tv Bloomberg Markets European Close Bloomberg May 24, 2018 11:00am-12:00pm EDT
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 cut imports. will
automobiles are the worst industry group today. deutsche bank is back in the news, it will cut equities jobs by one quarter and reduce overall positions by at least 7000. the new chief executive is costs and boost profitability. the reductions will take the number of jobs well below 90000 and lead to a restructuring charge of at least as much as 800 million euros. the shares are at the lowest level since september, 2016, down by 5.4% so investors once again are underwhelmed by deutsche bank. italianve a look at the -- german spread differential. we are up to 192 basis points which is the widest since june.
there is a search for a government and we are awaiting the nomination of a new finance minister. that is what matters. a finance professor is a candidate for the position. economist who has repeatedly called on the government to plan for a possible euro exit is still the main contender. spread is widening between italy and germany. look at aristarchus shares getting hammered today, the swiss breadmaker is sinking as much as 31% today. it lowered its full-year profit outlook for the second time this rising costs and slumping sales. they cut costs by 200 million euros over three years and the company back in january abandoned it profit forecast.
arista down by 20%. what is look like over there? julie: worse and worse and the the summit was called off from north korea, a risk off town. it's not clear what the actual repercussions of this will be but it is sparking a sell off as we see the dow falling nearly 1% and the s&p 500 and the nasdaq each off about 8/10 of 1%. theng the round-trip of other assets affected by this, we've been watching the south currency. and the the yen and the south korean money is showing a negative reaction. some of the defense contractors are getting a pop albeit fairly modest.
this follows on the news earlier this morning when it comes to geopolitical events and especially trade talks that the u.s. was mulling import tariffs on vehicles imported to the united states. we have seen that ripple effect across the automakers. and honda shares are lower in the u.s. based auto parts manufacturers, many of whom get revenue from so itational automakers, could have an effect on them if it goes into effect. we have had a lot of back-and-forth on the verizon negotiations whether its nuclear talks or the trade negotiations. i wanted to come back to oil because there is a dramatic move in oil today. butas bounced off the lows still off by 1%. there is risk aversion but you also have the news that opec and
some other countries are mulling changes to their production cuts. that has been causing a slide. vonnie: thank you for that update. breaking news, more international reaction to the letter from the white house to north korea's leader. this time it is south korea. the president has just called an emergency meeting of officials on the back of you and secretary encouraging the u.s. and north korea to continue with their dialogue. let's get up to date. the international reaction is beginning to trickle in so let's go to asia first. we are getting word that south korea's president has called an urgent meeting of top officials. he was not anticipating this when he was in washington the other day. presidentey right,
moon was in washington meeting with president trump two days ago. it seems clear from the statements we are getting from the presidential palace in seoul that they were not consulted or had very little heads up at the most that this decision was coming. they put out a statement saying they are trying to understand president trump's intentions when it comes to this decision to cancel the june 12 summit in singapore. we know that tone had changed from north korea over the last week and a half or so that that was also something many people expected. we were not expecting any kind of decision to cancel the summit this morning. obviously, a pretty dramatic turn of events in what has been rapidfire diplomacy over the last two months since the summit was first announced. vonnie: the un's secretary-general is encouraging dialogue to go ahead. some of the international feeling on this. want the u.s. and
north korea to have a meeting or not? all, there would be a resounding yes to that. even if there was pessimism or about whatimism could be achieved on june 12 in singapore, when you look at where the u.s. and north korea were a year ago, the leaders trading personal insults and threats of nuclear war over twitter and other public statements, the rapid development in the last couple of months has taken a lot of people, even opponents of this u.s. president by surprise and had earned some backing. there was a lot of hope that there could be some sort of break or even the idea that talking was better than trading insults. now we have to see whether the relationship continues to deteriorate from here or whether there really is hope that a new date can be scheduled. i think it will be very much harder to schedule a second
planned meeting and i think the longer this plays out, we will have to watch carefully to see whether the un's sanctions regime which depends heavily on china stays in place. mark: i'm looking at the letter. it's courteous, it's threatening, what do you make of it? trump talks about your nuclear capabilities and mentions the release of the hostages. how do we read between the lines? feel like i have rented it a dozen times and i'm still discovering nuances. i think the u.s. or president trump is trying to keep some sort of door open. pompeory of state mike was testifying before the united states senate and he said he continues to be optimistic that some sort of deal can be reached with north korea. certainly seemed to be taken by surprise by how
vitriolic the tone has been from north korea over the last week or so. it's really in line with north korea's historic propaganda language. i think they were surprised by that and that the same time, they want to keep the option open of some sort of grand bargain. president trump was already stepping back from his demand for a complete, total, immediate denuclearization in the last 24 hours by saying it could be phased in. i think they want to keep the option open and we will just have to pick up some pieces in the coming days and weeks to see whether that's a possibility. that given denuclearization seems to be the dividing issue between the two nations, how do you dot the i's when itre the circle comes to the opposing viewpoints? >> it was always the hardest
point for the two sides to finesse. both sides a very public positions on this. the president and the white house has said total denuclearization of the korean peninsula was the only thing that would help ease sanctions. from north korea's perspective, even though they made some sort of commitment to that goal, it it was not clear they have the same definition of and also theyon frankly understand it's their nuclear weapons and ballistic missile program that got them to this point in the first place. it's what got the attention of the u.s. it's what brought in the possibility of this first ever summit between the leaders of the united states and north korea. it was hard to cfr all the progress they made in the last couple of years, getting that program to stand up, how they would suddenly dismantle it completely. did tweete president the letter out about seven minutes ago, adding that i was
forced to cancel the summit meeting in singapore with kim jong-un. the president is apparently going to be signing the dodd frank revamp bell at 11:30 a.m. so we are waiting for him to make any comments. is there anything that might persuade the president to go back on his word? final but is pretty nothing seems to be final in this administration. >> while the clock was really taking on getting some of the key points in -- while the clock cking beforeaking ti this summit, it's hard to see it re-starting in the next couple of days and then pull it all together. it was starting to look like a longshot when you did not have a lot of preparatory work going on , when it was not clear that the two sides agreed. you also had the prospect of president trump flying all the way out to singapore and perhaps kim jong-un not showing up at the last minute.
as we saw the language from north korea and you see some of these issues with china and trade heating up, these were all complicating the picture for the white house. decided asve just later this morning that the meeting should get canceled. thank you for being on top of this security story for us. let's check in on first word news. courtney: america's allies don't think much of president trump's push for tariffs on imported cars and trucks. the japanese trade ministers said it could lead to a breakdown of multilateral trade systems. german chancellor angela merkel said her country is committed to fair and free trade. china responded by announcing it will resume tariffs on a range of imported consumer goods. investigators say a russian military missile brought down malaysian airliner over ukraine in 2014. that has opened up the kremlinity that the
could be sued. the dutch led the investigation because the plane took off from amsterdam. all 298 people on board were killed in russia has denied responsibility. the u.k. believes the kremlin was behind a phone call from russian pranksters. the callers pretended to be the prime minister of armenia. british officials say the russian government was trying to discredit the u.k. following the poisoning of the former russian spy and his daughter. local news, 24 hours a day, on air and on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. mark: thanks very much. come, the chief strategist will give us his insights on trade tensions. this is bloomberg. ♪ omberg. ♪
vonnie: live from new york, i'm vonnie quinn. mark: life in the city of london, i'm mark barton. the european closes roughly 14 minutes. investors are interpreting signals with president trump threatening tariffs. lini,e joined by luca pao investment strategist. we have been superseded by the trump announcements on north korea. let's get that out of the way. it shows there are always geopolitical risks out there. >> you see a lot of volatility on a daily basis but this kind of risk will be with us for a long time probably.
i don't think this will have a significant impact on markets for the next few weeks. contemplatingyou changing your asset allocations in what has been quite a year so far when it comes to volatility and market movement? look at growth, monetary policy, evaluation and sentiment so we have not changed anything in our approach. the noise is bigger than before but with trump, it's something you have to live with. noisenk there is a lot of and some fundamental changes are taking place and that's what the market is volatile. growth is weaker and inflation is a bit higher but we try not to be distracted too much by the geopolitical noise. mark: it's certainly getting deafening out of italy. is there a point at which we start to worry about the upward movement in yields we see in
italy and the spreads versus germany? >> it's not at a level that is incredibly high. it's definitely a sign that around.s are looking the economic program the government is probably not as radical as people think. the risk is there. we know almost 60% of italians say the european union is that for them. there is definitely the risk of some kind of experiment don't buy the new government but it's too early to tell. i suspect we will do what trump is doing, make big announcements followed by give-and-take. vonnie: one of the things you say is that the italy gdp to debt ratio was already at 30% and under the new configuration, that would blow out the deficit by another $100 billion. how serious would that be? authoritiesn the
-- it mightpeave authorities in europe but 100 billion dollars is not all that much, is it? what theot much but italian government is trying to achieve is to have more flexibility. let's not forget that the problem with the italian economy has been with us for a long time. there has been no increase in gdp. there is a big structural problem. i think the government was trying to have a little bit of flexibility and try to increase spending by maybe $50 billion. this could be a big's fiscal stimulus and they hope to find an agreement with europe. i think it would be a negotiation and there will be some kind of deal. they will spend more but much less than what was announced and hopefully it will work. vonnie: what happens to asset
prices? does the market give the new government a chance? critical is the economic and finance minister. let's not forget that it needs time. global economy and it continues to grow strong and the euro remains big, it is a chance to recover. and the tensions between the italian government and the european commission can potentially get out of control so we have to wait. it's too early to tell but the risk is there. mark: thank you so much. lots to discuss today. let's look at deutsche bank with the chief executive overhauling germany's biggest lender. >> let me state quite clearly,
ladies and gentlemen, we are committed to our corporate and investment bank. we are staying international. we are active in more than six to countries. that's the way it's going to stay. the vice president of shareholder advisory is with us. shareholders are running because of the announcement. are you inspired? >> i think he has the right strategy and he's the right man right now. is the first german in 16 years at the top of the bank which means he is very well-connected in his own network in germany. and he is good connected inside the bank since he has been working there 30 years. i think he is able to get all of these things done, what the
management has already decided. the shareholders were more optimistic than pessimistic today. but shares are down by 5%, the lowest level since 2016. surely, he needs to unveil a clear strategy to create value for shareholders. today it's just about cost cuts. where is the vision? the banksion is that is cutting its investment banking business, concentrating on germany, concentrating on europe, concentrating on private or retail clients and corporate concentrating -- concentrating on the bank
which was founded 150 years ago to help german companies in their projects in germany and abroad but that is the vision. you are right, the bank has a tremendous cost problem, cost-cuttings are necessary and they have to be done very fast. therefore, they are talking about the number of employees right now. downhare price went gave us a. sewing view for the near future in the second quarter which was not very positive. he said the second quarter was that isroblematic and the reason why the share price went down. a plan tosn't there cut that many jobs by 2020? it's really only two years away
so how is this plan any different? different in some points especially the concentration on the german and european market and especially concerning the concentration on retail customers and corporate problems. hadare right, jon cryon similar plans but his problem was he was not able to fulfill these plans. say, he had big plans for the last two to three years but nothing happened. christiannced that sewing is much straighter than john cryon was. if he has everyone's confidence, he has most these bull -- he has most people company but he is the one thing
linking all the previous ceos. he has been there all this time. under german law, he is not the chairman of the supervisory board who is deciding these issues alone. it is the supervisory board in total. vonnie: of course, but he is the chair of the board and some responsibility must lie with him. law, he does not have the power to decide these things alone. -- ie: under any law >> let me point this out and don't interrupt me. this is not the way i would like to discuss these issues. actlightner is the chairman and the board decides these in total. not him alone. it is not fair to blame him for as john cryon
followed, everyone said paul achtlightner is way too long. blaming john cryon and christian sewing that he is making these decisions too quick. it is not there to concentrate but halfchtlightner the representatives ar representatives of the employees and half are responsibility for capital owners so they are responsible in total. vonnie: i was not actually laying blame anywhere. no chairman of any board , iwhere has full control think that's the law in any country. any board is a collective entity and the chairs just one voice but a strong voice nonetheless.
thank you for joining us, by the way. i'm looking at the share price. as you know, is the worst performing european bank this year. it's the worst performing european bank in the last 12 months. 51% of the analyst community have a sell rating on the stock. what is it going to take to get this share price moving north? peers so whatts does he have to do, the new chief executive, to get this share price moving where every single shareholder wants to see it? he has to bring positive news to the public. he has to deliver the figures. back to aas to come
situation where the bank is earning money again. this is difficult enough. this is the only way the share price can increase again. responsible for the word of christian sewing so let's see what he will do in the next 12 months and then we can talk again. the big matter of effectively giving up on competing head to head with wall is this a case of disappearing over the atlantic with your tail between your legs? or is is this a strategy you are 100% behind? behind this strategy because the mistakes were made at the end of the 80's in the middle of the 90's where acquired other banks, where deutsche bank was
topnding to be one of the five large investment banks of the world. this was a mistake and it was wrong. they acquired people without any knowledge of culture andanking then they let these people they hired organize themselves and that was one of the greatest mistakes deutsche bank ever made. therefore, i'm totally convinced it is the right strategy to cut the investment banking in part but not to leave it totally to cut it in part and to concentrate or re-concentrate on the european home market. vonnie: putting this into is the largest and most respected association for private investors, 25,000 members.
are you hearing any dissenting voices in some corners of that membership? that would include some massive shareholders, two. >> people are not satisfied with the share price for sure. the shareholders also don't want to continue with this deutsche bank bashing over the last three to five years. therefore, i think we should concentrate on the future and give management the time that it needs to restructure the bank right now. in my pointed out today speech is that we will not look at the management for let's say another three years to wait for an improvement of the situation. colleagues have to deliver right now. i think within the next 12 or 18
months. vonnie: any activist neville in his? question mark some activists have gotten involved in banks recently. it was never an area were activists seems to be involved before. >> this is difficult to answer. german sure is that industry, germany needs deutsche bank which is a very strong bank forneeds the bank also financing its projects in europe and abroad. therefore, the only issue we have right now is that the costs and thee down very fast bank must regain, let's say, it's strength of the past. vonnie: very much appreciate it and thank you for your time.
mark: let's look at what happened to the european equities at the end of this session. it's a two day drop. it's the first two day drop since april 25. the last month is primarily seen gains in european stocks but not the case today. it was all tilted on the decision by president trump not to hold that summit with the a monthrean leader in or so. sentiment was dictated by that move. also the trump administration conducted though look into tariffs. the biggest importers are germany and german automakers are among the big decliners today. that was the mood on this thursday session.
we have had some retail sales in the u k and we had a rebound, %ore than expected, up by 1.6 in consumer confidence luring customers back into stores. great britain is emerging from economy after the decision to leave the eu and inflation is coming down. despite the bounceback, it is worth noting the long-term trend in retail sales is more subdued over the last three months. .1%.ained just .2 the turkish lira is at a record low against the dollar. the relief yesterday was brought about why the decision to boost interest rates and that was short-lived. 4% lira fell as much as
earlier. re will onlycern the be temporary support. some banks i have looked at today suggest rates could go as high as 20% to stop the decline in the lira. much of the currencies to -- performance and i few days depends on the external environment. if the dollar loses steam and emerging-market currencies rebound in recent lows, valero -- the lira could fall soon if not, it will remain among the weakest market currencies. about elliott you management confirming its significant stake in this deal. this was a story we broke a
number of days ago when we spoke to people familiar with the matter. that's a look at the european markets. vonnie: another fascinating activism story in europe. in the u.s., the 10 year yield is back to 2.90 6% as we see risk off primarily after the white house letter to the north korean leader. we already saw the tenure breach the 3% mark in the session overnight on fears about trade talks and tariffs again. was only a few hours ago and there was a concern there could be a 25% tariff in addition to other tariffs on cars coming out of china. ae dollar index is down little bit again on the north korean news. we still have the massive spread, it dollars or so between nymex crude and brent crude reflecting the continued
uncertainty before the opec decision on what they will do. you mentioned some of these assets including the lira which is at four point 74% after a 300 basis point move. the yen which is stronger on the risk off trade, the south korean yuan, the talks have now seemed to float away. gettingcurrencies are hit a little bit as well. looking at commodities, -- mark: let's get more on the markets. the new a tie in looking to garner support. so many questions to ask you. i don't know where to start the let's start with the finance minister. who could it be and who should it be and how bad could it be? >> there are a number of names floating around.
the finance minister might be the leading candidate. i think that's a little bit concerning. he is a veteran. .e is an experienced economist he was minister but but he has taken a very anti-euro attitude. he is not really an anti-euro guy. it's not that he wants to go out in any condition. he wants to have a different approach in europe. he hascan imagine, written extensively on this topic. i think he is on a collision course with the other ministers in europe so that might be risky. the probability of ital-exit increased in recent weeks? >> my personal view is that it's
such a stupid and bad idea and would be such a disruptive and dangerous scenario that eventually, mark: see the sense? >> my scenario is different. it's whether italy is going for a greek style scenario. another crisis, widening spreads and another collapse in economic activity. eventually, we will have to comply with the rules but they will have to go through a huge pain again and that would be negative. the alternative would be a portuguese like scenario. you have a radical government behaving and respecting the rules and not doing anything disruptive and with the help of economic growth, the situation might improve. al-exit remains of possibilities but it's such a
stupid idea and would be so disruptive, it would cause a recession probably in italy. eventually, people will realize this. mark: you talk about the contract for government. what aspect of the contract for government concerns you the most and maybe has your support? the elephant and the contract -- in the contractor the big spending items, the fluctuations in income, they cannot spend the money immediately because they don't have enough money to do it but they can spread these projects over the next few years and they might become feasible. then you have the nasty little which would make no major change but would be a desire tonal for the
exit the euro so that would be bad. policiesy got these that will cost over $100 billion per year. with allu save face your constituent groups? how does everyone come out a winner from this question mark >> that's a difficult question. they have gone so far and promising that it's really difficult to backtrack. that would be the most sensible scenario. i can easily design a scenario in which they can gradually deliver without really upsetting the national markets and the economy by maybe reducing taxation year over year, cutting on the expenditure side. they might introduce extra money without introducing income and phasing this in gradually.
you can easily design a policy scenario but the signs we see from the government right now, from the leaders and from the that will be hugely important. in italy, people tend to pay little attention to the programs. central right and central left. you know what you get. this time is different because there are two different parties that committed to a program and they will probably stick to it or try to stick to it. contra says backtracking would be difficult but they have to do it. vonnie: plenty of countries have reneged on promises throughout the development of the euro area and it has done them well.
they have come out better out of it so what's an actor $100 billion in the case of italy questio? >> $100 billion is about 6% of gdp. that's every year. it means the debt to gdp will blowup. you cannot do it. it would mean default. it's not feasible. any intelligent government would andoduce any plan gradually maybe introduce spending cuts first. withiney could phase in a number of years and that would be the most sensible scenario. vonnie: we will also be live at the roosevelt room where u.s. theident trump will sign repealing of the dodd frank act, some parts of that in just a moment and we will go live there. the 10 year yield is at 2.4%.
been a big move but we are still talking levels below the united states. that's why i think the situation can deteriorate substantially. it depends very much on the behavior of the government. i can easily design a scenario which the government once in power starts behaving the proper way and starts doing the right things and stepping back from the promises. that could work. minutes.ve gone six can an unskilled politician juggle 67 balls at once? difficultpretty situation because it would have been more desirable to have one of the two leaders to run the country. then you get another problem. g-7 country run
by a 31-year-old? conte looks like a moderate guy and sensible. maybe it will work. mark: there lots to talk about. stuff. wonderful let's check in on first word news. be aney: there will not summit next month between president trump and north korea's kim jong own. the president canceled his meeting and in the letter, the president cited tremendous anger and open hostility and recent statements from pyongyang. tosaid at the summit were fall through, the u.s. would continue exerting maximum economic pressure on north korea. likes thetrump rank-and-file the fbi but he said some of the people at the top are rotten apples and james comey was one of them.
the president has been claiming the fbi has been caught in a spy scandal involving his 2016 campaign. hurricane season begins in a week in several -- and several top jobs at fema remain vacant. critics say the vacancies will make it harder for the government to respond to disasters. one of the five costliest , three struck within weeks of each other and assures hurricane season is predicted to be worse than average. the u.s. government is dramatically ratcheting up scrutiny of the red hot digital currency market. the justice department has opened a criminal investigation into whether traders are manipulating the price of bitcoin. authorities worry that virtual currencies are susceptible to fraud and a number of other issues. news, 24 hours a day, powered by more than 2700 journalists in more than 120 countries. this is bloomberg. out that want to point
in the roosevelt room right now, we have dignitaries waiting for president donald trump, treasury secretary steven mnuchin, the commerce secretary, ben carson and obviously we will wait to see if the president makes any comments on north korea following the letter from the white house earlier. signeasoning here is to some repeal of parts of the dodd frank act. we will be live with all of that in just moments. this is bloomberg. ♪
dodd-frank but then came the big development this morning, the cancellation of the summit with north korea that had been set for june 12 in singapore. he said a couple of days ago that we would know soon if the of days ago that we would know soon if the summit would take place. it looked like it was going to go ahead. let's bring in kevincerilli. we are waiting for the president to sign legislation but he has to address this whole north korea thing? yes, walking back portions of the 2007. frank -- now turnedact has into the first opportunity president trump get in front of cameras to speak about the cancellation of the june six summit in singapore with kim
jong-un. the fallout is already reverberating across the world. the south korean president is already convening a meeting with top aides to talk about the matter and in congress in washington, republicans are president'se defense and praising his decision to do this. house speaker paul ryan released a praiseworthy statement as well as other hawks on the hill including senator marco rubio, frequent critic of president trump. he praised him along with senator tom cotton. you have seen republicans praising president trump. intelligence sources say talking with north korea is a good thing but to do so with great caution. the last 24 hours a brought us here. leader saidrean publicly in a statement that the vice president of the united
states, mike pence, was " a political dummy." it follows the release of three u.s. prisoners from north korea. the president cited that as a sign of positivity in his letter, canceling the meeting. it also comes at a time where we watch the back-and-forth with the new secretary of state, mike pompeo, who is testifying again in congress, after making several trips to north korea -- johnuth korea and nsa's bolton who has entered into this administration. vonnie: there were gestures at of kimade him a part jong-un like the release of the hostages and the destruction of a nuclear test site. there are many questions as to why he did that. at the same time, you could say the kim jong-un made sacrifices. i think some would make that case but others would note
the skepticism with which any u.s. negotiation must be wrought with when you are dealing with the nuclear north korea. the an economic standpoint, economy is crippling and it's falling apart in north korea from what limited economic data we have of this very private country. their experts and imports are directly tied to china. china will also have to deal with this. and the modelthis of denuclearization talks is important because it comes at a time in which the president has withdrawn from the iran nuclear deal and the north koreans reacted to following the libya model. president trump walked back comments about that. there are other models that could be followed including the south african model. onator perdue from georgia
the senate armed services committee made a point about that today. mark: we will get back to that in a second. do not move. get over toto turkey, the lyric continuing to decline to a record low after being buoyed yesterday by the rate hike. there was a selloff of the currency. president erdogan spoken today so what were the key takeaways of his speech in on kara. -- in ankara. >> he spoke from us two hours and he mentioned the economy where he said that as they would fight inflation and reduce turkey's current account deficit permanently. however, he did not say how he would do that. he stayed away from the touchy subject like interest rates and
the lira especially after the emergency rate hike yesterday. it's no secret that president erdogan dislikes high rates and investors are concerned about the independence of a central bank. that's why for the past few weeks, we are seeing a huge selloff and the lira. mark: -- in the lira. how important is that is this given the events of the past week? n is still the man to beat in the upcoming elections. even though we are seeing problems in the market, he still has a huge following. the difference this time is that opposition parties are really giving a good fight. four years, there was little opposition party to speak of but this time around, they are giving a good fight. he is still expected to win -- vonnie: i'm going to interrupt you because we are going to the roosevelt room where president
trump is about to speak after the north korea letter. let's listen in. >> i would like to begin by saying that based on the recent , i havet of north korea decided to terminate the planned summit in singapore on june 12. while many things can happen and a great opportunity lies ahead potentially, i believe this is a tremendous setback for north korea and, indeed, a setback for the world. mattisspoken to general and the joint chiefs of staff and our military, which is by far the most powerful anywhere in the world, that has been greatly enhanced recently, as you all know, is ready of necessary. likewise, i have spoken to south korea and japan.
ready shouldonly foolish or reckless act be taken by north korea but they are willing to show -- shoulder much of the cost of any financial burden, any of the costs associated by the united states in operations if such an unfortunate situation is forced upon us. hopefully, positive things will take place with respect to the future of north korea. readyy don't, we are more than we have ever been before. north korea has the opportunity to end decades of poverty and oppression by following the path of denuclearization and joining the community of nations.
jong-un willim ultimately do what is right, not , but perhapself most importantly, what's right for his people who are suffering greatly and needlessly. all of the korean people, north and south, deserve to be able to live together in harmony, prosperity, and peace. that bright and beautiful future can only happen when the threat of nuclear weapons is removed. no way it can happen otherwise. when kim jong-un chooses to engage in constructive dialogue and actions, i am waiting. meantime, our very strong sanctions, by far the strongest
andtions ever imposed maximum pressure campaign, will continue as it has been continuing. happens, and what we do, we will never, ever compromise the safety and security of the united states of america. , wanted to make that statement i feel very strongly about it. our military, as you know, has been greatly enhanced and will soon be at a level it's never been before. our approval of $700 billion this year and $716 billion next year largely due to the help of a lot of the people with me today and standing right here,
appreciate. we had to do that for our military and went on it and hopefully everything will work out well with north korea. a lot of things can happen including the fact that perhaps it's possible that the existing summit could take place or a summit at some later date. nobody should be anxious. we have to get it right. ok, with that being said, we have something else which i have to tell you, all of you chairman, mike, and everybody, it was a big deal when this came up. [laughter] where is mikecrepo? congratulations. you did a great job but it does not seem so important now. but it is important, it's incredible and its incredible you've done it and you've done it in a very bipartisan way which is very nice, thank you,
thank you very much, but a very bipartisan way and i want to gradually you and everyone else. i will read a few names because the -- these people worked hard. it's all about the dodd-frank disaster and they fixed it or least have gone a long way toward fixing it. mike david purdue, i love david. what a great guy he is. .im risch what a great lawyer. i learned all about you, one of the great lawyers. [laughter] i think i have to use him. tim scott. and pat toomey, who does know the financial world.