The 2020 Davos economic conference will be a little more important to watch this year (as it was in 2017) due to the completed U.S. Trade Agreements (S Korea, Japan, Mexico, Canada, and China) and the predicted focus for the Trump administration to pivot from Asia to the EU and U.K. for the next critical phase of the ‘America-First’ global trade reset.

As a result of the recent U.K. election, pending Brexit, a favorable $7.5 billion WTO ruling and USTR Lighthizer’s new $2.4 billion EU targeted tariff program, the administration has significant advantages going into a trade discussion with the EU in 2020.
Team USA has the world’s strongest economy, the largest market, legally bolstered tariff authority and a quiver full of powerful economic arrows.
Meanwhile Team EU has: (1) the UK leaving; (2) severe drops in German industrial manufacturing; (3) a shrinking French economy; (4) yellow-vests in the streets; and (5) demands for greater economic autonomy from many key member states.
Overlay Germany, France and Italy large economy challenges such as: their promise to meet NATO obligations – and their attachment to the strangling Paris Climate Treaty, and the EU’s collective economic position is precarious at best.

WHITE HOUSE – Today, President Donald J. Trump announced the Presidential Delegation that will attend the World Economic Forum in Davos-Klosters, Switzerland, from January 20 to January 24, 2020.

The Honorable Steven Mnuchin, Secretary of the Treasury, will lead the delegation.

Members of the Presidential Delegation:

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White House Manufacturing and Trade Advisor Peter Navarro discusses the state of the U.S. economy heading into 2020. The Fox crew uses the strawman poll: “some people feel”, to create a narrative that cannot easily be countered; however, the reality in the economic stats cannot be refuted.
Main Street workers are confident; wages continue to increase; inflation is low –  employment is high, consumer spending is strong and the future looks bright.

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Ivanka Trump appears on Face the Nation to discuss the ongoing initiatives around paid family leave.  Ms. Brennan exhibits serious envy as she attempts to position Ms. Trump on the defensive.  However, Ivanka Trump is deeply informed on the nuances, details and challenges of the proposal and easily handles the narrative engineering effort of Brennan.
The family leave topic is a serious policy proposal that crosses into the larger America First economic need for a vibrant U.S. workforce.  Additionally, the topic of balance between family and work is critically important for middle-class and main street workers.  There are currently seven million jobs available and policies that help working families with children have long-term benefits beyond economics.

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Peter Navarro discusses the Trump administration’s trade agenda and some predictions for the state of the Main Street U.S. economy heading into 2020.
Navarro highlights the completed agreements with South Korea, Japan, China phase-1, and the U.S., Mexico, Canada USMCA agreement and what they can deliver next year.

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It really is quite remarkable that President Trump and the economic team could simultaneously diminish the interests of multinationals, focus on Main Street USA, and still create a situation where Wall Street stocks are growing.
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Several news articles are speculating that Secretary of State Mike Pompeo might run for the U.S. Senate Seat from Kansas [Here and Here].  If accurate, that move would seem to solve a few personnel issues in a rather diplomatic way.

Since the Sept./Oct. impeachment operation started there has been a considerable shift notable in the relationship between President Trump and Secretary Pompeo; especially after officials from within the Dept. of State came out strong against President Trump after CIA whistle-blower Eric Ciaramella lit the fuse…. and Pompeo was, well, essentially mute.
Getting rid of Pompeo for a Senate bid would be a win/win.
Absent the dangerous Siren voice from Nikki Haley :::spit-spit-spit::: moving Treasury Sec. Mnuchin (or similar) to State would be a good transition.  Mnuchin already knows the players and has contacts therein etc.  A Senate Foreign Relations Committee confirmation should be seamless, well, sans the predictable Mitt Romney grandstanding.
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The Dept. of Labor reveals [DATA HERE] initial claims for unemployment fell again last week, creating the following Reuters headline: “The number of Americans filing applications for unemployment benefits fell last week in a sign of ongoing labor market strength.”   Another strong labor report, followed by another media report outlining how the results beat all economic analyst expectations; a consistent theme throughout 2019.

White House – DRIVING A RECORD-SETTING ECONOMY: The booming economy and strong labor market allow Americans of all backgrounds to find work and succeed.
♦ The current labor market revival is not a continuation of past trends, but instead a direct result of President Trump’s pro-growth policies.

• Since President Trump was elected, more than 7 million jobs have been added to our economy – surpassing the Congressional Budget Office’s predictions by 5 million jobs.
• This year, the unemployment rate has fallen to 3.5%, its lowest level in 50 years.
• Unemployment for African Americans, Hispanic Americans, Asian Americans, veterans, individuals with disabilities, and those without a high school diploma have all reached record lows under President Trump.
• The President’s policies are bringing people off the sidelines and into the labor force.
• The prime age labor force has grown by 2.1 million under President Trump.
• The surge in labor demand has resulted in 7 million job openings, which outnumber job seekers by more than 1 million.
• Before President Trump took office, there had never been more recorded job openings than unemployed workers.

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Whooo-doggies, middle-class Americans spent more this holiday shopping season than any year before it.  Despite losing a week due to the late Thanksgiving holiday, total Christmas sales growth was +3.4 percent year-over-year.

(Reuters) […] The holiday shopping season is a crucial period for retailers and can account for up to 40% of annual sales. But this year, Thanksgiving, which traditionally starts the U.S. holiday shopping period, was on Nov. 28, nearly a week later than last year’s Nov. 22, leaving retailers with six fewer days to drive sales between Thanksgiving and Christmas.
E-commerce sales this year made up 14.6% of total retail and rose 18.8% from the 2018 period, according to Mastercard’s data tracking retail sales from Nov. 1 through Christmas Eve. Overall holiday retail sales, excluding autos, rose 3.4%.
“E-commerce sales hit a record high this year with more people doing their holiday shopping online,” said Steve Sadove, senior adviser for Mastercard.

Now watch the Reuters spin…
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Jumping Ju-Ju Bones, Santa cancelled the recession!!

According to the latest data stats from last weekend, Saturday holiday shopping in the U.S. was more than $34.4 billion in sales.  That’s the largest single day in the history of U.S. retail sales.  Higher wages, record employment, low inflation, consumer confidence and economic security means more disposable income… boy howdy, these numbers are huge.
Keep in mind U.S. retail sales account for two-thirds of U.S. GDP growth. Wow:

(MSM-Bloomberg) Holiday shopping set records over the weekend, with Super Saturday sales reaching $34.4 billion, the biggest single day in U.S. retail history, according to Customer Growth Partners.
“Paced by the ‘Big Four’ mega-retailers — Walmart, Amazon, Costco and Target — Super Saturday was boosted by the best traffic our team has seen in years,” said Craig Johnson, president of the retail research firm.

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Donald J Trump was the only candidate in 2016 who knew how to use China’s panda playbook against them.  Thus, when you plant your tree in another man’s orchard, don’t be surprised when he charges you to harvest your own apples…

BEIJING (Reuters) – China will lower import tariffs on over 850 products from Jan. 1, including frozen pork and frozen avocado, the finance ministry said.
It will also further lower import tariffs on some information technology products from July 1 next year, said the ministry, in a statement on its website. (link)

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As expected the House of Representatives has passed the USMCA trade agreement with an overwhelming 385 to 41 vote.  Pelosi’s political objective was to use USMCA to water down the toxic political environment created by her impeachment fiasco:

Also as expected, after passing the USMCA the House went into immediate recess for the Christmas holiday without any movement on the fraudulent impeachment articles.
In the time-frame between today and the return to the next congressional session in January, House lawyers will attempt to use the passage of the articles to support their background court cases: (1) McGahn forced deposition; (2) access to Mueller 6(e) grand jury information; and (3) possible access to Trump family financial records.
[PREDICTION for bookmark: Upon return in January Speaker Pelosi will refuse to allow impeached President Trump to deliver a State of the Union address in the House.]
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