tv Bloomberg Technology Bloomberg June 11, 2018 11:00pm-12:00am EDT
regime. stocks across the asia-pacific are slinging as investors weighing this historic moment. david: for the very first time in a very long time, the path to peace is visible. we really don't know at the moment how far we get down this path or how long the path actually is. i am guessing right there where you are, apart from it being hot , how is all this feeling? haslinda: you know what, it is
looking pretty optimistic. the two leaders shook hands, took photos, smiled. their body language is pretty positive, pretty u yesterday we also heard from mike pompeo. he was optimistic something will come out of it, the two sides seem pretty keen to make it work. the issue pretty much, the details. cbiz, will that be included in the agreement. will the agreement be good enough for both sides to sign? we have to wait and see, but we are just moments away. we will bring that to our viewers a bit later on. have a look at how the markets arng. weak spot midmorning regained the gains. as we approach midday, we are. -- futures are little higher. the benchmark basically flat.
here is a quick look at the progression of risk appetite in the morning session. dollar-yen pushing towards 110.50. we have calmed down a little bit. we are looking at the yen as well. when that starts to point higher, you know we are in trouble. unfortunately -- fortunately, that is fairly well contained. as far as korean equities, a quick look at this before we talk about other things. and we arepi 200 looking at the call options, not the index. at 320, a little below that at the moment. these are bets that the index gets to that level in about two days. started out higher but now lower . it is a developing story and we will get you more details later on in the program. in the meantime, here is paul
allen with first word news. 's toppresident trump economic advisor has suffered a mild heart attack. the president tweeted that larry kubo is in walter reed and the white house says he is doin well. goodloe has been a longtime confidante of the president and accompanied him to the g7 in québec. that acrimonious ting ended wi larry kudlow backing up the president irritation with some of america's traditional allies. imf managing directors says threats to the global economy are rising amid signs of a trade war. she says clouds are getting darker each day,ticularly following the acrimonious g7, where president trump turned on his allies in accused justin trudeau of being dishonest and k. the president also threatened to stop trading with the other six nations. mercedes-benz aren't daimler has been authorized to recall more than three quarters of a million vehicles in europe after meetings with regulators failed
to allay concerns about diesel emissions. were cities will upgrade -- mercedes will grade engine software on the vehicles. daimler has consistently denied cheating and has escaped more costly measures such as fines. the cryptocurrency selloff is , eroding more than $40 billion of market value and than 50%. the 2018 slump to more some analysts pin it on a hat on an exchange and south korea, while others point to a clampdown on trading platforms in china. crypto venues are under scrutiny following thefts, market manipulation, and money laundering. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ul allen. this is bloomberg. david: we have seen the pictures. they are meeting right now, two of the world's most unpredictable leaders under one roof. we now go to our chief north
asia correspondent, stephen engle's, on the ground for us. steve, what is happening right now? stephen: that is a better question than the last question i got. someone asked me, is it going to plan? what is the plan? you know something i don't know? that is what we are here for, we don't know the outcome. these deliverables have not been determined beforehand. we do know they had some awkward half miles and the hoopla around the big handshake turned out to be about three shannon jakes -- three handshakes. they retreated inside for cross table discussions. they even took a walk around the top floors of the building behind me. we are perched out in front of the capello hotel, where this high-stakes handshake and summit is taking place. i will run through a few of the comments. you think you have all this time
to prepare for momentous commentary, but the wording was fairly simple. donald trump said we will have a terrific relationship, i have no doubt. donald trump has long said that he will no within the first few minutes whether kim jong-un is going to be serious about his commitments for complete denuclearization. we have heard in the cross table tops when kim was asked directly about denuclearization, he did not necessarily answer. perhaps in the schedule of bilateral, which begins right about now, he will get down to ,rass tacks and talk about cbid complete, verifiable, irreversible denuclearization to use state department parlance. kim jong-un said it was not easy to get here. there were obstacles, but we have overcome them to get here. he says the obvious, there will
be challenges ahead, but this is a good prelude to peace. trump also saying we are working together and will solve this big dilemma. i don't know if the handshake was the hard part or the discussions going forward the rest of this morning and afternoon will be the hard chart -- the hard part, but at least they kicked it off. david: at least we are here. if someone had told me we would be looking at this picture six months ago, i would call that person really crazy. but here we are. i hate to ask this question, but you mentioned there is nothing much to latch onto. what should we make of the body language? he was not a smiley kim jong-un as the previous time with the south korean president, seemed more stoic. can we look at that and try and extrapolate anything from it? stephen: maybe there is some posturing going on. we did see the two leaders comment separately. it seems kim jong-un has more
bounce in his step, a few more smiles. donald trump had just tweeted the news about barry kudlow having a mild heart attack, so maybe he was not in such a jubilant mood, but he had more of a stern face. the body language was a little stiff, awkward in the beginning until they realized the cameras are here, this is our moment, what we have been waiting for. we have been talking so much about the optics, this is our chance. i expected kim jong-un to continue with his charm offensive like he had at the dmz with moon jae-in. that was completely different emotion. jong-un-in -- kim talked extensively about the emotion he was feeling, talking about a warm spring and they needed to talk more. they did talk again. they have had two summits already. there was a bear hug, a grab of
the hands, pulling into north korea briefly, then back. lots of camaraderie for the camera that reflected in the opinion polls of south koreans. they had a much mofavorable opinion of kim jong-un, the man holding the specter of war over their heads for so long. all of a sudden, the mood has changed rather quickly with the liv-ex and that summit -- with the olympics and that summit. this is very different. these are two men who have been trading barbs, and kim jong-un ratcheting up the pressure with missile tests over japan, a key ally of the united states. david: stephen engle, our chief north asia correspondent, live for us out of santentosa. which actually means peace and tranquility, after they changed the name that meant the island of death. diplomacyd, top level and china's present at the summit. we discussed china's influence
haslinda: it is a blistering 34 degrees celsius in the lion city. the historic summit is underway and denuclearization is likely to be the elephant in the room. president trump and kim jong-un have very different ideas of what it means. pres. trump: very easy for me to make a simple be a land claim victory. i don't want to do that. >> complete, verifiable, and irreversible. that is the president same to
take to the big -- the president's aim to take to the negotiation table. kim rejects the libyan model and a demand that the u.s. removes its own nuclear weapons from the region. while trump has indicated flexibility, he will still want to see pyongyang agreed to a timeline. david: let's check the mood in beijing because china is playing a very important role in the summit, even if it is not at the capella hotel. joining us is carnegie-tsinghua onter director paul haenle, a security council under president george w. bush and barack obama. thank you for coming on the program. fairly monumental, these events taking place. just you are broad, initial thoughts on what has been happening so far. >> well, the symbolism that we are seeing play out and the optics are quite powerful. president trump is a former
reality tv star. this is what he does well. he can orchestrate theater and creedia spectacles. it is a good thing the two leaders are meeting, but in some sense the meeting was the easiest part. the north koreans have been trying to meet a u.s. leader for as long as i can remember. when i was in the six party talks negotiating with the north koreans, they expressed strong interest having a meeting with the u.s. president. this house, in their view, to legitimate north korea as a de facto nuclear power. in some sense, the meeting itself is more of a north korea victory than a u.s. victory. as president trump said, what he is trying to do is get the north koreans to give up their nuclear weapons. david: that is the tricky part and we don't know how long that is going to take or what the tangible steps will be. now that we are done with the easy part, what would you be advising donald trump? >> we need to see what comes out of this meeting in terms of
concrete steps and a serious commitment by the north koreans to give up their nuclear weapons , and what kind of timeline that would be done on. we need to maintain the bar that president trump said long ago, that they want -- the administration wants complete, verifiable, irreversible denuclearization. we need to see what comes out of this meeting today to determine how successful this meeting is between the two leaders. we can't declare success yet from the standpoint of the u.s. administration until we see what the two leaders decide in terms of how to address north korea's nuclear program going forward. reason to bethere more optimistic this time around? pompeo said that as well. the content this time is fundamentally different from earlier attempts. well, i am an optimistic
person by nature, but n it comes to dealing with the north koreans and you look at their negotiating history over the past several decades, i think an abundance of caution is prudent. it is not clear yet in my own mind what the north korean leader is trying to achieve with this meeting or why he is trying -- why he has decided to turn to diplomacy. the trump administration likes to think it is because of its maximum pressure campaign and the fact that the united states has been developing military options. from that standpoint, kim jong-un is coming into these discussions from a position of weakness. what i often hear f chinese analysts is because north korea now has a basic level of nuclear deterrence vis-à-vis the united states, the north korean leader is coming into this meeting, from his perspective in a position of greater strength. if that is the case, you have to
ask the question, is the north korean leader really willing to give up the nuclear program his company -- his country has worked so hard to achieve o the last four-plus decades? haslinda: china, the invisible hand. it is in china's interests that these talks workout, yet china would not want very cozy relationship between the u.s. and north korea. >> i think ultimately the chinese do want the north koreans to give up their nuclear weapons. the relations between north korea and china were strained up until late last year, up until the two meetings recently with xi jinping and kim jong-un. many chinese security experts worry that if the relationship had gotten worse, north korea could target some of those missiles to china. they want us korea to give up their nuclear weapons, but they worry about the geopolitical alignment in the region and worry that any improve
relationship between the united states and north korea might come at a cost for china, might represent a loss of strategic influence for china. so they are watching very closely the geopolitical dynamics of the diplomacy that is taking place. 101, knowingation the prie at which level your counterpart walks away. to what extent can donald trump keep pushing the north koreans? what is the line in the sand you think he should not cross t auses the north to walk away from the table? >> i don't think there is any risk of that yet. everything the trump administration has done plays into kim jong-un's playbook. iti said, if you think about , once north korea declared in their new year's statement that they had completed their nuclear program, they now have a weapon that can hit the united states. since that happened, the north korean leader has met the south
korean leader, the chinese president, the u.s. president now. the russian foreign minister recently traveled to north korea to broker a meeting between president putin and the north koan leader. you could argue this is playing out as they planned. as they reach nuclear capability , the international community is legitimating kim jong-un and north korea as a de facto nuclear state. -- thent trump and then u.s. administration needs to work together with other parties involved in the six party talks to make sure this effort is about north korea giving up nuclear weapons, not about accepting north korea as a de facto nuclear state. haslinda: we have been talking about needing a roadmap. how should that roadmap look like? >> i think that's exactly right.
there needs to be a roadmap coming out of this summit that lays out the steps that north korea will take to give up its nuclear weapons. as part of that, the first step is that north korea would provide a declaration of the nuclear programs and material that it has, that it has developed, so that we know what it is north korea has to give up. then we have to talk about the difficult issue of verification. how do you verify that the north koreans are going to do exactly as they say they are going to do if they commit to denuclearization? rification is where we got stuck in the six party talks. the last meeting in december 2008, we tried to get the north oreans to agree to a robust verification regime and they walked out of those talks, not agreeing, and ultimately left the six party talks. david: what about just giving up the nuclear weapons but
maintaining nuclear capability? do you think that is palatable to the americans? >> i don't think so. president trump has been very clear that the ultimate objective -- he set the bar long time ago, that the ultimate objective -- and there are 10 un security council resolutions that say north korea needs to stand down on its nuclear program and ultimately give up its nuclear weapons program. that l t administratiod. that is the bar that president trump set. he seems to have softened his rhetoric as of late, and i worry about that. in fact, it was right after the meeting with kim dong chul when he went to the white house that that rhetoric soften,esident this is one meeting of many and it will be a process over time and he does not want to talk about maximum pressure anymore.
i think we have to be laser focused on what comes out of to themmit with regard question of north korea's nuclear program if we are going to determine this has been a successful meeting. david: thank you for coming on the program, paul haenle at the carnegie-tsinghua center from our beijing studio. in terms of what is ahead, our coverage continues of the singapore summit. first, a look at how we go♪
david: time for a quick check of your latest business headlines. executivehsbc's chief to poor $17 billion into expanding key markets and improving technology. they say it is time to get back into growing mode after restructuring targeting hong kong in particular. but the focus on maintaining dividends was described by jefferies as a disappointment. xiaomi smartphone maker is said to be raising half a billion of its proposed $10 billion ipo from mainland investors. they may seek $5 billion from the sale of cd-r's and similar amounts from offering shares in hong kong. the split will depend on demand and may change before the ipo, which may be the biggest since alibaba in 2014. coming up, markets in asia pacific swing as investors
accompanied him to the g7. the acrimonious meeting ended w backing up the president's irritation with traditional allies. christine lagarde says threats to economy are rising amid signs of a trade war. she says clouds are getting darker each day, particularly following the acrimonious g7, where president trump turn on his allies in accused justin trudeau of being dishonest and weak. the president also threatened to stop trading with the other six nations entirely. theresa may is in advance stocks to head off a rebellion by pro-european members of her divided conservative party. we are told the brexit secretary has backed a compromise on customs arrangements with the eu. may's landmark brexit legislation goes to parliament
on tuesday. she faces pro-eu rebels on one side and pro-brexit campaigners on the other. malaysia says it has uncovered many 1mdb's as the government moves to expose state corruption. the prime minister has found indications of multiple criminal breaches of trust at state institutions and companies linked to the authorities. at least $7 billion went missing at 1mdb and the government expects widespread losses elsewhere. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm paul allen. this is blooberg. david: thank you. just an update. at some point in the next few minutes, we might see them. donald trump and kim jong-un take a break. a working lunch there. has was taking you through the menu. have a look at markets as we head into the open in india.
futures bouncing around. nifty was down yesterday. rupee,ooking at dollar 67.50, 10 year yield pulling back from the level of couple of days ago. let's have a look at majors right now. two things i want to mention. euro-dollar, big drop across yields in italy on the back of comments from the finance minister about staying in the eurozone. a big dip on sterling on the back of that surprised contraction in manufacturing. 133.60, really comes down to the fact we are trading near those lows from about 4:00 p.m. asia t yesterday. here is a look at the risk radar, if you will. we are watching on yen one, top right of your screen. if that starts to point out, we are in trouble. at the moment, fortunately risk indrs are pointing to risk
sentiment remaining robust. it depends on the news of the meeting. speaking of south korean markets, here is a 30,000 above view of the markets. we could argue there is a risk premium built into this market. the other story i want to mention, which we will talk about later -- if you look at this side of the screen, that has been revised lower as far as estimates are concerned. you do understand why it is the arket across the asia-pacific. mark conan is with us, aia group cio. if we strip away the pomp and the warm and fuzzy feelings, looking foro across all of this? >> hoping to see momentum build up so the process can continue. throughwere sanguine the difficult period last summer
with the talk about fire and and all nuclear tests the other aspects of that friction. rerate are unlikely to on the back of progress. we are looking for momentum ge promising so far. david something tangible that may come about, although there is no way of knohen it , is the removal of the tag missiles of some -- removal of the thad missile tem. >> remembering that that caused friction and conflict between south korea and mainland china and mainland china retaliated and reduced the number of mainland visitors to korea, south korea. and probably caused the economy somewhere around .5% gdp growth last year. as these talks progress, if that were revisited and there was
some amelioration, we could start to see the mainland tourist arrivals pickup and that eouth.boost consumer spending in haslinda: we have also seen construction companies gaining. what other sectors are we looking at, apart from tourism? >> i think investors have really been trying to scratch beneath the surface and see how to take advantage of any thawing in the relationship. the one aspect which has really gathered momentum and has consensus is any improvement in the relationship between north and south korea via these talks with the united states would be cross-border investment, mostly commercial, not so much a social transfer, as we saw around the reunification between east and west germany.
so commercial investment and largely infrastructure, because that will be the first objective, to improve infrastructure and transportation and connectivity between the two koreas. investors are looking at that and the construction sector as a way to play the same. beyond that, it is difficult because korea is part of the global trading system and would not necessarily be a direct wingficiary of this tha of the relationship and away investors and happen to. south korea has structural issues which go beyond any thoughts of reunification. investors are left with very few ways of tapping into this, given that we don't see that significant discount coming through -- or did not see the discount coming through last summer. so we don't have that revaluation premium to pick up as we start to see an improving relationship.
haslinda: should there be an opening, how much potential do you see in north korea? we talk about it being a poor country, but it has a robust mineral sector. iron ore, gold. some say it is a sector possibly worth $6 trillion to $10 billion. >> absolutely right. the main beneficiary in a larger context, the main beneficiary economically as north korea, clearly with the potential for sanctions to be reduced or removed, the opening of the economy over time can only be a boost. we don't really know how that economy operates and how it survives. a lot of support coming from china and cross-border activity with china, but i think any thawing in the relationship and removal of those sanctions would be a huge beneficiary for the north. the resource sector would be part of that, but more broadly,
we would see a restaging of the north korean economy over time. investors will be looking at accessing that through direct means. i don't think you are going to get access through the south korean stock market. maybe some of these smaller counters, but generally speaking, most of the names driving the earnings we saw last year, the improvement in the south korean market relates to semiconductors. there was a repricing globally of semiconductors and that really boosted earnings on the korean stock market. very narrow in terms of where earnings were coming from, a small number of names. that is not really going to be affected by what is going on cross-border with the north. david: just to pick up on something you mentioned, the social trends. if we get to that point where we need to talk about unification, if i'm sitting on south korean debt and i am worried about blowing the budget over the next what itwhy is this not
was back during the west a east germany in terms of that transaction? >> i think very simply, the south can't afford that level of support. they have structural issues with an aging society and demographic , which they are grappling with as we speak. this is part of the agenda of president moon's government, to really address that. he does not have the financial wherewithal to support that level of integration cost and fiscal stimulus. i don't think we are looking at the same type of situation that we saw between east and west germany, where west germany picked up the tabs. david: $2 trillion, i believe. lots more to talk about with mark konyn, cio at the aia group . coming up, we look at china's role in the summit. beijing obviously has influenced this. we talk about that aspect of this developing story.
haslinda: trumpian kim on a working lunch -- trump and kim at a working lunch with their teams. china in the room. let's get our china correspondent tom mackenzie, joining us from beijing. what would be the best result for china's leadership? tom: clearly beijing is clear to see -- clearly beijing wants to see a dialing down of tensions between north korea and the u.s. and may be very keen to see a drawdown in u.s. troops on the south korean border with north korea. 38,000 u.s. troops on the border.
of course, any weakening of ties between south korea and washington would be seen as a benefit in terms of the influence china can wield over the korean peninsula. there are risks, of course.we w. risks around whether or not kim gets so close to washington on the back of these talks that it starts to make china feel uncomfortable. they do want to maintain that influence in this region, so that is something they're looking out for. longer-term, they are looking at the economic possibilities. we have been talking around that with one of the guests in north korea, but it really infrastructure and opening trade flows. a number of issues china will be monitoring very carefully. we had a comment from the official state run news agency of china, warning there was going to be a bumpy ride in these conversations going forward and saying that both sides, north korea and washington, should continue to take action to move things forward in a peaceful manner and
china will continue to support a peaceful resolution. david: tom, they are obviously not in the room, but you can almost feel the jedi presence in the room. how has china actually signaled its support for kim jong-un? tom: we had air china, the flagship carrier, flying kim over from singapore -- from pyongyang to singapore. the boeing 747 touching down. it was formally used by the bureau standing committee in china. that was a message they are supporting north korea. we have seen two meetings between president xi and kim in china, really an about-face in terms of relations between beijing and pyongyang, which have been frosty. don't forget it was kim who executed an uncle close to the
chinese and also alleged to have assassinated his half-brother, also with ties to china. of course china has been crucial in implemented tough sanctions that have been detrimental to north korea. so the relations between beijing and pyongyang cert too a turn for the worse but have been rapidly repaired at least superficially as a result of the meetings in china and the support you are seeing on the ground in singapore from the likes of air china and the boeing 747. we expect that to continue. china does not have the appetite to implement further sanctions should these stocks deteriorate. that is not a position that china seems willing to use. they may also look to his as another point of leverage in trade talks with the u.s.. history is never far from the surface in china. 400,000 chinese troops killed in the korean war. that is something of a broader
implication for china. it seems that continuing to build on the relations with kim following the talks will be important for china as they try to shape the peace process, if there is one. david: it gets cockaded -- it gets complicated. tom mackenzie out of beijing. mark konyn is still with us. tom mentioned that term leverage. if this all goes away, so does china's leverage as far as the ace card they hold over north korea as far as dealing with the americans. >> we are a very low point last summer, where the attention really ratcheted up and the rhetoric was coming out was not in anyone's interest. it is clearly in china's interest as well to see the border normalized, to see the relationship between the north and south become cooler, not so tense, to see the u.s. less
bellicose in the way it is referring to the north, and really to try and sme improvement overall in the region. and not just for china. japan is a big stakeholder in the outcome of these stocks as well. but you raise a good point. china has always been a big supporter for the north, it has been sitting behind north supporting the regime. and in some sense provides the reassurance to the north that should these talks continue, we see some sort of china guaranteed in supporting the north to make sure the north feels comfortable going down that path of negotiation and giving up its nuclear weapons, for the u.s. to feel comfortable as it pulls back in terms of military support in the south. there needs to be a role for china that everyone recognizes the key role china's going to play. that is on the political side but also the economic side.
there is no way the north korean economy is going to be resuscitated without the support of mainland china. david: this has really been a cloud over everyone's head. financial journalists, we look at something, we point to it as the reason markets are not doing anything. is this that cloud that needs to go away? markets have not done anything really since the selloff back in january. people claim geopolitics. is this part of geopolitics? >> i don't think so. i don't think this has been suppressing markets. markets in this region had landed exceptionally good year last year. then coming into 2018, there has with raising rates in the united states, concerned that the momentum of the synchronized growth that was foretold at the end of last year, that was starting to unravel. that is what is impacting investor sentiment, the risk on, risk off aspect perhaps has not
been as clear and clinical as it was last year. i don't think it is this particular issue depressing markets. we are keeping them dry on the ecb, the fed, the boj, and a summit. the ecb possibly the biggest market mover news. >> yeah, i think probably the less easy to read. i think the fed would feel pretty comfortable, investors feel pretty comfortable with the way that is heading. we have had stronger economic news in the u.s., firming up of inflation. the rate rise is pretty much telegraphed and i think markets are recognizing and comfortable with that. the ecb, more difficult, averaging the point where declaring victory and pulling back from stimulus is always going to be a bumpy ride. i think draghi has really orchestrated this very carefully. he is very keen to make sure people don't read into his
actions or his statement too much relating to politics or global events, certainly events going on in italy. he wants to make sure you stick to the economic hard facts. nevertheless, the withdrawal of stimulus as we moved to september towards the end of the isr and the end of his term going to make this a very bumpy ride in some respects, because unlike the fed, the ecb has been buying corporate debt, buying about 20% of the new issuance since 2016. that has been a big support for the market in europe. it helped dampen volatility in the corporate market and debt market and any sensible pullback will potentially be somewhat of a dislocation. do you see qe ending before draghi's term ends? >> i think that is the plan. the agenda is to start pulling back from december and winding
down through next year. i think that is draghi's attention -- intention. he made it clear he wants to leave therm in that position, pulling things back together before the stimulus began. it has been a remarkable passage, 2.6 trillion euros of support targeted to the system. it is offsetting the capital account deficits, particularly in the southern part of the eurozone. there is a significant amount of distortion within the financial system and draghi sees it very much as his responsibility to begin the process of returning to some sense of normality. david: got to leave it there, but we covered a lot. mark konyn there, chief investment officer of the aia group. if you are a bloomberg subscriber, you can catch up on all the interviews. eight the great chat we had with mark. tv is our function for that.
stephen: we are still waiting. it is a working lunch, at least they have not stopped negotiations. hopefully they are working towards some sort of agreement on a joint statement to come out before the nth koreans are due to leave in the early afternoon, had pyongyang. -- head back to pyongyang. the whole timetable of the summit has been accelerated after the north koreans said they would head back to pyongyang at about 2:00 in the afternoon. donald trump will have a news conference later about 5:00 p.m., then it is wheels up on air force one back to the united states tonight. he had originally planned to stay until tomorrow in case the summit would be extended. it is not extended. they are wheels up at 7:00 p.m. st lots to get done. ,he big question, will the cvid complete, verifiable, a reversible denuclearization, the real line in the sand for the americans.
that they won't budge on. that is the grounds the united states says the north koreans have to meet, at least give a timetable for disarmament before they can consider concessions on sanctions. one thing mike pompeo did say last night is that they are going to be offering some sort e capable of offering some unique proposal in terms of ring security or regime security for the north koreans, wojcicki are the kim jong-un's -- which is geared to kim j. david: based on the agenda so far, you mentioned a little about this. 4:00 p.m. is when kim is scheduled to fly off to north korea, about three hours later his wheels up for air force one. can we take it that because everything has been moved forward, we have had progress in the talks? stephen: interesting question, because it is either projects --
it is either progress or not progress. we did here again for mike pompeo last night, saying that the progress had been accelerated a little bit in the talks, so that was a good indication they are reaching some common ground. perhaps there also ratcheting down expectations. we already started getting back yesterday from the white house and others, saying, listen, this is going to take more than one summit, this could take multiple meetings. sense of is there any the roadmap, steve? sorry, i did not hear that question. is there a sense of the roadmap? some say it could take as long as 10 years. absolutely, this is not a short-term solution by any stretch of the imagination. this is just the beginning.
yousef: this is bloomberg daybreak middle east. president trump and kim express optimism as their highly anticipated summit finally gets underway. president trump: we will have a great discussion and tremendous success. it will be tremendously successful. and ittwo leaders meet would've been unimaginable months ago. we are live in singapore on this historic day. the whiteis morning, house is top economic adviser larry kudlow is doing well after suffering a heart attack.