Apr 27, 2019

Larry Kudlow: U.S. in position of leverage for upcoming trade talks

Larry Kudlow. Photo: Mark Wilson/Getty Images

The news that the U.S. economy grew 3.2% the first quarter of this year gives the U.S. some "leverage" in upcoming trade talks with China, National Economic Council director Larry Kudlow said Friday on CNBC's "Squawk on the Street."

"I'm cautiously optimistic about the deal ... China's economy is slumping and has been for some time."
— Larry Kudlow

Yes, but: Axios' Courtenay Brown reported earlier this month that China's economy grew 6.4% in Q1 on an annual basis, exceeding analysts' 6.3% growth estimate. But, analysts did warn that it's "too early to call a sustainable turnaround," per Reuters.

Driving the news: President Trump on Thursday sparked a flurry of anticipation, the New York Times reported, when he suggested there will be a visit from Xi soon.

  • While Trump kept his comments vague, people familiar with the situation told NYT that the hope is for Trump and Xi to sign an agreement in May or June.
  • And, earlier this month, Trump suggested an "epic" trade deal could be getting closer, per NYT.

What's happening now: Trade negotiations are continuing on April 30 in Beijing, when U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will travel to Beijing, the White House said on Tuesday.

  • Chinese Vice Premier Liu He will continue the trade talks with a delegation in D.C. on May 8.

Go deeper:

  • China's Xi signals approval for Trump's trade war demands (Bloomberg)
  • China and Canada fall away as Mexico becomes the U.S.’ biggest trading partner (SCMP)
  • Why China's stimulus isn't all good (Axios)

Go deeper

Humility for forecasters: Jobs shocker is record miss

President Trump speaking in the Rose Garden following the release of the jobs report on May 5, 2020. Photo: Jonathan Newton/The Washington Post via Getty Images

Economists were projecting that May's jobs figures would show a loss of 8 million jobs and an unemployment rate approaching 20% — Great Depression territory.

The state of play: Instead, a record 2.5 million workers were added, and unemployment fell to 13.3% from April's post-World War II high of 14.7%.

Updated 57 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

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  2. U.S.: Total confirmed cases as of 10 a.m. ET: 1,898,401 — Total deaths: 109,137 — Total recoveries: 491,706 — Total tested: 19,231,444Map.
  3. Public health: Fauci: "Very concerned" about spread of coronavirus amid George Floyd protests — Cities offer free coronavirus testing amid protests
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  5. Jobs: Better-than-expected jobs report boosts stock market.

Trump's week of viral quicksand

Data: NewsWhip; Chart: Andrew Witherspoon/Axios

Stories about President Trump's photo op at St. John's church after peaceful protesters were forcefully cleared from the area averaged the most online attention of any issue about the president this week.

Why it matters: Trump's force-over-compassion approach to the demonstrators protesting the murder of George Floyd had Republican allies backpedaling to keep a distance — and led to a wave of condemnations that got plenty of online traction on their own.