tv Worldwide Exchange CNBC February 28, 2019 5:00am-6:00am EST
>> i think actually it was an interesting two days sometimes have you to walk >> president trump's stunning turn abruptly walking away from nuclear talks with north korea he is already back on his way home we are live in hanoi, vietnam, with the fall-out on this thursday, february 28th, and a special worldwide exchange begins right now good morning good afternoon wrrks or good evening. welcome, everybody i'm brian sullivan high stakes talks between president president trump and north korea's kim jong un
collapsing overnight. the president is now headed back to the united states without a deal with north korea, and we have full team coverage of this breaking story eamon on the ground in hanoi cnbc contributor michelle caruso cabrera in house for analysis. lisa colins with the center for strategic and international studies. we begin with eamon. we begin in hanoi. the president scrapping a planned lurchl with kim jong un that was set to take place this afternoon. hanoi time moving up his press conference about two hours time forcing the president -- being held unexpectedly this president saying quickly that ultimately they couldn't get to a deal because the north koreans wanted sanctions relief, and he wasn't prepared to give it unless they were able to give access to a whole host of facilities in north korea brk ut north koreans apparently weren't willing to loy here's how the president
expressed the frustration today in the press conference just a short time ago here in hanoi >> we spent pretty much all day with kim jong un, who is quite a guy and quite a character, and i think our relationship is very strong, but at this time we had some options, and at this time we decided not to do any of the options, and we'll see where that goes. it was a very interesting two days i think actually it was a very productive two days, but sometimes you have to walk, and thflgs just one of those times >> the president saying this was just one of those times when you have to walk away from the negotiating table. the president has done just that air force one took off a short time ago the president has left vietnam he is not promising to have another summit with kim jong un. reporters asked him if there was another event skelked or at least agreed upon. he said he is not willing to commit to that
they didn't even agree to some of the small deal items that a lot of analysts had expected there was some thought that if they couldn't get to a big deal, maybe they would have a small deal, which would include things like a formal end to the war with korea that's not even on the table here they walk away with nothing. they offer some support here for president trump in terms of the way this has come together south koreans saying the fact that president trump openly expressed his desire to lift sanctions in relation to north korea's denuclearization proves that the level of discussion between the u.s. and north korea has been elevated further up all sides suggesting that the conversation has been elevated, that progress was made, but the stark fact is, brian, no deal made here in hanoi, vietnam. back to you. >> all right, you stick around, please now let us bring in our expert panel, lisa collins, with the center for strategic and international studies. joel wit is a former u.s. negotiator under both the clinton and bush
administrations, and joined by our friend and contribute or michelle car russo cabrera what do you think happened here? >> so this fell apart along traditional lines that we've seen in the past there's always an issue about whether or not north korea is going to elit us everything that they've got. clearly, they didn't fess up, and the president in his news conference said we told them about places that they knew about and they were surprised that we knew about this em swuf state mike pompeo came on and spoke with reporters and made it clear that the other traditional issue is sequencing. what comes first he says, yes, i'll denuclearize, but you have to do the sanctions first. no, no, no we want you to denuclearize first and then we'll do the sanctions. that's always been the traditional issues, right? do they tell us everything in what order is something going to happen? ultimately, the president has given it his best shot, and he has not walked away completely from the process at this point there's still a possibility the progress can be made >> yeah, lisa. your take on this. do you believe there is at least to michelle's point something to be gained from the fact that there was at least a second
meeting? >> yes, i do believe there was something to be gained by the second meeting obviously, president trump still feels like he has a decent relationship with kim jong un. i think it's good that they got further in their talks on what sites the north koreans would need to dismantle according to for the united states to lift certain sanctions. i think that is actual progress. it remains to be seen what can be made in further talks at the working level, and i think this shows the importance of those working level talks. >> yeah, joel. do you believe that this was, to michelle's point, also kind of a timeline issue what comes first is it the denukes or the relief of some of the sanctions what do you believe that kim jong un truly was hoping to get from these talks >> well, it's always that issue. before we even had the summit, there were signs that both sides were moving closer in terms of the sequencing, but the bottom line here seems to be at least what the president said. the north koreans wanted more than we were willing to give,
and they were willing to give less than we really wanted that's the issue here. how do you close that gap? >> to what extent do you think we know how much they have, joel i've seen estimates they have between 30 to 60 missiles. that's an extremely wide gap a variance of 100% do we know all their enrichment facilities the president said repeatedly in this news conference, we know more than all of you goiz know, and we knew more than they thought we knew. >> well, i think they actually have between 30 and 60 nuclear weapons, which is still quite a bit. on what the president said, well, you know, we've been through this dance before. we may know some things that the north koreans don't know we know, but the north koreans know a lot about what we know, and so
i'm a little surprised that he said they were surprised had he they m they may have acted surprised, but i think they have a good idea of what we know about their program. >> lisa, you guys at the csis posted extentively on their missile capabilities, on their defense and security capabilities how much do you believe that north korea knows that we understand about them? do you believe he was actually surprised? >> as joel mentioned, the north koreans do know a lot, and i do think that they know what the u.s. knows, but i think that there are a lot of things that we were trying to get more information on from the north koreans and those include some of the things that csis has reported about in the past i think it also could have included some of the uranium enrichment facilities that were on the table for discussion. as president trump mentioned in his press conference, that was something that the north koreans just weren't willing to discuss at this time >> well, why not, lisa if you are going to denuclearize, you really have
uranium enrichment they seem to be unwilling to fully denuclearize >> i think the north koreans and their strategy are trying to hold back as much as possible at the beginning of negotiations and significant concessions up front. that's why they asked president trump to lift all of the sanctions currently imposed on a north korean group before they would allow inspectors or verification protocols in pyongyang. i think that along the same lines that's why they weren't prepared to give up the uranium enrichment facilities as well. he. reuters is running a story that the u.s. military and the defense has come up with new capabilities for the f-35 to be able to shoot down missiles at a much earlier stage while
president trump was on stage actually saying quite nice things about kim jong un and was very, very friendly the way he and the secretary of state spoke. it also feels like on the other hand they're sending a message that they have even more capability to stop kim jong un and north korea if they were to resume missile testing >> yeah. hi, michelle i think that's exactly right one of the things that the president said here, which i thought was compelling during the news conference, it sort of lays out a scenario in which they're walking away from this negotiation right now, but they're not backtracking that is, that the north koreans have promised, according to president trump, not to continue -- not to resume testing and some of the missile flights that they've been doing previous to this series of summits here the north koreans are going to freeze their progress there. the president signalled that his concession from the last summit, which was ending those joint military tests with the south koreans, he said that's going to remain in place because those are simply too expensive in his
views. neither side seems to be backing away from the concessions that they've already made the question is why weren't they willing to get concessions that are new here on the ground today? there might be that military signaling that you are talking about, but one of the questions that's going to be asked about all of this is what were the signals from the deputies and the lower level officials here that led the united states to believe that there was a deal on the table here that was possible here in hanoi? why did the president come all the way around the world to sit across the table from kim jong un when a lot of these fault lines that you are pointing out in the debate have been pretty obvious for some time to come. why did they think they could get a deal and end up ultimately frustrated >> joel, the special envoy to north korea that was appointed by the united states made a speech at stanford last month, and he went through what he thought were a lot of the accomplishments thus far, which maybe at first don't sound like much a greater ability to communicate with the north koreans, to
actually get a message to them back and forth, which is thus far been incredibly difficult. is that really progress in your estimation would you say that's something to crow about? is that a good enough reason for have gotten as far to hanoi, or is that just that our expectations are so low at this point? >> well, i -- you know, the holy grail for every u.s. administration has been to communicate directly with the north korean leader, and president trump has established that channel that's a plus. the down side here is that as we all know, president trump sees himself as the negotiator in chief, and we don't know where that leads us. he is unpredictable. kim jong un is the same kind of guy. he sees himself as the guy in charge, and so when you get the two of them in a room together, you're not sure what's going to happen let me make one other point in
that stanford speech steve bagan said the north koreans had agreed to dismantle all of their bombmaking material production facilities, and that includes these uranium enrichment facilities. it's not quite clear, and i think the dust has to settle a little bit it's not quite clear what actually happened in hanoi in terms of the give and take between the two leaders. >> welling, joel, this has been a 25-year process. you know that. you were part of the 1994 u.s.-north korea framework agreement. that, of course, with kim jong un's father. what do you think is the difference here in the style and the goals of kim jong un versus kim jong il, his father? >> well, you know, history is one of my favorite topics, and i'm not going to bore you with the ins and outs, but everyone thinks the 1994 deal was a failure, and it wasn't because we expected north korea to have almost 100 nuclear weapons by the year 2000, and they ended up
with enough material for less than ive the difference here between kim jo jongil and kim jong un is very clear. kim jong un is 34 years old. he has many years ahead of him he has a different time horizon. he is not as cautious as his father i bet you his father would not have put himself in this kind of situation, but kim jong un is used to taking shortcuts that's one of his favorite phrases. a shortcut to what he wants is meeting with donald trump. >> and he got it and he gets the press back in his home country lisa, do you believe that there is any gamesmanship here going on trump and president xi of china have some very important trade negotiations still ahead do you believe there was some element of this where president trump can now go to president xi and say, look, i'm willing to walk away from any kind of a deal and really sets himself up from a tougher negotiating
stance with president xi >> it's possible in the mind of president trump that that could be an element that he is considering, but i actually think that these negotiations with north korea are separate, and i think that the president -- he mentioned that he did want to come to a deal with north korea eventually. he just wasn't ready to accept what he was calling a bad deal i think, you know, he will try to get china to play a bigger hand in this and to use their leverage against north korea, and he will want to develop -- president trump will want to develop his relationship with president xi so he can get a good deal on the trade front i actually do think that there are separate issues at this point. >> we have to let it go. one more quick question. we have an idea as to what president trump wants. you have sources inside the administration how much access did you or other members of the western media have if at all to kim jong un? >>le with, this was a scramble, but we did see david nocamura,
an american reporter, have an opportunity to ask kim jong un a question he responded the question was, and it was a historical first question from an american reporter, to kim jong un. the question was are you willing to denuclearize, and kim jong un, through an interpreter, replied that if he wasn't willing to do that, he wouldn't be here in the first place sort of in a sense it's at least on the table to discuss denuclearization we see ultimately the talks broke down, but western media did have some access here that we haven't had before, and it was a fascinating poemt. a real scramble here a lot of the details weren't available to us in advance as to what would be happening, and they literally left the lunch set on the table ready to go the table was all set. the president and the leader had departed the country now on their way back home with no deal >> they didn't even eat. >> no. >> they have plenty of food on air force one, though, so the president won't go hungry. >> michelle, we're going to see you in a few minutes lisa collins, joel wit, thank you all very much. this special edition of
worldwide exchange is just getting started. more on the trump-kim effect high stakes talks collapsing overnight. the south korean markets falling. we'll give you a look at the futures as well. down 41 right now. we are continuing to follow another major developing story out of south korea u south asia. tensions rising between two other nuclear powers india and pakistan both claiming to sh shot down each other's jets. more when worldwide exchange returns. the ibm cloud. the cloud that proactively protects your business from threats, instead of just reacting to them. that lets you modernize and move more of your apps without re-writing. that unlocks insights from all your data and puts it to work with ai. get a faster, more secure journey to the cloud. the ibm cloud. the cloud for smarter business. ♪ ♪
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goebel stocks reacting to the news that president trump and kim jong un abruptly ended their nuclear talks overnight. let's see how the markets and your money are reacting to these stunning developments. juliana standing by in london, and but let us begin with jumana who has the moves in asia, including a slide in the south korean market. >> that's correct, brian let me just be clear all of this happened in the last couple of hours of trading once it became apparent that the signing ceremony was indeed called off before that we had a batch of increasingly bad data out of china and japan. both of those disappointing on the manufacturing side of things when weigh saw was the shanghai composite die down 1% sbrarday moves there. the neek nook also moved 8%.
-- .8%. it became apparent that the deal was off, and nothing was going to come out of this summit in terms of actionable steps. that index closed down 1.8%. a quick look, though, at some of the north korean exposed stocks. some of the them are based in south korea, and others just have revenue coming from north korea and the specific names i want to point to, they are hyundai elevate and shinwon, 21% weaker, and seonindo electric, down as well big losses for the north korea exposed stocks >> big moves there absolutely 18% to 20% slides. thank you very much. now let's check the action in europe in the early morning juliana with more on that. >> good morning. well, that negative tone is filtering through to the european session, although the moves we're seeing here much more modest in terms of magnitude relative to certainly those south korean names
now just to approximate ut this into context, a down day this broke a three-day win streak for the stock 600 the main yourp even equity index. every major region, as can you see beside me, is trading lower. one in particular worth highlighting, the ftse 100 down 0.9% a very strong rally in sterling, which is negative. jp morgan. thanks for joining us. your take-away from the stunning collapse of the talks. the long-term market impact. >> good morning. hi there i would say in the near term it is driving sentiment, and as it should do. we are, you know, geopolitical
risks, be it the north korean angle or india are, pakistan, or iran sanctions, for example. all of these things are important. we would see the longer term drivers to be things like the trade talks that we have with china, fundamental data earnings in the medium to long-term, we will be much more focused on the underlying economic fundamentals >> do you think this would change any of the underlying fundamentals, or is it more of a political story? i think it is definitely something to watch in terms of its impact on the balance of risks. down side risks have increased, and this adds to that. i would say it is important in that sense, but also the longevity of this tension is also another factor. as we've seen with trade talks, it as they elongated in terms of the timeline, it has fed
through -- or seeped into the economic data. you're right it does -- it can filter through into economic fundamentals right now we're looking at the -- >> we ask you to put on your geopolitical hat here. appreciate you rolling with it are because all these things are happening in the last 24 hours you've also got india and pakistan claiming to have shot down each other's jets two countries with nukes are engaged in a conflict on a disputed border. does this just increase global risk do we need to delever a bit, take risk off the table, get a little more safe in the way that we invest? >> as you say, it's not something we can easily focus, predict, or take a very high conviction view on, where this
adds another factor, an increasingly important fact tor that argument. >> jp morgan asset management, appreciate it. thank you very much. up next we'll get you up to speed. the other top headlines, including some big dromz in some big tech stocks overnight. bach shares down more than 20% other stocks on the move we'll give you a full rundown next
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let's get a quick check how your money is. dow futures are down 40 points right now. relatively muted considering what we have seen in the asian markets. all right. up next, asian stocks are down as trump says. no deal with north korea we'll take you back to vietnam for more insight and analysis on the stunning turn of events. stick around your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain.
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internet that brings your home together. this is beyond wifi. this is xfi. [ joyful laughter ] simple. easy. awesome. xfinity the future of awesome. it was an interesting two days, and i think actually it was a productive two days, but sometimes you have to walk >> no deal president trump abruptly walking away from nuclear talks with north korea. we take you back live on the ground in hanoi, vietnam, as the fall-out continues and worldwide exchange rolls on. >> welcome back, everybody it is 5:30 a.m. here on the east coast. i'm brian sullivan thanks for being with us here on worldwide exchange talks between president trump and kim jong un from north korea collapsing overnight
trump and kim leaving lunch on the table and walking away from each other the president is now already headed back to the united states without a deal with north korea. cnbc contributor car usa car arabia are also now joined by nick burns, former undersecretary of state for political affairs. let's kick things off though with eamon javers. it's really a stunning turn of events air force one was wheels up for home several hours ahead of schedule today they literally, as you mentioned, left lunch on the table. the tables were set for that meeting between president trump and kim jong un. that was expected today, and no signing eremony. the white house had put a signing ceremony on today's official schedule. that obviously scrapped as well as they hastily retreated from the negotiations, and the president left the country here saying a fond thank you to the host here in vietnam, but ultimately, walking away from a
deal with the north koreans saying that the north koreans weren't able to offer as much as the american side wanted here. interestingly, in the president's press conference that he held a couple of hours ahead of schedule here on his way out the door, the president raised the idea of the negotiations with china over tariffs, and he suggested that he might be willing to walk away from that negotiation as well.
people often end upagreeing it a worse deal than they should because they're so committed to getting to an end game no commitment now. at this point it's anyone's guess the next time they might sit down face-to-face and then the i want politics of that for the denuclearization of the korean peninsula also unknown at this point >> thank you very much >> all right you talk about a deal. well, guess what, president trump and president xi jing ping of china, they've got a deal to make regarding trade that has far more ranging economic implications. what do you think china's take-away is going to be from donald trump walking away from this nuclear deal? they do not want to see the two sides threatening each other,
and they're going to want to make sure that as a very important player within that -- within the region that they actually have a role, and in fact the chinese foreign ministry reacted already saying that the dialogue is worth cherish and that china issing willing to play a constructive role just to show how close the relationship is between china and north korea, china confirmed today that north korea's vice foreign minister is already in beijing, and the two sides plan to have a discussion about it. now, eamon had mentioned how president trump had suggested that he could walk away from any deal, which would include a trade deal with the chinese, but what's also interesting in that press conference is how much praise he lavished on president xi, which could potentially be used to president xi's advantage as he heads into that important discussion over trade because since president trump seems to have so were affection for president xi, that he could
potentially use that and remind president trump that he does indeed have influence over north korea something another big reaction was out of the south koreans within the region. the south korean president's office issued a statement saying that it is unfortunate that there was no agreement and that south korea would support the active dialogue between the united states and the north korea koreans, and, of course, south korea and the south korean president in particular would be the most disappointed in these talks. the south korean president has been hoping -- in engagement and exchanges. now without the traditional
ally, the united states obviously got a really important one. he won't be able to do that. he is going to be much more restrict restricted the japanese also starting to weigh in they are going to be speaking very soon with president trump one thing that was interesting and would apply to japan is that president trump had said that he had kim had told president trump that there would be no testing, and also, that there wouldn't be -- that the u.s. would not want to weigh and ease sanctions. there is one senior official that mr. trump did not make concessions easily there's a bit of a relief in japan.
>> he says thank you to our generous host in hanoi this week president trump, prime minister, and the wonderful people of vietnam. all right. let's bring back in michelle car russo cabrera and ambassador nick burns michelle, you were in singapore, and you were there that was obviously historic because it was the first time that they had met. this was the second time what do you think was the difference going in to this one versus that very first meeting >> we know there were a lot of differences between those. there's been -- when you speak to senior administration officials who have been involved in the process since that first summit, there's been an increased amount of communication to agree that we've never really seen before between the two sides. knee been appointed to be the counterpart to our special envoy. the ability to communicate with them has increased dramatically. there were much better expectations and understandings going in than that very first
meeting, which president trump has called a get to know you session. clearly today is disaincident positiving maybe not surprising, because it fell apart on the traditional things that we've seen these kind of negotiations fall apart on sequencing >> it's geopolitical game of chicken. do you think the united states should have been a little more lenient in relieving some of the sanctions, or do you believe that the north koreans simply were going to ask for too much the relief of all of the sanctions. >> i think president trump made the right decision here. there was no deal that the united states could have accepted today because the north koreans haven't taken the first step to dismantle their nuclear apparatus. they haven't even identified where all their fissile material is or where their nuclear weapons are. that's normally the first step in any negotiation like this they've shown remarkably little progress since the talks began in singapore
the president made the right decision because what -- why are sanctions important? these are leverage over north korea. it's why they're at the negotiating table in the first place. kim wants capital investment he wants an end to sanctions he also wants legitimacy he has gotten a little of that from the two meetings. this was not a good deal, and the president is -- and secretary pompeo are going to have to work very quickly to re-establish leverage on our side, meaning china, south korea, japan, even russia are going to have to join in the united states in maintaining those sanctions. that's going to be difficult if the chinese and russians, of course, have drifted away from since singapore. >> ambassador, this is -- north korea is arguably one of the most closed and one of the smallest and maybe one of the least influential economies in the world. yes, they've got a bodyguard, so to speak economically, in china just to their west.
obviously the north koreans are not willing to give up their nuclear weapons testing policy that kim has for the survival of his mafioso regime that's what this is. we had to have our eyes open the head of that government had turned down any serious attempt to negotiate united states this is a major step backwards the united states has to return to sanctions and pressure. >> ambassador, good to see you again. it's michelle here when you listen to the news conference, and they started to get a little bit into the details about where things fell apart, we've heard from chairman kim who has spoken to north korean people saying he is willing to get rid of the enrichment it sounds like it fell apart perhaps on the missile sites
is that your interpretation as well why is it important that he has to do both >> it is, michelle apparently chairman kim was willing to give up or dismantle the pyongyang nuclear enrichment facility there are other enrichment facilities in the country and, of course, the missiles and there's an entire nuclear apparatus that has to be deconstructed in the united states and the rest of the world is going to get what they want. it's just hard to see north korea backing down when this is -- this is what they really want to hold on to this missile system and nuclear program >> victor chaw, who you know is
with the bush administration, is also in negotiations with the flouktans. he spoke with the councilman of foreign relations and said to your point about having president trump do this meeting so early in the process, he wasn't a fan of that, but he did say that back when he was doing the negotiations, they were told you're approaching this the wrong way. you really have to go to the head of the country. that's the person who makes all the decisions. what we're seeing is a real life experiment about whether or not that worked. is there an advantage now to be able to say, okay, we tried that and guess what, it hasn't gotten us anywhere, and we can show the whole world that this guy really doesn't want to go along we've tried every method possible and now we've got all of this evidence on our side about just how belligerent they are. >> i think that's exactly right.
the president was right to try this it hasn't worked we have to go back to full sanctions on north korea, and that's going to be difficult, and you were mentioning this before because we've got a lot in our plate with china. we're trying to end the trade war with china the chinese are very critical to this effort to reimpose substantial sanctions. there's also a problem with -- not a problem, but there's a difficulty with the president of south korea. he has invested a lot in his peace program with north korea we'll have to get the south koreans back on board. this is a authority tarn regime. they only understand force and pressure and that's where the united states needs to go. >> it's very interesting if you listen to the language of president trump's press conference he said that north korea was willing to denuclear a large portion of their arsenal, but not the area or areas the united states wanted. they wanted all the sanctions
lifted not denuclear everything i'll put you on the spot about maybe north korean geography the north koreans were actually unwilling to give up >> what the president and the secretary pompeo mentioned is that the north koreans apparently made an offer that they would dismantle the nuclear enrichment facility at major complex. the problem with that is that one has to assume they have other facilities they haven't told the world about, number one. number two, there's the entire nuclear apparatus of the country. there's the storage of physician i'll tefrl there are ballistic missiles there are nuclear warheads we know they have nuclear weapons. they haven't declared at all where those weapons systems are. that has to be the fist step, so frankly, i don't think that kim jong un made a substantial
compromise offer, and this was an easy call for secretary pompeo to walk away, and it's gooed that they walked with. >> ambassador nicolas burns, a real plush one final question to you. the headlines are going to be, as we already have seen them, bankrupt ending. they walk away no deal. i get that >> certainly there's greater communication between both sides. >> by greater you mean some? >> yeah, yeah. it used to be nothing. that's extremely important, right? that's important for deescalation for our allies who live in the region the president says that kim jong un promised still no more missile testing. that's extremely important to the japanese and to the people who live there because they're the ones in the pathway. to the agree if that continues and if kim jong un keeps that promise that is certainly going to be a great relief to the people living in that area
>> they did say they would try to keep talking. great to see you, michelle >> you too on dick, more on the economic and the market impact of the stunning turn of events in vietnam that is not all that is happening on this busy thursday. coming up, some of the big money stocks stories you need to focus on, including a big move for a stk ouerke icarnd hing for something more... ...red-blooded. right this way. you thirst for adrenaline, you hunger for raw power. well, you've come to the right place. the road is yours, dig in. that's where i feel normal. having an annuity tells me my retirement is protected. learn more at retire your risk dot org.
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including av inbev reporting better than expected fourth quarter profit, and shares are rising. the budweiser maker also forecast a lot of strong profit and revenue growth ab inbev, one of the few names that are rising. shares of box losing a quarter of their value today ouch the cloud storage company's fourth quarter revenue missing foesh. box was hurt by a slowdown and new customers. stock down 24 % right now. also down in big tech, hp shares they're sinking after first quarter revenue fell shy of most estimates. it was primarily due to weaker than expected sales of pc's and printers hp ceo citing economic uncertainty and sensitivity among pricing, among customers as well. hpq down nearly 13%. also sliding, and i'm not troo ig to be the bearer of bad news here, folks, but booking
holdings the operator of sites like priceline.com, booking.com, open table, projecting first quarter profit below estimates booking holdings spending more on marketing and advertising for i it's home rengts listings. that stock down 9.5% up next, navigating all the niez dc drama, fed talk, and an interrupt ending to the trump-kim summit, and more tensions on the border of pakistan and india all weighing on your minds. we're going to break down the key things that you need to be watching as we help you navigate the noise on worldwide exchange. dow futures down 32. back after this.
and try align gummies, with prebiotics and probiotics to help support digestive health 5:52 p.m. in hanoi, vietnam, where the sun is gings to set, and the sun has set on the trump-kim negotiation as president trump has already left the country with no deal, saying north korea simply not ready to give up enough in the nuclear
program. you had engineer open powell's testimony, and you had tension between two other nations, india, and pakistan, and the upcoming trade negotiation between the u.s. and china the bond market -- the bond markets already moved this year. the benchmark ten-year note sitting right there at 2.67% given what is happening on the border reasonable of kashmir, both sides, india and pakistan, saying that they have shot down each other's jets. keep an eye on the so-called fear gauge the measure of market risk the vix. the vix is up a little bit today. about 2% to 15 15 still a relatively low historical level again, that index, which is also an investment vehicle of its own, could surge at any moment let's bring in joe, senior
market analyst at x street with everything going on, it's almost hart to keep track. are you surprised the volatility index isn't moving higher? gin canadian and pakistan. >> trump -- the korea deal, the korea situation is one that only accepts the markets when they start launching missiles it's really not one that has any impact, except for its fear factor, and this summit didn't end badly. it didn't produce a deal, but they seemed ammicable. trump made a point that they're going to continue to talk. i don't think that's going to be much movement. where the relationship is between the united states and north korea now is infinitely better than where it was two and three years ago. that's really the take-away from this deal. i don't think there's any sense
that this is going to escalate >> the north korean -- listen, the north korea negotiations argue bring a political story. they're important for the world? economically no. the economy is minuscule is there a bigger impact on the upcoming trade negotiations which do matter between the u.s. and china? i wonder if there's a part of game theory here, gamesmanship, if you will, that president trump was sending a signal to china i'm willing to walk? >> it's interesting because the deal that was presented according what they're saying, the deal that was presented from north korea did not -- they were willing to deactivate one plan they have a whole series of nuclear installations, and they wanted the -- all of the sanctions released for that. i don't think we're going to do that.
>> if we don't get a deal with china, a trade deal, what happens? to the markets >> i think we have a real market, and the dollar would probably rise because people would run to it for safety, but for the equity markets, it would be a bad -- very bad development because everyone is now looking. they're priced in, joe >> it's not completely priced in, but it's probably -- >> i believe we don't get -- they're going to talk at mar-a-lago president xi and president trump. >> that's an interesting visual. >> it is one wonder if maybe this was president trump's plan all along was to play hardball >> it is possible. i'm not sure since north korea offered something we couldn't accept, you don't know where it comes from, but nevertheless, the result is the same >> it's a pleasure to get your
insight. geopolitical hat was on this morning. appreciate it. we're going to continue our coverage of this big story on "squawk box. wordwide exchange out for today. "squawk box" is next my mom washes the dishes... ...before she puts them in the dishwasher. so what does the dishwasher do? cascade platinum does the work for you, prewashing and removing stuck-on foods, the first time. wow, that's clean! cascade platinum.
zach stone steven schwartzman will way in. tech will get up to speed on double digit declines from some household technology stocks and some big red flags for the current quarter. it is thursday, february 28th, and it's -- it's not a leap year, then tomorrow might be march 1st, 2019. "squawk box" ginds right now.
we're leave at the nasdaq market site. we've got a big day ahead. we'll be talking about north korea and so much news one of the other reasons we have a big day ahead is becky quick is in mit at cambridge >> i'm here at mit because today is the launch of the schwartzman college of computing this is a brand new move for this university. the biggest overhaul for the school since the 1950s