iFund- The Trump-Kim summit: Walk on down

2019-03-19 10:06
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The calm mood that has prevailed on the Korean peninsula for the past year is clearly preferable to the nuclear threat of 2017. Even if no agreement was reached in this round of meetings, the financial market was not heavily hurt.

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Things took a dramatic turn here on Thursday afternoon as the widely expected second summit between the Democratic People's Republic of Korea (DPRK) top leader Kim Jong Un and U.S. President Donald Trump failed to produce an agreement after some two days of discussion.

This was due to a “gap” over denuclearization and sanction relief issues between the two sides. Kim and Trump skipped their planned lunch and signing ceremony of a joint statement, and Trump’s solo press conference was held two hours ahead of schedule.

President Trump said he walked out of his second summit with Kim Jong Un after the two leaders couldn’t agree on a deal to relieve North Korea of U.S. sanctions in exchange for Pyongyang giving up much of its nuclear weapons program. Trump said Kim “wanted the sanctions lifted in their entirety, and we couldn’t do that.” In exchange, the North Korean leader had offered to dismantle its main nuclear facility at Yongbyon.

The North Korean government will hold a rare press conference on the Trump and Kim Jong-un summits. North Korean leader Kim Jong Un and U.S. President Donald Trump decided to continue productive talks to resolve problems discussed at their Hanoi summit, in order to bring about the denuclearization of the Korean peninsula and progress in the North Korea-U.S. relationship. Kim Jong Un vowed to meet again with President Trump.

Mr Trump and his aides seem to have concluded that walking away will do less harm to America's security than showering North Korea with concessions without gaining much in return. They are also implicitly admitting that denuclearisation is a long process rather than something that can be achieved overnight, as Mr Trump had previously implied. The calm mood that has prevailed on the Korean peninsula for the past year is clearly preferable to the nuclear threat of 2017. Even if no agreement was reached in this round of meetings, the financial market was not heavily hurt.

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