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Speaker 1: Yeah, Welcome to the Bloomberg Surveillance Podcast. I'm Tom Keene

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Speaker 1: Jay Leye. We bring you insight from the best in economics, finance, investment,

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Speaker 1: and international relations. Find Bloomberg Surveillance on Apple Podcasts, SoundCloud,

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Speaker 1: Bloomberg dot Com, and of course, on the Bloomberg. The

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Speaker 1: main event then the United States and North Korea agreeing

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Speaker 1: to seek complete denuclearization of the Korean peninsula following a

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Speaker 1: historic summit between President Donald Trump and Kim John arn

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Speaker 1: Yet the accord set no deadline and left the path

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Speaker 1: to disarm and undefined. The details are light, the headlines impressive.

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Speaker 1: Bloomberg Managing editor Dan ten k George's now from Singapore. Dan.

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Speaker 1: The theatrics, the pictures, the photographs, the videos, they're all

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Speaker 1: theatric called it's what you expected. The details thought, what

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Speaker 1: is the detail of this agreement down, Well, there's there's

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Speaker 1: not much in terms of substance in this agreement. Most

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Speaker 1: of what we saw today we've seen before, and in

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Speaker 1: fact it was a lot lighter than even skeptics we're

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Speaker 1: hoping for. Um. Complete denuclearization is a term that North

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Speaker 1: Korea uses to suggest not only the removal of its

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Speaker 1: own nuclear weapons, but also the nuclear weapons that the

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Speaker 1: United States has in the region to protect allies South

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Speaker 1: Korea and Japan. UM, so that alone, um to just

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Speaker 1: that Trump didn't get too much going into it. They

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Speaker 1: kept talking about complete, verifiable, irreversible denuclearization, which is considered

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Speaker 1: the gold standard among arms control experts, and that did

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Speaker 1: not appear in the document that was signed. Do we

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Speaker 1: have an accepted definition of what the complete denuclearization of

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Speaker 1: the Korean Peninsula means for the Koreans and for what

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Speaker 1: it ultimately means for the United States as well? Because

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Speaker 1: coming against the sum there were two different definitions of

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Speaker 1: that phrase. If we have got have we got in

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Speaker 1: a great definition of that phrase now? And uh no,

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Speaker 1: we don't. We just have that vague term. So really, um,

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Speaker 1: what's going to happen in the next few weeks is

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Speaker 1: Suctoria State, Mike Pompeo is going to continue these negotiations

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Speaker 1: and um, you know, it's it's that where they're apparently

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Speaker 1: going to have to figure out what exactly is this

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Speaker 1: process where you're gonna have inspectors go in and dismantle

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Speaker 1: this nuclear program. Right now, we still have no visibility

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Speaker 1: on that based on what we saw today within the ballet,

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Speaker 1: what did you observe in Singapore, I mean media, all

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Speaker 1: of it choreographed. It was amazing how the handshake came

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Speaker 1: off so smoothly and all. Oh, then the day to

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Speaker 1: day grind of your Singapore. How did this summit go?

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Speaker 1: It was very smooth. I mean they didn't do much

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Speaker 1: at all on Monday. And and the big surprise event

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Speaker 1: was really Kim Jongoon taking an evening stroll around the

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Speaker 1: harbor front and sing before going to the rooftop of

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Speaker 1: the Marina based and um, there were crowds of onlookers

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Speaker 1: taking photos with them. This was all very spontaneous and

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Speaker 1: it made him He's taking selfies with the Singapore Foreign Minister. Um.

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Speaker 1: You know, this makes him look like a normal leader

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Speaker 1: who received applause. He received a warm welcome all around.

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Speaker 1: So from that perspective, this was a big win for

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Speaker 1: Kim managing. It's a dan ten kg jointing us from Singapore.

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Speaker 1: I'm Tommy. You'd have to say, now, compared to where

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Speaker 1: we were a year ago, whether the President gave up

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Speaker 1: too much, received very little, we're in a much better

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Speaker 1: place than we were about six or twelve months ago.

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Speaker 1: And that's for sure. There's no question about that. I

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Speaker 1: will state is he is on Air Force one at

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Speaker 1: heading the Guam and across to Hawaii and then back

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Speaker 1: on home, that it appears he will be greeted John

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Speaker 1: Farrell by a firestorm of discussion over these military exercises.

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Speaker 1: He treated them is quote unquote war games. But we

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Speaker 1: have heard on this program in this studio, among others,

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Speaker 1: Admirald James Travitis go over the importance, the tactical physical

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Speaker 1: importance of these military has to some too happy parties

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Speaker 1: about the ending of those military exercises. One of them

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Speaker 1: things the North Korea, the other thing the Chinese. This

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Speaker 1: is probably exactly what the Chinese would have liked to

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Speaker 1: have seen, and they're getting it. Um. You know, I

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Speaker 1: mentioned the going out of television, the tweet just by

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Speaker 1: Overland's Richard Hass where Ambassador Hass was gracious about the moment,

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Speaker 1: but then really centered in again on these military exercises. Again,

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Speaker 1: if you're just joining us and you saw the handshake

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Speaker 1: last night about nine pm, John beautifully choreographed, I thought, uh,

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Speaker 1: the the idea of um of just stating in a

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Speaker 1: seventy minute press conference that the war games will end.

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Speaker 1: That that pretty much John came out of the blue

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Speaker 1: from what I could do. Okay, there, what do you want?

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Speaker 1: I'm good? Are you are? Are you are working on

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Speaker 1: your World Cup? Feed over there? No no. Lisa Collins

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Speaker 1: joining us NOW Center for Strategic and International Studies Career Chair, UM. Lisa,

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Speaker 1: Welcome to the program. Let's begin with this historic summit

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Speaker 1: that we've had overnight. How much is the president given

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Speaker 1: up and how significant is it? Well, I think it's

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Speaker 1: a very significant concession that he's given up by agreeing

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Speaker 1: to suspend the US South Korean military exercises. That's something

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Speaker 1: that the South the North Koreans have been asking for

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Speaker 1: for decades, something they consistently raised in previous negotiations like

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Speaker 1: at the Six Party talks or even a great framework

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Speaker 1: factor in Clinton era. UM, and I think that this

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Speaker 1: is something that previous US administrations have known is not

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Speaker 1: something that should be bargained away or should be used

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Speaker 1: as a political tool for you know, for bargaining with

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Speaker 1: the North Koreans. The military exercises are um and necessary

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Speaker 1: part of maintaining military readiness for our forces in the

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Speaker 1: region and for protecting our South Korean allies and Japanese

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Speaker 1: allies in the region, and so I think this is

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Speaker 1: a huge concession that maybe Trump didn't even realize he

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Speaker 1: was getting up. Lisa Collins with us, and we will

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Speaker 1: continue thrilled to have her with us through the morning

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Speaker 1: with the Center for Strategic and International Studies in uh

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Speaker 1: in Washington. We're enjoying shop jolliness with us with Credit

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Speaker 1: Suite is. Yes, we have international relations of politics of Singapore.

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Speaker 1: Thank you Lisa Collins for joining us there with terse

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Speaker 1: comments off of what we heard from President Trump. But

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Speaker 1: also the backdrop is a LIPUS paper of the system,

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Speaker 1: which is foreign Exchange Shop. Is that still true that

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Speaker 1: you know I learned in my textbooks at Foreign Exchange

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Speaker 1: is the is the chemistry is a litmus paper of

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Speaker 1: the global financial system. Is that as true today as

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Speaker 1: it was years ago? I think it's it's still true.

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Speaker 1: What's different now maybe is that we have so much

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Speaker 1: constant news flow that the market can react and pricing

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Speaker 1: events very efficiently, perhaps more efficiently than it could back then,

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Speaker 1: And therefore the reaction to events like for example, this

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Speaker 1: summit in Singapore can sometimes be somewhat muted because we've

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Speaker 1: had so much time to think about it and understand

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Speaker 1: all the different implications that could arise, and when nothing

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Speaker 1: particularly surprising happens, you don't get much of a reaction.

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Speaker 1: So I think that's that's why you get this type

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Speaker 1: of price action compared to me. I mean, John, it's

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Speaker 1: almost like there's almost no news out there now. Yeah,

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Speaker 1: so dollar drifts is drifted. We just we just focus

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Speaker 1: on the theatrics all the time of foreign policy, and

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Speaker 1: sometimes we missed the data point. I would say more

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Speaker 1: important this morning for investors was just to look at

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Speaker 1: the small business Optimism survey here in the United State,

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Speaker 1: the set can hirest index reading and it's forty five

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Speaker 1: year history. Does that sound like American businesses worried. No,

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Speaker 1: but we've heard that. I mean Drew Marters yesterday, I

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Speaker 1: got a huge response. But the fact of the matter is,

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Speaker 1: whatever you think about these international events right now, schaha.

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Speaker 1: But it just seems to me that here in the

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Speaker 1: United States, domestically speaking, which is why we're talking about

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Speaker 1: small companies, not big caps, exposed to the international story,

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Speaker 1: but domestically speaking, it looks like the United States is

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Speaker 1: the best house on the street. That's still the case.

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Speaker 1: And you know, even the political risk in the US,

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Speaker 1: despite President Trump apparing to some to be a liability

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Speaker 1: on that front, it's still muted compared to most other

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Speaker 1: major economies out there. So for example, the UK you

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Speaker 1: have the Brexit debate. Europe just delivered the Italy story,

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Speaker 1: which was a surprise for many actually um and you

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Speaker 1: know clearly in emerging markets, you've got all kinds of

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Speaker 1: different political uncertainties out there right now, which which do

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Speaker 1: spill over into the economy. So that's why I think

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Speaker 1: the US at this point looks looks better than the rest.

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Speaker 1: Banks for America, Mary Lynch come out with that monthly

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Speaker 1: survey that a lot of people look at the fund

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Speaker 1: manager survey, and in that survey this month, the theme

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Speaker 1: is pretty clear. It's decoupling once again the United States.

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Speaker 1: People get an exposure to the US and trimming exposure

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Speaker 1: to Europe and emerging markets. Are we decoupling here in

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Speaker 1: the United States from the rest of the world, and

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Speaker 1: we're moving from global synchronized growth to a world that's

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Speaker 1: quite familiar several years ago, which is the US doing

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Speaker 1: great with struggles our swhere. It doesn't have to be that.

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Speaker 1: If you go back just a couple of months. In fact,

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Speaker 1: many market participants expected a synchronized global recovery. In fact,

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Speaker 1: they expected, for example, Europe to perform so well that

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Speaker 1: the euros should go higher against the US dollar even

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Speaker 1: with the US is yield differential advantage that it has

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Speaker 1: at this point in time. So there was a surprise

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Speaker 1: factor there where suddenly the numbers came off in places

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Speaker 1: like Europe and other parts of the world. And actually,

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Speaker 1: I think many economists still expect to bounce back in

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Speaker 1: those numbers. So this desynchronized growth outlooked at we have

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Speaker 1: at this point in time need not necessarily persisted. But

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Speaker 1: the heart of all of this analysis is gaming central banks.

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Speaker 1: And the central banks are gaming inflation and the vector,

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Speaker 1: the first and second derivatives of inflation. What are they

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Speaker 1: right now? I mean, what what is Mr Powell's summary.

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Speaker 1: He's sitting at his desk, He's got his Bloomberg next

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Speaker 1: to him. We know that John Sherman pulse constantly on

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Speaker 1: his Bloomberg looking at the dots, But what is a

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Speaker 1: single sheet of paper on his desk about inflation? Actually say, well, look,

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Speaker 1: I think I think the bigger issue there is that

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Speaker 1: although the inflation level is at an acceptable level, and

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Speaker 1: certainly much higher than let's say europe A Japan's inflation level.

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Speaker 1: The flattening yield curve is sending a different message, which

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Speaker 1: is that the level of rates is that's priced in

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Speaker 1: right now, so let's send next to the end of

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Speaker 1: next year, is already high enough, you know, given the

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Speaker 1: longer term decline in potentially you know, potential growth and

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Speaker 1: other factors of the market is concerned about. So I

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Speaker 1: think that's that's the issue here. It's not really where

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Speaker 1: is inflation right now? It's what level of rates can

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Speaker 1: the market tolerate before it starts to worry about more

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Speaker 1: disinflation in the future. That's we're doing central bank analysis

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Speaker 1: by gas by forecast right well. I think even the

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Speaker 1: Central Bank Franction is doing that. If you think about

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Speaker 1: the debate that's ongoing at this point around what is

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Speaker 1: the real neutral rate at this point in time, how

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Speaker 1: much has that changed, how high above it can you

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Speaker 1: go before you risk a de leveraging concern in the

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Speaker 1: global economy. These are all things that being debated constantly,

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Speaker 1: and I don't think it's gonna be an answer to

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Speaker 1: that quick. We're talking about Panama yesterday in the world

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Speaker 1: Cup as it Rain got a chance, I think so.

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Speaker 1: I think, you know it's based on the very low

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Speaker 1: pal is that that the market is subscribing first game Friday,

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Speaker 1: if less the city can win the Premier League. I

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Speaker 1: think there's what's the first game Friday? Morocco? Yes, Morocco

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Speaker 1: exactly came on Friday. So what happens does you have

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Speaker 1: when when kickoffs? What eleven eleven am on Friday? Yeah,

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Speaker 1: you know I've got this credit dis credit space to

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Speaker 1: lose their effort. I've also got to watch England on Monday's.

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Speaker 1: It's the problem with your foot in multiple you mentioned

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Speaker 1: earlier Spain is going to do better. I mean you

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Speaker 1: know that that's just the gut feel. To be honest

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Speaker 1: with you, Why is Spain gonna do better? We're gonna

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Speaker 1: cover this in detail, full team coverage in about seven minutes, folks. Yeah,

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Speaker 1: I actually don't think any particular country has a standout

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Speaker 1: strong team this time. Yeah, I would go with that. Yeah,

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Speaker 1: So that's why I'm just going with my gut feel,

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Speaker 1: which is Spain. I can't there's no analysis involved there.

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Speaker 1: My gut feel is the United States of America's not

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Speaker 1: in it. And I thought it's Nigeria. I thought that

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Speaker 1: was your No. I'm supporting Nigeria because I have a

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Speaker 1: memory from eight or twelve years ago that it was

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Speaker 1: fun watching them, you know, for an America now because

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Speaker 1: it is fun watching but come on there, like the

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Speaker 1: Washington Capitals to come down the ice and they shoot

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Speaker 1: the puck. Nigeria, there's none of this pussy footing around.

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Speaker 1: Nigeria comes down the field and they kicked the ball.

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Speaker 1: That's what Americans want right to see this summer. So

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Speaker 1: I'm gonna get you the excuse me to get it's

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Speaker 1: a kid. Well, I just say, I'm speaking in your

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Speaker 1: land a kid, but I'm going to get you the shirt. Okay,

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Speaker 1: call it the shirt. I'm going to get the Nigeria shirt.

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Speaker 1: I can't see you fully kidded out with the socks,

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Speaker 1: shorts and jersey as well. We have had some terrific

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Speaker 1: guests that we hope are giving you perspective away from

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Speaker 1: the basics of Korea, and one of them is Catherine

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Speaker 1: interest Moon uh Senior Fellow for Foreign Policy the Center

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Speaker 1: for East Asia Policy Studies as well. Catherine, thank you

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Speaker 1: so much for being with us on a busy day.

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Speaker 1: Let me begin with what we've seen through the morning

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Speaker 1: and what our audience has heard through the morning. With

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Speaker 1: what this moment means for South Korea, we've heard too

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Speaker 1: little about it. How does Soul respond to what we've seen? Well?

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Speaker 1: President Muon Jayne of South Korea has declared that he's very,

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Speaker 1: very happy and and considers the summit so far a success.

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Speaker 1: Um I think the South Korean public will feel good

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Speaker 1: about it, accept there's a problems. President Trump offered to

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Speaker 1: see joint military exercises, training exercises that are held regularly

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Speaker 1: throughout the year with South Korea as part of the alliance.

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Speaker 1: This was a unilaterally yeah made statement and this has

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Speaker 1: surprised the d D in the US as well as

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Speaker 1: South Korea. The government is basically saying they're going to

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Speaker 1: have to get clarity from the US about the statement.

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Speaker 1: So that is really unexpected and um way too much.

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Speaker 1: Written to Mr Kim, I mean, you came out of

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Speaker 1: the Smith College, Princeton, Combine, you're teaching up at Wellesley.

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Speaker 1: Now you're going to walk into your class tomorrow and

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Speaker 1: within your international relations you have to bring in the

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Speaker 1: military of the United States of America. How will the

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Speaker 1: Pentagon respond to what the president, it seems almost ad

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Speaker 1: hoc said within his press conference, Well, I have a

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Speaker 1: simple answer to that, which is that the Pentagon, as

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Speaker 1: far as the US Military Command in South Korea goes,

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Speaker 1: the spokesperson already said very very clearly and early on

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Speaker 1: that day, will proceed as usually, have gotten no command

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Speaker 1: and so they're training to get ready for the August

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Speaker 1: military exercise. I mean, this is a professor bon. This

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Speaker 1: is absolutely critical in that we have heard this from

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Speaker 1: Admirals Torvinis and others over he's at the school north

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Speaker 1: northeast of Wellesley called tufts Um and Admiral Stevidis has

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Speaker 1: said very simply, uh that this these are command orders,

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Speaker 1: aren't they right? Right now? This is this is um.

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Speaker 1: It's a bit commity. This is a little nuts frankly

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Speaker 1: um and uh, the Defense Minister Matis on a Monday,

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Speaker 1: the eve of the summit, had already said the military

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Speaker 1: exercises are not on the table for negotiations, and then

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Speaker 1: President Trump just offered it up, Kathy, are we in

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Speaker 1: a beneposition now on the peninsula And then we were

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Speaker 1: twolve months ago, Uh, well yes, if we don't want war.

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Speaker 1: This is a very very good development relative to war

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Speaker 1: or fire and fury and other kind of rhetorics like that.

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Speaker 1: So the big pictures death. However, Uh, there isn't much

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Speaker 1: there there in the joint statement. And for example, the

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Speaker 1: US promises um to goose North Korea security assurances and etcetera.

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Speaker 1: But North Korea promises to proceed with the declared de

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Speaker 1: nuclearization intention of April when Kim meant with Moon. However,

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Speaker 1: North Koreans have not even presented a recommitment to continuing

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Speaker 1: cruise on nuclear testing and missile testing. I mean, we

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Speaker 1: could have a minimum gotten that. Would you say the

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Speaker 1: world is more secure now than twelve months ago? I

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Speaker 1: would say we are not on a road to war,

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Speaker 1: so therefore secure but quite insecure. In terms of what

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Speaker 1: is to come after this meeting, Well, what's what's the

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Speaker 1: greeting the president is going to get back in Washington?

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Speaker 1: I mean, we mentioned Pentagon earlier, but you know, you

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Speaker 1: see the back and forth between any executive branch officer

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Speaker 1: in the legislative branch. How will this be received in Washington?

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Speaker 1: I think the members of Congress will want to get clarification,

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Speaker 1: like many people around the world, because it's so vague.

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Speaker 1: What happened is so vague, and the U s seems

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Speaker 1: to have offered more, at least verbally. Um. The other reality, though,

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Speaker 1: is that the joint statement is not a bagally binding statement,

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Speaker 1: so it comes up and have to abide by any

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Speaker 1: of it, and neither does Kim. You know one thing

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Speaker 1: I want to bring up as China. I found it

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Speaker 1: really striking that when Trump was taking questions from the media, Um,

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Speaker 1: he sanks Presidents She and all the other dignitaries of

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Speaker 1: East Asian countries are relevant there. But he said that

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Speaker 1: he is grateful to President She for having enforced so

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Speaker 1: tightly the sanctions, and then he says, but not so

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Speaker 1: much in the last two months, But that's okay, that's

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Speaker 1: what he says. But that's okay. So I was stunned

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Speaker 1: that he is signaling to China and other countries that

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Speaker 1: loosening up sanctions that not abiding by them uh is okay,

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Speaker 1: and that the US doesn't have much leverage m accept

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Speaker 1: the sanctions that the Chinese can employ. Well, Kathy, let's

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Speaker 1: talk about the Chinese role in all of this. Do

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Speaker 1: you think the Chinese and President changing thing will be

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Speaker 1: happy with the outcome of the summit Oh yeah, I

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Speaker 1: think for now, because the Chinese wanted exactly what Trump offered,

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Speaker 1: which is too ceased US military exercises in South Korea

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Speaker 1: in return for a freeze of nuclear and missile testing, etcetera. Um.

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Speaker 1: But in some ways China got what it wanted. The

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Speaker 1: North Korean's got so much just meeting Trump, getting the

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Speaker 1: coverage worldwide and not having to commit to anything specific.

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Speaker 1: Canthey has been incredibly difficult to make a judgment cool

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Speaker 1: after once summit, with a lot of theatrics. This is

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Speaker 1: going to take months, maybe even years for this to

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Speaker 1: play out. But as you see things at the moment,

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Speaker 1: your base case, the swear of influence that the North

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Speaker 1: Koreans fall into, is it towards the South, towards the

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Speaker 1: United States, or is it towards China. Oh, I think

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Speaker 1: it's none of the above. North Korea does not dance

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Speaker 1: to other countries, tune it's dances to its song. So

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Speaker 1: right now, I think North Korea Kim is doing a

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Speaker 1: really superb job doing the diplomacy politics with the South Koreans,

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Speaker 1: with the Chinese, with the Americans. Uh, He's willing to

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Speaker 1: dance with everybody right now, and with the Russians, and

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Speaker 1: I'm sure he's going to extend that dance card to

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Speaker 1: the Japanese as well. Kathy, really thoughtful stuff, and we

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Speaker 1: really appreciate your time on this program from the Brookings

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Speaker 1: Institution Center for East Asia Policy Studies. Um, Kathy Moon,

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Speaker 1: We've got a fantastic interview coming to us from Berlin.

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Speaker 1: Tom Keene unexpected and Gal Guria, the o ECG Secretary General,

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Speaker 1: just popping into the Berlin studio and he joined us

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Speaker 1: from Berlin, Germany. And good morning to your sir, Good

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Speaker 1: afternoon to you over there, and thank you very much

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Speaker 1: for joining us. Let's just talk about your meeting with

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Speaker 1: a Chancellor Merkel in Berlin. Huge reversal seemingly in US

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Speaker 1: German relations over the last year. Just what kind of

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Speaker 1: position is Chancellor Merkel in and what had she told you? Well,

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Speaker 1: Chancellor Merkel is always at VISTIQ and she's always pragmatic,

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Speaker 1: and she's always working towards a greater cooperation. So I

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Speaker 1: think we what we did together with the heads of

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Speaker 1: the i m F, together with the head of the

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Speaker 1: World Bank, of the International Labor Organization and the World

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Speaker 1: Trade Organization myself, we all talked about UH in each

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Speaker 1: of our domains, how we could work with multilateralism and

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Speaker 1: how we could promote globalization. And at the same time

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Speaker 1: we had the head of the African Development Bank, so

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Speaker 1: we focused a lot on cooperation with Africa. The domain

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Speaker 1: of Mexico is something that you have grown up with

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Speaker 1: and you have now seen the tests by the domain

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Speaker 1: of Trump, whether it's NAFTA, Mexico, what we've seen with

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Speaker 1: Canada coming out of Quebec and a course with your

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Speaker 1: conversation with Chancellor Miracle today, these domains are under attack

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Speaker 1: from a unique president. How should they respond to Donald Trump? Well,

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Speaker 1: I think that these are different circumstances. In the case

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Speaker 1: of Mexico, which you mentioned, what we're going to have

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Speaker 1: an election on the first of July UH and there's

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Speaker 1: still so there's still you know, three weeks of campaigning

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Speaker 1: to do um and the questions in Visa v. The

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Speaker 1: United States depend a lot on UH NAFTA, How will

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Speaker 1: NAFTA uh it developed, How will NAFTA end up in

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Speaker 1: terms of the negotiations, But they also issues of security,

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Speaker 1: issues of migration, there are issues of you know, the

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Speaker 1: not not not just a trade but also the dealing

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Speaker 1: of drugs and arms that come from the South and

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Speaker 1: go into consumption in the United States, and then the

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Speaker 1: arms flow coming from the United States into Mexico. So

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Speaker 1: there are a number of issues that the bilateral relationship

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Speaker 1: requires when it comes to well, for example, the G

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Speaker 1: seven meeting, of course, that was mostly a an issue

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Speaker 1: that was brought up in terms of the communicate. At

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Speaker 1: the end, it was mostly about trade to some extent

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Speaker 1: climate and then and then last but not least in

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Speaker 1: the case in the particular case about Canada, well, it

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Speaker 1: was about whatever this encounter happened because of the communicate,

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Speaker 1: And in some ways in Europe there is a protectionist

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Speaker 1: wall creating barriers to entry for for many people to

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Speaker 1: get into the European market, the auto market being one

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Speaker 1: of them. The Europeans realizing that they need to remove

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Speaker 1: some of those tariffs on on auto imports in order

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Speaker 1: to appease the president Here in the United States, I

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Speaker 1: don't think that anybody is doing anything to appease anybody else.

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Speaker 1: But I think the question is that you realize that

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Speaker 1: more and more the barriers of trade have to come

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Speaker 1: down in order for everybody to capture the ifits of trade. Yeah,

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Speaker 1: and I think it's an important question I got, But

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Speaker 1: I just wonder whether the Europeans themselves are aware that

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Speaker 1: that's got to happen, and they themselves have barriers to

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Speaker 1: entry that need to come down. I I think that

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Speaker 1: more and more there is a common understanding that this

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Speaker 1: has to happen, and then there is a question of

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Speaker 1: uh A time and speed, and then the specificity about

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Speaker 1: which and where and what sectors. But my my, as

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Speaker 1: I said before, my impression is this is a world

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Speaker 1: in which these tires have to come down, continue to

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Speaker 1: come down, eventually disappear. They're already very low, right, They're

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Speaker 1: already very low, and they're coming down further all the time.

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Speaker 1: And now, with your experience at O E c D

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Speaker 1: and the other public service tasks you've taken for your

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Speaker 1: nation of Mexico, you visited South Korea many times. How

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Speaker 1: the South Koreans respond to what we saw in the

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Speaker 1: last twenty four hours in Singapore, it has to be good,

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Speaker 1: it has to be positive. I have myself been in

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Speaker 1: uh the in the Special Economic zone you know, on

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Speaker 1: the on the North Um, and I can only tell

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Speaker 1: you that the potential there for complementarity, the potential there

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Speaker 1: for uh, you know, transforming in North Korea into a

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Speaker 1: very important uh you know, complement to the capacity not

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Speaker 1: only of South Korea but also of the whole of

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Speaker 1: the world is very great. So I think whatever happened

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Speaker 1: to day, it's not it's good not only for security

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Speaker 1: issues but for the future of the world. And Algaria,

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Speaker 1: thank you so much from our studios in Berlin is

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Speaker 1: the fifth Secretary General of the Organization for Economic Cooperation

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Speaker 1: and Development. Of course out of Paris is well, John,

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Speaker 1: That's one of the big Bloomberg advantages out of the blue. Yeah,

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Speaker 1: and on blocks of violence accountlement. He wants to come

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Speaker 1: out and we're thrilled by that, and that's wants it

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Speaker 1: worked by our team over the but that that's wonderfully

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Speaker 1: here frommed there's just so much new song. We could

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Speaker 1: spend an hour there alone. In Mexico and the elections

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Speaker 1: coming up. Thanks for listening to the Bloomberg Surveillance podcast.

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Speaker 1: Subscribe and listen to interviews on Apple Podcasts, SoundCloud, or

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Speaker 1: whichever podcast platform you prefer. I'm on Twitter at Tom

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Speaker 1: Keane Before the podcast, you can always catch us worldwide.

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Speaker 1: I'm Bloomberg Radio