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 denuclearize, but how they

plan to do it, we don't know. here, secretary of state mike pompeo will travel to south korea and japan to articulate the path moving forward for the united states. we should note this is the first time a sitting u.s. president has met with the leader of north korea, but north korea had already agreed to a commitment to denuclearize with south korea. it is up to president trump to say where this goes from here. he said he was willing to invite kim jong-un to the white house. there could be future potential meetings. >> amazing following the news

this morning. the two leaders holding a one-on-one meeting for about 30 minutes followed by this expanded bilateral meeting with the shaking of the hands. how would you measure the impact on china, first? china, first? wooded to be a summit that generated concrete results of -- summit that would generate concrete results of denuclearization on a timetable? probably not. along could be further with a peace agreement in east asia because of the actual bonding between these gentlemen. ways away from the open hostility 6-9 months ago.

the two gentlemen have met, smiled, shook hands and said they created a special bond. the problem is the declaration. it isn't very short on details -- is very short on details. a newre east of pushing peace framework between the two countries based on the desires of both nations. the third point is echoing everything kim jong-un committed to in late april when he met with president moon of south korea. we don't know what that means, necessarily. but --t one is good, looking back as far as wartriating prisoners of from the korean conflict in the early 1950's and those missing in action from that conflict.

kevin, who takes over the negotiations when the president leaves? peo will be negotiating with senior north korean cials, we understand. national security adviser john bolton was also in on the meetings with secretary of state generalpeo, as well as kelly and president trump. it has been well reported the differences in political ideology in terms of geopolitical policy. you i spoke with several sources who told me that secretary pompeo has definitely emerged as the point person on these negotiations. prior to being secretary of state, he served as a republican member of congress. tensions between

president trump and mike pompeo's predecessor, rex tillerson, that's no longer exist between the two. ke pompeo was trusted by president trump so much that ke pompe traveled to meet with the north korean leader before he was even confirmed in the senate. from here, the secretary of state will travel to south korea and jap to continue to articulate u.s. policy moving forward. when he returns home will have to continue to monitor the situation and make the case for why it is different than what's north korea had previously agreed to. -- what north korea had previously agreed to. the president previously sparked backlash from european allies canada for not dealing with

trade tensions escalatin the region. >> thank you for all the team on the ground through singapore. we will get plenty more threat the day. you can follow on tliv on the bloomberg. blog, especially good today. we will bring you president trump's conference as it happens. we will focus on what it means for geopolitics and global markets. we have two guests joining us. for joining us on this historic day. the markets are pretty much shrugging this off. markets focused on other things? >> no one can quite figure out what is going on.

you have seen asian stocks bump -- it ishe idea that light on facts. experience of the last several months, the market wantsacts, not random news. see reaction. the g7 was the same way. think about a trade reaction, but not immine >> were you surprised by the g7 reaction? sense that it is still not clear what not signing will mean in the long run. it escalates the tension and when you look at the markets, or is so much else that is good news.

the risk that investors worry about is geopolitics. >> did we witness a historic moment, a moment that will lead to lasting peace, or more of a facade? >> we don't know, but it is interesting to watch. yone will have their eyes on the imminent press conference. there are interesting elements of good news. ompeo controls the follow-up, not mr. bolton. i was more surprised there was not a reaction to the g7, given that it was fairly negative news. there was the eminent imposition of tariffs -- imminent imposition of tariffs on u.s. allies. this deal for the moment does not have anything concrete.

>> what do you want to hear? ting the ut, he region? what about china? do they need to sit down at the table? >> we need for way negotiations in which china is involved, and southea. china was a key player in the 1950's truce. it is a practical factor in the region. it is important to see what the economic incentives are for north korea, whether the u.s. can benefit from that, whether it can be beneficial for china. >> you have just come back from living in a show. -- living in asia. if we have something significant today, what does that mean for growth and trade? openedh korea could be ",

up, there is opportunities for trade and development. e amongst asian tries has improved over the last several years. korea could bed interesting for the entire region. north korea is very far behind. when we think about the experiences in the past, and you can go back to several of them here in europe, countries putting things together, s that have a long way to go, that's will be a lot of work for them and a potential economic challenge for the rest of the region. >> are you looking at emerging markets overall? are you worried because of the rising dollar? >> i am constructive on emerging

markets. we look at them as a place where there is still strong drive for growth. people are concerned about a fed hike and we have seen a rising rate environment in terms of reactions to the markets. the three rises have been related to growth and good news on the economy. we are seeing modulation on some of the data. we still have a positive case for emerging markets, but i would be selective. because of the growing middle class, like in india? >> and limited opportunities for technology and business developing. you go back 10 years to the model for china and you say, where army now in terms of the opportunities that have come for wnternet commerce -- are we no in terms of the opportunities that have come for internet commerce, you see great opportunities for growth in --

and development in terms of the emerging middle class. can he spin these opportunities in the kill to his base if there is something --crete in this agreement and appealed to his base if there is something concrete in this agreement? m sure he can. ne enjoys htese stunts. after a not particularly good g7, i think this is a good opportunity to spend the results to his base -- spin the results to his base. >> president trump has given an interview to fox and abc, the presenters he is friendly with. he trusts kim jong-un. this was question yesterday in the news conference by the "new york times."

instinct, or checks and balances? he would know within one minute whether he could trust kim jong-un. >> that is why i think the checks and balances might be somewhat limited. he has invested a lot of personal capital in this. it is unlikely he will walk away from this. there is not much imposed on the north korean regime. he will probably think he can revisit it later. he gets along with mr. pompeo, who is involved. i don't think this will end up with a walkout. text, then there will be a follow-up, which i am sure he will trust mr. pompeo on. the president tweeted a few weeks ago -- uncharacteristically, there is

not a word. you cannot see any content on the video. does this speaks to his base or is this a message to other world leaders? does this weekend him or make him stronger -- weaken him or make him stronger? i get the impression that this comes across to his base as him managing to do things the previous presidents failed to do. he always talked about this mess in north korea as something that have coded and dealt with 20, 5 years ago, criticizing his predecessor -- could have been dealt with 25, 20, five years ago. is net positive

or negative, looking at other world leaders. they know north korea is using this for propaganda and don't see any grants mastery in what president trump is planning to do. but he is talking to long-standing u.s. allies. the unitedident of states is about to go to the podium. let's remind our viewers and listeners what we know. there have been agreements. the president is currently talking in singapore. >> thank you very much. this has been going on for quite a wild. we gave a statement to chairman cam. -- chairman kim. korea has the potential to be an incredible place. tremendous potential and

he understands that and wants to do what is right. to address the people of the world following this historic summit with chairman kim jong-un of north korea. we spent a very intensive hours together. i think most of you have gotten -- this is very comprehensive. i stand before you as an emissary of the american people, and a message of peace. let me begin i thinking are incredible hosts in singapore, especially the prime minister, a friend. this is a country of grace and we extend our wishes of peace to every citizen of singapore. you've really made this visit so and pleasant despite

all of the work and long hours. i want to thank president moon of south korea. he is working hard and i will be speaking to him after we have finished. and prime minister abe, a friend, just left our country and wants what is right for japan and the world. he is a good man. and a very special person, china, who hasf really closed up that border, may less so over the past couple of months, but that is okay. person and afic friend of mine and a great leader for his people. i want to thank them for their efforts to help us get to this historic day. i want to thank chairman cam kim for takingn

the first global step -- chairman kim for taking the first global step toward the future of his people. he proves that real change is indeed possible. my meeting with him was honest, direct, and productive. we got to know each other well under very strong circumstances time.imited we are prepared to start a new history and rewrite a new chapter between our nations. extremelygo, an bloody conflict ravaged the korean peninsula. includingpeople died, tens of thousands of brave americans. le the armistice was agreed to, the war never ended to this day.

we have hope it will soon end, and it well. not have to define the future. the past does not have to repeat tomorrow's war. as history has proven, adversaries can indeed become friends. honor the sacrifice for our forefathers by replacing the horrors of battle with the blessings of peace. that is what we are doing and that is what we have done. there is no limit to what north korea can achieve when it gives up its nuclear weapons and embraces commerce and engagement with the rest of the world that really wants to engage. chairman kim has before him an opportunity like no other, to be of abered as the leader glorious new era of security and prosperity for his people. chairman kim and i signed a

joint statement in which he reaffirmed his unwavering commitment to complete denuclearization of the european peninsula. we also agreed to vigorous negotiations to implement the agreement as soon as possible. he wants to do that. anothernot the past, administration that never got it started, and therefore never got it done. chairman kim told me north korea is already destroying a major missile engine testing site. that is not in your signed document. we agreed to that after the agreement was signed. is going to be destroyed very soon. this is the beginning of an arduous process. open, butre wide

peace is always worth the effort, especially in this case. this should have been done years ago and resolved a long time ago. we are resulting it's now. -- resolving it now. seize ankim can incredible future for his people. anyone can make war, only the most courageous can make pe ace. the current state of affairs cannot endure forever. the north and south are a people -- they are profoundly industrious, gifted. they share the same language, common custo and destiny. to realize their amazing destiny is to reunite their national family -- the menace of nuclear weapons will now be removed. the sanctions will remain in effect. where allf a future

koreans can live together in harmony, where families are united and hopes are reborn, and where the lighted piece chases away the darkness of war. awaylighted peace chases the darkness of war. peace is within our reach. it is going to be there. it is going to happen. could neverht it take place and it is now taking place. this is a great day and a great moment in the history of the world. is on his way back to north korea. arrives, he will start a process that is going to make a lot of people happy and safe. it is an honor to be with everyone today. this is a big ring of media that of media-- gathering that makes me feel very uncomfortable. it is what it is.

people understand this is something important to all of us. thank you for being here. i will take questions. questions.ot of kim jong-un has killed family members, starved people, why are you soak -- comfortable calling him very talented? pres. trump: he is. ayone that takes over situation like he did at 26 is able to rund it -- i don't say he is nice. one few peop age, of 10,000 probably could not do it. he is a very special person and he will be for a long time.

without otto, this would not have happened. this was brutal. a lot of people started to focus on what was going on, including north korea. otto is someone who did not die in vain. a special young man, and special parents. otto did not die in vain. -- ad a lot to do with this us being here today. reporter: on the security assurances in your statement, what assurances are you willing to give to kim jong-un? does that include reducing military capabilities? pres. trump: no. we are not reducing military capabilities. i want tosay this,

get our soldiers out and bring them back on. -- back home. southe 32,000 soldiers in korea and i would like to be able to bring them back,. i hope that will be part of the equation someday, but not right now. we will be stopping the war games, which wiling us a tremendous amount of money. very provocative. yes, john? go ahead. i'm sorry. i thought you were john roberts. reporter: we are frequently confused, mr. president. >> [laughter] reporter: the joint statement does not talk about verifiable or irreversible denuclearization. it will be gone, i

don't think you can be more plain in what we are asking. the building we talk about, we talk about the guarantees and unwavering commitment to the complete denuclearization of the korean peninsula. reporter: did you just -- you discuss with chairman kim methods to verify that very process? pres. trump: it will be verified. reporter: how will that be achieved? pres. trump: by a lot of people there, as we developed a certain trust. secretary pompeo has been doing a fantastic job. there,a lot of people and we will be working with them

on a lot of other things. this is complete the new per se should of north korea -- de nuclearization of north korea. reporter: bold that the americans? -- will that be americans? pres. trump: combinations of both. jong-un: what did kim say to you to give you the confidence that for once in the history of north korea they are not cheating the system and gaining the people -- gaming the people? that they are actually giving up their nuclear arsenal? pres. trump: he made it clear he proceeded down that path in the past and nothing got done. billions ofd dollars during the clinton regime and nothing happened. that was a terrible thing and he brought it up to me.

he said, we have never gone this far. i don't think they have ever had the confidence in a president to get things done. he was firm in the fact he wants to do this. he might want to do this as much, even more than me, because they see right futures for north korea. -- bright futures for north korea. you never know. we signed very comprehensive documents today and most of you have been given that document. i believe people live up to that document. when he lands, i think he will start that process right away. i do. i can only say that i know him really well, it has been very rhetorical. without the rhetoric and other things going along, the east out

was met of a new team was very ment of a -- establish new team was very important. he wants to get it done. i feel that strongly. you guys look alike when the light is on -- the hair is similar. reporter: it is the angelic glow of the backlighting, mr. president. denuclearization, nuclear weapons, biological weapons is one problem in north korea. the other is the horrible record they have on human rights. was that discussed at all it is that something you will tackle in the future? pres. trump: it was and it will be discussed in the future. what was also discussed in the i have hadl, you can do,lls and letters, ang

they want the remains of their sons back, they want the remains of their fathers and mothers and all of the people that got caught in that really brutal war, which took place, to a large extent, in north korea. and i asked for itand we got it. that was a very last-minute. the remains will be coming back. they are willing to art the process immediately. but so many people have said if there is any way you can work with north korea to get the remains of my son back or my father back, so many people asked me this question, and i said look, we do not get along too well with a particular group of people, but now we do, and he agreed to that so quickly and so nicely -- it was a really nice thing. and he understands it. for the thousands and thousands, i guess way over 6000 that we know of in terms of the remains will be brought back.

p.o.w.-mia issue is very important -- pres. trump: especially to a lot of people. >> what do you, president trump, expect to do about the human rights records regarding the north korean people? pres. trump: it was discussed. it was discussed briefly comped to denuclearization. obviously that is where we started and where we ended, but he will be doing things. i think he wants to -- you would be very surprised. very smart, good negotiator. he wants to do the right thing. he brought up that in the past, they took dialogue -- they never were like we are. there has never been anything like what has taken place now. they went down the line. billions of dollars were given, and the following day, the nuclear program continued. but this is a much different time, and this is a much

different president, in all fairness. is impoant to me. of the perhaps one reasons come up when i campaigned on this issue, as you know very well, john. ok, whoever those people are, i cannot see you with all of the lights, but you do not look like either of the two. go ahead, sure. >> thank you, mr. president. pres. trump: thank you very much. appreciate it. >> also on the issue of the treaty, will you travel to pyongyang anytime soon? pres. trump: at a certain time, i will. that is a day i look forward to at the appropriate time, and i also will be inviting chairman kim, at the appropriate time, to the white house. i think it is really something that will be very important. and he has accepted. i said at the appropriate time. we want to go it little further down the road. today was asigned lot of things included, and then

you have things that were not included that we got after the deal was signed. i have done that before in my life. we did not put it in the agreement because we did not have time. i think most of you have been handed out the agreement -- or soon will -- oh, you have not? if you have those agreements passedut. we just finished them a little while ago. but if you have the agreements passed out, you will see what we're talking about. yes, sir, go ahead. >> congratulations, mr. president. pres. trump: thank you. >> what part did japan play? christiansate of the , and the follow-up question, when will you be doing a follow-up with japanese tv? 50,000 japanese troops -- pres. trump: that is true, 50,000 great troops. prime minister all the, other denukiner than the

g, that was his main point. we did not put itn the document, but it will be worked on. yes, very strongly coming in a coma franklin graham spent and spends a tremendous of strongly, and franklin graham spent and spends a tremendous amount of time on this. great question. yes? president.u, mr. returning to the question of human rights, you spoke very powerfully on the issue during your state of the union address. ow that u had a defector in the box with the first lady's crutches that had escaped, and you said that north korea had more brutally oppressed its people than any other regime on earth. do you still believe that is the

case having sat down with kim jong-un? pres. trump: john, i believe it is a rough situation over there. there's no question about it. we did discuss it today pretty strongly can i mean, knowing the main purpose of what we were but wes de-nuking, discussed it at pretty good links. we will be doing something on it. it is rough. it is rough and a lot of places, not just there. but we will continue that, and ultimately we will agree to something. outsidof the nuclear situation, one of the primary topics. are they going to have to change to bring on this glorious new era you talked about? pres. trump: i think it has to. thk you ray much. steve? steve: yes, sir, what timetable do you view for denuclearization?

in the meantime, are you thinking about easing sanctions? i have been reading a lot about this, and it does take a long time to pull off complete denuclearization. it takes a long time, scientifically, you have to wait certain periods of time, and a lot of things happen. once you start the process, it means you are pretty much over. you cannthem. that is the good news. i believe it will start very soon. it can mechanically and physically be done, steve. >> steve: and the sanctis? pres. trump: the sanctions will come off when we are sure that the nukes are no longer a factor. sanctions played a big role, but they will come off -- i hope it will be soon -- as you know, and as i said, the sanctions right now will remain. at a certain point, i actually look forward to taking them off, notdown the road, it is going to happen, nothing is

going to happen. yes, go ahead, please. >> thank you, mr. president. pres. trump: thank you. >> congratulations on this historic summit. pres. trump: thank you very much. congratulations to everybody, by the way. >> when you sned the document with kim jong-un, it is essentially a piece of paper. yesterday, we had a briefing from secretary of state mike pompeo, who said the following -- "many presidents have previously signed off on pieces of papernly to find that the north koreans either did not promise what we thought they had or actually reneged on those what makes this time different, mr. president ? pres. trump: welcome and you have a different president, a different administration, a different secretary of state. it is very important to them, and we get it done. the other groups, maybe it was not a priority. i do not think they could have done it if it was a priority, frankly. i do not think honestly they could have done it if it was a

priority. and it would have been easier back then. for me, it would have been much easier if this was 10 years ago or five years ago. and i am not just blaming president obama. 25 years ago this should have happened. i was given a very tough hand. i was given this, the iran deal, and plenty of other problems. but we are doing really well. the iran deal, i have to be honest, i did it because nuclear is always number one to me. i thinkhe iran deal, iran is a different country now than it was three or four months ago. i do not think they are looking so much to the mediterranean. they are looking so much syria like they were with total confidence. i do not think they are so confident right now, but as i said, i hope at the appropriate time, after the sanctions kick in, and they are brutal, what we put on iran, i hope that they are going to come back and negotiate a real deal, because i would love to be able to do that.

but right now, it is too soon to do that. yes. >> mr. president, you also talked about establishing diplomatic relations, and changing ambassadors. pres. trump: good question. hopefully soon, but we will have to get things moving first. a little early for that. yes. hi. clarify, when you say you're stopping wargames, that you are stopping the military korea?es in nort south pres. trump: wepres. trump: have done military exercises for a long period of time in south korea, and we call them wargames, and they are tremendously expensive, the amount of money that we spend on that is incredible, and south ,orea contributes, but not 100% which is certainly a subject that we have to talk to them about also. that has to do with the military expense and also the trade.

so we are doing that. we actually have a new deal with south korea in terms of the trade, but we have to talk to them, and we have to talk to many countries about treating is us fairly. but the wargames are very expensive. we fly and bombers from qualm. i said where the bombers come from? guam. oh, great, nearby, how far? 6.5 hours. 6.5 hours is a long way to fly to south korea to practice, drop bombs all over the place, and go back to guam. i know a lot about airplanes. it is very expensive. i did not like it. what i did say -- i think it is very provocative, i have to tell you, jennifer, it is a very provocative situation. when i see that, and you have a country right next to it -- so under the circumstances that we are negotiating, a very

comprehensive, complete deal, i think it is inappropriate to be having wargames. so number one, we save money a lot, and number two, it is really somethi t think they very much appreciated. >> [indiscernible] pres. trump: i have heard that. imean, some of the people, don't know, i do not always want to go against the press, i just do not, especially not today -- this is too important -- but i noticed some of the people saying "the president has agreed to meet. he is giving up so much." i gave up nothing. i am here. i have not slept in 25 hours, but i felt it was appropriate to do, because we have been negotiating, literally, round-the-clock the with us, with john and mike, and a whole team of very talented people. but we have not given up anything other than, you are meet, and iee to think the meeting was every bit

as good for the united states as it was for north korea, but i just wrote down some of the things we got, and they, you meeting,e, they got a but only person that dislikes mmitment.ed to make a biha sure, i have agreed to take a period of time to come here and meet, and that is good, i think it is good for us as a country, and i think it is good for them, but what do they do to justify this meeting> secured a commitment for complete denuclearization. that is the big thing. they secured the release of three american hostages. they are a gave it to us. those people are now living happily back in their homes with their families, and it was pretty rough for them, to put it mildly. security commitment to recover the remains, including these are

our fallen heroes, and they are giving a commitment to recover the remains, and i just went through -- i was amazed, actually, so many people would ask me "is it possie,s it possible?" at that time, we had no relationship to chairman kim or anyone else in north korea. it was a very close to society. so we are getting remains back, secured the halt of all missile and nuclear tests for, how long has it been, seven months. for seven months, you have not had a missile go off, you have not had a nuclear test, you have not had a nuclear explosion. i remember a nuclear event took place, 8.8 on the richter scale, and then announced i heard on the radio, they announced a place inarthquake took asia.

if you look, there has been no missile launches. they have blown up their missile area that is going to take place. that has not been written into the contract. we will give you the exact details on the. but they secured a halt of all missiles and all nuclear tests. the secured the closure of their single primary nuclear test site , all three of them, there has been an area that is, around each other, they secured the closure. they secured the commitment to destroy the missile engine testing site. that was not in your agreement. i got that after we signed the agreement. i said "do me a favor, you've got this missile engine testing site, we know where it is," because of the heat, it is incrible the equipment we have, to be honest with you.

i said "can you close it up?" he is going to close it up. we maintain the ability to continue to apply sanctions. so we are applying sanctions. wasve 300 sanctions i getting ready to put on last week, and i said i cannot put them on when i was thinking of meeting -- it would be very disrespectful. i said it would be disrespectful. jennifer, when you look at all of those things that we got, and we got our hostages back, i did ,ot pay $1.8 billion in cash like the hostages that came back from iran, which was a disgraceful situation, what took place. so we have gotten a lot. so when i hear somebody in the media say that "president trump has agreed to meet," like, it is not a big deal to meet. i think we should meet on a lot of different topics, not just this one. a lotly believe a

of great things can happen. yes, go ahead. yes. >> you ticked off a lot of yougs in the meeting, but said you define success of the media by north korea giving of nuclear weapons. pres. trump: that is what they are doing. sure. that is what they are doing. >> kim jong-un for complete verifiable irreversible -- pres. trump: i did, honestly. >> you did not secure those details. pres. trump: there was no time. i was here one day. together for many hours, but the process is going to take place, and i would be surprised, mike, if they have not started already. they have started. they blow up their sites. they blew up their testing site. i will say that he knew prior to coming, this was not a surprise, it was not like we never discussed it. we discussed it, mike, discussed very strongly with his

counterpart in north korea. they knew that this was -- let's say they did not agree with it. i do not sign any agreement. they understood that. was not a big point today, because really this has be ken care of more an any other thing, because it was all about this. this has been taken care of before we got here. so when we got here today, you see the language when it is very strong, it is in the document. yes, ma'am. >> thank you, mr. president. can you talk about the consequences on north korea if pres. trump: that is a tough thing to talk about, because i do not want to be threatening. they understood that. you've seen what is perhaps going to happen, and you know, seoul has 28 million people. you think we have big cities. you look at new york that has 8 million people. has 28 million people,

and it is right next to the border, it is right next to the dmz. it is right there. if this would have happened -- i heard 100,000 people -- i think you could have lost 20 million people, 30 million people. this is really an honor for me to be doing this, because i think i'm a you know, potentially, you could have lost 30 million, 40 million people, because the city is right next to the border. >> [indiscernible] pres. trump: welcome at that time perhaps we needed fire and fury, because we did could not have allowed that kind of capability from the standpoint of the united states, and certainly japan was not going to allow it, either. japan is right next door. >> can you tell us about the video that you showed before this? what was the goal of this? pres. trump: we had it made up. i hope you like it.

i thought it was good. i thought it was interesting enough to show it. one in english and one in korea. he had it made up. i showed it toward the end of the meeting. ined it. we did n he the big screen. we did not need it. an ipad. and they played it. about eight of the representatives were watching it, and i thought it was fascinating. i thought it was well done. that could very well be the future. the other alternative is just not a very good alternative. it is just not good. but i showed it because i really want him to do something. i think i had to show it, because i really think he wants to get it done. yes, go ahead. how is staten island ferry doing?

ok? he wrote the best story about me with the staten island ferry command after that, he has not written one. been aide, and has busy week for you on the international stage. you are leaving singapore having determined kim jong-un is a talented man. you love the g7 summit having determined that prime minister trudeau is "weak and dishonest." what do you say to america's allies who were you might be jeopardizing longtime alliances, were you might be treating our historic friends as enemies and our historic enemies as friends? pres. trump: first of all, i think it is a very fair question. i had a very good meeting with the g7, and i left the meeting -- i will be honest, we are being taken advantage of by virtually every one of those countries, very seriously. now, the united states, because of bad management at the top, because presidents who

did not care about trade, for many reasons, whatever, china obviously is the most successful audit, but the european union's second. we are being taken advantage of on trade. have very big advantages over us in terms of trade deficits. we have a big trade deficit with canada. i was reading oh, it is actually surplus -- it is not a surplus. they put out a document, i do not know if you saw it -- they did not want me to see it, but we found it -- perhaps they were trying to show the power they had, it is close to $100 billion a year lost with canada. they do not take our farm products, many of them. they charge what was 270%, but somebody told me the other day they raise it to 295%, with dairy products. it is very unfair to our farmers, very unfair to our

workers, the farmers, the companies. they have tremendous barriers up, tremendous tariffs, so when i put in a countervailg tariff just a little bit to get the balance up, it is like this, they said oh, it is so terrible. i said what is terrible. little bitget you a to we have to have a little balance. i y this with ny countries. we finished the meeting, really everybody was happy, and i agreed to sign something. i asked for changes, i demanded changes, in fact, the picture of angela merkel, who i get along with very well, where i am sitting like this, that picture is waiting for the document, because i want to see the final document as changed by the changes i requested. it was very friendly. i know it did not look friendly. it was reported both ways, i was very angry with her, but

actually, we were just talking, very friendly, waiting for the document to come back before i could leave. friendly.it was when i got onto the plane come i thought just and probably did not know that air force one has about 20 televisions, and i see the television, and he is giving a news conference about how he will not be pushed around by the united states. i said "push him around? we just shook hands1" it was very friendly. countries cannot continue to take advantage of us on trade. the numbers are out -- over the last couple of years and over the last many years, but over the last couple of years, this country has lost $800 billion on trade with other countries. the biggest one being china. billion, $151 billion with the european union. they do not take or agricultural products -- barely. they do not take a lot of what we have, yet they sent her cities into us -- mercedes into

and it is very unfair. i will straighten it out, and it won't even be tough. thank you. go ahead. go ahead. >> [indiscernible] do you plan on working with congress? pres. trump: i would like to involve congress, yes, and no, i have a good relationship with justin trudeau. i thought he had the news conference that he had because he assumed i was in an airplane and was not watching. p will learn that will cost a lot of money to canada. he cannot do that. i had a good relationship with justin. i had a very good relationship with angela merkel. payingh nato, we are

4.2%, she is a 1% of a much smaller gdp than we are. -- 4.2%aying for per 2% on a much larger -- anyone can say from 60% to 90% of nato, and we are protecting countries in europe, and on top of it, they kill us on trade. we cannot have it that way. it is not fair to our taxpayers into our people. but i have a good relationship with justin, and i have, i think, a very good relationship with chairman kim right now. i really do. i hope it is good, because if it is, we will solve a very the problem. i think we saw the good problem today. today?we keep going is up to the legendary sarah huckabee sanders. should we keep going, sarah? ok, we will go. well, i don't care. it just means we get home and little later in the evening, right? go ahead, sure, go ahead. >> hi, mr. president. pres. trump: how are you?

>> i am good. welcome singapore. i hope you enjoy our food. pres. trump: thank you, i do. >> you describe the process. what is the next step? diague? some ongoing yes, and we are getting together next week to go over the details. withtary pompeo, next week john bolton, our entire team, to go over e details and to get this stuff done. we want to get it done, he wants to get it done. we are working v soh ith japan, we are working with china aleerxtent -e working with china. >> and you are coming back tosi? pres. trump: i would come back gladly. your prime minister was fantastic. he has done a great job. he was very welcoming. it probably made a difference, actual. thank you very much. yes, ma'am. >> thank you, mr. president. what was it about that first

interaction with chairman kim this morning that made you decide not to walk away after you said that you would know within the first minute if he were sincere or not? pres. trump: yes, i have said that about relationships. i have said that about people. i was generous, i said five seconds, but you know within the first second in some cases sometimes it does not work out, and sometimes it does. from the beginning we got along, but there has been a lot of groundwork. this was not like we went and we started talking about, as you know, we did not just start talking about these very complex subjects that have been going on for 70 years. we have been discu discussing tr months, and, you know, once the rhetoric stopped, once they did a great thing -- you know, north korea did a great thing by going to the olympics, because the olympics and president moon will tell you this, the olympics was not exactly doing great. people did not feel like being bombed out of the opening

ceremonies they were not exactly selling tickets. as soon as the chairman, chairman kim, said "let's participate in the olympics," is sold like wildfire, and it was a great success, the olympics. he did eat hing. pretty much since that time, because you know, the delegation came from south korea who had just met with north korea. they came to the white house, they told me a lot of things, including the fact that they would be willing to do yo de-nuke, we have a lot of great people here today, that they were willing to de-nuke. once that started, we have been talking about that to save various things, including de-nuking. >> if i may, a second question. in the document that you signed earlier today, north korea agreed to denuclearization.

how do you ensure that north korea is not all talk, no action? pres. trump: i think -- can you ensure anything? can i ensure that you will be able to sit down properly when you sit down? sure anything. all i can say is they want to make a deal. deals.e life has been is what i do. a lot of politicians don't, that is not their thing, but it is my thing. i think this could have been done a long time ago. but i just feel very strongly, my instinct, my ability, my talent, they want to make a is great makinga al for the world. it is also a great thing for china, because i cannot imagine that china is happy with somebody having nuclear weapons so close. that is very helpful. i think he wants to make a deal.

can anybody be cetain? >> you mentioned you brought up the issue of human rights with what youkim, i wonder would say to the 100,000 north koreans kept in a network -- [indiscernible] pres. trump: i think i've help them, there is nothing i can say, all i can do is do what i can do. we have to stop nuclearization. at a c point you will be able to ask me a much more positive question or make a statement. not much i can do right now. at a certain point i believe he will do things about it. i think they are one of the great wirs today, that large

group of people you're talking about. ultimately, they will be one of the great winners. go ahead. go ahead. yeah? >> would you ever consider removing sanctions without significant improvement in the human rights situation? pres. trump: i want significant improvement. i want to know it will not be happening. once you start the process there will be a point, you won't be finished for a while because it cannot happen scientifically or mechanically but you will not be able to go back. once we reach that point, i givetht serus thought. yes, go ahead. go ahead. you first. >> [indiscernible] crippling sanctions remain in place -- [indiscernible] pres. trump: i think south korea and japan will help them very greatly. they know they will have to help them. i think they can help them greatly. we will not have to help them. united states, has been paying a

big price in a lo plac but south kore right next door and japan, essently next-door, they will be helping them and i think they will be doing a very generous and terrific job. yes ma'am, go ahead. >> thank you, mr. president. pres. trump: thank you. >> i would like to follow up on steve's question, yes how long it will take to denuclearize the peninsula -- you said a long time, what does that mean? pres. trump: we will do it as fast as it can be done scientifically, mechanically. i have read horror stories -- it is a 15 year process. whoever wrote that is wrong, there will be a pointer which, when you are 20% through, you cannot go back. i had an uncle who was a great professor for 40 years at m.i.t.. i used to discuss nuclear with

him all the time. he was a great expert, a great brilliant genius, dr. john trump at m.i.t. 40 years, the head of m.i.t. sent me a book on my uncle. we used to talk about nuclear. you talking about a very complex subject. it is not like, oh, let's get rid of the nukes. -- when period of time you hit a certain point it is very hard to go backward >> how long will that take? pres. trump: it will take quickly. go ahead. >> thanks, mr. president. on the sanctions campaign you alluded that the chinese are not doing as great a job as securing the border as they were before. you expressed doubts when kim went to see president xi jinping, the foreign minister said there should not be sanctions while negotiations are

underway. the south koreans are talking about restoring some form of trade. with all those players appearing to be moving toward eroding sanctions, how can you keep sanctions n plac? what leverage do you have on these countries? pres. trump: we have a lot of leverage, tremendous leverage. i believe that china, despite my relationship with president xi, a man i have great respect for like a lot, we are having very tough talks on trade and that probably affects china somewhat. but i have to do what i have to do. the the last two months, border is more open than when we first started. we have to do it. deficit inremendous trade, commonly known as a trade deficit. we have a tremendous deficit in trade with china, we have to do something about it. we cannot continue to let that happen.

i think that has had an impact on my relationship in terms of the border. i don't think it has a relationship, i don't think it affects my feeling or my relationship to president xi but when we first started we were not ready to go that route. as we started preparing and getting ready to do that, i think that had an impact on frankly, the border, which is a shame but i had to do it, i have no choice, for our country had to do it. south korea will do whatever is necessary to get a deal but if that means we cannot trade, i will not trade. if they think -- and they would do this with our concurrence -- if they think they can do some work because we're very far down the lin -- we are very far -- that document when you read it today, that is far down the line. that is not something that just happened to be put together. this was done over months. the rhetoric was important and

the sanctions were important, i don't know which one was more important. they were both important. go ahead. new york times, i was wondering if you could give us some sense of whether chairman kim told you how many nuclear weapons he believes he has made, whether he is willing to turn those over first and whether in your mind, we need to do more than we have done in the iran both thedismantling uranium and plutonium processes and whether or not you had a sense that chairman kim really understood what that involved and had a timetable in his mind of shutting that? pres. trump: david, i can tell you he understands it so well. he understands it better than the people doing the work for him. that is an easy one. as far as what he has -- it is substantial, very substantial.

the timing will go quickly. i believe you will see good action. as an example, one of the things with a missile site, you are probably surprised to hear, the missile site. i really believe, david, it will go quickly. i believe it will go fast. it is a very substantial arsenal, no question about it. i used to say -- maybe it is all talk and no action. but we have pretty good intelligence into that -- probably less there than any other country. you understand that maybe better than anyone in the room. probably less than any other country but we have enough intelligence to know that what they have a substantial. this is why i always say this should not have taken place so late into the process. would not this have been better if it was 20 years ago or 15 years ago and we did not have to worry about not having a successful meeting like today?

i still love my first interview with you, david. i still have that interview. go ahead. thank you. >> [indiscernible] if there is a second summit with german kim jong-un, would it be in pyongyang -- chairman kim jong-un, would it be in pyongyang? pres. trump: we will probably need another one. than irther along thought,ave told people, i did not want to build up hopes too much, i told people i thought, this would be a successful meeting if we got along, we developed a relationship and we could have maybe gotten to this point in three or four months. it happened very quickly. a lot of that was because of the foundation put down before we met.

a lot of things happened very fast. we did not have -- as an example -- bringing back the remains, that was not one of the things on our agenda. i brought that up at the very end because so many people have talked to me about it. i brought it up at the very end. he was really very gracious, instead of saying well, let's talk about it next time -- he said let's do it it makes sense. they know where many of those incredible people are, where they are very, along roads, highways, paths. our soldiers were moving back and forth. it is very sad. he knew. that was bught up at the very end. it is really great he was able to do it. a lot of people are going to be very happy about that. yes, go ahead, please. >> thank you, mr. president. congratulations. pres. trump: thank you for the

nice way you treat us. it is really beautiful what you do. go ahead. now i will get this killer question. >> i want to talk about the future of north korea, specifically the people. kim jong-un is wanting a brighter people, we know they have lived under oppression. they show this video of what the future could be like. do you have an idea specifically of the model he would like to go toward? economically, if he opens to more economic freedom --? pres. trump: it is a good question. you saw a tape today and that was done very well. that was done at the highest level of future development. i told him, you may not want this. you may want a smaller version. you may want a smaller version. you may not want that with the trains and everything in super everything, the top. maybe you won't want that. it is going to be up to them, up

to the people what they want. they may not want that. i can understand that too. that was a version of what could happen. they have great beaches. you see that whenever they are exploding cannons into the ocean. look at that -- woul't that make a great condo? instead of doing that, you can have the best hotels in the world right there. think of it from a real estate perspective. give south korea, china, they own the land in the middle. how that is that? it is great. you may not want to do what is there. you may want to do a smaller version of it and that could be -- i tell you what -- he looked at that tape, that ipad, i am telling you, they really jod it. go ahead. a couple more. three more. go ahead. go. >> [indiscernible]

pres. trump: hi, brian. mi undercover again this week? -- and i undercover again this week? >> do you see kim jong-un as an equal? pres. trump: in what way? thatu showed a video showed you on equal footing discussing the future? pres. trump: i do not view it that way. i will do whatever it takes to make the world a safer place. if i have to say i am sitting on a stage -- i understand what you're getting at -- if i'm sitting on a stage with chairman kim and that will get us to save million lives, could be more than that, i am willing to sit on the stage, to travel to singapore proudly and gladly. again, other than the fact that it is taking my time, they have given up a tremendous amount.

they have given it up even before -- even added the olympics. you could add the olympics to the question. they took an olympics that would have been a massive failure, that maybe would not have even opened and they made a tremendous success by agreeing to participate. add that to the list of things they have done. brian, if i can save millions o lives by coming here, sitting down and establishing a relationship with someone, who is a very powerful man, firm control of the country. that countryas -- has very powerful weapons, i am happy to do it. >> are you concerned it will be used by kim as propaganda? pres. trump: i'm not concerned at all. we can use that video for other countries. president clinton got a to travel kim jong-il

to pyongyang and meet him. president clinton refused and he sent secretary of state albright. pres. trump: he did a great deal. he spent $3 billion and got nothing. they started making nuclear weapons. >> the understand those people who said you gave him the ultimate present, the legitimacy to oppresses people without ongoing process before you as a u.s. president, leader of the free world, meat and shake hands with this leader of north korea, who is perceived to be oppressing his own people? pres. trump: i think we just answer the question. i understand it much better than you do. go ahead. >> -- pres. trump: thank you very much. >> politico. a couple specific

concessions you got from kim, the return of remains and the destruction of the nuclear site. pres. trump: and much more. >> you said the last thing was an add-on, that he gave you his word. if he does not follow through on these things -- what are you prepared to do in response and will you lose faith in this process? pres. trump: i think he will do it. i really believe that. otherwise i would not be doing this. it was the engine testing site in addition to all the other things they agreed to do. they have a very powerful engine testing site, that we are able to see because of the heat that it emits. --, able to, i'm very happy i am very happy with the points you mentioned but you might be referring to the thing that is not in, which is the engine testing site. i think honestly he will do these things. i may be wrong.

i may stand before you and six months and say hey, i was wrong. i don't know that i will ever admit that but i will find some kind of excuse. go ahead. sure. thank you. know, willlike to you call the chinese president when you get back to bc about achievements -- to washington dc about achievements and what is your expectation about china's road to accelerate the process of long-term peace? pres. trump: my expectation about china is that china is a great country with a great leader and a friend of mine. i really believe he is happy we have made thd ess. shortly, calling very maybe even before i land. i have to say -- the united states is a great country. we have set records economically

-- over $7 trillion in net worth addition to what we have. we are almost twice the size, the economy of the united states -- nontoxic but this because you hear a lot of china, rightfully the united states is almost twice the size of the econy of china. we have a great country. one more and that will be it. where is south korea? you deserve -- go ahead. you deserve one. yes. you deserve one. >> 2 questions. first, you mentioned earlier you would talk with president moon over the phone -- what you plan to discuss? pres. trump: i want to tell them about the meeting, very successful and he will be involved in the final negotiation. he is a very fine gentleman, also a friend of mhe will be vee

hears -- i've already sent word about what happened. i sent the document to him and all the details behind the document. i will be talking to him shortly. >> another question. in signing that these treaty, do treaty, dohe peace you plan to work this out with the chairman only or what you think about the involvement of south korea and china? pres. trump: i would like to have them involved also. there question about whether or not we legally have to -- i don't care. it would be great to have china and south korea involved. what? >> [indiscernible] pres. trump: do they have a transcript? they probably have a rough transcript they can give, if you have one. no, they did not record it. i don't think they recorded it. are there any recordings of it?

i wish there were. it is interesting stuff. say it. i don't, we probably have some notes or something but they have detailed notes, i would imagine. conversation, a very heartfelt conversation. >> [indiscernible] i have to verify -- i don't have to verify because i have one of the great memories of all time. i don't have to. >> [indiscernible] yeah, but i don't want to discuss it. we have had numerous discussions , we have very important relationships establish that mike's levels and other levels, a couple people here from north korea are here in the room. when we went into this final agreement, very importantly we did not go in cold, we went in

with tremendous relationship and knowledge and that is why we got it done. i will head back. i don't know about you folks but it has been a long te since i've taken it easy. now we can take it a little bit easy and the work begins again. i appreciate everyone being here and i hope you have answered your questions. thank you very much and congratulations to everybody. to me, this is a very important event in world history and to be true to myself i have to add, i want to get it completed. mike, our whole team has to work on getting a completed because otherwise we have done a good job but if you do not get the ball over the goal line, it does not mean enough. thank you and sort of congratulations to everyone in the room. thank you very much. appreciate it. [applause] that was the president of the united states of america speaking at a press conference in singapore.

that news conference lasted 75 minutes, where he says the u.s. has offered security guarantees to northea in return, north korea has promised denuclearization. he got a lot of questions on human rights. he said there were steps being taken for monitoring ballistic missiles without elaborang on the steps. they talked about what kim had offered in return. two things were significant. the u.s. and south korea were halting joint military exercises but sanctions were still in effect on north korea. we begin team coverage, i am francine lacqua in london, tom keene is in new york. theinda, it was extensive, president seemed to be enjoying his time in the podium. we need concrete steps, what did you take away? francine, we were short on details before the press conference, still short on

details, no roadmap for when this would happen, he said it is too short for them to come to any conclusions or decisions but teams from both sides will wor gether. there is a shat it is more a victory for north korea. north korea really wanted to stop the war games, also also a sense that this was a win for kim jong-un. he is managed to meet the president, something his grandfather and his father wanted to but failed. of it is a sense legitimizing his leadership, his position as a global leader. we are seeing immediate reaction from nuclear and korean experts and they have been disappointed. they say there has been zero practical value. it is swampy or than what we

expected. from robert kelly, this is it? this is depressing. that trump could have got missiles, but that did not happen. you get the sense francine, that, the u.s. achieved very little from the summit. we will be bringing you team coverage throughout the next two hours. robin, joining on the phone, there are questions from experts on whether the u.s. could have gotten more out of the north korean leader about how they would verify denuclearization but is this a step in the right direction? >>f you thk of where we were 6, 9 months ago -- this is a step in the right direction for the world. i think some of president trump's maximum pressure, the increase by the chinese of limiting oil and coal to north korea have had an impact

economically. on the other hand, as we saw kim jong-un got to where he needed to before he moved into the diplomatic vein. moved done nuclear tests, into the gray zone of having nuclear capacity of hitting the united states. he will feel that he was ready for this conversation. trump needs a foreign-policy success and needed to make progress here. the fact that sanctions are still on, the fact that there has not been movement on a peace treaty, means there is a long way to go on this road. on balance, is probably given too much away too early in the process but it is not a bad thing this has started. constantsf the great we see from military officers is the idea that wargames matter. what is the president giving up? what is the president losing if weur military's plural stop doingargames? >> i think this is a really

important point. any military commitment,ly as it isn terms of readiness. the president's comments about this being unnecessary is not factual. if you're going to te a space for a genuine conversation with the north korean regime, this has been their absolute red line on their side, which is at least a halt. i think trump needs to test kim jong-un out. if they hold off on military exercises for a time limited period, to allow for some of the progress he mentioned he wanted ered tothen he is impose thosexercises back on in six months or nine months. i do not think readiness will have collapsed in that period. president moon would like to see some created for these negotiations to move forward. i think as a tactical move, it

is ok. if they are taken off the table entirely that would be a that's that. tom: other than the emotion of giving us our dead a deceased from 66 years ago, what does called, kim, as he is what does he have to give up in negotiations? >> ultimately, if you're going to get to a real deal, is going to commit to a process of slowly removing nuclear capability. that is the complete verifiable and irreversible steps everyone has laid out, which will be literally having to have inspectors in north korea verifying those plans are closed , that they are not allowed to enrich nuclear fuel. it will be a massive agenda. remember how much farther ahead they are then iran. iran had not even tested a weapon. to get to

will almost be interminable. what i feel we have entered into here is process of ongoing negotiation that could last many years. people would say maybe it is better to have an ongoing process than the risk of immediate conflagration. president trump may feel that is enough of a win that he can stop the escalation of the process, an end we never get to an that people don't recognize is complete denuclearization. francine: how significant is it that the u.s. is keeping sanctions on north korea? >> very significant. more significant will be whether the chinese keep there is an effect. the chinese have taken steps over and beyond those that have been publicly announced and particularly on oil, which have had real impact. the chinese may decide it given that president trump got his moment in the sun, they need to apply pressure into negotiations

themselves. there have been reports of easing on trade across the border between north korea and china. to me, the maximum pressure really emerged from china. china, feeling under pressure from united states, the question is what does china do on sanctions? tom: thank you so much. greatly appreciate it this morning. we need to go back to singapore. haslinda? haslinda: tom, thank you so much. let's we get to my guest, listen to what trump had to say on international sanctions. pres. trump: you realize they are amazing, to reunite their national family, the menace of nuclear weapons will now be removed. in the meantime, the sanctions will remain in effect.

you have it now. let's get to our analyst, joining me. good to have you with us. you are skeptical from the start. you said nothing would come out oft and trump said h succeed without giving up anything, but he did. >> he did. the summit was a huge concession to north korea. it basically gives kim jong-un propaganda for the next several years, shaking hands with the president of the united states, this is something we would view as an end result of a long process in which noh korea would have to give something in return. as we've seen from president trump's statements, it seems like north korea is still not expected to really give anything tangible in return and we are seeing an outline of the united states offering more concessions coming down the line such as a potential white house visit, a potential stop to join military

exercises -- joint military exercises with south korea. it is questionable whether the statecould gain anything in return. haslinda: even though international sanctions are intact, there are some suggestions they may just remove them? >> we can both agree at this page, nothing would surprise us anymore. the white house will keep up with maximum pressure, this is likely to continue for the moment. we have seen this buildup of expectations from the public, domestically in the united states and globally, of some movement in the process. what we got today was low-key communique, far less than what the public expected. there might be growing pressure on president trump to negotiate at least something. this could very well put pressure or demands from north

korea for an easing of sanctions. see itertainly we would not outside the realm of possibility. haslinda: president trump suggested he has great chemistry with kim jong-un. now that both parties have a direct line to each other, is i fair to assume tensions on the korean peninsula will be eased? >> that is fair to say, at least for the next few months. we would be surprised if we saw a return to tensions, this is the silver lining up today, things could have ended worse. one of the worst outcomes would have been an agreeme in which north korea what place to denuclrize -- would pledge to denuclearize. the white house has realized that is unrealistic. they would have broken its

commitment and we would seen a resumption to sanctions. the silver lining is it could have been worse. there will be follow-up conversations. they would need to be better thought out and better plan. -- planned. certainly we will not see a return to the fire and fury within the next few months. haslinda: some people do not believe north korea would ever give up nuclear capabilities. no matter what the concessions are? >> we share that view. theoretically, certainly there are maybe security guarantees -- we saw them mentioned today -- it is very vague. they would include the pull out of u.s. troops from south korea, which would be politically, domestically, relations with south korea would be very difficult to justify. certainly that is something where north korea may in fact see that as sufficient security

guarantee and scale back or eliminate nuclear weapons programs. as it is right now, it is the only guarantee of regime survival. we saw from the perspective of kim jong-un, nuclear weapons brought into singapore and opened the door to shaking hands with the president of e ed rates. -- united states. that is very strong justification for having nuclear weapons and not an incentive to give them up. haslinda: we have to leave it there. tom, it looks like it is quite difficult to ascertain whether this was successful? tom: thank you so much, greatly appreciate it. there is a lot of this agreement on twitter. robert kelly is scathing, in s comments othe's press conference. this is a motorcade of a vintage, there is the president's limousine, showing off to chairman kim, the supreme

leader of north korea. he got a tour of the limousine a few hours ago. here is a substantial efforto move theresident on in his task as he leaves singapore. we move onto kevin cirilli, our chief washington correspondent. e, the not mince ton surprise seems to be the military exercises, the wargames, the president spoke of. explain in your grind of washington, the value of those military exercises to the pentagon? the north koreans view as a way toses -- send signals around the world of what they are doing. the u.s. military activity, sending those signals back. the president trying to suggest this is going to be the start of longer-term denuclearization talks but he also politically

from a stylistic standpoint, took questions for more than an hour, something we are not seen in quite some time. from the president's perspective, he is trying to sell this internationally now is something more successful. taking his critics head-on saying, the notion for him to come over here and meet with north korean officials took no time and he didn't pay money. notics will say that he did procure a long-term deal. tom: you look on twitter with theirmediacy of analysis, experts saying the president gave up this or that. from where you said, what did the supreme leader give up for north korea? think this is a north korea regime facing a dire economic situation, it mildly. when more than 90% of economic exports and imports are tied to

china and the sanctions that were placed on north korea, the president making the case in this press conference that the rhetoric of the fire and fury comments brought north korea to the table. democrats will disagree. the president said something interesting that should be noted. he would like to see congressional approval. that would mean he would need congressional ratification of any type of longer-term treaty he signs and maybe a treaty is coming, when kim jong-un visits the white house in the future. francine: you could also argue the president did not give up that much. g7,e reiterated with the the relationship with justin trudeau, one day they were friends and he believes justin trudeau gave a news conference behind his back, saying they were not going to be bullied by the u.s. and suddenly things turned. what exactly did the u.s. give up? trump notsident taking the bait in terms of making equivalency between

canada and north korea. he did double down in rhetoric against justin trudeau on the issue of trade, also at one point targeting german chancellor angela merkel, even china to some extent. this is a president who left g7 justinted, with what trudeau said and we are nearing the finale of what will come of nafta. the president making the case in terms of where trade is headed, doubling down, not backing down. al making a distinction wit the issue of trade and denuclearization talks, being separate things. francine: what i'm trying to understand is given the president's temrament and what we have seen of him in the past -- could he turn on north korea quickly? kevin: yes, he could. we saw that with the iran disarmament deal, the unpredictability in terms of the meeting in singapore, which no one knew would happen.

we saw with the cancellation of it, back on, back off. i think from the administration's perspective, that level of unpredictability, they try to sell as an asset. critics would say it hurts them. but that could very well, they could argue and say, scratch that, it is irrelevant. there was very interesting to watch the video they played befo t pre conference started, that they showed to north korea's chairman, as they are now referring to himki thisun on an ipad saying, could be your future but the choice is yours. the is something that president is saying will be decided by the chairman himself. tom: richard mcgregor nails this chineseook on the communist party, when kissinger went to beijing, they kept the word communist out of any communication and invented chairman mao. now were inventing chairman kim.

i want to go back to the informed criticism invading twitter of this and i would like to discuss the comparison here with what happened in 1993. what is new? it is a fair question. what frankly in terms of previous administrations of done, most notably the clinton ministration, in terms of trying to get north korea to the negotiation table, remains to be seen. there does not appear to be up at forward. the president saying next week senior administration officials will meet on this to hammer out details, secretary pompeo will be traveling to south korea and japato map o stregy. there was a moment at the end of the press conference, where it the president looked at secretary pompeo in the eyes and said you have to get the ball over the finish line. i are over the end zone,

apologize. they are on the playing field. the game is far from over. thank you so much, kevin cirilli, who is following the news conference of president trump with us. , thank you for joining us, is interesting to see markets not moving that much on the back of f the agreement and then the lack of detail we are seeing. >> absolutely. the road to denuclearization is very different to denuclearization. uncertainty. of there are more important things in terms of macro impact on global economics, the central bank meetings, the trade tariffs, g7. that is what the market will be focusing on. francine: how does central-bank

look at this -- do they look at the press conference for just ignore? >> they have to get on with normalizing policy. what we've seen so far from the press conference, is not having any immediate impact on growth or inflation outlook. haveey have a path, they alluded to clearly what they are trying to do with normalization. tom: seema, i want to go to a chart, this goes out the president's comments that the u.s. has twice a large and economy is china. as you know out of your work, it depends on how you look at it. this is per capita gdp, the south states at 52,000, korea, the massive capitalistic success of asia. china is way down here at 7000 or 8000 per capita, barely showing on the map is north korea, at 1300.

we forget the relative poverty of north korea as well. what is the economic strategy we can do to jumpstart this totalitarian regime forward? it is very early from where we are. if things continue in the way that trump is hoping, certainly there will be a combination from the south korean-north korean side. north korea is looking back to what happened with germany and the reunification of west and east. it was difficult. this is no way of thinking is an immediate solution and we will see happy days for everyone in the very near future. it is a very long process. --ncine: s haslinda: north korea, a poor country.

we talked about how to will benefit from an opening up. what is the potential in north korea itself? we have a mineral sector worth potentially $6 trillion to $10 billion. $10 trillion. >> from a geopolitical side, it is global. the economic side will be north korea. if we have sanctions being removed, that is a clear benefit. integration, a closer level to where south korea is. it is obvious where north korea's benefits liv "bloomberg surveillance, "bloomberg surveillance," -- benefits lie. haslinda: very little is known about the north korean economy what has been the impact of international sanctions? the international sanctions

on the north korean economy -- it has strangled it. it is at a point now where it is clear why we have come to this point today. it is because the north korean economy has been so severely affected. there is almost only one way to turn. if they continue on this way it will be very negative for the population. their economy can hopefully pick up over a number of years. francine: what does this mean for emerging markets in the region? because we are so thin on details --? >> we are so thin on details. we have no idea how long this will take or if it will proceed. for the time being, it is a positive. i do not see it having a major impact on markets or the economics of emerging markets. tom: how is the overall economy? i look at your work at capital

economics and now it possible global investors, how is the overall economy that is the backdrop for these talks? u.s. or north korea? tom: for the global economy? reporter: the global economy is generally on a solid footing. maybe the balance of where the strength, is slightly different to where we expected at the beginning of the year. it looks like it is the u.s. which is benefiting the most. europe is clearly seeing a slowdown. but instead of being worried about that we should be thinking about a reduction in growth. potentially more sustainable footing, for europe. global growth this year -- i have more concern for 2019 and 2020. i see a recession in the very near future. francine: thank you so much. principal global investors, staying with us. andill be back with seema

look at all of your market action. yen moving on the back of what we heard president trump say. your full roundup of markets is next. this is bloomberg. ♪

♪ isncine: good morning, this "bloomberg surveillance," i'm francine lacqua london, tom keene is in new york and haslinda amen in singapore. let's talk about geopolitics. m&a on track for one of the strongest years ever. this comes as u.s. tax rform and economic growth in europe unleashed many companies dealmaking instincts. last week, european banks took the spotlight with talks of a merger. for more on m&a activity in general, let's bring in the m&a.gan cohead of seema is still with us.

when you look at what is keeping m&a on track for one of the strong as years ever, what is driving it? >> this has been a letdown for viewers. such an exciting day. we are fundamentally in an unprecedented m&a market. for it beingtrack the best ever, surpassing 2007. what is impressive is the shape of the market. what we have seen in previous cycles, you hit the top, like in 2000 and the next year is 30% down. you hit the top in 2007, again, two sharp years of decline. in this cycle, 2015 was the peak. there was the second-best m&a year after 2007 then we have two years of gradual decline and suddenly 2018, up 40%.

a double take cycle, unprecedented. francine: is it funding? people see synerg or are they desperate? >> the main thing is confidence. growth, my at gdp economist friends say there are four economies. emerging, much are, argentina and japan. europe,a and japan, growing grid. if you look at corporate earnings growth, record highs, the global index for the last does go years, double-digit earnings growth increases. if you look at volatility, the vix, very little volatility atough 2016, 2017, trading we saw a big spike in q1 but now we are back.

you put everything together and do you worry about environment: bubbles? >> i worry about where we are in the cycle. futbol, we are about to start. we are in the second half of the cycle, i don't know where we are but we are in the second half. a lot of the discussions i have with clients are, attack is the best form of defense. if i can do a deal now that gives me exposure to growth segments where i extract synergies, i will have earnings runway for when the cycle starts slowing. tom: you just brought up an important point, the game theory, these deals that are it mostly a- is

strategic deal so that the other guy does not get a transaction? you can defend against competitors? it is a cycle which is strategic in nature, a lot of the deals we see are about -- how can i make my business a stronger growing business? moreesilient? how can i disrupt myself before others disrupt me? there is also an effect that if i see, my next-door competitors, my neighbors doing good, smart deals and the market rewards them, i need to react. tom: within that is the cost of money. we have a fed rate increase, quadratic and we get out -- where you see 2018 and 2019, where the game gets mo expensive to play? hernan: with regards our expectations of how rates will theease, i think for foreseeable future we will see

low cost of funding. that is nothing that concerns me. this normalization of rat ves confidence to the participants that the economy is normalizing, in good shape. i see the short-term rate increases as a positive. when you look at asian m&a, 27% this year driven by china. with china under greater scrutiny by the u.s., what our prospects for m&a here? when we look at m&a business in asia, first of all, japan a big feature. given the lack of growth in the japanese economy, japanese corporate's need to go out, a lot of the largest companies in japan are excessively exposed to the japanese market and we expect there will be more going offshore.

i do not want to rule china out. i think the china will come back. china is a huge economy, with significant global ambitions. do not write china off. parentheses in terms of, security concerns. we fully expect china will be back, active. francine: we've seen a huge jump in a number of health care deals. why is that and will it continue? hernan: we are seeing a jump in health care deals, in any number of transactions. --hink that it goes back to there has been so many deals in that sector and what i was telling tom earlier -- competitors feel compelled to react.

what is also interesting about health care is that there is a adjusting business model. at a point in time, many health care companies felt the need to develop new products, rmb d, a good wayand of developing the pipeline. it is a response to an adjustment in the business model of the pharma industry. tom: thank you so much. seema, think is a must. we continue our coverage. surveillance this morning, we continue to look at singapore. ♪

♪ tom: this evening in singapore, one step or chairman kim and

president trump, a great leap forward for sanctions remaining in effect. after 68 years, the korean war will "soon and." the president says the wargames will stop. pres. trump: we will be stopping the wargames which will save us money, unless and until we see future negotiation is not going along like it should. tom: back in washington, the federal reserve prepares for outgrowth of inflation and rate increases to calm. brexit, francine, once more, prime minister may enjoys a special kind of tory hell. this is "bloomberg surveillance," we are live from new york, francine lacqua in london and haslinda in singapore. when does the president leave? he is expected to lead

tonight -- leave tonight. it was supposed to be 10:00 p.m. but we do not know for sure. kim jong-un is also expected to me tonight. he was meant to leave it to :00. we do not really know -- he was meant to leave at 2:00 and now it is 4:00. we do not really know. we don't know when denuclearization will happen, how long it will take, what the timeline is or what the roadmap is. that is the issue. who won? time,s kim won this because he secure the wargames stopping and he managed to meet with president trump, something his father and grandfather wanted to do, legitimizing his position as a leader. tom: we will get to that in a bit. lots to talk about.

kevin cirilli in singapore as well. the president making many calls on the return trip to washington. we are into a federal reserve quiet to the markets. -- futures m not moving. argentinian peso having a difficult day and the philippine peso as well yesterday. francine: i agree. there is not much going on but that is a story in itself. stocks drifting. the meeting between donald trump and kim jong-un was met pretty much with markets ignoring it. more fixated on macro even the next couple days. treasuries steady, commodities next. they could have been another situation -- commodities mixed. let's get back to has linda, haslnda,- halinda --

leading coverage in singapore. we do not have that much detail. they're keeping sanctions on north korea. that's right. it is something the north really thountry. blanket sanctions, even exports from china which the north relies on, were put into effect. north korea gettacted in a big way. here is what trump had to say at summit, talking about sanctions. pres. trump: to reunite their national family, the menace of nuclear weapons will now be removed. sanctions will, remain in effect. the sentiment is

sanctions are in place now but there are suggestions that perhaps trump may be willing to lift them somewhere down the road. tom: very good. thank you. greatly appreciated this morning. the fed meeting tomorrow, we touched back on singapore in a minute. right now, we will turn to shahab jalinoos, with credit suisse, where we are in the markets, the quiet of the markets but we also dive into the summer. these big hric ts in international relations -- let's begin with a general conversation. where is the dollar in your fx team? shahab: the dollar is complicated. there is more dispersion and performance at this point in time. tom: which sectors are important right now? i totally agree with you, it is, located.

-- it is complicated. shahab: what matters now are u.s. interest rates. the market wants to see where the fed will take rates. the market wants to understand whether the fed is prepared to keep hiking, even if that has negative implications for the rest of the world. if that is the case, currencies, especially emerging markets will continue to be vulnerable against the dollar. the u.s. is doing well. volatility in emerging markets is relatively contained, in terms of how it is affecting other asset classes globally. emerging markets kent state pressured. -- can stay pressured. how data and europe will pan out over the next couple months, whether you get a resurgence of italy risk, for example --

without those factors, driving things will be a dollar story. the other side is still alive and there are issues to think about everywhere outside the u.s. as well. francine: were you surprised the markets almost ignored what happened at g7? i don't know if there is a direct link between what president trump is doing in korea and how the left g7. it seems because of this -- we may have seen more volatility in the markets -- were you expecting more volatility? shahab: what happened in the g7, a year ago, you would have had more volatility. we have had a lot of time to get used to the idea that president trump is not going to be especially friendly to the other g7 members. if you go back to q1, there was a lot of noise at that time around tariffs and these risks. when market prices moved. since then it has become background noise, the fact that

these are running indefinitely. the market cannot make up its mind whether these are real issues or just bluffs, part of a longer term negotiatin strategy. until there is clarity around that, i would imagine the ultimate effect on on a day-to-day basis will muted than what we would generally expect. francine: why does the market think it could be bluffs? if you look at steel and aluminum tariffs they are in play, now they are looking at cars. should they not take that seriously? shahab: economists are telling the market that steel and aluminum tariffs do not have much of a gdp impact. cars is a different story but there is still a doubt about whether this will spread to cars or if it is something being used as a threat. if we get to the point where you see much wider tariff

applications with a broader depth at how much gdp impact you could have, at that point we could imagine currencies, particularly exporting areas like japan, euro area's, at that point you could see more damage to those currencies. at this point, we have had so many months of getting used to the bluster around the negotiatio that for now, the market is not prepared to trade off them day-to-day. you talk about volatility in how emerging markets are still susceptible to fed movement. we have most emerging markets with better fundamentals, no risk of a crisis? shahab: this is where the dispersion story comes through. we have not had a clean dollar trend for some time. the end of april, asian currencies are up against the

dollar or flat, latin american currencies under pressure. that reflects the fact that the u.s. side has not delivered anything materially new for some time. rate expectations have been relatively stable. what is been happening, for example we had the italian crisis in europe, a mexican election soon, political unrest in brazil with strikes and other issues. argentina had to go to imf. fxpersion is the story in becauses coming of events elsewhere, not in the u.s. if the fed signals it can keep elsewhere, currencies that have had problems until now will continue to have problems. that is what we will be looking at this week in the fed. francine: thank you. shahab jalinoos of credit suisse

will be staying with us. coming up, michael nathanson moffettnathanson llc , founding partner, 6:30 a.m. in new york, this is bloomberg. ♪

♪ tom: good morning, "bloomberg surveillance," thrilled you are with us, said day tomorrow, lots going on including the focus on the president returning from singapore in the pacific rim. francine lacqua in london, i am in new york. lots of brexit is. first, here is taylor riggs. taylor: in singapore, president trump and kim jong-un have signed an agreement promising peace.

there is no timetable for north korea to carry out the promise of denuclearization. placeic sanctions stay in but president trump scrapping the military exercises with south korea. pres. trump: we will be stopping the war games, which will save us a tremendous amount of money, unless and until we see the future negotiation is not going on like it should. taylor: president trump said kim agreed to return the remains of soldiers killed in the korean war. larry kudlow has been hospitalized for a mild heart attack. a white house spokesman woman -- spokeswoman says he is doing well. prime minister theresa may faces crucial votes on brexit. the brexit bill is headed back to parliament and pro-european

lawmakers are threatening to vote against her. the key issue is an amendment that would give parliament the power to direct brexit negotiations if they reject the deal that may lance to bring back from brussels in ber. one of her ministers, has quit the cabinet and will back the amendment. the parent of mercedes-benz low vehicles in00 europe because of the omissions treating -- omissions cheating scandal. the company avoided what would have been crushing fines. 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'm taylor riggs this is bloomberg. tom: thanks so much. i want to go to shahab jalinoos of credit squeeze, let me -- this is thee,

philippines peso. away from argentina, turkey, the horror of 1997. this is the fillet the miracle aver 6, 7, 8 years as success story. we come up here to 53 as well. this is not duterte. why does weakness, if it is not the fiscal disaster of argentina? don't have to be at the argentina level to be in trouble. tom: you don't have to have the drama? inhab: when you have a drama a story like argentina, the market looks around and says, where are the other vulnerabilities? philippines within the asian spectrum is still the country considered lightweight when it comes to industry or fiscal position. that combined with uncertainty

around politics, differentiated from other countries in asia means it will be the canary in the coal mine. tom: when do the canaries get to -- the canaries get togethether3 counties over. what is the factor within your factor analysis where they coalesce? shahab: for it to really coalesce there are a couple things. if you get a signal from the fed that the current passed at the u.s. is too shallow and there is outside mr. that -- upside risk to that, you can expect tension down the line quickly. the other way it could happen is if you get a shock on commodity prices, let's say oil goes to $100 or above -- typically the

fragile emerging-market countries including the philippines, react negatively. we saw that before the crisis in 2008 as well, where high oil prices and rising rates environments c any emer markets. we are still some way away from that point in time. you have this more dispersed performance at this point. francine: what are you expecting dollar to do? shahab: for the time being, we are coming to a point in the summer with the world cup coming what youample, where typically see a somewhat lower volatility, especially if you can get past this week, without any major fireworks from the ecb or the fed. at this point i would imagine a more range bound dollar for a couple months and bounce back from more fragile currencies we talked about, potentially. down the line, a lot will depend on two things. what will come out of europe,

once the italians have to present the budget. september,ng october, if they take a populist stance at that point, we ca mption of dollar strength with euro taking a hit. if they do not, the euro has upside. the risk around european politics is something we need to watch. how the elections cannot out in mexico, brazil, turkey, major emerging market s with political risk. if they go badly, the dollar uptrend will resume as well. tom: shahab jalinoos with us. we continue our discussion on north korea and united states of america. martin gilbert at 11:00 today. stay with us. in singapore, london, new york, this is bloomberg. ♪

♪ pres. trump: we will be stopping the war games, which will save us a tremendous amount of money unless and until we see the future negotiation is not going along like it should. giving up wargames is significant, somng north korea has been wanting the u.s. to do. and singapore, trump giving that up. let'me perspective.

lisa, good to have you with us. it is hugely significant that trump said the united states may suspend u rean military exercises, he called them wargames which is a term north korea uses to describe them. they happen annually and are used to prepare military forces to protect south korea and allies and united states interest in the region. do not like u.s. military exercises in the region. this could be a huge win for china as well. it is a concession the north koreans have looked for for decades. it is huge. how do you think south korea and china would react? lisa: it is not clear that president trupoke with moon jae-in, the south korean

president, about this before he made the announcement. south koreans traditionally have supported u.s.-south korean military exercises, it is something that should be discussed within the bounds of the alliance. moon jae-in, the government, he is moreonsolatory, willing to engage with north korea for certain. should not be a political on in the summit and i don't think this should have ben the table as a concession. tom: thank you for your comments. we don't have time today to dive into this. we hope to have you on scene with a much longer discussion. i will cut to the chase. how does the pentagon react to a president doing unilateral military decisions without briefing from the pentagon? if hewe don't yet know had briefed the pentagon before he made the announcement.

it seems like he probably did not. tom: probably. lisa: it would have been highly unlikely that secretary mattis would have advised the president to do something this drastic in the summit. it is probably going to be very concerning in the departmentf fense. i can only imagine the people in south korea and the ministry of defense there will also be concerned. we will see where things go from here and whether or not this can be a walk back. francine: what kind of a timeframe are we talking about? this was left out as well, with does, 5,details, one, 15 years? lisa: the details about north korea giving up dismantling was nuclear weapons, not very specific or clear. a lot of the points had artie been agreed to in previous agreements -- had already been

agreed to in 1994. it does not look like there is a whole lot that is new. pompeo is going to be following up with north korean officials in the coming weeks to hammer out more specifics. right now, looking at it on the front end of the document, there is not a whole lot that is different. tom: we hope to have you back again soon. outstanding with the center for strategic and international studies, the korea chair. military exercises being suspended by the president. fed special tomorrow, 2:00 p.m., a live meeting. ♪ retail.

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near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. good morning, everyone. "bloomberg surveillance." the zeitgeist out of this summit is extraordinary. on twitter there is a raging

debate about what the president did, a cop was, etc., and with etc. wly -- accomplished, we are getting perspective from lisa collins. sure who jalan news is with us jalinoosit -- shahab is with us from credit suisse. lisa, i want to go to the heart of the matter, which is korea has to give up something, anything. is it simply about nuclear weapons and their capability? is there any negotiating stock they can give up besides weapons? the issue ofs human rights, which came up during the press conference with president trump. he raised the issue with kim jong-un, but it is not clear there was any substantive discussion about human rights. it is important around the world for people to see the u.s. president talking about the human rights issues because it is an important thing, and

talking about the prison camps and the 120,000 people who are still held in gulags in north korea is important as well. tom: i love the double adverbs "relatively briefly." you know that will get it done in terms of clarity. the clarity is a rules-based order, including south korea, china, japan, russia as well. called the shanghai cooperative. with the rules-based order, how will they adapt in the coming weeks? lisa: it is not clear exactly how they will adjust. there will be follow-up meetings between south korea and the united states and japan. president said he would speak with the south korean president following this. the japanese will clearly be concerned about everything that has been can -- has been discussed today. they will be most concerned about the extension of the south

korean military exercises. japan looks to the south korea-u.s. military allia cornen security. this is something that the chinese have protested for quite some time, thepension of military exercises. francine: the president talked about legality, that his preferred route with china would be to get the chinese president the negotiations. how would you deal with china? lisa: i think the president was talking specifically about a peace treaty discussion with the chinese and the south koreans, if it were to get that far in the new yoshi asia and's. we know with the agreement -- in the negotiations. we know the agreement, there were signatories to the agreement, and the chinese would have to be involved with any

peace treaty agreement to legally replace that, the armistice agreement, with a peace treaty. the southn was brought in because the south koreans are not a signatory to thearmistice agreement, so chinese discussion would involve both age -- both a peace treaty and about denuclearization, how to get rid of north korea part nuclear weapons. and also verification going forward. francine: how would the u.s. measure success in this? lisa: one measure of success i would look for in this summit would have been some discussion that a verification list north korea would have provided to the united states. that is something that basically gave the united states a list of nuclear weapons materials, nuclear war permits -- new their warheads that north korea has, any ballistic missile

technology, any of the ballistic missile launch vehicles that were part of this. all of that could have been easily discussed, but i do not think it was during the summit, so that will be a job for secretary pompeo and other officials to follow up on. there -- issa, as there a sense that trump gave up more than he wanted to or more than he thinks he did? he said there is no need for much preparation going into the talks. something that has concerned experts, and it is concerning to me that he gave up the concession of the u.s.-south korea military exercises without realizing what a huge concession going forward, nailing down specifics about how a verification process for dismantling north korea's nuclear weapons will work will be very important. i do not know that president trump was familiar with all the details about what a

verification process would look like. without specifics, it is hard to tell if north korea is serious about this process. some initial response has been pretty scathing. one expert did say that we flop, but it is floppy or than we expected. is there an upside to all of this? is thate upside tensions have been significantly reduced over the last six months in the region, particularly the ongoing months, when negotiations were going on between the united states and north korea. north korea is not testing any missiles or nuclear weapons, and that is positive from the perspective of experts. it will take much more negotiating with north korean officials to get a handle on what they intend to do going forward. has aisa, liz economy

wonderful book out. tell us about the new china, president xi, the new approach of the communist party in china, and the relationship across the river to north korea. lisa: after the 19th party china, disease and pain was able to consolidate a lot of power. seizure inoom -- xinping wasi able to consolidate a lot of power. it really shows that kim jong-un ping are looking to a different relationship going forward. they have a lot more room. tom: we ask the questions because we know what the answer is going to be, and i love your answer. what is the next meeting going to be between the leadership in

china and the leadership in north korea act of that is a changed meeting, isn't it? yes, the north koreans have gotten almost everything they wanted out of the summit. they have gotten legitimacy for the north korean leader. he has gotten recognition on the world stage. he was in singapore yesterday taking selfies. that is a first. orthe space of only two three months, he has met with the chinese president, with the u.s. president, with the south korean president a couple of times, and he is getting even more recognition. them look how him and our leader is, look at how many leaders are looking to him, and look at how powerful he is. lisa collins, i want to go back to the late senator, john

glenn, who did a lot of work in longrplane or korea a time ago. did president trump represent the former military, and the president and future of military of the united states in these lisa: talks in singapore? -- talks in singapore? i highly doubt it. i am not sure he discussed suspending military exercises between the u.s. and south korea with secretary mattis. south korea will be very concerned over what happened here. there will be further discussions with the south korea alliance. thexercises are geta big part about how we our military to guard against and defend against in the region. it will be important for us to continue military exercises. we do not know if there will be some movement to walk back the

statement by president trump later going forward. tom: lisa collins, thank you so much for your generous time this morning. manyld note that our conversations with admiral savita's -- he has been adama about exercises with the military around the world. taylor: president trump says u.s. and north korea are ready to write a new chapter. a lot of the words have to be filled in. the president and kim jong-un signed a document in singapore that leaves details for future talks. indicate a promise to denuclearize. but there will not be any in immediate release from the economy. tom: to realize there you may's in -- to realize their amazing of nucleare menace weapons will now be removed.

in the meantime, the sanctions will remain in effect. taylor: president trump said kim has expected an invitation to visit the white house, but there is no date for that just yet. the split in opec over to whether to increase oil production is getting wider. saudi arabia and russia have gained support for lifting limits. iraqi has joined iran and venezuela for extending the proposal. 22 inill meet july vienna. in the u.k., the economy is creating jobs at a healthy pace. british employers added better jobs atected, 146,000, the end of april. thejobless rate is at 4.2%, lowest since 1975. it suggests the economy has some spare capacity. the debut of the world's biggest maker of electric car batteries has produced its third

billionaire in two days. co. rose 10% in its second day of trading after soaring 44% on the first day. that pushed the net worth of shareholder pay passed the $1 billion mark. the founder and his top aide became billionaires monday. global news 24 hours a day on air, powered by 2700 journalists and analysts in more than 120 countries, i'm taylor riggs. this is bloomberg. tom: thank you so much. it is the far side of the world, the president leaving siorenow,d through hawaii on his way back to washington. opinion,rote in his "it is always challenging when a president returns from a foreign policy trip." i believe that is some distance from the fullerton hotel, that

many of you will know in singapore. we are going to continue on here with the headlines off a lengthy press conference. the major headline to be picked up here is the president's statement, in his own words, that we will stop working with south korea. from london and new york, this is bloomberg. ♪

francine: -- taylor: this is "bloomberg surveillance." the u.s. senate once reserved penalties on zte. president trump has criticized -- is criticized for easing restrictions to get company's back in business. said there may

be a fatal flaw in a attempt by microsoft women eng who want to pursue gender discrimination claims as a group. the judge says the previous decision required plaintiffs to point to common corporate policy that affected them adversely. microsoft denied discrimination and opposes the women being a class. as publishers are stepping up their criticism of the new facebook policy. they are urging mark zuckerberg to r categorize the promotion of nude articles as political -- of news articles as political content. that is your bloomberg business flash to tom? francine? francine: thank you so much, taylor. the fed announces its policy decision tomorrow. investors will be watching for an update to the update to the central banks rate pause.

thent to ask you about pound. euro, pound, we have a competing chart. theresa may has dodged one rebellion and now she is trying to dodge another one. we have a key brexit legislation heading back to parliament with lawmakers threatening to vote against her. does the pound move on the back of it? shahab: the market is still year,g in hikes for this which suggests that the market ultimately expects the political tensions that we have now to subside between now and the end of the year. my fear is that if this turns out to be more of an upset in terms of what materialize a verys, then that is benign outcome and the market may have to consider a rate hike

from the bank of england, is still likely. i am looking at the levels 8850. it will be interesting to the lease. there is corporate business as well. all of media and telecommunications is absolutely transfixed by the fox soap opera soaphe rest, the sky tv opera. there is something to wait for -- the at&t/time warner decision. it is an interesting pairing of skills in telecommunications with michael nathanson's skills in content. michael, which way is the decision going to go?

michael: i think we all think it is going to go in time warner's favor. time warner is going to be able -- at&t is going to be able to buy time warner. tom: that will be game changing for your and craig moffett's industry. michael: we expect in a day or two to see comcast come in and put in a topping bid for fox above disney's bid. we would see that probably within a day or two, and who knows what verizon would do once they get the greenlight light from the government as well? tom: those are the huge consolidations that we see. on fromthey are moving at&t ande warner to the competitive stakes with comcast. if they are going to topic the competition -- top ticking the competition with disney, what are they top ticking toward? comcast in value for

the acquisition of european sky? chance tot is the build a consumer platform like netflix across europe with sky's content. europeane biggest buyer of rights. it gets comcast covering outside the u.s. and into a new market, which they have not been able to do for a long time. francine: this seems to be bigger than just this deal. important actually be for the future of all m&a in the united states? michael: it could. there are a couple of deals hanging in the balance, and it is a test about trump's, and to what extent and what is behind their ability to block on these deals. there are a lot of bankers waiting to see if the doj will , and if they win or if they lose, the question will be if they lose, what do they do after the loss?

do they try to appeal, look for an injunction? a lot of people in the m&a space, this is a good sign, a good test to understand thfuturs to trust. it,cine: how important is this provided by u.s. district judge richard lee, and he does -- this presided by u.s. district judge richard lee, and reputation of being unpredictable. person, oneis one man, one decision -- how do you is a fair comment. he was also involved with the nec you comcast merger, and he agreed with that. when we looked at this deal, this goes more along the line with the comcast nbc merger. you are right.

look at the spread between where time warner trades and where the deal is. it is wide for the decision today, six bucks or so for literally maybe a week's worth of work. i think your question space to the fact that the gap is so wide, people do not trust the one-man opinion here. francine: michael nathanson there, research analyst with moffettnathanson. may's flagship conference in the house of lords, and joining us now is jim. and stay with us from new york, shahab jalinoos. talk about voting today. it starts at 3:00 p.m., and what we need to watch for is article number 19, known as a meaningful vote amendment.

jim: that is the meaningful vote parliament --fts it shifts from parliament and the government, which parliament does not want. francine: how do we know the way this is going? basically this amendment would give parliament unprecedented power to direct brexit negotiations as lawmakers reject the divorce. jim: that's right. they have control of parliament with the help of the democratic union party of northern irish -- the help of the democratic union party, the northern irish party. it is a very slim majority, and we will see it. that is why it is going to be a dramatic vote. francine: one of the ministers resigned because he wanted to

voice concern about the way this was going. will this influence the vote? jim: it certainly will. this vote underscores that the real exit drama is taking place in london, not in brussels. the e.u. negotiators are basically still waiting for the u.k. side to put together some sort of proposaland the government cannot even agree on what it is going to pose. -- what it is going to pose. francine: how clear is it that the government has seen only challenges that it will face? every day is a new challenge for theresa may's government or chief faces pressure from the right, from her foreign minister and her environment minister, boris johnson, and a fairly raucous and vocal minority of brexit extremists. the other side, there is

plenty of conservative and labour members of parliament who either up lose brexit ornette -- opose exit or keeps britain in the trading universe of the european union. tom: how is the british economy? i get mixed and crossing knowles -- i get mixed and cross signals. how is the british economy? if you look at the unemployment numbers, which are very low, you would conclude that rate hikes are needed, and that is why the market is pricing in hikes by the bank of england. on the other hand, wages are relatively soggy, and you still have investment uncertainty. that is quite clear as well. so you have a mixed environment, which is one of the reasons why the pound has been range bound for so long against the euro. president must

return to the maelstrom of the beltway in washington. ports are that he will travel from singapore to guam, and then across to hawaii and then home. he does this on the 94th birthday of george herbert walker bush, pulled out of the battle of midway. this is not live, this is a tipped playback. he is in the air right now, on his way back to washington. if we can move from this to the tweet from richard haass, the council on foreign relations. let's see if we can bring this up. much like we have heard from others, the singapore summit statement is essentially aspirational. no indications of .enuclearization ambassador haass goes on to say what is most troubling about all this is the u.s. gave something up that is tangible, namely the

u.s.-south korea military exercises in exchange. thank you so much for being with for this coverage from singapore. we greatly appreciate it. i think we are going to be doing more on brexit in the coming days, aren't we? francine: i think we will keep an eye on korea and the president's travels on to the south and other countries in asia. tom: we will continue our coverage across all of bloomberg's that form as well. i will continue on bloomberg surveillance, bloomberg radio, with jonathan ferro. this is bloomberg. ♪ ♪

alix: light on details, heavy on

rhetoric. president trump says the u.s. will stop wargames. kim jong-un will work towards complete denuclearization. investors want details. it will only take one member to bump the fed to four hikes issue. test, 15 amendments head to the house of commons for debate. onemost important is the that gives parliament the right to vote down the final deal. david: welcome to "bloomberg this tuesday, june 12. alix: t markets took it in stride. on details, but the fact that it happened and there was a statement is a huge win. david: there was the question whether they would have a written statement. they laid out at least