Against the intense leverage being applied by President Trump, last week Beijing doubled-down and threatened punishment against any company that would leave China and begin manufacturing elsewhere.
The totalitarian response was predictable and expected.  However, also predictable was the corporate response to the threats.
As we shared:  “China is counting on prior western investment being so significant that a corporation will be reluctant to withdraw. However, in this outlook Beijing seriously underestimates the free market because communist controlled China doesn’t understand the action of a inherently free market.
The first loss is the best loss. If walking away from an investment provides more financial security and stability than attempting to retain a grip on a tenuous position – corporations will walk away.” (more)
Now today – “Nintendo Moves Some Switch Production Out of China”:

TOKYO— Nintendo Co. is shifting some production of its Switch videogame console to Southeast Asia from China to limit the impact of possible U.S. tariffs on Chinese-made electronics, said people who work on Nintendo’s supply chain.
It is another example of manufacturers adapting to the tariff threat. Taiwan’s Foxconn Technology Group said Tuesday that it was ready to move assembly of Apple Inc.’s iPhones out of China if necessary, and Japan’s Sharp Corp. , which is controlled by Foxconn, said last week that it planned to move production of personal computers to Taiwan or Vietnam.

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President Donald Trump and First Lady Melania Trump welcome Polish President Andrzej Duda and his wife Agata Kornhauser-Duda to the White House.  The relationship between the U.S. and Poland is one of the cornerstones of a newly invigorated united alliance in Europe.
President Trump visited Warsaw, Poland, (July, 2017) where he delivered a speech vowing to confront “new forms of aggression” targeting Western values. The President and First Lady received a very enthusiastic reception during their visit to Poland.
Ahead of a bilateral meeting between the two leaders they held a press availability in the oval office.  [Video and transcript]

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•President Donald Trump says he is seriously considering a return visit to Poland this fall. •The United States will send 2,000 more service members to Poland as he announces a broadening security and economic alliance. •The Polish government will pay for the infrastructure to support additional troops. •Poland will purchase 32 U.S. made F-35 fighter jets. •The U.S. and Poland have agreed to $8 Billion sales of liquefied natural gas.
[Transcript] PRESIDENT TRUMP: Thank you very much. We have the very great privilege of having the President of Poland with us and his very powerful and lovely wife. Thank you very much. It’s great to be with you again.
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On Tuesday afternoon President Trump was asked a question by media about Kim Jong Un.  President Trump responded to the question, and simultaneously delivered an openly coded message to Chinese Chairman Xi Jinping that few would understand:

[Transcript] Q (Inaudible) about your meeting with Kim Jong Un while you’re in South Korea? Are there discussions underway?
THE PRESIDENT: So, I see that. And I just received a beautiful letter from Kim Jong Un, and I think the relationship is very well. But I appreciated the letter. I saw the information about the CIA, with respect to his brother, or half-brother. And I would tell him that would not happen under my auspices, that’s for sure. I wouldn’t let that happen under my auspices.
But I just received a beautiful letter from Kim Jong Un. I can’t show you the letter, obviously, but it was a very personal, very warm, very nice letter. I appreciate it.

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Yesterday Secretary of State Mike Pompeo held a press conference to answer questions about the U.S-Mexicos migration and border security agreement. After reviewing some info from today, I’m inserting a graphic into Pompeo’s transcribed responses to better understand the “45 days” aspect. [Video and Transcript]

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[Transcript – (emphasis mine)] SECRETARY POMPEO: A couple things this afternoon. First, I’ll give some remarks later this week that are consistent with what we’ve been working on for my entire time here in the Indo-Pacific.
I’ll be speaking to a group of Indian business leaders in preparation for the trip that I’ll take in a couple weeks where I’ll be visiting India, an important part of President Trump’s strategy in the Indo-Pacific. And I’m looking forward to the opportunity both to give the set of remarks about how it is our relationship is so closely tied economically, but also importantly the things that the United States and India can continue to do to build out what is an incredibly important relationship for both countries.
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There’s always a larger geopolitical dynamic when you assess the economic alliances that President Trump puts together…. Always and underlying plan…  Sometimes it just takes time to surface.
As we have noted, even going back to 2017, Japanese Prime Minister Shinzo Abe always appeared to be the fulcrum for President Trump’s Indo-Pacific strategy.  

Remember the trip to Japan as honored guests of Emperor Naruhito and Empress Masako at the Imperial Palace?  Remember last month’s (May 25th) unprecedented reception with the titans of Japanese business?  Remember the private reception set up by a very nervous U.S. Ambassador William F. Hagerty?  A reception with the most influential business CEO’s in Japan and Southeast Asia? 
Well…

TOKYO (Reuters) – Japan’s Tokyo Electron, the world’s No.3 supplier of semiconductor manufacturing equipment, will not supply to Chinese clients blacklisted by Washington, a senior company executive told Reuters.
The decision shows how Washington’s effort to bar sales of technology to Chinese firms, including Huawei Technologies, is ensnaring non-American firms that are not obliged to follow U.S. law.

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White House Council of Economic Advisers Chairman Kevin Hassett squares-off against Fox Business crew on trade tensions with China, the state of the U.S. economy, the outlook for Federal Reserve policy and his upcoming departure from the White House.
Steve Forbes is disconnected from the reality of what happens with tariffs on China. Beijing first responds to off-set the tariff by lowering the value of their currency, and/or subsidizing the targeted products. There is no price increase to U.S. consumers (check inflation).

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Apparently President Trump was watching the segment, and had a word for Maria Bartiromo, Dagan McDowell, Steve Forbes and Stuart Varney:
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Do not overlook the importance of President Donald Trump publicly calling out the largest DC lobbyist group, and epicenter of Big Club corruption earlier today.  During a widely discussed CNBC interview today President Trump landed two torpedoes directly below the waterline on the U.S. Chamber of Commerce.

The U.S. CoC is the largest influence purchaser in Washington DC, and the benefactor of dozens of the highest politicians in both the House and Senate.  The Wall Street funded CoC, and their President Tom Donohue, was already frustrated at their inability to influence President Trump and White House economic/trade policy.  President Trump is now confronting their self-serving politics directly.
The CoC is the lead U.S. member of the multinational ‘Big Club’, and has driven policies directly against Main Street USA for three decades.  Until now no modern U.S. President has ever been willing, or fearless enough, to take them on…. ‘until now’.  A few days ago the U.S. CoC threatened to sue President Trump over countervailing tariffs.
Today, President Trump hit back hard; this is an excellent development.
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Earlier today President Trump welcomed Indy-500 winning team Penske to the White House, along with winning driver Simon Pagenaud.  [Video and Transcript]

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[Transcript] THE PRESIDENT: Hi, everybody. (Applause.) Congratulations. (Applause.)
Thank you very much. It’s a great honor to introduce the winner of the Indianapolis 500, Simon Pagenaud. And he is an incredible racer. I happened to be watching that one because my friend is somewhat involved with racing. As you know, Roger Penske is — there’s never been anybody like him, I can really say.
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The Job Openings and Labor Turnover Summary, aka “JOLTS report“, lags behind monthly employment reports by a month as the ‘hires‘ and ‘quits‘ are contrast against available job openings.
In the latest JOLTS report we find evidence why the May employment numbers were less than expected. The data shows the economy is expanding; businesses are hiring; and the reason for lower new hires has nothing to do with an economic slow-down. In essence, the labor market is tight, very tight, and Main Street businesses are having a hard time finding qualified workers.

According to the BLS stats overall job hiring in April was 5.9 million. That’s the largest number of people hired in the history of the JOLTS record-keeping (started in 2000). There are 7.45 million current job openings and only 5.82 million workers identified as unemployed. That means there are 1.63 million more jobs than available workers.
This is a clear indication expanding economic conditions and a near ‘full-employment‘ position for the overall labor market. Additionally the quits rate is 2.3 percent, reflecting that workers are: (a) being recruited away from current employment to jump to other businesses; and (b) worker are confident about getting a job, and jumping into new jobs for higher wages/benefits. As a result, the strong ‘quits’ rate has historically been a precursor KPI for future wage growth stats.
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Earlier this morning President Donald Trump called in to CNBC to discuss a variety of subjects including: the ongoing trade negotiations with China; the threat of tariffs on Mexico over illegal immigration; the federal reserve; the status of the economy; the duplicity of the U.S. Chamber of Commerce; collusion by democrats; the upcoming G20 summit in Japan, and much, much, more.
During the interview President Trump directly calls out the U.S. Chamber of Commerce for their anti-American position and self-interested advocacy for Wall Street multinational corporations. Additionally, President Trump pushes back against the claim that tariffs lead to higher U.S. prices, citing examples of China subsidizing their exports and low U.S. inflation.  Must Watch:

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(LOL… POTUS Trump chomping-at-the-bit to get tariffs on the EU.)

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