April 23, 2024

Trump-Kim summit cancelled. Now, what? > 25.05.2018 Highlights

Trump-Kim summit

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Trump called off the greatly expected Trump-Kim summit by an official letter sent to the North Korean leader. It would be the first-ever meeting between US and N. Korea at the level of Heads of State.

Originally scheduled for the 12th of June, the historic Trump-Kim summit would take place in Singapore. Trump invoked “tremendous anger and open hostility” on the part of Pyongyang with reference to N. Korea’s last statement. This statement called US Vice President a “political dummy” for comparing North Korea – a “nuclear weapons state” – to Libya.

North Korea responded that in any case they remain open to a new meeting “at any time in any way”. However, fears about an increased risk of war remain, that’s why Trump stated that USA is military ready. Trump’s letter also referred to the possibility of war:

“You talk about your nuclear capabilities, but ours are so massive and powerful that I pray to God that they will never have to be used”.

The cancellation came just hours after North Korea started the dismantling of its main nuclear test site in the presence of foreign journalists who have been invited to witness the event.

South Korea’s leader who visited Washington on Wednesday acting as an intermediary to save the Singapore summit says now he is perplexed. US and North Korea foreign ministers agreed to continue working toward creating the right conditions for resuming US-S. Korea talks.

Remaining Iran Deal members meet to talk about the without-USA era

The “P5+1 minus 1” need to run a long and difficult way to preserve JCPOA following USA pull-out.

Although there is intention to stay within the pact, the nations-members of the Iran Deal try to decide on the framework under the threat of the US sanctions.

The situation is very difficult, as some Western companies have already quit Iran because of U.S. sanctions. Iran’s supreme leader set out a series of conditions on Wednesday for Iran to stay in the deal.

Putin welcomes European efforts to save Iran nuclear deal.

The International Atomic Energy Agency said Iran remained within limits on the level to which it can enrich uranium even after US withdrawal.


MARKETS following cancellation of Trump-Kim summit 

The US Dollar edged up, returning to its rally, following two days of losses.

The Euro moved lower, close to its 6 and ½ month low against US dollar. The common currency recorded losses for a sixth consecutive week over concerns regarding Italy instability and Europe economy downturn.

Against the Swiss franc, the euro is near its lowest level since early March. The currency pair is a risk index over the euro’s outlook.

The Sterling dropped again because of weak economic data, new Brexit concerns and a strong dollar.

Oil prices moved lower following indications that Russia and OPEC may gradually increase output.

Sources: Reuters, Euronews, CNN Money

PLEASE NOTE The information above is not investment advice.