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00:00Just in the last few moments, we understand that Air Force One has, there we go, landed
00:04in South Korea. And of course, my colleague and co-anchor Yvonne Mann is there in South Korea
00:10covering the story. Yvonne. Yeah, so this is the big one, right? As we count down to more
00:18leaders that are going to be embarking here at Gyeongju, South Korea, certainly we've been
00:23talking about the logistics and how difficult it really is to get 20,000 visitors to this small
00:28city of so much cultural heritage. That's why it was chosen. But certainly there you
00:33go. Smooth sailing when it comes to President Trump arriving here at Gyeongju on the back
00:38of what has been, what he has called a very great trip to Japan as well, where we did hear
00:44about some of these pledges, as you mentioned as well. The meeting with President Lee from
00:48South Korea is going to be the next thing on the agenda. And then, of course, the big sort
00:52of event is going to be on Thursday when President Trump and Xi are going to meet. In terms of
00:58logistics, we're not even quite sure where this meeting is going to be taking place. So
01:01we might be scrambling a little bit as well. But you're hearing a little more on Air Force
01:05One, even before he landed, on what could be discussed, right? When he mentioned about
01:10fentanyl tariffs that could be lowered, that certainly could be a win for China from 20% to
01:16we don't know what level. The expectation of Wall Street Journal at least has them reporting
01:20that it could be lowered to 10%. And these, of course, are additional tariffs that have been
01:24put on top of already tariff rates for China. So that could be a small win for Beijing.
01:31What also could be something that could be substantial is the talk of Blackwell chips from
01:38Nvidia and that President Trump will be discussing the Blackwell chip with Xi Jinping. Up until now,
01:45we've been talking about H20. Of course, President Trump has allowed the likes of Nvidia
01:48to, of course, once again ship those H20 chips to the mainland. As long as the government gets a cut
01:54of it, of the sales. But China, of course, as you say in a pivot there, said, you know, no need,
02:00right? We won't, urging companies not to take in those chips and actually rely on its own chips as
02:06well. Does the Blackwell chip though, this is much more advanced, that could be a big game changer if
02:13in fact there is still going to be some news that come through on that front as well. But yes,
02:16looks like those are going to be the key issues. Rare Earths, he mentioned, something could happen
02:20with China at this meeting as well, Dave. Yeah, you know what, let me just build on what you just
02:26said there on Nvidia, right? So after hours is done, we do have some trading, of course,
02:29and some proxies on the alt exchange, for example. And I think Yvonne mentioned this in case our viewers
02:33missed that. And the proxy I'm using now that is trading, if I could ask my producers to bring
02:39NASDAQ futures up, we're now looking at 82 points to the upside. So just to underscore some of the market
02:45moving and market reaction to just very, very basic comments coming through out of Air Force One
02:50with Donald Trump earlier on. 81 points in NASDAQ futures, we're looking at the alt exchange, I
02:57think, well, we closed higher overnight. And in fact, we are now looking at 8.5, well, we were looking
03:03at 8.5% after those comments on Blackwell from the U.S. president. Just to recap what you're seeing
03:11on your screens, the U.S. president and Air Force One, just a few minutes back, touched
03:15down in South Korea. It's taxiing right now into the bay, into where we are, where this
03:20whole welcoming committee has been waiting in deceivingly very cold weather. It's my understanding
03:28of where we are right now, as far as that's concerned. There's a band waiting. Whether or
03:33not we get the same song and dance that we got when he landed in Malaysia is another thing
03:37altogether, perhaps not more important there. We are also looking at, because the entourage
03:43is there, we did catch a glimpse of the beast. That's the car, of course. And we're also looking
03:50at the red carpet. And we are, in fact, by the looks of things, I'm just eyeballing this,
03:55we're judging by the fact that we are getting the shadow of the stairs. There we go. Okay,
04:01so we are getting very close to the U.S. president making his way out of Air Force One. That's
04:06all just to say, while he was on air, in the air, on the way to South Korea, to reiterate
04:12some of the news coming through there, Donald Trump says he expects a great meeting with
04:19China's Xi Jinping. The relationship with China is very good. One of the remarks coming through
04:24out of the U.S. president, he says that a meeting with President Xi will have a very good outcome
04:29for our country and for the world. And he expects to solve a lot of problems. So we do understand
04:36in terms of my expectations based on the phrasing of some of these headlines, do expect some news on
04:44fentanyl. Some progress, I'm using it very loosely, some progress on rare earths. President Trump also
04:53mentioned he does not know whether Taiwan will come up, of course, in those talks as well. But
05:00that's just to say, Yvonne, these have been really market-moving comments. It really sets the stage
05:04for what has already been a very busy few hours. And I imagine, Yvonne, that's about to get,
05:10that's going to go up a notch or two once things really get underway there where you are.
05:17Yeah, this is just Wednesday. We haven't even talked about Thursday when these two leaders
05:21actually meet. That's going to be the big thing as well. We talked about, you know, the meeting with
05:24Lee, Jay Muniz, really just the appetizer. The main course comes on Thursday when Xi and Trump meet.
05:31But as you mentioned about the Taiwan issue, it seems like the U.S. is downplaying that this is
05:35going to be a top priority. He's not sure if President Xi is going to bring it up. But it
05:39seems like Trump and at least the U.S. side of things is unwilling to really go there when it
05:44comes to the Taiwan issues. He says there's not that much to ask about Taiwan. But we also didn't hear
05:50what's about North Korea. I think reporters did ask him, you know, is Trump looking to meet with Kim Jong-un
05:55during his trip to South Korea and head to the border? He said, look, maybe something in the future.
06:01Maybe not this time. So at least on those sides, the defense side, security side, that certainly is one thing.
06:06But it seems like it's really focused on, as you mentioned, the trade aspect of things, whether it is
06:11on fentanyl, about tariffs, and whether we are going to see, of course, a 90-day truce that's going to be
06:17extended and bring this trade war, essentially, to 2026. That's really going to be the key thing
06:23for the market as well. Those are sort of the low-hanging fruit, right? Can we see an extension
06:27of this trade truce? And whether, you know, tariffs are going to be even on the table when it comes to
06:33100% tariffs that were threatened just a few weeks ago when China did ramp up the temperature when it
06:38came to these export curbs. Export curbs around rare earths, we talked about, is going to be key here,
06:44whether we do see some sort of, I guess, watering down of these curbs, whether it's on rare earths,
06:50whether it's on the U.S. side, the export of a software, for example, which kind of led to the
06:56latest flare-up here. But both sides have really, in the last couple of hours and days, have really
07:02been bringing the positive vibes. I think the People's Daily, this is the official Chinese
07:06Communist Party mouthpiece, mentioned yesterday about we hope that, you know, we can meet in the
07:11middle, right? That they can reach some sort of consensus or some sort of compromise on these
07:17very sticky and sticking issues here, sticking point issues here. But there you go. We are seeing
07:22Air Force One aligning with that staircase there. So we are expecting the President to step down
07:28here as well and arrive here in Guangzhou. So there is a lot at stake here. But certainly right now,
07:36we are seeing these continue positive vibes, Dave.
07:40I mean, it really is. And I think, you know, the notion of this reset is really coming to,
07:45I think, literal fruition when we see them together tomorrow. Now, in terms of the substance and what
07:51each side walks away with, we really have a good understanding now of the diplomatic wins
07:56and the low-hanging fruit. And it seems to me we'll be getting progress on that, right? So things like
08:01a tariff that was, there was an additional tariff that was set to take effect at the end of this
08:06week that doesn't seem to be part of the conversation now. We could even get a lowering
08:09of the fentanyl-related tariffs. The Thornier issue seems to be, well, at least the foundation to
08:16discuss that still seems to be, the jury's still out on that one as they roll out the red carpet.
08:23That's just to say that to the point that our guest earlier on shows was making,
08:27Einar Tang get out of Beijing, that Beijing is slow-playing Donald Trump. That it is in the,
08:35not so much in the interest, let me just rephrase that ever so slightly. In the event that these talks
08:41don't go as the news flow is expecting them to and suggest that they will, it won't be as bad of an
08:50outcome for the Chinese side, an extension, if you will, as far as that's concerned. That's just to
08:57say, let me just crowbar in the other big story we were talking about today. It's perhaps not a
09:04coincidence that this detailed roadmap, it did of course happen, the fourth plan, the five-year plan
09:11is out. We did also just get that overnight and last, yesterday, Tuesday afternoon, a detailed
09:17document outlining China's blueprint to elevate consumption, to become a bigger part of the
09:25economic pie. That's not a short-term measure, it's a longer-term blueprint, and that goes into what
09:32not just the US has asked, China's trading partners have asked to rebalance the economy in favor of
09:37greater consumption. The reason I say it's not a coincidence, because that actually goes into many
09:41of these major issues longer term, that these two economies have been discussing, negotiating over,
09:49and we'll see, we'll see what these talks hold. But before we get to the point, right, we have this
09:54luncheon coming through, and of course, we're still waiting in one for the US president to actually
09:57come out of Air Force One. Yeah, as you mentioned, right, you've got to wonder, does this trade war
10:04in some way, you know, help or hurt President Xi? And some could argue that China is in some ways
10:10winning in this trade war, because they've been able to leverage the likes of soybeans, leverage the
10:15likes of rare earths as a key weapon in this trade war. And it's been effective in some ways in really
10:21getting President Trump to want to meet and give some concessions, right? If this whole Blackwell chip
10:27comes into fruition, where, you know, NVIDIA can ship those chips to China, that would be a major
10:34concession on the part of the US. But as you talk about, right, this grand bargain that people have
10:40been talking about, that sort of reality seems to be fading a little bit as we get closer, just given,
10:45you know, all these kind of long standing issues between the two nations, and what people say is more
10:50realistic could be just a series of small deals, right, short term fixes over time between the two, just
10:57given the structural sort of issues that are still at play here. And there is a lot of talk, as you
11:02mentioned about self-reliance, as you mentioned about, you know, being this sort of techno-nationalist
11:08sort of industrial superpower. This has been a long, long project of President Xi for the past decade or
11:15so. And you heard that in that 14th five-year plan, that they really kind of chose this in the face of
11:21the external threats there, over really boosting consumption. So I think at one point, it is going
11:27to be a big question for China. You know, are you going to choose between self-sufficiency or actually
11:32boosting consumption to stabilize growth? But there you go. You're seeing President Donald Trump there
11:37greeting the South Koreans as he, of course, embarks and steps out of Air Force One. Certainly, this is on the
11:45back of his trip to Asia, Malaysia. Yesterday was Japan, which, you know, both of these trips have been
11:52very, very positive in terms of what was achieved there, right? And really, you are seeing a flurry
11:58of deals that the president has been at least agreed to with ASEAN, with, of course, the new
12:04Prime Minister of Japan, Takeichi there. And certainly, there has been this momentum behind the U.S.
12:11as he, of course, embarks in South Korea. So at least for now, you are seeing more engagement from
12:16the U.S. in this part of the world. And we'll see, right? President Trump is there. There you go,
12:21greeting the leaders. And certainly, we're expecting that luncheon to happen in just a few
12:25moments as well with President Li J. Moon. But there is going to be a lot hanging there,
12:31you know, with President Trump and really could be, you know, really agreed upon with China,
12:37right? We need something of substance. We need to quantify, you know, the number of soybeans that
12:44China is going to purchase. We need that in order for, you know, the global investment community to
12:48really see, yes, something came out of this and that we are actually seeing some more progress.
12:54It's worth pointing out that, you know, he's coming from Japan. He's in South Korea now. These
13:00are two U.S. allies, of course. And in terms of just the economic relationship and trade ties between
13:05the two, there had been a very deliberate exercise and a part of, obviously, the teams involved here
13:12to really bolster those economic ties, right? Whether that's FDI from Japan into the U.S.,
13:17we just talked about Toyota just now. On the part of rare earths, for example, and critical materials,
13:23there has been, if you look at the specific news flow and some of the deals that have been announced
13:29very recently on that, that goes into also U.S. efforts and its allies' efforts to really,
13:34I guess, in some ways, take a step back as far as the reliance on the Chinese ecosystem is concerned.
13:40Now, what we don't know so far is to what extent, even if we will get a pause, a one-year pause in
13:47rare earths, and if we do get one, what does that actually look like? Because we haven't even formed
13:51the sort of details around what the current framework is, something that did catch markets
13:58off guard about two or three weeks back. It's certainly almost through a spanner in the works
14:02as far as the conversation goes, because he had this recent tit for tat and re-escalation
14:06and de-escalation, which shortly followed days after that. So we'll see what happens there as
14:11far as this is concerned. But yes, you are looking at live pictures out of Gimhae Airport in South
14:16Korea, where the U.S. president and Air Force One just landed. I would say about 10 minutes back,
14:20he's emerged from Air Force One. He's made his way down into the car. What you're not going to see
14:26is him lining up at immigration. I've actually yet to see a world leader get off a plane or get on a
14:31plane and get into line in immigration. Anyway, that's just to say, of course, the red carpet has
14:35been rolled out for the U.S. president. It's going to be a very busy few hours there for Donald
14:43Trump and his team. Not to mention, not to mention, what we've talked about a lot is the political side
14:48of things. This is the APEC CEO Summit. So as far as markets go, it's the deals between those
14:55companies involved. And there's an extremely long list of corporate heads and VIPs that are in the
15:02same place in the world to talk us through these various deals. And one of which I invite our viewers
15:08to read this, NVIDIA, Samsung Electronics, and Hyundai Motor.
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