). Production outputs and employment within the manufacturing sector are still growing. Suppliers are still having a tough time filling material orders, but they are finding new and innovative ways to speed up shipments of raw material. However, despite the speed (increased efficiency in delivering the raw material), the backlog of requests is still growing (new orders exceed supply chain). Customer inventories are too low (hence the backlog for new stuff). Inflationary pressure still exists, but the rate of price growth is slowing (increased supplier efficiency). Manufacturing exports and imports are growing. The economy is expanding.
(more…)