MARY REICHARD, HOST: Coming next on The World and Everything in It, the Monday Moneybeat.
TRUMP: We’ve had very good discussions with China.
EICHER: President Trump on Friday, about to board Marine One, the presidential helicopter. He was talking trade.
TRUMP: We’re getting much closer to doing something. They very much want to make a deal. And I think it’ll be a very fair deal for everybody, but it will be a good deal for the United States.
EICHER: Right after Thanksgiving, leaders of the G-20 will meet in South America. That’s the top 20 industrialized nations.
Trump said he’s having dinner with China’s President Xi Jinping. The goal is to bring an end to a trade war between the world’s two biggest economies.
Earlier this year, Trump slapped import taxes on $250 billion worth of Chinese goods.
He has two broad complaints:
First, what he calls unfair trade practices that have led to a massive trade imbalance with China. Last week, the government reported that despite the tariffs the so-called trade deficit with China hit a record high in September: $40.2 billion.
And second, a dispute over technology. Specifically, Chinese cybertheft and Beijing’s demand that American companies hand over trade secrets in exchange for access to China’s consumers.
China’s hit back with tariffs on American imports, but it’s nowhere near the impact of U.S. tariffs.
On whether a deal to end the trade war is imminent, the president’s chief economic advisor Larry Kudlow appeared on CNBC to tamp expectations down.
KUDLOW: There’s no mass movement. There’s no huge thing. We’re not on the cusp of a deal. As the president said, we would like to talk to them about it, but they may not be ready. I mean, that’s been the unsatisfactory response from China.
REICHARD: On Wall Street, a modest rally following a couple of hard weeks. The Dow Jones Industrial Average and the Standard & Poor’s 500 index of stocks gained 2.4 percent to regain positive territory overall for the year.
The smaller company stock index, the Russell 2000, surged 4.3 percent, also to return to the plus column for 2018.
The tech-heavy Nasdaq had a good week, too, gaining 2.6 percent. It would’ve done much better if not for a rough day Friday. The index suffered a single-day loss and Apple led the way down by issuing an earnings report that fell short of analysts’ expectations. The company also announced it would no longer report quarterly iPhone sales, and that didn’t sit well with investors either. Apple stock dropped during the day to the point that the company lost its trillion-dollar status briefly. It did manage to get it back, but overall Apple stock lost 6.6 percent of its value. That’s its worst loss in four years.
EICHER: A terrific jobs report for October: 250,000 new jobs added. That is more than expected, and it makes 97 months in a row for job growth. That is a record winning streak.
According to the Labor Department, the unemployment rate remained at its 50-year-low, 3.7 percent.
Average hourly earnings went up in October: 3.1 percent better than a year ago. That is the sharpest year-over-year gain since 2009.
In October, the proportion of Americans with jobs reached its highest level in a decade.
And that’s this week’s Monday Moneybeat.