tv Bloomberg Markets Americas Bloomberg June 7, 2018 2:00pm-3:30pm EDT
>> meetings earlier today on the upcoming u.s. north korea summit, trade, and more between the two gentlemen. kevin is at the white house. the meeting between the leaders -- in particular the president's it into withdraw from the transpacific partnership, as well as slapping tariffs from automation -- automobiles in japan. playing -- between president trump and north korean leader kim jong.
we should note the trade deficit and second, only with japan to another issue is one that the prime minister has spoken about before he arrived at the white house to reporters, and that is about the families with regard to the north korea -- with regard to the japanese families. for president trump, he will try to set expectations. what is his preference on nafta. have criticized president trump for his trade policies.
while we are looking at the shot here, we're looking at the various derivatives analyst in their analysis that they did for jpmorgan. shanghai, andhe the asia-pacific index. at the bottom, a number of stories about trade tension. the u.s. market seems to be shrugging it off. vibrant earnings are very good.
that being said, you will have secondary effects of trade retaliation. the first one, i think we will see with respect to hard -- harley davidson. much to the chagrin of the senate majority leader. >> all staying with us. i want to check in where stocks are trading. >> we're looking at a mixed picture for major averages with a decidedly bearish event. all of these averages including the russell two --
nasdaq, the russell 2000, similar to the nasdaq. the rally recently being broken today and a dallas earlier, now up just modestly. drivingy seems to be losses. at 1.5% also on pace for its worst day. we had a big tech rally. this is the first down and seven days. we will see perhaps the rude cross of the distraction here. disclosed the company that it difficult -- disclosed data to certain countries, saying it would help the facebook app. but of course, investors with shares lower thinking about the cambridge analytic a data, the bevacy scandal, and could it
early today. taylor: came in this morning and we were at 298, 292 on the 10 year. let's now get the first word news with mark crumpton. mark: thank you president trump discussed his priorities for next week's meeting with the north korean leader kim jong-il in. president trump: we cannot take sanctions off. sanctions are extraordinarily parent -- -- >> next thursday, meeting with
the japanese prime minister shinzo abe in canada tomorrow. a man who drove a stolen truck in april 2017 killing five people and wounding 25 others has been convicted of terror related murder and sentenced to life in prison. the attacker said he wanted to punish him for joining a coalition against islamic state. his victims included an 11-year-old girl. attorneys for the florida schools -- school shooting suspect have asked a judge to block the release of what police say was a confession. the statement could cause significant from -- drama to a beleaguered community rocked by the shooting that killed 17 people at the -- in february. the statement would violate constitutional rights to a fair trial or the 19-year-old faces the death penalty if convicted. bryan resigned today is president of basketball operations for the philadelphia
76ers in the wake of what an investigation found his careless and in some instances, reckless sharing of team information. he did not determine that he operated or even was aware of twitter accounts that anonymously track -- trash some of his own players and fellow executives and defended him against criticism from ann's and the sports media. evidencew said supported the conclusion that his wife operated the account and she admitted to doing so. global news -- 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 mark crumpton. this is bloomberg. julie: thank you, mark. back to the white house rose garden where president trump and defense -- japan's prime minister is going to join any moment now. still here to talk about is kevin, they're at the white
house. here with us in new york, kumar, president and founder of global strategies. i want to go back to you and talk about relationships. it seems that some global leaders are losing their patients with president trump, most notably trudeau in canada. abe and president trump have had a warm personal relationship. is that still the case? >> it appears so and it also appears that president macron has a cordial relationship despite significant differences, with the u.s. with the paris climate agreement. they do not agree with it, to put it simply. also urging him to reconsider
his issue on trade. they will also have to talk about north korea. that is rid the crux of this could be headed here the japanese prime minister telling reporters before arriving at the white house that that was the main concern he had ahead of the meeting in addition to trade. >> we talk about trade in north korea and you talked a lot about the relationship as well between the u.s. and japan. you seem to think that it may get worse. what leads you to that conclusion? >> what started off was the fact that there was a chi 11 discussion in the g p p and, president trump very early in the administration withdrew the united states from the ttp, which leads japan essentially to be by themselves. prime minister abe had talked that all of his common interest with president trump would help
but that did not spare japan from the action the united states had taken either. ist i think is happening japan is no more special than the other countries. just talked about the special relationship prime minister trudeau thought he had, macron thought he had, and all of those do not amount to anything so far and that it is what is leading to the isolation of the united states in all of the discussions. even before the meeting coming up this weekend, we had a meeting of finance ministers, which took place in british columbia earlier. they referred to it as g six plus one. it was an add-on rather than an important member of the g7. all of these are just increasing
isolation in all of these discussions that are going on. looking at the .arious folks gathered you see mike pompeo, sarah sanders gathering, ivanka trump, as well as vice president pence, all of them waiting for the press conference to begin. to continue what we were talking about, even though overall the u.s. stock markets are holding up overall, you can see the pockets will be targeted by the tariffs, when does it become the larger signal, or does it? do you just target your strategy to the area affected? >> that is a very good question. i think it will happen fairly suddenly it would happen for instance with the 10 year yield earlier, dropping by five basis points in a matter of two or three minutes is probably, it
symbolizes what might happen to the market as a whole in terms of next week. you have the tightening action. today was the day, it was a very bad day for emerging-market currencies. south african rand particular. the fed, they are willing to go further. all of that means is the question you're asking, when does it become more widespread, it may well be next week. >> interesting p are long ago, we talked about the 10-year going to 4%. we talk a lot about next week, the fed, the ecb, and other currencies. where does the 10-year go? you seem to think lower but how much lower? we are at 292. >> how much lower, i think i'm going to give tens of basis
points lower. let me say it that way. is not where i think it going to be moving gradually, to 92 lower. in a matter of a day or two, then significantly lower. once again, you may be looking at a big drop in the 10 year yield after an initial increase. in the last couple of days, the 10-year has gone up because the week.ghtened next growth inot enough the economy, not enough he flicked -- inflation and wage growth in the economy comes in the increase in the fed rate leads to a narrowing of the rather than continuing
to rise. that is when you wait -- you may well see that next year, next week. >> we have seen the volatility pick up. remaining muted in the stock market. to go back to appoint we talked about earlier with regard to talks between trump and abe, having to do with the dita tease to north korea, abe is getting a at home.essure on this what have you heard from the white house in terms of the willingness to press north korea on this point? >> you remember in november of , prior toident trump that, before prime minister on the became prime mister, it is something he worked on before coming to power. mindss very much on the top twoapanese the
issues today are most notably inth korea, the summit singapore, kim jong-un, and obviously the issue of trade. japan will not be at the g7 summit. trump has noted before the trade deficit with japan is second only to china. decline for the auto market. if you look at it more broadly, you see the japanese threaten to increase tariffs by $264 million working for the wto. this comes at a time when the -- thent and bilateral multilateral risk on the issue of trade. it comes at a time it is time to figure out the timetable.
so all of this very much ahead of this press conference with prime minister abe. >> what about japan? be.detriment of could they >> the extent of damage it could is and the reason for that mexico and canada are significantly bigger, trade partners and the european union. japan is important, but it does not come to the same level of importance as the other countries. the other point is how targeted are the japanese going to be taking action? the european union and mexico have of said we will take very strong action against the specific u.s. -- in terms of
having a political impact. the european union is threatening to become once in your life that it is going to affect. i would probably be more sanguine on the japanese side but -- on some of the other country -- countries. >> would talk about trade and after me with at canadian dollar and a mexican peso, you have the relative toollar other currencies, is there something more fundamental going on in the markets that we are not looking at? >> different countries have different things going on. the big impact is nafta whether it will get reviewed or not. when president trump said that essentially means
-- as we know it. a big drop in the mexican peso. in the case of canada as well, the u.s. remains the most important trading partner and that is affecting them. but when you go to other countries in the emerging-market arena when you look at brazil or africa, thenouth in fact is much stronger the u.s. dollar. >> i will ask you to hold on. they are set to begin the press conference right now. let's listen in. president trump: thank you very much. today, i'm greatly honored to welcome my good friend, prime minister abe of japan, to the
white house. closely to address common challenges, of which there are many. sees opportunities, advance the interest of our nations here today, we have had another deeply productive and very valuable discussion. not only a strong working relationship in the last year and a half, specifically 503 days, but a great personal friendship here and i was honored by the tremendous hospitality the prime minister showed me. when the american delegation japan last year, it was really something, release the actual. we have the prime minister and e as our guests. the alliance between japan and the united states is an enduring horse of peace and stability --
stability in the region and around the world. the prime minister and i have been working to expand our operation in a range of areas alluding to fence and commerce, which is what we discussed today. as i prepare to meet next week and i want toun bring up the fact that the prime minister and also president moon of south korea were extremely helpful. be great for north korea, south korea, be great for japan, the united states, and the world. our partnership has in invaluable in reaching this important moment and we will continue to be in very close committee nation in the weeks the issue ofing japanese other -- abduct tease which i know is of great personal importance to prime minister abe.
i hope the upcoming meeting in singapore represents the beginning of the future for north korea. a new era of prosperity, for all koreans, north and south. for people everywhere. the prime minister and i are working to approve the training relationship between the united states and japan. something we have to do. the united states seeks a bilateral deal with japan based on the principle of fairness and reciprocity. we are working hard to reduce or create imbalance am a very substantial, remove barriers to u.s. exports, and to achieve a fair and mutually beneficial economic hardship. we are on our way. the prime minister was telling
us just moments ago that they are buying billions and billions of dollars of additional products of all kinds. military jets, airliners from boeing, we will do a lot more business with japan, which is what everyone wants to see. it has never been a better time to invest in the united states. thanks to massive tax cuts, historic deregulation, a strong trade policy has just really begun. i will tell you it has been an extraordinarily weak trade policy. a return to the rule of law. our economy is absolutely booming, the best it has ever been. unemployment is at the lowest level in half a century. for african-american and hispanic american workers, unemployment has reached its lowest level ever recorded. we welcome and encourage japanese investors to open new
plants and factories in the united dates and that will happen. the prime minister told me that will happen. and -- new auto plants in pennsylvania and ohio and many of our states that have them and some that don't, they will be doing them. japan also remained a critical partner in the efforts to --mote free and opened were sovereign nations uphold the rule of law and honor. the interests of their people. the core principles allows diverse nation's to prosper altogether in one beautiful, peaceful atmosphere we're all happy about it now. is a true privilege to work with you, and i want to thank you for being here at the white house
and for our meetings today. so productive. i am proud to say that the bonds between our nations are stronger and i know were can unlock incredible opportunities for achieving remarkable new prosperity and to and securityfety of our citizens for a very long time to come. intend to do.e thank you very much. thank you. mr. prime minister. >> mr. president, i am so grateful for you for this meeting with great hospitality at the g7 summit and u.s. north korea meetings are upcoming. i would like to express my appreciation to the people of the united states for always warmly welcoming us as your
ally. in five days, u.s. north korea summit is to take place. deepld like to take my respect for leadership of president trump presidents were ever able to accomplish. in the last 18 months, we spent many hours discussing this issue. we shall never repeat the past mistakes. us,e this is shared between we are able to witness a historic talk which will take place shortly. , our, with president trump discussion was focused on the issue of north korea. for the peace do
and stability of northeast asia after the summit? we spent a good amount of time and carried out exchange of candid views. i am not able to talk about the details of what we discussed, but one thing i can say is that aren and the united states always together. i hope that this historic summit in singapore will be a resounding success. town facingeautiful the sea of japan. amir 13-year-old girl living there was abducted by north korea. girlmere 13-year-old living there was abducted by north korea. 45 years have passed since family members have been
single-mindedly praying for her concern and kept waiting. the parents became old. the remaining time is slipping away. it is the long-held desire of the japanese people to have her and all of the other abductees to come home, so that the parents, while they are healthy, can embrace the girl and other abductees again in their arms. of course, i wish to directly face north korea and talk with them so that the abduction problem can be resolved quickly. tothis end, i am determined take all possible means on behalf of the citizens of japan. i would like to thank president trump and the people of the united states for their understanding and support toward
the resolution of these abduction issues. japan will continue to ask for complete and limitation of the successive united nation security council resolutions. there is no change at all for japan's policy of seeking comprehensive solutions to the abduction, nuclear and missile programs, and to realize real peace in northeast asia. this is what japan strongly hopes for. now, a major step forward is about to be taken. donald, president trump, you are .bout to make a new history not only japan, but the whole international community is strongly looking forward to the united states-north korea summit to open doors toward peace and stability of northeast asia.
north korea abounds with rich natural resources. north korea has a diligent workforce. is willing to take steps toward the right direction, north korea can see a bright future ahead for itself. japan, based on the japan-north korea pyongyang declaration is prepared to settle the unfortunate past, to normalize our lamented relations, and to provide economic cooperation. japan wishes to play the role as much as possible. yeard, i value highly strong commitment to world peace and prosperity. in closing, i wish to add that japan stands ready to make every in theto assist you success of the u.s.-north korea summit. thank you. >> i appreciate it. we will take a few questions.
john roberts, go ahead. reporter: i have a question for the prime minister as well. on the subject of north korea, how far are you willing to go as far as economic security, guarantees with kim. are you willing to move toward normalizing relations with north korea as the prime minister suggested he was willing to? and you teased us out of the south garden last week, that you might sign a peace deal to end the war. and what was in the letter? >> the letter was just a greeting. it was nice, perhaps i can get approval to put it out. it was a warm, nice letter. nothing other than "we look forward to seeing you, to the summit.
hopefully, some wonderful things will work out. it was a warm -- it was warm and nice and we appreciated. i think we will have a great success. i don't think it will take one meeting. this should have been solved by other presidents long before. they waited until the last second, and they should not have waited. it should have been sold by many others. not just president obama, but , in a much less dangerous manner. but it wasn't and i have to. we have agreed that we are going to be helping, if the deal is done. we will be helping north korea, working with china, working with
south korea. president xi of china has been border has been more closed than ever before. china has never worked with us this way. i give them a lot of credit. as you know, we are in a dispute as to the imbalance of trade. it is a massive imbalance in china's favor. that should have also been handled by previous presidents, but it wasn't, so i'll handle that, too. i give president xi tremendous credit, and i give tremendous credit to president moon. they've been living with the threat of war from their beginning, and it doesn't make sense. and i believe kim jong-un wants to do something. i believe he wants to see something incredible happened for the people of north korea. shouldn't have waited to this point, but we have a lot of great opportunities.
willing: would you be to go so far as to normalize relations with north korea, and what about the idea of signing some sort of agreement on the 12th to end the war? pres. trump: we could sign an agreement. as you know, that would be the first step. it is what happens afterward that is the big point. but we could absolutely sign an agreement. we are looking at it and talking about it with them and with a lot of other people. is really the beginning. it sounds a little bit strange, but that is probably the easy part. the hard part remains after. normalizing relations is something i would expect to do and hope to do when everything is complete. we certainly hope to do that. abenow that prime minister o us president moon have told they will help them economically, tremendously. japan has a tremendous stake and so do they.
we, on the other hand, are very far away. i bieve thaa wichin be helping economically also. and certainly, south korea has already stated their intentions. they will be very helpful. there are other good factors. tremendous factors that give tremendous potential. we would certainly like to see normalization. prime minister abe, we know how important the abductees are for you. president trump said at mar-a-lago that it is an important issue for him as well, and the medium range missiles. if you get an assurance from president trump that he would address both of those in his first meeting with mr. kim?
prime minister abe: today, we had long hours of discussion with president trump. . good amount of discussion i think that president trump was -- fully understands the situation of japan. last year, president trump visited japan. on that occasion, he met with .amilies of abductees i told you about the 13-year-old girl abducted. he iensely listed to their voices and views. so, president trump, amongst the world leaders, i think he is one of the leaders that understands the issue the most greatest. so, at the upcoming summit, the importance of abductees and
adoption will be explained to mr. kim jong-un. what about the medium range missiles? as i said earlier in my statement, the security council resolution must be implemented. so all weapons of mass destruction and all ballistic missiles, these are the words used in the resolution of the security council. in other words, the security council resolution must be completely implemented. andhis point, between japan the u.s. and the international community, i'm convinced we share the same view. from pbs, please, next question. i am from pbs television. i have a question for both president trump and for prime minister oabe. you have not used the language
of applying the largest pressure on north korea, but are you with the sanctions? and the denuclearization, what is the deadline for it? and my question for the prime minister is, how to apply pressure, and the tone of the language -- are you in full agreement with the united states? president trump has stated we are implementing sanctions, and those sanctions are very strong. he also stated that until north korea takes the action, the sanctions will not be lifted. and japan is in full agreement. position ispan's fully in alignment with the united states. we had an in-depth discussion with president trump as to how we should respond to north
korea. policiesr the future on north korea, inclusive of the u.s.-north korea summit meeting, we have detailed ordination aligning our positions. as i have already mentioned, japan and the united states have always been together. japan and the united states will be in full alignment. historic u.s.-korea summit meeting in singapore. pres. trump: thank you very much. maximum pressure is still in effect. we don't use the term anymore because we are going into a friendly negotiation. perhaps after the negotiation, i will be using it again. you will know how well we did. "we are going say to use maximum pressure," you'll know the negotiation didn't do well, frankly. there's no reason to say it.
haven'teantime, we removed any sanctions. we have a list of over 300 massive sanctions to put on north korea, and i've decided to hold that until we can make a deal. i really believe there's the potential to make a deal, and i don't think it is nice to go in under those circumstances. but the campaign hasn't changed. china has continued to hold the border. we would like them to do more in that sense, but they've been really good, and the president has been really good. but maximum sanction is there. we are leaving all of the existing sanctions on. we have many to go, but i don't want to use them unless it is necessary, and i don't think it will be, but we will soon know. thank you. -- with the daily caller? reporter: i have a question for the prime minister as well.
president, you said repeatedly you were willing to walk away from the negotiations if they don't do well. under what exact conditions would you be walking away from the summit, and if it goes well, will you invite kim jong-un to the united states? pres. trump: the answer is yes to the second part, certainly if it goes well. and i think it would be well received. i think he would look at it favorably. i'm totallyy is prepared to walk away. i did it once before. you have to be able to walk away. if you're not -- we didn't walk away from the horrible iran deal that we signed. if you look at what happened since we signed the deal, durant -- and in all fairness, i say with respect to the people -- they are no longer looking so much to the mediterranean. no longer looking so much at what is going on in syria and
yemen. they are a much different country over the last three months. and again, i say that with hope that maybe something can happen. when you mention sanctions, we are putting sanctions on iran the likes of which no one has ever seen before, including, frankly, north korea. that would have been the next phase if we did it or found it necessary to do. but nuclear, to me, is always first. and we are going to be fine with respect to iran. but we also have got something that is very important. some people who write about this, i have great respect for. but they don't take this up. iran is not the same country they were a few months ago. groupre a much different of leaders, and i hope that at
some point, they will come to us , and we will sit down and make a deal that is good for them and us and everybody. and it will be good for -- great for iran. but if they would have walked of thee, from some horrible provisions that you know as well as i do, and probably everyone sitting here knows, we could have had a great deal. we had a great opportunity to make a phenomenal deal. i hope it will be necessary to walk, because i really believe that kim jong-un wants to do something that is going to be great for his people and also for his family and himself. thank you very much. himrter: if you do invite to the united states, would it be at the white house or at mar-a-lago? i think we'll start
with the white house, what do you think? reporter: mr. prime minister, you are the only major world leader not to have a sit down planned with kim jong-un. i that you said you would be willing to do so on the matter of abductees. would you be willing to have a discussion without the united states? thank you. p.m. abe: of course. on the issue of abduction, we have to resolve this problem. this is of the highest priority with our administration. if anything contributes to that -- if they talk leads to the solution of the problem between the u.s. and north korea, or between japan and north korea, meetings we wish to
have on the issue of abduction. jong-un and between course the nuclear issue is very important for japan. the nuclear issue, missile issue . regarding these issues, at the u.s. and north korea summit meeting, first and foremost, i'm -- hopeful the rest for progress. then on the issue of abduction, we will collaborate with the u.s. and with the international we in japannd ourselves most talk directly with north korea in the final analysis. i'm certain of that. hayashi?
thank you. i have a question for the prime minister and for president trump. prime minister, you've already ,entioned to a certain degree on the abduction issue. the premise that you need to see results for the abduction issue. you planning-- are to hold? in the meeting with president , have you asked president trump to raise the issue of abduction in the meeting in singapore? and president trump, kim jong-un has maintained his position that the abduction issue is something that had already been resolved. so, what kind of explanation has been given to the united states on the issue?
approach northwe korea in order to seek solutions for the abduction, and what did -- in this regard? will tell you on the prime minister's the half that he very much talked about abduction. it was preeminent in our conversations. he talked about it long and hard and passionately, and i will we willis wishes, and be discussing that with north korea, absolutely. prime minister. at our japan-u.s. summit that we had at mar-a-lago , today, once again, as president trump mentioned already, explained on the abduction issue -- and i have
conveyed to him the honest wish of the families of the abductees. again, hasrump, once stated that the abduction issue will be raised at the upcoming u.s.-north korea summit. the meeting as a -- would like to refrain from mentioning this at this juncture. in any case, japan stops and explained, and president trump has given his understanding and promised that the issue would be brought up at the summit meeting in singapore. -- delighted for this, as told like to closely work seek solutions to the issue.
-- direct consultation with north korea. i have not changed my result in doing so. to solve the abduction issue, of course i will have to think about the summit meeting for japan, the north korea summit meeting. if we were to have the meeting -- the induction issue, solution to all of these issues. i hope we will be able to realize that -- solution to the problem. -- should closely cooperate with each other so they should be able to see great success for the historic u.s.-north korea summit meeting.
japan would like us to give our all-out efforts and support. pres. trump: i would like to pay my respects and love to the warmbier family, the incredible mbier who waso war a beautiful, terrific young man. he has not died in vain. also, i would like to say we were tremendously successful in .etting our three hostages back and the three united states citizens are very happily ensconced in their homes with their families.
they are very happy. they didn't think this was going to happen, and frankly, it never had happened. so i want to wish them well. they had a tough journey, but i thely respect the fact that north korean folks -- get them out very well ingrained. they were telling me, they are now going to movies and going out to dinner. they are back. they are back in our country and it is a terrific thing. i believe we are going to have a terrific success or a modified success. , it allorm or another goes. and things can happen between now and then. i look forward to seeing you there and traveling with you. i believe we have the potential to do something incredible for the world.
and it is my honor to be involved, thank you. [applause] that is president trump and prime minister abe completing their news conference. kevin, we don't have him yet. let me just summarize some of the comments made here. both gentlemen talked about a productive meeting. prime minierbe said they had in-depth discussions about trade. issue of japanese abductees who are, according to japan, still in north korea. inhasized repeatedly here this press conference. president trump also talked a good bit about this upcoming summit with north korean leader kim jong-il in. at theirilli is there
white house. what are your impressions? any kind of comments that stood out to you? kevin: president trump saying there could be a terrific success or a modified success in singapore. he also said he would bring up the issue of abductees, championed by shinzo abe. and on the issue of more sanctions against north korea, the president reiterating that he has a list of more than 300 additional sanctions he could impose upon north korea. prime minister abe echoing what president trump has said. praising him for his decision to meet with the north korean leader. president trump said he might even be willing to invite kim jong-un to the white house or the united states should the meeting go well. it also comes at a time when the president has decided to withdraw from the iran nuclear disarmament deal, saying that
this is an iran that is different from several months ago. turned toll attention just how successful the june 12 summit in singapore will be. we didn't hear much on the issue of trade, but the president also raising directly the issue of china. , thedent xi jinping president saying he would like to keep that border more restricted against north korea, and that he would like to see president xi go far, but thanked him for what he had done. in conclusion, i would note that the president also raised the issue that all of this is happening with the backdrop of the issue of bilateral trade talks with china. but so far, the president speaking positively of china's role in this back-and-forth with north korea. julie: scarlet is here, everyone. thelet: i jumped in during
news conference. i want to pick up on what you're talking about in trade. the president and shinzo abe made comments about trade ties between japan and the u.s.. it we learn anything new question mark -- anything new? .evin: we really, truly didn't japan and the u.s. have enjoyed a very positive relationship based upon the relationship that they have shared interests with regard to national security. but on the issue of trade, as you've noted, japan has been critical of the u.s. with regard to president trump's decision to withdraw. in the trans-pacific partnership, the president saying they have shared interests in the transpacific thatn, but not mentioning tpp withdrawal specifically. on the issue of japan's response, you've seen them try u.s.ise tariffs on imported goods -- president trump himself even making note of the trade deficit that the u.s. has with japan.
we should note that it has been in decline in recent months, by 1.6%, as a result of the auto industry development, but they are worlds apart. japan will not be traveling to the g7 in quebec. also facessident significant differences with a host of other countries on trade, most notably china, france, germany, the united kingdom, and yes, canada. the president noted, in the the mostof some of significant summits we've seen in terms of what is on the veryon for north korea, tense negotiations bilaterally with a series of countries who are speaking out increasingly, as our the republicans in the president's own party. very quickly, -- komal
srikumar was on the show earlier. speaking about bilateral agreements when most of the world has been pushing for multilateral trade deals. make thiswill have to quick because we are starting to break down at the white house. i can tell you that several sources i've spoken with have told me that while the president might prefer to have a bilateral negotiation, he's been getting a multilateral response, particularly from europe. as we've seen the europeans threaten to respond on the issue of trade. europe very much span the political/ideological spectrum. from theresa may to emmanuel macron, you've seen them threaten to have a cohesive response to the united states' , aluminum steel imports, as well as on autos.
nafta, you've seen increasingly in the last week in particular, prime minister justin trudeau essentially restart backdoor negotiations as thexico, just administration has forecasted more publicly that they are to withdraw, considering it more seriously on the issue of nafta. so just on the horizon in the short term, president trump will meet with mike pompeo in quebec who will then address reporters on the issue of north korea. then based on -- in the front the president.ng then he has to go back to the g7 , then to singapore for the summit with north korean leader m jungle and. a lot of moving parts to keep on top of. now just less than one hour from the close of trading. we need to get a check on the markets with abigail doolittle.
abigail: take a look at the major averages. reaction.ion -- mixed the tech heavy nasdaq put in another record high, but now sharply lowered at three quarters of 1%. major averages awful flows. they were down more than 1%, but for the s&p 500 and nasdaq, this represents the first down day in five days. hop into the bloomberg with me and take a look at the map on the s&p 500. this is a great way to get a quick shot of what is happening sector wide in any index. take down 1.2%. energy up 1.6%. more sectors higher than lower. that tells you the underperformance from tech is really weighing the s&p down.
let's take a look at some of the biggest movers. top,on and eggs on on energy giants --chevron and exxon, energy giants. facebook is down -- after the company disclosed they shared data with certain chinese andanies including huawei -- andome before congress testify in detail. this seems to be waiting on tech, the possibility of regulation. it will be an interesting story to see whether the sector rotation continues. let's take a look at the chip space. stock down 1%, lots of weakness for the equipment -- for the companies that make equipment for chip companies.
it is an even earlier q at t chip themselves. finally, let's and with a technical look at the stocks. you is an interesting -- can look at it using the gtp function. buyers clearly in control last year. an all-time high in march. we are stuck in an area of -- the on this yellow uptrend, telling you sellers are trying to take control. it may tell you buyers are hesitating. if we go back into the range, that suggests more volatility overall for the tech center. scarlet: we definitely see the buyers hesitating today. thank you so much. let's get you to first word news with mark crumpton. says thesident trump united states would like to pursue normalizing relations with north korea as part of his planned talks with kim jong-un. he held a joint white house news
conference with shinzo abe. said thatent "normalizing relations is something i would hope to do once the negotiations are completed." -- french president emmanuel macron -- and international trade. president macron made his alongsiden ottawa justin, who was asked about his per -- his approach to president trump. >> i have consistently stood up for canadian interests, consistently demonstrated where so in aree, but done polite and cordial context. i think that is what canadians have always expected of me and that is exactly what we will do. mark: president macron says that if the u.s. continues toward a form of isolationism, that would be bad for the united states.
says the iranyahu nuclear agreement is "a done deal." ." speaking at the policy exchange think tank, he said companies are leaving iran. [indistinct] >> -- mark: president trump withdrew the u.s. from the landmark 2015 nuclear accord with iran last month, but the pact has the continuing support of britain and other european allies. a leader of house moderates says his group has tentatively agreed to an author from conservatives -- to an offer from conservatives to help dreamers stay in the edit states legally. under the proposal, young immigrants could get new visas
to stay in the u.s. for eight years. moderates are willing to except provisions to strengthen border security, including the full $25 billion to build president trump's proposed wall with mexico. global news 24 hours a day, on air and on tictoc on twitter. by more than 2700 journalists and analysts in more than 120 countries. scarlet: -- continues to struggle with its turnaround plan. we are bringing in the senior writer for bloomberg finance ease. this is something that has never come. before. we talked about german banks getting together in the past. what is the likelihood? discusseds apparently two years ago and didn't really proceed because they thought
they should first get along with their prospective restructuring plan. yet the restructuring plans are still being worked out. i can't see why there's that much difference, but it's back again. there's probably political pressure to do this -- public political pressure to do this. the german government is still the biggest share of commerce bank, wants a strong, big german champion in the financial sector. having two week non-champions isn't great, so they are hoping to make one big one? i'm not sure. scarlet: the question is also what -- capital, who has a stake in both banks. >> the biggest thing they would probably gain is some deposits. commerce bank after blowing up in the 2008 crisis, bailed out
by the german government, really got out of -- all of the things that nobody should have had at the time, which blew them up. now focusing on the middle sized german companies, lending to them, and collecting deposits from companies and consumers. but that is such a competitive business in germany. germany has so many banks. great banks. small banks that really managed to collect the deposits, make money, and make very little out of it and survive. the business of retail banking is so competitive in germany. it is very hard to eke out profits. has barely broken in the last three or four years. and deutsche bank has been losing money every year. julie: thank you so much.
earlier today, we learned that -- was looking to sell a $3 -- energyergy proposa portfolio. mackey,oined by michael from kingdon capital management. not held at deutsche bank. with regard to what you were talking about, i believe that commerzbank is an interesting target for other companies as well. now is accelerating us versus a few years ago as well is the talk of other shooters looking at commerzbank. if we were ever to get to a european deposit scheme, guaranteed deposits, it is a very rich deposit. very attractive target for someone to use. you've been looking at
italy and the banks there. what would prompt you to consider taking a stake? that would make you say this is a good opportunistic moment. the commercial banking system there -- has such low r.o.e. that it makes it tough because there's little profitability. deutsche bank has a 3% r.o.e.. that is why it is traded and priced the way that it is. you need to see a major astructuring, probably continuation of what you've started to see on the investment banking side, which we are seeing in the states a bit. and possibly a merger. i think they are ok on capital and liquidity, probably have one of the higher liquidity coverage ratios out there. i don't look at it as a
compelling investment right now. eventually, if they could bring in some service people. -- and a a 5% stake in 3% in the other. i think that one factor that is out there, the german government has a larger stake in commerzbank at a much higher level. bank pay for it is probably better than taking from another country. you pointed out, deutsche bank is trading at a discount, as is europe in general. bk s and cat the s&p, the european index. but it is cheap for a reason? where else are you seeing things that are cheap, but some of the attractiveness is being overlooked? in they has been
forefront, obviously. we have positions in italy. i think it is volatile. i think you have to be patient with your entry points. uncertainty in italy is nothing new. they've had at least 66 governments in the past 72.5 years. turning over to this government, while there is a tremendous amount of uncertainty, and while i think the market will test the result of the ecb. when i see people try to compare this to greece, most of the greek debt was held outside the country by other banks or institutions. 65% of debt is owned by italians. you can'treads wide, say of some of the larger institutions, this will be your actual saver and italy, -- scarlet: does that make them safer or less safe as a result? >> because you've got pulling
and -- has improved since the reelection in march, now at 29%. there is still a wallet issue there where people vote with their wallet. , ifou watch the polling this continues to happen, five-star and northern league start to lose some of their popularity as people see their wallets diminished. scarlet: thank you so much. from new york, this is bloomberg. ♪
conference wrapped up in chicago. -- turned the immune system on the highlights of the conference. we are joined by the director of the bloomberg institute for cancer immunotherapy, and the senior biotech analyst for bloomberg intelligence. we saw some very interesting data at the conference. i was wondering if you could tell us, from a clinical standpoint, the biggest winners and losers. >> i think the biggest winners were patients. on.e was so much going there were at least 50 new targets, molecules that regulate immune responses, but there are now drugs for which early clinical data was being presented. there was also follow-up data that validates that patients who ,et responses to immunotherapy
in contrast to the way it used to be with chemotherapy, or having years and years of -- years of even remission. we are even beginning to use the word "cure." the rate of remission we are seeing in patients. and we are seeing that immunotherapies are moving much earlier in the course of the cancer, including even before surgery. cases, that is proving to make a big difference because patients now don't have their immune system beaten up by many rounds of chemotherapy. so these are some of the things that certainly have me excited. julie: i would not ask the doctor about stock winners and
losers, but i wonder if there were any companies that stood out to you. -- was down considerably. blueprint medicine was down considerably. this is not necessarily that the data was bad, it is more about misplaced expectations. a big run-up, already trading for the high. aality check in -- we got check. of expectations, immunotherapy has been talked about for 10 or 20 years as being the next wave in cancer treatment. or do lived up to that, you think that people got their for how quickly we would see a big change? >> immunotherapy has been predicted for more than -- for longer than that. for probably 30 or 40 years. happenedtransition
between 2010 and 2012 when the so-called checkpoint inhibitors -- anti-bodies that essentially disable the brakes on the immune system that tumors use to protect themselves from i mmuno-elimination. -- started sharing significant responses in many different cancer types. melanoma, kidney cancer, lung cancer. now there are approvals in nine or 10 different cancer types. to now, if0, 2012 you look at the market and the use of these, it has gone exponential. time, six to eight years,
is a heartbeat for what we used to be thinking of as progress in cancer therapy. this has accelerated really quickly. i think there's no question that immunotherapy is now one of the , butrs of cancer treatment we have a long way to go, which is why the 50 new drugs rolled even though the data was early, has me very excited about the future. julie: i'm afraid will have to leave it here because of all of the breaking news we've had. i know we'll see you very soon. -- and the senior biotech analyst for bloomberg intelligence. ♪
inside. time is short. fiat chrysler is an interesting one that has been on a little bit of a roller coaster recently after the latest ugly sales numbers. what caught -- latest monthly sales numbers. what caught your attention? >> they outperformed in the year to date, or however you want to look at it. gm is chasing all-time highs, while fiat has been meandering lower. so, what happens if oil prices go up and people fall out of love with the suv? what if the dollar appreciates versus the euro, or volatility declines in europe. all of that would benefit if you sold some calls for fiat. julie: interesting, especially because the company said it is pulling the actual fiat cars out of the u.s. and is doubling down on jeep production.
that goes to the suv thesis you're talking about. or at least protection. so -- comes and you want to sell premium, in general, the fix is low. brought hedges, it is cheaper to buy then to sell. -- called alling hedge. we would be reaping $.85. uptick in either an the doctor versus -- in the dollar versus the euro, or if the stock meanders, you get paid, or else your risk is cap. have another 30 seconds. i want to ask you about the broad market. this is a point when we talked to srikumar earlier. we have seen volatility go up even as the vix goes nowhere. thesis is thatrm
as monetary tide goes out, you are going to start to see accidents here there. you saw it in volatility and into emerging markets. bonds are probably the next shoe to drop. the reason they are probably more nervous than equities is that equities still have buybacks going through, so between the taxes and buybacks, that puts the floor under equities. in the short-term, we don't know if there is a -- on the equity market, but that's what we're seeing. julie: steve sosnick is with interactive brokers. -- is going to be here to weigh in on all of the geopolitical developments. ♪ retail.
under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. word news. president trump says the u.s. would like to seek normal
relations with north korea. the president said that normalizing relations is something i would hope to do once the negotiations are completed. nato defense ministers brought -- met in brussels. the ministers downplayed a series of simmering transatlantic disputes. >> we have stay united, thatially when we see russia is trying to divide us. unity within the alliance is our most important message as we prepare for the upcoming summit next month. he added, nato is not looking to isolate russia. we strive for better relations with them. the united states is placing travel bans on police and government officials