tv Bloomberg Markets Americas Bloomberg May 24, 2018 10:00am-11:00am EDT
here in the studio, marty. a long letter made public by the white house. this is the first time north korea has heard about this? >> north korea, the june 12 summit is off. trump sending a letter to kim jong-un and he says, you talk about your nuclear capabilities but ours are so massive and powerful that i prayed to god this will never happen to you. wonderful dialogue had happened and it is only that dialogue that matters. he said he felt that inappropriate at a time when the north korean leader was also discussing his own nuclear capability. this as ongoing nuclear capabilities of china and japan continue and it comes at a time
when president is receiving praise on capitol hill. senator marco rubio, a frequent critic of the trade policies ofo echoing his support this. >> we can see the reaction instantaneously. the s&p 500 down the same. this seems like an absolute breakup letter. this is it, it is not happening. >> the narrative before this meeting was, don't count on this meeting really happening. what is surprising, what the president was criticized for was agreeing to the meeting so
quickly and now it seems like cooler heads prevailed. these are the circumstances. trade relations with especially china. steam as theup letter was released. >> threatening nuclear war is never a good thing. it is destabilizing. to say the least. it comes on the heels of caring out a nuclear site. is this more of a reflection through the back channels of could be both it of these things. ame were reporting there is
danger. so, it was definitely a gesture of good faith. the president decided he would make this decision regardless. >> what will be the responses from congress and the international community? congress said there were many members of congress who thought it was too hasty to agree to the meeting in the first place. i think they will generally support the president. there is a risk of doing that in matters of foreign policy. the world may not welcome the fact that this is another example of seeming chaos in foreign relations in the u.s., let's face it, is the gorilla in androom on these things whenever there is a lack of
consistency or clarity, it is destabilizing. >> we might be hearing from president trump with regards to the letter because he is set to back inthough it walked the 11:00 hour. that would be when president trump would have the ability to get in front of a microphone and comment on this. to gather isting they believe kim jong-un was ultimately setting up the united states to take the blame on this. you have to look at the chinese trade negotiations. the south korean leader was just here at the white house several days ago. felt it wouldans
ultimately happen and we should note the political context. there was chatter president trump receiving a nobel peace prize but ultimately, we saw them in tents if i when the president's national security adviser suggested denuclearization might be that from libya. that received a walk back from president trump himself several days later after receiving intense criticism from north korea. we then heard there could be an alternative route several days ago that they would try outside international investment to build up infrastructure in north korea with respect to getting them to disarm. intenseragile into negotiation with north korea that ultimately now produced.
you also have a situation where north korea, u.s. officials delaying this might not be a bad thing as a framework of any type of nuclear disarmament deal continues to get discussed. again, just noting secretary of state mike pompeo speaking earlier this week. to stop its nuclear ambitions, back to square one is what it looks like. >> yes. be a negotiating tactic? >> absolutely. anald trump consider sums of great negotiator and this might be of in his mind. donald trump earlier this week cap made a suggestion that china might have relaxed some of the helpions put in place and north korea economically and i think that is in them orton thing to watch. that second meeting, he brought
it up. the chinese start relaxing border restrictions, donald trump has said maximum pressure on north korea relies heavily on the cooperation of the russians and particularly the chinese. vonnie: secretary of state mike pompeo says the trump letter has been transmitted to north korea. , it sounds like we are all getting to hear about this in real time, which is phenomenal. >> just here this is an usually the way foreign policy is one, it isut in this not only done in real time but via tweet. and it is done via leaks to the press. it gives the impression of being somewhat chaotic, which it is. are watching the
pictures now. mike pompeo is actually reading the trump letter. reactiontting a little from congress as well with marco rubio at the moment the first person to make a statement. statementsiously get from multinational agencies. >> i think the world welcomed the idea of a deep -- denuclearize to korean peninsula, and certainly the south koreans were very much in favor of some sort of accommodation with north korea. so it is a setback. i don't think donald trump will be subject to criticism if there being criticism, it was naive at the beginning and having to reverse that. i think generally, the world will be supportive of efforts to denuclearize korea, but they will not be happy with the escalating rhetoric about war,
which helps no one. be thisseem that may was just woman to him by a comment made by a north korean official. is that just a bait and switch? >> that kind of rhetoric has gone back and forth throughout the whole attempt to reach the table. i don't think this specific comment precipitated the letter. i think mike pompeo probably had a major influence. he has been to north korea and he understands what is happening here. the john bull of national security advice that he gave probably solidified it in donald trump off his mind to give it up. mattis is obviously not happy about the prospect of having to think about conflict
in the region, which would be disastrous for both sides. conflict in the region, which would be disastrous for both sides. vonnie: i want to point out the market reaction is calling right now. we are off below for the dow and the s&p 500. the index down .4% and the 10 year yield is 2.96%. and the stocks are still up as well raising 1% as the market is lower. let's bring in haines of ever core. what is your reaction to this very public letter that apparently has been transmitted to the north koreans? >> good morning. a couple comments. one is i think this is a negotiating tactic. the letter doesn't say we're never having a summit. it says we're not having one on this date or place. to me, it is clearly an attempt to reset the negotiated -- after north korea started the expected shakedown
tactics. a couple of other points. i want to emphasize that the united states and china have similar interest in daving north korea denuclearize and i expect that to continue. thirdly, this is a lot of work done by our china research team, north korea is essentially bankrupt. part of what president trump is doing is putting additional pressure on north korea to say look, if you want to come to the table and do this straight up, we can. on if you want to insist your usual tactics, then i'm not playing. on your usual tactics, then i'm not playing. i think there is that here it finally, i expect this to not have any real pressure on north korea to say
impact on the u.s. and china trade negotiations. u.s. and china are not together for the sake of north korea. this is mutually reinforcing. but my every -- my view is we have been off to a good start on trade negotiations and those will continue. trade negotiations will take months regardless. >> it is a fascinating letter. i am not sure he has had a chance to read it but it is a very emotional letter and it makes it sound like president trump has built up a very or perhapsfriendship president trump is trying to give that impression to the leader. will that actually work? >> i think it is possible. i have seen the letter -- the letter and read it with care. what i thought from the letter is it is a combination by the united states president saying i a good we were having personal relationship here in building upwhat i thought from r to a talk and a good result but if we go on this way, we don't have to talk.
this doesn't have to be another one of the meetings you have with western governments over 25 years and the united states in the last 25 years in which you hope to get something for nothing. it is a different sort of negotiation and that is clearly what the president is trying to convey. vonnie: what can kim jong-un do to change the dialogue and the possibility of a summit again? does he have to reassure the u.s.? >> i think what you will see is more engagement directly with china. talks in which china pointed out the need for north korea to denuclearize. i think that will probably happen. will probablyu see that you have an open door from kim jong-un, so, you know,
it will depend on how much he feels he is able to go forward with the complete support of the state apparatus and particularly the military apparatus. those are open question. effect how does this perception of the u.s., north korea, and china leaders? think that will have to unfold in the next couple of days. it is also my guest that -- my guess that things will go silent. if they come back with a belligerent tone to the meeting cancellation, i think that would there is the next time a chance for meeting that much more remote. if he were conciliatory, it would look like he is a weak leader. i think you will hear very little in the next few weeks
until some avenue of dialogue is revived probably through china. vonnie: it is amazing. june 12.r is there more or anything else north korea can do domestically to put this back on the rails again? >> there are, blowing up of sites, that is certainly part of it. >> there are a number of things north korea could do showing a greater commitment to the denuclearization program other o talkrankly, have a closethe with china, which will continue
.o talk korea whether it has put pressure on o with the nuclearization program or not, there are a variety of that gestures to engage in would be helpful here. but they will need to show sincerity going in, a commitment to a cheaper result, or this will not happen. that will continue and there will continue to be pressure not .nly by the united states kevin is an washington, d.c. for us. thanks to everybody. let's get to market reaction.
julie hyman is here. stocks ared the lower. julie: they rp register make it more clear what we have seen even atg here, we saw the session, it with straw of two thirds of 1% in the the session, it with straw of two thirds of 1% in the s&p 500, i could venture to say the drop is not something with a high likelihood of a nuclear conflict. with a high likelihood of a nuclear conflict. perhaps a little more of a likelihood than earlier this morning, for example. on the day, seeing a pullback of .1%. one of the ways to look at this, south korea, there is a south korea etf. we can offer a reaction. i can look at the today chart stacking up and
down, it dropped quite sharply in the wake of the letter. stackingthe yen is seen as sora haven here. you see a clear reaction. now seeing the south korean currency down. those are various ways we're measuring it across asset classes. we were already seeing a second straight day of declines for yields. you can see it got a little more after we got no letter. had the 10 year in several weeks time. continue tothing to watch. not really having to do with the korean situation, but oil thiss, worth mentioning morning. showing the five-day chart to show the trade we have, the decline in oil prices,
especially the plunge we saw earlier today, oil bouncing around on the korean headlines. news coming from the russian minister that now opec discussing whether they will start changing production targets and that takes it out of oil in addition to the inventory report we got yesterday. that is also playing out and market shares down relatively sharply today. that market for reaction. more on the breaking, president trump canceling a planned summit with north korean leader kim jong-il in. we are joined now live in london. yet in theeaction last 40 minutes? little early for that but there are two things to be rest of theway the world and europe will look at this a little different.
the first is, the reason people really embrace the idea of this summit was they had been very concerned about the level of rhetoric they had gotten to last year. it is the same way of really diffusing it. the nuclear arsenal, other countries will be happier if we don't have that kind of rhetoric. the thing to say is in the u.s., the focus is all on complete denuclearization. always interpreted a
little differently certainly in north korea where they looked at not having to give up their weapons at once and that is the root of why the summit has failed. but elsewhere, they also generally did not see it as a real possibility. to the extent the u.s. is willing to be a little more around the idea of denuclearization and how far that could happen, they will get a lot more support for china and russia and so on. vonnie: let me bring in another guest. the former assistant secretary of state. though we had a little hiccup -- other day when he said
>> it is back to reality. the president had a believe early on that he could achieve something his predecessors had not. i think this is one of the why the idea of starting a negotiating the process at the leadership level as opposed to starting up a working level where you are able to test, you know, how serious the other side is and what they are paired to do. president made the right decision and we assess where we go from here. previous guests have suggested as possible it is a negotiating tactic and it does not mean it is over and a summit could take place. what are your thoughts on that reaction?
>> the united states will have to reassess because there was the idea that in a first meeting, the chairman would agree to denuclearize, and now i think we recognize that denuclearization is -- means different things to each side and it would require a lengthy process to determine how you might do this. it is still possible over time that there will be a meeting, but i think it is important to have a reassessment on both sides of what the purpose of a negotiation would be the how long it would take. what is critical here is one of thegenuine achievements of president's decision to accept a meeting with kim jong-un was the he defended nuclear
and missile testing and that will be a cue for us going forward, if kim returns provocative behavior that we have seen from north korea in the immediate past. then, if it continues to holster the nuclear and missile capability, then you can see the leaders coming back in a calm -- in the coming months. vonnie: give us the idea in washington and this morning, and the secretary of state, for example, there were appropriations -- preparations effect. there has to have been if the summit was taking place already in the midst of a couple of weeks away. is there a disarray? >> i think there is a fundamental disagreement in the team as to the value of the
meeting and what was realistic in terms of what north korea would buy and at what cost. you have john bolton, part of , john signingthis on, saying on television that he would pursue the libya model, and the vice president reiterating in the last 24 hours saying, ifr that, you think we will denuclearize, i think now we will have to go back, the trump administration has to decide what it can get from north korea and what it is willing to give. we're out of time. we saw tweets from the president this morning, and also on the bloomberg talking about
diplomacy extending from anxiety. he is referring to the north korean leader. does it spell trouble? well we have lost him. >> i'm here. i wasn't sure that was directed at me. i think this is ai think this if why improvisation by president carries risks. hehe accepted without a process behind it as to what we would achieve and this is the consequence. thanks to pj, former
down three quarters, the s&p 500 down .7%. the dollar index is holding around one third of 1%. this on the news that the north korea summit is off. all right. let's get to taylor riggs. taylor: breaking news of the president trump has canceled the summit with north korea's kim jong-un. the president cited what he calls anger and open hostility in recent statements. it is unclear what happens next. said if theump has summits were to fall through, the u.s. would continue exerting maximum pressure on korea. america's allies don't think much of president trump's push for tariffs on cars and trucks. it could lead to a breakdown of multilateral trade system here the german chancellor says her country is committed to fair and
free trade. reduce tariffs on a wide range of imported consumer goods. forrprise jump last week first-time applications for unemployment benefits. by 11,000.ims rose the latest number is consistent with a tight labor market and is off from the 48 year low. the off from the 48 year low. the government comes out with its may jobs report next week. the u.k. believes the kremlin was behind a phone call to form an secretary -- former secretary boris johnson. he pretended to be the prime minister of armenia. the russian government discrediting the u.k. following the poisoning of the former russian spy and his daughter. global news 24 hours a day on air and on tick tock on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am taylor riggs. this is bloomberg.
for more on north korea, let's bring in bloomberg's andington dc bureau chief kevin cirilli. let's start with you, kevin. more reaction coming to the idea that the summit will not happen on june 12? kevin: we are hearing from hawks on capitol hill including marco as well as congressman kevin mccarthy, all of them, republicans and raising president trump for his decision to withdraw from the planned summit with kim jong-un in singapore. are calling it that they were able to see through kim jong-un. let's read some of that from the letter.
someday, saying it is thanking them for home of the families. home of the families. the most important summit, please do not hesitate to call or write me. also suggesting and weighing the idea of the united states nuclear arsenal at a time when the back-and-forth between the countries of the last 24 hours have completely deteriorated. >> let me ask you how you are anticipating this. >> as people may recall, as late mike pompeo, the secretary of state is saying if
there was a verifiable denuclearization, could go on fox news this morning just a few hours before the letter him out, saying he probably serve a denuclearization p are both sides seem to try to take steps to preserve the summit. destroyed its main bomb testing site as well. it seems like an effort to keep this thing alive but with donald trump's's letter, it is over. >> what is interesting is, just putting out at the south korean presidency is trying to figure intentions.s the president met with the south korean leader just yesterday and was talking about having a wonderful chat and intentions id like everything was going well. any possibility that something transpired between them to make this happen? >> we do not know exactly what happened on the phone call. we know that no one was very intent on having the summit. his neighbor is north korea. these weapons are
pointed right at his capital. nobody on earth probably wants the summit more than that leader to try andvery hard make it happen as you recall. south korean leaders floated the idea of donald trump winning a new leader -- a nobel prize if it were called off. do want to sort of add-on to something kevin said earlier. let's be really clear what happened. the hawks one. -- won. float theperson to idea that kim jong-un could face the same fate as market off the in libya, a lot of hawks on the hill, some of those folks, margaret -- marco rubio, they did nottors, want this to happen and they have been advocating publicly to scuttle it. it sounds like trump actually finally kind of listens and put the summit on ice. vonnie: apart from obvious one or two people who wanted this to happen, is there anyone who wants the u.s. to meet them on
june 12? >> a lot of people on both sides of the aisle feel there is a to trying to pull kim jong-un into the international community. north korea is often referred to as the hermit kingdom. very little is known about it in the west except for the occasional missile tests. a lot of people think it is low is better to be talking than not. that is a view that people seem to be holding. donald trump seems to embrace that. he was thinking, if i could just get in a room with and offeri could talk him the benefits of being a friend to the united states, economic partnership and who knows, perhaps a military partnership, and he will see clear to ratcheting this down. he oh's has great faith in his own ability to talk to anybody about anything. there are a lot of people including the president who are interested in having the conversation happen. others weren't and president
trump sided with the people who wanted it to go away. we are left with a situation once again where so much rhetoric has happened. it is something unbelievable that was put out there, and we talked about it for a long time, and now it looks like it will not happen at all. this is a hallmark characteristic of the trump administration. is important to note how unprecedented the rhetoric is between these two countries. president trump several months ago referring to the north korean leader as little rock man twitter and just in the last 48 hours, a top north korean diplomat referring to the vice president as a political dummy. twitter andthat in itself is vo say the least as far as ongoing nuclear talks. minutes,st couple of south korea releasing a statement that they are trying to figure out exactly what u.s.
intentions are with the cancellation of the june 12 summit. in the last minutes, we are getting word from house speaker paul ryan, republican in the house of representatives, praising president trump echoing falling in line with trump republicans and hawks and what they are saying on capitol hill for the cancellation of the summit. saint --er rates in a in award a peaceful resolution but that would require a much greater degree of seriousness s- in a statement at the north korean regime has a commitment to stability and we must continue to work with our allies to from the kim regime. let me ask you. mike pompeo is testifying right now. that is diverting for him. getting a small bit of reaction from his quarters. thewhat is happening at state department now and the department of defense? are people just going about their daily business as they have been, or is there a little shock and disarray?
>> it is interesting because mike pompeo, more so than trump, he traveled with an met with kim, he was trying to lay the groundwork for this to happen. think inside certain quarters of the trump administration and pompeii would be in this camp, why not talk and have the conversation? we are not giving anything away by talking, see where it leads. maybe something could happen and maybe not. , we have had various conversations over the years, the obama administration, this is in the first time the notion of direct talks with him occurred. there seemed to be softening on the north korea side as well. i think people good faith said there might be an opportunity here. let's give it a try. him -- the comments from the senior north korean leader calling vice a politicalke pence dummy, i am sorry, if you are donald trump, that would be hard to hear and hard to listen to
and there is always rhetoric back and forth a political that is sometimes not pleasant at i think trump was hearing a lot of voices andng this is a bad idea now they're calling his vice president names and a dummy and may be he said this isn't the time, early signs of -- the relations are not all there and we need to put this on hold. i still think there is a chance it could happen. i do not think that would be anytime soon. i think they got very close your the white house two days ago put announcement, assigning reporters to travel to singapore for a summit. this got far down the tracks. i know today that seems it completely blew up our but i would not rule part that rule out down the road that this could come together if they could turn down the temperature on both sides. finally, let me ask you what you think the catalyst was people a lot of news this morning, including the destroying of a site by north korea which may or may not have been a gesture, who knows. the president giving an interview on another network and
he was active on twitter. what is the one catalyst that made him sit down or have the writing of the letter been done already and waiting to go if necessary? >> i am reluctant to read donald trump off his and anyone should be. did this in a very trump way. it was an impulsive decision and people may recall weeks ago, south korean envoys came over and floated the idea and said is is telling us that he open to having a direct conversation with the united states and the president himself and i think trump, again, he is impose and we know this. he saw the chance for a big gesture, abig moment.lly historic i think as the week has passed, little reality has set in. it is not the first time the united states was talking to north korea and different levels. there had been a lot of negotiations. they had always fallen apart and the north koreans are tricky to deal with. they do not want to give up
nuclear weapons. the more trump and his team looked at this, putting aside hard-liners who never thought it was a good moment idea, and evee who did, the more they looked at this, the harder it looked and the less chance that success seemed likely p right don't think donald trump was going to the meeting unless he felt confident he could come with a win. it seems less and less like -- likely as the weeks went on and at that point, trump decided why do a meeting where i will potentially come away with nothing and maybe look like i sort of lost a little ground. vonnie: thank you for your perspective. and always, thank you to kevin cirilli, chief washington correspondent. i want to bring you up-to-date on what the markets are doing it we saw a selloff as soon as the letter was made public. the dow down .8% and the s&p 500 down two thirds of 1%. a lot is going on in other parts
of the world as well. pretty much a sea of red if you look at bloomberg. with the exception of a couple of european countries, it is a red day all around and yields in the u.s. are lower always, thann cirilli, chief washington correspondent. i want to bring you up-to-date at 2.96% on the 10 year. what all of this means. this is bloomberg. ♪ this is bloomberg. ♪
earnings this morning were were gettingd we individual stock stories. italy story is ongoing and turkey is kicking off with a campaign really getting into the year and then we get a letter .rom north korea >> we were starting to drift higher before the news crossed the wire. then you saw people basically thought, so there is still geopolitical risk to break into the market. we came off of yesterday feeling y the economy. -- good about the economy. some of the international risk that the market has continually have to go back and forth to reprice seemingly on a week to basis, that is what you are seeing today. when you look at what you saw, the spike you saw in the vix today after the north korea headline and the drop you saw on the market, a lot of this is
repricing of the volatility or potential volatility we could see going forward should the negotiations not pan out the way we think they should, and that goes the same for trade issues. not a massive selloff but it is relatively contained and you have fundamentals in the market and are still holding this above critical levels. i think we changes, should hold at least somewhere relatively stable. been a k's down 1.1% in the overnight session. in germany, the dax is down 1.2%. in latin america, we have stories going on, the brazilian -- down 1.9%. markets have a lot all over the world. once this is settled in and we get a reaction or two more, will the markets go back to commenting on the trade story? what can happen now with china if the north korea summit is off and it is partially china's fault according to the u.s. mark >> relations are
good in china -- with china. but you're right, we bring up some issues are on the world and there is a lot swirling around the u.s. that investors are going to have to price in. i guess the one upside if you are looking for a silver lining, is that it is pushinggood in ch. interest back into the safety of u.s. markets, not necessarily more moneyt you see back in the u.s. treasuries and that could eventually give a boost to the broader equity market as well. vonnie: what market would you look to for guidance at this point on what momentum will be from now on? exactly him -- it is deathly giving back the losses. keep an eye on the
dollar. we forgot about it. it has come down a bit whatever stability we could see their, keep in mind treasury yields and also look at the flows coming out of the bird -- the emerging market. an eye on the dollar. we forgot about it. it has come down a bit whatever stability we could seethat store but it ise of days possible we will see money head back into other markets as they stabilize primarily into italy and brazil. i think you see a little bit more of that money delete up in a more equitable manner around the globe, i think it would more safety out and investors are willing to take a few more risk -- risks. vonnie: a couple of terminals now, we have emerging market terminals up in the currencies that are stronger are the really, theso, so, emerging market currencies again having a bad day. as you can see, the worst performers are obviously the and for-- down 28%
once, outperforming to the downside. let's talk about turkey for a moment. we have the kickoff of the presidential campaign along with 300 basisonce, points interest e increases. strategists are saying this will not be enough to stem the tide's for a few minutes but it will continue to depreciate. >> you move into a different phase of an autocratic government where it is going beyond just public policy and into monetary policy. when you listened to his speech today, he did not even touch on the currency issues or a lot of monetary policy issues. look,ered clear handset, worry about all of these other things. with the international market is telling you is, do you want to be exposed to the risk going on in turkey now, until you get some clarity on how much of a leash he will give to his central bank manager. >> i just wanted to point to
gmm, you see loss of asset classes. and risk offs up sentiment had been already on asia overnight with the idea of tariffs on chinese imports. 4.5%, not back up at that mark yet, but the mexican peso is close to 20. when does the market get a little bit of a break from the uncertainty? just where we are at right now. you have a situation where, until we get some sort of to what u.s. relations will be, not only with our partners in terms of europe and canada and mexico, but also how we are dealing with china obviously with get akorea, once we
little clarity, it does not have to be resolved but we need clarity as to what the direction will be. i think that is why you see the reaction now. vonnie: i want to point out the united nations get a little clarity, it does not have to be resolved but we need clarity as to what the direction will be. secretary-general is urging the u.s. and north korea to continue their dialogue. more on this next. this is bloomberg. ♪ ♪
vonnie: i am vonnie quinn and this is bloomberg markets. a letter m&a to from the white house shortly board -- surely before 10:00 a.m. eastern. cirilli,o get to kevin chief washington correspondent. >> publican from georgia, your response to that from president trump? >> we have had a dialogue going on. secretary of state pompeo talked directly to kim jong-un p are i talked injing when he
china. today's more posturing, i think. as you said, do not give up your .icket to singapore just yet given the rhetoric of the last few days, i think they need to see a strong message from the president and he did that today. we want to go to singapore and have an open dialogue and move on here that is the total -- total denuclearization as well and potential peace treaty talks down the road. >> what do you make of the rhetoric in the last way for hours question mark a top diplomat calling the price -- the vice president a political dummy for example. what do you make of these back-and-forth's? >> it is not constructive at all it we want to move to a more south african model. it worked out to south africa's benefit.
if weif we never get into these conversations, we could move the ball forward and that is what might pompeo has as his top priority now. >> the president will not go to singapore on june 12 but you and other lawmakers will be. talk about those planned meetings. >> these are rescheduled meetings they have every year. it is where the defense leaders of countries around the world going talk about common interest and so forth. we have a delegation for the armed services committee and i look forward to that. i just got back from an extended trip in china and south korea. it is an ongoing effort to maintain an open reengage me, not only from the executive branch but the legislative as well. >> you mentioned japan and china, to crunch -- two countries criticizing president trump's decision with regards to raising auto tariffs up to 25%. the thoughts on that proposal? >> we have been engaged in conversations with them. i was there months ago and had a conversation.
we have their attention now. they know that if we engage come we can get to a common solution. i think they want the same thing is just that they consider themselves a developing country and they consider it -- they consider us a developed country. i do not know $12 trillion developing countries. we have to have a level playing field. do you agree with playing ?ariffs on international auto >> the encouraging thing is it week after we were there, the delegation i was a part of, president xi jinping unilaterally came out and said he would entertain conversation around reducing their own tariffs on automobiles and so forth. conversation around reducing their own tariffs on automobiles and so forth. i think there is common ground to be had. i know they have a good working -- working relationship with president trump. that is a constructive feature as we go forward with north korea and trade talks with china.
>> in the next hour or so, president trump signing into law a deal -- deregulatory with >> in hope thatre any there could be more regulatory relief ahead of midterm elections or is this as good as it gets for now? >> is pretty good. now butake what we have we need more. i'm so proud of the united states senate. bill.s a bipartisan this is 67 votes in the senate are two thirds voted to change dodd-frank rules for small banks bill nothing to do with the 2008 and 2009 financial crisis. there are other things to get to in terms of regulatoryand it has that we will see how the schedule goes. we're trying to put pressure to get the government-funded and nominations. 280 four nominees waiting to be confirmed right now. >> i want to bring it back to north korea for a second. as this continues to go on, i'm
what is the longer-term strategy here for the united states as a whole, on the korean peninsula? if the summit doesn't go as planned, and we withdraw from the iran deal, what is the long-term play from the experience on the committee? >> i dealt with china and koreans a long time. the president, keeping in perspective over the last year, he had reengaged with the world. as part of the armed services committee now and the armed relations before, meeting with these leaders are on the world as we do continually, all they want is america to step in and reengage and be a leader as we deal with the crisis around the world. and the trade situation with china. i give the president high marks for re-engaging. it is what the read -- leaders want. think there is an open dialogue with president trump. >> thank you for coming on ahead of your meeting with the
president. back to you in new york, vonnie. kevin cirilli. now, my cohost, are you there? kevin cirilli. i am here as ever. dampened by the news of the korean u.s. summit not taking place. marginally lower, picking up earlier in the day. the worst-performing group's automobiles. there was an investigation into whether car or truck imports threaten national security, a move that could lead to new tariffs on foreign vehicles. exports, the most passenger cars to the u.s. followed by canada, japan, germany, and south korea. this comes after european automobiles got a boost after china said it will