World shares mixed, investors mull Trump choice of adviser

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Investors are hoping Larry Kudlow, the CNBC commentator who is President Trump's new top economic adviser, can emerge as a "moderating influence" and help the USA avoid a trade war.

Kudlow is taking the role after Gary Cohn resigned the job last week in the wake of a move by Trump to impose steel and aluminum tariffs of 25% and 10%, sparking concerns among global markets and allies of a trade war.

The president, who has described Kudlow as a longtime friend, said he had "come around" to view tariffs as a useful tool for renegotiating trade deals. "I want to have different opinions".

Senator David Perdue said Kudlow would help Trump in making the U.S. more competitive with the rest of the world.

However, Kudlow is a strong supporter of Trump's tax reforms and efforts to do away with regulations. Though, he may find the New Jersey native an occasional critic of his trade policies. "Our Country will have many years of Great Economic & Financial Success, with low taxes, unparalleled innovation, fair trade and an ever expanding labour force leading the way!", Trump tweeted.

Kudlow is best known for his staunch advocacy of tax cuts.

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Kudlow has been on the economic front for a while.

"Larry Kudlow has been off the very (deep) deep-end for years on the more important matters of deficits, tax cut magic, Fed money-printing, wild-eyed economic growth rates, and, above all else, incorrigible cheerleading for Wall Street's serial financial bubbles", David Stockman, Office of Management and Budget Chief under Reagan, wrote on his website.

Kudlow, 70, has informally advised the Trump administration in the past and he has spoken with the president "at some length in recent days", so he is ready "to hit the ground running".

Kudlow spoke to media outlets earlier on Tuesday, saying he had been offered the job.

"The challenge for Kudlow.is that the president is the 'franchise player, ' and at the end of the day he calls almost all the shots", explains Tom Block, a Washington policy analyst for Fundstrat Global Advisors, a Wall Street research firm. "The way I was brought up in the Reagan years, you talk it out and you argue it out, but once the president has made a decision, that's it".

The National Economic Council director advises the United States president on economic issues and works to implement policy goals.

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