joining us also is nancy cook from politico and damian paletta from the washington post. let me begin on the issue of china and trade. the president this past week saying we are moving closer to a new agreement. last week you said, "we have china over a barrel." where do things stand? mr. kudlow: actually, we are making good progress. i were trade negotiator was on hishill a lot of this week basic message is we are gaining on it, we are moving forward, closing on a deal. there are still issues to be resolved, particularly in the enforcement area. i also want to say as i have in the past, the discussions here have gotten deeper than at a ny time in u.s.-china trade relations. way beyond anything we have done. on the whole, they have been quite successful. three weeks ago, he came with his top deputies and that went very well. of course, he has to go back and get clearance from president xi and the bureau. then we had whatever it is, teleconference meetings, everyday last week. this week, our principles, which is steven mnuchin, treasury secretary, and bob lighthizer made a