. >>> let's continue this conversation with peter spiegel over at "the financial times."here is a surprising lack of market fallout here. that doesn't mean the wheels are not turning in washington, d.c is this something we could see significantly build up as a market risk in the coming weeks and months >> i've been struck that almost all geopolitical risk has been ignored by the market. it's not just a trump trip the summit with putin was the end of a week-long trip that in europe was a disaster. at the end he plays kissy foot with vladimir putin. beforehand he was beating up on angela merkel, theresa may, all the allies were getting their heads kicked in by him it was a week where everything we had come tos a sometime by the western -- come to assume by the western union had gone away. there's so much noise right now, the markets can't absorb it and decided to ignore it >> i think markets are trying to quantify what weakening relationships with europe means. does it mean heightened rhetoric on the trade front, more trade tariffs imposed by the european union? what is the

some of that risk as president trump talks about auto tariffs let's bring in peter spiegel from "thecial times. i look at your fine paper online every single day i see china and trade in the headlines. the amount of stuff we send to china is relatively small, especially compared with what we send to europe >> in great fairness we put german automakers on the front page quite a bit of late if you look, the market to watch here is the dax. europe as a whole, yes, the eu is the world's largest market if you take it as a whole the exporting engine, the trade engine of europe is germany. if you look at the dax, it's down significantly on the month. it's up today a bit. but that's sort of the backlog of concern over the german political crisis you've seen a huge downfall over the course of the last month in the dax. year-to-date also hugely down, volkswagen, daimler. these are the big german manufacturers that all americans know about and they buy. these are the ones that will get hit. it's not just german exports to the u.s. but german cars made in south carolina and exported. the volume

. >> yes >>> for more, let's bring in peter spiegel of "the financial times.are on the same page the president wants to make a deal european politics, you know it better than i do doesjuncker have the power to make a deal? >> actually on trade he does this is the one thing about the european commission, all the 28 member states have delegated responsibility for trade in particular to the european commission so it is in his brief to strike a deal on this you have to remember, the rhetoric from brussels since the trade war started is we will not drop our guard with a gun to our head they feel their ally, their country they had done trade deals with for generations has basically put a gun to our head and said stop or i'll shoot. they don't want to negotiate on those terms. that said, juncker is coming with some things he wants to sell to trump. i don't think -- you're asking if they're on the same page, i don't think they're on the same page this is what juncker is coming to town with he's worried about cars. germany is the big export engine of europe. it's one o