tv Street Signs CNBC June 11, 2018 4:00am-5:00am EDT
welcome to "street signs." we are bringing you special coverage of the singapore summit i'm joanna versace. >> i'm willem marx these are your headlines >> reporter: it's going to work out nicely, the optimistic words from president trump ahead of his landmark meeting with kim jong-un as secretary of state mike pompeo says the president is well prepared. officials from the white house and pyongyang meet to try to pave the way for a positive outcome as differences remain
over the denuclearization plan. president trump leaves the g7 in disarray after torpedoing the leaders' meeting in quebec as he slams justin trudeau for talking tough. >> there's a special place in hell for any foreign leader that engages in bad faith diplomacy with president donald j. trump and then tries to stab him in the back on the way out the door and italy's banking index trades sharply higher as newly appointed finance minister soothes fears of a euro exit saying rome will focus on slashing debt. welcome to our special programming of the summit between u.s. president donald trump and north korean leader kim jong-un. cnbc's bringing you live
coverage until wednesday with our reporters in the south korean and chinese capitals, seoul and beijing. mike pompeo says president trump is, quote, well prepared for tomorrow's summit with kim jong-un. in a statement pompeo added that washington's position on north korean denuclearization remains clear and unchanged. let's speak to our colleague at the national gallery in singapore. nancy, what is the u.s. hoping to achieve from these talks? >> reporter: well, willem, i think the united states would like to leave singapore with a commitment from north korea that they are, in fact, serious about denuclearization you just mentioned secretary of state mike pompeo say the u.s. stance is unchanged on denuclearization when he says this he refers to complete verifiable, irreversible denuclearization. it's a good thing that secretary
of state pompeo said the president is well prepared here. we did hear from president trump in his own right leaving the g7 meeting saying that he's feeling optimistic about the meetings. in fact, he thinks he'll be able to tell just within a minute whether they're going well and whether these talks will be a success. once again, president trump as he met with singapore prime minister lee here, he looks forward to these and he expects they'll work out very well to your point, denuclearization being the big issue, making sure everyone agrees on their issue and there's been this talk of working towards peace. in fact, kcna, the state media of north korea, listed that in their first priority as a list of topics that will be discussed with kim jong-un that's interesting for many, many years they've been working towards this. they want to make changes since the 1953 armistice but u.s.
president donald trump is facing plenty of pressure from home, including from lawmakers on capitol hill not to give too much away when it comes to giving away things here. and seeing serious changes made on the human rights front as well a lot of optimism in the air, the security experts we've been speaking to, the political analysts aren't entirely convinced that we are going to get a detailed outline on what that denuclearization commitment looks like most are expecting to be looking towards normalization of relationships and peace down the world. that is something that will be welcomed around this region. remember, there are plenty of skeptics throughout the region guys. >> nancy, thank you. expectations are very high president trump appears to be very optimistic. during a meeting with prime minister lee tmp said he thought it was mgood
martin sungh is at the international media center why is singapore going all out to make this a success including footing part of the bill >> reporter: reputation is at stake. singapore is 2340e7b as a small island state, neutral politically. it's one of the few places in the world that has diplomatic relations with the u.s. and north korea and is known as the switzerland of asia in the sense that it's safe, efficient infrastructure it simply works. the organization and the planning are also top notch. both sides reached out, asked singapore to do this, to play host singapore agreed now it has to make more than a fist of it make sure both sides are happy and that this summit ends up being a success. i want to refer back to what you
were talking to nancy about a couple of seconds ago. that is president trump talking very positive ahead of the summit tomorrow morning, 90 a.m. saying essentially thumbs up, all systems go when asked in quebec just shortly before leaving that -- leaving the g7 summit in tatters for the summit here to how he would know if there was really a deal on the table, he said, look, i would know within the first minute it's just a sense of feel i have, et cetera. that might be a little bit disingenuous of the president, although we don't doubt his negotiating skill, of course, but the reality is if i can lift the veil a little bit and talk about the diplomacy that goes into summits like these. it's not as though the two leaders of any two countries get together and finally decide, presto, let's do a deal which happens to be 476 pages long no, there are people called
sherpas who put in an enormous amount of time and effort to work on the details. that's apparently what's been going on here for the last month. the u.s. as well as north korean officials including this very among between sung kim who is the special representative for the u.s. on north korean policy as well as north korea's vice foreign minister, they sat down for two hours behind closed doors and south korean media has been reporting that what they hammered out or cobbled together is basically a plan, although we understand there may have been compromises on the key issue of denuclearization so there are a lot more people behind the summit than just the two main characters, the principles such as trump and kim jong-un. having said that, between now and then we're less than 19 hours away given ohow volatile this situation is and how
unpredictable both of these leaders are or can be, one never knows. >> that's right, martin. let's broaden out this discussion and bring in an expert joining us is jim hauer. you were instrumental in setting up the u.k. embassy so you certainly know a lot about the region and north korea can i just ask you, are you optimistic that this summit is going to yield any tangible result >> i would like to think it would be successful because if it was successful, then perhaps the great tension which surrounded the korean peninsula since the division in 1945 really, particularly thereafter the korean war, that might come to an end and that might make all the neighboring countries more easy.
despite what they're talking and saying about the great preparations, it hasn't compared with what normally will happen normally by this stage i think there's a high -- >> choreographed >> yes it's arranged. you can't have two very, very high level people meeting and falling out. that's what it comes down to as one of my investors said. behind the screens it's all string and paste what matters is in front. >> you talk about people falling out. mr. trump's past record, what he did in canada this past weekend, do you think that would be a concern to north korean officials standing behind and beside mr. kim as he starts the negotiations. >> i'm sure they're well aware of mr. trump's record right up
to the last minute and they will be concerned, i think, that he tore up the iran nuclear treaty. that's directly related to what they're talking about. the great problem for the north koreans and the united states is a lack of trust on both sides. this goes back a long, long way. and unless you get over that initial obstacle of the idea of trust, you have the chance of things going wrong. >> when mike pompeo talks abou denuclearization, do you think the north koreans have the same understanding of what that means? >> i doubt it because i don't see that the north koreans are really going to give up what they have developed over 10, 20 years, really going back into the 1960s when they first started this process >> i want to ask you what the
president pulling out of the iran deal means for this summit? president trump wants to see denuclearization and what the north koreans are looking for sanctions relief isn't that what the iran deal was from the beginning so the fact that the u.s. withdrew out of it doesn't sell the a good precedent for relations in the future? >> i think the north koreans are not just seeking sanctions relieve, they ar reli relief they're seeking security the north korean position, they want to be unattackable. the north koreans see the united states as a threat to them and the americans have a desire to deliver.
obviously if mr. trump can tear up one agreement because he says it's not perfect, he can tear up another one. the north koreans will say that's what happened with the 1944 agreement on the containment of north korea's nuclear program. others will say, oh, they cheated, but the agreed framework we agreed with cheating, cheating it was by introducing behind the scenes not in full view of the public, which is how it was conducted. >> is it in your mind a fair assessment to say that the be bellacose rhetoric, it may be part of the reason they're having these meetings this week? >> north korean rhetoric and u.s. rhetoric are about the
same certainly last year. i think the north koreans may have got worried towards the end of the year that it really was getting out of hand. i'm a strong believer that the armistice agreement signed in 1953 had immense problems and yet it's held, held for all of that time because all of those involved have known just how far you can push things and known when to draw back. now i think last year the north koreans began to think maybe mr. trump isn't going to do it. >> president xi has met with kim a couple of times. my question to you is how big of a role do you think they are playing behind the scenes here >> it's very difficult to know
rtant to north koreaery biggest neighbor huge long border with china. it's the biggest trader. it provides assistann one way or another so very important, but historically the koreans have resented china's dominance in the region and dominance period. they're telling china, back off, you're doing things for chie nee chinese purposes but i think whhe possibility came up with the summit with the dpr and the north koreans, then the north koreans needed some advice or were willing to seek out chinese views because the chinese had a more normal relationship, even if it was a tense one, with the united states it was the obvious place to turn for advice and assistance.
i suspect that's what they're doing. no one can ignore china because of their huge presence so it will be brought in, i suspect, somehow or other. >> there will be a feast, tim. i have to leave it there. >> thank you. >> thank you for joining us on "street signs. and elsewhere, an event in korea has sent the price of bitcoin tumbling but it has nothing to do with trump or kim. coin rail tweeted over the weekend that it was hacked coin rail did not mention bitcoin in its statement though the price for the digital currency has still fallen to its lowest in nearly two months. for more head to our website that is cnbc.com. if you have any views on this summit, feel free to get in touch on twitter
welcome back to "street signs" for our singapore summit special. that's a lot of ss be on, let's take a quick look at how markets are doing. of course, it was a weekend of two halves, actually even what we saw initially as asian stocks reacted quite badly to the reactions to the g7 summit and of course further concerns there that we may see further tariffs imposed in the world and a reflourishing of the trade war since then sentiment has moved on agents shook off some of that. we can see the europeans' confidence is trading up in the green. and there's optimism going into
it let's take a quick look at european markets individually and the picture there is one of green across the board ftse 100, you have a skew of data and the manufacturing sites balancing. xetra dax. and then ftse mib, that's up almost 2.5% after some of the comments given over the weekend suggests somewhat of a softer tone with respect to the eu and their fiscal plans. quick look at sectors, you can see leadership this morning is driven by the banks up 1.5%. that's giving the sector a little bit of love up 1% to the down side we have autos clearly impacted by some of the discussion that has come out of this g7 summit the fear that further tariffs are going to be applied on the auto sector as far as europe is concerned.
>> the german chip maker dialogue is in talks with s synapti synaptics. they both declined to comment on the record. germany's road vehicle reg fwu lator has found problems with the daimler device. it's used to control emissions and it was installed in almost a million vehicles in a response to a comment from cnbc, daimler declined to comment. they did say it was cooperating fully and openly and it's set to have a meeting on monday elsewhere, swiss voters have resoundingly resulted a plan to reform the country's monetary system provisional results show 76% voted against the sovereign money initiative while all the
rest resulted the proposal the result is seen as a victory for those who defended the system. italy's new finance minister appeared to calm markets over the weekend saying h country has no intention of leaving the euro speaking in his first interview, he said he would focus on cutting debt levels and not pursue growth with more spending major banks have bounced from 2 to 3%. that is helping give some of the broader composites to the european banks in the sector a bounce as well happy to say that the ceo of the
bank is joining us the market seems to be reassured by the financer's commentse weekend. do you think for the time being we can forget about all of the italian worries and move on from this story looks like they get it that ther >> i'm not sur i wobe looking for some consistency in what the two parties were saying prior to the election and as they start to introduce themselves it's been stated they wanted their universal base income, five star. they wanted the flat rate taxes and i actually think their fiscal plans will boost the economy. i suspect you'll see their popularity improve it's rather pro cyclical, dare i say it trumpian fiscal policy. so i think this is actually
going to be quite positive for the economy. >> the question is how quickly can that happen? of course, if you cut taxes down %, you hope that will stimulate the economy. that's been a big part of their platform you like that idea, fine but if that doesn't happen quickly enough, if you look at carlos, his estimates of the estimates, not only the flat tax, some of the other, how do you find $100 billion? >> you print it. they've said it. their plan has been very well -- >> he threw out the plan over the weekend. >> i'll put it another way it's there as part of their cards when we come to discuss things i think the italians have a phenomenally strong position vis-a-vis the e.u. >> do you think it's fair? >> i would twist it slightly
positively yes, it's too big to fail. they're too big for anybody to go against them. i think, you know, i speck that you could see push come to shove the ecb, okay? i think you would find macron, because he's getting no joy from merkel on the reformgram, starts to decide somewhat -- certainly he's losing support on the left in france, gaining it on the right, suggests to me that he will be a little bit more open to this meeting with the italians really and truly, if push comes to shove and they force the situation on the italians, the italians will laugh. and it is an existential question for the eu. >> existential question will be addressed when all of these leaders get together i want to ask you about something else that's going on that will be very important as far as eu is concerned the tariffs and the, well, falling apart of discussions at
the g7 summit this weekend g6 plus one very much embodies by the u we saw that and that manifested itself over the week zblend we do >> what do you think that means for europe and the tariffs question as far as europe and specifically germany are concerned? do you think they should be worried? >> you have a clear reassession. my sense is if you take china in the aggregate, we could end up with a more open, global economy. i found the most interesting comment coming out of the g7 i sort of expected the negative reaction and the outpouring of rage that came, but he did leave by saying, well, zero tariffs, zero subsidies, complete openness i would like to think that the european leaders would grab on to that and counter with some
proposals. it may be a bit too much one of my views is germany is part of the problem and is based on rule-based globalization. the blocks puts it there. >> we have to leave it there coming up on the show, president trump says his meeting with north korean leader kim jong-un will, quote, work out very nicely. we'lbe ll ive from singapore, seoul and beijing with the latest at... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again?
over the denuclearization plan. president trump leaves the g7 in disarray hitrade te slams prime minister justin trudeau for his comments on tariffs. >> there's a special place in hell for any foreign leader that engages in bad faith diplomacy with president donald j. trump and then tries to stab him in the back on the way out the door and italy's banking index trades sharply higher as newly appointed finance leader soothes fears of a potential euro exit saying they will focus on slashing debts welcome to o special programming of the summit between the u.s. president and north korea's leader now until wednesday we'll be bringing you live coverage from the host city as well as the south korean capital
we're joined in singapore. akiko is here. sinceless turn of the year kim has met xi jinping and president moon our colleague sherry is in singapore. what's driven kim jong-un to agree to this summit >> reporter: good morning, will willem i think this is what he wanted all along. perhaps this is happening a little earlier than he had anticipated. perhaps because of the trump factor but perhaps this is what he envisioned or hoped for when he took over power in north korea back in 2012 so why directly negotiate with
the united states in there's certainly that prestige factor, too? also there is this notion that the united states is the only country that is able to give north korea the guarantee of the regime's security. this is very much in line with the ideology of self-reliance that drives a lot of state policies in north korea and perhaps this is a factor that really appeals to his domestic audience as well and that's perhaps the reason why that north korea's state-run media is heavily reporting on his singapore trip this morning as well as the potential summit with the president donald trump that is set to happen tomorrow, by the way, on sentosa island that you can see in the back drop behind me just speaking of north koreans reporting on its leader's -- on their leader's trip, kcna, for example, is saying that north korea is hoping to achieve,
quote, permanent and durable peacekeeping mission on the korean peninsula because it's a changed era. yes, they did talk about denuke clee or ryization, but the peacekeeping mechanism is what they're aiming for there is a school of thought that kim jong-un was planning to do all of this and hoping to achieve this kind of historic summit, of course on the condition that he has his nuclear program as well as icbm capabilities under his sleeves, which he did achieve or which he claims to have achieved late last year. guys >> thanks for bringing us the latest from there. let's talk about markets south korea's kospi has gone higher officials from the u.s. and north korea have held discussions as the two look to narrow the difference before the meeting. akiko is in seoul with more.
akiko, since president moon got elected last year, there's been good progress in relations and dialogue with the north koreans and south korea. what do you think they're looking for out of the summit this week? >> reporter: well, we did get a sense of that where president moon jspoke about the big personalities sitting across the table from each other. the south korean leader calling this a once in a century meeting with marking a historic milestone from war to peace. now in terms of what exactly he would like to see out of these meetings, he says he expects to see a grand agreement that will be reached to reduce the hostility on the korean peninsula and ultimately lead to denucleariza there are questions about how denuclearization will be defined by each side the south korean president also praising both the north korean leader kim jong-un as well as president trump for what he says was strong determination and resolving north korea's nuclear
issue. take a listen. >> translator: it is hopeful that they make a decision of generously considering each other's desires so that a new era comes true i expect and hope that tomorrow's summit will definitely be successful >> reporter: and while the president really struck an optimistic tone going into this meeting, he also tried to set realistic expectations saying that despite the historic nature of this meeting, it will take one, two, or more years, these are his words, to reach some kind of full solution on the korean peninsula when you think about the last year as you pointed out, it has been a remarkable turn around for the south korean president who came into power during a snap election, initially seen as very naive to engage north korea to soothe the tensions when north korea was going for provocation after provocation. earlier this year the engagement
began when he extended a hand to north korea calling on the north korean delegation to take part in the pyeongchang winter olympics that was followed by the interkorean summit that we saw play out at the interkorea border back in march the president has gotten a huge boost on the back of this getting public approval now at 70% now. but as we head into this meeting, the president now in the uncomfortable position having to see from the sidelines exactly how this all playsout. we should mention secretary of state mike pompeo is expected to stop over here in seoul following the historic summit that we see tomorrow to brief both president moon jae-in and the japanese that's a whole different story given that they haven't been able to have talksh the north koreans and they've been side lined a lot of moving pieces as we count down to the big summit. >> thanks a lot. there are a lot of people waiting to see how the reception is later this week beijing will play a major
role in ensuring the u.s. and north korea is successful. china is the only long-standing ally and the biggest trade partner. president xi has hosted president trump twice this year. our colleagues in beijing, eunice, how active have the chinese been in making this week possible >> reporter: well, willem, i think there are two lines of thinking on this one is that president trump through unconventional methods was able to pressure the chinese to get north korea to the negotiating table. a story line two is that story line one is wrong and that the north korean economy isn't in as much trouble as a lot of people think, that the chinese haven't really put that much pressure on north korea and that kim jong-un has his own motivations as to why he is going to the summit and could potentially drive a hard bargain because president trump, he's not as desperate as president trump might believe. now either way, china has a lot
of influence over this process en though beijing isn't going to be physically in the room the most obvious sign of that is the arrival of kim jong-un in singapore on an air china plane that was on loan from beijing. beijing has been the economic life line for north korea. it's been a diplomatic ally for decades. the chinese government, especially xi jinping, has many, many reasons as to why they would want to see this summit go well the official line has been repeatedly from beijing that they want dialogue, they want denuclearization just in the past hour the foreign ministry issued a statement saying that they hope to see a positive result come out of this meeting and from the chinese perspective they would want to see and it would be within their interest to see north korea removed from a long list of points of contentions with the united states because
it is a big regional risk, however, at the same time probably there is some level of discomfort in beijing among some of the officials because of this idea that the u.s., unlike in past years when they've been continuously engaging north korea in a different framework called the six party talks which would involve chinese -- the chinese in -- as more of a broker, that this time the talks would be directly between the united states and north korea with china a bit on the sidelines still influencing the process but not so directly. >> eunice, thank you for bringing us the latest from the meeting. it's going to be pivotal for china as well as the korean peninsula and the u.s. markets are bouncing on that optimism i want to bring you headlines that are crossing for hsbc and of course as a bank there's been a big turnover in the past 12
months with the new chairman coming in, mark tucker, and of course the new chief executive as well. this morning they have announced their plans for the future they are planning to invest 15 to $17 billion in a strategy to turn it towards more of a growth strategy in the future they achieved -- aim to achieve these financial targets in a period of 2018 to 2020 and to deliver low to mid single digit growth they've also talked about dividends as well. hsbc are confirming that they aim to sustain dividends at currt levels and undertake as appropriate share buy backs to neutralize any share issuance as a result of scrap dividends. they've said that they've undergone a period of restructuring and it is the time for hsbc to get into growth loans and that they will continue to accelerate that is the latest from hsbc you can see the shares are
slightly up to the point of .2%. we discussed banking stocks recently but of course the main topic of today is the trump summit in singapore. if you have anything to say, tweet us @streetsignscnbc. coming up on the show, u.s. president donald trump lashes out at key allies after the g7 meeting. break these birds once affected by oil are heading back home. thanks to dawn, rescue workers only trust dawn, because it's tough on grease yet gentle. i am home, i am home, i am home
welcome back to "street signs. sterling is trading lower after u.k. factory output unexpectedly fell at the fastest pace in five years. they revealed the biggest trade deficit for goods since december 2016 willem, this came as a bit of a surprise most people anticipated a bit of a rebound given how weak march was on back of the weather those expectations of the numbers would be strong. that hasn't actually materialized you can see that's trading weaker to the tune of 1/3 of the percentage points. let's take a look at how other
foreign exchange markets are trading. a bit of a mixed bag you can see cable is lagging but ere. euro dollars are weaker there's some optimism going into this meeting on thursday vis-a-vis some hawkishness coming out of them let's see how that materializes. that will be a key meeting on whether or not they have decided to take the first steps on unwinding quantitative easing. they have been in focus with the talks of the summit overnight. switching to european markets. we were talking about how asian markets have rebounded in the overnight session. we're seeing that in europe as well all of the major indices in europe are trading the italian index was at one point up 500 points. it's come down a little bit. it's still up almost 2% again as
some of the risk premium gets taken out of those markets and let's also take a look at fixed income as far as the u.s. is concerned, it is a big supply week. three year and ten year issuance as well that will be hitting it should put some pressure. let's not forget we bought fmoc. the fed is expected to hike. all eyes will be on the dots and guidance there we were talking about the disappointing data in the u.k. you can see it's hanng in around 140 again, ten-year italy is back in focus. we have said equities have bounced. we're seeing similar amounts on fixed income it's rebounded. >> as you mentioned, central banks are in focus later this week as both the fed and the ecb meet just one day apart. the fed is expected to tighten policy for the second consecutive month and the ecb
could have a regular time line last week they said the central bank will start discussing an end to its bond purchases. he added that inflation is rising back towards its target meanwhile, president trump lashed out at g7 leaders and in particular canada's justin trudeau on saturday as he pulled his support for the group's communique in a tweet shortly after his departure from the summit trump accused canada of imposing massive tariffs on u.s. farmers. the u.s. president also warned that his team are looking at tariffs on automobiles and let's take a look at auto -- the auto sector today. you can see mixed bag but mostly trading in the red this morning. daimler's a bit of an idiosyncratic story there. they had some issues to deal with emissions and over the weekend. that is the main underperforming stock. you can see that broadly speaking the sector is under
pressure today on back of some of those remarks from g7 let's take a look at the deal makers because another sector being impacted by these tariffs, today we are seek a bit of a rebound, are leading the charge of .7% the german nis have been in focus. >> one thing we pointed out, we talked about investigations by the u.s. into autos. they made similar noises about steel. we're seeing in these tariffs. if you're running a major european firms, if they're looking into this, if the commerce department and ade rep is examining this, then they have reason to be concerned. >> we'll have to see how that plays out in markets nbc's kristen welker has more on the tumultuous week in quebec at the g7. >> reporter: it's the picture that says it all president trump alone and increasingly alienating america's allies at the g7 summit the president battled them over
tariffs and trade and stunned the leaders by agreeing to sign a joint agreement called a communique and then abruptly pulling his support after the prime minister said this. >> canadians are polite and reasonable but we also will not be pushed around. >> the president accused justin trudeau of false statements and called him very dishonest and weak today top trump aides lashed out. >> he really stabbed us in the back. >> there's a special place in hell for any foreign leader that engages in bad faith diplomacy. >> reporter: allies stunned. french president emmanuel macron accusing president trump of incoherence and inconsistency. the canadians, defiant >> we are clear that we are insulted as a country. >> reporter: at home, lawmakers seeking distance, including senator john mccain, writing to the other leaders, americans stand with you eve our president doesn't. a growing divide with america's
allies as president trump tries to make a deal with one of its oldest foes. kristen welker, nbc news, washington well, european leaders have come out in force in response to all of this criticizing u.s. president trump for withdrawing support of the g7 communique germany's president slammed the president's approach saying, quote, you can destroy trust in 280 twitter characters separately the spd in germany accused trump of creating chaos. chancellor merkel took, as you would expect, a more measured approach calling the u.s. actions sobering and said they would take measures against u.s. tariffs. apparently they were the ones pushing just a host of statistics that the pred was tryi - president was saying this was a lose lose situation.
>> we've had so many people from the show in the last couple of weeks and everyone agrees from an economic perspective a trade war is not a good thing. there have been various estimates. most people agree that up until this point, willem, the magnitude of the tariffs if you look at it as a percentage of gdp, it's actually quite tiny. a lot was being made of the tariffs that they impose to be honest, they are pretty high it's 250%. canada imposes that on dairy exports to canada. 250% is a higher number but it's $200 million on an absolute number so i think the risk is that this goes from small percentage, small numbers to something even bigger and that is when you get the threat of the auto tariffs that is what you were just referring to now in germany people are keeping a close eye on this. there the numbers get very big just to give you an idea, when you look at the auto and auto imports, canada could be affected to the tune of $60 billion u.s. dollars worth
eu, 63 billion a lot of that is coming from germany. china, small numbers, only 19 billion. mexico, $107 billion if they go for the auto imports let's also not forget that it isn't just the auto imports per se but it disrupts the whole supply chain as well that is the big unknown question because it isn't just applying a punishment, so to speak, to the countries that are exporting those cars but you could be impacting local businesses who rely on some of those imports to put together the final product that's one aspect to bring into it as well then the second thing as you said is that, you know, the tit-for-tat and the retaliation is something i think nobody wants to get to. our previous guest was saying that perhaps the end game is something that, again, it could have just been like a fly away comment from president trump, why don't we just move towards a euro tax structure for anything.
it will be unlikely to see if anyone bites. >> something his tm wasn't expecting him tosay. this is what we're seeing, the president is saying things that the rest of his support team isn't expecting him to say they're scrambling to make an explanation for what he's saying if you look at domestic constituency, trudeau, he has to protect farmers. that's small fry the question is why would he not potentially throw canadian farmers under the bus? there's real questions for any political leader. >> absolutely. just on the china point, on friday we'll be getting the list of the final tariffs to be applied on chinese exports this friday, so that's going to be a big thing to watch as well because the whole discussion going on, we don't know if there's progress behind and perhaps they've come to some middle agreement then of course china will be looking very closely
as you mentioned, auto tariffs don't affect china the same thing for steel and aluminum affecting the main eu allies. let's recap the top story. president trump appeared optimistic about tomorrow's summit during a meeting with prime minister lee president trump said he thought, quote, it was going to work out nicely >> this was a choice that we made and you're my friend. we've got a very interesting meeting and i think things could work out very nicely >> meanwhile, president trump's secretary of state mike pompeo says the president is, quote, well prepared for tomorrow's summit with kim jong-un. in a statement pompeo added that washington's position on north korean denuclearization remained clear and unchanged. and stay tuned for more coverage on "worldwide exchange" as pompeo prepares to hold a press briefing that is coming up in just a few
moments' time. but before we head out we discuss the european markets bouncing, let's talk about the u.s. markets and see what the picture looks like there we have dow opening up 40 points higher s&p flattish nothing major to be honest and a lot may change as we get information coming out of singapore. but it is a very big week for u.s. markets we did talk about the fmoc, that's on wednesday. they're expected to hike then we have data with the u.s.cpi to watch out for this week as well as i.p., loads of things to watch out for. it's not just about the trump/kim summit, willem. >> that's it for today i'm willem marx. >> i'm joanna versace. orwiatinor wchg. "wldde exchange" is coming up next.
i'm contessa brewer. it's 5:00 a.m. in the united states and 5:00 p.m. in singapore. we're hours live with president trump going face to face with north korea's kim jong-un. it's an historic first-time meeting between the leaders of these two nations and expecting to hear from the secretary of state at any moment. we'll head there straight live on monday, june 11th, 2018 "worldwide exchange" begins right now. an