tv Bloomberg Markets European Close Bloomberg April 9, 2018 11:00am-12:00pm EDT
vonnie quinn. this is the european close on "bloomberg markets." ♪ mark: here at the top stories we're covering from the bloomberg and around the world. deutsche bank is taking the reins of europe's investment bank after weeks of turmoil. can he steer the bank through its current chaos? russian markets tumble after a new wave of u.s. sanctions leave the kremlin scrambling to help its tycoons. an exclusive interview with another finance minister. his views on the future of europe. have a look at what is happening to european equities right now. we will get to the chart. mixed fair for europe. we are up by 6/10 of 1% and
gaining for the second day. we have come off the highest as greece is higher and austria is lower. that gives you a flavor after two consecutive weeks of gains for the european benchmarked it all the currencies rising against the dollar today. this is a great chart showing you the ftse 100, which is the worst performer among major developed market gauges. are growing more optimistic about the earnings outlook for british companies. they boosted the benchmarks profit estimates by about 3% this year, more than 1.3% increase for the euro stoxx 50. 2013ighest level since principally because of the gauges. energy and banking members come paris analyst.p the white line is the earnings at valuations and the blue line
is the ftse itself. let's talk about deutsche bank. we have a new chief executive. under cryan, he was there for under three years. he turned up in july 2015. deutsche bank is the white line. the stoxx 600 banks index is the blue line and you can see a big disparity of performance. both asset classes have fallen, but as you can see, under cryan, deutsche bank is down by almost 55%. that is total return. this is sure shares and the stoxx 600 banks index is down a mere 20%. it's one of the reasons why we saw mr. cryan pushed out of the door. a big disparity in performance. deutsche bank shares sank to the lowest level. with deutsche bank, some of the questions when it comes to the new chief executive. what is he going to do with the investment bank and how much of
a change is it going to be compared to his predecessor? this is the bloomberg world bank index. we don't talk about it every day, but it's a wonderful gauge. we have 146 members and this tells you the predicament that he finds himself in because deutsche bank is the worst performing global letter. date out ofyear to the 146 members on the bloomberg world bank index. looked at the an hour function and 50% of analysts have a buy rating on deutsche. 42% have a hold. is an month price target 11% upside. if it so happens, 11% upside from today's level. julie, how's it looking over their? re? abigail: julie: ijulie: we are g financials participate in the
rally and the second-best performing group of s&p 500. for all three major averages is particularly acute in the nasdaq. we will look at that and the moment, but the bio techs that stand out. you were talking about that deal with novartis and i want to look at that stock again. agree to be acquired by novartis so we are seeing a big jump in those shares, up 77%. this is showing the appetite of large-cap drugmakers for these rare disease treatments like the ones that it makes. we are seeing some of the other gene therapy companies get a boost. .his company up almost 30% therapeutics up on speculation that the already pretty fast-paced m&a in the industry that we have seen could potentially see some more. broadening out to the broader s&p 500, take a look at the bloomberg. we have been talking about the
200 day moving average and you see it on the top chart and we bounce off of it once again. a little bit of material to the bulls here today. on the bottom we have the percentage of s&p 500 members trading above their 200 day moving averages. that number is also bouncing a little bit. i mentioned we would take a closer look. if you look at some of the big within large-cap technology, yup apple and alphabet and amazon all rallying. not helping the shares, but it introduced a new red iphone. that's a version of its iphone eight and iphone 8 plus. that is to fund research to fight hiv aids around the globe. as for one of the other big cap tech companies, it is up today. over the past month, not so much. facebook is what i'm talking about. ahead of mark zuckerberg's testimonies this week before congress, he's reportedly already in washington meeting
with folks. we have seen a 1% bounce in stocks today. beenthe past month, it has difficult for facebook shares to gain any traction. mark: thank you very much. let's get a conversation on the future of europe now. , theng me now is wopke finance minister of the netherlands. thank you for joining us on the european close on bloomberg television. , arecan start with trade we on the brink of a global trade war? thank you first for having me, mark. it's an honor and a pleasure. it's great that we are discussing this very important issue. if you ask me, a trade war is a lose lose situation and it clearly is something that we should avoid between europe and the u.s., particularly because we are friends and allies. it is something we should make sure we avoid. mark: what is happening right
now between the u.s. and the eu in negotiations to ensure the u.s. does not impose these aluminum and steel tariffs? we have a may 1 deadline. do you think that the eu and the u.s. will reach this deal to stop tariffs from being inflicted by that date? it is clearly something we should try and we should give every effort we can. it is great that we are having a dialogue again. we should continue to dialogue and we should make sure that on both sides of the atlantic that this is not going to happen. because it is in the interest of our citizens on the side and the citizens on the u.s. side to make sure we're not going to go down this alley. mark: what should the eu do? will it retaliate if the u.s. does impose tariffs?
luckily we are not there yet. it is frankly also something i don't want to speculate on. it is something we should make sure we avoid. we have been partners on a range of issues over the last decades and clearly also on trade. that is the type of dialogue we should continue. if there is reason to talk, let's talk. let's make sure we do it in interest of citizens on both sides of the atlantic. that is our joint assignments if you ask me. mark: when it comes to partnerships, could you forge the eu and the u.s. some sort of common approach? might there be a middle ground, a come o, and approach when it comes to putting pressure on china and steel capacity and intellectual property theft? if you forge a partnership with the u.s., some are calling it a trade coalition of the willing.
might that be a way that tariffs are not put on eu steel and aluminum? i don't think it is up to me as the dutch finance minister to speculate on this specific issue. what is important for me and for all my colleagues in europe is that we make sure that we make the right decision between the u.s., europe, and we continue to have as much free trade as possible. if i were an american pundit, i would like to speculate on other things, but i'm not. mark: what i'm sure you can talk bill.is that the u.s. tax does tax reform in the u.s. and violate wto rules? does it lead to discrimination against european companies? where do you stand on this? as a european union, we
have articulated that we are worried. i'm sure you are well aware. we are also in close contact ,ith my american counterparts mnuchin, who has written back to us. there are number of hurdles to take on this specific topic. there is a bit of warning news, but at the same time, we are studying it as is true of the previous topic. it is something we should continue our dialogue on. are growingy there tensions between the eu and the u.s. when it comes to matter of tax and trade. let's bring in taxation of digital companies. where are you when it comes to this issue? are you willing to move forward with a commission proposal or is it imperative to see where cap and on a global level when it comes to taxation of digital companies?
the digital economy is there whether we like it or not. personally i do like that it is there. that also means a lot for policymakers like myself and it has implications in terms of tax. now what the european union has onask is let's look into if we should impose taxes on digital companies. it is worthwhile to further explore this. we are in the very early stages, but it's a dialogue that we should continue on a european level and hopefully is time goes along also on a global level. mark: if i could ask you about brexit, we have just come off the back of a summit a few weeks ago where this transition agreement was reached. at this junction with the year to go and sell the u.k. -- until the u.k. leaves the eu, where do
you see the eu-u.k. relationship? at this juncture, where do you think that relationship is heading? frank, to me brexit is a tragedy. it is clearly not in the interest of the netherlands, my country. neither is it in the interest of the european union. it will turn out to not be in the best interest of britain either. the real tragedy here is that it's not going to be a british middle-class. it's going to be the middle class that's going to pay this bill and not boris johnson. frankly if you ask me, this is lose-lose. if there was any way to avoid it, i would love to, but the british are determined and now we need to make sure that we make the softest brexit as possible because that will be in the best interest of both parties involved. mark: do you think the remaining
givenbers remain united their differing interest in trade relations with the u.k.? up until now it seems as if the eu is speaking as one. clearly the next year will be a big test of that. it has been speaking as one and will continue to speak as one simply because that is the way the european union is working. all members are also very much motivated to continue in that way. and we will continue in that way. mark: finance minister, just a final question. is the eu speaking as one when it comes to further integration? the dutch prime minister has said repeatedly over the last couple of months that germany and france should not seek to make decisions for the rest of europe. do the dutch feel left out? you have stressed that you do not see the need for french
propositions like the finance minister, the budget for the euro area. where do you see the dutch when it comes to your role in europe once the u.k. has left the eu? what to me is very clear is that we are committed to europe and we will continue to be very much committed to europe and the euro and eurozone. the big question here is of course how do we move forward? how do we continue with reforms? how do we make sure we repair the roof while the sun is shining? on the one hand, there is the big task of member states getting their own house in order. next to that we have a couple of challenges such as the banking that we have to face together. i think we have to do both of these things. that is of crucial importance. what is also of crucial importance, and that is the key
thing the prime minister and i have been stressing, is that it's an inclusive process. all member states should take part in. we are very motivated to take a role in that. mark: finance minister, thank you very much for joining us today. that is the finance minister of the netherlands. vonnie: still ahead, deutsche bank up 1.5% now amid a broader rally. still trouble ahead the potentially for europe's largest investment bank. that's next. this is bloomberg. ♪
of london headquarters, i'm mark barton. counting you down to the european close. deutsche bank's chief executive gets the ax after losing more than half the banks value during his tenure. the new chief executive is a three decade veteran of the lender and a retail banking executive. he says "the challenge ahead is a big one in the new leadership will not accept missing targets anymore." the banking professor, thank you for joining us today. is sewing the right man to take deutsche bank forward? is he the right man? >> he is the right man because he was there. they were looking for other candidates and that somehow the whole thing sped up and they needed some of the immediately and he was there. origin and very much in his career as well.
mark: it seems the board is divided on at least some measures. it seems the head of the investment bank is one of them. do you think the divided board can close ranks behind the new chief executive? hans-peter: i think maybe they can do it more easily because they really come from inside the bank. we know the different fractions and groups within the bank already and maybe bring them together with less conflict that maybe the predecessor, who did really create rather negative mood within the bank. vonnie: his background isn't risk management and audit -- is in risk management and audit. does that show he might take less attention and risk-taking? hans-peter: now we have seen how fast you lose your job if you are not in line with the supervisory board.
they have the power to throw him out if he does not follow this line. meet with the most important owners of what the role of investment banking will be. it is special as long as it's a kind of hybrid. it's a traditional german bank and at the same time it's an international capital market institution. they are strong at the moment but they get into a little bit of trouble with both roles. vonnie: u.s. operations are under this project that's ongoing. can deutsche bank stay in the u.s.? can it compete with the likes of goldman sachs and morgan stanley here? hans-peter: that is a difficult because these banks make great profits in the united states because the competitive situation and united states is much more positive for these kind of banks. it is much easier for them to make profit. deutsche bank has not got a strong basis. it has not made a profit for three years now. the capital basis seems to be very weak.
i have some doubt about the united states perspective for deutsche bank. on the other hand, it must stay the international bank of germany. it should not have links in the market market. it should be into the global capital market. vonnie: citigroup is saying today the new ceo but the same old problems. just because there is a new ceo, will that make it easier to come up with some kind of winning strategy or to implement that strategy, professor? hans-peter: it might because the people working at deutsche bank need some positivity. they need to have the feeling that it is fun to be here. krein was not able to create that. it was always negative news from inside the bank. this might be a little bit better. on the other hand, it would've been nice if deutsche bank could have waited longer to let john cryan really do the dirty work and the new boss would have had the chance to develop new things and be like the new leader to new horizons. now i'm afraid the new ceo must
be both. you must finish the work of john cryan and at the same time motivate employees of deutsche bank for any future. commerzbank merger more likely now or less likely? hans-peter: it is more likely, but it is still improbable. it is really complicated bringing these two banks together. the problems would not be away. billy thing would be less competition on the local market in germany. commerzbank and deutsche bank responsible for this intense competition on the german market but the existence of many regional banks, which are also in the business of small and medium-sized enterprises. mark: professor, thanks for joining us today. great to chat to you. he is from the university of hot time. this is bloomberg. ♪
vonnie: live from new york, i am vonnie quinn. mark: live from london, i am mark barton. the european close roughly five minutes away. vonnie: the chinese president is set to address the forum in asia tomorrow. investors are watching to see if he will announce any opening of chinese markets. tom mackenzie reports from beijing. tom: geez in pain will be walking a tightrope when he addresses the annual boao forum. they will see if he takes a tough stance on trump's threats and showing that china remains open for business. beijing has said it would fight a trade war to the end at any cost. but he will want to avoid stoking tensions that could risk derailing the chinese economy. we have been told to expect significant announcements on moves to further open up china's market. whether it will be enough to
assuage complaints from china's trading partners, including the u.s., that the reality often fail to match the rhetoric remains an open question. tom mackenzie, bloomberg beijing. mark: investors are awaiting that speech and waiting to hear if he dials down the rhetoric when it comes down to the traits that between the u.s. and china. stocks are mixed with the ftse up and a little changed for the dax and the cac 40 today. check out the currency board with a number of currencies rising against the u.s. currency. i will leave you with this board as we approached the european close in just under four minutes time. this is bloomberg. ♪
session, a small gain led by tech media and insurance rising for the second day. the european benchmark after gaining the best run since february 23 as investors alike president xi's speech on tuesday. will he dialed down the rhetoric when it comes to this trade spout we have seen with china and the u.s.? deutsche bank is the big dutchate story the succeed after a meeting with the back supervisory board. gained 1%, interesting that the decision and did a tumultuous couple of weeks for cryan's position shares downan,
25%, and then up 4% on last tuesday's shares. price to book, the stock losing its value. price-to-book, .37o versus .90 for the stoxx 600 bank index. but in perspective, it is 1.5 times its book value. on this massive day for the lender. buy -- $218 ato share in cash to expand its therapy forgene treatment of rare diseases. 88% of both where fx closed on
friday. the acquisition is the first since their new executive was named in february with efforts to focus on prescription medicine. s agreed after novarti to sell its stake to a partner for $13 billion, giving it more firepower for pharmaceutical operations and acquisitions. shares in little down on the cause, and that is a look at european markets. vonnie: a lot going on in the world making emerging markets appear wobbly today. the dollar index is a little weaker, and sterling is one of the beneficiaries. korea -- they are feeling the deafening effect because of the trade worries and sanctions.
6.30,now, we are above there is talk that the chinese are looking and seeing what depreciation might look like and with intervention might be needed in the market. that is a long way off from happening as we understand -- and we had the 10 year yield up at 2.81%. gmm, take a quick look at global macro movers. by 3.4%, andweaker bonds selling off all over the place and russia, and china as well. we see moves into bonds in china. the canadian dollar is also having a relief rally at 6/10 of 1%. we can tell that nafta negotiations might be looking like they are going well. mark: let's turn to russia.
the nation in the news today. after the u.s. slapped sanctions on russian companies and oligarchs. to start with markets, it feels like 2014, doesn't it? right, it is a slow-motion reaction because sanctions were announced in washington on friday afternoon and markets here were still open. there was some software not in picked upense -- it momentum today when markets reopened and investors reassessed just how broad these moves against the pacific oligarchs and the companies were bre. backnot the stock market to the levels they were in 2014 at the ruble back to levels in 2016. it has been a shock.
what is the reaction from a repeat in both internally and externally? they promised steps to limit the damage for oligarchs themselves and it is not entirely clear what those will look like. in the past they offered mechanisms to help refinance debt. the makeenge is for oligarchs targeted with his several big companies, the aluminum producer and a holding company -- they are traded in the west and have been hit by sanctions. they can't sell aluminum, and it has put their business to a halt. the kremlin has become with mechanisms to give them access debtollars to pay off keep their business going. to be handoffs to other entities that are protected by sanctions. we don't know what that will look like yet.
as for retaliations by the russians -- mark: please carry on with the territory measures from russians. greg: on the retaliatory side they have said they will have harsh retaliatory, but they don't a level they can section american oligarchs that have a big impact on the u.s. stock market. with that means, we don't know yet, but there is talk about pressure on u.s. companies that invest your would be for policy things. it is hard to forecast at the moment. mark: greg, thanks for joining us. let's get back to the markets coming us. markets showing a strong rebound michael bellces -- joins us with trend concerns perspective,t into
that into perspective for us, michael. michael: you need to remember the size of the numbers, we need to think about trillions instead of billions. the global economy is a $80 trillion economy. the chinese economy is coming up to $13 trillion. i would talk about trade tariffs we have to bear in mind that in the worst case scenario, we're talking about $150 billion and tariffs on 25% of that. that doesn't take into consideration other countries can be sucked and? in? michael: bear in mind we are -- chinaominal numbers grew by 9.7% last year. even if you double travel it cometh we are talking about small numbers in the grand scheme of the global economy relative to the growth rate of these economies.
it is just very important to the perspective exactly what size the measures we are talking about. we hear billion septic that is a big number, but when you put that in perspective, it is a less big number than originally. and with imports from the u.s. and china -- you really think it is going to be that little of an impact? there is a said if 10% tariff on every export and every partners exports, that two or 3% in the u.s. gdp growth in the short-term, at least in the first year. michael: i think what we have to remember is it is lose-lose for the global economy if you have an escalation and put tariffs across the board on all exports. because of that we see the market for on this in the last couple of weeks. when you get is on tariffs the market sells off, and if it looks like it is not as bad as
people thought the market rallies again. iswe head into the midterm, going to be clear for politicians around the world in china and the u.s. -- is not in the best interest for their but measureslitics which the stock market is going to block -- which the stock market is not going to like. andie: it is to be threats promised measures to be taken at some point into the future and didn't impact markets and that some point with them higher. now they are impacting them? why is that? michael: you are seeing a peak in the case of global growth. you look into months ago, was happening is the data was improving. were gettingys better across the world, and against that backdrop it didn't matter what is going on in politics, just ignore politics and focused on improvement in the economy.
now that is changing at what we are seeing is moderation and pmi surveys. are collapsing, but they are saying it is not quite as good as it was months ago. against that backdrop all of don't have that comfort like it we had over the last 12 to 18 months. markets moved higher in that people --ere for some when you look at the outlook of the global economy the next six or nine months, it's the looks healthy. businesses and consumers are still confident. mark: what worries you about u.s. corporate rates? michael: anxious rates go up, and the like you see the corporate debt ratio rising. partly through buybacks, what that means is that this time around it is going to other way around, sourcing corporate debt arising come and with
interest rates going up will go further. there further along in increase in the corporate debt service ratio than you would have expected if you just look at interest rates. i think that is initial for the us economy this year, but once we had the next it could be more of an issue. mark: michael bell, global strategist at jpmorgan. vonnie: let's check in with first world news with courtney donahue. to thinkent trump is about a stupid trade deal with china can map and the u.s. imposes tariffs on chinese made slept ind while china 25% tariff on u.s. both vehicles. china wille said remove trade barriers because it is the right thing to do. president trump's top security officials met today on syria. person familiar with the matter said the president wasn't scheduled to be at the meeting.
president trump has warned syria will pay a big price for a poison gas attack on a rebel stronghold and activists say at least 40 people were killed. thatan, the president last at the u.s. as a country marked a national nuclear they. he said the u.s. has failed to destroy the landmark deal that set caps on the nuclear enrichment program and president trump has warned the rest will not recertify the deal with the next deadline comes up in may. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. donohoe, this is bloomberg. vonnie: coming up is the battle of the charts, kailey leinz, and the winter of thisvonnie: battl -- the winner of this battle moves on. treasuries.ng at
vonnie: we have breaking news, testimony released at this hour. marks it works testament for wednesday, we will be pouring over these headlines and will bring you what he says in just a very little bit. facebook stock up apple 5% right now. it is time for the global battle of the charts are we look at the telling charts of the day, they mean for investors. you can check these charts on the bloomberg running the future on the screen -- feature on the screen. it is time for the final four. we kick things off with kailey leinz. kailey: we are interested.
in interest today you can see the cost of service in u.s. debt has jumped. -- itsk ironic take that has skyrocketed this year. want to pay attention to this because we have $100 million in treasury auctions. also today we are getting the congressional budget deficit. this is an important chart to be looking at today and can see that at the gtv library. i want to drop us to another interest measure, that is interest income. preparing for bank earnings, some crank investors for bank of america and jpmorgan and citigroup -- all reporting earnings in the next week. as you can see, investors are worried about the flattening of the yield curve. we have that at the top line, and at the bottom is net
interest income that is rising. it is. something that analysts expect to continue to rise. we will see what people are saying once the banks report. vonnie: ladies, both wonderful presentations. m in a quandary, however, i like to look ahead, and i think the back chart is fascinating, particularly as we gear up for earnings season. big we have ever agreed, but we have to start agreeing. vonnie: i agree with you all the time. what are you talking about? [laughter] with you, interest income, looking ahead to a big friday, i am with you. we have a winner. this is bloomberg. ♪
house committee has released his prepared testimony and you will be testifying on wednesday before the house commerce and energy subcommittee. we have paul sweeney, bloomberg intelligence in north american research to talk about this. a couple of headlines for viewers, zuckerberg is going to say this but didn't do enough to stop any harm, and he is also were to say that facebook is whening data given to apps those apps are approved, working to make sure russian interference has ceased. the are things with expect them to say, but it doesn't inspire is it enough for lawmakers? that we need say to recognize that the scope of the problem in terms of data and integrity and usage by third parties is greater than we acknowledged before. knowledge that problem.
number two, we are committed to fixing it. whatever that may be, whether it is hiring more people or investing in more r&d two-week it out -- and number three, they are saying basically that. it is enough will handle this on our own. trying to notably do is, any regulatory momentum coming out of congress -- the next two days for zuckerberg is going to be critical. not only for him, but also facebook. and the tech industry in general, a lot of tech ceos are going to be think attention to marks testimony. will impactsecurity profitability, so he's going to tell congress, don't punish us anymore, we are going to punish ourselves by taking this out of our bottom line. but that is not going to satisfy lawmakers want verifiable evidence that facebook is doing
what they are saying they're going to do. paul: at the end of the day, i think facebook is going to get a little bit of a pass as there is not going to be a big push. for revelatory oversight in the near-term. but clearly day will have to be very aggressive and very detailed oriented and very transparent. relators asrs but well about what they are doing in the coming months and years at they don't this. we're coming to the midterm elections and they have to dataify major significant they can show to users and regulators that they are in fact making major changes. i am looking at his conclusion, my top priority as our social mission of connecting people and building committee bring the world closer together. he goes on to say that advertisers and developers will that,take priority over as long as i am running facebook. the dial has moved towards people believing that advertisers and developers come first. how is he going to move the dial back?
paul: some of the safeguard they have put in place arguably make some of the data they provide to advertisers less viable, and therefore a dollar spent on facebook may be less valuable by an advertiser today. advertiser does get targeting information about the audience they are reaching that the historically had received from facebook. the devil is going to be in the details. if you are facebook at this point yet the absolutely go to a very cautious stance about what information you are going to provide to third parties in general, including advertisers. the real question from a business perspective and stock performance perspective is, are any changes they are going to make with respect to advertisers -- will that make the facebook platform is viable? and alternative for advertisers early feedback from the marketplace says no. if you are a brand advertiser and you want to spend on the internet you still have only two places to go, and when his facebook. vonnie: we know one major
advertiser pulling out is like many small advertisers pulling out, is that right? it is more of a duopoly, and because this are the disadvantage of having to choose between google and facebook. amazon is sure to make a big push it online advertising and they in fact become a viable third competitor in the marketplace. i think what the market is telling us with the stock stabilizing the last several days as we recognized that could be mental cost, but we don't believe in that near-term there is revenue risk for the company. mark: given as you say, and the guests we have had -- regulation if and when it happens is going to take years -- what does it take for analyst committee to turn negative on facebook? covered havets we a buy recommendation. paul: what we are seeing in the past couple of weeks is the belief that the facebook revenue stream is generally very much
intact. this is going to be a good top and story. vonnie: and we get to donald trump, here is played back. things like see that, as bad as the news is around the world, you don't see those images. we are studying that situation extremely closely. we are meeting with our military and everybody else, and will be making major decisions over the 48 hours. with. very concerned, a thing like that i can happen. this is about humanity, we are talking about humanity. it can't be allowed to happen. will be looking at that barbaric act and studying what is going on. we are trying to get people in their. you know it is surrounded and it is hard to get people in.
not only has been hit, it has been surrounded. allowingy aren't they people to go and improve? they are claiming they didn't make the attack. syria,it is russia, iran, all of them together, we will figure it out and will know the answers courquite soon. we are looking at it strongly and seriously. i also want to provide an update on trade negotiations. we have a situation with china, where we have a good relationship with china. will maintain that relationship. i am very good friends with president xi. as you know, i spent two days in china. the president spent two days with us mar-a-lago in florida.
they were for great days, and has that being said, china taken advantage of the united states for many years. since the start of the world trade organization. they have really done a number on this country. i don't blame china. i blinked the people running our country. i been presidents and representatives and negotiators. we should have been able to do what they did, we didn't do it, they did. set ofhe most lopsided trade rules and relations anybody has seen. with that said, we have many of them. nafta was a horrible deal and we are renegotiating and we'll see what happens. we are strongly negotiating. nafta. if you look at the european union they have tremendous trade barriers.
we have essentially bad deals with everyone and were close to finishing a deal with south korea, which was a horrible deal. it is going to give a storm thousand. jobs commitment that didn't exactly happen. it gave them 200,000 jobs and we lost jobs and was a horrible deal. that is being renegotiated. go.ave a long way to but we have made tremendous progress. withe close to nafta, and we don't have a right deal, will terminate nafta and will make the right deal. but we have a chance to make a deal on nafta. the south korea situation, which complicates it. the deal we have with south korea is going to be, i think it is going to be a very fair deal. we want a fair deal. and we don't have fair deals. north korea, by the way, as you have probably seen -- we have been in touch with north. and we will be meeting with them
early june.may or i think there will be great respect take by both parties, and hopefully will be able to make a deal on the denuclearization of north korea. they have said so, we have said so. hopefully it will be a relationship that is much different than has been for many years. the should have been done by other presidents, and they decided they couldn't have done it. it would have been a lot easier if it was done five years ago or 10 years ago or 20 years ago. a lot easier than now. but we have a meeting that is being set up with north korea, so that will be very exciting for the world. it is going to be an exciting thing for the world. we'll talk about opioids today, opioid distraction and drug distraction. we strengthen up our southern border.
last year we had record low numbers, and this year they have gone up to a certain extent, it might be because our economy and people want to come to a good economy. we are putting the national guard and military at the border. we are beefing up the border patrol, who have been a fantastic job. a fantastic job, and will take care of this jewish and. we want all, whether you are republican or democrat from want all. it will not settle out of drug flow and will stop a lot of people we don't want this country from coming into our country. right now we are putting the military and national guard, and we are having strong borders. it will be much stronger. with that, the cabinet meeting -- will be discussing a lot of different elements of what is going on. the country is doing very well. we have