Earlier today President Trump and First Lady Melania Trump welcomed the President of the Republic of Ecuador and Mrs. Rocio Gonzales De Moreno to the White House.
Ecuador is a key country for stability in central America.  A key topic of discussion between the two leaders will be Venezuela.  Ecuador is suffering firsthand the effects of Nicolas Maduro and his dictatorship in Venezuela with waves of economic migrants from Venezuela arriving through Colombia to Ecuador.   The refugee crisis represents a fiscal strain and also a security threat. There are 400,000 Venezuela refugees in Ecuador.

Counter-narcotics and a trade agreement are also a priority for this meeting. The United States and Ecuador are very close to a free trade agreement. USTR Robert Lighthizer has held a successful round-one negotiation for trade and investment with the Ecuadorian Commerce Ministry; and a second round is likely very soon.

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Ecuador and the United States are working toward an energy and infrastructure framework agreement under America Crece.  Brazil is likely to join in March and they will join Panama, Chile, Argentina, Jamaica, Colombia, El Salvador, and hopefully Ecuador.

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U.S. President Donald Trump, Japanese Prime Minister Shinzo Abe and India Prime Minister Narendra Modi form a trilateral group within President Trump’s Indo-Pacific economic strategy.  Essentially a geopolitical alliance based on economic interests.
PM Abe and PM Modi have visited the U.S. several times since the alliance was formed. President Trump has also visited Japan several times but not visited India. (There has been a sticky issue with Modi’s protectionist trade tariffs.) However, today the White House announced President Trump & First Lady Melania will be traveling to India:

[White House] – President Donald J. Trump and First Lady Melania Trump will visit India on February 24 – 25, 2020. The President and The First Lady will travel to New Delhi and Ahmedabad, which is in Prime Minister Modi’s home state of Gujarat and played such an important role in Mahatma Gandhi’s life and leadership of the Indian independence movement.

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Earlier today President Trump hosted a business luncheon with U.S. governors to discuss economic expansion and administration policy efforts to assist the states.
[Video and Transcript Below]

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[Transcript] – THE PRESIDENT: Wow. Thank you. Thank you. (Applause.) Thank you very much. Thank you very much. Thank you. Thank you. It’s a great honor to have you at the White House, a very special place. Beautiful and so meaningful in so many ways. And our country has never done better. You’re all doing really well. Every state is doing well. I can say most every state in the room today is setting records. And we’d like to think that the federal government has been helping you a lot.
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White House trade and manufacturing policy advisor Peter Navarro appears on Fox News to discuss the strong January jobs report of 225,000 gains.  Navarro highlights something few pay attention to.  The Trump administration not only focuses on the macro policy principles to create the economic environment for job growth, but President Trump also personally engages on specific company, state, and regional efforts.
The engagement of a U.S. president to discuss and influence U.S. jobs on a company by company basis, and get down in the details of deals, is a completely unique political standard in the modern era.  President Trump is very uniquely fighting for each job.

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It is very disappointing to hear vulture capitalist Jeff Bezos having a disinterest in protecting American intellectual property rights, and instead choosing to accept/allow cheap Chinese, knock-off goods as the backbone of his Amazon business model.
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National Economic Council Director Larry Kudlow appears on Fox Business to discuss the excellent January jobs report.  Job gains and wage increases are all going in the right direction…. And Stuart Varney immediately asks: “do we need more immigration”?

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BLS Wage growth chart below [Table B3].
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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]
The YouTube ID of tGJ9NwFmrEA?start=286 is invalid.
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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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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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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:

(data link)

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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