Attendees for the Oval office meeting include: President Donald J. Trump; Mick Mulvaney, Acting White House Chief of Staff; John Bolton, National Security Advisor; Larry Kudlow, Director of the National Economic Council; Peter Navarro, Assistant to the President for Trade & Manufacturing Policy; Matt Pottinger, Deputy Assistant to the President and Senior Director for Asian Affairs; Clete Willems, Deputy Assistant to the President and Deputy Director of the National Economic Council.
U.S. Administration team members: Secretary Mike Pompeo, Department of State; Secretary Steven Mnuchin, Department of the Treasury; Secretary Wilbur Ross, Department of Commerce; Ambassador Bob Lighthizer, Office of the U.S. Trade Representative
Chinese Delegation: Liu He, Member of the Political Bureau of the Central Committee of the Communist Party of China and Vice Premier of the People’s Republic of China; Wang Shouwen, Vice Minister of Commerce of the People’s Republic of China.

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[Transcript] 3:43 P.M. EST – THE PRESIDENT: Thank you very much. It’s a great honor to have the Vice Premier of China with us, and also the Vice Minister of Trade of China. We have had long discussions. This has been going on for quite some time. It will be, by far, if it happens, the biggest deal ever made — not only the biggest trade deal ever made. It will be the biggest trade deal by far, but it’ll also be the biggest deal ever made. The two largest countries doing a trade deal. There won’t be anything that will match that. And we’ll see what happens.
We’ve done very well. We’ve had a very, very strong relationship, as my relationship is with President Xi.
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Giddy up.  Two days of intense trade discussions begin today in the Eisenhower building led by U.S. Trade Representative Robert Lighthizer and his Chinese counterpart Vice Premier Liu He. The stakes are high as the deadline for an agreement is March 2nd.
Ambassador Lighthizer is joined by Commerce Secretary Wilbur Ross, Treasury Secretary Steven Mnuchin, and China’s arch nemesis, White House trade advisor Peter Navarro.

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Adding to the intensity, the United States just charged Chinese telecommunications company Huawei Technologies and its chief financial officer, Meng Wanzhou, with conspiring to violate U.S. sanctions on Iran by doing business through a subsidiary.  Ms. Meng was arrested in Canada at the request of the United States; her extradition has been requested by the Department of Justice.
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Director of the National Economic Council Larry Kudlow responded to a fake news story the U.S. has canceled a trade meeting with China; never happened – there was no meeting scheduled.  Mr. Kudlow discusses some of the granular issues within the ongoing trade discussion with the Chinese.
Additionally, Chairman Kudlow discusses his outlook for the economy in light of the government shutdown.

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There are some political observers who believe an extended government shutdown, that can impact the overall U.S. economy, is actually the goal behind the Pelosi strategy.  There is a plausible basis for this perspective.  Tom Donohue (et al) and Wall Street (writ large) would be the primary beneficiaries if Pelosi can break the “America First” economic focus.  It would not surprise me to find out the Big Club people behind the Pelosi/Schumer strategy hold this K-Street intent.  We’ll have to keep watching.
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The baseline when reviewing economic data from China is to remember the entire economy is controlled by the communist central government.  If they say the economy is “less strong” than previously expected, generally we can anticipate the truth is much worse.
The second aspect to remember is that many U.S. manufacturers made anticipatory advanced purchases, building up inventory ahead of possible tariffs, in the 3rd and 4th quarters of 2018.  Those advance purchases can amplify any manufacturing slow down.

BEIJING (Reuters) – China is expected to report on Monday that economic growth cooled to its slowest in 28 years in 2018 amid weakening domestic demand and bruising U.S. tariffs, adding pressure on Beijing to roll out more support measures to avert a sharper slowdown.
Growing signs of weakness in China — which has generated nearly a third of global growth in the past decade — are stoking worries about risks to the world economy and are weighing on profits for firms ranging from Apple to big carmakers.

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A big day for geopolitical moves.

Earlier today President Donald Trump, Secretary of State Mike Pompeo and North Korean Minister Kim Yong Chol held a 90 minute meeting at the White House discussing ongoing talks and negotiations between the U.S. and North Korea.

Following the meeting the White House announced there would be a second summit between President Trump and Chairman Kim Jong-un:

“President Donald J. Trump met with Kim Yong Chol for an hour and half, to discuss denuclearization and a second summit, which will take place near the end of February. The President looks forward to meeting with Chairman Kim at a place to be announced at a later date.”  (link)

(Via Fox News) […] The face-to-face came after Secretary of State Mike Pompeo met with Kim Yong-chol, North Korea’s lead negotiator, in the nation’s capital early Friday morning to negotiate terms that could lead to a second nuclear summit between Trump and Pyongyang leader Kim Jong-un.

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U.S. President Donald Trump speaks to farmers and ranchers at the American Farm Bureau annual convention in New Orleans.  Anticipated start time 1:15pm EST.
UPDATE: Video Added

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Council of Economic Advisers Chairman Kevin Hassett appears with Lou Dobbs to discuss the strength of the U.S. economy, the partial government shutdown and the Trump administration’s trade talks with China.
Mr. Hassett, a happy warrior, walks through the recent economic data and jobs report.

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The official, albeit preliminary, U.S.T.R. delegation from the United States is on the ground in China to begin initial discussions of “technical details” surrounding the ongoing trade dispute.  The preliminary talks are today (Jan 7th) through Wed (Jan 9th).

The prior notice from USTR announced the delegation: •Ambassador Jeffrey Gerrish, Deputy U.S. Trade Representative (pictured above – center); •Ambassador Gregg Doud, USTR Chief Agricultural Negotiator; •Under Secretary for Trade and Foreign Agricultural Affairs Ted McKinney, U.S. Department of Agriculture; •Under Secretary of Commerce for International Trade Gilbert B. Kaplan, U.S. Department of Commerce; •Assistant Secretary for Fossil Energy Steven Winberg, U.S. Department of Energy; and •Under Secretary for International Affairs David Malpass, U.S. Department of the Treasury.

The delegation will be accompanied by senior officials from the White House, USTR, and the U.S. departments of Agriculture, Commerce, Energy, State, and Treasury. (link)

Tu Xinquan, director of the China Institute for World Trade Organization Studies at the University of International Business and Economics in Beijing is quoted as saying Beijing’s first phase will be focused on technical details before more important voices “make hard political decisions.”
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National Economic Council (NEC) Director Larry Kudlow appears on Fox Business News to discuss the incredible December jobs report, the U.S. economic outlook, current Federal Reserve policy, and the state of China’s economy.
Chairman Larry Kudlow notes the disconnect between Wall Street and Main Street by outlining the success within the MAGAnomic economy. Job gains, real wage growth and low inflation equals more disposable income for a secure economic workforce.
Increases in productivity combined with investment growth and strong consumer confidence is a direct result of a healthy middle-class economy. Under these economic growth conditions blue and white collar Main Street fuels itself.

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Kudlow also expanded on the China issues, and the upcoming meeting next week with U.S. and Chinese trade delegations.  He also appeared on CNBC (below):
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Jumpin’ Ju-Ju Bones…. The Bureau of Labor Statistics (BLS) releases the December 2018 jobs report and the numbers are “eye-popping.”  ♦In the month of December 312,000 new jobs were added.  ♦Real wage growth now 3.2%.  ♦Prior October and November jobs reports were adjusted upward by 58,000 jobs.   Main Street USA is roaring!!

Here’s the data:  Total nonfarm payroll employment increased by 312,000 in December. The unemployment rate rose to 3.9 percent (more static workers entering workforce).
Employment in health care rose by 50,000 in December. Within the industry, job gains occurred in ambulatory health care services (+38,000) and hospitals (+7,000). Health care added 346,000 jobs in 2018, more than the gain of 284,000 jobs in 2017.
In December, employment in food services and drinking places increased by 41,000. Over the year, the industry added 235,000 jobs, similar to the increase in 2017 (+261,000).
Construction employment rose by 38,000 in December, with job gains in heavy and civil engineering construction (+16,000) and nonresidential specialty trade construction (+16,000). The construction industry added 280,000 jobs in 2018, compared with an
increase of 250,000 in 2017.
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