Former White House Chief Strategist Steve Bannon joins Sunday Morning Futures to discuss rising support for democracy around the world and connects the movement to the impeachment effort against President Trump.  Big Stuff. Big Ugly type stuff.
A fired-up Bannon looks at the Senate impeachment trial as the “trial of the century”, where the professional political class gets brought into the trial and the framework becomes an expose’ on how President Trump is willing to take down the system.

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The BLS released the December jobs report earlier today showing a stable 145,000 new job gains last month, and the unemployment rate remaining a very low 3.5%.
During an interview discussing the health of the U.S. economy in 2020 with National Economic Council Director Larry Kudlow, the DOW Jones industrial average crossed 29,000 for the first time in history.

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Earlier today Secretary of State Mike Pompeo and Secretary of Treasury Steven Mnuchin held a press conference in the White House to announce new sanctions against Iran. The secretaries also took questions from the press pool. [Video and Transcript Below]

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[Transcript] – SECRETARY MNUCHIN: Good morning, everybody. Thank you for being here today. I’d just like to make a brief comment before we talk about Iran sanctions. I’m sure everybody saw that the DOW hit 29,000. The President’s economic plans are clearly working. We’re looking forward to the China signing, USMCA, and a very strong economy this year.
As previously announced by the President, we are announcing additional sanctions against the Iranian regime as a result of the attack on U.S. and allied troops.
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Earlier today Senator Mike “H1B” Lee called the national security briefing “lame” and “inadequate”, saying the military and intelligence leaders ran from hard questions at the briefing.  Well, Senator James Lankford calls those accusations by Senator Lee demonstrably false and untrue.
Senator Lankford noted the briefing included examples of 90 incidents of Iranian proxy attacks against the U.S. and coalition forces in the last month-and-a-half; ultimately leading to the killing of an American. It was after the final attack when POTUS Trump ordered the elimination of Qassim Soleimani.

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One of the key sectors gaining benefit from the USMCA trade agreement is the auto sector.  Rules on steel and aluminum smelting/origination, and rules on part origination from North America are key aspects to the trade agreement that shifts focus from the import of Asian manufactured parts for assembly to manufacturing in North America.
Essentially, seventy-five percent of the component parts for the auto industry must be manufactured in North America.  This shift directly puts U.S. auto-workers at the forefront for job gains & stops the process of using manufactured parts from China, Asia or the EU.
The goal of the agreement was/is to make manufacturing investment in North America the main consideration for auto-manufacturers who want access to the U.S. market.  Today, as a direct result of future investment considerations, General Motors and Ford unexpectedly surprise 1,500 auto-workers with the announcement their jobs have gone from part-time to full-time status.  Great news for these families:

DETROIT – General Motors’ worker Adarrey “Ace” Humphrey was blindsided Sunday. That’s when his life changed.

Humphrey, 27, has been a part-time temporary worker at GM’s Flint Assembly in Michigan for the last three years. On Sunday morning, he and about 250 of his co-workers crowded into UAW Local 598’s union hall. Most thought they were there for a routine meeting.

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A new ADP Payroll Report shows job gains of 202,000 from November to December 2019 far surpassing expectations. The increase was the largest gain since April ’19: “largest gain since April, driven mainly by professional and business services. Job creation was strong across companies of all sizes, led predominantly by mid-sized companies.”

(Reuters) – U.S. private payrolls increased by the most in eight months in December, pointing to sustained labor market strength though job gains last month were likely flattered by a seasonal quirk.
The ADP National Employment Report on Wednesday showed private payrolls jumped by 202,000 jobs last month, the largest gain since April, after an upwardly revised 124,000 rise in November.

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UPDATE: Response from President Trump

There is a big difference between “rockets” being fired, and ground based “missiles” being launched from inside Iran.  Stay aware initial reports are often wrong or misleading.
Breaking Reports are confirming that several “short range” and/or “cruise” missiles are being fired into “multiple” U.S. bases in Iraq.  U.S. officials are confirming missiles from Iran have targeted Al Asad Air Base in western Iraq (Western Anbar Desert), and U.S. forces in Erbil – northern Iraq.

CNN is reporting President Trump was briefed on the “rocket” attacks, according to White House press secretary Stephanie Grisham. “We are aware of the reports of attacks on US facilities in Iraq. The President has been briefed and is monitoring the situation closely and consulting with his national security team,” Grisham said.

(VIA ABC) – Multiple missiles have been launched into Iraq from Iran targeting American bases.
“This morning, courageous fighters of the IRGC’s Air Force launched a successful operation called Operation Martyr Soleimani, with the code ‘Oh Zahra’ by firing tens of ground-to-ground missiles at the base of the terrorist and invasive US forces,” the country’s state-run news outlet ISNA reported.

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Earlier today U.S. Defense Secretary Mark Esper held a press briefing. Video below. When the transcript is available it will be posted HERE.

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The Bureau of Economic Analysis (BEA) has released Q4 (November) import/export data showing a considerable drop in the U.S. trade deficit. [Release Here]  Exports increased approximately .7 percent ($208.6 billion) while imports dropped one percent ($251.7 billion.  Lowering the overall trade deficit to $43.1 billion.

While the pundits are surprised at the strong result, it should not come as a surprise to many CTH readers.  During Q2 (June) and Q3 (July, Aug, Sept) the rate of GDP growth was impacted -in part- by inflated U.S. purchases as companies bought holiday merchandise earlier than normal.  This was an effort to avoid looming tariffs, and as a result companies increased their overall inventory.  We predicted Q4 purchases (Oct, Nov, Dec) would be lower specifically because of this backlog of retail inventory.
With the massively successful holiday season now over, those inventories have sold.  Specifically because the value of imports are deducted from the GDP calculations, there will likely be a much stronger Q4 GDP growth resulting from less import activity.
The Wall Street financial pundits are too focused on the multinational side of the ledger; and they simultaneously don’t review data from a Main Street perspective; therefore they don’t see -or pretend not to see- the common sense equation staring them in the face.
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Any headline that uses the phrase “France Warns” immediately requires a background review to understand the big picture driving French fears.
Just like Canadian Prime Minister Justin Trudeau thinking he could outwit President Trump’s policies on NAFTA trade (he failed), Trudeau’s bestie, French President Emmanuel Macron, has stupidly exhibited similar shortsightedness.  In the case of both leaders their weasel moves have put their nations’ into a precarious economic position.
To consider the future for France, it would be wise to remember last year when President Trump arrived to attend the G-7 in Biarritz, France, President Macron was waiting at the Hotel du Palais to ambush Trump for an unscheduled luncheon (pictured below):

This was just one example in a series of scripted weasel-moves played by Macron in an attempt to pontificate his importance for the international audience.  Another example from the same event was Macron inviting the Iranian foreign Minister to the G7 for sideline meetings unrelated to the topics being discussed in Biarritz.
In an effort to create leverage against the U.S. position, President Macron never discussed his Iranian invitation -in advance- with the U.S. delegation.  It did not go over well.
The EU, and specifically France, have a dependence on foreign energy sources as a result of their ridiculous climate policies and narrow thinking.  In essence the EU wants to do business and receive oil from Iran; however, U.S. sanctions against Iran forbid those business deals.  Ergo Macron attempted to inject influence and position his interests.
As stated, the ambush approach did not go well, but POTUS played it cool.
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