DealBook Briefing: How the Trump-Kim Summit Could Reshape the Economy

Good Tuesday morning. (Was this email forwarded to you? Sign up here.) We’ll be watching for Judge Richard Leon’s ruling this afternoon on the Justice Department’s attempt to block the AT&T deal for Time Warner, and the potentially huge effects that could have on deal making. We’re also following the news that Larry Kudlow, Donald Trump’s chief economic adviser, had a heart attack Monday evening.

The U.S. and North Korea concluded their historic talks in Singapore with an agreement that could, eventually, lead to a denuclearized Korean Peninsula. But there are economic effects that could flow from the pact. We have some questions.

Will U.S.-China trade relations improve? Both sides had much to gain from a successful meeting: President Trump wants a signature foreign policy accomplishment, and Beijing wants to avert North Korea’s economic collapse. So far, both sides are likely to be quietly confident about things ending well.

How will relations between the U.S. and South Korea change? Washington needs to keep firm ties with one of its closest trading partners. But peace with North Korea would mean reducing American troop levels on the peninsula — and could lead to Beijing having more influence there.

Will investors be impressed? Global markets appeared little moved by the news from Singapore. MarketWatch points out that investors weren’t spooked by the taunts and threats between Mr. Trump and Mr. Kim last year either.

Singapore summit extra: Mr. Trump and Mr. Kim dined on Korean stuffed cucumber, beef short rib confit, Yangzhou fried rice and Häagen-Dazs ice cream.


Today’s DealBook Briefing was written by Andrew Ross Sorkin in New York, and Michael J. de la Merced and Jamie Condliffe in London.


As the Trump administration clashes with Canada over trade, Peter Eavis took a look at tariffs on Canadian lumber and how they affect American consumers. What he found: Canadian lumber producers are doing well, American counterparts haven’t stepped up production, and U.S. home builders are being squeezed.

More from Peter’s report:

Elsewhere in trade: Forget the usual ways of tracking trade deficits. Deutsche Bank economists have a new measure, and it shows a $1.4 billion U.S. trade “surplus.” (Bloomberg)

The billionaire investor built an entire foundation around the idea of measuring corporate America on more than profits, before the concept became fashionable. But now he’s turned it into a financial product — an exchange-traded fund made of a selection of Russell 1000 companies, based on his metrics — with the help of the Wall Street bank.

More from Andrew’s latest column:

• Despite their senior White House roles, Ivanka Trump and Jared Kushner profited enormously from their private investments last year. (NYT)

• Senate leaders voted to add amendments to the annual military spending bill that are meant to restore penalties on the Chinese telecom company ZTE. (Politico)

• British lawmakers are “very seriously” examining the businessman Arron Banks’s Russian connections, over fears that his Brexit funding undermined democracy during the 2016 referendum. (Guardian)

In a lengthy investigation, the FT found that Mr. Sorrell had become vulnerable because of a combination of resentment over his spending habits and big pay packages, and concern that he wasn’t getting the advertising company WPP to respond quickly enough to a slowdown in digital campaigns.

Allegations of a visit to a brothel may have been the final straw. More from Madison Marriage and Matthew Garrahan:

Meanwhile, management could face blowback from investors at WPP’s annual meeting tomorrow. Mark Kleinman of Sky News reported that a preliminary tally of shareholder votes shows anger over pay practices.

• Stryker is said to have made a takeover offer to a rival medical device maker, Boston Scientific. A deal could be worth more than $50 billion. (WSJ)

• USG, the construction materials company, finally agreed to sell itself to Knauf of Germany for $7 billion. (Bloomberg)

• Lola, a start-up that makes organic tampons and other feminine products, has raised $24 million to branch out into other products. The company told Michael it hoped to offer a suite of women’s products, as Harry’s does for men. (Lola)

When Mark Zuckerberg appeared before Congress in April, he failed to answer a lot of questions. Instead, he promised to get back to lawmakers. Now his company’s responses have been made public — but if you were expecting in-depth details in the 454 pages of answers, you’re out of luck.

More from Sheera Frenkel of the NYT:

More in Facebook news: Lawmakers are scrutinizing the company in the wake of reports about it sharing data with device makers. The company still can’t find evidence of Russian meddling in the Brexit vote. And is the company’s big problem a lack of innovation?

• A brief history of Foxconn’s troubling work conditions. (NYT)

• Investments in the gene-editing technology Crispr are a big risk. (Bloomberg)

• Tesla says that its Autopilot system should be fully self-driving by August. Conveniently, there’s now a way to grade autonomous car systems.

• The Treasury Department imposed sanctions on Russians over involvement with cyberattacks. (Reuters)

America’s central bank is expected to raise its benchmark short-term interest rate to somewhere between 1.75 percent and 2 percent tomorrow. But it faces a tricky balancing act, and the wrong choice could lead to a recession.

More from Nick Timiraos of the WSJ:

Elsewhere in rates: How e-commerce could be to blame for low inflation — but could also help fix it.

Bozoma Saint John, Uber’s chief brand officer, has left to become chief marketing officer at Endeavor, the holding company for the WME talent agency. (Recode)

• Lazard has hired Mark Sooby and Harris Ghozali from Deutsche Bank, as managing directors focusing on oil and gas investment banking. (Lazard)

• A Mexican judge has issued an arrest warrant for JPMorgan Chase’s top banker in the country over allegations of fraud. (FT)

• Justify, only the 13th Triple Crown winner in history, has broken records for breeding rights, fetching $75 million. (ESPN)

• Can Silicon Valley make bank accounts cool again? (Bloomberg)

• Why bringing back supersonic jetliners might be a bad idea. (NYT)

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