tv Bloomberg Markets European Open Bloomberg June 12, 2018 2:30am-4:00am EDT
guy: we are live from our european headquarters here in london. i am mark artan alongside matt -- mark barton. matt: the first face-to-face encounter between a sitting u.s. president and the leader of north korea. the cash trade is less than 30 minutes away. mark: president trump and kim jong-un signed an agreement, the
details of the documents remain unknown. north korea pledges to work toward complete denuclearization. trump reiterates the historic summit when -- went better than anyone could have expected. korean stocks and the korean won are unchanged. next up is trump's. we will bring you those are here on television and radio. matt: absolutely. we are all over that summit. with less than half an hour to go toward the european open, let's look at the risk on mood is exploding across asia effects european trade. we're looking at gains on futures, not gains for ftse futures as you have your own little bresky -- brexit risk owing on, the dax futures are up .3 -- .6 of 1%. president donald trump and north korean leader kim jong and has
-- have signed what trump very important document following a historic one-on-one meeting and working lunch. "rump said he would "absolutely invite kim to the white house and called him a talented man, raising his intelligence and seeing his a worthy negotiator. sentoza, and is in is bloomberg live strategist mark cudmore. austria has pledged to start a path toward complete denuclearization. mathat is right. we are getting details of what the two gentlemen sign. i have not had time, i was trying to get through some of the points that are going to be
made. we will digest that over the next few minutes. if this is the north koreans have agreed to a complete denuclearization, we have to dig is that say what definition? kim jong-un has pledged that before. he pledged that multiple times and he met with the south korean president. the u.s. seems to have a little bit of a different definition of what a complete denuclearization is and what it means and how much the u.s. will give concessions to pyongyang. they want complete verifiable come a irreversible denuclearization. the north koreans want a step-by-step slower process of denuclearization and they want the u.s. to lessen its nuclear security umblla over east asia and its allies, japan and south korea. the u.s. does not since the early 1990's, have actual nukes
stationed on the korean peninsula. range under this protective umbrella in east asia. i have not read through some of wasdetails yet for what signed. i would be surprised if donald trump and the u.s. signed any agreement that would reduce, at this point, the troop presence or that security umbrella over east asia. and two seemne focused on having a new era of relatis. some of the language is about plans for further negotiations. led by secretary of state mike pompeo. "a relevant high-level north korean official at the earliest possible date." the remains of prisoners of war. we are slowly getting details of the signed communique, piece of
paper. can we step back, we are going to listen to the president, president trump on this historic day. president trump: our relationship with north korea and the korean peninsula is going to be very much different situation than it has in the past. we both want to do something, we something,ing to do and we have developed a very special bond. get back to haslinda amin. thise drilling down into signed document? no further details. where waiting for the 2:30 p.m. press conference that will be held by president trump in seoul. it is different from what we had heard before. trump and kim, seem
to want to give the impression they have chemistry and they are sincere and they have the commitment to bring this forward. whether both sides can be trusted, they seem to give the impression they are willing to mother commitment is there. that commitment is there. that leaves us with the impression that this is more than what we have seen before. have been here before. 18 years ago, kim jong-un's father came close to northearization the korean peninsula. that fell through. we know where north korea's capabilities are. yes, as much as we want to believe, we have to be careful, we have to look and wait for the details. go to markt to cudmore and say, first off, i
start every day typically reading your mliv blog. today, i had to go to the tliv log and i was tech to it all morning, literally for hours. i am sure other clients around the world were following the summit play-by-play. it has not had much of an effect on asset prices, has it question mark we see treasury yields rising and dollar strength, otherwise there is not a lot of resultant effect on prices. you are completely right to go to the tliv blog and not the mliv log. this is the market story. it is a momentous occasion, a big political story, but it is not a market story. markets want to see an exact deadline. it is a marginal positive. investors have kept a bdi on it. there is a complete collapse in a hateful and to
the conference but that was not likely. thatther tail risk was will take weeks of negotiation. tliv has done a great job of covering that. matt: absolutely. i recommend anyone go to check anythe tliv blog to see live event coverage, but this has been amazing. likeis the reception they're in singapore, and in asia at large question mark the onanese have a lot this. the chinese were not there physically, but the flu came in their plane, their food was there, and they have been looming large over the summit as well. japan, china, south
korea have a lot at stake. even singapore. when trump met with singaporprie is willing to spend $20 million. stability, that is important to a foundation like singapore. singapore happy to host this, happy to bring forward the process of denuclearization and whatever it takes. chinese, thet the south koreans, a lot is at stake here. we talked about the chinese wanting the american troops out of the region as well. offulfill its own ambition having his own military might, overseeing this part of the world. fasted interest for a lot of countries in this part of the world. mark: the big event of this
week, wait for it, is not trump, d, the, it is boj,un, is it the it is not combing over the remains of the g7, it is not the brexit debate that takes place in the house of commons today. it is the world cup, and you calculations. who is going to come out on top at the end of this? we have lost mark. read this wonderful piece by mark cudmore on the world cup and for the results, he makes germany the favorite to win the 16%d cup with a
probability. we want to thank haslinda amin and mark cudmore and stephen engle. let's get the bloomberg first word news. donald trump has said he has signed an important document with north korea's kim jong-un. working toward a complete earization of the korean peninsula and commit to a lasting and stable peace. donald trump is scheduled to hold a news conference after the historic one-to-one meeting. withr whole relationship north korea and the korean is mine to be a much different situation than it has in the we both want to do something. we're both going to do something. we have developed a very special bond. trump's topd
economic advisor has suffered a mild heart attack. the white house says he is doing well. larry kudlow has been a longtime confidant and accompanied him to the g7 in quebec. it ended with kudlow backing up the president'irritation with some of america's traditional allies, most notably, canada. the imf's managing director christine lagarde had said threats to the global economy are rising. she said the clouds are getting darker, the chick of early in the week of the -- particularly in the wake of the summit. where president trump turned on his allies and accused trudeau of being weak and dishonest. oneesa may has dumbed down rebellion and urged rebels to back down on another.
she edged toward a deal on brexit that could hold her divided party together. gave his backing to a compromised amendment on customs arrangements but was not clear if the government has staved off all passable -- possible challenges. legislation goes to parliament today and tomorrow. protectn watchdog features real madrid, it says it could activate phones of users. the aim is to crack down on establishments that legally -- illegally broadcast games. costing 100 50 million euros in spain.
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. this is bloomberg. matt: thanks ray much. next, we are awaiting the news conference out of singapore after this historic summit. we want to find out more about this -- the substance of that document that was signed. we will bring you those details and that press conference live as we covered this summit from and to end. this is bloomberg. ♪
mark: welcome back to the european open. that is president trump signing this document. it has not been officially released. there is the north korean leader kim jong on. we have our wonderful tliv function that we have been glued to. reporter hasse summed it up. just so we know what is on this document or what we know so far. korea is.s. said nort committed to establishing a new u.s.-dprk relations. two, the u.s. and north korea will build a lasting and stable peace regime on the korean peninsula. thet three, reaffirming
april 27, 2018 declaration, the dprk commits toward complete denuclearization of the korean peninsula. point four, committing to recovering prisoners of war, missing in action, including the immediate repatriation of those already identified. our chief content officer, great to see you in the flesh. what are we to make of those points, particularly point number three, which is the biggie, the commitment to working toward complete denuclearization. has been made before. >> yeah, it has been made before and not just by the current leader but the previous leader of north korea only to fall through. you do not need work towards. they do not commit to complete
denuclearization, the commit to work towards it. ultimately, the devil is in the details. this document probably does not , howa lot of the details this is actually going to happen. that will take weeks, months, even years to work out. it seems to short to contain alails. we would have seck of 00 pages on the desk. isn't working towards denuclearization, isn't it some kind of level of goodwillnd communication, at least a step in the right direction, or is this regime really not to be trusted? the right direction. when you think about where we were a year ago, it is stark contrast to the war of words between the two leaders. make no mistake. donald trump wanted a win here for domestic and international
reasons. it is interesting to me that he heaped praise on kim jong-un when just a few days ago, he ally, justinr trudeau. is, it, the contrast cannot be understated. it will be interesting also, this press conference, how much he talks about the agreement and how much he talks about his achieving the agreement. if trump madeer any concessions. any sanctions -- any concessions, any sancti which he will be drilled on. >> what did north korea get from signing this document? of meetinge stage the u.s. president, they will get an invitation to the white house. the economy is in shambles. the people are challenged in
terms of food. is nothing in this document, at least from the headlines i have seen, that relaxes the sanctions. there are interesting parallels between, and some ways, the president will be concerned as he said about giving us the details, we hope, from the agreement, what that does for america. it has been on this america first campaign since before the election. on the other hand, he is often concerned about touting his own achievements. that is another thing we will be watching for. how much of his time he devotes to that at his press conference. i wonder about kim jong-un, how much concern is for the economic well-being of his people and how much of his concern is for the safety of hisnd regime? how do you think. could guarantee that to the north
korean leader? asoor a record as north korea has in keeping its word on committing to denuclearization, the u.s. has a pretty bad record of keeping its word to the leaders and the regimes that i convinces to give up some power, much like muammar gaddafi. >> the specter of libya and what happened to more marked the coffee clovers -- hovers over this agreement. given donald trump history and rhetoric, he is not in any way interested in regime change. he is constantly beating the table on how our mideast policy has resulted in chaos when we did endeavor to try and effect regime change in that region. a commitmentking toward north korean security, i do not see how as a practical
matter, we can guarantee it. no one knows what is going on within the north korea political sphere, and certainly there is nothing the u.s. can do to guarantee his security. opaque situation in so many ways. he will stick with us as a guest host for the hour on this historic day. when the u.s. president sat down and metsupreme leader of north korea for the first time in history. we are minutes away from the open. let's not forget about the markets. there are about to open and kickoff in the midst of this excitement about the summit. joining us now from our equities team. looking at daimler after the big moves yesterday. mark barton will be looking in from london for us at casino,
none of this related to north korea. that has not had an effect on acid crisis. there are other stories to keep an eye on. what is the story with bill way? sam: this story is interesting because we have two house builders out. also chris nicholson and the results are different. market conditions remain favorable. margins look good. chris nicholson issued a warning in may and things have not got that much better. can see the moving both ways and an interesting read across the rest of the sector. ma: thanks very much for that. benedikt kammel is here with me on a story that i found yesterday and that is daimler recalling a number of vehicles having more problems with the diesel issues. it brought to mind concerned
that this could roll into a volkswagen scandal. have they managed to save it from going that far? they agreed to a -- but there are no fines attached. this is potentially good news for daimler. it may cost them 100 million but this is money they can absorb, compare that to the 25 billion that volkswagen coughed up in the last three years. potentially good news and we will see the stock go up on this this morning. matt: let me get to you on the casino story. what we hear from the french grocery operator? mark: planning to sell a billion and a half worth of assets such as store sites. what it wants to do is cut its debt. it has received broad interest in the assets. some of the real estate on which the shops are located have high potential value.
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>> minutes from the open, let's look at futures as the historic summit continues in singapore. that was earlier when trump and afterng-un met earlier 2:00 a.m. local time, 9:00 p.m. local time -- new york time. today full of headlines, staged pieces. the two leaders created a "special bond." the marker reaction has been lukewarm to positive. euro stoxx 50 futures are up by one third of 1%. we are seeing yen fall, so defensive currencies are
falling, which is a good sign in the wake of this summit. ftse futures up .25%. backs and cap futures indicated higher when the session starts. that is after shares rose yesterday. we are at the open. let's look at how european equities are set to open. it looks like we would see stocks rise at the open and that seems to be the case as the ftse 100 is up by about .20%. the ibex is rising at the open. it is all about trump and kim. we haven't had the official release of the signed document, but due to the fact that president trump held it up after he signed it, many photographers have got the wonderful lenses were able to close in on the four main points, which suggests
that the two nations will pursue relations. north korea will remain on the path toward complete denuclearization. what has the u.s. given up to jong-un came to the table and signed the documents? conferenceig news that we will show you live and in full on bloomberg television but in the week of all weeks when we have singapore, the fed, the the boj, the world cup, theresa may's big exit will returning to the hou -- briggs it bill returning to the house of commons, there is a slight risk on flavored to today's marketplace. matt: absolutely. if i take a look at the mov screen, i can see 421 stocks are up and 82 are down. the breadth is overwhelmingly to the upside as far as the individual market movers.
of the at winners, one big gainers and also a lot of the financials, hsbc, allianz rising as well as bnp paribas. even defensive stocks are up. unilever, as british american tobacco is gaining. nordiskosing side, novo at the top. rio tinto and deutsche post among companies falling, as is anglo american. some minors and metals down this morning. very few losers out of the stoxx 600. back to the summit. president donald trump and leader kim jong-un have signed what trump describes as a very important document following a historic one-on-one meeting and working lunch. trump would "absolutely invite kim to the white house and ,"lled him a talented man
saying he is a worthy negotiator. think our whole relationship with north korea and the korean peninsula is going to be a much different situation than it has in the past. we both want to do something. we both are going to do something, and we have developed a very special bond. matt: joining us now is bloomberg's chief cont officer in london. andingapore, stephen engle chief washington correspondent kevin cirilli, standing by for the press conference in a moment . we will bring you that live. you can follow on bloomberg's tliv function, a great way to focus on that. stephen, you have read the entire document that the president and chairman kim have signed.
what are the highlights? stephen: i was one of the few people who zoom to and on the photograph and saw the words. i read the whole thing and won't read it to you, but gave you the -- give you the four points. relationshipew between the two countries based on the desires of the people of the two countries for peace and prosperity. number two, a new peace framework they have agreed upon for the korean peninsula. a new commitment to the old promises that were made. point three,n -- made in april between moon jae-in and kim jong-un. nothing new on that front. also, a new commitment to recovering prisoners of war from the korean war in the early 1950's and those missing in action. those are the four can-do's.
nots, they did not give the scope of denuclearization or a timetable. no explanation of the guarantees, the security guarantees the united states might have given kim jong-un, that mike pompeo alluded to last night. they would have a unique approach to security guarantees. there were no premature concessions given in this document and there was no escalation. perhaps most importantly, no escalation of tensions. they didn't walk out on each other. mark: which is a big win when we think of the global knock on effect. there is the document and we have been able to use our zoom lenses, as is often the case in these events. the admission from the statement mentioned complete
denuclearization, but not the other two parts, which is verifiable and irreversible. we know north korean preferred language has been the former. does that tell us kim maybe got his way more than trump did? >> to me -- donald trump wanted to get an agreement out of this meeting and he got one, and if it took softening the language, that was something he was willing to do so he could sign that document and have us on set talking about it. mark: we mustn't overlook the fact that they have signed a document. it is easy to heat coals on it, but the fact they have actually extenta document to some , what is in it is secondary. >> that is true. you can't discount that it is more than just symbolism. when we think about a year ago and people were concerned about
a of actual nur war on the peninsula, to see those two , it can't be understated how important it is. but the devil is in the details and those could take months or years to work out. and it is not just a year ago -- north korea has been a big problem on the world stage for many years, since long before president trump was in office. let me go to kevin cirilli, our washington reporter who is in the press briefing room where the president will soon give a conference and asked you. on the one hand, there are critics who say this is a brutal to cater and we shouldn' we honoring him in any way. on the other hand, donald trump looks very presidential and he looks very successful right now because of this achievement and this agreement. what do you expect to hear from him? trump president donald
will address the global press corps here at the capello hotel sentosa rosa island -- meeting is made public. this is a commitment on behalf of kim jong-un to denuclearize, but now the work begins and how president trump will seek to portray their ability -- [inaudible] matt: it sounds like we have lost kevin's audio. he is in a room full of press and other signals conflict in. i want to get back to stephen what is thek you, view from asia on this? japan has important accomplishments it wants donald trump to achieve getting prisoners back from north korea.
china has a lot riding on this. that country looms large at the summit, even though they aren't taking part in it. i wonder how asia is seeing donald trump coming through here? he has been praised by the leader of south korea, for example. well, i think the specter of nuclear war, as you have been discussing, the fact that has been lessened after all the rhetoric over the past year, that is a good thing for asia and japan. i have been in japan many times when we were covering the missile test that flew over and japan is in the crosshairs. shinzo abe has really put a lot of lyrical capital with the jet -- political capital to lobby for more of a hawkish approach to north korea. shinzo abe, who was the first to visit donald trump in the white house and the most recent leader to go to the white house to talk to donald trump -- obviously, he
is trying to get donald trump's year, don't -- ear, don't make too many concessions, because we might pay the price but tohe point marty was making that signing the document i readrtant in itself, further down theument and it does describe this summit as an overcomingnt in decades of tensions and end hostilities between the countries. and for the opening up of a new future. you mentioned china. i think it was the chinese foreign minister or at least a high-ranking official. the headline described this suit as a new history. i don't know if it is a new history, but those were the words the chinese foreign ministry used. perhaps a new future is what they mean. mark: i want to show you european equity markets. at amount, the senior fellow at
the federation of american scientists in washington says today's comprehensive statement shows that the nuclear issue remains unresolved. refusing to specify ial steps or offer a car noted the and we have words "verifiable" were left out. there isn't a negative knock on effect from the meeting. that is the takeaway. european stocks are rising. there hasn't been a flight to haven currencies. -- yen, the swiss franc marty is still with us. domesticat is the takeaway? the washington take away from this? does trump come out of this with approval ratings rising? his approval ratings falling? how does this set us up post disastrous and to the g-7
summit? marty: donald trump's poll numbers had been rising in the weeks preceding the g-7. i don't think he hurt himself very much. i don't think public in general really fixates on g7 or g six plus one. conference,is press donald trump will use the standard line that this issue should have been taking care of by previous presidents and now, it took him to do it and he deserves credit for that. guy: is there a risk that we get the inverse of the trudeau-trump moment. trump leaves g7, trudeau badmouth's trump that press conference. could the reverse happen? kim jong-un leaves summit, trump news conference says something provocative? is that the risk and it all comes tumbling down the edifice?
think donaldbut i trump understands how this dynamic works from a public relations standpoint. he will heap raise on himself for having accomplished this document and this pledge, and i do think he rightfully can say he has changed the narrative on the korean peninsula. it is very much like how richard nixon was able to accomplish in china what previous presidents auld not, and it took conservative republican to open up china for the u.s. and just , hisdonald trump, who narrative on north korea was very strident, was able to execute this agreement. i think he deserves credit, but let's see where it leads. matt: i want to point out the "the newreport for yorker," the headline today, "kim jong-un offers to host
peace tatween united states and canad i found that humorous, but this is an accomplishment for donald trump as marty says. i want to get back to kevin cirilli in singapore our washington reporter in the ess room. can trump cap this among his major accomplishments? , tax legislation has to be one and this has to be other big and he has done in office? president trump has to sell this to america. toparticular, he is going have to lay out how, specifically, the united states will verify north korea's commitment to denuclearize? the president, suggesting kim jong-un will visit the white house and this is only the first in a series of meetings. back in washington, d.c., i spoke to several aides to
prominent republican lawmakers who told me they are concerned about theion of how the president's administration will seek to verify this. from here, secretary mike pompeo -- will tour asia to meet with allies in the area to continue to ease concerns about how exactly the u.s. will go about this. intents and purposes, president trump is going to argue that he has delivered something that his critics said he would be an able to do in bringing north korea to the negotiation table and also he will seek to say this is the first step in a longer process of peace for north korea and on the korean peninsula. mark: thanks, kevin. stephen engle, kevin cirilli in, and our chief economics officer. let's get to our top stock stories. nejra: let's start with par 4,
totching employees over google's productivity software, replacing ibm. what it will do is use google product, includi, calendar, drive, docs and it is a deal that allows carrefour customers to shop through google platform. it is one of the best performers on the stoxx 600. , as well,ining recalling 774,000 diesel vehicles in europe, but avoiding the risk of fines. the market focusing on the positive. yesterday after the market close that consultations with the german government kevin: were constructive. kevin: it seems to be a slap on the wrist for daimler. we are seeing a positive right -- right there. green,erg in the
confirming its 2018 outlook at its capital markets day. matt: thanks very much. next, we will talk about daimler's diesel defeat. the german automaker has been oil -- ordered to recall 774,000 vehicles, but avoid a fine for using an illegal device in its diesel engines. we will assess the fallout and talk about the auto industry at really inause it's focus, especially after this spat between donald trump and justin trudeau. this is bloomberg. ♪
mark: welcome back to the european open. what a day it has been. pictures of singapore live, where president trump kim jong-un signed a declaration that north korea would work toward complete denuclearization is when the two leaders signed this document. they left undefined the path to eliminating pyongyang's nuclear arsenal. they made a pledge as part of the joint statement. this is picture from earlier at the end of the historic summit in singapore. "we both want to do something," trump said tuesday with kim sitting at his side. "we have developed a special
bond," and the korean leader said it signaled a new start, leaving the past behind. the world will witness an age of change and equities are rising, matt. there is no market effect from the historic summit between the two leaders. you mentioned, safe haven assets have lost some ground, as well. look at the world map. you can get it on your bloomberg , type wmd. -- wm go. we are looking at a .5% gain in portugal. the czech market is up 1.5%, a big game for the czech republic. are looking at decent gains, .2% in germany and france and italy. the yen istioned, weaker against the dollar. swiss franc is weaker against
the dollar. gold is down. no one is seeking safe haven and that can be taken as a risk on sign. individua about an stock that has caught our attention. daimler has been ordered to recall 700 $74,000 vehicles following an accusation that use illegal defeat devices in its diesel engines. the move follows consultations in berlin yesterday, which the ceo called constructive. the carmaker escaped more costly measures, such as fines or a hardware fix that has been important to the auto industry and german government. for more, the head of automotive research at ever poor isi -- evercore isi. we have a lot to talk about, but let me address the elephant in the room. why is it so important to the auto industry here and the german government to avoid hardware fixes when it seems that would be the best way to
solve the diesel emissions issue? fixes are extremely expensive. they cost 2000 to 3000 euros per car. the effectiveness -- people debate how effective they really are. you put a lot of money into the old and aging vehicle fleet instead of investing that money into electrification, which germany should do because electric vehicles are being pushed, but the capacity and technology isn't there. if you put multimillions into old diesel engines, you don't have that money to invest into electric. daimler will recall 700 74,000 vehicles. no fines likely, what will the cost be to daimler? 75, 80 million euros max. , it willoftware flash
be approved by german authorities. we have seen that before, multimillion vehicles from audi, volkswagen. these costs are immaterial, but they have a solution now, they make peace with berlin and get these cars properly fixed. matt: what do you think about the german carmakers in general, versus their peers? you like the stocks of daimler, bmw, and volkswagen? ardt: it is generally tough because at the moment, we have all these trade roadblocks and uncertainties, we have e.m. weaknesses, currencies moving around, so the macro environment is quite tough. that is why we prefer strong equity stories. we like volkswagen for the turnaround, i expect a lot from the new ceo. that is my preferred stock out there. vw.
bmw is in a bit of a holding pattern. they had good product momentum, but i want to see that coming through. daimler is at the peak of its mercedes product range. a truck line is holding up knife -- nicely. , volkswagen, then daimler, them bmw. mark: is bmw over the reputational damage? does dime take a reputational damage hit from this and what lessons can be discerned from vw? ardt: vw is beyond the big reputational -- they are selling record numbers, so consumers trust all of the vw brands. temporarily, daimler is in the naughty corner, but the market will get over that. consumers are very loyal to their brands. the quality of mercedes cars is unquestionably good. matt: i want to ask quickly about the specter of
protectionism, of trade concerns. about donaldhink trump's trade tensions, especially after the last g7 meeting? look, he continues to threaten, especially german oems with significant tariffs. tariffsalk up to 25% shipping cars into the u.s. twogermans are shipping point 5%. if anything comes close to 25%, they wouldn't sell a single car with a profit into the united states. that is very clear. the final outcome will be a harmonization between tariffs andeen the eu and the u.s. with that, everyone could make a good living. mark: thanks for coming in, ardt core isi.st at ever next, the trump news conference, we are standing by. we will get reaction to today's
matt: very special bond. president trump and kim jong-un signed an agreement to work toward the complete denuclearization of the korean peninsula. that theterates historic summit went better than anyone could have expected and that he would absolutely invite the north korean leader to the white house. korean stocks and the one are unchanged, but european stocks are gaining. next, trump's briefing. we will bring you those remarks live on bloomberg television on bloomberg radio, as well. we are 30 minutes into the trading day and looking at gains.
mark: we are up for a second day, stoxx 600, you can see from our wonderful function is gaining. -- is top of the leaderboard, shares up by 5.5%. it is planning to divest 1.5 billion euros of assets, store sites. it wants to cut debt. shares in casino up by 5.5%. carrefour,rs include up by 3% today. mi, other gainers. worst performers, and we are seeing a day of gains, reflecting the spillover from the summit between kim jong-un and president trump. so stocksanana skins, are rising, risk assets gaining today. this is the flip side of the equation. tro among the big
decliners. there is definitely appetite for risk today. we see the yen decline against the dollar, the swiss franc incline against the dollar. there are traditional haven assets falling back as investors put money to work in risk assets. it is a busy week, the fed starts its two-day meeting today. on thursday, we have the ecb friday the bank of japan. comesexit withdrawal bill back to the house of commons today. let's get the first word news with sebastian salek. sebastian: donald trump has signed a "very important document "with kim jong-un. the governments would work toward the denuclearization of the peninsula and commit to a lasting pace -- peace. a news conference is scheduled today after the one-to-one meeting. >> the relationship with north
korea and the korean peninsula is going to be a very different situation than it has in the past. to do something, we are going to do something, and we have developed a very special bond. donald trump's top economic advisor has suffered a mild heart attack. the president tweeted that larry kudlow is in hospital and the white house says he's doing well. he has been a confidant to trump and accompanied him to the g7 in quebec. the acrimonious meeting ended with him backing up the frustration with allies like canada. the imf managing director has sent threats -- said threats to the global economy are rising. she said cards get darker each day, in the wake of the g7 summit. turned onere trump allies and host justin trudeau for being dishonest and weak. he promised -- threatened to
stop trading entirely. in the u.k., teresa may has stamps down one rebellion and urged rebels to back down on another as she edged toward an exit deal that could hold her party together through a week perilous voting. the brexit sry gave his backing to an amendment on custom arrangements with the eu. it wasn't clear the government theseen all challenges legislation goes to parliament today and tomorrow. spain's data protection watchdog phonesto access mobile that show gained illegally. barcelona, can activate the gps microphones on phones it uses and download moments off audio and binary code. it aims to crack down on establishments that illegally broadcast games. global news 24 hours a day,
on-air and tictoc on twitter, powered by more than 2700 journalists and analysts in more .han 120 countries this is bloomberg. sebastian, thanks. donald trump and kim jong-un havened an agreement to work toward the complete denuclearization of the korean peninsula following a historic one-on-one meeting and working lunch. trump said he would "absolutely invite him to the white house," calling him a talented man, praising his intelligence and saying the two have a special bond. trump will hold a news conference within the hour. we will bring you that on television and radio. we are joined by the chief economist at ing aviva. let me get your reaction to this. there isn't expected to be much here,ic fallout, results but what do you think in general, of this summit?
i felt like i was watching a royal wedding this morning. carson: it was historic. it is hard to see what the thetance is and compare to g7 meeting, it is a contrast. the opposite. the president is only good in bilateral agreements, but not so much the supranational level. g7 meeting seems like weeks ago, but it was a couple of weeks ago that donald trump reneged on his agreement, or at least on the joint statement they made because trudeau came out and made some disparaging comments, in some way, reiterated that he felt trump's tariffs were insulting and he would retaliate. is that going to have a serious long-term effect on global trade? carsten: it is, but it is a short-term effect.
long it will last is the whole thing. how trustworthy are these international agreements anymore regarding trade? obviously, the risk of further escalation has increased since last weekend. bring it to the ecb, that is big from our perspective this week. not demeaning the fed or boj. what is the best we can hope for when it comes to the qe program discussion? nearly, it will be on the table, but how do they address it? how does draghi communicated in the post meeting news conference? close call, last week's speeche changer was the by the chief economist who was hawkish. with him, going one week ahead of the big meeting, in my view, means they will present something. not only be limited to
short-term words, but i could imagine they announce another extension of qe beyond september, at least until december at a lower level. this would give a sign they are willing to start the exit. it would also be a sign they are moving toward the end, they are moving to stop it by the end of december, but at the same time, keep some flexibility. we don't know about the doubt -- downswing? matt: that is bullish. how can they keep that optionality and give an ending for quantitative easing? carsten: i don't think they give an end date. that would be the worst thing to do, but they could announce a suspect -- extension to december at 10 billion euros per month, which hints they are willing to stop it, but giving an end date right now would be a failure. a mistake. matt: let me take a moment away from the ecb to point out that
you are looking at a press room or donald trump will soon step up to the podium and hold a conference. the point heting, is better inal meetings than in multilateral meetings. he doesn't tend to hold press conferences after events like the g7 or g20 last year in sicily, he didn't hold a press conference -- reporters were angry about that, in hamburg. he was also fairly shy when it came to being alone in front of reporters. clearly, he has got to consider this a great achievement, certainly something no other u.s. president has attempted and it doesn't look like there were any horrible results so far. it can be considered a win for president trumpp.
definitely, his approval rating has been going up and it makes him look very presidential, very successful. you've got to add this to tax reform as one of his great wins, although tax reform is one thing that will have an effect on the economy. let me ask about ben bernanke's comments on that. he said the u.s. will face a wily coyote moment in 2020. the visualization is amazing. gives him more room to run and when it is over, he drops. does the u.s. economy faced such a dramatic moment? so dramatic.e not the risk of a slowdown is clearly there, because the tax reform will peter out and in 2019, the u.s. side is very long. we have rate hikes coming by the fed. matt: can the fed keep hik into that? carsten: maybe into that, but
not as long. the fed will realize they are slowing down the economy already. this wily coyote moment might not be that strong, but the downswing toward the end of 2019 is clearly possible. matt: i thought it was interesting we saw bridgwater come out and say they are worried about the fed hikes and the rate path. everyone is fairly complacent about the rate hikes, should they be? because the fed will realize at some point, the hikes will bite. they will slow down the economy. any external event, you still have a dollar that is strong now, but petering out after the tax reforms would have a repercussion on fed policy and may be markets are too complacent about too many rate hikes coming from the fed next year. matt: thank you so much for coming in today on a historic day, joining me. ing-diba.economist at
mark: we will bring you stock movers today, including casino. we have live pictures of the room where the briefing will begin momentarily. shares of casino among the biggest gainer on the stoxx 600 today. there is the room where it will happen. president trump will address the world after that historic summit between himself and the north korean leader. we will have it live on bloomberg television. this is bloomberg. ♪
matt: welcome back to "bloomberg markets: the european open." we are 45 minutes into the trading day and looking at gains across the board. in europe, all eyes have to be we are awaiting president trump to step up to the podium and talk more about his historic meeting with north korean supreme leader in john kuhn -- kim jong-un. hours together. donald trump said kim was a and had aotiator great love for his country. it will be interesting to see what he tells us about the denuclearization, the path
toward which we are all focused on. let's get the mid-cap movers in the markets with nejra cehic in london. casino, theing with french supermarket cha divesting $1.8 billion of assets such as stores in a bid to cut debt. analysts have been applauding the move, and it looks like investors have, because it is one of the best performers on the stoxx 600, up 4%. on the downside, the swiss asset manager gam, a new office in grab aand looking to slice of the fourth largest pension saving -- cool. boom lower despite first sales -- first-qua sales being a beat. -- investors ae
little underwhelmed even though we came in as a beat on revenue. down 2.6%. mark: let's get back to singapore. kevin cirilli is there. awaiting the start of this press conferencgoing to be. trumps the message donald is going to want to portray, and what probing questions is going to get from journalists? we are just about 20 minutes underway from wind president trump is expected to adjust -- address the press in singapore and he is going to have to say specifically what the united of the docentt that he signed with north korean ong-un, particularly the u.s. will seek to verify north korean leader kim jong-un's commitment to denuclearize. this was a commitment yet
previously made several months ago and how this is different is yet -- something likely president trump will have to explain. tois also going to have articulate and now define where the u.s.-north korea relationship goes from here. earlier, within the past several hours before h public remarks, the president has said he would go as far as inviting kim jong-un to the white house. this is the first time a sitting president has met with the head of state of north korea and it comes at a time when china is also a factor in thongoing negotiations. leader arriving on the chinese plane, much of the dwindling economy, more than 90% of imports and exports andctly tied to china, china even going so far as asking the united nations security council to look at the diplomatic sanctions on north korea.
president trump has not suggested lifting or easing back any sanctions against north korea. he has got 300 more sanctions waiting in the pipeline, he says. that said, he will have to articulate what, in terms of economy, the step the north koreans are hoping to attract, he would be willing to go. come here, secretary mike pompeo was the point person within the administration, bringing over his team to help negotiate these talks. the secretary of state will travel to seoul, south korea as well as japan and will have to meet with u.s. allies and explain going forward what this specifically means. cirilli, thanks very much. our washington reporter. in singapore, going to watch that press conference and hopefully lob questions at the commander-in-chief, as well.
to see -- interesting obviously, the president likes to talk in broad terms. interesting to see if anyone can get more details out of him. listen to what he had to say earlier after signiis his meeting,t relationship with kim jong-un. i think our own relationship with north korea and the korean peninsula is going to be a much different situation than it has in the past. weboth want to do something, both are going to do something, and we have developed a very special bond. let's get now to bloomberg's chief content officer marty schenker and the london studio with mark. to get details out of president trump, but what willhe most important details before him? -- be for him?
be onll have to message, but you will not granular details on what the document means. that is not what he does and not the way he operates. ist he will cast himself as , it ismplished president a great triumph for him, and that will be the top line message. but you will not get specifics out of this president. you will get a lot of self-congratulatory comments from him and that he is the one president out of the many that preceded him to accomplish this and in fact, he should get credit for that. mark: what happens next? going to get back on a plane, fly back to the united states, and it is going atmospherics. he has not talked about the witchhunt, bob mueller. it will be interesting to see if he gets any questions about that
because that is definitely not the narrative he wants to talk is goinght now, but he to come back to the bob mueller investigation whether he likes it or not. mark: marty, great to see you, marty schenker. there awaiting the start of press conference. stay with us on bloomberg television. just hearing from the former hemp national homeland -- has been posting comments on social media. he says the success of the summit is already staggering and today's agreement is a huge step toward peace. matt: although, it was interesting to hear the auto warm beer weston asked -- war mbier comment. this is bloomberg. ♪
>> history in the making. president trump and kim jong-un shake hands. kim pledges to work toward complete denuclearization. stocks struggle for direction and the yen weakens as investors digest the reaction from the summit. and a darker clouds from the imf -- warning risks to the global economy in the wake of the acrimonious g7 summit. the morning and welcome to
"bloomberg: surveillance" on this historic day. i am francine lacqua in london. .et's check in on your markets we expect the news conference to be delivered by president donald trump, who is in singapore, shortly. we are keeping a close eye on that. we are starting a couple minutes earlier than usual. this is what i am looking at across the board. the meeting in singapore seems to have been met by a collective shrug of the global markets. they seem to be more fixated on the host of macro events and data the next couple of days. we have three central banks meeting. stocks climbing, treasuries, and as trumpns slumping and kim signed the document pledging peace on the peninsula. i am awaiting details which we will get in the news conflicts -- conference.
let's get the first word news with taylor riggs. taylor: donald trump has signed "a very important document" with north korea's kim jong-un. the letter said kim's government would work toward the complete denuclearization of the korean peninsula and commit to a lasting peace. after the one-on-one meeting, donald trump is scheduled to hold a press conference imminently. i think our -- whole relationship with the korean peninsula is going to be a much different situation than it has in the past. we both want to do something, we are going to do something, and we have developed a very special bond. taylor: donald trump's top economic advisor has suffered a mild heart attack. the u.s. president tweeted that larry kudlow is in hospital and the white house says he's doing well. kudlow has been a long time confidant to trump and accompanied him to the g7 in quebec. the acrimonious meeting ended
with kudlow backing up the president's irritation witsome of america's traditional allies, most notably canada. the imf managing director christina lagarde said global threats to the economy are rising. she said clouds get darker each day, particularly in the wake of the acrimonious g7 summit. that is where trump turned on allies and accused host justin trudeau for being dishonest and weak. stopso threatened to trading with the other six nations entirely. global news 24 hours a day, on-air and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am taylor riggs. this is bloomberg. francine: history in the making. the u.s. president and north korea's kim jong-un have signed an agreement with kim pledging to work toward complete denuclearization. trump touted his good
relationship. for more, we are joined in singapore. chief asiale, our correspondent and we will get to kevin cirilli later on. the two leaders, signing this outline peace deal. do we know what is in it? >> we don't. headlines coming through say north korea has agreed on denuclearization -- complete denuclearization, but what that means or entails, we don't know. we don't have a timeline, hence we are waiting for the press conference. i guess there has been a huge gap in the definition of is noearization and there indication whatsoever if the two have agreed and what it means. sayse one side, the u.s. speedy and complete denuclearization, but on the
other side, for north korea, it wants a step-by-step process. thatow from the document the u.s. has agreed to give north korea some form of guarantee. although there is an important document that has been signed, it is short on details. >> i want to ask you whether this is a success or not. cirilli is inside the news conference. we are expected to appear from the president shortly. what will be the main message from president trump? kevin: he will have to articulate what exactly the united states got in return for this agreement. north korea has already agreed to do is, but how they planned to do it -