For goldman. There is the idea that goldman got out of the uber stake when the period expired. Target, it is down 7 . A big dragon the s p 500. The holiday sales were not as good as anticipated. Guy absolutely. Missing the target. In europe, we are off on lows and negative territories when it comes to stocks. The cables rate is positive despite stunningly weak inflation data and more evidence in the bank of england we are likely to see an imminent rate cut. The ruble story is getting more interesting. We have seen the resignation of the goldmans today. It looks like we will see a referendum in russia that could save the presidency of president boudin beyond 2024 president 2020 four. D that has political implications, but i think it is still being assessed. In half an hour we are going to see the United States and China Signing the phase one trade deal. It will leave significant tariffs in place, but for the first time will punish beijing if it fails to deliver on key pledges. Spoke aboutuchin the issue of rollbacks earlier outside the white house. This side agreements that when we do phase two, as part of phase two, it could be 2a, 2b, 2c, there could be tariff reduction. That is an incentive. Before or after the election, we are in different. Is the head me now of china and northeast asia at andsia, a senior fellow professor of economics at syracuse university. Lets talk about what is going on and what we are expecting to happen. Michael, from your perspective, what does china get out of this deal . Is it good enough from beijings perspective . Here and i wonder why that tells us about chinas perspective . Michael it is getting some relief. Not much in terms of trump removing tariffs on china but it is removing the risk of further escalation. What it provides beijing is time, time that xi jinping will use in part to reduce reliance on the u. S. In critical areas of technology. It has become a strategic imperative for china in the wake of the u. S. Campaign against huawei. Guy is this good enough . We have seen the industrial sector in the United States in recession. This phase i deal good enough to justify the pain that has been felt in the u. S. Economy . Were going to see some gains for the u. S. Today. We expect in the area of intellectual property. However, we know the Manufacturing Sector is under the gun of these tariffs. And has been suffering for about half the year. Holding ontoy secretary mnuchins statement c,ut phase two, a, b, however many we need to get really for american manufacturers. Vonnie michael, what gives you hope that there will be relief for american manufacturers into a, b, c, d, f. I took that as a negative that the negotiations could go on forever. What is to say it can get anything it wants and the rest of them . Michael i am pessimistic about the prospects of further tariff relief this year. I think this is something of a comfort zone for President Trump politically. He can claim support for farmers through chinas purchases, though i think they will fall short of the target. At the same time he can push back on any claim he is being soft on china, because most tariffs are in place. It is a positive secretary mnuchin talk about breaking phases into different components, but it is hard for me to see we are going to achieve major tariff relief beyond what has already been. They said they were indifferent if something took place before or after the election. Can the American Manufacturing before hearing discussions that relate to that sector of the economy . Mary we have heard reports that there is the understanding nothing on the tariffs will happen over the next 10 months. That is a difference with what secretary mnuchin said. I dont expect there would be much simply because of the difficulty of the negotiating topics that are to be included in phase two. I think it is unrealistic that we get serious agreements on things like containing industrial subsidies, Stateowned Enterprises in the Global Trading system in such a short time. I also am pessimistic on seeing these tariffs rolled back in any short time. Is the end game . Where does this go . Im curious as to know with the end state of this looks like. Is this china and the United States on the same page . China and the United States on completely different pages . Lets assume we carry on as we are, where does it take us . Mary carrying on as we are is becoming increasingly untenable. We will see today that the administration is trumpeting its success, and there are successes we expect to see in the announcement. Including disciplines on chinas behavior towards u. S. Intellectual property. It is hard to see how this bilateral negotiation set up can really solve these other problems, which need to be addressed with our allies. Ambassador lighthizer acknowledged that this week when he returned to the trilateral talks with the European Union and japan to begin to lay out a revise itsthe wto to rules on subsidies. Clearly, when we are talking about subsidies that result in flooding the world market, decreasing global rights, that is going to affect all exporters and importers will stop we need to be in sync with our allies, and hopefully with a broader set of countries, in addressing that. Michael, who is in charge of this process in china . The liberals . The hawks . I am fascinating that xi is not here. That tells me something about how this is being perceived in china. You read Chinese Media and it is not signaling this is a great deal from chinas perspective. What does this mean for the politics of china . I think this is a purely Pragmatic Play from beijings perspective. Very few in the chinese system are cheering this deal. They are relieved that they got a respite without having to make concessions on the really strategic issues, some of which mary pointed out, including industrial subsidies. The policies china is trying to use the climb the value chain and reduce the reliance on the u. S. On critical areas of technology. The fact that president xi is is note defines this viewed as a deal to necessarily be celebrated. Beijing is relieved they are here at phase one, but no one is trying out for in china over ant ineal triumph china over this deal. Vonnie there is concern if the u. S. Will be able to fulfill its supply level of exports. What if that happens . We dont know. The targets are quite aggressive. Many people have raised the ofcter of trade diversion, china diverting his purchases to the United States from other parts and possible sources. The u. S. Exporting its and diverting its exports away from other countries. We dont know. We have heard interviews of farmers who are a little weary of going all in on planting for sales to china, mainly because one of the features of the agreement we expect, the enforcement mechanism, is one such tariffs could be snapped on in a relatively short time. That is a feature and a bug. It allows u. S. Companies operating in china to have a much swifter means of trying to get relief from what they see as chinese encroachment on their business interests. On the other hand, it allows trade escalations to happen very quickly. That means there is uncertainty for u. S. Producers trying to decide how much investment to make to meet these aggressive targets. And those in the industrial sector trying to make decisions on key investments. This may not solve many of their problems. Mary, stick around. Joining us from the peterson institute. Michael will be sticking with us as well. As we await the trade deal, stocks are sitting at record highs, at least in the u. S. Are slightlyeurope lower on the day with financials being the big drag. Dow, and nasdaq are higher between 3 10 and 4 10 respectively. As we reach record highs, the question is can the gains continue . One chart on gtv signals maybe they can. On the bottom we are looking at the performance of the s p 500. You can see the rally we have seen recently. The top panel is looking at the percentage of members in overbought territory, above the 70 level on the relative strength index. Right now it is 14 of stocks sitting at overbought levels. A relatively much lower amount than in previous rallies. That could indicate the gains are going to keep coming. As for stocks not gaining on the day, i want to look at target. This has been the best performing retailer stock over the past 12 months, but today it is the worst in the s p 500, lowered by nearly 8 on pace for its worst day after november 2018 after the key holiday forecast missed key expectations. That is bringing down others, particularly toymakers and best buy, because target was k in toy and wea electronic sales. It is not great for others who have yet to report their fourthquarter numbers. An intraday chart we got the Inventory Data just over 30 minutes ago, recorded a bigger gasoline. Ted bill in you can see the sharp dropoff in stocks. Right now it is lowered by 1. 2 percent, sitting below 58 per barrel again 58 per barrel again. Guy this story has been developing over the last couple of hours. President putin has just taxnated the countrys chief to be Prime Minister after he and the rest of the government stepped down earlier. This comes as president putin, the back end of his state of the nations speech early on, dropped a bit of a bombshell, though a bombshell people had been expecting for a while. He will have what looks like a constitutional referendum. This is probably going to limit president ial terms to two terms. Utin to become p Prime Minister, which would be felt the Prime Ministers role, role or take on another in the security sector. He looks like we have a fairly significant shift, which has long been speculated about, taking place in russia. , weruble initially weakend will wait and see how this story develops, but it looks like a constitutional change is underway in russia. Vonnie in the u. S. , this is a live shot of the white house. We are awaiting the arrival of the chinese vice premier and head of the trade delegation for signing the phase i deal on trade. President trump lobbing the deal as a beautiful monster of a deal. Getting less than half what they wanted in this particular phase of the deal. This is bloomberg. Vonnie live from new york, i am vonnie quinn. Guy from london, i am guy johnson. This is the european close on bloomberg. Annie adam schiff will lead team of seven managers who will present the impeachment case against President Trump and the senate. Nancy pelosi announced the managers saying she has great confidence in them. The president was impeached by the house last month on charges of abuse of power and obstruction. Moving closer to a brute a President Trump over iran. Tim king says he has enough republican votes to pass a war powers bill that limits the president s options. Several republicans have complained about the administrations changing justifications for killing a top iranian general. Michael flynn has changed his mind. He wants to withdraw his guilty plea two weeks before he is sentenced. He was charged with lying to investigators in the russia inquiry. He said that prosecutors acted in bad faith when he cooperated after pleading guilty more than two years ago. Global news, 24 hours a day onair, powered by more than 2,700 journalists and analysts in more than 120 countries. This is bloomberg. We are very happy to be joined by both of you. Michael, let me come back to you with something the treasury secretary said. He said that while way while huawei is not hsps. Michael i think that has shifted. Back in may there was the notion at the political level that this might be a bargaining chip or a source of leverage. Generally speaking, no. The action and campaign against huawei is driven by hawkish officials in the u. S. Who view this as a National Security issue, and many would be perfectly happy if huawei were to derail a phase i agreement. Many of them feel this deal is not so significant as to lead the u. S. To cushion its actions against china. For the most part, i would say no. Vonnie for the most part cyber issues have not come up in this version because they are so thorny. What will it take to get to cyber issues on 5g, which is less about 5g and who leads the Global Economy in the next decade . Mary the chinese have refused into theade secrets agreement, saying it was not a trade issue. I think in some sense the u. S. Was correct to agree to that, at least this is what we expect having not seen the agreement a separatee it is issue. You can only put so much into the trade agreement. I agree with michael that huawei may have looked early on like a chess piece, but i dont think it is any longer. What we see is it makes investing in china more attractive, not less. It sets ground rules, it has some penalties for the chinese if they pull back from those rules. We see corporations who have been looking for some certainty about the future, more complex types of manufacturing has not been leaving china, though it might if we saw increased escalation and uncertainty. To some extent this agreement says you will keep the tariffs. We can deal with that, what we cant deal with is not knowing what is coming down the pipe. While china might not be celebrating this publicly, i think that in a lot of ways it is a win for china. What we need to see is how it is a win for u. S. Exporters and job creation in the u. S. That is not to say that u. S. Multinationals in china dont build jobs in the u. S. , they do, but there is more we could export to china. There will be some provisions for regulatory relief, how china treats our exports in a host of ,reas, including auto, meat seafood, and other products. I will be watching for that in todays agreement. Guy the big question if you are ceo ofr in iowa or the an Industrial Company in philadelphia is what is my degree of certainty on the deal . Is it going to stick . What is your best guess . Do you think phase i will stick or we will go back to more tariffs in six months time . Michael i think phase i will encounter a number of frictions, but i think that it sticks through the election because both sides have an incentive for it to stick. We saw who arrived a few minutes ago at the white house. Talk about the political theater. That is not the important thing, but we can read something from it. But itnot come himself, is taking place at the u. S. In the white house, and President Trump is said to be planning to sign. Is that a climbdown on the part of the u. S. . Michael i think it is a recognition that phase i would have had to have been quite a different deal in order for there to be an expensive signing shar ceremony between trump and xi on short notice. If president xi is going to come to the u. S. He will require something along the lines of a state visit. Pomp and require more probably more political gifts to xi. This is a pragmatic deal that the two sides just wanted to get done to get it out of the way. That i think reflects what is not a particularly high publicity signing ceremony. Vonnie both are sticking with us as we await the signing of the phase i deal on trade between the u. S. And china in the white house east room. This is bloomberg. Guy european markets heading into the close, about three minutes away. Some of the drugstores arguing strongly today. We wrap up the j. P. 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Lets take a look at what is happening with the markets around europe. What we are looking at is a ftse that is slightly underperforming on the back of some of the drug stocks and then the dax and the cac 40 sitting tight. Waiting to see what the details are. 86 pages, what is in them, what does it tells about enforcement, what does it tell us as we extrapolate into phase two . That is the picture for european equities. The ftse 100 is also benefiting from the top we are going to see rate cuts in the u. K. Asm international out with numbers in the chip space, that benefiting from the update. Commerzbank saw a debt issuance it is worthg comparing u. S. Banks versus the u. S. Banks versus the european banks. Gsk doing well, astra is doing well. We are wrapping up the Health Care Conference in san francisco. Seems to be liking some of the european names. Gsk and some of the baker drug names benefiting today some of the bigger drug names benefiting today, giving the ftse a little bit of a boost. European markets waiting to see that phase one deal signed and the details. Vonnie that was the european markets, and the u. S. Just a little glow over u. S. Markets. Goldman sachs was not enough to keep the market down. It was down earlier but is higher now, even after a messy quarter, which includes a 1. 1 billion charge. The s p 500 is up about. 33 . The drug distributors are in those group of stocks that are higher, primarily on earnings. Even after Oklahoma State went after some of the drug contributors on monday. A different story to the downside. Target is the worst performer in the s p 500 after poor holiday sales performance, which is upsetting to investors, particularly given some of the Department Stores rallied. Down aboutnother. 33 . It is mostly a market focused on earnings. Of course we get the ceremonial signing in a few minutes at the white house. That is mostly baked in, unless in that secret annex to the deal we get something we do not know about. Guy always hard to tell on that front. Hartsonack with michael and mary lovely joining us. You can see the shot we can bring you from the white house. This is what we are looking at right now. We are going to take that signing when it comes. You can see the commerce secretary. Plenty of people gathered for the historic event. They are gathered in the white house east room. As soon as we start to see events unfolding we will bring that to you. Lets get back to our guests and get more analysis. Mary, as we have seen this deal taking place between china and the United States, im interested to get your take on where you see the relations between the United States and europe going. We have commissioner hogan from brussels in washington at the same time. Do you think the United States will pivot from focusing on china to focusing on europe . Mary a great question. As michael pointed out, this is political theater we are seeing today where the benefits of continuing the conflict, escalating the conflict were outweighed by the increasing cost President Trump felt domestically for farmers and manufacturers and consumers. Moving to see how will toward a conflict with europe play out . I think it is a different kettle of fish. Americans generally have a positive impression of europe. The European Union is one of our closest and most valued allies. It is going to be harder to sell the idea they are somehow cheating us and then look for a broadbrush approach with them. The bullying tactics we have seen out of the white house visavis china will not work on the European Union, not just because the union will rebuff it , but because i do not think it will sell with the American Public in the same way. The same way that perhaps a tough closed fist approach to china will have on both sides of the aisle. Guy how to the folks in china see the story unfolding, the relationship between europe and the United States . We have a delegation from the United States and the government trying to persuade Boris Johnsons government not to allow huawei to bid for any part of the 5g network . If Boris Johnsons government were to a seed to that request, how would that play in beijing . Michael beijing, while playing very close attention to the ,uawei discussion in the u. K. Would react quite strongly. What we have seen from china on the huawei issue is a politicized attitude by china in terms of the diplomatic and economic coercion that it has used, for example, against canada, against australia as well. There is an aspect of this that is playing out with media reports of an unofficial suspension of the london shanghai stock exchange. In terms ofine is the u. K. Relationship, china thinks the u. K. Needs china more than vice versa. If there is a harsh agreement from the u. K. On huawei, which we are not expecting, i think it would be problematic for that relationship. Guy i want to break vonnie i want to bring in Josh Wingrove , one of our white house reporters. He is in the east room. If you can hear me, there has been a lot of anticipation about some kind of signing. We are getting a phase one deal. The vice premier is in washington. How important is the political theater, both in the u. S. And china, given we have an uneven pairing. We have the president of the United States and the vice premier of china. We will return to Josh Wingrove in a few moments. I think he may not be able to hear me. He typically does speak. I will ask the same question to my guest in the studio. Michael it is not that bad from beijings perspective because it is not parity. It is the vice premier signing a deal with the american president. That provides political cover for beijing. It is not xi jinping signing the deal with trump. From their perspective, for a deal beijing is not celebrating as a huge win, this is fine in terms of optics. Vonnie does the president get a bump in the polls for this . Mary i think he may. Generally people see a cessation of escalation as a good thing. The media is reporting it as historic. People who are not tuned in will think Something Big happened today. There are clearly some good facets of the agreement that we will see this afternoon. We have to keep in mind there is still a lot of risk, namely it does not rollback the tariffs, that we do not know how these and also,will be met, as michael pointed out, we will continue to see a lot of competition and conflict between the two countries in the high tech space. Vonnie now we can go to bloombergs Josh Wingrove from the east room. A lot of anticipation before this deal as mary just pointed out. Not exactly a historic deal. It is a phase one. Secretary mnuchin said there could be several more phases before we even get to phase three, if there is one. Why is the president here today having the ceremony at the white house . Josh they are handling it as a historic day. Larry kudlow saying it looked like they might not even get here a year ago. We will have a lot of pomp and circumstance but i think you are right, a lot of eyes will not be on what they announced today, although there will be a lot of details revealed for the first time, but instead a timeline on that phase two deal you mentioned. On starting talks before the election, for instance. When will President Trump go to beijing to meet with xi jinping . These are open questions we might have more clarity on now. Details of the phase one deal are becoming clearer in advance of what we expect shortly. That includes 200 billion in increased purchasing by the chinese over a couple of years. Larry kudlow indicated it was may be more flexible than had been described and depends on the chinese economy capacity to make the purchases. Washington is all about impeachment today. Trump is looking for something to counter that narrative. That is why we are seeing lien to the history and significance the history in to and significance of todays signing event. Guy can we talk about enforcement . There is some speculation we may not get all the details. That there is some annex of the deal that will include the enforcement process. How much will we learn and what is the speculation of how political the enforcement process will likely be . Will it rest with ambassador lighthizer and the president . Josh indications are they will lay out a path that seems pretty specific until the end. What we do not know is what happens if they go through all the motions and they still have a disagreement. We have all become trade guards over the last couple of years as President Trump is trying to rebalance and get more trade deals across. At trade deal is only as good as the enforcement provisions. That is why a lot of eyes will be on that revealed today. What happens if the americans accused the chinese of breaking this deal and they go through the process and it comes down to a difference of opinion . Right now we have no firm signal as to what those enforcement capabilities will be. Remember, the u. S. And china are at odds over the wto and its role. The countries are not out of the woods. Larry kudlow likes to talk about mood music. , trying music is better to show they are moving away from the brink of a trade war that had been bubbling for the last year. Guy Josh Wingrove of the white house, thank you very much. Mary lovely, let me come back to you. The mood music improving. Nevertheless, it could change quite quickly. Given the fact we have an election in november, later on this year, you think the president will be bold enough to reintroduce tariffs, to call out the chinese if there was any degree of deviation from this deal . How much flexibility . How much amplitude is there around the middle ground . Mary i think he has shown an unpredictable element to his behavior, and it is possible. He could raise the tariffs they lowered on the september round. Those were mainly on clothing and accessories. We have pointed out repeatedly that the round that was to be implemented in december was mainly on cell phones and laptops. Those are mainly american designed and marketed products. Many of them. I think it was probably a bridge too far for the administration. I think it would have stepped on many toes. It would have risked a lot of jobs in the United States. I do not think he wants to go there. We have this mood music. Once the mood music settles down, we have to ask is this a historic when for this bilateral aggressive approach, or should we be returning to a longerterm , more steady type of diplomacy . This president has tried to defang the wto. We now have an appellate body that will not function because the u. S. Has refused to appoint judges, yet we see time and again, when the president does these bilaterals based on threats to deny access to our market, in the end they get very little. ,hen we look at the usmca something President Trump has touted as a big win, we see mainly it is a rollback of access to u. S. Markets and very little beyond things already contained in the tpp, with a few exemptions of places that were modernized. We see a lot of bluster, and yet we need to ask is this really a better approach . That is what voters will be asking themselves over the next 10 months. , there ischael obviously the eu question and there is a delegation from the European Union in washington. The administration can do negotiations on different tacks at the same time, but what will the approach be when it comes to europe, given that with china youre talking about a very different kind of model, youre talking about statesponsored efforts to be more capitalistic. Do not have that in europe. It is very different. Michael it is a very different picture. This is one of those issues where the president is in a different position from most of the political establishment and in some cases most of his cabinet. The president to says europe is worse in some ways than china on trade issues. Very few in the u. S. System would agree with that. One of the questions is does the u. S. Start to work more closely with europe on confronting common challenges with china . As mary has said, Robert Lighthizer met with his european and Japanese Counterparts earlier this week to come up with a common approach to pressuring china on the issue of subsidies at the wto. U. S. Isresident and the aggressive to the eu on trade, that will hurt the fight on china. Wingrove, how much of the conversation in washington is on china and how much are people beginning to think a little bit about europe and what might happen with discussions with europe . Josh that will be a pivot point. Frankly, there is more interest in the phase two deal. We expect also to get a vote on the usmca deal, that new trade pact. Tensions with europe are secondary to the china talks. You might be able to hear over me that it sounds like things are starting to get talkative. We will be watching for the signing. That will be President Trump and the chinese vice premier. President trump has indicated he wanted to sign this with xi jinping. That is not going to happen. Usually these things are done on a leader to leader level. The u. S. Has consented to have trump do it even though the chinese did not send the president. That will be one dynamic to watch. The u. S. Administration remains more focused on china, but china is a more unifying bipartisan issue. You have a lot more republicans agree something needs to be done with china than agree something needs to be done with europe. Guy josh brings up an interesting point about the bipartisan nature of the approach to china. To what extent would we expect a different approach from what we have heard thus far from the various candidates looking to become the candidate for the Democratic Party . Mary we will hear the and wetic candidates, have, stressing closer cooperation with our allies. The administration is also coming around to the view because so many of these hot button and difficult to solve issues require a broader approach. It involves actions by the chinese that affect world prices. You have a lot of ways the chinese can divide and conquer. If we are not in sync with our allies, there are ways we can take ourselves out of the market and still have the effects. In steel, we have huge tariffs against chinese steel, and we import very little from china. Chinese overcapacity continues to affect our companies by depressing world prices. We can try to isolate ourselves, what in a global market, that is not possible. We also have companies that are doing business. They are very important to a variety of industries. We need to stay in this game and we need to work with our allies. I think that is what we will see from the democrats and i think we will continue to hear it from ambassador lighthizer. Seeing the chinese delegation sitting down. Getting close to the moment where we expect this to be signed. Mary, one final question. We are also seeing usmca come into reality. How important are these two events sidebyside to the economic progress in the United States from here . How significant we are getting the two things joined up . We will get a big area in north america that will have the potential to provide a great deal of economic power. At the same time, we are getting the deal done with china. To seehat we are going is the u. S. Has stopped trying to hurt itself. That will be important. One of the things we have been worried about is the depression in business investment. What that means Going Forward for u. S. Companies, for worker productivity, and for wage growth. These things coming together, solving a lot of uncertainty, the deals may not have moved the ball forward, but they have tamped down on uncertainties, stop escalation, and that is good for the u. S. Economy and does help smoother sailing through 2020. Vonnie we are in the stock market at session highs. A little but of optimism on the signing ceremony. The Dow Jones Industrial average. 5 ,. 6 , the s p 500 up and the nasdaq is up. 5 . Michael, do you expect to see bifurcation between the indices going into future trade talks. For example, when we talk about the tech companies, about huawei, about 5g, will that hit individual stocks much more . Michael that is what is tricky for the markets. Tariffs is something china has relatively easing time pricing in. More of the risks will be coming from nontariff measures, for example from u. S. Actions against huawei and other Chinese Technology companies. These are not as visible as tariffs but they have a huge impact on significant companies. Hirson andhael mary lovely, thank you for joining us. Now we want to bring you to the east room of the white house for the signing ceremony of the phase one trade deal with china. [hail to the chief plays] pres. Trump thank you very much. Appreciate your joining us at this white house event. This is a very important and remarkable occasion. Today we take a momentous step, one that has never been taken before with china, toward a future of fair and reciprocal trade as we sign phase one of the historic trade deal between United States and china. Together, we are writing the wrongs of the past and delivering a future of Economic Justice and security for American Workers, farmers, and families. I want to thank president xi, who is watching as we speak. I will be going over to china in the nottoodistant future to reciprocate. I want to thank president xi, very good friend of mine. We are representing different countries. He is representing china, i am representing the u. S. We have developed an incredible relationship. I want to thank him for his cooperation and partnership throughout this complex process. Our negotiations were tough, honest, open, and respectful, leading us to this incredible breakthrough. Most people thought this could never happened. It should have happened 25 years ago, but that is ok. A man who has also become a good friend of mine and someone who arealented and capable, we delighted to be joined by the vice premier and the ambassador at many other representatives from the peoples republic of china. We are especially proud of the efforts of Vice President mike pence, who is with us. I would like to have you say a few words. Pence thank you, mr. President. It is an honor to be here with you and the vice premier, with our treasury secretary, and ambassador lighthizer, with some distinguished members of congress and governors from around the country. This is a good day for america, china, and the world, and it is an honor to be with you. Mr. President , we gather here thanks your leadership at a time the American Economy is booming. With the strong support of members of congress gathered here, we are now experiencing an economy that has created more than 7 million jobs. Unemployment rate is at a 50 year low. The average americans Household Income has risen by more than 5,000. That is all a result of your commitment to cut taxes, rollback regulation, and unleash american energy. It also reflects your commitment to free, fair, and reciprocal trade. Early in this administration you made it clear that the era of economic surrender was over, and you took a strong stand for american jobs and American Workers. You said to our friends in china that things had to change. Thanks your leadership, today the change begins. [applause] pence we announced great progress on intellectual property, preventing forced technology transfer, and currency manipulation. I note mean so much to you that the greatest impact might be on american agriculture, some 40 billion to 50 billion in purchases that will result in greater prosperity to farmers across the land. Your commitment to a growing and prosperous america has been the centerpiece of your leadership. Today, with the signing of phase one, one more example of your commitment to put american jobs and American Workers first. We recognize, as you do, that differences will remain between our nations. Today is the start of a new chapter in trade relations between the two largest economies in the world. I can assure the American People this president will continue to stand firm and put America First , even as we forge a more productive relationship with china and the world. Mr. President , theres an ancient chinese proverb that says men see only the present, but heaven sees the future. Let today be the beginning of a brighter future, more prosperous for the American People, the chinese people, and the world. Thank you, mr. President. [applause] thank you, mike. Incredible job. Incredible guy. I also want to give a special thanks to our u. S. Trade representative, who has been kept very busy. We have another big one next week. It should get approved shortly. That will be tremendous with canada and mexico. We will talk about that next week. Robert lighthizer, are we keeping you busy enough . The poor guy cant sleep. He tosses and turns. What happened to him . I am allpurpose. [laughter] pres. Trump you are allpurpose. Robert lighthizer is an outstanding guy. He understands trade better than anybody. I said i had to get the best guy. All signs pointed to Robert Lighthizer. Thank you very much. [applause] pres. Trump i have one question. Was this an easier job or a tougher job than you thought . Tougher. Pres. Trump i had a feeling you might say that. Also our great treasury secretary Steven Mnuchin has worked with bob handinhand. Thank you very much. Great job. [applause] this is a landmark agreement, but along with them we had the exceptional efforts of jared kushner, where is jared . [applause] pres. Trump great job. He left a beautiful, prosperous real estate business and came here. I can tell you that was harder. This is harder than real estate in new york, isnt it . Youve done a fantastic job. Here. , nice to have you somebody i have heard for 35 years, a great gentleman, a friend of mine, we brought him in. He has been outstanding. The only problem is he does not like going on television very much. He is little bit shy. Larry kudlow. Where is larry . [applause] larry . Rump where is we had a day where the market went down 1 trillion. It was one of those few days. We have had 141 days where we hit alltime highs and we just dowe the 29,000 mark on the just now. Markets up substantially today. [applause] larry kudlow went out onto the beautiful lawns of the white house, actually he was standing in the middleoftheroad started. He had a beautiful scarf waving in the wind. Right out of greenwich, connecticut. He started talking. By the time he finished, i said you just made 1 trillion. The market went up 250 points. I said larry, what the hell did you say . It did not matter. We were even. We went from being 1 trillion down to even. Larry, youve been fantastic. I appreciate it. [applause] way, i see by the our great ambassador to china. , andd the governor of iowa he loves china. He is the longestserving governor in the history of our years, and i called him and i said governor, you have to do me a favor. One conversation i had with him, i was going into make a speech before the election, and he said please dont say anything bad about china. It is the first time anybody