Skip to main content

tv   Street Signs  CNBC  June 13, 2018 4:00am-5:00am EDT

4:00 am
welcome to "street signs." i'm joumanna bercetche these are your headlines sterling pushes higher after theresa may surviv a key brexit vote, but concessions are made to get rebels to offer support. we'll speato theresa may right here on cnbc data breach at dixons. they are the victim of cybercrime after discovering unauthorized access to a payment card held by the company. the world's largest clothing
4:01 am
retailer inditex defies currency returns, but shares reverse gains in early trade hitting the bottom of the ibex. and a victy for m&a. at&t and time warner win the right to complete their $85 billion deal despite opposition from the trump administration. oil prices are unlikely to continue rising as sharply as they have, that's according to the latest iea oil market report as ever, i'm happy to say neil atkinson from the iea joins us on the line. sir, i see you'vreleased your forecast for 2019 now, on the supply and demand side let's start with supply. i see that on that note for 2018 you revised upwards the growth to the tune of about 2 million
4:02 am
barrels a day from where it was before you see 1.7 million barrels a day for 2019 where is that supply growth coming from? >> most of that ly growt the non-opec countries in 2018, which is nearly a record level, by the way, about 75% of it both in 2018 and in 2019 comes from the united states, which is growg sharply. there's also growth in canada and brazil and in one or two other places united states is the most important driving force in the non-opec supply growth >> the u.s. is the most important driving force in terms of the growth, but we're coming up to an important opec meeting next week. there's some expectation that there is more supply on the horizon given production cuts out of venezuela and iran. are you also working on that asum thsumption as well >> in our report we put forth a
4:03 am
scenario which takes into account the fact that venezuelan production is almost certain to fall sharply through the rest of 2018 if the iranian sanctions do take effect the end of this year and to bite to the extent they did in the previous round we're looking at a potential fall in supply at end of this year going into 2019 of between 1 million and 1.5 million barrels a day. if that were to happen, that raises the issue about alternative supplies from other countries. that's perhaps one of the issues which will be discussed at the opec meeting at the end of next week >> what i noticed in your note this time is that there's a line in there saying that even if the supply gap from iran and venezuela is plugged, the market will still be finely balanced next year and vulnerable to prices rising higher what do you think that means for
4:04 am
the supply and demand outlook, assuming the opec deal does not lead to anchange on the production side? do you think that will necessarily mean a much bigger uptick in prices the signals from many of the leading producers and other actors in the market over the next few weeks is that there will be production increase. it have to wait and see. of course don't forget iran is exporting considerable volumes and will continue to do so until the end of this year it's not if the iranian exports will end dramatically next week. it's a question of the market adjusting over time to the falls in supply from iran and venezuela, which will be gradual. we'll wait and see what opec decides. don't forget also as we move into 2019 and go through tow the end of that year, there's an awful lot that can change in other parts of the balance deman growth could be higher or
4:05 am
lower than we think and supplies from other countries could be a little higher than we currently think. we'll have to wait and see >> last time we spoke we talked about the fact that higher oil prices are having an impact on oil i think you slightly revised downwards your estimate for demand in the future you released your 2019 demand and it shows similar demand for 2018 as well so not much of a change there. do you think oil prices have stabilized >> that's very hard to tell. for one reason we have this meeting next week which will deliver some kind of clear signal as far as demand is concerned, we did revise downward slightly our outlook for the current we think that in 2019 if theaina market were to remain finely balanced, that prices are
4:06 am
unlikely to move sharply upwards. we're not forecasting down because we don't know what will happen around venezuela. demand growth is likely to be steady next year, though there are rifts because at thet we're seeing an escalation in trade disputes between various countries. some c are rea higher prices by considering reintroducing subsidies or price cuts there's a lot of noise among the demand numbers the demand picture will be equally as interesting as supply as we move through the rest of this year and into 2019. >> absolutely. neil, thank you very much for that that was neil atkinson from the iea. let's check in on markets. we had a muted reaction after the all-important singapore summit as far as markets are in asia we saw a mixed picture a bounce in japanese equities,
4:07 am
but chinese equities were weaker to the tune of 1%. in europe, you can see it's about 50/50 green/red. stoxx 600 is trading a bit firmer, but quite lackluster let's get into individua indices. all eyes are on the ftse 100 after the all-important votes that are happening in the house of commons both yesterday and today. more votes are going on today. it looks like the prime minister managed to keep the rebels at bay. we're seeing ftse 100 slightly underperforming to the tune of 0.1% xetra dax trading in the red cac 40 is slightly stronger. big rebound in italian assets. equity indices are up 0.4% we're seeing that in the banking sector as well as fixed income let's turn our attention to sectors to s where the leadership is coming from. cyclical sectors and the charge this morning technology up 1.3%
4:08 am
travel and leisure up. lufthansa up about 1.5% in trading. to the down side, telecoms some of that is repercussis on the back of the huge at&t/time warner deal being approved in the u.s. some of the names like sky are trading down about 1.5%. telecom italia is also tradingwn retail is struggling a bit today is a big day in the u.s., and the u.s. dollar is firmer ahead of the federal reserve policy decision, which could give clues on the pace of future rate hikes at the central bank the fed is widely expected to announce a quarter point raise when it wraps up its meeting later today, making it the second hike so far this year investors will also be looking for signals on how many more we can expect in 2018 the central bank will release
4:09 am
its dot plot right now the chart shows three his this year, but even a slight move could signal an additional one in december fed officials speaking with cnbc recently all threw their support behind gradual rate increases. >> we should be raising ratewe . we should dot gradually. i'm not prepared to say, yeah, i want to go above neutral once we get there, we'll have to make that judgment at that time whether it makes sense to be restrictive. >> when i started, i was at 2% then there was tax overall, the fiscal package, and then i moved to three that was a lot of stimulus i'm comfortable with three >>yook at the path within the summer of economic projecti projections, which the fomc puts out four times a year, if you look at the path in 2020 the median path gets a bit above 3%. then we bring it back down
4:10 am
that's a typical path we've seen in past tightening cycles. it's not totally unusual but it's something we need to be cognizant of, the fact that interest rate paths may go beyond 3% and come back down 2020 is a long time away whatever path we follow will be consistent with changes in the outlook. it's hard to predict that far in the future >> paul tutor jones weighed in on the debate and said the fed is well behind the curve on interest rates >> i think rates could be 150 basis points higher than now that's where they should be. we have 3% unemployment and negative real rates and a 5% on the way a 7% budget deficit the last time that we had unemployment rate where it is now was 2000 we were running a budget surplus at that ti of 2.5%
4:11 am
now we have fiscal policy that came from another galaxy, we have monetary laxity, and that brew got the stock market so jacked up. >> tomorrow there is another big central bank meeting where the ecb are widely expected to wind downir stimulus, a view reinforced by policymakers including peter pratt. analysts are split on whether a decision will come tomorrow or in july. head to cnbc.com for analysis of pratt's pivot and what has changed for the ecb. given it's such a big week for central banks, lots coming
4:12 am
up let's look at how thd picture is looking we have the fed today, two-year interest rates are trading at 2.54 the highest level the two-year has been in a couple of weeks now. of course the rate hike today is almost fully baked in. all the attention will be on the guidance for the future and what happens to those dots. we have germany, two-year at 63 basis points, negative side. there the focus will be on what guidance comes out of the ub and whether or not they are going to end this experiment with quve easing. and gilts are in focus bank of england meeting next week and two-year italy, those yields have done a huge round trip in the last couple of weeks or so but are trading below 1% at 93 basis points it's been a big rally for them some of that was aided by the
4:13 am
fact that it was said euro is irreversible inditex shares are in the red after ing higher one analyst notes that first quarter sales at the spanish firm fell victim to poor european trading conditions in early 2018 and a drop in store count. but the zara owner reported a 1% rise it quarter net profit despite negative currency effects. it cited growing same-store sales, and the spanish firm, which owns zara posted a rise in gross margins. d dixons carphone shares are sinking after the company opened an investigation into a data breach. the retailer says the probe is ongoing and that there has been attempts to compromise millions of cards dixons added there is no evidence of fraud as a result of the incident shares are trading down more than 3%.
4:14 am
glencore opened higher after katanga mining reached a settlement with a congo minor. the dispute had threatened to dissolve the joint venture shares in katanga listed in the toronto stock exchange also jumped on the news. if you want to get involved in the conversation, follow us on twitter, @streetsignscnbc, and if you want to follow me, i'm at cnbcjou. > coming up, al ayom the sinre nuclear suitst with us as you grow olde, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory.
4:15 am
- 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? - anncr: prevagen. healthier brain. better life.
4:16 am
4:17 am
welcome back to "street gns the leaders of the united states and north korea met for the first time in history with president trump and kim jong-un signing a landmark agreement the heads of state agreed to
4:18 am
work towards the complete denuclearization of the korean peninsula and building a lasting stable peace regime in the region one of the more controversial agreements was the halting of war games, an unexpected development that left allies in south korea and japan stunned. many are asking what comes next. while president trump has lauded the outcome of the summit, some have criticized the lack of finition in the agreement between the two countries, with no framework set out by either side that would oversee denuclearization in his press conference president trump floated the idea of removing troops from south korea. trump outlined the moves that would come first >> i want to get our soldiers out. i want to bring our soldiers back home.
4:19 am
>> i want to get our soldiers out. i want to bring our soldiers back home. we have 32,000 soldiers home but that's not part of the equation right now at some point i hope it will be but not right now. we will be stopping the war games, which will save us a tremendous amount of money unless and until we see future negotiation is not going along like it should but we'll be saving a tremendous amount of money. plus i think it's very provocative. >> north korean state media says president trump agreed to lift sanctions against pyongyang. in other comments car rid ried e news agency, both leaders agreed to visit each other's country in a short period of time let's go to chery kang we heard from key players in the region is there a sense that the u.s.
4:20 am
gave a little too much away here, gave a little too many concessions away without getting enough concrete details back in return >> i think that's certainly the consensus we're gettinom a lot of north korean watchers who are talking about how what was it that washington got from pyongyang. certainly we're seeing a lot of -- a poll being done around here basically giving that victory to north korean leader kim jong-un at this point along with china and perhaps the city state of singapore who provided the venue of this peace building singapore summit i want to pick up on one point, you were talking about earlier which is war games this very much ties in with the latest we're getting this afternoon out of south korea very interesting how south korea's presidential office is saying that perhaps ending these war games, military drills wh
4:21 am
the united states can really be necessary to help this nuclear deal >> and what a change from only a year ago or so >> exactly what they were saying last year, and for many, many years, because these military drills have been conducted for decades now under different names. but now president mo is giving a lot of support to this idea. so it's very interesting so why is this i was actually e-mailing with sean king from park strategies, he was saying that because my first question, initial question to him is south korea being left out in all of this he said, no, moon is exactly behind this idea, behind the whole thing. he says it tracks with moon's nationalist left-leaning ideologies so that's a big takeaway there and as we speak there is a national security meeting happening at the presidentia n oul.
4:22 am
perhaps they're trying to figure out more and do a bit of follow-up on what they need to do to end the war games and what do they need to doh the north koreans because they do have high-level military talks lined up with north korea. >> sounds like south korea now, the blue house behind the cessation of war games between the u.s. and north korea and something else you were lking about, the issue of sanctions. it was a bit of a surprise and shock earlier today when north korea's official news agency came out and said that kim jong-un had said that trump t s basically off. from what i recall from the joint document yesterday and that press conference, that's not what president trump meant he said, look, whatever exists now, still in place until we see material and concrete progress
4:23 am
along this process of denuclearization then the president gave a very interesting interview where he started to spin this whole issue of sanctions >> exactly so he was saying sanctions can come off as long as we're negotiating with the north koreans with good faith. so there is no need for any kind of action anymore. when we're talking about the 2005 agreement, the joint statement with the north koreans within the framework of the notorious six-party nuclear talks that we did talk about for many years now, back then the worry was action for action will dilute sanctions regime, and that would eventually get north koreans to not sort of denucl r denuclearize anymore, now he says you just need good faith you.we'll take off sanctions for >> that the the thiing to watch.
4:24 am
we had reports that cha thinks now the timing would be good for the sanctions to start to be eased on north korea so the question is whether or not china starts knocking on the door of the united nations and starts lobbying for that to happen, if not those sanctioned lifted but eased off there are sanctions in principle, and, et cetera but in terms of executing and enforcing sanctions it comes down to china to make sure that it's happening, and that it's policed. back to you. >> martin, luckily we have a china expert with us on the show thank you for bringing us the latest can i asyou, before we get into china's role, what your interpretation of this summit was. would you deem it a success. >> depends what you count as success. if we consider historically the two parties have never met sin
4:25 am
1945, i would consider that a success. but the ultimate question is what is next how much is north korean really willing to deciding to give up nucleaweaps an pressure trump can give to kim jong-un in this case >> what's interesting is that the topic of sanctions did not come up at all in the signed agreement. it is a bit surprising as martin was saying, that it was referenced in the north korea media before we talk about the sanctions specifically, i want to talk about the reduction of the military exercises, th so-called war game many are viewing that as a concession where would china have fit in? do you think they have had any role in speaking with the u.s. or is it one of those statements that president trump may have made off the cuff and only realized afterwards that perhaps it has huge repercussions for some of the players in the region, in particular china.
4:26 am
>> it's a mixed bag. on one hand china has put strong stress on the north korean regime in the past six months to increasing sanctions and closing the border but on the other hand, i think both beijing and washington are keeping a line openingnd communicating with each other and seeing how much they can get out of the kim regime. on one hand, yes, donald trump may be right on the other, it's how much north korea decided to give up and how little they want to give up in this case. >> of course we've been in this situation before this is not the first time a similar agreement has been signed that spells out steps towards denuclearization without anything concrete. president trump has said this time is different because they have got different players involved you agree with that >> judging by the historical agreements they have made, north korea does not have a good history of making agreement, making promises, and then what i
4:27 am
can say is there's nothing new compared with the y talks we had back in 2005. i think back to the negotiation table that's the key message in here of course china has a great economic intereshe border between china and north korea, and because the northeastern provinces of china, their economy is interined >> do you think the next steps from here then, we have further meetings, the two leaders may meet again, kim jong-un may come to the white house aside from putting towards a concrete plan towards an eventual denuclearization, do you think in return for that china may start pushinr some sanctions relief >> china will certainly push for more sanction relief it's not just in north korea's interest but also in china's interest that's why china is pushing for ward on the sanction relief in
4:28 am
this cas you for joining us. coming up, may survives but only just. find out how the prime minister fended off the brexit rebels after a dramatic vote. that's after the break
4:29 am
4:30 am
4:31 am
welcome to "street signs." i'm joumanna bercetche theresa may survives a key brexit vote, but concessions are made to get rebels to offer support. we'll speak to theresa may right here on cnbc the world's largest clothing retailer inditex defies currency concerns to report solid profit in the first quarter but shares reverse gainin early trade hitting the bottom of the ibex adyen shares rocket above the ipo price of 240 euros as they make their fintech debut in
4:32 am
amsterdam. and a victory for m&a. at&t and time warner win the right to complete their $85 billion deal despite opposition from the trump administration. we were just talking about prime minister may, but i also want to talk about may data. inflation numbers out of the ub. cpi numbers in line. we have the headline print, which came in at 2.4%. slightly lower than the consensus of 2.5%. we got the core cpi up in of 2.5%, versus 2.1% expectations so pretty much in line a quick one, the rpi also came in at 3.4%, which was also in line sterling is trading weaker today.
4:33 am
all right. prime minister may has narrowly avoided parliamentary defeat the prime minister struck an 11th-hour deal with conservative party rebels which grants concessions on amendments which would have given mps a meaningful vote on a final brexit agreement willem is in westminster on the surface it looks like a victory for the government they won all 12 votes that took place yesterday. the prime minister has succeeded at keeping the tory rebels at bay, but the question is for how long >> that's a good question. to help me i'm joined by a policy analyst what my colleague was asking is how long does this hold off those back bench rebels for theresmay? you saw this vote yesterday, relatively narrow, 324-298 i wonder if that passes back to the lords early next week and
4:34 am
then back to the commons and she hassed no addressed the elephant in the room, what happens next >> i think we're likely to know as early as the end of this week or when the bill reaches lords at the latest. the commitment she appears to have made to conservative rebel mps is sheill take her concerns into account when the bill reenters the lords. if that's not sufficiently met by the time it reaches the lords, the indication is that lords themselves may table an amendment similar to the rebel amendment that was put down. we will hear as soon as next week, i think. >> later on today, we're still having this commons reading, we have more debate, more votes over these 15 aments sent back one is on classrooms union one is on the norwegian model where the uk stays in the economic area. it seems like that has had a short-term fix applied to the
4:35 am
wound that will open up once again, festering in the conservativearty i wonder does help theresa may that this will be passed down beyond the european leaders summ summit >> i think you're right this ques n been resolved specifically on the customs union. we've seen a slight amendment on the words around this. so they're putting forward they'll update the house of commons parliament with the customs arrangement. still we have seen conservative rebel mps saying that they're willing to give the prime minister time to come up with a compromise on this but that doesn't mean the issue is solved. they're putting off the fight for later. if it doesn't end with this withdraw bill, you're right, it will come up in the house of parliament it helps the prime minister to enter the june summit with more strength withouter credibility undermined by a defeat in the parliament, the house of commons, but that said, this is
4:36 am
still a long-term negotiation. this is still a negotiation that will take us up to march 2019. the questions have to be resolved before then >> she may go in there not having faced defeat in the house of commons but she also goes to the summit without a fifrm proposal >> the issues the eu are likely want doing is with the irish border, and also the overall governance arrangement for the withdrawal agreement you're rig uk failed so far to present proposals on both of these issues that suit the eu, that the eu is willing to go along with or negotiate on the basis of we do have a difficult time at the june summit. this is unlikely to be a break through for either side. >> we heard that time and time again. this means we're waiting again for the next summit in at that point the time is running out for theresa may presumably >> certainly if it's deemed there's not sufficient progress at the june summit, a lot will
4:37 am
depend on the gestures that both sides make to one another, whether or not the eu is willing to say the uk customs proposal that was put on the table is something they can work with so far it looks like they pulled that apart the optics of this arertant. but you' to say there's a lot of pressure now on that october summit i think both sides have tried to signal we should not put too much pressure on this june one the uk government saying let's work for an irish proposal by october. the irish government say we are willing to work for the right agreement. if that cannot be agreed now, that's fine, we will take more tie's a lot of pressure on now for october. >> thank you very much for joining us back to you in the studio. >> the emphases keeps moving from summit to summit. now the attention is on october if not june.
4:38 am
british prime minister theresa may is also set to announce billions of pounds of tech investment during an event later today. may will host several business leaders for a roundtable at downing street, uding marc benioff of salesforce and in a cnbc exclusive, e sedgwick will speak with the uk prime minister, theresa may, later today toalk brexit, tech investment and international relations. catch that here on cnbc. shares in dutch fintech company adyen are spiking on their debut trading day. this after pricing the ipo at 240 euros per share that pricing gave them a valuation of 7.1 billion euros with the company profitable and debt free, adyen said the listing was highly oversubscribed arn
4:39 am
arjun has been following this stock closely. this seems cheap on the listing side >> there's debate on whether this was mispriced a bit of background about how thispo took place. it wasn't a traditional ipo where a company issued new shares to the public it was some sbriexisting invests that got nearly that were getting rid of their shares, putting those on the market and selling to institutions. it seemed to be something that was going on in the background i think that's why you have seen this spike there was a limited number of shares there was a lot of demand for what was limited supply. i think that's why you've seen this huge plot this morning. >> you don't usually see that, the first thing. the second thing is it's the biggest tech ipo for this year
4:40 am
>> absolutely, if you discount spify which went to the u.s., it is. it does show the appetite now for european technology on markets. we had a lot of u.s. technology companies go publi last few years that's been good for u.s. tech we have not seen that same appetite in europe europe fintech companies have seen unicorns. if you look at funding circle, or transfer-wise out of the uk, these are all plus $1 billion companies. there are rumors now that this is opening the gates for some of thesies to come to the market now that adyen tested the water. it's been profitable for a number of years, since that a lot of start-ups can't boast now. it had a healthy business model going into an ipo. it has been preparing for the ipo for a long time. i spoke to the ceo many times,
4:41 am
he's been candid in saying we have been acting like a public company for a few years because we were in preparation for this. company.he mene that's why theitement about this company it's market ready, it's not like some tech companies which are losing money now >> so they still went ahead and did the ipo despite the recent market volatility we've seen a lot going on in europe, not just on the political side, but generally markets have been volatile it's interesting that they just went ahead, decided to launch the ipo and perhaps what this means is that it could entice other players and people thinking about it to come to the markets. does that make you more optimistic about the ipo pipeline in europe >> there's been some reports, rumors about a few companies that could come to market. i mention funding circle, far fetch is another company that could comfort this year. there are a few companies that
4:42 am
could come forward and now after adyen we could see more tech companies. >> i want to keep an eye on how that stock does, given it's up 0up up 100% in trading already >> to learn more about adyen g to cnbc.com. you can get in the conversation with us on twitte twitter, @streetsignscnbc or tweet us directly @cnbcjou. coming up, more on the north korea summit that's coming up nex
4:43 am
no matter how much you clean, does your house still smell stuffy? that's because your home is filled with soft surfaces that trap odors and release them back into the room. so, try febreze fabric refresher. febreze finds odors trapped in fabrics and cleans them away as it dries. use febreze every time you tidy up to keep your whole house smelling fresh air clean. fabric refresher even works for clothes you want to wear another day.
4:44 am
make febreze part of your clean routin for whole home freshness. the first survivor of ais out there. and the alzheimer's association is going to make it happen. but we won't get there without you. visit alz.org to join the fight.
4:45 am
welcome back to "street signs. some italy news for you. headlines crossing from italian derime minister salvini who says they will dismantle the pension reform piece by piece.
4:46 am
there's been lot of focus on what this government's plans entail on the fiscal side but also in termof reforms it looks like they are going ahead with this one and are on the path of repealing some pension reforms put in place by their predecessors, and previous governs. the reaction while on the day, we still have two-year and ten-year italy trading lower, but we've come off and given some strength back on the back of these headlines in the last couple of minutes. so yieldve begun to sell off a bit, but still strong on the day. of course all may change tomorrow when the ecb is widely expected to wind down their stimulus by the end of the year. peter pratt signaled that the central bank will debate the end of its bond buying scheme. analysts are split over whether a decision may come at the
4:47 am
policy meeting or in july. cnbc spoke with a ceo, fion fiona frick, about what the ecb is looking for >> the market has recovered, the economy has recovered, now they have to start qe tightening. >> what do you think will be the market reaction to a tightening of monetary policy here on the ground in europe >> i think it's still not completely priced in it's more in the u.s it could be a source of volatility in the markets. >> it is just over 24 hours since the leaders of the united states and north korea signed a historic agreement working towards denuclearization of the peninsula. president trump also agreed to halt military exercises in south korea, a move that took seoul by surprise richard engel has more
4:48 am
>> reporter: across south korea today, hope this historic handshake means peace is finally in the air presiden jae-in, who met kim jong-un to help organize this summit, said he was so excited he couldn't sleep last night. but now, focus here is turning to that curveball. president trump saying while u.s. troops would remain in south korea, no more war games >> we will be stopping the war games, which will save us a tremendous amount of money, unless and until we see that the future negotiation is not going along like it should >> r but twice annual war games and joint exercises are the cornerstone of the military alliance between the u.s. and south korea
4:49 am
we visited them extensively in f-16s, on firing ranges, on patrol, always told by commanders they're essential for the safety of south korea and american troops and their families based here. but apparently no one told the south koreans president trump promised chairman kim he'd scrap them a south korean military official told nbc news, we need to find out the exact meaning or intention behind his comments. american forces in southorea said they, too, received no updated guidance on execution or cessation of training exercises. cancelling these war games is seen here as a major concession to north korea and this morning, north korean propaganda media is reporting that kim jong-un demanded it and president trump complied >> happy to say joining us on the lines anne wright, a member of women across dmz and
4:50 am
former u.s. diplomat to give our audience a bit of background, women across dmz is a women movement mobilizing loo, reunite families. can t off bysking, do you think yesterday's summit is a break through in terms of achieving peace on the korean peninsula? >> i certainly do. i'm proud of president trump i don't agree with him on a lot of things, but i agree with him on this, that for peace on the korean peninsula, after 7 0 year from the korean war will be good for all of us, for north and south koreans, for the u.s. and everyone in the region i'm also a retired u.s. army colonel, your previous about the war games is interesting to me, too i think the president is doing something that our groups, including vet rerans for peace
4:51 am
have been calling for for a long time when the u.s. names these joint exercises things such as decapitation for regime change, and decapitation for the assassination of the leadership of another country, that sends a certain signal that has been unhelpful in trying to get a resolution for t crisis on the korean peninsula >> indeed president trump himself referred to them as an unnecessary provocation, i believe, in the press conference yesterday. do you think there's support from the korfor a korean peace initiative >> oh, indeed there is i came back from south korea less than ten days ago we ha peace symposium in south korea. we had a peace march along the dmz. we had thousands of people rallying for peace
4:52 am
in fact president moon was elected on that platform of finding peace with the north korean brothers and sisters after 70 years >> in this respect we're talking about a peace treaty between north and south korea, but not reunification. >> well, that's right. the -- just the first step is a peace treaty then the koreans can figure this out for themselves they have had numerous discussions over decades about first the peace treaty and then should there be a decision for reunication, what type of reunification it would be. there's various models for it. the crkoreans, both north and south, are smart people. they have been dling with this on an hourly basis for 70 years
4:53 am
since the kore war, but they are one people they are one people that were divided arbitrarily by the international community after world war ii >> and many people are angry with president trump for engaging with the leader who has systemically imprisoned his own people, committed human rights abuses do you think it's righe u.s. engage with such a person and offer him an international platform >> certainly i think the issue of human rights is something that has to be dealt with. but it's not like thh korean govnment is the only one that has abused human an civil rights of its people and we have isolated ourselves from north korea on several different criteria over the past 70 years i think it's high time that we begin engagement and the f steps usually don't tackle the hardest problems
4:54 am
the issue of the people that may be in prison camps will be one of the contentious issues, and let me say that it's not just the north koreans that put ok at guantanamod the prisons that the united states has had and other allies that the united states has and what it does. not to condone any of it but to say let's not have the issue of human rights be the deal breaker when peace on the korean peninsula is what is good for all of us. >> absolutely. we have to see how all of that pans thank you very much for joining our show that was ann wright, former u.s. diplomat, and in the army as well shares in zte lost a third of their value after they restarted trading in hong kong following a settlement with u.s. authorities. shares had been suspended for
4:55 am
two months after the company was hit with sanctions led by the u.s. department of commerce. zte has agreed to pay 1$1.4 billion in fines to the u.s. government for breaking a trading ban with iran and north korea. and elsewhere, u.s. federal judge has approved the $85 billion deal between at&t and time warner. the two companies won court approval for the tie-up in the face of opposition from the trump administration which the judge said failed to prove the merger could cause competitive harm shares in time warner jumped in extended trade, at&t moved lower. volume has been unusually high 13 million time warner shares and 21 million at&t shares traded after hours as well the decision is expected to have an impact on a number of deals including the battle for 21st century fox. shares in sky, which is at the center of that bidding war, are under pressure this morning as
4:56 am
mcast, the parent company of nbc and this network is expected to formalize a bid for fox assets today for more on the doj ruling and its wide-ranging implications, head to cnbc.com before we head out a look at u.s. futures we have the fomc coming up all eyes on the dots a they're very much expected to be a hike. dow opening up aut 12 points lower. nasdaq about 1 point higher. lackluster as far as markets are concerned. that's it for today's show in a cnbc exclusive, steve sedgwick will be speaking with prime minister theresa may later toy. da
4:57 am
4:58 am
4:59 am
5:00 am
it is 5:00 a.m here are your top five at 5:00 a judge okaying at&t's $85 billion takeover of time warner. is a huge new round of media deals in the works the federal reserve likely to raise rates again today, is this a threat to the bull market. shares of zte plunging the telecom giant resuming trading following safsnctions alleviating. and seattle rolls back its employee head tax. it's wednesday, june 13th.

12 Views

info Stream Only

Uploaded by TV Archive on